/raid1/www/Hosts/bankrupt/TCR_Public/250217.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, February 17, 2025, Vol. 29, No. 47
Headlines
12027 OTSEGO: Unsecureds to Get 100 Cents on Dollar in Plan
180 LA PATA: Unsecureds Will Get 4% of Claims in Liquidating Plan
1808 FRANKFORD: Files Chapter 11 Bankruptcy in Pennsylvania
3220 S FISKE BLVD: Case Summary & 10 Unsecured Creditors
375 1/2 MAIN: Seeks to Extend Plan Filing Deadline to March 7
3784 LLC: Case Summary & One Unsecured Creditor
7 WALES STREET: Sec. 341(a) Meeting of Creditors on March 12
9029 NEW YORK: Case Summary & Two Unsecured Creditors
ACCURIDE CORP: Chapter 11 Exit Nears After Court Approval
ACCURIDE CORP: Guggenheim Marks $720,066 Loan at 52% Off
AEMETIS INC: BlackRock Reports 4.9% Equity Stake as of Dec. 31
AGEMY FAMILY: Seeks Chapter 11 Bankruptcy Protection in Florida
AIMBRIDGE ACQUISITION: $199MM Bank Debt Trades at 35% Discount
ALI A. ASKARI MD: Case Summary & 15 Unsecured Creditors
ALL CRAFT: To Sell Zephyrhills Property to American Nautical
ALL INCLUSIVE: Court Extends Cash Collateral Access to Feb. 20
ALLEN MEDIA: S&P Affirms 'CCC+' ICR on Successful Debt Repayment
ALLIED CORP: Calum Hughes Resigns as CEO, Director
AMITY COURT: Seeks Chapter 11 Bankruptcy Protection in Washington
ANTIGONE SKOULAS: Seeks Subchapter V Bankruptcy in California
APPLE BIDCO: Moody's Affirms B2 CFR & Rates New First Lien Debt B2
APPLIED MINERALS: Claims to be Paid From Available Cash and Income
APPTECH PAYMENTS: Director Walsh Reports Beneficial Ownership
ARCH THERAPEUTICS: M. Abrams Steps Down as CFO, Treasurer
ARTEX TELECOMMUNICATIONS: Files Chapter 11 Bankruptcy in Texas
ASP DREAM: $50MM Incremental Loan No Impact on Moody's 'B3' CFR
ASTRO ONE: $155MM Bank Debt Trades at 80% Discount
ATLAS CC: Guggenheim Marks $189,472 Loan at 36% Off
AVISON YOUNG: $61.1MM Bank Debt Trades at 38% Discount
B&H SFR: Case Summary & Seven Unsecured Creditors
BABY K'TAN: Gets Final OK to Use Cash Collateral
BAYSHORE SUITES: Seeks Subchapter V Bankruptcy in Florida
BCPE NORTH 2: Moody's Raises CFR to 'B3', Outlook Stable
BECKER INC: Court Extends Cash Collateral Access to March 7
BED BATH: Panel Settles 401(k) Losses Lawsuit for $1.95MM
BELLISSI FURNITURE: Seeks to Extend Plan Filing Deadline to July 29
BERRY CORP: BlackRock Reports 8.8% Equity Stake as of Dec. 31
BEYOND AIR: Nasdaq Extends Bid Price Compliance Period to Aug. 4
BIOMILQ INC: Breast Milk Startup Files Chapter 7 Bankruptcy
BLUE DOG: Court OKs Interim Use of Cash Collateral
BLUE RIBBON: Guggenheim Marks $977,500 Loan at 30% Off
BROWN FAMILY: Seeks Subchapter V Bankruptcy in Georgia
CAMSTON WRATHER: Files Chapter 7 Bankruptcy w/ Over $100MM Debt
CAPSTONE GREEN: To Tap CBIZ as Independent Accountant
CAREPOINT HEALTH: Secures Deal to Increase Chapter 11 Financing
CARNIVAL PLC: EUR814MM Bank Debt Trades at 22% Discount
CASTLE US HOLDING: $1.20BB Bank Debt Trades at 37% Discount
CCA CONSTRUCTION: Gets Court OK for $40MM Chapter 11 Financing
CCRR PARENT: Guggenheim Marks $640,000 Loan at 62% Off
CEC ENTERTAINMENT: S&P Places 'B-' ICR on CreditWatch Negative
CHAMPION HEALTHCARE: Court Extends Cash Collateral Access
CHARGE ENTERPRISES: Mediation Not Appropriate in Fox Lawsuit
CHARGE ENTERPRISES: Mediation Not Appropriate in Schwelle Suit
COASTAL GROWERS: To Sell Peanut Business in Auction
COASTAL GROWERS: Voluntary Chapter 11 Case Summary
COLLECTIVE SPEAKERS: Case Summary & 20 Top Unsecured Creditors
COLLEGE OF SAINT ROSE: Plan Exclusivity Period Extended to March 24
COLUMBUS MCKINNON: Moody's Puts 'Ba3' CFR on Review for Downgrade
COLUMBUS MCKINNON: S&P Places 'B+' ICR on CreditWatch Negative
COMMSCOPE HOLDING: BlackRock Reports 9.7% Equity Stake
COMMSCOPE HOLDING: Closes $2.1B Sale of OWN, DAS Biz to Amphenol
COMPREHENSIVE INTERVENTIONAL: Voluntary Chapter 11 Case Summary
CONNECTICUT ATTORNEYS: A.M. Best Cuts Fin. Strength Rating to B
COTY INC: Moody's Upgrades CFR to Ba1 & Alters Outlook to Stable
CREDIT ACCEPTANCE: S&P Rates New $400MM Sr. Unsecured Notes 'BB'
CUBIC CORP: $1.48BB Bank Debt Trades at 32% Discount
CYANOTECH CORP: Reports $224K Net Loss for Q3 2024
DAJMO TRUCKING: Plan Filing Deadline Extended to April 2
DANG LA CONSTRUCTION: Case Summary & Six Unsecured Creditors
DEL MONTE FOODS: $472.4MM Bank Debt Trades at 34% Discount
DEL MONTE FOODS: $725MM Bank Debt Trades at 35% Discount
DELTA ELITE: Sec. 341(a) Meeting of Creditors on March 10
DIOCESE OF NORWICH: Reaches Deal with Abuse Claimants to Pay $31MM
DIOCESE OF ROCHESTER: Court Okays Ch. 11 Plan 3rd-Party Releases
DIXON FLEET: Unsecured Creditors to Split $50K over 5 Years
ECHOSTAR CORP: BlackRock Reports 14.8% Equity Stake as of Dec. 31
ECO ROOF: Plan Exclusivity Period Extended to April 21
EDMOUNDSON STEEL: Gets OK to Use Cash Collateral
EMERGENCY HOSPITAL: Court Extends Cash Collateral Access to Feb. 28
EMERSON4411 LP: Seeks Subchapter V Bankruptcy in California
ENVERIC BIOSCIENCES: Intracoastal, 2 Others Hold 4.99% Stake
EPR PROPERTIES: Fitch Affirms 'BB' Rating on Preferred Debt
ESSEX & ASSOCIATES: Owners' Business Network Enters Receivership
ESSEX TECHNOLOGY: A&G Handles Bankruptcy Sale of 92 Store Leases
FAMILY SOLUTIONS: Plan Exclusivity Period Extended to March 4
FIREPAK INC: Unsecureds Will Get 10% of Claims in Plan
FIRST CHICAGO: A.M. Best Affirms B(Fair) Fin. Strength Rating
FLORIDA FOOD: Guggenheim Marks $720,066 Loan at 15% Off
FORTNA GROUP: $1.47BB Bank Debt Trades at 16% Discount
FOUNDATION FITNESS: Claims to be Paid From Asset Sale Proceeds
FREE SPEECH: Sandy Hook Families Move to Enforce Judgment on Jones
FREE SPEECH: WOW.AI Bids $3.5M, $WARS Tokens for Infowars.com
GEN DIGITAL: Fitch Affirms 'BB+' LongTerm IDR, Outlook Negative
GEN DIGITAL: Moody's Gives 'B1' Rating on New Unsec. Notes Due 2023
GRADE A HOME: Unsecureds to Get Share of Income for 36 Months
GTT COMMUNICATIONS: $350MM Bank Debt Trades at 22% Discount
GULFSLOPE ENERGY: John Malanga Steps Down as CFO
HANESBRANDS INC: S&P Affirms 'B' ICR, Alters Outlook to Positive
HANSEN KIDS: Files Chapter 11 Bankruptcy in Michigan
HAYDALE CERAMIC: Haydale Graphene Shares Fell After Ch. 11 Filing
HOBBS & ASSOCIATES: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
HOBBS & ASSOCIATES: Moody's Alters Outlook on 'B2' CFR to Negative
HOMESTEADER FIRST: Court Denies Bid to Use Cash Collateral
IMERI ENTERPRISES: Updates Comptroller of Public Accounts Claim Pay
INOTIV INC: Revenue Declines to $119.9 Mil. in Q1 FY 2025
INVATECH PHARMA: Voluntary Chapter 11 Case Summary
IVANTI SOFTWARE: $465MM Bank Debt Trades at 25% Discount
JERVOIS TEXAS: Court Approves Common Stock Transfer Protocol
JERVOIS TEXAS: Disclosure & Plan Hearing Set for March 6, 2025
JOANN INC: Seeks Approval to Close Over 500 Stores in 2nd Ch. 11
JUMP FINANCIAL:S&P Rates New $650MM Senior Secured Term Loan 'BB-'
JW ALUMINUM: S&P Raises ICR to 'B', Outlook Stable
KITO CROSBY: S&P Places 'B' ICR on Watch Positive on Columbus Deal
KNIGHT HEALTH: $450MM Bank Debt Trades at 42% Discount
KUT AUTO: Seeks Chapter 11 Bankruptcy Protection in Alabama
L4L INVESTMENT: Sec. 341(a) Meeting of Creditors on March 5
LA NOTTE VENTURES: Court Extends Cash Collateral Access to March 5
LASERSHIP INC: $1.03BB Bank Debt Trades at 30% Discount
LASERSHIP INC: $192.6MM Bank Debt Trades at 32% Discount
LASERSHIP INC: $202.5MM Bank Debt Trades at 28% Discount
LEFEVER MATTSON: Court OKs Deal to Use Poppy Bank's Cash Collateral
LEXARIA BIOSCIENCE: Cuts JonesTrading Sales Deal from $20MM to $5MM
LIBERATED BRANDS: Closes All Stores, Sells Wholesale Inventory
LILLY INDUSTRIES: Gets OK to Use Cash Collateral Until March 5
LPB MHC: Unsecured Creditors to Get Share of Income for 5 Years
LSCS HOLDINGS: S&P Rates New $108MM Revolving Credit Facility 'B-'
LUXY HOLDINGS: Sec. 341(a) Meeting of Creditors on March 5
M.P. PRODUCTIONS: Gets Interim OK to Use Cash Collateral
MEDIMPACT HOLDINGS: S&P Withdraws 'B+' ICR Following Refinancing
MIAMI-DADE COUNTY IDA: Moody's Ups Rating on 2015A Rev. Bonds to B1
MOMENTUM CONSULTING: Revenues & Litigation Proceeds to Fund Plan
MPGF INC: Court OKs Deal to Use Cash Collateral of HPJ
MULTIBAND FIELD: Seeks Chapter 11 Bankruptcy Protection in Texas
NEUROONE MEDICAL: Reports $1.79 Million Net Income for Q1 2025
NEW JERSEY ORTHOPAEDIC: Seeks Chapter 11 Bankruptcy Protection
NEWFOLD DIGITAL: S&P Cuts ICR to 'CCC+', On Watch Negative
NOVA LIFESTYLE: Enters Deal to Sell 250K Shares to Huge Energy
NOVELIS HOLDINGS: Moody's Rates New $1.25BB Secured Term Loan 'Ba1'
NOVEMBER 26: Seeks to Sell German Subsidiary
NOVO INTEGRATED: Extends CEO Resignation Date to Feb. 20, 2025
NUBURU INC: Bondholders' Trustee Sets Feb. 19 Auction
NUMINUS WELLNESS: Winds Down Subsidiaries via Bankruptcy
OMEGA THERAPEUTICS: Feb. 18 Deadline Set for Panel Questionnaires
ORANGE TUMBLER: Gets OK to Use Cash Collateral Until March 14
OREGON TOOL: $850MM Bank Debt Trades at 38% Discount
OSTEEN'S LOAD: Unsecureds to Split $24K in Consensual Plan
OYA RENEWABLES: Gets Court Okay for Ch. 11 Sales After Settlement
OZARK LANDSCAPE: Gets OK to Use Cash Collateral
PACKERS HOLDINGS: $1.24BB Bank Debt Trades at 46% Discount
PALATIN TECHNOLOGIES: Enters $6M Stock Purchase Deal with A.G.P.
PAPER SOURCE: Closes Chicago Warehouse, To Cut 107 Jobs
PASADENA PERFORMANCE: S&P Assigns Prelim 'BB-' Rating on Sec. Debt
PERATON CORP: $1.34BB Bank Debt Trades at 17% Discount
PETSMART LLC: Moody's Lowers CFR to 'B2' & Alters Outlook to Stable
PHVC4 HOMES: To Dispose 26 Vacant Lots to Adams Homes for $1.1MM
PHVC4 HOMES: To Sell 31 Vacant Lots to CHIPS-Amberley LLC
PHVC4 HOMES: To Sell 4 Single-Family Homes to CHIPS-West Lagoon
POLAR US: $541.4MM Bank Debt Trades at 28% Discount
PRG-UINDY PROPERTIES: S&P Rates 2025 Housing Revenue Bonds 'BB'
PROS HOLDINGS: BlackRock Reports 9.8% Equity Stake as of Dec. 31
PROSPECT MEDICAL: Reaches Deal w/ MPT, Tenant
PUERTO RICO: PREPA Needs Government Help to Repay Legacy Debt
PURDUE PHARMA: Ask Court for Ex-Owners' Litigation Shield Extension
R2O GROUP: Seeks Chapter 11 Bankruptcy Protection in New Jersey
RELIANT LIFE: Seeks to Extend Plan Exclusivity to May 5
REYNOLDS CONSUMER: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
REYNOLDS CONSUMER: Moody's Rates New $1.64BB First Lien Loan 'Ba1'
RHODIUM ENCORE: Sues Rival Riot Platform for Breach of Contract
RIVERSIDE MILITARY: Fitch Lowers Issuer Default Rating to 'C'
RSTZ TRANSPORT: Gets Interim OK to Use Cash Collateral
SALT GROUP: Seeks Chapter 11 Bankruptcy Protection in Florida
SANDVINE CORP: Set to Emerge from CCAA After Court Approval
SCORPIUS HOLDINGS: Issues $1 Million Promissory to Investor
SEARS HOMETOWN: Chancery OKs Appraisal Suit to Fix Damage Ruling
SEVEN RIVERS: Gets OK to Use Cash Collateral
SHENANDOAH MEDICAL: Gets Interim OK to Use Cash Collateral
SIDHU TRANSPORTS: Seeks to Extend Plan Filing Deadline to March 6
SILVER AIRWAYS: Hearing to Use Cash Collateral Set for Feb. 27
SIZZLING PLATTER: Moody's Alters Outlook on 'B3' CFR to Negative
SM MILLER: Voluntary Chapter 11 Case Summary
SMILEDIRECTCLUB INC: Trustee Gets Court Approval to Tap Orrick
SMOKECRAFT CLARENDON: Gets Extension to Access Cash Collateral
SNAP INC: Fitch Assigns 'BB' LongTerm IDR, Outlook Stable
SOLCIUM SOLAR: Court Extends Cash Collateral Access to March 11
SOUTHERN COLONEL: Files Chapter 11 Bankruptcy in Mississippi
SPECTRUM GROUP: $507MM Bank Debt Trades at 16% Discount
SPI ENERGY: Must Pay $2.1M Trigger to Streeterville by June 30
SPIRIT AIRLINES: Judge Needs More Time to Assess Plan Releases
SPLASHLIGHT HOLDING: Seeks Chapter 11 Bankruptcy w/ $54MM Debt
SSR HOSPITALITY: Case Summary & 20 Largest Unsecured Creditors
STAFFING 360: Trading Suspended on Nasdaq, Has Option to Appeal
STUDIO PB: Unsecureds Will Get 2% of Claims over 36 Months
SULLIVANS DISTRIBUTIONS: Files Chapter 11 Bankruptcy in New York
SUNSOURCE BORROWER: Moody's Alters Outlook on 'B2' CFR to Negative
TEMPUR SEALY: Fitch Affirms 'BB+' LongTerm IDR, Outlook Negative
TERVIS TUMBLER: Emerges from Chapter 11 Bankruptcy
THINK GOODNESS: Seeks Subchapter V Bankruptcy in Arizona
TREE TOWN: Court Approves Use of Cash Collateral
TREES CORP: Promotes Mikayla Gilbert to CFO With $120K Salary
TRI-CITY HOSPITAL: Enters Receivership Amid Redevelopment Plans
TRUE VALUE: Plan Exclusivity Period Extended to May 12
TURK TRANSPORTATION: Files Chapter 11 Bankruptcy in Pennsylvania
TURNING POINT: Fitch Assigns 'B+' LongTerm IDR, Outlook Stable
TURNING POINT: Moody's Affirms B1 CFR & Rates New Secured Notes B1
TWO INDEPENDENCE: Moody's Cuts Rating on 2022 Revenue Bonds to Ba2
TXNM ENERGY: Moody's Rates New Jr. Subordinated Debentures 'Ba1'
US ECO PRODUCTS: Court Extends Cash Collateral Access to April 17
VITAL PHARMACEUTICALS: Judge Denies Ex-CEO's Bid to Dismiss Liens
VIVAKOR INC: Removes Preferred Stock Series, 15M Shares Authorized
VOSSEKUIL PROPERTIES: Files Chapter 11 Bankruptcy in Wisconsin
WCG INTERMEDIATE: Moody's Alters Outlook on 'B3' CFR to Positive
WELDED CONSTRUCTION: Awarded $44.6MM Judgment in Transco Dispute
WHITE FOREST: Feb. 18 Deadline Set for Panel Questionnaires
WILD EARTH: Files Chapter 11 Bankruptcy in North Carolina
WILLIAM H. ZIEGENBALG: Case Summary & 11 Unsecured Creditors
WILSON BUILDING: To Sell Wichita Property to Metro Courier
WINDSOR HOLDINGS: S&P Rates Repriced Secured Term Loans 'B+'
XRC LLC: Claims to be Paid From Income & Property Sale Proceeds
YELLOW CORP: Seeks Court Approval for $15.1MM Real Estate Sale
YOUNG MEN'S: To Sell Golf Equipment to Shannon Provence
ZIPS CAR: Uncovers Flaws in Private Credit Valuations
ZURVITA HOLDINGS: Zinzino Acquires Assets After Chapter 11 Process
[] Puerto Rico Bankruptcy Filings Rise 21.1% in January 2025 YOY
[] Skarzynski Marick Expands Bankruptcy Team in Los Angeles
[] Tiger Group to Auction Fleet From Bankrupt Dealer
[] US Cannabis Industry Business Receivership Rise Amid Challenges
[^] BOND PRICING: For the Week from February 10 to 14, 2025
*********
12027 OTSEGO: Unsecureds to Get 100 Cents on Dollar in Plan
-----------------------------------------------------------
12027 Otsego, LLC, filed with the U.S. Bankruptcy Court for the
Central District of California a Plan of Reorganization for Small
Business dated February 5, 2025.
The Debtor is a Limited Liability Company. Since 2018, the Debtor
has been in the business of developing and leasing of residential
real estate.
The Debtor's equity holder, Diana Spiro, will provide new money to
pay off 100% of unsecured creditors and the IRS. The money will be
used to bring the Plesnik mortgage 100% current and, after the
plan, the Debtor will continue to make monthly payments on the
Plesnik Mortgage during the full term of the mortgage.
This Plan of Reorganization proposes to pay creditors of the Debtor
from an infusion of cash. The final Plan payment is expected to be
paid in full on May 13, 2025.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 100 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 3 consists of Non-priority unsecured creditors. Class 3 is
unimpaired by this Plan, and each holder of a Class 3 Claim will be
paid in full, in cash, upon the later of the effective date of this
Plan, or the date on which such claim is allowed by a final non
appealable order.
The Debtor's equity holder, Diana Spiro, will provide new money to
pay off 100% of unsecured creditors and the IRS. The money will be
used to bring the Plesnik mortgage 100% current and, after the
plan, the Debtor will continue to make monthly payments on the
Plesnik Mortgage during the full term of the mortgage. Robert
Douglas Spiro, Jr will remain as manager of the LLC.
A full-text copy of the Plan of Reorganization dated February 5,
2025 is available at https://urlcurt.com/u?l=c7YNe7 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Marc Weitz, Esq.
LAW OFFICE OF MARC WEITZ
633 W 5th St, Ste 2800
Los Angeles, CA 90071
Tel: (213) 223-2350
Fax: (213) 784-5407
Email: marcweitz@weitzlegal.com
About 12027 Otsego LLC
12027 Otsego LLC is primarily engaged in renting and leasing real
estate properties.
Otsego LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. C.D. Cal. Case No. 24-11903) on November 15, 2024. In
the petition filed by Robert Spiro, as manager, the Debtor reports
estimated assets and liabilities between $1 million and $10 million
each.
Honorable Bankruptcy Judge Martin R. Barash oversees the case.
The Debtor is represented by Hovig John Abassian, Esq.
180 LA PATA: Unsecureds Will Get 4% of Claims in Liquidating Plan
-----------------------------------------------------------------
180 La Pata 2020, LLC, filed with the U.S. Bankruptcy Court for the
Central District of California a Disclosure Statement describing
Liquidating Plan dated February 5, 2025.
The Debtor is an entity which holds a single real estate asset in
the form of a twelve thousand square foot office building located
at 180 Avenida La Pata, San Clemente, California 92675 ("The
Property").
The plan is a liquidating plan. The debtor intends to move to sell
the real property located at 180 Avenida La Pata, San Clemente,
California 92675 free and clear of liens and interests. The value
of the property is estimated at $7,300,000.00. The First Deed of
Trust on the property, administrative claims, and priority tax
claims will be paid in full from the sale.
After these claims and costs of sale are paid the Debtor estimates
that approximately $2,000,000 will remain to be distributed on a
pro rata basis to all remaining allowed unsecured claims. At
present, prior to any action seeking disallowance of claims, this
amount would represent a 4% distribution to allowed general
unsecured claims.
Class 4 consists of All non-priority general unsecured claims that
are not class 2 non-priority general unsecured claims. Claims will
receive a pro rata distribution from the proceedings remaining from
the sale of Debtor's Real Property after payment of Class 1, Class
2, and Administrative Claims. The Debtor scheduled $52,657,626.23
of general unsecured claims once the class 2 claims are removed.
This is a liquidating plan. The Plan will be funded by the sale of
the debtor's sole asset a commercial office building located at 180
Avenida La Pata, San Clemente, California 92675. The sale is
expected to generate proceeds sufficient to pay all allowed
administrative claims, priority tax claims, and secured claims. The
remaining proceeds will be distributed on a pro rata basis to all
allowed general unsecured claims. The pro rata distribution is
expected to be no less than 4% of the total allowed claims.
A full-text copy of the Disclosure Statement dated February 5, 2025
is available at https://urlcurt.com/u?l=THAXun from
PacerMonitor.com at no charge.
About 180 La Pata 2020 LLC
180 La Pata 2020 LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
180 La Pata 2020 LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-12859) on Nov. 7,
2024. In the petition filed by Patrick Steven Nelson, as managing
member, the Debtor estimated assets and liabilities between $1
million and $10 million each.
Bankruptcy Judge Scott C. Clarkson oversees the case.
The Debtor is represented by:
Eric Bensamochan, Esq.
THE BENSAMOCHAN LAW FIRM, INC.
9025 Wilshire Blvd., Suite 215
Beverly Hills, CA 90211
Tel: (818) 574-5740
Email: eric@eblawfirm.us
1808 FRANKFORD: Files Chapter 11 Bankruptcy in Pennsylvania
-----------------------------------------------------------
On February 3, 2025, 1808 Frankford LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Eastern District
of Pennsylvania.
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 1808 Frankford LLC
1808 Frankford LLC is a single-asset real estate company.
1808 Frankford LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Pa. Case No. 25-10448) on February 3,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Patricia M. Mayer handles the case.
3220 S FISKE BLVD: Case Summary & 10 Unsecured Creditors
--------------------------------------------------------
Debtor: 3220 S Fiske Blvd, LLC
d/b/a Rockledge Extended Stay
3220 S Fiske Blvd, LLC
Rockledge, FL 32955
Business Description: The Debtor is the owner of the property at
3220 S Fiske Blvd, Rockledge, FL, which is
currently valued at approximately $1.71
million.
Chapter 11 Petition Date: February 14, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-00858
Judge: Hon. Lori V Vaughan
Debtor's Counsel: Robert Zipperer, Esq.
ATTORNEY AT LAW
224 S. Beach St., Suite 202
Daytona Beach, FL 32114
Tel: (386) 226-1151
Fax: (386) 238-3956
E-mail: robertzipperer@bellsouth.net
Total Assets: $1,723,080
Total Liabilities: $3,179,132
The petition was signed by Raffaello Ciciola as owner.
A full-text copy of the petition, which includes a list of the
Debtor's 10 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/MWLD6LQ/3220_S_Fiske_Blvd_LLC_dba_Rockledge__flmbke-25-00858__0001.0.pdf?mcid=tGE4TAMA
375 1/2 MAIN: Seeks to Extend Plan Filing Deadline to March 7
-------------------------------------------------------------
375 1/2 Main St. PA, LLC asked the U.S. Bankruptcy Court for the
Western District of Pennsylvania to extend its time to file a
Disclosure Statement and a Chapter 11 Plan to March 7, 2025.
The Debtor claims that it has a pending Agreement of Sale (see
Agreement, attached as Exhibit A) on the sole asset of 375 1/2 Main
St. PA, LLC, which is the real estate located at 375 1/2 Main
Street, Pittsburgh, PA 15201. All creditors will be paid,
Wilmington Savings Fund Society, County of Allegheny, City and
School District of Pittsburgh, Pittsburgh Water & Sewer Authority
and Duquesne Light.
The Debtor explains that a Motion to Sell the property will be
filed on February 5, 2025. The response deadline on the Motion is
February 22, 2025 and the Hearing Date is March 6, 2025.
375 1/2 Main St. PA, LLC is represented by:
Rodney D. Shepherd, Esq.
2403 Sidney Street; Suite 208
Pittsburgh, PA 15203
Phone: (412) 471-9670
Email: rodsheph@cs.com
About 375 1/2 Main St. PA, LLC
375 1/2 Main St. PA sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 24-22470
JCM).
Judge John C. Melaragno presides over the case.
Rodney D. Shepherd, at River Park Commons, represents the Debtor as
counsel.
3784 LLC: Case Summary & One Unsecured Creditor
-----------------------------------------------
Debtor: 3784, LLC
1739 NW 80 Ave - C
Margate, FL 33063
Business Description: The Debtor owns two properties: one located
at 1934 22nd Ave, Vero Beach, FL, valued at
$4.1 million, and another at 1550 Nectarine
Street, Fernandina Beach, FL 32034, valued
at $6.6 million.
Chapter 11 Petition Date: February 14, 2025
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 25-11569
Judge: Hon. Scott M Grossman
Debtor's Counsel: Brian K. McMahon, Esq.
BRIAN K. MCMAHON, PA
1401 Forum Way, Suite 730
West Palm Beach, FL 33401
Tel: 561-478-2500
E-mail: briankmcmahon@gmail.com
Total Assets: $10,726,000
Total Liabilities: $6,243,947
The petition was signed by Warren Taylor as managing member.
The Debtor listed American Express, P.O. Box 981535, El Paso, TX
79998-1535, as its sole unsecured creditor, holding a claim of
$15,000 for credit card purchases.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/4S4UZZY/3784_LLC__flsbke-25-11569__0001.0.pdf?mcid=tGE4TAMA
7 WALES STREET: Sec. 341(a) Meeting of Creditors on March 12
------------------------------------------------------------
On February 3, 2025, 7 Wales Street LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of
Massachusetts.
According to court filing, the Debtor reports between $100,000
and $500,000 in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
A meeting of creditors under Section 341(a) to be held on March 12,
2025 at 11:00 AM as Telephonic Meeting.
About 7 Wales Street LLC
7 Wales Street LLC is a single-asset real estate company owning
property in Dorchester, Massachusetts.
7 Wales Street LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass.Case No. 25-10212) on February 3,
2025. In its petition, the Debtor reports estimated assets between
$1 million and $10 million and estimated liabilities between
$100,000 and $500,000.
Honorable Bankruptcy Judge Christopher J. Panos handles the case.
9029 NEW YORK: Case Summary & Two Unsecured Creditors
-----------------------------------------------------
Debtor: 9029 New York Avenue, LLC
9029 New York Avenue
North Bergen, NJ 07047
Business Description: 9029 New York Avenue, LLC is a single asset
real estate debtor, as defined in 11 U.S.C.
Section 101(51B).
Chapter 11 Petition Date: February 14, 2025
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 25-11485
Debtor's Counsel: Russell L. Low, Esq.
LOW AND LOW
505 Main Street
Hackensack, NJ 07601
Tel: 201-343-4040
Fax: 201-488-5788
E-mail: Rbear611@aol.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Jeoffrey Santini as member.
A full-text copy of the petition, which includes a list of the
Debtor's two unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/5ADCQAQ/9029_New_York_Avenue_LLC__njbke-25-11485__0001.0.pdf?mcid=tGE4TAMA
ACCURIDE CORP: Chapter 11 Exit Nears After Court Approval
---------------------------------------------------------
Accuride's North America affiliates announced on Feb. 12, 2025,
that the United States Bankruptcy Court for the District of
Delaware confirmed the Company's Chapter 11 Plan of Reorganization
and Accuride expects to emerge from Chapter 11 in the coming
weeks.
The Plan refocuses the business on the Company's core North
American wheels segment and strengthens its balance sheet via the
equitization of over $400 million of funded debt and restructuring
of $170 million of additional obligations. In conjunction with the
recapitalization, Accuride will receive a significant new
investment from its existing investors in the form of a $70 million
asset-based lending facility and $85+ million exit facility, both
of which are designed to bolster liquidity and support long-term
growth.
"The confirmation of our reorganization plan marks the near
conclusion of our restructuring process, positioning Accuride to
emerge from Chapter 11 as a stronger company, well-positioned for
long-term success, " said Robin Kendrick, Accuride's President &
CEO. "With the support of our lenders, we are excited about our
strengthened capital structure, which provides the financial
foundation upon which to sustainably continue our growth and
success as a North American wheel company in 2025 and beyond. We
look forward to continuing to serve our team members, customers,
suppliers, and all stakeholders in the bright future we have
ahead."
The confirmed Plan was supported by a substantial majority of
Accuride's financial and operational stakeholders, including
Crestview, its financial sponsor; 100% of its prepetition term loan
/ DIP lenders who voted on the Plan; 100% of its ABL lenders; and
the unsecured creditors' committee that includes the United Auto
Workers union, Pension Benefit Guaranty Corporation, and key
suppliers.
Kirkland & Ellis is serving as legal counsel, Perella Weinberg is
serving as investment banker and Alvarez & Marsal is serving as
restructuring advisor to Accuride. The members of the ad-hoc group
of lenders are represented by Weil, Gotshal & Manges LLP as legal
counsel and Lazard as investment banker.
For additional information about Accuride's restructuring,
including access to court filings and other documents related to
the Court-supervised process, please visit
cases.omniagentsolutions.com/accuride, call (866) 956-2136 (U.S. &
Canada) and (747) 263-0154 (International).
About Accuride Corp.
Accuride Corporation and its affiliates are a global leader in
steel and aluminum wheels and wheel-end components and assemblies,
supplying innovative products to over 1,000 customers in the
commercial vehicles, passenger cars, agriculture, construction and
industrial equipment markets.
Headquartered in Livonia, Michigan, the Debtors are part of a
global enterprise that employs approximately 3,600 individuals at
facilities in the United States, Canada, Mexico, Germany, France,
Turkey, Russia, and China.
Accuride's U.S. entities first filed for Chapter 11 protection in
October 2009, also in Delaware, to restructure in excess of $675
million in debt. The Court confirmed the Company's Plan of
Reorganization in February 2010.
On Oct. 9, 2024, Accuride Corp. and its U.S. entities filed
voluntary petitions for protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12289). Accuride
reported $500 million to $1 billion in assets and liabilities as of
the bankruptcy filing.
In the new Chapter 11 cases, the Debtors tapped Kirkland & Ellis
LLP as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP, as
local bankruptcy counsel; Quinn Emanuel Urquhart & Sullivan, LLP as
special counsel; Perella Weinberg Partners LP as investment banker;
and Deloitte & Touche LLP as independent auditor. Alvarez & Marsal
North America, LLC is the CRO provider and Omni Agent Solutions is
the claims agent.
On Dec. 10, 2024, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped McDermott Will & Emery LLP as counsel.
ACCURIDE CORP: Guggenheim Marks $720,066 Loan at 52% Off
--------------------------------------------------------
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust has
marked its $720,066 loan extended to Accuride Corp to market at
$344, 192 or 48% of the outstanding amount, according to a
disclosure contained in Guggenheim's Form N-CSR for the Fiscal year
ended November 30, 2024, filed with the Securities and Exchange
Commission.
Guggenheim is a participant in a Bank Loan to Accuride Corp. The
loan accrues interest at a rate of 6.06% (1 Month Term SOFR +
6.87%, Rate Floor: 7.87%) per annum. The loan matures on May 18,
2026.
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust was
organized as a Delaware statutory trust on June 30, 2010. The Trust
is registered as a diversified, closed-end management investment
company under the Investment Company Act of 1940, as amended.
Guggenheim is led by Brian E. Binder, President and Chief Executive
Officer; and James Howley, Chief Financial Officer, Chief
Accounting Officer and Treasurer. The Fund can be reach through:
Brian E. Binder
Guggenheim Taxable Municipal Bond &
Investment Grade Debt Trust
227 West Monroe Street, Chicago, IL 60606
Naperville, IL 60563-2787
Telephone: (312) 827-0100
- and -
Amy J. Lee
227 West Monroe Street, Chicago, IL 60606
Naperville, IL 60563-2787
Telephone: (312) 827-0100
Accuride Corporation is a diversified manufacturer and supplier of
commercial vehicle components in North America. Based in Livonia,
Michigan, the company designs, manufactures and markets commercial
vehicle components. Accuride’s brands are Accuride Wheels, Gunite
Wheel End Components, and KIC Wheel End Components.
AEMETIS INC: BlackRock Reports 4.9% Equity Stake as of Dec. 31
--------------------------------------------------------------
BlackRock, Inc. disclosed in Schedule 13G/A Report filed with the
U.S. Securities and Exchange Commission that as of December 31,
2024, it beneficially owned 2,460,864 shares of Aemetis, Inc.'s
common stock, representing 4.9% of the shares outstanding.
BlackRock may be reached at:
Spencer Fleming
BlackRock, Inc.
50 Hudson Yards
New York, NY 10001
Tel: (212) 810-5800
A full-text copy of BlackRock's SEC Report is available at:
https://tinyurl.com/286dbnsu
About Aemetis
Headquartered in Cupertino, California, Aemetis -- www.aemetis.com
-- is a renewable natural gas, renewable fuel, and biochemicals
Company focused on the operation, acquisition, development, and
commercialization of innovative technologies that replace
petroleum-based products and reduce greenhouse gas emissions.
Founded in 2006, Aemetis is operating and actively expanding a
California biogas digester network and pipeline system to convert
dairy waste gas into Renewable Natural Gas. Aemetis owns and
operates a 65 million gallon per year ethanol production facility
in California's Central Valley near Modesto that supplies about 80
dairies with animal feed. Aemetis also owns and operates a 60
million gallon per year production facility on the East Coast of
India producing high-quality distilled biodiesel and refined
glycerin for customers in India and Europe. Additionally, Aemetis
is developing a sustainable aviation fuel (SAF) and renewable
diesel fuel biorefinery in California to utilize renewable
hydrogen, hydroelectric power, and renewable oils to produce low
carbon intensity renewable jet and diesel\fuel.
As a result of negative capital, negative operating results, and
collateralization of substantially all of the Company assets, the
Company has been reliant on its senior secured lender to provide
extensions to the maturity dates of its debt and loan facilities
and was required in 2023 to remit excess cash from operations to
its senior secured lender. In order to meet its obligations, the
Company will need to refinance debt with its senior lender for
amounts becoming due in the next 12 months or receive the continued
cooperation of its senior lender. This dependence on the Company's
senior lender raises substantial doubt about the Company's ability
to continue as a going concern, according to the Company's
Quarterly Report on Form 10-Q for the period ended September 30,
2024.
Aemetis reported a net loss of $46.42 million for the year ended
Dec. 31, 2023, compared to a net loss of $107.76 million for the
year ended Dec. 31, 2022. As of September 30, 2024, the Company had
$247.4 million in total assets, $506.3 million in total
liabilities, and $258.9 million in total stockholders' deficit.
AGEMY FAMILY: Seeks Chapter 11 Bankruptcy Protection in Florida
---------------------------------------------------------------
On February 9, 2025, Agemy Family Corporation filed Chapter 11
protection in the U.S. Bankruptcy Court for the Middle District of
Florida.
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 Agemy Family Corporation
Agemy Family Corporation operating as Quality Plus Dry Cleaners,
offers professional dry cleaning, laundry services, and clothing
alterations. They provide same-day service, along with convenient
pickup and delivery options.
Agemy Family Corporation sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00814) on February
9, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Roberta A. Colton handles the case.
The Debtor is represented by:
David W. Steen, Esq.
DAVID W. STEEN, P.A.
P.O. Box 270394
Tampa, FL 33688
Tel: 813-251-3000
E-mail: dwsteen@dsteenpa.com
AIMBRIDGE ACQUISITION: $199MM Bank Debt Trades at 35% Discount
--------------------------------------------------------------
Participations in a syndicated loan under which Aimbridge
Acquisition Co Inc is a borrower were trading in the secondary
market around 64.9 cents-on-the-dollar during the week ended
Friday, February 14, 2025, according to Bloomberg's Evaluated
Pricing service data.
The $199 million Term loan facility is scheduled to mature on
February 2, 2026. The amount is fully drawn and outstanding.
Aimbridge Acquisition Co Inc owns and operates a chain of hotels.
The Company offers its services in the United States.
ALI A. ASKARI MD: Case Summary & 15 Unsecured Creditors
-------------------------------------------------------
Debtor: Ali A. Askari MD PC
1331 North 7th Street Suite 400
Phoenix, AZ 85006
Business Description: Ali A. Askari MD PC is a medical practice
that specializes in cardiology, focusing on
the diagnosis and treatment of heart-related
conditions. Dr. Ali Askari, the principal
physician, offers a range of cardiology
services, including consultative cardiology,
catheterization, interventional cardiology,
and non-invasive cardiology.
Chapter 11 Petition Date: February 14, 2025
Court: United States Bankruptcy Court
District of Arizona
Case No.: 25-01263
Judge: Hon. Madeleine C Wanslee
Debtor's Counsel: Mark J. Giunta, Esq.
LAW OFFICE OF MARK J. GIUNTA
531 East Thomas Road
Suite 200
Phoenix, AZ 85012
Tel: 602-307-0837
Fax: 602-307-0838
E-mail: markgiunta@giuntalaw.com
Total Assets: $828,201
Total Liabilities: $1,163,072
The petition was signed by Ali Askari as owner.
A full-text copy of the petition, which includes a list of the
Debtor's 15 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/DNDTTIY/ALI_A_ASKARI_MD_PC__azbke-25-01263__0001.0.pdf?mcid=tGE4TAMA
ALL CRAFT: To Sell Zephyrhills Property to American Nautical
------------------------------------------------------------
All Craft Marine Holdings LLC (ACMH) and its subsidiary, All Craft
Marine LLC (ACM), seeks permission from the U.S. Bankruptcy Court
for the Middle District of Florida, Tampa Division, to sell
substantially all of its assets to American Nautical Holdings, LLC,
free and clear of all liens, claims, and encumbrances.
ACMH owns approximately eight acres of property in Zephyrhills,
Florida that includes a 52,000 square foot industrial warehouse.
ACM does business as Century Boats, and is a leading manufacturer
of luxury fishing boats. Century Boats is a classic American brand
that dates back to 1926. Century Boats offers a variety of boat
models ranging from 22 feet to 41 feet that it sells through its
network of dealerships or to private customers.
The Debtors employ Northmarq Commercial – Team Cohen to market
the facility for sale, either on an as-vacant basis or on a
sale-leaseback basis.
Additionally, Lloyd Sorenson, the manager of the manager of the
Debtors, has expended a significant amount of effort locating a
buyer or potential buyers, and has contacted a number of
potentially interested parties.
The Stalking Horse Bid is the highest and best offer received on
which the Debtors can move to a closing and is subject to a
court-approved process and the possibility of higher and better
offers.
The Debtors and American Nautical Holdings, LLC executed an offer
and intend to enter into an asset purchase agreement with the
Stalking Horse Bidder providing for the sale of the Assets by the
Debtors.
The Assets are to be sold and the Debtors shall convey the Assets
free and clear of any and all liens, claims, and encumbrances as
expressly set forth in the Stalking Horse Bid or any higher and
better bid. The Stalking Horse Bidder (or the Successful Bidder)
shall have no liability or assume any other obligations of the
Debtors arising under or related to any of the Assets on account of
the sale.
Pursuant to the Stalking Horse Bid, the consideration to be paid by
the Stalking Horse Bidder for the Purchased Assets shall be the
total amount of $6 million, less an amount sufficient to pay
court-approved legal fees and expenses of the Debtors'
professionals up to the amount of $75,000 net of any other sources
of payment, plus any Cure Amounts.
The Debtors conclude that the consummation of the sale, subject to
any higher and better offer at the Auction, will best maximize the
value of the Debtors’ estates for the benefit of the Debtors'
creditors.
The Debtors propose a competitive auction for the sale of the
Assets, as contemplated by the Bid Procedures Order to ensure the
highest possible recovery of the Debtor's estates.
About All Craft Marine Holdings LLC
All Craft Marine Holdings LLC is a limited liability company.
All Craft Marine Holdings LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.: 25-00129) on
January 10, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Roberta A. Colton handles the case.
Daniel R. Fogarty, Esq. of Stichter, Riedel Blain & Postler, P.A.
represents the Debtor as counsel.
ALL INCLUSIVE: Court Extends Cash Collateral Access to Feb. 20
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas
granted All Inclusive 4DL, LLC interim authorization to use cash
collateral.
The interim order authorized the company to use cash collateral to
pay the expenses set forth in its budget, with a 10% variance.
The budget expires on Feb. 20, at which time the company's
authority to use cash collateral shall te1minate.
As protection for the use of their cash collateral, secured
creditors will receive replacement liens on post-petition accounts
receivable and deposit accounts, subject to a $20,000 carveout for
administrative fees and expenses.
The next hearing is scheduled for Feb. 20.
About All Inclusive 4DL
All Inclusive 4DL, LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Texas Case No. 24-36024) on December
24, 2024, with $50,000 to $100,000 in assets and $100,000 to
$500,000 in liabilities.
Judge Eduardo V. Rodriguez handles the case.
The Debtor is represented by:
Aaron W. McCardell, Sr.
The Mccardell Law Firm, PLLC
Tel: 713-236-8736
Email: amccardell@mccardelllaw.com
ALLEN MEDIA: S&P Affirms 'CCC+' ICR on Successful Debt Repayment
----------------------------------------------------------------
S&P Global Ratings removed all its ratings on Los Angeles-based
media company Allen Media LLC from CreditWatch, where it placed
them with negative implications on Jan. 28, 2025, and affirmed the
'CCC+' issuer credit rating.
S&P said, "At the same the same, we affirmed our 'CCC+' issue-level
rating on Allen Media's first-lien debt and our 'CCC-' issue-level
rating on its senior unsecured notes. Our '3' recovery rating on
the company's first-lien debt and '6' recovery rating on its senior
unsecured notes are unchanged.
"The negative outlook reflects the potential that we will lower our
ratings on Allen Media if we envision a default in the next 12
months, which could occur if its operating performance and
financial trends remain challenged. Alternatively, we could lower
our rating if the company pursues a subpar debt repurchase or
exchange, which we would likely view as tantamount to a selective
default."
S&P Global Ratings expects that Allen Media will maintain
sufficient liquidity over the next 12 months. The company repaid
its revolving credit facility on Feb. 10, 2025, using the proceeds
from its issuance of new senior secured notes due 2029, which
feature a springing maturity of February 2027. While this
transaction decreased Allen Media's short-term refinancing risk, it
still faces elevated refinancing risk in 2027 and 2028. While the
company no longer has a revolving credit facility, we believe its
pro forma cash on hand and expected cash flow from operations of
$100 million in 2025 will be about 1.9x its amortization, capital
spending, and working capital outflows this year.
S&P said, "The 'CCC+' rating reflects our view that Allen Media is
dependent on favorable business, financial, and economic conditions
to meet its financial obligations. The company has announced
additional cost-savings measures in response to its weaker credit
metrics and free operating cash flow (FOCF) generation over the
past couple of years. We expect that Allen Media's revenue will
decline by the mid-single-digit percent area in 2025, which is a
non-election year. Despite management's cost reductions, we expect
the muted improvements in the company's EBITDA and discretionary
cash flow will be insufficient to materially reduce its debt,
causing its leverage to remain in the mid-7x area in 2025. If Allen
Media needed to refinance its significant debt load at current
market yields, we believe it is highly unlikely that it would
generate positive FOCF. Therefore, we believe the company is
dependent on favorable business, financial, and economic conditions
to meet its financial obligations, including a sustained recovery
in the broader cable industry, an accelerated expansion in
advertising and retransmission revenue, and a greater-than-forecast
decline in interest rates.
"The negative outlook reflects the potential that we will lower our
ratings on Allen Media if we envision a default in the next 12
months, which could occur if its operating performance and
financial trends remain challenged. Alternatively, we could lower
our rating if the company pursues a subpar debt repurchase or
exchange, which we would likely view as tantamount to a selective
default."
S&P could lower its rating on Allen Media if:
-- Its operating performance deteriorates further such that we no
longer expect it will be able to cover its fixed-charge payments,
including its interest payments; or
-- S&P expects the company will pursue a debt restructuring over
the next 12 months.
S&P could raise its rating on Allen Media if it successfully
refinances its 2027 and 2028 debt maturities at rates that position
it to generate consistently positive FOCF while maintaining EBITDA
interest coverage of comfortably above 1.5x. This could occur if
the company successfully executes its growth plan and generates
materially higher FOCF and interest rate coverage.
ALLIED CORP: Calum Hughes Resigns as CEO, Director
--------------------------------------------------
Allied Corp. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that Calum Hughes resigned as
Chief Executive Officer and a Director of the Company, effective
January 30, 2025.
The Company wishes him well in his next position.
About Allied Corp.
Headquartered in Kelowna, BC, Canada, Allied Corp. is an
international cannabis company with its main production center in
Colombia, is one of the few companies that has exported from
Colombia internationally, and among the first company to export
commercial cannabis flower from Colombia. By leveraging the
Colombian advantages and its Canadian cannabis cultivation
expertise, Allied offers consistent supply of premium cannabis
product at scale and attractive prices, while meeting high quality
standards, thus significantly de-risking its partners supply
chain.
The Woodlands, TX-based M&K CPAS, PLLC, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
Dec. 16, 2024. The report highlights that the Company has suffered
net losses from operations, has a net capital deficiency, and has
minimal revenue, which raise substantial doubt about its ability to
continue as a going concern.
As of Nov. 30, 2024, Allied Corp. had $1.95 million in total
assets, $9.59 million in total liabilities, and a total
stockholders' deficit of $7.64 million.
AMITY COURT: Seeks Chapter 11 Bankruptcy Protection in Washington
-----------------------------------------------------------------
On February 11, 2025, Amity Court LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Eastern District of
Washington.
According to court filing, the Debtor reports $5,775,823 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About Amity Court LLC
Amity Court LLC is the owner of the property situated at 14400
Northeast Bellevue-Redmond Road, Bellevue, Washington 98007, which
has an appraised value of $7.78 million.
Amity Court LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Wash. Case No. 25-00240) on February
11, 2025. In its petition, the Debtor reports total assets of
$7,988,279 and total liabilitiesof $5,775,823
Honorable Bankruptcy Judge Whitman L. Holt handles the case.
The Debtor is represented by:
James L. Day, Esq.
BUSH KORNFELD LLP
601 Union St., Suite 5000
Seattle, WA 98101-2373
Tel: (206) 292-2110
Fax: (206) 292-2104
E-mail: jday@bskd.com
ANTIGONE SKOULAS: Seeks Subchapter V Bankruptcy in California
-------------------------------------------------------------
On February 9, 2025, Antigone Skoulas D.D.S. Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of California.
According to court filing, the Debtor reports $1,568,196in
debt owed to 1 and 49 creditors. The petition states funds will
not be available to unsecured creditors.
About Antigone Skoulas D.D.S. Inc.
Antigone Skoulas D.D.S. Inc. is a dental practice in San Francisco
specializing in cosmetic and restorative dentistry, offering
services like implant restorations, Invisalign, dentures, and TMJ
treatment. With a focus on advanced digital technology and artistic
expertise, the practice provides compassionate care and exceptional
results to help patients achieve their best smiles.
Antigone Skoulas D.D.S. Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-30100) on
February 9, 2025. In its petition, the Debtor reports total assets
of $133,991 and total liabilities of $1,568,196.
Honorable Bankruptcy Judge Hannah L. Blumenstiel handles the
case.
The Debtor is represented by:
Brent D. Meyer, Esq.
MEYER LAW GROUP, LLP
268 Bush Street #3639
San Francisco, CA 94104
Tel: (415) 765-1588
Fax: (415) 762-5277
E-mail: brent@meyerllp.com
APPLE BIDCO: Moody's Affirms B2 CFR & Rates New First Lien Debt B2
------------------------------------------------------------------
Moody's Ratings affirmed its ratings of Apple Bidco, LLC
(Atlantic), including the B2 corporate family rating and the B2-PD
probability of default rating. Concurrently, Moody's assigned a B2
rating to the company's new senior secured first lien credit
facility comprised of a revolver and a term loan. Proceeds from the
$3.2 billion term loan will be used to make a $665 million dividend
to shareholders and to paydown existing indebtedness. Moody's took
no action on the existing senior secured debt and expect that these
ratings will be withdrawn upon transaction close. The ratings
outlook remains stable.
RATINGS RATIONALE
The B2 CFR balances Atlantic's high financial leverage and heavy
exposure to the cyclical general aviation market against the
company's strong position as the second largest fixed-base operator
(FBO) within the US. Moody's anticipate pro forma debt-to-EBITDA of
around 7 times after the proposed dividend recap. Atlantic
maintains an aggressive financial policy with the company having
returned around $1.2 billion to shareholders over the last two
years (inclusive of the pending dividend).
The B2 CFR is supported by Atlantic's scale advantages that arise
from its geographically diverse footprint of 104 locations, many of
which are situated in high traffic metropolitan locations.
Atlantic's strong gross margin reflects its good competitive
standing within the highly fragmented FBO industry where the
company benefits from its position as either the sole or joint
provider of FBO services at 75% of its locations. Meaningful
barriers to entry, including long-dated leases and limited
developable land at many FBO airports, add further credit support.
Moody's expect positive free cash generation in 2025 with
FCF-to-debt (before dividends) in the low single-digits.
Moody's view the FBO industry as being cyclical and vulnerable to
economic downturns with flight volumes strongly correlated with
changes in GDP. Atlantic's dividend and the resultant increase in
financial risk that limits near-term financial flexibility comes at
a time of elevated economic uncertainty.
The stable outlook reflects Moody's expectation of modest earnings
growth over the next 12 to 18 months, which will result in a
gradual improvement in Atlantic's credit metrics.
Moody's expect Atlantic to maintain good liquidity over the next 12
months. Cash will be around $220 million at the close of the
transaction. Moody's expect positive free cash generation during
2025 with FCF-to-debt (before dividends) in the low single-digits.
Amortization on term debt is 1% or $33 million per annum and
Atlantic has no near-term principal obligations. External liquidity
is expected to be provided by a $400 million revolving credit
facility that expires in 2029. Moody's do not expect Atlantic to be
reliant on the facility. The revolver is expected to contain a
springing first lien net leverage ratio of 9.5x that comes into
effect when revolver usage exceeds 40% of the facility. The term
loan facilities are covenant lite.
A comprehensive review of all credit ratings for the respective
issuer(s) has been conducted during a rating committee.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to a ratings upgrade include improved
liquidity with free cash flow-to-debt consistently in the
mid-single digits and a more conservative financial policy with
debt-to-EBITDA sustained below 6x.
Factors that could lead to a ratings downgrade include lower
general aviation traffic volumes that result in weaker earnings.
Debt-to-EBITDA above 7x, EBITDA-to-Interest below 2.5x, or
weakening liquidity could also result in a downgrade.
Apple Bidco, LLC ("Atlantic"), headquartered in Plano, Texas, is a
fixed base operator (FBO) at 104 general aviation locations across
the US. The company's FBOs provide fueling and fuel related
services, aircraft parking and hangar services to owners/operators
of jet aircraft, primarily in the general aviation sector of the
air transportation industry, but also to commercial, military,
freight and government aviation customers. Atlantic is
majority-owned by affiliates of KKR & Co.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
APPLIED MINERALS: Claims to be Paid From Available Cash and Income
------------------------------------------------------------------
Applied Minerals, Inc. filed with the U.S. Bankruptcy Court for the
District of Utah a Plan of Reorganization dated February 5, 2025.
This Plan treats all Claims against the Debtor, the Debtor's
Property, and against the Estate. Only Allowed Claims receive any
distribution under this Plan.
Class 2 shall consist of all Allowed General Unsecured Claims
against the Debtor, excepting and excluding Convenience Claims.
Class 2 is impaired under the Plan. Each holder of an Allowed Class
2 Claim shall receive, in full satisfaction of its claim: (a)
distribution of shares of New Equity in the Reorganized Debtor
(i.e., a Pro Rata Share of the Class 2 Stock Distribution); and (b)
an option to purchase additional New Equity pursuant to the
Supplemental Stock Purchase Option.
* As more fully described in section 5.8 of this Plan, a total
of One Hundred Nineteen Thousand Six Hundred Twenty-Five (119,625)
shares of new common stock (i.e., New Stock) in the Reorganized
Debtor will be authorized and issued (or authorized and reserved)
on the Effective Date. As described, eighty-seven thousand shares
of New Stock shall be issued and distributed to Halloysite. The
remaining shares of New Stock shall be distributed or reserved as
described in sections 4.2.2.2, 4.2.2.3, 5.8.2 and 5.8.3 of this
Plan.
* A total of Twenty-One Thousand Seven Hundred Fifty shares of
New Stock shall be distributed, pro rata, to the holders of Allowed
Class 2 Claims (the "Class 2 Stock Distribution"). Each holder of
an Allowed Class 2 Claim shall receive, on the Effective Date, a
Pro Rata Share of the Class 2 Stock Distribution rounded down to
the lowest whole number share. To the extent rounding down to the
lowest whole number share results in less than 21,750 shares of New
Stock being delivered (or reserved as part of the Disputed Claims
Reserve) under this subsection 4.2.2.2 of the Plan, then any such
shares not distributed shall be cancelled and shall no longer be
authorized.
* Ten Thousand Eight Hundred Seventy-Five shares of New Stock
shall be authorized and reserved to be sold and distributed to the
holders of Allowed Class 2 Claims that exercise the "Supplemental
Stock Purchase Option."
Class 7 shall consist of all Existing Equity Interests in the
Debtor. Holders of Existing Equity Interests are not entitled to
receive a recovery or distribution on account of such Existing
Equity Interests. On the Effective Date, Existing Equity Interests
shall be canceled, terminated, released, discharged, and
extinguished, and shall be of no further force or effect. Class 7
is Impaired and Holders of Existing Equity Interests are deemed to
have rejected this Plan pursuant to Section 1126(g) of the
Bankruptcy Code.
Class 10 shall consist of all Allowed Convenience Claims against
the Reorganized Debtor. On or before sixty days after the Effective
Date and in full satisfaction of each such Claim, the holders of
Allowed Class 10 Claims shall receive a pro rata share of the
Convenience Claims Fund, divided among the holders of all Allowed
Class 10 Claims. Class 10 is impaired under the Plan. Each holder
of an Allowed Class 10 Convenience Claim shall be entitled to vote
to accept or reject the Plan.
Each holder of an Allowed Class 10 Convenience Claim may make a
Class 2 Treatment Election, unless and excepting any holder of a
Class 10 Claim that became a Convenience Claim by making a
Convenience Class Election. If the holder of an Allowed Class 10
Claim timely makes a Class 2 Treatment Election, then the Claim (a)
shall be a Class 2 Claim, (b) shall be treated as specified in
section 4.2 of this Plan, and (c) shall not receive treatment as a
Class 10 Claim, including as specified in sections 4.10.2 of this
Plan.
Except as otherwise provided in this Plan, the Reorganized Debtor,
as of the Effective Date, shall be vested with all of the assets of
the Estate.
From and after the Effective Date of the Plan, the Reorganized
Debtor is authorized to continue its normal business operations and
enter into such transactions as it deems advisable, free of any
restriction or limitation imposed under any provision of the
Bankruptcy Code, except to the extent otherwise provided in the
Plan. In its sole discretion, the Reorganized Debtor may use the
Operations Funds to continue its normal business operations upon
the Effective Date.
The Debtor's future operations and all payments and cash
distributions to Creditors shall be funded and paid from the
following sources:
* Cash on Hand as of the Effective Date. The Debtor may use any
and all cash on hand held by the Debtor on the Effective Date, from
any source, to fund payment of operating expenses, payment of cash
distributions required under the Plan, and for any other purpose
determined by the Debtor in the exercise of its business judgment.
* Cash Derived from Future Operations and/or Sales of Assets.
The Debtor may use any and all cash derived from operating the
Debtor's business and/or from selling assets of the Debtor, from
any source, to fund payment of operating expenses, payment of cash
distributions required under the Plan, and for any other purpose
determined by the Debtor in the exercise of its business judgment.
* Plan Funding Transaction. On or before the Effective Date,
Halloysite shall advance and/or fund to the debtor the aggregate
principal amount of $870,000, including (a) all principal amounts
advanced by Halloysite to the Debtor pursuant to the DIP Credit
Agreement prior to the Effective Date, (b) any funds remaining and
not yet advanced under the DIP Credit Agreement (which contemplated
advances totaling $500,000), plus (b) an additional $370,000 in
principal amount. The amounts funded to the Debtor by Halloysite
pursuant to the Plan Funding Transaction shall be allocated as
follows: up to $30,000, the Convenience Claims Fund, shall be
earmarked to pay General Unsecured Claims in the Convenience Class;
and a portion of the remaining funds loaned and/or otherwise funded
as part of the Plan Funding Transaction shall be used or reserved
to pay Administrative Expenses and Priority Claims, in the
following order of priority:
-- first, pursuant to section 507(a)(2) of the Bankruptcy
Code, in payment of Allowed Administrative Expenses, including
compensation to the attorneys and other Professionals of the Debtor
as contemplated under section 2.2.4 of the Plan,
-- second, pursuant to section 507(a)(2) of the Bankruptcy
Code, payment of (or a reserve for payment of) Administrative
Expenses arising or coming due after the Effective Date including
(A) all post-Effective Date quarterly fee payments to the United
States Trustee, and (B) all compensation for actual services
provided and reimbursement of expenses incurred by Professionals
providing post-Effective Date services for the Reorganized Debtor,
in providing general bankruptcy-related and plan-related
professional services after the Effective Date, in connection with
(x) investigating or objecting to Claims and (y) in investigating
or pursuing recovery of Avoidance Actions,
-- third, after the foregoing amounts are paid or reserved,
payments due to the holders of holders of Class 1 Claims holding
claims Allowed under sections 507(a)(4) and 507(a)(5) of the
Bankruptcy Code, for certain unpaid wages or employment benefits,
-- fourth, subject to sections 2.3.2 and 2.3.3 of this Plan
(including, if applicable, subject to the discretion and election
of the Debtor and Halloysite under section 2.3.3 of this Plan),
after the foregoing amounts are paid or reserved, payments due to
the holders of Allowed Priority Tax Claims, entitled to priority in
payment pursuant to section 507(a)(8) of the Bankruptcy Code, as
described in section 2.3.2 and 2.3.3. of this Plan, with all such
Claims of equal priority paid pro rata, with a pro rata reserve for
any disputed Priority Claims that, as of the date of distribution,
have neither been Allowed nor disallowed, until such Claims have
been paid (or reserved for) in full, and
-- fifth, after the foregoing amounts are paid or reserved,
payments due to the holders of Allowed Priority Claims entitled to
priority in payment pursuant to sections 507(a)(9) through (a)(10)
of the Bankruptcy Code in order of the priority prescribed in
section 507(a) of the Code, with all such Claims of equal priority
paid pro rata, with a pro rata reserve for any disputed Priority
Claims that, as of the date of distribution, have neither been
Allowed nor disallowed, until such Claims have been paid (or
reserved for) in full; and
-- all remaining or additional amounts shall be used and/or
treated as part of the Operations Fund.
A full-text copy of the Plan of Reorganization dated February 5,
2025 is available at https://urlcurt.com/u?l=Ld8hsC from
PacerMonitor.com at no charge.
The Debtor's Counsel:
Matthew M. Boley, Esq.
COHNE KINGHORN, P.C.
111 E. Broadway, 11th Floor
Salt Lake City, UT 84111
Tel: 801-363-4300
E-mail: mboley@cohnekinghorn.com
About Applied Minerals, Inc
Applied Minerals, Inc. is a minerals exploration and mining
company.
Applied Minerals, Inc. in Eureka, UT, sought relief under Chapter
11 of the Bankruptcy Code filed its voluntary petition for Chapter
11 protection (Bankr. D. Utah Case No. 24-25849) on Nov. 11, 2024,
listing $1 million to $10 million in assets and $50 million to $100
million in liabilities. Christopher T. Carney as president and
chief executive officer, signed the petition.
Judge Joel T Marker oversees the case.
COHNE KINGHORN, P.C. serve as the Debtor's legal counsel.
APPTECH PAYMENTS: Director Walsh Reports Beneficial Ownership
-------------------------------------------------------------
Calvin D. Walsh, Director of AppTech Payments Corp. (APCX),
disclosed in a Form 3 filed with the U.S. Securities and Exchange
Commission that as of February 5, 2025, he beneficially owned
500,000 shares of common stock indirectly through CDW App Tech LLC,
as well as warrants to purchase an additional 1,250,000 shares of
common stock at exercise prices of $0.90 and $1.20 per share, also
held indirectly through the LLC.
A full-text copy of Mr. Walsh's SEC Report is available at:
https://tinyurl.com/y3th53x9
About AppTech Payments Corp.
Headquartered in Carlsbad, California, AppTech Payments Corp. --
www.apptechcorp.com -- provides digital financial services for
financial institutions, corporations, small and midsized
enterprises, and consumers through the Company's scalable
cloud-based platform architecture and infrastructure, coupled with
its Specialty Payments development and delivery model. AppTech
maintains exclusive licensing and partnership agreements in
addition to a full suite of patented technology capabilities.
San Diego, California-based DBBMcKennon, the Company's auditor
since 2014, issued a "going concern" qualification in its report
dated April 1, 2024, citing that the Company has limited revenues
and has suffered recurring losses from operations. These conditions
raise substantial doubt about the Company's ability to continue as
a going concern.
As of September 30, 2024, AppTech Payments had $6.6 million in
total assets, $5.2 million in total liabilities, and $1.4 million
in total stockholders' equity.
ARCH THERAPEUTICS: M. Abrams Steps Down as CFO, Treasurer
---------------------------------------------------------
Arch Therapeutics, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that on February 3,
2025, Michael S. Abrams, the Company's Chief Financial Officer and
Treasurer resigned from his positions, effective immediately, and
has waived any potential rights or claim to any financial
obligations under his employment contract.
Effective February 3, 2025, the Company has appointed Terrence W.
Norchi, who serves as the Company's Chief Executive Officer,
Chairman, President and Secretary, to the roles of Principal
Accounting Officer and Treasurer.
About Arch Therapeutics Inc.
Framingham, Mass.-based Arch Therapeutics, Inc. is a biotechnology
company focused on developing and marketing products based on its
innovative AC5 self-assembling technology platform.
Los Angeles, Calif.-based Weinberg & Company, P.A., the company's
auditor since 2024, issued a "going concern" qualification in its
report dated February 14, 2024. The report indicated that during
the year ended September 30, 2023, the company incurred a net loss
and utilized cash flows in operations, with recurring losses since
inception. These conditions raise substantial doubt about the
company's ability to continue as a going concern.
For the year ended September 30, 2023, Arch Therapeutics recorded
a
net loss of $6,982,836. As of June 30, 2024, the company had
$1,397,644 in total assets, $13,958,210 in total current
liabilities, and $12,560,566 in total stockholders' deficit.
ARTEX TELECOMMUNICATIONS: Files Chapter 11 Bankruptcy in Texas
--------------------------------------------------------------
On February 10, 2025, Artex Telecommunications LLC filed Chapter
11 protection in the U.S. Bankruptcy Court for the Eastern
District of Texas.
According to court filing, the Debtor reports $2,606,260 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About Artex Telecommunications LLC
Artex Telecommunications LLC is a telecommunications company
operating in the telephone services industry. In addition to its
core services, Artex Telecommunications LLC is also involved in
various construction projects, including the installation of
underground cables and utility systems.
Artex Telecommunications LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Tex. Case No. 25-40361) on
February 10, 2025. In its petition, the Debtor reports total assets
of $142,200 and total liabilities $2,606,260.
Honorable Bankruptcy Judge Brenda T. Rhoades handles the case.
The Debtor is represented by:
Robert T DeMarco, Esq.
DEMARCO MITCHELL, PLLC
12770 Coit Road, Suite 850
Dallas, TX 75251
Tel: (972) 991-5591
E-mail: robert@demarcomitchell.com
ASP DREAM: $50MM Incremental Loan No Impact on Moody's 'B3' CFR
---------------------------------------------------------------
Moody's Ratings said ASP Dream Acquisition Co LLC's ("FullBloom")
$50 million incremental first lien term loan due December 2028 does
not affect the company's B3 Corporate Family Rating, B3-PD
Probability of Default Rating, or the B3 ratings of the senior
secured first lien bank credit facilities consisting of the
revolving credit facility and upsized term loan. FullBloom will
utilize the proceeds from the incremental term loan along with $20
million management rollover equity to fund the acquisition of
CharacterStrong, and pay related financing and transaction fees.
The stable rating outlook is not affected.
Moody's consider this transaction as credit negative because the
increase in debt raises interest costs and reduces free cash flow.
Nevertheless, all existing ratings are unaffected at this time as
debt-to-EBITDA remains at 6.5x as of October 31, 2024 and pro forma
for the transaction. Moody's expect the company to have good
liquidity over the next 12 month, mostly due to higher collection
of aged accounts receivable. The cash on hand and free cash flow in
the next 12 month are sufficient to cover about $6.2 million annual
term loan amortization and the additional $4-5 million interest
costs.
CharacterStrong is a leading provider of subscription-based social,
emotional and learning products. The business is complimentary to
FullBloom's existing portfolio and will expand the company's
product offerings in the mental health segment. FullBloom is
actively working to grow through investment and acquisitions to
partially offset the revenue loss due to the ending of EANS-related
programs.
RATINGS RATIONALE
The B3 CFR broadly reflects FullBloom's modest scale, high
financial leverage, modest but improving free cash flow and
acquisition event risk. The company is exposed to cost increases on
fixed price contracts, which are only priced annually. FullBloom
must also attract and maintain a skilled workforce including
teachers that provide services to special needs children and
underperforming students. Over the next 12-18 months, Moody's
expect some revenue and earnings headwinds amid the end of pandemic
related federal stimulus such as the Emergency Assistance to
Non-Public Schools (EANS) program. FullBloom is actively working to
grow through investment and new business, but it will take some
time for the company to ramp up and expand new businesses to offset
the revenue loss due to the ending of EANS-related programs. The
ratings are supported by FullBloom's steady federal funding of
targeted programs aside from the temporary EANS funding, services
expansion to adjacent areas such as mental health, and high
customer renewal rates. Though the market is highly fragmented,
FullBloom is a leading player in the sub segments of the K-12
academic intervention, special education and behavioral health
services markets. The company has strong market positions for its
academic intervention business with non-public schools and its
outsourced in-district classrooms business. Other segments of
FullBloom's business are more competitive. FullBloom's
debt-to-EBITDA was 6.5x for the 12 months ended October 31, 2024,
pro forma for the proposed add-on term loan and purchase of
CharacterStrong. Moody's expect the company's debt-to-EBITDA will
remain in a low-to-mid 6.0x range as a result of earnings headwinds
amid the sunset of EANS funding. The company's free cash flow is
modest but improving because collections from a large customer
continue to improve. Moody's anticipate free cash flow to improve
to more than $25 million in the next 12 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable ratings outlook reflects Moody's expectation that over
the next 12-18 months, FullBloom will grow revenue and EBITDA in
mental health, special education, and other segments to partially
replace revenue and earnings from the existing EANS related
programs that are being sunset. Additionally, Moody's expect the
company to maintain adequate liquidity and improve free cash flow
to more than $25 million because collections with a large customer
continue to improve.
The ratings could be upgraded if the company delivers sustained
organic revenue and earnings growth, and reduces and sustains
Moody's adjusted debt-to-EBITDA below 6.0x. Solid and consistent
free cash generation resulting in free cash flow as a percentage of
debt sustained above 5% is also necessary for an upgrade.
The ratings could be downgraded if the company's operating
performance weakens through factors such as contract losses, damage
to its reputation, or an inability to mitigate cost increases. A
more aggressive financial policy, EBITA-to-interest expense less
than 1.0x, weak free cash flow, or a deterioration in liquidity
could also lead to a downgrade.
Based in Philadelphia, Pennsylvania, FullBloom is a national
provider of child development services, providing academic,
behavioral, and emotional intervention to young children and
students. FullBloom has three business segments and provides
services including K-12 instructional intervention, K-12 special
education, mental health, as well as early childhood behavioral
health services to children under the age of 6 who are diagnosed
with Autism Spectrum Disorder (ASD). FullBloom was acquired by
American Securities in December 2021 through a leveraged buyout.
The company generated $737 million of revenue for the 12 months
ending October 31, 2024 (fiscal year ends in July).
