/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/250218.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, February 18, 2025, Vol. 29, No. 48 Headlines 2015 PARK: Unsecured Creditors to be Paid in Full in 12 Months 21ST CENTURY CHARTER SCHOOL: S&P Affirms 'B+' Revenue Bond Rating 23ANDME HOLDING: Zentree Investments Holds 8.4% of Class A Shares 6 SUNSET LANE: Seeks Approval to Hire Kelly Firm as Legal Counsel ACCELERATE DIAGNOSTICS: Indaba Capital Holds 9.9% Equity Stake AEGIS TOXICOLOGY: $300MM Bank Debt Trades at 42% Discount AGILITI HEALTH: Moody's Alters Outlook on 'B2' CFR to Negative ALGORHYTHM HOLDINGS: Issues 476-Mil. Common Shares Under Dec. 4 SPA ALPINE 4: To Shut Down Operations, K. Wilson to Step Down as CEO AMERICAN TIRE: Plan Exclusivity Period Extended to May 20 AMERIGAS PARTNERS: Moody's Alters Outlook on 'B1' CFR to Negative AMERINVEST LLC: Unsecureds Will Get 100% of Claims in Plan ANGIE'S TRANSPORTATION: Gets OK to Use Regions' Cash Collateral ANGIE'S TRANSPORTATION: Gets OK to Use Volvo's Cash Collateral APPLIED ENERGETICS: Completes $1.2 Million Private Placement AQUA METALS: S. Henderson, E. Gangloff Appointed as Directors ASCEND PERFORMANCE: $1.09BB Bank Debt Trades at 29% Discount ATARA BIOTHERAPEUTICS: Panacea, 3 Others Report 9.5% Stake ATLAS PURCHASER: $423.7MM Bank Debt Trades at 61% Discount ATLAS PURCHASER: $45.6MM Bank Debt Trades at 99% Discount AUTO BUFFY: Hires Mercurius Advisory Services as Accountant AW CONCORDIA: Unsecureds Will Get 50% of Claims over 5 Years B&H SFR: Seeks Chapter 11 Bankruptcy Protection in Georgia BABCOCK SOLUTIONS: Unsecureds Will Get 38.33% over 5 Years BEAZER HOMES: S&P Alters Outlook to Negative, Affirms 'B+' ICR BELLTOWN FARMS: Taps Big Iron Auction as Broker, Auctioneer BIOXCEL THERAPEUTICS: Implements 1-for-16 Reverse Stock Split BL & MORE: Unsecureds Will Get 0.39% of Claim in Subchapter V Plan BLACKMARKET BAKERY: Unsecureds to Get 50 Cents on Dollar in Plan BREWCO BORROWER: $115MM Bank Debt Trades at 44% Discount CAMPBELL FAMILY: Robert Alan Byrd Named Subchapter V Trustee CAPITAL PROPERTIES: Taps Exp Reality as Real Estate Broker CAROLINA INTERNATIONAL: S&P Affirms 'BB+' Rating on Rev. Bonds CARRIAGE PURCHASER: Moody's Affirms 'B2' CFR, Outlook Stable CDF INC: Seeks to Hire Galloway Wetterman as Attorney CELANESE US: Moody's Lowers Sr. Unsec. Rating to Ba2, Outlook Neg. CENTENNIAL HOUSING: Seeks to Extend Plan Exclusivity to March 28 CENTURY CASINOS: Moody's Cuts CFR to 'Caa1', Outlook Stable CIMG INC: Inks Amendment No. 1 to SPA CLOUTER CREEK: U.S. Trustee Unable to Appoint Committee COGECO COMMUNICATIONS (USA): S&P Affirms 'BB' ICR, Outlook Neg. COGECO COMMUNICATIONS: S&P Affirms 'BB+' ICR, Outlook Negative COLIANT SOLUTIONS: Files Chapter 11 Bankruptcy in Georgia COMMUNITY HEALTH: CastleKnight Entities Hold 6.8% Equity Stake COMPAC USA: Seeks to Hire Barakat + Bossa as Special Counsel COMPREHENSIVE INTERVENTIONAL: Files Chapter 11 Bankruptcy COOPER-STANDARD: President Reports Beneficial Ownership CORBETT BUILDINGS: Hires Keller Williams Real Estate as Broker CORNER LOUNGE 1: Seeks to Hire Juan Pedrozo as Accountant COTIVITI INC: Moody's Affirms 'B2' CFR & Alters Outlook to Negative CREDIT ACCEPTANCE: Moody's Rates New $400MM Unsecured Notes 'Ba3' CROSBY US: Moody's Puts 'B2' CFR Under Review for Upgrade D & C GLOBAL: Sec. 341(a) Meeting of Creditors on March 3 DESTINATIONS TO RECOVERY: Available Cash and Income to Fund Plan DOVGAL EXPRESS: Gets Interim OK to Use Cash Collateral DRIVEHUB AUTO: Andrew Layden Named Subchapter V Trustee DTH 215 VENTURE: Amends Unsecured Claims Pay Details EAST ORANGE SD: Moody's Withdraws 'Ba1' Issuer Rating EASTSIDE DISTILLING: Beeline Labs Secures Funding for MagicBlocks EATSTREET INC: Business Operations & Available Cash to Fund Plan EMPLOYBRIDGE LLC: $925MM Bank Debt Trades at 40% Discount EPIC SWEETS: Unsecureds to Get Share of Income for 36 Months ESSEX TECHNOLOGY: U.S. Trustee Appoints Creditors' Committee FIRST MODE: Committee Taps Dundon Advisers as Financial Advisor FIRST MODE: Committee Taps McDermott Will & Emery as Counsel FIRST MODE: Updates Prepetition Secured Loan Claims Details FLECK REAL ESTATE: Unsecureds to Get 100 Cents on Dollar in Plan FLEX INTERMEDIATE: S&P Alters Outlook to Stable, Affirms 'BB' ICR FLEXSYS HOLDINGS: $475MM Bank Debt Trades at 34% Discount FLORIDA MONSTER: Gets OK to Use Cash Collateral Until March 26 FRANCHISE GROUP: $1BB Bank Debt Trades at 48% Discount FRANCHISE GROUP: $300MM Bank Debt Trades at 48% Discount FRANCHISE GROUP: Updates Unsecured Claims Pay Details FREEPORT LNG: S&P Alters Outlook to Stable, Affirms 'B-' ICR FWR LLC: U.S. Trustee Unable to Appoint Committee GARDNER-WEBB UNIVERSITY: Moody's Affirms Ba1 Issuer & Bond Ratings GAUCHO GROUP: Taps Basile Law Firm as Special Litigation Counsel GENEVER HOLDINGS: Trustee Taps Hamilton Group as Auctioneer GEO GROUP: S&P Alters Outlook to Positive, Affirms 'B+' ICR GILGAL MEDICAL: L. Todd Budgen Named Subchapter V Trustee GRIFFON CORP: S&P Ups ICR to 'BB-' on Continued Strong Earnings H-FOOD HOLDINGS: $1.15BB Bank Debt Trades at 39% Discount H-FOOD HOLDINGS: $515MM Bank Debt Trades at 39% Discount HALO BUYER: Moody's Withdraws 'B3' CFR Following Debt Repayment HALO ESTATES: Seeks to Hire Tenina Law as Bankruptcy Counsel HANESBRANDS INC: Moody's Rates New Senior Secured Loans 'Ba2' HIGH POINT ACADEMY: Moody's Lowers Rating to 'Ba3' HONDUCRETE REDI: Areya Holder Aurzada Named Subchapter V Trustee HULKZ CONSTRUCTION: Updates Secured Claims Pay; Files Amended Plan HYPERSCALE DATA: Issues $1.93M Convertible Note to Orchid Finance ID ELECTRIC: Unsecureds to Split $16.5K via Quarterly Payments INDIVIDUALIZED ABA: Unsecureds to Get $982 per Month for 60 Months INGENOVIS HEALTH: $675MM Bank Debt Trades at 51% Discount INNOVEREN SCIENTIFIC: FWHC Holdings and Affiliates Exit Stake INOTIV INC: Posts $27.6 Million Net Loss in Q1 2025 IRECERTIFY: Unsecured Creditors Will Get 10% of Claims in Plan JACKSON HOSPITAL: Sec. 341(a) Meeting of Creditors on March 25 JASMINE R ELMORE: Gets Extension to Access Cash Collateral JENRAN HOLDINGS: Unsecureds Will Get 5% of Claims over 12 Months JORDAN HEALTH: Plan Exclusivity Period Extended to June 4 JUMP FINANCIAL: Moody's Affirms 'Ba1' CFR, Outlook Stable KKR REAL ESTATE: Moody's Alters Outlook on 'Ba3' CFR to Stable KKR REAL ESTATE: S&P Alters Outlook to Stable, Affirms 'B+' ICR KNIFE RIVER: Moody's Ups CFR to 'Ba1', Outlook Stable LAVIE CARE: Reaches Settlement Deal w/ IRS in Chapter 11 Case LAW OFFICE OF JESSICA: Taps Massey and Company as Accountant LILLY INDUSTRIES: Robert Goe Named Subchapter V Trustee LITTLE MINT: Poyner Spruill Represents Riach Parties & Greene LOUKYA INC: Unsecureds Will Get 20.50% of Claims in Plan LR GREENVIEW: Mark Sharf Named Subchapter V Trustee LUTHERAN HOME: Gets Interim OK to Use Cash Collateral M4B SFR: Seeks Chapter 11 Bankruptcy Protection in Georgia MEDICAL SOLUTIONS: $1.05BB Bank Debt Trades at 31% Discount MID-ATLANTIC RHEUMATOLOGY: Taps Frost & Associates as Counsel MIDSTATE BASEMENT: Gets Another Extension to Access Cash Collateral MILLENKAMP CATTLE: $28M Unsecured Claims to Recover 100% in Plan MIRAMAR TOWNHOMES: Court OKs Interim Use of Cash Collateral MJM LANDSCAPE: Court OKs Interim Use of Cash Collateral MJM LANDSCAPE: Seeks to Hire R&A CPAS PLLC as Accountant MLN US HOLDCO: $155.8MM Bank Debt Trades at 44% Discount MONTEREY CAPITOLA: Gets Interim OK to Use Cash Collateral MONTEREY CAPITOLA: Taps Kendall & Potter as Property Manager NAKED JUICE: $1.82BB Bank Debt Trades at 41% Discount NAKED JUICE: $450MM Bank Debt Trades at 77% Discount NEWPORT VENTURES: Seeks to Extend Plan Exclusivity to April 29 NORTHERN DYNASTY: Open Letter Updates Pebble Project Outlook NOVABAY PHARMACEUTICALS: Poplar Point Holds 12.7% Equity Stake OFFICE PROPERTIES: Sells New Notes for $175MM OHANA AMERICA: Seeks to Hire Buddy D. Ford P.A. as Attorney OKLAHOMA FORGE: Committee Taps Bernstein-Burkley as Counsel OXFORD FINANCE: Moody's Affirms 'Ba2' CFR, Outlook Remains Stable PALOMAR HEALTH: Moody's Cuts Revenue Ratings to Caa1, Outlook Neg. PHYSICIAN PARTNERS: $150MM Bank Debt Trades at 58% Discount POWER BRANDS: Files Amendment to Disclosure Statement PRAIRIE EYE: Files Chapter 11 Bankruptcy in California PRESPERSE CORPORATION: Plan Exclusivity Period Extended to July 7 PRETIUM PKG: $1.04BB Bank Debt Trades at 30% Discount PRETIUM PKG: $350MM Bank Debt Trades at 74% Discount PROS HOLDINGS: Fiscal Q4 Revenue Up 10% to $85 Million PROVIDENT GRP-ROWAN: Moody's Alters Outlook on 2015A Bonds to Pos. PYXUS INTERNATIONAL: Posts $19MM Net Income for 4Q 2024 Q'BOLE INC: Unsecureds to Get 11.5 Cents on Dollar in Plan QUALITY SERVICES: Unsecureds to Get 16 Cents on Dollar in Plan RAPID7 INC: Chief People Officer Christina Luconi Resigns REDLINE METALS: Court OKs Interim Use of Cash Collateral RISE MANAGEMENT: Unsecureds Will Get 13.61% over 84 Months RIVERSIDE FARMERS: Unsecureds to Get Share of Income for 60 Months RLG HOLDINGS: $110MM Bank Debt Trades at 27% Discount RSTZ TRANSPORT: Taps Falcone Law Firm as Bankruptcy Counsel SCANROCK OIL: Seeks Chapter 11 Bankruptcy Protection in Texas SCREENVISION LLC: S&P Downgrades ICR to 'CCC-', Outlook Negative SEAQUEST HOLDINGS: Matt McKinlay Appointed as Chapter 11 Trustee SEATON INVESTMENTS: Rental Income to Fund Plan Payments SKY ROCK: Seeks to Hire Herrin Law PLLC as Bankruptcy Counsel SMITH GLOBAL: Claims to be Paid From Disposable Income SOLUNA HOLDINGS: YA II PN Reports 9.99% Equity Stake SONOMA PHARMACEUTICALS: Reports $928K Net Loss in Fiscal Q3 SONRAVA HEALTH: $552.5MM Bank Debt Trades at 59% Discount SPIRIT AIRLINES: Extends Equity Rights Offering Deadline to Feb. 20 SRAM LLC: Moody's Affirms B1 CFR & Rates New First Lien Loans B1 STEWARD HEALTH: Taps King & Spalding as Special Litigation Counsel STRAWBERRY HILL: Seeks to Hire CBIZ Inc as Accountant SWC INDUSTRIES: OpCo Unsecureds Will Get 20% of Claims in Plan TAMPA BRASS: U.S. Trustee Appoints Creditors' Committee TJC SPARTECH: $345MM Bank Debt Trades at 30% Discount TRINITY LEGACY: Court Extends Cash Collateral Access to May 31 TRUE NORTH CANNABIS: Inability to Pay Debt Prompts CCAA Filing UGI INT'L: $221MM Intercompany Loan No Impact on Moody's 'Ba2' CFR ULTRA SAFE: Claims to be Paid From Asset Sale Proceeds UNITED FIBER: Committee Taps Marshack Hays Wood as General Counsel UNRIVALED BRANDS: Unsecureds to Get Share of GUC Distribution UROGEN PHARMA: Morgan Stanley Cuts Equity Stake Below 5% US HOUSING: Glen Watson Named Subchapter V Trustee VALLEY PARK: Seeks to Hire Lynch Law Firm as Bankruptcy Counsel VALLEY PARK: Seeks to Hire Rollins Law Firm as Bankruptcy Counsel WEST CENTRO: Amends Bank of America Secured Claim Pay WEST RIDGE ACADEMY: Moody's Lowers Rating on Revenue Bonds to Ba2 WILDCAT LENDER: Mark Sharf Named Subchapter V Trustee WILLIAM CARTER: Moody's Affirms 'Ba1' CFR, Outlook Remains Stable WILLIAM H. ZIEGENBALQ: Sec. 341(a) Meeting of Creditors on March 20 WOOF HOLDINGS: $138.5MM Bank Debt Trades at 39% Discount WYNN RESORTS: Secures $2.4 Billion Loan for UAE Resort Construction X4 PHARMACEUTICALS: Cuts 30% of Workforce in Restructuring ZEVRA THERAPEUTICS: BlackRock Reports 7.6% Equity Stake ZIPS CAR WASH: Unsecured Creditors to Get Nothing in Plan [^] Large Companies with Insolvent Balance Sheet ********* 2015 PARK: Unsecured Creditors to be Paid in Full in 12 Months -------------------------------------------------------------- 2015 Park Street, LP, filed with the U.S. Bankruptcy Court for the Southern District of Texas a First Amended Disclosure Statement and Chapter 11 Plan dated February 7, 2025. The Debtor owns the Park Apartments, a multi-family housing complex in Corpus Christi. The Park Apartments complex was built in the 1960s. Debtor purchased the complex in 2005 for $7 million. This bankruptcy case was filed to stop a foreclosure by secured lender Fannie Mae and its agent Wells Fargo Bank. They commenced foreclosure on a $6 million loan that is secured by an apartment complex worth $11 million, and they did so on false grounds, in violation of the underlying loan agreements, and despite Debtor being current at all times on all note payments. The core of the dispute is whether the loan documents permit Fannie Mae to impose unreasonable additional capital investments and other unwarranted conditions on the Debtor, as they did to artificially create the grounds for the foreclosure. Debtor asserts they do not. At the time the case was filed, the Debtor had cash in the amount of $43,975. The Debtor owns a fee simple interest in The Park Apartments, located at 4040 Schanen in Corpus 78413, Christi Texas. The Debtor believes the market value is $11.1 million, and it is subject to a first mortgage in favor of FNMA in the approximate current amount of $6 million. The Debtor scheduled general unsecured debt in the amount of $1,104,400.59. Class 5 Claims include all Allowed Unsecured Claims that exceed $1,000 and that have not been subordinated by agreement or order of the Bankruptcy Court. Class 5 Claims shall be paid, with interest beginning on the Petition Date at the federal judgment rate in effect on the date of entry of the Confirmation Order, but without attorney's fees or costs. The Allowed amount of the claims shall be paid, in full, in twelve equal monthly payments beginning after the Effective Date, or earlier at the Debtor's discretion if funds are available. The Class 5 Allowed Unsecured Claims are Impaired under the Plan and, accordingly, are entitled to vote for or against the Plan. Class 6 consists of the limited partnership interests in the Debtor. Class 6 Equity Interests retain their interests and are unimpaired and not entitled to vote. Class 8 Claims include all Allowed Unsecured Claims of $1,000 or less and that have not been subordinated by agreement or order of the Bankruptcy Court. Class 8 Claims shall be paid, without any interest, attorney's fees or costs, 100% of the Allowed amount of the claims, in full upon Confirmation of the Plan. The Class 8 Allowed Unsecured Claims are Impaired under the Plan and, accordingly, are entitled to vote for or against the Plan. If this Plan is approved by the Court, an Order Confirming the Plan will be signed and entered into the record of the Court. The Effective Date of the Plan shall be the date that is 15 days after an order confirming the Plan is entered. Upon the Effective Date of the Plan, all property of the Estate, shall vest in the Reorganized Debtor. A full-text copy of the First Amended Disclosure Statement dated February 7, 2025 is available at https://urlcurt.com/u?l=YE8Qlg from PacerMonitor.com at no charge. 2015 Park Street LP is represented by: Nathaniel Peter Holzer, Esq. 1734 Santa Fe Corpus Christi, TX 78404 Telephone: (361) 563-6175 Email: pete@npholzerlaw.com About 2015 Park Street LP 2015 Park Street LP owns and operates a park in Corpus Christi, Texas offering a picturesque setting close to Corpus Christi Bay and the scenic Oso Beach Municipal Golf Course. The Park also offers a range of rental options to suit diverse lifestyles. 2015 Park Street LP sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-20183) on July 1, 2024. In the petition filed by Clyde Nazareth, as president of General Partner, the Debtor estimated assets between $10 million and $50 million and liabilities between $1 million and $10 million. The Debtor is represented by Nathaniel Peter Holzer, Esq. 21ST CENTURY CHARTER SCHOOL: S&P Affirms 'B+' Revenue Bond Rating ----------------------------------------------------------------- S&P Global Ratings affirmed its 'B+' long-term rating on the Indiana Finance Authority's series 2013 educational facilities revenue bonds, issued for 21st Century Charter School (21st Century), and removed the rating from CreditWatch, where it was placed with positive implications on Nov. 19, 2024. The outlook is stable. "The CreditWatch resolution reflects our view of the credit characteristics of 21st Century, which remain consistent at this time," said S&P Global Ratings credit analyst Mel Brown. S&P said, "We placed the rating on CreditWatch with positive implications in November 2024 after the finalization of an amendment to 21st Century's series 2013 bond covenants, which included an added payment guarantee from GEO Foundation, the school's charter management organization (CMO). While we believe there could be additional liquidity support for the debt service on the series 2013 bonds given the existence of the guarantee, we lack sufficient information to capture the impact of the CMO's support in our analysis. Therefore, we continue to base the rating solely on our view of the underlying credit characteristics of the charter school. "The stable outlook reflects our opinion that the charter school will generate positive operating margins, sustain maximum annual debt service (MADS) coverage, and gradually improve days' cash on hand. We also expect management to work toward stabilizing enrollment following its last planned reductions in fall 2024 and to remain in compliance with financial covenants. "We could lower the rating if 21st Century posts deficit operations that weaken liquidity and coverage to levels we no longer consider commensurate with the current rating. Failure to stabilize enrollment declines, or material additional debt, while not anticipated, could also lead to a negative rating action. "A higher rating would be contingent on 21st Century demonstrating a trend of stronger liquidity in line with that of higher-rated peers and maintaining its financial covenants. In addition, we would expect 21st Century to maintain fiscal balance, such that MADS coverage is consistent with a higher rating." 23ANDME HOLDING: Zentree Investments Holds 8.4% of Class A Shares ----------------------------------------------------------------- Zentree Investments Limited disclosed in a Schedule 13G/A filed with the U.S. Securities and Exchange Commission that as of December 31, 2024, it and its director, Richard Magides, beneficially owned 1,658,348 shares of 23andMe Holding Co.'s Class A Common Stock, representing 8.4% of the 19,640,404 shares of Class A Common Stock outstanding as of December 31, 2024, as reported in the Company's Form 8-K filed on January 28, 2025. Zentree Investments Limited may be reached at: Richard Magides c/o Zentree Investment Management Pte Ltd 18 Robinson Road Level 15-01 Singapore 048547 A full-text copy of Zentree Investments' SEC Report is available at: https://tinyurl.com/4p8mwypf About 23andMe Headquartered in South San Francisco, California, 23andMe -- www.23andMe.com -- is a genetics-led consumer healthcare and biopharmaceutical company empowering a healthier future. The Company is dedicated to empowering customers to optimize their health by providing direct access to their genetic information, personalized reports, actionable insights and digital access to affordable healthcare professionals through its telehealth platform, Lemonaid Health. Going Concern 23AndMe stated, "The Company has incurred significant operating losses as reflected in its accumulated deficit and negative cash flows from operations. As of September 30, 2024, the Company had an accumulated deficit of $2.3 billion, and cash and cash equivalents of $126.6 million. The Company will need additional liquidity to fund its necessary expenditures and financial commitments for 12 months after the date that the unaudited interim condensed consolidated financial statements included in this report are issued. The Company has determined that, as of the filing date of this report, there is substantial doubt about the Company's ability to continue as a going concern." 6 SUNSET LANE: Seeks Approval to Hire Kelly Firm as Legal Counsel ----------------------------------------------------------------- 6 Sunset Lane, LLC seeks approval from the U.S. Bankruptcy Court for the District of New Jersey to hire The Kelly Firm, P.C. as attorneys. The firm will render these services: a. counsel and advise the Debtor with respect to its rights and obligations as Debtor and Debtor-in-possession; b. appear in the bankruptcy court; c. assist in formulation, negotiating and securing confirmation of a plan of reorganization or liquidation; d. make determinations of the validity and extent of any liens which may be asserted against the assets of the estate; and e. render any other professional services. The firm will be paid based upon its normal and usual hourly rates and will be reimbursed for out-of-pocket expenses incurred. The firm received a retainer in the amount of $5,000. Andrew Kelly, Esq., a partner at The Kelly Firm, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Andrew J. Kelly, Esq. The Kelly Firm, P.C. 1011 Highway 71, Suite 200 Spring Lake, NJ 07762 Tel: (732) 449-0525 Email: akelly@kbtlaw.com About 6 Sunset Lane LLC 6 Sunset Lane LLC is the fee simple owner of the real property located at 6 Sunset Lane, Monmouth Beach, NJ 07705, which is currently valued at $1.7 million. 6 Sunset Lane LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-11005) on January 31, 2025. In its petition, the Debtor reports estimated total assets of $1,700,000 and estimated liabilities of $1,427,073. The Debtor is represented by Andrew J. Kelly, Esq. at THE KELLY FIRM, P.C. ACCELERATE DIAGNOSTICS: Indaba Capital Holds 9.9% Equity Stake -------------------------------------------------------------- Indaba Capital Management, L.P., disclosed in a Schedule 13D/A filed with the U.S. Securities and Exchange Commission that as of February 4, 2025, it may be deemed to beneficially own 2,751,762 shares of Accelerate Diagnostics, Inc.'s Common Stock issuable upon conversion of the New Convertible Notes, which shares of Common Stock may be deemed to be beneficially owned by each of Indaba Capital Management as Investment Manager, IC GP, LLC and Mr. Derek C. Schrier. Without giving effect to the Beneficial Ownership Limitation, the Reporting Persons would be entitled to receive an additional 2,394,385 shares of Common Stock issuable upon the conversion of the New Convertible Notes as of February 4. The number of shares of Common Stock issuable upon conversion of the New Convertible Notes reflect the Company's 1-for-10 reverse stock split, which was effective July 11, 2023 and increases in the principal amount of New Convertible Notes outstanding as a result of the payment of interest in kind in accordance with the terms of the indenture for the New Convertible Notes. The securities of the Company beneficially owned by the Reporting Persons are directly held by Indaba Capital Fund, L.P., a private investment fund for which the Investment Manager serves as investment manager. Pursuant to an Investment Management Agreement, the Fund and its general partner have delegated all voting and investment power over the securities of the Company directly held by the Fund to the Investment Manager. As a result, each of the Investment Manager, IC GP, as the general partner of Investment Manager, and Mr. Schrier, as Managing Member of IC GP, may be deemed to exercise voting and investment power over the securities of the Company directly held by the Fund. The Fund specifically disclaims beneficial ownership of the securities of the Company directly held by it by virtue of its inability to vote or dispose of such securities as a result of such delegation to the Investment Manager. The ownership represents 9.9% of 25,043,822 shares of the Company's common stock outstanding as of November 5, 2024, as reported on the Company's Form 10-Q filed with the Securities and Exchange Commission on November 7. On February 4, 2025, the Fund purchased approximately $12.4 million in aggregate principal amount of the Company's New Convertible Notes from the holder of such notes. As a result of the acquisition of additional principal amount of New Convertible Notes, the Fund now owns a majority of the outstanding New Convertible Notes. Because the Fund beneficially owns a majority of the outstanding principal amount of New Convertible Notes, the Fund will have the ability to control any decision under the Indenture or the Security Agreement with respect to the New Convertible Notes that requires approval of the holders of a majority of the outstanding principal amount of the New Convertible Notes. Decisions requiring approval of the holders a majority of the outstanding principal amount of New Convertible Notes under the Indenture and the other Note Documents (as defined in the Indenture) include, without limitation: (i) waivers of certain defaults or events of default under the Indenture and their consequences; (ii) consent to certain supplemental indentures or amendments or supplements to the Notes Documents for the purpose of modifying the terms of the Indenture and the New Convertible Notes; (iii) the direction of the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee with respect to the New Convertible Notes; (iv) removal of the Trustee and nomination a successor trustee; or (v) removal of the Collateral Agent and appointment of a successor Collateral Agent with the Company's written consent. A full-text copy of Indaba Capital's SEC Report is available at: https://tinyurl.com/mta8x4xk About Accelerate Diagnostics Tucson, Ariz.-based Accelerate Diagnostics, Inc. is an in vitro diagnostics company dedicated to providing solutions that improve patient outcomes and lower healthcare costs through the rapid diagnosis of serious infections. Phoenix, Ariz.-based Ernst & Young LLP, the Company's auditor since 2013, issued a "going concern" qualification in its report dated March 28, 2024, citing that the Company has suffered recurring losses and negative cash flows from operations, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. During the year ended December 31, 2023, Accelerate Diagnostics had a net loss of $61.6 million. As of September 30, 2024, Accelerate Diagnostics had $32.3 million in total assets, $80.8 million in total liabilities, and $48.5 million total stockholders' deficit. AEGIS TOXICOLOGY: $300MM Bank Debt Trades at 42% Discount --------------------------------------------------------- Participations in a syndicated loan under which Aegis Toxicology Sciences Corp 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 $300 million Term loan facility is scheduled to mature on May 9, 2025. About $280.5 million of the loan has been drawn and outstanding. Aegis Toxicology Sciences Corporation, headquartered in Nashville, TN, is a specialty toxicology laboratory providing services to the healthcare, sports, workplace and biopharma industries. Aegis Toxicology Sciences Corporation is privately-owned by affiliates of financial sponsor ABRY Partners II, LLC (ABRY). Aegis Toxicology Sciences Corporation generated revenue of approximately $360 million in the last twelve months to March 31, 2023. AGILITI HEALTH: Moody's Alters Outlook on 'B2' CFR to Negative -------------------------------------------------------------- Moody's Ratings revised Agiliti Health, Inc.'s outlook to negative from stable. At the same time, Moody's affirmed Agiliti's B2 Corporate Family Rating, B2-PD Probability of Default Rating, and B2 instrument ratings on the senior secured and backed senior secured bank credit facilities. The revision of the outlook to negative reflects weakening cushion within the rating category due to a combination of ongoing inflationary pressures, price erosion, and higher equipment maintenance costs associated with a government contract. These factors are constraining the company's operating and cash flow metrics, thereby weakening its ability to deleverage or to manage any unforeseen operational challenges in the near term. As a result, Moody's expect gross debt/EBITDA to remain above 6.0x throughout 2025. Moody's affirmation of the B2 CFR reflects steps the company is taking to improve operating performance including contract renegotiations and new product introductions. Additionally, Agiliti has no near-term debt maturities and good liquidity, which supports its financial stability. RATINGS RATIONALE Agiliti's B2 CFR rating reflects its high financial leverage, which recently increased due to inflationary pressures and higher costs relative to additional maintenance costs and ongoing price erosion. Free cash flow is constrained by high interest expense following Agiliti's 2024 LBO, and high capital expenditures. Moody's expect capital expenditures to decline as the company's business mix steadily pivots toward less capital-intensive activities such as clinical engineering and on-site managed services business. Tempering these risks, Agiliti benefits from its national presence, with around 90% of acute care locations in the company's service territory. Agiliti's offerings span several key service areas. Its clinical engineering and on-site managed services businesses are lower margin businesses but tend to be more stable than the short-term equipment solutions business, as demand for short-term rentals can be volatile. That being said, the COVID-19 pandemic resulted in increased demand for the company's services over the longer term as healthcare providers and government agencies increasingly focus on managing medical equipment needs. Moody's consider Agiliti to have good liquidity, which is supported by Agiliti's $11 million of cash on the balance sheet as of September 30, 2024 and full availability on its $300 million senior secured first lien revolving credit facility due in 2028. Agiliti also has access to a $150 million A/R Securitization facility due in 2027. Further, Moody's anticipate that the company will generate positive cash flow generation of roughly $15 million in 2025. Agiliti Health, Inc.'s CIS-4 indicates the rating is lower than it would have been if ESG risk exposures did not exist. Agiliti has exposure to governance risks due namely to the company's board composition that is dominated by a financial sponsor. Following the LBO, Moody's believe the company will be more likely to adopt aggressive financial policies as noted by the additional debt incurred to finance the transaction. Agiliti also has exposure to social risks and is impacted by demographic and societal trends. While Agiliti has no direct reimbursement risks from public payors, its customers, which include acute care hospitals, have significant levels of exposures to government payors. As a result, any pressures on its customers to lower costs could impact the demand and pricing for Agiliti's services. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be upgraded if Agiliti maintains solid organic revenue growth and balanced capital allocation priorities. Quantitatively ratings could be upgraded if debt/EBITDA is sustained below 5.0 times and free cash flow to debt is sustained above 10%, while maintaining a good or very good liquidity profile. Ratings could be downgraded if Agiliti's operating performance were pressured, or the company's financial policies became more aggressive. Quantitatively ratings could be downgraded if debt/EBITDA is sustained above 6.0 times or liquidity were to erode. Headquartered in Minneapolis, MN, Agiliti Health, Inc. serves more than 10,000 national, regional and local acute care and alternative site healthcare providers across the US The company provides services across 3 primary service lines: Onsite Managed Services, Clinical Engineering Services, and Equipment Solutions. Revenues were approximately $1.2 billion as of September 30, 2024. Agiliti is owned by affiliates of Thomas H. Lee Partners, L.P. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. ALGORHYTHM HOLDINGS: Issues 476-Mil. Common Shares Under Dec. 4 SPA ------------------------------------------------------------------- Algorhythm Holdings, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that as of February 6, 2025, it has 476,359,875 shares of common stock issued and outstanding, which includes shares of common stock that have been issued upon exercise of those certain Series B Warrants issued by the Company pursuant to that certain securities purchase agreement dated December 4, 2025. About Algorhythm Holdings Algorhythm Holdings, Inc., fka The Singing Machine Company, Inc. -- http://www.singingmachine.com/-- is a holding company for an AI enabled software logistics business operated through its SemiCab Holding subsidiary and a home karaoke consumer products company that designs and distributes karaoke products globally to retailers and ecommerce partners through the Singing Machine subsidiary. Headquartered in Fort Lauderdale, Fla., the Company had $12,367,000 in total assets, $13,239,000 in total liabilities, and $872,000 in total stockholders' deficit as of June 30, 2024. The Company had cash on hand of approximately $1,245,000 as of June 30, 2024, which is not sufficient to fund the Company's planned operations through one year after the date the consolidated financial statements are issued. The Company has a recent history of recurring operating losses and decreases in working capital. The Company said these factors create substantial doubt about the Company's ability to continue as a going concern for at least one year after the date that the Company's audited consolidated financial statements are issued. ALPINE 4: To Shut Down Operations, K. Wilson to Step Down as CEO ---------------------------------------------------------------- Kent Wilson, chief executive officer of Alpine 4 Holdings, announced in a letter the shutdown of operations of the Company, effective February 11, 2025, and, in line with the shutdown, his resignation as CEO, according to a Form 8-K filing with the U.S. Securities and Exchange Commission. The letter states: Dear Shareholders, Employees and Stakeholders, I want to take a moment to speak to you from the heart. The journey we have undertaken together over the past 10 years has been marked by both positive moments and challenges. However, the setbacks we faced over the past two years have been nothing short of disastrous. As a company, we have faced an ongoing struggle to become compliant with the regulatory requirements that govern us as a publicly traded entity. These hurdles have taken a toll on our ability to execute on our goals and initiatives. Further, I feel it is important to share the scope of what has transpired and simply explain how we have arrived where we are today. I will also do my best to answer some questions that have been asked by shareholders. In mid-2022, we made the decision to move auditors from Malone & Bailey to RSM USA, which, on paper, seemed like a great move for us as RSM is one of the top ten auditing firms in the U.S. This move was expected to bring much-needed expertise as we navigated the challenges posed by our rapid growth and acquisitions. With a long client acceptance process by RSM USA to understand the complexities of our business, we anticipated a smooth transition. However, by November of 2022, we found ourselves caught up in a costly restatement of our financial statements. For over two years, we have been caught in an endless audit loop. Audit compliance, which should have been a foundational strength for the company, became an obstacle that led us to chase our tail without the ability to move forward. This lack of compliance has had a direct impact on our ability to raise capital in the traditional capital markets. Without the necessary capital, we were severely limited in funding key projects, this included but wasn't limited to; * The Elecjet battery factory in California * Facilitating new UAV's at Vayu Aerospace such as US-2 * The new building for QCA * The gummy line at Alt Labs * Our Dubai venture with Global Autonomous Corporation (GAC) * The launch of new products at RCA, including Power Totes and the RCA battery line * The development of other Elecjet products In addition to this, the complications of being late on our filings had severe impacts on our banking relationships. Chase Bank, Pinnacle Bank, First Horizon, and other financial institutions that supported operations with our subsidiaries began implementing covenant restrictions, which led to reduced capital availability and increased fees. As a result, we had to rely on alternative high-cost capital. This cash restriction created a domino effect, straining vendor relationships and causing additional operational challenges, but all of this would have been solvable if we were able to return to a current filing status and access the $33M Equity Line of Credit filed in our S1 registration statement. It's important to note that the Company has done everything possible to repair the issues we faced. We hired several new accounting staff and engaged auditing experts such as BDO, Rivers & Moorehead, and other specialists in an effort to regain our footing. Despite these extensive efforts, we are still more than a year behind in our audit process, as we will now need to restate our 2022 financial statements, and our 2024 financial statements are now due. Both of these will require over a million dollars in new audit fees and the retention of specialists to complete. It's an arduous and costly path that continues to strain our resources, affecting not only our businesses but also our employees. When it comes to managing dilution, we have always prioritized the best interests of our shareholders in our decision-making around capital raises and acquisitions. For instance, in June 2021, we had the option to raise an additional $50 million. After careful consideration, we chose not to move forward with this opportunity, as we felt it was not necessary at that time and were concerned about the potential for unnecessary dilution of shareholder value. This cautious and shareholder-centric approach continued into 2022. Throughout this period, we made a conscious effort to limit the use of our At-The-Market (ATM) facility, using it sparingly when it was active. Moreover, the $10 million capital raise we executed in mid-2022 was a modest and strategic move, especially when compared to previous, larger capital raises, reflecting our commitment to maintaining a balanced and responsible approach to capital management. Our commitment to the Company has been resolute and steadfast. The Alpine 4 team and I have been fully invested in Alpine 4 financially, emotionally, and professionally for over 10 years. In 2023, the Board of Directors, along with management, friends, and family, lent the company over $1.5 million to ensure we could cover the costs of the transition to RSM USA for our 2022 financial statements. This amount does not include the hundreds of thousands of dollars that myself, Mr. Hail, our COO, and Mr. Kantrowitz, our VP of IR charged to our personal credit cards to keep the company afloat, while simultaneously taking self-imposed pay cuts. These loans were made in good faith, with a shared belief that we could overcome our challenges of becoming compliant, allowing us to once again raise capital and achieve our long-term objectives. While we understand that many shareholders would have liked to have seen this $1.5 million used to purchase stock in the open market, with the company having no ability to raise capital, this would not have served as any benefit to the business, therefore, these funds went directly to business operations. Further, it's important to note that Management has never sold any of its shares and has only donated stock as an act of charity to medical, educational, and religious organizations. Personally, in addition to several churches and non-profits that support children, I have also donated shares to a 501(c)(3) nonprofit, started by myself and my wife. Our organization supports missionaries working with refugees worldwide, homeless youth battling fentanyl addiction, and other healthcare initiatives such as the Diabetic Practice at Phoenix Children's Hospital. My wife and I do not draw salaries or benefit personally from the foundation; it is entirely supported by us and the generous donations of others. For over a decade, we have poured our passion, commitment, and dreams into building Alpine 4, and reaching this point is profoundly painful for myself, our management team, and the Board of Directors, as I know it is for you, our shareholders. As I discussed in my CEO letter in December of 2023, we have been heavily focused on the reorganization of Alpine 4 and its subsidiaries in an attempt to reverse our course. In late 2023, we made the difficult decision to shut down some of our non-performing entities like Excel Construction Services. These efforts also included selling several of these subsidiaries to new owners with greater financial resources, who are currently better positioned to take on the challenges these businesses presented. This move has allowed us to reduce the debt burden that Alpine 4 carried, while also providing an opportunity for many employees to retain their jobs. Among the most significant steps has been our reorganization efforts with Quality Circuit Assembly (QCA). We have engaged with our banking partners at QCA, and together, we are exploring financing arrangements that will allow for an in-court reorganization of that subsidiary or possibly a sale to one of our largest customers. This move, if successful, has the potential to save up to 75 jobs, which is something we are working tirelessly to make a reality. Similarly, we have sold off Alternative Laboratories to an international firm, which has helped reduce Alpine 4's overall debt load and saved approximately 45 additional jobs. With that in mind, my primary focus has been and will continue to be for the next few weeks, to work diligently to find viable solutions for our remaining subsidiaries. We will also continue to evaluate potential pathways to mitigate the impact on our employees and creditors, and where possible, we will work to preserve jobs and keep assets intact. I now come to the most difficult part of this letter. After over a decade of tireless effort and unwavering dedication, we find ourselves facing the difficult but necessary step of shutting down Alpine 4 and ceasing operations post the selling, shutting down or reorganization of the remaining subsidiaries. As discussed earlier in this letter, this decision comes after a series of significant challenges, including prolonged issues with our auditors. Despite our best efforts, it became evident in November 2024 that restating our 2022 financials was necessary, which added further strain to an already challenging situation. After extensive deliberation and consultation with our legal counsel, we have come to the conclusion that this path is the only viable option. As part of the necessary steps for the shutdown of operations, effective today, I am resigning from my position as CEO of Alpine 4. However, it is my intent to stay on the Board of Directors until the shutdown process is complete. This decision has been incredibly difficult to make, but it is the most prudent course of action as we navigate this challenging transition. While I will be stepping down from my role, I remain fully committed to ensuring that the closure of the company is handled with the utmost care and diligence. I will continue to work closely with our legal counsel and advisors to oversee the shutdown and liquidation process, with the goal of making it as smooth and orderly as possible. In closing, I want to express my heartfelt gratitude for the support you have shown Alpine 4 over the past 11 years. Your messages and encouragement have meant more than words can convey. It is deeply saddening to see the company reach this state, especially knowing the immense opportunities it had before it, and the loss felt by our shareholders and stakeholders who believed in our vision weighs heavily on me. Though this journey is ending, I hold onto the hope that the lessons we've learned and the foundations we've built will pave the way for new opportunities in the future. Sincerely, Kent Wilson, CEO Alpine 4 Holdings A full-text copy of the Form 8-K is available at https://urlcurt.com/u?l=SztSIe About Alpine 4 Alpine 4 Holdings, Inc. (formerly Alpine 4 Technologies, Ltd) is a publicly traded conglomerate that is acquiring businesses that fit into its disruptive DSF business model of Drivers, Stabilizers, and Facilitators. The Company's focus is on how the adaptation of new technologies, even in brick-and-mortar businesses, can drive innovation. The Company also believes that its holdings should benefit synergistically from each other and that the ability to have collaboration across varying industries can spawn new ideas and create fertile ground for competitive advantages. "[T]he Company has negative working capital and has continued to experience operating losses, which causes doubt as to the ability of the Company to continue. The Company's ability to raise additional capital through the future issuances of common stock is unknown. The obtainment of additional financing, the successful development of the Company's plan of operations, and its ultimate transition to profitable operations are necessary for the Company to continue. The uncertainty that exists with these factors raises substantial doubt about the Company's ability to continue as a going concern," according to the Company's Quarterly Report for the three months ended Sept. 30, 2023. The Company have yet to file its Annual Report on Form 10-K for the year ended Dec. 31, 2023, and Quarterly Report for the quarter ended March 31, 2024. AMERICAN TIRE: Plan Exclusivity Period Extended to May 20 --------------------------------------------------------- Judge Craig T. Goldblatt of the U.S. Bankruptcy Court for the District of Delaware extended American Tire Distributors, Inc. and affiliates' exclusive periods to file a plan of reorganization and obtain acceptance thereof to May 30 and July 21, 2025, respectively. As shared by Troubled Company Reporter, the Debtors will provide transition services to the purchaser under the Stalking Horse Asset Purchase Agreement to effectuate a smooth transition for all stakeholders and to maximize the value of these estates. This will be an involved process, requiring the Debtors, their personnel, and their professionals to negotiate with numerous stakeholders as well as the purchaser to ensure uninterrupted service. Accordingly, the size and complexity of these chapter 11 cases weigh in favor of extending the Exclusivity Periods. The Debtors explain that they have had extensive negotiations and shared information related to the marketing and sale process as well as the Debtors proposed Plan, which they expect to file in the near term since the Committee's formation. In the weeks ahead, the Debtors will seek conditional approval of the Disclosure Statement and will continue to engage with their stakeholders to further develop and negotiate the Plan. The Debtors' substantial progress administering these chapter 11 cases weighs in favor of an extension of the Exclusivity Periods. The Debtors assert that they have already taken significant steps toward exiting these chapter 11 cases by negotiating with their key stakeholders regarding the terms of a potential Plan to effectuate an orderly wind down process to allocate proceeds following the closing of the Sale Transaction, which is ultimately the best path forward for the Debtors' estates. Accordingly, an extension of the Exclusivity Periods will allow the Debtors adequate time to complete the negotiations on the Plan, file the Plan, solicit votes thereon, and move forward with obtaining Court approval. Co-Counsel for the Debtors: Anup Sathy, P.C. Chad J. Husnick, P.C. David R. Gremling, Esq. KIRKLAND & ELLIS LLP AND KIRKLAND & ELLIS INTERNATIONAL LLP 333 West Wolf Point Plaza Chicago, Illinois 60654 Tel: (312) 862-2000 Fax: (312) 862-2200 Email: anup.sathy@kirkland.com chad.husnick@kirkland.com dave.gremling@kirkland.com Co-Counsel for the Debtors: Laura Davis Jones, Esq. Timothy P. Cairns, Esq. Edward A. Corma, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 North Market Street, 17th Floor Wilmington, Delaware 19801 Tel: (302) 652-4100 Fax: (302) 652-4400 Email: ljones@pszjlaw.com tcairns@pszjlaw.com ecorma@pszjlaw.com About American Tire Distributors Headquartered in Huntersville, N.C., American Tire Distributors Inc. and its affiliates are the largest distributor of replacement tires in North America based on dollar amount of wholesale sales. With their network of over 115 distribution centers and 1,500 delivery vehicles, the Debtors service a geographic region covering more than 90 percent of the replacement tire market for passenger vehicles and light trucks in the United States. The Debtors carry many of the nation's leading tire brands including Michelin, Pirelli, and Continental. In addition, the Debtors' proprietary Hercules brand is a leading private tire brand in North America. American Tire Distributors and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12391) on October 22, 2024. In its petition, American Tire Distributors reported $1 billion to $10 billion in both assets and liabilities. Judge Craig T. Goldblatt oversees the cases. The Debtors tapped Kirkland & Ellis as bankruptcy counsel; Pachulski Stang Ziehl & Jones, LLP as Delaware counsel; AP Services, LLC as restructuring advisor; and Moelis & Company, LLC as financial advisor. Donlin, Recano & Company, Inc. is the notice and claims agent and administrative advisor. AMERIGAS PARTNERS: Moody's Alters Outlook on 'B1' CFR to Negative ----------------------------------------------------------------- Moody's Ratings changed AmeriGas Partners, L.P.'s outlook to negative from stable, and affirmed the B1 Corporate Family Rating, B1-PD Probability of Default Rating and B2 senior unsecured notes' ratings. AmeriGas' Speculative Grade Liquidity (SGL) rating remains unchanged at SGL-3. AmeriGas obtained a $221 million 9.13% unsecured subordinated intercompany loan due January 2027 from UGI International, LLC (UGI International, Ba2 stable) to redeem its outstanding $218 million senior unsecured notes due May 2025. Both AmeriGas and UGI International are subsidiaries of UGI Corporation (unrated). The redemption of these notes is scheduled to be completed on March 7. "The revision of AmeriGas' outlook to negative reflects the risks associated with AmeriGas' high leverage, operating challenges and customer churn as the company works to improve performance and reduce debt," commented Jonathan Teitel, a Moody's Vice President - Senior Analyst. "The intercompany loan from UGI International offers temporary relief by addressing the notes maturing in 2025 and easing near-term liquidity pressures." RATINGS RATIONALE AmeriGas' negative outlook reflects the company's high leverage and constrained financial flexibility amid ongoing operational challenges. The company is focused on improving performance and further reducing debt, but more has yet to be done to deliver on these goals. The B1 CFR for AmeriGas reflects the benefits of its large scale in a fragmented market, a national footprint across the US, and broad customer diversification. In the near term, AmeriGas' financial position is bolstered by a $221 million intercompany loan from UGI International, which will fund the repayment of all outstanding senior notes due in May 2025. This intercompany loan has a two-year maturity, and AmeriGas plans to use free cash flow to repay it. The company's ability to generate free cash flow and maintain lower debt levels will depend on its success in improving customer retention and operating efficiency, and effective cost and working capital management, amid the inherent uncertainty of weather conditions. Asset sales could also support debt repayment. Reducing debt and enhancing financial flexibility are crucial for strengthening the balance sheet and increasing resilience during periods of warmer weather and lower EBITDA. AmeriGas has approximately $1.9 billion of debt maturing through 2028 (once the notes due 2025 are redeemed in March), with annual maturities starting in 2026. Retail volumes and EBITDA have declined over recent years, partly due to operational challenges and customer churn. As a propane distributor, AmeriGas is exposed to seasonal demand fluctuations tied to winter weather but benefits from a leading market share in propane distribution in the US and a diverse customer base. The SGL-3 rating reflects expectations that AmeriGas will maintain adequate liquidity through mid-2026, supported by the intercompany loan, which addresses debt maturing in 2025 and enables compliance with the ABL revolver's liquidity covenant. A covenant requiring liquidity equal to or greater than the outstanding principal amount of any senior notes maturing within 91 days plus 20% of the maximum revolving advance amount will apply by mid-February. The ABL revolver, due in 2029, has a $300 million commitment from lenders and is governed by a borrowing base. As of December 31, 2024, AmeriGas had $69 million in borrowings outstanding on its revolver, with a borrowing base of $170 million. As of December 31, 2024, AmeriGas had $11 million of cash on its balance sheet. The company's revolver includes a springing minimum fixed charge coverage ratio of 1.0x based on undrawn availability. This covenant is triggered when undrawn availability falls below the greater of (1) 10% of the lesser of lender commitments and the borrowing base and (2) 7.5% of the lender commitments. AmeriGas plans to address its senior notes maturing August 2026 this year. AmeriGas' senior unsecured notes are rated B2, one notch below the CFR. These unsecured notes, which are not guaranteed by AmeriGas Propane, L.P. (AmeriGas' principal operating subsidiary), are subordinated to AmeriGas Propane, L.P.'s senior secured ABL revolver. Additionally, AmeriGas' unsecured intercompany loan is subordinated to the senior notes. Neither UGI Corporation guarantees AmeriGas' debt, nor does AmeriGas guarantee UGI Corporation's debt. However, UGI Corporation's debt agreements contain cross-default provisions that are triggered if AmeriGas misses principal or interest payments on more than $125 million in principal amount of debt. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Factors that could lead to a downgrade include weakened liquidity, debt/EBITDA that does not decline below 5.5x on a sustained basis, or EBITDA/interest below 2.0x. Factors that could lead to an upgrade include sustaining debt/EBITDA below 4.5x, improved financial flexibility, and EBITDA/interest above 2.75x. AmeriGas is a marketer and distributor of propane in the US. It is a wholly owned subsidiary of UGI Corporation, a publicly traded holding company. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. AMERINVEST LLC: Unsecureds Will Get 100% of Claims in Plan ---------------------------------------------------------- Amerinvest, LLC, filed with the U.S. Bankruptcy Court for the Eastern District of Virginia a Plan of Reorganization for Small Business dated February 3, 2025. The Debtor is a limited liability company established in 1999. It owns three contiguous properties located at 406 E Glebe Road, 408 E Glebe Road, and 3006 Richmond Highway in Alexandria, Virginia. The parcel located at 408 E. Glebe Rd. has three rental spaces, which are referred to hereafter as 408A, 408B, and 410 respectively. The parcel located at 406 E. Glebe Rd. is a fenced lot which is currently rented to a car dealer at a rent of $4,000 per month. The parcel located at 3006 Richmond Highway is an unfenced lot, which is not currently rented. In addition, 408A is currently rented to a tobacco retailer at a monthly rent of $6,693. 