ASTRO ONE: $155MM Bank Debt Trades at 80% Discount
--------------------------------------------------
Participations in a syndicated loan under which Astro One
Acquisition Corp is a borrower were trading in the secondary market
around 20.1 cents-on-the-dollar during the week ended Friday,
February 14, 2025, according to Bloomberg's Evaluated Pricing
service data.
The $155 million Term loan facility is scheduled to mature on
October 25, 2029. The amount is fully drawn and outstanding.
Founded in 2021 and based in the U.S., Astro One Acquisition
Corporation is a merged entity of Petmate and Brody. Both companies
engage in the production and distribution of pet products such as
cat waste management products, toys, kennels, shelters, chews, and
feeding and watering products.
ATLAS CC: Guggenheim Marks $189,472 Loan at 36% Off
---------------------------------------------------
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust has
marked its $189,472 loan extended to Atlas CC Acquisition Corp to
market at $122,007 or 64% of the outstanding amount, according to a
disclosure contained in Guggenheim's Form N-CSR for the Fiscal year
ended November 30, 2024, filed with the Securities and Exchange
Commission.
Guggenheim is a participant in a Bank Loan to Atlas CC Acquisition
Corp. The loan accrues interest at a rate of 9.03% (3 Month Term
SOFR + 4.25%, Rate Floor: 5.00%) per annum. The loan matures on May
25, 2028.
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust was
organized as a Delaware statutory trust on June 30, 2010. The Trust
is registered as a diversified, closed-end management investment
company under the Investment Company Act of 1940, as amended.
Guggenheim is led by Brian E. Binder, President and Chief Executive
Officer; and James Howley, Chief Financial Officer, Chief
Accounting Officer and Treasurer. The Fund can be reach through:
Brian E. Binder
Guggenheim Taxable Municipal Bond &
Investment Grade Debt Trust
227 West Monroe Street, Chicago, IL 60606
Naperville, IL 60563-2787
Telephone: (312) 827-0100
- and -
Amy J. Lee
227 West Monroe Street, Chicago, IL 60606
Naperville, IL 60563-2787
Telephone: (312) 827-0100
Atlas CC Acquisition Corp serves transportation, defense command,
control, communication, computers, intelligence, surveillance and
reconnaissance (C4ISR), and defense training customers globally.
Cubic sells integrated payment and information systems,
expeditionary communications, cloud-based computing and
intelligence delivery, as well as training and readiness solutions.
AVISON YOUNG: $61.1MM Bank Debt Trades at 38% Discount
------------------------------------------------------
Participations in a syndicated loan under which Avison Young Canada
Inc is a borrower were trading in the secondary market around 62.1
cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The $61.1 million Payment in kind Term loan facility is scheduled
to mature on March 12, 2029. The amount is fully drawn and
outstanding.
Avison Young (Canada) Inc. provides real estate services. The
Company offers consulting, advisory, lease administration,
investment and asset management, and mortgage services. Avison
Young (Canada) serves customers worldwide.
B&H SFR: Case Summary & Seven Unsecured Creditors
-------------------------------------------------
Debtor: B&H SFR, LLC
1811 East Levee Street
Dallas, TX 75207
Chapter 11 Petition Date: February 14, 2025
Court: United States Bankruptcy Court
Middle District of Georgia
Case No.: 25-40098
Debtor's Counsel: Thomas T. McClendon, Esq.
JONES & WALDEN LLC
699 Piedmont Avenue NE
Atlanta, GA 30308
Tel: 404-564-9300
E-mail: tmcclendon@joneswalden.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Arthur Hood of ASAH Enterprise
Management LLC, manager of the Debtor.
A full-text copy of the petition, which includes a list of the
Debtor's seven unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/KGIYUQA/BH_SFR_LLC__gambke-25-40098__0001.0.pdf?mcid=tGE4TAMA
BABY K'TAN: Gets Final OK to Use Cash Collateral
------------------------------------------------
Baby K'Tan, LLC received final approval from the U.S. Bankruptcy
Court for the Southern District of Florida, Fort Lauderdale
Division, to use its secured creditors' cash collateral.
The final order authorized Baby K'Tan to use the cash collateral of
JP Morgan Chase Bank, N.A. and Regions Bank pursuant to the
company's projected budget during the pendency of its bankruptcy
case or until further order of the court.
As protection for the use of their cash collateral, secured
creditors were granted replacement liens to the same extent as
their pre-bankruptcy liens.
If it is later determined that any secured creditor that obtained a
replacement has inadequate collateral, such liens will have
superpriority status, subject to and junior to the fees of the U.S.
Trustee, court costs and any administrative fees and costs awarded
by the court
About Baby K'tan LLC
Baby K'tan, LLC manufactures and sells ready-to-wear and soft
fabric wrap pet and baby carrier. The Pet K'tan Pet Carrier is a
patented ready-to-wear soft fabric wrap that allows the caregiver
to wear their pet in several positions without any complicated
wrapping or buckling. The Baby K'tan Baby Carrier has a patented
double-loop design that functions as a sling, wrap and baby
carrier, yet there is no wrapping, no buckling, and no adjusting
any rings.
Baby K'tan sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-22671) on December 3,
2024, with up to $1 million in assets and up to $10 million in
liabilities. Maria Yip, a certified public accountant and managing
partner at Yip Associates, serves as Subchapter V trustee.
Judge Peter D. Russin oversees the case.
The Debtor is represented by Isaac M Marcushamer, Esq., at DGIM
Law, PLLC.
Regions Bank, as secured creditor, can be reached through:
Ronald B. Cohn, Esq.
Burr & Forman, LLP
201 North Franklin Street, Suite 3200
Tampa, FL 33602
Telephone: (813) 221-2626
Facsimile: (813) 221-7335
Email: rcohn@burr.com
BAYSHORE SUITES: Seeks Subchapter V Bankruptcy in Florida
---------------------------------------------------------
On February 11, 2025, Bayshore Suites LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Middle District of
Florida. According to court filing, the
Debtor reports $7,297,236 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Bayshore Suites LLC
Bayshore Suites LLC owns two properties: one at 3200-3248 Bayshore
Dr., Naples, FL 34112, valued at $4.6 million in liquidation, and
another at 2836 Shoreview Dr., Naples, FL 34112, with a liquidation
value of $1 million.
Bayshore Suites LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00218) on February
11, 2025. In its petition, the Debtor reports total assets of
$5,631,222 and total liabilities of $7,297,236.
Honorable Bankruptcy Judge Caryl E. Delano handles the case.
The Debtor is represented by:
Michael Dal Lago, Esq.
DAL LAGO LAW
999 Vanderbilt Beach Rd. Suite 200
Naples FL 34108
Tel: 239-571-6877
E-mail: mike@dallagolaw.com
BCPE NORTH 2: Moody's Raises CFR to 'B3', Outlook Stable
--------------------------------------------------------
Moody's Ratings upgraded BCPE North Star US Holdco 2, Inc.'s
(Dessert Holdings) Corporate Family Rating to B3 from Caa1 and
Probability of Default Rating to B3-PD from Caa1-PD. Concurrently,
Moody's upgraded the rating on the existing senior secured first
lien term loan due in 2028 to B2 from B3 and the existing second
lien term loans due in 2029 to Caa2 from Caa3. Moody's also
assigned a B2 rating to the proposed $155 million senior secured
first lien revolving credit facility expiring in June 2028. Moody's
took no action on and will withdraw the B3 ratings on the existing
senior secured first lien revolving credit facility expiring June
2026 and the $65 million non-fungible incremental senior secured
first lien term loan due 2028 because Moody's expect the
instruments to be repaid at transaction close. The outlook is
stable.
The upgrades reflect that the company's improved liquidity
resulting from the refinancing provides additional financial
flexibility to execute its strategies to grow earnings and reduce
leverage. Dessert Holdings intends to raise a $185 million fungible
incremental first lien term loan to repay the existing $65 million
non-fungible incremental first lien term loan due 2028, repay the
outstanding revolver balance and fund transaction fees and
expenses. In addition, Dessert Holdings will extend the maturity of
the $155 million first lien revolver to June 2028 from June 2026.
The new revolver's maturity may spring to March 2028 should any
first lien term loans remain outstanding at that time.
The transactions improve liquidity by repaying all revolver
drawings and extending the revolver expiration. The repayment of
the outstanding revolver balance increases availability on the $155
million revolving credit facility, which had been utilized to fund
free cash flow deficits, acquisitions and earn-out payments over
the past two years. This increased availability provides a cushion
should operational performance deviate from expectations.
Additionally, the extension of the revolver's maturity to June 2028
from June 2026 provides the company with more time to execute its
margin expansion and deleveraging strategy.
Debt-to-EBITDA leverage, on Moody's adjusted basis, declined to
7.5x as of September 28, 2024, compared to 8.1x at the end of 2023.
Although this is still high, Moody's forecast that leverage will
decline below 7x over the next 12 months through a combination of
organic sales growth and margin expansion. Moody's expect
mid-single digit organic sales growth driven by new customer wins
and product expansion in the retail channel, specifically in club
and mass markets. In the foodservice channel, softer traffic at
quick service restaurants will be partially offset by international
market expansion and distribution gains with existing customers.
Margins are expected to benefit from operational efficiencies and
pricing actions to counteract commodity and cost inflation.
However, there are execution risks and market-based factors that
create uncertainty around the forecast. These include further cost
inflation for key ingredients such as milk, cocoa and eggs,
potential pricing lags that may impact earnings growth, and
potential continued soft food service traffic. There is also
execution risk related to Dessert Holdings' large-scale conversion
and upgrade to a common enterprise resource planning (ERP) system
over the next two years.
RATINGS RATIONALE
The B3 CFR reflects Dessert Holdings' high leverage, weak free cash
flow, small size and relatively narrow product focus. The company's
product portfolio consists of commodity-oriented sweet baked goods
that are exposed to rising input costs as well as consumer focus on
healthier eating including through weight-loss drugs. The improved
liquidity from the proposed refinancing crucially provides Dessert
Holdings more flexibility to manage these risks and continue to
pursue its strategies to grow earnings, reduce leverage and improve
free cash flow. Moody's expect a reduction in leverage and an
improvement in free cash flow over the next 12-18 months, driven by
projected volume and earnings growth. However, significant
execution risk remains, especially as consumer budgets remain
tight, volumes could be weaker than Moody's forecast, or key input
costs may increase. The credit profile also reflects Dessert
Holdings' aggressive debt-financed acquisition strategy under
private equity ownership. These credit challenges are partially
balanced by the company's solid EBITDA margin, leading position in
narrowly-defined bakery categories, and strong customer base with
long-standing relationships. The company's solid EBITDA margin is
primarily the result of the ability to offer differentiated premium
desserts at scale to its in-store bakery and foodservice
customers.
Liquidity is supported by the full availability of the $155 million
revolver expiring in June 2028 and $19 million in balance sheet
cash at the close of the transaction. The transaction also extends
the revolver's maturity to June 2028. Moody's anticipate modestly
positive free cash flow in 2025, constrained by IT transformation
costs, a high interest burden, and other cash costs, such as
productivity support, public company readiness, and logistics.
Moody's anticipate that Dessert Holdings will continue to utilize
its revolver, both to fund the $11 million of annual mandatory term
loan amortization and peak working capital needs in 2025. Liquidity
is expected to improve in 2026, with free cash flow projected in
the range of $15 to $20 million as earnings grow and some
productivity and IT costs decrease.
The revolving credit facility includes a springing first lien net
leverage covenant of 7.75x, triggered when drawings exceed
approximately $54 million (35% of the revolver size). Moody's do
not expect this covenant to be tested over the next year and
anticipate that the company will maintain sufficient cushion if it
is tested, partly due to a highly adjusted credit agreement EBITDA
calculation that includes projected cost savings. The company's
capital structure includes a significant amount of second lien
debt, which is not included in the covenant calculation. The term
loans have no financial maintenance covenants. Alternative sources
of liquidity are limited, as the company has already completed
sale-leaseback transactions for most of its facilities.
The B2 rating on the first lien debt, including the new $155
million first lien revolving credit facility expiring in June 2028
and first lien term loans maturing in June 2028, is one notch
higher than the B3 Corporate Family Rating (CFR). The notching
reflects their priority lien position on the collateral relative to
the second lien debt and effective priority over unsecured
obligations. The revolver and first lien term loans are also
secured by a first priority lien on substantially all of the assets
and equity of the borrowers and guarantors. The Caa2 rating on the
$245 million second lien term loans maturing in June 2029 reflects
the subordinate lien on the collateral relative to the first lien
debt. The weaker claim on collateral increases loss potential in
the event of a default.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects Dessert Holdings' improvement in
operating performance and Moody's expectation of continued organic
volume and earnings growth that will support improvements in
leverage, free cash flow, and liquidity.
A rating upgrade could be considered if Dessert Holdings is able to
improve operating performance, including sustained organic revenue
growth and a higher EBITDA margin, and improve liquidity,
highlighted by solid and consistent positive free cash flow.
Dessert Holdings would need to also sustain debt-to-EBITDA leverage
below 6.0x.
A rating downgrade could be considered if earnings fail to grow,
liquidity deteriorates, free cash flow is not maintained at a
comfortably positive level, or the company pursues debt-financed
acquisitions or shareholder distributions, or debt-to-EBITDA
leverage is sustained above 7.0x.
COMPANY PROFILE
BCPE North Star US Holdco 2, Inc. (Dessert Holdings) based in St.
Paul, Minnesota is a leading manufacturer of premium frozen
desserts. The company sells dessert cakes, cheesecakes, cake pops,
brownies, bars, pies, and cookies to retail and foodservice
customers across the US and Canada. Dessert Holdings operates under
six brands: The Original Cakerie, Lawler's Desserts, Atlanta
Cheesecake Company, Steven Charles, Dianne's Fine Desserts, and
Kenny's Great Pies. The company was acquired by investment funds
associated with Bain Capital Private Equity (Bain Capital) in June
2021 and revenue for the 12 months ended September 2024 was
approximately $980 million.
A comprehensive review of all credit ratings for the respective
issuer has been conducted during a rating committee.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Consumer
Packaged Goods published in June 2022.
BECKER INC: Court Extends Cash Collateral Access to March 7
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Kentucky,
Louisville Division, extended Becker, Inc.'s authority to use cash
collateral from Feb. 7 to March 7.
The company requires the use of cash collateral to pay its
operating and administrative expenses.
PNC Bank, NA, Seacoast, Bluevine, ByzFunder, On Deck, Fox Funding
Group, LLC, CAN Capital, CT-2, LLSV, CT-3, Metrics, VSTATE, and
CT-4 assert an interest in the cash collateral.
As adequate protection, each creditor will be granted replacement
liens on all of the post-petition property of the company that is
similar to or traceable to each creditor's respective
pre-bankruptcy interest in the company's property.
As additional adequate protection to PNC, Becker will make regular
monthly payments of $4,000.
About Becker Inc.
Becker, Inc. has two convenient superstore locations specializing
in University of Louisville & University of Kentucky apparel,
gifts, and accessories.
Becker sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. W.D. Ky. Case No. 24-31386) on May 29, 2024, with up
to $10 million in both assets and liabilities. Becker President
John I. Becker signed the petition.
Judge Charles R. Merrill oversees the case.
The Debtor is represented by Charity S. Bird, Esq., at Kaplan
Johnson Abate & Bird, LLP.
PNC Bank, as secured creditor, is represented by:
Keith J. Larson, Esq.
Morgan Pottinger McGarvey
401 South Fourth Street, Suite 1200
Louisville, KY 40202
Telephone: (502) 560-6785
Email: kjl@mpmfirm.com
BED BATH: Panel Settles 401(k) Losses Lawsuit for $1.95MM
---------------------------------------------------------
Jacklyn Wille of Bloomberg Law reports that Bed Bath & Beyond
Inc.'s 401(k) committee has agreed to a $1.95 million settlement
with employees who claim they lost retirement savings due to the
retailer's mishandling of their plan after its bankruptcy,
according to a court filing on Friday, February 14, 2025.
The proposed settlement would compensate approximately 2,100
individuals affected by adjustments to their 401(k) account
balances following the plan's termination in 2023, the report
relates. The agreement covers about 30% of the alleged losses,
which the settlement motion -- filed in the U.S. District Court --
describes as a significant recovery given the lawsuit's "novel
claim."
About Bed Bath & Beyond
Bed Bath & Beyond Inc., together with its subsidiaries, is an
omnichannel retailer selling a wide assortment of merchandise in
the Home, Baby, Beauty & Wellness markets and operates under the
names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face
Values. The Company also operates Decorist, an online interior
design platform that provides personalized home design services.
At its peak, Bed Bath & Beyond operated the largest home furnishing
retailer in the United States with over 970 stores across all 50
states, consistently at the forefront of major home and bath
trends. Operating stores spanning the United States, Canada,
Mexico, and Puerto Rico, Bed Bath & Beyond offers everything from
bed linens to cookware to electric appliances, home organization,
baby care, and more.
Bed Bath & Beyond closed over 430 locations across the United
States and Canada before filing Chapter 11 cases, implementing
full-scale wind-downs of their Canadian business and the Harmon
branded stores.
Left with 360 Bed Bath & Beyond, and 120 buybuy BABY stores, Bed
Bath & Beyond Inc. and 73 affiliated debtors on April 23, 2023,
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code to pursue a wind-down of operations.
The cases are pending before the Honorable Vincent F. Papalia and
requested joint administration of the cases under Bankr. D.N.J.
Lead Case No. 23-13359.
Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal
counsel, Lazard Frares & Co. LLC is serving as investment banker,
and AlixPartners LLP is serving as financial advisor. Bed Bath &
Beyond Inc. has retained Hilco Merchant Resources LLC to assist
with inventory sales. Kroll LLC is the claims agent.
BELLISSI FURNITURE: Seeks to Extend Plan Filing Deadline to July 29
-------------------------------------------------------------------
Bellissi Furniture Inc. asked the U.S. Bankruptcy Court for the
Eastern District of New York to extend its time to file a Small
Business Chapter 11 Plan of Reorganization and Disclosure Statement
to July 29, 2025.
This is the Debtor's first request for an extension of time period
to file a Small Business Chapter 11 plan of reorganization and
Disclosure Statement. It is self-evident that the Debtor is not
seeking these extensions to artificially delay the conclusion of
this chapter 11 case or to hold creditors hostage to an
unsatisfactory plan proposal.
Simply put at this juncture, the Debtor simply needs time to
resolve the claims of its Creditors, once filed, by reaching the
mutual acceptable terms, to obtain Court approval of the reached
terms and thereafter to file a feasible plan of reorganization and
disclosure statement, offering treatment to the main and other
remaining Creditors of the estate.
The Debtor explains that the requested extensions of the time
period to file a plan will not harm any economic stakeholder.
Rather, the time will be used to resolve claims filed in this case.
Moreover, should any events occur or there be a significant change
in circumstances, a party in interest may move to reduce the time
period tp file a plan.
Bellissi Furniture Inc. is represented by:
Alla Kachan, Esq.
Law Offices of Alla Kachan, PC
2799 Coney Island Avenue, Suite 202
Brooklyn, NY 11235
Telephone: (718) 513-3145
About Bellissi Furniture
Bellissi Furniture Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 1-24-44118-nhl) on
October 2, 2024. In the petition signed by Dmitry Novosyolov,
president, the Debtor disclosed up to $500,000 in assets and up to
$1 million in liabilities.
Judge Nancy Hershey Lord oversees the case.
Alla Kachan, Esq., at Law Offices Of Alla Kachan, P.C., is the
Debtor's legal counsel.
BERRY CORP: BlackRock Reports 8.8% Equity Stake as of Dec. 31
-------------------------------------------------------------
BlackRock, Inc. disclosed in Schedule 13G/A Report filed with the
U.S. Securities and Exchange Commission that as of December 31,
2024, it beneficially owned 6,759,474 shares of Berry Corporation's
common stock, representing 8.8% of the shares outstanding.
BlackRock may be reached at:
Spencer Fleming
BlackRock, Inc.
50 Hudson Yards
New York, NY 10001
Tel: (212) 810-5800
A full-text copy of BlackRock's SEC Report is available at:
https://tinyurl.com/48f88nu9
About Berry Corporation
Berry Corporation is a company primarily engaged in hydrocarbon
exploration in California, the Uintah Basin, and the Piceance
Basin. As of December 31, 2021, the company had 97 million barrels
of oil equivalent of estimated proved reserves, of which 87% was
petroleum and 13% was natural gas.
As of September 30, 2024, Berry Corporation had $1.5 billion in
total assets, $784.9 million in total liabilities, and $732.2
million in total stockholders' equity.
* * *
In September 2024, S&P Global Ratings lowered its Company credit
rating to 'CCC+' from 'B-' on Dallas-based oil and gas exploration
and production (E&P) company Berry Corp. S&P also lowered the
issue-level rating on Berry's unsecured notes due February 2026 to
'B-' from 'B'. The recovery rating remains '2', reflecting its
expectation for substantial (70%-90%; rounded estimate: 85%)
recovery in the event of a payment default.
The negative outlook reflects S&P's view that Berry is dependent on
favorable conditions to refinance its unsecured notes due February
2026 in a timely manner. However, its leverage remains modest, and
S&P forecasts average funds from operations (FFO) to debt of about
40% and debt to EBITDA of about 2.25x.
Refinancing risk is heightened for Berry's RBL facility due August
2025 and senior unsecured notes due February 2026.
In December 2024, S&P Global Ratings revised its outlook on
Dallas-based oil and gas exploration and production (E&P) company
Berry Corp. to stable from negative on the improved debt maturity
profile and affirmed the 'CCC+' Company credit rating.
S&P said, "We assigned a 'B' issue-level rating to the new
first-lien term loan. The recovery rating is '1', reflecting our
expectation for very high (90%-100%; rounded estimate: 95%)
recovery in the event of a payment default.
"The stable outlook reflects our view that Berry will maintain
approximately flat production in 2025 as it shifts a portion of
development spend away from California's more restrictive
regulatory environment to its Utah acreage. We also expect
discretionary cash flow after mandatory debt amortization to be
slightly negative in 2025, which constrains liquidity in our view.
However, leverage remains modest and we forecast average funds from
operation (FFO) to debt of about 30% and debt to EBITDA of
2.25x-2.5x."
BEYOND AIR: Nasdaq Extends Bid Price Compliance Period to Aug. 4
----------------------------------------------------------------
Beyond Air, Inc, announced that it received a notification from The
Nasdaq Stock Market LLC stating that the Company has been granted
an additional 180-day compliance period, or until August 4, 2025 to
regain compliance with Nasdaq's minimum bid price rule (Rule
5550(a)(2)).
The notification has no immediate effect on the listing of the
Company's common stock, and the common stock will continue to trade
on the Nasdaq Capital Market under the symbol "XAIR."
Nasdaq's determination is based on the Company meeting all other
applicable requirements for listing on the Nasdaq Capital Market,
with the exception of the bid price requirement, and the Company's
written notice of its intention to cure the deficiency during the
second compliance period and, if necessary, by effecting a reverse
share split.
In a notification letter dated August 8, 2024, Nasdaq had first
informed the Company that, based on the previous 30 consecutive
business days, the Company's common stock no longer met the minimum
$1.00 bid price per share requirement and in accordance with
Nasdaq's Listing Rules, the Company was provided 180 calendar days,
or until February 4, 2025, to regain compliance. The Company did
not regain compliance with the minimum $1.00 bid price per share
requirement during the first 180 calendar day compliance period and
submitted a written request to Nasdaq's staff to afford the Company
an additional 180-day compliance period to cure the deficiency,
which the Company was granted in a notification letter dated
February 5, 2025.
If at any time before August 4, 2025, the closing bid price of the
Company's security is at least $1.00 per share for a minimum of 10
consecutive business days, the Company will regain compliance with
this Nasdaq rule and this matter will be closed. However, Nasdaq
may, in its discretion, require the Company to maintain a bid price
of at least $1.00 per share for a period in excess of ten
consecutive business days, but generally no more than 20
consecutive business days, before determining that the Company has
demonstrated an ability to maintain long-term compliance.
About Beyond Air
Headquartered in Garden City, N.Y., Beyond Air, Inc. --
www.beyondair.net -- is a commercial-stage medical device and
biopharmaceutical company developing a platform of nitric oxide
generators and delivery systems (the "LungFit platform") capable of
generating NO from ambient air. The Company's first device, LungFit
PH, received premarket approval from the FDA in June 2022. The NO
generated by the LungFit PH system is indicated to improve
oxygenation and reduce the need for extracorporeal membrane
oxygenation in term and near term (34 weeks gestation) neonates
with hypoxic respiratory failure associated with clinical or
echocardiographic evidence of pulmonary hypertension in conjunction
with ventilatory support and other appropriate agents.
East Hanover, New Jersey-based Marcum LLP, the Company's auditor
since 2019, issued a "going concern" qualification in its report
dated June 24, 2024, citing that the Company has incurred
significant losses and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
Beyond Air reported a net loss of $64.30 million for the year ended
March 31, 2024, compared to a net loss of $59.40 million for the
year ended March 31, 2023. As of September 30, 2024, Beyond Air had
$53 million in total assets, $23.7 million in total liabilities,
and $29.3 million in total equity.
BIOMILQ INC: Breast Milk Startup Files Chapter 7 Bankruptcy
-----------------------------------------------------------
Lauren Ohnesorge of Triangle Business Journal reports that Biomilq,
a startup backed by prominent investors, including Bill Gates'
Breakthrough Energy Ventures, has filed for Chapter 7 bankruptcy,
marking an abrupt end to its mission of developing lab-grown breast
milk. The Research Triangle Park-based company listed nearly
$913,000 in liabilities against just under $403,000 in assets in
its bankruptcy petition filed on January 31, 2025. Attorney Rebecca
Redwine, representing Biomilq, stated that the filing was necessary
due to ongoing litigation.
Despite ceasing operations, the company's intellectual
property—including patents and proprietary mammary cell
lines—could be sold. Bankruptcy trustee Jim Lanik may seek
buyers, though he has not commented on the next steps, the report
states.
According to Triangle Business Journal, the company gained
significant attention early on, securing $3.5 million in seed
funding just six months after its founding. Co-founder Michelle
Egger later announced the company had successfully replicated the
macronutrient profile of human milk outside the body. The startup
went on to raise $21 million from investors, including Novo
Holdings and Breakthrough Energy Ventures, and established a
proprietary mammary cell bank with donations from more than 300
women.
However, the company became embroiled in legal disputes,
particularly with Shayne Guiliano, the ex-husband of co-founder
Leila Strickland. Biomilq sued Guiliano in 2022, alleging he
falsely claimed an association with the company to promote his own
ventures. In response, Guiliano filed a federal lawsuit claiming
co-ownership of Biomilq's technology and seeking compensation. The
bankruptcy filing has put the federal case on hold, the report
relays.
Strickland, who holds a 28% stake in the company, stated that
Biomilq "developed groundbreaking technologies that have spurred a
critical conversation about how we feed babies." She expressed
confidence that scientific advancements in the field would
continue, adding that the company's intellectual property could be
sold in the coming months.
The bankruptcy filing details significant debts, including $217,000
owed to Alexandria Real Estate Equities for lab rent, $46,000 owed
to Strickland for indemnification, and $32,000 owed to Eastcut
Sandwich Bar founder Steven Wuench for services. Biomilq's total
assets—including lab equipment and fine art prints—amount to
just under $403,000.
Although Biomilq never generated product revenue, it secured
approximately $107,000 last year from grants, interest, cash-back
rewards, and insurance claims.
Egger, who departed the company in 2023 and received $87,500 in
severance, declined to comment on the bankruptcy.
As liquidation proceedings move forward, the future of Biomilq's
research and intellectual property remains uncertain.
About Biomilq Inc.
Biomilq Inc. is a startup backed by prominent investors that
develops lab-grown breast milk.
Biomilq Inc. sought relief under Chapter 7 of the U.S. Bankruptcy
Code (Bankr. M.D. N.C. Case No. 25-80028) on January 31, 2025.
Honorable Bankruptcy Judge Lena M. James handles the case.
The Debtor is represented by:
Lydia C. Stoney, Esq.
Rebecca F. Redwine, Esq.
Hendren Redwine & Malone, PLLC
4600 Marriott Drive, Suite 150
Raleigh, NC 27612
Tel: (919) 573-1423
Fax: (919) 420-0475
BLUE DOG: Court OKs Interim Use of Cash Collateral
--------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
West Palm Beach Division granted The Blue Dog in Boca, Inc.
authorization to use cash collateral on an interim basis.
The interim order authorized the company to use cash collateral
pursuant to its budget, subject to a 10% variance limit on any
particular line-item expense, unless otherwise agreed upon by the
parties or ordered by the court.
Square Financial Services, Inc., KYF Global Partners, LLC, AAA
Alpha Advisors Alliance, LLC
and Sysco Southeast Florida, LLC may have a lien on the cash held
by the company.
As protection, the creditors were granted replacement liens to the
same extent as their pre-bankruptcy liens without prejudice to the
rights of the company to seek to void the liens.
The next hearing is set for Feb. 20.
About The Blue Dog in Boca
The Blue Dog in Boca, Inc. is a business located in Boca Raton,
Fla., that operates in the hospitality sector. Known for its
vibrant atmosphere, the establishment likely serves food and
beverages, catering to both locals and tourists in the area. It
positions itself as a community-oriented venue, providing
entertainment and a social gathering space.
Blue Dog in Boca sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-20655) with $100,001
to $500,000 in assets and $500,001 to $1 million in liabilities.
Judge Mindy A. Mora oversees the case.
DGIM Law, PLLC and Cohen Legal Services, P.A. represent the Debtor
as bankruptcy counsel.
BLUE RIBBON: Guggenheim Marks $977,500 Loan at 30% Off
------------------------------------------------------
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust has
marked its $977,500 loan extended to Blue Ribbon LLC to market at
$685, 228 or 70% of the outstanding amount, according to a
disclosure contained in Guggenheim's Form N-CSR for the Fiscal year
ended November 30, 2024, filed with the Securities and Exchange
Commission.
Guggenheim is a participant in a Bank Loan to Blue Ribbon LLC. The
loan accrues interest at a rate of 10.85% (3 Month Term SOFR +
6.00%, Rate Floor: 6.75%) per annum. The loan matures on May 8,
2028.
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust was
organized as a Delaware statutory trust on June 30, 2010. The Trust
is registered as a diversified, closed-end management investment
company under the Investment Company Act of 1940, as amended.
Guggenheim is led by Brian E. Binder, President and Chief Executive
Officer; and James Howley, Chief Financial Officer, Chief
Accounting Officer and Treasurer. The Fund can be reach through:
Brian E. Binder
Guggenheim Taxable Municipal Bond &
Investment Grade Debt Trust
227 West Monroe Street, Chicago, IL 60606
Naperville, IL 60563-2787
Telephone: (312) 827-0100
- and -
Amy J. Lee
227 West Monroe Street, Chicago, IL 60606
Naperville, IL 60563-2787
Telephone: (312) 827-0100
Blue Ribbon, LLC, parent company of Pabst Brewing Company, is one
of the largest privately held independent brewers in the US, with a
portfolio of iconic American beer brands.
BROWN FAMILY: Seeks Subchapter V Bankruptcy in Georgia
------------------------------------------------------
On February 3, 2025, Brown Family Network LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Georgia. According to court filing, the Debtor reports between
$1 million and $10 million in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Brown Family Network LLC
Brown Family Network LLC is a retail trade business operating from
Palmetto, Georgia.
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.
CAMSTON WRATHER: Files Chapter 7 Bankruptcy w/ Over $100MM Debt
---------------------------------------------------------------
Yun Park of Law360 reports that California-based sustainable
resource recovery company Camston Wrather LLC has filed for Chapter
7 bankruptcy, citing a lack of funding to sustain operations.
The company reports liabilities between $100 million and $500
million, with assets of up to $50 million, the report states.
About Camston Wrather LLC
Camston Wrather LLC is a California-based sustainable resource
recovery company.
Camston Wrather LLC sought relief under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 25-10234) on February 13,
2025. In its petition, the Debtor reports liabilities between $100
million and $500 million and with assets of up to $50 million.
The Debtor is represented by:
Robert J. Dehney, Esq.
Morris, Nichols, Arsht & Tunnell
1201 North Market Street, 16th Floor
PO Box 1347
Wilmington, DE 19899-1347
Tel: (302) 351-9353
Fax: (302) 658-3989
Email: rdehney@morrisnichols.com
CAPSTONE GREEN: To Tap CBIZ as Independent Accountant
-----------------------------------------------------
Capstone Green Energy Holdings, Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that on
February 7, 2025, the Company filed a supplement to its definitive
proxy statement, dated December 27, 2024, furnished to stockholders
of the Company in connection with the solicitation of proxies by
the Board of Directors of the Company for the Company's 2024 annual
meeting of stockholders and any adjournments or postponements
thereof to provide information concerning the merger of the
Company's independent registered public accounting firm, Marcum
LLP, with CBIZ CPAs P.C.
On November 1, 2024, CBIZ, previously known as Mayer Hoffman McCann
P.C., purchased the attest business assets of Marcum, and
substantially all of the partners and staff that provided
attestation services for Marcum joined CBIZ. The Company expects
that, subsequent to the filing of the Company's Quarterly Report on
Form 10-Q for the quarter ended December 31, 2024, CBIZ will be
engaged as the Company's independent registered public accounting
firm for the fiscal year ending March 31, 2025. The engagement of
CBIZ will be subject to the approval of the Audit Committee of the
Board and the completion of CBIZ's customary client acceptance
procedures. Upon such engagement, the services previously provided
by Marcum to the Company will be provided by CBIZ, and the Company
anticipates that the CBIZ audit team that will service the Company
will initially be substantially the same as the audit team from
Marcum that previously serviced the Company. Once CBIZ has been
formally engaged by the Company, the Company will file a Current
Report on Form 8-K disclosing such appointment.
Marcum's report on the Company's consolidated balance sheets as of
March 31, 2024 and 2023 and the related consolidated statements of
operations, temporary equity and stockholders’ deficiency and
cash flows for each of the fiscal years then ended, and the related
notes to such consolidated financial statements, did not contain
any adverse opinion or disclaimer of opinion, nor were they
qualified or modified as to uncertainty, audit scope or accounting
principles, except to indicate that there was substantial doubt
about the Company's ability to continue as a going concern.
During the fiscal years ended March 31, 2024 and March 31, 2023,
and the subsequent interim period through February 7, 2025, there
were no: (i) disagreements with Marcum on any matter of accounting
principles or practices, financial statement disclosures or audit
scope or procedures, which disagreements if not resolved to
Marcum's satisfaction would have caused Marcum to make reference to
the subject matter of the disagreement in connection with its
report or (ii) reportable events as defined in Item 304(a)(1)(v) of
Regulation S-K, except for the material weakness in the Company's
internal control over financial reporting related to (i) an
inappropriate tone at the top established by certain former senior
executives, (ii) the Company's lack of sufficient qualified
professionals with an appropriate level of accounting and internal
control knowledge, training and experience to (a) appropriately
analyze, record and disclose accounting matters timely and
accurately and (b) design and maintain effective internal control
over financial reporting, (iii) the Company's failure to perform a
sufficient review of accounting policies to ensure ongoing
adherence with U.S. generally accepted accounting principles, (iv)
the Company's failure to design and maintain effective internal
control over financial reporting for systems, products, parts and
accessories sales subject to bill and hold arrangements with
customers and (v) the Company's failure to design and maintain
effective internal control over financial reporting related to the
proper accounting, presentation and disclosure for factory
protection plan service contracts, including the cost recognition
of parts and labor associated with FPP service contracts, as
described in the Company's Quarterly Report on Form 10-Q for the
quarter ended September 30, 2024.
During the fiscal years ended March 31, 2024 and March 31, 2023,
and the subsequent interim period through February 7, 2025, the
Company did not consult CBIZ with respect to either (i) the
application of accounting principles to a specified transaction,
either completed or proposed; or the type of audit opinion that
might be rendered on the Company's financial statements, and no
written report or oral advice was provided to the Company by CBIZ
that CBIZ concluded was an important factor considered by the
Company in reaching a decision as to the accounting, auditing or
financial reporting issue; or (ii) any matter that was either the
subject of a disagreement.
About Capstone Green Energy Corporation
Capstone Green Energy Corporation builds microturbine energy
systems and battery storage systems that allow customers to
produce
power on-site in parallel with the electric grid or stand-alone
when no utility grid is available. Capstone Green offers
microturbines designed for commercial, oil and gas, and other
industrial applications.
Los Angeles, Calif.-based Marcum LLP, the Company's auditor since
2017, issued a "going concern" qualification in its report dated
September 26, 2024, citing that the Company has a significant
working capital deficiency, has incurred significant operating
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.
CAREPOINT HEALTH: Secures Deal to Increase Chapter 11 Financing
---------------------------------------------------------------
Alex Wittenberg of Law360 Bankruptcy Authority reports that
CarePoint Health Systems Inc., a hospital owner, agreed with
lenders to increase its Chapter 11 financing by $31.7 million,
raising its total borrowing to approximately $63.8 million.
Debtor's counsel informed a judge Wednesday, February 12, 2025,
that the company is working to finalize its debt restructuring
plan.
About CarePoint Health
CarePoint Health brings quality, patient-focused health care to
Hudson County. Combining the resources of three area hospitals,
Bayonne Medical Center, Christ Hospital in Jersey City, and Hoboken
University Medical Center, CarePoint Health provides a new approach
to deliver health care that puts the patient front and center.
CarePoint Health leverages a network of top doctors, nurses, and
other medical professionals whose expertise and attentiveness work
together to provide complete coordination of care, from the
doctor's office to the hospital to the home. Patients benefit from
the expertise and capabilities of a broad network of leading
specialists and specialized technology. At CarePoint Health, all
medical professionals emphasize preventive medicine and focus on
educating patients to make healthy life choices. For more
information on its facilities, partners and services, visit
www.carepointhealth.org.
CarePoint Health Systems Inc., doing business as Just Health
Foundation, and its affiliates filed voluntary petitions for relief
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.
Del. Lead Case No. 24-12534) on Nov. 3, 2024, with up to $1 million
in assets and up to $50,000 in liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped Dilworth Paxson LLP as legal counsel, Ankura
Consulting as financial advisor, and Epiq Corporate Restructuring,
LLC as claims and noticing agent and administrative advisor.
CARNIVAL PLC: EUR814MM Bank Debt Trades at 22% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Carnival PLC is a
borrower were trading in the secondary market around 77.8
cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The EUR814 million Term loan facility is scheduled to mature on
November 2, 2034. About EUR683 million of the loan has been drawn
and outstanding.
Carnival PLC owns and operates cruise ships. The Company offers
cruise vacations in North America, Continental Europe, the United
Kingdom, South America, and Australia.
CASTLE US HOLDING: $1.20BB Bank Debt Trades at 37% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Castle US Holding
Corp is a borrower were trading in the secondary market around 62.7
cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The $1.20 billion Term loan facility is scheduled to mature on
January 29, 2027. The amount is fully drawn and outstanding.
Castle US Holding Corporation provides database tools and software
to public relations and communications professionals.
CCA CONSTRUCTION: Gets Court OK for $40MM Chapter 11 Financing
--------------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that CCA
Construction Inc., a Chinese state-owned construction firm, won
court approval to fund its Chapter 11 case with a $40 million
secured debtor-in-possession loan from its parent company, despite
objections from a developer that obtained a $1.6 billion judgment
against CCA.
About CCA Construction
CCA Construction Inc., doing business as China Construction America
Inc., ProServ Shared Services, and Plaza Construction, was
established in 1993 as a Delaware corporation, and it is a direct
subsidiary of CSCEC Holding Company, Inc., also a Delaware
corporation. CSCEC Holding, CCA, and CCA's subsidiaries are
discrete pieces of CSCEC's broader business, which is operated by
more than 100 distinct entities located throughout the world, eight
of which are publicly traded. Together, the group of affiliated
entities makes up the largest construction company in the world,
operating in more than 100 countries and regions globally, covering
investment, development, construction engineering, survey and
design.
CCA Construction Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-22548) on December 22,
2024. In the petition filed by Yan Wei, chairman and chief
executive officer, the Debtor reports reports estimated assets
between $100 million and $500 million and estimated liabilities
between $1 billion and $10 billion.
Honorable Bankruptcy Judge Christine M. Gravelle handles the case.
The Debtor tapped M. Natasha Labovitz, Esq., Sidney P. Levinson,
Esq., Elie J. Worenklein, Esq., and Rory B. Heller, Esq., at
Debevoise & Plimpton LLP, in New York as general bankruptcy
counsel; Michael D. Sirota, Esq., Ryan T. Jareck, Esq., Warren A.
Usatine, Esq., and Felice R. Yudkin, Esq., at Cole Schotz PC in
Hackensack, New Jersey as bankruptcy co-counsel; and BDO Consulting
Group, LLC as financial advisor. Kurtzman Carson Consultants, LLC,
dba Verita Global, is the administrative advisor.
CCRR PARENT: Guggenheim Marks $640,000 Loan at 62% Off
------------------------------------------------------
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust has
marked its $640,000 loan extended to CCRR Parent, Inc to market at
$394,054 or 38% of the outstanding amount, according to a
disclosure contained in Guggenheim's Form N-CSR for the Fiscal year
ended November 30, 2024, filed with the Securities and Exchange
Commission.
Guggenheim is a participant in a Bank Loan to CCRR Parent, Inc. The
loan accrues interest at a rate of 6.06% (1 Month Term SOFR +
6.87%, Rate Floor: 7.87%) per annum. The loan matures on May 18,
2026.
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust was
organized as a Delaware statutory trust on June 30, 2010. The Trust
is registered as a diversified, closed-end management investment
company under the Investment Company Act of 1940, as amended.
Guggenheim is led by Brian E. Binder, President and Chief Executive
Officer; and James Howley, Chief Financial Officer, Chief
Accounting Officer and Treasurer. The Fund can be reach through:
Brian E. Binder
Guggenheim Taxable Municipal Bond &
Investment Grade Debt Trust
227 West Monroe Street, Chicago, IL 60606
Naperville, IL 60563-2787
Telephone: (312) 827-0100
- and -
Amy J. Lee
227 West Monroe Street, Chicago, IL 60606
Naperville, IL 60563-2787
Telephone: (312) 827-0100
CCRR, with operating head offices in Ohio, is a temporary
healthcare staffing agency providing nurses on assignments to
hospitals and medical centers, including both traditional and fast
response staffing, across the US. The company also supplies nurses
during strikes and provides interventional cardiologists for rural
and remote hospitals. CCRR is majority owned by Cornell and
Trilantic Capital Partners.
CEC ENTERTAINMENT: S&P Places 'B-' ICR on CreditWatch Negative
--------------------------------------------------------------
S&P Global Ratings placed all its ratings on Texas-based family
entertainment and dining operator CEC Entertainment LLC, including
the 'B-' issuer credit rating, on CreditWatch with negative
implications.
S&P expects to resolve the CreditWatch placement when the company
refinances the notes or they become current.
CEC's $650 million senior secured notes will become current on May
1, 2025. S&P Global Ratings believes this approaching maturity (in
less than 15 months) exposes the company to market risks outside of
its control that increase its refinancing risk, despite
management's intention to refinance the notes before they become
current.
At the same time, CEC reported improved operating results and cash
flow in the most recent quarters, and S&P expects it will generate
materially positive free operating cash flow (FOCF) in 2025.
The CreditWatch negative placement reflects CEC's increasing
refinancing risk related to its upcoming debt maturity, despite its
improving operating performance. The company refinanced its
revolving credit facility in August 2024 but has not addressed the
upcoming maturity of its senior secured notes due May 2026. The
secured notes feature a 6.75% coupon, which is likely a lower
interest rate than what CEC will have access to in a refinancing,
thus it is conserving cash by waiting to refinance. Additionally,
the notes have a call premium that falls away as of May 1, 2025,
which further incentivizes the company to delay a refinancing. The
maturing senior notes are currently trading near par, which S&P
thinks indicates that existing investors are confident of a
near-term refinancing. Management has stated it intends to
refinance the notes before they become current and is looking to
optimize the timing of the transaction relative to market
conditions.
S&P said, "However, we view CEC's maturity profile as a signal of
an aggressive financial risk tolerance, given that the notes mature
in less than 15 months. We anticipate the company will face
increasing refinancing risk as the time to maturity decreases and
view it as having limited room for error to execute a transaction
before the notes become current. CEC's maturity profile exposes it
to market risks outside of its control, including potential
unexpected disruptions to its operations. We think the company's
relatively short track record of positive FOCF generation adds some
risk to the refinancing, although we assume it sustains its FOCF
progress under our base-case forecast, especially given that it is
winding down its remodeling efforts.
"CEC's recent operating results are trending favorably, which we
think improves the prospects it will be able to refinance the notes
at a reasonable rate. The company posted sequential increases in
its monthly sales from October 2024 through December 2024 and
improved same-store sales growth of 2% in both the second and third
quarters of 2024, supported by the launch of its new membership and
active play strategy via trampolines, which follows a contraction
in its same-store sales from the third quarter of 2023 through the
first quarter of 2024. We anticipate the implementation of CEC's
new "Fun Pass" subscription-pricing model, along with the
completion of its domestic store remodeling program as of the end
of 2024, will improve the stability of its operating performance
and promote increased visitation and incremental per-guest
spending. Although we view the Fun Pass as a critical contributor
to the company's improving results, we see some risk to our base
case, given that it has a limited track record of sustaining this
rate of signups under its Fun Pass model and the program has not
existed long enough to fully understand its default and renewal
rates.
"We expect CEC will expand its top-line revenue by the low-single
digit percent area next year on a 2.0%-2.5% increase in its
same-store sales, which will be partially offset by a 0.5%-1.0%
decrease in its venue count as it relocates some stores to
more-attractive areas and pursues more favorable lease rates. We
also project the company will improve its EBITDA by 1% on these
higher sales, though this will be partially offset by food cost
inflation and margin dilution from the discounts of between 20% and
50% offered through the Fun Pass membership. We project CEC will
generate $25 million-$35 million of reported FOCF in 2025,
primarily due to a $40 million-$50 million reduction in its capital
expenditure (capex), to $80 million, following the completion of
its system-wide remodeling effort in the U.S.
"We expect CEC's debt to EBITDA (calculated on a trailing-12-month
basis) will remain about 5x in 2025, with reported FOCF to debt in
the 2.5%-4.5% range, which--absent the approaching maturity--is
generally consistent with our expectations for the 'B-' rating.
"We expect to resolve the CreditWatch before CEC's senior secured
notes become current in May 2025. If the company does not refinance
the 2026 notes before May, we could lower our issuer credit rating
to the 'CCC' category. Alternatively, if CEC pursues a debt
restructuring that we view as tantamount to a default, we could
lower our issuer credit rating to 'SD' (selective default).
"However, if it addresses the maturity through a transaction we
view as opportunistic, or that we believe will provide its lenders
with adequate offsetting compensation, and retains a path to reduce
its leverage, we could affirm our 'B-' issuer credit rating and
remove the ratings from CreditWatch."
CHAMPION HEALTHCARE: Court Extends Cash Collateral Access
---------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Tennessee
extended Champion Healthcare, LLC's authority to use cash
collateral from Jan. 29 to March 5.
The interim order approved the use of cash collateral to pay the
company's operating expenses in accordance with its 31-week budget,
with a 10% variance.
The budget outlines weekly expenses ranging from $8,822 to
$13,987.
Secured creditors including Emerald Group Holdings, LLC, doing
business as VitalCap, will be granted replacement lien on Champion
Healthcare's post-petition assets in case of any diminution in the
value of their interests in the cash collateral.
A final hearing is scheduled for March 5.
Emerald Group Holdings is represented by:
Erin D. Malone-Smolla, Esq.
Bradley Arant Boult Cummings, LLP
1221 Broadway, Suite 2400
Nashville, TN 37203
Phone: (615) 252-3805
Fax: (615) 252-6380
Esmolla@bradley.com
About Champion Healthcare
Champion Healthcare, LLC, a company in Lebanon, Tenn., specializes
in office-based mental health and addiction clinic dedicated to
offering comprehensive treatment services for individuals dealing
with mental health disorders and substance abuse challenges. Its
facility provides evidence-based therapies and interventions to
support clients on their path to recovery and improved mental
well-being.
Champion Healthcare filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. M.D. Tenn. Case No. 24-02956) on
August 5, 2024, listing $189,231 in assets and $1,197,758 in
liabilities. Darryl Champion, president of Champion Healthcare,
signed the petition.
Judge Charles M. Walker presides over the case.
The Debtor is represented by Jay R. Lefkovitz, Esq., at Lefkovitz &
Lefkovitz, PLLC.
CHARGE ENTERPRISES: Mediation Not Appropriate in Fox Lawsuit
------------------------------------------------------------
Magistrate Judge Christopher J. Burke of the United States District
Court for the District of Delaware determined that mediation is not
appropriate in the appealed case captioned as ANDREW FOX,
Appellant, v. CHARGE ENTERPRISES, INC., Appellee, Civil Action No.
24-1424-MN (D. Del.) pursuant to Section 1 of the Procedures to
Govern Mediation of Appeals from the United States Bankruptcy Court
for the District of Delaware, dated July 19, 2023, .
The parties jointly agree that their disputes in this case cannot
be resolved through mediation and the Court agrees.
The Court recommends that the assigned District Judge issue an
order withdrawing the matter from mediation.
The parties should address any disputes related to the briefing
schedule to the assigned District Judge in this matter.
A copy of the Court's decision dated Feb. 6, 2025, is available at
https://urlcurt.com/u?l=1WHJXv from PacerMonitor.com.
Charge Enterprises, Inc. is an electrical, broadband, and electric
vehicle charging infrastructure Debtor that provides clients with
end-to-end project management services, from advising, designing,
engineering, acquiring, and installing equipment, to monitoring,
servicing, and maintenance.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-10349) on March 7,
2024, with $114,368,349 in assets and $48,718,180 in liabilities.
Craig Harper-Denson, as the authorized officer, signed the
petition.
Judge Thomas M. Horan oversees the case.
The Debtor tapped Ian J. Bambrick, Esq., at FAEGRE DRINKER BIDDLE &
REATH LLP as bankruptcy counsel; BERKELEY RESEARCH GROUP, LLC as
financial restructuring adviser; and SQUIRE PATTON BOGGS (US) LLP
as special litigation counsel.
CHARGE ENTERPRISES: Mediation Not Appropriate in Schwelle Suit
--------------------------------------------------------------
Magistrate Judge Christopher J. Burke of the United States District
Court for the District of Delaware determined that mediation is not
appropriate in the appealed case captioned as LEAH SCHWELLER and
CRAIG DENSON, Appellants, v. CHARGE ENTERPRISES, INC., Appellee,
Civil Action No. 24-1426-MN (D. Del.) pursuant to Section 1 of the
Procedures to Govern Mediation of Appeals from the United States
Bankruptcy Court for the District of Delaware, dated July 19, 2023,
.
The parties jointly agree that their disputes in this case cannot
be resolved through mediation and the Court agrees.
The Court recommends that the assigned District Judge issue an
order withdrawing the matter from mediation.
The parties should address any disputes related to the briefing
schedule to the assigned District Judge in this matter.
A copy of the Court's decision dated Feb. 6, 2025, is available at
https://urlcurt.com/u?l=n1ySUA from PacerMonitor.com.
Charge Enterprises, Inc. is an electrical, broadband, and electric
vehicle charging infrastructure Debtor that provides clients with
end-to-end project management services, from advising, designing,
engineering, acquiring, and installing equipment, to monitoring,
servicing, and maintenance.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-10349) on March 7,
2024, with $114,368,349 in assets and $48,718,180 in liabilities.
Craig Harper-Denson, as the authorized officer, signed the
petition.
Judge Thomas M. Horan oversees the case.
The Debtor tapped Ian J. Bambrick, Esq., at FAEGRE DRINKER BIDDLE &
REATH LLP as bankruptcy counsel; BERKELEY RESEARCH GROUP, LLC as
financial restructuring adviser; and SQUIRE PATTON BOGGS (US) LLP
as special litigation counsel.
COASTAL GROWERS: To Sell Peanut Business in Auction
---------------------------------------------------
Coastal Growers LLC seeks permission from the U.S. Bankruptcy Court
for the Southern District of Alabama, to sell assets, free and
clear of all liens, claims, and encumbrances.
The Debtor is a grower owned peanut cooperative located at 250
Carpet Drive in Atmore, Alabama where peanuts are shelled, stored
and shipped. It is the operator of a 115+/--acre peanut shelling
plant located at 250 Carpet Drive, Atmore, Alabama, constructed in
2021. The Plant is owned by Holdings and leased to the Debtor
pursuant to a Lease Agreement dated January 15, 2021
While the Debtor owns some machinery and equipment, it leases most
of its equipment from Holdings pursuant to an Equipment Lease dated
January 15, 2021. The Debtor owns 95% of the membership
interests in Holdings and Coastal Growers Developers, LLC, a wholly
owned subsidiary the Debtor owns 5% of the membership interests in
Holdings.
The Debtors' Assets were heavily marketed for over a year with the
assistance of Porter White Capital Advisors, Inc. Consequently, an
expedited auction process is warranted. Concurrently with the
filing of this Motion, the Debtors have also filed an Application
to Employ PW&Co.
Interests against the Assets include:
-- Tim Pettis, the Escambia County Tax Collector with undetermined
amount;
-- Hancock Whitney Bank Source Loan with $42,000,000.00;
-- Hancock Whitney Bank, as Agent Revolving Loan
with$16,000,000.00;
-- Hancock Whitney Bank Direct Loan with $16,000,000.00;
-- Hancock Whitney Bank Equipment Loan with $909,996.00.
The Debtors seek a competitive sale process that will drive
substantial value to Debtors’ estates and their creditors
substantially greater than a simple liquidation of the Assets. In
order to maximize the value of the Assets through a competitive
bidding process while meeting the strict timetable necessitated by
Debtors' cash needs.
The Debtor respectfully request to approve the bidding procedures
on an expedited basis, which are designed to provide sufficient
notice to potential buyers and otherwise to ensure a prompt,
orderly, and transparent sale process.
The Debtors further asks to schedule a hearing to approve the
highest or otherwise best bid on or before April 1, 2025.
If the Debtors designates SunTx or another purchaser as Stalking
Horse Bidder, the Debtors will file a Notice of Designation of
Stalking Horse Bidder within 7 days of the selection of the
Stalking Horse by the Debtors but no later than 7 days prior to the
Auction.
Every bidder must provide a deposit in an amount of $100,000.00
which will be transferred via a Federal Wire Transfer to PW&Co,
into its non-segregated, noninterest-bearing bank account, via a
wire transfer no later than 5:00 PM (Eastern Standard Time) by the
Auction Qualification Deadline.
A bid must be irrevocable through the completion of the Auction,
provided that if such bid is accepted as the Successful Bid or, if
applicable, a Back-Up Bid (as defined below), at the Auction, then
each such bid will remain irrevocable as set forth below.
Each bidder (other than any Stalking Horse Bidder) will provide all
his/her/its contact information on the Bidder Pre-Registration Form
and the information and items listed in the instructions for Bidder
Qualification, including providing Proof of Funds.
Debtors reserve the right to make the final determination of who is
a Qualified Bidder. Debtors will notify all Qualified Bidders no
later than 5:00 PM Eastern Standard Time one business day before
the Auction that they may participate in the Auction. All Qualified
Bidders will be bound by their bids until the conclusion of the
Auction.
PW&Co will conduct an online-only auction of the Assets via Zoom
(or its equivalent) on March 21, 2025 at 9:00 A.M. Central Standard
Time, subject to extensions. Only Qualified Bidders (including any
Stalking Horse Bidder) and their counsel and financial advisors
will be entitled to participate in the Auction.
The Auction will conclude when Debtors receive what is determined
by the Debtors to be the highest or otherwise best offer for the
Assets, and subject only to the subsequent approval of the Court.
If the Successful Bidder fails to consummate its purchase of the
Assets by the required closing date because of a breach or failure
to perform on the part of such Successful Bidder, the Successful
Bidder will forfeit its Deposit to Debtors, Debtors will notify the
Back-Up Bidder of the Successful Bidder’s failure to close and
the Back-Up Bidder’s obligation to close, and Debtors will be
authorized to consummate the sale with the Back-Up Bidder without
further order of the Bankruptcy Court.
Any and all deposits required to be provided pursuant to these Bid
Procedures will be sent via wire transfer to the Escrow Agent. The
deposits will be held in escrow, in a non-interest-bearing account.
There will be no interest earned on the money deposited with the
Escrow Agent. All bidders agree to hold the Escrow Agent harmless
for any action taken in accordance with these Bid Procedures and/or
any Bankruptcy Court Order relating to the sale.
About Coastal Growers LLC
Coastal Growers, LLC is a company that helps peanut farmers achieve
higher returns by sharing in farming and shelling profits and
operates a shelling facility in Atmore. Since its launch in 2021,
the facility has served as a key center for peanut shelling,
storage, and shipping, contributing to regional agricultural growth
and economic development, the report relays.
Coastal Growers filed Chapter 11 petition (Bankr. S.D. Ala. Case
No. 24-13034) on November 27, 2024, with total assets of $10
million to $50 million and total liabilities of $100 million to
$500 million. Holly Johnson, chief financial officer of Coastal
Growers, signed the petition.
Judge Henry A. Callaway presides over the case.
Edward J Peterson, III at Johnson Pope Bokor Ruppel & Burns, LLP,
represents as the legal counsel of the Debtor.
COASTAL GROWERS: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Coastal Growers Holdings LLC
250 Carpet Drive
Atmore, AL 36502
Chapter 11 Petition Date: February 13, 2025
Court: United States Bankruptcy Court
Southern District of Alabama
Case No.: 25-10391
Judge: Hon. Henry A Callaway
Debtor's Counsel: Edward J. Peterson, Esq.
JOHNSON, POPE, BOKOR, RUPPEL & BURNS, LLP
400 N Ashley Dr. #3100
Tampa, FL 33602
Tel: 813-225-2500
Fax: 813-223-7118
Estimated Assets: $50 million to $100 million
Estimated Liabilities: $100 million to $500 million
The petition was signed by Holly Johnson as chief financial
officer.
The Debtor failed to include a list of its 20 largest unsecured
creditors in the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/NT7MKFA/Coastal_Growers_Holdings_LLC_and__alsbke-25-10391__0001.0.pdf?mcid=tGE4TAMA
COLLECTIVE SPEAKERS: Case Summary & 20 Top Unsecured Creditors
--------------------------------------------------------------
Debtor: Collective Speakers LLC
1211 10th Avenue
Greeley, CO 80631
Business Description: Collective Speakers LLC is a full-service
speakers bureau specializing in organizing
impactful spoken word and lecture events.
The bureau represents a diverse roster of
artists and thought leaders who address a
wide range of topics, including addiction,
social justice, diversity, education,
feminism, mental health, and more. In
addition to event organization, Collective
Speakers offers coaching services. With
over 27 years in the speaking industry, the
bureau provides speech coaching sessions and
speech writing services to help individuals
enhance their speaking skills and craft
compelling presentations.
Chapter 11 Petition Date: February 14, 2025
Court: United States Bankruptcy Court
District of Colorado
Case No.: 25-10783
Judge: Hon. Kimberley H Tyson
Debtor's Counsel: Keri L. Riley, Esq.
KUTNER BRINEN DICKEY RILEY PC
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Tel: 303-832-2400
E-mail: klr@kutnerlaw.com
Total Assets: $25,000
Total Liabilities: $1,956,440
The petition was signed by Sean J. Lawton as president and owner.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/IEOX27Y/Collective_Speakers_LLC__cobke-25-10783__0003.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/L6PLXMY/Collective_Speakers_LLC__cobke-25-10783__0001.0.pdf?mcid=tGE4TAMA
COLLEGE OF SAINT ROSE: Plan Exclusivity Period Extended to March 24
-------------------------------------------------------------------
Judge Robert E. Littlefield, Jr. of the U.S. Bankruptcy Court for
the Northern District of New York extended The College of Saint
Rose's exclusive periods to file a plan of reorganization and
obtain acceptance thereof to March 24 and May 23, 2025,
respectively.
As shared by Troubled Company Reporter, the Debtor explains that
the instant chapter 11 case is one of considerable size and
complexity. Indeed, and as set forth in Debtor's petition and
schedules, the assets and liabilities of Debtor's estate are
extensive. Furthermore, the various constituencies in this case are
diverse, ranging from governmental entities, bondholders, trade
creditors, contract vendees and utility providers, each having
differing needs and interests to be addressed by the Debtor.
The Debtor believes that it has made significant progress in good
faith towards achieving this goal. Primarily, Debtor successfully
obtained Court approval to sell the campus to the Land Authority,
the proceeds of which is the largest estate asset that will be
utilized in part to fund a plan of reorganization. Additionally,
Debtor and its counsel have been actively involved in the
administration of the instant chapter 11 case rather than acting as
a passive participant.
The Debtor asserts that it has a framework for the plan, which will
be one of liquidation. It only needs additional time to finalize
the preparation to the plan documents and file same with the Court.
The College of Saint Rose is represented by:
Matthew G. Roseman, Esq.
Bonnie L. Pollack, Esq.
Cullen and Dyman LLP
80 State Street, Suite 900
Albany, NY 12207
Tel: (516) 357-3700
Email: mroseman@cullenllp.com
bpollack@cullenllp.com
About College of Saint Rose
College of Saint Rose -- https://strose.edu -- is a New York-based
college.
College of Saint Rose sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D.N.Y. Case No. 24-11131) on October 10,
2024. In the petition filed by Marcia J. White, as president the
Debtor reports estimated assets between $1 million and $10 million
and estimated liabilities between $50 million and $100 million.
The Debtor is represented by Cullen and Dykman LLP. Heller Kauffman
LLP is special counsel. FTI Consulting Inc. is financial advisor.
COLUMBUS MCKINNON: Moody's Puts 'Ba3' CFR on Review for Downgrade
-----------------------------------------------------------------
Moody's Ratings placed the ratings of Columbus McKinnon Corporation
on review for downgrade, including the Ba3 Corporate Family Rating,
Ba3-PD Probability of Default Rating, and the Ba2 senior secured
first lien bank credit facility ratings. The outlook, previously
stable, was changed to rating under review. There is no change to
the Speculative Grade Liquidity Rating of SGL-1.
The action is in response to Columbus McKinnon's pending
acquisition of Kito Crosby, a company currently owned by private
equity firm KKR's Crosby US Acquisition Corp., in an all cash
transaction for $2.7 billion. Proposed financing for the
transaction, which will also include the refinancing of Columbus
McKinnon's existing senior secured credit facility, will include
approximately $1.3 billion of new senior secured term loan debt and
$1.2 billion of new senior secured notes, along with $800 million
of perpetual convertible preferred equity provided by private
equity firm CD&R. As part of the transaction, Columbus McKinnon
will replace its existing $175 million revolver with a new $500
million senior secured revolving credit facility. The acquisition
will approximately double Columbus McKinnon's annual revenue and
offer opportunities for margin enhancement related to business mix
and cost synergies.
The review for downgrade will focus on recent softness in part of
Columbus McKinnon's business, the high financial leverage at
transaction close and the ensuing path of deleveraging, and the
integration risk associated with this transformational acquisition.
As part of Moody's review, Moody's will also evaluate the scale and
business profile of the combined entity, opportunities for margin
expansion, and financial policy considerations.
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
Excluding the existing review for downgrade, the Ba3 CFR is
supported by Columbus McKinnon's favorable market position and
strong brands in the material handling and motion control end
markets. Its diverse product portfolio ranges from hoists,
actuators, rigging tools and digital power control systems to
precision conveyor systems and related products. The company
benefits from a strong backlog that supports low single-digit
revenue growth with a mid-teens EBITA margin. The company's pricing
leverage will be an important contributor to growth. The rating is
constrained by the company's sizable debt balance as the result of
acquisitions in recent years, yielding somewhat higher
debt-to-EBITDA of 4.4 times at September 30, 2024. The company's
relatively modest scale when compared to large, diversified
manufacturers and exposure to certain cyclical end markets are also
key credit constraints. Additionally, the company is exposed to
ongoing global macroeconomic headwinds including inflation, foreign
exchange and supply chain pressures.
Prior to the ongoing review for downgrade, the ratings of Columbus
McKinnon could be downgraded if the company were to increase the
pace, size or complexity of acquisitions that would present
substantial integration challenges or a significant increase in
debt. Debt-to-EBITDA sustained above 4.5x would warrant lower
ratings consideration, as would free cash flow of below 5%. A
downgrade could also be prompted if the company adopts an
increasingly aggressive financial policy.
Prior to the ongoing review for downgrade, factors that could lead
to an upgrade of Columbus McKinnon's ratings included expansion of
its EBITA margin into the high teens while achieving organic
revenue growth. The ability to continue integrating modestly-sized
acquisitions while using a significant portion of free cash flow to
repay debt, resulting in debt-to-EBITDA sustained below 3.5x would
also support higher ratings.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
Columbus McKinnon Corporation, headquartered in Charlotte, NC, is a
publicly traded diversified industrial manufacturer with operations
in Lifting, Linear Motion, Automation and Precision Conveyance
platforms. Revenue for the twelve months ended December 31, 2024
totaled $1.0 billion.
COLUMBUS MCKINNON: S&P Places 'B+' ICR on CreditWatch Negative
--------------------------------------------------------------
S&P Global Ratings placed all its ratings on Columbus McKinnon
Corp., including its 'B+' issuer credit rating, on CreditWatch with
negative implications.
The CreditWatch placement reflects S&P's expectation that it could
lower or affirm our ratings on Columbus McKinnon following the
acquisition of Kito Crosby.
S&P anticipates resolving the CreditWatch placement around
transaction close, which we expect will take place in the first
half of fiscal 2026 (fiscal year ending March 31, 2026), subject to
regulatory approvals and satisfactory completion of customary
closing conditions.
On Feb. 10, 2025, Columbus McKinnon Corp. announced it entered into
a definitive agreement to acquire lifting, rigging, and
material-handling equipment manufacturer Kito Crosby Ltd. (KCL) for
a total consideration of $2.7 billion.
The CreditWatch placement follows Columbus McKinnon's announcement
that it has entered into a definitive agreement to acquire KCL for
a total consideration of $2.7 billion. S&P said, "We expect the
transaction will be funded primarily with debt. Columbus McKinnon
has obtained $3.050 billion in committed bridge debt financing,
including a $500 million revolving credit facility. In addition,
Clayton, Dubilier, & Rice LLC (CD&R) will provide an $800 million
perpetual convertible preferred equity investment and could own
about 40% of Columbus McKinnon after the transaction close.
Columbus McKinnon's S&P Global Ratings-adjusted debt to EBITDA for
the 12 months ended Dec. 31, 2024, was about 4.2x. While we note
the company has a track record of deleveraging its balance sheet
following prior acquisitions, we estimate pro forma leverage could
increase well above our current downgrade trigger of 5.0x at
close."
S&P said, "We believe KCL will bolster Columbus McKinnon's scale
and strengthen its competitive positioning in the global lifting
and hoists equipment markets. With combined revenues of over $2
billion and over $450 million of EBITDA (pro forma in fiscal 2026
on an S&P Global Ratings-adjusted basis), this acquisition
significantly improves Columbus McKinnon's scale, scope, and
geographic diversity. We also anticipate the addition of KCL could
enhance Columbus McKinnon's margins given KCL's stronger margin
profile and expectation of moderate cost-reducing synergies.
However, we note the costs incurred to integrate these companies
could dilute potential savings in the first one or two years and
that failure to successfully integrate a large-scale transaction
could pose a significant risk to operating performance.
"We anticipate moderate deleveraging after transaction close. We
expect the combined company will generate materially positive free
operating cash flows (FOCF) and that it will use most of this
excess cash to reduce its debt load over the medium term. Columbus
McKinnon has a track record of successfully pre-paying debt from
cash generation, but we note that the debt burden of this
transaction is significantly higher than previous transactions.
"The CreditWatch placement reflects our expectation that we could
lower or affirm our ratings on Columbus McKinnon following the
announced acquisition of Kito Crosby. If there is a downgrade, we
believe it could likely be one notch based on available
information. We will seek to resolve the CreditWatch following our
review of the financial and business impact of the acquisition on
Columbus McKinnon's credit profile around the time the transaction
closes."
COMMSCOPE HOLDING: BlackRock Reports 9.7% Equity Stake
------------------------------------------------------
BlackRock, Inc. disclosed in Schedule 13G/A Report filed with the
U.S. Securities and Exchange Commission that as of December 31,
2024, it beneficially owned 20,952,549 shares of CommScope Holding
Company, Inc.'s common stock, representing 9.7% of the shares
outstanding.
BlackRock may be reached at:
Spencer Fleming
BlackRock, Inc.
50 Hudson Yards
New York, NY 10001
Tel: (212) 810-5800
A full-text copy of BlackRock's SEC Report is available at:
https://tinyurl.com/5n7jh3zs
About CommScope Holding
Headquartered in Hickory, North Carolina, CommScope Holding
Company, Inc. -- https://www.commscope.com/ -- is a global provider
of infrastructure solutions for communication, data center, and
entertainment networks. The Company's solutions for wired and
wireless networks enable service providers, including cable,
telephone, and digital broadcast satellite operators, as well as
media programmers, to deliver media, voice, Internet Protocol (IP)
data services, and Wi-Fi to their subscribers. This allows
enterprises to experience constant wireless and wired connectivity
across complex and varied networking environments.
CommScope reported a net loss of $1.45 billion in 2023, a net loss
of $1.28 billion in 2022, a net loss of $462.6 million in 2021, and
a net loss of $573.4 million in 2020. As of September 30, 2024,
CommScope Holding Company had $8.8 billion in total assets, $10.9
billion in total liabilities, $1.2 billion of Series A convertible
preferred stock, and $3.3 billion in total stockholders' deficit.
* * *
In January 2025, Moody's Ratings placed CommScope Holding Company,
Inc.'s ratings on review for upgrade, including its Caa2 corporate
family rating and Caa3-PD probability of default rating. The senior
secured notes rated B3 and the senior unsecured notes rated Ca at
CommScope's subsidiary, CommScope, Inc. and the backed senior
unsecured notes at CommScope's other subsidiary, CommScope
Technologies LLC rated Ca, were also placed on review for upgrade.
Previously, the outlook was negative.
As reported by the TCR on March 15, 2024, Moody's Ratings
downgraded CommScope's ratings, including the corporate family
rating to Caa2 from B3. The ratings downgrade primarily reflects
the increasing risk of a capital restructuring, including a
distressed exchange of some or all of the company's debt, with
maturities approaching, including the company's senior notes in
June 2025 and secured debt in March and April of 2026.
COMMSCOPE HOLDING: Closes $2.1B Sale of OWN, DAS Biz to Amphenol
----------------------------------------------------------------
CommScope Holding Company, Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that on
January 31, 2025, it completed the previously announced sale of its
Outdoor Wireless Networks business segment as well as the
Distributed Antenna Systems business unit of its Networking,
Intelligent Cellular & Security Solutions segment to Amphenol
Corporation pursuant to the Purchase Agreement, dated as of July
18, 2024.
Pursuant to the Purchase Agreement, Amphenol acquired the OWN
Business and the DAS Business on a cash-free, debt-free basis, in
exchange for approximately $2.1 billion in cash, subject to certain
adjustments.
The proceeds from the sale of the OWN Business and the DAS Business
will be used to pay fees and expenses associated with the
transactions and to repay all outstanding amounts under the
Company's asset-backed revolving credit facility, to repay in part
the Company's 4.750% Senior Secured Notes due 2029 and to repay in
full the Company's 6.000% Senior Secured Notes due 2026. In
connection with the repayment of all outstanding amounts under the
Company's asset-backed revolving credit facility, the committed
amount thereunder will be reduced to $750 million, subject to
borrowing base limitations. Following the consummation of the Debt
Repayment, it expects that the conditions precedent will be met for
a 25-basis point reduction in the applicable margin on the
Company's Senior Secured Term Loan.
About CommScope Holding
Headquartered in Hickory, North Carolina, CommScope Holding
Company, Inc. -- https://www.commscope.com/ -- is a global provider
of infrastructure solutions for communication, data center, and
entertainment networks. The Company's solutions for wired and
wireless networks enable service providers, including cable,
telephone, and digital broadcast satellite operators, as well as
media programmers, to deliver media, voice, Internet Protocol (IP)
data services, and Wi-Fi to their subscribers. This allows
enterprises to experience constant wireless and wired connectivity
across complex and varied networking environments.
CommScope reported a net loss of $1.45 billion in 2023, a net loss
of $1.28 billion in 2022, a net loss of $462.6 million in 2021, and
a net loss of $573.4 million in 2020. As of September 30, 2024,
CommScope Holding Company had $8.8 billion in total assets, $10.9
billion in total liabilities, $1.2 billion of Series A convertible
preferred stock, and $3.3 billion in total stockholders' deficit.
* * *
In January 2025, Moody's Ratings placed CommScope Holding Company,
Inc.'s ratings on review for upgrade, including its Caa2 corporate
family rating and Caa3-PD probability of default rating. The senior
secured notes rated B3 and the senior unsecured notes rated Ca at
CommScope's subsidiary, CommScope, Inc. and the backed senior
unsecured notes at CommScope's other subsidiary, CommScope
Technologies LLC rated Ca, were also placed on review for upgrade.
Previously, the outlook was negative.
As reported by the TCR on March 15, 2024, Moody's Ratings
downgraded CommScope's ratings, including the corporate family
rating to Caa2 from B3. The ratings downgrade primarily reflects
the increasing risk of a capital restructuring, including a
distressed exchange of some or all of the company's debt, with
maturities approaching, including the company's senior notes in
June 2025 and secured debt in March and April of 2026.
COMPREHENSIVE INTERVENTIONAL: Voluntary Chapter 11 Case Summary
---------------------------------------------------------------
Three affiliates that simultaneously filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Comprehensive Interventional Care Centers, PLLC 25-01225
Comprehensive Integrated Care
838 W. Elliot Rd.
Suite 101
Gilbert, AZ 85233
Comprehensive Integrated Care, PLLC 25-01228
Comprehensive Integrated Care
838 W. Elliot Rd.
Suite 101
Gilbert AZ, 85233
Comprehensive Interventional Care, PLLC 25-01229
Comprehensive Integrated Care
838 W. Elliott Rd.
Suite 101
Gilbert, AZ 85233
Business Description: CIC is a multi-specialty medical practice
with a team of experts in interventional
radiology, vein care, podiatry, cardiology,
and vascular surgery, offering cutting-edge
treatments with minimal risk and recovery
time. They focus on treating a wide range
of conditions, including neuropathy,
vascular diseases, vein issues, ulcers, and
heart disease.
Chapter 11 Petition Date: February 13, 2025
Court: United States Bankruptcy Court
District of Arizona
Debtors' Counsel: Wesley D. Ray, Esq.
SACKS TIERNEY P.A.
4250 N Drinkwater Blvd.
4th Floor
Scottsdale, AZ 85251-3693
Tel: 480-425-2600
Email: Wesley.Ray@sackstierney.com
Comprehensive Interventional Care's
Estimated Assets: $10 million to $50 million
Comprehensive Interventional Care's
Estimated Liabilities: $10 million to $50 million
The petitions were signed by Joel Rainwater, MD, as manager.
The Debtors failed to include lists of their 20 largest unsecured
creditors in the petitions.
Full-text copies of the petitions are available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/WAKTR4A/Comprehensive_Interventional_Care__azbke-25-01225__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/6YDUADY/Comprehensive_Integrated_Care__azbke-25-01228__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/AKKABNQ/Comprehensive_Interventional_Care__azbke-25-01229__0001.0.pdf?mcid=tGE4TAMA
CONNECTICUT ATTORNEYS: A.M. Best Cuts Fin. Strength Rating to B
---------------------------------------------------------------
AM Best has removed from under review with developing implications
and downgraded the Financial Strength Rating to B (Fair) from B++
(Good) and the Long-Term Issuer Credit Rating to "bb" (Fair) from
"bbb" (Good) of Connecticut Attorneys Title Insurance Company
(CATIC) (Essex Junction, VT). The outlook assigned to these Credit
Ratings (ratings) is stable.
The ratings reflect CATIC's balance sheet strength, which AM Best
assesses as weak, as well as its adequate operating performance,
limited business profile and appropriate enterprise risk management
(ERM).
The ratings reflect AM Best's revised assessment of CATIC's overall
balance sheet strength to weak from adequate due to the significant
drop-off in CATIC's risk-adjusted capitalization; this was prompted
by a contraction in surplus and available capital despite the
capital infusion received from its parent in the fourth quarter of
2024. This sudden decline was also the result of
higher-than-expected net premium leverage and the consequential
deterioration in risk-adjusted capitalization, as measured by
Best's Capital Adequacy Ratio (BCAR). AM Best also considers an
additional level of required capital for CATIC due to a potentially
large loss that is currently in the process of being resolved. The
stable outlooks reflect AM Best's expectation that CATIC will
return to profitability in 2025 and maintain a level of
risk-adjusted capitalization that is commensurate with its current
balance sheet strength assessment.
CATIC's weaker than expected combined and operating ratios of late
are due to its higher-than-average expense ratio in support of its
expansion efforts. CATIC continues to maximize investment growth
while concurrently deploying expense reduction initiatives to
alleviate its high expenses and improve its operating results. The
limited business profile reflects the concentration that CATIC has
as a monoline title insurer. AM Best views CATIC's ERM as
appropriate as the company has an established framework with a
defined risk appetite and tolerances that are utilized to
articulate the level and type of risks that are acceptable to
CATIC. CATIC has an appropriate reinsurance program, which enables
it to write commercial business, cover defalcation risk, and social
engineering risks.
COTY INC: Moody's Upgrades CFR to Ba1 & Alters Outlook to Stable
----------------------------------------------------------------
Moody's Ratings upgraded Coty Inc.'s Corporate Family Rating to Ba1
from Ba2, its Probability of Default Rating to Ba1-PD from Ba2-PD,
the company's senior secured first lien revolving credit facility
rating to Ba1 from Ba2, the senior secured notes ratings to Ba1
from Ba2, and the senior unsecured notes to Ba1 from Ba2. Moody's
lowered Coty's speculative grade liquidity rating to SGL-2 from
SGL-1. The rating outlook is stable and was previously positive.
The rating upgrades reflects Coty's continued progress in reducing
financial leverage and strengthening its balance sheet as well as
maintaining good liquidity, primarily supported by debt repayment
funded from free cash flow and asset sales. Moody's expect that the
company's debt-to-EBITDA leverage will improve to a low 3x range by
December 2025, supported by modest revenue and earnings growth as
well as debt repayment. Coty's commitment to continue de-leveraging
is a key factor in the upgrade. Coty is targeting to reduce net
debt-to-EBITDA (based on the company's calculation) towards 2.0x
exiting calendar year 2025 from 2.9x as of December 2024. Coty has
executed its business transformation well in the past four years,
and generated healthy growth in both its prestige and mass
portfolios. Coty is achieving higher gross margins by focusing on
product premiumization and innovation, brand repositioning, and
investment in marketing and brand support. The company continues to
see solid growth in its prestige segment and the fragrance
category. Moody's expect the company will continue to improve
revenue and earnings in the next 12-18 months, though the growth
will be more modest due to softness in the consumer beauty segment
and foreign exchange headwinds. Nevertheless, Moody's expect the
company will continues to delever to a low 3.0x range in the next
12-18 months through continued growth and higher penetration in
prestige fragrance globally, continued product expansion in travel
retail, and penetration in skincare, fragrance and prestige
cosmetics in China. Moody's expect Coty will generate at least $250
million of free cash flow annually, supported by modest earnings
growth, disciplined capital spending, working capital management,
and further cost saving initiatives.
Moody's lowered the speculative grade liquidity rating to SGL-2
from SGL-1 because of the remaining $1.1 billion April 2026 senior
secured notes maturities. Moody's anticipate Coty would need to
meaningfully utilize its approximate $2 billion of committed
revolver ($80 million was drawn as of December 31, 2024) to fund
the maturities if it does not proactively refinance the notes.
Moody's assume in the Ba1 CFR that the company will address the
maturities through free cash flow and refinancing without
materially affecting cash interest expense.
RATINGS RATIONALE
Coty's Ba1 CFR reflects the company's solid market position and
improved operating performance that is leading to sizable annual
free cash flow, and the company's commitment to delever. Moody's
anticipate debt-to-EBITDA will improve to a low 3.0x in the next 12
months from 3.5x as of December 31, 2024. Modest earnings
improvement as well as further debt repayment funded by free cash
flow and asset sales will drive the leverage reduction. The
expected low 3.0x leverage estimate is before any debt repayment
from potential proceeds from Wella assets divestiture since the
timing and use of proceeds of such transaction is uncertain. Coty's
earnings growth is supported by an expansion in travel retail,
healthy demand and higher penetration in prestige fragrance,
product premiumization and innovation. Continued focus on marketing
and brand support, as well as through expansion in skincare and
China are also contributing to earnings growth. The rating also
reflects Moody's view that the company will continue to generate
solid free cash flow over the next year as a result of modest
earnings growth, disciplined capital spending, additional cost
savings, and working capital management. Moody's believe Coty's
commitment to deleverage is in part motivated by a desire to
improve financial flexibility to restart the dividend, which would
weaken free cash flow. Moody's assume that any dividend resumption
would be to a level that preserves significant annual free cash
flow. Coty's free cash flow, swap monetization and assets sales can
fund share repurchases of roughly $200 million annually while
continuing to deleverage. Moody's believe there is some event risk
related to future acquisitions and cash needs by Coty's largest
shareholder, JAB Holding.
Coty's product portfolio has a concentration in fragrance and color
cosmetics, the two categories that Moody's view as more exposed to
earnings volatility in an economic downturn compared to skincare
and haircare, which was evidenced by significant category revenue
declines in 2020. Nevertheless, still healthy sector growth and
higher penetration in prestige fragrance compared to the
pre-pandemic level is helping to expand Coty's gross margin. The
free cash flow provides the company further financial flexibility
to invest in marketing and product development, as well as other
strategic pillars such as skincare and China. Coty is more
concentrated than its primary competitors in mature developed
markets in the US and Western Europe. Moreover, Coty relies more
heavily on licenses to support its prestige brands relative to
greater ownership of its mass beauty brands. That said, lower
exposure to China benefited the company in the past several years
when beauty demand in China was soft and certain of Coty's
competitors were much more negatively impacted. As there are no
major licenses up for renewal in the next several years, brand
licensors switching partners is a longer-term risk. The risk is
somewhat mitigated by Coty's good manufacturing, distribution and
marketing capabilities, successful prestige product launches, and
the company's new license agreements with additional brands. The
company's top seven licensing brands are also owned by different
organizations, which creates some diversification. Coty's ratings
are also supported by the company's large scale, its portfolio of
well-recognized brands, and good product and geographic
diversification.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects Moody's expectation that Coty will
continue to generate good earnings and use free cash flow and
proceeds from asset sales to repay debt and reduce debt-to-EBITDA
leverage. The stable outlook also reflects Moody's expectation that
the company will only resume dividend payments after the company
meets its mid to long-term target leverage ratio of 2.0x (based on
the company's calculation) and the company will maintain at least
good liquidity including proactively addressing maturities.
Coty's ratings could be downgraded if operating performance
deteriorates due to market share losses, revenue declines or an
inability to increase prices to cover costs. Coty's ratings could
also be downgraded if it fails to reduce debt-to-EBITDA to below
3.5x, or if the company pursues material debt funded acquisitions
or shareholder distributions. A deterioration in liquidity could
also lead to a downgrade.
Coty's ratings could be upgraded if the company sustains strong
operating performance with organic revenue growth, maintains its
EBITDA margin, and increases revenue diversity. Coty would also
need to reduce debt-to-EBITDA to below 2.75x, generate consistently
strong free cash flow, and maintain financial policies that sustain
strong credit metrics to be considered for an upgrade.
The principal methodology used in these ratings was Consumer
Packaged Goods published in June 2022.
Coty Inc., a public company headquartered in New York, NY, is a
manufacturer and marketer of fragrance, color cosmetics, and skin
and body care products. The company's products are sold in over 120
countries and territories. The company generated roughly $6.1
billion in revenue for the 12 months ending December 31, 2024. Coty
is 51% owned by investment firm JAB Holding Company S.a.r.l. (JAB),
with the rest publicly traded or owned by management.
CREDIT ACCEPTANCE: S&P Rates New $400MM Sr. Unsecured Notes 'BB'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue rating to Credit
Acceptance Corp.'s proposed issuance of $400 million senior
unsecured notes due 2030. The company will use the net proceeds to
pay off its existing $400 million, 6.625% unsecured notes due
2026.
As of Dec. 31, 2024, Credit Acceptance's leverage (measured as debt
to equity) was 3.6x, versus 2.9x in 2023. The company also had $3.4
billion of credit reserves (30% of gross receivables) at the time.
Adjusting for these reserves, S&P sees leverage remaining within
our expected range of 1.5x-2.75x.
S&P said, "Additionally, we expect Credit Acceptance's balance
sheet to be highly encumbered, since 80%-85% of its funding is
secured. Pro forma for the company's proposed debt issuance, we
anticipate an unencumbered assets-to-unsecured debt ratio of
1.0x-1.2x. If the ratio falls below 1.0x, we could lower our
unsecured debt rating by at least one notch."
Credit Acceptance reported a 3% decrease (a $314 million decrease)
in forecast net cash flows in 2024--a decrease that was largely
tied to its collection expectations for its 2022-2024 assignment
years. (The company reported a $206 million decrease in 2023.)
An expected economic slowdown in 2025, the likelihood of a higher
unemployment rate (at 4.5% by the end of this year),
higher-for-longer interest rates, sustained inflationary pressure,
and a continued decline in used-car prices could all pose asset
quality challenges for auto lenders.
The stable outlook on the issuer credit rating over the next 12
months is based on Credit Acceptance's consistent financial
performance and relatively low expected leverage of 1.50x-2.75x.
S&P could lower the rating in the next 12 months if the company's
leverage rises above 2.75x and if its earnings deteriorate. It
could also lower the rating if the company faces regulatory actions
that erode its equity or materially limit its operations.
An upgrade is unlikely over the next 12 months owing to legal and
regulatory risks.
CUBIC CORP: $1.48BB Bank Debt Trades at 32% Discount
----------------------------------------------------
Participations in a syndicated loan under which Cubic Corp is a
borrower were trading in the secondary market around 67.8
cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The $1.48 billion Term loan facility is scheduled to mature on May
25, 2028. The amount is fully drawn and outstanding.
Cubic Corporation is an American public transportation and defense
corporation. It operates two business segments: Cubic
Transportation Systems and Cubic Mission and Performance
Solutions.
CYANOTECH CORP: Reports $224K Net Loss for Q3 2024
--------------------------------------------------
Cyanotech Corporation submitted its Quarterly Report on Form 10-Q
to the Securities and Exchange Commission, showing a net loss of
$224,000 on net sales of $6.17 million for the three months ending
Dec. 31, 2024. This marks a notable improvement compared to the
same period last year, when the Company reported a net loss of
$1.02 million on net sales of $5.58 million.
For the nine months ending Dec. 31, 2024, the Company reported a
net loss of $2.58 million on net sales of $17.92 million, compared
to a net loss of $3.19 million on net sales of $17.10 million for
the nine months ended Dec. 31, 2023.
As of Dec. 31, 2024, the Company had $23.96 million in total
assets, $14.46 million in total liabilities, and $9.50 million in
total stockholders' equity.
The Company has experienced operating losses and accumulated
negative cash flows from its operations. Additionally, the Company
did not meet the requirements of two debt covenants as of March 31,
2024, and one debt covenant requirement as of March 31, 2023. In
June 2023, First Foundation Bank implemented a freeze on further
advances under the Revolving Credit Agreement. The Company has
indicated that these circumstances create significant uncertainty
about its ability to continue operating as a going concern.
As of Dec. 31, 2024, the Company had cash of $359,000 and working
capital of $602,000 compared to $707,000 and $2,037,000,
respectively, as of March 31, 2024. The Company had the Line of
Credit with the Bank that provided for borrowings up to $2,000,000
on a revolving basis, however, as part of the covenant waiver at
March 31, 2023, the borrowings under this Line of Credit were
frozen. On Oct. 13, 2023, the Bank converted the Line of Credit to
a term loan in the amount of $1,480,000 with an original maturity
date of Aug. 30, 2024. As of Dec. 31, 2024 and March 31, 2024, the
Company had $890,000 and $1,240,000, respectively, outstanding on
the 2023 Loan, with a maturity date extended to March 31, 2025.
The full text of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/768408/000143774925003413/cyan20241231_10q.htm
About Cyanotech Corp.
Cyanotech Corporation, located in Kailua-Kona, Hawaii, is an
agricultural company engaged in the production of natural products
derived from microalgae grown in complex and intricate agricultural
systems on the Kona coast of Hawaii. The Company has a core
competency in cultivating and processing microalgae into
high-value, high-quality natural products for the human dietary
supplement market. The Company's products are sold as
consumer-packaged goods through natural products distributors,
retailers and online channels, and direct to consumers, primarily
in the U.S., as well as in bulk form to manufacturers, formulators
and distributors worldwide in the health foods, cosmetic
manufacturers and nutraceuticals and dietary supplement markets.
Newport Beach, Calif.-based Grant Thornton LLP, the Company's
auditor since 2008, issued a "going concern" qualification in its
report dated June 26, 2024, citing that the Company sustained
operating losses and negative cash flows from operations for the
fiscal years ended March 31, 2024, and 2023. Further, the Company
was not in compliance with two debt covenant requirements at March
31, 2024, and one debt covenant requirement at March 31, 2023.
These conditions, along with other matters, raise substantial doubt
about the Company's ability to continue as a going concern.
Cyanotech reported a net loss of $5.3 million for the year ended
March 31, 2024, compared to a net loss of $3.4 million for the year
ended March 31, 2023.
DAJMO TRUCKING: Plan Filing Deadline Extended to April 2
--------------------------------------------------------
Judge Gregory L. Taddonio of the U.S. Bankruptcy Court for the
Western District of Pennsylvania extended Dajmo Trucking, LLC's
period to file a Plan of Reorganization and Disclosure statement
for additional 60 days through and including April 2, 2025.
As shared by Troubled Company Reporter, 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.
DANG LA CONSTRUCTION: Case Summary & Six Unsecured Creditors
------------------------------------------------------------
Debtor: Dang La Construction and Associates LLC
10300 Westoffice Dr.
Houston, TX 77042
Chapter 11 Petition Date: February 14, 2025
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 25-30853
Judge: Hon Alfredo R Perez
Debtor's Counsel: Susan Tran Adams, Esq
TRAN SINGH, LLP
2502 La Branch St.
Houston TX 77004
E-mail: stran@ts-llp.com
Total Assets: $60,305
Total Liabilities: $1,212,340
The petition was signed by Liem Thanh Dang as managing member.
A full-text copy of the petition, which includes a list of the
Debtor's six unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/6ROMIHY/Dang_La_Construction_and_Associates__txsbke-25-30853__0001.0.pdf?mcid=tGE4TAMA
DEL MONTE FOODS: $472.4MM Bank Debt Trades at 34% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Del Monte Foods
Corp II Inc is a borrower were trading in the secondary market
around 66.4 cents-on-the-dollar during the week ended Friday,
February 14, 2025, according to Bloomberg's Evaluated Pricing
service data.
The $472.4 million Term loan facility is scheduled to mature on
August 2, 2028. About $470.1 million of the loan has been drawn and
outstanding.
DEL MONTE FOODS, INC. manufactures and distributes packaged food
products. The Company provides canned fruits and vegetables, as
well as a wide range of snacks. Del Monte Foods serves customers
worldwide.
DEL MONTE FOODS: $725MM Bank Debt Trades at 35% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Del Monte Foods Inc
is a borrower were trading in the secondary market around 65.2
cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The $725 million Term loan facility is scheduled to mature on May
16, 2029. About $100.7 million of the loan has been drawn and
outstanding.
DEL MONTE FOODS, INC. manufactures and distributes packaged food
products. The Company provides canned fruits and vegetables, as
well as a wide range of snacks. Del Monte Foods serves customers
worldwide.
DELTA ELITE: Sec. 341(a) Meeting of Creditors on March 10
---------------------------------------------------------
On February 3, 2025, Delta Elite Investments LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Georgia. According to court filing, the Debtor reports between
$500,000 and $1 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 10,
2025 at 10:00 AM via Telephone conference. To attend, Dial
888-902-9750 and enter participation code 9635734.
About Delta Elite Investments LLC
Delta Elite Investments LLC is a limited liability company.
Delta Elite Investments LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-51115) on
February 3, 2025. In its petition, the Debtor reports estimated
assets between $100,000 and $500,000 and estimated liabilities
between $500,000 and $1 million.
DIOCESE OF NORWICH: Reaches Deal with Abuse Claimants to Pay $31MM
------------------------------------------------------------------
Emily Lever of Law360 reports that the bankrupt Roman Catholic
Diocese of Norwich, Connecticut, has agreed to a $31 million
settlement with sexual abuse survivors, the diocese and its
unsecured creditors' committee announced jointly on Friday,
February 14, 2025.
About The Norwich Roman Catholic
Diocesan Corporation
The Norwich Roman Catholic Diocesan Corporation is a nonprofit
corporation that gives endowments to parishes, schools, and other
organizations in the Diocese of Norwich, a Latin Church
ecclesiastical territory or diocese of the Catholic Church in
Connecticut and a small part of New York.
The Norwich Roman Catholic Diocesan Corporation sought Chapter 11
protection (Bankr. D. Conn. Case No. 21-20687) on July 15, 2021.
The Debtor estimated $10 million to $50 million in assets against
liabilities of more than $50 million. Judge James J. Tancredi
oversees the case.
The Debtor tapped Ice Miller, LLP, Robinson & Cole, LLP and Gellert
Scali Busenkell & Brown, LLC as bankruptcy counsel, Connecticut
counsel and special counsel, respectively. Epiq Corporate
Restructuring, LLC is the claims and noticing agent.
On July 29, 2021, the U.S. Trustee for Region 2 appointed an
official committee of unsecured creditors in the Chapter 11 case.
The committee tapped Zeisler & Zeisler, PC as its legal counsel.
DIOCESE OF ROCHESTER: Court Okays Ch. 11 Plan 3rd-Party Releases
----------------------------------------------------------------
Rick Archer of Law360 Bankruptcy Authority reports that on February
11, 2025, a New York bankruptcy judge delayed approval of the Roman
Catholic Diocese of Rochester's Chapter 11 plan disclosure for a
month to assess recent changes but confirmed that the plan's
third-party liability releases are permissible.
About The Diocese of Rochester
The Diocese of Rochester in upstate New York provides support to 86
Roman catholic parishes across 12 counties in upstate New York. It
also operates a middle school, Siena Catholic Academy. The diocese
has 86 full-time employees and six part-time employees and provides
medical and dental benefits to an additional 68 retired priests and
two former priests.
The diocese generated $21.88 million of gross revenue for the
fiscal year ending June 30, 2019, compared with a gross revenue of
$24.25 million in fiscal year 2018.
The Diocese of Rochester filed for Chapter 11 bankruptcy protection
(Bankr. W.D.N.Y. Case No. 19-20905) on Sept. 12, 2019, amid a wave
of lawsuits over alleged sexual abuse of children. In the petition,
the diocese was estimated to have $50 million to $100 million in
assets and at least $100 million in liabilities.
Bond, Schoenec & King, PLLC and Bonadio & Co. serve as the
diocese's legal counsel and accountant, respectively. Stretto is
the claims and noticing agent.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors in the diocese's Chapter 11 case. Pachulski
Stang Ziehl & Jones, LLP, and Berkeley Research Group, LLC, serve
as the committee's legal counsel and financial advisor,
respectively.
DIXON FLEET: Unsecured Creditors to Split $50K over 5 Years
-----------------------------------------------------------
Dixon Fleet Services, LLC, filed with the U.S. Bankruptcy Court for
the Eastern District of North Carolina a Disclosure Statement
describing Plan of Reorganization dated February 5, 2025.
The Debtor is a North Carolina limited liability company, with its
principal place of business located in Wake County, North Carolina.
The Debtor has been in business since December 2019.
The Debtor began its business operations as an onsite mechanic for
semi truck and equipment repair, performing repairs in the field or
at a client's location. In 2020, the Debtor began acting as a
holding company for large milling equipment and vehicles used in
the construction industry for Dixon Paving, Inc., through a lease
of its equipment to Dixon Paving, Inc.
The filing of the Debtor's case arose as a result of past due
payments to equipment lenders who were threatening repossessions of
their collateral.
The Debtor owns no real property. The majority of the Debtor's
assets consist of milling machines used in paving operations, and
heavy duty trucks used to haul equipment or driven by the operators
of the milling machines to the job sites. The Debtor's creditors
consist of secured creditors with liens on equipment or vehicles,
and unsecured creditors with claims arising from prior leases of
equipment or purchases of parts.
Class 19 consists of all Allowed, Undisputed, Noncontingent,
Unsecured Claims. As of the date of the filing of this Plan, total
General Unsecured Claims and known or projected Deficiency Claims
that fall within this Class, equal $1,182,215.47. This Class shall
be impaired.
The Debtor shall pay the holders of allowed undisputed, general
unsecured claims the total sum of $50,000.00, in quarterly payments
over five years. Quarterly payments shall commence on the earliest
of January 15, April 15, July 15, or October 15 that follows the
deadline for filing of all deficiency claims. All payments to
creditors within this class shall be distributed pro rata.
Class 14 consists of the holders of the membership interests in the
Debtor. The Debtor's sole Member is Billy W. Perry, Jr. This Class
will be unimpaired. The equity security holders shall retain their
interest in the Debtor.
The Debtor proposes to make payments under the Plan from income
earned from continued business operations, cash on hand, and sales
of equipment and other assets.
A full-text copy of the Disclosure Statement dated February 5, 2025
is available at https://urlcurt.com/u?l=h9WNIx from
PacerMonitor.com at no charge.
Counsel to the Debtor:
BIGGS LAW FIRM, PLLC
Laurie B. Biggs, Esq.
9208 Falls of Neuse Road, Suite 120
Raleigh, North Carolina 27615
Telephone: (919) 375-8040
About Dixon Fleet Services
Dixon Fleet Services, LLC, a limited liability company in Zebulon,
N.C., filed Chapter 11 petition (Bankr. E.D.N.C. Case No. 24-03534)
on October 8, 2024, with $1 million to $10 million in both assets
and liabilities. Billy W. Perry, Jr., member and manager, signed
the petition.
Judge David M. Warren oversees the case.
The Debtor is represented by Laurie B. Biggs, Esq., at Biggs Law
Firm, PLLC.
ECHOSTAR CORP: BlackRock Reports 14.8% Equity Stake as of Dec. 31
-----------------------------------------------------------------
BlackRock, Inc. disclosed in Schedule 13G/A Report filed with the
U.S. Securities and Exchange Commission that as of December 31,
2024, it beneficially owned 20,758,362 shares of EchoStar
Corporation's Class A Common Stock, representing 14.8% of the
shares outstanding.
BlackRock may be reached at:
Spencer Fleming
BlackRock, Inc.
50 Hudson Yards
New York, NY 10001
Tel: (212) 810-5800
A full-text copy of BlackRock's SEC Report is available at:
https://tinyurl.com/2hsd5pe2
About Echostar
Headquartered in Englewood, Colorado, EchoStar Corporation is a
holding company that was organized in October 2007 as a corporation
under the laws of the State of Nevada. Its subsidiaries operate
four primary business segments: (1) Pay-TV; (2) Retail Wireless;
(3) 5G Network Deployment; and (4) Broadband and Satellite
Services.
Denver, Colorado-based KPMG LLP, the Company's auditor since 2002,
issued a "going concern" qualificatin in its report dated Feb. 29,
2024, citing that the Company has debt maturing in 2024 and expects
to use a substantial amount of cash in the next 12 months. This
raises substantial doubt about its ability to continue as a going
concern.
As of September 30, 2024, EchoStar had $57.5 billion in total
assets, $38 billion in total liabilities, and $19.5 billion in
total stockholders' equity.
ECO ROOF: Plan Exclusivity Period Extended to April 21
------------------------------------------------------
Judge Joseph G. Rosania, Jr. of the U.S. Bankruptcy Court for the
District of Colorado extended ECO Roof and Solar Inc.'s exclusive
periods to file a plan of reorganization and obtain acceptance
thereof to April 21 and June 20, 2025, respectively.
As shared by Troubled Company Reporter, several factors favor
granting the requested extension. First, the Debtor's case is large
and complex. As reflected in the Debtor's schedules, the Debtor has
six secured creditors, with La Plata Capital holding the
overwhelming majority of the secured debt and 149 unsecured
creditors. The Debtor is also party to a number of lawsuits in
various jurisdictions across five states and has a large number of
assets, located in various states.
Second, good faith progress has been made towards reorganization
and/or liquidation and the Debtor has made progress in negotiating
an asset purchase agreement which would, if executed and approved
by the Bankruptcy Court, result in the Debtor ultimately pursuing a
liquidating plan instead of a traditional plan of reorganization.
Third, the Debtor is generally paying its operating expenses as
they come due and timely filing its monthly operating reports.
Fourth, this is the first extension request. Fifth, the Debtor is
not seeking an extension to pressure creditors.
ECO Roof and Solar Inc. is represented by:
Aaron J. Conrardy, Esq.
David V. Wadsworth, Esq.
Lindsay S. Riley, Esq.
Wadsworth Garber Warner Conrardy, P.C.
2580 W. Main St., Ste. 200
Littleton, CO 80120
Telephone: (303) 296-1999
Email: dwadsworth@wgwc-law.com
aconrardy@wgwc-law.com
lriley@wgwc-law.com
About ECO Roof and Solar
Eco Roof and Solar Inc. specializes in renewable energy solutions,
particularly focused on solar energy systems and sustainable
roofing options. The Company aims to provide environmentally
friendly alternatives for residential and commercial properties,
emphasizing energy efficiency and reduced carbon footprints.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 24-15628), listing
between $1 million and $10 million in estimated assets and between
$10 million and $50 million in estimated liabilities. The petition
was signed by Dylan Lucas as president.
The Hon. Joseph G. Rosania Jr. presides over the case.
The Debtor tapped David V. Wadsworth, Esq., at Wadsworth Garber
Warner Conrardy, P.C. as bankruptcy counsel and Hilary Morgan,
Esq., at Sherman & Howard LLC as special counsel.
On November 5, 2024, the Office of the United States Trustee
appointed an official committee of unsecured creditors in this
Chapter 11 case. The committee tapped Steptoe & Johnson PLLC as
counsel.
EDMOUNDSON STEEL: Gets OK to Use Cash Collateral
------------------------------------------------
Edmoundson Steel Erection, Inc. got the green light from the U.S.
Bankruptcy Court for the Western District of Arkansas to use cash
collateral.
The order signed by Judge Bianca Rucker authorized the company to
use cash collateral, subject to the terms of its security agreement
with the U.S. Small Business Administration.
The SBA is entitled to a validly perfected first-priority lien on
and security interests in the company's post-petition collateral,
subject to existing valid, perfected, and superior liens held by
other creditors, if any.
As additional protection, the SBA will receive payment in the
amount of $2,500 or 2% of gross receipts for the month prior to the
month of payment, whichever is greater.
The company's authority to use cash collateral will remain in force
and effect until the confirmation of a plan of reorganization or
liquidation, or until its Chapter 11 case is dismissed or converted
to one under Chapter 7.
About Edmoundson Steel Erection
Edmoundson Steel Erection, Inc., is a construction company based
out of Fort Smith, Ariz.
Edmoundson Steel Erection sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ark. Case No.
24-71778) on Oct. 25, 2024, with $100,000 to $500,000 in assets and
$1 million to $10 million in liabilities. John Balley, company
owner, signed the petition.
Judge Bianca M. Rucker handles the case.
The Debtor is represented by:
Stanley V Bond
Bond Law Office
Tel: 479-444-0255
Email: attybond@me.com
EMERGENCY HOSPITAL: Court Extends Cash Collateral Access to Feb. 28
-------------------------------------------------------------------
Emergency Hospital Systems, LLC received eighth interim approval
from the U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division to continue to use the cash collateral of its
pre-bankruptcy lenders.
The eight interim order authorized the company to use cash
collateral for the period from Feb. 4 to 28 in accordance with its
budget.
The budget shows total projected expenses of $2,681,247.76 for the
interim period.
Pre-bankruptcy lenders, including RDFCB Acquisition, LLC, were
granted replacement liens on the company's property, with the same
validity and priority as their pre-bankruptcy liens.
As additional protection, the court approved the payment of
$11,956.79 to RDFCB on Feb. 12, 19 and 26, and ordered Emergency
Hospital Systems to maintain insurance on its property, including
the pre-bankruptcy collateral of RDFCB.
About Emergency Hospital Systems
Emergency Hospital Systems LLC, doing business as Cleveland
Emergency Hospital, is a system of regional hospitals serving the
communities of The Woodlands, Porter, and Deerbrook, Cleveland.
These facilities support each other with respect to the services
they provide and are united under a common objective to provide
quality healthcare professionally and compassionately.
Emergency Hospital Systems sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 24-34683) on
October 3, 2024, with $10 million to $50 million in both assets and
liabilities. Rafael Delaflor, operating officer, signed the
petition.
Judge Eduardo V. Rodriguez oversees the case.
The Debtor is represented by Megan Rapp, Esq., at Kean Miller,
LLP.
RDFCB, as lender, is represented by:
Kell Mercer, Esq.
Kell C. Mercer, P.C.
901 S. Mopac Expy, Suite 300, Bldg. 1
Austin, Texas 78746
Telephone: 512-767-3214
EMERSON4411 LP: Seeks Subchapter V Bankruptcy in California
-----------------------------------------------------------
On February 3, 2025, Emerson4411 LP filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Central District of California.
According to court filing, the Debtor reports between $100,000
and $500,000 in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Emerson4411 LP
Emerson4411 LP is a Riverside, California-based real estate
partnership.
Emerson4411 LP sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10625) on February
3, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $100,000 and $500,000 each.
Honorable Bankruptcy Judge Mark D. Houle handles the case.
The Debtor is represented by:
Bruce A Wilson, Esq.
BRUCE A. WILSON, APLC
2031 Fort Stockton Drive
San Diego, CA 92103
Tel: (619) 497-0627
Fax: (619) 497-0628
E-mail: Brucewils@aol.com
ENVERIC BIOSCIENCES: Intracoastal, 2 Others Hold 4.99% Stake
------------------------------------------------------------
Intracoastal Capital LLC, Mitchell P. Kopin, and Daniel B. Asher
disclosed in Schedule 13G/A Report filed with the U.S. Securities
and Exchange Commission that they beneficially owned shares of
Enveric Biosciences, Inc.'s common stock.
As of the close of business on February 5, 2025, each of the
Reporting Persons may have been deemed to have beneficial ownership
of 103,951 shares of Common Stock issuable upon exercise of
Intracoastal Warrant 2, and all such shares of Common Stock
represented beneficial ownership of approximately 4.99% of the
Common Stock, based on:
(1) 692,580 shares of Common Stock outstanding immediately
prior to the execution of the SPA, as reported to the Reporting
Persons by the Issuer, plus
(2) 1,229,330 shares of Common Stock in the aggregate issued
at the closing of transaction contemplated by the SPA,
(3) 57,334 issued to Intracoastal upon exercise of
Intracoastal Warrant 1 and
(4) 103,951 shares of Common Stock issuable upon exercise of
Intracoastal Warrant 2.
The foregoing excludes:
(I) 29,383 shares of Common Stock issuable upon exercise of
Intracoastal Warrant 2 because Intracoastal Warrant 2 contains a
blocker provision under which the holder thereof does not have the
right to exercise Intracoastal Warrant 2 to the extent (but only to
the extent) that such exercise would result in beneficial ownership
by the holder thereof, together with the holder's affiliates, and
any other persons acting as a group together with the holder or any
of the holder's affiliates, of more than 4.99% of the Common
Stock,
(II) 133,334 shares of Common Stock issuable upon exercise of
Intracoastal Warrant 3 because Intracoastal Warrant 3 contains a
blocker provision under which the holder thereof does not have the
right to exercise Intracoastal Warrant 3 to the extent (but only to
the extent) that such exercise would result in beneficial ownership
by the holder thereof, together with the holder's affiliates, and
any other persons acting as a group together with the holder or any
of the holder's affiliates, of more than 4.99% of the Common Stock
and
(III) 19,333 shares of Common Stock issuable upon exercise of
Intracoastal Warrant 4 because Intracoastal Warrant 4 contains a
blocker provision under which the holder thereof does not have the
right to exercise Intracoastal Warrant 4 to the extent (but only to
the extent) that such exercise would result in beneficial ownership
by the holder thereof, together with the holder's affiliates, and
any other persons acting as a group together with the holder or any
of the holder's affiliates, of more than 4.99% of the Common Stock.
Without such blocker provisions, each of the Reporting Persons may
have been deemed to have beneficial ownership of 286,001 shares of
Common Stock.
Intracoastal Capital LLC may be reached at:
Mitchell P. Kopin, Manager
245 Palm Trail
Delray Beach Fla. 33483
Tel: 847-562-9030
A full-text copy of Intracoastal Capital's SEC Report is available
at:
https://tinyurl.com/ynuerrj6
About Enveric Biosciences
Enveric Biosciences (NASDAQ: ENVB) -- http://www.enveric.com/-- is
a biotechnology company dedicated to the development of novel
neuroplastogenic small-molecule therapeutics for the treatment of
depression, anxiety, and addiction disorders. Leveraging its
unique discovery and development platform, The Psybrary, the
Company has created a robust intellectual property portfolio of new
chemical entities for specific mental health indications. The
Company's lead program, the EVM201 Series, comprises next
generation synthetic prodrugs of the active metabolite, psilocin.
The Company is developing the first product from the EVM201 Series
- EB-002 - for the treatment of psychiatric disorders. The Company
is also advancing its second program, the EVM301 Series - EB 003 -
expected to offer a first-in-class, new approach to the treatment
of difficult-to-address mental health disorders, mediated by the
promotion of neuroplasticity without also inducing hallucinations
in the patient.
East Hanover, New Jersey-based Marcum LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated March 25, 2024, citing that the Company has incurred
significant losses and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
As of September 30, 2024, Enveric Biosciences had $4,790,316 in
total assets, $839,166 in total liabilities, and $3,951,150 in
total stockholders' equity.
EPR PROPERTIES: Fitch Affirms 'BB' Rating on Preferred Debt
-----------------------------------------------------------
Fitch Ratings has affirmed EPR Properties' Long-Term Issuer Default
Rating (IDR) at 'BBB-'. Additionally, Fitch has affirmed the
company's outstanding unsecured debt at 'BBB-' and preferred stock
at 'BB'. The Rating Outlook is Stable.
EPR's 'BBB-' ratings and Stable Outlook reflect Fitch's expectation
that REIT leverage will remain within the 4.5x-5.5x range due to
prudent financial management and the company's resilient
experiential portfolio. Fitch expects EPR to sustain metrics
appropriate for the rating, while diversifying tenant and industry
concentration through acquisitions and developments.
Key Rating Drivers
Commitment to Conservative Balance Sheet: Fitch believes EPR's
mid-5.0x range leverage target is appropriate for its 'BBB-'
rating. While the company's leverage was elevated during the
pandemic, TTM REIT leverage declined to 4.9x as of Dec. 31, 2023.
Though leverage ticked up slightly in early 2024, partially due to
less collections of out-of-period deferred rent, EBITDA has
improved throughout the year. EPR expects better theatre
performance in 2025 compared to either 2024 or 2023.
Fitch assumes EPR will maintain a conservative acquisition funding
mix and modest dividend pay-out policy during the forecast period,
while keeping leverage in the current range. EPR has a
well-laddered debt maturity schedule, with a weighted average
maturity of 3.70 years. As of Sept. 30, 2024, the company's only
variable rate debt outstanding was a revolving credit facility
(RCF).
Uncertainty on Film Industry Trajectory: Fitch does not expect
movie theater attendance to return to pre-pandemic levels due to
increased adoption of in-home, on-demand offerings. However, Fitch
believes theaters will remain an important part of movie release
schedules, particularly for large film releases, as evidenced by
2023 performance. Studios have reaffirmed their belief in
theatrical windowing, recognizing its potential for franchise
branding, future revenue opportunities and film longevity.
Fitch believes film studios will maintain theatrical exhibition
releases for major films to offset the high production and
marketing costs. Talent also relies to some extent on box office
metrics for current and future income generation. Although coverage
weakened in 2024 due to the writers and actors strikes in 2023, the
company expects stronger coverage and operating results in 2025 and
2026.
Headroom to Withstand Cinema Turmoil: Despite industry uncertainty,
Fitch believes EPR has capably managed its exposure. As Regal's
largest landlord, EPR negotiated a favorable master lease as the
cinema operator emerged from bankruptcy. Additionally, EPR's
proactive lease modification with AMC during the pandemic, along
with its leverage headroom, positions the company well for future
challenges despite the larger industry outlook.
Resilience of Experiential Portfolio: As of Sept. 30, 2024, 57% of
EPR's Annual Adjusted EBITDAre came from non-theater experiential
real estate. Fitch believes EPR has meaningful headroom to
withstand potential contraction in rent coverage, especially in its
non-theater portfolio, with 2.6x coverage as of 2Q24. Theatre
coverage, which was weaker at 1.5x as of 2Q24 partially due to the
strikes, is expected to improve in 2025. EPR is likely to benefit
from downshifts in consumer spending in recessionary environments
given its value-oriented portfolio.
Reducing Industry/Tenant Concentration: Fitch expects EPR's theater
exposure and tenant concentration will decline as it increases
investments in non-theater experiential real estate, a trend
already underway. Although the concentrated portfolio is a credit
negative, EPR's high-quality theater locations and productivity
mitigate disintermediation challenges in the movie exhibitor
industry. Any theater-closure risk is likely to be more pronounced
among lower-tier assets, potentially boosting market share for
higher-quality assets.
Long-Term Leases, Minimal Expirations: Fitch views EPR's limited
near-term lease expirations as a credit positive, and the company
benefits from long-term leases. Less than 1% of leases will expire
through 2026 and ~15% through 2030. Historically, most tenants have
chosen to exercise their renewal options, which has mitigated
re-leasing risk and provided predictability to portfolio-level cash
flow. However, the dearth of rental expirations and the propensity
to invest in property capital improvements upon expiration limits
the sample size for evaluating renewal and new lease rental-rate
changes.
Derivation Summary
EPR's historical credit metrics, long-term leases and low near-term
debt maturities compare well to peers. EPR's high tenant and
industry concentrations are credit concerns relative to peers.
EPR's closest peers in the net-lease space with higher individual
sector concentrations include gas station-focused Getty Realty
Corp. (BBB-/Stable) and restaurant-focused Four Corners Property
Trust, Inc. (BBB/Stable). In addition, the mortgage financeability
and depth of the asset-transaction market of these asset classes
are less robust than that of other real estate sectors.
As an experiential REIT, EPR is comparable to Gaming and Leisure
Properties, Inc. (GLPI; BBB-/Stable), and VICI Properties Inc.
(VICI; BBB-/Stable). However, GLPI and VICI are meaningfully
concentrated in gaming properties, unlike EPR, although VICI has
some exposure to non-gaming experiential as well. Gaming shares
elements with other experiential properties (e.g., based on
discretionary leisure spend), but gaming properties tend to be more
idiosyncratic, large, and strategically important to their
operators compared to individual non-gaming experiential locations,
which offsets individual asset and individual operator
concentration risk.
The two-notch differential between EPR's IDR and preferred-stock
rating is consistent with Fitch's "Corporates Hybrids Treatment and
Notching Criteria". The preferred securities are deeply
subordinated and have loss-absorption elements that would likely
result in poor recoveries in the event of a corporate default.
Fitch applies 50% equity credit to the company's perpetual
preferred securities due to the cumulative nature of coupon
deferral with settlement through cash rather than equity. Fitch
includes preferred stock when calculating certain metrics.
Key Assumptions
- 2024 revenues are below 2023 revenues primarily due to less
deferred rent collections for cash basis operators; revenues would
be up yoy excluding this;
- Same-store revenues after 2024 grow in low-single digit;
- EPR makes external investments of $200 million-300 million
annually;
- EPR completes divestitures of ~$100 million for 2024 with
relatively minimal divestitures thereafter.
- AFFO payout ratio is maintained around 70%;
- REIT leverage is maintained around 5.0x over the intermediate
period;
- REIT FCC is maintained around 3.5x over the intermediate period.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- REIT leverage (net debt excluding preferred to recurring
operating EBITDA) sustained above 5.5x;
- Liquidity coverage sustaining below 1.25x, coupled with a
strained unsecured debt-financing environment;
- Adverse tenant lease-rate negotiations and a deterioration in
operating fundamentals or asset quality, such as declining
coverage, sustained weakness or volatility in same-store net
operating income (SSNOI) results and/or corporate earnings growth.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- REIT leverage (net debt excluding preferred to recurring
operating EBITDA) sustained below 4.5x;
- Reduction in tenant concentration, with the company's top 10
tenants representing no more than 50% of rental revenues and no one
tenant representing more than 20% of rental revenue;
- Increased mortgage lending activity in the experiential
portfolio, demonstrating contingent liquidity for the asset
classes;
- Fitch's expectation of unencumbered assets coverage of net
unsecured debt sustaining above 2.0x.
Liquidity and Debt Structure
As of Sept. 30, 2024, EPR's sources of liquidity are sufficient to
cover its uses through 2026. EPR's available liquidity comprised
roughly $35 million in cash and cash equivalents and $831 million
of availability under the company's $1 billion RCF.
EPR has a well-laddered maturity schedule with $300 million-$630
million of unsecured debt maturing annually from 2025-2031. A key
component of liquidity is the company's RCF, which matures on Oct.
2028 and has two six-month extension options. The company has a
moderate level of committed development spend with very low
maintenance capital expenditures which Fitch believes it has ample
liquidity to manage.
Less than 1% of EPR's total debt was secured as of Sept. 30, 2024.
Based on a through-the-cycle cap rate of 10% based on the
less-financeable asset classes owned by EPR, the company has
unencumbered asset coverage of net unsecured debt (UA/UD) of around
2.1x. UA/UD at or above 2.0x is considered appropriate for
investment grade ratings.
Alternative uses of EPR's assets are generally more limited than
traditional property types and can require significant capital
investment to suit new tenants, which impacts contingent liquidity.
In addition, the mortgage financeability and depth of the asset
transaction market of these asset classes are less robust than
other real estate sectors.
Issuer Profile
EPR Properties is a specialty REIT focused on experiential real
estate with leases generally structured on a triple-net basis. As
of Sept. 30, 2024, the company's portfolio consisted of 352
properties in 44 states, Ontario, and Quebec.
Summary of Financial Adjustments
The company has an immaterial (
ESSEX & ASSOCIATES: Owners' Business Network Enters Receivership
----------------------------------------------------------------
Maya Collins of hoodline reports that a Dayton couple is once again
facing legal action as the Montgomery County Court of Common Pleas
places Wayne T. Essex, his wife Susan Essex, and their affiliated
businesses into receivership.
The Ohio Department of Commerce Division of Securities reports that
this measure aims to recover assets for investors allegedly harmed
by fraud and financial mismanagement. The court's decision follows
accusations that the Essexes sold unregistered, non-exempt
securities and misused investor funds for personal expenses instead
of real estate ventures as promised. The Division of Securities
also highlighted that the couple had faced similar allegations over
a decade ago, leading to a permanent injunction in 2012 -- one they
now appear to have violated.
According to hoodline, the Division's complaint names several
businesses linked to the Essexes, including Essex & Associates
Inc., Salty Seas Siesta LLC, Opportunity Zone Investment Fund Inc.,
Fin Tech Group Inc., Trinity Accounting Services Inc., and Blue
Sail Investments Inc. These entities are accused of selling over
$4.2 million in unauthorized securities to at least 16 investors.
Investors affected by Essex & Associates are advised to contact the
appointed receiver, Mark Dottore, for questions regarding ongoing
services. He can be reached at 216-771-0727 or via email at
info@dottoreco.com. Those seeking assistance with their investments
can also contact the Division of Securities at 614-644-7381.
About Essex & Associates
Essex & Associates is an accounting firm that provides
comprehensive solutions to customers.
ESSEX TECHNOLOGY: A&G Handles Bankruptcy Sale of 92 Store Leases
----------------------------------------------------------------
A&G Real Estate Partners, a national real estate advisory firm
specializing in lease optimization and real estate sales, announced
on Feb. 12 its plans to market and sell 92 retail leases and one
distribution center, formerly occupied by Bargain Hunt. The
discount retailer, which operates across 10 states, filed for
voluntary Chapter 11 bankruptcy on February 3, 2025, as part of a
broader effort to facilitate the sale of its assets and business
operations. The bid deadline is February 19, 2025.
"This portfolio offers a compelling opportunity for businesses
seeking a foothold across the South," says Mike Matlat and Doug
Greenspan, Senior Managing Directors at A&G. "Given the speed of
the bankruptcy, interested parties will need to act quickly. With
competitive rents in established locations, these properties
provide excellent value for companies looking to grow their real
estate footprint. We anticipate interest from a range of tenants
seeking efficient and well-located spaces and our team is committed
to facilitating a smooth sales process for all parties involved."
Founded in 2004, Bargain Hunt operates stores in Tennessee, Ohio,
Indiana, Kentucky, North Carolina, South Carolina, Georgia,
Alabama, Mississippi and Arkansas. The available leases cover a
range of property types including freestanding stores, power
centers, strip malls and urban retail corridors, averaging
approximately 31,000 square feet per location.
The bid deadline is February 19, 2025, pending approval by the U.S.
Bankruptcy Court for the Middle District of Tennessee.
Bargain Hunt stores will continue operating through the end of
February 2025 as the company winds down operations. During this
time, shoppers can take advantage of significant discounts and
special deals while inventory lasts.
Store closure lease locations include:
Alabama (11)
Arkansas (3)
Georgia (14)
Indiana (1)
Kentucky (15)
Mississippi (4)
North Carolina (4)
Ohio (5)
South Carolina (5)
Tennessee (31)
A&G has a proven track record in successfully managing lease sales
for major retailers, including Party City and Big Lots, maximizing
value for both landlords and tenants.
For additional details, including bid procedures as well as
remaining lease terms for individual locations, please contact:
-- Doug Greenspan, Senior Managing Director: (310) 770-7832,
doug@agrep.com -- Mike Matlat, Senior Managing Director: (631)
465-9508, mike@agrep.com
About A&G Real Estate Partners:
Established in 2012 by founders Emilio Amendola and Andrew Graiser,
A&G is a team of relationship builders, strategic negotiators, and
brand protectors dedicated to achieving maximum value for all
clients. We are proud to manage the entire commercial real estate
spectrum, including property assets undergoing acquisition,
auction, retail, office, and industrial transactions. Our goal is
to exceed client expectations by maximizing their value, minimizing
their loss, and protecting their brand heritage. For more
information, visit www.agrep.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.
FAMILY SOLUTIONS: Plan Exclusivity Period Extended to March 4
-------------------------------------------------------------
Judge Pamela W. McAfee of the U.S. Bankruptcy Court for the Eastern
District of North Carolina extended Family Solutions of Ohio,
Inc.'s exclusive periods to file a plan of reorganization and
obtain acceptance thereof to March 4 and May 3, 2025,
respectively.
As shared by Troubled Company Reporter, the Debtor requests that
the period in which it has the exclusive right to file a Plan of
Reorganization under Section 1121(b) of the Bankruptcy Code and the
acceptance period under Section 1121(c)(3) of the Bankruptcy Code
be extended for a period of approximately sixty days.
The Debtor explains that an order allowing the extensions as
requested in this application will not prejudice any party and is
in the best interests of the Estate and all parties in interest.
Family Solutions of Ohio, Inc. is represented by:
Jason L. Hendren, Esq.
Rebecca F. Redwine, Esq.
Benjamin E.F.B. Waller, Esq.
Lydia C. Stoney, Esq.
Hendren Redwine & Malone, PLLC
4600 Marriott Drive, Suite 150
Raleigh, NC 27612
Tel: (919) 573-1422
Fax: (919) 420-0475
Email: jhendren@hendrenmalone.com
rredwine@hendrenmalone.com
bwaller@hendrenmalone.com
lstoney@hendrenmalone.com
About Family Solutions of Ohio
Family Solutions of Ohio, Inc. in Wake Forest, NC, sought relief
under Chapter 11 of the Bankruptcy Code filed its voluntary
petition for Chapter 11 protection (Bankr. E.D.N.C. Case No.
24-03043) on Sept. 5, 2024, listing as much as $1 million to $10
million in both assets and liabilities. John Hopkins Jr. as vice
president, signed the petition.
Judge Pamela W Mcafee oversees the case.
HENDREN, REDWINE & MALONE, PLLC, serves as the Debtor's legal
counsel.
FIREPAK INC: Unsecureds Will Get 10% of Claims in Plan
------------------------------------------------------
Firepak, Inc., filed with the U.S. Bankruptcy Court for the
Southern District of Florida a Plan of Reorganization dated
February 5, 2025.
The Debtor specializes in the design and layout of fire sprinkler
systems, modifications to existing fire sprinkler systems, new
installations, tenant build outs, retrofit of existing buildings,
and inspections and repairs of all types of fire sprinkler system.
The Debtor's main office is located at 8573 NW 72 Street Miami, FL
33166. The Debtor's business suffered as a result of the COVID-19
pandemic due to reduced revenue from canceled and delayed
construction projects and the loss of its projects pipeline during
the initial years of the pandemic. The debtor has cut expenses, has
redoubled its marketing efforts since the loss of its pipeline, and
is in active negotiations with clients regarding new construction
contracts.
Creditors had through January 16, 2025, to file claims; however,
the Debtor scheduled claims which have not filed proofs of claim,
most of which the Debtor believes are non objectionable. The Debtor
estimates that the total amount of allowed general unsecured claims
is $1,838,254.74. By this Plan, the Debtor will be restructuring
these obligations, such that the Debtor can remain viable as a
going concern. In summary, however, if the Debtor is unable to
reorganize its debt owed to the Internal Revenue Service, the
debtor cannot survive.
Creditors will receive payment from the Debtor from the cash flow
of the Debtor's operations for a period of five years. The chief
purpose of these proceedings, and this Plan, is to reorganize debt
due to the Internal Revenue Service for delinquent payroll taxes.
Class 5 consists of General Unsecured Creditors. Class 5 consists
of all allowed general unsecured claims. The Class 5 General
Unsecured Creditors shall share pro rata in total distribution in
the amount of 10% of their allowed claims.
Unsecured creditors will be receiving a distribution of
approximately 10% or more of their allowed claim(s), which is an
amount in excess of what claimants would receive in a hypothetical
Chapter 7 proceeding, in which case such claimants would receive
0.00%. Class 5 General Unsecured Creditors Claim will be paid their
dividend after the priority claim of the Internal Revenue Service.
This Class is impaired.
Class 6 consists of Equity Security Holders. Equity Security
Holders shall retain their prepetition interests. All insider
claims will be subordinated and not paid until all senior classes
are paid in full.
The means necessary for the implementation of this Plan include the
Debtor's cash flow from operations for a period of five years. The
Debtor's financial projections show that the Debtor will have
sufficient cash over the life of the Plan to make the required Plan
payments and operate its business.
A full-text copy of the Plan of Reorganization dated February 5,
2025 is available at https://urlcurt.com/u?l=kprhtJ from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Jessica A. Less, Esq.
Lydcker LLP
1221 Brickell Avenue, 19th Floor
Miami, FL 33131
Telephone: (305) 416-3180
Facsimile: (3050 416-3190
Email: cdz@lydecker.com
About Firepak Inc.
Firepak Inc. specializes in the design and layout of fire sprinkler
systems, modifications to existing fire sprinkler systems, new
installations, tenant build outs, retrofit of existing buildings,
and inspections and repairs of all types of fire sprinkler
systems.
Firepak Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Fla. Case No. 24-21725) on November 7, 2024. In
the petition filed by Tatiana Marina, chief financial officer, the
Debtor disclosed total assets of $1,454,421 and total liabilities
of $2,424,737.
Bankruptcy Judge Robert A. Mark handles the case.
Carlos L. de Zayas, Esq., at Lydcker LLP serves as the Debtor's
counsel.
FIRST CHICAGO: A.M. Best Affirms B(Fair) Fin. Strength Rating
-------------------------------------------------------------
AM Best has revised the outlooks to positive from stable for the
Long-Term Issuer Credit Ratings (Long-Term ICRs) and affirmed the
Financial Strength Rating (FSR) of B (Fair) and the Long-Term ICRs
of "bb" (Fair) of First Chicago Insurance Company (FCIC) and United
Security Insurance Company (USIC). The outlook of the FSR is
stable. Both companies are domiciled in Bedford Park, IL and are
collectively known as First Chicago Insurance Group (First
Chicago).
The Credit Ratings (ratings) reflect First Chicago's balance sheet
strength, which AM Best assesses as adequate, as well as its
adequate operating performance, limited business profile and
marginal enterprise risk management (ERM).
The revised outlook for the Long-Term ICR to positive from stable
reflects improving balance sheet strength metrics heavily
influenced by robust surplus growth in four of the past five years
(2019-2023) and continuing through 2024. This was primarily driven
by First Chicago's policy fee income and partially offset by its
corresponding growth in both net written premium and net loss
reserves. AM Best expects prospective risk-adjusted capitalization,
as measured by Best's Capital Adequacy Ratio (BCAR), to benefit
from the recent implementation of an affiliated quota share
agreement that will improve the group's underwriting leverage
metrics and subsequently provide surplus relief. The positive
outlook further considers enhancements to the group's ERM framework
that includes measurable risk appetite and tolerance statements.
Recent updates have focused on key balance sheet components
including underwriting risk, catastrophe risk, credit risk and
investment risk. First Chicago's ERM process also includes stress
testing and mitigation strategies to ensure that proper capital is
maintained to support growth initiatives. While not yet fully
mature, management continues to actively enhance the ERM framework
to integrate a more formalized structure, specifically as it
relates to insurance risks.
First Chicago's operating performance has been generally favorable
over the past five years, primarily driven by fee income and net
investment income, and partially offset by volatility in
underwriting results. The group's favorable combined and operating
ratios benefit from refined underwriting practices, enhanced
pricing sophistication and recent diversification efforts. This
position is partially offset by commission costs that are
strategically used to support business initiatives that
subsequently elevate the expense position. The limited business
profile reflects First Chicago's product and geographic
concentration as its operations are largely focused on non-standard
automobile and, to a lesser extent, public transportation and
commercial auto liability business. Despite maintaining strong
producer partnerships that facilitate recent expansion efforts,
over 80% of the group's direct written premium is derived from
Illinois, Texas, Pennsylvania and Indiana.
FLORIDA FOOD: Guggenheim Marks $720,066 Loan at 15% Off
-------------------------------------------------------
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust has
marked its $720,066 loan extended to Florida Food Products LLC to
market at $344, 192 or 48% of the outstanding amount, according to
a disclosure contained in Guggenheim's Form N-CSR for the Fiscal
year ended November 30, 2024, filed with the Securities and
Exchange Commission.
Guggenheim is a participant in a Bank Loan to Florida Food Products
LLC. The loan accrues interest at a rate of 6.06% (1 Month Term
SOFR + 6.87%, Rate Floor: 7.87%) per annum. The loan matures on May
18, 2026.
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust was
organized as a Delaware statutory trust on June 30, 2010. The Trust
is registered as a diversified, closed-end management investment
company under the Investment Company Act of 1940, as amended.
Guggenheim is led by Brian E. Binder, President and Chief Executive
Officer; and James Howley, Chief Financial Officer, Chief
Accounting Officer and Treasurer. The Fund can be reach through:
Brian E. Binder
Guggenheim Taxable Municipal Bond &
Investment Grade Debt Trust
227 West Monroe Street, Chicago, IL 60606
Naperville, IL 60563-2787
Telephone: (312) 827-0100
- and -
Amy J. Lee
227 West Monroe Street, Chicago, IL 60606
Naperville, IL 60563-2787
Telephone: (312) 827-0100
Headquartered in Eustis, Fla., Florida Food Products, LLC is a
producer of vegetable and fruit based clean label ingredients. The
company was acquired by Ardian and MidOcean Partners in 2021.
FORTNA GROUP: $1.47BB Bank Debt Trades at 16% Discount
------------------------------------------------------
Participations in a syndicated loan under which Fortna Group Inc is
a borrower were trading in the secondary market around 84.1
cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The $1.47 billion Term loan facility is scheduled to mature on June
1, 2029. About $1.44 billion of the loan has been drawn and
outstanding.
Fortna Group, Inc., headquartered in Atlanta, Georgia, is the
parent company for Fortna and Deliver Buyer, also known as Material
Handling Systems. Fortna provides design services and
cost-effective solutions, powered by Fortna Warehouse Execution
Software (WES), that optimize distribution and fulfillment for
speed and accuracy. MHS designs, engineers, manufactures, and
installs turnkey material handling automation solutions for parcel,
distribution & fulfillment, eCommerce, manufacturing and other
industries.
FOUNDATION FITNESS: Claims to be Paid From Asset Sale Proceeds
--------------------------------------------------------------
Foundation Fitness, LLC and affiliates filed with the U.S.
Bankruptcy Court for the District of Colorado an Amended Disclosure
Statement for Amended Chapter 11 Plan of Liquidation dated February
4, 2025.
Since 2009, Debtors have been in the commercial and consumer
fitness industry to provide power measurement, indoor cycling,
outdoor power training, and client-based training services.
The Debtors were involved in marketing efforts as early as 2018 to,
initially, secure capital from outside investors, and the efforts
later transitioned into a marketing process for the sale of the
Debtors' businesses. Numerous top industry companies were targeted
by the Debtors, and the Debtors ultimately entered into two
separate periods of exclusivity with interested parties. From 2018
to 2024, over 150 companies were contacted directly, and ten firm
proposals were received by the Debtors.
On June 28, 2024, the Debtors filed the Motion of the Debtors for
Entry of Orders: (I)(A) Approving Bidding Procedures for the Sale
of Stalking Horse Assets (the "Bid Procedures Motion"), seeking
Court approval of bidding procedures to be used in connection with
the sale (the "Sale") of certain of the Debtors' assets to SPIA
Cycling Inc. (the "Stalking Horse Bidder") or such other highest
and best bidder(s) and scheduled a hearing for the Court to
consider the Sale (the "Sale Hearing").
On July 8, 2024, Powerbahn filed its objection to the Bid
Procedures Motion, and on July 22, 2024, the Committee filed its
objection to the Bid Procedures Motion. The Debtors and the
Stalking Horse Bidder each filed replies in support of the Bid
Procedures Motion on July 30, 2024, and the Committee filed a
memorandum in further support of its objection on July 31, 2024.
Following settlement discussions and negotiations on September 12,
2024, the Parties agreed to certain terms and conditions resolving
the Marshaling Motion, the Marshaling Objections, and the
Allocation Objection, which terms were read into the record at the
Sale Hearing and were memorialized into a Global Settlement
Agreement. Based on the Parties' agreement, and following the
submission of final revisions, on September 13, 2024, the Court
entered the Order (the "Sale Order"). Pursuant to the Sale Order,
the Sale of the Debtors' assets to the Stalking Horse Bidder closed
on September 18, 2024.
After payments to Union Bank to repay the "DIP Obligations" as that
term is defined in the Final DIP Financing Order and on account of
its now satisfied secured claim, and making other authorized
payments under the Sale Order, the remaining balance in the
Debtor's debtor-in-possession account as of December 31, 2024 is
$1,066,127.70.
In summary, under the Plan, the Debtors will be substantively
consolidated, effective as of the Petition Date, for all purposes
and all Assets, including but not limited to claims under Sections
544, 547, 548, 550, and 551 of the Bankruptcy Code, will be
available for distribution to holders of Allowed Claims. As a
result of the substantive consolidation, each Class of Claims
against, and interests in, the Debtors will be treated as against a
single consolidated Estates for Plan purposes without regard to the
corporate separateness of the Debtors.
The Plan provides that the Assets of the Debtors on the Effective
Date will vest with the Plan Administrator pursuant to and in
accordance with the Plan. In summary, the Assets, which include
without limitation the Excess Sale Proceeds and proceeds of
Retained Causes of Action, will be disbursed to the Holders of
Claims in the manner and to the extent more fully set forth under
the Plan. The Plan will be implemented by the appointment of a Plan
Administrator of the Reorganized Debtors, who shall be the sole
director of the Reorganized Debtors and the sole officer and
director after the Effective Date, with delegated authority to
distribute, and charged with the distribution of, the Assets to
Holders of Allowed Claims.
Class 2 consists of all Allowed General Unsecured Claims. Except to
the extent that a Holder of an Allowed General Unsecured Claim
agrees in writing to less favorable treatment, in full and final
satisfaction, settlement, release, and discharge of, and in
exchange for, each Allowed General Unsecured Claim, each Holder of
an Allowed General Unsecured Claim shall receive its Pro Rata share
of (i) the Excess Sale Proceeds; and (ii) the Retained Causes of
Action after payment of Allowed Administrative Claims.
Pursuant to the Global Settlement Order, Union Bank (i) does not
hold a security interest in the Excess Sale Proceeds; (ii) waived
any right to assert a security interest in the Excess Sale
Proceeds; and (iii) waived any right to a distribution from the
Debtors’ Estates on account of its Claims. Class 2 is Impaired.
Class 5 consists of all Existing Parent Interests. On the Effective
Date, and without the need for any further corporate or limited
liability company action or approval of any board of directors,
board of managers, members, shareholders or officers of any Debtor
or the Plan Administrator, as applicable, all Existing Parent
Interests shall be cancelled, released, and extinguished without
any distribution, and will be of no further force or effect, and
each Holder of Existing Parent Interests shall not receive or
retain any distribution, property, or other value on account of
Existing Parent Interests.
The Plan seeks substantive consolidation of the Debtors for all
purposes and actions associated with Confirmation and Consummation
of the Plan. The Confirmation Order shall constitute an Order of
the Bankruptcy Court approving substantive consolidation of the
Debtors. On the Confirmation Date, and effective as of the Petition
Date, all of the assets and liabilities of the Debtors shall be
deemed as a matter of law to be combined into a single,
consolidated pool, subject to all liens, claims, rights, interests
and encumbrances, if any, that may have existed with respect to
such assets, and further subject to all claims, rights, defenses
and arguments which could have been asserted by the creditors of
the Debtors.
Section 1129(a)(11) of the Code requires a finding that
confirmation is not likely to be followed by a liquidation or need
for further financial reorganization. Because substantially all of
the Debtors' assets were liquidated pursuant to the Sale Order and
the Plan provides for the distribution of the Assets, including the
Excess Sale Proceeds, it will not be followed by a liquidation or
need for further financial reorganization. Accordingly, the Debtors
assert the Plan is feasible.
A full-text copy of the Amended Disclosure Statement dated February
4, 2025 is available at https://urlcurt.com/u?l=AFO6ty from
PacerMonitor.com at no charge.
Counsel for the Debtors:
Matthew T. Faga, Esq.
Lacey S. Bryan, Esq.
Markus Williams Young & Hunsicker LLC
1775 Sherman Street, Suite 1950
Denver, Colorado 80203-4505
Telephone (303) 830-0800
Facsimile (303) 830-0809
Email: mfaga@markuswilliams.com
Email: lbryan@markuswilliams.com
About Foundation Fitness
Founded in 2009, Foundation Fitness, LLC creates custom commercial
gyms and fitness centers. It offers 2D and 3D design layout,
equipment sales, installation and support.
Foundation Fitness and its affiliate Stages Cycling, LLC filed
Chapter 11 petitions (Bankr. D. Neb. Lead Case No. 24-80513) on
June 22, 2024.
At the time of the filing, Foundation Fitness reported $10 million
to $50 million in both assets and liabilities while Stages Cycling
reported $1 million to $10 million in assets and $10 million to $50
million in liabilities.
Judge Thomas L. Saladino oversees the cases.
Patrick Patino, Esq., at Patino Law Office, LLC, is the Debtors'
bankruptcy counsel.
The U.S. Trustee for Region 13 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
FREE SPEECH: Sandy Hook Families Move to Enforce Judgment on Jones
------------------------------------------------------------------
Brian Steele of Law360 reports that the Sandy Hook families assert
that Infowars founder Alex Jones should be required to pay the
judgment in their defamation case, despite his "baseless" appeal to
the Connecticut Supreme Court, which they claim is an attempt to
delay payment further.
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
FREE SPEECH: WOW.AI Bids $3.5M, $WARS Tokens for Infowars.com
-------------------------------------------------------------
WOW.AI, an AI entertainment company, announced on Feb. 13, 2025, it
has submitted a competitive bid for Infowars.com. The offer
includes $3.5M in cash, plus additional consideration in the form
of 51% of the total maximum supply of the $WARS meme coin, to be
placed in a wallet controlled by the Trustee. $WARS tokens in the
estate's wallet will be automatically released linearly over a
period of five years.
"The demand we're witnessing for the voice provided by $WARS is
unprecedented," said Rick Latona, CEO of WOW.AI. "We're not just
talking about the future of Infowars--we're giving the people full
control over it. This is about free speech and decentralized
control of the assets. Our mission is clear. We're here to empower
the people and by unveiling our groundbreaking offer; we're letting
them decide what the future of Infowars should truly be."