408B is currently rented to a battery retailer at a monthly rate of $6,250. The space at 410 is built out to accommodate a restaurant tenant. It is currently vacant, but Debtor has been actively searching for a new tenant. Debtor anticipates that it should lease for no less than $10,000 per month. The Plan Proponent's financial projections show that the Debtor will have projected disposable income of $16,943 per month, with expected increases of 4% annually. Once the restaurant space (known as 410 E Glebe) is rented, the projected disposable income will increase by at least $10,000 per month. This Plan of Reorganization (proposes to pay creditors of the Debtors from the future income of the Debtors, supplemented as necessary by cash on hand. Non-priority unsecured creditors holding allowed claims will receive a 100% distribution. The Plan also provides for the payment of administrative and priority claims. Class 2 consists of General Unsecured Claims. Allowed claims of general unsecured creditors will be paid in full from funds remaining after the payment in full of all priority tax claims, secured claims, and administrative expenses. This Class is unimpaired. The plan will be funded from the monthly disposable income of the Debtor, supplemented as necessary from cash on hand in the Debtor's bank account. To pay the mortgage arrearage claim, Debtors will make thirty-six monthly payments of $4,516.66 to APSEC, beginning on the fifteenth day of the month following the Effective Date, for a total of $162,599.81. The first plan payment is anticipated to be made on May 1, 2025. The final plan payment is expected to be paid on April 1, 2028. A full-text copy of the Plan of Reorganization dated February 3, 2025 is available at https://urlcurt.com/u?l=Yuual1 from PacerMonitor.com at no charge. About Amerinvest LLC Amerinvest, LLC is a company in McLean, Va., engaged in renting and leasing real estate properties. Amerinvest filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No. 24-12069) on Nov. 5, 2024, listing $1 million to $10 million in both assets and liabilities. The petition was signed by Daria Karimian as managing member. Judge Klinette H. Kindred oversees the case. The Debtor is represented by: David C. Jones, Jr. David C. Jones, Jr., P.C. Tel: 703-273-7350 Email: davidcjonesjr@gmail.com ANGIE'S TRANSPORTATION: Gets OK to Use Regions' Cash Collateral --------------------------------------------------------------- Angie's Transportation, LLC and STL Equipment Leasing Co., LLC received approval from the U.S. Bankruptcy Court for the Eastern District of Missouri, Eastern Division, to use the cash collateral of Regions Equipment Finance Corporation and Regions Commercial Finance Equipment Corporation. Regions Equipment Finance and Regions Commercial Finance are both secured creditors with valid liens on certain assets owned by STL. The company owes the secured creditors more than $1.8 million. As protection for the use of their collateral, the secured creditors will receive monthly payments of $32,500, starting this month. The companies' authority to use the collateral terminates upon dismissal or conversion of their Chapter 11 cases to one under Chapter 7; the companies' violation of the order; or the entry of an order granting the secured creditors relief from the automatic stay. About Angie's Transportation Angie's Transportation, LLC, a trucking company in St. Louis, Mo., and STL Equipment Leasing Co, LLC filed Chapter 11 petitions (Bankr. E.D. Miss. Lead Case No. 24-44594) on December 16, 2024. At the time of the filing, Angie's reported $1 million to $10 million in assets and $500,000 to $1 million in liabilities while STL reported $1 million to $10 million in both assets and liabilities. Judge Brian C. Walsh handles the cases. The Debtors are represented by Andrew Magdy, Esq., at Schmidt Basch, LLC. ANGIE'S TRANSPORTATION: Gets OK to Use Volvo's Cash Collateral -------------------------------------------------------------- Angie's Transportation, LLC and STL Equipment Leasing Co., LLC received second interim approval from the U.S. Bankruptcy Court for the Eastern District of Missouri, Eastern Division, to use the cash collateral of Volvo Financial Services. Volvo is a secured creditor with valid liens on certain assets owned by the companies. Volvo will be granted replacement liens as protection for the use of its collateral, to the same extent and with the same validity and priority as its pre-bankruptcy liens. As additional protection, Volvo will receive payments, including an initial payment of $10,000 and monthly payments of $13,000 due on or before the 15th day of each month until further order of the court or the effective date of a confirmed plan of reorganization. The companies' authority to use the collateral expires on Feb. 23 unless extended by further order of the court or by agreement of the secured creditor. About Angie's Transportation Angie's Transportation, LLC, a trucking company in St. Louis, Mo., and STL Equipment Leasing Co, LLC filed Chapter 11 petitions (Bankr. E.D. Miss. Lead Case No. 24-44594) on December 16, 2024. At the time of the filing, Angie's reported $1 million to $10 million in assets and $500,000 to $1 million in liabilities while STL reported $1 million to $10 million in both assets and liabilities. Judge Brian C. Walsh handles the cases. The Debtors are represented by Andrew Magdy, Esq., at Schmidt Basch, LLC. APPLIED ENERGETICS: Completes $1.2 Million Private Placement ------------------------------------------------------------ Applied Energetics, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on February 6, 2025, the Company completed the placement of 1,600,000 shares of its common stock, par value, $0.001 per share, some of which were underlying pre-funded common stock purchase warrants, in a private sale to individual purchasers at a price of $0.75 per share (or $0.749 per underlying share for pre-funded warrants), for aggregate proceeds in the amount of $1,200,000. The pre-funded warrants are exercisable immediately at a price of $0.001 per share but may not be executed in any amount which would cause the holder thereof to beneficially own 5% or more of the company's common stock. The company has agreed to use its best efforts to include the shares for registration with the Securities and Exchange Commission in the registration statement it files. All of the purchasers are accredited, sophisticated investors, and the issuance of the shares was not in connection with any public offering in accordance with Section 4(a)(2) of the Securities Act of 1933. About Applied Energetics Headquartered in Tucson, Arizona, Applied Energetics, Inc. -- http://www.appliedenergetics.com-- specializes in the development and manufacture of advanced high-performance lasers and optical systems, and integrated guided energy systems, for prospective defense, national security, industrial, biomedical, and scientific customers worldwide. Las Vegas, NV-based RBSM LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated March 26, 2024, citing that the Company has suffered recurring losses from operations and will require additional capital to fund its current operating plan, that raises substantial doubt about the Company's ability to continue as a going concern. AQUA METALS: S. Henderson, E. Gangloff Appointed as Directors ------------------------------------------------------------- Aqua Metals, Inc. disclosed in a Form 8-K filed with the Securities and Exchange Commission that on February 3, 2025, the Board of Directors of the Company, acting upon the recommendation of the Board's Nominating and Corporate Governance Committee, appointed Steve Henderson and Eric Gangloff to the Board. Steve Henderson joins Aqua Metals' Board with over four decades of experience in automotive, specialty chemicals, and manufacturing. Most recently, he served as Executive Vice President at Leggett & Platt, overseeing businesses that accounted for over half of the company's total revenue and EBITDA. Previously, at Dow Chemical, Henderson led the company's automotive division and played a key role in advancing battery material innovations, working directly with industry leaders like Tesla, Ford, and Magna. Eric Gangloff has extensive experience in capital markets, debt financing, and investment management. As the founder of Summit Alternative Investments and Chairman and CEO of AmeriFirst Finance, he has structured and executed complex debt and equity financial transactions across multiple asset classes with counterparties such as Goldman Sachs, Deutsche Bank, First National Bank of Omaha, Bayview Asset Management, Credigy, Fortress Investment Group and many others. His background includes leadership roles in both consumer finance and strategic lending, making him well-equipped to support Aqua Metals' growth and commercialization strategy. Mr. Gangloff participated in the Company's December 2024 private placement of secured promissory notes and warrants. Mr. Gangloff purchased a secured note in the original principal amount of $400,000, which accrues interest at the rate of 20% per annum, subject to a payment of a minimum of 12 months interest in the event of prepayment. The entire principal amount evidenced by the Notes plus all accrued and unpaid interest is due on December 31, 2025. The Company's obligations under the Notes are secured by a first lien on the Company's strategic metal inventory and a second lien on all other assets of the Company. Mr. Gangloff also received a warrant to purchase 200,000 shares of the Company's common stock over a five-year period at an exercise price of $1.92 per share. In February 2023, Aqua Metals entered into a Loan Agreement with Summit Investment Services, LLC, a Nevada limited liability company controlled by Mr. Gangloff, pursuant to which Summit provided the Company with a loan in the amount of $3,000,000. The loan accrues interest at a fixed annual rate of 9.50%. Interest-only payments are due monthly for the first 24 months and the principal and all unpaid interest is due on March 27, 2025. The loan is collateralized by a first priority lien on all assets of the Company, other than the Company’s strategic metal inventory for which Summit holds a second lien. About Aqua Metals Headquartered in Reno, Nevada, Aqua Metals, Inc. (NASDAQ: AQMS) -- www.aquametals.com -- is reinventing metals recycling with its patented AquaRefining technology. Aqua Metals is focused on developing cleaner and safer metals recycling through innovation. The Company is also exploring additional novel applications of AquaRefining across metals recycling industries at its Innovation Center, including recycling emerging battery chemistries and opportunities to develop additional products for sale to customer specifications. New York, New York-based Forvis, LLP, the Company's auditor since 2023, issued a "going concern" qualification in its report dated March 28, 2024, citing that the Company has incurred substantial operating losses and negative cash flows from operations since inception that raise substantial doubt about its ability to continue as a going concern. ASCEND PERFORMANCE: $1.09BB Bank Debt Trades at 29% Discount ------------------------------------------------------------ Participations in a syndicated loan under which Ascend Performance Materials Operations LLC is a borrower were trading in the secondary market around 71.2 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $1.09 billion Term loan facility is scheduled to mature on August 27, 2026. About $1.04 billion of the loan has been drawn and outstanding. Ascend Performance Materials Operations LLC is an integrated propylene based producer of Nylon 6,6. SK Titan Holdings LLC bought the company from Solutia in 2009 and a small remaining equity interest in 2011. Headquartered in Houston, Texas, Ascend generated about $3.2 billion of revenues in 2021. ATARA BIOTHERAPEUTICS: Panacea, 3 Others Report 9.5% Stake ---------------------------------------------------------- Panacea Innovation Ltd disclosed in a Schedule 13G filed with the U.S. Securities and Exchange Commission that as of February 6, 2025, it and its affiliated entities -- Panacea Venture Healthcare Fund II, L.P., Panacea Venture Healthcare Fund II GP Company, Ltd., and sole owner James Huang -- beneficially own 550,000 shares of Atara Biotherapeutics, Inc. common stock, representing 9.5% of the 5,759,750 shares of Common Stock outstanding as of November 6, 2024, as reported in the Company's Quarterly Report on Form 10-Q. Panacea Innovation may be reached at: Panacea Innovation Ltd c/o Maples Corporate Services Limited BOX 309 Ugland House Grand Cayman E9 KY1-1104 86 21 60252100 A full-text copy of Panacea Innovation's SEC Report is available at: https://tinyurl.com/5a3vvwsx About Atara Biotherapeutics Atara Biotherapeutics -- atarabio.com -- is a biotechnology company focused on developing off-the-shelf cell therapies that harness the power of the immune system to treat difficult-to-treat cancers and autoimmune conditions. With cutting-edge science and differentiated approach, Atara is the first company in the world to receive regulatory approval of an allogeneic T-cell immunotherapy. The Company's advanced and versatile T-cell platform does not require T-cell receptor or HLA gene editing and forms the basis of a diverse portfolio of investigational therapies that target EBV, the root cause of certain diseases, in addition to next-generation AlloCAR-Ts designed for best-in-class opportunities across a broad range of hematological malignancies and B-cell driven autoimmune diseases. Atara is headquartered in Southern California. Headquartered in San Francisco, California, Deloitte & Touche LLP, the Company's auditor since 2013, issued a "going goncern" qualification in its report dated March 28, 2024. The report highlights that the Company's recurring losses from operations raises substantial doubt about its ability to continue as a going concern. Atara posted a net loss of $276.13 million for the year ended Dec. 31, 2023, following a net loss of $228.30 million for the year ended Dec. 31, 2022. As of Sept. 30, 2024, the Company had $142.71 million in total assets, $233.25 million in total liabilities, and a total stockholders' deficit of $90.54 million. The Company has incurred operating losses since inception and it expects that existing cash, cash equivalents and short-term investments as of Sept. 30, 2024, will not be sufficient to fund its planned operations for at least 12 months from Nov. 12, 2024, the date of issuance of its condensed consolidated financial statements contained in its Quarterly Report for the period ended Sept. 30, 2024. ATLAS PURCHASER: $423.7MM Bank Debt Trades at 61% Discount ---------------------------------------------------------- Participations in a syndicated loan under which Atlas Purchaser Inc is a borrower were trading in the secondary market around 38.8 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $423.7 million Payment in kind Term loan facility is scheduled to mature on May 5, 2028. The amount is fully drawn and outstanding. Atlas Purchaser, Inc., which does business as Alvaria, Inc., acquired the assets of Aspect Software in a leveraged buyout in 2021. Aspect is a provider of call center software and solution. ATLAS PURCHASER: $45.6MM Bank Debt Trades at 99% Discount --------------------------------------------------------- Participations in a syndicated loan under which Atlas Purchaser Inc is a borrower were trading in the secondary market around 1.2 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $45.6 million Term loan facility is scheduled to mature on May 5, 2028. The amount is fully drawn and outstanding. Atlas Purchaser, Inc., which does business as Alvaria, Inc., acquired the assets of Aspect Software in a leveraged buyout in 2021. Aspect is a provider of call center software and solution. AUTO BUFFY: Hires Mercurius Advisory Services as Accountant ----------------------------------------------------------- Auto Buffy, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Maryland to employ Mercurius Advisory Services Private Limited as its accountants. The firm will prepare the Debtor's federal and state income tax returns, and provide significant bookkeeping services and the completion of multiple compliance reports. The agreement provides for monthly payments of $1,312.50 for the period of January 2025 to August 2025. Chandramani Goel of Mercurius Advisory Services assured the court that the firm is a "disinterested person" within the meaning of 11 U.S.C. 101(14). The firm can be reached through: Chandramani Goel Mercurius Advisory Services Private Limited A-94/8, Wazirpur Industrial Area Main Ring Road New Delhi 110052 Tel: 011 4559 6689 Email: info@maspartner.com About Auto Buffy Auto Buffy Inc. f/k/a Air Springs Direct, Inc. is an auto parts retailer specializing in brake rotors, headlights, quick struts, CV axles, mirrors, wipers, motor oil, brake pads, wheel hubs, coil springs, motor mounts, ignition coils, and tail lights. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 25-10208) on January 10, 2025, with $0 to $50,000 in assets and $1 million to $10 million in liabilities. Chetan Singh Chadha, president, signed the petition. Judge Michelle M. Harner presides over the case. Stephen A. Metz, Esq. at Offit Kurman, PA represents the Debtor as legal counsel. AW CONCORDIA: Unsecureds Will Get 50% of Claims over 5 Years ------------------------------------------------------------ AW Concordia Holdings, LLC filed with the U.S. Bankruptcy Court for the Northern District of Georgia a Disclosure Statement for Plan of Reorganization dated February 6, 2025. The Debtor is a limited liability company formed in 2022 under the laws of the United States Virgin Islands. At formation, Debtor had two equal members, Dr. David Williams ("Dr. Williams") and Timothy Allen ("Mr. Allen"). The Debtor was formed purchase the Concordia Eco Resort (the "Resort") located on the island of St. John in the United States Virgin Islands. The Resort is located at 15A Coral Bay Quarter, St. John, VI (the "Property"). Debtor obtained a loan from Stone Bank to purchase the Property for $4,100,000 in June 2022. Each member was to contribute equally to Debtor, but Dr. Williams contributed more funds than Mr. Allen. Disputes arose between Mr. Allen and Dr. Williams shortly after the purchase of the Property when Dr. Williams discovered that Mr. Allen was using the Resort income to pay for this American Express card. In the Fall of 2022, Mr. Allen had Dr. Williams expelled as a member of Debtor. Dr. Williams commenced a lawsuit individually and derivatively against Mr. Allen in the District Court of the Virgin Islands to reinstate his member interest in Debtor and to recover the monies used by Mr. Allen for his personal expenses. In 2024, Stone Bank initiated judicial foreclosure proceedings against Debtor to foreclose on the Property. It also filed a lawsuit in Arkansas against Dr. Williams and Mr. Allen on their guarantees of the Loan. In October 2024, Dr. Williams realized that filing for bankruptcy protection was the best option for Debtor to protect its Property. On October 8, 2024, Debtor filed this Bankruptcy Case. The Plan provides for two classes of unsecured creditors: Class 3 provides for a convenience class of General Unsecured Creditors Allowed Claims that shall be paid in full within 60 days of the Effective Date of the Plan. Class 4 consists of the General Unsecured Creditors Allowed Claims will be paid on a pro rata basis over 5 years from Debtor's projected disposable income in twenty quarterly payments beginning on the last day of the first quarter following the Effective Date. These unsecured creditors will be paid from Debtor's disposable income and from contributions of Dr. Williams, if needed. Class 3 consists of General Unsecured Creditor Convenience Claims. The Debtor estimates, based on its Schedules and filed proofs of claims, as of the date of the Plan, that Allowed General Unsecured Creditor Convenience Claims total $20,448.82. The Claims in the Convenience Class belong to four creditors who are local St. John vendors who do business with Debtor on a regular basis. To continue the goodwill with the vendors and based on the necessity of the services and goods they provide, Debtor shall pay these four creditors in full within sixty days after the Effective Date. The claims shall be paid from Debtor's disposable income and from Dr. Williams' contributions, if needed. Class 4 consists of General Unsecured Creditors (the "GUCs"). The Debtor estimates, based on its schedules and filed proofs of claims, that as of the date of the Plan, that General Unsecured Creditors Allowed Claims total approximately $259,335.55. This Class 4 contains three claims consisting of a credit card debt and two unsecured promissory notes for loans made to Debtor in December 2022. The Allowed General Unsecured Creditors Claims shall be paid $130,000.00 in on a pro rata basis over 20 quarters beginning on the last day of the first quarter after the Effective Date. This class shall receive an estimated 50% distribution on each allowed claim. This estimated distribution may fluctuate should additional unsecured creditors file proofs of claim that are not included in Debtor's Schedules. The claims shall be paid from Debtor's disposable income. Class 5 consists of Equity Interests. On the Effective Date of the Plan, Dr. Williams will be the sole owner of Debtor. He shall retain his member interest in Debtor as of the Effective Date. Dr. Williams does not receive any income or distributions from Debtor. Since the Petition Date, Dr. Williams has contributed capital to Debtor to fund operations in the amount of at least $105,000. Dr. Williams also is the guarantor on the Stone Bank Loan and is obligated to pay any payment shortfalls under the Plan. Distributions and payments under the Plan and the Stone Bank Loan shall be paid from Debtor's revenue and from Dr. Williams' contributions, if needed. Debtor's projected March 2025 through April 2026 monthly income and expenses is set forth in the Budget. A full-text copy of the Disclosure Statement dated February 6, 2025 is available at https://urlcurt.com/u?l=nphD4x from PacerMonitor.com at no charge. About AW Concordia Holdings AW Concordia Holdings, LLC owns Concordia Eco Resort, a historic property with environmentally friendly villas and rustic ridge line cabanas. AW Concordia Holdings, LLC in Auburn GA, sought relief under Chapter 11 of the Bankruptcy Code filed its voluntary petition for Chapter 11 protection (Bankr. N.D. Ga. Case No. 24-21259) on Oct. 8, 2024, listing as much as $1 million to $10 million in both assets and liabilities. David M. Williams, M.D., as managing member, signed the petition. The Debtor is represented by: Will B. Geer William A. Rountree Rountree Leitman Klein & Geer LLC Tel: 404-584-1238 Email: wgeer@rlkglaw.com B&H SFR: Seeks Chapter 11 Bankruptcy Protection in Georgia ---------------------------------------------------------- On February 14, 2025, B&H SFR LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Middle 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 B&H SFR LLC B&H SFR LLC is a limited liability company. B&H SFR LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Ga. Case No. 25-40098) on February 14, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by: Thomas T. McClendon, Esq. JONES & WALDEN LLC 699 Piedmont Avenue NE Atlanta, GA 30308 Tel: 404-564-9300 E-mail: tmcclendon@joneswalden.com BABCOCK SOLUTIONS: Unsecureds Will Get 38.33% over 5 Years ---------------------------------------------------------- Babcock Solutions, LLC submitted a Third Amended Plan of Reorganization for Small Business. The Debtor firmly believes that the Plan represents the best alternative for providing the maximum value for creditors. The Plan provides creditors with a distribution on their Claims in an amount greater than any other potential known option available to the Debtor. The Class 7 Secured Claim consists of the Allowed Secured Claim held by Chrysler Capital secured by the Debtor's 2021 Jeep Gladiator. The Class 7 Secured Claim is impaired by this Plan. The principal amount of the Class 7 Claim will be allowed (i) in the amount of $38,500; or (ii) if the Class 7 claimant objects, in an amount to be determined by the Court on or before the Confirmation Date; or (iii) an amount agreed upon by the Debtor and the Class 7 claimant on or before the Confirmation Date. The Class 7 Claim shall be amortized and paid in equal monthly installments in the amount of $789.89 over a five-year period following the Effective Date of the Plan. The Class 11 Secured Claim consists of the Allowed Secured Claim held by Mitsubishi HC Capital America secured by the Debtor's 2024 GMC Sierra. The principal amount of the Class 11 Claim will be allowed (i) in the amount of $92,500.00; or (ii) if the Class 11 claimant objects, in an amount to be determined by the Court on or before the Confirmation Date; or (iii) an amount agreed upon by the Debtor and the Class 11 claimant on or before the Confirmation Date. The Class 11 Claim shall be amortized and paid in equal monthly installments in the amount of $1,897.78 over a five-year period following the Effective Date of the Plan. Class 19 consists of those unsecured creditors of the Debtor who hold Allowed Claims that were either scheduled by the Debtor as undisputed, or subject to timely filed proofs of claim to which the Debtor does not successfully object. Class 19 in impaired by the Plan. Class 19 shall receive a pro-rata distribution equal to seventy-five percent of the Debtor's Available Cash calculated on a quarterly basis for a period of five years following the Effective Date of the Plan Commencing on the twentieth day of the first month in the second calendar quarter following the Effective Dave of the Plan, the Debtor shall set aside an amount equal to one hundred percent of the prior quarter's Available Cash, with twenty-five percent going to the Expense Reserve and seventy-five percent going to Class 19 general unsecured creditors. If the Expense Reserve exceeds $100,000, any funds in excess of $100,000 shall be distributed pro rata to Class 19 Creditors on the next date of distribution. Based on the Debtor's projections, attached hereto as Exhibit B, the Debtor estimates Class 19 Creditors will receive approximately 38.33% on account of their claims. Upon request by any party in interest, the Debtor shall provide a quarterly financial statement, including amounts disbursed to creditors in accordance with the Plan. On the Effective Date of the Plan, Mr. Andrew Babcock, the sole member and manager of Debtor, shall be appointed pursuant to Section 1142(b) of the Bankruptcy Code for the purpose of carrying out the terms of the Plan, and taking all actions deemed necessary or convenient to consummating the terms of the Plan. Mr. Babcock will receive a salary in the amount of $90,000 per year for the services he provides in operating the business. The Debtor will also pay for two leased vehicles titled in Mr. Babcock's name but used in the Debtor's operations. A full-text copy of the Third Amended Plan dated February 3, 2025 is available at https://urlcurt.com/u?l=ggX6Id from PacerMonitor.com at no charge. Attorneys for the Debtor: Keri L. Riley, Esq. Kutner Brinen Dickey Riley, PC 1660 Lincoln Street, Suite 1720 Denver, CO 80264 Telephone: (303) 832-2400 Email: klr@kutnerlaw.com About Babcock Solutions Babcock Solutions, LLC is a Colorado limited liability company that is engaged in business primarily leasing out vehicles for short term rentals through Turo, an online platform that allows users to connect directly to consumers and lease out vehicles for short periods of time. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 24-11228-KHT) on March 20, 2024. In the petition signed by Andrew Babcock, managing member, the Debtor disclosed up to $1 million in both assets and liabilities. Judge Kimberly H. Tyson oversees the case. Keri L. Riley, Esq., at Kutner Brinen Dickey Riley PC, represents the Debtor as legal counsel. BEAZER HOMES: S&P Alters Outlook to Negative, Affirms 'B+' ICR -------------------------------------------------------------- S&P Global Ratings revised the outlook to negative from stable on Beazer Homes USA Inc. (BZH). At the same time, S&P affirmed all the ratings on the company, including the 'B+' issuer credit rating. S&P said, "The negative outlook reflects our expectation that BZH's leverage will remain elevated over the next six to 12 months despite recent growth in community count, increasing deliveries, and growing average selling prices. Continued pressure on margins is offsetting the recent improvements such that we project the company's S&P Global Ratings-adjusted debt to EBITDA will be 4.0x at year-end 2025. "We forecast S&P Global Ratings-adjusted EBITDA of $260 million in 2025, which currently lags our previous expectations of approximately $285 million over the same period. This is primarily attributed to pressured margins from continued elevated price concessions and closing cost incentives, timing of community count growth along with closings, and increased share of speculative (spec) home closings, which generally have lower margins. As such, we anticipate gross margins of 19% with selling general and administrative costs of approximately 11% of revenue. This leads us to forecast leverage of approximately 4x, which leaves little cushion against our downside scenario. This includes our anticipation that BZH will continue increasing its spending on land inventory and share repurchases year over year. As such, we continue to view our assessment of the company as commensurate with a 'B+' rating. "We forecast BZH's annual absorption rate will remain flat at 2.5 sales per community per month from our previous forecast of 2.9 in 2025. The decreased sales pace is a result of overall affordability challenges amid the higher interest rate environment, timing of community count openings, and general competition in its key markets. This will keep its EBITDA elevated at 4.0x in 2025. However, we see a path toward deleveraging due to community count growth, which we expect will lead to an increase of 10%-15% in communities over the next 12 months. Coupled with a stable demand environment, this leads us to project homes closed in 2025 will grow 10%-15%, with 1%-3% growth in average selling prices. We project the company will continue to focus on returns from previously invested capital and continue its trend of reinvestment to further bolster is land assets. "We believe BZH's recent capital structure actions temporarily alleviate potentially more negative actions on the issuer credit rating. The company recently improved its liquidity position by raising the amount of its senior unsecured revolving credit facility to $365 million from $300 million. Additionally, we deem the company's capital structure and staggered longer dated maturities as beneficial to its credit quality as the nearest maturity is 2027. Because the company has financial flexibility and no near-term need to refinance, we believe the emphasis is strictly on operational execution against guidance over the next six to 12 months before taking any additional rating actions. "The negative outlook reflects our view that BZH's recent earnings leave little to no cushion toward the downside scenario of debt to EBITDA well above 4x. "We could lower the rating if BZH's operating ability deteriorates further than we forecast over the next 12 months such that its debt to EBITDA remains above 4x, most likely driven by debt-funded initiatives, operating setbacks, or weaker margins. "We could revise the outlook to stable if BZH's debt to EBITDA falls comfortably below 4x on a sustained basis and we anticipate management will commit to that leverage profile." BELLTOWN FARMS: Taps Big Iron Auction as Broker, Auctioneer ----------------------------------------------------------- Belltown Farms GF Opco, LLC seeks approval from the U.S. Bankruptcy Court for the District of Nebraska to employ Big Iron Auction Company as broker and auctioneer. Big Iron will prepare, advertise, auction, and facilitate the purchase and transition of certain equipment the Debtor intends to sell. Big Iron will receive a commission equal to 9.5 percent of the gross proceeds realized from the proposed sale. Katie Kniss, manager of auction operations with Big Iron, assured the court that her firm is a "disinterested person" within the meaning of 11 U.S.C. 101(14). The firm can be reached through: Katie Kniss Big Iron Auction Company 1066 E. US Hwy. 136 PO Box 111 Hamilton, IL 62341-0111 Tel: (844) 847-2161 Fax: (217) 847-6246 About Belltown Farms GF Opco Belltown Farms GF Opco, LLC is engaged in the business of oilseed and grain farming. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Neb. Case No. 24-41171) on December 2, 2024. In the petition signed by Peter Tom Hill-Norton, authorized signatory, the Debtor disclosed up to $50 million in both assets and liabilities. Judge Brian S. Kruse oversees the case. Patrick R. Turner, Esq., at Turner Legal Group, LLC, represents the Debtor as legal counsel. BIOXCEL THERAPEUTICS: Implements 1-for-16 Reverse Stock Split ------------------------------------------------------------- BioXcel Therapeutics, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on February 6, 2025, it filed an amendment to its Amended and Restated Certificate of Incorporation, as amended and/or restated from time to time, to effectuate a reverse stock split of the Company's issued and outstanding shares of common stock, par value $0.001 per share. As previously disclosed, at its special meeting of stockholders held on January 28, 2025, and upon the recommendation of the Company's Board of Directors, the Company's stockholders approved a certificate of amendment to effect a reverse stock split of the Common Stock at a ratio ranging from any whole number between 1-for-5 and 1-for-30, as determined by the Board in its discretion. On January 29, 2025, the Board approved a reverse stock split of the Common Stock at a ratio of 1-for-16. The Company filed the Charter Amendment to effect a 1-for-16 reverse stock split of its shares of Common Stock. The reverse stock split became effective as of 5:00 p.m. Eastern Time on February 7, 2025. As a result of the Reverse Stock Split, every 16 shares of the Company's Common Stock issued or outstanding will be automatically reclassified into one validly issued, fully-paid and non-assessable new share of Common Stock, subject to the treatment of fractional shares as described below, without any action on the part of the holders. Proportional adjustments will be made to the number of shares of Common Stock awarded and available for issuance under the Company's equity incentive plans, as well as the exercise price and the number of shares issuable upon the exercise or conversion of the Company's outstanding stock options and other equity securities under the Company's equity incentive plans. All outstanding warrants will also be adjusted in accordance with their terms. The shares of Common Stock outstanding following the Reverse Stock Split will remain fully paid and non-assessable. The Reverse Stock Split will not affect the number of authorized shares of Common Stock or the par value of the Common Stock. No fractional shares will be issued in connection with the Reverse Stock Split. Stockholders who would otherwise be entitled to receive fractional shares as a result of the Reverse Stock Split will automatically be entitled to receive a cash payment equal to the market value of the fractional share. The reverse stock split will affect all stockholders uniformly and will not alter any stockholder's relative interest in the company's equity securities, except for any adjustments for fractional shares. Trading of the Common Stock on The Nasdaq Capital Market commenced on a split-adjusted basis at market open on February 10, 2025, under the existing trading symbol "BTAI." The new CUSIP number for the Company's Common Stock following the Reverse Stock Split is 09075P204. About BioXcel Therapeutics Headquartered in New Haven, Conn., BioXcel Therapeutics, Inc., is a biopharmaceutical company utilizing artificial intelligence to develop transformative medicines in neuroscience and, through the Company's wholly owned subsidiary, OnkosXcel Therapeutics LLC, immuno-oncology. The Company is focused on utilizing cutting-edge technology and innovative research to develop high-value therapeutics aimed at transforming patients' lives. The Company employs various AI platforms to reduce therapeutic development costs and potentially accelerate development timelines. Stamford, Conn.-based Ernst & Young LLP, the Company's auditor since 2021, issued a "going concern" qualification in its report dated March 22, 2024, citing that the Company has suffered recurring losses from operations, has used significant cash in operations, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. BL & MORE: Unsecureds Will Get 0.39% of Claim in Subchapter V Plan ------------------------------------------------------------------ BL & More, Inc. filed with the U.S. Bankruptcy Court for the District of Puerto Rico a Plan of Reorganization for Small Business under Subchapter V dated February 3, 2025. BL & More, Inc. is a for profit corporation organized and existing pursuant to the laws of the Commonwealth of Puerto Rico, created with the purpose of operating a restaurant, which opened on October, 2021. Its main business is the operation of a restaurant open for breakfast, lunch and dinner. Because of its location, Debtor is also involved in the tourism industry, as it receives a large tourist clientele, besides local clients. The Debtor has all of the required governmental permits to operate its business. The Debtor's operation is managed by its President, Maitte M. Mendez Santos, who, is the sole stockholder of Debtor. Currently Debtor operates with 9 employees and 3 contractors. Prior to the filing for relief the IRS seized deposits in Debtor's bank account, funds which were necessary to continue operations. Although the Debtor paid the IRS more $60,000.00 to enter into a payment plan, the IRS demanded additional lump sum payments which the Debtor could not make, nor could it incur in additional debt. To avoid continued attachment of funds by the IRS, and propose a plan of reorganization pursuant to the provisions of the Bankruptcy Code, the Debtor filed for relief on September 30, 2024. After the filing for relief, Debtor continued to operate its business without the need of credit lines. The Debtor, thru its principal, made a complete evaluation of the operations and was able to restructure its work force to operate more efficiently during peak hours of operation. Debtor, thru its counsel, has also held good faith negotiations with its largest secured creditors, Oriental Bank in order to propose a consensual plan for the treatment of their claims. All of Debtor's projected disposable income will be devoted to payment of Oriental's secured claim and full payment of priority claims as listed in summary of distribution included with this plan. Non-priority unsecured creditors holding allowed claims will receive distribution, which the Proponent of this Plan has valued at 0.39% of their claim, and will receive a one-time payment of $1,000.00 to be prorated amongst all general unsecured creditors. This Plan also provides for the payment of administrative within the first year of the confirmation of the plan, and priority claims will receive full distribution plus a 3.50% interest on their priority claims. Class 2 is composed of general unsecured non-priority creditors, with allowed claims which will receive distribution, which the Proponent of this Plan has valued at 0.39% of their claim. This distribution will be made thru a one-time payment of $1,000.00 on the effective date of the plan. Non-priority unsecured creditors with allowed claims total $252,767.38. Principal and President of BL & More Inc., Maitte M. Mendez Santos, has continued to direct the operations of the Debtor. Under her direction, sales have been constant at approximately $44,000.00 per month, while monthly expenses with cost saving measures have decreased expenses of operation to approximately $37,000.00, which allows the Debtor a margin to ensure compliance with payments as proposed in the Plan, while staying current with payment of all operational expenses. All payments under the plan including administrative, priority, secured and general unsecured claims shall be paid directly by the Debtor to each creditor to the postal address set forth in the proof of claim or in the application for compensation. Payment of administrative expenses, priority claims, secured claim and payment to Class 2, general unsecured creditors will be made from Debtor's disposable income, derived from the operation of his business and main source of income. A full-text copy of the Plan of Reorganization dated February 3, 2025 is available at https://urlcurt.com/u?l=tWaNTy from PacerMonitor.com at no charge. Counsel to the Debtor: Noemi Landrau Rivera, Esq. Landrau Rivera & Assoc. P.O. Box 270219 San Juan, PR 00928 Telephone: (787) 774-0224 Facsimile: (787) 919-7713 Email: nlandrau@landraulaw.com About BL & More BL & More, Inc. is a for profit corporation which operates a restaurant open for breakfast, lunch and dinner. The Debtor sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 24-04130) on Sept. 27, 2024, listing under $1 million in both assets and liabilities. Noemi Landrau Rivera, Esq., at Landrau Rivera & Assoc. serves as the Debtor's counsel. BLACKMARKET BAKERY: Unsecureds to Get 50 Cents on Dollar in Plan ---------------------------------------------------------------- Blackmarket Bakery, Inc., filed with the U.S. Bankruptcy Court for the Southern District of California a Plan of Reorganization dated February 3, 2025. The Debtor was incorporated in the state of California on January 22, 2008, by Rachel Klemek. Ms. Klemek is the Debtor's sole shareholder, and has always served as its sole director, President and Chief Financial Officer. The Debtor has always had a simple vision, to create delightful baked goods featuring real ingredients, classic technique and an irreverent sense of fun. What began as a one-woman show selling at farmers' markets has grown into, in conjunction with its affiliate Blackmarket Bakery SD, LLC ("Affiliate"), a small chain of women owned bakeries. The Affiliate is not seeking reorganization in any bankruptcy proceeding. The Debtor has a retail location in Oceanside, a second in Costa Mesa and a bakery facility in Irvine, California. The bakery provides baked goods to both Debtor retail locations as well as to the LLC. Through this Chapter 11 case, Debtor is proposing a plan of reorganization that will allow it to continue to operate its business going forward, serving customers, employing staff, paying landlords and vendors, while simultaneously affording its creditors the recovery they are entitled to receive, in a restructured fashion that should allow it to avoid in the future the type of financial problems that drove it into bankruptcy. The Plan is a reorganizing plan. The Debtor's Plan will be funded from the Debtor's income derived from operations of its business. Allowed administrative claims will be paid in full on the Effective Date, unless otherwise agreed to by the administrative claimant. The funds remaining after payment of allowed administrative claims and any priority tax claim will be paid pro rata to holders of allowed general unsecured claims over three years, estimated to be 50 cents on the dollar of allowed claim amount. Class 9 consists of General Unsecured Claims. Any Allowed Claim in this Class shall be paid pro rata with other Class claims. The Debtor is dedicating all of its projected disposable income for a period of three years. The amount of Debtor's projected disposable income and is intended to be cash in excess of its operational costs and cash reserve. This will result in Allowed Claims in this Class being paid an estimated 50 cents on the dollar. The actual figure will depend on the total amount of General Unsecured Claims allowed following the claim objection process. The allowed unsecured claims total $516,991. The Debtor's projections attached to the Plan demonstrate that through cash on hand and income generated by the Debtor over the life of the Plan, the Debtor will have the ability to make the payments due (1) on the Effective Date, (2) to administrative claim holders, (3) to Class 1 claim holders, (4) to Class 2 claim holders, (5) to Class 3 claim holders, (6) to Class 4 claim holders, (7) to Class 5 claims holders (8) to Class 6 claim holders (9) to Class 7 claim holders (10) to Class 8 claim holders, and (11) to Class 9 claim holders. A full-text copy of the Plan of Reorganization dated February 3, 2025 is available at https://urlcurt.com/u?l=8BiEGS from PacerMonitor.com at no charge. Counsel to the Debtor: Steven E. Cowen, Esq. S. E. Cowen Law 333 H Street, 5th Floor Chula Vista, CA 91910 Telephone: (619) 202â€“7511 Facsimile: (619) 233â€“3327 Email: Cowen.steve@secowenlaw.com About Blackmarket Bakery Blackmarket Bakery, Inc., is a small chain of women-owned bakeries in San Diego, Calif. Blackmarket Bakery filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Cal. Case No. 24-03364) on Sept. 4, 2024, with up to $50,000 in assets and up to $10 million in liabilities. Rachel Klemek, president, signed the petition. Judge J. Barrett Marum oversees the case. Steven E. Cowen, Esq., at S. E. Cowen Law serves as the Debtor's counsel. David Andrew Wood was appointed as the trustee in this Chapter 11 case. He tapped Fennemore LLP as his counsel. BREWCO BORROWER: $115MM Bank Debt Trades at 44% Discount -------------------------------------------------------- Participations in a syndicated loan under which BrewCo Borrower LLC is a borrower were trading in the secondary market around 55.6 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $115 million Term loan facility is scheduled to mature on April 5, 2028. About $114.1 million of the loan has been drawn and outstanding. Brewco Borrower LLC operates as an alcoholic beverage company. CAMPBELL FAMILY: Robert Alan Byrd Named Subchapter V Trustee ------------------------------------------------------------ David Asbach, Acting U.S. Trustee for Region 5, appointed Robert Byrd, Esq., at Byrd & Wiser, as Subchapter V trustee for Campbell Family Enterprises, Inc. Mr. Byrd will be paid an hourly fee of $275 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Byrd declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Robert A. Byrd, Esq. Byrd & Wiser P.O. Drawer 1939 Biloxi, MS 39533 Telephone: (228) 432-8123 Facsimile: (228) 432-7029 Email: rab@byrdwiser.com About for Campbell Family Enterprises Campbell Family Enterprises, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Miss. Case No. 25-10364) on February 4, 2025, listing between $100,001 and $500,000 in assets and between $500,001 and $1 million in liabilities. Judge Selene D. Maddox presides over the case. Thomas C. Rollins, Jr., Esq., at The Rollins Law Firm, PLLC represents the Debtor as bankruptcy counsel. CAPITAL PROPERTIES: Taps Exp Reality as Real Estate Broker ---------------------------------------------------------- Capital Properties and Home Services, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of California to hire Exp Reality as broker. The broker will assist the Debtor in the marketing and sale of the real property commonly known 26 Ness Court, Sacramento, CA 95826. The compensation agreed upon is 6 percent of the gross sales. Amir Cackovic, real estate agent with Exp Reality, assured the court that he is a "disinterested person" within the meaning of 11 U.S.C. 101(14). The broker can be reached through: Amir Cackovic Exp Reality 5921 Landis Ave Unit 1 Carmichael, CA 95608 Phone: (916) 400-0000 About Capital Properties and Home Services Capital Properties and Home Services, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 24-25376) on November 26, 2024, with $0 to $50,000 in assets and $500,001 to $1 million in liabilities. Judge Christopher D. Jaime presides over the case. CAROLINA INTERNATIONAL: S&P Affirms 'BB+' Rating on Rev. Bonds -------------------------------------------------------------- S&P Global Ratings revised its outlook to negative from stable and affirmed its 'BB+' long-term rating on the Public Finance Authority, Wis.' series 2013 and 2018 education revenue bonds, issued for Carolina International School (CIS), N.C. "The outlook revision reflects our view of CIS' weakened operating performance and lease-adjusted maximum annual debt service (MADS) coverage below 1.0x, primarily because of slower-than-expected enrollment and revenue growth coupled with an increasing expense base. Management indicates the school remains in compliance with bond covenants, as calculations are based on the school's change in net assets at the end of the fiscal year, per the audited statement of activities," said S&P Global Ratings credit analyst Sadie Mazzola. If CIS is unable to stabilize operations resulting in weak lease-adjusted MADS coverage and further declines in liquidity, S&P could lower the rating. S&P said, "The negative outlook reflects our view that there is at least a one-in-three chance we could lower the rating during the outlook period if actual enrollment is below projections, financial operations do not improve relative to fiscal 2024 levels, and liquidity deteriorates further. "We could consider a negative rating action if financial deficits persist, such that they pressure liquidity to levels no longer commensurate with rating category peers or if enrollment and demand weaken. "We could revise the outlook to stable if CIS can improve its operations, strengthen lease-adjusted MADS coverage and liquidity metrics, while maintaining positive enrollment trends." CARRIAGE PURCHASER: Moody's Affirms 'B2' CFR, Outlook Stable ------------------------------------------------------------ Moody's Ratings affirmed the ratings of Carriage Purchaser, Inc. (dba PS Logistics), including its B2 corporate family rating, B2-PD probability of default rating, B1 senior secured first lien term loan rating and Caa1 senior unsecured notes rating. The stable outlook was maintained. RATINGS RATIONALE PS Logistics' B2 CFR reflects the company's position as one of the largest providers of flatbed transportation and logistics services, its solid operational track record through business cycles and adequate liquidity. Further, the rating reflects the company's moderately high financial leverage, acquisitive financial policy and ongoing capital needs to enhance its fleet of trucks. PS Logistics' business is supported by a diverse mix of asset-based, owner operator and non-asset based freight brokerage services. The company is active in the flatbed segment of the trucking sector with a focus on providing transportation of metal products, construction materials, machinery and equipment. As a result, the company is exposed to end market demand that correlates with cyclical industrial production and construction spending in the US. The impact and uncertainty of tariffs pose a risk to overall volumes and demand in these end markets. However, Moody's believe most of the freight PS Logistics transports is largely produced and used domestically. Moody's expect PS Logistics' operating performance to moderately improve over the course of 2025. Lower trucking rates and softer volumes have weighed on PS Logistics' earnings since 2023. However, Moody's expect rates to modestly increase in 2025 as excess trucking capacity continues to exit the market. PS Logistics' driver pay structure, which is based on a percentage of freight rates, creates a flexible cost structure and limits significant margin erosion during down markets. Further, it contributes to PS Logistics below average driver turnover levels. Moody's expect PS Logistics to maintain adequate liquidity over the next 12-18 months. The company maintains sufficient cash for its business needs and is expected to maintain ample availability under its $150 million asset based lending (ABL) facility that expires September 2026. This facility is undrawn after PS Logistics used proceeds from a $50 million incremental first lien term loan during the 4th quarter of 2024 to repay borrowings. Moody's expect that PS Logistics' free cash flow will be positive in 2025. The company finances the majority of its truck purchases through equipment financing notes, which is not captured in Moody's free cash flow measure. If these debt-financed capital expenditures were included, Moody's would expect free cash flow to be at best breakeven in 2025. PS Logistics maintains a very young fleet of trucks so Moody's expect new truck purchases to moderate over the next year. The stable outlook reflects Moody's expectation for a gradual improvement in profitability and for debt/EBITDA to be around 5x by the end of 2025. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Moody's expect that the EBITA margin will be sustained above 6%, debt/EBITDA will be maintained below 4x, and the company is expected to generate consistently positive free cash flow while maintaining adequate investments in its fleet. The ratings could be downgraded if Moody's expect the EBITA margin to decrease below 4% or debt/EBITDA to remain above 5x. Weaker liquidity with negative free cash flow and reduced revolver availability could result in a rating downgrade. Lastly, a material increase in average truck age could result in a downgrade as this could result in higher operating costs or suggest the company doesn't have the financial capacity to invest in its fleet. The principal methodology used in these ratings was Surface Transportation and Logistics published in December 2021. Carriage Purchaser, Inc., headquartered in Birmingham, AL, is a flatbed transportation and logistics services provider that operates a fleet of over 4,500 tractors and has more than 40 terminal locations in the eastern, midwestern and southeastern US. The company generated about $1.6 billion of revenue in the twelve months ended September 30, 2024. The company operates under the name PS Logistics. Carriage Purchaser is privately owned by funds managed by Gamut Capital Management, L.P., British Columbia Investment Management Corporation and management. CDF INC: Seeks to Hire Galloway Wetterman as Attorney ----------------------------------------------------- CDF Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Alabama to employ Galloway, Wetterman & Reutens, LLP as attorney. The firm will provide these services: (a) advise the Debtor with respect to its powers and duties; (b) protect the interest of the Debtor in connection with lawsuits filed; (c) prepare legal papers; (d) negotiate with creditors and develop a plan of reorganization; and (e) perform all other legal services. The firm will be paid at the rate of $275 per hour. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. J. Willis Garrett, Esq., a partner at Galloway, Wettermark & Rutens, LLP, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: J. Willis Garrett, Esq. Galloway, Wettermark & Rutens, LLP 3263 Cottage Hill Road Post Office Box 16629 Mobile, AL 36616-0629 Tel: (251) 476-4493 About CDF, Inc. CDF Inc. owns two properties: one located at 208 E 46th Street, Tulsa, OK 74105, and the other at 4227 Woodglen Trace, Orange Beach, AL 36561. The combined value of these properties is $480,000. CDF Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ala. Case No. 25-10197) on January 24, 2025. In its petition, the Debtor reports total assets of $974,177 and total liabilities of $2,297,454. Honorable Bankruptcy Judge Jerry C. Oldshue handles the case. The Debtor is represented by J. Willis Garrett, III, Esq., at GALLOWAY, WETTERMARK & RUTENS, LLP, in Mobile, Alabama. CELANESE US: Moody's Lowers Sr. Unsec. Rating to Ba2, Outlook Neg. ------------------------------------------------------------------ Moody's Ratings has downgraded Celanese US Holdings LLC's backed senior unsecured rating and backed senior unsecured revenue bonds issued under Public Finance Authority, WI to Ba1 from Baa3, with a negative outlook. Previously, the ratings were on review for downgrade. At the same time, Moody's have assigned a Ba1 Corporate Family Rating, a Ba1-PD Probability of Default Rating and an SGL-2 Speculative Grade Liquidity Rating to Celanese. This concludes the review for downgrade initiated on November 5, 2024. Environmental, Social and Governance (ESG) is a key driver for the action. RATINGS RATIONALE The rating downgrade reflects Moody's expectation that Celanese' credit metrics will remain inconsistent with investment grade rating for a prolonged period given business execution challenges under uncertain market conditions. Higher for longer interest rates in the US, weak automotive and industrial activities in Europe and sluggish real estate investments in China dampen the prospect of a speedy demand recovery for Celanese' acetyls and engineered materials. The company also faces the challenge of maintaining its market leadership and achieving earnings forecasts while management works to lower the cost base and reduce debt. Moody's expect adjusted debt/EBITDA will not be significantly different from the current level of 5x-6x and only gradually improve in the next two years, as deleveraging efforts will be partly offset by profit pressure. The company will need to refinance, instead of repay, a large portion of its $1.3 billion debt due in 2025 and another $1.4 billion due in 2026. Reducing total debt from $13 billion to about $10 billion will be delayed, making it impossible to attain 3.5x debt/EBITDA required for the previous Baa3 rating for a number of years. However, Moody's still expect the company can generate $600 million to $700 million free cash flow per annum and complete asset divestures, which will allow debt leverage to approach 4.5x by the end of 2026. Maintaining a strong business profile and meeting previous earnings forecasts are challenged by increasing competition and spending cuts. In particular, Engineered Materials segment will need to develop and commercialize new products to ensure a healthy project pipeline, as its western automotive customers face fierce competition with Chinese automakers and global vehicle production growth stalls in 2025. Although Celanese' acetyls business has a globally advantaged feedstock cost position, lackluster construction activities have kept acetyl prices low and earnings at cyclical trough longer than expected. It will take time for the company to reap the benefits of its expanded low-cost acetic acid production in Clear Lake. Since the acquisition of DuPont's M&M business in 2022, cost savings and business synergies have been more than offset by the declines in selling prices and volumes, which further deteriorated towards the end of 2024. Celanese has recently announced plans to accelerate business restructuring, including facility shutdowns and headcount reductions, to counter earnings weakness and significantly reduced dividends to direct cash flow to debt repayment. Celanese' rating is supported by the company's substantial scale (about $10 billion in revenues) and greater than 20% EBITDA margin in both of its main businesses (Engineered Materials and Acetyls). The value of its portfolio allows the company to execute business strategy and continue to generate positive free cash flow and reduce debt over time. It also reflects the potential of earnings improvement from business restructuring and an expected, albeit delayed, recovery in demand after two and half years of weakness. The negative outlook reflects the challenges of improving earnings and executing asset divestures to reduce debt leverage against the uncertain macroeconomic backdrop. Celanese' SGL-2 is supported by its large cash balance ($813 million at the end of September 2024), free cash flow, expected assets divestures, $1.63 billion availability under the $1.75 billion revolver and a $1 billion 364-day delayed draw term loan. Short-term debt includes $321 million and $1 billion notes due in February and March of 2025. Celanese has amended the revolver covenant to allow additional room under the leverage ratio through 2026. Moody's expect the company will timely refinance its maturing debt. Celanese's Credit Impact Score of CIS-3 indicates that ESG considerations have a limited impact on the current credit rating with potential for greater negative impact over time. The company's $11 billion debt funded acquisition of DuPont's M&M business in 2022 resulted in a high debt leverage. An extended period of downturn in the chemical sector has aggravated its credit risk. The company also faces increasing expenses and capital required to reduce emissions and address environmental regulations. Environmental risks are significant for chemical companies due to the amount of waste and pollution. Social risks are also significant due to the nature of the products produced and the associated health and safety risks from exposure to materials that can be flammable or toxic. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Celanese' rating could be downgraded if the company fails to improve its earnings, generate at least $500 million of free cash flow and make progress on reducing debt leverage towards 4.5x in the next two years through a combination of free cash flow generation and asset divestures. Rating upgrade would require earnings improvement, debt leverage below 3.5x and free cash flow to debt over 10% on a sustained basis, as well as management's commitment to conservative financial policies. Maintaining a strong and competitive business profile with positive revenues growth and an over 20% EBITDA margin are also key factors for us to consider a rating upgrade. Celanese Corporation, headquartered in Irving, Texas, is a leading global producer of acetyls, vinyl acetate monomer, emulsions, acetate tow and engineered thermoplastics. Celanese acquired majority of DuPont de Nemours, Inc.'s (DuPont) M&M business in an all debt financed transaction in 2022. Sales are around $10-13 billion depending on commodity prices. Celanese US Holdings LLC is the main issuer of corporate debt and is a co-borrower under the credit facilities. The principal methodology used in these ratings was Chemicals published in October 2023. CENTENNIAL HOUSING: Seeks to Extend Plan Exclusivity to March 28 ---------------------------------------------------------------- Centennial Housing & Community Services Corporation asked the U.S. Bankruptcy Court for the Eastern District of North Carolina to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to March 28 and May 27, 2025, respectively. Pursuant to Section 1121(b) of the Bankruptcy Code, the Debtor has the exclusive right to file a Plan of Reorganization through Feb. 26, 2025. Pursuant to Section 1121(c)(3) of the Bankruptcy Code, the Debtor has through April 27, 2025, to obtain acceptances to its Chapter 11 Plan. 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) each be extended for a period of approximately 30 days. The Debtor asserts 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. About Centennial Housing & Community Services Centennial Housing & Community Services Corp. is a 25-bed critical access hospital offering a broad range of healthcare services. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 24-03769) on October 29, 2024, with $6,970,517 in assets and $11,730,050 in liabilities. Todd Mobley, chairman of the board of directors, signed the petition. Judge Joseph N. Callaway oversees the case. The Debtor is represented by: Rebecca F. Redwine Hendren Redwine & Malone, PLLC Tel: 919-420-0941 Email: rredwine@hendrenmalone.com Jason L. Hendren Hendren Redwine & Malone, PLLC Tel: 919-573-1422 Email: jhendren@hendrenmalone.com CENTURY CASINOS: Moody's Cuts CFR to 'Caa1', Outlook Stable ----------------------------------------------------------- Moody's Ratings downgraded Century Casinos, Inc.'s ratings, including its Corporate Family Rating to Caa1 from B3, Probability of Default Rating to Caa1-PD from B3-PD, Senior Secured Bank Credit Facilities ratings to B1 and Caa1 from Ba3 and B3. The company's Speculative Grade Liquidity ("SGL") remains SGL-3. The outlook was changed to stable from negative. The ratings downgrade reflects Century Casinos' high leverage ratio, which Moody's expect to remain above 7.0x Debt/EBITDA over the next 12 to 18 months. Its elevated leverage is attributed to stagnant operating performance and the significant lease obligations to VICI Properties L.P., particularly involving four properties in Alberta, Canada for which it executed a sale leaseback transaction in September 2023. Although the funds obtained were directed towards growth capital expenditures (capex), Moody's expect leverage to remain high for an extended period. RATINGS RATIONALE Century Casinos' Caa1 CFR reflects the company's high leverage and small scale in terms of revenue. Moody's Debt/EBITDA was 9.0x for LTM September 30, 2024. Century Casinos has a small scale in terms of revenue. Century Casinos has grown through acquisitions and developments that has gradually improved its scale and geographic diversification. Nonetheless, the company remains small with approximately $582 million revenue at LTM September 30, 2024 with casinos in secondary markets. Its iGaming and sports betting operations are also very small. Additionally, like other US gaming companies, Century Casinos remains exposed to cyclical discretionary consumer spending trends along with longer-term challenges facing regional gaming companies related to consumer entertainment preferences that do not favor traditional casino-style gaming. Positive credit considerations include product and geographic diversification resulting from acquisitions and developments, as well as a lack of near-term maturities. Century Casinos has adequate liquidity. As of September 30, 2024, it had approximately $119 million in unrestricted cash, full availability on its $30 million revolver, which will not expire until April 2027, and its senior secured first lien term loan is not due until April 2029. The stable outlook indicates Moody's anticipation that Century Casinos' revenues and EBITDA will see modest improvement following the completion of recent construction projects. Additionally, the outlook also reflects Moody's expectation that liquidity will remain adequate. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Century Casinos' ratings could be upgraded if it achieves and sustains Debt/EBITDA below 7.0x, generates meaningful positive free cash flow, and has good liquidity including comfortably meeting its financial covenant requirements. Ratings could be downgraded if Century Casinos' liquidity deteriorates, EBITDA declines from factors such as volume pressures or higher operating costs, or the probability of default increases or estimated recoveries decline. Century Casinos, Inc. owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, in Cape Girardeau and Caruthersville, Missouri and in Edmonton, Alberta, Canada; the Century Casino in St. Albert, Alberta, Canada; Mountaineer Casino, Resort & Races in New Cumberland, West Virginia; Rocky Gap Casino, Resort & Golf in Flintstone, Maryland; the Nugget Casino Resort in Reno-Sparks, Nevada and the Century Mile Racetrack and Casino in Edmonton, Alberta, Canada. Through its Austrian subsidiary, Century Resorts Management GmbH, the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the owner and operator of six casinos throughout Poland; and a 75% ownership interest in Century Downs Racetrack and Casino in Calgary, Alberta, Canada. The company is publicly traded (Nasdaq: CNTY) and generated consolidated annual net revenue of $582 million for LTM September 30, 2024. The principal methodology used in these ratings was Gaming published in June 2021. CIMG INC: Inks Amendment No. 1 to SPA ------------------------------------- On December 17, 2024, CIMG Inc., a Nevada corporation, filed a Form 8-K pertaining to the Convertible Note and Warrant Purchase Agreement dated December 12, 2024. On January 23, 2025, the Company filed an amended Form 8-K to correct the number of warrant shares from 19,230,767 to 25,641,023, which the Company believes resulted from a clerical error in the original Report. Upon further review, the Company believes the description in Section 1(b) of the SPA, regarding the calculation of the warrant shares, is inconsistent with the mutual understanding between the Company and the investors therein, according to a Form 8-K filing with the U.S. Securities and Exchange Commission. Therefore, on February 11, 2025, based on mutual agreement between the Company and the Investors, the Company and the Investors entered into the Amendment No. 1 to the SPA and agreed to revise and replace Section 1(b) of the SPA as follows: (b) Issuance of Warrants. Subject to all of the terms and conditions hereof, the Company has authorized the issuance of Warrants to purchase up to that number of shares of common stock of the Company equal to the principal amount of the Notes they each hold, divided by the exercise price of the Warrants, being $0.39 per share, excluding interest to be accrued on the Notes, as set forth in more detail in this Agreement and in the Warrants dated on or around the date of this Agreement. The Company agrees to issue to each Investor the Warrants exercisable for a number of Common Stock equal to 100% of the principal amount of the Notes they each hold, divided by the exercise price of the Warrant, being $[0.39] per share, excluding interest to be accrued on the Notes. The Warrants issued to the Investors pursuant to the SPA and the Amendment entitle the Investors to purchase up to an aggregate of 25,641,023 shares of common stock of the Company each at an exercise price of $0.39 per share, subject to fulfilment of the conditions precedent to exercise such warrants under the SPA and the Warrants. About CIMG Inc. Headquartered in Vista, California, CIMG Inc. (formerly Nuzee, Inc.) is a digital marketing, sales and distribution company for various consumer products with focuses on food and beverages. Dedicated to reshaping the digital marketing and distribution with technological applications, the Company endeavors to create greater commercial value for its business partners and therefore enhance its own enterprise value and shareholders' value of their stake in the Company. The Company has a professional brand and marketing management system, which can quickly help partnering enterprises achieve the connection, management, and operation of marketing channels domestically and globally. "The Company has had limited revenues, recurring losses and an accumulated deficit. These items raise substantial doubt as to the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty," said Nuzee in its Quarterly Report for the period ended June 30, 2024. The Company has not yet filed its Form 10-K for the fiscal year ended Sept. 30, 2023. CLOUTER CREEK: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------- The U.S. Trustee for Region 4 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Clouter Creek Reserve, LLC. About Clouter Creek Reserve Clouter Creek Reserve, LLC, formerly known as IVO SANDS, LLC, is a single asset real estate entity based in Charleston, S.C. Clouter Creek Reserve filed Chapter 11 petition (Bankr. D.S.C. Case No. 25-00034) on January 6, 2025. In its petition, the Debtor reported between $10 million and $50 million in assets and between $1 million and $10 million in liabilities. Judge Elisabetta Gm Gasparini oversees the case. Penn Law Firm, LLC represents the Debtor as bankruptcy counsel. COGECO COMMUNICATIONS (USA): S&P Affirms 'BB' ICR, Outlook Neg. --------------------------------------------------------------- S&P Global Ratings affirmed all the ratings on U.S. cable operator Cogeco Communications (USA) Inc. (doing business as Breezeline), including the 'BB' issuer credit rating. Breezeline's SACP remains 'bb-'. The negative outlook reflects the potential for deterioration in the credit profile of the parent Cogeco Communications Inc. (Cogeco), which could be influenced by Breezeline. S&P said, "We believe that intensifying competition from fiber-to-the home (FTTH) and fixed wireless access (FWA) providers will continue to pressure Breezeline's subscriber metrics this year. We project Breezeline's broadband subscriber base will contract about 2% in 2025, driving broadband penetration down to the 35% area from 36.5% in 2024. We believe the company's competitive overlap with FTTH and hybrid fiber coaxial cable overbuilders has increased to about 50% from roughly 25% in 2021. Greater competition from other broadband providers is pressuring both broadband average revenue per user (ARPU) and subscriber growth. In addition, wireless carriers are offering in-home broadband with FWA, which has limited Breezeline's ability to take share from digital subscriber line (DSL) providers because many of these consumers are opting to switch to cheaper FWA service instead of converting to cable. "We believe Breezeline's residential broadband services revenue will be negative in 2025. We project a negative 1% broadband revenue contraction due to 2% broadband subscriber losses on low-single digit percent ARPU growth. Still, we believe that Breezeline could return to positive earnings growth in 2025, driven by the company's expense optimization initiatives and lower integration and due diligence costs. Longer term, we believe its earnings growth will be limited because of fewer opportunities to make meaningful cost cuts. "We believe FTTH poses a competitive threat to small cable operators such as Breezeline. We believe FTTH competitors such as Frontier, Verizon, and AT&T will take market share because they offer very fast data speeds, which could increase customer churn. Furthermore, Verizon and AT&T are increasingly bundling discount fiber with its wireless service. Breezeline is not as well positioned as larger peers Comcast Corp. and Charter Communications Inc. to effectively defend against FTTH competition given its scale disadvantages to profitably bundle mobile service via a mobile virtual network operator agreement with its in-home broadband product. It also lacks scale to offer a more compelling video product like Charter to help retain its broadband customers. "Furthermore, the company's residential broadband ARPU is one of the industry's highest. Therefore, over the longer term, we believe its ability to increase earnings will be limited. "FWA will continue to pressure cable subscriber additions over the near term. The technology works well and is offered at lower prices. Therefore, we believe FWA could make it more challenging for Breezeline to add customers at the lower end of the market, limiting its ability to take share from DSL. FWA network capacity will eventually become constrained, but it is unclear when. Furthermore, wireless operators are deploying midband spectrum nationwide, enabling them to offer faster data speeds. "We believe Breezeline's good cash flow will enable it to manage its leverage even amid a challenging operational environment. We believe the company will generate free operating cash flow (FOCF) of $115 million-$130 million this year, about $60 million lower than 2024 due to higher capital spending for network expansion projects and $10 million-$20 million of working capital outflows. Still, lower net debt balances combined with 0%-2% earnings growth in 2025 should enable the company to deleverage to about 4.6x from 4.9x as of fiscal year-end 2024. "We treat Caisse de dépôt et placement du Québec's (CDPQ) $315 million, 21% equity stake in the company as a debt-like obligation, which adds about 0.6x to our leverage calculations. Still, we recognize the benefits of the hybrid instrument, which does not hurt FOCF because there is no interest component. "Any movement in our near-term rating on Breezeline is limited by our rating on its parent. We apply a positive one-notch adjustment to our SACP on Breezeline to reflect the support from its parent, Cogeco Communications. We incorporate this adjustment because we believe its parent will likely support the business in times of stress given that it accounts for a large portion of the parent's overall earnings and cash flow. However, our rating on the parent carries a negative outlook and, if it were to be lowered, we would also lower our rating on Breezeline (which accounts for about 50% of Cogeco's earnings). "The negative outlook reflects the potential for a deterioration in the credit profile of Cogeco, which would negatively affect our ratings on Breezeline given that our 'BB' issuer credit rating on Breezeline is subject to a cap one level below the group credit profile (GCP) assessment, which is currently 'BB+' with a negative outlook. "We would lower our ratings at Breezeline one notch, one level below the GCP, if we lower our ratings at Cogeco. This could be caused by weakening business prospects that lead us to tighten rating triggers at the parent, or if the parent does not reduce its leverage to below 3.75x (from about 3.8x). "Separately, we could lower our SACP on the company if its leverage rises above 5.25x, which we view as less likely given our expectation for leverage in the mid-4x area on lower net debt balances and modest earnings growth over the next 12 months. This would not affect our issuer credit rating on Breezeline unless we lower our SACP by more than two notches. "We would return our rating outlook on Breezeline to stable if we revise our rating outlook on Cogeco to stable. This could be caused by debt to EBITDA improving to 3.5x at the parent, which would most likely require successful execution of its strategic transformation initiatives that allow for EBITDA growth." COGECO COMMUNICATIONS: S&P Affirms 'BB+' ICR, Outlook Negative -------------------------------------------------------------- S&P Global Ratings affirmed its 'BB+' rating on Quebec-based regional cable operator Cogeco Communications Inc. and its 'BB' rating on its U.S. subsidiary Cogeco Communications (USA) Inc. At the same time, S&P affirmed its 'BBB-' issue-level rating on Cogeco's senior secured debt and our 'BB+' issue-level rating on unsecured debt. The negative outlooks reflect that S&P could lower its rating over the next 12 months if it believes Cogeco's leverage will not approach 3.5x by fiscal 2025, either due to declining revenues or delay in saving costs. S&P said, "The negative outlook reflects our expectation that Cogeco continues to face competitive headwinds that could slow deleveraging in the near term. The company's Canadian subsidiary Cogeco Connexion has been facing slower growth in internet subscribers and continued attrition in the high-margin legacy video and phone services. Elevated competition in the Canadian landscape, and a heavy promotional environment have contributed to lackluster annual revenue per user (ARPU) growth in fiscal 2024 (ended August 2024). "Given the mature Canadian market and broadband penetration, we believe Cogeco will be hard pressed to increase its existing internet penetration substantially. In our view, growth opportunities in Canada are usually limited to continued expansion in rural markets (with support from government subsidies) and adding customers on the Oxio platform. We also believe the company will take advantage of tuck-in acquisitions like the February 2024 Niagara Region Broadband Network acquisition. "That said, we believe stiff competition in the mature market, slowing population growth, and value-seeking behavior of consumers will slow Cogeco Connexion's earnings growth over the near term. We forecast the company will increase the number of internet subscribers in its Canadian operations and expand its revenue per user in the region (as it rolls out price increases), while 2025 EBITDA at the Canadian subsidiary will decline slightly due to cord-cutting and investments in the three-year transformation program. "At the same time, Cogeco's U.S subsidiary, Breezeline (about 50% of consolidated EBITDA in Canadian dollars), faces competitive headwinds from incumbent telco operators that continue to overbuild with fiber technology while offering wireless and wireline bundling services at competitive rates, as well as other telcos that offer services using fixed wireless access (FWA) technology. We estimate overlap with overbuilders and FWA is about 50% from 25% in 2021. "These factors contributed to a flat revenue and EBITDA for fiscal year-end 2024. We forecast Breezeline's revenues will improve slightly through fiscal 2025 due to stronger ARPUs, offset by lower internet subscriber erosion; the company is focused on maintaining high-margin customers. EBITDA should not only benefit from Cogeco's transformational program but also from modest organic growth at Breezeline. "Cogeco's lackluster EBITDA growth prospects and elevated capital expenditure (capex) will weigh on its credit metrics for the next 12 months. We expect S&P Global Ratings-adjusted debt to EBITDA will improve marginally to about 3.6x in 2025 because its Canadian operations continue to face headwinds from the competitive environment and ongoing macroeconomic uncertainty. At the same time, the incremental revenue from the migration of Cogeco's U.S. customers to higher-speed subscription tiers will be offset by its increased marketing and promotional costs, given the accelerating competition from FWA and fiber operators. As a result, for 2025, we expect S&P Global Ratings-adjusted consolidated 2025 EBITDA will be marginally better than 2024 levels, when incorporating the lower restructuring costs in 2025. "Nonetheless, the company's 2025 capex plans remain elevated, which will limit its balance sheet debt reduction compared to last year. As a part of its plan to extend its high-speed internet coverage to underserved and unserved areas, Cogeco will continue its fiber-to-the-home (FTTH) internet network expansion projects in both Canada (Ontario) and the U.S. Therefore, we anticipate its capex will remain elevated at C$650 million-C$725 million in fiscal 2025, with consolidated capital intensity close to 23% compared to 21% in 2024. As a result, adjusted free operating cash flow (FOCF) to debt will deteriorate in 2025 to about 6% in 2025 compared to 9% in 2024. However, we still expect the company to generate positive cash flow after paying dividends, which it may use to repay debt. "Our debt calculations also include CDPQ's US$312 million 21% equity stake in the company, which we treat as a debt-like obligation. We also incorporate parent Cogeco Inc.'s debt (about $143.5 million of existing debt) and EBITDA in our leverage calculations. For last-12-months November 2024, the company exited with 3.8x leverage, which we expect to improve to 3.6x by fiscal 2025. "We expect Cogeco will continue to generate healthy free cash flow over the next 12 months. The management team announced a three-year strategic transformational program focused on creating operational efficiencies. These initiatives are aimed at identifying cost synergies, digitization, and analytics. Cogeco's 2024 EBITDA also reflected higher one-time restructuring charges, which we expect will normalize in 2025. In addition, Cogeco Canada is planning to enter the wireless market through a mobile virtual network operator (MVNO) framework and partnership with Eastlink. "Furthermore, after buying back shares from Rogers Communications Inc. in December 2023, Cogeco paused its share buyback program until the company's leverage hits its target of low-3x (equivalent to S&P Global Ratings-adjusted leverage of 3.5x). We expect the company to focus on prudent capital allocation and explore noncore asset sales. We estimate Cogeco will generate positive discretionary cash flow (after dividends) of C$180 million-C$250 million over the next 12 months and improve S&P Global Ratings-adjusted debt to EBITDA to about 3.6 in fiscal 2025. "The negative outlook reflects that we could lower our rating on Cogeco over the next 12 months if we believe EBITDA will remain pressured, which would challenge the company in restoring credit metrics to levels we view as commensurate with a 'BB+' issuer credit rating. We expect the company's EBITDA levels will remain unchanged for the next 12 months as weakness in its top-line revenue is offset from savings from its transformational program." S&P could lower its rating on Cogeco over the next 12 months if: -- S&P expects S&P Global Ratings-adjusted debt to EBITDA stays close to or above 3.75x due to underperformance at its telecommunications operations due to increased competition; or -- S&P assesses the consolidated business risk profile to be weaker, mostly driven by lackluster performances at its U.S. subsidiary and not sufficiently offset by Canadian operations. S&P could revise its outlook on Cogeco to stable over the next 12 months if: -- The company successfully executes its network expansion plans and strategic transformational initiatives such that S&P Global Ratings-adjusted EBITDA improves; and -- Leverage approaches 3.5x and can sustain at that level. COLIANT SOLUTIONS: Files Chapter 11 Bankruptcy in Georgia --------------------------------------------------------- On February 12, 2025, CoLiant Solutions 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 $10 million and $50 million in debt owed to 100 and 199 creditors. The petition states funds will be available to unsecured creditors. About CoLiant Solutions Inc. CoLiant Solutions Inc. offers safety and security services to retailers and construction sites nationwide by installing security and fire alarm systems. Wal-Mart is the Debtor's largest client, accounting for 50% of its business. Other customers include construction contractors, food and beverage retailers like Duncan Brands, and department stores like Dillard's. The Debtor has physical office locations in Springfield, Illinois, Bentonville, Arkansas, Modesto, California, and Buford, Georgia. CoLiant Solutions Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-51509) on February 12, 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: William Rountree, Esq. ROUNTREE, LEITMAN, KLEIN & GEER, LLC 2987 Clairmont Road Suite 350 Altanta GA 30329 Tel: 404-584-1238 Email: wrountree@rlkglaw.com COMMUNITY HEALTH: CastleKnight Entities Hold 6.8% Equity Stake -------------------------------------------------------------- CastleKnight Master Fund LP disclosed in a Schedule 13G/A filed with the U.S. Securities and Exchange Commission that as of December 31, 2024, it and its affiliated entities -- CastleKnight Fund GP LLC, CastleKnight Management LP, CastleKnight Management GP LLC, Weitman Capital LLC, and Manager Aaron Weitman -- beneficially owned 9,401,740 shares of Community Health Systems Inc.'s common stock, representing 6.8% of the shares outstanding. CastleKnight Master Fund LP may be reached at: Maples Corporate Services Limited P.O. Box 309 Ugland House Grand Cayman KY1-1104 Cayman Islands Tel: 212-852-6300 A full-text copy of CastleKnight's SEC Report is available at: https://tinyurl.com/3d7mt9fj About Community Health Systems Inc. Community Health Systems, Inc. -- http://www.chs.net/-- is a publicly traded hospital company and an operator of general acute care hospitals in communities across the country. Its affiliates provide healthcare services, developing and operating healthcare delivery systems in 40 distinct markets across 15 states. For the year ended December 31, 2023, the net loss attributable to Community Health Systems, Inc. stockholders was $133 million, compared to net income of $46 million for the same period in 2022. As of June 30, 2024, the Company had $14.4 billion in total assets, $15.3 billion in total liabilities, $324 million in redeemable noncontrolling interests in equity of consolidated subsidiaries, and $1.2 billion in total stockholders' deficit. * * * Egan-Jones Ratings Company on January 23, 2025, maintained its 'CCC+' foreign currency and local currency senior unsecured ratings on debt issued by Community Health Systems, Inc. In August 2024, S&P Global Ratings raised its rating on Community Health Systems Inc. to 'CCC+' from 'SD' (selective default). At the same time, S&P also raised its ratings on the senior unsecured notes to 'CCC-' from 'D'. The outlook is negative, reflecting the risk of further distressed exchanges in the intermediate future despite credit metrics potentially improving in 2024. COMPAC USA: Seeks to Hire Barakat + Bossa as Special Counsel ------------------------------------------------------------ Compac USA Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Barakat + Bossa PLLC as special business and business dispute counsel. The firm will represent the Debtor in connection with the Chapter 11 Case. The Debtor faces substantial litigation in state courts in California related to the Debtor's business operations and business practices, specifically with respect to the Debtor's products. The firm's current hourly rates are: Partners and senor of counsel $630 to $730 Associate Attorneys $325 to $500 Law Clerks and Paralegals $150 to $250 Giacomo Bossa, Esq., a partner of Barakat + Bossa, assured the court that he and his firm do not represent any interest adverse to the estate and are "disinterested persons" within the meaning of 11 U.S.C. 101(14). The firm can be reached through: Giacomo Bossa, Esq. Barakat + Bossa PLLC 201 Alhambra Cir Ste 1060 Coral Gables, FL 33134-5150 Telephone: (305) 444-3114 Email: gbossa@b2b.legal About Compac USA Inc. Compac USA Inc. is a Florida entity incorporated in 2002 to market and sell Compac stone products. The Debtor specializes in obsidian, terrazzo, and quartz surfaces for architecture and design. The Debtor maintains showrooms in Miami, Florida and New York, New York. Compac USA sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-23372) on December 21, 2024. Francisco A. Sanchis-Brines, president of Compac USA, signed the petition. As of November 24, 2024, Compac USA reported total assets of $5,342,926 and total liabilities of $739,872. Judge Corali Lopez-Castro handles the case. The Debtor is represented by Joseph A. Pack, Esq. at Pack Law. COMPREHENSIVE INTERVENTIONAL: Files Chapter 11 Bankruptcy --------------------------------------------------------- On February 13, 2025, Comprehensive Interventional Care Centers PLLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Arizona. 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 Comprehensive Interventional Care Centers PLLC Comprehensive Interventional Care Centers PLLC 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. Comprehensive Interventional Care Centers PLLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No.25-01225) on February 13, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. The Debtor is represented by: 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 COOPER-STANDARD: President Reports Beneficial Ownership ------------------------------------------------------- Shannon B. Quinn, President, ISG at Cooper-Standard Holdings Inc., disclosed in a Form 3 filed with the U.S. Securities and Exchange Commission that as of February 6, 2025, she beneficially owns 1,074 shares of common stock directly, along with 3,251 restricted stock units (RSUs) granted on March 1, 2023, 4,676 RSUs granted on February 14, 2024, and 4,876 performance stock units (PSUs) granted on March 1, 2023, all subject to vesting conditions. A full-text copy of Ms. Quinn's SEC Report is available at: https://tinyurl.com/zda7s5m5 About Cooper-Standard Cooper-Standard Holdings Inc. (www.cooperstandard.com), headquartered in Northville, Mich., with locations in 21 countries, is a global supplier of sealing and fluid handling systems and components. Utilizing the Company's materials science and manufacturing expertise, the Company creates innovative and sustainable engineered solutions for diverse transportation and industrial markets. * * * S&P Global Ratings revised its outlook on U.S.-based Cooper-Standard Holdings Inc. to positive from negative and affirmed our 'CCC+' Company credit rating. S&P said, "At the same time we affirmed our 'CCC+' issue-level on the senior secured first-lien notes due in 2027; the recovery ratings are unchanged at '4' (30%-50%; rounded estimate: 45%). We affirmed our 'CCC-' issue-level rating on the senior secured third-lien notes due in 2027; the recovery ratings are unchanged at '6' (0%-10%; rounded estimate: 0%). We also affirmed our 'CCC-' issue-level rating on the company's senior unsecured notes; the recovery ratings are unchanged at '6' (0%-10%; rounded estimate: 0%). "The positive outlook reflects the potential that we could raise our ratings within the next 12 months if we anticipate the company to further improve its earnings and free cash flow generation even as we expect capex to increase in the longer term." CORBETT BUILDINGS: Hires Keller Williams Real Estate as Broker -------------------------------------------------------------- Corbett Buildings and Holdings LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to hire Keller Williams Hudson Valley United as realtor. The Debtor needs a broker to market and sell the real property located at 54 Union Street, Montgomery, New York. The broker will receive a commission of 5 percent of the property's gross sale price and agrees that one half of this may be apportioned to a buyer's broker. Marcy Cleveland, a real estate salesperson at Keller Williams Hudson Valley United, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Marcy Cleveland 9 Bert Crawford Rd, Middletown, NY 10940 Phone: (845) 421-0809 About Corbett Buildings and Holdings LLC Corbett Buildings and Holdings LLC operates as a single-asset real estate company based in Montgomery, NY, focusing on a partially constructed single-family residence in a historic district. Corbett Buildings and Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-35073) on January 24, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $500,000 and $1 million. The Debtor is represented by Michelle L. Trier, Esq. at Genova, Malin & Trier, LLP. CORNER LOUNGE 1: Seeks to Hire Juan Pedrozo as Accountant --------------------------------------------------------- The Corner Lounge 1, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Juan Pedrozo to perform accounting work. Mr. Pedrozo will render these services: a. prepare the Debtor's monthly operating reports and required federal, state and city income and sales tax returns; b. maintain payroll accounts; c. review bank statements and payment of bills; and d. render accounting advice. Mr. Pedrozo's current billing rate is $55 per hour. Mr. Pedrozo's received a pre-petition retainer in the amount of $600. Mr. Pedrozo assured the court that he is a "disinterested person" within the meaning of 11 U.S.C. 101(14). The firm can be reached through: Juan Pedrozo Mobile: (347) 961-0947 Email: jpedrozo@moneymanbizsolutions.com About The Corner Lounge 1 The Corner Lounge 1, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-11304) on Aug. 15, 2023, with up to $1 million in both assets and liabilities. Romuald Hein, managing member, signed the petition. Judge John P. Mastando III oversees the case. Ronald I. Paltrowitz, Esq., represents the Debtor as legal counsel. COTIVITI INC: Moody's Affirms 'B2' CFR & Alters Outlook to Negative ------------------------------------------------------------------- Moody's Ratings affirmed Cotiviti, Inc.'s B2 corporate family rating and B2-PD probability of default rating. Moody's assigned a B2 rating to the company's proposed $2 billion senior secured term loan due 2032. The company's existing senior secured credit facilities were affirmed at B2. The outlook has been changed to negative from stable. Cotiviti is a provider of healthcare data analytics and services to healthcare payors and providers. Proceeds from the proposed $2 billion term loan along with cash from the balance sheet and new common equity from affiliates of KKR & Co. Inc. ("KKR") and Veritas Capital ("Veritas") will fund the acquisition of Edifecs, a health data management platform, and pay related fees and expenses. The additional $2 billion in debt results in pro forma debt to EBITDA around 6.9x as of December 31, 2024, which is higher than the company's financial leverage following its recapitalization in 2024 at 6.3x, indicating a more aggressive financial policy towards financial leverage tolerance. Governance considerations, including Moody's anticipation for aggressive financial strategies as demonstrated by the swift re-leveraging of the company, were a key driver of the outlook revision. All ratings are subject to Moody's review of the final terms and conditions of the proposed financing. RATINGS RATIONALE Cotiviti's B2 CFR reflects Moody's expectations of high single digit revenue growth in 2025, driven by rising healthcare spending and the increasing complexity of the US healthcare payments system and for leverage reduction with debt to EBITDA approaching 6.0x by the end of 2026. The acquisition of Edifecs complements Cotiviti's business profile within the healthcare analytics space and offers differentiation as a software platform versus Cotiviti's clinical and financial SaaS model. All financial metrics cited reflect Moody's standard adjustments. The credit profile is supported by the company's very high profitability rates, with above average EBITDA margins, reflecting its strong market position as a healthcare technology and solutions platform to healthcare payers and providers. Moody's anticipate Cotiviti's large revenue scale in pre- and post- medical-claims-accuracy solutions will experience tail winds from higher claim volumes due to the aging US population and related increased enrollment volumes in Medicare Advantage plans by seniors. Cotiviti has a good size by revenue, strong EBITDA margins, long tenured customers and high customer retention rates estimated at 99% that are supported by good barriers to entry, including proprietary algorithms and entrenching/interfacing technology with customer platforms. Moody's consider the healthcare payments integrity market to be highly competitive and includes large players with significant financial resources. While customer concentration is high, Moody's recognize that nearly half of people in the US are insured by five insurers, making customer concentration a consequence of the industry concentration. Moreover, the largest clients tend to remain for over a decade, with each of them typically having numerous, discrete contracts outstanding, with multiple end-dates. The acquisition of Edifecs is expected to broaden Cotiviti's customer base even further. The company has a good liquidity profile, supported by Moody's expectations for strong free cash flow of around $250 million, as earnings grow in 2025, $130 million of cash pro forma for the Edifecs acquisition and an undrawn $600 million revolver expiring in 2029. The transaction diminishes the company's liquidity profile, given the use of cash. The revolver is subject to a maximum 10x net first lien leverage covenant when revolver utilization is at least 50%. Moody's expect that the company would remain well in compliance with the covenant if it is tested over the next 12 to 15 months. The B2 senior secured credit facilities rating is the same as the B2 CFR given the facilities represent the preponderance of the company's debt, The credit facility has a first priority security interest in substantially all assets of the borrower. The negative rating outlook reflects Moody's concern that if Cotiviti does not efficiently execute on its acquisition integration with Edifecs, debt to EBITDA could remain above 6.5x in 2026. The outlook also anticipates that Cotiviti could maintain an acquisitive growth strategy that may include issuing incremental debt. The outlook could be revised to stable should Moody's anticipate that the company will de-lever and maintain debt to EBITDA around 6.0x over the next 12-18 months. 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 debt to EBITDA leverage is sustained below 5x, EBITDA less capex to interest approaches 2x and if free cash flow as a percentage of debt is sustained in the high single-digits. A ratings downgrade could result if Moody's anticipate debt to EBITDA will be sustained above 6.5x, EBITDA less capex to interest below 1.25x, if revenue or profitability decline, of if free cash flow is lower than Moody's expect. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. Cotiviti, Inc., headquartered in, South Jordan, Utah, provides data analytics and services to healthcare insurance payors and healthcare providers that enable those customers to drive financial performance. Financial sponsors KKR and Veritas are co-owners. The company generated approximately $1.8 billion of revenue in 2024. CREDIT ACCEPTANCE: Moody's Rates New $400MM Unsecured Notes 'Ba3' ----------------------------------------------------------------- Moody's Ratings has assigned a Ba3 rating to Credit Acceptance Corporation's (CAC) proposed $400 million senior unsecured notes due 2030. The proceeds of the issuance will be used primarily to repay the firm's outstanding $400 million senior unsecured notes due in 2026. RATINGS RATIONALE The senior unsecured notes' Ba3 rating is based on CAC's Ba3 corporate family rating, which reflects the firm's strong historical profitability, relatively strong capitalization, and long track record of operations in the US subprime auto lending market. At the same time, the rating reflects the regulatory and credit risks inherent to subprime lending, and the firm's reliance on secured funding sources. The notes' rating also reflects their position within CAC's debt capital structure. CAC's stable outlook reflects Moody's expectation that CAC will maintain strong capitalization and liquidity with solid profitability over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Given the pending resolution of a lawsuit by the CFPB and the NY Attorney General against CAC, an upgrade is unlikely at this time. Over time and absent a significantly adverse outcome from that case, CAC's ratings could be upgraded if the firm is able to maintain its competitive position in the US subprime auto lending market and demonstrate stable asset quality, particularly with respect to its growing purchased loan program, while maintaining strong profitability and debt to equity at or below 2.5x (on a CECL-adjusted basis). CAC's ratings could be downgraded if debt to equity increases above 3.0x (on a CECL-adjusted basis), or if profitability falls and remains below 6% as measured by net income to average managed assets or if asset quality deteriorates. CAC's senior unsecured debt ratings could also be downgraded if the proportion of senior unsecured debt relative to recourse secured debt were to decline, increasing the risk of losses for these creditors due to lower protection from reduced debt volume. The ratings could also be downgraded if the firm is subject to significantly adverse legal or regulatory rulings. The principal methodology used in this rating was Finance Companies published in July 2024. CROSBY US: Moody's Puts 'B2' CFR Under Review for Upgrade --------------------------------------------------------- Moody's Ratings placed the ratings of Crosby US Acquisition Corp. (Kito Crosby) on review for upgrade, including the B2 corporate family rating, B2-PD probability of default rating and B2 senior secured first lien bank credit facilities rating. Previously, the outlook was stable. This action follows the announcement that Columbus McKinnon Corporation (Ba3 RUR) had entered into a definitive agreement to acquire Kito Crosby for $2.7 billion in cash. The transaction is expected to be funded with $2.6 billion in committed debt financing along with a $0.8 billion perpetual convertible preferred equity investment from CD&R. The transaction is expected to close later this calendar year, subject to regulatory approvals and satisfactory completion of customary closing conditions. RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's placed the ratings of Kito Crosby on review for upgrade because as a result of the acquisition by Columbus McKinnon, the company will become part of a higher rated, well-capitalized entity with greater scale and considerable synergy opportunities that are expected to be realized over the next three years. There is a change of control provision in Kito Crosby's existing debt, hence Moody's expect it will be repaid in connection with the transaction. If the debt is repaid, Moody's will withdraw the ratings of Kito Crosby upon the close of the transaction. Kito Crosby is a global market leader in designing, manufacturing and supporting safe and reliable lifting and securement solutions. Customers vary across multiple end markets, from industrials to aquaculture and the company has a specialized network of distributor relationships in the industry. The principal methodology used in these ratings was Manufacturing published in September 2021. D & C GLOBAL: Sec. 341(a) Meeting of Creditors on March 3 --------------------------------------------------------- On February 4, 2025, D & C Global Investment Group 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. A meeting of creditors under Section 341(a) to be held on March 3, 2025 at 12:00 PM via Telephone conference. To attend, Dial 888-902-9750 and enter participation code 9635734. About D & C Global Investment Group LLC D & C Global Investment Group LLC is a limited liability company. D & C Global Investment Group LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-51162) on February 4, 2025. In its petition, the Debtor reports estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. DESTINATIONS TO RECOVERY: Available Cash and Income to Fund Plan ---------------------------------------------------------------- Destinations To Recovery, LLC, filed with the U.S. Bankruptcy Court for the Central District of California a Plan of Reorganization for Small Business dated February 6, 2025. The Debtor is a limited liability company. Since 2012, the Debtor has been in the business of providing dual-diagnosis treatment related to mental health and/or addiction. The Debtor operates treatment facilities for children ages 12 to 17, including five residential facilities ("Residences"), one partial hospitalization program (PHP) facility for day treatment, and one intensive outpatient (IOP) facility. Currenly, three of the five Residences are operating. This Plan of Reorganization proposes to pay crediotrs of the Debtor from cash on hand and income from ongoing operations. The final Plan payment is expected to be paid on May of 2023. Class 3 is impaired and consists of all general, non-priority unsecured creditors. Each holder of a Class 3 claim shall be paid a pro rata share of the Debtor's disposable income, beginning after secured and priority claims have been paid in full. Class 4 consists of equity security holders of the Debtor. All outstanding equity interests in the Debtor will continue to remain as is as of the effective date of the Plan. The Debtor intends to use revenue from the operation of the business to fund the plan. The Debtor is making changes to operations to drastically reduce overhead which will increase revenue that can be devoted to plan implementation. A full-text copy of the Plan of Reorganization dated February 6, 2025 is available at https://urlcurt.com/u?l=Dy7ROP from PacerMonitor.com at no charge. Counsel to the Debtor: Eric Bensamochan, Esq. The Bensamochan Law Firm Inc 9025 Wilshire Blvd, Ste 215 Beverly Hills, CA 90211-1825 Phone: (818) 574-5740 Fax: (818) 961-0138 Email: eric@eblawfirm.us About Destinations to Recovery Destinations to Recovery, LLC, operates an IPO and PHO rehabilitation center located at 20951 Burbank Blvd., Woodland Hills, Calif. Destinations to Recovery filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 24-11877) on November 8, 2024, with up to $1 million in both assets and liabilities. Mark Sharf, Esq., a practicing attorney in Los Angeles, serves as Subchapter V trustee. Judge Martin R. Barash oversees the case. The Debtor is represented by Eric Bensamochan, Esq., at The Bensamochan Law Firm, Inc. Tamar Terzian is the patient care ombudsman appointed in the Debtor's case. DOVGAL EXPRESS: Gets Interim OK to Use Cash Collateral ------------------------------------------------------ Dovgal Express, Inc. got the green light from the U.S. Bankruptcy Court for the Northern District of Illinois to use its lenders' cash collateral. The interim order signed by Judge Timothy Barnes authorized the company to use cash collateral during the period from Jan. 29 to March 7 to pay the expenses set forth in its budget. The budget projects total expenses of $32,000. As protection for the use of their cash collateral, the lenders were granted replacement liens on their collateral and will receive payments in accordance with the budget. The next hearing is scheduled for March 5. About Dovgal Express Inc. Dovgal Express, Inc. is a transportation services provider specializing in dry van truckload, less-than-truckload, and refrigerated shipments. Dovgal Express sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-18991) on Dec. 20, 2024, with $1 million to $10 million in assets and $10 million to $50 million in liabilities. Oleksandr Dovgal, president of Dovgal Express, signed the petition. Judge Timothy A. Barnes handles the case. The Debtor is represented by O. Allan Fridman, Esq., at the Law Office of Allan Fridman. DRIVEHUB AUTO: Andrew Layden Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 21 appointed Andrew Layden as Subchapter V trustee for DriveHub Auto Inc. Mr. Layden will be paid an hourly fee of $400 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Layden declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Andrew Layden 200 S. Orange Avenue, Suite 2300 Orlando, Florida 32801 Telephone: 407-649-4000 Email: alayden@bakerlaw.com About DriveHub Auto Inc. DriveHub Auto Inc. is a used car dealership located in Orlando, Fla., offering pre-owned vehicles to customers. DriveHub Auto filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 25-00594) on January 27, 2025, listing between $1 million and $10 million in both assets and liabilities. Judge Grace E. Robson handles the case. The Debtor is represented by: Daniel A. Velasquez, Esq. Latham, Luna, Eden & Beaudine, LLP 201 S. Orange Avenue, Suite 1400 Orlando, FL 32801 Tel: (407) 481-5800 Fax: (407) 481-5801 Email: dvelasquez@lathamluna.com DTH 215 VENTURE: Amends Unsecured Claims Pay Details ---------------------------------------------------- DTH 215 Venture, LLC, submitted a Third Amended Disclosure Statement describing Third Amended Plan of Reorganization dated February 6, 2025. The Plan was strategically crafted to optimize the value of the Debtor's current assets and to complete construction of the Debtor's Project as quickly and efficiently as possible to increase the value of the Project and generate future reoccurring revenue. The Debtor has also considered the public impact of its Project on the Henderson community. Debtor is proposing a Plan that will provide a positive outcome for the community in a relatively short amount of time while simultaneously enhancing the Project's value. The Debtor obtained term sheets from proposed lenders interested in providing debtor in-possession financing to provide needed funding to pay Gillett under the Gillett Settlement Order, to complete construction of the Project, and to pay for ongoing administrative and operating expenses until the Project is completed and starts earning revenue. On December 13, 2024, the Debtor filed its DIP Motion which sought approval of debtor-in-possession financing to be provided by ACRES, secured by a senior super-priority lien against all of the Debtor's assets, including the Project and related fixed assets, but excluding avoidance actions or proceeds of avoidance actions, in the principal maximum sum of $27,880,000 ("DIP Facility"). On January 27, 2025, the Court entered its order granting the DIP Motion ("DIP Order"). Under the DIP Loan Agreement and DIP Order, the Debtor will be required to meet certain milestones, including obtaining confirmation of a plan of reorganization acceptable to ACRES by April 2, 2025. Under the DIP Order, the Debtor is authorized to use a portion of the DIP Facility proceeds to pay Gillett $10,839,222.97 ("Contractor Payment") pursuant to the Gillett Settlement Order for past work on the Project. The DIP Facility will also fund the remaining cost for Gillett to complete construction of the Project pursuant to the Gillett Settlement Order. Class 4 consists of Unsecured Trade Claims of less than $20,000. The Allowed Class 4 claims each will accrue interest at 4% per annum from the Petition Date until paid in full. For administrative convenience, the Debtor shall pay the allowed Class 4 claims in one lump sum from operating revenues or new loan proceeds on or before March 1, 2026. If the Debtor sells the Project, the Debtor shall pay allowed Class 4 claims on a pro rata basis with Class 5 claims from the net sale proceeds remaining after payment of the DIP Facility, the Allowed ACRES Claim and all other allowed secured and higher priority claims. Remaining unpaid Allowed Class 4 claim amounts, if any, shall be discharged to the extent allowed under the Bankruptcy Code. If insufficient sale proceeds exist to pay Allowed Class 4 and 5 claims in full, no distribution shall be made to Class 6 equity holders. Accordingly, the Class 4 claims are impaired under the Plan. Class 5 consists of Unsecured Claims. The Allowed Class 5 claims will accrue interest at 4% per annum from the Petition Date until paid in full and shall be paid by the Debtor in quarterly installments of $200,000 starting January 1, 2027, and continuing on the first day of each calendar quarter thereafter until paid in full, with each quarterly payment to be distributed on a pro rata basis among all allowed Class 5 claims. If the Debtor sells the Project, the Debtor shall pay allowed Class 5 claims on a pro rata basis with allowed Class 4 claims from the net sale proceeds remaining after payment of the DIP Facility, the Allowed ACRES claim and all other allowed secured and higher priority claims. Remaining unpaid allowed Class 5 claim amounts, if any, shall be discharged to the extent allowed under the Bankruptcy Code. If insufficient sale proceeds exist to pay allowed Class 4 and allowed Class 5 claims in full, no distribution shall be made to Class 6 equity holders. Accordingly, Class 5 claims are impaired under the Plan. The Debtor intends to fund its obligations under the Plan from a combination of funds borrowed under the DIP Facility, leasing revenues, permanent financing, and/or sale proceeds. A full-text copy of the Third Amended Disclosure Statement dated February 6, 2025 is available at https://urlcurt.com/u?l=PGmq4k from PacerMonitor.com at no charge. Attorneys for the Debtor: Stephen R. Harris, Esq. Harris Law Practice LLC 850 E. Patriot Blvd., Suite F Reno, NV 89511 Tel: (775) 786-7600 About DTH 215 Venture, LLC DTH 215 Venture is the owner of certain real property located at 215 S. Water Street, Henderson, Nevada 89015-7226. DTH 215 Venture, LLC, in Dexter, MO, filed its voluntary petition for Chapter 11 protection (Bankr. D. Nev. Case No. 24-12829) on June 5, 2024, listing as much as $50 million to $100 million in both assets and liabilities. Natalie Riley as authorized agent, signed the petition. Judge Natalie M Cox oversees the case. HARRIS LAW PRACTICE LLC serves as the Debtor's legal counsel. EAST ORANGE SD: Moody's Withdraws 'Ba1' Issuer Rating ----------------------------------------------------- Moody's Ratings has withdrawn East Orange School District, NJ's Ba1 issuer rating due to lack of sufficient information. Previously, the rating was on review with direction uncertain. This rating action concludes the review with direction uncertain initiated on November 20, 2024. The district had $44.9 million in debt outstanding at the end of FY 2024. RATINGS RATIONALE Moody's have decided to withdraw the rating because Moody's believe Moody's have insufficient or otherwise inadequate information to support the maintenance of the rating. PROFILE East Orange School District, NJ serves the City of East Orange (A2) in Essex County, NJ (Aa1 stable). The district provides pre-K-12 education to approximately 9,200 students. EASTSIDE DISTILLING: Beeline Labs Secures Funding for MagicBlocks ----------------------------------------------------------------- Beeline Labs, Inc., a wholly-owned subsidiary of Eastside Distilling, Inc. (d/b/a Beeline Holdings) (NASDAQ: BLNE), announced a major milestone: the first capital raise for MagicBlocks. This marks a pivotal moment for the Company as it continues to shape the future of AI-driven sales solutions in the mortgage industry and expands its reach to a broader global audience across multiple industries. Revolutionizing AI-Powered Sales MagicBlocks has rapidly emerged as a market leader in deploying highly customizable AI sales agents for mortgage origination. The Company has also secured new customer trials across various industries demonstrating its technology's adaptability and effectiveness. Built on an advanced ensemble of language models and proprietary software, MagicBlocks enables businesses to convert leads into sales more efficiently—at a higher success rate and lower cost. The Company's founders, Jay Stockwell and Sean Clark, along with Beeline, retain equity ownership, ensuring a long-term partnership focused on ongoing innovation. "Building a virtual AI sales department that stays on-brand, understands financial nuances, and navigates complex sales processes requires deep expertise," said Jay Stockwell, Beeline co-founder and founder of MagicBlocks. "We've developed something truly special—a platform that empowers companies to generate more business with greater efficiency." Beeline Labs's CEO and co-founder, Nick Liuzza, added: "The MagicBlocks platform is live and ready for companies to build and customize their own AI-driven sales strategies. This milestone is a huge leap forward for Beeline Labs, as we expand our AI-powered SaaS offerings, driving recurring B2B revenue. Beeline isn't just a mortgage innovator—we're a technology company at our core." Liuzza also highlighted Beeline Labs' expanding portfolio, noting, "With BlinkQC set to generate revenue in March, MagicBlocks marks our second major SaaS opportunity in the mortgage tech space—already driving results." Plug-and-Play AI Sales Departments for Any Industry What sets MagicBlocks apart is its ability to let companies quickly deploy their own AI sales departments—without having to build custom software. With simple natural language instructions, businesses can go live at a fraction of the cost of building their own AI Agent, using a flexible monthly subscription model based on features and usage. This capital raise solidifies MagicBlocks as an independent company, while Beeline retains a significant equity stake and long-term licensing rights. MagicBlocks' technology is also embedded within Beeline's home loan customer experience via Bob, the mortgage industry's first AI chatbot in Beeline's Bob AI Sales Strategy, ensuring continuous innovation within Beeline's ecosystem. Jess Kennedy, Beeline Labs's Chief Operating Officer, emphasized the impact: "MagicBlocks has completely transformed our go-to-market strategy at a crucial time for the mortgage industry. Delivering high-level service while reducing costs is more important than ever, and MagicBlocks gives us a powerful advantage." With this funding, MagicBlocks is positioned to accelerate AI-driven sales innovation across multiple sectors, redefining how businesses engage and convert leads in an evolving digital landscape. Beeline Labs Continues to Drive AI Innovation MagicBlocks is the second major product launch from Beeline Labs, following the recent unveiling of BlinkQC—an AI-powered mortgage Quality Control (QC) solution designed to streamline compliance and auditing for lenders. About Beeline Labs and MagicBlocks Beeline Labs is a wholly owned SaaS company developing cutting-edge mortgage software designed to lower costs, increase efficiency, and create better outcomes for mortgage and title consumers and investors. Beeline Labs is committed to rolling out new products and strategic partnerships. To learn more about the company, visit MagicBlocks. About Beeline Holdings Beeline Holdings is a technology-driven mortgage lender and title provider building a fully digital, AI-powered platform that simplifies and accelerates the home financing process. Headquartered in Providence, RI, Beeline Financial Holdings, Inc. is dedicated to transforming the mortgage industry through innovation and customer-focused solutions. It is a wholly-owned subsidiary of Beeline Holdings and owns Beeline Labs. About Eastside Distilling Headquartered in Portland, Oregon, Eastside Distilling, Inc. (d/b/a Beeline Holdings) has been producing craft spirits in Portland, Oregon since 2008. The Company is distinguished by its highly decorated product lineup that includes Azunia Tequilas, Burnside Whiskeys, Hue-Hue Coffee Rum, and Portland Potato Vodkas. All Eastside spirits are crafted from natural ingredients for the highest quality and taste. Eastside's Craft Canning + Printing subsidiary is one of the Northwest's leading independent mobile canning, co-packing, and digital can printing businesses. The Woodlands, Texas-based M&K CPAS, PLLC, the Company's former auditor, issued a "going concern" qualification in its report dated April 1, 2024, citing that the Company suffered a net loss from operations and used cash in operations, which raises substantial doubt about its ability to continue as a going concern. Eastside Distilling incurred a net loss of $7.5 million during the year ended December 31, 2023. As of June 30, 2024, Eastside Distilling had $16,589,000 in total assets, $18,523,000 in total liabilities, and $1,934,000 in total stockholders' deficit. EATSTREET INC: Business Operations & Available Cash to Fund Plan ---------------------------------------------------------------- EatStreet, Inc., filed with the U.S. Bankruptcy Court for the Western District of Wisconsin a Plan of Reorganization under Subchapter V dated February 6, 2025. The Debtor was first formed in the State of Wisconsin on January 1, 2012, and subsequently converted into a corporation incorporated in the State of Delaware on November 13, 2015. EatStreet is the largest independent