Just last week, the company launched $WARS, a meme coin that will
allow token holders to decide what the future holds for the
website. Interested parties can buy $WARS, stake $WARS, vote with
$WARS at wars.ai -- Make your voice be heard!
Rick Latona is a Harvard Business School Alumnus and has been a
pioneer of the internet domain business for over 30 years. In
addition to being the CEO of WOW.AI LLC, Rick holds one of the
largest privately held domain name portfolios in the world. He also
owns GiantPanda.com, the leading domain parking company which
monetizes organic domain traffic.
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
GEN DIGITAL: Fitch Affirms 'BB+' LongTerm IDR, Outlook Negative
---------------------------------------------------------------
Fitch Ratings has affirmed Gen Digital Inc.'s (formerly
NortonLifeLock Inc.; NYSE: GEN) Long-Term Issuer Default Rating
(IDR) at 'BB+'. Fitch has also affirmed GEN's first lien senior
secured term loans and secured revolver at 'BBB-' with a Recovery
Rating of 'RR1' and its senior unsecured notes at 'BB+'/'RR4'. The
Rating Outlook is Negative.
Fitch has assigned a 'BBB-'/'RR1' rating to GEN's new $600 million
term loan and a 'BB+'/'RR4' rating to its new senior unsecured
notes. The term loan will be used for corporate purposes, including
potentially acquiring MoneyLion Inc. or repaying debt. The new
notes will refinance the senior unsecured notes due 2025.
The Negative Outlook reflects Fitch's expectation that EBITDA
leverage will remain above 3.5x through 2026 and then decrease in
2027. GEN is targeting net leverage below 3.0x by FYE 2027. GEN's
ratings reflect strong FCF and retention rates.
Key Rating Drivers
Higher Leverage, Deleveraging Potential: Fitch expects pro forma
leverage to increase to 3.9x following GEN's acquisition of
MoneyLion with leverage remaining above Fitch's 3.5x negative
sensitivity threshold in FYE 2025 and 2026, longer than prior
expectations. However, considering GEN's growth expectations, Fitch
expects the company to organically delever to below 3.5x by FYE
2027. GEN has committed to reducing net leverage to below 3.0x by
FYE 2027.
Any deviation from this plan, such as near-term acquisitions or
buybacks, keeping company's net leverage above 3.0x and
Fitch-adjusted EBITDA leverage above 3.5x, could result in a
one-notch downgrade of the IDR. In addition, GEN is expected to
generate strong pre-dividend FCF margins in the mid-20s range which
provides them further capacity to delever.
Increased Product Diversification: The MoneyLion acquisition
expands Gen Digital's product portfolio beyond consumer security
solutions to digital banking, consumer lending, and marketplace
products. It also brings over 18 million new customers. The
combined company will benefit from an installed base of over 500
million users. This may provide cross-sell and upsell opportunities
and enhance monetization for enterprise partners. Fitch expects
MoneyLion's high double-digit growth rates to contribute
incrementally to GEN's overall revenue growth.
Potentially Limited Cost Synergies: The acquisition marks a
strategic shift for GEN, traditionally focused on cyber threat
protection. With MoneyLion, GEN's customer base and product
offerings will diversify. However, integrating these distinct
product lines presents potential challenges. As the acquisition is
still in its early stages, GEN has not yet identified potential
synergy benefits. Fitch believes GEN may opt to operate the
businesses separately, while maintaining independent management and
go-to-market strategies, which may result in limited cost
synergies.
Competitive End Markets: Gen Digital's end markets are fragmented.
While the company's Norton, LifeLock, and Avast consumer security
brands are among the top brands in the segment, they face
competition from other prominent brands such as McAfee,
Bitdefender, and Microsoft Defender. In addition, MoneyLion faces
competition from both large banks and financial institutions, as
well as fintech companies offering consumer lending solutions, such
as PayPal and Block.
Credit cycles and Financing Risk: The acquisition increases Gen
Digital's exposure to consumer credit cycles, as interest rate and
economic fluctuations can impact loan demand and repayment,
increasing financing risk amid a challenging macroeconomic
environment. In addition, macro headwinds could affect enterprise
advertising budgets, impacting the combined company's marketplace
revenues. However, the diversity of Gen Digital's product lines
should help mitigate some of these cyclical risks.
Derivation Summary
Gen Digital's 'BB+' rating reflects its significant size, strong
brand recognition, operating profile and EBITDA margins in the low
to mid-50% range. With a strong consumer market focus, the company
aims to grow, expand internationally, and diversify its product
offerings. The Avast and MoneyLion acquisitions support these
objectives.
Gen Digital's rating is the same as Open Text Corporation. Open
Text's Stable Outlook reflects its announced asset divestiture,
which accelerates the company's deleveraging plan. Open Text's
leverage at FYE 2025 and 2026 is forecast to be in the 3.2x-3.5x
range.
Pro forma for the MoneyLion acquisition, Fitch expects Gen Digital
EBITDA leverage to reduce to below 3.5x by FYE 2027 with the
company having the cash capacity in terms of deploying FCF to debt
prepayments and delevering more quickly. Open Text's revenue is
higher than Gen Digital's; however, Open Text's EBITDA margins are
in the mid-30s versus the low to mid-50s for Gen Digital.
Gen Digital is rated below other technology peers, including
Constellation Software, Inc. (BBB+/Stable) and Cadence Design
Systems Inc. (A-/Stable). These companies are rated above Gen
Digital due to their stronger credit profiles. However, Gen Digital
has consistently had stronger EBITDA and FCF margins, which benefit
from its strong consumer market position.
Key Assumptions
- Revenue is projected to grow by double digits in fiscal 2026,
driven by the MoneyLion acquisition, followed by mid-single-digit
growth in subsequent years. This growth is attributed to low
double-digit increases from MoneyLion's consumer finance and
marketplace products, as well as Fitch's assumptions regarding
consumer demand for cybersecurity software, privacy, and identity
protection;
- EBITDA margins are expected to be in the low to mid-50% range,
influenced by the inclusion of MoneyLion, which operates with lower
EBITDA margins in the low teens, and Fitch's assumption of limited
synergistic benefits;
- FCF is directed toward debt repayment, dividend payments and
share repurchases.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- CFO-capex/debt below 10% on a sustained basis;
- Any additional near-term acquisitions or buyback transactions
that hinder the achievement of Gen Digital's stated goal of below
3x net leverage by FYE 2027 (or leading to Fitch EBITDA leverage
remaining above 3.5x);
- Evidence of negative organic revenue growth or erosion of EBITDA
and FCF margins.
Factors that Could, Individually or Collectively, Lead to Stable
Outlook
- Fitch expectation of leverage below 3.5x on a sustained basis.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- CFO-capex/debt above 17.5% on a sustained basis;
- Fitch's expectation of leverage below 2.5x on a sustained basis.
Liquidity and Debt Structure
As of December 2024, Gen Digital had over $2 billion in liquidity,
including $883 million of cash on the balance sheet and a fully
undrawn, secured $1.5 billion revolving credit facility due 2027.
Following the MoneyLion acquisition and the refinancing
transaction, Gen Digital will have approximately 70% of its debt as
floating-rate debt, and the remaining 30% is fixed-rate debt.
Gen Digital's term-loan A2 amortizes at 5% per year while term-loan
B amortizes at 1% per year. About $4.4 billion of debt is due 2027.
Given the company's strong FCF generation, Fitch expects the
company to refinance this debt. Fitch expects liquidity to remain
robust.
Issuer Profile
Gen Digital, Inc. is a global provider of consumer cybersafety
solutions, with more than 500 million users in over 150 countries.
The company offers consumers both premium and freemium software.
Gen Digital provides solutions for cybersecurity, privacy and
identity protection.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Gen Digital Inc. LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ New Rating RR4
senior secured LT BBB- New Rating RR1
senior unsecured LT BB+ Affirmed RR4 BB+
senior secured LT BBB- Affirmed RR1 BBB-
GEN DIGITAL: Moody's Gives 'B1' Rating on New Unsec. Notes Due 2023
-------------------------------------------------------------------
Moody's Ratings assigned Gen Digital Inc.'s new senior unsecured
notes due 2033 (New Notes) a rating of B1. Gen's other ratings,
including its Ba2 corporate family rating, and the stable outlook
are unchanged.
Gen plans to use the proceeds of the New Notes to repurchase all of
the outstanding 5% senior unsecured notes due 2025 (2025 Notes) and
for general corporate purposes.
RATINGS RATIONALE
Gen's Ba2 CFR reflects the company's moderate financial leverage,
with debt to EBITDA of 4.2x (twelve months ended December 31, 2024,
Moody's adjusted), and integration execution risks as a result of
the MoneyLion acquisition. Due to the increase in debt used to fund
the MoneyLion acquisition, which is expected to close in the first
half of fiscal year 2026 (fiscal year end March 2026), leverage
will rise modestly, with debt to EBITDA increasing to the mid 4x
level (twelve months ended December 31, 2024, proforma for
MoneyLion, Moody's adjusted). Moody's expect leverage to decline
toward the lower 4x level of debt to EBITDA (Moody's adjusted) over
the next 12 to 18 months, reflecting growth in revenues and
profitability and modest debt repayment.
Gen Digital benefits from the leading position of its Norton, Avast
and AVG branded products in the consumer security software market
and LifeLock in the consumer identity protection market. The
company will likely continue to maintain existing brand names from
recent acquisitions. Moody's expect Gen will grow at low to
mid-single digit rates over the next several years supported by
consumer concerns over digital security and ongoing shift of
consumers to a digital world. While customer counts declined in
periods post pandemic, customer counts appear to be stabilizing
with potential for modest growth over the medium term. Overall
Moody's expect moderate revenue growth driven by flat to modestly
improving customer count and continued growth in ARPU, which is, in
turn, driven by growth in pricing and bundled offerings.
Gen's Speculative Grade Liquidity (SGL) rating of SGL-2 reflects
good liquidity supported by $883 million of cash and an undrawn
$1.5 billion revolver as of December 31, 2024. Following repayment
of the 2025 Notes, the company will have no near term debt
maturities until 2027. In addition, Moody's expect the company
will generate over $800 million of annual free cash flow after
dividends (FCF) over the next 12 to 18 months.
The company's senior secured term loans and senior secured revolver
are each rated Ba1, one notch above the Ba2 CFR. The rating of the
senior secured debt reflects both the collateral, which renders
these debt instruments effectively senior to Gen's unsecured debt,
and the mix of secured debt to unsecured debt in the capital
structure. Given the large proportion of senior secured debt in the
debt capital structure, further increases in the mix of secured
debt in the debt capital structure, or reduction in the mix of
unsecured debt, could negatively impact the senior secured ratings.
Gen's unsecured notes are rated B1, two notches below the company's
Ba2 CFR and reflects the effective subordination of the unsecured
debt to the secured debt, which benefits from the collateral.
The stable outlook reflects Moody's expectation of low single
digits percent annual organic revenue growth, minimal disruption
from the integration of MoneyLion, and leverage declining from the
mid 4x level (twelve months ended December 31, 2024, proforma for
MoneyLion, Moody's adjusted) to the lower 4x level of debt to
EBITDA (Moody's adjusted) over the next 12 to 18 months. Revenue
growth should benefit from stable customer counts and increased
pricing and bundling.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The ratings could be upgraded if Gen Digital commits to, and
demonstrates, more conservative financial policies including
leverage maintained under 3.5x debt to EBITDA (Moody's adjusted).
The ratings could be downgraded if operating performance
deteriorates materially, cash costs or integration challenges are
greater than expected, or Moody's expect leverage to be sustained
above 4.5x debt to EBITDA (Moody's adjusted) or free cash flow
(FCF) to debt (Moody's adjusted) to remain below 10% for an
extended period.
Gen Digital Inc. is a leading provider of consumer security
software and services globally. Gen's portfolio of consumer brands
include Norton, Avast, LifeLock, Avira, AVG, ReputationDefender and
CCleaner. Gen's cyber safety portfolio provides protection across
multiple channels and geographies, including security and
performance management, identity protection, and online privacy.
The principal methodology used in this rating was Software
published in June 2022.
GRADE A HOME: Unsecureds to Get Share of Income for 36 Months
-------------------------------------------------------------
Grade A Home LLC filed with the U.S. Bankruptcy Court for the
Southern District of Texas a Plan of Reorganization under
Subchapter V dated February 3, 2025.
The Debtor owns two residential homes at 4319 Woodvalley Drive in
Houston, Texas and 4130 N Braeswood Drive in Houston, Texas. Debtor
has been remodeling 4319 Woodvalley. The home at 4130 N. Braeswood
has been rented 4319 Woodvalley and 4130 N Braeswood, (collectively
at times, the "Properties").
The Debtor plans to complete repairs to both homes and sell both
homes. Debtor will use the sales proceeds to pay the debts secured
by the homes. The Debtor values the home at 4319 Woodvalley in
Houston, Texas at approximately $1,000,000 and the home at 4130 N
Braeswood at approximately $600,000.
This Plan of Reorganization proposes to pay Debtor's creditors from
either the sale of one or both of the Properties or the cash flow
generated in the ordinary course of the Debtor's business after
confirmation.
Class 7 consists of unsecured non-priority claims. The Debtor will
pay the projected disposable income for thirty-six months following
the Effective Date to creditors in this class with allowed claims.
This Class is impaired.
Class 8 consists of equity interests. The equity security holders
will retain the interest in the Debtor.
The Debtor will retain the Properties of the bankruptcy estate. The
Debtor will make the payments as set forth in the Projections to
either the creditors or to the Subchapter V Trustee. At the end of
thirty-six months, the Debtor will either sell the Properties and
pay off the lenders in Classes 5 and 6 or refinance the Properties.
If the Debtor does not payoff the loans within the thirty-six
months, an event of default shall occur and the creditors make take
actions as allowed by state law and hereunder.
The Debtor anticipates completing renovations on 4319 Woodvalley.
The Debtor may attempt to sell the Property or may lease the
Property and use the lease payments to partially fund this plan.
The Debtor may attempt to sell the Property at 4130 N. Braeswood or
may continue to lease the Property and use the rental income to
fund this plan.
A full-text copy of the Plan of Reorganization dated February 3,
2025 is available at https://urlcurt.com/u?l=7gKH1e from
PacerMonitor.com at no charge.
The Debtor's Counsel:
Reese Baker, Esq.
BAKER & ASSOCIATES
950 Echo Ln Ste 300
Houston TX77024-2824
Email: courtdocs@bakerassociates.net
About Grade A Home
Grade A Home, LLC, a Houston-based company, filed a petition under
Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Tex.
Case No. 24-35197) on November 4, 2024, with $1 million to $10
million in assets and $500,000 to $1 million in liabilities. Sharif
Muhammad, authorized representative of the Debtor, signed the
petition.
Judge Eduardo V. Rodriguez presides over the case.
Reese Baker, of Baker & Associates, is the Debtor's legal counsel,
and Kenny Laguerre is the accountant.
GTT COMMUNICATIONS: $350MM Bank Debt Trades at 22% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which GTT Communications
Inc is a borrower were trading in the secondary market around 78.1
cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The $350 million Payment in kind Term loan facility is scheduled to
mature on June 30, 2028. The amount is fully drawn and
outstanding.
GTT Communications, Inc., formerly Global Telecom and Technology,
is a multinational telecommunications and internet service provider
company with headquarters in McLean, Virginia, and incorporated in
Delaware.
GULFSLOPE ENERGY: John Malanga Steps Down as CFO
------------------------------------------------
GulfSlope Energy, Inc., submitted a Form 8-K to the Securities and
Exchange Commission, notifying the resignation of John H. Malanga
from his position as the Company's chief financial officer. The
resignation was not due to any disagreements with the Company
regarding its operations, policies, or practices.
The Company expresses its gratitude to John Malanga for his
contributions and commitment during his time with the Company and
wishes him success in his future endeavors.
About Gulfslope
Headquartered in Houston, Texas, Gulfslope Energy, Inc. --
http://www.gulfslope.com-- is an independent crude oil and natural
gas exploration and production company whose interests are
concentrated in the United States Gulf of Mexico federal waters.
The Company is a technically driven company, and it uses its
licensed 2.2 million acres of advanced three-dimensional (3-D)
seismic data to identify, evaluate, and acquire assets with
attractive economic profiles.
The Company has incurred accumulated losses as of June 30, 2023 of
$69.8 million, has negative working capital of $14.7 million and
for the nine months ended June 30, 2023 generated losses of $0.94
million. Further losses are anticipated in developing its
business. As a result, the Company stated there exists substantial
doubt about its ability to continue as a going concern. As of June
30, 2023, the Company had approximately $2,200 of unrestricted cash
on hand.
HANESBRANDS INC: S&P Affirms 'B' ICR, Alters Outlook to Positive
----------------------------------------------------------------
S&P Global Ratings revised the outlook to positive from stable on
U.S.-based clothing manufacturer Hanesbrands Inc. S&P also affirmed
its 'B+' issuer credit rating on Hanesbrands.
S&P said, "At the same time, we assigned our 'BB' issue-level
rating to the company's proposed five-year $400 million term loan A
facility, seven-year $600 million term loan B facility and
five-year $750 million revolving credit facility.
"The recovery rating is '1', indicating our expectation for very
high (90%-100%; rounded estimate: 90%) recovery for lenders in the
event of a payment default.
"The positive outlook reflects our expectation that Hanesbrands
will continue to show operational improvement and meet its
performance plans to reignite innerwear growth and focus on
everyday basic replenishment in the coming year.
"Hanesbrands' continuing operations performance was flat between
fiscals 2023 and 2024, and we expect further modest improvement in
2025. The company's net sales from continuing operations declined
by 3.6% to $3.50 billion in 2024 compared with $3.6 billion of
revenue due to reduced intake of inventories by retailer and
unfavorable foreign currency translations. S&P Ratings-adjusted
EBITDA was nearly $500 million in fiscal 2024, from $555 million in
2023. However, the company completed the sale of its Champion
business and used proceeds to support $1 billion in debt repayment
in 2024. This has brought S&P Global Ratings-adjusted leverage to
the mid-5x area for 2024 from over 7x in 2023 amid restructuring
and other costs associated with the Champion sale.
"This 2024 leverage is slightly higher than we had anticipated last
year but still a material improvement from 2023. Part of this was
due to restructuring and other related charges. We expect further
de-leveraging in 2025 to below 5x as Hanesbrands continues to focus
on improving go-forward operations and reducing debt. We note the
latest 2024 results will not be directly comparable with fiscal
2023, which includes contributions from Champion. The company has
restated its reported financial statements based on continued
operations for fiscal 2023.
"We believe Hanesbrands will continue to focus on business
investment and debt reduction through fiscal 2025 and will be
monitoring how the company navigates a volatile macroeconomic
environment. We note Hanesbrands will likely generate stronger cash
from operations in 2025 than in 2024 and modestly expand S&P Global
Ratings-adjusted EBITDA margins to 15% in 2025 from 14% in 2024.
This stems from market share gains, cost-saving initiatives and
improvements in supply chain management. We give credit for about
$100 million in asset impairments in 2024, in line with our
expectations for those items last year. We view the current
refinancing as credit positive given the 2026 maturity on the term
loan A and revolver and expect the company will also address its
2026 notes this year.
"We are monitoring tariff risk and note limited China exposure,
with a supply chain that is balanced across the world, including
central America and southeast Asia. The company saw leverage
decline to 3.4x on its calculation basis in 2024, from 5.2x in
2023, and we believe it is focused on reducing net leverage by its
calculations to the 2x-3x range in the near term. It expects to
increase cash flow from operations to $350 million in 2025 from
$264 million in 2024. We are cautious about such a material
increase but believe it will use available free cash flow to pay
down debt. We do not anticipate plans to return capital to
shareholders until it is back in this 2x-3x leverage range. There
are no material changes expected in top-line performance in our
current forecast compared with previous expectations, and we are
expecting slightly better interest rates with the refinancing.
"The negative comparable rating analysis (CRA) remains in place.
This CRA modifier reflects the company's recent transformational
events. In recent years, it has simplified the business and
existing non-core or no-profit businesses like Champion. The
company has sought to expand e-commerce and inventory management.
Gross margin is expected to be stable in the low-40% area going
forward as cost savings and assortment management reduce cost of
goods sold. We note leverage is still above the aggressive (4x-5x
S&P Global Ratings-adjusted leverage) category for 2024 but expect
it to improve in 2025. We believe the bulk of restructuring and
other charges for headcount and severance is behind Hanesbrands for
now.
"The positive outlook reflects our expectation that Hanesbrands
improves and sustains leverage to below 5x in 2025 and onwards,
driven from improved profitability and continued commitment to debt
reduction."
S&P could lower ratings if Hanesbrands sustained leverage of 5x or
higher. This could occur if:
-- Innerwear sales declined further due to consumers trading down
globally, possibly because of lower demand as inflation reduced
consumers' purchasing power, or increased competition or brands
falling out of favor.
-- Performance deteriorated and put pressure on the company's
ability to comply with its net leverage financial covenant.
-- It adopted more aggressive financial policies, including
pursuing a debt-financed acquisition, share buybacks, or dividends
before restoring credit measures to its target.
S&P could also lower the rating if it unfavorably reassessed its
view of the company's business risk, potentially due to continued
declines in one of its major brands due to operational missteps or
changing consumer tastes.
S&P could raise the rating if Hanesbrands sustained leverage below
5x.
This could occur if:
-- 2025 sales growth exceeded our expectations, driven from
geographical and product line expansion, including from Australia,
Mexico, and the U.S.
-- Profitability continued to improve from manufacturing leverage,
assortment management, and cost-savings realization.
HANSEN KIDS: Files Chapter 11 Bankruptcy in Michigan
----------------------------------------------------
On February 11, 2025, Hansen Kids LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Western District of
Michigan.
According to court filing, the Debtor reports $1,149,510 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About Hansen Kids LLC
Hansen Kids LLC based in Charlevoix, Michigan, specializes in
eco-friendly baby products. Their flagship product is the Andy
Pandy Premium Bamboo Disposable Diaper, which is marketed as a
biodegradable and chemical-free alternative to traditional diapers.
In addition to diapers, Hansen Kids offers other baby care items,
including: training pants, bath & baby products, and toys. Hansen
Kids has also expanded its product line to include the Andy Pandy
Baltic Amber Teething Necklace, which is handcrafted in Lithuania
and marketed as a natural remedy for teething discomfort.
Hansen Kids LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Mich. Case No. 25-00345) on February
11, 2025. In its petition, the Debtor reports total assets of
$302,191 and total liabilities of $1,149,510
Honorable Bankruptcy Judge James W. Boyd handles the case.
The Debtor is represented by:
Jeffrey C Alandt, Esq.
LAW OFFICE OF JEFFREY C ALANDT
121 E Front Street Ste 302
Traverse City, MI 49684
Tel: (231) 941-7766
Email: jalandt@sbcglobal.net
HAYDALE CERAMIC: Haydale Graphene Shares Fell After Ch. 11 Filing
-----------------------------------------------------------------
Jamie Ashcroft of proactive reports that Haydale Graphene
Industries PLC shares fell after its U.S. subsidiary, Haydale
Ceramic Technologies LLC, entered Chapter 11 Subchapter V
bankruptcy proceedings.
The company stated it plans to sell HCT's assets through a
court-supervised auction under Section 363 of the U.S. Bankruptcy
Code. This move followed a strategic review that found the U.S.
business had failed to meet growth expectations.
Haydale also noted that several third parties have shown interest
in acquiring HCT's assets.
In London, the company's shares dropped about 5% to 0.11p each.
About Haydale Ceramic Technologies LLC
Haydale Ceramic Technologies LLC is a manufacturer of Silicon
Carbide (SiC) ceramic materials, boasting the largest installed
production capacity across the Americas, Europe, and the APAC
regions. Manufactured in Greer, South Carolina, the Company's
cutting tools are crafted using the highest quality SiC materials,
including particulates, fibers, and microfibers.
Haydale Ceramic Technologies LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No.: 25-20159) on
February 7, 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 James R. Sacca handles the case.
The Debtor is represented by:
William Rountree, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
2987 Clairmont Road Suite 350
Atlanta GA 30329
Tel: 404-584-1238
E-mail: wrountree@rlkglaw.com
HOBBS & ASSOCIATES: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
-------------------------------------------------------------------
Fitch Ratings has affirmed Hobbs & Associates, LLC's Long-Term
Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is Stable.
Fitch has also affirmed the revolver and $875 million Term Loan,
including the planned $50 million upsizing at 'BB-' with a Recovery
Rating of 'RR3'.
Hobbs' rating reflects its technical expertise and growing
footprint with territorial exclusivity to a wide product range that
differentiates its ability to spec and procure HVAC solutions. The
rating also considers the stable demand mix and management's focus
on growing its recurring revenue.
Rating concerns include Hobbs' active acquisition strategy leading
to execution and financial risks and slower deleveraging. Fitch
expects its EBITDA leverage to fall below 4.5x in 2026. Fitch
forecasts (CFO-capex)/Debt to improve, highlighting Hobbs'
deleveraging capacity. Other concerns include reliance on original
equipment manufacturer (OEM) relationships and financial sponsor
ownership.
Key Rating Drivers
Strong Deleveraging Capacity Mitigates Risks: Despite
higher-than-expected acquisition in 2024 that led to Fitch's
leverage forecast for Hobbs to be above a 'B+' rating threshold
throughout 2025, Fitch's rating considers these deviations in the
context of manageable integration risk and Fitch's expectation that
the acquisitions are strategic to the overall business profile.
Financial risk is mitigated by strong cash flow generation and
deleveraging capacity, demonstrated by ratios such as
(CFO-capex)/Debt, which Fitch believes, will improve to
approximately 7%-8%, attributed to limited working capital and
capex needs.
Future financial policy, capital deployment decisions including
potential M&A transactions, shareholder return and commitment to
deleveraging over the medium term could change its credit risk
profile.
Scalability in Fragmented Industry: Hobbs is well-positioned within
its geographic markets (30 states), providing a broad product line
with established commercial relationships with 400+ HVAC
manufacturers that serve over 5,000 contractors/engineers and
end-user customers across a range of end markets. Access to
multiple brands in conjunction with a large multi-regional sales
rep provides a competitive advantage which will further improve
with acquisitions. Fitch expects that acquisitions will help
enhance diversification and scale, including geographic expansion
and vendor relationship depth, benefiting the cash flow risk
profile.
Non-discretionary Demand Moderates Variability: Cyclicality
inherent in HVAC end-markets is mitigated by Hobbs' two-thirds of
sales related to repairs, parts and services through the lifecycle
of HVAC systems. Replacement and renovation (R&R) and aftermarket
servicing and parts demand tends to be more stable than original
equipment given its non-discretionary nature and relatively
predictable lifecycle. Fitch also believes management's strategic
focus on expanding its services/aftermarket presence helps lengthen
the company's end-user customer relationship and enhance its
long-term replacement opportunity set.
Capabilities, Secular Trends Support Growth: Fitch believes
commercial and operational momentum will continue in the medium
term, supported by secular tailwinds and differentiated
capabilities, including a strategic focus on increasing penetration
into national accounts supplemented by acquisitions. Fitch expects
secular demand will be supported by steady growth of the installed
base, demand related to aging infrastructure and energy efficiency
standards, as well as fast-growing potential for data center
construction. Fitch expects the company's focus on national
accounts presents solid opportunities for footprint expansion and
margin accretive operating leverage.
Diversified Customer, Vendor Base: Demand from public sector
customers facilitates revenue visibility due to relatively
long-term and consistent government/school/hospital spending. More
than 60% of Hobbs customers are public sector entities, including
education, government and healthcare customers. Other customers in
the lodging and commercial offices, which are relatively more
susceptible to general economies, account for less than 5% each.
Despite partnerships with over 400 OEMs, the top five OEM
relationships contribute around 44% of equipment purchases.
Reputational risk leading to weaker relationships with the major
OEMs may negatively impact Hobbs' business, but Fitch believes
management's track record helps mitigate this risk.
Derivation Summary
Hobbs' business profile is in line with or better than 'B+' rating
characteristics given its solid market position in a highly
fragmented market, favorable R&R-weighted revenue base, and cash
generation with FCF margins in the low single digits. The ratings
are mainly driven by the company's active, debt-funded acquisition
strategy and financial policy leading to higher leverage consistent
with 'B+' rating tolerances.
Hobbs' credit risk is comparable to that of WEC US Holdings Ltd
(B+/Stable, dba Westinghouse Electric Company [WEC]). The recurring
nature of WEC's multi-year contracted business, regulatory
requirements, and long and costly switching costs, in addition to
its scale and OEM status, support its profitability relative to
Hobbs. While Hobbs lacks the stability provided by multi-year
contracts, the company benefits from its technical knowledge,
vendor and customer relationships, R&R-orientation, and limited
working capital and capex needs that drive stronger FCF margins.
Key Assumptions
- Double-digit revenue growths driven by sizable acquisitions and a
low-single digit organic growth;
- EBITDA margins to gradually improve to around 11% in the
medium-term through operational leverage offset by margin dilutive
acquisitions;
- Capex at 0.5% of annual revenue;
- FCF margin remains healthy in the low-single digits;
- Debt-funded acquisitions of around $300 million per annum at 7x
multiple with transaction closing at end-June each year,
contributing 50% of proforma earnings;
- No dividend payment
- New borrowing at SOFR + 400 bps
- No material change in the company's capital allocation policy
Recovery Analysis
KEY RECOVERY RATING ASSUMPTIONS
- The recovery analysis assumes that Hobbs would be reorganized as
a going-concern (GC) in bankruptcy rather than liquidated;
- Fitch has assumed a 10% administrative claim.
GC Approach
The GC EBITDA estimate reflects Fitch's view of a sustainable,
post-reorganization EBITDA level upon which Fitch bases the
enterprise valuation. The $143 million GC EBITDA assumes degraded
relationships with OEMs as a result of reputational impairments and
the corresponding loss of its top two suppliers (27% of equipment
purchases). Fitch assumes revenues fall by 25% as Fitch believes
the company would be able to replace a portion of the revenue loss
through substitution of OEMs. Margins remain stable above 10% given
Hobbs' variable cost structure.
An enterprise valuation multiple of 5.0x EBITDA is applied to the
GC EBITDA to calculate a post-reorganization enterprise value. The
multiple considers the company's asset-light business and the
meaningful value derived from its OEM relationships, as well as
valuation multiples for comparable companies.
The credit facility are assumed to be fully drawn. The secured
credit facility and term loan are pari passu and receive equal
priority in the distribution of value in the recovery waterfall.
The recovery rating analysis results in a 'BB-'/'RR3' recovery for
the secured debt.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA leverage maintained above 4.5x or EBITDA interest coverage
sustained below 2.5x;
- Reduced financial flexibility, including less than 75% credit
facility availability or low single-digit CFO-Capex/Debt;
- Weaker operational and cash flow profiles due to heightened
execution risk in the company's expansion strategy and/or a more
shareholder friendly capital allocation policy.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Financial policies that lead to improved EBITDA leverage below
4.0x, and EBITDA interest coverage above 3.0x on a sustained
period;
- Improved financial flexibility with (CFO-capex)/Debt sustained in
the high-single digits;
- Continued execution of strategic initiatives that improve cash
flow risk, including increased size, scale and diversification.
Liquidity and Debt Structure
Post-upsizing, Hobbs' debt structure consists of $125 million
senior secured revolver (undrawn) and a $875 million senior secured
term loan B. The Term loan will amortize at 1% per annum and mature
in 2031.
Issuer Profile
Hobbs is an HVAC independent rep, who provides value-added
services/solutions for the full lifecycle of commercial HVAC
systems, ranging from system design to equipment selection &
procurement, ongoing maintenance & repair, aftermarket parts
supply, and eventually equipment replacement.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Hobbs & Associates, LLC LT IDR B+ Affirmed B+
senior secured LT BB- Affirmed RR3 BB-
HOBBS & ASSOCIATES: Moody's Alters Outlook on 'B2' CFR to Negative
------------------------------------------------------------------
Moody's Ratings has affirmed Hobbs & Associates, LLC's B2 corporate
family rating and B2-PD probability of default rating respectively.
Concurrently, Moody's also affirmed Hobbs' $125 million revolving
credit facility and $875 million term loan (including the delayed
draw term loan and proposed $50 million additional capacity) at B2,
following the issuance of incremental debt. The outlook has been
changed to negative from stable. The company is a Viriginia-based
commercial heating, ventilation, and air conditioning (HVAC)
independent rep firm and solutions provider and now operates under
its new corporate brand name Air Control Concepts.
The affirmation of the B2 CFR and outlook change follow the
issuance of $50 million of additional term loan. Moody's expect the
majority of proceeds from the incremental debt raise will be used
to fund acquisitions and pay transaction fees. The proposed
transaction represents an acceleration in the company's debt-funded
M&A strategy versus Moody's previous expectations, which could
result in sustained spikes in leverage and extends the timeline to
achieve positive free cash flow generation while increasing
integration risks. In addition, the company maintains a
concentrated equity ownership and operates at a significantly
larger scale than ever before with still uncertain financial
reporting. Governance considerations, given the rapid debt-fueled
growth of this company, are a key driver of the rating action.
RATINGS RATIONALE
The company's B2 credit profile is negatively impacted by its short
history operating at a much larger size than in the past (Hobbs
reported $1.6 billion of pro forma revenue size as of the LTM
period ended September 30, 2024 versus $124 million three years
ago) and under its new ownership structure, with Madison Dearborn
Partners and funds managed by Blackstone's private equity strategy
for individual investors as controlling owners, as well as higher
pro forma debt/EBITDA leverage of 5.8x as of September 30, 2024
(Moody's adjusted) versus historical levels around 4.0x. The
company's aggressive pace of debt-funded acquisitions is also a
credit constraint and will keep quality of earnings weak and
integration risks elevated. The company's active M&A pipeline will
also result in sustained periods of low to possibly negative free
cash flow, which could pressure the ratings.
Hobbs & Associates' B2 CFR is supported by its asset light and
flexible business model with attractive profitability margins and
cash flow, low customer concentration, variable cost structure, and
favorable position within a large, stable and growing HVAC market
that is benefitting from positive industry trends, and that Moody's
expect to result in high single-digit organic revenue growth over
the next several years.
The B2 ratings for the company's senior secured bank credit
facilities are derived from the B2 CFR, B2-PD probability of
default rating and the application of Moody's Loss Given Default
for Speculative-Grade Companies ("LGD") methodology. The B2 secured
debt ratings are consistent with the CFR, as the new secured debt
instruments account for the preponderance of the company's debt
structure and rank pari passu in the capital structure.
Moody's view Hobbs' liquidity as good, with a pro forma cash
balance of roughly $77 million as of December 31, 2024. Moody's
expect the company to generate $20 million of free cash flow over
the next 12 to 15 months, corresponding to free cash flow to debt
of at least 2%. However, the company's margin profile and free cash
flow expectations remain uncertain given the company's large pro
forma adjustments linked to a very active M&A pipeline that could
result in larger than anticipated integration costs or weaker
profitability from the acquired targets. The company has a $125
million revolving credit facility (currently undrawn) that also
supports liquidity. The revolver might be needed to fund seasonal
cash needs and potential acquisitions.
There are no financial covenants applicable to the term loan. The
proposed revolver is subject to a springing first lien net leverage
covenant below 7.75x, which is tested when the revolver is 40% or
more drawn. Moody's expect that the company would be able to
maintain an ample cushion under its financial covenant if it is
tested over the next 12 to 15 months.
The negative outlook reflects Moody's concern that if Hobbs &
Associates does not efficiently execute on acquisition integration
while it quickly expands its revenue base, leverage will remain
elevated and above the 5.5x downgrade trigger. The increased
cadence of debt-funded acquisitions versus Moody's previous
expectations could sustain leverage above previously anticipated
levels and reduce cash flow generation as integration and
transactional costs accelerate. The outlook could be revised to
stable if Moody's anticipate the company will reduce leverage
closer to the 4.5-5.0x range over the next 18-24 months underpinned
by healthy cash balances and positive free cash flow generation.
Improved earnings visibility with a lower proportion of the
company's EBITDA linked to pro forma adjustments would also support
a stabilization of the outlook.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the negative outlook, an upgrade is not likely in the near
term. Over the longer term, the ratings could be upgraded if Hobbs
& Associates experiences success operating on a larger scale,
demonstrates its ability to reduce leverage through organic revenue
growth, and improves free cash flow generation on a sustained
basis. An upgrade would also require moderate leverage with debt to
EBITDA sustained below 4.0x, EBITA/Interest sustained above 2.25x,
EBITDA margins approaching 15%, and a good liquidity profile while
materially improving its quality of earnings.
The ratings could be downgraded if the company experiences weaker
than expected operating performance including material organic
revenue declines or contracting profitability rates, or if it faces
challenges in operating on a larger scale. The ratings could also
be downgraded if Moody's expect debt to EBITDA will remain above
5.5x on a sustained basis, EBITA/Interest will be sustained below
1.5x, EBITDA margins will be sustained below 10%, free cash flow
will remain below break-even or liquidity deteriorates.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Headquartered in Norfolk, VA, historically family run business
Hobbs & Associates is a commercial HVAC rep firm and value added
solutions company. The company has a primary footprint across the
Mid-Atlantic, Northeast, and Southeast regions of the US In April
of 2023, Private Equity firm Madison Dearborn Partners ("MDP")
completed acquisition of a controlling ownership stake in the
company, and in July of 2024, the company welcomed funds managed by
Blackstone's private equity strategy for individual investors as an
equity investment partner.
HOMESTEADER FIRST: Court Denies Bid to Use Cash Collateral
----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Jacksonville Division, issued an order denying the motion by The
Homesteader, First Coast Edition, Inc. to authorize use of cash
collateral.
The court denied the motion following confirmation of the company's
Chapter 11 plan of reorganization on Jan. 31, which rendered the
motion moot.
About The Homesteader, First Coast Edition
The Homesteader, First Coast Edition Inc., doing business as More
Than Ink Printing, is a commercial printing company in
Jacksonville, Fla.
The Homesteader sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-03249) on
October 25, 2024, with $1 million to $10 million in both assets and
liabilities. Jerrett McConnell, Esq., at McConnell Law Group, P.A.
serves as Subchapter V trustee.
Judge Jason A. Burgess handles the case.
The Debtor is represented by:
William B McDaniel, Esq.
Lansing Roy, PA
Tel: 904-391-0030
Email: court@lansingroy.com
IMERI ENTERPRISES: Updates Comptroller of Public Accounts Claim Pay
-------------------------------------------------------------------
Imeri Enterprises Inc. submitted a Fourth Amended Plan of
Reorganization under Subchapter V dated February 3, 2025.
The Debtor owns a 56-room hotel at 28332 Southwest Highway 59,
Rosenberg, TX 77471 ("Hotel") currently operated as La Quinta Inn &
Suites Rosenberg.
The Debtor has operated this Property since October 2018. The
Property was posted for foreclosure on May 7, 2024. Debtor filed
the bankruptcy to stop the foreclosure and reorganize the Debtor.
On or about December of 2023 the Debtor completed a comprehensive
renovation of the Hotel.
This Plan of Reorganization proposes to pay Debtor's creditors from
the cash flow generated in the ordinary course of the Debtor's
business after confirmation.
Class 3 consists of the claim of Texas Comptroller of Public
Accounts for Hotel Occupancy Tax for December 2023, January 2024,
February 2024, March 2024, and April 2024 secured by tax lien
attached to all real and personal property owned, claimed or
acquired by the debtor(s). This claim is a Secured Claim to the
extent of collateral value.
The Debtor will pay $25,335.57 to Class 3 by no later than May 6,
2029. The claim will be paid in regular monthly installments with
interest at 9.50% [Claim 3]. Upon payment of the claims in this
class, the creditor is to release its liens.
Like in the prior iteration of the Plan, the Debtor will pay Class
8 unsecured non-priority claims the projected disposable income for
sixty months following the Effective Date to creditors in this
class with allowed claims in the amount set forth on the
projections with this plan.
The equity security holders will retain the interest in the
Debtor.
The Debtor will retain the property of the bankruptcy estate. The
Debtor will make the payments as set forth in the Projections to
either the creditors or to the Subchapter V Trustee.
The officers and directors of the Debtor are anticipated to remain
the same after the Effective Date. Isen Imeri will remain as
President, Sadete Imeri will remain as Vice-President, and Arben
Imeri will remain as Secretary of the Debtor after confirmation.
Continuance in such offices of these individuals, is consistent
with the interests of creditors and equity security holders and
with public policy.
A full-text copy of the Fourth Amended Plan dated February 3, 2025
is available at https://urlcurt.com/u?l=Q2lLoh from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Reese W. Baker, Esq.
Nikie Marie Lopez-Pagan, Esq.
Baker & Associates
950 Echo Lane Ste. 300
Houston, TX 77024
Telephone: (713) 869-9200
Facsimile: (713) 869-9100
About Imeri Enterprises
Imeri Enterprises, Inc., owns a 56-room hotel at 28332 Southwest
Highway 59, Rosenberg, TX 77471 ("Hotel") currently operated as La
Quinta Inn & Suites Rosenberg.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Texas Case No. 24-32106) on May 6,
2024, with $1 million to $10 million in both assets and
liabilities. Isen Imeri, president, signed the petition.
Judge Eduardo V. Rodriguez presides over the case.
The Debtor tapped Reese Baker, Esq., at Baker & Associates, as
counsel, and Ahmed Abdalwahab, CPA, as accountant.
INOTIV INC: Revenue Declines to $119.9 Mil. in Q1 FY 2025
---------------------------------------------------------
Inotiv, Inc. announced its financial results for the three months
ended December 31, 2024.
Management Commentary
Robert Leasure Jr., President and Chief Executive Officer,
commented, "We are dedicated to building a stronger, more
consistent company that delivers value to our clients, employees,
and shareholders. In the first quarter of fiscal 2025, we continued
to make progress in our top priorities, such as unifying our
operations under one brand and as one company, strengthening our
financial stability, and enhancing the client experience. Our
recent equity offering generated $27.5 million in net proceeds,
which allows us to continue to make thoughtful, strategic
decisions, and to drive sustainable growth creating shareholder
value.
"To reduce revenue volatility, we have expanded our NHP client base
and secured pre-sales for calendar year 2025. Additionally, we
expect our colony management services to experience steady growth
and increased revenue, building on the momentum from 2024. We are
continuing to advance the optimization of our North American
transportation and distribution systems for a smoother, more
reliable experience for our clients while improving overall
efficiency. Finally, once we complete the next phase of our North
American RMS site optimization plan, we anticipate annual cost
savings of approximately $4.0 to $5.0 million. These efficiencies
are expected to help us maintain high-quality service, reduce
production costs, and continue being a trusted partner in
delivering consistent, reliable service for our clients."
First Quarter Fiscal 2025 Financial Results (Three Months Ended
December 31, 2024):
Revenue decreased 11.5% to $119.9 million in Q1 FY 2025 as compared
to $135.5 million in Q1 FY 2024. The lower total revenue in the
first quarter was driven by a $13.7 million decrease in RMS revenue
and a $1.9 million decrease in DSA revenue. The decrease in RMS
revenue was due to lower non-human primate related product and
service revenue of $13.5 million mainly as a result of lower
pricing for NHPs. DSA revenues decreased primarily due to a
decrease in discovery service revenue.
Operating loss was $15.5 million in Q1 FY 2025 as compared to an
operating loss of $9.4 million in Q1 FY 2024. The increase in
operating loss was primarily driven by a decrease in RMS operating
income of $6.3 million, or 123.3%. The decrease in RMS operating
income was driven by the decrease in revenue discussed above,
partially offset by a $6.4 million decrease in cost of revenue. The
decrease in RMS cost of revenue was primarily driven by decreases
in costs associated with NHP-related product and service revenue of
$3.9 million, as well as decreases in restructuring costs,
transportation costs and costs related to sites closed in
connection with our optimization plan.
Cash and cash equivalents of $38.0 million at December 31, 2024,
compares to $21.4 million at September 30, 2024. Cash used in
operating activities was $4.5 million for Q1 FY 2025 compared to
$6.5 million for Q1 FY 2024. For Q1 FY 2025, capital expenditures
totaled $4.5 million compared to $5.6 million for Q1 FY 2024. Total
debt, net of debt issuance costs, as of December 31, 2024, was
$396.0 million. As of December 31, 2024, there were no borrowings
on the Company's $15.0 million revolving credit facility.
Operational and Capital
Resources Highlights
* On October 24, 2024, the Company and Orient BioResource
Center entered into a Third Amendment to extend the maturity date
of the Seller Payable to January 27, 2026.
* In closings on December 19, 2024 and December 30, 2024, the
Company raised approximately $27.5 million in net proceeds from its
underwritten public offering of a total of 6.9 million common
shares at a price to the public of $4.25 per share.
A full-text copy of the Company's report filed on Form 8-K with the
Securities and Exchange Commission is available at:
https://tinyurl.com/3n8remjm
About Inotiv
West Lafayette, Ind.-based Inotiv, Inc. and its subsidiaries
comprise a leading contract research organization dedicated to
providing nonclinical and analytical drug discovery and development
services to the pharmaceutical and medical device industries and
selling a range of research-quality animals and diets to the same
industries as well as academia and government clients.
Indianapolis, Ind.-based Ernst & Young LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated December 4, 2024, citing that the Company has suffered
negative operating cash flows, operating losses and net losses,
absent recent amendments would not have complied with certain
covenants of loan agreements with banks and has stated that
substantial doubt exists about the Company's ability to continue as
a going concern.
INVATECH PHARMA: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: InvaTech Pharma Solutions LLC
d/b/a Inva Tech Pharma Solutions LLC
d/b/a Inva-Tech Pharma Solutions LLC
40 C Cotters Lane, Suite #A
East Brunswick, NJ 08816
Business Description: InvaTech Pharmaceuticals LLC is a specialty
pharmaceutical company that develops,
manufactures, and markets generic
prescription products. The Company's cGMP-
compliant facility supports ANDA scale
manufacturing and packaging of tablets,
capsules, and liquid in bottles. With a
dedicated team, InvaTech is committed to
meeting industry regulations, exceeding
deadlines, and delivering exceptional
service to its partners.
Chapter 11 Petition Date: February 13, 2025
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 25-11482
Debtor's Counsel: Daniel M. Stolz, Esq.
GENOVA BURNS LLC
110 Allen Road, Suite 304
Basking Ridge, NJ 07920
Tel: (973) 467-2700
Fax: (973) 467-8126
E-mail: dstolz@genovaburns.com
Estimated Assets: $1 billion to $10 billion
Estimated Liabilities: $10 million to $50 million
The petition was signed by Nilesh Patel as chief executive
officer.
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/OEJDCZI/InvaTech_Pharma_Solutions_LLC__njbke-25-11482__0001.0.pdf?mcid=tGE4TAMA
IVANTI SOFTWARE: $465MM Bank Debt Trades at 25% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Ivanti Software Inc
is a borrower were trading in the secondary market around 74.9
cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The $465 million Term loan facility is scheduled to mature on
December 1, 2027. About $447.9 million of the loan has been drawn
and outstanding.
Ivanti is an IT Software Company headquartered in South Jordan,
Utah. It produces software for IT Security, IT Service Management,
IT Asset Management, Unified Endpoint Management, Identity
Management and supply chain management.
JERVOIS TEXAS: Court Approves Common Stock Transfer Protocol
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas
approved the procedures for certain transfers of and declaration of
worthlessness with respect to common stock of Jervois Texas LLC and
its debtor-affiliates.
According to court documents, the Debtors have limited the relief
requested herein to the extent necessary to preserve estate value.
Specifically, the proposed Order will affect only: (a) holders of
the equivalent of more than 121,624,370 shares of Common Stock7
(i.e., 4.5% or more of outstanding Common Stock); and (b) parties
who are interested in purchasing sufficient Common Stock to result
in such party becoming a holder of 4.5 percent or more of
Beneficial Ownership of outstanding Common Stock; and (c) any
"50-percent shareholder" seeking to claim a worthless stock
deduction.
The Debtors said, to maximize the use of the Tax Attributes and
enhance recoveries for the Debtors' stakeholders, they seek limited
relief that will enable them to closely monitor certain transfers
of Beneficial Ownership of Common Stock and certain worthless stock
deductions with respect to Beneficial Ownership of Common Stock so
as to be in a position to act expeditiously to prevent such
transfers or worthlessness deductions, if necessary, with the
purpose of preserving the Tax Attributes. By establishing and
implementing such Procedures, the Debtors will be in a position to
object to "ownership changes" that threaten their ability to
preserve the value of their Tax Attributes for the benefit of the
estate, the Debtors added.
The Debtors noted the Procedures are the mechanism by which the
Debtors propose that they will monitor and, if necessary, object to
certain transfers of Beneficial Ownership of Common Stock and
declarations of worthlessness with respect to Beneficial Ownership
of Common Stock to ensure preservation of the Tax Attributes.
The Debtors added that implementation of the Procedures is
necessary and appropriate to enforce the automatic stay and,
critically, to preserve the value of the Tax Attributes for the
benefit of the Debtors' estates.
About Jervois Texas LLC
Jervois Texas LLC and its affiliates are global suppliers of
advanced manufactured cobalt products, serving customers in the
powder metallurgy, battery and chemical industries. The Debtors'
principal asset base is comprised of an operating cobalt facility
in Finland and non-operating plants in both the United States and
Brazil.
Jervois Texas LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.25-90002) on January
28, 2025. Seven affiliates also filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code: Jervois Global
Limited, Jervois Suomi Holding Oy, Jervois Finland Oy, Jervois
Japan Inc., Formation Holding US, Inc., Jervois Mining USA Limited,
and Jervois Americas LLC.
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
The Debtors' restructuring counsel are Duston K. McFaul, Esq., at
Sidley Austin LLP, in Houston, Texas, and Stephen E. Hessler, Esq.,
Anthony Grossi, Esq., Andrew Townsell, Esq., and Weiru Fang, Esq.,
at Sidley Austin LLP, in New York.
The Debtors' investment banker is Moelis & Company. The Debtors'
restructuring advisor is FTI Consulting, Inc. The Debtors' Claims,
Noticing & Solicitation Agent is Stretto, Inc. The Debtors' tax
advisor is Pricewaterhouse Coopers International Limited.
JERVOIS TEXAS: Disclosure & Plan Hearing Set for March 6, 2025
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas will
hold a combined hearing on March 6, 2025, at 1:00 p.m. (prevailing
Central Time) before the Hon. Christopher M. Lopez, U.S. Bankruptcy
Judge, in courtroom 401, 515 Rusk Street, Houston, Texas 77002, to
consider the approval of the adequacy of the the disclosure
statement explaining the prepackaged Chapter 11 plan of
reorganization filed by Jervois Texas LLC and its
debtor-affiliates, and confirm the Debtors' Chapter 11 plan.
Objections to the approval of the Debtors' disclosure statement and
plan confirmation, if any, must be filed no later than 4:00 p.m.
(prevailing Central Time) on Feb. 28, 2025.
The deadline to vote to accept or reject the Debtors' Prepackaged
Chapter 11 Plan is Feb. 25, 2025, at 5:00 p.m. (prevailing Central
Time).
As reported by the Troubled Company Reporter, Feb. 11, 2025, the
Debtors filed with the U.S. Bankruptcy Court for the Southern
District of Texas a Disclosure Statement for the Joint Prepackaged
Plan of Reorganization dated Jan. 28, 2025.
The Company is a leading global supplier of advanced manufactured
cobalt products, serving customers in the powder metallurgy,
battery, and chemical industries. The Debtors' principal asset base
is comprised of an operating cobalt facility in Finland, a
non-operating cobalt mine in the United States, and a nonoperating
refinery in Brazil.
On Dec. 31, 2024, the Debtors and the Plan Sponsor entered into a
Restructuring Support Agreement, which was amended and restated on
Jan. 28, 2025 pursuant to an Amended and Restated Restructuring
Support Agreement among the Debtors and the Consenting Lenders
(including the Plan Sponsor) (as may be amended, supplemented, or
otherwise modified from time to time, the "Restructuring Support
Agreement"), which outlines the terms of a holistic balance sheet
restructuring and recapitalization transaction, including
debtor-in-possession financing to support the Chapter 11 Cases and
the Australian Proceedings and financing to be provided on or after
the Debtors' emergence for go-forward operations (collectively, and
as further detailed in the Restructuring Support Agreement, the
"Restructuring Transactions").
Through the consensual Prepackaged Plan, the Debtors will shed
approximately $164 million in funded debt obligations and have
support from the Plan Sponsor (and, if applicable, one or more
Additional New Money Investors) for $145 million in new capital.
The Restructuring Transactions will create a company that is
stronger and well-capitalized.
The Consenting Lenders have agreed to vote in favor and support
confirmation of the Debtors' Prepackaged Plan, as set forth in the
Restructuring Support Agreement. The Consenting Lenders hold
sufficient majorities in Class 3 (Prepetition JFO Revolver Claims)
and Class 5 (Prepetition Convertible Notes) as well as the
requisite majority (in claim amount) in Class 4 (Prepetition ICO
Bond Claims) needed to confirm the Prepackaged Plan.
Pursuant to, and subject to the terms of the Restructuring Support
Agreement, the Plan Sponsor has agreed to commit substantial new
capital to fund distributions under the Prepackaged Plan and the
Debtors' go-forward operations post-emergence, as summarized:
* The Plan Sponsor has committed to provide: (i) a $49 million
debtor-in-possession financing in the form of a senior secured
priming facility that amends the existing Prepetition JFO Facility
(the "DIP JFO Facility") consisting of (A) a $25 million new money
senior-secured priming delayed draw term facility (the "New Money
DIP Facility"), and (B) a $24 million roll up facility of the
existing prepetition delayed draw term loan (the "Roll-Up
Facility"); (ii) on the effective date of the Prepackaged Plan (the
"Effective Date"), $90 million of new equity investment (the "New
Money Investment") in exchange for approximately 51.1% of the new
equity interests to be issued by the Reorganized Debtors, as of the
Effective Date, subject to dilution by the management incentive
plan; and (iii) after the Effective Date, $55 million, in the
aggregate, in one or more equity financings, upon terms and
conditions in form and substance acceptable to the Reorganized
Parent4 and the Plan Sponsor (in the Plan Sponsor's sole and
absolute discretion), which funds, together with a portion of the
proceeds from the New Money Investment, will provide new equity to
restart the São Miguel Paulista nickel cobalt refinery located
in Brazil (the "SMP Refinery");
* On the Effective Date, the Debtors' Prepetition JFO Facility
will be partially paid down in Cash in the amount of $12.5 million,
and the remaining outstanding principal amounts (and go-forward
commitments) shall be converted into, amended, and continued as a
post-Effective Date senior secured revolving facility (the "Exit
Revolver") of up to $150 million in aggregate commitments, subject
to certain terms and conditions, to further support the business
following the Debtors' emergence from these Chapter 11 Cases; and
* Within two days of the confirmation of these Chapter 11
Cases, the Australian Entities intend to commence the Australian
Proceedings, by which the VA Administrator shall be appointed to
each of the Australian Entities. Millstreet or its nominee will put
forward its DOCA Proposal in respect of the Australian Entities. If
the DOCA Proposal is recommended by the VA Administrators and
accepted by the majority of creditors of each of the Australian
Entities, the VA Administrators will implement the proposed DOCA in
respect of the Australian Entities. Following the successful
completion of the Australian Proceedings, Jervois will apply to be
delisted from the Australian Securities Exchange ("ASX") and
Jervois and the Australian Entities will respectively commence
voluntary winding up procedures, pursuant to which the existing
ordinary shares of each of Jervois and the Australian Entities will
be cancelled.
With a prepackaged chapter 11 plan and key stakeholder support in
place pursuant to the Restructuring Support Agreement, the Debtors
expect to emerge well-positioned for success as a private company.
The Debtors anticipate that the $55 million in post-emergence
equity financings will, together with a portion of the proceedings
from the New Money Investment, provide approximately $70 million in
new equity to restart the SMP Refinery.
Class 6 consists of General Unsecured Claims. The legal, equitable,
and contractual rights of the holders of Allowed General Unsecured
Claims are Unimpaired by the Prepackaged Plan. Except to the extent
that a Holder of an Allowed General Unsecured Claim agrees to
different treatment, on and after the Effective Date, the Debtors
shall continue to pay or dispute each General Unsecured Claim in
the ordinary course of business. This Class is unimpaired.
All Existing Equity Interests shall be canceled, released, and
extinguished and will be of no further force or effect.
The Debtors or Reorganized Debtors, as applicable, shall fund
distributions under the Prepackaged Plan with the (i) Debtors' Cash
on hand, (ii) Cash generated from operations, and (iii) funds from
the New Money Investment.
A full-text copy of the Disclosure Statement dated Jan. 28, 2025 is
available at https://urlcurt.com/u?l=I5prin from PacerMonitor.com
at no charge.
Proposed Counsel to the Debtors:
Duston K. McFaul, Esq.
SIDLEY AUSTIN LLP
1000 Louisiana Street, Suite 5900
Houston, Texas 77002
Tel: (713) 495-4500
Fax: (713) 495-7799
Email: dmcfaul@sidley.com
- and -
Stephen E. Hessler, Esq.
Anthony Grossi, Esq.
Andrew Townsell, Esq.
Weiru Fang, Esq.
787 Seventh Avenue
New York, New York 10019
Tel: (212) 839-5300
Fax: (212) 839-5599
Email: shessler@sidley.com
agrossi@sidley.com
andrew.townsell@sidley.com
weiru.fang@sidley.com
About Jervois Texas LLC
Jervois Texas LLC and its affiliates are global suppliers of
advanced manufactured cobalt products, serving customers in the
powder metallurgy, battery and chemical industries. The Debtors'
principal asset base is comprised of an operating cobalt facility
in Finland and non-operating plants in both the United States and
Brazil.
Jervois Texas LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.25-90002) on January
28, 2025. Seven affiliates also filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code: Jervois Global
Limited, Jervois Suomi Holding Oy, Jervois Finland Oy, Jervois
Japan Inc., Formation Holding US, Inc., Jervois Mining USA Limited,
and Jervois Americas LLC.
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
The Debtors' restructuring counsel are Duston K. McFaul, Esq., at
Sidley Austin LLP, in Houston, Texas, and Stephen E. Hessler, Esq.,
Anthony Grossi, Esq., Andrew Townsell, Esq., and Weiru Fang, Esq.,
at Sidley Austin LLP, in New York.
The Debtors' investment banker is Moelis & Company. The Debtors'
restructuring advisor is FTI Consulting, Inc. The Debtors' Claims,
Noticing & Solicitation Agent is Stretto, Inc. The Debtors' tax
advisor is Pricewaterhouse Coopers International Limited.
JOANN INC: Seeks Approval to Close Over 500 Stores in 2nd Ch. 11
----------------------------------------------------------------
Nate Delesline III of Retail Dive reports that Joann has filed for
court approval to shut down more than half of its stores
nationwide, the company announced Wednesday, February 12, 2025. The
move follows its Chapter 11 bankruptcy filing last month, the
retailer's second in less than a year, the report noted.
A Delaware bankruptcy court will review the request on Friday, with
a decision impacting over 500 locations. If approved, Joann will
launch going-out-of-business sales starting Saturday, according to
statements sent to vendors and customers, the report states.
The company risks full closure if it fails to secure a buyer at
auction. While Joann is pursuing a sale, stalking horse bidder
Gordon Brothers plans to liquidate the business if it wins,
according to report.
About Joann Inc.
JOANN operates in the fabric and sewing industry with one of the
largest assortments of arts and crafts products. JOANN has
transformed itself into a fully-integrated, digitally-connected
omni-channel retailer.
JOANN reported a net loss of $200.6 million for the year ended Jan.
28, 2023.
On March 18, 2024, JOANN Inc. and 9 affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 24-10418). JOANN listed
$2,257,700,000 in assets against $2,440,700,000 in liabilities as
of Oct. 28, 2023.
Judge Craig T. Goldblatt oversees the case.
The Debtors tapped Latham & Watkins, LLP as legal counsel; Houlihan
Lokey Capital, Inc. as investment banker; and Alvarez & Marsal
North America, LLC, as financial advisor. Kroll Restructuring
Administration, LLC is the noticing agent.
JOANN Inc., on April 30, 2024 successfully emerged from its
court-supervised financial restructuring process.
2nd Attempt
Joann Inc. sought voluntary Chapter 11 petition for the second time
under U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10068) on
Jan. 15, 2025.
Kirkland & Ellis is serving as legal counsel to JOANN, with
Centerview Partners LLC serving as financial advisor and Alvarez &
Marsal North America, LLC serving as restructuring advisor.
JUMP FINANCIAL:S&P Rates New $650MM Senior Secured Term Loan 'BB-'
------------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue rating to Jump
Financial LLC's (Jump; BB-/Stable/--) new $650 million senior
secured term loan maturing in 2032. The proceeds of the new loan
will be used to repay the existing $484 million term bank loan and
to provide additional trading capital to support expansion of
Jump's trading business and liquidity.
S&P said, "We expect that deployment of the additional trading
capital from this issuance will not materially erode the firm's
capitalization. Despite balance-sheet growth, we estimate Jump's
risk-adjusted capital (RAC) ratio increased to 14.8% at year-end
2024 from 12.7% in 2023, owing to record net income last year and
strong earnings retention. Even accounting for expected growth in
trading operations and exposures, we assume the RAC ratio will
remain about 13%, which is comfortably above the 10% threshold for
the current ratings.
"Jump is in the process of securing a $250 million three-year
committed revolving credit facility, which we would view favorably
as a reliable source of contingent liquidity. Nevertheless, we
still deem the company's liquidity a weakness versus most
higher-rated peers given the reliance on short-term prime brokerage
funding and a required margin to net trading capital ratio higher
than those of rated peers."
JW ALUMINUM: S&P Raises ICR to 'B', Outlook Stable
--------------------------------------------------
S&P Global Ratings raised its issuer credit rating on JW Aluminum
Continuous Cast Co. (JWA) to 'B' from 'B-.' The outlook is stable.
The stable outlook reflects S&P's view that JWA will sustain debt
to EBITDA below at least 5x and maintain positive free operating
cash flow under softer market conditions anticipated over the next
12-24 months.
The company is poised to generate consistently lower leverage,
positive free cash flow, and steady EBITDA margins over the next 12
months. This follows the multi-year asset modernization and
expansion project and recovery from a damaging plant fire at its
Mt. Holly facility in South Carolina, which accounts for roughly
three-quarters of its volumes. S&P said, "We expect the plant to
maintain consistent production levels above 250 million pounds per
year and a consistently higher EBITDA margin profile when compared
with pre-project. The company transitioned to positive FOCF
starting in 2022, following several years of negative FOCF from
high capital expenditure (capex) related to expansion projects and
the multi-year disruption to its production footprint from the
fires experienced in 2020, and we expect them to sustain positive
FOCF over at least the next 12-24 months. We do expect a dip in
earnings and margins in 2025 to occur due to lower production at
Mt. Holly compared with historically high levels of 2023 and to
softer metal pricing profits, however, the company is better
positioned for stability going forward post-project and we believe
the high proportion of its customer contracts gives good revenue
visibility for the company. We project approximately $75
million-$95 million of EBITDA in 2024 and 2025 and margins in the
12%-15% range compared with historically strong 2023 EBITDA and
margins of approximately $102 million and 17%, respectively. This
also compares favorably with EBITDA and margins that averaged
around $40 million and 8% from 2018 to 2021. We continue to project
leverage of below 5x over the next 12-24 months. We anticipate the
improving credit profile to support ongoing capital expenditure
(capex) at its Mt. Holly facility and modest shareholder
distributions to its financial sponsor."
A higher concentration of JWA's asset base and end markets remains
a risk. The Mt. Holly facility represents about 78% of the total
production base. Although this facility benefits from its ability
to produce a high volume of SKUs, to fulfill small orders, and to
have flexible finishing capabilities, the concentration of earnings
from this asset is a key risk because a prolonged work stoppage
could reduce earnings significantly. Production declined 25% in
2020 as a result of fires at the facility, and EBITDA subsequently
dropped to less than $10 million. However, JWA is running at high
utilization rates, and the recent expansion and modernization of
its site operations will help improve its scale and cost profile
(relieving bottlenecks and metal mix using more scrap). The company
now has a nimbler asset that it can flex according to market demand
and conditions.
JWA is also exposed to end-market concentration risk. The
construction and heating, ventilation, and air conditioning (HVAC)
markets account for approximately 75% of the company's revenue,
which leaves the company susceptible to a slowdown in residential
construction. However, this risk is somewhat mitigated because most
of volumes serve the repair and remodeling market. Homes built in
the early 2000s housing boom are entering into the market for
remodeling and support the demand for JWA's products. S&P said, "We
expect residential construction to grow by 0.8% in 2025 compared
with our expectation of a 3.9% growth in 2024. In addition, we
expect housing starts to increase modestly to 1.36 million in 2025
compared with 1.35 million in 2024. Also, JWA is expected to
benefit from the construction of new data centers across the U.S.,
which need more HVAC units for their operations. We expect demand
for aluminum sheet will remain strong for this undersupplied market
over the next 12-24 months."
S&P said, "The stable outlook reflects our view that JWA will
maintain leverage of below 5x over at least the next 12 months,
even after our expectation of modest increases in discretionary
spending. The company continues to benefit from the improvement to
its key asset at Mt. Holly, positive FOCF post-expansion, and
revenue predictability due to contract pricing."
S&P could lower the rating on JWA if debt to EBITDA increased above
5x. This could occur if:
-- Weakening demand resulted in declining production and higher
conversion costs; or
-- The company undertook meaningful debt-funded capex or
shareholder returns.
S&P views an upgrade to JWA as unlikely over the next 12 months;
however, it could consider a higher rating if the company
meaningfully diversified its revenue base while maintaining a
steady improvement in EBITDA that resulted in debt to EBITDA of
below 3x. This could occur if:
-- The company continued to see an improvement in profitability
while sustaining EBITDA margins above 20%; and
-- The company maintained positive FOCF that fully supports other
discretionary spending.
KITO CROSBY: S&P Places 'B' ICR on Watch Positive on Columbus Deal
------------------------------------------------------------------
S&P Global Ratings placed all of its ratings on Kito Crosby Ltd.
(KCL), including its 'B' issuer credit rating, on CreditWatch with
positive implications.
S&P said, "The CreditWatch placement reflects our view that there
is at least a one-in-two likelihood that we could raise our ratings
on KCL by one notch, following the announced acquisition by
Columbus McKinnon.
"We expect to resolve the CreditWatch placement when the proposed
transaction closes, which we anticipate will likely occur in the
second-half of 2025, subject to regulatory approvals and other
customary closing conditions."
Kito Crosby Ltd. announced that it entered into a definitive
agreement to be acquired by Columbus McKinnon Corp. (B+/Watch
Neg/--) for a total purchase price of $2.7 billion.
We expect a full integration of KCL with Columbus McKinnon's
existing operations.
S&P said, "The CreditWatch placement follows KCL's announcement
that it will be acquired by Columbus McKinnon. Post-transaction
close, we expect a full integration of Kito Crosby with Columbus
McKinnon's existing operations. We expect the transaction will
retire Kito Crosby's existing debt, which includes a $120 million
revolving credit facility (undrawn as of Sept. 30, 2024) and almost
$1.0 billion of senior secured term-loans.
"The successful integration of KCL will improve Columbus McKinnon's
competitiveness in the global lifting and hoist equipment markets.
Pro forma the transaction, the combined company is expected to
generate revenues of about $2 billion and over $450 million of S&P
Global Ratings-adjusted EBITDA. The transaction is also expected to
increase legacy CM's product portfolio and geographic footprint.
While we view these improvements in earnings quality as credit
positive, we believe unmitigated integration risks could derail the
combined company's efforts to reduce its debt-leverage.
"The CreditWatch placement with positive implications reflects our
view that we would likely raise or affirm our ratings on KCL when
the transaction closes.
"We also placed our 'B+' issuer credit rating on Columbus McKinnon
on CreditWatch with negative implications, indicating that the
rating could be lowered one notch or affirmed."
KNIGHT HEALTH: $450MM Bank Debt Trades at 42% Discount
------------------------------------------------------
Participations in a syndicated loan under which Knight Health
Holdings LLC is a borrower were trading in the secondary market
around 58.0 cents-on-the-dollar during the week ended Friday,
February 14, 2025, according to Bloomberg's Evaluated Pricing
service data.
The $450 million Term loan facility is scheduled to mature on
December 26, 2028. The amount is fully drawn and outstanding.
Knight Health Holdings LLC is a provider of a community-based acute
and post-acute care, with 18 short-term acute care hospitals and 61
long-term acute care facilities across 25 states.
KUT AUTO: Seeks Chapter 11 Bankruptcy Protection in Alabama
-----------------------------------------------------------
On February 8, 2025, Kut Auto Finance LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Alabama.
According to court filing, the Debtor reports $2,730,169 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About Kut Auto Finance LLC
Kut Auto Finance LLC, d/b/a 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.
Kut Auto Finance LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No.: 25-00389) on February
8, 2025. In its petition, the Debtor reports total assets of
$3,142,240 and total liabilities of $2,730,169.
Honorable Bankruptcy Judge Tamara O. Mitchell handles the case.
The Debtor is represented by:
Steven D. Altmann, Esq.
Nomberg Law Firm
3940 Montclair Rd, Ste 401
Birmingham, AL 35213
Tel: (205) 930-6900
Fax: (205) 855-4262
E-mail: steve@nomberglaw.com
L4L INVESTMENT: Sec. 341(a) Meeting of Creditors on March 5
-----------------------------------------------------------
On February 3, 2025, L4L Investment Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Georgia. According to court filing, the Debtor reports between
$1 million and $10 million in debt owed to 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 5,
2025 at 03:00 PM via Telephone conference. To attend, Dial
888-902-9750 and enter participation code 9635734.
About L4L Investment Inc.
L4L Investment Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-51137) on February 3,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
LA NOTTE VENTURES: Court Extends Cash Collateral Access to March 5
------------------------------------------------------------------
La Notte Ventures, Inc. received interim approval from the U.S.
Bankruptcy Court for the Northern District of Illinois to use cash
collateral until March 5, marking the fourth extension since the
company's Chapter 11 filing.
The company will operate within 10% of the budget until its use of
cash collateral is approved on a permanent basis.
The U.S. Small Business Administration was granted replacement
liens on all post-petition property of the company, including all
cash collateral, to the same extent, validity, and priority as its
pre-bankruptcy liens.
As additional protection, the SBA will continue to receive a
monthly payment of $251.
The company's authority to use cash collateral terminates upon
dismissal or conversion of its Chapter 11 case to one under Chapter
7 or upon entry of a court order directing the cessation of the use
of cash collateral.
The next hearing is scheduled for March 4.
About La Notte Ventures
La Notte Ventures, Inc., doing business as La Notte Ristorante
Italiano, sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ill. Case No. 24-15860) on October 23, 2024, with
up to $50,000 in assets and up to $1 million in liabilities.
Judge Jacqueline P. Cox presides over the case.
The Debtor is represented by:
David R. Herzog, Esq.
Law Office of David R. Herzog, LLC
53 W. Jackson Blvd., Suite 1442
Chicago, IL 60604
Telephone: (312) 977-1600
Email: drh@dherzoglaw.com
LASERSHIP INC: $1.03BB Bank Debt Trades at 30% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Lasership Inc is a
borrower were trading in the secondary market around 70.5
cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The $1.03 billion Payment in kind Term loan facility is scheduled
to mature on August 10, 2029. About $1.03 billion of the loan has
been drawn and outstanding.
LaserShip is a regional last-mile delivery company that services
the Eastern and Midwest United States. Founded in 1986, LaserShip
is based in Vienna, Virginia, and has sorting centers in New
Jersey, Ohio, North Carolina, and Florida.
LASERSHIP INC: $192.6MM Bank Debt Trades at 32% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Lasership Inc is a
borrower were trading in the secondary market around 67.8
cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The $192.6 million Payment in kind Term loan facility is scheduled
to mature on August 10, 2029. About $192.1 million of the loan has
been drawn and outstanding.
LaserShip is a regional last-mile delivery company that services
the Eastern and Midwest United States. Founded in 1986, LaserShip
is based in Vienna, Virginia, and has sorting centers in New
Jersey, Ohio, North Carolina, and Florida.
LASERSHIP INC: $202.5MM Bank Debt Trades at 28% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Lasership Inc is a
borrower were trading in the secondary market around 72.0
cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The $202.5 million Payment in kind Term loan facility is scheduled
to mature on January 2, 2029. The amount is fully drawn and
outstanding.
LaserShip is a regional last-mile delivery company that services
the Eastern and Midwest United States. Founded in 1986, LaserShip
is based in Vienna, Virginia, and has sorting centers in New
Jersey, Ohio, North Carolina, and Florida.
LEFEVER MATTSON: Court OKs Deal to Use Poppy Bank's Cash Collateral
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California,
Santa Rosa Division, approved a stipulation between Windscape
Apartments, LLC and its lender, Poppy Bank.
The stipulation authorized the use of the lender's cash collateral
for the period from Dec. 1, 2024 to April 30, 2025, to pay the
expenses incurred from the operation and maintenance of Windscape's
real property in Sonoma, Calif.
As protection for the use of its cash collateral, Poppy Bank was
granted a replacement lien on all post-petition rents generated by
the property.
Windscape is an affiliate of LeFever Mattson that filed for Chapter
11 protection on Sept. 12, 2024.
Poppy Bank is represented by:
Mitchell B. Greenberg, Esq.
Abbey, Weitzenberg, Warren & Emery, PC
100 Stony Point Rd, Suite 200
Santa Rosa, CA 95401
707-542-5050
About LeFever Mattson
LeFever Mattson, a California corporation, manages a large real
estate portfolio. Timothy LeFever and Kenneth W. Mattson each owns
50% of the equity in the company. Based in Citrus Heights, Calif.,
LeFever Mattson manages a portfolio of more than 200 properties,
comprised of commercial, residential, office, and mixed-use real
estate, as well as vacant land, located throughout Northern
California, primarily in Sonoma, Sacramento, and Solano Counties.
It generates income from the properties through rents and use the
proceeds to fund its operations.
LeFever Mattson and its affiliates filed voluntary Chapter 11
petitions (Bankr. N.D. Calif. Lead Case No. 24-10545) on September
12, 2024. At the time of the filing, LeFever Mattson listed $100
million to $500 million in assets and $10 million to $50 million in
liabilities.
Judge Charles Novack oversees the cases.
Thomas B. Rupp, Esq., at Keller Benvenutti Kim LLP represents the
Debtors as counsel. Kurtzman Carson Consultants, LLC is the
Debtors' claims and noticing agent.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
LEXARIA BIOSCIENCE: Cuts JonesTrading Sales Deal from $20MM to $5MM
-------------------------------------------------------------------
Lexaria Bioscience Corp. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that on February 5,
2025, the Company and JonesTrading Institutional Services LLC
entered into Amendment No. 1 to the Capital on Demand Sales
Agreement between the parties originally entered into on August 21,
2024 . The Amendment amends the Original Agreement to:
(i) amend the defined term "Registration Statement" to refer
to the Company's current active registration statement on Form S-3
(333-284407) and
(ii) provide that the Company may issue and sell, from time to
time, up to $5,000,000 in aggregate principal amount of shares of
the Company's common stock through or to the Agent, as the
Company's sales agent or principal. The Original Agreement had
provided for the issue and sale of up to $20,000,000 in aggregate
principal amount of shares.
Any Shares to be offered and sold under the Sales Agreement will be
issued and sold by methods deemed to be an "at-the-market offering"
as defined in Rule 415(a)(4) promulgated under the Securities Act
of 1933, as amended, or in negotiated transactions, if authorized
by the Company.
Subject to the terms of the Sales Agreement, the Agent will use
reasonable efforts to sell the Shares from time to time, based upon
the Company's instructions (including any price, time, or size
limits or other customary parameters or conditions the Company may
impose). The Company cannot provide any assurances that it will
issue any Shares pursuant to the Sales Agreement. The Company will
pay the Agent a commission of 3.0% of the gross sales price of the
Shares sold pursuant to the Sales Agreement, if any. The Company
has agreed to reimburse the Agent for certain specified expenses as
provided in the Sales Agreement and has also agreed to provide the
Agent with customary indemnification and contribution rights in
respect of certain liabilities, including liabilities under the
Act. The Sales Agreement also contains customary representations,
warranties and covenants.
The offering of the Shares will terminate upon the earliest of:
(a) the issuance and sale of all of the Shares by the Agent on
the terms and subject to the conditions set forth in the Sales
Agreement or
(b) the termination of the Sales Agreement by either of the
parties thereto.
The sale of Shares, if any, under the Sales Agreement will be made
pursuant to the Company's shelf registration statement on Form S-3
(File No. 333-284407), which was filed with the Securities and
Exchange Commission on January 22, 2025, and declared effective on
January 30, 2025, and a prospectus supplement to the base
prospectus forming a part of such registration statement, which was
filed by the Company with the Commission on February 5, 2025.
About Lexaria
Headquartered in Kelowna, BC, Canada, Lexaria Bioscience Corp. --
http://www.lexariabioscience.com/-- is a biotechnology company
developing the enhancement of the bioavailability of a broad range
of fat-soluble active molecules and active pharmaceutical
ingredients using its patented DehydraTECH drug delivery
technology. DehydraTECH combines lipophilic molecules or APIs with
specific long-chain fatty acids and carrier compounds that improve
the way they enter the bloodstream, increasing their effectiveness
and allowing for lower overall dosing while promoting healthier
oral ingestion methods.
Lexaria reported a net loss of $6.71 million for the year ended
Aug. 31, 2023, compared to a net loss of $7.38 million for the year
ended Aug. 31, 2022. As of May 31, 2024, Lexaria Bioscience had
$10.02 million in total assets, $271,375 in total liabilities, and
$9.75 million in total stockholders' equity.
Going Concern
The continuation of Lexaria as a going concern depends on raising
additional capital and/or attaining and maintaining profitable
operations. The recurring losses from operations and net capital
deficiency may raise substantial doubt about the Company's ability
to continue as a going concern within one year following the date
that these consolidated financial statements are issued, Lexaria
said in its Quarterly Report for the period ended May 31, 2024.
LIBERATED BRANDS: Closes All Stores, Sells Wholesale Inventory
--------------------------------------------------------------
Laurel Deppen of Fashion Dive reports that Liberated Brands has
begun closing sales at 122 retail stores following its recent
bankruptcy filing.
The closures impact all Liberated-operated locations, including
Billabong, Roxy, RVCA, and Quiksilver stores—brands within the
Boardriders portfolio -- according to a statement from Gordon
Brothers, the firm managing the liquidation.
Gordon Brothers is also overseeing a strategic review of
Liberated's real estate and store leases while facilitating the
sale of its wholesale inventory, which includes men's, women's, and
children’s apparel and accessories.
Storewide discounts range from 20% to 40%, with outlet locations
offering 30% to 50% off. In Hawaii, discounts range from 10% to
30%.
Liberated previously managed Boardriders' U.S. and Canadian retail
and e-commerce operations through a licensing agreement with
Authentic Brands Group. However, it lost part of that agreement in
December due to "significant liquidity challenges."
The closures will result in approximately 1,040 retail job losses,
in addition to more than 360 corporate layoffs following the
shutdown of Liberated's California headquarters.
According to bankruptcy filings, Liberated's assets and liabilities
each range between $100 million and $500 million, with unsecured
creditor claims totaling between $566 million and $3.2 billion.
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: Gets OK to Use Cash Collateral Until March 5
--------------------------------------------------------------
Lilly Industries, Inc. received interim approval from the U.S.
Bankruptcy Court for the Central District of California to use cash
collateral.
The interim order signed by Judge Theodor Albert authorized the
company to use cash collateral for the period from Feb. 3 to March
5 in accordance with its budget.
As protection for the use of its cash collateral, the U.S. Small
Business Administration was granted a replacement lien on all
post-petition revenues of the company.
In addition, the SBA will receive a monthly payment of $5,129.
A final hearing will be held on March 5.
About Lilly Industries Inc.
Lilly Industries, Inc. (doing business as The Slab Studio) is a
trade-only gallery that offers architects, contractors, dealers,
and designers access to the finest natural stone and semi-precious
slabs, ensuring a sophisticated, one-of-a-kind viewing experience.
With discerning standards and a global reach, they act as a trusted
partner for those seeking premium materials for high-end design
projects.
Lilly Industries filed Chapter 11 petition (Bankr. C.D. Calif. Case
No. 25-10301) on February 3, 2025, listing between $500,001 and $1
million in assets and between $1 million and $10 million in
liabilities. Josiah Lilly, president of Lilly Industries, signed
the petition.
Judge Theodor Albert oversees the case.
The Debtor is represented by Brian M. Rothschild, Esq., at Parsons
Behle & Latimer.
LPB MHC: Unsecured Creditors to Get Share of Income for 5 Years
---------------------------------------------------------------
LPB MHC, LLC d/b/a Sam C. Mitchell and Associates filed with the
U.S. Bankruptcy Court for the Southern District of Illinois a First
Subchapter V Plan of Reorganization dated February 3, 2025.
The Debtor operates a law firm that is focused on personal injury
litigation. The firm is comprised of two principal attorneys, Lance
Brown and Matthew Caraway.
Prior to the filing of Debtor's bankruptcy case, Farmers State Bank
of Alto Pass ("FSB") filed a state court lawsuit in Williamson
County, Illinois (the "State Court Case"), seeking extraordinary
injunctive relief that would enable FSB to immediately enforce its
alleged security interest against the property of Debtor to the
detriment of all of Debtor's stakeholders. That alleged security
interest arises as a part of a loan issued by FSB to Brandon
Zanotti, a former partner of Debtor who was issued the loan as a
part of his equity purchase to join Debtor's business and who
served on the board of FSB.
The full scope of consequences of Mr. Zanotti's crimes and misdeeds
remains to be seen, however, promptly after Mr. Zanotti defaulted
on the loan, FSB sought to enforce a security agreement against
Debtor that allegedly pledged receivables and cash. Debtor believes
valid defenses to this action may exist and continues to
investigate such defenses. Debtor filed for bankruptcy to preserve
its ability to operate its business in the face of the State Court
Case and to stop immediate collection efforts by FSB.
The Debtor is now addressing its financial situation as a whole and
Debtor felt that a Chapter 11 reorganization was the best business
decision for its long-term future. Through this bankruptcy, Debtor
hopes to stabilize operations and formulate a plan of
reorganization that will maximize benefit of creditors.
The Debtor has scheduled Disputed Claims and undisputed Claims in
the amount of $2,659,278.30 Secured, $0.00 Priority, and
$275,000.00 General Unsecured. The claims register in Debtor's Case
reports the following Claims filed: $2,722,828.06 Secured, $186.33
Priority, and $74,085.41 General Unsecured.
This Plan provides for one class of Secured Claims; one Class of
Priority Claims; two Classes of Unsecured Claims; and two Class of
Interests. This Plan also provides for the payment of
Administrative Expense Claims and Priority Tax Claims.
Class 3 –General Unsecured Claims. Unsecured Claims are not
secured by Estate Property and are not entitled to priority. As
further outlined in the procedure set forth in Article VII, the
holders of Allowed General Unsecured Claims will receive their Pro
Rata share of Excess Monthly Income on the first day of the month
after Class 1 Claims are paid in full, and quarterly thereafter for
five years or the holders of Allowed Class 3 Claims are paid in
full, whichever is shorter. General Unsecured Claims in Class 3 are
Impaired.
Class 4 consists of Disputed Unsecured Claims of BJZ Law, LLC and
Brandon Zanotti. Brandon Zanotti and BJZ Law, LLC are holders of
Disputed Unsecured Claims. The amount of Brandon Zanotti and BJZ
Law, LLC's Allowed Unsecured Claims shall be determined by order of
the Court in the Zanotti Adversary, agreement of Debtor and Brandon
Zanotti and BJZ Law, LLC, or through further order of the Court,
less any payments by the Debtor that have been made since the
Petition Date (the "Zanotti Resolved Claim Amount").
The Debtor shall make payments to Brandon Zanotti and BJZ Law, LLC
for the full amount of the Zanotti Resolved Claim Amount over the
Plan Period in equal monthly payments. In the interim period prior
to the determination of the Zanotti Resolved Claim Amount, Farmers
State Bank shall make no payments based on an estimated value of
Brandon Zanotti and BJZ Law, LLC's claim of $0.00. Beginning on the
first business day of the month following a final determination of
the Zanotti Resolved Claim Amount, Debtor shall pay the Resolved
Claim Amount without interest through equal monthly payments until
a date that is five years from the Effective Date or such earlier
date upon which the Resolved Claim Amount is paid in full.
Class 6 consists of all Allowed Interests in Debtor. All Class 6
Allowed Interests will be retained on the Effective Date and
therefore are unimpaired under the Plan.
All of Debtor's Excess Monthly Income will be used to fund the
Plan.
A full-text copy of the First Subchapter V Plan dated February 3,
2025 is available at https://urlcurt.com/u?l=aP7RW1 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Robert E. Eggman, Esq.
Thomas H. Riske, Esq.
Carmody MacDonald P.C.
12 S. Central Ave., Suite 1800
St. Louis, MO 63105
Telephone: (314) 854-8600
Facsimile: (314) 854-8600
Email: ree@carmodymacdonald.com
About LPB MHC
LPB MHC, LLC, doing business as Sam C. Mitchell and Associates,
operates a law firm that is focused on personal injury litigation.
The Debtor filed Chapter 11 petition (Bankr. S.D. Ill. Case No.
24-40450) on November 5, 2024, with up to $10 million in both
assets and liabilities. Lance P. Brown, managing member, signed the
petition.
Judge Mary E. Lopinot oversees the case.
Robert Eggmann, Esq., is the Debtor's legal counsel.
LSCS HOLDINGS: S&P Rates New $108MM Revolving Credit Facility 'B-'
------------------------------------------------------------------
S&P Global Ratings assigned its 'B-' issue-level rating to LSCS
Holdings Inc.'s proposed $108 million revolving credit facility and
$950 million first-lien term loan. The recovery rating is '3',
reflecting S&P's expectation for meaningful (50%-70%; rounded
estimate: 50%) recovery in the event of a default. The proposed
refinancing also includes a new $170 million second-lien term loan
(not rated) with payment-in-kind (PIK) interest. As part of this
transaction, LSCS will benefit from lower cash interest expense and
an extended maturity runway.
S&P said, "Our existing 'B-' issuer credit rating and stable
outlook are unaffected by the transaction and continue to reflect
our expectation that the company's financial-sponsor ownership and
aggressive financial policy will keep leverage high. Specifically,
we forecast its S&P Global Ratings-adjusted leverage will remain
over 7x in the near term as ballooning second-lien debt offsets the
impact from incremental EBITDA growth. We also forecast stable
EBITDA margins of 17%-18% and modest free operating cash flow
generation in 2025 as the environment for pharmaceutical
outsourcing stabilizes and the company benefits from recent
cost-reduction initiatives."
Issue Ratings--Recovery Analysis
Key analytical factors:
-- The proposed capital structure comprises a $108 million
first-lien revolver, $175 million accounts receivables facility,
$950 million first-lien term loan, and $170 million second-lien
term loan (not rated).
-- The obligations under the credit agreement are secured by all
the material assets of the borrowers and the guarantors, including
a pledge of all the capital stock of all wholly owned domestic
subsidiaries and 65% of the capital stock of foreign subsidiaries.
-- S&P's simulated default scenario contemplates a default
occurring in 2027 stemming from greater-than-expected competition
and a covenant breach.
-- S&P valued the company on a going-concern basis using a 5.5x
multiple of its projected emergence EBITDA, which is consistent
with the multiples S&P uses for similar companies.
Simulated default assumptions:
-- Simulated year of default: 2027
-- EBITDA at emergence: $125 million
-- EBITDA multiple: 5.5x
Simplified waterfall:
-- Net emergence value (after 5% administrative costs): $654
million
-- Valuation split (obligors/nonobligors): 96%/4%
-- Total value available to first-lien lenders: $539 million
-- First-lien debt at default: $1,058 million
--Recovery expectations: 50%-70% (rounded estimate: 50%)
Note: All debt amounts include six months of prepetition interest
LUXY HOLDINGS: Sec. 341(a) Meeting of Creditors on March 5
----------------------------------------------------------
On February 3, 2025, Luxy Holdings LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Northern District of Georgia.
According to court filing, the Debtor reports between $500,000
and $1 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 5,
2025 at 02:00 PM via Telephone conference. To attend, Dial
888-902-9750 and enter participation code 9635734.
About Luxy Holdings LLC
Luxy Holdings LLC is a limited liability company.
Luxy Holdings LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-51134) on February 3,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $500,000 and $1 million each.
M.P. PRODUCTIONS: Gets Interim OK to Use Cash Collateral
--------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Arkansas
issued an interim order allowing M.P. Productions, LLC to use its
secured lenders' cash collateral.
The secured lenders are First Horizon Bank, Xtra Lease and the U.S.
Small Business Administration. These lenders assert liens on M.P.
Productions' personal property.
As protection for the use of their cash collateral, the lenders
were granted replacement liens and security interests co-extensive
with their pre-bankruptcy liens.
As additional protection, the SBA will receive a monthly payment of
$995, beginning 30 days after Feb. 6.
The interim order will become final if no objections are filed. If
M.P. Productions receives an objection, a court hearing will be
held on March 5.
First Horizon Bank can be reached through its counsel:
Harry S. Hurst, Jr., Esq.
Hurst Burnett, PLC
P.O. Box 1149
Jonesboro, AR 72403
(870) 268-7602 phone
(870) 268-7607 fax
hhurst@hbfirm.net
About MP Productions LLC
MP Productions, LLC is a Little Rock, Arkansas-based live event
production company that provides turnkey production and convention
services, specializing in corporate events, sales meetings, and
national conventions. Operating from its facility at 6700 Allied
Way in Little Rock, the company offers comprehensive event services
including pre-production planning, on-site production management,
and post-production services.
MP Productions filed Chapter 11 petition (Bankr. E.D. Ark. Case No.
25-10158) on January 17, 2025. In its petition, the Debtor reported
total assets of $490,000 and total liabilities of $2,716,467.
Judge Bianca M. Rucker handles the case.
The Debtor is represented by Kevin P. Keech, Esq., at Keech Law
Firm, PA.
MEDIMPACT HOLDINGS: S&P Withdraws 'B+' ICR Following Refinancing
----------------------------------------------------------------
S&P Global Ratings withdrew its 'B+' ratings on MedImpact Holdings
Inc. following a refinancing transaction and full repayment of the
$95 million outstanding revolving credit facility, $238 million
outstanding term loan A, and $546 million outstanding term loan B
issued by subsidiary MI OpCo Holdings Inc. The outlook was stable
at the time of the withdrawal.
MIAMI-DADE COUNTY IDA: Moody's Ups Rating on 2015A Rev. Bonds to B1
-------------------------------------------------------------------
Moody's Ratings has upgraded to B1 from B2 the rating on the
outstanding $50.1 million Miami-Dade County Industrial Development
Authority, FL's Industrial Development Rev. Bonds, (NCCD - Biscayne
Properties LLC Project) Series 2015A. The outlook has been revised
to stable from positive.
This upgrade is driven by improved debt service coverage (DSC) of
1.14x in fiscal 2024, strong occupancy and modest rental increases
which will continue despite the growing options of additional new
student housing projects. The project is located on the Biscayne
Bay campus of Florida International University (FIU, Aa2 stable)
and is the only housing available on the campus.
RATINGS RATIONALE
The B1 rating reflects that the project will maintain a solid debt
service coverage going forward, supported by healthy rental
revenues, continued strong occupancy and satisfactory rental rate
growth. FY24 DSC of 1.14x marks the second consecutive year of
improved DSC, resulting from strong and stable occupancy (currently
95%) and modest rental revenue increases averaging 2.5% year of
year.
Bayview Student Living at FIU is the only student housing available
on FIUs Biscayne Bay Campus (BBC) and enjoys a favorable
relationship with the university, which plays an integral role in
supporting the project. This includes the referral of students to
the project, its inclusion in all marketing materials for housing,
FIU's payment of subordinated utilities and the provision of
security and free transportation to its main campus located
approximately 30 miles away.
RATING OUTLOOK
The outlook is stable. The project's strength in occupancy and
modest rental rate increases and fully funded reserves will support
its ability to meet expenses, including debt service, despite
potential near term inflationary and competitive pressures.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
-- Sustained increase in the projects debt service coverage
levels
-- Sustained strong occupancy and rent levels
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
-- Decline of debt service coverage levels below 1x
-- Deterioration in revenue necessitating withdrawals from the DSR
fund
LEGAL SECURITY
The bonds are special limited obligations of the issuer and are
secured by a leasehold mortgage, pledged revenues of the project
and other funds held with the Trustee and do not constitute
obligations of either Florida International University or the bond
issuer. The obligations are secured by payments made under the Loan
Agreement, a leasehold deed of trust, and amounts held by the
Trustee under the Indenture.
PROFILE
The Obligor and Owner, NCCD - Biscayne Properties LLC, is a single
member limited liability company organized and existing under the
laws of the State of Tennessee. The sole member of the Obligor is
National Campus Community Development Corporation, a 501(c)(3)
Texas non-profit corporation.
METHODOLOGY
The principal methodology used in this rating was Global Housing
Projects published in August 2024.
MOMENTUM CONSULTING: Revenues & Litigation Proceeds to Fund Plan
----------------------------------------------------------------
Momentum Consulting LLC filed with the U.S. Bankruptcy Court for
the Northern District of New York a Plan of Reorganization for
Small Business under Subchapter V dated February 3, 2025.
The Debtor is a Limited Liability Company duly formed under the
laws of the State of New York. The Debtor is operated and managed
by its Sole and Managing Member, Mr. Ben McLellan.
The Debtor is a business consulting company with its principal
place of business located at Mr. McLellan's homestead, 18 Shultes
Road, Greenville, NY 12083. The Debtor operates no brick and mortar
locations as the services it provides are all conducted virtually
with its clients. The Debtor was formed on January 15, 2020, and
provides business consulting services under its d/b/a, Ethical
Scaling, focusing on client experience consulting in a variety of
industries.
In 2024, Mr. McLellan was approached to be an investor in a
litigation funding group. After conducting due diligence, Mr.
McLellan utilized Debtor and personal resources to fund into the
investment. Mr. McLellan and the Debtor remain optimistic that the
investment will fund; however, due to the delay, Debtor faced a
cash crunch in maintaining its general unsecured debts and its
business overhead.
Given the relative size of Debtor's operations coupled with its
limited resources, Debtor determined that Bankruptcy protection
would most effectively allow it to consolidate its efforts to
maintain overhead while adjusting its debt loads to a manageable
level in order to continue operations.
The Debtor's goal in this reorganization is to: (a) provide a 100%
dividend to all of its Creditors upon successful recoupment of the
litigation financing proceeds; and (b) provide monthly
distributions to its Creditors while pursuing same.
Creditors who are entitled to payment will be paid as an ongoing
concern over the five-year plan term. The Plan shall be funded from
ongoing revenues derived by the Debtor's ongoing business
operations.
The final Plan payment is expected to be paid 60-months from date
of Confirmation. Debtor reserves the right to pre-pay its
bankruptcy plan at 100% based upon recovery of the litigation
funding proceeds.
Class 5 claims shall be treated as wholly unsecured and shall
receive a general unsecured distribution. If allowed, shall receive
their pro rata share of $272,410.19 with a distribution of no less
than 100%. Disputed Claims that have failed to file a claim will
receive no distribution.
General Unsecured Creditors shall be paid in full upon successful
recovery of litigation funding proceeds. Debtor shall make ongoing
payments based on available cashflow to General Unsecured Creditors
until such time as litigation funding proceeds have been recovered.
Estimated Monthly Payment to Class 3 Creditors shall be $1336.00
per month.
Class 4 consists of Equity Interest holder Ben McLellan who shall
retain 100% of the membership interest in the reorganized Debtor.
Mr. McLellan shall waive any claim held by himself personally
against the Debtor.
The Plan will be implemented by the Debtor remitting payment to
creditors as provided for herein from the Debtor's cash flow as
well as ongoing capital contributions (as necessary) from the
Debtor's membership.
A full-text copy of the Plan of Reorganization dated February 3,
2025 is available at https://urlcurt.com/u?l=EV3aQs from
PacerMonitor.com at no charge.
About Momentum Consulting
Momentum Consulting, LLC, sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 24-11236) on
November 5, 2024, with up to $1 million in both assets and
liabilities. Mark Schlant, Esq., at Zdarsky, Sawicki & Agostinelli,
LLP serves as Subchapter V trustee.
Judge Robert E. Littlefield, Jr., oversees the case.
The Debtor is represented by:
Michael Leo Boyle, Esq.
Boyle Legal, LLC
Tel: 518-407-3121
Email: mike@boylebankruptcy.com
MPGF INC: Court OKs Deal to Use Cash Collateral of HPJ
------------------------------------------------------
The U.S. Bankruptcy Court for the District of Minnesota approved a
stipulation between MPGF, Inc. and its landlord, HPJ, LLC.
Under the stipulation, the companies agreed that based on their
security agreement, the
landlord holds a secured interest in MPGF's cash collateral. HPJ
also consented to MGPF's use of cash collateral for payment of the
expenses set forth in MPGF's budget.
As protection for the use of its cash collateral, HPJ was granted
replacement liens on the company's post-petition assets, with the
same priority, dignity, and effect as its pre-bankruptcy liens.
About MPGF Inc.
MPGF, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Minn. Case No. 24-42399) on September 5,
2024, with $50,001 to $100,000 in assets and $100,001 to $500,000
in liabilities.
Judge William J. Fisher oversees the case.
Ronald J. Walsh, Esq., at Walsh Law represents the Debtor as
bankruptcy counsel.
HPJ, LLC, as landlord, is represented by Erik A. Ahlgren, Esq., at
Ahlgren Law Office, PLLC.
MULTIBAND FIELD: Seeks Chapter 11 Bankruptcy Protection in Texas
----------------------------------------------------------------
On February 11, 2025, Multiband Field Services Inc. filed Chapter
11 protection in the U.S. Bankruptcy Court for the Northern
District of Texas.
According to court filing, the Debtor reports between $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Multiband Field Services Inc.
Multiband Field Services Inc. specializes in providing a wide range
of field services to various industries. Their offerings are
tailored to meet the specific needs of each client, ensuring timely
and reliable service.
Multiband Field Services Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-30515) on
February 11, 2025. In its petition, the Debtor reports estimated
assets between $1 million and $10 million and estimated liabilities
between $10 million and $50 million.
The Debtor is represented by:
Davor Rukavina, Esq.
MUNSCH HARDT KOPF & HARR, P.C.
500 N. Akard St., Ste. 4000
Dallas, TX 75201
Tel: 214-855-7500
E-mail: drukavina@munsch.com
NEUROONE MEDICAL: Reports $1.79 Million Net Income for Q1 2025
--------------------------------------------------------------
NeuroOne Medical Technologies Corporation filed its Quarterly
Report on Form 10-Q with the Securities and Exchange Commission,
revealing a net income of $1.79 million on product revenue of $3.27
million for the three months ending Dec. 31, 2024. This marks a
significant improvement compared to the net loss of $3.34 million
on product revenue of $977,649 for the same period in 2023.
As of Dec. 31, 2024, the Company had $6.49 million in total assets,
$3.56 million in total liabilities, and $2.94 million in total
stockholders' equity.
NeuroOne stated, "The Company has incurred losses since inception,
negative cash flows from operations since inception, and an
accumulated deficit of $73.2 million as of December 31, 2024. To
date, the Company's revenues have not been sufficient to cover its
full operating costs, and as such, it has been dependent on funding
operations through the issuance of debt and sale of equity
securities. The Company has adequate liquidity to fund its
operations through April 2025. The raising of additional funds is
not solely within the control of the Company. These factors raise
substantial doubt about the Company's ability to continue as a
going concern.
"If the Company is unable to raise additional funds, or the
Company's anticipated operating results are not achieved,
management believes planned expenditures may need to be reduced to
extend the time period that existing resources can fund the
Company's operations. The Company intends to fund ongoing
activities by utilizing its current cash and cash equivalents on
hand, from product and license revenue and by raising additional
capital through equity or debt financings. If management is unable
to obtain the necessary capital, it may have a material adverse
effect on the operations of the Company and the development of its
technology, or the Company may have to cease operations
altogether."
The full text of the Form 10-Q is available at no cost at:
https://www.sec.gov/Archives/edgar/data/1500198/000121390025012511/ea0230295-10q_neuroone.htm
About NeuroOne Medical Technologies
Headquartered in Eden Prairie, MN, NeuroOne Medical Technologies
Corporation -- nmtc1.com -- is a medical technology company focused
on (i) diagnostic, ablation and deep brain stimulation technology
for brain related conditions such as epilepsy and Parkinson's
disease; (ii) ablation and stimulation for pain management
throughout the body; and (iii) drug delivery including diagnostic
and stimulation capabilities. The Company is developing and
commercializing thin film electrode technology for continuous
electroencephalogram ("cEEG") and stereoelectrocencephalography
("sEEG"), spinal cord stimulation, brain stimulation, drug delivery
and ablation solutions for patients suffering from epilepsy,
Parkinson's disease, dystonia, essential tremors, chronic pain due
to failed back surgeries and other pain-related neurological
disorders. The Company is also developing the capability to use
its sEEG electrode technology to deliver drugs or gene therapy
while being able to record brain activity before, during, and after
delivery. Additionally, the Company is investigating the potential
applications of its technology associated with artificial
intelligence.
Minneapolis, Minnesota-based Baker Tilly US, LLP, the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated Dec. 17, 2024, citing that the Company had recurring
losses from operations and an accumulated deficit, expects to incur
losses for the foreseeable future, and requires additional working
capital. These are the reasons that raise substantial doubt about
the Company's ability to continue as a going concern.
The Company incurred at net loss of $12.32 million for the year
ended Sept. 30, 2024, compared to a net loss of $11.86 million for
the year ending Sept. 30, 2023. As of Sept. 30, 2024, the Company
had an accumulated deficit of $75.0 million primarily as a result
of expenses incurred in connection with its operations and from its
research and development programs.
NEW JERSEY ORTHOPAEDIC: Seeks Chapter 11 Bankruptcy Protection
--------------------------------------------------------------
On February 10, 2025, New Jersey Orthopaedic Institute LLC filed
Chapter 11 protection in the U.S. Bankruptcy Court for
the District of New Jersey.
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 New Jersey Orthopaedic Institute LLC
New Jersey Orthopaedic Institute LLC 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.
New Jersey Orthopaedic Institute LLC sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. N.J. Case No. 25-11370) on
February 10, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge John K. Sherwood handles the case.
The Debtor is represented by:
Stephen B. Ravin, Esq.
SAUL EWING LLP
1037 Raymond Blvd.
Suite 1520
Newark, NJ 07102
Tel: (973) 286-6714
Email: stephen.ravin@saul.com
NEWFOLD DIGITAL: S&P Cuts ICR to 'CCC+', On Watch Negative
----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Newfold
Digital Holdings Group Inc. to 'CCC+' from 'B-' and placed the
rating on CreditWatch with negative implications. At the same time,
S&P lowered its issue-level rating on the company's first-lien term
loan to 'CCC+' from 'B-' and its issue-level rating on its
unsecured notes to 'CCC-' from 'CCC'. S&P's '3' recovery rating on
the term loan and '6' recovery rating on the unsecured notes are
unchanged.
The CreditWatch negative placement indicates there is at least a
50% chance S&P will lower its rating on Newfold in the next 90 days
if it is unable to refinance the revolver because it believes this
would indicate a higher likelihood of default over the subsequent
12 months.
S&P said, "The 'CCC+' rating reflects our belief that Newfold's
less than adequate liquidity renders it vulnerable and dependent on
favorable business, financial, and economic conditions to meet its
financial commitments. We view the company's liquidity as less than
adequate, which incorporates the $223 million of outstanding
borrowings on its revolving credit facility as of Sept. 30, 2024,
which will come due when the facility matures on Feb. 10, 2026.
Because Newfold has insufficient cash to cover the maturity, it
will need to refinance or extend this obligation to avoid a
default. We believe it could be difficult for the company to
refinance its revolver on satisfactory terms due to its weak
performance in 2024, which was characterized by increased
competition, higher customer acquisition costs, and underperforming
growth initiatives. In addition, Newfold's cash flow weakened in
2024 because of higher interest expense from a leveraging dividend
in late 2023 and higher base rates on its $2.5 billion of unhedged
floating-rate debt. The company's leverage also remains high at
about 7x. Furthermore, the distressed-like trading prices of
Newfold's debt could complicate its access to the debt markets and
challenge its ability to execute a successful refinancing.
"The CreditWatch negative placement reflects the risk of a
downgrade if Newfold fails to address the revolver maturity over
the next few months. We believe the company will generate positive
free cash flow in 2025 and beyond as interest rates decline.
Newfold also has a long history of generating relatively stable
subscription-based revenue and is still one of the largest players
in its market. We believe the company could extend the maturity of
its revolver if it demonstrates good operating performance over the
fourth quarter of 2024 and first quarter of 2025 and presents a
credible operating plan that improves its lenders' confidence
regarding its revenue and EBITDA growth trajectory. However, if
Newfold is unable to refinance its revolver over the next few
months, we could lower our rating because this would indicate a
high likelihood of a default or subpar debt exchange over the
subsequent 12 months.
"The CreditWatch listing signals the potential we will lower our
rating on Newfold by at least one notch if it fails to successfully
refinance or extend its revolving credit facility over the next 90
days in a manner that we do not view as less than the original
promise and tantamount to a default.
"We will resolve the CreditWatch based on Newfold's progress, or
lack thereof, toward extending or refinancing its revolving credit
facility, our assessment of its upcoming quarterly financial
results, and our expectations for its future growth prospects. We
intend to resolve the CreditWatch listing in the next 90 days."
NOVA LIFESTYLE: Enters Deal to Sell 250K Shares to Huge Energy
--------------------------------------------------------------
Nova LifeStyle, Inc., has entered into a securities purchase
agreement with Huge Energy International Limited, located at Wing
Lok St, Sheung Wan, Hong Kong, as the buyer. Under the Agreement,
the Company will sell 250,000 shares of its common stock, with a
par value of $0.001 per share, to the Purchaser in a private
placement. The purchase price is set at $0.60 per share, totaling
$150,000. This Private Placement will be conducted in accordance
with the exemption from registration under Regulation S of the
Securities Act of 1933, as amended.
About Nova Lifestyle
Headquartered in Commerce, Calif., Nova LifeStyle, Inc. is a
distributor of contemporary styled residential and commercial
furniture incorporated into a dynamic marketing and sales platform
offering retail as well as online selection and global purchase
fulfillment. The Company monitors popular trends and products to
create design elements that are then integrated into the Company's
product lines that can be used as both stand-alone or whole-room
and home furnishing solutions. Through its global network of
retailers, e-commerce platforms, stagers, and hospitality
providers, Nova LifeStyle also sells (through an exclusive
third-party manufacturing partner) a managed variety of
high-quality bedding foundation components.
San Mateo, Calif.-based WWC, P.C., the Company's auditor since
2022, issued a "going concern" qualification in its report dated
April 12, 2024, citing that the Company incurred net losses of
$7.72 million and $17.10 million for the years ended Dec. 31, 2023
and 2022, and the accumulated deficit increased from $36.71 million
to $44.43 million from 2022 to 2023. These factors raise
substantial doubt about the Company's ability to continue as a
going concern.
"Continuation as a going concern is dependent upon the ability of
the Company to obtain the necessary financing to meet its
obligations and pay its liabilities arising from normal business
operations when they come due and ultimately upon its ability to
achieve profitable operations. The outcome of these matters cannot
be predicted with any certainty at this time and raises substantial
doubt that the Company will be able to continue as a going
concern," stated Nova Lifestyle in its Annual Report for the year
ended Dec. 31, 2023.
NOVELIS HOLDINGS: Moody's Rates New $1.25BB Secured Term Loan 'Ba1'
-------------------------------------------------------------------
Moody's Ratings assigned a Ba1 rating to the proposed $1.25 billion
backed senior secured term loan B (TLB) due 2032 issued by Novelis
Holdings Inc., a wholly-owned subsidiary of Novelis Inc. (Novelis).
Proceeds from the new loan will be used to refinance existing term
loans (unrated) and for general corporate purposes including
transaction related fees and expenses. At the same time, Moody's
affirmed Novelis' corporate family rating of Ba2, Probability of
Default Rating of Ba2-PD and the Ba3 ratings of backed senior
unsecured notes of Novelis Corporation and Novelis Sheet Ingot
GmbH. Novelis' speculative grade liquidity rating remains SGL-3.
The outlook remains negative for Novelis, Novelis Corporation and
Novelis Sheet Ingot GmbH. Moody's assigned a negative outlook for
Novelis Holdings Inc.
The assigned rating remains subject to Moody's review of the final
terms and conditions of the proposed financing.
RATINGS RATIONALE
Novelis' Ba2 CFR reflects the company's large scale and significant
market position in the number of end markets including can
packaging where it enjoys a leading market share. The rating
considers the company's broad geographic footprint with operations
in North and South America, Europe and Asia. The rating also
factors in the company's ability to generate significant operating
cash flow and expectations that the recently completed and
commissioning projects could support growth in earnings and cash
flows in the next 2-3 years.
At the same time, the rating incorporates a certain degree of
inherent industry and business volatility. Novelis' credit metrics
had previously been strong for its Ba2 CFR. However, a significant
increase in the Bay Minette project capex which created the need
for more debt, higher scrap prices and the near-term demand
uncertainty from the automotive and specialty markets in certain
regions will likely erase this cushion, which could lead to the
downgrade of the ratings.
In February, 2024, Novelis updated the estimated capital cost to
build the new greenfield rolling and recycling plant in Bay
Minette, Alabama with the initial capacity of 600kt to $4.1
billion, including contingency, from $2.5 billion. The project
completion timeline was also extended to the second half of
calendar year 2026 (FY2027) from FY2026 previously announced.
According to the company, with a high level of project engineering
complete and all key equipment and the majority of materials
contracted, management is confident that the project will be
completed within the new parameters.
In the LTM ended September 30, 2024, Novelis generated about $1.7
billion in Moody's-adjusted EBITDA, and leverage rose incrementally
to 3.7x from 3.5x in FY2024 (March-end). Free cash flow (after
dividends to Hindalco) in the LTM was modestly negative at $135
million, as higher capex exceeded cash flow from operations. In
fiscal Q3 ending December 31, 2024, the company reported that its
adjusted EBITDA declined 19% year-over-year to $367 million
primarily because of higher aluminum scrap prices and unfavorable
product mix. Moody's estimate that Novelis will generate about $1.8
billion in Moody's-adjusted EBITDA in FY2025 and $1.8-1.9 billion
in FY2026. Moody's also expect Novelis to be significantly free
cash flow negative in FY2025-27.
Moody's anticipate that Novelis will need to raise more debt in
FY2025-26 to help fund its growth capex and to maintain the
adequate cash levels on the balance sheet. Under this base case
scenario and considering the projected modest earnings growth and
higher gross debt, Moody's-adjusted Debt/EBITDA, will likely
increase to 4.2-4.5x by the end of FY2026 (March 2026). Moody's
leverage estimate excludes the company's factored trade receivables
outstanding, which Novelis stopped disclosing in FY2023. Despite
the lack of disclosures, Moody's consider these arrangements to be
debt like.
The negative outlook reflects Moody's expectations that as a result
of high capex spending, demand headwinds in certain end markets and
regions, lower projected profitability and higher forecast debt
levels, Novelis's credit metrics will deteriorate in the next 12-18
months and will be weak for the current rating.
Novelis has an adequate liquidity position (SGL-3) supported by its
$791 million cash position as of December 31, 2024, and $790
million available under its $2 billion senior secured asset-based
revolving credit facility (ABL) maturing in August 2027 (unrated),
which is subject to certain springing requirements concerning
timing of repayment of the term loan and other debt facilities. The
ABL is secured by accounts receivable and inventory. If, at any
time, the availability under the ABL is less than the greater of
(a) $150 million and (b) 10% of the lesser of the facility
commitment or the borrowing base, the company will be required to
maintain a minimum fixed charge coverage of at least 1.25x.
Availability is viewed as remaining sufficient such that this will
not be tested.
The Ba1 rating of the proposed senior secured TLB, one notch above
the CFR, reflect their secondary position behind the ABL facility
and its priority position with respect to the senior unsecured
notes. The new TLB will be guaranteed by the company's direct
parent, Novelis Inc., its parent company AV Minerals (Netherlands)
N.V. (subject to release in the event of a Novelis Inc. IPO) and
their current and future wholly owned restricted subsidiaries,
subject to exceptions. The TLB will have a first priority security
interest in substantially all material PPE and intellectual
property of the borrower and each subsidiary guarantor (other than
guarantors organized in Brazil and UAE) and equity interests in
material subsidiaries, as well as a second priority security
interest on the ABL priority collateral. In addition, the equity
interests in Novelis Inc. are pledged by its direct parent. The
subsidiary guarantors account for about 80-85% of Novelis Inc.' net
sales, EBITDA and assets. The TLB will not have any financial
covenants. In addition, the company has short-term credit
facilities in Korea, Brazil and China to support operations in
these countries.
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 $1.95 billion and 100% of LTM
EBITDA, plus unlimited amounts subject to 3.25x senior secured net
leverage ratio, with an inside maturity sublimit up to the greater
of $975 million and 50% of LTM EBITDA. A "blocker" provision
restricts the transfer of material intellectual property to
unrestricted subsidiaries and to subsidiaries that are not loan
parties. The credit agreement provides some limitations on
up-tiering transactions, requiring 100% lender consent for
amendments that subordinate the debt in right of payment,
contractually, structurally or otherwise, or liens unless such
lenders can ratably participate in such priming debt on
substantially the same terms and economics.
The Ba3 rating on the existing senior unsecured notes reflects
their effective subordination to the significant amount of secured
debt under the term loans, the ABL and priority payables. The notes
have a downstream guarantee from Novelis Inc. and are guaranteed by
all of Novelis' existing and future US restricted subsidiaries,
certain existing Canadian and other non-US foreign restricted
subsidiaries.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's would consider an upgrade of Novelis Inc.'s credit ratings
if the company completes the development of the Bay Minette project
as planned. Quantitatively, an upgrade would be considered of
leverage (adjusted debt/EBITDA) improves to and is sustained below
3x, adjusted EBIT margin is sustained above 8%,
(CFO-Dividends)/Debt is sustained above 30% and free cash remains
positive on a sustained basis.
Novelis' ratings could be downgraded if liquidity, measured as cash
plus ABL availability, evidences a material deterioration, if
company makes substantial debt-financed acquisitions, issues
material amount of new debt, further increases its capex spending
or if shareholder returns meaningfully exceed the capital
allocation framework targets established by Hindalco Industries
Limited, the ultimate parent company of Novelis Inc. Expectations
of significant production rate cuts by the company or its
customers, reduced profitability or an extended slump in the
end-markets served could lead to negative pressure on the ratings.
Quantitatively, ratings could be downgraded if the adjusted EBIT
margin is expected to be sustained below 5% or (Cash flow from
operations less dividends)/debt is sustained below 15% and
leverage, measured as debt/EBITDA ratio, is expected to be
sustained above 4x.
Headquartered in Atlanta, Georgia, Novelis is the world's largest
producer of aluminum rolled products. The company operates through
four regional segments, North America, Europe, Asia and South
America. While Novelis sells into a number of end markets, the
company generates nearly 60% of sales in the can sheet market.
Novelis generated approximately $16.6 billion in revenues for the
twelve months ended December 31, 2024. Novelis is ultimately owned
by Hindalco Industries Limited (unrated) domiciled in India.
The principal methodology used in these ratings was Steel published
in November 2021.
NOVEMBER 26: Seeks to Sell German Subsidiary
--------------------------------------------
November 26 Inc. f/k/a Biolase, Inc., and its Debtor affiliates,
seek permission from the U.S. Bankruptcy Court for the District of
Delaware to sell its interests of its wholly-owned German
subsidiary Biolase Europe, GmbH, free and clear of all liens,
claims, liabilities, interests, pledges, and encumbrances.
The Debtors were global market leaders in the manufacturing and
marketing of dental laser systems. The Debtors' proprietary systems
allowed 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. The Debtors were
also developing a business-to-consumer line of business related to
cosmetic and pain therapy devices.
The Debtors hire The Benchmark Company, LLC on a non-exclusive
basis to sell, consolidate, or merge their
business interests with a prospective buyer. Benchmark contacted
twenty-six interested parties regarding the opportunity.
The Debtors also employ four additional investment bankers, all on
a nonexclusive basis, to assist with identifying additional
potential buyers.
Additionally, the Debtors engages SSG Advisors, LLC to provide
prepetition investment banking services.
GmbH was formed under German law in December 2001 and the Debtor
owns 100% of GmbH, which was formed to assist with the development
and marketing of the Biolase laser technology in Europe. GmbH had
hoped to expand the sale of the Debtors' products in the European
market, but GmbH suffered from the same liquidity and challenged
operational needs as the Debtors.
GmbH holds tangible assets, including some cash, inventory
(finished goods and raw materials), accounts receivable, and real
estate. Following the Sale, GmbH essentially stopped operating
because it could not sell its products without a license to the
Biolase, Inc., intellectual property. Since GmbH has no other
source of income and limited available cash, the entity is destined
for liquidation if it cannot be sold.
The Debtors seek to solicit higher or better bids as long as any
competing bid is at least least $25,000 above the purchase price
in the purchase agreement. The Debtors will also conduct an auction
to determine the highest and best bid for the equity interest in
the GmbH.
The Debtors believe the only party with a lien on or security
interest in the equity interest in GmbH is SWK Funding LLC, and the
DIP Lender consents to the proposed Share Sale.
The Debtors determine that they need to liquidate their equity
interest in GmbH because both the Debtors and GmbH lack resources
to continue to finance GmbH’s operations and, without adequate
funding, GmbH would be forced into a German insolvency proceeding
and the value of the Debtors’ interest in GmbH likely would be
lost.
The Share Sale will provide liquidity to the Debtors’ estates and
result in an enhanced recovery to creditors. In total, the Debtors
expect to receive $75,000 in cash proceeds from the Share Sale.
With this additional liquidity from the proceeds from the Share
Sale, the Debtors will be better positioned to fund their
controlled wind down.
While the terms of the Share Sale represent the highest and best
offer received thus far for GmbH, the Debtors will also welcome any
overbids of at least $25,000 above the purchase price in the SPA,
and in the event any such bids are received before entry of an
order approving this Motion, the Debtors will conduct an auction to
determine the highest and best bid.
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.
NOVO INTEGRATED: Extends CEO Resignation Date to Feb. 20, 2025
--------------------------------------------------------------
Novo Integrated Sciences, Inc., filed a Form 8-K with the
Securities and Exchange Commission, announcing that it had agreed
to extend the effective date of Robert Mattacchione's resignation
as chief executive officer to Feb. 20, 2025, to facilitate a
smoother leadership transition.
Despite stepping down as CEO, Mr. Mattacchione will continue to
serve as Chairman of the Board and Chairman of the Company's wholly
owned subsidiary, Novo Healthnet Limited. Mr. Mattacchione's
resignation was not a result of any disagreement with the Company
on any matter relating to the Company's operations, policies or
practices.
As announced earlier, Mr. Mattacchione resigned from his position
as CEO of the Company on Nov. 7, 2024, with his resignation set to
take effect 90 days later, on Feb. 5, 2025.
About Novo Integrated
Novo Integrated Sciences, Inc., headquartered in Bellevue,
Washington, owns Canadian and U.S. subsidiaries which provide, or
intend to provide, essential and differentiated solutions to the
delivery of multidisciplinary primary care and related wellness
products through the integration of medical technology,
interconnectivity, advanced therapeutics, diagnostic solutions,
unique personalized product offerings, and rehabilitative science.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2022, issued a "going concern"
qualification in its report dated Dec. 14, 2023, citing that the
Company has incurred recurring losses from operations, has negative
cash flows from operating activities, and has an accumulated
deficit as of Aug. 31, 2023. These factors, among others, raise
substantial doubt about the Company's ability to continue as a
going concern.
For the fiscal years ended Aug. 31, 2024 and 2023, the Company
reported net losses attributed to Novo Integrated Sciences of
$16,166,744 and $13,214,552, respectively, and negative cash flow
from operating activities of $5,069,840 and $2,243,315,
respectively. As of Aug. 31, 2024, the Company had an aggregate
accumulated deficit of $83,199,785.
"Such losses have historically required us to seek additional
funding through the issuance of debt or equity securities. Our
long-term success is dependent upon among other things, achieving
positive cash flows from operations and if necessary, augmenting
such cash flows using external resources to satisfy our cash needs.
There can be no assurance that we will be able to obtain additional
funding, if needed, on commercially reasonable terms, or of all,"
stated Novo Integrated in its Annual Report for the year ended Aug.
31, 2024.
NUBURU INC: Bondholders' Trustee Sets Feb. 19 Auction
-----------------------------------------------------
Reference is made to (i) that certain senior convertible notes
exchange agreement dated as of Nov. 13, 2023, by and among Nuburu
Inc. ("Company"), and senior notes investors; (ii) those certain
secured convertible promissory notes dated as of Nov. 13, 2023,
issued by the Company to the senior notes investors; and (iii) that
certain security agreement dated Nov. 13, 2023, by and among the
Company, Wilmington Savings Fund Society, FSB ("collateral agent")
as collateral agent for the senior notes investors, and Anson
Investment Master Fund LP, the collateral agent will sell at a
public sale on Feb. 19, 2025, at 10:00 a.m. (Eastern Time), at K&L
Gates LLP, 599 Lexington Avenue, New York, New York 10022, all of
the Company's property that is subject to the collateral agent's
lien under the applicable law.
Interested bidders may request information regarding the collateral
and the auction by email to counsel to the collateral agent, John
R. Gardner, at John.Gardner@klgates.com and Heather E. Rees, at
Heather.Rees@klgates.com.
The auction will be conducted in person, and the collateral agent
reserves the right to adjourn, delay, or terminate the auction, or
change the venue thereof, or manner of which the auction is
conducted, in its sole and complete discretion.
Counsel to Wilmington Saving can be reached at:
Heather E. Rees, Esq.
K&L Gates LLP
1717 Main Street, Suite 2800
Dallas, Texas 75201
Email: heather.rees@klgates.com
John R. Gardner, Esq.
301 Hillsborough Street, Suite 1200
Raleigh, North Carolina 27603
Email: john.garnder@klgates.com
Nuburu, Inc. (NYSE American: BURU) develops high power precision
blue light engine lasers for the metal processing and 3D printing
industries worldwide. The company offers Nuburu AO and NUBURU BL
series lasers. Its products have applications in battery,
e-mobility, consumer electronics, and 3D printing metal systems.
Nuburu, Inc. is headquartered in Centennial, Colorado.
NUMINUS WELLNESS: Winds Down Subsidiaries via Bankruptcy
--------------------------------------------------------
Numinus Wellness Inc., a mental healthcare company advancing
traditional and innovative behavioral health treatments including
safe, evidence-based psychedelic-assisted therapies, today
announced February 14 that its Board of Directors has approved the
wind-down of certain non-operating subsidiaries as part of the
Company's efforts to simplify its corporate structure and
concentrate resources on its core business areas. This initiative
is intended to enhance operational efficiency and financial
sustainability.
The subsidiaries affected and their respective wind-down methods
are as follows:
* Mindspace Services Inc. (Canada) -- Bankruptcy
* Neurology Centre of Toronto Inc. (Ontario) -- Bankruptcy
* Numinus Bioscience Inc. (British Columbia) -- Bankruptcy
* Salvation Bioscience Inc. (Canada) -- Bankruptcy
* Numinus Health Corp. (British Columbia) -- Bankruptcy
These actions do not affect Numinus Wellness Inc.'s ability to
continue operations. The Company remains focused on its research
and training businesses, which form the foundation of its mission
to advance mental health solutions and psychedelic-assisted
therapies. By streamlining its corporate structure, Numinus is
ensuring a more sustainable and efficient path forward.
"This initiative allows us to allocate resources more effectively
and maintain focus on our core operations," said Michael Tan, CEO
of Numinus Wellness Inc.
The Company has engaged Dodick Landau Inc. to oversee the
bankruptcy proceedings. Additionally, Numinus will ensure that all
required Canada Revenue Agency (CRA) filings for the affected
entities are completed prior to the finalization of the wind-down
process.
This announcement is being made in accordance with TSX and
securities disclosure requirements. Further details regarding this
matter will be included in the Company's forthcoming Material
Change Report, to be filed within 10 days on SEDAR+.
The Company is continuing to prepare its Annual and Interim
financial statements and MD&A, which will be filed as soon as
possible.
About Numinus
Numinus Wellness Inc. (TSX: NUMI) helps people to heal and be well
through the development and delivery of innovative mental health
care and access to safe, evidence-based psychedelic-assisted
therapies. The Numinus model -- technology-driven clinic support,
clinical trial research and comprehensive practitioner training --
is at the forefront of a transformation aimed at healing rather
than managing symptoms of depression, anxiety, trauma, pain and
substance use. At Numinus, we are leading the integration of
psychedelic-assisted therapies into mainstream clinical practice
and building the foundation for a healthier society.
OMEGA THERAPEUTICS: Feb. 18 Deadline Set for Panel Questionnaires
-----------------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy case of Omega Therapeutics.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at https://tinyurl.com/2dnpaeuf and return by email it to
Benjamin A. Hackman -- Benjamin.A.Hackman@usdoj.gov -- at the
Office of the United States Trustee so that it is received no later
than Tuesday, Feb. 18, 2025 at 4:00 p.m..
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About Omega Therapeutics
Omega Therapeutics Inc. is a biotechnology company in its
development stages, leading innovation in a novel approach to
leverage mRNA therapeutics as programmable epigenetic treatments
through its OMEGA Epigenomic Programming platform. The OMEGA
platform harnesses the power of epigenetics, the mechanism that
controls gene expression and every aspect of an organism's life
from cell genesis, growth, and differentiation to cell death. The
OMEGA platform enables control of fundamental epigenetic processes
to correct the root cause of disease by returning aberrant gene
expression to a normal range without altering native nucleic acid
sequences.
Omega Therapeutics Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 25-10211) on February 10,
2025. In its petition, the Debtor reported total assets as of Jan.
28, 2025 amounting to $137,529,941 and total debts as of Jan. 28,
2025 of $140,421,354.
Honorable Bankruptcy Judge Brendan Linehan Shannon handles the
case.
The Debtor is represented by Derek C. Abbott, Esq., Eric D.
Schwartz, Esq., Andrew R. Remming, Esq., Daniel B. Butz, Esq.,
Jonathan M. Weyand, Esq., and Luke Brzozowski, Esq., at Morris,
Nichols, Arsht & Tunnell LLP in Wilmington, Delaware. The Debtor's
special counsel is Latham & Watkins LLP.
The Debtor tapped Triple P RTS, LLC as restructuring advisor and
Triple P Securities LLC as investment banker. The Debtor's claims
agent and administrative advisor is Kroll Restructuring
Administration LLC.
ORANGE TUMBLER: Gets OK to Use Cash Collateral Until March 14
-------------------------------------------------------------
Orange Tumbler, LLC received interim approval from the U.S.
Bankruptcy Court for the District of Maine to use cash collateral
until March 14.
The interim order, signed by Judge Michael Fagone, authorized the
company to use the cash collateral deposited in its
debtor-in-possession (DIP) account with TD Bank and directed the
company to deposit into the DIP account the funds in its account
with Bangor Savings Bank.
Orange Tumbler was also ordered to deposit into the DIP account
rents from its three-unit apartment building in Auburn, Maine.
The company owes approximately $115,000 to Bangor Savings Bank
based on the loan it obtained from the bank. The loan is secured by
the Auburn property.
As protection for the bank's interest, Orange Tumbler agrees that
the bank's security interest extends to rents collected after the
bankruptcy filing and waives any right to assert an "equities of
the case" exception to the bank's security interest in rents.
The final hearing is scheduled for March 13. Objections are due by
March 10.
About Orange Tumbler
Orange Tumbler, LLC filed Chapter 11 petition (Bankr. D. Maine Case
No. 24-20254) on December 6, 2024, listing up to $500,000 in both
assets and liabilities. Ricky Drew, manager of Orange Tumbler,
signed the petition.
Judge Michael E. Fagone oversees the case.
Michael P. Boyd, Esq., represents the Debtor as legal counsel.
Bangor Savings Bank, as lender, is represented by:
Jeremy R. Fischer, Esq.
Drummond Woodsum
84 Marginal Way, Suite 600
Portland, Maine 04101-2480
Telephone: (207) 772-1941
Email: jfischer@dwmlaw.com
OREGON TOOL: $850MM Bank Debt Trades at 38% Discount
----------------------------------------------------
Participations in a syndicated loan under which Oregon Tool
Holdings Inc is a borrower were trading in the secondary market
around 62.2 cents-on-the-dollar during the week ended Friday,
February 14, 2025, according to Bloomberg's Evaluated Pricing
service data.
The $850 million Term loan facility is scheduled to mature on
October 16, 2028. The amount is fully drawn and outstanding.
Oregon Tool Holdings, Inc., headquartered in Portland, Oregon, is a
global manufacturer and distributor of professional-grade,
consumable parts and attachments for use in forestry, lawn and
garden, agriculture and concrete cutting applications.
OSTEEN'S LOAD: Unsecureds to Split $24K in Consensual Plan
----------------------------------------------------------
Osteen's Load and Go, LLC filed with the U.S. Bankruptcy Court for
the Middle District of Florida a Plan of Reorganization dated
February 5, 2025.
The Debtor is a Florida limited liability company created by
Articles of Organization filed with the Florida Secretary of State
on November 1, 2017. The Debtor is an established dumpster rental
service operating in Central Florida.
The Debtor's principal place of business is located at 301 North
Blvd E, Leesburg, Florida, 34748 ("Premises"), which the Debtor
leases from Paulling Enterprise, Inc., Kevin and Kimberly Paulling
(noninsiders).
The Debtor's projected Disposable Income over the life of the Plan
is $23,868.00.
This Plan provides for: 15 classes of secured claims; 1 class of
unsecured claims; and 1 class of equity security holders.
Class 16 consists of the Allowed Unsecured Claims against the
Debtor. This Class is Impaired.
* Consensual Plan Treatment: The liquidation value or amount
that unsecured creditors would receive in a hypothetical chapter 7
case is approximately $0.00. Accordingly, the Debtor proposes to
pay unsecured creditors a pro rata portion of $24,000.00. Payments
will be made in equal quarterly payments of $2,000.00. Payments
shall commence on the fifteenth day of the month, on the first
month that begins more than ninety days after the Effective Date
and shall continue quarterly for eleven additional quarters.
Pursuant to Section 1191 of the Bankruptcy Code, the value to be
distributed to unsecured creditors is greater than the Debtor's
projected disposable income to be received in the 3-year period
beginning on the date that the first payment is due under the plan.
Holders of Class 16 claims shall be paid directly by the Debtor.
* Nonconsensual Plan Treatment: The liquidation value or
amount that unsecured creditors would receive in a hypothetical
chapter 7 case is approximately $0.00. Accordingly, the Debtor
proposes to pay unsecured creditors a pro rata portion of its
projected Disposable Income, $23,868.00. If the Debtor remains in
possession, plan payments shall include the Subchapter V Trustee's
administrative fee which will be billed hourly at the Subchapter V
Trustee's then current allowable blended rate. Plan Payments shall
commence on the fifteenth day of the month, on the first month that
is one year after the Effective Date and shall continue annually
for two additional years. The initial annual payment shall be
$5,956.00. Holders of Class 16 claims shall be paid directly by the
Debtor.
Class 17 consists of any and all equity interests and warrants
currently issued or authorized in the Debtor. This Class is
Unimpaired. Holders of a Class 17 interests shall retain their full
equity interest in the same amounts, percentages, manner and
structure as existed on the Petition Date.
The Plan contemplates that the Reorganized Debtor will continue to
operate the Debtor's business. Except as explicitly set forth in
this Plan, all cash in excess of operating expenses generated from
operation until the Effective Date will be used for Plan Payments
or Plan implementation, cash on hand as of Confirmation shall be
available for Administrative Expenses.
A full-text copy of the Plan of Reorganization dated February 5,
2025 is available at https://urlcurt.com/u?l=mN63bb from
PacerMonitor.com at no charge.
About Osteen's Load and Go
Osteen's Load and Go, LLC is a dumpster rental service provider
serving residential and commercial customers.
Osteen's sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. M.D. Fla. Case No. 24-06079) on November 7, 2024, with
$100,001 to $500,000 in assets and $1 million to $10 million in
liabilities. Larry Osteen, manager, signed the petition.
Judge Tiffany P. Geyer oversees the case.
The Debtor is represented by:
Jeffrey Ainsworth, Esq.
BransonLaw, PLLC
1501 E. Concord Street
Orlando, FL 32803
Tel: 407-498-6834
Email: jeff@bransonlaw.com
OYA RENEWABLES: Gets Court Okay for Ch. 11 Sales After Settlement
-----------------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that on
February 12, 2025, a Delaware bankruptcy judge stated she would
approve the $39 million sale of two asset packages from solar
energy producer Oya Renewables following a settlement with its
creditors' committee.
About OYA Renewables
OYA Renewables Development LLC own a portfolio of operating solar
projects and projects in various stages of development in North
America. OYA also deliver distributed energy and smart long-term
renewable energy solutions to local communities.
OYA Renewables and seven its affiliates filed for bankruptcy
protection (Bankr. D. Del., Lead Case No. 24-12574) on November 6,
2024. In petition signed by John Shepherd as chief restructuring
officer, the Debtors reported $100 million to $500 million in
estimated assets and liabilities.
The Hon. Karen B. Owens presides over the cases.
Young Conway Stargatt & Taylor LLP serves the Debtors' local
bankruptcy counsel and Sisley Austin LLP serves as the general
bankruptcy counsel. Ankara Consulting Group, LLC acts as financial
advisor to the Debtors, while Agenis Capital Advisors and
SenahillAdvisors LLC act as investment bankers to the Debtors.
Kroll Restructuring Administration LLC is the Debtors' notice and
claims agent.
OYA Renewables Development LLC own a portfolio of operating solar
projects and projects in various stages of development in North
America. OYA also deliver distributed energy and smart long-term
renewable energy solutions to local communities.
OYA Renewables and seven its affiliates filed for bankruptcy
protection (Bankr. D. Del., Lead Case No. 24-12574) on November 6,
2024. In petition signed by John Shepherd as chief restructuring
officer, the Debtors reported $100 million to $500 million in
estimated assets and liabilities.
The Hon. Karen B. Owens presides over the cases.
Young Conway Stargatt & Taylor LLP serves the Debtors' local
bankruptcy counsel and Sisley Austin LLP serves as the general
bankruptcy counsel. Ankara Consulting Group, LLC acts as financial
advisor to the Debtors, while Agenis Capital Advisors and Senahill
Advisors LLC act as investment bankers to the Debtors. Kroll
Restructuring Administration LLC is the Debtors' notice and claims
agent.
OZARK LANDSCAPE: Gets OK to Use Cash Collateral
-----------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Arkansas,
Northern Division, issued a consent order allowing Ozark Landscape
and Design, Inc. to use cash collateral.
The order authorized the company to use cash collateral, subject to
the terms of its security agreement with Bayfirst National Bank and
the U.S. Small Business Administration.
As protection for the use of its cash collateral, the court order
approved the payments to Bayfirst, including the payment of $1,000
by Jan. 31, and $2,168.58 by Feb. 28. Ozark was also ordered to
make a $2,168.58 payment by March 31 or the payments required in
the plan on or before 10 days from the date required in the plan,
whichever is earlier.
Meanwhile, the SBA will be granted a priority lien on and security
interests in the company's post-petition collateral. In case of any
diminution in the value of its interests in the collateral, the SBA
will be entitled to a superiority claim.
About Ozark Landscape and Design
Ozark Landscape & Design, Inc., provides a full-service lawn
maintenance and landscape design service to businesses in the
Northeast Arkansas area.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. E.D. Ark.
Case No. 24-13011) on Sept. 15, 2024, disclosing under $1 million
in both assets and liabilities.
The Debtor is represented by:
Michael E Crawley, Jr.
Crawley Law Firm
Tel: 870-972-1150
Email: mikec@crawleylawfirm.com
PACKERS HOLDINGS: $1.24BB Bank Debt Trades at 46% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Packers Holdings
LLC is a borrower were trading in the secondary market around 54.1
cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The $1.24 billion Term loan facility is scheduled to mature on
March 9, 2028. About $1.20 billion of the loan has been drawn and
outstanding.
Packers Holdings, LLC, known as PSSI, founded in 1972 and
headquartered in Kieler, Wisconsin, is a provider of contract
sanitation services to the food processing industry in the U.S. and
Canada.
PALATIN TECHNOLOGIES: Enters $6M Stock Purchase Deal with A.G.P.
----------------------------------------------------------------
Palatin Technologies, Inc., has entered into an At the Market
Issuance Sales Agreement with A.G.P./Alliance Global Partners, as
disclosed in a Form 8-K filed with the Securities and Exchange
Commission. Under this Agreement, the Company may periodically
offer and sell shares of its common stock, with a total offering
value of up to around $6.0 million, through A.G.P. acting as either
a sales agent or principal.
The Shares will be offered and sold by the Company pursuant to its
previously filed and currently effective Registration Statement on
Form S-3 (Reg. No. 333-262555). The Shares may only be offered and
sold by means of a prospectus, including a prospectus supplement,
dated Feb. 11, 2025, filed by the Company with the SEC, forming
part of the effective Registration Statement. Sales of the common
stock, if any, will be made at market prices by methods deemed to
be an "at-the market-offering" as defined in Rule 415(a)(4)
promulgated under the Securities Act of 1933, as amended, including
sales made directly on the NYSE American, on any other existing
trading market for the common stock, or to or through a market
maker other than on an exchange. Sales of the Shares, if any, will
be made in accordance with the terms of the Sales Agreement and
applicable Placement Notices delivered by the Company to A.G.P.
from time to time.
The Company is obligated to pay A.G.P. a commission rate of up to
3.0% of the gross proceeds from the sales of common stock sold
pursuant to the terms of the Sales Agreement. The Sales Agreement
also contains, among other things, customary representations,
warranties and covenants by the Company and indemnification
obligations of the Company and A.G.P. as well as certain
termination rights for both the Company and A.G.P. The Company has
no obligation to sell any Shares under the Sales Agreement, and may
at any time suspend solicitation and offers under the Sales
Agreement. The Sales Agreement may be terminated by either the
Company or A.G.P. upon notice, or under certain circumstances,
including a material adverse change affecting the Company or market
conditions impacting the ability to sell shares. The offering will
also terminate upon the expiration of the Registration Statement or
the sale of all shares covered by the Sales Agreement. Certain
provisions, including those related to expenses and
indemnification, will survive termination.
About Palatin
Headquartered in New Jersey, Palatin -- http://www.Palatin.com/--
is a biopharmaceutical company developing first-in-class medicines
based on molecules that modulate the activity of the melanocortin
receptor ("MCr") system. The Company's product candidates are
targeted, receptor-specific therapeutics for the treatment of
diseases with significant unmet medical need and commercial
potential. Palatin's strategy is to develop products and then form
marketing collaborations with industry leaders to maximize product
commercial potential.
Philadelphia, Pennsylvania-based KPMG LLP, the Company's auditor
since 2002, issued a "going concern" qualification in its report
dated Sept. 30, 2024, citing that the Company has incurred
operating losses and negative cash flows from operations since
inception and will need additional funding to complete planned
product development efforts that raise substantial doubt about its
ability to continue as a going concern.
As of June 30, 2024, the Company had an accumulated deficit of
$441.8 million. The Company had $29.7 million in net loss for the
year ended June 30, 2024, compared to $24.0 million in net loss for
the year ended June 30, 2023.
"We may not achieve or sustain profitability in future years,
depending on numerous factors, including whether and when
development and product commercialization milestones are met,
whether and when we enter into license agreements for any of our
products under development, regulatory actions by the FDA and other
regulatory bodies, the performance of our licensees, and market
acceptance of our products," stated Palatin in its Annual Report
for the year ended June 30, 2024.
PAPER SOURCE: Closes Chicago Warehouse, To Cut 107 Jobs
-------------------------------------------------------
NBC Chicago reports that Paper Source will close its Forest Park
warehouse this spring, resulting in more than 100 job cuts.
The stationery retailer, owned by Barnes & Noble, will lay off 107
employees by April 1, 2025 when it shutters its facility at 7801
Industrial Park, according to a January 29, 2025 filing under the
Illinois Worker Adjustment and Retraining Notification Act.
Recently, Paper Source relocated its corporate headquarters to
Barnes & Noble's new Wicker Park store, which opened in October at
1601 N. Milwaukee Ave. The company has also resumed expansion,
opening new locations after years of decline, including a
standalone store inside a Barnes & Noble in Encinitas, California,
according to Janine Flanigan, Barnes & Noble's senior director of
store planning and design.