online and mobile food ordering delivery service in the United States, based in Madison, Wisconsin. The company provides online food ordering and contracted food delivery services to general consumers. The Debtor has a large number of stockholders, as further described on the List of Security Holders, filed with the Court. The Debtor is governed by a Board of Directors, which consists of Steve Anastasi, Gregory Robinson, and Pieter Welten. Steve Anastasi is the acting CEO of the Debtor and will remain in that role after confirmation of the Plan. The Debtor made the decision to file this Case and seek protection under Subchapter V of Chapter 11. The Debtor's Plan proposes to pay Administrative Claimants and Priority Claims in full, assume and reject certain of its contracts, and pay Unsecured Claims pursuant to the Debtor's 3-year cash flow Projections. The Debtor's Plan proposes distributions over a 3-year period in the aggregate amount of $600,000 to Allowed Pre-Petition Claims. The Debtor estimates that after anticipated reductions in the Priority Claims filed in the Case, approximately $400,000 would be paid to Holders of Allowed Unsecured Claims. Such distributions would occur at the end of each calendar year in the following amounts: $100,000 (2025); $200,000 (2026); $300,000 (2027) (together the "Reorganization Payments") which will be paid out on a Pro Rata Basis first to Allowed Priority Claims and then to Allowed Non-Priority Claims. However, to the extent that cash collateral currently held by Travelers can be recovered by the Debtor sooner, such funds would be used to pay a portion of the anticipated Reorganization Payments immediately upon recovery of such money. Class 3 consists of Allowed Unsecured Claims. Allowed Unsecured Claims in Class 3 are impaired. Each Claim in Class 3 shall receive, without interest, a Pro Rata Share of the Reorganization Payments after payment in full of all Allowed Priority Claims, to be distributed by the Plan Proponent as set forth in the Projections. The treatment afforded to Class 3 Claims pursuant to this section shall fully discharge all Class 3 Claims as of the Effective Date of the Plan, provided that the Plan is confirmed under Section 1191(a) of the Bankruptcy Code. In the event the Plan is confirmed under Section 1191(b) of the Bankruptcy Code, each Class 3 Claim shall only be discharged upon payment in full of such Creditor's Pro Rata Share of the Reorganization Payments (less amounts distributed to Priority Claims). Class 4 consists of the Holders of Allowed Equity Interests. Holders in Class 4 that hold Allowed Equity Interests in the Debtor are unimpaired by the Plan. Holders of Allowed Equity Interests shall retain their interests. Cash necessary to fund payments shall be from the Reorganization Fund and the Debtor's normal business operations and cash on hand as of the Effective Date. A full-text copy of the Plan of Reorganization dated February 6, 2025 is available at https://urlcurt.com/u?l=ocofYs from PacerMonitor.com at no charge. Attorneys for the Debtor: Justin M. Mertz, Esq. Christopher J. Schreiber, Esq. Davis W. Sullivan, Esq. MICHAEL BEST & FRIEDRICH LLP 790 N. Water St., Ste. 2500 Milwaukee, WI 53202 Telephone: (414) 271-6560 Facsimile: (414) 277-0656 Email: jmmertz@michaelbest.com cjschreiber@michaelbest.com davis.sullivan@michaelbest.com About EatStreet Inc. EatStreet Inc. is an independent online and mobile food ordering delivery service in the United States, based in Madison, Wisconsin. The Company provides online food ordering and contracted food delivery services to general consumers. EatStreet Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wis. Case No. 24-12061) on Oct. 11, 2024. In the petition filed by Steve Anastasi, as CEO, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Honorable Bankruptcy Judge Catherine J. Furay handles the case. The Debtor is represented by Justin M. Mertz, Esq. at Michael Best & Friedrich LLP. EMPLOYBRIDGE LLC: $925MM Bank Debt Trades at 40% Discount --------------------------------------------------------- Participations in a syndicated loan under which Employbridge LLC is a borrower were trading in the secondary market around 60.3 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $925 million Term loan facility is scheduled to mature on July 19, 2028. The amount is fully drawn and outstanding. Employbridge, LLC operates as an industrial staffing company. The Company offers temporary associates in manufacturing, logistics, warehousing, and contact centers. EPIC SWEETS: Unsecureds to Get Share of Income for 36 Months ------------------------------------------------------------ Epic Sweets Group, LLC d/b/a Five O-Donut Co. filed with the U.S. Bankruptcy Court for the Middle District of Florida a Plan of Reorganization for Small Business dated February 4, 2025. The Debtor was founded in 2017 and grew rapidly to six locations in Sarasota, Manatee and Pinellas Counties. Although the business did relatively well during the pandemic, it had to shut down its Pinellas Country location and became engaged in a lawsuit with the landlord. The debtor's principal, Christine Nordstom, had some health difficulties and hired a manager to run the business while she focused on her health. The interim manager significantly increased costs and reduced product quality and revenue shortfalls ensued. She sought new investors for a time, but those discussions were unfruitful and resulted in further financial harm to the business. Due to revenue shortfalls, and exorbitant short term loans with Square, Inc, eventually, the company fell behind in rent at its locations. In addition, the Debtor was hit hard by impact of Tropical Storm Debbie, and Hurricanes Helene and Milton in the Southwest Florida area which disrupted its business operations and caused damage to its Ringling Blvd. location. These combined factors made this Chapter 11 filing necessary. This Plan proposes to pay the creditors of the Debtor from future income of the Debtor. This Plan provides for five classes of secured claims; one class of priority unsecured claims; one class of unsecured non-priority claims; and one class for the equity interests of the Debtor. Non-priority unsecured creditors holding allowed claims will receive distributions from the Debtor's projected disposable income over the life of the Plan. This Plan also provides for the payment of administrative and priority claims in full. Class 3 consists of Non-Priority Unsecured Claims. Holders of allowed unsecured claims against the Debtor shall receive a pro rata share of a fund created by the Debtor's payment of its projected disposable income from operations for thirty-six months, with the first monthly payment commencing on the Distribution Date. Pro-rata means the entire amount of the fund divided by the entire amount owed to creditors with allowed claims in this class. Including the unsecured balance of the claim of the SBA, the total amount of the claims in this class is expected to be $1,020,603.60. The monthly net cash flow from operations payment during the 36-month payment period is projected to fluctuate between a range of $1,000.00 a month to $1,500.00 a month depending on the net cash flow of the Debtor and, therefore, the monthly payments will range from $1,000.00 a month to $1,500.00 a month, with higher payments anticipated in the winter season and lower payments anticipated in the summer season. Class 4 consists of Equity Interests. All Class 4 interests, upon the effective date, shall be modified so as to deprive the holders thereof of any rights in respect of the Debtor to any distribution upon liquidation of the company, or upon sale of all or substantially all the Debtor's assets, and shall be further modified to provide that no dividends shall be paid by reason of such equity interests. Such modification or limitation of equity interests shall remain effective until such time as all the payments contemplated to be made by the terms of the Plan have been made, at which time such modification or limitations shall be removed, and the holders of Class 4 interests shall retain in full such interests without further limitation or restriction. The Debtor shall retain its property, and operate its business, and the funds necessary for the satisfaction of creditors' claims shall be paid from the cash on hand, and from the future income of the Debtor, or from the sale of any of Debtor's assets as may be practical and necessary in order to make the payments required by the Plan. A full-text copy of the Plan of Reorganization dated February 4, 2025 is available at https://urlcurt.com/u?l=rorPo8 from PacerMonitor.com at no charge. Counsel to the Debtor: Benjamin G. Martin, Esq. 3131 S. Tamiami Trail, Suite 101 Sarasota, Florida 34239 (941) 951-6166 Email: skipmartin@verizon.net About Epic Sweets Group Epic Sweets Group, LLC is a confectionery company based in Sarasota, Fla., specializing in creating a variety of sweet treats. Epic Sweets Group sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06577) on November 6, 2024, with total assets of $207,887 and total liabilities of $1,259,563. Christine Nordstrom, managing member, signed the petition. Judge Roberta A. Colton handles the case. The Debtor is represented by Jonathan Bierfeld, Esq., at Martin Law Firm. ESSEX TECHNOLOGY: U.S. Trustee Appoints Creditors' Committee ------------------------------------------------------------ The U.S. Trustee for Region 8 appointed an official committee to represent unsecured creditors in the Chapter 11 case of Essex Technology Group, LLC. The committee members are: 1. Northpoint Trading, Inc. c/o Jacob Kassin 347 5th Avenue New York, NY 10016 917-386-5326 jacob@nptrd.com 2. Consolidated Clothiers, Inc. c/o Frank B. Mousa, Jr. 4535 McEwen Road Farmers Branch, TX 75244 214-686-6530 frank@consolidatedclothiers.com 3. V&S Crestwood Festival, LLC c/o Robert Waugh 11155 Red Run Blvd., Suite 320 Owings Mills, MD 21117 240-712-1219 bwaugh@amrealco.com 4. Manhattan Associates, Inc. c/o Constancia Carter 2300 Windy Ridge Pkwy, 10th Floor Atlanta, GA 30339 770-955-7070 ccarter@manh.com 5. Geodis Logistics, LLC c/o Brad Stremsterfer 1701 Executive Center Drive, Suite 333 Brentwood, TN 37207 314-917-3782 brad.stremsterfer@geodis.com 6. All State Brokerage, Inc. c/o Jim Szabo 4663 Executive Drive, Suite 12 Columbus, OH 43220 614-451-2333 jim.szabo@asbteam.com 7. Zinn Paducah, LLC c/o Thomas R. Zinn P.O. Box 1726 Bluffton, SC 29910 843-384-1451 tzinn@zamsc.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About 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. FIRST MODE: Committee Taps Dundon Advisers as Financial Advisor --------------------------------------------------------------- The official committee of unsecured creditors First Mode Holdings Inc. and its affiliate seeks approval from the U.S. Bankruptcy Court for the District of Delaware to hire Dundon Advisers LLC as its financial advisor. The firm will render these services: (a) assist in the analysis, review, and monitoring of the restructuring process, including, but not limited to, an assessment of the unsecured claims pool and potential recoveries for unsecured creditors; (b) develop a complete understanding of the Debtors' businesses and their valuations; (c) determine whether there are viable alternative paths for the disposition of the Debtors' assets from those currently or in the future proposed by any Debtor; (d) monitor and, to the extent appropriate, assist the Debtors in efforts to develop and solicit transactions that would support unsecured creditor recovery; (e) assist the Committee in identifying, valuing, and pursuing estate causes of action, including, but not limited to, relating to prepetition transactions, control person liability, and lender liability; (f) assist the Committee in analyzing, classifying, and addressing claims against the Debtors and in participating effectively in any effort in the Chapter 11 Cases to estimate (in any formal or informal sense) contingent, unliquidated, and disputed claims; (g) assist the Committee in identifying, preserving, valuing, and monetizing tax assets of the Debtors, if any; (h) advise the Committee in negotiations with the Debtors, certain of the Debtors' lenders, and third parties; (i) assist the Committee in reviewing the Debtors' financial reports; (j) assist the Committee in reviewing the Debtors' cost/benefit analysis with respect to the assumption or rejection of various executory contracts and leases; (k) review and provide analysis of the present and any subsequently proposed debtor-in-possession financing or use of cash collateral; (l) assist the Committee in evaluating and analyzing avoidance actions, including fraudulent conveyances and preferential transfers; (m) assist the Committee in investigating whether any unencumbered assets exist; (n) review and provide analysis of any proposed disclosure statement and chapter 11 plan and, if appropriate, assist the Committee in developing an alternative chapter 11 plan; (o) attend meetings and assist in discussions with the Committee, the Debtors, the secured lenders, the U.S. Trustee, and other parties in interest and professionals; (p) present at meetings of the Committee, as well as meetings with other key stakeholders and parties; (q) perform such other advisory services for the Committee as may be necessary or proper in these proceedings, subject to the aforementioned scope and not duplicative of services provided by other professionals; and (r) provide testimony on behalf of the Committee as and when may be deemed appropriate. The firm will be paid at these hourly rates: Principal $960 Managing Director & Senior Adviser $850 Senior Director $755 Director $700 Associate Directors $590 Senior Associate $485 Associates $350 The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Rick Wright, a managing director at Dundon Advisers LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Rick Wright Dundon Advisers LLC 10 Bank Street, Suite 1100 White Plains, NY 10606 Tel: (917) 881-9937 Email: rw@dundon.com About First Mode Holdings First Mode Holdings, Inc. is a multinational decarbonization company that designs, manufactures, and distributes hybrid battery systems and hydrogen fuel cell technologies for heavy duty mining and rail vehicles, along with hydrogen refueling equipment. First Mode Holdings, Inc. and Synchronous LLC filed for voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del., Lead Case No. 24-12794) on December 15, 2024. In their petitions signed by Colin Mark Freed as chief financial officer, the Debtors reported consolidated assets of $10 million to $50 million and consolidated liabilities of $50 million to $100 million. The Hon. Judge Karen B. Owens oversees the cases. The Debtors tapped Young Conaway Stargatt & Taylor, LLP, as bankruptcy counsel and Latham & Watkins LLP as bankruptcy co-counsel. PJT Partners serves as investment banker to the Debtors, while M3 Partners LP acts as financial advisor. Omni Agent Solutions Inc is the claims and noticing agent for the Debtors. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of First Mode Holdings, Inc. and Synchronous, LLC. FIRST MODE: Committee Taps McDermott Will & Emery as Counsel ------------------------------------------------------------ The official committee of unsecured creditors First Mode Holdings Inc. and its affiliate seeks approval from the U.S. Bankruptcy Court for the District of Delaware to hire Will & Emery LLP as its counsel. The firm will render these services: (a) advise the Committee regarding its rights, powers, and duties in the Chapter 11 Cases; (b) assist and advise the Committee in its consultations and negotiations with the Debtors and other parties in interest in connection with the administration of the Chapter 11 Cases; (c) solicit information from and provide information to the Debtors' unsecured creditors as a group; (d) assist the Committee in analyzing the claims of the Debtors' creditors and the Debtors' capital structure and negotiating with holders of claims against and interests in the Debtors; (e) assist the Committee in its investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtors and their insiders and of the operation of the Debtors' businesses; (f) assist the Committee in its analysis of, and negotiations with the Debtors and other parties concerning, matters related to, among other things, the assumption or rejection of executory contracts and unexpired leases, the sale or other disposition of property of the Debtors' estates, the financing of other transactions, and the terms of one or more plans of reorganization or liquidation for the Debtors and accompanying disclosure statements and related plan documents; (g) assist and advise the Committee on its communications with the Debtors' unsecured creditors as a group regarding significant matters in the Chapter 11 Cases; (h) monitor international proceedings involving the Debtors and property of the Debtors' estates; (i) represent the Committee at all hearings and other proceedings before the Court; (j) review and analyze applications, orders, statements of operations, and schedules filed with the Court and advise the Committee as to their propriety and, to the extent deemed appropriate by the Committee, support, join, or object thereto; (k) advise and assist the Committee with respect to any legislative, regulatory, or governmental activities; (l) assist the Committee in its review and analysis of the Debtors' various agreements; (m) prepare, on behalf of the Committee, any pleadings, including, without limitation, motions, memoranda, complaints, objections, or comments in connection with any matter related to the Debtors or the Chapter 11 Cases; (n) investigate and analyze any claims belonging to the Debtors' estates; and (o) perform such other legal services as may be required or are otherwise deemed to be in the interests of the Committee in accordance with the Committee's rights, powers, and duties, as set forth in the Bankruptcy Code, the Bankruptcy Rules, the Local Rules, and other applicable law. The firm's current standard hourly rates are: Partners $1,500 to $2,365 Associates $895 to $1,485 Non-Lawyer Professionals $300 to $1,320 In addition, the firm will seek reimbursement for expenses incurred. Kristin Going, a partner at McDermott Will & Emery, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Kristin K. Going, Esq. One Vanderbilt Avenue New York, NY 10017 Telephone: (212) 547-5400 Email: kgoing@mwe.com About First Mode Holdings First Mode Holdings, Inc. is a multinational decarbonization company that designs, manufactures, and distributes hybrid battery systems and hydrogen fuel cell technologies for heavy duty mining and rail vehicles, along with hydrogen refueling equipment. First Mode Holdings, Inc. and Synchronous LLC filed for voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del., Lead Case No. 24-12794) on December 15, 2024. In their petitions signed by Colin Mark Freed as chief financial officer, the Debtors reported consolidated assets of $10 million to $50 million and consolidated liabilities of $50 million to $100 million. The Hon. Judge Karen B. Owens oversees the cases. The Debtors tapped Young Conaway Stargatt & Taylor, LLP, as bankruptcy counsel and Latham & Watkins LLP as bankruptcy co-counsel. PJT Partners serves as investment banker to the Debtors, while M3 Partners LP acts as financial advisor. Omni Agent Solutions Inc is the claims and noticing agent for the Debtors. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of First Mode Holdings, Inc. and Synchronous, LLC. FIRST MODE: Updates Prepetition Secured Loan Claims Details ----------------------------------------------------------- First Mode Holdings, Inc., and Synchronous LLC submitted a Disclosure Statement for First Amended Joint Chapter 11 Plan dated February 4, 2025. The Debtors are currently pursuing a Sale Transaction of all or substantially all of their assets, as described in further detail in the Disclosure Statement. The proceeds thereof shall be distributed in accordance with the applicable provisions of this Plan, the DIP Orders, the DIP Documents, and/or the Sale Order, and the Debtors will be wound down. Class 3 consists of all Prepetition Secured Loan Claims. On the Effective Date, the Prepetition Secured Loan Claims shall be Allowed in an amount equal to (a) the aggregate outstanding principal amount of $71,513,729 plus (b) all accrued and unpaid interest as of the Petition Date plus (c) all fees, expenses, and other charges due and owing under the Prepetition Secured Loans as of the Petition Date plus (d) all other accrued and unpaid interest on the Prepetition Secured Loans as of the Effective Date to the extent permitted under section 506(b) of the Bankruptcy Code. Solely to the extent that the DIP Facility Claims are paid in full, and unless the Prepetition Secured Lender agrees to less favorable treatment, the Prepetition Secured Lender shall receive on account of its Prepetition Secured Loan Claims, on the Effective Date and periodically thereafter, as determined by the Plan Administrator from time to time in its reasonable discretion, all Net Distributable Proceeds after the DIP Facility Claims have been satisfied in full. To the extent the Net Distributable Proceeds are insufficient to satisfy the Prepetition Secured Loan Claims in full, the Prepetition Secured Lender shall not receive any distribution on account of any resulting deficiency claims. For the avoidance of doubt, the Prepetition Secured Lender shall not receive on account of its Prepetition Secured Loan Claims any Net Distributable Proceeds unless all Allowed General Unsecured Claims of Participating GUC Holders are expected to be paid in full in the good faith judgment of the Plan Administrator. Like in the prior iteration of the Plan, Class 4 consists of General Unsecured Claims. As soon as reasonably practicable after the Effective Date, except to the extent that a Holder of an Allowed General Unsecured Claim agrees to less favorable treatment for such Allowed General Unsecured Claim: * each Participating GUC Holder shall receive the lesser of (a) payment in full in cash; and (b) its pro rata share of Distributable Proceeds; and * each Non-Participating GUC Holder shall receive no consideration on account of its General Unsecured Claims. Class 4 is either Unimpaired or Impaired and Holders of Class 4 General Unsecured Claims are entitled to vote to accept or reject this Plan. The allowed unsecured claims total $25,900,000. This Class will receive a distribution of 100% of their allowed claims. Class 7 consists of all Equity Interests. Holders of Equity Interests shall receive no distribution on account of their Equity Interests. On the Effective Date, all Equity Interests will be canceled and extinguished and will be of no further force or effect. The Debtors shall fund distributions under this Plan with Cash on hand, the Anglo Funding Amount, the proceeds of all non-Cash assets of the Debtors' Estates, and any proceeds of retained Causes of Action of the Estates. "Final DIP Order" means the Order (I) Authorizing Debtors to (A) Obtain Postpetition Financing and (B) Use Cash Collateral, (II) Granting Liens and Providing Claims With Superpriority Administrative Expense Status, (III) Granting Adequate Protection to the Prepetition Facility Lender, (IV) Modifying the Automatic Stay, and (V) Granting Related Relief which shall be in form and substance acceptable to the Prepetition Secured Lender. A full-text copy of the Amended Disclosure Statement dated February 4, 2025, is available at https://urlcurt.com/u?l=qW8Guv from Omni Agent Solutions Inc., claims agent. Counsel for the Debtors: Kara Hammond Coyle, Esq. Michael R. Nestor, Esq. Joseph M. Mulvihill, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square 1000 North King Street Wilmington, DE 19801 Tel: (302) 571-6600 Fax: (302) 571-1253 E-mail: kcoyle@ycst.com mnestor@ycst.com jmulvihill@ycst.com Ray C. Schrock, Esq. Annemarie V. Reilly, Esq. Brian S. Rosen, Esq. LATHAM & WATKINS LLP 271 Avenue of the Americas New York, NY 10020 Tel: (212) 906-1200 Fax: (212) 751-4864 E-mail: ray.schrock@lw.com annemarie.reilly@lw.com brian.rosen@lw.com - and - Caroline Reckler, Esq. 330 North Wabash Avenue, Suite 2800 Chicago, IL 60611 Tel: (312) 876-7700 Fax: (312) 993-9767 E-mail: caroline.reckler@lw.com - and - Jeffrey T. Mispagel, Esq. 355 South Grand Avenue, Suite 100 Los Angeles, CA 90071 Tel: (213) 485-1234 Fax: (213) 891-8763 E-mail: jeffrey.mispagel@lw.com About First Mode First Mode is a multinational decarbonization company that designs, manufactures, and distributes hybrid battery systems and hydrogen fuel cell technologies for heavy duty mining and rail vehicles, along with hydrogen refueling equipment. First Mode Holdings, Inc. and Synchronous LLC filed for voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del., Lead Case No. 24-12794) on December 15, 2024. In their petitions signed by Colin Mark Freed as chief financial officer, the Debtors reported estimated consolidated assets of $10 million to $50 million and estimated consolidated liabilities of $50 million to $100 million. The Hon. Judge Karen B. Owens oversees the cases. The Debtors tapped Young Conaway Stargatt & Taylor, LLP, as bankruptcy counsel and Latham & Watkins LLP as bankruptcy co-counsel. PJT Partners serves as investment banker to the Debtors, while M3 Partners LP acts as financial advisor. Omni Agent Solutions Inc is the claims and noticing agent for the Debtors. FLECK REAL ESTATE: Unsecureds to Get 100 Cents on Dollar in Plan ---------------------------------------------------------------- Fleck Real Estate Holding Group, LLC, filed with the U.S. Bankruptcy Court for the Northern District of Georgia a Disclosure Statement describing Plan of Reorganization dated February 6, 2025. The Debtor is a small business, and has been the Debtor-in-Possession ("DIP") in this case since the case was filed on August 2, 2024. The Debtor invested in real estate with a partner expecting to receive a substantial profit; however, the anticipated proceeds were not realized. Ultimately, Debtor bought out Debtor's investment partner thereby causing Debtor's financial hardship. The primary funding source for the proposed plan shall be rental income from the lease of real property owned by Debtor located at 3471 River Mill Lane, Ellenwood, Georgia 30294, in the amount of $2,400.00 per month and from Ward Services for contracted services in the amount of $4,175.00 per month. There is one secured creditor to be paid in accordance with the Plan, Longhorn III Investments as successors in interest to SkyBeam Capital REIT LLC, (hereinafter "Longhorn III"), the holder of a Promissory Note secured by Debtor's real property. There is an unsecured priority creditor to be paid in accordance with the Plan, Dekalb County Tax Commissioner filed a Proof of Claim after the previous Disclosure Statement was filed which will be paid in full, and two nonpriority unsecured creditors, Chase Bank, and Dekalb County Water. Class 4 consists of Allowed Unsecured Non-Priority Claims. Claims in this class shall be paid at the rate of one hundred cents on the dollar which is the rate at which said claims would be paid in a Chapter 7 liquidation. Any Class 4 Claim (or as otherwise allowed by the Court) shall be paid in full upon refinancing of the Real Property within nine months of entry of a confirmation order, or upon selling of the Real Property, whichever shall first occur. To the best of Debtor's knowledge and belief, there are no other unsecured, non-priority creditors. However, if any additional unsecured, non-priority creditors exist who file a proof of claim by the Bar Date or whose untimely filed proof of claim is approved by the Court, said creditors in Class 4 shall be paid from the remaining profits realized in the sale or refinancing of the Real Property on a pro rata basis; if there are no remaining profits from liquidated real properties, then no payout shall be made for such claims. The funds necessary for the satisfaction of all claims shall come from rental income from the lease of real property owned by Debtor located at 3471 River Mill Lane; contracted services from Ward Services, Winston Benefits, Inc., Gallagher Solutions, Advocate Advisors, and Bellew Consulting; and proceeds from the sale of or refinancing of Debtor's real property. A full-text copy of the Disclosure Statement dated February 6, 2025 is available at https://urlcurt.com/u?l=ZEluHg from PacerMonitor.com at no charge. Counsel to the Debtor: Sims W. Gordon, Jr., Esq. The Gordon Law Firm, PC 400 Galleria Parkway, SE Suite 1500 Atlanta, GA 30339 Tel: (770) 955-5000 Fax: (770) 955-5010 Email: law@gordonlawpc.com About Fleck Real Estate Holding Group Fleck Real Estate Holding Group, LLC, filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ga. Case No. 24-57999) on Aug. 2, 2024. The Debtor tapped Gordon Law Firm, PC as counsel. FLEX INTERMEDIATE: S&P Alters Outlook to Stable, Affirms 'BB' ICR ----------------------------------------------------------------- S&P Global Ratings revised its outlook on FLEX-Intermediate HoldCo LLC (FLEX-IH) to stable from negative and affirmed its 'BB' issuer credit rating on the company because it does not expect disruptions in the near term. S&P said, "We consider FLEX-IH under our corporate methodology and use a proportionally consolidated approach to assess its debt and EBITDA to the full extent of its ownership of FLNG Liquefaction LLC, FLNG Liquefaction 2 LLC, and FLNG Liquefaction 3 LLC (the FLIQ trains). "The stable outlook on FLEX-IH reflects our view that it will receive robust, stable distributions driven by the tolling agreements at its three LNG projects and all of its off-takers will continue to honor their obligations. We expect the company's debt to EBTIDA to be in the 7x-8x range on a proportionately consolidated basis over the next two years." Following the impact from Hurricane Beryl in July 2024, the FLNG terminal, which includes FLIQ1 (not rated), FLIQ2, and FLIQ3, resumed full operations six months ago. In addition, the terminal delivered over 18 excess cargoes in 2024, in addition to the liquefaction tolling agreement obligations. FLEX-Intermediate HoldCo LLC (FLEX-IH) has achieved a track record of receiving distributions since the first quarter of 2024 from its operating subsidiaries to pay its own debt service and has fully replenished its debt service reserve accounts. S&P's outlook revision to stable is driven by all three trains at the Freeport facility being fully operational since July 2024 and all reserve accounts being fully replenished given recent distributions, together with our expectations of normal operations in the upcoming years. The Freeport facility has faced multiple incidents over the past three years, which have affected its ability to be fully operational. The explosion on June 8, 2022, a motor issue in FLIQ 3 in January 2024, and Hurricane Beryl in July 2024 limited operational capacity to below 100% during several periods. In these periods, specifically during the 2022 fire event when the facility was out of service for several months, the operating projects relied mostly on insurance proceeds (business interruption and property insurance) and debt service reserve accounts to avoid liquidity pressures and pay debt service on time. This directly affected the level of distributions that FLEX-IH received. After the impact of Hurricane Beryl, all three trains have returned to full operations for the past six months, distributing about $375 million to FLEX-IH as of Dec. 31, 2024. In addition, liquidity accounts have been fully replenished. We expect this to continue in our forecast period, underpinned by the trains' off-takers (FLIQ 1, FLIQ 2, and FLIQ 3), which include Osaka Gas, JERA Energy, BP Energy, SK Holdings, and Total Gas & Power and have a weighted average rating of 'A' based on annual contracted million tons per year. S&P said, "Historically, we have not included merchant revenue in our forecast given the volatile nature of both price and quantity. Given the recent debottlenecking expansion project to increase capacity and the subsequent track record of selling excess cargoes in the spot market, we now include a modest revenue contribution, which accounts for about 5%-10% of total EBITDA going forward. While the net proceeds from the additional sales would be available for debt service coverage, we expect FLEX-IH would likely pay out any proceeds as distributions and would not use them for incremental debt reduction beyond its required amortization. While we expect leverage to rise marginally because of an increase in head count and insurance expenses at the trains resulting in lower EBITDA (see the research updates on FLNG 2 and FLNG 3, published Jan. 30, 2025.), we believe the longer-term trend of leverage will remain below 8x, which is commensurate with the rating and a key factor contributing to our outlook revision to stable. As such, we expect minimal deleveraging in 2025 such that S&P Global Ratings-adjusted debt to EBITDA will remain in the 8x area by year-end 2025 (in comparison to our previous forecast of 7.5x), from our expectations of leverage to be about 7.5x-8x as of Dec. 31, 2024. "We believe the recent headcount investment in the FLNG terminal's engineering, maintenance, and safety areas will drive stability and future preparedness for unforeseen events in the long term." Before the June 8, 2022, fire, FLNG had a total headcount of about 230 at the terminal. It has since undertaken a major recruitment effort, increasing headcount within the engineering, maintenance, and safety departments. As of Dec. 31, 2024, total headcount had increased to 373 and is forecast to rise to about 450 by year-end 2025. This will directly address the inadequate operating and testing procedures and operator fatigue, which were largely cited as the root cause of the incident. While FLNG's headcount investment and higher insurance premiums will increase its operating cost profile, the terminal can withstand the impact on its EBITDA margin profile to 70% in 2025 from about 85% in 2021. S&P said, "We recognize this will provide the plant with additional operational stability and better preparation to identify and resolve future issues that may arise while limiting the impact on total production. After Hurricane Beryl, FLNG was able to return to full production levels sooner than it would have been able to under its pre-2022 operating profile directly because of increased headcount in key areas. However, we believe this might reflect a history of underinvestment by Freeport in its terminal affecting all three trains. Though we view the recent steps taken favorably, another operational incident would indicate a pattern of missteps. FLNG's rated LNG peers, Cheniere Corpus Christi Holdings LLC (BBB/Positive) and Sabine Pass Liquefaction, LLC (BBB+/Stable), which are owned by Cheniere (NYSE: LNG), continue to maintain a stellar operating track record, and we view the operator as best in class in the LNG universe." S&P said, "We continue to view operational risk as the main driver for near-term ratings on the Freeport entities. Even though we do not expect any liquidity issue at the projects or Holdco entities, the main credit risk for maintaining current ratings relate to Freeport's ability to operate the facility without any incidents for the foreseeable future. "FLEX-IH's credit profile is the key factor we use to determine its credit risk. We consider the company, and the three FLIQ liquefaction trains it owns, to be de-linked from the broader Freeport LNG group. We view FLEX-IH as the primary entity that is relevant to the group's credit quality. In our view, the broader Freeport group has a strong economic incentive to preserve the groups' credit quality, given its significant ownership in each of the three trains. While other entities belonging to the Freeport LNG group sit above FLEX-IH, we believe the company is sufficiently ringfenced and view the presence of an independent manager at FLEX-IH as supporting our view that the broader group would be unable to impair FLEX-IH's credit quality. Further, we do not expect Freeport's potential future development activities to have any financial impact on FLEX-IH or the three FLIQ trains. "The stable outlook on FLEX-IH reflects our view that it will receive robust, stable distributions driven by the tolling revenue at its three LNG projects, and all of its off-takers will continue to honor their obligations. We expect the company's debt to EBTIDA to be in the 7x-8x range on a proportionately consolidated basis over the next two years." S&P could lower its rating if debt to EBITDA exceeded 8x on a consistent basis. This could occur if there were: -- An increase in debt, likely as a result of debt-funded distributions; or -- Unmitigated operational issues that led to weaker performance or prolonged periods of downtime at the trains, or a material increase in operating expenses, resulting in materially lower distributions to FLEX-IH. While unlikely, S&P could raise our rating on FLEX-IH if it expected its debt to EBITDA to remain below 5.5x. Given the highly contracted nature of its projects, this would likely occur if the company reduced its leverage. FLEXSYS HOLDINGS: $475MM Bank Debt Trades at 34% Discount --------------------------------------------------------- Participations in a syndicated loan under which Flexsys Holdings Inc is a borrower were trading in the secondary market around 66.3 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $475 million Term loan facility is scheduled to mature on November 1, 2028. The amount is fully drawn and outstanding. Flexsys, Inc. was founded in 2000. The company’s line of business includes developing or modifying computer software and packaging. FLORIDA MONSTER: Gets OK to Use Cash Collateral Until March 26 -------------------------------------------------------------- Florida Monster Chef, LLC got the green light from the U.S. Bankruptcy Court for the Middle District of Florida to use cash collateral until March 26. The interim order signed by Judge Tiffany Geyer authorized the company to use cash collateral to pay the expenses expressly approved by the court and those set forth in its budget, plus an amount not to exceed 10% for each line item. Kapitus Servicing, Inc. will be granted a post-petition lien on the cash collateral to the same extent and with the same validity and priority as its pre-bankruptcy lien. The next hearing is scheduled for March 26. About Florida Monster Chef Florida Monster Chef LLC owns and operates Vines Grille& Wine Bar restaurant in Florida. Florida Monster Chef filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 24-06830) on December 17, 2024, listing between $500,000 and $1 million in both assets and liabilities. Judge Tiffany P. Geyer presides over the case. The Debtor is represented by: Justin M. Luna, Esq. Latham, Luna, Eden & Beaudine, LLP 201 S. Orange Avenue, Suite 1400 Orlando, FL 32801 Tel: 407-481-5800 Email: jluna@lathamluna.com FRANCHISE GROUP: $1BB Bank Debt Trades at 48% Discount ------------------------------------------------------ Participations in a syndicated loan under which Franchise Group Inc is a borrower were trading in the secondary market around 51.7 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $1 billion Term loan facility is scheduled to mature on March 10, 2026. About $762.3 million of the loan has been drawn and outstanding. Franchise Group, Inc., through its subsidiaries, operates franchised and franchisable businesses including The Vitamin Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More, American Freight, Buddy's Home Furnishings and Sylvan Learning Systems, Inc. FRANCHISE GROUP: $300MM Bank Debt Trades at 48% Discount -------------------------------------------------------- Participations in a syndicated loan under which Franchise Group Inc is a borrower were trading in the secondary market around 52.0 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $300 million Term loan facility is scheduled to mature on March 10, 2026. About $295.5 million of the loan has been drawn and outstanding. Franchise Group, Inc., through its subsidiaries, operates franchised and franchisable businesses including The Vitamin Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More, American Freight, Buddy's Home Furnishings and Sylvan Learning Systems, Inc. FRANCHISE GROUP: Updates Unsecured Claims Pay Details ----------------------------------------------------- Franchise Group, Inc., and its Affiliated Debtors submitted a Disclosure Statement describing Third Amended Joint Plan dated February 5, 2025. The Plan constitutes a joint plan of reorganization for all of the Debtors. All Claims and Interests, except DIP Claims, Administrative Expense Claims, Fee Claims, U.S. Trustee Fees and Priority Tax Claims, are placed in the Classes set forth in Article IV. The Plan consolidates certain Claims against all Debtors solely for purposes of voting and confirmation. In accordance with section 1123(a)(1) of the Bankruptcy Code, the Debtors have not classified Administrative Expense Claims, DIP Claims, Fee Claims, U.S. Trustee Fees and Priority Tax Claims. Class 6-A consists of Franchise Group, Inc. General Unsecured Claims. In full and final satisfaction, compromise, settlement, release, and discharge of each Allowed General Unsecured Claim at Franchise Group, Inc., except to the extent that a Holder of a General Unsecured Claim against Franchise Group, Inc. agrees to less favorable treatment, on the Effective Date, or as soon as practicable thereafter, each Holder of an Allowed General Unsecured Claim at Franchise Group, Inc. shall receive its pro rata share of the OpCo Debtor Litigation Trust Units allocable to Franchise Group, Inc. This Class is impaired. Class 6-B consists of American Freight General Unsecured Claims. In full and final satisfaction, compromise, settlement, release, and discharge of each Allowed General Unsecured Claim against the American Freight Debtors, on the Effective Date, each Holder of an Allowed General Unsecured Claim against the American Freight Debtors shall receive its pro rata share of the OpCo Debtor Litigation Trust Units allocable to the American Freight Debtors. This Class is impaired. Class 6-C consists of Buddy's General Unsecured Claims. In full and final satisfaction, compromise, settlement, release, and discharge of each Allowed General Unsecured Claim against the Buddy's Debtors, except to the extent that a Holder of a General Unsecured Claim against the Buddy's Debtors agrees to less favorable treatment, on the Effective Date, or as soon as practicable thereafter, each Holder of an Allowed General Unsecured Claim against the Buddy's Debtors shall receive its pro rata share of the OpCo Debtor Litigation Trust Units allocable to the Buddy's Debtors. This Class is impaired. Class 6-D consists of PSP General Unsecured Claims. In full and final satisfaction, compromise, settlement, release, and discharge of each Allowed General Unsecured Claim against the PSP Debtors, except to the extent that a Holder of a General Unsecured Claim against the PSP Debtors agrees to less favorable treatment, on the Effective Date, or as soon as practicable thereafter, each Holder of an Allowed General Unsecured Claim against the PSP Debtors shall receive its pro rata share of the OpCo Debtor Litigation Trust Units allocable to the PSP Debtors. This Class is impaired. Class 6-E consists of Vitamin Shoppe General Unsecured Claims. In full and final satisfaction, compromise, settlement, release, and discharge of each Allowed General Unsecured Claim against the Vitamin Shoppe Debtors, except to the extent that a Holder of a General Unsecured Claim against the Vitamin Shoppe Debtors agrees to less favorable treatment, on the Effective Date, or as soon as practicable thereafter, each Holder of an Allowed General Unsecured Claim against the Vitamin Shoppe Debtors shall receive its pro rata share of the OpCo Debtor Litigation Trust Units allocable to the Vitamin Shoppe Debtors. The Plan is a joint plan that does not provide for substantive consolidation of the Debtors' Estates, and on the Effective Date, the Debtors' Estates shall not be deemed to be substantively consolidated for purposes hereof. Except as specifically set forth herein, nothing in this Plan shall constitute or be deemed to constitute an admission that any one of the Debtors is subject to or liable for any Claim against any other Debtor. In the event of a Plan Equitization Transaction, the Debtors shall fund Cash distributions under the Plan with Cash on hand, including Cash from operations, the American Freight Liquidation Proceeds, the Sale Proceeds (if any) and the proceeds of the DIP Facility. Cash payments to be made pursuant to the Plan will be made by the Reorganized Debtors or the Disbursing Agent. In the event of a Sale Transaction or a Partial Sale Transaction, the Debtors shall fund Cash distributions under the Plan from Cash on hand (if any), the American Freight Liquidation Proceeds, and the Sale Proceeds in accordance with the terms of the Sale Documents and the Plan. The Debtors shall fund distributions to Allowed Claims against the Freedom HoldCo Debtors from proceeds of the Freedom HoldCo Debtor Litigation Trust. A full-text copy of the Third Amended Plan dated February 5, 2025 is available at https://urlcurt.com/u?l=6El618 from Kroll Restructuring Administration LLC, claims agent. Proposed Co-Counsel to the Debtors: Edmon L. Morton, Esq. Shella Borovinskaya, Esq. Matthew B. Lunn, Esq. Allison S. Mielke, Esq. Shella Borovinskaya, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square 1000 North King Street Wilmington, Delaware 19801 Tel: (302) 571-6600 Fax: (302) 571-1253 E-mail: emorton@ycst.com mlunn@ycst.com amielke@ycst.com sborovinskaya@ycst.com Debra M. Sinclair, Esq. Matthew A. Feldman, Esq. Betsy L. Feldman, Esq. Joseph R. Brandt, Esq. WILLKIE FARR & GALLAGHER LLP 787 Seventh Avenue New York, New York 10019 Tel: (212) 728-8000 Fax: (212) 728-8111 E-mail: dsinclair@willkie.com mfeldman@willkie.com bfeldman@willkie.com jbrandt@willkie.com About Franchise Group Inc. Franchise Group, Inc., through its subsidiaries, operates franchised and franchisable businesses including The Vitamin Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More, American Freight, Buddy's Home Furnishings and Sylvan Learning Systems, Inc. Franchise Group, Inc. and its affiliates filed their voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12480) on Nov. 3, 2024, listing $1,000,000,001 to $10 billion in both assets and liabilities. The petitions were signed by David Orlofsky as chief restructuring officer. Willkie Farr & Gallagher LLP and Young Conaway Stargatt & Taylor, LLP are serving as legal counsel, AlixPartners is serving as financial advisor and Chief Restructuring Officer, and Ducera Partners is serving as investment banker to the Company. Paul Hastings LLP is serving as legal counsel and Lazard is serving as investment banker to the first lien ad hoc group. FREEPORT LNG: S&P Alters Outlook to Stable, Affirms 'B-' ICR ------------------------------------------------------------ S&P Global Ratings revised its outlook to stable from negative and affirmed its 'B-' issuer credit rating on Freeport LNG Investments LLLP (FLNGI). S&P said, "The stable outlook on FLNGI reflects our expectation that it will maintain adequate liquidity and stand-alone S&P Global Ratings-adjusted debt leverage in the 12x-13x range over the next 12 months. We expect stable distributions from FLEX Intermediate Holdco to fully service the debt at FLNGI." Following the impact from Hurricane Beryl in July 2024, the FLNG terminal, which includes FLIQ1 (not rated), FLIQ2, and FLIQ3, resumed full operations since July 2024. In addition, the terminal delivered over 18 excess cargoes in 2024, in addition to the liquefaction tolling agreement obligations. Since 3Q 2024, FLEX-IH, the entity that receives distributions from Freeport operating projects, has been able to make distributions to Freeport LNG Investments LLLP (FLNGI), that has been relying on equity contributions in the past in order to service its debt obligations. Moreover, FLNGI has been able to fully replenish its debt service reserve account. S&P said, "Our outlook revision is driven by our revised view on liquidity for FLNGI, as we now expect stable upstream distributions from FLEX-IH given that the three trains at the Freeport facility have been fully operational since July 2024 and all reserve accounts have been fully replenished. We revised our liquidity assessment on FLNGI to adequate from weak given our expectation for sources to uses to exceed 1.2x over the next 12 months. This is largely driven by our expectation that distributions from FLEX-IH will continue following all trains (FLIQ 1, FLIQ 2, and FLIQ 3) resuming full operations in July 2024." During the past two years, when the Freeport facility experienced multiple interruptions, FLNGI relied on equity cures from its sponsor and debt service reserve accounts to fulfill its debt obligations. While the other Freeport entities rated by S&P Global Ratings were covered under a business interruption insurance plan, this insurance did not cover FLNGI. After the impact of Hurricane Beryl, all three trains resumed full operations six months ago, distributing about $119.3 million to FLNGI in the quarter ended Dec. 31, 2024. In addition, liquidity accounts have been fully replenished. S&P expects this to continue in our forecast period, underpinned by the trains' offtakers (FLIQ 1, FLIQ 2 and FLIQ 3), which include Osaka Gas, JERA Energy, BP Energy, SK Holdings, and Total Gas & Power and have a weighted average rating of 'A' based on annual contracted million tons per year. S&P said, "In addition, we include merchant revenue in our forecast despite the volatile nature of both price and quantity. Given the recent debottlenecking expansion project increasing capacity, and the subsequent track record of selling excess cargoes in the spot market, we believe the terminal is better equipped to benefit given our expectations for stable operations. We expect FLNGI will continue to be a beneficiary of incremental revenue through additional distributions from FLEX-IH because we do not expect this to be used for additional debt repayment at FLEX-IH. While we expect leverage to rise because of an increase in head count and insurance expenses at the trains, resulting in lower EBITDA, we believe the sales of excess cargoes will partially offset the impact. As such, we expect S&P Global Ratings-adjusted debt to EBITDA will be 12x-13x by year-end 2025 (compared with our previous forecast of 10x-12x) from our expectations of 10x-11x in Dec. 31, 2024. "While we view FLNGI's stand-alone leverage as negative, we now view its cash flow interruption risk as neutral and cash flow diversity as neutral, resulting in a four-notch gap from Flex-IH. We typically rate the GP two to five notches below our issuer credit rating on the operating company when they do not constitute a group, as is the case with FLNGI. The number of notches between our rating on the GP and our rating on the operating company reflects how we assess (positive, neutral, or negative) certain characteristics such as cash flow interruption risk, stand-alone debt leverage, and cash flow diversity. "We revised our cash flow interruption risk to neutral from positive given that during periods of recent distress, the entity relied upon equity cures to fund debt service and distributions were not flowing from subsidiaries. Despite strong coverage ratios (1.48x LTM Dec. 31, 2024), based on recent events, we view that there is incrementally more risk of interruption to cash flows should disruptions occur at the operating facilities, such as that occurred between 2022 and 2024. "Given our expectations for FLNGI's debt to EBITDA of greater than 10x, we continue to view its stand-alone debt leverage as negative. Despite the three different trains, which include different ownership stakes and off-takers, we assess cash flow diversity as neutral due to the lack of redundancy given the singular gas inlet into the terminal. "FLNGI's recent term loan repricing will provide interest savings benefiting liquidity, which we view as credit positive. In January 2025, FLNGI completed an opportunistic repricing of its existing $1.146 billion term loan B facility due December 2028 to SOFR + 325 basis points (bps) from SOFR + 350 bps + CSA (~26bps). The transaction will result in about $6 million of interest savings, which further supports our revised liquidity assessment. The principal amount outstanding and all other terms, including the min 1.1x DSCR covenant, are unchanged. "The stable outlook on FLNGI reflects our expectation that it will maintain adequate liquidity despite our expectations for leverage to be 12x-13x. We expect consistent distributions from FLEX Intermediate Holdco will be sufficient to fully service the debt at FLNGI. "We could lower the rating on FLNGI if distributions from FLEX Intermediate Holdco were curtailed or if we lowered the rating on FLEX Intermediate Holdco. In addition, we could also lower our rating if we anticipate liquidity shortfalls and our view of support from equity cures diminishes. "We could raise the rating on FLNGI if we expected stand-alone debt leverage to be below 4x during our forecast period or if we raised our rating on FLEX Intermediate Holdco, which is also related to materially reducing leverage." FWR LLC: U.S. Trustee Unable to Appoint Committee ------------------------------------------------- The U.S. Trustee for Region 4 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of FWR, LLC. About FWR LLC FWR, LLC filed Chapter 11 petition (Bankr. D. S.C. Case No. 25-00384) on February 1, 2025, listing between $100,001 and $500,000 in both assets and liabilities. Christine Brimm, Esq., serves as Subchapter V trustee. Judge Helen E. Burris presides over the case. Robert H. Cooper, Esq., at The Cooper Law Firm represents the Debtor as bankruptcy counsel. GARDNER-WEBB UNIVERSITY: Moody's Affirms Ba1 Issuer & Bond Ratings ------------------------------------------------------------------ Moody's Ratings has affirmed Gardner-Webb University's (NC) (GWU) Ba1 issuer and revenue bond ratings. Total debt outstanding as of fiscal year end 2024 (June 30) was about $18 million. The outlook is stable. RATINGS RATIONALE The affirmation of the university's Ba1 issuer rating is supported by its manageable financial leverage with total cash and investments covering total adjusted debt by an excellent almost 5x, while total debt to EBIDA was just 3x in fiscal 2024. Solid total wealth, with total cash and investments in excess of $86 million, provides good coverage of operating expenses at 1.3x. Although operating performance is narrow and will remain constrained given a challenging student market, GWU has a track record of good expense discipline. Based upon guidance provided by management, Moody's expect fiscal 2025 operating performance to be in line with, if not stronger than, fiscal 2024's 8.5% EBIDA margin. Liquidity, which narrowed in fiscal 2024 to 78 days, is expected to rebound to over 100 days in 2025 driven by the expected receipt of federal pandemic employee retention credits. Offsetting credit factors include a small scope of operations and a highly competitive student market in North Carolina, with many strong and low-cost public institutions and a high proportion of price-sensitive students. Approximately 73% of operating revenue is derived from student charges, exposing the university to shifts in consumer preferences. Favorably, GWU has a track record of identifying programs that build on its institutional strengths as a faith-based private university with diverse academic and athletic offerings. Although the university has no near-term plans for additional debt, an elevated age of plant at 21 years could signal the potential need for future capital investment. The affirmation of the Ba1 rating on the university's outstanding revenue bonds incorporates the university's credit quality, pledge on unrestricted revenue, mortgage on certain campus facilities and a debt service reserve fund. RATING OUTLOOK The stable outlook is predicated on the infusion of liquidity from the receipt of a federal pandemic employer retention credit as well as expectations of sufficient EBIDA to cover debt service and grow unrestricted liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Demonstrated strengthening of brand and strategic positioning reflected by improved student demand, philanthropy and net tuition revenue growth -- Substantial increase in total wealth relative to debt and expenses, currently at 5x and 1.3x, respectively -- Sustained improvement in operating performance including EBIDA margin and debt service coverage FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Significant deterioration in operating performance leading to a reduction in the headroom above the debt service coverage covenant or a violation of the covenant -- Substantial increase in financial leverage absent growing wealth or revenue in support of debt service -- Material decline in total wealth or inability to increase unrestricted liquidity LEGAL SECURITY GWU's outstanding revenue bonds are secured by a pledge of the university's revenue excluding amounts restricted by law and any gifts, grants, bequests, donations or contributions designated by the donor or maker as being for a certain specific purpose. The bonds are further secured by a mortgage on GWU's 50,000- square-foot College of Health Sciences facility. There is a debt service reserve fund that totaled about $2.5 million as of fiscal 2024. Bondholders also benefit from a negative pledge relating to GWU's core campus. Certain real property including about 13 acres of raw land near the College of Health Sciences as well as GWU's real property located in Charlotte are not subject to the pledge. There is a 1.2x debt service coverage covenant, tested annually. For fiscal 2024, total income available for debt service was about $4 million, which covered total principal and interest of $2.4 million by 1.6x. Management reports the university expects to meet this covenant for fiscal 2025. If coverage is less than 1.2x, within 45 days the university shall retain a consultant who, within 75 days of being retained, shall submit recommendations relevant to achieving the required level. So long as the university complies with any reasonable recommendations, there will be no event of default. However, a coverage ratio less than 1x shall constitute an event of default. PROFILE Gardner-Webb University is a small, private Christian university with its primary campus situated about 50 miles west of Charlotte. Originally founded in 1905, GWU is a Baptist affiliated university that offers undergraduate, graduate and doctoral level programming. The university also serves a relatively large cohort of degree completion students. Total FTE enrollment for fall 2024 was over 2,700, and fiscal 2024 operating revenue totaled approximately $68 million. METHODOLOGY The principal methodology used in these ratings was Higher Education published in July 2024. GAUCHO GROUP: Taps Basile Law Firm as Special Litigation Counsel ---------------------------------------------------------------- Gaucho Group Holdings, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ The Basile Law Firm, P.C as special litigation counsel. The firm will render these services: (a) provide legal services and advice with respect to the Delaware Action; and (b) perform all other legal services and provide all other necessary legal advice to Gaucho in connection with this Chapter 11 case. The firm will be paid at these rates: Waleed Amer $700 per hour Eric Benzenberg $1,000 per hour Partners $1,000 to $1,250 per hour Associates $400 to $700 per hour Law Clerks $100 per hour Paralegals $75 per hour As disclosed in the court filings, The Basile Law Firm is a "disinterested person" as that term is defined in Bankruptcy Code Section 101(14). The firm can be reached through: Eric Benzenber, Esq. The Basile Law Firm P.C. 390 N. Broadway, Suite 140 Jericho, NY 11753 Phone: (516) 455-1500 About Gaucho Group Holdings, Inc. Gaucho Group Holdings Inc operates as a holding company. The Company, through its subsidiaries, provides luxury real estate and consumer marketplace with collection of wine, hospitality, fashion brands, and real estate holdings. Gaucho Group Holdings serves customers in the United States and Argentina. Gaucho Group Holdings Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fl. Case No. 24-bk-21852) on November 12, 2024. GENEVER HOLDINGS: Trustee Taps Hamilton Group as Auctioneer ----------------------------------------------------------- Luc A. Despins, as the Chapter 11 Trustee of Ho Wan Kwok and Genever Holdings LLC, seeks approval from the U.S. Bankruptcy Court for the District of Connecticut to hire The Hamilton Group, LLC as auctioneer. The services to be provided by Hamilton with respect to the auction of the Estate Vehicles include: (a) preparing a written valuation report of all Estate Vehicles to be auctioned; (b) transporting the Estate Vehicles to Hamilton's secured and insured warehouse located in Clinton, Connecticut; (c) inspecting, cleaning, displaying, preparing and photographing the Estate Vehicles for internet auctions; (d) marketing the Vehicle Auction; and (e) coordinating, monitoring, and conducting internet auctions of the Estate Vehicles. The services to be provided by Hamilton with respect to the auction of the Estate Furniture include: (a) inspecting, cleaning, preparing, photographing, and cataloging the Estate Furniture for internet auctions; (b) marketing the Furniture Auction, and (c) coordinating, monitoring, and conducting internet auctions of the Estate Furniture (including the checkout process following the auctions). Hamilton will be compensated at these rates: For the sale of estate vehicles: a. 15% buyer's premium to be paid by buyer at auction (the buyer shall pay this buyer's premium directly to Hamilton), for the avoidance of doubt, the Estates shall not pay any premium to Hamilton; and b. Reimbursement of costs and expenses of the auction sale, including: i. a Bidspotter listing fee of $350 per auction, ii. a 3% commission to Bidspotter based upon the gross sales price and payable from the proceeds of the sale, iii. any towing costs (estimated at $518.80 for the First Vehicle Group), iv. cleaning and detailing costs (estimated at $200 for the First Vehicle Group), v. advertising costs (estimated at $800 for the First Vehicle Group), and vi. costs of the bond (which is $850 for the First Vehicle Group). For the sale of First Furniture Group: a. 15% commission from the Trustee and Genever US; b. 15% buyer's premium to be paid by buyer at auction (the buyer shall pay this buyer's premium directly to Hamilton), for the avoidance of doubt, the Estates shall not pay any premium to Hamilton; and c. Reimbursement of costs and expenses of the auction sale, including: i. labor for preparation of auctions (estimated at $4,500), ii. labor for checkout following the auctions (estimated at $6,480), iii. advertising costs (estimated at $3,850), iv. final value fee by Auction Ninja (at 2.35%), and v. costs of the bond (estimated at $1,200). Michael J. Knudsen, a member of Hamilton, assured the court that Hamilton is a disinterested person within the meaning of 11 U.S.C. Sec. 101(14). The firm can be reached through: Michael J. Knudsen The Hamilton Group, LLC 36 Killingworth Turnpike (Route 81) Clinton, CT 06413 Telephone: (860) 552-4609 Email: info@hamilton-grp.com About Ho Wan Kwok Ho Wan Kwok sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Conn. Case No. 22-50073) on Feb. 15, 2022. Judge Julie A. Manning oversees the case. Dylan Kletter, Esq., is the Debtor's legal counsel. Ho Wan Kwok aka Guo Wengui is an exiled Chinese businessman. According to Reuters, Guo was a former real estate magnate who fled China for the U.S. in 2014 ahead of corruption charges. Guo filed for bankruptcy after a New York court ordered him to pay lender Pacific Alliance Asia Opportunity Fund $254 million stemming from a contract dispute. PAX had initially loaned two of Guo's companies $100 million in 2008 for a construction project in Beijing and sued Guo when he failed to pay off the loan. An Official Committee of Unsecured Creditors has been appointed in the case and is represented by Pullman & Comley, LLC. Luc A. Despins was appointed Chapter 11 Trustee in the case. GEO GROUP: S&P Alters Outlook to Positive, Affirms 'B+' ICR ----------------------------------------------------------- S&P Global Ratings affirmed the 'B+' issuer credit rating on U.S.