Paper Source was acquired by hedge fund Elliott Management in May
2021 after filing for Chapter 11 bankruptcy earlier that year amid
the COVID-19 pandemic. Elliott had previously purchased Barnes &
Noble in 2019.
Before announcing the Forest Park closure, Paper Source employed
more than 200 people in the Chicago area and operated 117 stores
across 28 states. Its Chicago locations include River North,
Lincoln Park, and the Loop, along with several suburban stores. The
retailer specializes in greeting cards, stationery, and gifts.
Barnes & Noble, the largest private bookstore chain in the U.S.,
has been expanding rapidly. After years of store closures, it
opened more locations in 2024 than in the entire decade from 2009
to 2019. The company plans to open more than 60 new stores in 2025,
following 50 openings last year, including four in the Chicago
area. Its Lincoln Park store launch in May drew over 100 customers
waiting in line.
Barnes & Noble currently operates more than 600 bookstores
nationwide.
Founded in Chicago in 1983, Paper Source has operated the Forest
Park warehouse since 2015. The 120,000-square-foot facility
supports both retail and online operations, but its lease expires
in early 2026, prompting the closure.
"We have to vacate and have started the process with all our
employees about the closure," Flanigan said in an email. "As a
retailer whose business is especially concentrated in the holiday
period, we have to make the move in the summer to be able to meet
the seasonality of the year-end."
Paper Source will transition its warehouse operations to existing
facilities.
"We are deeply appreciative of the support and professionalism of
the Forest Park team over the last 10 years," Flanigan added.
About Paper Source
Paper Source, Inc., operates as lifestyle brand and retailer of
premium paper products, crafting supplies and related gifts,
including custom invitations, greeting cards and personalized
stationery and stamps. It sells fine and artisanal papers, wedding
paper goods, books and gift wrap through its 158 domestic stores
and e-commerce website. Its administrative headquarter is in
Chicago.
Paper Source and Pine Holdings, Inc., sought Chapter 11 protection
(Bankr. E.D. Va. Case No. 21-30660) on March 2, 2021. At the time
of the filing, Paper Source disclosed assets of between $100
million and $500 million and liabilities of the same range.
Meanwhile, Pine Holdings disclosed assets of up to $50,000 and
liabilities of between $100 million and $500 million.
The Hon. Keith L. Phillips is the case judge.
The Debtors tapped Willkie Farr & Gallagher LLP and Whiteford
Taylor & Preston LLP as bankruptcy counsel, M-III Advisory LP as
restructuring advisor, SSG Capital Advisors LLC as investment
banker, and A&G Real Estate Partners as real estate advisor. Epiq
Corporate Restructuring, LLC is the claims agent.
The U.S. Trustee for Region 4 appointed a committee to represent
unsecured creditors in the Debtors' Chapter 11 cases. The committee
tapped Hahn & Hessen LLP as bankruptcy counsel, Hirschler
Fleischer, PC as Virginia local counsel, and Province, LLC as
financial advisor.
PASADENA PERFORMANCE: S&P Assigns Prelim 'BB-' Rating on Sec. Debt
------------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'BB-' long-term rating
to Pasadena Performance Products' (PPP or the project) proposed
debt issuance. S&P also assigned a '1+' recovery rating to the
debt.
The stable outlook reflects S&P's expectation that the plant will
operate at about a 90% availability factor, and the project will
have sufficient liquidity to fully cover its debt service
obligations even during a market downturn.
Pasadena Performance Products, LLC operates an alkylate production
facility adjacent to the Houston Ship Channel. PPP is privately
owned by Energy Capital Partners, through ECP Fund IV. The facility
uses low-cost natural gas liquid (NGL)-derived feedstocks,
primarily ethylene, to produce alkylate, a gasoline additive that
improves octane ratings. PPP reached final investment decision in
November 2019 and achieved steady-state operations in mid-January
2024. Through ongoing debottlenecking efforts, the facility
produced more than 40,000 barrels per day (bpd) in December 2024.
The project is partially contracted by five- to 10-year synthetic
tolling contracts.
-- Low feedstock cost and higher operating margin compared with
alkylation units at traditional refineries
-- The project is partially contracted until 2034
-- The project is partially exposed to market risks up to 2034,
and full merchant exposure from 2035 onward.
-- The project is exposed to potentially weakened demand for
gasoline and its additive products during the merchant period.
-- Short operating track record started in 2024, and the project
has only recently increased its capacity to 43,000 bpd.
The final rating is subject to our receipt and satisfactory review
of all final transaction documentation, appointment of the
transaction's financial counterparty, and the final cost of the
debt issuance. Accordingly, the preliminary rating should not be
construed as evidence of a final rating. S&P said, "If we do not
receive the final documentation within a reasonable period, or if
the documentation departs from the materials we have already
reviewed or the assumptions we have made for purposes of the
preliminary rating, or the debt cost is materially different from
what we have assumed, we reserve the right to withdraw or change
the rating.
We assigned a preliminary 'BB-' rating to the proposed TLB and RCF,
as we expect the proposed transaction will meet the definition of
project finance within our criteria. Based on our current
assumptions that there are sufficient anti-filing mechanisms to
restrict the project's owners from filing the project into
bankruptcy, we expect to assess the parent linkage as delinked. We
anticipate that the covenant package will have standard provisions,
including limitations on additional debt, business activities,
pledging of additional security to third parties, and asset
sales."
S&P said, "Our operations phase stand-alone credit profile (SACP)
is derived from the weaker of the project's contracted and merchant
phases. The contracted phase runs from now until 2034, and the
merchant phase starts in 2035 and lasts until the end of our
estimated project life in 2046. During the initial contracted
period up to 2029, about 19,200 bpd of production volumes are
contracted with a high investment-grade counterparty. The project
also has 8,000 bpd of contracted production volume; however, we
have treated this revenue as uncontracted and assume that capacity
under this contract will be sold in the spot market. From 2035
onward, the project's gross margin will be fully exposed to spot
market volatility.
"The project's exposure to commodity price risks significantly
influences its operations phase SACP. During the contracted phase,
our market downside cash flow available for debt service (CFADS)
decreases an average of about 27% from the base case. During the
merchant phase, the market downside CFADS varies at an average of
about 58% from the base case to the market downside case."
Favorable operating efficiency and low feedstock costs are not
sufficient to offset market risk. The project has stronger
operating efficiency compared with other alkylation units typically
found in refineries, as its dimerization and alkylation processes
place less stress on its equipment. In addition, the project uses
ethylene, an NGL that is abundant in the region where it operates,
which creates a cost advantage relative to other alkylation units
that primarily rely on crude oil-derived feedstocks.
However, the project could still face tight operating margins in
adverse market conditions. These conditions could include high
demand for ethylene for other petrochemical applications or
increasing exports, as well as weaker demand for gasoline. In
addition, existing refineries and alkylate plants could expand
their capacity if alkylation margins improve. Therefore, S&P does
not believe the project's competitive advantages are sufficient to
offset its market exposure in its market downside case.
S&P said, "We also expect energy transition risks will further
constrain the credit profile during the merchant phase. We assigned
a negative holistic adjustment in the uncontracted phase. This
adjustment reflects the project's position relative to that of
peers with exposure to commodity price volatility. The assessment
also reflects potential flagging demand for gasoline products
toward the second half of the project life due to potential effects
of the energy transition away from fossil fuels.
"The stable outlook reflects our view that the project will meet
our base-case expectation of operating at an availability factor of
at least 90% of current capacity, producing an average of about
38,700 bpd of alkylate. We expect the project's debt service
coverage ratio (DSCR) will remain above a minimum of 2.23x. In
addition, we believe the project will have sufficient liquidity to
fully cover its debt service obligations even during a market
downturn.
"We could take a negative rating action if the project demonstrates
weaker-than-expected operating stability, as evidenced by extended
outages and/or sustained low availability. In addition, we could
take a negative rating action if the project's ability to withstand
adverse economic conditions weakens such that forecast gross margin
is likely to deteriorate. This could result from lower gasoline
demand, heightened feedstock prices, or both.
"Although unlikely, we could take a positive rating action if PPP
can significantly extend contract tenors or increase its contracted
volume with creditworthy counterparties, such that its future
operating cash flow stability improves, lowering the project's risk
profile."
Environmental, Social, And Governance
S&P said, "Environmental factors are a negative consideration for
our rating on PPP's debt, primarily reflecting energy transition
risks, and potential reduction in hydrocarbon demand in the long
term. Our market exposure analysis has factored in the potentially
flagging demand for gasoline additive facilities due to this
long-term view. This weakness is reflected through weaker gross
margin during the merchant phase."
Social factors are a neutral consideration, as the project is in
compliance with local environmental regulations. The project has
obtained necessary permits and maintained regular engagement with
local communities and various stakeholders. The project also has a
good record in health and safety and has a robust program in place
to minimize workplace accidents.
Governance is also a neutral consideration, as S&P has not observed
the project owner demonstrating equity-friendly bias in the past.
Project sponsors maintain all necessary permits and sufficient
transparency on operating performance to date.
PERATON CORP: $1.34BB Bank Debt Trades at 17% Discount
------------------------------------------------------
Participations in a syndicated loan under which Peraton Corp is a
borrower were trading in the secondary market around 83.3
cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The $1.34 billion Term loan facility is scheduled to mature on
February 1, 2029. The amount is fully drawn and outstanding.
Peraton Corp., headquartered in Reston, Virginia, is a provider of
communications networks and systems, enterprise IT and mission
support for federal agencies. The company is owned by Veritas
Capital.
PETSMART LLC: Moody's Lowers CFR to 'B2' & Alters Outlook to Stable
-------------------------------------------------------------------
Moody's Ratings downgraded PetSmart LLC's corporate family rating
to B2 from B1, its probability of default rating to B2-PD from
B1-PD, the ratings on its senior secured term loan B and senior
secured first lien notes to B2 from B1 and the rating on its senior
unsecured notes to Caa1 from B3. Moody's also changed the outlook
to stable from negative.
The downgrades reflect pressure on PetSmart's topline growth and
earnings for several quarters as consumers shift away from
discretionary pet supplies and premium consumables to more
value-oriented, low-margin items. This has weakened credit metrics,
particularly EBIT/interest coverage which Moody's believe will be
sustained below 2.25x and estimated to be 1.5x at the end of fiscal
2024. However, Moody's expect topline growth to stabilize and turn
nominally positive in 2025 as PetSmart continues to adapt to the
value-oriented consumer. Moody's expect improving assortments and
higher unit sales from pricing actions taken in 2024 across
consumables and hardgoods as overall gross margins remain tight.
Moody's also expect PetSmart to continue to maintain very good
liquidity including continued positive free cash flow and ample
availability on its $1 billion asset-based revolver expiring in
February 2029 (not rated).
The stable outlook reflects Moody's expectation for sales and
profitability to stabilize and begin to improve as strategic
initiatives are further implemented and credit metrics to be at
least maintained. Moody's also expect very good liquidity,
including maintaining its excess cash balances and positive free
cash flow, which is also particularly sizeable on a pre-dividend
basis.
RATINGS RATIONALE
PetSmart's B2 CFR is supported by the company's very good
liquidity, including Moody's expectation for positive free cash
flow with no near term maturities, and the company's position as
one of the largest specialty retailers of pet products and services
in the US and Canada. While competition is intense, the strength
and scale of PetSmart's in-store service offering, which includes
grooming, boarding, training and full-service veterinary hospitals
creates a competitive advantage versus pure-play online competition
and traditional bricks-and-mortar competitors.
The B2 CFR is also supported by PetSmart's moderate leverage.
Lease-adjusted debt/EBITDA was 4.3x for the LTM period ending
October 27, 2024 and Moody's expect leverage to remain in the low
4x range over the next 12-18 months. EBIT/interest coverage for the
LTM period ending October 27, 2024 was 1.4x and expect it to remain
at about 1.5x going forward as the consumer continues to remain
purposeful and value-focused, leaving little room to drive much
earnings growth over the next 12-18 months. Moody's also believe
PetSmart will have limited room to cut operating costs such as
wages, advertising, and online expenses given competition from
e-commerce retailers as well as mass retailers and grocery stores
that have been benefiting from a pickup in their own value
offerings, driven by trip consolidation. Governance remains a key
rating constraint due to the sponsors' history of taking
shareholder friendly actions, including extracting large periodic
dividends and monetizing PetSmart's previous investment in Chewy.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
PetSmart's ratings could be upgraded if the company demonstrates
sustained growth in revenue, profitability, and market share as
well as continued free cash flow generation while demonstrating a
transparent and strong commitment to conservative financial
policies. Quantitatively, the ratings could be upgraded if
EBIT/interest expense is sustained above 2.25x and debt/EBITDA is
sustained below 4.5x, while maintaining very good overall
liquidity.
PetSmart's ratings could be downgraded if its operating performance
significantly deteriorates, indicating that the company's industry
or competitive profile is being threatened. Ratings could also be
downgraded if the company's financial policies were to become more
aggressive, including actions that result in erosion of the
company's liquidity. Quantitatively, a ratings downgrade could
occur if debt/EBITDA is sustained above 5.5x or EBIT/interest falls
significantly below 1.5x.
The principal methodology used in these ratings was Retail and
Apparel published in November 2023.
PetSmart LLC is one of the largest specialty retailer of supplies,
food, and services for household pets in the US and Canada. The
company currently operates 1,682 stores in the US, Canada, and
Puerto Rico as of October 27, 2024. LTM revenue as of October 27,
2024 was about $10.0 billion. PetSmart has an omnichannel
capability consisting of buy online, pick up in store ("BOPIS"),
curbside pickup, ship-to-home, ship-from-store, and marketplace
partnerships such as DoorDash, Instacart, Uber Eats, and Shipt. The
company is indirectly controlled by a consortium including funds
advised by BC Partners Advisors LP, Apollo Global Management, Inc.,
Caisse de depot et placement du Quebec, affiliates of GIC Special
Investments Pte Ltd, affiliates of StepStone Group LP, and Longview
Asset Management, LLC.
PHVC4 HOMES: To Dispose 26 Vacant Lots to Adams Homes for $1.1MM
----------------------------------------------------------------
PHCV4 Homes, LLC, seeks approval from the U.S. Bankruptcy Court for
the Northern District of Alabama, Southern Division, to sell real
estate, free and clear of all liens, interests, and encumbrances.
The Debtor proposes to sell its interest in certain real estate
consisting of 26 vacant lots in the community known as Briar Rose,
in the municipality of Bay Minette, Baldwin County, Alabama, for
the total purchase price of $1,170,000,000.
CoreVest American Finance Lender LLC's lien rights specifically and
fully attach to all proceeds of the sale.
All liens, mortgages, or other interests shall attach to the
proceeds of the sale to the extent properly allowed. However, no
proceeds of the sale shall be paid to Debtor or any person or party
related to Debtor, no other creditors or lienholders shall receive
the net proceeds of the Sale after all closing costs, tax pro
rations, and other routine and necessary Sale related disbursements
are paid by the closing attorney. All Net Sales Proceeds shall be
paid directly CoreVest at closing free and clear of all liens,
interests, and encumbrances. If the Sale does not close on or
before 45 days following the entry of this Court’s final order
approving the sale.
The Debtor and Adams Homes, LLC enter into a contract to purchase
the lots.
The Debtor believes that the total sales price for the Lots
represents the fair market value of the Lots. The Purchaser has
already obtained or will obtain financing, and the sales are
contemplated to be closed forthwith after approval from this Court.
The Lots will be purchased at closing on or before the 45th day
following the entry of this Court’s final order approving the
Sale.
The Lots is subject to the following liens, mortgages or other
interest held by CoreVest.
About PHCV4 Homes, LLC
PHCV4 Homes LLC is part of the residential building construction
industry.
PHCV4 Homes LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-02751) on September
10, 2024. In the petition filed by Misty M. Glass, as manager, the
Debtor reports estimated assets and liabilities between $10 million
and $50 million each.
The Honorable Bankruptcy Judge Tamara O. Mitchell presides over the
case.
The Debtor is represented by Frederick M. Garfield, Esq., at SPAIN
& GILLON, LLC.
PHVC4 HOMES: To Sell 31 Vacant Lots to CHIPS-Amberley LLC
---------------------------------------------------------
PHCV4 Homes, LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of Alabama, Southern Division, to sell real
estate in a private sale, free and clear of all liens, interests,
and encumbrances.
Debtor proposes to sell its interest in certain real estate
consisting of 31 vacant
lots in the community known as Amberley, in the municipality of
Robertdale, Baldwin
County, Alabama for the total purchase price of $1,348,000,000.
CoreVest American Finance Lender LLC's lien rights specifically and
fully attach to all proceeds of the sale.
All liens, mortgages, or other interests shall attach to the
proceeds of the sale to the extent properly allowed. However, no
proceeds of the sale shall be paid to Debtor or any person or party
related to Debtor, no other creditors or lienholders shall receive
the net proceeds of the Sale after all closing costs, tax pro
rations, and other routine and necessary Sale related disbursements
are paid by the closing attorney. All Net Sales Proceeds shall be
paid directly CoreVest at closing free and clear of all liens,
interests, and encumbrances. If the Sale does not close on or
before e April 2, 2025, then it is null and void and the Sale.
CHIPS – Amberley LLC enters into a Contract to purchase the
Property.
The Debtor believes that the total sales price for the WIP Assets
represents the fair market value of the Property. The Purchaser has
already obtained or will obtain financing, and the sales are
contemplated to be closed forthwith after approval from this Court.
The Property consisting of the WIP Assets will be purchased at
closing on or before April 2, 2025.
The Lots is subject to the following liens, mortgages or other
interest held by CoreVest.
About PHCV4 Homes, LLC
PHCV4 Homes LLC is part of the residential building construction
industry.
PHCV4 Homes LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-02751) on September
10, 2024. In the petition filed by Misty M. Glass, as manager, the
Debtor reports estimated assets and liabilities between $10
million
and $50 million each.
The Honorable Bankruptcy Judge Tamara O. Mitchell presides over the
case.
The Debtor is represented by Frederick M. Garfield, Esq., at SPAIN
& GILLON, LLC.
PHVC4 HOMES: To Sell 4 Single-Family Homes to CHIPS-West Lagoon
---------------------------------------------------------------
PHCV4 Homes, LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of Alabama, Southern Division, to sell real
estate in a private sale, free and clear of all liens, interests,
and encumbrances.
The Debtor proposes to sell its interest in certain real estate
consisting of 4 single-family
homes in the community known as West Lagoon, in the municipality of
Gulf Shores, Baldwin County, Alabama with the total purchase price
of the Property is $2,100,000.00.
CoreVest American Finance Lender LLC's lien rights specifically and
fully attach to all proceeds of the sale.
All liens, mortgages, or other interests shall attach to the
proceeds of the sale to the extent properly allowed. However, no
proceeds of the sale shall be paid to Debtor or any person or party
related to Debtor, no other creditors or lienholders shall receive
the net proceeds of the Sale after all closing costs, tax pro
rations, and other routine and necessary Sale related disbursements
are paid by the closing attorney. All Net Sales Proceeds shall be
paid directly CoreVest at closing free and clear of all liens,
interests, and encumbrances. If the Sale does not close on or
before April 18, 2025, then it is null and void and the Sale.
CHIPS – West Lagoon, LLC enters into a Contract to purchase the
Property.
The Debtor believes that the total sales price for the WIP Assets
represents the fair market value of the Property. The Purchaser has
already obtained or will obtain financing, and the sales are
contemplated to be closed forthwith after approval from this Court.
The Property consisting of the WIP Assets will be purchased at
closing on or before April 18, 2025.
The Lots is subject to the following liens, mortgages or other
interest held by CoreVest.
About PHCV4 Homes, LLC
PHCV4 Homes LLC is part of the residential building construction
industry.
PHCV4 Homes LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-02751) on September
10, 2024. In the petition filed by Misty M. Glass, as manager, the
Debtor reports estimated assets and liabilities between $10 million
and $50 million each.
The Honorable Bankruptcy Judge Tamara O. Mitchell presides over the
case.
The Debtor is represented by Frederick M. Garfield, Esq., at SPAIN
& GILLON, LLC.
POLAR US: $541.4MM Bank Debt Trades at 28% Discount
---------------------------------------------------
Participations in a syndicated loan under which Polar US Borrower
LLC is a borrower were trading in the secondary market around 71.6
cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The $541.4 million Payment in kind Term loan facility is scheduled
to mature on October 16, 2028. About $541.4 million of the loan has
been drawn and outstanding.
Polar US Borrower, LLC is the pass-through entity of ultimate
parent, SK Blue Holdings, LP, an affiliate of private investment
firm, SK Capital Partners. SI Group manufactures performance
additives for use in polymer, rubber, lubricants, fuels, adhesives
applications, surfactants in addition to some specialty chemicals.
PRG-UINDY PROPERTIES: S&P Rates 2025 Housing Revenue Bonds 'BB'
---------------------------------------------------------------
S&P Global Ratings assigned its 'BB' long-term rating to the
Provident Resources Group-UINDY Properties LLC (PRG-UIndy) Ind.,
the sole member of which is Provident Resources Group's (the
borrower) approximately $75 million series 2025 student housing
revenue bonds, issued for PRG-UIndy Properties LLC (PRG-UIndy). The
outlook is stable.
"The rating reflects our view of the project's somewhat pressured
demand profile with fall occupancy declining at each building in
fall 2024: 95% for Greyhound Village, 95% at University Lofts, and
86% at College Crossing, which correlates with decreasing
enrollment at the university," said S&P Global Ratings credit
analyst Sean Wiley.
The series 2025 bonds are nonrecourse obligations of Provident
Resource Group--UIndy--LLC, secured by pledged revenue of three
housing properties, Greyhound Village, University Lofts, and
College Crossing, all of which predominately service upperclassmen
and graduate students. All three units are already operational with
approximately 948 beds on the University of Indianapolis campus.
The bonds are further secured by a leasehold deed of trust and debt
service reserve fund (DSRF) equal to maximum annual debt service
(MADS). The term of the bonds is 35 years and will be fixed-rate,
with debt service increasing from $4.4 million to about $5.1
million by 2030 and remaining flat through maturity.
Total issuance for the project is approximately $75 million. Bond
proceeds will finance the purchase of three housing units from a
joint-venture entity jointly owned by the university and an
affiliate of Strategic Capital Partners, along with a DSRF equal to
the MADS of $5.1 million, prefund the repair and replacement fund
of $1.1 million, and pay the cost of issuance.
The project covenants to generate minimum project revenue of 1.2x
of fixed charges on the bonds. If coverage falls below 1.2x, it is
not an event of default if PRG-UIndy retains and follows the
recommendations of a consultant. If coverage on the senior bonds
falls below 100%, it is considered an event of default. After debt
service payments, the surplus fund will be drawn on to pay
university subordinated expenses, fund the operational contingency
fund, and finally, to pay the university ground lease payments
along with a subordinate loan. The project will comply with annual
deposits to the repair and replacement fund in an initial amount of
$200 per bed, escalating at a rate of 3% annually. Project
ownership will transfer to the university once the bonds are fully
repaid and the ground lease terminates; the ground lease terminates
at the earlier of 45 years or once the bonds are fully redeemed.
"The stable outlook reflects our expectation that during the
one-year outlook period occupancy will be stable and coverage will
be above its 1.2x covenant requirements," added Mr. Wiley.
PROS HOLDINGS: BlackRock Reports 9.8% Equity Stake as of Dec. 31
----------------------------------------------------------------
BlackRock, Inc. disclosed in Schedule 13G/A Report filed with the
U.S. Securities and Exchange Commission that as of December 31,
2024, it beneficially owned 4,644,690 shares of PROS Holdings,
Inc.'s common stock, representing 9.8% of the shares outstanding.
BlackRock may be reached at:
Spencer Fleming
BlackRock, Inc.
50 Hudson Yards
New York, NY 10001
Tel: (212) 810-5800
A full-text copy of BlackRock's SEC Report is available at:
https://tinyurl.com/arr3xcx8
About PROS Holdings
Headquartered in Houston, Texas, PROS Holdings, Inc. (NYSE: PRO),
is a provider of AI-powered SaaS pricing, CPQ, revenue management,
and digital offer marketing solutions.
As of June 30, 2024, PROS Holdings had $384.9 million in total
assets, $467.9 million in total liabilities, and $83 million in
total shareholders' deficit.
* * *
Egan-Jones Ratings Company, on August 22, 2024, maintained its
'CCC-' foreign currency and local currency senior unsecured ratings
on debt issued by PROS Holdings, Inc.
PROSPECT MEDICAL: Reaches Deal w/ MPT, Tenant
---------------------------------------------
Dorothy Ma of Bloomberg Law reports that Medical Properties Trust
Inc. (MPT) and its bankrupt tenant, Prospect Medical Holdings Inc.,
have reached a settlement to resolve a significant dispute,
Prospect's attorney said Wednesday, February 12, 2025.
During a Texas hearing, Prospect lawyer Thomas Califano stated that
the agreement outlines how the two companies will handle assets in
California and Connecticut. Under the deal, the leases will be
"recharacterized," granting MPT secured creditor status and
allowing Prospect to proceed with selling the facilities.
About Prospect Medical Holdings Inc.
Prospect Medical Holdings owns Roger Williams Medical Center, Our
Lady of Fatima Hospital, and several other healthcare facilities.
Prospect Medical Holdings sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80002) on
January 11, 2025. In the petition filed by Paul Rundell, as chief
restructuring officer, the Debtor reports estimated assets and
liabilities between $1 billion and $10 billion each.
Honorable Bankruptcy Judge Stacey G. Jernigan handles the case.
The Debtors' General Bankruptcy Counsel is Thomas R. Califano,
Esq., and Rakhee V. Patel, Esq., at Sidley Austin LLP, in Dallas,
Texas, and William E. Curtin, Esq., Patrick Venter, Esq., and Anne
G. Wallice, Esq., at Sidley Austin LLP, in New York.
The Debtors' Financial Advisor is ALVAREZ & MARSAL NORTH AMERICA,
LLC.
The Debtors' Investment Banker is HOULIHAN LIKEY, INC.
The Debtors' Claims, Noticing & Solicitation Agent is OMNI AGENT
SOLUTIONS, INC.
PUERTO RICO: PREPA Needs Government Help to Repay Legacy Debt
-------------------------------------------------------------
Michelle Kaske of Bloomberg News reports that Puerto Rico's
embattled power utility may require support from the commonwealth's
government to repay legacy debt, address ongoing outages, and
conclude its seven-year bankruptcy.
The island's financial oversight board, overseeing the
restructuring of Puerto Rico's Electric Power Authority, plans to
discuss the potential use of commonwealth funds to settle the
utility's debts, Executive Director Robert Mujica told reporters
Tuesday, February 11, 2025.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States. The chief of state is the President of the
United States of America. The head of government is an elected
Governor. There are two legislative chambers: the House of
Representatives, 51 seats, and the Senate, 27 seats.
In 2016, the U.S. Congress passed PROMESA, which, among other
things, created the Financial Oversight and Management Board and
imposed an automatic stay on creditor lawsuits against the
government, which expired May 1, 2017.
The members of the oversight board are: (i) Andrew G. Biggs, (ii)
Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J.
Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii)
David A. Skeel Jr.
On May 3, 2017, the Commonwealth of Puerto Rico filed a petition
for relief under Title III of the Puerto Rico Oversight,
Management, and Economic Stability Act ("PROMESA"). The case is
pending in the United States District Court for the District of
Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's
PROMESA petition is available at
http://bankrupt.com/misc/17-01578-00001.pdf
On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation
(COFINA) commenced a case under Title III of PROMESA (D.P.R. Case
No. 17-01599). Joint administration has been sought for the Title
III cases.
On May 21, 2017, two more agencies -- Employees Retirement System
of the Government of the Commonwealth of Puerto Rico and Puerto
Rico Highways and Transportation Authority (Case Nos. 17-01685 and
17-01686) -- commenced Title III cases.
U.S. Chief Justice John Roberts named U.S. District Judge Laura
Taylor Swain to preside over the Title III cases.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq.,
at O'Neill & Borges LLC are onboard as attorneys.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains the case Website https://cases.primeclerk.com/puertorico
Jones Day is serving as counsel to certain ERS bondholders.
Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General
Obligation Bondholders.
PURDUE PHARMA: Ask Court for Ex-Owners' Litigation Shield Extension
-------------------------------------------------------------------
Rick Archer of Law360 Bankruptcy Authority reports that Purdue
Pharma has requested a New York bankruptcy judge to extend its
former owners' litigation shield for another month, stating that
while it expects to have a written plan, it needs more time to
formally file it.
About Purdue Pharma LP
Purdue Pharma L.P. and its subsidiaries --
http://www.purduepharma.com/-- develop and provide prescription
medicines and consumer products that meet the evolving needs of
healthcare professionals, patients, consumers and caregivers.
Purdue's subsidiaries include Adlon Therapeutics L.P., focused on
treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and
related disorders; Avrio Health L.P., a consumer health products
company that champions an improved quality of life for people in
the United States through the reimagining of innovative product
solutions; Imbrium Therapeutics L.P., established to further
advance the emerging portfolio and develop the pipeline in the
areas of CNS, non-opioid pain medicines, and select oncology
through internal research, strategic collaborations and
partnerships; and Greenfield Bioventures L.P., an investment
vehicle focused on value-inflection in early stages of clinical
development.
Opioid makers in the U.S. are facing pressure from a crackdown on
the addictive drug in the wake of the opioid crisis and as state
attorneys general file lawsuits against manufacturers. More than
2,000 states, counties, municipalities and Native American
governments have sued Purdue Pharma and other pharmaceutical
companies for their role in the opioid crisis in the U.S., which
has contributed to the more than 700,000 drug overdose deaths in
the U.S. since 1999.
OxyContin, Purdue Pharma's most prominent pain medication, has been
the target of over 2,600 civil actions pending in various state and
federal courts and other fora across the United States and its
territories.
On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated
debtors each filed a voluntary petition for relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
19-23649), after reaching terms of a preliminary agreement for
settling the massive opioid litigation. The Debtors' consolidated
balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets
and $562 million in liabilities.
U.S. Bankruptcy Judge Robert Drain oversees the cases.
The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP, as
legal counsels; PJT Partners as investment banker; AlixPartners as
financial advisor; and Grant Thornton, LLP as tax structuring
consultant. Prime Clerk, LLC, is the claims agent.
Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the
official committee of unsecured creditors appointed in the Debtors'
bankruptcy cases.
David M. Klauder, Esq., is the fee examiner appointed in the
Debtors' cases. The fee examiner is represented by Bielli &
Klauder, LLC.
* * *
U.S. Bankruptcy Judge Robert Drain in early September 2021 approved
a plan to turn Purdue into a new company (Knoa Pharma LLC) no
longer owned by members of the Sackler family, with its profits
going to fight the opioid epidemic. The Sackler family agreed to
pay $4.3 billion over nine years to the states and private
plaintiffs and in exchange for a lifetime legal immunity. The deal
resolves some 3,000 lawsuits filed by state and local governments,
Native American tribes, unions, hospitals and others who claimed
the company's marketing of prescription opioids helped spark and
continue an overdose epidemic.
Separate appeals to approval of the Plan have already been filed by
the U.S. Bankruptcy Trustee, California, Connecticut, the District
of Columbia, Maryland, Rhode Island and Washington state, plus some
Canadian local governments and other Canadian entities.
In early March 2022, Purdue Pharma reached a nationwide settlement
over its role in the opioid crisis, with the Sackler family members
boosting their cash contribution to as much as $6 billion. The
settlement was hammered out with attorneys general from the eight
states -- California, Connecticut, Delaware, Maryland, Oregon,
Rhode Island, Vermont and Washington -- and D.C. who had opposed
the previous settlement.
R2O GROUP: Seeks Chapter 11 Bankruptcy Protection in New Jersey
---------------------------------------------------------------
On February 9, 2025, The R2O Group LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the District of New Jersey.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will not be available to unsecured creditors.
About The R2O Group LLC
The R2O Group LLC is a limited liability company.
The R2O Group LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 25-11337) on February 9,
2025. In its petition, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Michael B. Kaplan handles the case.
The Debtor is represented by:
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
RELIANT LIFE: Seeks to Extend Plan Exclusivity to May 5
-------------------------------------------------------
Reliant Life Shares, LLC, asked the U.S. Bankruptcy Court for the
Central District of California to extend its exclusivity periods to
file a plan of reorganization and obtain acceptance thereof to May
5 and July 7, 2025, respectively.
The Debtor claims that this case is complicated. The Debtor's
assets consist of unallocated interests in trusts that hold life
insurance policies and forfeited interests in the trust that
resulted from clients declining to pay their share of premiums as
is required to maintain their interest in the trust. The Debtor
does not know what these interests are worth, because that depends
on a number of factors, including the health status of the insured.
The Debtor explains that it needs to value these policies in order
to fully evaluate the best course of action. The Debtor is also in
the process of collecting past due premium payments for clients and
invoicing for premium payments that will come due, and knowing how
many of the Debtor's clients will forfeit their interests at this
point is information that will be important in analyzing how the
Debtor emerges from this case.
In addition, the Debtor has just resolved a central dispute about
the collateral of the Judgment Creditors and how the Judgment
Creditors will be paid, and if approved by the Court at the hearing
on February 6, 2025, that will play a significant role in the
Debtor's plan. Given all these factors as well as the reality that
the Debtor's management has only been at the helm since early
October, the Debtor submits that cause exists to extend the
exclusivity periods by 90 days.
Reliant Life Shares, LLC is represented by:
Hamid R. Rafatjoo, Esq.
RAINES FELDMAN LITTRELL LLP
1900 Avenue of the Stars
19th Floor
Los Angeles, CA 90067
Tel: 310-440-4100
Email: hrafatjoo@raineslaw.com
About Reliant Life Shares
Reliant Life Shares LLC is an investment service in Los Angeles,
California.
Reliant Life Shares sought relief under Chapter 11 of the U.S.
Bankruptcy Code {Bankr. C.D. Cal. Case No. 24-11695) on Oct. 7,
2024. In the petition filed by CRO Nicholas Rubin, Reliant
estimated assets and liabilities between $10 million and $50
million each.
The Honorable Bankruptcy Judge Martin R. Barash oversees the case.
The Debtor tapped Raines Feldman Littrell LLP as counsel, and Force
Ten Partners LLC as restructuring advisor. Stretto is the claims
agent.
REYNOLDS CONSUMER: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
-------------------------------------------------------------------
Fitch Ratings has affirmed Reynolds Consumer Products LLC
(Reynolds) and Reynolds Consumer Products Inc.'s Long-Term Issuer
Default Ratings (IDRs) at 'BB+'. Fitch also affirmed the company's
first lien secured RCF and existing senior secured term loan at
'BBB-' with a Recovery Rating of 'RR1'.
Fitch has assigned a 'BBB-'/'RR1' rating to Reynolds' new proposed
$1.645 billion first lien secured term loan. It will be used to
repay the existing term loan, which matures in February 2027, and
any fees and expenses. The Rating Outlook is Stable.
Reynolds' rating reflects its conservative financial policies, with
EBITDA leverage projected to remain below 3x over the rating
horizon. A focus on innovation supports its leading market
position, and liquidity is robust with annual FCF in the
mid-to-high $100 million range. This is offset by Reynolds' smaller
scale, high exposure to raw material price fluctuations, and
limited product diversity vs. larger consumer goods firms.
Key Rating Drivers
Conservative Financial Policies: Fitch anticipates Reynolds will
maintain EBITDA leverage below 3.0x over the next several years,
with leverage of around 2.3x expected in 2025, a modest improvement
from 2.4x in 2024, due primarily to debt reduction. The company has
used FCF to repay over $800 million in debt since 2020.
This aligns with Reynolds' commitment to a net debt leverage target
of 2.0x-2.5x, which is broadly consistent with Fitch-calculated
EBITDA leverage (adjusted for cash balances). Fitch believes
Reynolds could deploy FCF toward making complementary acquisitions,
investing in internal growth initiatives moving or repaying debt
moving forward.
Limited Diversification, Small Scale: Reynolds' lower degree of
diversification and EBITDA relative to larger consumer goods
companies limits its resiliency to economic and idiosyncratic
challenges. Its performance is primarily driven by the Reynolds and
Hefty brands. It also lacks the size and breadth of the portfolios
of larger consumer goods companies, which may include cleaning
agents, personal care, and health and wellness segments.
The lower diversity is partly offset by conservative financial
policies and strong market share in its key categories. Reynolds
would need to sustain EBITDA at around $750 million (vs. $697
million in 2024) for Fitch to consider positive rating action.
Declining Sales: Reynolds' sales are forecast to decline in the low
single digit range in 2025, to around $3.6 billion, after declining
by 1.6% in both 2024 and 2023. The decline is primarily due to
pressures in foam category sales as a result of regulatory
developments, shifts in consumer preferences and retailer
strategies, with stability in other categories. Reynolds' strong
brand presence and continued focus on investing in innovation could
support increased distribution over the next several years,
supporting a return to low-single-digit growth annually in 2026 and
thereafter.
Good Profitability: Reynolds could generate around $700 million of
EBITDA in 2025, roughly in line with the $697 million it generated
in 2024. Input cost inflation is a headwind in 2025, but the
company's focus on cost improvements and potential pricing actions
should enable EBITDA margins to grow modestly to the low-to-mid 19%
range (compared to 18.9% in 2024). EBITDA could continue to rise
starting in 2026, driven by modest margin expansion and a return to
low-single-digit sales growth.
Potential for Profit Volatility: Reynolds' exposure to raw material
prices, with aluminum and resin making up about 40% of raw material
costs, can dampen profitability. The potential timing lag between
input cost increases and the company's ability to raise prices
creates potential for earnings volatility. Input cost increases
combined with operational issues led to Reynolds' EBITDA margins
declining to the 14%-17% range in 2021 through 2023, before
improving to the 18% range in 2024. Fitch's base case does not
include the impact of tariffs, however; Fitch believes Reynolds has
sufficient headroom to navigate earnings volatility and maintain
adequate EBITDA and leverage for its rating.
Leading U.S. Market Share: Reynolds holds a number one or two U.S.
market position in the majority of the product categories in which
it participates. It also has the largest market share in consumer
aluminum foil in both the U.S. and Canada. Over 50% of 2024 revenue
came from products where Reynolds held a leading market share
position in the category. The company leverages branded and private
label offerings, allowing it to maintain a prominent and defensible
shelf space position with retail partners.
Category Innovator: Reynolds has been an innovation leader within
the categories in which it operates. Fitch believes this is
important in mature markets with high levels of competition.
Innovations, such as using recycled materials and introducing
value-added features to traditional products to address consumer
needs, have helped the company gain and sustain market share.
Reynolds has stated that over 20% of its 2023 sales came from
products that were introduced to the market over the past three
years.
Concentrated Ownership: Reynolds is majority owned and controlled
by Packaging Finance Limited (PFL). Ownership concentration
introduces potential concerns regarding board independence and
effectiveness, as well as potential risks related to the financial
policy. Reynolds has, however, demonstrated relatively strong
governance, including conservative financial policies since its IPO
in 2020.
Parent Subsidiary Linkage: Its analysis includes a weak
parent/strong subsidiary approach between Reynolds and its
subsidiary, Reynolds Consumer Products LLC (BB+/Stable). Fitch
assesses the quality of linkage as high, which results in an
equalization of IDRs across the corporate structure.
Derivation Summary
Similarly rated credits in its consumer portfolio include Mattel,
Inc. (BBB-/Stable), Hasbro, Inc. (BBB-/Negative) and Coty Inc.
(COTY, BB+/Stable). Reynolds' scale, measured by EBITDA, is smaller
than that of the three peers. Its leverage could be similar to
higher-rated peer Mattel, but Fitch expects it to be lower than
other consumer goods peers in the medium term.
Key Assumptions
- Sales decline in the low-single-digit range to around $3.6
billion in 2025, driven by declines in the foam category because of
regulatory shifts and changes in consumer preferences and retailer
strategies. Fitch expects other categories to remain relatively
stable. Growth could be in the low single-digit range thereafter,
supported by distribution gains and new product launches.
- EBITDA of around $700 million in 2025, driven by EBITDA margins
in the low 19% range (compared to 18.9% in 2024), supported by
Reynolds' focus on improving its cost structure which offsets
headwinds from inflation. EBITDA margins could improve modestly but
remain in the 19% range in 2026 and 2027.
- Annual FCF in the mid-to-high $100 million range between
2025-2026, assuming capex of around 4% of sales and annual
dividends of around $200 million. Reynolds could deploy cash toward
debt repayment, reinvestment in the business to support organic
growth or through acquisitions to support inorganic growth.
- EBITDA leverage of around 2.3x in 2025 (2.4x at YE 2024), with
leverage remaining below 3x across the forecast period.
- Base interest rate in the 475bps-350bps range between 2025 and
2028, with annual interest expense partially offset by the
company's interest rate hedges.
Recovery Analysis
Fitch has assigned Recovery Ratings (RRs) to the various debt
tranches in accordance with Fitch criteria, which allows for the
assignment of RRs for issuers with IDRs in the 'BB' category. Given
the distance to default, RRs in the 'BB' category are not computed
by bespoke analysis. Instead, they serve as a label to reflect an
estimate of the risk of these instruments relative to other
instruments in the entity's capital structure. Fitch has assigned
the first-lien credit facilities (term loan and revolver) a
'BBB-'/'RR1' rating, indicating outstanding recovery prospects post
default.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- EBITDA leverage sustained above 4.0x as a result of financial
performance below Fitch's expectations yielding EBITDA sustained in
the low $500 million range;
- A change in financial policy or a transformative debt-funded
acquisition absent a clear path to deleveraging to below 4.0x
within 24 months of acquisition close could also lead to negative
rating actions.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- An upgrade could be considered if the company exhibited low
single digit organic growth and EBITDA approaching $750 million,
with gross EBITDA leverage sustained below 3.0x.
Liquidity and Debt Structure
As of Dec. 31, 2024, Reynolds had total liquidity of $831 million,
including cash and cash equivalents of $137 million and $694
million available under its $700 million secured RCF due in October
2029 (net of $6 million of letters of credit outstanding). Fitch
expects the company could generate post-dividend FCF in the
mid-to-high $100 million range annually between 2025 and 2026.
This good liquidity buffer should provide Reynolds with the
resources to continue investing in its business in order to drive
growth as well as navigate any operating challenges that may occur.
The company could also deploy FCF toward debt repayment or
acquisitions.
Pro-forma for the proposed refinancing, Reynolds' capital structure
is comprised of a $700 million senior secured revolving credit
facility maturing in October 2029 and a $1.645 billion senior
secured term loan debt expected to mature in 2032. During 2024, the
company made voluntary payments of $150 million on its existing
term loan facility.
Reynolds' term loan and revolver are guaranteed by wholly owned
domestic subsidiaries as well as Reynolds Consumer Products Inc.,
and secured by a first priority pledge of all equity interests held
by the borrower and guarantors, and priority security interest in
all other assets.
Issuer Profile
Reynolds produces and sells cooking products, waste and storage
products, and tableware under brands such as Reynolds and Hefty and
store brands. The product portfolio includes aluminum foil, wraps,
disposable bakeware, trash bags, food storage bags and disposable
tableware.
Summary of Financial Adjustments
Fitch adjusted historical and projected EBITDA to add back non-cash
stock-based compensation and exclude non-recurring charges.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Reynolds Consumer
Products LLC LT IDR BB+ Affirmed BB+
senior secured LT BBB- New Rating RR1
senior secured LT BBB- Affirmed RR1 BBB-
Reynolds Consumer
Products Inc. LT IDR BB+ Affirmed BB+
REYNOLDS CONSUMER: Moody's Rates New $1.64BB First Lien Loan 'Ba1'
------------------------------------------------------------------
Moody's Ratings assigned a Ba1 rating to Reynolds Consumer Products
LLC's proposed new $1.64 billion backed senior secured first lien
term loan. Reynolds other ratings are unchanged including the
company's Ba1 Corporate Family Rating, Ba1-PD Probability of
Default Rating, and Ba1 rating on its senior secured first lien
revolving credit facility. The outlook is stable and there is no
change to the company's SGL-1 Speculative Grade Liquidity Rating
(SGL). Moody's will withdraw the Ba1 rating on the existing senior
secured first lien term loan after the refinancing transaction
closes.
Proceeds from the new $1.645 billion term loan due 2032 will be
used to repay an equivalent amount of debt outstanding on the
existing term loan due 2027. The transaction will extend Reynolds
maturity profile without materially affecting interest expense. The
term loan will be subject to quarterly amortization of principal of
1% per annum. Reynolds prepaid the amortization on the existing
term loan, but Moody's do not anticipate the roughly $16.5 million
of amortization payments to materially affect the company's very
good liquidity. The transaction is leverage neutral and debt/EBITDA
is expected to remain unchanged at roughly 2.6x including Moody's
standard adjustments for the 12-month period ended December 31,
2024.
RATINGS RATIONALE
Reynolds Consumer Products' Ba1 CFR reflects its leading market
position, strong brand name, and established product categories
with stable demand. The company also benefits from its historically
good operating performance, strong free cash flow, and very good
liquidity. These strengths are partially offset by Reynolds'
sensitivity to raw material prices, particularly aluminum and
resin, which exposure creates volatility in the EBITDA margin and
free cash flow. The company is seeing modest volume and pricing
pressure. Geopolitical and tariff risks are a concern in so far as
they impact the cost of raw materials globally and put pressure on
consumer spending. However, good free cash flow and EBITDA margin
and a commitment to a strong balance sheet health including
operating with low leverage and committing to debt reduction
position Reynolds to navigate headwinds. Pressure from social
trends such as reducing waste from resin-derived products and
corporate governance factors relating to concentrated control
resulting from the company's majority ownership by a private
investor are also credit negatives. Reynolds' products operate in a
mature market and the company has strong penetration into most US
consumer households through branded and private label products. The
company is actively expanding its eco-friendly products to
strengthen its competitive position in response to the
above-mentioned societal trends though these actions require
significant capital investment and research & development. Other
concerns include the company's limited geographic diversity from a
global perspective with minimal sales outside the US, high customer
concentration, and fully secured capital structure, which Moody's
believe reduces financial flexibility. The company's aggressive
dividend policy is somewhat balanced by a reasonably conservative
net leverage target of 2.0x to 2.5x (based on the company's
calculation) with the company comfortably within this range at 2.3x
as of December 2024.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook captures Moody's view that Reynolds' market
position remains formidable and that the company will continue to
generate solid free cash flow and stable earnings. The outlook also
reflects Moody's expectation that Reynolds will maintain very good
liquidity and low debt to EBITDA through continued debt repayment
and stable earnings, but that there is event risk related to
periodic acquisitions.
Reynolds could be upgraded if the company demonstrates material
improvement in profitability and free cash flow and sustains debt
to EBITDA below 3.0x. An upgrade would also require improvement in
the financial flexibility of the capital structure including having
minimal or no secured debt.
Ratings could be downgraded if revenue or EBITDA weakens due to
volume declines, market share losses or cost increases. Debt to
EBITDA above 4.0x or free cash flow below $100 million could lead
to a downgrade. Share repurchases, an increase in the dividend, a
debt-financed acquisition or a deterioration in liquidity could
also lead to a downgrade.
The principal methodology used in this rating was Consumer Packaged
Goods published in June 2022.
Reynolds Consumer Products LLC, headquartered in Lake Forest,
Illinois, produces and sells products across three broad categories
including cooking products, waste & storage products and tableware.
Reynolds' brands include Reynolds®, Hefty®, Presto®, Diamond®,
and Alcan®. The company also sells its products under private
label store brands. Reynolds completed an initial public offering
in January 2020 and remains approximately 74% owned by Graeme Hart
through his ownership of Rank Group Limited. Reynolds' reported
revenue was $3.7 billion for the last 12 months ended December 31,
2024.
RHODIUM ENCORE: Sues Rival Riot Platform for Breach of Contract
---------------------------------------------------------------
Randi Love of Bloomberg Law reports that bankrupt bitcoin miner
Rhodium Encore LLC has sued a competitor and a service provider,
alleging breach of contract and tortious interference, and seeking
more than $300 million in damages for withheld power.
In a complaint filed in the U.S. Bankruptcy Court for the Southern
District of Texas, Rhodium claims that after Riot Platforms Inc.
acquired Whinstone US Inc. -- its former power supplier -- Riot
terminated Whinstone's contract with Rhodium for 100 megawatts of
power. Rhodium alleges that the power was instead diverted to Riot,
the report states.
About Rhodium Encore
Rhodium Encore LLC is a founder-led, Texas based, digital asset
technology company utilizing proprietary tech to self-mine bitcoin.
The Company creates innovative technologies with the goal of being
the most sustainable and cost-efficient producer of bitcoin in the
industry.
Rhodium Encore sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90448) on Aug.
24, 2024. In the petition filed by Michael Robinson, as co-CRO, the
Debtor reports lead debtor's estimated assets between $100 million
and $500 million and estimated liabilities between $50 million and
$100 million.
The Honorable Bankruptcy Judge Alfredo R. Perez oversees the case.
The Debtor tapped QUINN EMANUEL URQUHART & SULLIVAN, LLP, as
counsel, and PROVINCE as restructuring advisor.
RIVERSIDE MILITARY: Fitch Lowers Issuer Default Rating to 'C'
-------------------------------------------------------------
Fitch Ratings has downgraded Riverside Military Academy, GA's (RMA)
Issuer Default Rating (IDR) to 'C' from 'CCC+'. Fitch has also
downgraded approximately $48 million of Gainesville & Hall County
Development Authority series 2017 refunding revenue bonds issued on
behalf of RMA to 'C' from 'CCC+'.
Entity/Debt Rating Prior
----------- ------ -----
Riverside Military
Academy (GA) LT IDR C Downgrade CCC+
Riverside Military
Academy (GA) /General
Revenues/1 LT LT C Downgrade CCC+
The downgrade to 'C' reflects Fitch's view that RMA's future debt
payment capacity is likely permanently impaired. RMA failed to meet
its debt service coverage covenant (1.1x MADS) and liquidity
covenant (180 days cash on hand) in (unaudited) fiscal 2024. This
marked the second consecutive year of failing the annual debt
service coverage covenant, which triggers a consultant call-in
provision, but is not an event of default. The trustee is in active
discussions with majority bondholders about rights and remedies.
Through August 2024 (the most recent available), RMA reported
(unaudited) $13.9 million in total cash and investments (including
the DSRF) against $57.4 million in liabilities and a net operating
deficit of -$4 million. Fitch's review of publicly available
information suggests that continued debt service payment capacity
is unlikely.
The 'C' rating further reflects the very limited margin of
financial cushion between current performance and RMA's next debt
service payment on March 1. Fitch considers RMA's current
trajectory unsustainable, and failure to achieve revenue growth and
meaningful expense cuts will further deplete remaining balance
sheet resources in the near term.
RMA missed its enrollment and net tuition revenue targets in fall
2024, further weakening its balance sheet and jeopardizing future
capacity to make timely debt service payments. If RMA fails to meet
its liquidity covenant requirement of 180 days cash on hand when
tested at FYE 2025, it will be an event of default. Fitch considers
this outcome likely.
SECURITY
The bonds are an absolute and unconditional obligation of RMA,
secured by a first lien on the academy's campus and a cash-funded
debt service reserve fund equal to $3,275,933 as of Jan. 10, 2025.
KEY RATING DRIVERS
Revenue Defensibility - Weaker
Fitch's assessment of revenue defensibility at 'Weaker' reflects
RMA's continued decline in enrollment and net tuition revenues,
which remained below budgeted expectations for fiscal 2024 despite
modest improvement in fall 2024. The academy increased tuition and
fee rates, but total student-generated revenues have continued to
decline. RMA has repositioned its marketing strategies by launching
a rebranding campaign with the help of a marketing agency to
improve domestic and international enrollment prospects. However,
enrollment and net tuition revenue continue to fall well short of
targeted levels.
Operating Risk - Weaker
The 'Weaker' assessment reflects RMA's eroding capacity for
operating flexibility against a shrinking operating revenue base
and reliance on balance sheet draws to cover widening losses. RMA
required a draw of approximately $5 million to cover operations and
pay debt service in fiscal 2024, and it does not appear to have
narrowed that deficit in fiscal 2025. RMA's capex needs are
limited, but its operating cash flow and capacity to meet financial
obligations continue to deteriorate.
Management plans to make meaningful expense reductions and asset
sales to generate liquidity in the near term, including further
cuts in resident life staff and teaching positions due to declining
student enrollment. However, Fitch believes RMA may not be able to
meet its near-term financial obligations despite these planned
measures.
Financial Profile - Weaker
Fitch assesses RMA's financial profile at 'Weaker' driven by
extremely thin balance sheet metrics. As of FYE 2024 RMA had
approximately $8 million in available cash and investments (about
14%) against $48 million of adjusted debt, significantly below
recent historical levels. RMA's debt is amortized at a fixed rate,
and management has not reported any additional debt plans. In
fiscal 2024, Adjusted Debt/Total Operating Revenue was a high 3.4x,
with little prospect of moderation through its scenario analysis.
RMA is particularly susceptible to additional cash depletion from
operating losses in the near term, threatening its continued
capacity to meet debt service requirements. RMA's reported debt
service coverage calculation was 0.45x against a required 1.1x
covenant requirement in fiscal 2024. Annual debt service is
approximately $3.3 million.
Asymmetric Additional Risk Considerations
There were no asymmetric considerations incorporated in RMA's
rating.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Failure to make full and timely debt service payments or, any
agreement which includes any deferral of principal or interest in
lieu of default which Fitch would consider to be a distressed debt
exchange (DDE).
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Demonstrated ability and intent to make timely payments on all
debt service obligations the series 2017 bonds;
- Meaningful progress towards execution of a realistic financial
and operational restructuring plan that does not involve deferral
of principal or interest payments of the series 2017 bonds;
- Successful execution on strategic asset sale or philanthropic
efforts, which provide for sufficient cash resources as to insulate
bond payments against any operational stress.
PROFILE
Founded in 1907, Riverside Military Academy (RMA) is a
military-style college preparatory school for boys, offering
boarding and day school programs for grades 6-12. The academy is
located on a 206-acre campus in Gainesville, Georgia, about 60
miles northeast of Atlanta. The academy holds dual-accreditation
from the Southern Association of Independent Schools and the
Southern Association of Colleges and Schools, which was renewed in
2017.
The Riverside Military Academy Board of Trustees appointed Dr.
Robert Brittain "Britt" Daniel, J.D. as president, effective July
1, 2024.
Sources of Information
In addition to the sources of information identified in Fitch's
applicable criteria specified below, this action was informed by
data from Lumesis.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
RSTZ TRANSPORT: Gets Interim OK to Use Cash Collateral
------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia
issued an interim consent order authorizing RSTZ Transport Inc. to
use cash collateral.
The order authorized the company to use cash collateral in
accordance with its budget, with a 10% variance permitted per each
category, except for "owner compensation".
Creditors, including Riviera Finance and the U.S. Small Business
Administration, will be provided with protection in the form of
replacement liens on post-petition property, with the same
validity, extent, and priority as their pre-bankruptcy liens.
As additional protection, the SBA will receive monthly payments of
$3,493 starting this month.
A court hearing will be held on March 13.
Riviera Finance, as secured creditor, is represented by:
Anna M. Humnicky, Esq.
Small Herrin, LLP
100 Galleria Parkway, Suite 350
Atlanta, GA 30339
Phone: 770-783-1800
ahumnicky@smallherrin.com
About RSTZ Transport Inc.
RSTZ Transport Inc. is a Georgia-based corporation operating in the
general freight trucking industry.
RSTZ Transport filed Chapter 11 petition (Bankr. N.D. Ga. Case No.
25-20123) on January 31, 2025, listing total assets of $3,464,462
and total liabilities of $4,588,041.
Judge James R. Sacca oversees the case.
The Debtor is represented by:
Ian Falcone, Esq.
The Falcone Law Firm, PC
363 Lawrence St. NE
Marietta, GA 30060-2056
Tel: (770) 426-9359
Email: imf@falconefirm.com
SALT GROUP: Seeks Chapter 11 Bankruptcy Protection in Florida
-------------------------------------------------------------
On February 10, 2025, Salt Group Las Olas LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Southern District
of Florida. 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 Salt Group Las Olas LLC
Salt Group Las Olas LLC 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.
Salt Group Las Olas LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No.: 25-11397) on February
10, 2025. In its petition, the Debtor reports estimated assets
between $500,000 and $1 million and estimated liabilities between
$1 million and $10 million.
Honorable Bankruptcy Judge Scott M. Grossman handles the case.
The Debtor is represented by:
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
SANDVINE CORP: Set to Emerge from CCAA After Court Approval
-----------------------------------------------------------
Sandvine Corporation and certain of its affiliates and subsidiaries
announced on February 13, 2025, that on January 30, it received
formal approval from the Ontario Superior Court of Justice
(Commercial List) for its previously announced comprehensive
restructuring, clearing the path to emerge from protection under
the Companies' Creditors Arrangement Act through a sale of its
operations to a set of well-capitalized, newly formed entities. In
addition, on February 12, 2025, the Company received recognition
and enforcement of the Canadian Court's order within the United
States. The Company plans to execute the restructuring transaction
and launch its new brand in the coming weeks.
"Today we announce an important milestone in the Company's business
realignment. We are confident that with the overwhelming support of
our investors, customers, and employees, we are positioned for
continued success as a technology solutions provider of choice for
leading telecom and communications companies across the democratic
world," said Carney Hawks, Chairman of the Board of Sandvine. "We
look forward to entering this next chapter, which we are confident
will be marked by innovation in best-in-class technology, strong
business and financial performance, and outstanding customer
service."
The Company will continue to work closely with stakeholders while
focusing on promoting internet freedom and digital rights.
About Sandvine Corporation
Sandvine Corporation, headquartered in Waterloo, Ontario, Canada,
and owned by funds affiliated with Francisco Partners, provides
network and application intelligence solutions to mobile, fixed,
cable, satellite and Wi-Fi service providers, and governments
globally.
Sandvine sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Texas, Bankr. Case No. 24-33617) on November 7,
2024. Other affiliates who sought Chapter 11 protection are New
Procera GP Company, Sandvine Holdings UK Limited, Sandvine OP (UK)
Ltd, Procera Networks, Inc., and Procera Holding, Inc.
Judge Stacy G. Jernigan presides over the case.
The Foreign Representative is Sandvine Corporation, represented by
Robert A. Britton, Esq., Claudia R. Tobler, Esq., and Xu Pang,
Esq., at PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP, in New York,
and Jason S. Brookner, Esq., Lydia R. Webb, Esq., and Sean R.
Burns, Esq., at GRAY REED, in Dallas, Texas.
SCORPIUS HOLDINGS: Issues $1 Million Promissory to Investor
-----------------------------------------------------------
Scorpius Holdings, Inc., submitted a Form 8-K to the Securities and
Exchange Commission, revealing that on Feb. 12, 2025, it issued a
non-convertible promissory note worth $1,000,000 to an
institutional investor. The Note accrues interest at the rate of
5.0% per annum and matures on the earlier of: (i) April 30, 2025;
(ii) the consummation of a Corporate Event (as that term is defined
in the Note); or (iii) when, upon or after the occurrence of an
event of default under the Note. Any payments made by the Company
at maturity, redemption, or prepayment of the Note will include, in
addition to the principal and/or interest, a premium equal to 5% of
the Note's principal amount.
The Note contains standard default events, including: if the
Company or any of its subsidiaries fails to pay more than $150,000
in debt to a third party, with certain exceptions; or if a default
happens under any other existing promissory note of the Company.
If at any time the Note is outstanding the Company consummates a
subsequent Financing (as that term is defined in the Note), the
Holder will have the right, in its sole discretion, to require that
the Company redeem the entire outstanding balance of the Note,
together with all accrued interest thereon, using up to 100% of the
gross proceeds of such Financing.
About Scorpius Holdings
Headquartered in Morrisville, NC, Scorpius Holdings, Inc. --
http://www.scorpiusbiologics.com-- provides process development
and biomanufacturing services to support the biomanufacturing needs
of third parties who use its biomanufacturing capacity as a
fee-for-service model through its subsidiary, Scorpius
Biomanufacturing, Inc. (formerly known as Scorpion Biological
Services, Inc.). Scorpius couples CGMP biomanufacturing and quality
control expertise with cutting edge capabilities in immunoassays,
molecular assays, and bioanalytical methods to support cell- and
gene-based therapies as well as large molecule biologics using
American-made equipment, reagents, and materials.
Raleigh, North Carolina-based BDO USA, P.C., the Company's auditor
since 2012, issued a "going concern" qualification in its report
dated April 26, 2024. The report cited that the Company has
suffered recurring losses from operations and has not generated
significant revenue or positive cash flows from operations. These
factors raise substantial doubt about the Company's ability to
continue as a going concern.
For the years ended Dec. 31, 2023 and 2022, the Company incurred
net losses of $46.8 million and $43.9 million, respectively. The
Company has an accumulated deficit of $254.4 million through Dec.
31, 2023. The Company expects to continue to incur operating
losses until such time, if ever, as it is able to achieve
sufficient levels of revenue from operations.
SEARS HOMETOWN: Chancery OKs Appraisal Suit to Fix Damage Ruling
----------------------------------------------------------------
Jeff Montgomery of Law360 reports that a Sears Hometown Stores
investor, whose share appraisal case was disrupted by the
company’s 2019 bankruptcy, secured a $4.06 per share payout in a
Delaware Court of Chancery ruling on Thursday, February 13, 2025.
The decision focused on fair pricing and claims for full and
incremental damages, the report states.
About Sears Authorized Hometown Stores
Sears Authorized Hometown Stores, LLC distributes products through
approximately 121 "Sears Hometown Stores," which are locally owned
and operated businesses that offer a selection of the trusted names
in home appliances, lawn and garden equipment, and tools.
Sears Authorized Hometown Stores, LLC, and Sears Hometown Stores,
Inc., sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Lead Case No. 22-11303) on Dec. 12, 2022.
In the petition signed by Elissa Robertson, CEO, Sears Authorized
Hometown disclosed up to $50 million in assets and up to $100
million in liabilities.
Judge Laurie Selber Silverstein oversees the cases.
Saul Ewing LLP is the Debtors' legal counsel. The Debtors tapped
Gray & Company, LLC, as financial advisor and Stretto as claims and
noticing agent.
SEVEN RIVERS: Gets OK to Use Cash Collateral
--------------------------------------------
Seven Rivers Leasing Corporation, Inc. got the green light from the
U.S. Bankruptcy Court for the Western District of Arkansas, Fort
Smith Division, to use cash collateral.
The order signed by Judge Bianca Rucker authorized the company to
use cash collateral, subject to the terms of its security agreement
with First Financial Bank.
As protection, First Financial Bank will receive payment in the
amount of $1,000 or 2% of gross receipts for the month prior to the
month of payment, whichever is greater.
The company's authority to use cash collateral will remain in force
and effect until the confirmation of a plan of reorganization or
liquidation, or until its Chapter 11 case is dismissed or converted
to one under Chapter 7.
First Financial Bank is represented by:
James Paul BeachBoard, Esq.
Wright, Lindsey & Jennings, LLP
200 W. Capitol Avenue, Suite 2400
Little Rock, AR 72201
Phone: 501.978.9904
Fax: 501.376.9442
jbeachboard@wlj.com
About Seven Rivers Leasing Corporation
Seven Rivers Leasing Corporation, Inc. is primarily engaged in
renting and leasing real estate properties.
Seven Rivers filed Chapter 11 petition (Bankr. W.D. Ark. Case No.
24-72084) on December 15, 2024, listing between $10 million and $50
million in assets and between $500,001 and $1 million in
liabilities. The petition was signed by Brenda Sloan as secretary
and treasurer.
Judge Bianca M. Rucker presides over the case.
The Debtor is represented by:
Stanley V. Bond, Esq.
Bond Law Office
Tel: 479-444-0255
Email: attybond@me.com
SHENANDOAH MEDICAL: Gets Interim OK to Use Cash Collateral
----------------------------------------------------------
Shenandoah Medical Care Center, LLC received approval from the U.S.
Bankruptcy Court for the Southern District of Florida, West Palm
Beach Division, to use the cash collateral of its secured creditors
on an interim basis until further order of the court.
The company requires the use of cash collateral to pay its regular
business expenses, as well as its administrative expenses as they
become due; to continue operating as a going concern; and to
maintain compliance with the guidelines of the Office of the U.S.
Trustee.
As adequate protection, secured creditors Bank United N.A., the
U.S. Small Business Administration and CT Corporation System, as
representative, were granted a replacement lien on Shenandoah's
property to the same extent as their respective pre-bankruptcy
liens.
The next hearing is scheduled for March 26.
About Shenandoah Medical Care Center
Shenandoah Medical Care Center, LLC sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-23207)
on December 18, 2024, with $500,001 to $1 million in both assets
and liabilities. Joy Mowett-Fuller, company owner and manager,
signed the petition.
Judge Erik P. Kimball oversees the case.
The Debtor is represented by:
Monique D Hayes
Dgim Law, PLLC
Tel: 305-898-2063
Email: monique@dgimlaw.com
SIDHU TRANSPORTS: Seeks to Extend Plan Filing Deadline to March 6
-----------------------------------------------------------------
Sidhu Transports LLC asked the U.S. Bankruptcy Court for the
Southern District of Indiana to extend its time to file a Chapter
11 plan to March 6, 2025.
During the pendency of this case, specifically on or about January
20, 2025, one of the Debtor's drivers reported an accident
involving black ice that resulted in the total loss of a truck, VIN
3AKJHHDRXOSNG7452, which is collateral for creditor BMO Bank N.A.,
and a trailer VIN 1JJV532B8NL295112, which is collateral for
creditor PNC Bank, NA (together, "Vehicles").
The Debtor explains that it has submitted insurance claims
regarding the Vehicles, but has not yet received payment for the
total loss of the Vehicles. The Debtor intends to use the proceeds
to replace the Vehicles and substitute the replacement vehicle as
the creditors' collateral.
The Debtor claims that it cannot formulate a plan until it receives
the proceeds and is able to replace the Vehicles, since it will not
be possible to provide for adequate treatment in a plan for
creditors BMO Bank, N.A. or PNC Bank, N.A., or prepare revenue
projections until replacements have been obtained.
The Debtor believes it will receive insurance proceeds
approximately in the next 30 days. Thereafter, the Debtor
anticipates that formulation of a new plan will take no more than
30 days, up to and including March 6, 2025.
The Debtor cites that it should not justly be held accountable for
the need for an extension as it is not at fault for the loss of the
Vehicles, has been actively working towards recovery of the
insurance proceeds and a substitution of collateral, and will
shortly thereafter propose a plan.
Sidhu Transports, LLC is represented by:
Harley K. Means, Esq.
Kroger Gardis & Regas, LLP
111 Monument Circle, Suite 900
Indianapolis, IN 46204
Tel: (317) 777-7434
Email: hmeans@kgrlaw.com
About Sidhu Transports
Sidhu Transports, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ind. Case No.
24-06022) on Nov. 6, 2024, listing up to $50,000 in assets and up
to $10 million in liabilities. The petition was signed by Sukhdev
Singh as owner.
Judge Jeffrey J Graham presides over the case.
Harley K. Means, Esq., at Kroger, Gardis & Regas, L.L.P., is the
Debtor's legal counsel.
SILVER AIRWAYS: Hearing to Use Cash Collateral Set for Feb. 27
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida is
set to hold a final hearing on Feb. 27 to consider the motion by
Silver Airways, LLC and Seaborne Virgin Islands, Inc. to use cash
collateral.
The court's previous interim order issued on Feb. 6 extended the
companies' authority to access cash collateral from Jan. 30. to
Feb. 13.
The interim order granted Brigade Agency Services LLC, Argent
Funding, LLC and Volant SVI Funding, LLC replacement liens on the
personal property owned by the companies as protection for the use
of their cash collateral.
About Silver Airways
Silver Airways, LLC is a regional U.S. airline operating flights
between gateways in Florida, the Southeast and The Bahamas. The
Silver Airways fleet is comprised of modern, state of the art
aircraft with reliable, fuel-efficient turbo-prop engines.
In the summer of 2018, Silver completed the acquisition of Seaborne
Airlines, a San Juan, Puerto Rico-based air carrier serving
destinations throughout Puerto Rico, the U.S. Virgin Islands, and
other countries in the Caribbean. Seaborne provides connections
throughout the Caribbean via the carrier's hub in San Juan, while
also serving as the most critical link between St. Croix and St.
Thomas with the carrier's seaplane operation.
Silver Airways and Seaborne Virgin Islands, Inc. filed Chapter 11
petitions (Bankr. S.D. Fla. Lead Case No. 24-23623) on December 30,
2024. At the time of the filing, Silver Airways reported $100
million to $500 million in assets and liabilities while Seaborne
reported $1 million to $10 million in assets and liabilities.
Judge Peter D. Russin oversees the cases.
Brian P. Hall, Esq., is the Debtors' legal counsel.
Brigade Agency Services LLC, as secured lender, is represented by:
Frank P. Terzo, Esq.,
Nelson Mullins Riley & Scarborough, LLP
100 S.E. 3rd Avenue, Suite 2700
Fort Lauderdale, FL 33394
Telephone: 954-764-7060
Fax: 954-761-8135
Email: frank.terzo@nelsonmullins.com
Argent Funding LLC and Volant SVI Funding LLC, as secured lenders,
are represented by:
Regina Stango Kelbon, Esq.
Blank Rome, LLP
1201 N. Market Street, Suite 800
Wilmington, DE 19801
Phone: +1.302.425.6400
Fax: +1.302.425.6464
Email: regina.kelbon@blankrome.com
SIZZLING PLATTER: Moody's Alters Outlook on 'B3' CFR to Negative
----------------------------------------------------------------
Moody's Ratings changed Sizzling Platter, LLC's outlook to negative
from stable. Concurrently, Moody's affirmed the B3 corporate family
rating, the B3-PD probability of default rating and the B3 rating
on the $350 million backed senior secured notes.
The change in outlook to negative reflects governance
considerations particularly that Sizzling Platter's entire capital
structure comes due in 2025. This includes the unrated $80 million
revolving credit facility that expires in August 2025 and the $350
million senior secured notes that mature in November 2025. This
results in a weak liquidity profile as Sizzling Platter does not
have enough cash on hand nor free cash flow to repay the notes when
they come due and therefore is reliant on the capital markets to
refinance in short order.
However, the ratings affirmation is supported by Sizzling Platter's
solid growth history, steady business fundamentals, low leverage,
strong coverage and an expectation that the company will complete
the refinancing in the very near future. It also reflects that
Sizzling Platter's private equity owners have in the past provided
capital support for acquisitions.
RATINGS RATIONALE
Sizzling Platter's B3 CFR reflects its value focus which is driving
steady demand from cost- conscious consumers, and the strong brand
recognition of its franchised brands that includes Little Caesar's,
Wingstop, Jamba, Dunkin' and Jersey Mikes and the company's solid
credit metrics. However, the credit profile is constrained by the
company's weak liquidity because of the revolver expiration on
August 25, 2025 and the senior secured notes maturity in November
2025 which Sizzling Platter needs to address in short order. The
rating also considers Sizzling Platter's modest scale with 786
restaurants, its concentration in a single brand with Little
Ceasar's representing about 60% of its locations as well as its
modest geographic concentration. The credit profile acknowledges
that Sizzling Platter has maintained moderate credit metrics
despite its private equity ownership. For the twelve month period
ended October 06, 2024, Moody's adjusted debt to EBITDA was 3.0x
and EBIT/interest coverage was 2.1x. Moody's expect credit metrics
to improve on the back of modestly increasing traffic,
contributions to revenue and EBITDA from new units and cost
efficiencies that come with increased scale.
The change to a CIS-5 acknowledges that the rating is lower than it
would have been if ESG exposures did not exist and that the
negative impact is pronounced. This reflects the change in its
governance score to G-5 which indicates very high governance risk.
The new scores reflect Sizzling Platter's current very aggressive
financial strategies which allowed all the companies debt
obligations to become current.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade is unlikely given the negative outlook. However, the
outlook could return to stable should Sizzling Platter refinance
its capital structure with more longer dated maturities. An
upgrade would require continued steady operating performance, debt
to EBITDA sustained below 5.5x and EBIT/interest expense sustained
above 1.75x. An upgrade would also require good liquidity including
a long dated capital structure and positive free cash flow.
A downgrade could occur if the issuer is unable to refinance in the
very near term. Other factors for a downgrade would be same store
sales turning negative resulting in deterioration of credit
metrics. Quantitatively, a downgrade could occur if debt to EBITDA
were sustained above 6.75x or EBIT/interest expense sustained below
1.25x on a sustained basis.
Headquartered in Murray, Utah, Sizzling Platter, LLC owns and
operates 459 Little Caesars, 92 Jambas, 166 Wingstop, 30 Dunkin', 7
Sizzler's Steak House, 5 Red Robin Gourmet Burgers, 2 Cinnabon and
25 Jersey Mike's franchised restaurants as of October 06, 2024.
Revenue for the twelve month period ended October 2024 was $1.1
billion. Sizzling Platter is owned by the private equity firm
CapitalSpring.
The principal methodology used in these ratings was Restaurants
published in August 2021.
SM MILLER: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: SM Miller Enterprises Inc.
11816 Inwood Rd., Ste. 71071
Dallas, TX 75244-8011
Chapter 11 Petition Date: February 13, 2025
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 25-30527
Judge: Hon. Stacey G Jernigan
Debtor's Counsel: Jacob King, Esq.
MUNSCH HARDT KOPF & HARR, P.C.
500 N. Akard St., Ste. 4000
Dallas, TX 75201
Tel: 214-855-7500
Email: jking@munsch.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Scott A. Miller as president.
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/3MB5V7Y/SM_Miller_Enterprises_Inc__txnbke-25-30527__0001.0.pdf?mcid=tGE4TAMA
SMILEDIRECTCLUB INC: Trustee Gets Court Approval to Tap Orrick
--------------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that on
February 14, 2025, a Texas bankruptcy judge approved the Chapter 7
trustee's request to hire Orrick Herrington & Sutcliffe LLP as
special litigation counsel for SmileDirectClub's liquidation.
The judge ruled that Orrick met U.S. Bankruptcy Code requirements,
despite not being notified earlier about the firm's previous work
for the trustee, the report states.
About SmileDirectClub Inc.
SmileDirectClub, Inc. (Nasdaq: SDC) --
http://www.SmileDirectClub.com/-- is an oral care company and
creator of the first medtech platform for teeth straightening.
Through its cutting-edge telehealth technology and vertically
integrated model, SmileDirectClub is revolutionizing the oral care
industry. Its mission is to democratize access to a smile each and
every person loves by making it affordable and convenient for
everyone. SmileDirectClub is headquartered in Nashville,
Tennessee.
SmileDirectClub and its affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No.
23-90786) on Sept. 29, 2023. In the petition signed by its chief
financial officer, Troy Crawford, SmileDirectClub disclosed
$498,712,000 in assets and $1,051,823,000 in liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International, LLP as general bankruptcy counsel; Jackson Walker,
LLP, as local bankruptcy counsel; Centerview Partners, LLC as
financial advisor and investment banker; FTI Consulting, Inc., as
restructuring advisor; and Kroll Restructuring Administration, LLC,
as notice and claims agent.
SMOKECRAFT CLARENDON: Gets Extension to Access Cash Collateral
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maryland extended
Smokecraft Clarendon, LLC's authority to use cash collateral from
Jan. 31 to March 31.
The company requires the use of cash collateral to pay its
operating expenses during the interim period.
As protection, Capital Bank, National Association was granted
security interest and replacement lien on all of the unencumbered
pre-bankruptcy and post-petition assets of the company.
In addition, the bank will receive a monthly payment of $1,500.
In case of any diminution in the value of its collateral, Capital
Bank will receive a superpriority administrative claim.
About Smokecraft Clarendon
Smokecraft Clarendon, LLC, owns and operates a barbecue restaurant
in Arlington County, Virginia, sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 24-13609) on
April 29, 2024. In the petition signed by Andrew Darneille,
manager, the Debtor disclosed $129,456 in total assets and
$1,379,956 in total liabilities.
Judge Hon. Maria Ellena Chavez-Ruark oversees the case.
The Debtor is represented by:
Maurice Belmont VerStandig, Esq.
The Verstandig Law Firm, LLC
Tel: 301-444-4600
Email: mac@mbvesq.com
SNAP INC: Fitch Assigns 'BB' LongTerm IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has assigned Snap Inc. a first-time Long-Term Issuer
Default Rating (IDR) of 'BB' with Stable Outlook. Fitch has also
assigned Snap's senior unsecured notes and revolving credit
facility a 'BB' rating with a Recovery Rating of 'RR4'.
Snap is on track to achieve a material improvement in its key
financial metrics as the company is expected to better monetize its
steady growth of daily active users (DAUs). Despite heavy
competition for user attention in the social media space, Snap has
focused on creating a unique user experience around its proprietary
camera technology and features.
Prior investments in cloud-based infrastructure and product
marketing create healthy operating leverage to enable material
margin expansion and free cash flow (FCF) generation. Against this
expected fundamental improvement, Snap maintains a highly
conservative liquidity profile, with a goal of always maintaining
significant cash and short-term securities on its balance sheet to
provide ample cushion in the event of an advertising downturn.
Key Rating Drivers
Accelerated Revenue and EBITDA Growth: Successful execution of
various advertising mix initiatives, coupled with steady growth in
DAUs, should yield annual revenue growth in the teens range during
the rating period. Prior heavy investments in cloud infrastructure
and product marketing should provide meaningful operating leverage
and margin expansion, resulting in rapid deleveraging. As the
company has limited capex requirements, Fitch expects Snap to
accelerate its conversion of EBITDA into FCF over the next four
years.
Significant Liquidity Position: Snap maintains a conservative
liquidity strategy, aimed at maintaining substantial cash and
short-term securities on its balance sheet. This financial cushion
is intended to help the company navigate economic challenges
without compromising its long-term objectives. Fitch anticipates
that during the initial rating period, this strong liquidity will
lead to nearly zero net debt and eventually a growing net-cash
position. As of end-2024, Snap's gross EBITDA leverage stood at
7.2x, while net EBITDA leverage was 0.6x.
Consistent User Growth: Despite a competitive and increasingly
crowded field of social media alternatives, Snap has demonstrated
an ability to attract and maintain a steady annual increase of DAUs
to 453 million in 2024 from 414 million in 2023. Fitch expects this
growth to moderate in its largest market, North America, but sees
scope for continuing healthy expansion across both Europe and the
rest of the world.
Highly Competitive Environment: Snap operates in a highly
competitive environment, with many social media competitors that
are larger and better capitalized. Similarly, Snap remains a
relatively small operator in the global digital advertising market.
Its ability to continually innovate and offer a distinctive user
experience, thereby retaining and expanding its user base to
maintain growth expectations, will be a key factor to their
success.
Improving Mix of Advertising Revenue: Snap has multiple paths to
increase average revenue per DAU by i) increasing revenue from
lower funnel direct-response budgets, and ii) the introduction of
several new compelling, more personalized, advertising formats
incorporating artificial intelligence and video.
Large and Growing Addressable Market: Despite its mobile
application being available since 2011, Snap has only penetrated
22% of North America smartphones. Meanwhile, its penetration across
Europe and the rest of the world remains well below that in North
America and offers a much larger number of potential mobile phone
users. Further, estimates for global digital advertising continue
to show healthy annual increases as the medium increasingly
captures market share from legacy media channels.
Highly Sensitive to Advertising Cyclicality: Snap derives nearly
all its revenue from advertising - at 91% in 2024 - which is highly
sensitive to macroeconomic conditions and prone to periods of
cyclicality and volatility.
Derivation Summary
Unlike many media companies, Snap's mobile social media platform
depends almost entirely on advertising revenue, making it distinct
from peers with more diversified income streams.
Paramount Global (BBB-/Negative) is a worldwide media, streaming,
and entertainment company creating premium content and experiences.
It consists of segments like TV media, direct-to-consumer, and
filmed entertainment.
Warner Bros. Discovery, Inc (BBB-/Stable) is a major global media
and entertainment firm that produces and distributes a complete and
diverse portfolio of branded content across TV, film, streaming,
and gaming platforms.
Snap is smaller than Paramount Global and Warner Bros in revenue
and EBITDA but boasts superior growth prospects and a stronger
liquidity and equity position than these larger peers.
Warner Music Group Corp. (BBB-/Stable) operates in over 70
countries as a leading music entertainment company. It focuses on
recorded music and music publishing. The recorded music segment
profits from promoting, selling, and licensing music by artists,
while the music publishing segment earns from licensing musical
composition rights.
Warner Music Group experiences less revenue volatility due to its
independence from advertising cycles and enjoys higher EBITDA
margins. While Warner Music Group, Paramount Global, and Warner
Bros. Discovery are larger, Snap is set to grow much faster. It
could achieve similar EBITDA and FCF levels within the next four
years, due to its growth trajectory and financial strategy.
Key Assumptions
- Mid-to-high single digit annual growth in DAUs, coupled with
mid-single digit growth in average revenue per DAU, given the
increase in advertising efficacy and user engagement;
- Total revenue to grow in the teens annually;
- Gross margins to increase 300bp over 2025-2028, given operating
leverage from engineering efficiencies around machine learning and
artificial intelligence, coupled with stronger pricing around newer
advertising formats;
- EBITDA margin to more than double over 2025-2028 as the company
leverages its past internal investments in research and marketing
while maintaining modest employee growth;
- Capex to remain flat at $275 million per year;
- FCF to expand significantly to over $1.2 billion per year by 2027
on expected growth in EBITDA;
- Continued opportunistic share repurchase activity in the $300
million-$400 million range per year;
- Liquidity on the balance sheet to remain at a minimum of $3
billion.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
-EBITDA leverage consistently over 4.0x;
-Cash flow from operations (CFO) less capex) / debt below 5% for an
extended period;
-Material reduction in liquidity to below $1 billion for an
extended period.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
-EBITDA leverage sustained under 3.0x, along with sustained growth
in DAUs, revenue, and EBITDA;
-(CFO less capex) / debt sustained above 10%.
Liquidity and Debt Structure
Snap had $3.4 billion in cash and cash equivalents as of end-2024,
and generated $219 million in FCF for 2024. The company also has
full availability on its $1.05 billion revolving credit facility.
Fitch expects FCF to increase over the medium term, due to EBITDA
growth, which is consistent with company's guidance.
Issuer Profile
Snap is a social media company with a focus on proprietary camera
and communication tools that differentiates itself from other
social media platforms. In 2024, Snap generated around $5.4 billion
in revenue and $509 million in adjusted EBITDA, differentiating
itself from competitors.
Date of Relevant Committee
30-Jan-2025
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
Snap has an ESG Relevance Score of '4' for Customer Welfare - Fair
Messaging, Privacy & Data Security, due to widespread concerns
about how user data is collected, stored, and shared, which has a
negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.
Snap has an ESG Relevance Score of '4' for Governance Structure,
due to its dual-class share structure, which concentrates power in
the hands of co-founders Evan Spiegel and Bobby Murphy, which has a
negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.
Snap Inc. has an ESG Relevance Score of '4' for Exposure to Social
Impacts, due to the impact of social media on mental health,
particularly among younger audiences, which has a negative impact
on the credit profile, and is relevant to the ratings in
conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery
----------- ------ --------
Snap Inc. LT IDR BB New Rating
senior unsecured LT BB New Rating RR4
SOLCIUM SOLAR: Court Extends Cash Collateral Access to March 11
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, extended Solcium Solar, LLC's authority to use
cash collateral from Jan. 28 to March 11.
The interim order authorized the company to use cash collateral to
pay the expenses set forth in its budget. The company may deviate
up to 10% from the line items in the budget without violating the
interim order.
As protection, secured creditors will have a perfected
post-petition lien on the cash collateral to the same extent and
with the same validity and priority as their pre-bankruptcy liens.
In addition, Solcium Solar was ordered to maintain insurance
coverage for its property in accordance with its obligations under
its loan agreements with secured creditors.
The next hearing is scheduled for March 11.
About Solcium Solar
Solcium Solar, LLC is a privately owned and operated solar energy
company specializing in residential solar solutions, commercial
solar solutions, EV solar solutions, and battery storage
solutions.
Solcium Solar sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05611) on
October 18, 2024, with $100,000 to $500,000 in assets and $1
million to $10 million in liabilities. Aaron R. Cohen serves as
Subchapter V trustee.
Judge Grace E. Robson oversees the case.
The Debtor is represented by:
Scott W Spradley
Law Offices of Scott W. Spradley, P.A.
Tel: 386-693-4935
Email: scott@flaglerbeachlaw.com
SOUTHERN COLONEL: Files Chapter 11 Bankruptcy in Mississippi
------------------------------------------------------------
On February 10, 2025, Southern Colonel Homes Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Southern District
of Mississippi.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Southern Colonel Homes Inc.
Southern Colonel Homes Inc. is a mobile home dealer in Hattiesburg,
Mississippi.
Southern Colonel Homes Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Miss. Case No.: 25-50179) on
February 10, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Katharine M. Samson handles the case.
The Debtor is represented by:
Craig M. Geno, Esq.
LAW OFFICES OF GRAIG M. GENO, PLLC
601 Renaissance Way, Suite A
Ridgeland, MS 39157
Tel: 601-427-0048
SPECTRUM GROUP: $507MM Bank Debt Trades at 16% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Spectrum Group
Buyer Inc is a borrower were trading in the secondary market around
84.4 cents-on-the-dollar during the week ended Friday, February 14,
2025, according to Bloomberg's Evaluated Pricing service data.
The $507 million Term loan facility is scheduled to mature on May
19, 2028. The amount is fully drawn and outstanding.
Spectrum Group Buyer, Inc. is operating through Pixelle Specialty
Solutions LLC, a manufacturer of specialty papers for diverse end
markets. The company is owned by funds affiliated with H.I.G.
Capital.
SPI ENERGY: Must Pay $2.1M Trigger to Streeterville by June 30
--------------------------------------------------------------
SPI Energy Co., Ltd. is required to make a series of trigger
payments totaling $2.1 million to Streeterville Capital, LLC, with
the final payment due by June 30, 2025, under the terms of a recent
addendum to their existing agreement. Failure to meet any of these
payment deadlines could result in late charges of $1,000 per day
for each outstanding payment, as disclosed in a Form 8-K filing
with the Securities and Exchange Commission.
On Jan. 23, 2025, SPI Energy and Streeterville entered into the
Fifth Addendum to the March 6, 2024 Deed of Settlement, the May 24,
2024 Addendum to the Deed of Settlement, the July 15, 2024 Addendum
to the Deed of Settlement, the September 13, 2024 Addendum to Deed
of Settlement and the November 11, 2024 Addendum to Deed of
Settlement.
About SPI Energy Co.
SPI Energy Co., Ltd. is a global provider of photovoltaic (PV)
solutions for business, residential, government and utility
customers and investors. The Company develops solar PV projects
which are either sold to third party operators or owned and
operated by the Company for selling of electricity to the grid in
multiple countries in Asia, North America and Europe.
New York, New York-based Marcum Asia CPAs LLP, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated April 14, 2023, citing that the Company has a
significant working capital deficit, has incurred significant
losses and needs to raise additional funds to sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
The Company suffered a net loss of $5.6 million during the nine
months ended Sept. 30, 2023 from continuing operations. As of
Sept. 30, 2023, there was net working capital deficit of $114.7
million and accumulated deficit of $684.7 million. These factors
raise substantial doubt as to its ability to continue as a going
concern, according to the Company's Quarterly Report for the period
ended Sept. 30, 2023.
SPIRIT AIRLINES: Judge Needs More Time to Assess Plan Releases
--------------------------------------------------------------
Vince Sullivan of Law360 reports that on Thursday, February 13,
2025, a New York bankruptcy judge ruled that budget airline Spirit
Airlines' Chapter 11 plan met the requirements for approval.
However, he stated that he needed additional time to assess the
proposed third-party releases and determine whether they were
consensual.
About Spirit Airlines
Spirit Airlines, Inc. (SAVE) is a low-fare carrier committed to
delivering the best value in the sky by offering an enhanced travel
experience with flexible, affordable options. Spirit serves
destinations throughout the United States, Latin America and the
Caribbean with its Fit Fleet, one of the youngest and most
fuel-efficient fleets in the U.S. On the Web:
http://wwww.spirit.com/
Spirit Airlines and its affiliates sought Chapter 11 protection
(Bankr. S.D.N.Y. Case No. 24-11988) on Nov. 18, 2024, after
reaching terms of a pre-arranged plan with bondholders. At the time
of the filing, Spirit Airlines reported $1 billion to $10 billion
in both assets and liabilities. Judge Sean H. Lane oversees the
case.
The Debtors tapped Davis Polk & Wardwell, LLP as legal counsel;
Alvarez & Marsal North America, LLC, as financial advisor; and
Perella Weinberg Partners LP as investment banker. Epiq Corporate
Restructuring, LLC, is the claims agent.
Paul Hastings, LLP and Ducera Partners, LLC serve as legal counsel
for the Ad Hoc Group of Convertible Noteholders.
Akin Gump Strauss Hauer & Feld, LLP and Evercore Group LLC
represent the Ad Hoc Group of Senior Secured Noteholders.
The official committee of unsecured creditors retained Willkie Farr
& Gallagher LLP as counsel.
Citigroup Global Markets, Inc., is serving as financial advisor and
Latham & Watkins LLP is serving as legal counsel to Frontier.
SPLASHLIGHT HOLDING: Seeks Chapter 11 Bankruptcy w/ $54MM Debt
--------------------------------------------------------------
Yun Park of Law360 reports that Splashlight, a New York City-based
media production and creative services company that works with
brands like Target and Nike, has filed for Chapter 11 bankruptcy
protection, listing $39 million in assets and $53.5 million in
liabilities.
About Splashlight Holding LLC
Splashlight Holding LLC is the majority equity holder of several
operating companies, including Splashlight LLC, Mahogany Fine Foods
and Catering LLC, Splashlight Photographic & Digital Studios LLC,
and Splashlight Technologies LLC. The Debtor, through Splashlight
LLC and Splashlight Photographic & Digital Studios LLC, provides
comprehensive production services for still and film shoots, both
in-studio in New York City and on-location. Their specialties
include directing, casting, production, and post-production across
various media formats, including film, print, and digital
platforms. Additionally, its subsidiary, Mahogany Fine Foods and
Catering, provides catering and hospitality
services to Splashlight and Splashlight Photographic & Digital
Studios clients.
Splashlight Holding LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10277) on February 12,
2025. In its petition, the Debtor reports total assets of
$38,979,766 and total liabilities of $54,493,305.
Honorable Bankruptcy Judge Lisa G. Beckerman handles the case.
The Debtor is represented by:
Scott Simon, Esq.
GOETZ PLATZER LLP
1 Penn Plaza Suite 3100
New York NY 10019
Tel: 212-695-8100
E-mail: ssimon@goetzplatzer.com
SSR HOSPITALITY: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: SSR Hospitality, LLC
4909 Oakton Street
Skokie, IL 60077
Business Description: SSR Hospitality is a hospitality management
company specializing in owning, operating,
and managing hotels and related properties.
Chapter 11 Petition Date: February 13, 2025
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 25-02208
Judge: Hon. Deborah L Thorne
Debtor's Counsel: Penelope Bach, Esq.
BACH LAW OFFICES
P.O. Box 1285
Northbrook, IL 60065
Tel: (847) 564-0808X216
Fax: (847) 564-0985
Email: pnbach@bachoffices.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Amin Amdani as 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/PXDW6CI/SSR_Hospitality_LLC__ilnbke-25-02208__0001.0.pdf?mcid=tGE4TAMA
STAFFING 360: Trading Suspended on Nasdaq, Has Option to Appeal
---------------------------------------------------------------
Staffing 360 Solutions, Inc. filed a Form 8-K with the Securities
and Exchange Commission to disclose that it received a notice from
the Nasdaq Stock Market LLC on Feb. 11, 2025, informing the Company
that it failed to meet the requirements outlined in the Nasdaq
Hearings Panel's Oct. 8, 2024, decision. As a result, the Panel
determined that the Company would be delisted, and trading in its
common stock was suspended at the market open on Feb. 13, 2025.
The Company may request that the Nasdaq Listing and Hearing Review
Council review the decision to delist the Company's Common Stock,
which such request must be received within 15 days of the Decision
Letter.
On June 20, 2024, the Company received a letter from Nasdaq
indicating that it was no longer in compliance with the minimum
stockholders' equity requirement for continued listing on the
Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(b)(1),
which such rule requires listed companies to maintain stockholders'
equity of at least $2,500,000 or meet the alternative compliance
standards relating to the market value of listed securities or net
income from continuing operations, which the Company does not
currently meet.
On Aug. 13, 2024, following the Staff's review of the Company's
plan to regain compliance with the Minimum Stockholders' Equity
Requirement submitted on June 14, 2024, and on Aug. 5, 2024, the
Company received a letter indicating that the Staff determined to
deny the Company's request for continued listing on Nasdaq.
Pursuant to the Notice, based on the preliminary nature of the
Company's plan, the Staff determined that the Company did not
provide a definitive plan evidencing its ability to achieve near
term compliance with the Minimum Stockholders' Equity Requirement.
The Company requested an appeal of the Staff's determination, and
the Panel was held on Oct. 3, 2024.
On Oct. 8, 2024, the Company received a letter from the Panel
indicating that the Panel has determined to grant the Company's
request to continue its listing on Nasdaq, subject to certain
milestones being met on Nov. 1, 2024, and Dec. 31, 2024.
About Staffing 360
Headquartered in New York, Staffing 360 Solutions, Inc. --
http://www.staffing360solutions.com-- is a domestic staffing
company engaged in the acquisition of U.S.-based staffing
companies. The Company's targeted consolidation model is focused
specifically on the accounting and finance, information technology
("IT"), engineering, administration and light industrial
disciplines.
New York, NY-based RBSM LLP, the Company's auditor since 2024,
issued a "going concern" qualification in its report dated June 11,
2024, citing that the Company has incurred substantial operating
losses and will require additional capital to continue as a going
concern. This raises substantial doubt about the Company's ability
to continue as a going concern.
For the year ended Dec. 30, 2023, the Company had a working capital
deficit of $45,419,000 an accumulated deficit of $127,056,000 and a
net loss of $26,041,000.
STUDIO PB: Unsecureds Will Get 2% of Claims over 36 Months
----------------------------------------------------------
Studio PB, LLC filed with the U.S. Bankruptcy Court for the Eastern
District of Louisiana a First Amended Plan of Reorganization.
The Plan proposes to pay creditors of the Debtor from the Debtor's
future disposable income.
Class 3 consists of Unsecured Claims. The only unsecured creditor
that filed a Proof of Claim was Chase Bank in the amount of
$39,439.02 (Proof of Claim No.2). Additionally, the LDR has a
general unsecured claim of $786.46; Celtic Bank has an undersecured
claim of $274,592.34 and the SBA has a wholly unsecured claim for
$871,000.00.
Further, the following claimants were listed in the Debtor's
Schedules as undisputed, noncontingent claims: Capital City Press
$1,200.00; Leaf Financial $4,951.60; Regions Bank visa $19,795.04;
Russell Forester $28,688.66; Steven Serio $4,478.00; and Transworld
Systems (collection for Chase acct 6054) $13,692.84.
This creates total claims in Class 3 of $1,258,624.00. The Debtor
shall make a distribution of 2% of these claims, creating a total
distribution of $25,172.48. This amount shall be paid on a
quarterly basis over 36 months in 12 equal quarterly payments of
$2,098.00 ($699.22 per month) beginning 30 days after the Plan
Effective Date. This Class is impaired.
Class 4 consists of Equity Interests. Mark Conner, the sole equity
interest holder of the Debtor shall retain his ownership interest
herein.
This Plan will be funded by the post-petition disposable income
earned by the Debtor.
A full-text copy of the Plan of Reorganization dated February 3,
2025 is available at https://urlcurt.com/u?l=b2Z1ev from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Robin R. De Leo, Esq.
The De Leo Law Firm, LLC
800 Ramon St.
Mandeville, LA 70448
Tel: (985) 727-1664
Fax: (985) 727-4388
E-mail: lisa@northshoreattorney.com
About Studio PB LLC
Studio PB LLC is a physical fitness company in Metairie, Louisiana
offering a total body workout focused on low-impact/high-intensity
movements that improve strength and flexibility for every body.
Studio PB LLC sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 24-11449) on July
25, 2024. In the petition filed by Mark Conner, as managing member,
the Debtor reports total assets of $61,906 and total liabilities of
$1,658,086.
The Honorable Bankruptcy Judge Meredith S. Grabill handles the
case.
The Debtor is represented by Robin R. De Leo, Esq. at THE DE LEO
LAW FIRM, LLC.
SULLIVANS DISTRIBUTIONS: Files Chapter 11 Bankruptcy in New York
----------------------------------------------------------------
On February 10, 2025, Sullivans Distributions Inc. filed Chapter
11 protection in the U.S. Bankruptcy Court for the Southern
District of New York. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
About Sullivans Distributions Inc.
Sullivans Distributions Inc. headquartered at 83 Old Roosa Gap Road
in Bloomingburg, New York, operates in the retail trade sector.
Sullivans Distributions Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-35149) on
February 10, 2025. In its petition, the Debtor reports estimated
assets between $100,000 and $500,000 and estimated liabilities
between $1 million and $10 million.
Honorable Bankruptcy Judge Kyu Young Paek handles the case.
The Debtor is represented by:
Edward N. Gewirtz, Esq.
BRONSTEIN, GEWIRTZ & GROSSMAN LLC
60 East 42nd Street
New York NY 10165
Tel: 973-634-3176
E-mail: chona@bgandg.com
SUNSOURCE BORROWER: Moody's Alters Outlook on 'B2' CFR to Negative
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Moody's Ratings affirmed SunSource Borrower, LLC's ratings,
including the company's B2 corporate family rating, B2-PD
probability of default rating, and B3 backed senior secured bank
credit facility rating. The outlook was changed to negative from
stable.
The affirmation of the B2 CFR reflects SunSource's well-established
market position as a distributor of fluid power, fluid conveyance,
fluid process, and automation solutions in its respective segments.
The affirmation also reflects Moody's expectation that the company
will maintain good liquidity.
The negative outlook reflects Moody's expectation that the
deterioration in SunSource's credit metrics could be protracted,
notwithstanding prospects for firmer end market demand.
Debt-to-EBITDA remains high following the large debt-funded
shareholder distribution in March 2024 and subsequent weakening in
earnings. Also, free cash flow is constrained by much higher
interest expense from the incremental debt.
RATINGS RATIONALE
SunSource's B2 CFR reflects the company's position as a leading
distributor and service provider of fluid power and conveyance
products, with good end market and customer diversification.
SunSource has a flexible cost structure, modest capital spending
requirements and its value-added engineering capabilities support
solid profit margins. However, the rating is constrained by
SunSource's high leverage, modest scale, and exposure to highly
cyclical industrial end markets.
Moody's expect revenue growth and order rates to gradually improve
over the next 12-18 months after experiencing pressure from lower
industrial production in 2024. The EBITDA margin weakened due to
negative operating leverage and discretionary salesforce
investments, and is expected to remain relatively flat in 2025.
Moody's also expect Moody's adjusted debt-to-EBITDA to increase to
slightly more than 6 times for 2024.
Moody's expect SunSource will maintain good liquidity. The company
will generate $10-20 million of free cash flow over the next year,
Moody's estimate, tempered by much higher interest expense.
SunSource had $24 million of cash at September 30, 2024 and $359
million of availability under a $500 million ABL revolver expiring
in 2029.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
SunSource's ratings could be upgraded if debt-to-EBITDA is
sustained below 4.0 times, the company has positive organic revenue
growth and maintains good liquidity.
SunSource's ratings could be downgraded if debt-to-EBITDA is
sustained above 5.5 times, if margins deteriorate or liquidity
weakens. Material debt funded acquisitions or shareholder returns
could also result in a downgrade.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
SunSource Borrower, LLC, based in Addison, Illinois, is a leading
independent distributor of fluid power, fluid conveyance, fluid
process and motion control products and provider of related
solutions. The company is majority-owned by funds affiliated with
Clayton Dubilier & Rice, LLC, a private equity firm.
TEMPUR SEALY: Fitch Affirms 'BB+' LongTerm IDR, Outlook Negative
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Fitch Ratings has affirmed the ratings for Tempur Sealy
International, Inc.'s (TPX), including the Long-Term Issuer Default
Ratings (IDR) at 'BB+'. Fitch has also resolved the Rating Watch
Negative upon the closing of its acquisition of Mattress Firm Group
Inc. The Rating Outlook is Negative.
On Feb. 5, 2025, TPX closed the acquisition of Mattress Firm in a
cash and stock transaction valued at around $5 billion, reflecting
a multiple of about 9x without considering synergies, or 8x with
projected synergies. The Negative Outlook reflects the potential
for TPX's EBITDAR leverage to remain above 3.25x, with pro forma
leverage of about 3.8x at transaction close compared with projected
leverage of 2.7x on a 2024 standalone basis.
Fitch could revise the Outlook to Stable if TPX demonstrates
deleveraging progress, with EBITDAR leverage trending towards 3x
within 12-24 months after transaction close through debt reduction
from FCF and increased EBITDA.
Key Rating Drivers
Transformative Acquisition, Increased Scale: TPX's acquisition of
Mattress Firm is a transformative vertical acquisition that
increases scale and accelerates TPX's omnichannel strategy. TPX's
direct retail distribution expands to about 65%, up from about 23%
before the acquisition. This expansion also increases TPX's
exposure to the volatilities inherent to the retail mattress sector
including industry pullbacks in weak demand environments. TPX
generated approximately $8 billion in pro forma sales over the 12
months ended Dec. 2024, net of intercompany sales.
Mattress Firm is a leading U.S. mattress specialty retailer with
more than 2,300 stores post-divestiture, a national retail
footprint and a high-single digit share of the North American
bedding industry. Mattress Firm will operate as a decentralized
business unit within TPX. Transaction risks include the
macroeconomic environment, a complete shift in business mix, and
cultural risks in integrating the two companies. TPX estimates cost
synergy opportunities at $100 million run rate by year four,
targeting product lifecycle management, logistics, and sourcing.
Regulatory Clarity: TPX closed the transaction on Feb. 5, 2025,
after the U.S. District Court denied the motion by the Federal
Trade Commission for a preliminary injunction to halt the closing.
TPX will divest 176 stores and seven distribution centers as part
of the transaction. TPX has executed post-closing supply agreements
with most mattress manufacturers, representing roughly 75% of
Mattress Firm volume. TPX has also agreed to maintain a certain
percentage of floor slot commitments for higher-end third-party
branded mattresses.
High Leverage; Material FCF: Fitch projects EBITDAR leverage at
about 3.8x on a pro forma basis, based on total debt of around $5
billion at transaction close, then declining to 3.5x in 2025 and
low-3x in 2026. Fitch expects FCF for TPX to be in the low-$400
million range in 2025, rising to $525 million in 2026, which
supports deleveraging. TPX has publicly stated its expectation to
reach the top end of its net target leverage ratio of 3x within the
first 12 months after transaction close. TPX's net debt/EBITDA
leverage target is 2.0x-3.0x, roughly 0.3x lower than Fitch's
EBITDAR leverage.
Strong Competitive Position: TPX's recent strong momentum is due to
broad-based growth driven by distribution gains through existing
and new retailers. It likely benefited from pandemic-related
changes in consumer behavior. Company-owned store development,
share gains for the higher-margin Tempur-Pedic brand, entry into
untapped markets and increased pricing have helped TPX's
performance. Fitch believes these factors have led to a sustainable
competitive advantage, with material share gains coming at the
expense of TPX's main competitor, Serta Simmons Bedding, LLC (not
rated).
Market Pullback: The U.S. mattress industry is facing a material
demand pullback due to shifts in consumer behavior and ongoing
macro uncertainties. Industry volumes in 2024 are expected to have
declined in the high-single digits, reaching a new low. This
follows unit volume decreases in the low-double digits in 2023 and
about 20% in 2022. Fitch anticipates 2025 industry volumes could
stabilize with lower interest rates and easier comparatives amid
subdued consumer spending. Risks include a further market pullback
and tariffs increasing input costs and negatively affecting
consumer spending.
TPX Outperforms Broader Market: TPX's North American operations
outperformed the broader industry, with overall revenue declines of
around 2% year-to-date during 2024, 1% during 2023 and 5% in 2022.
Consolidated LTM EBITDA was $866 million as of Sept. 30, 2024,
compared with $835 million in 2023, $846 million in 2022 and almost
$1.1 billion in 2021. This is supported by distribution share gains
in the U.S., new international product launches supporting
increased sales and margin improvement, offset by lower volume.
Competitive Industry Environment: The mattress industry is
susceptible to irrational pricing, secular shifts in consumer
preferences and bankruptcies. TPX faces intense competition from
the e-commerce/bed-in-a-box space, such as Casper, Amazon and other
mattress e-tailers. In addition to convenience, attractively priced
e-commerce mattresses fuels price competition.
Parent-Subsidiary Linkage: Fitch's analysis includes a weak
parent/strong subsidiary approach between parent TPX and its
subsidiary, Tempur-Pedic Management, LLC. Fitch assesses the
linkage factor as open for legal ring-fencing and access and
control, which supports the rating of parent IDR at the level of
the consolidated group profile.
Derivation Summary
TPX has a significantly stronger financial profile than its main
competitor, Serta. TPX's rated peers include Levi Strauss & Co.'s
(BBB-/Stable), Capri Holdings Limited (BB/Negative), and Samsonite
Group S.A. (BB+/Stable). Samsonite remains under criteria
observation post the publication of Fitch's new lease criteria on
Dec. 6, 2024. The UCO designation indicates that the existing
ratings may change due to the application of the final criteria.
TPX and Levi share similar distribution strategies across specialty
retailers and department stores, and self-distribution through
company-operated stores and e-commerce.
Levi's ratings reflect its position as one of the world's largest
branded apparel manufacturers, with broad channel and geographic
exposure, and good execution in terms of both topline and margins.
Fitch expects EBITDAR leverage to trend in the high-1x range.
Levi's low leverage is balanced by its narrow focus on the Levi
brand and in bottoms, as well as its low EBITDAR Fixed Charge
Coverage, which is expected to trend in the high-2.0x range
Samsonite's rating reflects its status as the world's largest
travel luggage company, with strong brands and historically good
organic growth. The rating also reflects the strong rebound in
global travel after the pandemic, which has benefitted Samsonite's
topline trajectory, and Samsonite's effective cost-cutting
initiatives and a continued commitment to repay debt.
Capri's rating partly reflects its higher EBITDAR leverage and
weaker coverage metrics. Capri's Negative Outlook indicates
potential for EBITDAR leverage to be sustained above 3.0x and
EBITDAR fixed charge coverage to be sustained below 2.0x over the
next 12-24 months.
Key Assumptions
- Fitch projects 2024 revenue could decline in the low-single
digits, reflecting market share gains due to new distribution
agreements and increased sales related to international product
launches offset by high-single digit industry unit declines;
- EBITDA in the upper-$800 million range in 2024, reflecting
benefits from moderating commodities costs and productivity
improvements partially offset by plant start-up costs;
- FCF around $350 million in 2024, with an expected moderation in
capital spending close to around $150 million and slightly negative
working capital;
- EBITDAR leverage moderating to around 2.7x in 2024;
- Pro forma the transaction close, TPX generated approximately $8
billion in sales. Fitch's forecast in 2025 assumes low-single digit
sales growth due to market share gains from new distribution and
product launches, international growth and low-single digit
declines in industry volumes. In 2026, the forecast assumes sales
around the mid-single digits, supported by industry volume
recovery;
- EBITDA around $1.4 billion in 2025, reflecting the Mattress Firm
transaction closing, low-single digit declines in industry volumes,
market share gains and operational initiative improvements. EBITDA
around $1.5 billion in 2026, supported by top-line growth and
modest margin expansion due to productivity improvements and
synergy realization;
- FCF in the low-$400 million range in 2025, reflecting capital
investment in the mid-$300 million range, dividends in the low-$100
million range and a modest negative working capital deficit. The
forecast projects FCF of around $525 million in 2026, assuming
capital investment in a similar range, a modest dividend increase
and similar working capital deficits;
- EBITDAR leverage decreasing to around 3.5x in 2025 and 3.2x in
2026 due to debt paydown, supported by FCF and EBITDA growth;
- The company's RCF and term loans are floating-rate debt. Fitch
assumes annualized SOFR rates over the forecast period from 475 bps
declining to 350 bps. Pricing for the accounts receivable
securitization is one-month SOFR plus 85bps applicable margin plus
10bps credit spread adjustment. The senior notes are fixed-rate
debt.
Recovery Analysis
Fitch assigned Recovery Ratings to the various debt tranches in
accordance with its criteria, which allows for the assignment of
RRs for issuers with IDRs in the 'BB' category. Given the distance
to default, RRs in the 'BB' category are not computed by bespoke
analysis. Instead, they serve as a label to reflect an estimate of
the risk of these instruments relative to other instruments in the
entity's capital structure.
Fitch rates TPX's first lien secured debt at 'BBB-'/'RR1', one
notch above the IDR, reflecting outstanding recovery prospects in
the event of default. TPX's unsecured debt has average recovery
prospects and is rated 'BB+'/'RR4'
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- EBITDA trending toward the low-$1 billion range as a result of
sales and/or margin declines, debt-funded shareholder-friendly
policies, and/or debt-financed acquisitions, leading to EBITDAR
leverage sustained above 3.25x and/or EBITDAR Fixed Charge Coverage
sustained below the low-2x.
- Fitch could revise the Outlook to Stable if TPX demonstrates
deleveraging progress with EBITDAR leverage trending towards 3x
within 12-24 months post-transaction close on debt paydown from FCF
and increased EBITDA.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- EBITDA trending toward the upper $1 billion due to a market
recovery that supports mid-single digit revenue growth with
sustained market share gains and demonstrated operating resiliency
through shifts in the competitive environment and economic cycles
leading to EBITDAR Leverage sustained below 2.75x and EBITDAR Fixed
Charge Coverage sustained above 3x.
Liquidity and Debt Structure
Transaction Financing: TPX financed the Mattress Firm acquisition
through about $2.2 billion in treasury shares, a $1.6 billion
secured term loan B, a $625 million delayed draw term loan,
revolver borrowings, and excess cash. TPX finalized a $1.6 billion
seven-year term loan B in Oct. 2024, with proceeds held in escrow
until the acquisition closed. Total pro forma debt at closing was
about $5 billion. Fitch projects TPX to generate FCF (after
dividends) in the low-$400 million range in 2025 and around $525
million in 2026, supporting deleveraging.
Solid Liquidity: Liquidity was about $1.3 billion as of Sept. 30,
2024, consisting of $104.2 million in cash and nearly full
availability on a $1.2 billion RCF, with no outstanding borrowings
maturing in 2028.
TPX maintains an accounts receivable securitization program
maturing in October 2026, with a $200 million limit. As of Sept.
30, 2024, total availability under the accounts receivable
securitization was $144.2 million, with $28.8 million of
borrowings. TPX has substantial headroom within its covenant
requirements, including consolidated total net leverage of less
than 5.0x (5.5x for 12 months after qualifying material
acquisition) in the credit agreement.
Long-term debt maturities are modest and include annual term loan
amortization payments. TPX does not have a significant note
maturity until 2029.
Issuer Profile
Tempur Sealy International, Inc. is the world's largest bedding
manufacturer. It develops, manufactures, markets and distributes
bedding products, which are sold globally in approximately 100
countries.
Summary of Financial Adjustments
- EBITDA adjusted to exclude stock-based compensation and one
time/non-ordinary charges;
- Fitch uses the balance sheet reported lease liability as the
capitalized lease value when computing lease-equivalent debt.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Tempur-Pedic
Management, LLC LT IDR BB+ Affirmed BB+
senior secured LT BBB- Affirmed RR1 BBB-
Tempur Sealy
International, Inc. LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ Affirmed RR4 BB+
senior secured LT BBB- Affirmed RR1 BBB-
TERVIS TUMBLER: Emerges from Chapter 11 Bankruptcy
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Elizabeth King of Business Observer reports that Tervis Tumbler has
successfully emerged from Chapter 11 bankruptcy, more than five
months after filing, with a renewed focus on growth. The Sarasota
County-based drinkware company is expanding into home goods,
introducing a new line of plates and bowls to strengthen its market
position.
The company filed for Chapter 11 on Sept. 5, 2024, citing industry
challenges and ongoing litigation. At the time, Tervis reported
$15.7 million in assets while owing more than $32 million to
creditors. Revenue had declined by over 50% in two years, dropping
from $90 million in 2022, according to Business Observer.
On February 11, 2025, a U.S. Bankruptcy Court judge approved the
company’s reorganization plan, allowing Tervis to restructure its
debt and resolve all outstanding litigation. As part of its
strategy, the company is shifting its focus to home-use products
and reinforcing its partnership with Amazon.
"The decision to reorganize was made to secure and strengthen this
brand's legacy for a long and successful future," said CEO Hosana
Fieber.
Before filing for bankruptcy, Tervis employed up to 131 people in
2024, significantly down from a peak of 1,000 employees a decade
ago. In September, the company laid off 60 employees, bringing its
workforce to 71, though officials note additional manufacturing
employees work through a partner company. Tervis also closed all
its retail locations except for its Osprey store, the report
states.
As part of its restructuring, Tervis is relocating its headquarters
from Venice to the Osprey location on Tamiami Trail, where it is
expanding office space, according to report.
"These changes weren't easy, but they were necessary to stabilize
the company," Fieber told the Business Observer. "We streamlined
operations, closed underperforming retail stores, and reduced
obligations to strengthen our financial position."
With its restructuring complete, Tervis is optimistic about the
future and confident in its new direction.
About Tervis Tumbler Co.
Tervis Tumbler Co. -- https://www.tervis.com/ -- is a
third-generation American-owned and operated company, renowned for
the durable construction of its drinkware, the timelessness of its
decorations and designs, and the insulation qualities.
Tervis sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. M.D. Fla. Case No. 24-05274) on Sept. 5, 2024, with $10
million to $50 million in both assets and liabilities. Hosana
Fieber, president and chief executive officer of Tervis, signed the
petition.
Judge Roberta A. Colton oversees the case.
The Debtor is represented by:
Steven M Berman, Esq.
Shumaker, Loop & Kendrick, LLP
Tel: 813-229-7600
Email: sberman@shumaker.com
THINK GOODNESS: Seeks Subchapter V Bankruptcy in Arizona
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On February 12, 2025, Think Goodness LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of
Arizona. 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 Think Goodness LLC
Think Goodness LLC offers a curated selection of jewelry, skincare,
makeup, and wellness products. They focus on providing thoughtfully
designed, customizable items from reputable brands, aiming to
enhance both appearance and well-being. Originally known as Origami
Owl, Think Goodness transitioned from a multi-level marketing (MLM)
model to a single-level distribution model as of Sept. 1, 2023.
Think Goodness LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 25-01160) on February 12,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million.
The Debtor is represented by:
Grant L. Cartwright, Esq.
MAY POTENZA BARA & GILLESPIE, P.C.
1850 N. Central Ave., Suite 1600
Phoenix, AZ 85004
Tel: (602) 252-1900
E-mail: gcartwright@maypotenza.com
TREE TOWN: Court Approves Use of Cash Collateral
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Tree Town, LLC got the green light from the U.S. Bankruptcy Court
for the Western District of New York to use cash collateral to pay
its expenses.
The company estimates that the total liquidation value of all its
property, including property that qualifies as cash collateral,
would be no more than $40,000 after accounting for the cost of
liquidation.
The New York State Department of Taxation and Finance and other
holders of pre-bankruptcy liens were granted roll-over or
replacement liens on the company's assets to the same extent and
with the same priority as their pre-bankruptcy liens.
As additional protection, NYSDTF will receive monthly cash payments
in the amount of $1,550 for pre-bankruptcy sales taxes.
About Tree Town LLC
Tree Town, LLC operates a food service location known as Tree Town
Cafe located at 745 Penfield Rd., Rochester, N.Y.
Tree Town filed Chapter 11 petition (Bankr. W.D. N.Y. Case No.
25-20040) on January 15, 2025, listing up to $50,000 in assets and
up to $1 million in liabilities. Peter Morgante, a member of Tree
Town, signed the petition.
The Debtor is represented by Mike Krueger, Esq. at Mcconville
Considine Cooman & Morin, P.C.
TREES CORP: Promotes Mikayla Gilbert to CFO With $120K Salary
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Trees Corporation disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that Mikayla Gilbert, 32,
was promoted (replacing Edward Myers) to serve as Chief Financial
Officer of the Company on February 1, 2025.
The Board also designated Ms. Gilbert as the Company's principal
financial officer and principal accounting officer. Ms. Gilbert was
previously the Controller of the Company. Ms. Gilbert will be paid
a base salary of $120,000 with the opportunity for a discretionary
annual bonus.
Ms. Gilbert served as the Company's Controller from October 6, 2023
to February 1, 2025, where Ms. Gilbert 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 Ms. Gilbert graduated in 2023.
There are no family relationships between Mikayla Gilbert and any
director, executive officer, or any person nominated or chosen by
the Company to become a director or executive officer. No
information is required to be disclosed with respect to Mikayla
Gilbert pursuant to Item 404(a) of Regulation S-K other than with
respect to the retention of Ms. Gilbert by the Company.
About Trees Corporation
Trees Corporation is a cannabis company at the intersection of
community, content, and commerce. Listed on Cboe Canada, Trees
offers a differentiated retail experience, that aims to educate,
amplify and unlock emerging consumer segments and need states that
allows Trees to uniquely engage the 360-cannabis consumer. The
Trees Group currently has 13 branded Trees storefronts in Canada,
including 9 stores owned and operated in Ontario and 4 stores owned
and operated in BC.
Going Concern
For the quarterly period ended September 30, 2024, the Company
cautioned that it has incurred recurring losses and negative cash
flows from operations since inception and have primarily funded its
operations with proceeds from the issuance of debt and equity. The
Company incurred a net loss of $3,033,403 and lost $724,309 in cash
from operations during the nine months ended September 30, 2024,
respectively, and had an accumulated deficit of $103,535,443 as of
September 30, 2024. It had cash and cash equivalents of $245,367 as
of September 30, 2024. The Company expects its operating losses to
continue into the foreseeable future as it continues to execute its
acquisition and growth strategy. As a result, the Company has
concluded that there is substantial doubt about its ability to
continue as a going concern.
The Company's ability to continue as a going concern is dependent
upon its ability to raise additional capital to fund operations,
support its planned investing activities, and repay its debt
obligations as they become due. If the Company is unable to obtain
additional funding, the Company would be forced to delay, reduce,
or eliminate some or all of its acquisition efforts, which could
adversely affect its growth plans.
As of September 30, 2024, Trees Corporation had $21,159,317 in
total assets, $23,782,654 in total liabilities, and $2,623,337 in
total stockholders' deficit.
TRI-CITY HOSPITAL: Enters Receivership Amid Redevelopment Plans
---------------------------------------------------------------
The Real Deal reports that Rod Burchfield plans to transform the
site of a long-abandoned hospital in Southeast Dallas into a
mixed-use development, but its deteriorating condition has led to a
court-ordered receivership.
A judge recently placed the former Tri-City Hospital at 7525 Scyene
Road under the control of California Receivership Group (CRG),
paving the way for its demolition, according to the Dallas Business
Journal.
The city of Dallas argued that Burchfield and his partners, who
acquired the property last summer, failed to secure the site or
address safety concerns, including trespassing, vandalism, and
fires.
CRG President Mark Adams expects significant progress within the
next 2026.
"We work fast," Adams said. "I expect we'll have it demolished in
less than a year."
The receivership process will start with securing the site. Adams
noted that his team will reinforce fencing, remove graffiti, and
address other safety hazards to make the area safer for the
community.
Burchfield has stated he will work with CRG and the city to bring
the site into compliance but has not shared specific details about
his redevelopment plans.
South Dallas has lagged behind other parts of the city in real
estate investment. While large-scale developments continue to shape
the northern suburbs, Southern Dallas has seen slower economic
growth.
Local developer Hoque Global is working on a 270-acre mixed-use
project near the University of North Texas at Dallas, featuring 1.5
million square feet of commercial space, a town center, and over 50
acres of green space. The Dallas City Council recently approved
project amendments, increasing public subsidies to $35.9 million
and establishing firm deadlines for construction and land
acquisition, the report relays.
Meanwhile, in Wilmer, a suburb about 15 minutes south of Dallas
along Interstate 45, California-based developer Maged Guirguis is
planning a 69-acre mixed-use development. The project will include
864 apartments, 18 single-family homes, 70 townhomes, a boutique
hotel, 78,000 square feet of retail, and approximately 142,000
square feet of office and warehouse space.
About Tri-City Hospital
Tri-City Hospital is a small hospital in Southeast Dallas.
TRUE VALUE: Plan Exclusivity Period Extended to May 12
------------------------------------------------------
Judge Karen B. Owens of the U.S. Bankruptcy Court for the District
of Delaware extended True Value Company, LLC and its affiliates'
exclusive periods to file a plan of reorganization and obtain
acceptance thereof to May 12 and July 14, 2025, respectively.
As shared by Troubled Company Reporter, the Debtors explain that
conducting the Sale, negotiating and documenting the TSA, obtaining
entry of the Sale Order and performing under the TSA involved
extensive negotiations and effort. Subsequent to obtaining approval
and closing of the Sale, the Debtors engaged in extensive
discussions with various stakeholders to formulate a Plan.
Accomplishing these tasks and addressing the concerns of the
Debtors' creditors and stakeholders along the way, among other
things, required the full attention of the Debtors' employees and
advisors.
Further, the Debtors have been required to devote a significant
amount of time, energy, and resources to their transition into
chapter 11 more generally and addressing the myriad issues
attendant thereto. Given the progress in a short period of time,
the Debtors submit that the complexity and relatively short
duration of the Chapter 11 Cases weigh in favor of extending the
Exclusive Periods.
The Debtors assert that they have endeavored to establish and
maintain cooperative working relationships with their primary
creditor constituencies. Importantly, the Debtors are not seeking
the extension of the Exclusive Periods to delay administration of
the Chapter 11 Cases or to exert pressure on their creditors, but
rather to continue the orderly, efficient, and cost-effective
chapter 11 process. Thus, this factor also weighs in favor of the
requested extension of the Exclusive Periods.
In addition, termination of the Exclusive Periods in the Chapter 11
Cases would adversely impact the Debtors' administration of the
Chapter 11 Cases. Simply put, if the Court were to deny the
Debtors' request for an extension of the Exclusive Periods, upon
the expiration of the Exclusive Filing Period, any party in
interest would be free to propose a chapter 11 plan for the Debtors
and solicit acceptances thereof. Indeed, denying the relief
requested herein could very well thwart the objectives of the
chapter 11 process, and result in reduced recoveries for the
Debtors' stakeholders.
Efficiency Counsel to the Debtors:
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Edmon L. Morton, Esq.
Kenneth J. Enos, Esq.
Kristin L. McElroy, Esq.
Timothy R. Powell, Esq.
One Rodney Square
1000 North King Street
Wilmington, Delaware 1801
Telephone: (302) 571-6600
Email: emorton@ycst.com
kenos@ycst.com
kmcelroy@ycst.com
tpowell@ycst.com
Conflicts Counsel to the Debtors:
GLENN AGRE BERGMAN & FUENTES LLP
Andrew K. Glenn, Esq.
Trevor J. Welch, Esq.
Malak S. Doss, Esq.
Michelle C. Perez, Esq.
1185 Avenue of the Americas, 22nd Floor
New York, New York 10036
Telephone: (212) 970-1600
Email: aglenn@glennagre.com
twelch@glennagre.com
mdoss@glennagre.com
mperez@glennagre.com
About True Value Company
True Value Company, LLC and its affiliates are hardlines
wholesalers, serving approximately 4,500 stores worldwide. A
globally recognized retail brand, the Debtors provide customers in
over 55 countries an expansive product set across key categories
such as Hardware Lumber and Building, Outdoor Living and Tools, and
Plumbing and Heating.
The Debtors filed voluntary Chapter 11 petitions (Bankr. D. Del.
Lead Case No. 24-12337) on Oct. 14, 2024. True Value estimated
total assets of $100 million to $500 million and total liabilities
of $500 million to $1 billion as of the bankruptcy filing.
Judge Karen B. Owens oversees the cases.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP, and
Young Conaway Stargatt & Taylor, LLP as bankruptcy counsel; Glenn
Agre Bergman & Fuentes, LLP as conflicts counsel; Houlihan Lokey
Capital, Inc. as financial advisor; and Omni Agent Solutions, Inc.
as claims and administrative agent. The Debtors also tapped M3
Advisory Partners, LP to provide chief transformation officer and
supporting personnel.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtors' Chapter
11 cases.
TURK TRANSPORTATION: Files Chapter 11 Bankruptcy in Pennsylvania
----------------------------------------------------------------
Caleb Revill of FreightWaves reports that Turk Transportation has
filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for
the Western District of Pennsylvania. The Carnegie,
Pennsylvania-based freight carrier, owned by Mehmet Uzun, provides
interstate general freight services, according to the Federal Motor
Carrier Safety Administration's SAFER website.
According to its voluntary bankruptcy petition, Turk Transportation
has assets of up to $1 million and liabilities ranging between $1
million and $10 million. The company lists up to 49 creditors,
including some of its largest unsecured creditors: TPine Leasing of
Mississauga, Ontario, owed over $398,000; Northland Capital of
Saint Cloud, Minnesota, owed more than $240,000; and Hitachi of
Norwalk, Connecticut, owed over $249,000. As part of the bankruptcy
process, Turk Transportation has requested court approval to meet
payroll obligations for wages earned before the filing, totaling
$61,192. The payroll includes Uzun, listed as the company’s
owner-president.
The company operates a fleet of 18 trucks, with 10 driven by
independent contractors and eight by contracted owner-operators. It
employs 16 workers, including one executive, 10 drivers, four
owner-operators, and one service provider, the report states.
Turk Transportation had an existing financing agreement with Love's
Financial, using its accounts as collateral. A recent court order
amended the agreement, allowing Love's to purchase Turk's
post-bankruptcy accounts. This arrangement enables the company to
continue operations while managing its debt, the report states.
According to the order, this measure is intended to "minimize
disruption to the Debtor's business, allow it to meet payroll and
operating expenses, secure fuel, and maintain confidence among
customers and vendors."
About·Turk Transportation LLC
Turk Transportation LLC is a fully operational interstate freight
carrier focused on transporting general freight and motor vehicles.
The Company provides specialized services, including the transport
of oversized or overweight loads, perishable goods, delicate items,
and heavy equipment.
Turk Transportation LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-20336) on February 11,
2025. In its petition, the Debtor reports estimated assets between
$500,000 and $1 million and estimated liabilities between $1
million and $10 million.
The Debtor is represented by:
Ryan J. Cooney, Esq.
COONEY LAW OFFICES
223 Fourth Ave
Pittsburgh, PA 15222
Tel: (412) 992-7597
E-mail: Rcooney@cooneylawyers.com
TURNING POINT: Fitch Assigns 'B+' LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has assigned Turning Point Brands, Inc. (TPB) a
first-time Long-Term Issuer Default Rating (IDR) of 'B+'. Fitch has
also assigned a 'BB-' with a Recovery Rating of 'RR3' to TPB's new
proposed $300 million senior secured bonds. The Rating Outlook is
Stable.
TPB's ratings reflect its solid position in niche markets, modest
pro forma EBITDA leverage at around 3x on a Fitch-adjusted gross
leverage basis, and adequate FCF expectations due to its asset
light model. The rating is constrained by its small scale with
projected 2024 EBITDA of around $100 million and exposure to the
competitive tobacco category that is in long-term secular decline.
Fitch expects TPB to generate mid-single-digit consolidated top
line growth annually across both its Zig-Zag and Stoker's segment
over the medium term while maintaining leverage of close to 3x.
Key Rating Drivers
Small Scale, Niche Focus: TPB is a small player within the U.S.
tobacco and related consumer product industry, with forecasted 2024
revenues in the low $400 million range and Fitch-adjusted EBITDA of
close to $100 million. The company has a niche focus, with a
portfolio that centers around premium rolling paper and cigar wraps
under its Zig-Zag segment, and moist smokeless tobacco (MST),
loose-leaf chewing tobacco and a developing nicotine pouch business
under its Stoker's segment.
Fitch notes that despite TPB's small scale and niche offerings, the
company has established a solid position within various categories
that it competes, including leading positions in rolling paper,
Make-Your-Own (MYO) cigar wraps, and discount chewing tobacco.
Competitive Industry Environment: TPB's tobacco and nicotine
products compete with significantly larger and better capitalized
peers the US tobacco industry including Altria Group, Inc. (Altria;
BBB/Stable) and Philip Morris International (A/Negative). The FDA
requires Premarket Tobacco Product Application (PMTA) submissions
for new tobacco and synthetic products that represent a significant
cost for smaller players.
TPB's nationwide launch of FRE diversifies the business to the
non-tobacco synthetic nicotine category, but is subject to
longer-term regulatory uncertainties given its pending PMTA
approval. While FRE could be differentiated from competitors due to
its mouthfeel and higher nicotine strength offerings, it
nonetheless faces competition from existing brands including ZYN
(owned by Philip Morris International), which has recently received
PMTA approval and controls more than 70% share of the category.
Good Historical Growth: TPB generated strong top-line growth from
2019-2024 with estimated low double-digit CAGR for its combined
Zig-Zag and Stoker's business, and low single-digit CAGR when
including the Creative Distribution Solutions (CDS) segment. This
growth was driven by solid demand and pricing realization,
increased distribution, and consumer shift towards value despite
industry secular declines in MST and loose-leaf tobacco. CDS has
been pressured by illicit market encroachment in the e-vapor
category. In January 2025, TPB transferred its CDS ownership to
General Wireless Operations, Inc. (GWO), its 49%-owned joint
venture, and will no longer consolidate CDS's results.
Top Line Expectations: Fitch expects low single-digit increase in
consolidated revenues for 2024, reflecting high-single digit top
line growth in Zig-Zag and Stoker's offset by declines in CDS. Top
line in 2025 is expected to decline towards the high $300 million
range given the deconsolidation of CDS, and increase in the
mid-single digits annually thereafter, supported by continued
distribution gains, innovation and growth from FRE. These tailwinds
are expected to be partially offset by tobacco industry secular
declines, regulatory and market uncertainties, and normalizing
consumer spending patterns, which could reduce demand for Stoker's
value offerings over the medium to longer term.
Modest Near-Term Margin Expansion: Fitch expects EBITDA margins to
increase modestly to the mid-20% range in 2024, up from around 23%
in 2023 and 22% in 2022. This growth is driven by benefits from
increased distribution and other efficiency initiatives, offset by
investments in FRE. EBITDA margins are projected to increase
further to the mid-to-high 20% range in 2025 and beyond, as the
impact of TPB's deconsolidation of CDS is partially offset by
continued investments in the business. CDS contributes immaterial
EBITDA compared to its projected revenue of $60 million in 2024.
Its deconsolidation is expected to support a higher margin
structure for TPB moving forward.
Moderate Leverage of around 3x: TPB has a net leverage target of
2.0x-3.0x, which equates to a 3.0x-4.0x range on a Fitch-adjusted
gross leverage (EBITDA Leverage) basis assuming $100 million of
cash. Fitch expects pro forma 2024 EBITDA Leverage at around 3x
given the new proposed $300 million secured note offering, and is
forecasted to sustain at similar levels over the medium term. This
compares to leverage of 4.0x in 2023 and 4.5x in 2022. Fitch's
projections do not assume any M&A, with stable debt levels and
EBITDA maintained in the low $100 million range.
Asset light model, Adequate Liquidity: Fitch notes that TPB's asset
light model enables the company to have solid FCF conversion. The
company relies on long-standing relationships and agreements for
the production and distribution of its products, with the majority
of manufacturing outsourced to suppliers. Fitch projects TPB to
generate FCF of close to $50 million annually assuming stable
dividend levels and modest capex requirements. The company has
adequate liquidity with pro forma Q3 2024 cash of close to $80
million and $59 million of availability on its $75 million ABL.
Derivation Summary
TPB's (B+/Stable) ratings reflect its solid position in niche
markets, modest pro forma EBITDA leverage at around 3x on a
Fitch-adjusted gross leverage basis, and adequate FCF expectations
given its asset light model. The rating is constrained by its small
scale with projected 2024 EBITDA of around $100 million and
exposure to the competitive tobacco category that is in long term
secular decline. Fitch expects TPB to generate mid-single digit
consolidated top line growth annually across both its Zig-Zag and
Stoker's segment over the medium term while maintaining leverage of
close to 3x.
Peers include Altria (BBB/Stable), a peer in the tobacco industry
and Northeast Grocery (B+/Negative), a similarly rated peer in the
'B+' rating category.
Altria's (BBB/Stable) rating reflects its position as the industry
leader in the U.S. cigarette market anchored by its Marlboro
franchise and leading positions in oral tobacco products. The
ratings also reflect strong profitability and good cash flow
generation that benefits from consistent pricing power with
expectations for EBITDA leverage of about 2.0x.
Northeast Grocery Inc.'s (B+/Negative) ratings reflect the
company's moderate scale, with revenue and EBITDA in the mid-$6
billion and low-to-mid $200 million ranges, respectively. Although
the company has good market share in its key markets, its limited
size leaves it somewhat vulnerable to strengthening competition
from scaled, national grocers and general merchandisers. These
concerns are mitigated by the company's good local positioning and
merger-driven synergies, which support EBITDA generation over the
rating horizon.
Key Assumptions
- Revenue is forecasted to increase in the low-single digits in
2024, with growth in Zig-Zag and Stoker's offset by declines in
CDS. Top line in 2025 is expected to decline towards the high $300
million range given the deconsolidation of CDS, and is forecasted
to increase in the mid-single digit range annually thereafter.
- EBITDA is projected at around $100 million in 2024 and sustain in
the low $100 million range over the medium term. EBITDA margin is
expected to increase modestly to the mid-20% range in 2024, up from
around 23% in 2023 and 22% in 2022, driven by benefits from
increased distribution and other efficiency initiatives, offset by
investments in FRE. EBITDA margins are projected to increase
further to the mid-to-high 20% range in 2025 and beyond, as the
impact of TPB's deconsolidation of CDS is partially offset by
continued investments in the business.
- FCF is forecasted at around $50 million annually assuming stable
dividend levels and modest capex requirements.
- Pro forma EBITDA leverage is forecasted at 3.0x in 2024, down
from 4.0x in 2023, and is expected to sustain at close to 3x over
the medium term absent M&A, reflecting stable debt levels and
EBITDA maintained in the low $100 million range.
Recovery Analysis
Fitch's recovery assumes TPB's value is maximized as a going
concern in a post default scenario, given a going-concern valuation
of approximately $290 million compared with less than $100 million
in value from a liquidation of assets.
Fitch's going-concern value is derived from a projected EBITDA of
around $65 million. The scenario assumes accelerated market share
losses given secular declines in the tobacco industry, with
increased price competition between peers combined with
weaker-than-expected demand for FRE resulting in revenue declining
to around $290 million.
EBITDA margins are assumed to be in the low 20% range reflecting
top line headwinds and increased spend in efforts to improve sales,
offset by benefits achieved through bankruptcy. A going-concern
multiple of 4.5x was selected, within the 4x-8x range observed for
North American corporates, reflecting Fitch's assessment of TPB's
industry dynamics and company-specific factors such as limited
scale and diversification.
After deducting 10% administrative claims from the $290 million
going-concern valuation and considering TPB's $75 million senior
secured ABL in the capital structure, the company's new proposed
$300 million senior secured notes is rated at 'BB-'/'RR3'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A downgrade could result from total EBITDA leverage sustained
above 4.0x on lower-than-expected operating results, negative FCF
generation, and/or debt-financed M&A or shareholder remuneration.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Upward rating action is constrained by TPB's EBITDA scale, niche
focus, and exposure to the highly competitive tobacco and nicotine
category. An upgrade could result from significantly larger
operating scale in terms of revenue and EBITDA, reflecting
increased portfolio diversification, while maintaining EBITDA
leverage below 3.0x.
Liquidity and Debt Structure
TPB has adequate liquidity, with pro forma Q3 2024 cash and cash
equivalents of close to $80 million after the new proposed $300
million senior secured note offering. The company does not have any
borrowings on its ABL facility, with $59 million of availability on
its $75 million ABL, constrained by its borrowing base. The ABL has
a $40 million accordion feature and has a first priority claim on
eligible inventory.
Fitch projects the company to generate FCF of around $50 million
annually assuming stable dividend levels and moderate capex levels.
Fitch projects the company could use FCF towards opportunistic
share repurchases and M&A. TPB has limited near term refinancing
risk, with its $75 million ABL due 2027 and its new proposed $300
million senior secured notes due 2032.
Issuer Profile
TPB operates in the U.S. tobacco and related consumer product
industry, with a portfolio that centers around premium rolling
paper and cigar wraps, MST, loose-leaf chewing tobacco and a
developing nicotine pouch business.
Summary of Financial Adjustments
- Historical EBITDA has been adjusted for stock-based compensation,
restructuring and restructuring related costs, transaction and
related costs, and other items.
Date of Relevant Committee
05-Feb-2025
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
TPB has an ESG Relevance Score (RS) of '4' for Customer
Welfare/Fair Messaging, Privacy and Data Security due to the risks
to consumers' health that arise from consuming cigarette products,
which has a negative impact on the credit profile, and is relevant
to the ratings in conjunction with other factors.
TPB has an ESG RS of '4' for Exposure to Social Impacts due to the
continued decline in consumption and regulatory risk connected with
the widespread, well-publicized health effects of tobacco products,
which has a negative impact on the credit profile and is relevant
to the ratings in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery
----------- ------ --------
Turning Point
Brands, Inc. LT IDR B+ New Rating
senior secured LT BB- New Rating RR3
TURNING POINT: Moody's Affirms B1 CFR & Rates New Secured Notes B1
------------------------------------------------------------------
Moody's Ratings affirmed Turning Point Brands, Inc.'s B1 Corporate
Family Rating, B1-PD Probability of Default Rating and B1 rating on
the company's existing senior secured notes. Moody's assigned a B1
rating to the new proposed senior secured notes due 2032. Moody's
also upgraded the speculative grade liquidity rating ("SGL") to
SGL-1 from SGL-2. The rating outlook is stable.
Turning Point is issuing $300 million of new senior secured notes
due 2032 and plans to utilize the proceeds to repay the $250
million existing senior secured notes due 2026, increase balance
sheet cash by roughly $44 million, and pay expected transaction
related fees. The modest increase in debt and leverage is credit
negative, but Moody's believe that the company maintains good
financial flexibility. Expected free cash flow of around $40- $50
million factoring the anticipated increase in cash interest expense
remains substantial to fund operating cash needs including seasonal
uses of working capital.
Moodys affirmed the B1 CFR with a stable outlook because leverage
remains within the top end of Moody's expectations for the rating.
This reduces Turning Point's flexibility to manage earnings
declines or leveraging transactions such as acquisitions within the
rating since the notes constitute all of the outstanding funded
debt and they are not prepayable without incurring a premium.
Moody's expect that pro forma debt-to-EBITDA after the refinancing
will increase to roughly 3.5x from 2.8x for the 12 months ended
September 2024 (including Moody's adjustments). Moody's anticipate
leverage declining to roughly 3.2x over the next 12-18 months due
to higher revenue and earnings. Growth is expected to come from
several sources including expansion of the Zig-Zag portfolio into
alternative distribution channels such as dispensaries and head
shops, and increasing consumption of cannabis in US markets. In
addition, the scaling of recently launched products could also lift
earnings.
Turning Point's SGL-1 speculative liquidity rating indicates the
company has very good liquidity. The upgrade from SGL reflects the
expected increase in cash from the refinancing. Cash declined in
2024 because the company repaid the $118 million of convertible
notes with cash at maturity in July 2024. The liquidity rating
also reflects Moody's expectations that the company will generate
good free cash flow and that the company will have ample
availability on its undrawn $75 million asset based lending
facility ("ABL") that expires in 2027.
The B1 rating on the senior secured notes is one notch above the B2
implied output of the loss given default model. The override
accounts for the senior secured notes being the preponderance of
funded debt in the debt structure, Moody's expectation that Turning
Point will not meaningfully utilize the asset backed lending
facility ("ABL"), and that the borrowing base is less than the $75
million commitment. The ABL has a priority claim on receivables and
inventory.
RATINGS RATIONALE
Turning Point's B1 CFR reflects the company's moderate financial
leverage, small revenue base, and growth challenges related to
tobacco product categories that are facing declining volumes.
Turning Point's concentrated product portfolio consisting mainly of
Zig Zag rolling paper and Stokers' chewing tobacco and moist snuff
creates competitive risk. The company competes against
significantly larger, better resourced, and well-known branded
tobacco manufacturers, as well as a variety of smaller companies
focused on niche market segments. Regulatory risks are high given
the regulated nature of its products and focus by the Food and Drug
Administration (FDA) on tobacco and nicotine product categories.
The company has event risk related to acquisitions, as well as
execution risk to develop and profitably scale new products.
Turning Point's credit profile benefits from good market share and
position in niche tobacco categories, positive free cash flow
generation, and minimal capital spending requirements in its
asset-light model where most production is outsourced aside from
moist snuff. The company's very good liquidity provides flexibility
to execute its operational improvement strategies over the next
year. Turning Point is focused on improving operational execution
and expanding the consumer reach of its products to drive organic
revenue growth. The company also lowered its leverage target by
0.5x in the second half of 2024 and intends to operate the business
with net and gross debt-to-EBITDA between 2.0x-3.0x (based on
company calculations; 2.1x for the 12 months ended December 2024
and pro forma for the proposed refinancing transaction). This
indicates a commitment to operating the business with a more
conservative leverage. The change is at least partly in response to
the challenging macroeconomic environment. Moody's expect in the B1
CFR that the company will maintain conservatism around acquisitions
and maintain financial flexibility rather than pursue material
shareholder distributions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects Moody's expectation that Turning Point
Brands will continue to see stable operating performance marked by
steady revenue growth, a solid EBITDA margin, good liquidity, and
annual free cash flow of at least $40 million. Moody's expect
distribution gains into new channels and expansion of newly
launched products to drive earnings growth. Further, Moody's expect
Turning Point will remain committed to a financial policy that
positions the company to operate with leverage within its gross and
net debt-to-EBITDA target of 2.0x – 3.0x and below 3.5x gross
debt-to-EBITDA on a Moody's adjusted basis.
The ratings could be upgraded if Turning Point meaningfully
increases scale and product diversity, generates consistent organic
revenue growth, and maintains a stable to higher EBITDA margin. The
company would also need to reduce and sustain debt-to-EBITDA below
2.0x, maintain very good liquidity, generate higher free cash flow,
and commit to a more conservative financial strategy.
The ratings could be downgraded if operating earnings deteriorate
due to factors such as volume or pricing pressure or higher costs,
or if free cash flow-to-debt is below 12.5%. Moody's may also
downgrade the rating if product distribution is reduced or halted
due to regulatory actions, the company pursues debt-financed
acquisitions or shareholder distributions, debt-to-EBITDA is
maintained above 3.5x, or liquidity deteriorates.
The principal methodology used in these ratings was Consumer
Packaged Goods published in June 2022.
Turning Point Brands, Inc. manufactures and sells smokeless tobacco
products and smoking products. The company's two focus segments are
led Zig-Zag and Stoker's. Smokeless products include loose leaf
chewing tobacco, moist snuff, moist snuff pouches, and snus.
Smoking products consist of cigarette papers, large cigars,
make-your-own (MYO) cigar wraps, MYO cigar smoking tobacco, MYO
cigarette smoking tobacco and traditional pipe tobacco. Turning
Point divested its Creative Distribution Solutions (CDS) business
in January 2025 for a 49% equity share of General Wireless
Operations, Inc., a joint venture with Standard General, LP. CDS is
mainly a distribution business for items such as liquid vapor
products, tobacco vaporizer products, a range of non-tobacco
products, and other non-nicotine products. Annual revenue for
publicly-traded TPB is approximately $360 million for the last
12-month period ending December 2024 and $415 million including the
"CDS" business.
TWO INDEPENDENCE: Moody's Cuts Rating on 2022 Revenue Bonds to Ba2
------------------------------------------------------------------
Moody's Ratings has downgraded to B2 from Ba2 the rating on Two
Independence Hana OW, LLC (NASA HQ Project)'s Federal Lease Revenue
Bonds (NASA DC HQ), Federally Taxable Series 2022, issued by the
Public Finance Authority (WI). The outlook is negative.
The downgrade to B2 reflects NASA's recent signals that it intends
to downsize its headquarters office and consider new locations,
decreasing the likelihood of full lease renewal in 2028 with terms
that would enable successful refinancing of the large outstanding
principal payment. The downgrade also reflects emerging
uncertainties in the GSA's general leasing strategies more
broadly.
RATINGS RATIONALE
The B2 rating reflects Moody's view that the United States
Government (Aaa negative), acting through the General Services
Administration (GSA), remains likely to renew its lease in the
current National Aeronautics and Space Administration (NASA)
headquarters office building upon lease expiration at terms that
would enable refinancing the large outstanding debt. Like all firm
term leases, Moody's expect the lease will remain in place and
fully-paid until its expiration in August 2028.
Moody's consider the government remains likely to renew the lease
given the facility's favorable location near the Capitol and high
security features. However, NASA is exploring options including
building a government-owned facility for its headquarters, leasing
in a new building, or renewing its lease in the current building
for which bondholders have a mortgage interest. The current NASA
headquarters building meets many of the stated specifications for
the new facility, which affirms the economic advantage to renewing
the current lease. However, NASA also proposed downsizing office
space and parking by up to 38% and 63%, respectively, which would
reduce rent in a new lease and increase refinancing risks. Given
GSA plans to downsize its office footprint across all agencies,
Moody's consider it unlikely that the space would be backfilled
with other federal tenants if the lease is not renewed.
Absent lease renewal by the federal government, recovery for
bondholders would be limited as NASA occupies substantially all of
the building and a large vacancy would likely result in a much
lower building value. That said, with more than three years
remaining on the lease, there is some time for the landlord to
attract new tenants.
If the lease is renewed, but at the proposed lower square footage,
refinancing the principal outstanding would become somewhat more
difficult, depending on interest rates and access to capital at
bond maturity in 2028. The outstanding principal due at lease
expiration is $275 million equal to 14x the current shell rent,
which Moody's consider very high leverage.
Like most federal lease transactions with renewal risk, this
project benefits from a satisfactory legal and cash flow structure,
which includes a strong US federal government tenant on a firm term
lease through August 2028, a mortgage lien on the facility and the
assignment and direct payment of all lease payments to the trustee,
that reduces bondholders' exposure to operating risk of the
borrower and property manager, as well as a small debt service
reserve fund.
RATING OUTLOOK
The negative outlook reflects uncertainty around NASA's plans for
renewing, downsizing or relocating its headquarters and the
softened office real estate conditions in the Washington DC market.
The outlook also considers the evolving federal policies around
real estate and staffing that could negatively affect the
likelihood of renewing this lease.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
-- Strong indications that the NASA HQ lease with the GSA will be
renewed with terms that enable all bond payments to be serviced
-- Reduction in debt levels or final bullet payment that reduces
overall leverage and refinancing risk
-- Evidence of a robust private sector tenant/owner market for
this property that supports sufficient market value to provide
meaningful bondholder recovery in the event the federal lease is
not renewed
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
-- Indications that NASA intends to relocate its headquarters or
meaningfully downsize the lease
-- Signals of an interest rate and financing environment that
would make refinancing the bullet payment less viable by 2028
-- Increased leverage on the project
-- Material credit weakening of the United States government
-- Interruption or delay in monthly lease payments, including any
indication of the GSA's intent to breach contract and terminate the
lease within its firm term
-- Nonperformance of lessor obligations under the lease
LEGAL SECURITY
Interest on the bonds is paid from monthly lease rental payments
from the GSA, which the borrower Two Independence Hana OW, LLC has
assigned to the trustee. Total rent is pledged to the bonds and
paid directly to the trustee monthly, funding monthly set-asides
for interest payments as well as certain administrative and
operating expenses, before being remitted to the borrower. The
bonds are also secured by a mortgage lien on the leased facility
and a debt service reserve fund funded at 1/12th annual interest.
All security interests in the property, and rights to the leases,
rents and property management agreements have been assigned to the
trustee.
Principal is intended to be repaid with proceeds of a bond
refinancing prior to maturity.
PROFILE
The Public Finance Authority, a governmental entity established
under Wisconsin State Statute, is acting as the conduit issuer.
The borrower and lessor is Two Independence Hana OW, LLC (NASA HQ
Project), a Delaware Limited Liability Company that is a
single-asset, bankruptcy-remote, special purpose entity created for
the sole purpose of owning and leasing the property as well as
issuing and securing the bonds. The ultimate owners and parent
companies are Hana Financial Group Inc., a Korean public company
that has owned the property since 2017, and Ocean West Capital
Partners, a California corporation that also serves as the property
manager. The property is located at 300 E St. SW, Washington DC and
serves as the national headquarters of NASA.
The United States General Services Administration (GSA) pays rent
to the lessor on behalf of the primary occupant of the facility,
the National Aeronautics and Space Administration (NASA) with its
headquarters located at the property in southwest Washington DC.
The NASA headquarters lease is among the largest GSA leases by rent
and square footage. Founded in 1958, NASA is the largest
independent agency of the executive branch of the US Federal
Government and is responsible for science and technology related to
air and space.
METHODOLOGY
The principal methodology used in this rating was Lease,
Appropriation, Moral Obligation and Comparable Debt of US Special
Purpose Districts Methodology published in November 2022.
TXNM ENERGY: Moody's Rates New Jr. Subordinated Debentures 'Ba1'
----------------------------------------------------------------
Moody's Ratings assigned a Ba1 rating to TXNM Energy, Inc.'s
("TXNM") (Baa3 issuer rating) Junior Subordinated Debentures. The
outlook for TXNM is stable.
RATINGS RATIONALE
The Ba1 rating assigned to TXNM's Junior Subordinated Debentures
reflects the security's relative position in the company's capital
structure compared to TXNM's senior unsecured debt. The one-notch
rating differential between the Junior Subordinated Debentures and
TXNM's Baa3 Issuer rating is consistent with Moody's methodology
guidance for notching corporate instrument ratings based on
differences in security and priority of claim.
TXNM used the net proceeds from the issuance to repay a portion of
the company's outstanding term loans.
The Junior Subordinated Debentures contain equity-like features
including a long-dated maturity (i.e., June 01, 2054) and options
to skip coupon payments. As a result, these securities receive
partial equity treatment in Moody's calculation of debt coverage
and financial leverage ratios. The Junior Subordinated Debentures
will receive basket "M" treatment (i.e. 50% equity and 50% debt)
for the purpose of adjusting financial statements. Please refer to
Moody's cross-sector rating "Hybrid Equity Credit methodology"
(February 2024) for further details.
TXNM 's credit is supported by its principal utility subsidiary,
Public Service Company of New Mexico (PNM, Baa2 stable), which
contributes roughly 67% of consolidated cash flow, as of September
30, 2024, and its smaller utility subsidiary, Texas-New Mexico
Power Company (TNMP, Baa1 stable), which contributes the remainder.
The ratings of TXNM 's subsidiaries are driven by their respective
regulatory constructs in New Mexico and Texas as well as their
corresponding financial profiles. PNM is a vertically integrated
electric utility operating in a historically challenging New Mexico
regulatory environment and TNMP is a low-risk electric T&D utility
operating in a supportive Texas regulatory environment.
A comprehensive review of all credit ratings for the respective
transaction has been conducted during a rating committee
Rating Outlook
TXNM 's stable outlook primarily reflects the stable outlooks of
its utility subsidiaries and Moody's expectation that TXNM's
financial profile will be sustained, including external capital
needs that are financed in a balanced manner to maintain a ratio of
CFO pre-W/C to debt in the low-to-mid-teens percent range. The
stable outlook also incorporates Moody's view that parent debt will
be no more than roughly 20% of consolidated debt and will gradually
decline over time.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Factors that could lead to an upgrade
TXNM could be upgraded if its principal subsidiary PNM is upgraded,
which would be largely driven by a sustained period of more
supportive regulatory outcomes in New Mexico. The rating could also
be upgraded if financial metrics improve as a result of lower
parent leverage such that TXNM 's ratio of CFO pre-W/C to debt is
sustained above 17%.
Factors that could lead to a downgrade
TXNM would likely be downgraded if PNM is downgraded. TXNM's rating
could also be downgraded if parent level debt increases
substantially and approaches 30% of consolidated debt on a
sustained basis or if financial metrics decline such that TXNM 's
ratio of CFO pre-W/C to debt falls below 13% for an extended
period.
The principal methodology used in this rating was Regulated
Electric and Gas Utilities published in August 2024.
US ECO PRODUCTS: Court Extends Cash Collateral Access to April 17
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts,
Central Division, extended US Eco Products Corporation's authority
to use its lenders' cash collateral until April 17.
The interim order authorized the company to use the cash collateral
of Eastern Bank and the U.S. Small Business Administration for
business expenses.
Lenders will retain liens on the company's post-petition accounts
receivable and other assets, subject to specific terms.
The next hearing is scheduled for April 17.
About US Eco Products Corporation
US Eco Products Corporation filed Chapter 11 petition (Bank. D.
Mass. Case No. 24-41263) on December 9, 2024, listing $320,830 in
assets and $1,249,695 in liabilities. Doreen Blades, president of
US Eco Products, signed the petition.
Judge Elizabeth D. Katz oversees the case.
The Debtor is represented by Michael B. Feinman, Esq., at Feinman
Law Offices.
Eastern Bank, as lender, is represented by:
Joseph M. DiOrio, Esq.
Pannone Lopes Devereaux & O'Gara LLC
Northwoods Office Park
1301 Atwood Avenue, Suite 215N
Johnston, RI 02919
(401) 824-5180
(401) 824-5123 fax
jdiorio@pldolaw.com
VITAL PHARMACEUTICALS: Judge Denies Ex-CEO's Bid to Dismiss Liens
-----------------------------------------------------------------
David Minsky of Law360 reports that on February 13, 2025, a Florida
federal bankruptcy judge refused to rule on a motion to dismiss
Monster Energy Company's claims and liens against the former CEO of
the company that produces Bang Energy drinks, citing a lack of
jurisdiction over disputes between two non-debtors.
About Vital Pharmaceuticals
Since 1993, Florida-based Vital Pharmaceuticals, Inc., doing
business as Bang Energy and as VPX Sports, has developed
performance beverages, supplements, and workout products to fuel
high-energy lifestyles. VPX Sports is the maker of Bang energy
drinks, among other consumer products.
Vital Pharmaceuticals, Inc., along with certain of its domestic
subsidiaries and affiliates, filed voluntary petitions for
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Fla. Lead Case No. 22-17842) on Oct. 10, 2022.
VPX estimated $500 million to $1 billion in assets and liabilities
as of the bankruptcy filing.
The Hon. Scott M. Grossman is the case judge.
The Debtors tapped Latham & Watkins, LLP as general bankruptcy
counsel; Berger Singerman, LLP as local counsel; Haynes and Boone,
LLP and Faulkner ADR Law, PLLC as special counsels; Huron
Consulting Group, Inc., as CTO services provider; and Rothschild &
Co US, Inc., as investment banker; and Grant Thornton, LLP, as
financial advisor. Stretto, Inc., is the notice, claims and
solicitation agent.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors on Nov. 1, 2022. The committee tapped
Lowenstein Sandler, LLP as general bankruptcy counsel; Sequor Law,
P.A., as local counsel; and Lincoln Partners Advisors, LLC, as
financial advisor.
VIVAKOR INC: Removes Preferred Stock Series, 15M Shares Authorized
------------------------------------------------------------------
Vivakor, Inc. filed a Form 8-K with the Securities and Exchange
Commission on Feb. 12, 2025, announcing that it had submitted a
Certificate of Amendment to its Amended and Restated Articles of
Incorporation with the Nevada Secretary of State. This amendment
eliminates all previously designated series of preferred stock. As
a result, starting Feb. 6, 2025, the Company now has 15,000,000
authorized shares of preferred stock, but none of these shares are
designated to any series, nor are any shares of preferred stock
outstanding.
About Vivakor Inc.
Coralville, Iowa-based Vivakor, Inc. is a socially responsible
operator, acquirer, and developer of technologies and assets in the
oil and gas industry, as well as related environmental solutions.
Currently, the Company's efforts are primarily focused on operating
crude oil gathering, storage and transportation facilities, as well
as contaminated soil remediation services.
Houston, Texas-based Marcum LLP, the Company's auditor since 2022,
issued a "going concern" qualification in its report dated April
16, 2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses, and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
"We had an accumulated deficit of $65,908,406 as of December 31,
2023, and we expect to continue to incur significant development
expenses in the foreseeable future related to the completion of the
development and commercialization of our RPC products. As a
result, we are incurring operating and net losses, and it is
possible that we may never be able to sustain the revenue levels
necessary to achieve and sustain profitability. If we fail to
generate sufficient revenues to operate profitably on a consistent
basis, or if we are unable to fund our continuing losses, you could
lose all or part of your investment," stated Vivakor in its Annual
Report for the year ended Dec. 31, 2023.
VOSSEKUIL PROPERTIES: Files Chapter 11 Bankruptcy in Wisconsin
--------------------------------------------------------------
On February 10, 2025, Vossekuil Properties LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Eastern District
of Wisconsin.
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 Vossekuil Properties LLC
Vossekuil Properties LLC is a limited liability company.
Vossekuil Properties LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Wis. Case No. 25-20671) on February
10, 2025. In its petition, the Debtor reports estimated assets up
to $50,000 and estimated liabilities between $1 million and $10
million.
The Debtor is represented by:
Michelle A Angell, Esq.
MILLER & MILLER LAW, LLC
700 W Virginia St, Ste 605
Milwaukee, WI 53204-1515
Tel: (414) 277-7742
Fax: (414) 277-1303
E-mail: michelle@millermillerlaw.com
WCG INTERMEDIATE: Moody's Alters Outlook on 'B3' CFR to Positive
----------------------------------------------------------------
Moody's Ratings affirmed WCG Intermediate Corp.'s ("WCG") B3
Corporate Family Rating and B3-PD Probability of Default Rating.
Concurrently, Moody's assigned a B3 rating to WCG's proposed backed
senior secured first lien bank credit facility, comprised of a $300
million revolving credit facility expiring in 2030 and $1.43
billion term loan due in 2032. At the same time, Moody's revised
WCG's outlook to positive from stable.
The B2 ratings on the existing senior secured first lien bank
credit facility, comprised of a $250 million revolving credit
facility expiring in 2026 and $1.419 billion term loan maturing in
2027, remain unchanged and will be withdrawn once the refinancing
is completed.
Proceeds from the new $1.43 billion term loan along with existing
cash will be used to fully repay the company's existing $1.419
billion first lien term loan ($1.409 billion currently
outstanding), along with paying transaction fees and expenses.
Additionally, WCG signed a definitive agreement to divest its
electronic Clinical Outcomes Assessment ("eCOA") platform for $475
million in upfront gross proceeds. Net proceeds of approximately
$429 million will be used to fully repay the company's existing
$345 million second lien term loan (unrated) and for general
corporate purposes including the potential to repay additional
first lien term loan borrowings.
The affirmation of WCG's rating reflects WCG's high but improving
financial leverage with adjusted debt-to-EBITDA in the mid 6 times
range pro forma for the divestiture and subsequent debt repayment.
Moody's expect that WCG's debt-to-EBITDA will decline to
approximately 6 times over the next 12 to 18 months. Despite the
reduction in size and scale following the eCOA divestiture, WCG
will focus more on the higher-margin institutional review board
("IRB") as well as clinical trial site enablement evidence
generation services going forward. Lastly, the ratings affirmation
considers an increasingly volatile regulatory backdrop that could
lead to a reduction in overall healthcare funding.
The outlook change to positive reflects the credit positive nature
of the refinancing and deleveraging transactions, increasing the
potential for a ratings upgrade over the next 12 to 18 months. This
incorporates Moody's expectation that WCG's debt-to-EBITDA will
decline to approximately 6 times, with improved interest coverage,
and that free cash flow will be positive.
RATINGS RATIONALE
WCG's B3 Corporate Family Rating reflects the company's high, but
improving, financial leverage with adjusted debt-to-EBITDA in the
mid 6 times range for the FY 2024 period and pro forma for the eCOA
divestiture and planned debt repayment. WCG's rating is constrained
by the company's aggressive financial policies, evidenced by a
history of debt-funded acquisitions. The rating is also constrained
by the company's modest size and scale relative to other healthcare
service providers.
Conversely, WCG's rating is supported by its leading position
within the niche market for clinical trial study review services
and good overall growth prospects. Moody's expect WCG will benefit
from favorable long-term industry and regulatory fundamentals
within the market for IRB services and growth supported by further
adoption of single review services, as well as the launch of new
platform capabilities and software solutions that incorporate
artificial intelligence. WCG's strong market share in IRB and solid
reputation provide it with a defensible position within the
clinical services segment, demonstrated by the company's
historically high customer retention rates.
Moody's expect WCG to maintain good liquidity over the next 12
months. Pro forma for the refinancing and divestiture transaction,
the company will have approximately $31 million of cash on hand.
Moody's expect that despite reduced EBITDA after the eCOA
divestiture, WCG will generate at least $20 million of positive
free cash flow in the next 12 months, which excludes mandatory
first lien term loan amortization. For the last twelve month period
ending September 30, 2024, WCG generated roughly $9 million of free
cash flow. Moody's expect that free cash flow will improve
supported by annual interest expense savings of approximately $35
million following the planned debt repayment. WCG will have access
to a new, upsized $300 million revolving credit facility expiring
in 2030. Moody's anticipate ample cushion under the springing first
lien net leverage covenant on the revolving credit facility, if
triggered.
The B3 rating of WCG's new senior secured first lien bank credit
facility, comprised of a $300 million revolving credit facility and
$1.43 billion term loan, is the same as the B3 CFR. This reflects
the first lien secured credit facility representing the
preponderance of debt within the company's capital structure.
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 $245
million and 100% of consolidated EBITDA, plus unlimited amounts
subject to 5.70x first lien net leverage ratio. Amounts up to the
greater of 50% of closing date EBITDA and 50% of consolidated
EBITDA may be incurred with an inside maturity.
The credit agreement is expected to include "J. Crew" and "Chewy"
protections.
There are no protective provisions restricting an up-tiering
transaction.
A comprehensive review of all credit ratings for the respective
issuer(s) has been conducted during a rating committee
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if WCG exhibits sustained revenue and
earnings growth. Ratings could also be upgraded if the company
effectively manages its integration strategy while achieving
greater scale. Ratings could be upgraded if the company
demonstrates consistent positive free cash flow generation.
Quantitatively, ratings could be upgraded if debt/EBITDA is
sustained below 6 times on Moody's basis.
The ratings could be downgraded if the company experiences material
weakness in revenues or profitability. Ratings could also be
downgraded if there was a deterioration in liquidity including
sustained negative free cash flow. Lastly, ratings could be
downgraded if the company undertakes material debt-funded
acquisitions or shareholder initiatives.
Based in Princeton, NJ, WCG Intermediate Corp. is a leading
provider of clinical trial solutions, including study planning,
study review, site optimization, enrollment and retention, clinical
endpoints (specifically, clinical trial imaging services), as well
as benchmarking, analytics and consulting. WCG's customers include
pharmaceutical companies, biotechnology, contract research
organizations (CROs) and institutions (primarily academic medical
centers). The company is majority owned by financial sponsor
Leonard Green & Partners. For the twelve months ended September 30,
2024, WCG Intermediate Corp. generated revenues of approximately
$600 million. Pro forma for the eCOA divestiture, revenues will be
approximately $500 million.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
WELDED CONSTRUCTION: Awarded $44.6MM Judgment in Transco Dispute
----------------------------------------------------------------
In the case captioned as WELDED CONSTRUCTION, L.P., Plaintiff, v.
THE WILLIAMS COMPANIES, INC., WILLIAMS PARTNERS OPERATING LLC, and
TRANSCONTINENTAL GAS PIPE LINE COMPANY, LLC, Defendants, Adv. Pro.
No. 19-50194 (Bankr. D. Del.), Judge Laurie Selber Silverstein of
the United States Bankruptcy Court for the District of Delaware
awarded judgment in favor of Welded and against Transco in the
amount of $44,632,308.
This is a multi-million dollar contract dispute arising out of the
construction of a natural gas pipeline in the Commonwealth of
Pennsylvania. The contractor, Welded Construction, L.P., and the
owner of the pipeline, Transcontinental Gas Pipe Line Company, LLC,
each assert the other breached the construction contract and seek
damages and penalties, as appropriate. Debtor's claims are
deceptively simple: it billed for services performed and costs
incurred under the contract and seeks the balance of unpaid
invoices. Transco asserts both that Debtor billed for items not
compensable under the contract and that Debtor's poor performance
under the contract negates amounts owed. Transco concludes that it,
not Debtor, is the net winner.
Transco is a natural gas transmission pipeline company that
constructs, maintains and operates pipelines across the country. No
later than May 2014, Transco began planning the Atlantic Sunrise
Pipeline Project ("ASR Project")—the"construction of a 197-mile
large-diameter intrastate natural gas pipeline running through the
Commonwealth of Pennsylvania. This new pipeline would permit
Transco to bring gas from the Marcellus Shale south to Transco's
existing pipeline system.
Welded filed a voluntary bankruptcy petition on Oct. 22, 2018.
Following the filing, Welded, now a debtor-in-possession, sought to
continue work on certain of its construction projects. As part of
its first-day relief, Welded sought approval of the ability to
enter into a Commitment Letter providing for continuation of work
on the ASR Project under specified conditions. After a hearing, at
which Transco was represented, the Court authorized Debtor to
execute the agreement. Subsequently, Welded and Transco entered
into two more Commitment Letters to continue work on the ASR
Project, which were also approved by the Court. The Third
Commitment Letter reduced Welded's scope of Work and established
the timeline for the winddown of Welded's Work on each spread.
Welded successfully completed this reduced scope of Work.
On Feb. 28, 2019, Transco filed two proofs of claim. Proof of Claim
number 632 asserts a general unsecured claim of $16,320,000 based
on Welded's purported warranty obligations under the Contract with
respect to defects and anomalies.
On April 26, 2019, Transco filed a Request for Payment of
Administrative Expense alleging that Welded owes it $2,399,279.48
for overpayments made under the Commitment Letters.
On May 3, 2019, Welded commenced this adversary proceeding against
Transco and Williams. Welded alleges that Transco:
(1) breached the Contract by failing to pay Welded, and
(2) violated Pennsylvania's Contractor and Subcontractor Payment
Act ("CASPA") by withholding payment for completed work.
Welded also objects to Transco's proofs of claim and its request
for administrative expense. Finally, Welded seeks a declaratory
judgment that no money is owed Transco in connection with the
Commitment Letters.
Transco filed its answer on Nov. 13, 2019, denying each claim and
asserting affirmative defenses of material breach and offset;
Transco also brought counterclaims. Transco's first counterclaim
mirrors Proof of Claim number 636 and seeks damages for breach of
contract arising from:
(1) contract overbilling,
(2) violation of Contract policies,
procedures and specifications,
(3) Mechanical Completion delay and
(4) Welded 's failure to pay subcontractors and suppliers.
Transco's second counterclaim mirrors Proof of Claim number 632 and
seeks damages for coating anomalies and defects. Transco's final
counterclaim asserts that Welded breached the Commitment Letters.
Judge Silverstein concludes that Welded is the "substantially
prevailing party." While Transco was successful in some of its
arguments regarding improper charges, Welded ultimately prevailed
on the primary claims at issue. An attorney fee will be awarded in
an amount to be determined once a submission is made.
The parties agree that the outstanding invoices after adjustments
for the Court's previous rulings is $56,191,324. The rulings
require further negative adjustments as follows:
Field Personnel ($ 264,960)
PTAG Agency Fee ($ 765,084)
Pickup Trucks ($3,107,699)
Dump Trucks ($1,212,433)
Trench Boxes ($1,366,176)
Morookas ($1,209,085)
Deckhands ($ 442,031)
Warehouse ($$ 39,317)
Hauling Permits ($ 432,801)
Dent Remediation ($1,395,932)
Weld Repairs/ Cutouts ($ 987,500)
Postpetition Costs ($ 335,998)
TOTAL ($11,559,016)
This results in a judgment in favor of Welded and against Transco
in the amount of $44,632,308 plus interest of 1% per month per
Judge Silverstein's ruling, a penalty of 1% per month on all but
the Final Invoice and an attorney fee to be determined.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=KSfvo7 from PacerMonitor.com.
About Welded Construction
Perrysburg, Ohio-based Welded Construction, L.P., is a mainline
pipeline construction contractor capable of executing pipeline
construction projects in lengths ranging from a few hundred feet to
over 200 miles.
Welded Construction, L.P., and Welded Construction Michigan, LLC,
sought bankruptcy protection on Oct. 22, 2018 (Bankr. D. Del. Lead
Case No. 18-12378). The jointly administered cases are pending
before Judge Kevin Gross.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP as counsel;
and Kurtzman Carson Consultants LLC as claims and noticing agent
and administrative advisor. The Debtors also tapped Zolfo Cooper
Management, LLC and the firm's managing director Frank Pometti who
will serve as their chief restructuring officer.
An official committee of unsecured creditors was appointed on Oct.
30, 2018. The committee tapped Blank Rome LLP as its legal counsel
and Teneo Capital LLC as its investment banker and financial
advisor.
WHITE FOREST: Feb. 18 Deadline Set for Panel Questionnaires
-----------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy cases of White Forest
Resources Inc., et al.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at https://tinyurl.com/3esej834 and return by email it to
Joseph Cudia --Joseph.Cudia@usdoj.gov -- at the Office of the
United States Trustee so that it is received no later than Tuesday,
Feb. 18, 2025 at 4:00 p.m.
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About White Forest Resources Inc.
White Forest Resources Inc. and affiliates are privately-held
producers of premium metallurgical and thermal coal in the Central
Appalachian coal basin. The Debtors operate two mining operations
in West Virginia. The main buyers of the Debtors' premium
metallurgical coal, which is used in a process to produce coke for
steel manufacturing, include steel manufacturers, commodity
brokers, and industrial clients. Electric utilities and industrial
companies are the principal customers for the Debtors' thermal
coal.
White Forest Resources Inc. and affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 25-10195) on February 7, 2025. In its petition, the Debtor
reports estimated assets up to $50,000 and estimated liabilities
between $10 million and $50 million.
Honorable Bankruptcy Judge Thomas M. Horan handles the case.
The Debtor is represented by Alan M. Root, Esq., William E.
Chipman, Jr., Esq., and Alison R. Maser, Esq., at Chipman Brown
Cicero & Cole LLP in Wilmington, Delaware. The Debtors' CRO
Provider is RK Consultants LLC. The Debtors' special counsel is
Jones & Associates. The Debtors' noticing and claims agent is
Stretto.
WILD EARTH: Files Chapter 11 Bankruptcy in North Carolina
---------------------------------------------------------
On February 11, 2025, Wild Earth Inc. filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Eastern District of North
Carolina. According to court filing, the
Debtor reports $12,625,462 in debt owed to 50 and 99 creditors.
The petition states funds will be available to unsecured
creditors.
About Wild Earth Inc.
Wild Earth Inc. has been operating since 2017, originally as a
startup focused on creating a fully plant-based dog food. Its
mission is to develop vegan pet food that promotes longer,
healthier lives for pets through superior nutrition. Since its
inception, the Company has been primarily selling its products
online, with Amazon and Chewy as two major retail partners, in
addition to direct sales via its website, wildearth.com.
Wild Earth Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-00495) on February 11,
2025. In its petition, the Debtor reports total assets of
$2,424,899 and total liabilities of $12,625,462.
Honorable Bankruptcy Judge Pamela W. Mcafee handles the case.
The Debtor is represented by:
Laurie B. Biggs, Esq.
BIGGS LAW FIRM PLLC
9208 Falls of Neuse Road Suite 120
Raleigh, NC 27615
Tel: (919) 375-8040
Fax: (919) 341-9942
Email: lbiggs@biggslawnc.com
WILLIAM H. ZIEGENBALG: Case Summary & 11 Unsecured Creditors
------------------------------------------------------------
Debtor: William H. Ziegenbalg, V. Agency, LLC
293 Jackline Drive
Hampstead, NC 28443
Business Description: William H. Ziegenbalg, V. Agency, LLC is an
insurance agency specializing in the sale
and management of Allstate Insurance
products under an R3001 Agreement.
Chapter 11 Petition Date: February 13, 2025
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 25-00531
Debtor's Counsel: Richard P. Cook, Esq.
RICHARD P. COOK, PLLC
dba CAPE FEAR DEBT RELIEF
7036 Wrightsville Avenue, Suite 101
Wilmington, NC 28403
Tel: (910) 399-3458
Fax: (877) 836-6822
E-mail: CapeFearDebtRelief@gmail.com
Total Assets: $597,892
Total Liabilities: $2,313,083
The petition was signed by William H. Ziegenbalg as CEO and
managing member.
A full-text copy of the petition, which includes a list of the
Debtor's 11 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/OEPXOOA/William_H_Ziegenbalg_V_Agency__ncebke-25-00531__0001.0.pdf?mcid=tGE4TAMA
WILSON BUILDING: To Sell Wichita Property to Metro Courier
----------------------------------------------------------
Wilson Building Maintenance, Inc., seeks permission from the U.S.
Bankruptcy Court for the District of Kansas, in a hearing on April
15, 2025 at 10:30 a.m., to sell personal property, free and clear
of liens, interests, and encumbrances.
The Debtor owns and operates a commercial maintenance business in
Wichita, Kansas.
The Debtor wants to sell any and all right, title, and interest of
the Debtor in and to the claims described in the Adversary
Complaint filed by the Debtor against MonetaFi in the United States
Bankruptcy Court for the District of Kansas, including, without
limitation, all such other claims of the Debtor that could be
asserted against MonetaFi in said adversary case, and any and all
right and standing of the
Debtor under the Bankruptcy Code.
The Debtor wants sell its property to Metro Courier, Inc., a Kansas
corporation for the total sum of $1.00.
Objections to the intended sale of the Property shall be made to
the Clerk of the United States Bankruptcy Court, Room 167, 401 N.
Market, Wichita, Kansas 67202, in writing on or before March 7,
2025.
About Wilson Building Maintenance, Inc.
Wilson Building Maintenance, Inc. owns and operates a commercial
maintenance business in Wichita, Kansas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 24-10264) on April 5,
2024. In the petition signed by Anita L. Vara, president, the
Debtor disclosed up to $50,000 in both assets and liabilities.
Mark J Lazzo, Esq., at Mark J Lazzo PA, represents the Debtor as
legal counsel.
WINDSOR HOLDINGS: S&P Rates Repriced Secured Term Loans 'B+'
------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating and '3'
recovery rating (50%-70%; rounded estimate: 55%) to Windsor
Holdings III LLC's secured term loans due Aug. 1, 2030, which S&P
anticipates will be assigned new CUSIPs. This transaction is
effectively a repricing of the company's existing term loans, thus
it does not affect our existing ratings. Windsor Holdings III LLC
is the parent company and debt-issuing entity of global chemicals
and ingredients distributor Univar Solutions LLC. Through the
transaction, S&P expects the company will reduce the pricing on its
dollar- and euro-denominated term loans by up to 75 basis points
(bps) on the former and up to 50 bps on the latter. Because the
loans will be assigned new CUSIPs, S&P will discontinue its
existing ratings on the old loans in conjunction with this
assignment. S&P continues to expect Univar will improve its
operational execution and maintain weighted-average adjusted debt
to EBITDA of less than 6.5x.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- The lead borrower on the asset-based lending (ABL) revolving
credit facility and term loan B debt is Windsor Holdings III LLC,
which is a Delaware limited liability company and the direct parent
of Univar Solutions LLC.
-- The foreign co-borrowers of the ABL facility (not rated)
include entities based in the Netherlands, Belgium, and the U.K.
-- The senior secured term loan B comprises a $2.7 billion tranche
and a EUR1.0 billion tranche.
-- The company's capital structure also includes $800 million of
senior secured high-yield notes. The notes are guaranteed by all of
the existing and future direct or indirect wholly owned material
U.S. subsidiaries of the issuer, subject to customary exceptions,
that also guarantee the term loan.
-- S&P rates both term loan B tranches 'B+' with a '3' recovery
rating. The '3' recovery rating indicates its expectation for
meaningful (50%-70%; rounded estimate: 55%) recovery in the event
of a payment default.
-- S&P's simulated default scenario contemplates a default
occurring in 2029 because Univar's operating performance materially
deteriorates following a protracted economic downturn and a
sustained decline in the end-market demand for its products. Given
this scenario, the company's EBITDA margins shrink and its EBITDA
declines to levels that are insufficient to cover its fixed-charge
obligations, including interest expense, scheduled debt
amortization, and maintenance capital expenditure.
-- S&P estimates an emergence value for the company on a
going-concern basis using a 6x multiple of its projected emergence
EBITDA. The multiple is 0.5x higher than those S&P uses for other
U.S. chemicals distributors--such as GPD Cos. Parent Inc. (formerly
known as Nexeo Plastics Parent Inc.)--which reflects Univar's
stronger market position; modestly higher EBITDA margins; and thus,
superior business risk profile.
Simulated default assumptions
-- Year of default: 2029
-- EBITDA at emergence: $628 million
-- EBITDA multiple: 6x
Simplified waterfall
-- Net recovery value (after 5% administrative costs): $3.6
billion
-- Valuation split (U.S./Canada/Europe/Latin America):
66%/12%/8%/14%
-- Collateral available to secured creditors: $2.047 billion
-- Unpledged value: $678 million
-- Secured first-lien debt: $4.585 billion
--Recovery expectations: 50%-70% (rounded estimate: 55%)
Note: All debt amounts at default include six months of accrued
prepetition interest. Collateral value equals asset pledges from
obligors less priority claims plus equity pledges from nonobligors
after nonobligor debt. Direct foreign subsidiaries of domestic loan
parties pledge 65% equity; this includes the Canadian entity (12%
of valuation) and some European entities (8% of valuation).
XRC LLC: Claims to be Paid From Income & Property Sale Proceeds
---------------------------------------------------------------
XRC, LLC filed with the U.S. Bankruptcy Court for the Middle
District of Florida a Disclosure Statement describing Plan of
Reorganization dated February 5, 2025.
The Debtor is a family-owned roofing & construction company that
prioritize excellence in both construction and roofing services
throughout Central Florida. The Debtor was formally formed in
2011.
The Debtor conducts its operations from 147 Parliament Loop, Suite
1001, Lake Mary, Florida 32746 which leases from a non-affiliate
third party with over two years remaining. The Debtor conducts roof
replacements and roof repair as well as general contractor services
for both residential and commercial customers. The Debtor does
business with the tradename "Xtreme Roofing and Construction".
For the last few years, the Debtor's predecessors enjoyed
operations as a successful and well known roofing and construction
company. However, in recent years, the Debtor's members had health
concerns that caused the company to scale back operations and
consequently, revenue dropped. Additionally, the Debtor was forced
to take on new debt (including MCA lenders) that have handcuffed
the Debtor's cash flow.
Lastly, significant projects are tied up in litigation that has
left the Debtor with a large accounts receivable balance. This
domino effect has caused litigation by the Debtor's subcontractors
and suppliers for non-payment. The Debtor filed this case to halt
collection efforts and reorganize the company for the benefit of
all stakeholders.
Class 20 consists of all Allowed General Unsecured Claims against
the Debtor. In full satisfaction of the Allowed Class 20 General
Unsecured Claims, Holders of Class 20 Claims shall receive the
following: (i) the net proceeds of all Causes of Action after
payment of costs and legal expenses associated with such Causes of
Action; (ii) $250,000.00 from the sale of the Debtor's real
property; and (iii) all of the Debtor's net income, paid pro rata,
on a quarterly basis commencing on the Effective Date for 3 years.
Class 20 is Impaired.
Class 21 consists of all equity interests in the Debtor. The Class
21 Interest Holder(s) shall retain their respective Interest in the
Debtor, in the same proportion such Interest were held as of the
Petition Date. Class 4 is Unimpaired.
The Plan contemplates that the Debtor will continue to manage its
business in the ordinary course from general construction as well
as roofing services to the public. Additionally, the Debtor shall
sell its real estate and provide $250,00.00 of the net proceeds to
the Plan for distribution to Allowed Claimholders.
A full-text copy of the Disclosure Statement dated February 5, 2025
is available at https://urlcurt.com/u?l=aOs0ib from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Justin M. Luna, Esq.
LATHAM, LUNA, EDEN & BEAUDINE, LLP
201 S. Orange Ave., Suite 1400
Orlando, Florida 32801
Telephone: 407-481-5800
Facsimile: 407-481-5801
About XRC LLC
XRC, LLC offers residential and commercial roofing services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05911) on October 31,
2024. In the petition signed by Matthew P. Appell, managing member,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Grace E. Robson oversees the case.
Justin M. Luna, Esq., at Latham Luna Eden & Beaudine LLP, is the
Debtor's legal counsel.
YELLOW CORP: Seeks Court Approval for $15.1MM Real Estate Sale
--------------------------------------------------------------
Isaac Monterose of Law360 Bankruptcy Authority reports that an
investment banking advisory firm for bankrupt trucking company
Yellow Corp. has sought approval from a Delaware bankruptcy court
for three asset purchase agreements involving company-owned
properties valued at $15.1 million.
About Yellow Corporation
Yellow Corporation -- http://www.myyellow.com/-- operates
logistics and less-than-truckload (LTL) networks in North America,
providing customers with regional, national, and international
shipping services throughout. Yellow's principal office is in
Nashville, Tenn., and is the holding company for a portfolio of LTL
brands including Holland, New Penn, Reddaway, and YRC Freight, as
well as the logistics company Yellow Logistics.
Yellow Corporation and 23 affiliates concurrently filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 23-11069) on August 6, 2023, before
the Hon. Craig T. Goldblatt. As of March 31, 2023, Yellow
Corporation had $2,152,200,000 in total assets against
$2,588,800,000 in total liabilities. The petitions were signed by
Matthew A. Doheny as chief restructuring officer.
The Debtors tapped Kirkland & Ellis, LLP as restructuring counsel;
Pachulski Stang Ziehl & Jones, LLP as Delaware local counsel;
Kasowitz, Benson and Torres, LLP as special litigation counsel;
Goodmans, LLP as special Canadian counsel; Ducera Partners, LLC, as
investment banker; and Alvarez and Marsal as financial advisor.
Epiq Bankruptcy Solutions is the claims and noticing agent.
Milbank LLP serves as counsel to certain investment funds and
accounts managed by affiliates of Apollo Capital Management, L.P.
while White & Case, LLP and Arnold & Porter Kaye Scholer, LLP serve
as counsels to Beal Bank USA and the U.S. Department of the
Treasury, respectively.
On Aug. 16, 2023, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors in the Chapter 11 cases.
The committee tapped Akin Gump Strauss Hauer & Feld, LLP and
Benesch, Friedlander, Coplan & Aronoff, LLP as counsels; Miller
Buckfire as investment banker; and Huron Consulting Services, LLC,
as financial advisor.
YOUNG MEN'S: To Sell Golf Equipment to Shannon Provence
-------------------------------------------------------
The Young Men's Christian Association of Metropolitan Huntsville,
Alabama doing business as the Heart of the Valley Young Men’s
Christian Association, seeks permission from the U.S. Bankruptcy
Court for the Northern District of Alabama, Northern Division, to
sell golf equipment, free and clear of all liens, claims,
interests, and encumbrances.
The Debtor is a nonprofit corporation as described in Section
501(c)(3) of the Internal Revenue Code. Debtor is a member of the
National Council of Young Men’s Christian Associations of the
United States of America and operates as the Heart of the Valley
YMCA. Debtor’s program service areas include Madison, Morgan,
Marshall, Limestone, and Jackson counties.
The Debtor's real property is located at 4380 Cha La Kee Road,
Guntersville, Alabama 35976 known as Camp Property.
On January 9, 2025, the Court entered an Order authorizing the
Debtor to sell the Camp Property to Shannon Provence free and clear
of all liens, claims, interests, and encumbrances.
Redstone Federal Credit Union has a first priority lien on most of
the Personal Property, followed by the United States Small Business
Administration with the second priority.
Shannon Provence also offers to purchase: the 1998 Dodge Ram 1500
for $500; the 2011 Ezgo Golf electric golf cart for $2,500; and the
round tables used in the mess hall for $1,200. According to
kbb.com, an operational 1998 Dodge Ram 1500 truck has a fair
purchase value of $3,936. The truck which Debtor seeks authority to
sell does not operate. Consequently, Debtor opines that the offer
of $500 is fair value. Similarly, the Debtor submits that the offer
it received from Provence for the 2011 electric golf cart of $2,500
and the offer of $1,200 to purchase the round tables is a fair
value based on their age, use, and condition.
As to the remaining personal property, there is no established
market to sell such items.
The Debtor has received several inquiries from other camps who are
interested in purchasing some of the items shown on Exhibit A.
Based on preliminary discussions, the total value of the Personal
Property to be sold is less than $15,000.
Except for the items to be sold to Provence, because of the nature
of the Personal Property, Debtor needs the flexibility to accept an
offer to purchase some or all of the Personal Property when an
interested buyer makes an offer. Therefore, Debtor proposes that it
not be required to obtain further Orders from this Court to sell
the Personal Property so long as it is sold for a price not less
than 15% of the sales price listed.
The Debtor desires to sell the Personal Property free and clear of
all liens, claims, interests, and encumbrances, with all sale
proceeds to be deposited by the Debtor into its DIP operating
account at Redstone subject to further orders from the Court.
About The Young Men's Christian Association
The Young Men's Christian Association of Metropolitan Huntsville,
Alabama is a non-profit organization that offers programs to
support the needs of a growing and diverse communities including
childcare, health & fitness, teen programs and community programs.
YMCA filed Chapter 11 petition (Bankr. N.D. Ala. Case No, 24-81638)
on August 23, 2024, with $10 million to $50 million in both assets
and liabilities. Jeff Collen, interim chief executive officer of
YMCA, signed the petition.
Judge Clifton R Jessup Jr. presides over the case.
Kevin D. Heard, Esq., at Heard, Ary & Dauro, LLC, is the Debtor's
legal counsel.
ZIPS CAR: Uncovers Flaws in Private Credit Valuations
-----------------------------------------------------
Olivia Fishlow and Rene Ismail of Bloomberg Law reports that one
fund valued it at 93 cents on the dollar, another at 94 cents, and
others as high as 95 cents. Private credit firms seemed confident
in the $654 million loan to Zips Car Wash, with September
valuations indicating a strong likelihood of full repayment, the
report said.
In reality, the company was in serious financial distress,
according to the report.
Between March and September 2024, Zips had already obtained a
10-month loan extension and unsuccessfully attempted to refinance,
the report noted.
About Zips Car Wash LLC
Zips Car Wash LLC and affiliates are among the largest privately
owned express car wash operators in the U.S., offering advanced car
wash services using cutting-edge chemistry like Ultra HD Glaze and
Graphene-Ceramic Fusion X to deliver superior results, including
glossy tires, streak-free windows, and a well-protected paint job.
Founded in 2004 with just two locations in rural Arkansas, the
Debtors have expanded significantly through strategic acquisitions,
now operating over 260 locations across 23 states. Headquartered in
Plano, Texas, the Debtors run their businesses under the Zips, Jet
Brite, and Rocket Express brands and serve their customers through
two core revenue channels: a traditional pay-per-wash format and
Zips Unlimited, their flagship monthly subscription program with
over 600,000 members.
Zips Car Wash LLC and affiliates sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80069)
on February 5, 2025. In its petition, the Debtor reports estimated
assets between $500 million and $1 billion and estimated
liabilities between $1 billion and $10 billion.
Honorable Bankruptcy Judge Michelle V. Larson handles the case.
The Debtors' local bankruptcy counsel is Jason S. Brookner, Esq.,
Aaron M. Kaufman, Esq., and Amber M. Carson, Esq., at Gray Reed,
Dallas, Texas.
The Debtors' general bankruptcy counsel is Joshua A. Sussberg,
Esq., and Ross J. Fiedler, Esq., at Kirkland & Ellis LLP, in New
York, and Lindsey Blumenthal, Esq., at Kirkland & Ellis LLP,
Chicago, Illinois.
The Debtors' investment banker is Evercore Group LLC. The Debtors'
financial advisor is Alixpartners LLP. The Debtors' Noticing &
Claims Agent is Kroll Restructuring Administration LLC. The
Debtors' Real Estate Consultant & Advisor is Hilco Real Estate LLC.
The Debtors' tax advisor is PWC US TAX LLP.
ZURVITA HOLDINGS: Zinzino Acquires Assets After Chapter 11 Process
------------------------------------------------------------------
In a press release dated December 21, 2024, Zinzino announced that
the company has finalized an agreement to acquire the assets of
Zurvita, a direct-selling healthcare company, after serving as a
debtor-in-possession (DIP) financier during Zurvita's Chapter 11
bankruptcy proceedings. Zinzino provided DIP financing totaling USD
4.5 million, and following the successful completion of the
restructuring process, its offer to acquire Zurvita's assets has
been accepted as part of a debt-settled purchase arrangement. The
final terms of the acquisition have now been agreed upon by both
parties.
Under the agreement, Zinzino will pay a fixed purchase price of USD
9.4 million, which includes the DIP financing. Of this amount, USD
2.5 million will be settled through newly issued Zinzino shares.
Additionally, the acquisition includes contingent earn-out payments
based on sales performance from 2025 to 2029, with a maximum
additional consideration of USD 1.9 million, which will also be
fully settled in newly issued Zinzino shares. The cash portion of
the purchase price will be financed through Zinzino's existing cash
reserves.
Zurvita operates in the United States, Canada, and Mexico, offering
a diverse portfolio of innovative health and wellness products.
Through this acquisition, Zinzino will gain access to Zurvita's
distribution network, inventory, intellectual property rights, and
other key assets. While Zurvita's annual sales currently total
approximately USD 30 million, the integration with Zinzino is
expected to drive further growth through synergistic benefits,
leveraging Zinzino's test-based product approach and extensive
distributor network. Profitability is anticipated to improve
through the optimization of Zinzino's existing technological
platform and operational efficiencies.
This acquisition aligns with Zinzino's long-term strategy of
sustainable, profitable growth, expansion into new markets, and
continued enhancement of its product portfolio. Building on
previous acquisitions, including VMA Life (2020), Enhanzz (2022),
and the recent asset purchase of Xelliss, as well as its strategic
partnership with ACN, Zinzino remains committed to strengthening
its distribution capabilities and reinforcing its leadership in
personalized, test-based nutrition.
"Personalized advice and tailored solutions are the future, not
just in health and wellness," said Dag Bergheim Pettersen, CEO of
Zinzino, and Jay Shafer, CEO and co-founder of Zurvita. "Together,
we bring decades of industry expertise and a shared vision to
revolutionize the modern, personalized shopping experience through
direct sales."
About Zurvita Holdings Inc.
Zurvita Holdings Inc. is a direct sales company which is focused on
health and wellness. Its signature product, Zeal, is an all in-one
nutritional drink mix to enjoy the benefits of essential nutrients
and superfoods in one simple solution to help modern families
achieve their health goals deliciously and affordably.
Zurvita Holdings Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12823) on December
20, 2024. In the petition filed by Shadron L. Stastney, as
director, the Debtor reports estimated assets between $1 million
and $10 million and estimated liabilities between $10 million and
$50 million.
Honorable Bankruptcy Judge Mary F. Walrath handles the case.
Aaron H. Stulman, Esq. at POTTER ANDERSON & CORROON LLP represents
the Debtor as counsel.
[] Puerto Rico Bankruptcy Filings Rise 21.1% in January 2025 YOY
----------------------------------------------------------------
News is my Business reports that Puerto Rico saw a notable rise in
bankruptcy filings at the start of 2025, with 452 cases recorded in
January 2025 — an increase of 21.2% from the 373 cases filed in
January 2024. The latest Boletín de Puerto Rico report highlights
mounting economic challenges, rising debt burdens, and
industry-specific financial struggles.
The surge was primarily driven by Chapter 7 and Chapter 13 filings.
Chapter 7 cases, which involve liquidation, increased by 29.7% to
144, up from 111 the previous year. Chapter 13 filings, allowing
individuals to restructure debt, climbed 20.2% to 304, compared to
253 in January 2024.
Meanwhile, Chapter 11 filings, typically used for business
reorganization, fell by 50%, with just four cases reported versus
eight last 2024. No Chapter 12 cases, which apply to family farmers
and fishers, were filed.
The pharmaceutical sector accounted for the highest
bankruptcy-related debt, with Neolpharma Inc. leading at $21.1
million -- 73.83% of the total reported in January. Other
industries affected included:
* Real estate: One case, $1.53 million in debt (16.64% of total).
* Food services: One case, $1.44 million in debt (11.63%).
* Landscaping: Two cases, $261,379 in total debt (2.11%).
* Beauty salons: Three cases, $182,728 in total debt (1.47%).
Total bankruptcy-related debt reached $68.5 million in January
2025, a 50.86% increase from $45.4 million in January 2024.
Despite the overall rise, commercial bankruptcies saw a slight
decline, with 25 cases in January 2025—down 3.8% from 26 the
previous year. However, certain municipalities experienced
significant spikes in filings:
* San Sebastián: +400%
* Salinas: +167%
* Vega Baja: +150%
* Bayamon: +240%
* Cayey: +80%
Ponce led in commercial bankruptcies with four cases (+300%),
followed by San Juan with three (+50%) and Carolina with two
(+100%).
[] Skarzynski Marick Expands Bankruptcy Team in Los Angeles
-----------------------------------------------------------
Skarzynski Marick & Black is pleased to welcome an experienced
bankruptcy team to its Los Angeles office. Led by Russell Roten and
Jeff Kahane, the group also includes Timothy Evanston and Nathan
Reinhardt who join the firm as Counsel. The bankruptcy group
focuses its nationwide practice on representing the insurance
industry, complementing Skarzynski Marick's highly regarded
insurance coverage litigation practice. They join from Duane
Morris.
Bankruptcy Team Added -- Russell Roten, Jeff Kahane, Timothy
Evanston and Nathan Reinhardt
"With the proliferation of bankruptcy filings by our insurer
clients' policyholders, we are now able to provide the interrelated
coverage and bankruptcy representation our clients need," said
Michael Marick, leader of the firm's nationwide mass tort and
complex insurance coverage litigation practice. "Russell, Jeff, and
their team enable us to offer our clients seamless representation
under one roof."
"We are excited to join Skarzynski Marick, which shares our focus
of representing the insurance industry in its toughest cases," said
Roten. "The firm's latent injury and exposure coverage practice
aligns ideally with our bankruptcy work for insurers in these
areas."
Tammy Yuen, Managing Partner, added: "While we effectively
represent insurers nationwide and internationally, from our New
York and Chicago offices, we have long searched for the right
opportunity to expand our presence in California. We are excited to
be doing so with such an accomplished bankruptcy practice. We
expect to continue to grow the Los Angeles office with other
attorneys dedicated to representing the insurance industry in high
exposure insurance disputes."
Roten and Kahane have practiced together as a team for decades,
representing insurers and secured and unsecured creditors across
the United States in complex contested Chapter 11 bankruptcy cases.
Among the matters in which they have represented insurers'
interests are In re Mid-Valley, In re Pittsburgh Corning, In re
Federal-Mogul Global, In re Kaiser Aluminum, In re The Roman
Catholic Archbishop of Portland, In re A.P.I., In re C.E. Thurston,
In re ASARCO, In re Northwest Airlines, In re Thorpe Insulation, In
re the Diocese of Wilmington, In re Champion Homes, In re CFB
Liquidation Corp., In re the Archdiocese of Milwaukee, In re the
Archdiocese of St. Paul & Minneapolis, and In re Kaiser Gypsum.
Roten has tried numerous jury and court cases to verdict. He
received both his law and undergraduate degrees from the University
of North Carolina. Kahane has been awarded the American Bankruptcy
Institute Medal of Excellence. He is a graduate of the University
of California at Los Angeles School of Law, where he was
editor-in-chief and Chief Technology Editor of the UCLA Journal of
Law and Technology, and California State University at Northridge
(cum laude).
About Skarzynski Marick & Black
Skarzynski Marick & Black is a law firm co-centered in New York
City and Chicago which represents the global insurance industry in
its most complex and challenging matters. The firm is recognized
for its industry leading representation of insurers across a
diverse range of insurance-related services, including coverage and
bad faith litigation, arbitration and counselling, bankruptcy,
claims monitoring, and structuring insurance policies and risk
transfer programs. The firm has deep experience in all types of
insurance, including directors and officers, general liability
(particularly for long-tail exposures), aviation, professional
liability, cyber, property, and product recall and contamination
coverages. The firm also has a significant commercial and complex
litigation practice.
For more information, please visit www.skarzynski.com.
[] Tiger Group to Auction Fleet From Bankrupt Dealer
----------------------------------------------------
A court-approved bankruptcy sale on February 19 offers an
opportunity to acquire well-maintained trucks and trailers at
liquidation values. Tiger Group is conducting the live webcast
auction as part of the complete liquidation of a leading North
American tractor truck and trailer dealer and leasing company.
Represented in the sale are well-known makers such as
International, Peterbilt, Freightliner, Paccar, Kenworth and
Daimler. In addition, 53-foot dry van and reefer trailers from
CIMC, Great Dane, Hyundai, Utility and Wabash are available in the
nationwide auction.
"More than 70 new and used tractor trucks and trailers are featured
in this sale, which is the second in a series," noted Chad Farrell,
Managing Director, Tiger Commercial & Industrial. "It is an
outstanding opportunity, as most of these assets are predominantly
late-model, ranging in age from 2021 to 2024."
The live webcast auction starts at 1 p.m. (CT) on Wednesday, Feb.
19 at SoldTiger.com. Veteran auctioneer Wayne Hecht, Senior
Director of Operations for Tiger Commercial & Industrial, will take
online bids in a live simulcast from Tiger Group's studio.
Highlights include:
TRACTOR TRUCKS
(8) Peterbilt 389 and 579 truck tractors
(10) 2024 to 2019 International LT625 truck tractors
(32) 2024 to 2019 Freightliner Cascadia truck tractors
(3) 2023 and 2022 Kenworth T680 truck tractors
(20+) Additional late-model truck tractors from Mack, Peterbilt,
Freightliner, Kenworth, International and Volvo
TRAILERS
(8) CIMC and Vanguard reefer trailers
(6) Utility and Hyundai dry van trailers
(11) Additional dry van trailers
The assets are stored in California, Georgia, Indiana, Ohio,
Missouri, Texas, South Carolina, Virginia several other states.
For asset photos, descriptions, and other information, visit
https://soldtiger.com/sales/auction-and-fleet-liquidation-late-model-trucks-trailers/
For additional information, email: auctions@tigergroup.com or call
(805) 497-4999.
[] US Cannabis Industry Business Receivership Rise Amid Challenges
------------------------------------------------------------------
https://www.greenmarketreport.com reports that California's
cannabis industry, once hailed as a model for legalization, is now
grappling with significant financial difficulties, leading to a
surge in businesses entering receivership. High taxes, complex
regulations, and market oversupply have made it increasingly
difficult for operators to remain viable in the nation's largest
legal cannabis market.
Receivership, a legal process in which a court appoints a neutral
third party to manage a distressed company's assets, is becoming
more common in the cannabis sector due to ongoing cash flow issues
and restricted access to traditional financing. Many small and
mid-sized businesses are struggling with declining wholesale
prices, high compliance costs, and limited banking options due to
federal restrictions, according to report.
Several major cannabis companies fell into receivership in 2024.
Cannabis Business Broker Green Life Business Group Inc. played a
crucial role in facilitating these cases, including the asset sale
of the well-known cannabis brand HIGH TIMES, which received over 36
offers. This marked a turning point in the industry, underscoring
the sector's broader financial struggles, the report states.
In January 2025, Green Life was once again enlisted to manage the
largest cannabis receivership sale to date. Statehouse Holdings, a
leading industry player, put all its California assets up for sale,
including real estate, prominent brands, micro businesses, and
established dispensaries. The sale attracted more than 70 offers
from industry operators eager to acquire key assets, the report
relays.
Receivership has impacted companies of all sizes. In 2024, brands
like Lemonnade listed a dispensary in Antioch, drawing interest
from smaller operators looking for a fresh start. Likewise, in
early 2025, Juva Life entered receivership with a 765-light
cultivation facility, real estate, and a dispensary, generating
strong interest ahead of the February 14, 2025 bidding deadline.
Despite ongoing financial turmoil and negative industry sentiment,
Green Life Business Group continues to deliver strong results,
having facilitated over 300 cannabis transactions and currently
managing more than 200 active cannabis licenses and businesses on
the market.
[^] BOND PRICING: For the Week from February 10 to 14, 2025
-----------------------------------------------------------
Company Ticker Coupon Bid Price Maturity
------- ------ ------ --------- --------
2U LLC TWOU 2.250 40.125 5/1/2025
99 Cents Only Stores LLC NDN 7.500 12.103 1/15/2026
99 Cents Only Stores LLC NDN 7.500 12.103 1/15/2026
99 Cents Only Stores LLC NDN 7.500 12.103 1/15/2026
Allen Media LLC / Allen
Media Co-Issuer Inc ALNMED 10.500 38.537 2/15/2028
Allen Media LLC / Allen
Media Co-Issuer Inc ALNMED 10.500 39.650 2/15/2028
Allen Media LLC / Allen
Media Co-Issuer Inc ALNMED 10.500 38.500 2/15/2028
American Airlines
2017-1 Class B
Pass Through Trust AAL 4.950 99.764 2/15/2025
Amyris Inc AMRS 1.500 0.802 11/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 0.750 8/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 0.750 8/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 0.750 8/15/2026
At Home Group Inc HOME 7.125 29.206 7/15/2029
At Home Group Inc HOME 7.125 29.206 7/15/2029
Audacy Capital LLC CBSR 6.750 1.256 3/31/2029
Audacy Capital LLC CBSR 6.500 3.805 5/1/2027
Audacy Capital LLC CBSR 6.750 1.256 3/31/2029
Avon Products Inc AVP 8.450 3.836 3/15/2043
BPZ Resources Inc BPZR 6.500 3.017 3/1/2049
Beasley Mezzanine
Holdings LLC BBGI 8.625 60.500 2/1/2026
Beasley Mezzanine
Holdings LLC BBGI 9.200 45.293 8/1/2028
Beasley Mezzanine
Holdings LLC BBGI 8.625 60.500 2/1/2026
Biora Therapeutics Inc BIOR 7.250 56.500 12/1/2025
BuzzFeed Inc BZFD 8.500 92.618 12/3/2026
Carrier Global Corp CARR 2.242 99.868 2/15/2025
Carrier Global Corp CARR 2.242 99.721 2/15/2025
Carrier Global Corp CARR 2.242 99.720 2/15/2025
Castle US Holding Corp CISN 9.500 46.711 2/15/2028
Castle US Holding Corp CISN 9.500 46.422 2/15/2028
Citigroup Global
Markets Holdings
Inc/United States C 4.703 99.576 3/20/2025
Comcast Corp CMCSA 3.375 99.972 2/15/2025
CorEnergy Infrastructure
Trust Inc CORR 5.875 70.250 8/15/2025
Cornerstone Chemical Co LLC CRNRCH 10.250 49.875 9/1/2027
Cumulus Media New
Holdings Inc CUMINT 8.000 35.317 7/1/2029
Cumulus Media New
Holdings Inc CUMINT 8.000 35.580 7/1/2029
Curo Oldco LLC CURO 7.500 14.125 8/1/2028
Curo Oldco LLC CURO 7.500 10.148 8/1/2028
Curo Oldco LLC CURO 7.500 14.125 8/1/2028
Cutera Inc CUTR 2.250 15.000 3/15/2026
Cutera Inc CUTR 2.250 9.538 6/1/2028
Cutera Inc CUTR 4.000 8.550 6/1/2029
Danimer Scientific Inc DNMR 3.250 0.625 12/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 6.625 0.225 8/15/2027
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 6.625 0.225 8/15/2027
Energy Conversion Devices ENER 3.000 0.762 6/15/2013
Enviva Partners LP /
Enviva Partners
Finance Corp EVA 6.500 24.614 1/15/2026
Enviva Partners LP /
Enviva Partners
Finance Corp EVA 6.500 24.614 1/15/2026
Exela Intermediate LLC /
Exela Finance Inc EXLINT 11.500 27.768 7/15/2026
Exela Intermediate LLC /
Exela Finance Inc EXLINT 11.500 30.000 7/15/2026
FS KKR Capital Corp FSK 4.250 99.892 2/14/2025
FS KKR Capital Corp FSK 4.250 99.988 2/14/2025
Federal Home Loan Banks FHLB 1.500 99.368 2/18/2025
Federal Home Loan Banks FHLB 1.000 99.360 2/18/2025
Federal Home Loan Banks FHLB 1.550 96.644 2/18/2025
Federal Home Loan Banks FHLB 0.900 99.358 2/18/2025
Federal Home Loan Banks FHLB 0.550 99.351 2/18/2025
Federal Home Loan Banks FHLB 1.500 99.372 2/18/2025
Federal Home Loan Banks FHLB 0.600 99.352 2/18/2025
Federal Home Loan Banks FHLB 1.540 99.326 2/24/2025
Federal Home Loan Banks FHLB 0.375 99.278 2/25/2025
Federal Home Loan Banks FHLB 0.670 99.840 2/19/2025
Federal Home Loan
Mortgage Corp FHLMC 0.500 99.809 2/14/2025
Federal Home Loan
Mortgage Corp FHLMC 3.600 99.394 2/24/2025
Federal National
Mortgage Association FNMA 0.500 99.922 2/19/2025
Federal National
Mortgage Association FNMA 4.500 99.996 5/24/2029
First Republic Bank/CA FRCB 4.375 0.025 8/1/2046
First Republic Bank/CA FRCB 4.625 0.250 2/13/2047
Global Payments Inc GPN 2.650 99.882 2/15/2025
Goldman Sachs Group Inc/The GS 3.000 100.000 2/18/2025
Goldman Sachs Group Inc/The GS 3.250 100.000 2/21/2025
Goodman Networks Inc GOODNT 8.000 5.000 5/11/2022
Goodman Networks Inc GOODNT 8.000 1.000 5/31/2022
H-Food Holdings
LLC / Hearthside
Finance Co Inc HEFOSO 8.500 3.250 6/1/2026
H-Food Holdings
LLC / Hearthside
Finance Co Inc HEFOSO 8.500 2.990 6/1/2026
HSBC USA Inc HSBC 3.098 99.838 2/28/2025
Hallmark Financial
Services Inc HALL 6.250 19.270 8/15/2029
Homer City Generation LP HOMCTY 8.734 38.750 10/1/2026
Inotiv Inc NOTV 3.250 41.250 10/15/2027
Invacare Corp IVC 5.000 0.667 11/15/2024
JPMorgan Chase Bank NA JPM 2.000 89.528 9/10/2031
Jervois Mining USA Ltd JERMNG 12.500 70.003 7/20/2026
Karyopharm Therapeutics KPTI 3.000 76.933 10/15/2025
Ligado Networks LLC NEWLSQ 15.500 32.000 11/1/2023
Ligado Networks LLC NEWLSQ 17.500 11.250 5/1/2024
Ligado Networks LLC NEWLSQ 15.500 33.033 11/1/2023
Ligado Networks LLC NEWLSQ 17.500 10.750 5/1/2024
Lightning eMotors Inc ZEVY 7.500 1.000 5/15/2024
MBIA Insurance Corp MBI 15.824 3.576 1/15/2033
MBIA Insurance Corp MBI 15.824 3.576 1/15/2033
Macy's Retail Holdings LLC M 6.700 86.529 7/15/2034
Macy's Retail Holdings LLC M 6.900 86.665 1/15/2032
Mashantucket Western
Pequot Tribe MASHTU 7.350 51.000 7/1/2026
Morgan Stanley MS 1.800 78.470 8/27/2036
OPKO Health Inc OPK 4.500 99.857 2/15/2025
PECF USS Intermediate
Holding III Corp UNSTSV 8.000 35.444 11/15/2029
PECF USS Intermediate
Holding III Corp UNSTSV 8.000 35.444 11/15/2029
PTC Inc PTC 3.625 99.834 2/15/2025
Peachtree Corners
Funding Trust VOYA 3.976 99.899 2/15/2025
Phillips 66 Co PSX 3.605 99.897 2/15/2025
Phillips 66 Partners LP PSXP 3.605 99.448 2/15/2025
Polar US Borrower
LLC / Schenectady
International
Group Inc SIGRP 6.750 54.675 5/15/2026
Polar US Borrower
LLC / Schenectady
International
Group Inc SIGRP 6.750 54.675 5/15/2026
QVC Inc QVCN 4.450 99.739 2/15/2025
Rackspace Technology
Global Inc RAX 5.375 29.837 12/1/2028
Rackspace Technology
Global Inc RAX 3.500 27.054 2/15/2028
Rackspace Technology
Global Inc RAX 5.375 31.327 12/1/2028
Rackspace Technology
Global Inc RAX 3.500 27.054 2/15/2028
Renco Metals Inc RENCO 11.500 24.875 7/1/2003
Rite Aid Corp RAD 7.700 1.726 2/15/2027
Rite Aid Corp RAD 6.875 3.616 12/15/2028
Rite Aid Corp RAD 6.875 3.616 12/15/2028
Shutterfly LLC SFLY 8.500 51.179 10/1/2026
Shutterfly LLC SFLY 8.500 51.179 10/1/2026
Spanish Broadcasting
System Inc SBSAA 9.750 65.000 3/1/2026
Spanish Broadcasting
System Inc SBSAA 9.750 65.000 3/1/2026
Spirit Airlines Inc SAVE 1.000 46.250 5/15/2026
Spirit Airlines Inc SAVE 4.750 46.000 5/15/2025
Stem Inc STEM 0.500 25.000 12/1/2028
Sunnova Energy
International Inc NOVA 0.250 49.750 12/1/2026
Sunnova Energy
International Inc NOVA 2.625 25.000 2/15/2028
TPI Composites Inc TPIC 5.250 17.899 3/15/2028
TerraVia Holdings Inc TVIA 5.000 4.644 10/1/2019
Townsquare Media Inc TSQ 6.875 99.552 2/1/2026
Tricida Inc TCDA 3.500 8.125 5/15/2027
Turning Point Brands Inc TPB 5.625 99.344 2/15/2026
Turning Point Brands Inc TPB 5.625 99.471 2/15/2026
Veritone Inc VERI 1.750 46.250 11/15/2026
Virgin Galactic Holdings Inc SPCE 2.500 41.313 2/1/2027
Vitamin Oldco Holdings Inc GNC 1.500 0.435 8/15/2020
Voyager Aviation Holdings LLCVAHLLC 8.500 9.719 5/9/2026
Voyager Aviation Holdings LLCVAHLLC 8.500 9.719 5/9/2026
Voyager Aviation Holdings LLCVAHLLC 8.500 9.719 5/9/2026
WW International Inc WW 4.500 20.070 4/15/2029
WW International Inc WW 4.500 19.591 4/15/2029
Wesco Aircraft Holdings Inc WAIR 9.000 42.139 11/15/2026
Wesco Aircraft Holdings Inc WAIR 9.000 42.139 11/15/2026
Winnebago Industries Inc WGO 1.500 98.925 4/1/2025
i3 Verticals LLC IIIV 1.000 100.065 2/15/2025
*********
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
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are not intended to reflect actual trades. Prices for actual
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*********
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Troubled Company Reporter is a daily newsletter co-published
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