-based private prison operator The GEO Group Inc., as well as its 'BB' issue-level rating on its senior secured debt. S&P's '1' recovery rating on the secured debt is unchanged. At the same time, due to the company's debt prepayment in 2024 and our expectation for improved recovery prospects for the unsecured lenders, S&P raised its issue-level rating on its senior unsecured debt to 'B+' from 'B' and revised its recovery rating to '4' from '5'. The positive outlook reflects the potential S&P will raise its rating on GEO over the next 12 months if it performs in line with its forecast and sustains leverage of less than 4x, free operating cash flow (FOCF) to debt of greater than 10%, and EBITDA interest coverage of at least 3x. The outlook revision reflects GEO's steady operating performance and debt repayment over the past 12 months, which have kept its S&P Global Ratings-adjusted leverage below 4x. The company's leverage was 3.7x for the 12 months ended Sept. 30, 2024, and it maintained leverage in the 3.7x-3.8x range throughout 2024 despite a double-digit percent decline in the revenue from its high-margin electronic monitoring service segment, due to falling participant counts. While GEO maintained stable total revenue over this period, due to the contributions from its other business segments, its S&P Global Ratings-adjusted EBITDA margin contracted by about 200 basis points (bps) over the last 12 months. Still, the company's voluntary debt repayment and solid cash flow generation have reduced its net debt and enabled it to maintain leverage of below 4x. S&P said, "We anticipate the Trump administration's immigration policies could materially increase GEO's EBITDA generation and cash flow, though there is uncertainty regarding the timing and extent of the potential financial benefits. We believe the company is positioned favorably in the private prison industry to benefit from a potential increase in demand from its largest customer, the U.S. Immigration and Customs Enforcement agency (ICE; approximately 41% of revenue). The new administration's increased detention efforts may lead to a material rise in the demand for ICE detention beds and electronic monitoring, which could support further upside to our forecast. The company has about 10,000 beds in idle facilities and access to an additional 8,000 beds provided through existing contracts. However, the government has not yet authorized additional funding for the detentions, and GEO's credit metrics may temporarily weaken as it incurs start-up costs to ready its available capacity. While ICE currently has funding for approximately 41,500 beds, our forecast assumes its authorization rises to at least 50,000 detention beds in 2026, which is in line with the levels during President Trump's first term, though we recognize the president's new policies may require a much larger authorization. We expect GEO will benefit from about a 30%-35% increase in incremental beds, which is in line with its current share as ICE's largest service provider. "We expect the company will maintain S&P Global Ratings-adjusted leverage of less than 4x in 2025, though we do not forecast any material upside from the new administration's policies until 2026. We forecast GEO's leverage will remain steady at 3.5x over the next 12 months. This reflects our expectation for an increase in its authorization for ICE detention beds, which may temporarily pressure the company's profitability and hinder any deleveraging momentum in 2025, depending on the timing of the start-up costs and the incremental EBITDA from the new business. GEO recently announced $70 million of investments to deliver expanded detention capacity, secure transportation, and electronic monitoring services to ICE, which further supports our view that it may incur elevated costs over the near-term. Nevertheless, our forecast also assumes increasing utilization levels across the company's facilities and increasing participant counts in its federal electronic monitoring services business, which will likely improve its credit metrics in 2026." GEO has operated with a less-aggressive financial policy since its debt restructuring in 2022, though it will likely increase its shareholder returns over the next 12 months. S&P said, "The company has repaid over $90 million of debt year to date and we expect it will continue to repay debt in 2025. Under its credit facility covenants, GEO can retain 25% of its excess cash flow until September 2025 and 50% after that date, which it can use to fund shareholder returns, if its leverage is between 2.5x and 3.5x. While we expect the company will take a measured approach to shareholder returns until it receives more clarity around the timing of any financial benefits from the new administration's policies, we expect it will likely offset any future reduction in its net leverage below 3.5x, stemming from incremental EBITDA, with shareholder returns." S&P said, "GEO continues to face contract renewal and legal event risks. The other key variables in our forecast include the company's ability to renew its federal electronic monitoring services contract (14% of fiscal-year 2023 revenue) expiring July 2025, as well as the outcomes of its outstanding labor-related litigation. While we expect the bidding for the contract will be competitive, we believe GEO's significant prior investments and expertise as the government's primary provider since 2020 supports its ability to secure at least a partial contract renewal. Additionally, the government currently has an outstanding request for information and has yet to initiate a formal request for proposal, which makes it more likely that the company's existing contract will be extended through at least the end of 2025. GEO's outstanding labor-related litigation in Washington, Colorado, and California could also lead to large cash outflows for settlements or regulatory fines, which would increase the volatility of its credit metrics. "The positive outlook reflects the potential we will raise our rating on GEO over the next 12 months if it performs in line with our forecast and sustains leverage of less than 4x, FOCF to debt of greater than 10%, and EBITDA interest coverage of at least 3x." S&P could revise its outlook on GEO to stable over the next 12 months if S&P expects it will increase its leverage above 4x and maintain it at that level. This could occur if: -- The expected improvement in its credit metrics from the new administration's policies do not materialize; -- Its contract termination rates exceed our expectations, leading to greater-than-anticipated revenue declines; -- A larger-than-expected reduction in its contracted ICE volumes results in larger-than-expected earnings declines; -- Rising servicing costs weaken its EBITDA margins toward the mid- to high-teens percent range; -- An unfavorable litigation outcome leads to material legal fines or settlements; or -- The company materially increases its shareholder returns. S&P could raise its ratings on GEO if it sustains S&P Global Ratings-adjusted leverage of comfortably below 4x, FOCF to debt of more than 10%, and EBITDA interest coverage of at least 3x. This could occur if: -- The company benefits from a material increase in demand from ICE that bolsters its operating performance; -- It successfully executes on its upcoming contract renewals and cost controls, supporting EBITDA exceeding our base-case expectation; -- The company resolves its outstanding litigation without material fines or settlements; and -- Management prudentially manages its shareholder returns. GILGAL MEDICAL: L. Todd Budgen Named Subchapter V Trustee --------------------------------------------------------- The U.S. Trustee for Region 21 appointed L. Todd Budgen, Esq., a practicing attorney in Longwood, Fla., as Subchapter V trustee for Gilgal Medical Supplies, Inc. Mr. Budgen will be paid an hourly fee of $400 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Budgen declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: L. Todd Budgen, Esq. P.O. Box 520546 Longwood, FL 32752 Tel: (407) 232-9118 Email: Todd@C11Trustee.com About Gilgal Medical Supplies Gilgal Medical Supplies, Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00651) on February 4, 2025, listing between $50,001 and $100,000 in assets and between $500,001 and $1 million in liabilities. Judge Grace E. Robson presides over the case. Daniel A. Velasquez, Esq., at Latham, Luna, Eden & Beaudine, LLP represents the Debtor as legal counsel. GRIFFON CORP: S&P Ups ICR to 'BB-' on Continued Strong Earnings --------------------------------------------------------------- S&P Global Ratings raised its issuer credit rating on diversified management and holding company Griffon Corp. to 'BB-' from 'B+'. The outlook is stable. At the same time, S&P raised its issue-level ratings on the company's senior secured debt to 'BB+' from 'BB' and on its senior unsecured debt to 'B+' from 'B'. The stable outlook reflects S&P's expectations of comfortably sustained improved credit measures despite less favorable business conditions over the next 12-24 months. S&P said, "We believe Griffon can sustain adjusted leverage well under 4x through the business cycle, supported by improved profitability. We expect adjusted leverage at the better end of the 3x-4x range over fiscal years 2025-2026 versus prior expectations of over 4x. We believe strategic initiatives undertaken by management over the last few years including divestures and accretive acquisitions, to improve underlying operations, are now being reflected in overall improved financial performance, by way of higher margins and earnings' growth. For instance, Griffon's most recent adjusted EBITDA margins are in the 19%-21% range, up from the five-year average (2020-2024) of about 16%. Similarly, earnings in 2024 are about 2x those in 2020 ($555 million from about $270 million). As a result, despite a higher debt load, adjusted leverage has improved to roughly 3x at fiscal year-end 2024 from about 4x at the end of 2020. "Despite a mixed outlook for end-market demand drivers, we expect revenues and earnings to continue to increase over the next 12-24 months. Demand factors over the next 1-2 years could be somewhat less favorable. While we expect repair and remodeling, particularly within the garage door segment, to continue to drive demand, we believe residential construction may remain slow because of higher interest rates and continued weakness in commercial end markets. As such, based on stable price realizations and modest volume growth, we expect revenue of $2.65 billion-$2.75 billion and adjusted earnings of $550 million-$600 million over fiscal years 2025-2026. Therefore, Griffon's adjusted EBITDA margins could be 20%-22% over this period. "Nonetheless, the ongoing uncertainty around U.S. tariff policy could pose some downside risks to our forecasts. We believe higher input costs could affect profitability if Griffon cannot effectively pass through costs or the lag is longer than expected. Though we expect the overall impact of tariffs to be generally manageable. Certain products under the company's tools and fans sub product category have supply chain exposures to China. Further, we believe most inventory for the upcoming lawn and garden season may have arrived in the U.S. ahead of the tariff implementation and there possibly could be enough time to make supplier negotiations and/or adjust sourcing ahead of next year's season. "We expect Griffon's financial policy actions to be commensurate with improved thresholds. We do not expect any significant debt reduction over the next 12-24 months. Further, we believe proclivity for large acquisition could at times raise adjusted leverage to the 4x-5x range. However, we would expect such actions to be less frequent and temporary, with a committed path to deleveraging. Therefore, we expect Griffon to maintain adjusted leverage under 4x through most normal business conditions. Further, we expect the company will continue to remain opportunistic towards growth and shareholder returns. As such, we expect $350 million-$375 million in annual operating cash flow in fiscal years 2025-2026 and the company to use most of it for bolt on acquisitions and/or shareholder returns via repurchases. Nonetheless, we expect Griffon to remain prudent while pursuing its financial policy actions and stay within the adjusted leverage tolerance for the rating. "The stable outlook on Griffon reflects our expectations of adjusted leverage maintained below 4x, while sustaining operating cash flow to debt of 15%-20%. We expect the company could achieve these metrics even amid less favorable business conditions." Though not likely, S&P could lower its ratings on Griffon over the next 12 months if: -- Adjusted earnings are more than 25% lower than S&P's base-case expectations, such that adjusted leverage begins trending toward 5x on a sustained basis. This could occur in a severe recession that drastically reduces demand for the company's products or unexpected higher costs that cannot be passed on, compressing margins more than 500 basis points; or -- It undertakes an aggressive financial policy, such as pursuing large debt financed acquisitions or shareholder friendly actions, elevating credit ratios. Though highly unlikely, S&P could raise its ratings on Griffon over the next 12 months if: -- The company materially improves scale and business diversity while maintaining adjusted leverage under 3x, and S&P views it as sustainable through most market conditions; and -- S&P believes its financial policy is committed to maintaining such credit measures. H-FOOD HOLDINGS: $1.15BB Bank Debt Trades at 39% Discount --------------------------------------------------------- Participations in a syndicated loan under which H-Food Holdings LLC is a borrower were trading in the secondary market around 61.4 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $1.15 billion Term loan facility is scheduled to mature on May 30, 2025. About $1.07 billion of the loan has been drawn and outstanding. H-Food Holdings, LLC and Matterhorn Parent, LLC is a food contract manufacturer. H-FOOD HOLDINGS: $515MM Bank Debt Trades at 39% Discount -------------------------------------------------------- Participations in a syndicated loan under which H-Food Holdings LLC is a borrower were trading in the secondary market around 61.5 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $515 million Term loan facility is scheduled to mature on May 30, 2025. About $485.4 million of the loan has been drawn and outstanding. H-Food Holdings, LLC and Matterhorn Parent, LLC is a food contract manufacturer. HALO BUYER: Moody's Withdraws 'B3' CFR Following Debt Repayment --------------------------------------------------------------- Moody's Ratings has withdrawn all ratings of Halo Buyer, Inc. including the company's B3 corporate family rating, B3-PD probability of default rating, B2 ratings on the backed senior secured first lien bank credit facilities which consists of a revolver and $340 million term loan, and Caa2 rating on the $100 million backed senior secured second lien term loan. Prior to the withdrawal the outlook was stable. RATINGS RATIONALE Moody's have withdrawn all ratings following the repayment of all of the company's outstanding rated debt in conjunction with a refinancing of its capital structure. The company terminated the existing credit agreements and all indebtedness outstanding thereunder was paid off and all commitments under the credit facilities were terminated. Headquartered in Sterling, Illinois, Halo Buyer, Inc. (dba as Halo Branded Solutions and Halo Recognition) is a provider of promotional products and employee recognition solutions services. Halo was acquired by TPG Growth in June 2018. Halo is private and does not publicly disclose its financials. HALO ESTATES: Seeks to Hire Tenina Law as Bankruptcy Counsel ------------------------------------------------------------ Halo Estates, LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to hire Tenina Law, APC, as general counsel. The firm will render these services: (1) review and examine documents and facts, formulate strategies, discuss legal issues pertaining to the facts of this case; (2) prepare and file certain schedules and amendments thereto, applications, motions, orders and other legal papers; (3) explain requirements set by the United States Trustee that have to be performed immediately after the commencement of this case and throughout the duration of the case; (4) prepare various documents that must be filed with the United States Trustee, including the "7-day Package" and monthly operating reports; (5) advise on any and all reporting requirements and amounts of quarterly fees set by the United States Trustee's Guidelines and assist in timely compliance with those guidelines; (6) research arising issues, prepare and file all necessary pleadings to effectively represent Debtor in Possession and estate's best interest; (7) represent Debtor at all hearings before the United States Bankruptcy Court involving the Debtor in its capacity as Debtors-in Possession; (8) recover and/or administer any and all assets of the estate, review proofs of claim and, if necessary, object to them; (9) if necessary, restructure unsecured debts, determine the extent of secured interests of the secured and under-secured creditors, if applicable, file moving papers to assume or reject executory contracts, formulate a disclosure statement and a plan, seek approval of a disclosure statement and confirmation of a plan, apply for a discharge order and perform any other tasks necessary for the successful reorganization; (10) seek court approval to use cash collateral, establish the budget of expenditures for the estate, provide adequate protection to secured creditors; and (11) seek court orders in any other related matter arising in this case. Tenina Law will be paid at these rates: Alla Tenina, Esq. $550 per hour Paralegals $175 per hour Tenina Law received an advance retainer fee of $20,000. Alla Tenina, principal attorney of Tenina Law, Inc., attests that he and his firm do not hold or represent an interest adverse to the estate. The counsel can be reached through: Alla Tenina, Esq. TENINA LAW INC. 15250 Ventura Bvld, Suite 601 Sherman Oaks, CA 91403 Phone: (213) 596-0265 Email: alla@teninalaw.com About Halo Estates LLC Halo Estates LLC is a Los Angeles-based real estate company. Halo Estates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-10025) on January 7, 2025, listing up to $50,000 in both assets and liabilities. Judge Martin R. Barash handles the case. Alla Tenina, Esq., represents the Debtor as legal counsel. HANESBRANDS INC: Moody's Rates New Senior Secured Loans 'Ba2' ------------------------------------------------------------- Moody's Ratings assigned Ba2 ratings to Hanesbrands Inc.'s new senior secured credit facilities including its new 5-year $750 million revolving credit facility, new 5-year $400 million Term Loan A and new 7-year $600 million Term Loan B. The company's B1 corporate family rating, B1-PD probability of default rating and B3 senior unsecured ratings remain unchanged. The SGL-2 speculative grade liquidity score (SGL) also remains unchanged. The outlook is stable. Proceeds from the proposed new facilities will be used to pay off Hanesbrands' existing Term Loan A due 2026, Term Loan B due 2030 and partly pay off the company's existing 4.875% senior unsecured notes due 2026. Moody's anticipate any remaining 2026 notes will be refinanced well before maturity. The proposed transaction helps push out the company's maturities and will be leverage neutral. The Ba2 rating on the existing senior secured credit facility will be withdrawn at transaction close. RATINGS RATIONALE Hanesbrands' B1 CFR reflects the company's well-known brands and leading share in the innerwear product category and its typically low-cost supply chain. Hanesbrands' credit profile also reflects the more focused business following the Champion sale and the company's good liquidity. Moody's expect that the company will remain focused on reducing leverage to its stated long-term target of 2.0x-3.0x net debt/reported EBITDA. Additionally, management has taken creditor-friendly steps such as halting dividends and reducing capital expenditures which has bolstered free cash flow and liquidity. Also considered in the credit profile is Hanesbrands' significant customer concentration which leaves it susceptible to volatility in the buying patterns of large retailers, exposure to cotton, freight and other input costs and fact that apparel basics such as those sold by Hanesbrands are in a category where price is a significant factor influencing the consumer's buying decisions. 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 a dollar-capped amount equivalent to $575 million and 100% of Consolidated EBITDA, plus unlimited amounts subject to 3.5x senior secured net leverage ratio. There is no inside maturity sublimit. A "blocker" provision restricts the transfer of material intellectual property to unrestricted subsidiaries or any non-loan parties. Investments in unrestricted subsidiaries (except for any receivables subsidiaries) are only permitted in reliance on the investments general basket. The credit agreement is expected to provide some limitations on up-tiering transactions, requiring affected lender consent for amendments that subordinate the debt or liens. The credit agreement is expected to include "J.Crew", "Chewy", "Serta", "Envision" and "Pluralsight" protective provisions. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be upgraded following a sustained improvement in operating performance and credit metrics and the continued maintenance of a balanced financial strategy that supports deleveraging and at least good liquidity, particularly a timely refinancing of its remaining 2026 maturities. Quantitatively, ratings could be upgraded if Moody's-adjusted debt/EBITDA is maintained below 4.25x and EBITA/interest is maintained above 2.5x. Ratings could be downgraded should the company suffer negative revenue and profitability trends. Inability to refinance the remaining 2026 maturities in a timely fashion could also lead to a downgrade. Quantitatively, ratings could be downgraded if Moody's-adjusted debt/EBITDA remains above 5.5x or EBITA/interest is sustained below 1.75x. Headquartered in Winston-Salem, North Carolina, Hanesbrands Inc. manufactures and distributes basic apparel products under brands that include Hanes, Maidenform, Bali, Bonds and Playtex. Revenue for the go-forward business following the sale of Champion was about $3.5 billion for the 12 months ended December 31, 2024. The principal methodology used in these ratings was Retail and Apparel published in November 2023. HIGH POINT ACADEMY: Moody's Lowers Rating to 'Ba3' -------------------------------------------------- Moody's Ratings has downgraded High Point Academy (HPA), SC's rating to Ba3 from Ba1. The school had $25.3 million of outstanding debt as of fiscal year end 2024. The downgrade to Ba3 reflects the school's mismanagement of its financial operations resulting in very weak operating performance in fiscal 2024, including the breach of a debt service coverage covenant that constitutes an event of default under the school's debt documents. There remains uncertainty around the school's financial performance given weak governance over its auditor and back office support provider. The rating is under review for downgrade as Moody's assess the full extent of the school's financial mismanagement. The school has disclosed that its recently published fiscal 2024 audited financial statements may need to be restated after identifying potential bookkeeping errors related to its accounting software. The review will also consider the school's likelihood of receiving the consent of bondholders to waive its noncompliance with the coverage covenant. The school is also required to hire an independent consultant. RATINGS RATIONALE The downgrade to Ba3 reflects significant deterioration in the school's financial profile, resulting in debt service coverage to 0.76x, well below the coverage covenant of 1.0x and an event of default under the bond documents. Liquidity also fell to just under 100 days cash on hand at the end of fiscal 2024 and is expected to decline further in fiscal 2025, despite a budget that indicates annual debt service coverage will be just above 1.0x. It is not clear at this time whether the school will breach the coverage covenant again in fiscal 2025. Governance is a key consideration given the lack of internal controls over HPA's auditor and back office support provider, resulting in their failure to alert the school of potential errors in bookkeeping in a timely manner as well as the coverage covenant breach at the time of publication of the fiscal 2024 audited financial statements. The school is currently in the process of engaging new auditors and back office support provider, and is reevaluating the bookkeeping system entries for fiscal 2024, which may result in a restatement of results. RATING OUTLOOK Moody's review will consider the ongoing financial impacts of the school's breach of its debt service covenant in fiscal 2024. The review will also consider the school's ability to improve its governance and financial operations in the current fiscal year. Moody's will also incorporate the risk that bondholders do not provide the waiver for noncompliance of the bond covenant, which would result in acceleration of principal. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING A confirmation will be considered if Moody's believe there is not likely to be a material change to the school's operating and financial risks that could significantly impair its operating performance, liquidity and coverage. FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING A downgrade will be considered under a range of circumstances including deterioration of the school's financial profile resulting from ongoing financial losses that result in declining coverage levels, liquidity stress, or delays in receiving a waiver or other resolution of the covenant default. LEGAL SECURITY The school's debt is secured by a revenue pledge and a mortgage. The academy deposits revenues on a monthly basis with the trustee. The school is obligated to engage a consultant if debt service coverage falls below 1.1 times. Debt service coverage below 1.0 times constitutes an event of default. A liquidity covenant requires a minimum of 45 days cash on hand. The debt service reserve fund requirement and additional bonds test encompass a typical three-tiered structure. If the debt service reserve fund is drawn upon, replenishment within 12 months is mandatory. In the event of default due to covenant violation, the school must hire and provide notice of an independent consultant to the bondholders. A majority of bondholders have ten days to reject the consultant. No event of default will be deemed to have occurred if an adequate course of action is commenced within 60 days and remedied in 90 days. The Trustee may waive the covenant violation event of default and its consequences and shall be required to do so at the request of a majority of the bondholders PROFILE High Point Academy is a K-12 stand-alone school located in Spartanburg, South Carolina with the authority to expand to just over 1,400. The school's current year enrollment is 1,204. The school contracts out for back-office functions like payroll, regulatory compliance, reporting and budget services working directly with the business office. METHODOLOGY The principal methodology used in this rating was US Charter Schools published in April 2024. HONDUCRETE REDI: Areya Holder Aurzada Named Subchapter V Trustee ---------------------------------------------------------------- The U.S. Trustee for Region 6 appointed Areya Holder Aurzada, Esq., at Holder Law as Subchapter V trustee for Honducrete Redi Mix, Inc. Ms. Aurzada will be paid an hourly fee of $575 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Aurzada declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Areya Holder Aurzada, Esq. Holder Law 901 Main Street, Ste. 5320 Dallas, TX 75202 Office: 972-438-8800 Mobile: 817-907-4140 About Honducrete Redi Mix Inc. Honducrete Redi Mix Inc. operates as a ready-mix concrete provider in Dallas, Texas. Honducrete Redi Mix sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 25-30372) on January 31, 2025, listing between $1 million and $10 million in both assets and liabilities. Judge Stacey G. Jernigan 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 Email: robert@demarcomitchell.com HULKZ CONSTRUCTION: Updates Secured Claims Pay; Files Amended Plan ------------------------------------------------------------------ Hulkz Construction LLC submitted a First Amended Disclosure Statement for Plan of Reorganization dated February 7, 2025. The Debtor purchased the Business Propeties, as well as a third two family property located at 1122 Webster Street, Schenectady, NY 12303 (the "Webster Property", collectively with the Business Properties, the "Rental Properties"), and immediately installed tenants and began to collect rents. The foreclosure action on the Webster Property (the "Webster Foreclosure") had a foreclosure sale scheduled for February 29th, so the Debtor filed the instant Chapter 11 petition on February 28th to stop the sale, preserve its interest in the Webster Property and provide it with the breathing room afforded by Chapter 11 to allow it to successfully reorganize. The Debtor believes that the only Allowed Priority Tax Claim is the Claim of New York State Department of Taxation and Finance ("NYS") in the sum of $36.56. In accordance with the Plan, this Claim shall be paid, with 10.5% interest (the statutory rate of interest claimed by New York State Department of Taxation and Finance) through and including the Confirmation Date, in one lump-sum payment to be paid on the Effective Date of the Plan. In addition to the Allowed Priority Tax Claims, the Debtor has two very small general unsecured claims held by the Internal Revenue Service ("IRS") in the sum of $945.27 and NYS in the sum of $200.00, for a total of $1,145.27. Given the small amount of said claims, the Debtor has determined, for convenience purposes, to pay these claims in full upon the Effective Date of the Plan along with the Allowed Priority Tax Claims rather than to pay them over the seven years of the Plan. Thus, the total amount due hereunder on the Effective Date of the Plan shall be in the approximate sum of $1,182.27. Class 1 designated under and by the Plan consists of the Allowed Secured Claim of RTO REO, LLC ("RTO") which is secured by a lien against the Hamburg Property. The Debtor shall reinstate the terms of the original note and mortgage agreement and will pay all sums due thereunder on a timely basis as they come due. The Debtor will further cure all pre-petition mortgage arrears over a period of 7 years, as follows: payments shall be made in 84 equal monthly installments, commencing on the Effective Date of the Plan and continuing until the obligation is paid in full. Under the Debtor's plan of reorganization, RTO will retain its first position mortgage lien on the Hamburg Property until such time as the obligation to RTO is paid in full. The full amount of the claim owing to RTO is $196,786.05. Of that sum, the full amount of pre-petition arrears due to RTO is $44,365.18. The Debtor shall continue to make the regular monthly mortgage payments to RTO, which are currently in the sum of $1,257.54, as they come due. Additionally, the Debtor shall pay the pre-petition arrears pursuant to Class 1 of the Plan, which payments shall be in the sum of $528.16 per month. Class 2 designated under and by the Plan consists of the Allowed Secured Claim of U.S. Bank, N.A. which is secured by a lien against the Brandywine Property. The Debtor shall reinstate the terms of the original note and mortgage agreement and will pay all sums due thereunder on a timely basis as they come due. The Debtor will further cure all pre-petition mortgage arrears over a period of 7 years, as follows: payments shall be made in 84 equal monthly installments, commencing on the Effective Date of the Plan and continuing until the obligation is paid in full. Under the Debtor's plan of reorganization, US Bank will retain its first position mortgage lien on the Brandywine Property until such time as the obligation to US Bank is paid in full. The full amount of the claim owing to US Bank is $174,665.43. Of that sum, the full amount of pre-petition arrears due to US Bank is $43,889.75. The Debtor shall continue to make the regular monthly mortgage payments to US Bank, which are currently in the sum of $1,007.94, as they come due. Additionally, the Debtor shall pay the pre-petition arrears pursuant to Class 2 of the Plan, which payments shall be in the sum of $522.50 per month. Class 3 designated under and by the Plan consists of Allowed Stock Interests. Other than having paid the retention fees for the Debtor's attorney and some miscellaneous expenses, the holders of Class 3 Claims have thus far contributed no new value to the Debtor. There shall be no dividends on any Class of corporate stock declared or distributed pending the full and final payment of all sums required under the Plan. All monies which shall be used to make the payments to all holders of Administrative claims, Priority Tax claims, Class 1 Claims, Class 2 Claims and Class 3 Claims shall be derived from the Debtor's operations, as well as from monies contributed by Doodnauth. The Bankruptcy Court has scheduled a hearing to consider confirmation of the Plan for March 18, 2025 at 11:30 a.m. before the Honorable Nancy Hershey Lord, United States Bankruptcy Judge, at the United States Bankruptcy Court for the Eastern District ofNew York. A full-text copy of the First Amended Disclosure Statement dated February 7, 2025 is available at https://urlcurt.com/u?l=odNeHq from PacerMonitor.com at no charge. Counsel for the Debtor: Raymond W. Verdi Jr., Esq. Law Offices of Raymond W. Verdi Jr., PC 116 East Main Street, Suite C Patchogue, NY 11772 Telephone: (631) 289-2670 Facsimile: (631) 758-2304 About Hulkz Construction LLC Hulkz Construction LLC is in the business of owning and operating the real properties being (1) a two family property located at 1834 Hamburg Street, Schenectady, NY 12304 (the "Hamburg Property") and (2) a one family property located at 142 N. Brandywine Ave., Schenectady, NY 12307 (the "Brandywine Property") (collectively the "Business Properties"). The Debtor sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-70785) on February 5, 2024, listing up to $50,000 in both assets and liabilities. Judge Nancy Hershey Lord presides over the case. Raymond W. Verdi Jr., Esq. at the Law Offices of Raymond W. Verdi Jr., is the Debtor's counsel. HYPERSCALE DATA: Issues $1.93M Convertible Note to Orchid Finance ----------------------------------------------------------------- Hyperscale Data, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company entered into an Exchange Agreement with Orchid Finance LLC, a Nevada limited liability company, pursuant to which the Company issued to the Investor a convertible promissory note in the principal face amount of $1,925,141.71in exchange for the cancellation of the outstanding term note issued by the Company to the Investor on April 29, 2024, which Original Note, as of the Closing Date, had outstanding principal and accrued but unpaid interest of $1,925,141.71. The Note: * has a principal face amount of $1,925,141.71. The Note accrues interest at the rate of 15% per annum, unless an event of default (as defined in the Note) occurs, at which time the Note would accrue interest at 18% per annum. The Note will mature on May 5, 2025. * is convertible into shares of the Company's class A common stock, par value $0.001 per share at any time after NYSE American approval of the Supplemental Listing Application at a fixed conversion price of $4.00 per share, which conversion price represented a $0.05 premium to the closing price of the Common Stock on the Closing Date. The Conversion Price is only subject to adjustment in the event that the Company does a stock split or similar transaction of the Common Stock. * contains standard and customary events of default including, but not limited to, failure to pay amounts due under the Note when required, failure to deliver Conversion Shares when required, default in covenants and bankruptcy events. About Hyperscale Data Headquartered in Las Vegas, NV, Hyperscale Data, Inc., formerly known as Ault Alliance, Inc., is transitioning from a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact to becoming solely an owner and operator of data centers to support high performance computing services. Through its wholly and majority-owned subsidiaries and strategic investments, Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries. It also provides, through its wholly owned subsidiary, Ault Capital Group, Inc., mission-critical products that support a diverse range of industries, including an artificial intelligence software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, Hyperscale Data is actively engaged in private credit and structured finance through a licensed lending subsidiary. New York, New York-based Marcum LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated April 16, 2024, citing that the Company has a working capital deficiency, has incurred net losses, and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. ID ELECTRIC: Unsecureds to Split $16.5K via Quarterly Payments -------------------------------------------------------------- ID Electric, LLC, filed with the U.S. Bankruptcy Court for the District of Arizona a Plan of Reorganization under Subchapter V dated February 3, 2025. The Debtor, headquartered in Phoenix, Arizona, has over 20 years of experience providing residential and commercial electrical services. Serving areas such as Mesa, Scottsdale, Gilbert, and Chandler, the Debtor handles projects of all sizes with expertise in panel replacements, diverse wiring, and light installations. The company is committed to delivering reliable, affordable solutions tailored to each client's needs. In March 2021, the Debtor, applied for a loan through the Small Business Administration ("SBA") to secure working capital. Comerica Bank serviced the loan, and as of the petition date, the Debtor owed approximately $80,000 to the bank. Additionally, the Debtor faced substantial credit card debt with high monthly payments. Despite its strong reputation, and steady stream of business, the Debtor had no feasible way of paying the BSA loan and credit card debt. As a result, the Debtor sought Chapter 11 relief to reorganize its debts and sustain operations. Through this reorganization, the Debtor will restructure its liabilities and use its post-petition income to fund payments due under the Plan. This will provide a return to creditors in excess of what they would receive in a Chapter 7 liquidation. With operational changes made by the Debtor, the Debtor will be able to generate revenue sufficient to fund the Plan as set forth herein. Class II consists of all Allowed Unsecured Claims against the Debtor that are not entitled to classification in any other Class, currently asserted in filed Proofs of Claim or on the Debtor's Schedules in the total amount of $232,673.11. The Debtor shall pay holders of Allowed Class II Claims their pro rata share of $16,500.00. The Debtor shall make quarterly payments of $1,375 commencing on the Plan's Effective Date and continuing on the same day every three months thereafter until paid in full. In addition to the foregoing, the Debtor will pay any proceeds received from avoided and recovered transfers under Code Sections 542, 547, 548, 549, and 550 of the Bankruptcy Code that remain after the payments and credits provided for under Section 10.2 herein. No prepayment penalty shall apply to Class II. Class II is impaired. Class III consists of all Allowed Equity Interests arising by virtue of a member's ownership interest in the Debtor. Class III shall retain its Equity Interests in the Debtor to the same extent and validity and upon the same terms as its prepetition Equity Interest. Class III is not impaired. On the Effective Date, the Debtor will begin making payments to Creditors in accordance with the Plan. The Debtor projects it will have accumulated sufficient funds over the course of the reorganization to pay the Administrative Claims of the Case Trustee and AJ&G in full on the Effective Date. To the extent the Debtor does not have sufficient funds to pay AJ&G in full on the Effective Date without posing a risk to further performance under the Plan, AJ&G will work with the Debtor to determine a repayment agreement outside of the Plan terms. The Debtor's post-confirmation performance will generate sufficient revenue to repay Class I and Class II within the terms specified herein. A full-text copy of the Plan of Reorganization dated February 3, 2025 is available at https://urlcurt.com/u?l=rm1g6U from PacerMonitor.com at no charge. Counsel to the Debtor: Thomas H. Allen, Esq. David B. Nelson, Esq. Ryan M. Deutsch, Esq. ALLEN, JONES & GILES, PLC 1850 N. Central Ave., Suite 1025 Phoenix, AZ 85004 Ofc: (602) 256-6000 Fax: (602) 252-4712 Email:tallen@bkfirmaz.com dnelson@bkfirmaz.com rdeutsch@bkfirmaz.com About ID Electric ID Electric, LLC provides residential and commercial electrical services. The Debtor sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 24-09494) on November 5, 2024, listing up to $50,000 in assets and up to $500,000 in liabilities. Judge Brenda K. Martin presides over the case. Thomas H. Allen, Esq., at Allen, Jones & Giles, PLC, is the Debtor's legal counsel. INDIVIDUALIZED ABA: Unsecureds to Get $982 per Month for 60 Months ------------------------------------------------------------------ Individualized ABA Services for Families, LLC, submitted an Amended Plan of Reorganization for Small Business dated February 4, 2025. The final Plan payment is expected to be paid on May 1, 2030 which is anticipated to be 59 months after the effective date. Based on the liquidation value of Debtor's assets, SBA's claim is secured up to $216,123.89 ("Secured Claim"). The Secured Claim will be paid at $4,330.68 monthly for 60 months at 7.5% fixed interest rate. The undersecured balance of $732,230.64 773,654.53 is treated in Class 3 as a general unsecured claim ("Unsecured Claim"). Kapitus Servicing, Inc. filed a secured claim for $178,140.86. Based on the liquidation value of Debtor's assets, Kapitus' claim is fully undersecured and treated in Class 3 as a general unsecured claim. Concurrently with this Amended Plan, Debtor is filing a Motion to Value Secured Claim of Kapitus to be heard on March 12, 2025 at 10:30 a.m. Samson filed a secured claim for $150,086.66. Based on the liquidation value of Debtor's assets, Samson's claim is fully undersecured and treated in Class 3 as a general unsecured claim. Concurrently with this Amended Plan, Debtor is filing a Motion to Value Secured Claim of Samson to be heard on March 12, 2025 at 10:30 a.m. Class 3 consists of Non-priority unsecured creditors. The total amount of the allowed general unsecured claims is $1,472,832.35 and includes the undersecured portion of Newtek Bank's claim as well as the fully undersecured claims of Kapitus Servicing, Inc, and Funding by Samson. This Class is impaired. Based on the liquidation analysis and the income valuation of the Debtor's assets, the holders of allowed general unsecured claims will be receiving an estimated 4% pro-rata distribution through the plan. The distribution to allowed general unsecured claims will be made monthly, with the first payment of $981.86 due on the Effective Date, followed by 59 consecutive payments, each in the amount of $981.86 to be paid pro-rata to each holder of allowed general unsecured claim. The Debtor's proposed 5-year projections itemize the Debtor's revenue sources and the expenses for the next 5-years. The Debtor intends to fund its plan from the continued operation on its business, the funds in its bank account, and potential preference recovery. Debtor's projections were prepared by carefully analyzing the historical income and expenses, the Debtor's performance during the present case, and the prospective income and expenses, with the changes made to its business operation since the filing of the bankruptcy case. A full-text copy of the Amended Plan dated February 4, 2025 is available at https://urlcurt.com/u?l=5Yt9MT from PacerMonitor.com at no charge. Counsel to the Debtor: Michael Jay Berger, Esq. Law Offices of Michael Jay Berger 9454 Wilshire Blvd., 6th Floor Beverly Hills, California 90212-2929 Telephone: (310) 271-3223 Facsimile: (310) 271-9805 E-mail: michael.berger@bankmptcypower.com About Individualized ABA Services for Families Individualized ABA Services for Families, LLC, sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-41559) on Oct. 2, 2024, with total assets of $193,244 and total liabilities of $1,635,914. Raajna Naidu, chief executive officer, signed the petition. Judge William J. Lafferty oversees the case. The Debtor is represented by Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger. INGENOVIS HEALTH: $675MM Bank Debt Trades at 51% Discount --------------------------------------------------------- Participations in a syndicated loan under which Ingenovis Health Inc is a borrower were trading in the secondary market around 49.3 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $675 million Term loan facility is scheduled to mature on March 6, 2028. About $650.4 million of the loan has been drawn and outstanding. Ingenovis Health is an Ohio based 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. Ingenovis is majority owned by Cornell and Trilantic Capital Partners (the Investor Group). INNOVEREN SCIENTIFIC: FWHC Holdings and Affiliates Exit Stake ------------------------------------------------------------- FWHC Holdings, LLC disclosed in a Schedule 13D/A filed with the U.S. Securities and Exchange Commission that as of December 13, 2024, it and its affiliates -- HOA Capital LLC, J. Rex Farrior, III, FWHC Bridge, LLC, Todd R. Wagner, and FWHC Bridge Friends, LLC -- beneficially own 0 shares of Innoveren Scientific, Inc. common stock, following the sale of all previously held shares, preferred stock, and warrants in privately negotiated transactions on December 13, 2024. FWHC Holdings, LLC may be reached at: Attn: J. Rex Farrior, III FWHC Holdings, LLC 1306 W Kennedy Blvd Tampa, FL, 33606 Tel: 813-251-0955 A full-text copy of FWHC Holdings' SEC Report is available at: https://tinyurl.com/mr3f6znk About Innoveren Scientific Innoveren Scientific Inc. (formerly H-CYTE Inc.) -- http://www.InnoverenScientific.com-- is a life science and biotech incubator company, focused on advancing new technologies in areas of unmet need across multiple indications, with the ultimate goal of improving patient lives. The company invests in and fosters innovative technologies that are supported by a strong scientific foundation, which have relatively short timelines and low costs to achieve meaningful value inflection points. Tampa, Florida-based Frazier & Deeter, LLC, the Company's auditor since 2018, issued a "going concern" qualification in its report dated May 10, 2023, citing that the Company has negative working capital, has an accumulated deficit, has a history of significant operating losses, and has a history of negative operating cash flow that raise substantial doubt about its ability to continue as a going concern. The Company has not filed its Annual Report on Form 10-K for the period ended Dec. 31, 2023, and its Quarterly Report on Form 10-Q for the period ended June 30, 2024. INOTIV INC: Posts $27.6 Million Net Loss in Q1 2025 --------------------------------------------------- Inotiv, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a consolidated net loss of $27.6 million on $119.8 million of revenue for the three months ended December 31, 2024, compared to a consolidated net loss of $15.8 million on $135.5 million of revenue for the three months ended December 31, 2023. As of December 31, 2024, the Company had $772.9 million in total assets, $603.1 million in total liabilities, and $169.8 million in total equity. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/5y25deub 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. IRECERTIFY: Unsecured Creditors Will Get 10% of Claims in Plan -------------------------------------------------------------- iRecertify filed with the U.S. Bankruptcy Court for the District of Utah a Disclosure Statement in connection with the Chapter 11 Plan of Reorganization dated February 4, 2025. The Plan proposes a structured reorganization of the Debtor's financial obligations. On June 27, 2024, the United States Supreme Court issued its decision in Harrington v. Purdue Pharma L.P. et al., holding that the Bankruptcy Code does not authorize nonconsensual third-party releases outside the context of asbestos-related cases. The ruling clarified that a Chapter 11 plan cannot extinguish or limit the liability of non-debtor third parties, including corporate officers, owners, or personal guarantors, without the express consent of affected creditors. In light of this ruling, the Plan does not seek non-consensual third-party releases but instead provides for limited consensual releases of personal guarantors. Class 3.1 consists of general non-priority unsecured claims and will receive a distribution of 10% of the allowed claim amount. Class 4 consists of Equity Interests. Under the Plan, Holders of Equity Interests in the Debtor are given two distinct options regarding their treatment and participation in the reorganized Debtor. Each Equity Interest Holder must make an affirmative election in writing within 60 days after the Effective Date of the Plan. Election Options for Equity Holders Option 1 Receive a Percentage of Their Claim and Surrender Equity. Holders of Equity Interests may choose to receive a pro rata distribution equal to 10% of their allowed unsecured claim (the "Equity Holder's Claim Percentage"), in exchange for forfeiting and surrendering all of their equity interests in the Debtor. By electing Option 1: * The Holder will be treated as a general unsecured creditor and will participate in distributions made under the Plan to Class 3.1 unsecured creditors. * The Holder will no longer have any ownership interest in the Debtor as of the Effective Date. * The distribution will be made in the same manner and on the same terms as those provided for general unsecured creditors. Option 2 Retain Equity by Forfeiting Payment on Unsecured Claims. Alternatively, Holders of Equity Interests may choose to retain their equity interests in the reorganized Debtor but must waive any right to receive distributions on their unsecured claims. By electing Option 2: * The Holder will not receive any payment or distribution on their unsecured claim under the Plan. * The Holder will retain and continue to own their equity interests in the reorganized Debtor. * The Holder's unsecured claim will be extinguished as of the Effective Date, and they waive any right to participate in Class 3.1 distributions. * This election is final and irrevocable once made. The Debtor will use future business revenue to fund payments. A full-text copy of the Disclosure Statement dated February 4, 2025 is available at https://urlcurt.com/u?l=2APK7c from PacerMonitor.com at no charge. About IRecertify IRecertify, doing business as Warehouse B, is a merchant wholesaler of professional and commercial equipment and supplies. IRecertify sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Utah Case No. 24-25156) on Oct. 7, 2024. In the petition filed by Brett Kitson, as managing member, the Debtor estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. The Debtor is represented by: Russell S. Walker, Esq. PEARSON BUTLER PLLC 1802 West South Jordan Parkway Suite 200 South Jordan, UT 84095 Tel: 801-495-4104 Email: russellw@pearsonbutler.com JACKSON HOSPITAL: Sec. 341(a) Meeting of Creditors on March 25 -------------------------------------------------------------- On February 4, 2025, filed Chapter 11 protection in the U.S. Bankruptcy Court for the Middle District of Alabama. According to court filing, the Debtor reports between $100 million and $500 million in debt owed to 200 and 999 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on March 25, 2025 at 01:30PM at Opelika Video 341 - 7 - https://www.zoomgov.com/j/16196595310. About Jackson Hospital & Clinic Inc. Jackson Healthcare is one of the nation's premier providers of healthcare workforce services and the parent company of more than 20 businesses that share a common mission: to improve the delivery of patient care and the lives of everyone it touches. Powered by expert associates and tens of thousands of clinician providers, it delivers quality care when and where it's needed in communities across the country -- helping thousands of health systems, hospitals and medical facilities serve over 20 million patients a year. Jackson Healthcare -- which marks its 25(th) anniversary in 2025 -- is Great Place To Work(R) Certified(TM) and appears on the latest Forbes list of America's Top Private Companies; Fortune lists of the 100 Best Companies to Work For(R) and Best Workplaces in Health Care(TM); and PEOPLE(R) list of Companies that Care. Learn more at JacksonHealthcare.com Jackson Hospital & Clinic Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Ala. Case No. 25-30256) on February 4, 2025. In its petition, the Debtor reports between $100 million and $500 million. Honorable Bankruptcy Judge Christopher L. Hawkins handles the case. The Debtor is represented by: Derek F. Meek, Esq. Burr & Forman LLP 1221 Main Street, Suite 1800 Columbia, SC 29201 Telephone: (803) 799-9800 JASMINE R ELMORE: Gets Extension to Access Cash Collateral ---------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of North Carolina issued a second interim order extending Jasmine R. Elmore, DDS, PLLC's authority to use its cash collateral. The second interim order authorized Jasmine R. Elmore, a dental practice in Wilson, N.C., to use cash collateral to pay $148,137.48 in total expenses for the period from Feb. 11 to April 10. Potential secured creditors, including Live Oak Banking Company, Rapid Finance and the U.S. Small Business Administration, will be provided with protection in the form of a post-petition lien on cash and inventory. As additional protection, Live Oak will receive a monthly payment of $5,027.47 starting this month. The next hearing will be held on April 10. About Jasmine R. Elmore, DDS, PLLC Jasmine R. Elmore, DDS, PLLC owns and operates Wilson Pediatric Dentistry, a pediatric dental practice located near Greenville, NC. The practice offers a wide range of services focused on promoting the healthy growth and development of children's teeth. With an emphasis on preventative care, the Debtor provides treatments that support optimal dental health for young patients. Jasmine R. Elmore, DDS, PLLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-00123) on January 13, 2025. In its petition, the Debtor reports total assets of $68,777 and total liabilities of $1,493,926. Honorable Bankruptcy Judge Joseph N. Callaway handles the case. The Debtor is represented by: Danny Bradford Paul D. Bradford, PLLC Tel: 919-758-8879 Email: dbradford@bradford-law.com JENRAN HOLDINGS: Unsecureds Will Get 5% of Claims over 12 Months ---------------------------------------------------------------- JenRan Holdings, LLC, filed with the U.S. Bankruptcy Court for the Central District of California a Disclosure Statement describing Plan of Reorganization dated February 7, 2025. JenRan Holdings, LLC is a California Limited Liability Corporation established on August 11, 2021, as a trucking business. JenRan Holdings leases its trucks to Cooper and Sons Transportation, Inc. The Debtor has two shareholders, Jennifer Harden with 51% interest and Randy Harden with 49% interest. Randy Harden is the managing member of the Debtor. Due to the complexities of the trucking industry, there are numerous steps the debtor needs to take to be able to put the trucks back on the road including (1) reactivation of authority; registration of trucks; payment of any outstanding IFTA or DOT fees; DOT inspection; prep and drive trucks to Mercer in Louisiana for inspection and pass Mercer inspection. The estimated timeline for completion of this process is approximately 3 months. Debtor anticipates having the trucks in operation by March 2025. The Debtor's primary goal is to reorganize and restructure the debts including, but not limited to, obtaining more reasonable interest rates and monthly payment on the secured loans to be able to continue running its business activity. The debtor has taken necessary steps to get the trucks back in operation and has reactivated its contract/lease with Cooper and Sons. Debtor anticipates having the trucks in operation by the middle of March and generating income to start making payments to the lender beginning April 2025. The Debtor anticipates based on its budget that it will have sufficient income from the lease to pay all of its expenses and after the five-year repayment plan, the income will further increase and keep the company viable. Class 4 consists of General Unsecured Claims. The allowed unsecured claims total $62,479.00. This Class shall be paid $260.32 (monthly) for 12 months after the effective date of the Plan. This Class will receive a distribution of 5% or $3,123.95 of their allowed claims. This Class is Impaired. Class 5 consists of Interest Holders. In this case, Debtor, JenRan Holdings, LLC, is a California Limited Liability Company. Its members, Jennifer Harden, 51% interest and Randy Harden with 49%. The interest holders of the Debtor, JenRan Holdings, LLC will retain their share ownership interest in the property but will not receive any distributions, dividends, or payments with respect to their share ownership interest until all payments have been made by the Debtor on the Plan with respect to Class 3 and 4. The Plan will be funded by the Debtor's post-petition revenues from operation of its business. Cooper and Sons Transportation Inc., has will absorb the cost of repairs needed to get the trucks back in operation by March, 2025. A full-text copy of the Disclosure Statement dated February 7, 2025 is available at https://urlcurt.com/u?l=lvFoGM from PacerMonitor.com at no charge. Counsel to the Debtor: Onyinye N. Anyama, Esq. Anyama Law Firm, A Professional Corporation 18000 Studebaker Road, Suite 325 Cerritos, CA 90703 Telephone: (562) 645-4500 Facsimile: (562) 645-4494 Email: info@anyamalaw.com About JenRan Holdings JenRan Holdings, LLC, is a California Limited Liability Corporation established on August 11, 2021, as a trucking buisness. The Debtor sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-19983) on Dec. 6, 2024, listing $100,001 to $500,000 in both assets and liabilities. Judge Barry Russell presides over the case. Onyinye N Anyama, Esq. at Anyama Law Firm, is the Debtor's counsel. JORDAN HEALTH: Plan Exclusivity Period Extended to June 4 --------------------------------------------------------- Judge Thomas M. Horan of the U.S. Bankruptcy Court for the District of Delaware extended Jordan Health Products I, Inc. and its affiliates' exclusive periods to file a plan of reorganization and obtain acceptance thereof to June 4 and August 4, 2025, respectively. As shared by Troubled Company Reporter, the Debtors submit that sufficient cause exists to extend the Exclusive Periods pursuant to Bankruptcy Code section 1121(d) based on the following: * The necessity of sufficient time to permit the negotiation of a plan of liquidation. The Debtors have not made any prior requests for the extension of the Exclusive Periods, and only seek a 120-day extension through this Motion. The Debtors and their professionals have expended significant efforts to sufficiently market the Debtors' assets for sale, conducted a successful sale process, have obtained approval of and closed two separate sales. The Debtors require additional time to determine if a chapter 11 plan is feasible under the circumstances. * The Debtors have made good faith progress toward exiting Chapter 11. Since the Petition Date, the Debtors have made substantial and meaningful progress under chapter 11, including: (a) soliciting bids for their assets, and (b) obtaining Court approval of and closing two sales within the first five months of these Chapter 11 Cases; and (c) administering these Chapter 11 Cases efficiently, economically, and cooperatively with numerous parties in interest. The Debtors intend to maintain their momentum to ensure a swift exit from these Chapter 11 Cases. * The Debtors have reasonable prospects for filing a viable plan. The the Debtors' aim in commencing these Chapter 11 Cases was to sell their assets pursuant to section 363 of the Bankruptcy Code for the best possible price. With both the MedSurge Division and remaining asset sales closed, the Debtors will use the available time under the TSA to determine if a chapter 11 plan is feasible under the circumstances. * Unresolved contingencies exist. Although the Debtors have made significant progress in these Chapter 11 Cases thus far, significant, unresolved contingencies exist, including, but not limited to, resolving outstanding sales tax liabilities with the affected states and adhering to the terms of the TSA. Counsel to the Debtors: Christopher A. Ward, Esq. Shanti M. Katona, Esq. Katherine M. Devanney, Esq. Michael V. DiPietro, Esq. POLSINELLI PC 222 Delaware Avenue, Suite 1101 Wilmington, Delaware 19801 Tel: (302) 252-0920 Fax: (302) 252-0921 Email: cward@polsinelli.com skatona@polsinelli.com kdevanney@polsinelli.com mdipietro@polsinelli.com - and - Ashley D. Champion, Esq. POLSINELLI PC 1201 W. Peachtree St. NW, Suite 1100 Atlanta, Georgia 30309 Tel: (404) 253-6000 Fax: (404) 252-6060 Email: achampion@polsinelli.com About Jordan Health Products Jordan Health Products I, Inc., doing business as Avante Health Solutions, is a provider of medical equipment solutions, selling new and refurbished equipment, parts, service, support, and training to healthcare facilities worldwide. Several Avante businesses act as independent service organizations ("ISO") for various medical facilities to provide maintenance and support services for equipment manufactured and produced by other companies (known as original equipment manufacturers, or "OEMs"). Jordan Health Products I, Inc. and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12271) on Oct. 8, 2024. In the petitions signed by Rob Hubbard, chief restructuring officer, the Debtors disclosed up to $100 million in estimated assets and up to $500 million in estimated liabilities. The Debtors tapped Polsinelli PC as counsel, Riveron Management Services, LLC as restructuring advisor, and Livingstone Partners LLC as investment banker. Omni Agent Solutions, Inc., is the Debtors' notice, claims, and balloting agent. JUMP FINANCIAL: Moody's Affirms 'Ba1' CFR, Outlook Stable --------------------------------------------------------- Moody's Ratings affirmed Jump Financial, LLC's Ba1 corporate family rating and Ba2 senior secured bank credit facility rating. Moody's also assigned Ba2 ratings to Jump's new $650 million senior secured first lien term loan B and its new $250 million senior secured revolving credit facility. The outlook is stable. RATINGS RATIONALE The ratings affirmation reflects Jump's strong financial performance, highly liquid balance sheet, and stable leverage. The rating action also reflects Jump's equity retention which represents a healthy component of its funding profile, supplemented by its long-term debt. While the firm significantly expanded its trading capital between 2020 and 2024 to support its trading activities, the majority of that growth was from internally generated equity through retained earnings on the back of strong profitability, which limited the impact on balance sheet leverage, a credit positive. Jump's credit profile benefits from the firm's deliberative partnership culture, with key executives and owners maintaining a high level of involvement in risk management and oversight. Jump's ratings also incorporate the firm's relatively narrow business focus on principal trading activities and their inherently high level of operational and market risks. This lack of business diversification can pose greater risks for creditors compared with more diversified securities firms which also generate revenues from fee-based or customer driven activities, while risk management or operational failures could result in rapid and severe losses and a deterioration in liquidity and funding. The stable outlook reflects Moody's expectation that Jump will continue to generate consistent profits and cash flows, maintain its strong liquidity profile, and that its leaders will continue to place a high emphasis on maintaining an effective risk management and controls framework. Jump's Ba2 senior secured first lien term loan rating is one-notch below its Ba1 CFR because obligations at the holding company are structurally inferior to those of Jump's operating companies, where the preponderance of the group's debt and debt-like obligations reside. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Jump's ratings could be upgraded if it were able to sustainably improve the quality and diversity of its profitability and cash flows from the development of substantial and lower-risk ancillary business activities without impacting its balance sheet leverage. Jump's ratings could be downgraded if there were a significant reduction in retained capital or liquidity or an increase in balance sheet leverage, particularly due to an expansion into less liquid assets; if the firm were to suffer from a significant reduction in profitability; if it experienced a substantial trading loss or risk control failure; if increased risk taking fails to materialize in commensurate increases in trading profitability; or if the firm suffered from any adverse changes to corporate culture or management quality. The principal methodology used in these ratings was Securities Industry Market Makers published in June 2024. KKR REAL ESTATE: Moody's Alters Outlook on 'Ba3' CFR to Stable -------------------------------------------------------------- Moody's Ratings has affirmed KKR Real Estate Finance Trust Inc.'s (KREF) Ba3 corporate family rating and KREF Holdings X LLC's Ba3 backed senior secured first lien bank credit facility rating. Moody's changed the outlook on both entities to stable from negative. RATINGS RATIONALE The Ba3 CFR reflects KREF's adequate capitalization and the strength of its competitive position resulting from its affiliation with KKR & Co. Inc., its external manager. The rating also reflects the risks from KREF's concentration in commercial real estate (CRE) lending, its elevated problem loans and its significant reliance on confidence-sensitive secured funding. Moody's changed the outlook to stable from negative to reflect the company's stabilizing asset quality, improving capitalization and return to profitability. KREF's asset quality has stabilized recently. In the last three quarters, KREF has not added any new loans into its two weakest internal risk rating categories ("5" or "4"), although some existing loans have been downgraded to 5 or reclassified as real estate owned (REO). The amount of earning assets risk rated 5 or 4 fell to $306 million and $194 million, respectively, as of December 31, 2024 from $512 million and $476 million, respectively, as of December 31, 2023. REO and equity method investments, real estate asset rose to $400 million from $183 million over the same period. The total of these three categories fell to $899 million from $1.17 billion year over year, a 23% decline. Although KREF's asset quality has stabilized, the company still has significant exposure to office loans maturing in the next two to three years, which may face challenges in securing takeout financing. KREF has seven performing office loans (risk rated "3") with a combined outstanding investment balance of $936 million, most of which are in challenging office markets such as Dallas/Plano, Washington D.C., Philadelphia and Chicago. These properties do not have substantial reserves for future credit losses, as they are currently performing. KREF's capitalization, measured as the ratio of tangible common equity to tangible managed assets, improved to 21.2% as of December 31, 2024, up from 18.6% the previous year, marking a 260 basis point increase. This improvement was primarily driven by a reduction in total assets, despite KREF having resumed lending activities. KREF's allowance as a percentage of gross loans, a capital buffer for future losses, fell to 2.0% as of December 31, 2024 from 2.9% as of December 31, 2023, mostly due to the recognition of losses when 5-rated loans were converted to REO. KREF returned to an annual profit of $13.1 million in 2024 following a $53.9 million loss in 2023. The loss in 2023 was driven by a $175 million provision for net credit losses, which declined to an $81 million net provision in 2024. The stable outlook reflects Moody's expectation that KREF's capital position and funding profile will remain stable over the next 12-18 months, although additional provisions may be needed if the company's legacy office loans deteriorate. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade KREF's ratings if the company: 1) further diversifies its funding sources to include additional senior unsecured debt and lower reliance on market-sensitive repurchase facilities; 2) maintains strong, stable profitability and low credit losses; and 3) maintains a strong capital position. KREF's ratings could be downgraded if the company: 1) experiences further deterioration in asset quality; 2) weakens its capital position; 3) increases exposure to volatile funding sources or otherwise encounters material liquidity challenges; 4) rapidly accelerates growth; or 5) suffers a sustained decline in profitability. The principal methodology used in these ratings was Finance Companies published in July 2024. KKR REAL ESTATE: S&P Alters Outlook to Stable, Affirms 'B+' ICR --------------------------------------------------------------- S&P Global Ratings revised its rating outlook on KKR Real Estate Finance Trust Inc. (KREF) to stable from negative. S&P also affirmed the 'B+' issuer credit rating. The outlook revision reflects stabilizing asset quality over the second half of 2024 and expected steady CRE market conditions. KREF didn't add loans to its internal watch list over the nine months ended Dec. 31, 2024. The number of watch list loans has declined over the same period as the company continues to find resolutions with manageable losses. The value of the loans with an internal risk rating of '5' (the Minneapolis office loan and the West Hollywood multifamily loan, both of which are on nonaccrual status) was $306 million as of year-end, compared to a peak of $700 million across four loans as of March 31, 2024. Two loans amounting to $194 million are internally risk rated '4'. As of year-end 2024, KREF's watch list loans (rated '4' or '5') amounted to 44% of its adjusted total equity (ATE), versus 81% as of March 31, 2024. KREF's total portfolio value declined to $6.3 billion at the end of 2024 from $7.8 billion the prior year. The company's total office exposure is $1.251 billion (20% of the total portfolio). 90% of its office loan exposure is in class A properties and 10% is in class B. 17% of the office loan exposure is in the risk-rated '5' Minneapolis loan, with the remainder risk rated '3'. Multifamily exposure was $2.757 billion (44% of the total portfolio). S&P said, "In our base case, we anticipate that KREF may need to restructure some or all of the loans on its watch list, but we also expect that potential losses are adequately reserved for." Provisions for credit losses have declined to $120 million including unfunded commitments ($117 million excluding unfunded commitments, or 2% of loans receivable) from a peak of $246 million including unfunded commitments as of March 31, 2024. Reserves have been sufficient to cover the amounts written off over the past two years, which indicates management's ability to adequately reserve for potential strains. This follows a period of rising capitalization rates and lower property valuations, which contributed to moderate markdowns in KREF's portfolio. In the three years ended Dec. 31, 2024, KREF took write-offs of $272 million, and loans worth $288 million were transferred to real estate owned (REO). $336 million is invested in KREF's REO portfolio of as of Dec. 31, 2024 S&P said, "While KREF's losses were sizable through this period, they were mostly in line with the losses of industry peers. Furthermore, we believe that KREF's concentrated exposure to the CRE market is well reflected in our issuer credit rating. "We also think the impact of high interest rates has been realized in KREF's portfolio, and we don't expect systemic pressure on CRE portfolios to the extent we've seen over the last few years. The Fed's rate cuts last fall have provided some support to CRE values, perhaps making it somewhat less difficult to handle impending maturities on troubled loans. "In our view, still-high capitalization rates, pressured property valuations, and loan maturities will continue to drive asset quality deterioration across CRE lenders' books in 2025. The level of deterioration will also depend on location, property type, and the underlying quality of the properties securing the loans. "As market conditions stabilize, we expect that KREF will likely ramp up its origination activity in 2025. As a result, while we expect debt to ATE to increase from 4.75x at year-end 2024, we still think it will remain within our expectations of 5.0x-6.5x on a sustained basis. Leverage declined in recent quarters as repayments exceeded new originations and as KREF (like its peers) used some of the excess liquidity to make voluntary repayments on these repurchase facilities. "We expect KREF to maintain adequate liquidity. KREF's cash on hand of $105 million as of Dec. 31, 2024; its availability of roughly $580 million across various funding facilities (including its $610 million capacity revolver); and its expected loan maturities of at least $538 million in 2025 will, in our view, be sufficient to cover future funding obligations of $292 million, interest payable of about $300 million, and distributions of about $100 million over the next 12 months. We anticipate that new originations and the investment in the REO portfolio will be additional calls on liquidity." Interest coverage as of Dec. 31, 2024, was within the trailing-four-quarter interest income-to-interest expense ratio covenant limit of 1.3x. The covenant limit increases to 1.4x after June 30, 2025. KREF's common stock was trading at approximately 68% of book value at year-end 2024, which limits its flexibility to raise capital through the equity markets. S&P said, "The stable outlook over the next 12 months indicates our expectation that KREF will maintain adequate liquidity to meet its ongoing funding needs, that its asset quality won't deteriorate meaningfully from current levels, and that its leverage will remain in the 5.0x-6.5x range while the company ramps up origination activity." S&P could lower the rating over the next 12 months if: -- Asset quality deteriorates substantially, as indicated by substantial risk-rating migration or by increased provisions for loan losses; -- Liquidity deteriorates, in our view; -- Leverage is sustained above 6.5x; or -- Covenant cushions erode. S&P could raise the rating over the next 12 months if KREF sustains leverage well below 5.0x while CRE market conditions and asset quality remain relatively stable, and if its liquidity stays sufficient. KNIFE RIVER: Moody's Ups CFR to 'Ba1', Outlook Stable ----------------------------------------------------- Moody's Ratings upgraded Knife River Corporation's corporate family rating to Ba1 from Ba2, the probability of default rating to Ba1-PD from Ba2-PD and the rating on the company's senior unsecured notes due 2031 to Ba2 from Ba3. Moody's also assigned a Ba1 rating to Knife River's proposed senior secured bank credit facilities, consisting of a $500 million senior secured revolving credit facility due 2030, $265 million senior secured term loan A due 2030 and $500 million senior secured term loan B due 2032. The SGL-1 Speculative Grade Liquidity Rating remains unchanged. The outlook was changed to stable from positive. The upgrade of Knife River's CFR to Ba1 reflects Moody's expectation that Knife River will continue to maintain solid credit metrics through the cycle with leverage remaining below 2.5x adjusted debt-to-EBITDA and positive free cash flow generation despite increased capital investments. Knife River will use the proceeds of the term loans to refinance the company's existing term loan A (unrated) and to acquire Strata Corp. (Strata) for around $454 million, with the balance of proceeds applied to cash on hand. Strata is a provider of building materials and contracting services, will expand Knife River's geographical footprint in North Dakota and Minnesota. "Since going public in mid-2023, Knife River has done a good job in executing on its operation plans and demonstrating its commitment to conservative financial policies, with leverage remaining below 2.5x debt-to-EBITDA," according to Peter Doyle, a Moody's Ratings VP-Senior Analyst. RATINGS RATIONALE Knife River's Ba1 CFR reflects Moody's expectation of ongoing good operating performance, with adjusted EBITDA margin sustained in the range of 16% - 17% through 2026, modest positive free cash flow generation after capital expenditures and the ability to scale back capital expenditures if the industry environment deteriorated unexpectedly. Knife River's credit profile is supported by underlying favorable demand characteristics that support moderate growth in infrastructure investments and demand for building materials within the states that Knife River has a presence. While Knife River has no direct material exposure to potential tariffs, a risk remains that an overall reduction in construction activity could result. The Ba1 rating is constrained by the inherent cyclicality of demand in the US construction industry, the primary driver of Knife River's revenue. Knife River faces intense competition, which Moody's believe makes material expansion of operating margins and market share gains difficult to achieve and necessitates growth through acquisitions. While Knife River's margins are solid, operating margins are below those of rated building materials peers due to Knife River's geographic concentration and lower margin contracting services business segment. The company's liquidity is a credit strength. Knife River's SGL-1 rating reflects Moody's view that the company will maintain very good liquidity. Moody's project that Knife River will generate around $350 - $375 million in annual cash flow from operations in each of the next two years, which will be sufficient to support Knife River's planned increase in capital expenditures to meet growing demand. Moody's expect that Knife River can scale back capital expenditures if industry demand falters. Cash on hand of around $280 million pro forma year-end 2024 is another source of liquidity. Knife River will have full access to a $500 million revolving credit facility due 2030. Despite the substantial cash position, Knife River may use the revolver for working capital, letters of credit and bolt-on acquisitions. The stable outlook reflects Moody's expectation that Knife River will continue to perform well through the cycle, generating good margins that will support a gradual deleveraging through 2026. Very good liquidity, no material near-term debt maturities and conservative financial policies further support the stable outlook. The Ba1 rating on Knife River's senior secured bank credit facility, the same rating as the corporate family rating, results from its position as the preponderance of debt in the company's capital structure. The revolving credit facility and two term loans are pari passu to each other. The Ba2 rating on Knife River's senior unsecured notes due 2031, one notch below the corporate family rating, result from their subordination to the company's secured debt. Marketing terms for the new senior secured bank credit facility (final terms may differ materially) include the following: incremental pari passu debt capacity up to the greater of 100% of consolidated EBITDA and an equivalent dollar amount, plus unlimited amounts subject to pro forma first lien net leverage of 3.75x. There is an inside maturity sublimit up to the greater of 100% of consolidated EBITDA and an equivalent dollar amount. A "blocker" provision restricts the transfer of material intellectual property to unrestricted subsidiaries. The credit agreement is expected to provide some limitations on up-tiering transactions, requiring affected lender consent for amendments that contractually subordinate the debt or liens, unless such lenders can ratably participate in such priming debt. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS A ratings upgrade could occur if end markets remain supportive of organic growth such that adjusted debt-to-EBITDA is sustained around 2x. Higher level of revenue while maintaining conservative financial policies, preservation of very good liquidity and an unsecured capital structure. A ratings downgrade could occur if adjusted debt-to-EBITDA is sustained above 2.5x or operating performance erodes on a sustained basis. Negative ratings pressure may also transpire if liquidity deteriorates or the company pursues sizeable debt-financed acquisitions or increasingly aggressive financial policies. Knife River (NYSE: KNF), headquartered in Bismarck, North Dakota, is an integrated supplier of aggregates (crushed stone, sand and gravel) and provides construction contracting services. It also manufactures asphalt and ready-mix concrete. Knife River's revenue for the 12 months ending September 30, 2024 was $2.9 billion. The principal methodology used in these ratings was Building Materials published in September 2021. LAVIE CARE: Reaches Settlement Deal w/ IRS in Chapter 11 Case ------------------------------------------------------------- Alex Wittenberg of Law360 Bankruptcy Authority reports that on February 13, 2025, a Georgia bankruptcy judge approved LaVie Care Centers' settlement with the IRS, resolving the final obstacle in the skilled nursing facility operator's Chapter 11 case after the agency agreed to significantly reduce its claims. About Lavie Care Centers LaVie Care Centers, LLC, is the parent company of skilled nursing facility operators and providers, with facilities primarily located in Mississippi, North Carolina, Pennsylvania and Virginia. The company operates 43 licensed facilities, with 4,300 beds, providing short-term rehabilitation, comprehensive post-acute care, and long-term care to its residents. On June 2 and 3, 2024, LaVie Care Centers and 281 affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Lead Case No. 24-55507), before Judge Paul Baisier in Atlanta. The Debtors tapped McDermott Will & Emery, LLP as legal counsel; Stout Capital, LLC as investment banker; and Ankura Consulting as financial advisor. M. Benjamin Jones, senior managing director at Ankura, serves as the Debtors' chief restructuring officer. Kurtzman Carson Consultants, LLC is the claims agent, and maintains the page http://www.kccllc.com/LaVie The U.S. Trustee for Region 21 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. Troutman Pepper Hamilton Sanders, LLP and FTI Consulting, Inc. serve as the committee's legal counsel and financial advisor, respectively. Joani Latimer is the patient care ombudsman appointed in the cases. LAW OFFICE OF JESSICA: Taps Massey and Company as Accountant ------------------------------------------------------------ The Law Office of Jessica Piedra, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Missouri to hire Massey and Company, CPA as accountant. The accountant will charge a flat rate of $1,750 for the preparation and filing of the 2024 federal and state income tax returns. As disclosed in the court filings, Massey and Company, CPA is a "disinterested person" within the meaning of 11 U.S.C. Sec. 101(14). The accountant can be reached through: Benjamin Massey Massey and Company, CPA P.O. Box 421396 Atlanta, GA 30342 Phone: (678) 235-5460 About The Law Office of Jessica Piedra The Law Office of Jessica Piedra, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Mo. Case No. 24-41664) on November 19, 2024, with $1 million to $10 million in assets and $100,001 to $500,000 in liabilities. Judge Brian T. Fenimore presides over the case. The Debtor is represented by Erlene W. Krigel, Esq. at Krigel Nugent Moore, P.C. LILLY INDUSTRIES: Robert Goe Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 16 appointed Robert Goe, Esq., a practicing attorney in Irvine, Calif., as Subchapter V trustee for Lilly Industries, Inc. Mr. Goe will be paid an hourly fee of $545 for his services as Subchapter V trustee while his case administrator, Arthur Johnston, will be paid an hourly fee of $195. In addition, the Subchapter V trustee will receive reimbursement for work-related expenses incurred. Mr. Goe declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Robert P. Goe, Esq. 17701 Cowan Building D, Suite 210 Irvine, CA 92614 Telephone: (949) 798-2460 Facsimile: (949) 955-9437 Email: bktrustee@goeforlaw.com 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. LITTLE MINT: Poyner Spruill Represents Riach Parties & Greene ------------------------------------------------------------- Matthew P. Weiner of Poyner Spruill LLP filed a verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure to disclose that in the Chapter 11 case of The Little Mint, Inc., the firm represents: 1. Riach FTP, LLC Series 5 RS; Riach Family Properties, LLC Series 5 RS; Riach NC Investments, LLC; and Riach NC Properties, LLC (collectively, the "Riach Parties") 2. Greene Ad-Cal Property, LLC ("Greene") Poyner Spruill represents the Riach Parties as creditors and parties in interest. Poyner Spruill represents Greene as a creditor and party in interest. The Riach Parties and Greene have each been informed of the firm's representation of additional parties as set forth above and believe that there is no conflict of interest with respect to such representation. The law firm can be reached at: POYNER SPRUILL LLP Matthew P. Weiner, Esq. Post Office Box 1801 Raleigh, NC 27602-1801 Telephone: (919) 783-6400 Facsimile (919) 783-1075 Email: mweiner@poynerspruill.com About The Little Mint Inc. The Little Mint, Inc. owns multiple Hwy 55 Burgers, Shakes & Fries restaurants. It conducts business under the name Hwy 55 Burgers Shakes & Fries and is based in Mount Olive, N.C. Little Mint sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-04510) on Dec. 31, 2024. In its petition, the Debtor reported assets between $1 million and $10 million and liabilities between $10 million and $50 million. Judge Joseph N. Callaway presides over the case. Rebecca F. Redwine, Esq., at Hendren, Redwine & Malone, PLLC, is the Debtor's legal counsel. LOUKYA INC: Unsecureds Will Get 20.50% of Claims in Plan -------------------------------------------------------- Loukya, Inc., filed with the U.S. Bankruptcy Court for the District of New Jersey a Small Business Plan of Reorganization dated February 5, 2025. The Debtor is a Trucking and Logistics company involved in goods transportation. Loukya Inc was established in June 2016. Loukya Inc. plan to increase the uses of current dormant trucks thus increasing the revenues and profits. Loukya Inc. would make better use of inventory such as adding more trucks to the fleet. After bankruptcy protection of Chapter 11, Loukya Inc. was able to increase one truck, resulting in higher revenues and profits. Loukya Inc. will work with creditors to renegotiate the terms to create the win-win the situation, and subsequently meet the obligations of the agreed terms. During the bankruptcy process, the Loukya Inc has been operating two trucks. In November 2024, the debtor added a third truck, which has significantly increased revenue. As of December 2024, revenue has exceeded that of November 2024, reflecting the positive impact of the additional truck. The Loukya Inc plans to continue expanding operations, adding one truck per year for the next four years to further enhance revenue generation. Class 1 consists of General Unsecured Claims. The allowed unsecured claims total $653,498.88 and will be paid pro rata (proportionate share). This Class is impaired. * In 2026, the Loukya Inc will pay $2,000 per month, totaling $14,000 for the 7 months period. * In 2027, the Loukya Inc will pay $2000 per month for first 5 months and $2500 for remaining 7 months, totaling $27,500 for the year. * In 2028, the Loukya Inc will increase payments to $2,500 per month for first 5 months and $3,000 for remaining 7 months, totaling $33,500 for the year. * In 2029, the Loukya Inc will increase payments to $3,000 per month for first 5 months and $3,500 for the remaining 7 months, totaling $39,500 for the year. * In 2030, the Loukya Inc will pay $4,000 per month, totaling $20,000 for the 5 months period. This Class will receive a distribution of $134,000.00 or 20.50% of their allowed claims. Equity interest holders will retain their ownership in Loukya Inc. throughout the bankruptcy process. No distributions, dividends, or other payments will be made to equity holders until all secured and unsecured creditors' claims have been satisfied in full, in accordance with the repayment plan The Debtor is currently operating three trucks and generating revenue of $2.13 per mile. This results in a total monthly mileage of approximately 25,000 miles and corresponding revenue to cover operational costs, support payroll for three employees, and contribute toward loan payments. The trucking industry is expected to stabilize, and the freight recession in the for-hire sector is anticipated to end by late 2025. Improved freight rates will support better revenue generation for trucking companies. A full-text copy of the Plan of Reorganization dated February 5, 2025 is available at https://urlcurt.com/u?l=6215Ss from PacerMonitor.com at no charge. Counsel to the Debtor: Manu Rajvanshi, Esq. 1091 Amboy Ave, Suite J Edison, NJ 08837 Telephone: 732) 404-7000 Email: manu@justiceontime.com About Loukya Inc. Loukya, Inc., is a Trucking and Logistics company involved in goods transportation. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-20055) on Oct. 10, 2024, listing under $1 million in both assets and liabilities. Judge Michael B. Kaplan oversees the case. Manu Rajvanshi, Esq., is the Debtor's legal counsel. LR GREENVIEW: Mark Sharf Named Subchapter V Trustee --------------------------------------------------- The U.S. Trustee for Region 17 appointed Mark Sharf, Esq., a practicing attorney in Los Angeles, as Subchapter V trustee for LR Greenview, LLC. Mr. Sharf will charge $660 per hour for his services as Subchapter V trustee and will seek reimbursement for work-related expenses incurred. Mr. Sharf declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Mark Sharf, Esq. 6080 Center Drive, 6th Floor Los Angeles, CA 90045 Telephone: (323) 612-0202 Email: mark@sharflaw.com About LR Greenview LR Greenview, LLC filed Chapter 11 petition (Bankr. N.D. Calif. Case No. 25-40170) on January 31, 2025, listing between $100,001 and $500,000 in assets and between $500,001 and $1 million in liabilities. Erin E. Daly, Esq., at Regal Tax & Law Group, P.C. represents the Debtor as bankruptcy counsel. LUTHERAN HOME: Gets Interim OK to Use Cash Collateral ----------------------------------------------------- Lutheran Home and Services for the Aged, Inc. got the green light from the U.S. Bankruptcy Court for the Northern District of Illinois to use cash collateral. The interim order signed by Judge Michael Slade authorized Lutheran to use cash collateral, which consists of revenues, accounts receivable and the amounts held in its operating accounts, until March 7; the occurrence of a "termination event" such as non-compliance with the interim order; or the conclusion of the final hearing. The final hearing is set for March 5. UMB Bank, N.A., in its capacity as master trustee, will be provided with protection for the use of its cash collateral in the form of a replacement lien on all post-petition assets of Lutheran and its affiliates. As additional protection, UMB Bank will have a superpriority administrative expense claim. About Lutheran Home and Services for the Aged Lutheran Home and Services for the Aged, Inc. is a non-profit, mission-driven community offering a range of services including assisted living, memory care, skilled nursing, and short-term rehabilitation, along with extensive outpatient rehabilitation therapy. Lutheran Home and its affiliates filed Chapter 11 petitions (Bankr. N.D. Ill. Lead Case No. 25-01705). At the time of the filing, Lutheran Home reported between $100 million and $500 million in both assets and liabilities. The Debtors tapped Squire Patton Boggs (US), LLP as bankruptcy counsel; McDonald Hopkins, LLC as Illinois counsel; and OnePoint Partners, LLC as financial advisor. Stretto is the claims, noticing, solicitation, balloting, and tabulation agent. M4B SFR: Seeks Chapter 11 Bankruptcy Protection in Georgia ---------------------------------------------------------- On February 12, 2025, M4B SFR LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Middle 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 M4B SFR LLC M4B SFR LLC is a limited liability company. M4B SFR LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Ga. Case No. 25-40096) on February 12, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by: Thomas T. McClendon, Esq. JONES & WALDEN LLC 699 Piedmont Avenue NE Atlanta, GA 30308 Tel: 404-564-9300 E-mail: tmcclendon@joneswalden.com MEDICAL SOLUTIONS: $1.05BB Bank Debt Trades at 31% Discount ----------------------------------------------------------- Participations in a syndicated loan under which Medical Solutions Holdings Inc is a borrower were trading in the secondary market around 69.3 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $1.05 billion Term loan facility is scheduled to mature on November 1, 2028. The amount is fully drawn and outstanding. Medical Solutions L.L.C. operates as a travel nursing company. The Company provides benefits such as personalized pay package, medical and dental insurance, paid private housing, and loyalty programs, as well as pet care, education and training, and friendly housing services for travel nurses. Medical Solutions serves customers in the United States. MID-ATLANTIC RHEUMATOLOGY: Taps Frost & Associates as Counsel ------------------------------------------------------------- Mid-Atlantic Rheumatology, LLC seeks approval from the U.S. Bankruptcy Court for the District of Maryland to employ Frost & Associates, LLC as bankruptcy counsel. The firm's services include: (a) prepare bankruptcy petitions, schedules, and financial statements for filing; (b) provide the Debtor with legal advice with respect to its powers and duties; (c) prepare on behalf of the Debtor all necessary legal papers; (d) assist in analyses and representation with respect to lawsuits to which the Debtor is or may be a party; (e) negotiate, prepare, file and seek approval of a plan of reorganization; (f) represent the Debtor at all hearings, meetings of creditors and other proceedings; and (g) perform all other legal services for the Debtor which may be necessary to serve its best interests and its bankruptcy estate. The firm received an advance retainer in the amount of $20,000 from the Debtor. Daniel Staeven, Esq., an attorney at Frost & Associates, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Daniel A. Staeven, Esq. Frost & Associates, LLC 839 Bestgate Road Suite 400 Annapolis, MD 21401 Telephone: (410) 705-7791 Facsimile: (888) 235-8405 Email: daniel.staeven@frosttaxlaw.com About Mid-Atlantic Rheumatology Mid-Atlantic Rheumatology, LLC is a medical group practice located in Millersville, Md., which specializes in internal medicine and rheumatology. Mid-Atlantic Rheumatology filed Chapter 11 petition (Bankr. D. Md. Case No. 25-10845) on January 31, 2025, with up to $1 million in assets and up to $10 million in liabilities. Erinn Maury, sole member, signed the petition. Judge David E. Rice oversees the case. Daniel Staeven, Esq., at Frost Law, represents the Debtor as bankruptcy counsel. MIDSTATE BASEMENT: Gets Another Extension to Access Cash Collateral ------------------------------------------------------------------- Midstate Basement Authorities, Inc. received eighth interim approval from the U.S. Bankruptcy Court for the Northern District of New York to use cash collateral. The interim order authorized Midstate to use its secured creditors' cash collateral to pay operating expenses set forth in its budget. First Chatham Bank and other secured creditors will have valid, binding, enforceable, and perfected continuing rollover liens and security interests in all collateral. In addition, the bank will receive payment of $5,500 as protection. The next hearing is scheduled for March 6. About Midstate Basement Authorities Midstate Basement Authorities Inc., doing business as Midstate Concrete Leveling, is a general contracting company that offers foundation repair, waterproofing, concrete leveling and lifting, and water control systems. It serves residential and commercial clients. Midstate Basement Authorities sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 24-30650) on July 29, 2024, with total assets of $811,118 and total liabilities of $2,337,095. Eric Leach, president of Midstate Basement Authorities, signed the petition. Judge Wendy A. Kinsella oversees the case. The Debtor is represented by: Peter Alan Orville Orville & Mcdonald Law, PC Tel: 607-770-1007 Email: peteropc@gmail.com MILLENKAMP CATTLE: $28M Unsecured Claims to Recover 100% in Plan ---------------------------------------------------------------- Millenkamp Cattle, Inc. and its affiliates submitted a Disclosure Statement for Second Amended Chapter 11 Plan of Reorganization dated February 5, 2025. Earlier in this case, the Debtors obtained court approval for a post-petition DIP Loan from Sandton. Pursuant to the DIP Order, the Debtors executed the DIP Loan Documents with Sandton, which provided for up to $45 million in post-petition DIP financing. The outstanding DIP Loan as of the Effective Date will be approximately $22.939 ± million. Pursuant to the terms of the approved and executed DIP Loan documents, Sandton has agreed to amend the DIP Loan to be repayable through the Debtor’s Plan, rather than on the Effective Date. Further, the Debtors will use cash on hand to provide the following Effective Date Distributions: payment in full of Administrative Claims (including Allowed 503(b)(9) Claims) and cure costs arising from the assumption of Executory Contracts and Unexpired Leases. The Plan provides for the sale of Canyonlands and McGregor, which will close no later than November 30, 2025. Canyonlands was appraised in June of 2024 at $16,000,000. McGregor was appraised in June of 2024 at $4,500,000. The net sale proceeds after normal and customary closing costs, shall be distributed first to Metlife in the amount of $5 million plus any allocated and Allowed Non Estate Professionals fees and then the remaining balance of proceeds, less $2 million, will be paid to Sandton. The $2 million shall be allocated to pay the tax consequences of the sale and any amounts leftover, once the final tax amount is determined, shall remain cash of the Reorganized Debtors. If the Reorganized Debtors are able through sale of equity or otherwise, to infuse cash into the Reorganized Debtors without raising the debt burden in order to make the timely required payments to Sandton and MetLife described above, the Reorganized Debtors shall not be required to sell the Canyonlands and McGregor properties. In the event funds can be raised through the sale or borrowing against equity, Rabo shall release its lien on said equity. The Plan further provides for refinancing on or before May 31, 2028 to pay Rabo and Conterra in full and final satisfaction of their Allowed Class 10, 11, and 12 claims as well as comply with the rest of the terms of the Plan. The Debtors believe that the Plan accomplishes all of the goals that they sought to achieve by commencing the Chapter 11 Cases. If consummated, the Plan will significantly reduce the Debtors' leverage (thus making the refinance in 2028 more likely), provide the Debtors with sufficient cash to run their businesses, and provide recoveries to unsecured creditors significantly in excess of what creditors would receive in a liquidation of the Debtors' assets if the Plan were not consummated. Class 13 consists of all General Unsecured Claims, in the approximate amount of $28 million (the "GUC Principal Amount"). The Holders of Class 13 Claims shall receive the following treatment under the Plan: * After the Effective Date, at the end of each calendar quarter through April 2028, Class 13 Claimants shall receive interest-only payments based on their outstanding balance at 5% per annum. * In May 2028, Class 13 Claimants shall receive monthly interest payments based on their outstanding balance at 5% per annum. * In May 2028, Class 13 Claims shall receive a single principal payment equal to 5/24 of the principal balance owed to Class 13, followed by 19 principal payments equal to 1/24 of the principal balance owed to Class 13, paid on a monthly basis after May 2028. The Holders of Class 13 Claims shall be paid 100% of their Claims in full and final satisfaction through the foregoing payment schedule by December 2029. Class 13 is Impaired under the Plan. The Holders of Class 13 Claims are entitled to Vote under the Plan. Except as otherwise provided in the Plan or the Confirmation Order, the Reorganized Debtors shall fund distributions under the Plan with Cash on hand from ongoing business operations, the net sale proceeds from the sale of Canyonlands and McGregor, and the proceeds from the Refinancing Facility. On or before the Effective Date, the Reorganized Debtors shall employ a broker to market and sell Canyonlands and McGregor for fair market value and for no less than the appraised value of each. The sale shall close no later than November 30, 2025. Canyonlands was appraised in June of 2024 at $16,000,000. McGregor was appraised in June of 2024 at $4,500,000. The net sale proceeds after normal and customary closing costs, shall be distributed first to Metlife in the amount of $5 million plus any allocated Non-Estate Professionals fees and then the remaining balance, less $2 million, to Sandton. The $2 million shall be allocated to pay the tax consequences of the sale and any amounts leftover, once the final tax amount is determined, shall remain cash of the Debtors. The Reorganized Debtors shall file a report of sale with the Court upon closing of the sale transaction for Canyonlands and McGregor. A full-text copy of the Disclosure Statement dated February 5, 2025 is available at https://urlcurt.com/u?l=2l48l5 from PacerMonitor.com at no charge. Attorneys for the Debtors: Matthew T. Christensen, Esq. J. Justin May, Esq. JOHNSON MAY 199 N. Capitol Blvd, Ste 200 Boise, Idaho 83702 Phone: (208) 384-8588 Fax: (208) 629-2157 Email: mtc@johnsonmaylaw.com jjm@johnsonmaylaw.com Krystal Mikkilineni, pro hac vice Robert E. Richards, pro hac vice Tirzah Roussell, pro hac vice DENTONS 215 10th Street, Ste 1300 Des Moines, IA 50309 Phone: (515) 288-2500 Fax: (515) 243-0654 Email: krystal.mikkilineni@dentons.com robert.richards@dentons.com tirzah.roussell@dentons.com About Millenkamp Cattle Millenkamp Cattle Inc., is part of a family-owned agriculture business that can produce more than 1 million pounds of milk per day. Millenkamp Cattle Inc. and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Idaho Lead Case No. 24-40158) on April 2, 2024. In the petitions filed by William J. Millenkamp, manager, Millenkamp Cattle estimated assets between $10 million and $50 million and estimated liabilities between $500 million and $1 billion. Judge Noah G. Hillen oversees the cases. The Debtors tapped Matthew T. Christensen, Esq., at Johnson May, PLLC as bankruptcy counsel and Givens Pursley as special counsel. MIRAMAR TOWNHOMES: Court OKs Interim Use of Cash Collateral ----------------------------------------------------------- Miramar Townhomes SWNG 2, LLC and its affiliates received third interim approval from the U.S. Bankruptcy Court for the Southern District of Texas to use the cash collateral of Fannie Mae to pay their operating expenses. The third interim order approved the use of cash collateral, which consists of accounts receivable and rents generated from three multifamily properties owned by the company and its affiliates, The Avenue SWNG TIC 1, LLC, The Avenue SWNG TIC 2, LLC and Toro Place, LLC. As protection, Fannie Mae was granted replacement liens on all property of the companies whether acquired before or after their Chapter 11 filing. In case of any diminution in the value of its interests in the collateral, the secured lender will be granted a superpriority claim. A final hearing is set for March 6. About Miramar Townhomes SWNG 2 Miramar Townhomes SWNG 2, LLC is owned by Miramar Townhomes SWNG GP, LLC and Miramar Townhomes LP SWNG, LLC. Avenue SWNG TIC, 1 and Avenue SWNG TIC, 2 are both owned by The Avenue SWNG, LLC while Toro Place, LLC is owned by Toro Place Holdings, LLC. Miramar owns the Miramar Townhomes located at 2380 Bering Drive, Houston, Texas, while Toro owns the Toro Place Apartments located at 12101 Fondren Road, Houston, Texas. The Avenue SWNG TIC companies own The Avenue Apartments located at 5050 Yale Street, Houston, Texas. On November 27, 2024, the Debtors filed Chapter 11 petitions (Bankr. S.D. Texas Lead Case No. 24-90608). At the time of the filing, each Debtor reported $10 million to $50 million in assets and liabilities. Judge Christopher M. Lopez handles the cases. The Debtors are represented by: Elyse M Farrow Haselden Farrow PLLC Tel: 832-819-1149 Email: efarrow@haseldenfarrow.com Melissa Anne Haselden Haselden Farrow PLLC Tel: 832-819-1149 Email: mhaselden@haseldenfarrow.com MJM LANDSCAPE: Court OKs Interim Use of Cash Collateral ------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona granted MJM Landscape Associates, Inc. interim approval to use cash collateral from Jan. 27 to March 11. The company was authorized to use cash collateral to pay the amounts set forth in its budget, with the exception that no payments to insiders shall be made pending the final hearing. The budget shows total projected expenses of $301,502 in February, $302,002 in March, and $302,002 in April. Each creditor with a security interest in the cash collateral will have a post-petition lien on the cash collateral to the same extent and with the same validity and priority as its pre-bankruptcy lien. A final hearing is scheduled for March 11. About MJM Landscape Associates MJM Landscape Associates, Inc. filed Chapter 11 petition (Bankr. D. Ariz. Case No. 25-00663) on January 27, 2025, listing between $500,001 and $1 million in assets and between $1 million and $10 million in liabilities. The Debtor is represented by: Charles R. Hyde, Esq. Law Offices of C.R. Hyde, PLC 2810 N. Swan Rd. #150 Tucson, AZ 85712 Tel: 520-270-1110 Email: crhyde@gmail.com MJM LANDSCAPE: Seeks to Hire R&A CPAS PLLC as Accountant -------------------------------------------------------- MJM Landscape Associates, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Arizona to hire R&A CPAS PLLC as accountant. The firm's services include: a) providing the Debtor with tax preparation services; and b) preparing and/or aiding the Debtor in the filing of operating reports and financial disclosure obligations relating to the Debtor's Chapter 11 plan. The firm will be paid at these rates: Karly Meza $395 per hour Alexis Torres $240 per hour Jessica Nutbrown $155 per hour Karly Meza, a partner of R&A, disclosed in a court filing that the firm is disinterested within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Karly Meza, CPA R&A CPAs 4542 E Camp Lowell Dr #100 Tucson, AZ 85712 Phone: (520) 881-4900 (520) 389-6001 About MJM Landscape Associates Inc. MJM Landscape Associates, Inc. is a licensed contractor, focused on outdoor landscape design, development and construction. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 4:25-bk-00663) on January 27, 2025. In the petition signed by Sandy Murany, president, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Charles Richard Hyde, Esq., at the Law Offices of C.R. Hyde, PLC, represents the Debtor as legal counsel. MLN US HOLDCO: $155.8MM Bank Debt Trades at 44% Discount -------------------------------------------------------- Participations in a syndicated loan under which MLN US Holdco LLC is a borrower were trading in the secondary market around 56.0 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $155.8 million Term loan facility is scheduled to mature on October 18, 2027. The amount is fully drawn and outstanding. MLN US Holdco LLC, dba Mitel, headquartered in Ottawa, Canada, provides phone systems, collaboration applications (voice, video calling, audio and web conferencing, instant messaging etc.) and contact center solutions through on-site and cloud offerings. The Company’s customer focus is on small and medium sized businesses. Mitel is majority-owned by private equity firm Searchlight Capital Partners. MONTEREY CAPITOLA: Gets Interim OK to Use Cash Collateral --------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California issued an interim order allowing Monterey Capitola, LLC to use cash collateral. Monterey Capitola was authorized to use cash collateral according to its budget, with condition that if circumstances require it to exceed the budget by up to 10% in any category, the company may do so without seeking creditor consent or court approval. The budget shows total projected expenses of $5,172. Creditors that may assert interests in the cash collateral will be granted a replacement liens on the post-petition cash collateral to the same extent and priority as their pre-bankruptcy liens. A final hearing is scheduled for March 6. About Monterey Capitola LLC Monterey Capitola, LLC is a California-based company primarily engaged in renting and leasing real estate properties. Monterey Capitola sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-51916) on December 17, 2024, with $1 million to $10 million in both assets and liabilities. Gina Klump, Esq., at the Law Office of Gina R. Klump, serves as Subchapter V trustee. Judge M. Elaine Hammond handles the case. The Debtor is represented by Joan M. Chipser, Esq., at the Law Offices of Joan M. Chipser. MONTEREY CAPITOLA: Taps Kendall & Potter as Property Manager ------------------------------------------------------------ Monterey Capitola, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of California to hire Kendall & Potter Property Management, Inc. As property manager, Kendall & Potter collects the rents on the Debtor's properties, pays the expenses and arranges for any repairs and maintenance necessary to be performed. The compensation agreed upon is 9 percent of the gross rents. As disclosed in the court filings, Kendall & Potter does not hold or represent an interest adverse to this estate and does not have any connections with the debtor, creditors, any other party in interest in this case, their respective attorneys or accountants, the United States Trustee or any person employed in the office of the United States Trustee. The firm can be reached through: Steven M. Davis Kendall & Potter Property Management, Inc. 522 Capitola Ave. Capitola, CA 95010, Phone: (831) 477-7930 About Monterey Capitola LLC Monterey Capitola, LLC is a California-based company primarily engaged in renting and leasing real estate properties. Monterey Capitola sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-51916) on December 17, 2024, with $1 million to $10 million in both assets and liabilities. Steven M. Davis, sole member, signed the petition. Judge M. Elaine Hammond handles the case. The Debtor is represented by Joan M. Chipser, Esq. NAKED JUICE: $1.82BB Bank Debt Trades at 41% Discount ----------------------------------------------------- Participations in a syndicated loan under which Naked Juice LLC is a borrower were trading in the secondary market around 58.9 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $1.82 billion Term loan facility is scheduled to mature on January 24, 2029. The amount is fully drawn and outstanding. Naked Juice LLC is the entity resulting from a spin-off from PepsiCo, with PAI Partners owning 61% and Pepsi retaining a 39% stake. Naked Juice, LLC owns the Tropicana, Naked Juice, KeVita and other select juice brands. NAKED JUICE: $450MM Bank Debt Trades at 77% Discount ---------------------------------------------------- Participations in a syndicated loan under which Naked Juice LLC is a borrower were trading in the secondary market around 22.9 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 January 24, 2030. The amount is fully drawn and outstanding. Naked Juice LLC is the entity resulting from a spin-off from PepsiCo, with PAI Partners owning 61% and Pepsi retaining a 39% stake. Naked Juice, LLC owns the Tropicana, Naked Juice, KeVita and other select juice brands NEWPORT VENTURES: Seeks to Extend Plan Exclusivity to April 29 -------------------------------------------------------------- Newport Ventures 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 April 29 and June 23, 2025, respectively. The Debtor asserts several key factors that warrant additional time to formulate a comprehensive restructuring strategy. First and foremost, after significant disputes have arisen (i) between the Debtor and its Secured Lender relating, among other things, to cash collateral use and financial reporting, and (ii) between the Debtor and the Franchisor relating, among other things, to the validity of the alleged pre-petition termination of the franchise agreements and the ability of the Debtor to assume and assign such agreements, two critical developments in the Case may lead to a positive path forward in being able to confirm a plan which may be premised on an asset sale. First, the key stakeholders have agreed on the appointment of a CRO who has their trust and confidence and will be focusing immediately on an exit strategy. Additionally, Del Taco and the Debtor are seeking to schedule a Court-ordered mediation which will hopefully result in a resolution of contentious issues allowing for the confirmation of a consensual plan. The Debtor claims that managing 18 restaurant locations presents a complex and dynamic challenge, particularly given the existing tensions and competing interests of the Secured Lender and the Franchisor. Each restaurant requires individual assessment and strategic decision-making regarding its viability, lease obligations, and potential contribution to the overall reorganization. The involvement of the Secured Lender, the Unsecured Creditor Committee, and Franchisor adds layers of complexity to these decisions, requiring careful negotiation and consensus-building to achieve a mutually agreeable outcome. Furthermore, the Debtor has engaged in diligent and good-faith efforts to assess its financial situation and develop a viable plan. To that end, the Debtor is in the process of retaining a Chief Restructuring Officer (CRO), who is actively consulting with legal counsel and other professionals to gain a clear understanding of the Debtor's financial realities. This comprehensive assessment is crucial to determining the best path forward, whether it involves formulating a plan of reorganization or conducting a strategic sale of assets under Section 363 of the Bankruptcy Code. Finally, the Debtor underscores that it has acted, and continues to act, as expeditiously as possible given the difficulties presented in this Case. The Debtor believes that granting the requested extension, which is the first request that the Debtor has made, will allow it, though the CRO, to complete these critical tasks and develop a comprehensive restructuring strategy that is in the best interests of creditors and all parties involved. General Insolvency Counsel for Debtor: AKERMAN LLP Evelina Gentry, Esq. 633 West Fifth Street, Suite 6400 Los Angeles, California 90071 Telephone: (213) 688-9500 Facsimile: (213) 627-6342 About Newport Ventures Newport Ventures, LLC, a company in Orange, Calif., owns and operates a restaurant. Newport Ventures filed Chapter 11 petition (Bankr. C.D. Calif. Case No. 24-12738) on October 26, 2024, with $10 million and $50 million in both assets and liabilities. Shahvand Aryana, principal of Newport Ventures, signed the petition. Judge Theodor Albert oversees the case. The Debtor is represented by Steven M. Kries, Esq. The U.S. Trustee for Region 16 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. NORTHERN DYNASTY: Open Letter Updates Pebble Project Outlook ------------------------------------------------------------ Northern Dynasty Minerals Ltd. issued an Open Letter to Shareholders, providing an update on recent events and what they could mean for the Pebble Project in the near to medium term future. The full text of the Open Letter to Shareholders is available on the Company's website at: https://northerndynastyminerals.com/investors/ceo-message/ About Northern Dynasty Minerals Ltd. Northern Dynasty Minerals Ltd. is a mineral exploration and development company based in Vancouver, Canada. Northern Dynasty's principal asset, owned through its wholly owned Alaska-based U.S. subsidiary, Pebble Limited Partnership, is a 100% interest in a contiguous block of 1,840 mineral claims in Southwest Alaska, including the Pebble deposit, located 200 miles from Anchorage and 125 miles from Bristol Bay. The Pebble Partnership is the proponent of the Pebble Project. Vancouver, Canada-based Deloitte LLP, the Company's auditor since 2009, issued a "going concern" qualification in its report dated April 1, 2024, citing that the Company incurred a consolidated net loss of $21 million during the year ended December 31, 2023, and as of that date, the Company's consolidated deficit was $697 million. These conditions, along with other matters, raise substantial doubt about its ability to continue as a going concern. Northern Dynasty reported a net loss of C$3.7 million, compared to a net loss of $C6.2 million for the same period in 2023. As of June 30, 2024, the Company had C$139.95 million in total assets and C$21.62 million in total liabilities. NOVABAY PHARMACEUTICALS: Poplar Point Holds 12.7% Equity Stake -------------------------------------------------------------- Poplar Point Capital Management LLC disclosed in a Joint Schedule 13G/A filed with the U.S. Securities and Exchange Commission that as of February 6, 2025, it and its affiliated entities -- Poplar Point Capital Partners LP, Poplar Point Capital GP LLC, and its Manager Jad Fakhry -- beneficially owns 620,685 shares of NovaBay Pharmaceuticals, Inc. common stock, representing 12.7% of the 4,885,693 shares of Common Stock outstanding as of November 4, 2024, as reported in the Company's Quarterly Report on Form 10-Q for the period ended September 30. Poplar Point Capital may be reached at: Jad Fakhry, Manager c/o Poplar Point Capital Management LLC 330 Primrose Road Suite 400 Burlingame, CA 94010. A full-text copy of Poplar Point's SEC Report is available at: https://tinyurl.com/4p8mwypf About Novabay Headquartered in Emeryville, California, NovaBay Pharmaceuticals, Inc. -- http://www.novabay.com/-- develops and sells scientifically created and clinically proven eyecare and skincare products. The Company's leading product, Avenova Antimicrobial Lid and Lash Solution, or Avenova Spray, is proven in laboratory testing to have broad antimicrobial properties as it removes foreign material, including microorganisms and debris, from the skin around the eye, including the eyelid. San Francisco, California-based WithumSmith+Brown, PC, the Company's auditor since 2010, issued a "going concern" qualification in its report dated March 26, 2024, citing that the Company has sustained operating losses for the majority of its corporate history and expects that its 2024 expenses will exceed its 2024 revenues, as the Company continues to invest in its commercialization efforts. Additionally, the Company expects to continue incurring operating losses and negative cash flows until revenues reach a level sufficient to support ongoing growth and operations. Accordingly, the Company has determined that its planned operations raise substantial doubt about its ability to continue as a going concern. As of September 30, 2024, NovaBay Pharmaceuticals had $3.9 million in total assets, $2.8 million in total liabilities, and $1.1 in total stockholders' equity. OFFICE PROPERTIES: Sells New Notes for $175MM --------------------------------------------- The Vanguard Group on February 7, 2025, announced that it commenced a series of exchange offers, or the Exchange Offers, pursuant to which it is offering to issue new 8.000% senior priority guaranteed unsecured notes due 2030, or the New Notes, and related guarantees in exchange for the company's outstanding (i) 2.650% senior unsecured notes due 2026, (ii) 2.400% senior unsecured notes due 2027 and (iii) 3.450% senior unsecured notes due 2031 for an aggregate principal amount of up to $175,000,000 of New Notes, according to a Form 8-K filing with the U.S. Securities and Exchange Commission. The Exchange Offers will expire at 5:00 p.m., New York City time, on March 10, 2025, unless the Exchange Offers are extended or earlier terminated by us, conditional upon the satisfaction or, if applicable, waiver of, the conditions to the Exchange Offers. About Office Properties Office Properties Income Trust is a REIT organized under Maryland law. As of Dec. 31, 2023, its wholly owned properties were comprised of 152 properties, and it had noncontrolling ownership interests of 51% and 50% in two unconsolidated joint ventures that owned three properties containing approximately 468,000 rentable square feet. As of Dec. 31, 2023, the Company's properties are located in 30 states and the District of Columbia and contain approximately 20,541,000 rentable square feet. As of Dec. 31, 2023, its properties were leased to 258 different tenants, with a weighted average remaining lease term (based on annualized rental income) of approximately 6.4 years. The U.S. government is its largest tenant, representing approximately 19.5% of its annualized rental income as of Dec. 31, 2023. As of March 31, 2024, the Company had $4 billion in total assets, $2.7 billion in total liabilities, and $1.3 billion in total stockholders' equity. * * * In May 2024, OPI announced it was actively negotiating with its existing debtholders to exchange four series of its currently outstanding senior unsecured notes (worth $1.7 billion at face value) for up to $610 million of new senior secured notes and related guarantees, with priority given to the 2025 noteholders ($650 million outstanding). The exchange would result in debtholders receiving below the par value of the existing notes. In May 2024, OPI announced it was actively negotiating with its existing debtholders to exchange four series of its currently outstanding senior unsecured notes (worth $1.7 billion at face value) for up to $610 million of new senior secured notes and related guarantees, with priority given to the 2025 noteholders ($650 million outstanding). The exchange would result in debtholders receiving below the par value of the existing notes. The Troubled Company Reporter on February 11, 2025, reported that S&P Global Ratings lowered its issuer credit rating on Newton, Mass.-based REIT Office Properties Income Trust (OPI) to 'CC' from 'CCC' and its issue-level ratings on its senior unsecured notes due 2026, 2027 and 2031, which are part of the proposed exchange, to 'CC' from 'CCC-'. OHANA AMERICA: Seeks to Hire Buddy D. Ford P.A. as Attorney ----------------------------------------------------------- Ohana America Corp. seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire Buddy D. Ford, P.A. as attorney. The firm will provide these services: a. analyzing the financial situation, and rendering advice and assistance to the Debtor in determining whether to file a petition under Title 11, United States Code; b. advising the Debtor with regard to the powers and duties of the debtor and as Debtor-in-Possession in the continued operation of the business and management of the property of the estate; c. preparing and filing of the petition, schedules of assets and liabilities, statement of affairs, and other documents required by the Court; d. representing the Debtor at the Section 341 Creditors' meeting; e. giving the Debtor legal advice with respect to its powers and duties as Debtor and as Debtor-in Possession in the continued operation of its business and management of its property; if appropriate; f. advising the Debtor with respect to its responsibilities in complying with the United States Trustee's Operating Guidelines and Reporting Requirements and with the rules of the court; g. preparing, on the behalf of your Applicant, necessary motions, pleadings, applications, answers, orders, complaints, and other legal papers and appear at hearings thereon; h. protecting the interest of the Debtor in all matters pending before the court; i. representing the Debtor in negotiation with its creditors in the preparation of the Chapter 11 Plan; and j. performing all other legal services for Debtor as Debtor-in-Possession which may be necessary herein, and it is necessary for Debtor as Debtor-in-Possession to employ this attorney for such professional services. The firm will be paid at these rates: Attorneys $450 per hour Senior associate $400 per hour Junior associate attorneys $350 per hour Senior paralegal $150 per hour Junior paralegal services $100 per hour The firm was paid a retainer in the amount of $20,005. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Buddy D. Ford, Esq., a partner at Buddy D. Ford, P.A., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Buddy D. Ford, Esq. Buddy D. Ford, P.A. 9301 West Hillsborough Avenue Tampa, FL 33615-3008 Tel: (813) 877-4669 Email: Buddy@tampaesq.com About Ohana America Corp. Ohana America Corp. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00646) on January 31, 2025, with $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Judge Roberta A. Colton presides over the case. Buddy D. Ford, Esq., at Buddy D. Ford, P.A. represents the Debtor as legal counsel. OKLAHOMA FORGE: Committee Taps Bernstein-Burkley as Counsel ----------------------------------------------------------- The official committee of unsecured creditors of Oklahoma Forge, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Oklahoma to hire Bernstein-Burkley, P.C. as its counsel. The firm will represent and assist this Committee in the performance of its duties. The firm will be paid at these hourly rates: Attorneys $260 to $600 Paraprofessionals $155 to $200 Bernstein-Burkley is a "disinterested person" as defined by section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached through: Harry W. Greenfield, Esq. Robert M. Stefancin, Esq. Gus Kallergis, Es. K Kirk B. Burkley, ESq. BERNSTEIN-BURKLEY, P.C. 1360 East Ninth Street, Suite 1250 Cleveland, OH 44114 Telephone: (412) 456-8100 Facsimile: (412) 456-8135 Email: hgreenfield@bernsteinlaw.corn rstefancingbernsteinlaw.corn gkallerisgbernsteinlaw.corn kburkley@bernsteinlaw.com About Oklahoma Forge LLC An involuntary petition was filed against Oklahoma Forge, LLC (Bankr. N.D. Okla. Case No. 24-11060) on August 16, 2024 by Ellwood Quality Steels Company, Ellwood National Steel Company, and Lehigh Specialty Melting Inc. Stephen J. Moriarty, Esq., at Fellers, Snider, Blankenship, Bailey and Tippens, PC, represents the Debtor as legal counsel. OXFORD FINANCE: Moody's Affirms 'Ba2' CFR, Outlook Remains Stable ----------------------------------------------------------------- Moody's Ratings has affirmed Oxford Finance LLC's Ba2 corporate family rating and its Ba3 senior unsecured rating. Oxford's outlook remains stable. RATINGS RATIONALE Moody's affirmation of Oxford's ratings reflects the company's strong and consistent execution of its strategy, resulting in strong profitability and capital levels. Moody's expect the broad capital markets environment to be favorable in 2025, leading to stronger M&A and private equity activity, which should benefit Oxford's lending business by providing it more lending opportunities in its target sectors. Oxford's strong market position and lending relationships have underpinned its profitability. The firm earns consistent net income, reporting an annualized ratio of net income to average managed assets consistently above 3% each quarter over the past several years, with strong momentum into 2025. The company's capitalization remains solid, with tangible common equity (TCE) to tangible managed assets (TMA) typically between 20% and 28% (27% as of September 30, 2024). The company's debt-to-equity ratio has improved over the last year, and typically ranges between 2.5x and 3.5x (2.7x as of September 30, 2024), with management's stated intention to maintain a debt-to-equity ratio below 3.5x. The ratings affirmation also reflects ongoing challenges associated with the highly competitive healthcare finance market, along with the risks inherent in Oxford's concentrated loan portfolio. The company's credit performance has been historically solid, but problem loans have risen since the end of 2023. The company's problem loans to gross loans ratio rose to 5.8% in Q4 2023 (from 1.8% in the prior quarter) and has remained around 4.0% since then. Moody's expect that Oxford will resolve these troubled loans in an orderly way to minimize losses, and acknowledge that a significant portion of problem loans are well collateralized, which should minimize loss severity. Nonetheless, its loan portfolio is highly concentrated in the life sciences and healthcare services sectors. The nature of its sector specialization makes the company exposed to sector-wide systemic risks that could result in rapid asset quality deterioration despite the company's strong underwriting standards. However, the company's sector concentrations are partially offset by its relatively granular portfolio, with moderate top-10 exposures of 16% of total loans as of September 30, 2024. The ratings also incorporate Oxford's high reliance on secured credit facilities to fund its loan originations. Secured debt typically represents 60-65% of the company's tangible assets. High usage of these facilities encumbers assets and limits financial flexibility in times of stress. Moody's expect that Oxford will continue to use secured facilities as its main source of funding, but also maintain a diverse set of facility types at appropriately staggered maturities. Oxford's Ba3 senior unsecured rating reflects the debt's ranking and size in the company's capital structure. The Ba3 senior unsecured rating assigned to Oxford is one notch below the Ba2 CFR, reflecting a substantial amount of secured debt senior to Oxford's unsecured notes. The stable outlook reflects Moody's expectation that Oxford will maintain stable profitability and leverage in the next 12-18 months. The stable outlook also reflects Moody's expectation that Oxford will continue to achieve favorable resolution of its problem loans with relatively low loss severity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Oxford significantly improves the diversification of its loan portfolio, leading to a sustained reduction in sector concentrations, while maintaining asset quality and underwriting standards. The ratings could also be upgraded if the company meaningfully improves its capital strength while also reducing its reliance on secured funding. The ratings could be downgraded if the company reports a significant deterioration in asset quality or inability to resolve problem loans leading to a significant increase in provisions, charge-offs and weaker profitability. The ratings could also be downgraded if Oxford's leverage as measured by the company's total debt-to-equity ratio increases and remains above 3.5x. The senior unsecured rating could be downgraded if the company's funding mix were to shift more toward secured debt on a sustained basis. The principal methodology used in these ratings was Finance Companies published in July 2024. PALOMAR HEALTH: Moody's Cuts Revenue Ratings to Caa1, Outlook Neg. ------------------------------------------------------------------ Moody's Ratings has downgraded Palomar Health, CA's (Palomar) revenue ratings to Caa1 from B2 and general obligation unlimited tax (GOULT) ratings to Ba1 from Baa3. The outlooks have been revised to negative from rating under review. This action concludes Moody's rating review for possible downgrade that was initiated on October 22, 2024. Palomar has approximately $738 million of revenue bonds outstanding; outstanding GO amounts total $621.6 million, inclusive of $240.6 million in accrued interest on the capital appreciation bonds. The downgrades reflect further thinning of liquidity resulting in 15-20 days cash on hand and limited ability to meaningfully improve given ongoing significant cash flow losses. Although Palomar's forbearance agreements reduce the risks of debt acceleration through January 2026, the organization's very weak liquidity position challenges short-term financial viability. These factors contribute to Palomar's escalating governance risks, under Moody's ESG framework, in the areas of financial strategy and risk management, as well as management credibility and track record, a key driver of the rating action. The negative outlooks reflect the risks of further cash deterioration as cash flow losses continue and debt payments and other payables come due, the confluence of which increases the risks of a default, bankruptcy filing or liquidation. RATINGS RATIONALE The Caa1 revenue bond rating reflects very weak liquidity of roughly 15-20 days which will be difficult to stabilize and improve due to negative operating cash flow and volumes that have been slow to rebound. Liquidity will likely remain at these weaker levels leaving no room for financial flexibility and any miss to plan could impede Palomar's ability to meet payables including debt payments which are coming due in the next several months. Palomar continues to push out payables and has been able to secure advances with managed care payors and temporarily extend certain loan payments to meet cash needs in the short-term. Favorably, debt acceleration risks have been reduced through January 2026 with options to extend to January 2027 with the execution of forbearance agreements. Unfavorably, in the event of a bankruptcy, Palomar's financial flexibility will be constrained by its negative net asset position. High expenses, large physician subsidies and an increasing governmental mix will continue to challenge performance. Favorably, Palomar, with the help of consultants, has identified opportunities for performance improvement in fiscal 2025, including potential savings related to its labor force, revenue cycle, physician enterprise, supply chain and purchased services. Performance improvement is evident through September 30, 2024 given lower cash flow losses. Additionally, although cash collections will continue to lag, additional IGT funding will help margins. Additional offsetting factors include Palomar's leading market position and strong community support which has helped fund major projects and supports operations through tax revenue. The Ba1 rating for the district's unlimited tax bonds incorporates the district's significantly weakened operating flexibility and tenuous liquidity that will remain extremely weak. The GOULT rating recognizes the strength of the district's large and growing tax base and favorable structural characteristics that provide partial mitigation for its severe underlying financial challenges. These include a "lockbox" mechanism that sends tax payments directly from San Diego County (Aaa stable) to the Trustee for payment of debt service. The district's tax base, which approaches $116 billion, will remain stable with continued growth, therefore the district's operations are most likely to drive any future changes in the GOULT rating. RATING OUTLOOK The negative outlook reflects the likelihood that liquidity will remain volatile and very weak at 15-30 days which increases risks for a default, bankruptcy filing or liquidation. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Revenue Bonds: Sustained positive cash flow in the low single digit range and meaningful improvement in liquidity -- GOULT bonds: upgrade of the revenue bond rating FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Revenue Bonds: Inability to stem cash flow losses and stabilize liquidity -- Revenue Bonds: Default, bankruptcy filing and/or liquidation -- GOULT bonds: downgrade of revenue bond rating or materially weakened tax base LEGAL SECURITY The obligated group includes Palomar Health and Arch Health Partners, Inc. (d/b/a Palomar Health Medical Group). The district's GOULT bonds are payable from ad valorem taxes that may be levied against all taxable property within the district without limitation in rate or amount. Security is enhanced by a "lockbox" mechanism pursuant to which property tax payments that are restricted solely for servicing the district's GOULT bonds are wired by San Diego County directly to the paying agent for debt service payments. Palomar signed a forbearance agreement with Assured Guaranty and Sharp HealthCare through January 2026 with an option to extend another year subject to Assured Guaranty's approval. Execution of the forbearance agreement means that both Assured Guaranty and Sharp, under a separate agreement, have agreed to temporarily refrain from taking action against Palomar for financial covenant breaches at least through January 2026, which significantly reduces the risk of debt acceleration. There's a good likelihood that Palomar will be unable to clear financial covenants for June 30, 2025; and, given current trajectory, clearance of the days cash on hand covenant will be challenging for June 30, 2026, as well. In connection with the forbearance agreement, Assured Guaranty is considered to be the sole holder of the 2017 bonds and the 2022 bonds. Palomar has also agreed to certain terms including appointment of a turnaround officer, development of a two year plan to cure defaults and a five year strategic plan. Palomar must also receive certain approvals from Assured Guaranty, including when changing investment managers, turnaround officers or various consultants. Palomar is also responsible for providing Assured Guaranty and Sharp with various forecasts and monthly financial reporting, amongst other things. Financial covenants are measured against the obligated group, and include maintenance of debt service coverage (below 1.15x consultant call-in; below 1.0x event of default), measured annually. The debt service coverage test is a requirement for both the MTI as well as the system' s agreement with its insurer, Assured Guaranty. Palomar also has to meet a cash on hand test (below 65 days consultant call-in; below 50 days event of default), measured annually, under its agreement with Assured Guaranty. Through September 30, 2024, the system's debt service coverage ratio is negative .11x and cash on hand is 16.7 days. A remedy under the MTI and the agreement with Assured Guaranty is acceleration; the MTI includes cross default provisions. Per Palomar's Master Trust Indenture, Assured Guaranty is considered to be the "Majority Bondholder" for purposes of voting and consent. PROFILE Palomar Health is the largest public health care district in the State of California, with just under $1 billion of revenues reported for fiscal 2024, and generating over 24,000 admissions. The district operates acute care facilities in the towns of Escondido and Poway. METHODOLOGY The principal methodology used in the revenue ratings was Not-for-profit Healthcare published in October 2024. PHYSICIAN PARTNERS: $150MM Bank Debt Trades at 58% Discount ----------------------------------------------------------- Participations in a syndicated loan under which Physician Partners LLC is a borrower were trading in the secondary market around 42.0 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $150 million Term loan facility is scheduled to mature on December 22, 2028. About $148.5 million of the loan has been drawn and outstanding. Physician Partners LLC (dba Better Health Group) is a value-based primary care physician group and managed service organization network that services over 250,000 members, with over 1,000 providers and 111 owned centers. Private equity firm, Kinderhook Industries, is an investor in Better Health Midco, LLC with LTM revenue as of June 30, 2023 of approximately $1.1 billion. POWER BRANDS: Files Amendment to Disclosure Statement ----------------------------------------------------- Power Brands Consulting, LLC, submitted a First Amended Disclosure Statement describing First Amended Chapter 11 Plan dated February 7, 2025. The Plan contemplates that the Debtor will sell substantially all of its assets, except for various litigation rights, to the present owner of the Debtor, Darin Ezra, or an entity that is owned and is to be designated by Darin Ezra, in return for a purchase price of $275,000. The Plan further provides for the creation of a liquidating trust into which, on the effective date of the Plan, the proceeds of the purchase price and various litigation rights of the Debtor will be transferred, and which will be administered and liquidated for the benefit of those holding Allowed Claims against and Interests in the Debtor and its bankruptcy estate. Distributions from the liquidating trust will be made in accordance with the Plan, the agreement that will create the liquidating trust and the priorities set forth in the Bankruptcy Code. The Amended Disclosure Statement does not alter the proposed treatment for unsecured creditors and the equity holder: * Class 1 consists of General Unsecured Claims. This Class contains all the General Unsecured Claims against the Estate that the Debtor does not dispute are all unsecured claims in the amount of $8,804,756. General Unsecured Claims will receive pro rata distributions from the Net Proceeds the assets of the Liquidating Trust. This Class of Creditors is Impaired under the Plan. * Class 2 consists of Interest Holders. The Purchased Assets are being sold through the Plan, and the Sale Proceeds will be paid over to the Liquidating Trust on the Effective Date to fund Plan distributions on account of anticipated Allowed Administrative Claims. Interest Holders will not retain their interests in the Debtor. If Allowed General Unsecured Claims are paid in full through the Liquidating Trust, Interest Holders will thereafter share pro rata in any proceeds that remain in the Liquidating Trust. This Class is impaired under the Plan. Funding for the Plan shall come from the Debtor's Assets. Pursuant to the Plan, on the Effective Date (a) the Debtor will sell the Purchased Assets to the Buyer for the $275,000 Sale Price, (b) the Liquidating Trust will have been formed in accordance with the terms of the Plan and the Liquidating Trust Agreement, and (c) the Liquidating Trust Assets, which in addition to the Sale Proceeds, will consist of all of the Debtor's right, title and interest in and to the Jiaherb Litigation and the Causes of Action, will be transferred to and will vest in the Liquidating Trust. The Liquidation Funding Agreement will provide a source of funding for the Liquidating Trust's prosecution of the Jiaherb Litigation and any Causes of Action. Distributions following the Effective Date will be made from the proceeds of the Liquidating Trust Assets in accordance with the terms of the Plan and the Liquidating Trust Agreement. On the Effective Date, the Liquidating Trust shall be established pursuant to the Plan and the Liquidating Trust Agreement for the primary purpose of administering and liquidating the Liquidating Trust Assets and resolving Disputed Claims. Gregg Yorkison (or his designee) will serve as the Liquidating Trustee of the Liquidating Trust. A full-text copy of the First Amended Disclosure Statement dated February 7, 2025 is available at https://urlcurt.com/u?l=CF0QCQ from PacerMonitor.com at no charge. Counsel to the Debtor: Marc C. Forsythe, Esq. Reem J. Bello, Esq. Goe Forsythe & Hodges, LLP 17701 Cowan, Suite 210 Irvine, CA 92614 Telephone: (949) 798-2460 Facsimile: (949) 955-9437 Email: mforsythe@goeforlaw.com rbello@goeforlaw.com About Power Brands Consulting Power Brands Consulting, LLC is a beverage startup specialist in Van Nuys, Calif., which helps design and develop packaging, create a recipe for new drink and manufacture and market test new products. Power Brands Consulting filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 23-10993) on July 15, 2023. In the petition signed by its chief executive officer Darin Ezra, the Debtor disclosed $1 million to $10 million in both assets and liabilities. Judge Martin R. Barash presides over the case. The Debtor tapped Goe, Forsythe & Hodges, LLP as bankruptcy counsel and Munger, Tolles & Olson, LLP as insurance counsel. The U.S. Trustee for Region 16 appointed an official committee of unsecured creditors. The committee tapped Elkins Kalt Weintraub Reuben Gartside, LLP as bankruptcy counsel and Grobstein Teeple, LLP as accountant. PRAIRIE EYE: Files Chapter 11 Bankruptcy in California ------------------------------------------------------ On February 7, 2025, Prairie Eye Center Ltd. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of Illinois. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 100 and 199 creditors. The petition states funds will be available to unsecured creditors. About Prairie Eye Center Ltd. Prairie Eye Center Ltd. owns and operates the Prairie Eye and LASIK Center, an eye care provider in Springfield, Illinois, offering comprehensive optometry services, including eye exams, LASIK procedures, and emergency care. Led by Dr. Sandra Yeh, the Center is committed to providing personalized, professional care with a focus on patient comfort and education. The Center also offers vision financing options and works with insurance providers to ensure access to quality eye health and vision care. Prairie Eye Center Ltd. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-70105) on February 7, 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 Mary P. Gorman handles the case. The Debtor is represented by: Sumner A. Bourne, Esq. RAFOOL & BOURNE, P.C. 401 Main Street, Suite 1130 Peoria, IL 61602 Tel: (309) 673-5535 Fax: (309) 673-5537 E-mail: notices@rafoolbourne.com PRESPERSE CORPORATION: Plan Exclusivity Period Extended to July 7 ----------------------------------------------------------------- Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey extended Presperse Corporation's exclusive periods to file a plan of reorganization and obtain acceptance thereof to July 7 and September 4, 2025, respectively. As shared by Troubled Company Reporter, the Debtor explains that it was engulfed in hundreds of lawsuits related to allegations asserted by talc personal injury claimants as of the Petition Date. These Talc Personal Injury Claims were filed brought in various forums across the United States. In an effort to satisfy these standards, the Debtor must reach agreement with its core creditor constituencies, including counsel for the majority of the Talc Personal Injury Claimants, the TCC, and the FCR. Post-petition, the Debtor has been working with the TCC and FCR to make (and reach agreement regarding) certain Plan modifications to address previously unknown insurance issues. Accordingly, the Debtor submits that the size and complexity of this chapter 11 case, as well as the time required to prepare adequate information to negotiate further changes to the Plan that the Debtor envisions will be supported by the relevant plan proponents (i.e., the TCC and FCR), weighs in favor of extending the Exclusivity Periods. Consequently, the relief requested in this Motion will not result in a delay of the Plan process, but rather, will permit the process, which is already underway with the filing of the Plan and Disclosure Statement and Solicitation Procedures Motion, to proceed in an orderly manner. The Debtor asserts that in addition to the Debtor showing the reasonable prospect of obtaining confirmation of its Plan, the ongoing efforts to exchange information and documents with the TCC, FCR and other interested parties demonstrate a commitment to engaging with stakeholders and working towards an agreeable resolution of the Plan. Presperse Corporation is represented by: Morris S. Bauer, Esq. DUANE MORRIS LLP 200 Campus Drive, Suite 300 Florham Park, NJ 07932-1007 Tel: 973-424-2000 Fax: 973-424-2001 E-mail: msbauer@duanemorris.com About Presperse Corporation Presperse Corporation provides premium specialty ingredients to formulators of skincare, sun care, hair care, color cosmetics, and diverse areas of beauty and wellness. Presperse Corporation sought relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 24-18921) on Sept. 9, 2024. In the petition filed by CFO Mehul Shah, Presperse disclosed $10 million to $50 million in assets and $50 million to $100 million in debt. The Hon. Michael B Kaplan presides over the case. Duane Morris LLP is the Debtors' general bankruptcy counsel. Getzler Henrich is the Debtors' financial advisor. Kroll Restructuring Administration LLC is the Debtors' claims and noticing agent. The Talc Claimants' Committee retained Robinson & Cole as legal counsel and GlassRatner (doing business as B. Riley) as financial advisor, and Legal Analysis Systems to provide advice. Value Extraction Services is the prepetition future claimants' representative, and hired Young Conaway as counsel, Ankura Consulting Group as consultant, and jointly retained, together with the Talc Claimants' Committee, B. Riley as financial advisor. Presperse's parent, Sumitomo Corporation of Americas, is providing post-petition financing and is represented by lawyers at Lowenstein Sandler. PRETIUM PKG: $1.04BB Bank Debt Trades at 30% Discount ----------------------------------------------------- Participations in a syndicated loan under which Pretium PKG Holdings Inc is a borrower were trading in the secondary market around 70.4 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $1.04 billion Payment in kind Term loan facility is scheduled to mature on October 2, 2028. Pretium PKG Holdings, Inc. is a manufacturer of rigid plastic containers for variety of end markets, including food and beverage, chemicals, healthcare, wellness and personal care. Pretium PKG Holdings, Inc. is a portfolio company of Clearlake since January 2020. PRETIUM PKG: $350MM Bank Debt Trades at 74% Discount ---------------------------------------------------- Participations in a syndicated loan under which Pretium PKG Holdings Inc is a borrower were trading in the secondary market around 26.5 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $350 million Term loan facility is scheduled to mature on October 1, 2029. The amount is fully drawn and outstanding. Pretium PKG Holdings, Inc. is a manufacturer of rigid plastic containers for variety of end markets, including food and beverage, chemicals, healthcare, wellness and personal care. Pretium PKG Holdings, Inc. is a portfolio company of Clearlake since January 2020. PROS HOLDINGS: Fiscal Q4 Revenue Up 10% to $85 Million ------------------------------------------------------ PROS Holdings, Inc. announced financial results for the fourth quarter and full year ended December 31, 2024. "I'm incredibly proud of our team for finishing the year strong – in 2024, we achieved 14% subscription revenue growth, delivered a 400% improvement in adjusted EBITDA, won exceptional new customers, and deepened our relationships across our expanding customer base," stated CEO Andres Reiner. "These results, combined with being ranked a Leader in every key industry analyst evaluation specific to our solutions, highlight our market momentum and position us for continued growth in 2025 and beyond." Fourth Quarter and Full Year 2024 Financial Highlights: * Total revenue of $85 million in the fourth quarter, up 10% year-over-year. * Subscription revenue of $69.3 million in the fourth quarter, up 14% year-over-year. * Subscription gross margin of 79% and non-GAAP subscription gross margin of 81% in the fourth quarter, an improvement of more than 270 basis points year-over-year. * Operating cash flow of $24.0 million in the fourth quarter, up 73% year-over-year. Recent Business Highlights * Welcomed many new customers who are adopting the PROS Platform such as Arco, BradyPLUS, Cooper Machinery, Fastjet, HBK, Pipeline Packaging, and Werner Electric, among others. * Expanded adoption of the PROS Platform within existing customers including Adobe, Air Canada, Averitt, BASF, Flydubai, Henkel, Hertz, Holcim, Lufthansa Group, and Manitou, among others. * Earned recognition as a Leader in the 2025 Gartner® Magic Quadrant™ for Configure, Price, and Quote (CPQ) Applications for the third time, achieving PROS highest leadership ranking in the evaluation to date, a testament to PROS leadership in innovation and expanding market presence. * Received the Leader designation in the IDC MarketScape: Worldwide Configure Price Quote (CPQ) Applications for Commerce 2024-2025, in recognition of PROS AI-driven innovations including our advanced pricing capabilities and seamless ecosystem integrations. * Received the IDC 2024 CX CPQ Customer Satisfaction Award, ranking among the highest in a survey from 2,500 organizations globally across approximately 40 customer satisfaction metrics, with recognition for ease of implementation and user experience. * Released over 560 new features in the PROS Platform in 2024 that drove new customer acquisition and customer expansion throughout the year, including new solutions such as Smart Rebate Management and generative AI-powered Fare Finder Genie. * Processed 4.4 trillion transactions in our platform in 2024, a 29% increase in volume year-over-year, underscoring the PROS Platform's significant market value and increasing customer adoption. Financial Outlook PROS currently anticipates the following based on an estimated 47.9 million diluted weighted average shares outstanding for the first quarter of 2025 and a 22% non-GAAP estimated tax rate for the first quarter and full year 2025. 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/3b2pd32c 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. PROVIDENT GRP-ROWAN: Moody's Alters Outlook on 2015A Bonds to Pos. ------------------------------------------------------------------ Moody's Ratings has changed the outlook of New Jersey Economic Development Authority's Revenue Bonds (Provident Group - Rowan Properties L.L.C. - Rowan University Student Housing Project) Series 2015A to positive from stable and affirmed the B1 rating. There are approximately $113 million of Series 2015A bonds outstanding. The outlook revision to positive from stable is based on a three-year trajectory of above 1.0x debt service coverage (DSC), high demand for the project's student housing units, and gradual restoration of liquidity. The revision also incorporates an expectation that the debt service reserve (DSR) fund will be fully replenished at its covenanted level by fiscal year end 2025. RATINGS RATIONALE The B1 affirmation of the Series 2015A bond rating reflects a three-year rebound in the project's (known as Holly Pointe Commons) operating performance, following a period of pandemic-related losses. Unaudited fiscal 2024 operations resulted in a DSCR of 1.14x (DSCR 1.07x per 2023 audit), incorporating Moody's adjustments, and an improved liquidity position, benefitting from a three year average fall occupancy rate of 96%. The January 1, 2025 payment of principal and interest was met without any draw upon the DSR. As of February 2025, the DSR is funded at 95%, which is a material improvement over the January 2022 low-point of only 60% funding. The project has a favorable relationship with the university, which provides a limited level of support, including the marketing of Holly Pointe Commons on an equal basis with the university's existing housing stock, a 32-year ground lease, and subordination of university housing expenses. Offsetting factors include the underfunded DSRF and the complexity of the management structure, with decision-making by both the university and project management. RATING OUTLOOK The positive outlook reflects a turnaround in the project's operating performance and Moody's expectation that debt service coverage will be at or above 1.20x over the near to medium term, given the strong demand for Holly Pointe Common's 1,413 housing beds. Based on recent improvement in operating results, the full replenishment of the DSR fund is expected within the next 12 months. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING -- Strong operating performance over the medium term resulting in sustained DSC at or above 1.20x -- Full replenishment of the DSR in conjunction with improving financial operations FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING -- Below 1.0x DSC -- Further draws from the DSR -- Inflationary pressures on costs and/or diminished student demand LEGAL SECURITY The bonds are special limited obligations payable solely from revenues of the project, mainly rental revenues, and other funds held with Trustee and do not constitute obligations for the Issuer or the university. The obligations are secured by payments made under the Loan Agreement, a leasehold mortgage and amounts held by the Trustee under the Indenture. PROFILE The Obligor and Owner, Provident Group - Rowan Properties LLC, is a single member LLC organized and existing under the laws of New Jersey for the purpose of developing and financing certain facilities for the benefit of the University. The sole member of the Obligor is Provident Resources Group, Inc., a 501(c)(3) Georgia nonprofit corporation with a national presence. METHODOLOGY The principal methodology used in this rating was Global Housing Projects published in August 2024. PYXUS INTERNATIONAL: Posts $19MM Net Income for 4Q 2024 ------------------------------------------------------- Pyxus International, Inc., reported $19,410,000 in net income over $116,447,000 in gross profit for the three months ended December 31, 2024, compared to $4,179,000 in net income over $92,548,000 in gross profit for the three months ended December 31, 2023. The Company also reported $21,089,000 in net income over $275,768,000 in gross profit for the nine months ended December 31, 2024, compared to $12,845,000 in net income over $254,359,000 in gross profits for the nine months ended December 31, 2023. The Company further reported $1,720,184,000 in total assets, $1,553,177,000 in total liabilities, and $167,007,000 in total shareholders' equity as of December 31, 2024. A full-text copy of the Form 10-Q is available at https://urlcurt.com/u?l=gYLwPW About Pyxus International Pyxus International Inc. -- http://www.pyxus.com/-- is a global agricultural company with 145 years of experience delivering value-added products and services to businesses, customers, and consumers. On June 15, 2020, Pyxus and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 20-11570). Judge Laurie Selber Silverstein oversees the cases. The Debtors tapped Simpson Thacher & Bartlett, LLP as general bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as Delaware bankruptcy counsel; and Lazard Freres & Co. LLC and RPA Advisors, LLC as restructuring advisors. Prime Clerk, LLC served as the claims and noticing agent and administrative advisor. Pyxus announced Aug. 24, 2020, that its Amended Joint Prepackaged Chapter 11 Plan of Reorganization has become effective. As a result, Pyxus has successfully completed its financial restructuring and emerged from Chapter 11 with its debt reduced by more than $400 million and maturities extended. Q'BOLE INC: Unsecureds to Get 11.5 Cents on Dollar in Plan ---------------------------------------------------------- Q'Bole Inc. submitted an Amended Plan of Reorganization for Small Business dated Feb. 6, 2025. The Debtor is a [corporation]. Since 2004, the Debtor has been in the business of Restaurant Operations. The Debtor Is Changing from a sit-down operation to a mobile operation, and sell the Liquor License. The Plan Proponent's financial projections show that the Debtor will have projected disposable income of $1,225.00 per month. The final Plan payment is expected to be paid on November 5, 2029. This Plan of Reorganization proposes to pay creditors of the Debtor from operations, or future income]. Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately 11.5 cents on the dollar. This Plan also provides for the payment of administrative and priority claims. Class 3 Non-priority unsecured creditors to receive 11.5%. Monthly disposable paid to general unsecured claims shall be $625 for 60 months. The allowed unsecured claims total $179,595.08. A full-text copy of the Amended Plan dated February 6, 2025 is available at https://urlcurt.com/u?l=04NFlU from PacerMonitor.com at no charge. Counsel to the Debtor: Peter G. Macaluso, Esq. LAW OFFICES OF PETER G. MACALUSO 7230 South Land Park Drive, Suite 127 Sacramento, CA 95831 Tel: (916) 392-6591 Cell: (916) 705-8847 Fax: (916) 392-6590 Email: info@pmbankruptcy.com About Q'Bole Inc. Q'Bole, Inc., is a closely held corporation and Diana Calderon is the president and majority shareholder. The Debtor sought protection under Chapter 11 of the Bankruptcy, Code (Bankr. E.D. Cal. Case No. 24-24816) on October 26, 2024, with up to $50,000 in assets and up to $500,000 in liabilities. Judge Fredrick E. Clement presides over the case. Peter G. Macaluso, Esq., is the Debtor's legal counsel. QUALITY SERVICES: Unsecureds to Get 16 Cents on Dollar in Plan -------------------------------------------------------------- Quality Services, Inc., filed with the U.S. Bankruptcy Court for the District of Nevada a Plan of Reorganization for Small Business dated February 4, 2025. The Debtor is a Nevada limited liability company, doing business as Quality Carpets. Since 1975, the Debtor has been in the business of installing carpet and flooring for businesses and residences in Northern Nevada and the surrounding areas. The Debtor has been successful in its operations since 1975. However, like many other businesses, when the COVID 19 Pandemic occurred, the Debtor saw a decline in business. Post-pandemic, the Debtor's business prospects improved, until it was sued by The Employee Painter's Trust, et al. in the U.S. District Court on February 8, 2024 ("Union Lawsuit"). The Debtor is a signatory to the Northern Nevada Floor Covering Master Agreement ("CBA") between the International Union of Painters and Allied Trades District Council 16 ("Union") and the Independent Flooring Contractors of Northern Nevada. The Union Lawsuit, coupled with the fact that the Debtor is unable to find workers, non-union or union, to bid on new contracts, is hindering the Debtor's business operations and prospects. Therefore, on November 6, 2024, the Debtor filed its voluntary petition for relief under chapter 11 of title 11 of the United States Code in the U.S. Bankruptcy Court for the District of Nevada, thereby commencing its reorganization case. The Debtor elected to be treated as a small business debtor under Subchapter V of chapter 11 of the Bankruptcy Code. The Debtor has continued to operate its business as a debtor in possession since the Petition Date. The Plan Proponent's financial projections show that the Debtor will have projected disposable income of $2,500.00 per month. The final Plan payment is expected to be paid on June 2028. This Plan of Reorganization proposes to pay creditors of the Debtor from cash flow from operations and/or future income. Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately 16 cents on the dollar. This Plan also provides for the payment of administrative and priority claims. Class 2 consists of Non-priority unsecured creditors. Each holder of an Allowed general unsecured, non-priority claim shall receive its pro rata share of the sum of $90,000.00 which shall be paid in installments of $7,500.00 per quarter, starting in Month 1 after the Effective Date, and continuing each and every three months thereafter (for a total of twelve quarterly payments) until that total sum is paid, or such greater amount as the Court may require at the confirmation hearing on the Plan and as consistent with Sections 1190 and 1191 of the Code. Class 2 is impaired. Class 3 consists of Equity security holders of the Debtor. Except to the extent that Holders of Class 3 Equity Interests agree to less favorable treatment, they shall retain their Equity Interests, subject to the terms and conditions of this Plan. Class 3 is unimpaired and thus is deemed to accept the Plan. The Plan will be funded through cash flow from future operations of the Debtor's business. Debtor's projected budgets are based on historical financials and projected future revenues. A full-text copy of the Plan of Reorganization dated February 4, 2025 is available at https://urlcurt.com/u?l=yo7nas from PacerMonitor.com at no charge. Counsel to the Debtor: Stephen R. Harris, Esq. Harris Law Practice LLC 850 E. Patriot Blvd., Suite F Reno, NV 89511 Telephone: (775) 786-7600 Email: steve@harrislawreno.com About Quality Services Quality Services, Inc., has been in the business of installing carpet and flooring for businesses and residences in Northern Nevada and the surrounding areas. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No. 24-51118) on Nov. 6, 2024, with up to $50,000 in assets and up to $1 million in liabilities. Judge Hilary L. Barnes presides over the case. Stephen R. Harris, Esq., at Harris Law Practice, LLC, is the Debtor's bankruptcy counsel. RAPID7 INC: Chief People Officer Christina Luconi Resigns --------------------------------------------------------- Rapid7, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that Christina Luconi, Chief People Officer, notified the Company of her resignation from her position. Ms. Luconi intends to continue to serve as the Company's Chief People Officer until her successor is appointed. Thereafter, the Company and Ms. Luconi expect that she will continue to serve the Company in an advisory capacity for an additional period of six months (or as otherwise mutually agreed) to support continuity and a smooth transition. The terms of such service will be set forth in an advisory agreement that the Company expects to enter into subsequently with Ms. Luconi. The Company has initiated a search process to identify a successor for the Chief People Officer position. About Rapid7 Inc. Rapid7, Inc. (Nasdaq: RPD) provides cybersecurity services. Rapid7 reported a net loss of $149.26 million for the year ended December 31, 2023, compared to a net loss of $124.7 million for the year ended December 31, 2022. As of June 30, 2024, Rapid7 had $1.5 billion in total assets, $1.6 billion in total liabilities, and $52.9 million in total stockholders' deficit. * * * Egan-Jones Ratings Company on October 10, 2023, maintained its 'CC' foreign currency and local currency senior unsecured ratings on debt issued by Rapid7, Inc. REDLINE METALS: Court OKs Interim Use of Cash Collateral -------------------------------------------------------- Redline Metals, Inc. received 14th interim approval from the U.S. Bankruptcy Court for the Northern District of Illinois to use the cash collateral of its senior secured creditor, Old Second National Bank. The interim order, signed by Judge Jacqueline Cox on Feb. 11, authorized the company to use cash to pay payroll and related expenses, plus applicable employer paid taxes, subject to available funds. The Debtor is only allowed to use cash collateral for protecting and preserving assets and completing a Section 363 Sale of assets. In addition, Old Second National Bank was granted adequate protection for its interests in the collateral. This includes priority security interests and measures to ensure access to the company's financial records. The next hearing is scheduled for Feb. 18, 2025. About Redline Metals Redline Metals, Inc. is a recycling center in Lombard, Ill. Redline Metals filed Chapter 11 petition (Bankr. N.D. Ill. Case No. 24-12590) on Aug. 27, 2024, with $10 million to $50 million in both assets and liabilities. Judge Jacqueline P. Cox oversees the case. The Debtor is represented by: Paul M. Bach Bach Law Offices Tel: 847-564-0808 Email: paul@bachoffices.com RISE MANAGEMENT: Unsecureds Will Get 13.61% over 84 Months ---------------------------------------------------------- Rise Management, LLC, filed with the U.S. Bankruptcy Court for the Eastern District of Louisiana an Amended Disclosure Statement for Plan of Reorganization dated February 7, 2025. The Debtor was founded in 2012. Its primary assets are three retail/office/restaurant buildings and related improvements located in New Orleans, Louisiana (hereinafter, collectively referred to as the "Properties") which sit on three separate lots, with all utilities, services, and parking separated per lot. The three parcels, two with buildings and one with raw land, were acquired in December 2014 for the amount of $1,200,000.00. Since acquiring the Properties, the Debtor restructured its lease agreement to have all pass through triple net ("NNN") fees, which protect Creditors and ownership, for variable expenses outside their control pass directly through to tenant operators. The Debtor's cashflow is derived from the collection of rents of the units on the Property, building and designing units, management fees, leasing fees, and property maintenance. The new LED lighting, signage, large store front wrap around glass, landscaping, and re-designed parking layout, are proven successes and attractive to operators and tenants. The Debtor's primary asset is real property located at 3301, 3321, & 3361 General DeGaulle, New Orleans, Louisiana. The Debtor estimates the current value of the Property is $1,700,000.00. An appraisal of the Property prepared by Cook Moore in 2022, valued the Property at 1,800,000.00. Due to a decrease in tenants, the Property value was decreased. The primary purpose of the Plan is to reorganize the Debt of the Debtor and make distributions to Holders of Allowed Claims. The Plan contemplates payments to all Holders of Allowed Claims against the Debtor based upon the cash flow created through the business operations of the Debtor or, alternatively, Liquidation of the Debtor's assets. The Holders of Equity Interests will not receive any Distribution until all other Allowed Claims have been paid in accordance with the Plan. Class 5 consists of General Unsecured Claims. Each Holder of an Allowed General Unsecured Claim shall receive quarterly cash payments equal to its Pro Rata share of $195,000.00, to be paid over a period of eighty-four months. Payments shall commence on the first day of the fifteenth month after the Distribution Date. Class 5 will also receive fifty percent of the Litigation Funds. Any distributions of Litigation Funds will not be applied towards the quarterly payment amounts. The total estimate of the Class 4 Claims is $1,432,534.02. This Class will receive a distribution of 13.61% of their allowed claims. This Class is impaired. Class 6 consists of Equity Interests. Although the Holders of Existing Equity Interests shall retain those interests after Confirmation, no distributions may be made to the Holders of such Equity Interests by virtue of same unless the following conditions have been met: (a) all Unclassified Claims except for Priority Claims have been paid in full; and, (b) the Debtor is current on all payments to the Holders of Priority Claims and the Class 2, 3, 4 and 5 Claims as required by this Plan. Payments by Holders of Existing Equity Interests to fund repairs and renovations to the Property will be deemed new value contributions by Equity. The financial forecast of the Debtor is based upon the funds generated from operation of the Debtor's business and assumes an occupancy rate of 100%. Cash distributions will come from current operations, Litigation Proceeds, and, if necessary, Exit Financing. Projections for the future performance of Rise Management. A full-text copy of the Amended Disclosure Statement dated February 7, 2025 is available at https://urlcurt.com/u?l=Ag8L5n from PacerMonitor.com at no charge. Counsel to the Debtor: Patrick S. Garrity, Esq. Derbes Law Firm, LLC 3027 Ridgelake Drive Metairie, LA 70002 Telephone: (504) 207-0920 Facsimile: (504) 832-0322 E-mail: pgarrity@derbeslaw.com About Rise Management Rise Management LLC is primarily engaged in renting and leasing real estate properties. The Debtor owns three properties located in New Orleans having a total current value of $1.3 million. Rise Management LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 24-11535) on August 7, 2024. In the petition filed by Cullan Maumas of MagNola Ventures, LLC, the Debtor's manager, the Debtor reports total assets of $2,628,537 and total liabilities of $2,952,920. The Honorable Bankruptcy Judge Meredith S. Grabill oversees the case. The Debtor is represented by Patrick Garrity, Esq. at THE DERBES LAW FIRM, LLC. RIVERSIDE FARMERS: Unsecureds to Get Share of Income for 60 Months ------------------------------------------------------------------ Riverside Farmers, LLC, filed with the U.S. Bankruptcy Court for the District of Maryland a Subchapter V Plan of Reorganization dated February 4, 2025. The Debtor was formed on November 6, 2017. Since that time, it has operated as an insurance agency with its primary contract being with Farmers Insurance. The Debtor consulted with bankruptcy counsel and ultimately made the decision to seek to reorganize under Chapter 11. As the Debtor prepared for its bankruptcy case, the Debtor sought and obtained new appointments as the insurance industry itself started to emerge from the industry's struggles. Prior to filing, the Debtor obtained an appointment with GEICO, its largest carrier yet, and anticipates growth in the periods to come. On November 6, 2024, the Debtor's bankruptcy case was filed. The Internal Revenue Service has asserted that the Debtor owes a sum less than $2,000.00 and the Debtor disputes that obligation. Nonetheless, the obligation, even if it is determined to exist, is relatively minor. The obligation due to the SBA carries interest at the rate of 3.75% per annum and requires the Debtor to make monthly payments of principal and interest in the amount of $248.00 until the loan balance becomes due on June 1, 2050. The lender has agreed to allow the vehicle to be sold. Beyond that, the Debtor only has unsecured claims and proposes to pay those claims from the disposable income from its operations. To date, the Debtor has not received communications of any sort from its creditors suggesting that the Debtor would have any problem confirming its Plan and the Debtor it is confident that it will be able to maintain operations during the course of this case and that it will complete its reorganization as proposed in this Plan. Class 4 consists of Allowed General Unsecured Claims. In full and complete satisfaction, discharge and release of the Class 4 Claims, the Debtor shall pay the Holders of Allowed Class 4 Claims, without interest, their pro-rata shares of all available projected Disposable Income, paid semi-annually on the Plan Payment Dates. Class 4 is impaired. Class 5 consists of Equity Interests. On the Effective Date, the legal, equitable and contractual rights of the Debtor in its assets and properties shall be retained unaltered. Class 5 is Unimpaired. As a result, pursuant to Section 1126(f) of the Bankruptcy Code, the holders of the equity interests in the Debtor are conclusively deemed to have accepted the Plan and, therefore, are not entitled to vote to accept or reject the Plan. The sources and value of funds and assets for distribution is as follows: * Commissions and Renewals. During the term of this Plan, the Debtor shall pay all projected Disposable Income from its commissions and renewals for the performance of the Plan, which Disposable Income is projected. * Reserves. For the first 24 months following the Effective Date, the Debtor shall retain the sum of $5,000.00 on deposit for the purpose of funding unforeseen short-term deficiencies in operations. For months 25 through 36 following the Effective Date, the Debtor shall retain the sum of $6,500.00 on deposit for the purpose of funding unforeseen short-term deficiencies in operations. For months 37 through 48 following the Effective Date, the Debtor shall retain the sum of $7,500.00 on deposit for the purpose of funding unforeseen short-term deficiencies in operations. For months 49 through 60 following the Effective Date, the Debtor shall retain the sum of $9,000.00 on deposit for the purpose of funding unforeseen short-term deficiencies in operations. Except as otherwise set forth in the Plan, the term of the Plan begins on the Effective Date and ends on the 60th month subsequent to that date. A full-text copy of the Subchapter V Plan dated February 4, 2025 is available at https://urlcurt.com/u?l=pIsYli from PacerMonitor.com at no charge. Counsel to the Debtor: Jeffrey M. Orenstein, Esq. Wolff & Orenstein, LLC 15245 Shady Grove Road Suite 465, North Lobby Rockville, MD 20850 Tel: (301) 250-7232 Email: jorenstein@wolawgroup.com About Riverside Farmers Riverside Farmers, LLC, formed on November 6, 2017, has operated as an insurance agency with its primary contract being with Farmers Insurance. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 24-19406) on Nov. 6, 2024. In the petition signed by Kevin Bobkoskie, owner and principal, the Debtor disclosed up to $500,000 in assets and up to $500,000 in liabilities. Judge Maria Ellena Chavez-Ruark oversees the case. Matthew Abbott, Esq., at Wolff & Orenstein LLC, is the Debtor's legal counsel. RLG HOLDINGS: $110MM Bank Debt Trades at 27% Discount ----------------------------------------------------- Participations in a syndicated loan under which RLG Holdings LLC is a borrower were trading in the secondary market around 73.2 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $110 million Term loan facility is scheduled to mature on July 9, 2029. The amount is fully drawn and outstanding. Atlas Purchaser, Inc., which does business as Alvaria, Inc., acquired the assets of Aspect Software in a leveraged buyout in 2021. Aspect is a provider of call center software and solution. RSTZ TRANSPORT: Taps Falcone Law Firm as Bankruptcy Counsel ----------------------------------------------------------- RSTZ Transport Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to hire The Falcone Law Firm, PC as attorney. The firm will render these services: (a) advise, assist, and represent the Debtor regarding its rights, powers, duties, and obligations in the administration of its Chapter 11 case; (b) advise, assist, and represent the Debtor in connection with the analysis of its assets, liabilities, financial condition, and other matters related to its business; (c) advise, assist, and represent the Debtor in the preparation, negotiation, and implementation of a plan of reorganization; (d) advise, assist, and represent the Debtor regarding objections to or subordination of claims and other litigation as required by the Debtor; (e) advise, assist, and represent the Debtor regarding the rejection of assumption and potential assignment of any executory contracts or unexpired leases; (f) advise, assist, and represent the Debtor regarding applications, motions or complaints concerning the use of the estate's assets and similar matters; (g) advise, assist, and represent the Debtor regarding the sale or other dispositions of any assets of the estate; (h) prepare legal papers; (i) assist the Debtor regarding the proper receipt, disbursement and accounting of funds and property of the estate; and (j) perform any and all other legal services related to the Chapter 11 case. The hourly rates of the firm's counsel and staff are as follows: Senior Attorneys $450 Associate Attorneys $325 Paralegals $200 Administrative Assistants $100 The firm has received a security deposit of $40,000 from the Debtor. Ian Falcone, Esq., a partner at Falcone Law Firm, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Ian Falcone, Esq. THE FALCONE LAW FIRM, PC 363 Lawrence St NE Marietta, GA 30060-2056 Tel: (770) 426-9359 E-mail: imf@falconefirm.com About RSTZ Transport Inc. RSTZ Transport Inc. is a Georgia-based corporation operating in the general freight trucking industry. RSTZ Transport Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-20123) on January 31, 2025. In its petition, the Debtor reports total assets of $3,464,462 and total liabilities of $4,588,041. The Debtor is represented by Ian Falcone, Esq. at THE FALCONE LAW FIRM, PC. SCANROCK OIL: Seeks Chapter 11 Bankruptcy Protection in Texas ------------------------------------------------------------- On February 3, 2025, Scanrock Oil & Gas Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas. According to court filing, the Debtor reports $50 million and $100 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Scanrock Oil & Gas Inc. Scanrock Oil & Gas Inc. operates an integrated oil and gas exploration and production platform. Scanrock Oil & Gas Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-90001) on February 3, 2025. In its petition, the Debtor reports estimated assets between $10 million and $50 million and estimated liabilities between $50 million and $100 million. Honorable Bankruptcy Judge Mark X. Mullin handles the case. The Debtor is represented by: Thomas Daniel Berghman, Esq. Munsch Hardt Kopf & Harr PC 500 N. Akard St., Ste. 4000 Dallas, TX 75201 Telephone: (214) 855-7554 Facsimile: (214) 978-4375 Email: tberghman@munsch.com SCREENVISION LLC: S&P Downgrades ICR to 'CCC-', Outlook Negative ---------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on Screenvision LLC and its issue-level ratings on its debt to 'CCC-' from 'CCC+'. The negative outlook reflects the near-term debt maturity and the risk that the company could face a payment default if it were unable to refinance before its July 2025 maturity. S&P said, "We do not expect Screenvision will be able to repay the outstanding balance on its term loan without refinancing. Screenvision has about $143 million outstanding on its term loan (due July 2, 2025) as of Sept. 30, 2024. The company ended the same period with about $7 million of cash on hand and less than $1 million of year-to-date free cash flow. While we expect FOCF generation will pick up in the fourth quarter and into 2025, we do not expect the company will generate sufficient cash to cover its upcoming debt maturity. The company's revolving credit facility also matures on March 1, 2025; however, we expect Screenvision will repay the $10.5 million outstanding balance on this facility using cash on hand, and if necessary, by drawing on its $25 million sponsor facility due at the end of May 2025 ($13.6 million of capacity as of September 2024). "We expect the in-cinema advertising industry will grow by about 10% in 2025 driven by a stronger box office release slate. We believe the stronger release slate will lead to a total domestic box office of $9.3 billion-$9.5 billion in 2025, or growth of about 10%, driven mostly by higher theater attendance. Screenvision charges its clients based on cost per thousand impressions, therefore higher attendance will increase the company's ability to generate revenue. We expect Screenvision's 2025 revenue will improve but remain well below pre-pandemic performance at about 70% of 2019 levels." The negative outlook reflects the near-term debt maturity and the risk that the company could face a payment default if it is unable to refinance before its July 2025 maturity. S&P said, "We could lower our rating to 'SD' or 'D' if Screenvision pursued a transaction that we considered tantamount to a default, including a subpar exchange or failure to repay its debt in full at maturity. "We could raise our rating if Screenvision extended its debt maturities such that we did not expect a risk of a liquidity shortfall." SEAQUEST HOLDINGS: Matt McKinlay Appointed as Chapter 11 Trustee ---------------------------------------------------------------- Jonas Anderson, the Acting U.S. Trustee for Region 18, appointed Matt McKinlay as Chapter 11 trustee for SeaQuest Holdings, LLC. The appointment was made pursuant to the order from the U.S. Bankruptcy Court for the District of Ohio on Feb. 3. Mr. McKinlay declared in a court filing that he is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. About SeaQuest Holdings SeaQuest Holdings, LLC better known as SeaQuest, is an interactive marine, exotic mammal, and bird/reptile life attraction chain. Guests are encouraged to connect with animals and learn about their ecosystems through various hands-on activities which include hand-feeding sharks, stingrays, birds, and tropical animals. SeaQuest offers a private event venue ideal for school field trips, birthday parties, and more. SeaQuest Holdings sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Idaho Case No. 24-00803) on December 2, 2024, listing total assets of $659,473 and total liabilities of $16,653,877. Aaron Neilsen, chief executive officer of SeaQuest Holdings, signed the petition. Judge Benjamin P. Hursh handles the case. The Debtor is represented by Matthew T. Christensen, Esq., at Johnson May, PLLC. SEATON INVESTMENTS: Rental Income to Fund Plan Payments ------------------------------------------------------- Broadway Avenue Investments LLC, SLA Investments LLC, Negev Investments LLC, Alan Gomperts, Daniel Halevy, and Susan Halevy, debtor affiliates of Seaton Investments LLC, submitted a Disclosure Statement and Plan of Reorganization dated February 6, 2025. The Corporate Debtors are organized as LLCs. The Debtors conducted 100% of its business activity in California since 1983. Before this case was commenced on March 19, 2024 (Corporate Debtors) and March 18 (Individual Debtors), the Debtor, was in the business of developing real estate. These Bankruptcy Cases present two real estate investments that require a restructuring to address defaults on their senior loans: (1) the buildings at 440 Seaton Street, Los Angeles, CA, 90013 (the "Seaton Building"), and 421 Colyton Street, Los Angeles, CA, 90013 (the "Colyton Building"), which together are operated as an economic unit (the "Seaton/Colyton Buildings") and are owned by Debtors Seaton and Colyton, respectively; and (2) the building at 737 S. Broadway, Los Angeles, CA, 90014 (the "Broadway Building"), owned by Debtor Broadway. Archway has commenced an action against the Individual Debtors where it has sought prejudgment writs of attachment against Daniel Halevy and Alan Gomperts. Archway has also commenced foreclosure proceedings against the properties owned by the Individual Debtors, SLA, and Negev to recover on their guarantees and collateral. KDM has commenced an action against Seaton and Colyton for appointment of a receiver. Seaton and Colyton have agreed with KDM on terms to resolve KDM's debt and to allow the Seaton and Colyton bankruptcy cases to be dismissed. Broadway is projecting to confirm a whole-building lease with financing that will drive cash flow to allow for plan confirmation and increase property values immediately. The Plan calls for Class 4 secured claims to receive regular interest payments during the course of the Plan followed by a balloon payment at the end of year 3. In order to make the balloon payment and complete Plan payments, Debtors will need to refinance or sell those properties that secure loans with projected balloon payments. How easily Debtors will be able to do this depends upon a multitude of micro and macro-economic factors such as the value of the properties and the strength of the applicable real estate market. The allowed unsecured claims against Broadway total $380,000 and creditors will receive a distribution of 100% of their allowed claims. The allowed unsecured claims against SLA total $62,000 and creditors will receive a distribution of 100% of their allowed claims. The allowed unsecured claims against Negev total $1,680 and creditors will receive a distribution of 100% of their allowed claims. The allowed unsecured claims against A. Gomperts total $1,868 and creditors will receive a distribution of 100% of their allowed claims. The allowed unsecured claims against D. Halevy total $166,000 and creditors will receive a distribution of 100% of their allowed claims. Under the Plan, Shareholders simply retain their shares of stock. The Debtors ability to generate income is tied to rents on commercial properties, single family homes, and apartments. If the Debtors were to lose tenants or not lease up space on the timeline projected, such circumstances could have a negative impact on the implementation of the Plan. The Debtors' Plan accounts for regular business and economic fluctuations that can cause rental income to fluctuate. A full-text copy of the Disclosure Statement dated February 6, 2025 is available at https://urlcurt.com/u?l=QhHaOq from PacerMonitor.com at no charge. Counsel for Broadway Avenue Investments, LLC, SLA Investments, LLC, Negev Investments, LLC: Daniel J. Weintraub, Esq. Weintraub Zolkin Talerico & Selth LLP 11766 Wilshire Boulevard, Suite 450 Los Angeles, CA 90025 Tel: (310) 207-1494 Fax: (310) 442-0660 Email: dzolkin@wztslaw.com Counsel to Debtors Alan Gomperts, Daniel Halevy, and Susan Halevy: Zev Shechtman, Esq. Saul Ewing LLP 1888 Century Park East, Suite 1500 Los Angeles, CA 90067 Telephone: (310) 255-6100 Facsimile: (310) 255-6200 Email: Zev.Shechtman@saul.com About Seaton Investments Seaton Investments, LLC, is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Seaton Investments filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-12079) on March 19, 2024, listing $10 million to $50 million in both assets and liabilities. The petition was signed by Alan D. Gomperts as managing member. Judge Vincent P. Zurzolo presides over the case. Derrick Talerico, Esq., at Weintraub Zolkin Talerico & Selth, LLP, is the Debtor's legal counsel. SKY ROCK: Seeks to Hire Herrin Law PLLC as Bankruptcy Counsel ------------------------------------------------------------- Sky Rock Trucking LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Texas to hire Herrin Law, PLLC as counsel. The firm's services include: a. providing legal advice with respect to his powers and duties as debtor-in-possession; b. preparing and pursuing confirmation of a plan and approval of a disclosure statement; c. preparing on behalf of the Debtors necessary applications, motions, answers, orders, reports and other legal papers; d. appearing in Court and protecting the interests of the Debtor before the Court; and e. performing all other legal services for the Debtor which may be necessary and proper in these proceedings. The firm will be paid at these rates: Manolo Raphael Santiago, Esq. $400 per hour C. Daniel C. Herrin, Esq. $400 per hour Attorneys $300 per hour Paralegals $125 to 190 per hour Prior to the filing of this case, the Debtor paid the firm the amount of $10,738 as retainer. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Manolo Raphael Santiago, Esq. a managing partner at Herrin Law, PLLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: C. Daniel Herrin, Esq. Herrin Law, PLLC 12001 N. Central Expy, Suite 920 Dallas, TX 75243 Tel: (469) 607-8551 Fax: (214) 722-0271 About Sky Rock Trucking LLC Sky Rock Trucking LLC sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tex. Case No. 25-40105) on Jan. 14, 2025, listing $500,001 to $1 million on both assets and liabilities. Judge Brenda T Rhoades presides over the case. Daniel Herrin, Esq. at Herrin Law, PLLC represents the Debtor as counsel. SMITH GLOBAL: Claims to be Paid From Disposable Income ------------------------------------------------------ Smith Global Media, Inc., filed with the U.S. Bankruptcy Court for the Central District of California a Plan of Reorganization for Small Business dated February 6, 2025. The Debtor is a corporation. Since 2016, the Debtor has been in the business of distributing and marketing motion pictures to entertainment companies. The Debtor received $164,622.92 post-petition and paid normal accounting expenses of $6,950 for a net balance of disposable income of $157,672.92. Debtor rejects all executory contracts and the only assets of the corporation are the funds of $157,672.92. Debtor does not expect any additional income. The Plan Proponent has provided projected financial information as follows: Debtor received $164,622.92 post-petition and paid normal accounting expenses of $6,950 for a net balance of disposable income of $157,672.92. That will be enough to pay all Administrative and Priority Tax claims and to pay a pro-rata share to Class 3 unsecured claims. The Plan Proponent's financial projections show that the Debtor will have projected disposable income of $164,622.92 less normal accounting expenses of $6,950 for a net balance of disposable income of $157,672.92. The final Plan payment is expected to be paid 30 days after the effective date of the Plan. Non-priority unsecured creditors holding allowed claims will receive pro rata distributions for the class. This Plan also provides for the payment of administrative and priority claims. Class 3 consists of non-priority unsecured creditors. Class 3 Creditors will be paid pro rata not later than 30 days after the effective date of the Plan. This Class is impaired. The payments under the plan will be funded by money received in 2024 after the Petition was filed. No further funds have been received thereafter. A full-text copy of the Plan of Reorganization dated February 6, 2025 is available at https://urlcurt.com/u?l=BPW2XW from PacerMonitor.com at no charge. Counsel to the Debtor: Vernon L. Ellicott, Esq. Law Office Of Vernon L. Ellicott 2625 Townsgate Road, Suite 330 Westlake Village, CA 91381 Tel: (805) 446-6262 Email: vle@vlelaw.com About Smith Global Media, Inc. Smith Global Media Inc. serves as a source for home theater and media content. The Company is passionate about transforming living spaces into immersive entertainment hubs, providing expert insights, reviews, and the latest trends in the world of home theaters. Smith Global Media Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11390) on August 21, 2024. In the petition filed by Harry Smith, as CEO, the Debtor reports total assets of $75,001 and total liabilities of $2,575,126. The Honorable Bankruptcy Judge Martin R. Barash oversees the case. The Debtor is represented by Vernon L. Ellicott, Esq. of the LAW OFFICE OF VERNON L. ELLICOTT. SOLUNA HOLDINGS: YA II PN Reports 9.99% Equity Stake ---------------------------------------------------- YA II PN, Ltd. disclosed in a Schedule 13G filed with the U.S. Securities and Exchange Commission that as of February 5, 2025, it and its affiliates beneficially owns 1,059,641 shares of Soluna Holdings, Inc. common stock, representing 9.99% of the outstanding shares. YA II PN, Ltd. entered into a Standby Equity Purchase Agreement with Soluna Holdings, on August 12, 2024. Under the SEPA, the Issuer has the option to sell up to $25 million of its Common Stock to YA II, and YA II is obligated to purchase such shares, at a price and on the terms and subject to the conditions set forth in the SEPA. Under the SEPA, the Issuer is prohibited from issuing and selling shares to YA II to the extent that it would cause the aggregate number of shares of Common Stock beneficially owned by YA II and its affiliates to exceed 9.99% of the then outstanding shares of Common Stock of the Issuer. YA II is beneficially owned by YA Global Investments II (U.S.), LP. Yorkville Advisors Global, LP is the investment manager to YA II. Yorkville Advisors Global II, LLC is the general partner to the YA Advisor. YAII GP, LP is the general partner to the YA Feeder. YAII GP II, LLC is the general partner to the YA GP. Mark Angelo makes the investment decisions on behalf of YA II. Accordingly, each of YA II, YA Feeder, the YA Advisor, the YA Advisor GP, the YA GP, the Yorkville GP and Mark Angelo may be deemed affiliates and therefore may be deemed to beneficially own the same number of Class A Shares. YAII GP, LP is the general partner of SC-Sigma Global Partners, LP, which is an investor in YA II. YAII GP II, LLC is the general partner of YAII GP, LP. The YA Advisor is the investment manager to SC-Sigma. Accordingly, SC-Sigma, the YA GP, the Yorkville GP, the YA Advisor, and Mark Angelo may be deemed affiliates and therefore may be deemed to beneficially own the same number of shares of Class A Shares. YA II PN, Ltd. may be reached at: David Gonzalez, General Counsel 101 Hudson Street #3700 Jersey City NJ 07302 201 985 8300 A full-text copy of YA II PN's SEC Report is available at: https://tinyurl.com/4htddab2 About Soluna Holdings Headquartered in Albany, New York, Soluna Holdings designs, develops, and operates digital infrastructure that transforms surplus renewable energy into global computing resources. The Company's modular data centers can be co-located with wind, solar, or hydroelectric power plants and support compute-intensive applications, including Bitcoin mining, generative AI, and scientific computing. This approach aids in energizing a greener grid while providing cost-effective and sustainable computing solutions. Going Concern The Company was in a net loss, has negative working capital, and has significant outstanding debt as of March 31, 2024. These factors, among others, indicate that there is substantial doubt about the Company's ability to continue as a going concern within one year after the issuance of the Company's condensed financial statements, according to the Company's Quarterly Report for the period ended March 31, 2024. As of June 30, 2024, Soluna Holdings reported $98.68 million in total assets, $48.74 million in total liabilities, and $49.93 million in total equity. SONOMA PHARMACEUTICALS: Reports $928K Net Loss in Fiscal Q3 ----------------------------------------------------------- Sonoma Pharmaceuticals, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $928,000 on $3.6 million of revenues for the three months ended December 31, 2024, compared to a net loss of $866,000 on $3.1 million of revenues for the three months ended December 31, 2023. For the nine months ended December 31, 2024, the Company reported a net loss of $2.7 million on $10.5 million of revenues, compared to a net loss of $3.8 million on $9.3 million of revenues for the same period in 2023. As of December 31, 2024, the Company had $13.7 million in total assets, $8.8 million in total liabilities, and $4.9 million in total stockholders' equity. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/32ysab94 About Sonoma Pharmaceuticals Sonoma Pharmaceuticals, Inc. (NASDAQ: SNOA) -- http://www.sonomapharma.com-- is a global healthcare company developing and producing stabilized hypochlorous acid, or HOCl, products for a wide range of applications, including wound care, eye care, oral care, dermatological conditions, podiatry, animal health care, and non-toxic disinfectants. The Company's products reduce infections, itch, pain, scarring, and harmful inflammatory responses in a safe and effective manner. In-vitro and clinical studies of HOCl show it to safely manage skin abrasions, lacerations, minor irritations, cuts, and intact skin. The Company sells its products either directly or via partners in 55 countries worldwide. Tampa, Florida-based Frazier & Deeter, LLC, the Company's auditor since 2021, issued a "going concern" qualification in its report dated June 17, 2024, citing that the Company has incurred significant losses and negative operating cash flows and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about its ability to continue as a going concern. SONRAVA HEALTH: $552.5MM Bank Debt Trades at 59% Discount --------------------------------------------------------- Participations in a syndicated loan under which Sonrava Health Co-Borrower LLC is a borrower were trading in the secondary market around 41.4 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $552.5 million Term loan facility is scheduled to mature on August 18, 2028. The amount is fully drawn and outstanding. Sonrava Health is a national family of health and wellness companies united by a singular dedication to delivering high-quality, convenient, and affordable care through innovative provider models, health coverage and product offerings. SPIRIT AIRLINES: Extends Equity Rights Offering Deadline to Feb. 20 ------------------------------------------------------------------- As previously disclosed, on November 18, 2024, Spirit Airlines, Inc., and subsequently on November 25, 2024, its subsidiaries, filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York. The Debtors' chapter 11 cases are being jointly administered for procedural purposes only under case number 24-11988 (SHL). As further disclosed, on December 30, 2024, pursuant to that certain Restructuring Support Agreement, dated as of November 18, 2024, by and among the Company, certain of its subsidiaries and the Consenting Stakeholders (as defined therein) and the proposed pre-arranged plan of reorganization, the Company launched an equity rights offering of equity securities of the reorganized Company in an aggregate amount of $350 million. The Equity Rights Offering was originally set to expire at 5pm EST on January 30, 2025, unless extended in accordance with the terms of the Equity Rights Offering Procedures. On January 21, 2025, the Company extended the Subscription Tender Deadline by 14 days, until 5pm EST on February 13, 2025, and extended certain related deadlines accordingly. Consistent with the Equity Rights Offering Procedures and in consultation with the Required Backstop Commitment Parties (as defined in the Equity Rights Offering Procedures), the Company has decided to extend the Subscription Tender Deadline by seven days, until 5pm EST on February 20, 2025, and to extend certain related deadlines accordingly. The Debtors reserve the right to further extend the Subscription Tender Deadline and any other deadlines applicable to the Equity Rights Offering from time to time in accordance with the Equity Rights Offering Procedures. 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. SRAM LLC: Moody's Affirms B1 CFR & Rates New First Lien Loans B1 ---------------------------------------------------------------- Moody's Ratings assigned a B1 rating to SRAM, LLC's proposed senior secured first lien bank credit facilities, consisting of a $100 million senior secured first lien revolving credit facility expiring 2030 and a $600 million senior secured first lien term loan B due 2032. At the same time, Moody's affirmed the company's ratings, including its B1 Corporate Family Rating, B1-PD Probability of Default Rating, and the B1 rating on the company's existing senior secured first lien bank credit facilities. The outlook is stable. SRAM plans to use the proceeds from the proposed $600 million first lien term loan, along with cash on hand to refinance the existing $624 million outstanding principal amount first lien term loan due 2028. The company is also entering into a new $100 million first lien revolver expiring 2030, which is expected to be undrawn at close. Ratings for the existing first lien credit facilities will be withdrawn after the close of the proposed transaction and repayment of the existing debt. The ratings affirmations and stable outlook reflects SRAM's strong market position within the niche premium bicycle component segment. The company's good EBITDA margin remains near 20% despite demand headwinds impacting the bicycles market, supported by product quality and innovation. The healthy EBITDA margin supports good free cash flow generation and very good liquidity, and helps the company manage the ongoing industry headwinds. The bicycle components industry is experiencing a meaningful slowdown following the very strong consumer demand for bikes and related products during the coronavirus pandemic. As a result, SRAM's operating performance has declined substantially since 2022, with both revenue and EBITDA reverting to pre-pandemic levels. However, the company's year-over-year revenue growth was strong during the 2H-2024, albeit relative to significantly weak results in the prior year. Normalizing channel inventory and robust aftermarket sales drove the strong sales growth during the 2H-2024. Still, revenue for the full 2024 year was lower by about 10%. Moody's estimate SRAM's debt/EBITDA leverage increased but remains moderate at around 3.5x at the end of 2024 and pro forma for the refinancing, up from 2.8x at the end of 2023. SRAM's disciplined financial policy using free cash flow to reduce debt since 2021, helped to maintain moderate leverage despite the earnings decline. There remains uncertainty around the depth and duration of the ongoing slowdown in the bicycle components market. However, SRAM's moderate leverage and its very good liquidity supported by Moody's expectations of continued good operating cash flow generation provides financial flexibility to manage the current challenging operating environment. The B1 rating on the proposed first lien credit facility reflects that the first lien facility represents the preponderance of the company's debt capital structure. RATINGS RATIONALE SRAM'S B1 CFR reflects its narrow product focus in bicycle component parts and susceptibility to discretionary consumer spending. The bicycle components industry is facing ongoing demand headwinds driven by channel de-stocking and a normalization of consumer demand. Demand for bikes and related components was abnormally high during the pandemic and is deflating. As a result, the company has reported meaningful revenue and EBITDA declines over the past two years. Moody's project SRAM's debt/EBITDA leverage will remain moderate in the 3.5x to 3.75x range over the next 12-18 months. However, there is uncertainty around the depth and duration of the current slowdown in the bicycle components industry. The company's operating performance and potential credit metrics volatility, modest scale with product concentration, and history of aggressive financial strategies with acquisitions and large debt funded dividends preclude a higher rating at this time. SRAM benefits from its strong market position within the niche premium bicycle component segment supported by its solid product portfolio and strong brand recognition among bike enthusiasts and dealers. SRAM is also well positioned to benefit from increasing trends in bicycling related to improving health and wellness, which trends were bolstered by consumer behavior during the global pandemic. SRAM also has good geographic diversification with about half of its revenue generated in Europe and the other half in the US. The company's healthy EBITDA margin supports positive free cash flow generation and its very good liquidity is also supported by a healthy cash balance of $219 million and access to an undrawn $100 million revolver facility as of 3Q-2024. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The stable outlook reflects SRAM's very good liquidity supported by its healthy cash balance and its currently moderate leverage and good EBITDA margin provides the company cushion to absorb ongoing demand normalization. The stable outlook also reflects Moody's expectation that the company will remain narrowly concentrated in the bicycle equipment industry and remain exposed to potential volatility in sales and earnings. The ratings could be upgraded if the company demonstrates a consistent track record of organic revenue growth while maintaining a stable healthy EBITDA margin. A ratings upgrade would also require the company to sustainably increase its revenue scale and improve its product diversification such that it helps to mitigate exposure to cyclical consumer discretionary spending. Debt/EBITDA would also need to be sustained below 4.0x along with Moody's expectation of conservative financial policies that support credit metrics sustained at these levels. The ratings could be downgraded if the company's revenue and EBITDA do not stabilize, liquidity deteriorates, or free cash flow is not comfortably positive on an annual basis. The ratings could also be downgraded if the company adopts a more aggressive financial policy with respect to debt-financed acquisitions or dividends, or if debt/EBITDA is above 5.0x. Headquartered in Chicago, Illinois, SRAM, LLC is a global designer and manufacturer of premium bicycle components, including drivetrain systems, suspensions, wheelsets, pedals, power meters, as well as performance cycling apparel goods. SRAM, LLC, is a direct operating subsidiary of SRAM Holdings, LLC (collectively SRAM). The company is family owned and Moody's estimate revenue in fiscal 2024 of around $1.0 billion. The principal methodology used in these ratings was Consumer Durables published in September 2021. STEWARD HEALTH: Taps King & Spalding as Special Litigation Counsel ------------------------------------------------------------------ Steward Health Care System LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to hire King & Spalding LLP as special litigation counsel. The firm's services include: a. assisting the Debtors with their evaluation of accounts receivable from various healthcare payers and informal efforts to resolve these balances; b. evaluating, initiating, and pursuing affirmative claims on behalf of Debtors to collect accounts receivable from various healthcare payers, including via arbitration and/or litigation; and c. providing such other advice as may be necessary relating to the abovementioned services. The firm's current hourly rates are: Partners $1,150 to $2,440 Counsel $720 to $2,200 Associates $515 to $1,475 Paraprofessionals $205 to $810 The majority of the work for matters related to the Special Litigation Counsel Matters will be completed by members of the healthcare team who have rates ranging from $820 for associates to $1580 for senior partners. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The following is provided in response to the request for additional information set forth in Paragraph D.1. of the Revised UST Guidelines: a. Question: Did K&S agree to any variations from, or alternatives to, K&S's standard billing arrangements for this engagement? Answer: No. K&S and the Debtors have not agreed to any variations from, or alternatives to, K&S's standard billing arrangements for this engagement. The rate structure provided by K&S is appropriate and is not significantly different from (a) the rates that K&S charges for other non-bankruptcy representations or (b) the rates of other comparably skilled professionals. b. Question: Do any of the K&S professionals in this engagement vary their rate based on the geographic location of the Debtors' chapter 11 cases? Answer: No. The hourly rates used by K&S in representing the Debtors are consistent with the rates that K&S charges other comparable clients. c. Question: If K&S has represented the Debtors in the 12 months prepetition, disclose K&S's billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If K&S's billing rates and material financial terms have changed post-petition, explain the difference and the reasons for the difference. Answer: K&S did not represent the Debtors in the 12 months prepetition. K&S's currently hourly rates for services rendered on behalf of the Debtors range as follows: Partners $1,150 to $2,440 Counsel $720 to $2,200 Associates $515 to $1,475 Paraprofessional $205 to $810 K&S rates change on a customary annual basis. Aside from annual adjustments, the above rates do not reflect a change from prior rates. d. Question: Have the Debtors approved K&S's budget and staffing plan, and, if so, for what budget period? Answer: K&S, in conjunction with the Debtors and Weil as restructuring counsel to the Debtors, have discussed these matters, a staffing plan, and budget. The majority of the work for matters related to the Special Litigation Counsel Matters will be completed by members of the healthcare team who have rates ranging from $820 for associates to $1580 for senior partners. James Boswell III, Esq., a partner at King & Spalding LLP, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: James W. Boswell III, Esq. King & Spalding LLP 1180 Peachtree Street, NE, Suite 1600 Atlanta, GA 30309-3521 Tel: (404) 572-3534 Email: jboswell@kslaw.com About Steward Health Care Steward Health Care System LLC owns and operates the largest private physician-owned for-profit healthcare network in the U.S. Headquartered in Dallas, Texas, Steward's operations include 31 hospitals in eight states, approximately 400 facility locations, 4,500 primary and specialty care physicians, 3,600 staffed beds, and nearly 30,000 employees. Steward Health Care provides care to more than two million patients annually. Steward and 166 affiliated debtors filed a Chapter 11 petitions (Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024, in the U.S. Bankruptcy Court for the Southern District of Texas, and the Honorable Christopher M. Lopez oversees the proceeding. Weil, Gotshal & Manges LLP is serving as the Company's legal counsel. AlixPartners, LLP is providing financial advisory services to the Company, and John Castellano of AlixPartners is serving as the Company's Chief Restructuring Officer. Lazard Freres & Co. LLC, Leerink Partners LLC, and Cain Brothers, a division of KeyBanc Capital Markets Inc. are providing investment banking services to the Company. McDermott Will & Emery is special corporate and regulatory counsel for the company. Kroll is the claims agent. The U.S. Trustee for Region 7 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee is represented by Akin Gump Strauss Hauer & Feld, LLP. STRAWBERRY HILL: Seeks to Hire CBIZ Inc as Accountant ----------------------------------------------------- Strawberry Hill Povitica, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Kansas to hire CBIZ, Inc. as accountant. The firm will prepare its federal and state corporate income tax returns, prepare and compile financial statements, and provide accounting, bookkeeping, and consulting services as requested. The firm will be paid at these rates: Associate/Staff $150 per hour Senior Associate $175 per hour Manager/Senior Manager $225 per hour Director $350 per hour Adam Sipe, a director at CBIZ, Inc., assured the court that the firm and its members are disinterested parties as defined in 11 U.S.C. Sec. 101(14). The firm can be reached through: Adam Sipe CBIZ, Inc. 4722 N. 24th Street, Suite 300 Phoenix, AZ 85016 Tel: (816) 945-5523 Email: adam.sipe@cbiz.com About Strawberry Hill Povitica Strawberry Hill Povitica, Inc. is engaged in the retail sale of bakery products in Merriam, Kansas. Strawberry Hill Povitica filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Kan. Case No. 24-20923) on July 2, 2024, listing $519,520 in assets and $2,847,467 in liabilities. Dennis K. O'Leary, president, signed the petition. Judge Dale L Somers presides over the case. Colin Gotham, Esq., at Evans & Mullinix, P.A. represents the Debtor as legal counsel. SWC INDUSTRIES: OpCo Unsecureds Will Get 20% of Claims in Plan -------------------------------------------------------------- SWC Industries LLC and its affiliated debtors filed with the U.S. Bankruptcy Court for the Northern District of California a Disclosure Statement for the Joint Chapter 11 Plan dated February 5, 2025. The Company operates its manufacturing and technology businesses through four distinct segments: (i) White Systems; (ii) CeraTek; (iii) Accu-Seal; and (iv) Ascent. Each segment is a leader in its respective field, offering innovative products and solutions to a diverse customer base. The Company is the only U.S.-based supplier of automated material handling and packaging solutions that offers comprehensive in house support services for its equipment. White Systems' product offerings can be scaled to match industry needs, from the multi-ton capacities needed in defense or aerospace to the highly compact systems appropriate for jewelers and hospital pharmacies. The Plan is based on a sale of the Operating Debtors pursuant to one or more Plan Sponsor Transactions, following a robust and competitive process conducted in accordance with the Bidding Procedures Order. The Plan Sponsor Transaction(s) may be one or more sales of assets, or they may be one or more sales of equity in the Reorganized Debtors, with the assets of the Operating Debtor Estates vesting in the Reorganized Debtors in accordance with the terms of the Purchase Agreement. Recoveries of creditors of the Operating Debtors will be satisfied primarily from the cash proceeds of the Plan Sponsor Transaction(s), the assumption of executory contracts by the Reorganized Debtor, the assumption of other liabilities, and the liquidation of those assets excluded from the sale transactions. While it is possible, the Plan Sponsor Transaction(s) may not produce sufficient cash proceeds to satisfy claims against the Operating Debtors in full so as to allow for a distribution of cash up to the Legacy Debtors for the benefit of is creditors. The creditors of the Legacy Debtors will recover from the assets that will be transferred to the Creditor Trusts. The Bidding Procedures, as approved by the Bankruptcy Court, provide a framework for the continuation of the competitive sale process the Debtors commenced prior to the petition date. If one or more qualified bids are received by the bid deadline specified in the Bidding Procedures, the Debtors will conduct an auction for the sale of the business of the Operating Debtors pursuant to the Plan, whether as an asset sale, a sale of equity in certain of the Reorganized Debtors, or both. Pursuant to the Plan and Confirmation Order, the implementation of the Plan Sponsor Transaction(s) will involve the Acquired Assets, including potentially equity in the Reorganized Debtors, being transferred to, and vesting in or in favor of, the Plan Sponsor(s) or their designees according to the terms of the Purchase Agreement(s), and the Plan Sponsor(s) delivering to the applicable Debtors the consideration due at closing under the Purchase Agreement(s) and otherwise performing thereunder. The identity of the Plan Sponsor, and the management of the Reorganized Debtors, will be disclosed in public filings on the docket in advance of the Confirmation Hearing. Class A-4 consists of any OpCo GUCs. A pro rata share of the OpCo GUC Pool, which will be funded by the Plan Sponsor Payment and from certain assets excluded from the Plan Sponsor Transaction, after various senior claims and plan costs have been funded. This Class will receive a distribution of 20% of their allowed claims. Class A-4 is Impaired under the Plan. On the Effective Date, at the election of the Plan Sponsor in its sole discretion, each OpCo Interest either will be: (i) cancelled, discharged and released, and each Holder of such OpCo Interest shall not receive or retain any distribution, property, or other value on account of its OpCo Interest; or (ii) to the extent an Acquired Asset, Reinstated; notwithstanding the foregoing, to the extent the Plan Sponsor Payment is sufficient to pay all Allowed Claims against any OpCo Debtor in full, any excess proceeds (the "Excess Sale Proceeds") shall be paid to its immediate parent on account of its Interests in such OpCo Debtor. Class B-5 consists of any Legacy GUCs. Receipt of pro rata share of Legacy GUC Pool from the Liquidating Trust, which will be funded with the unencumbered assets of such Legacy Debtor remaining after administrative and other senior claims have been paid in full, and the Plan Costs have been funded in full, up to the total amount of Legacy GUCs; however, the Legacy GUC Pool will not include any Asbestos Insurance Proceeds. This Class will receive a distribution of 0% to 10% of their allowed claims. Class B-5 is Impaired under the Plan. The Plan provides for the sale of substantially the Debtors' operating business, either by way of an asset sale or sale of equity in the reorganized Debtors, depending on the nature of the successful bid following the bid deadline and auction (if any). The Plan Sponsor will be required for cure payments and the payment of the OpCo Trade Claims in accordance with the Plan, but it will own the SencorpWhite business following the deleveraging of the OpCo Debtors, and thus is expected to have more than sufficient revenue to fund such costs. Moreover, the Retained Assets and Asbestos Insurance Proceeds are respectively sufficient for the Creditor Trusts to administer the Plan for the trusts' beneficiaries. Subject to the satisfaction of the conditions to the Effective Date, the Debtors do not anticipate having any issues satisfying their obligations under the Plan. The Plan provides for the creation of the Liquidating Trust and the Asbestos Trust on the Effective Date. The Liquidating Trust will exist to liquidate the Retained Assets, administer the Plan and Claims resolution process, and make distributions to Holders of Allowed Claims. The Asbestos Trust will exist to liquidate the Asbestos Insurance Proceeds and make distributions to Holders of Legacy Asbestos Claims. A full-text copy of the Disclosure Statement dated February 5, 2025 is available at https://urlcurt.com/u?l=lLnUx6 from PacerMonitor.com at no charge. Counsel to the Debtors: C. Luckey McDowell, Esq. Ian E. Roberts, Esq. ALLEN OVERY SHEARMAN STERLING US LLP 2601 Olive Street, 17th Floor Dallas, TX 75201 Phone: (214) 271-5777 Email: luckey.mcdowell@aoshearman.com ian.roberts@aoshearman.com Robert G. Harris, Esq. Reno Fernandez, Esq. Binder Malter Harris & Rome-Banks LLP 2775 Park Avenue Santa Clara, CA 95050 Telephone: (408) 295-1700 Email: rob@bindermalter.com About SWC Industries LLC With principal operations in California and Massachusetts, SWC Industries LLC manufactures a range of innovative sealing and logistics equipment -- and offers related services -- that create efficiencies and reduce costs across multiple industries. In addition, the Company's San Diego-based business designs and develops a full suite of software designed to improve warehouse operations. SWC Industries LLC and 12 affiliates sought Chapter 11 protection (Bankr. N.D. Cal. Lead Case No. 24-51721) on Nov. 13, 2024. SWC listed assets and debt of $50 million to $100 million as of the bankruptcy filing. The Debtors tapped Allen Overy Shearman Sterling US LLP as lead restructuring counsel; Binder Malter Harris & Rome-Banks LLP as restructuring co-counsel and local counsel; Getzler Henrich & Associates LLC as financial advisor; and Gordian Group, LLC, as investment banker. Stretto, Inc., is the claims agent. TAMPA BRASS: U.S. Trustee Appoints Creditors' Committee ------------------------------------------------------- The U.S. Trustee for Region 21 appointed an official committee to represent unsecured creditors in the Chapter 11 case of Tampa Brass and Aluminum Corporation. The committee members are: 1. Duane Schifano 5800 Scenic Bay Ct. Arlington, TX 76013 dschifano@sbcglobal.net 2. Surface Engineering & Alloy Co. c/o Curt Kadau 2895 46th Ave. North Saint Petersburg, FL 33714 curtk@surfaceengineering.com 3. Federal Metal Company c/o Robert Wittenberg 7250 Division Street Bedford, OH 44146 rwittenberg@federalmetal.com 4. I. Schumann & Company c/o Don Robertson 22500 Alexander Rd. Beford, OH 44146 drobertson@ischumann.com 5. Sun Glow Machining and Metal Finishing c/o Aaron Kukla 14493 62nd St. North Clearwater, FL 33760 akukla@sun-glo.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About Tampa Brass and Aluminum Corporation Tampa Brass and Aluminum Corporation -- https://tampabrass.com/about/ -- is a supplier of cast machined parts for the commercial and defense industries. The company is based in Tampa, Fla. Tampa Brass and Aluminum filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 25-00105) on January 9, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and between $10 million and $50 million in liabilities. Judge Roberta A. Colton oversees the case. Scott A. Stichter, Esq., at Stichter, Riedel, Blain & Postler, P.A. represents the Debtor as legal counsel. TJC SPARTECH: $345MM Bank Debt Trades at 30% Discount ----------------------------------------------------- Participations in a syndicated loan under which TJC Spartech Acquisition Corp is a borrower were trading in the secondary market around 70.4 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $345 million Term loan facility is scheduled to mature on May 8, 2028. The amount is fully drawn and outstanding. Headquartered in Maryland Heights, MO, Spartech converts base polymers or resins into extruded plastic sheet, rollstock, thermoformed packaging, specialty film laminates, and cast acrylic. Revenue for the last 12 months ended September 30, 2023 was $416 million. Spartech was carved out of chemical producer, Polyone, and is a portfolio company of The Jordan Company, L.P. TRINITY LEGACY: Court Extends Cash Collateral Access to May 31 -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Mexico issued an order authorizing Trinity Legacy Consortium, LLC to continue using cash collateral for the period from Feb. 1 to May 31. Trinity was authorized to use cash collateral to pay the expenses set forth in its budget, with a 10% variance. The company projects total expenses of $211,500 for February and $211,500 for March. As protection for the use of their cash collateral, the U.S. Small Business Administration and Forward Financing were granted replacement liens on post-petition assets, to the same extent and with the same priority as their pre-bankruptcy liens. In addition, Trinity was ordered to make monthly payments of $750 to the SBA and $2,000 to Forward Financing, LLC. About Trinity Legacy Consortium Trinity Legacy Consortium, LLC operates a construction and home building business with locations in Farmington, New Mexico, and Wallowa, Oregon. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.M. Case No. 22-10973) on December 7, 2022. In the petition signed by Jan Swift and Jacob Swift, managing members, the Debtor disclosed up to $500,000 in assets and up to $1 million in liabilities. Judge Robert H. Jacobvitz oversees the case. The Debtor is represented by: Don F. Harris, Esq. New Mexico Financial Law Tel: 505-503-1637 Email:nmfl@nmfinanciallaw.com -- and -- Dennis A. Banning, Esq. New Mexico Financial Law Tel: 505-503-1637 Email: nmfl@nmfinanciallaw.com TRUE NORTH CANNABIS: Inability to Pay Debt Prompts CCAA Filing -------------------------------------------------------------- The Vancor Group Inc. ("Vancor") made an application under the Companies' Creditors Arrangement Act, as amended ("CCAA") declaring that 2744364 Ontario Limited (o/a True North Cannabis Co.) ("TNCC"), 2668905 Ontario Limited (o/a Bamboo Blaze) ("Bamboo Blaze"), and 2767888 Ontario Inc. ("888") (together, "Debtors") are debtor companies to which the CCAA applies. The Ontario Superior Court of Justice ("Court") granted an Initial Order, which, among other things: (i) granted a stay of proceedings up to and including Feb. 3, 2025 ("Initial Stay Period"); and (ii) appointed Deloitte Restructuring Inc. ("Deloitte") as Court-appointed monitor of the business and financial affairs of the Debtors (in such capacity, the “Monitor"). During the Stay Period, all parties are prohibited from commencing or continuing legal or enforcement actions against the Debtors and all rights and remedies of any party against or in respect of the Debtors or their assets are stayed and suspended except with the written consent of the Debtors and the Monitor, or leave of the Court. According to Court Documents, Vancor is by far the largest creditor of the proposed Debtors, having provided debt financing in excess of $23 million in principal over four years on an unsecured basis. Vancor's involvement with the Debtors began in late 2020, when Vancor began advancing funds to support the development and expansion of the Debtors' business. Monies invested by Vancor have been used to, among other things, a) meet the Debtors' ordinary course operating obligations, such as employee salaries and inventory purchases; and b) purchase equipment and support all manners of capital expenditures critical to the development of the Debtors' business. A proceeding under the CCAA is necessary and urgently required for three main reasons: (a) the Debtors are facing the maturity of significant secured debt on May 1, 2025, which obligations they cannot currently refinance and are unable to repay; (b) Vancor's debt is currently due and payable with no available means of repayment, despite Vancor's accommodations, including the provision of an opportunity to secure financing through an out-ofcourt process; and (c) projected cash flows demonstrate that the Debtors cannot meet early ordinary course commitments such as significant payroll obligations. A court-supervised restructuring process, with the oversight and guidance of an independent Monitor and Shawn Dym, as Chief Restructuring Officer, provides the highest probability of achieving a going-concern and value-maximizing investment or sale transaction for the benefit of all stakeholders, including (a) the repayment or refinancing of monies owed to creditors; and (b) the preservation of jobs for the Debtors' 285 employees, services to the Debtors’ customers, and supply relationships with the Debtors' vendors. A proceeding under the CCAA is not only strategically essential, but immediately required. The secured loans imminently coming due are collateralized by mortgages over 27 of the Debtors' 41 real properties, which are integral to the long-term viability of the Debtors' business, meaning their loss would severely disrupt operational continuity and value generation. If you have any questions regarding this matter, please contact Deloitte Restructuring Inc. at the following address: Deloitte Restructuring Inc. Attn: In its capacity as Court-Appointed Monitor of True North Cannabis Co., Bamboo Blaze, and 888 8 Adelaide Street West, Suite 200 Toronto, ON M5H 0A9 Persons requiring further information not available on this website should email the Monitor at truenorthcc@deloitte.ca or call the Monitor's hotline at 416-643-3382 (Toll-Free 1-855-643-3382). Copies of the Initial Order and the materials related to the Court application have been posted on the Monitor's website at: http://www.insolvencies.deloitte.ca/tncc. Monitor Deloitte Restructuring Inc. 8 Adelaide Street West Toronto, ON M5H 0A9 Todd Ambachtsheer Email: tambachtsheer@deloitte.ca Tel: 416.607.0781 Mohamed Mohamoud Email: mmohamoud@deloitte.ca Tel: 416.601.5738 Counsel to the Monitor: Blaney Mcmurtry LLP 2 Queen Street East, Suite 1500 Toronto, Ontario M5C 3G5 David T. Ullmann Email: dullmann@blaney.com 416.596.4289 Alexandra Teodorescu Email: ateodorescu@blaney.com 416.596.4279 Anisha Samat Email: asamat@blaney.com 416.593.3924 Counsel to Vancor Group: Miller Thomson LLP 40 King Street West, Suite 5800 Toronto, ON M5H 3S1 Larry Ellis Email: lellis@millerthomson.com Tel: 416.595.8639 David Ward Email: dward@millerthomson.com Tel: 416.595.8625 Patrick Corney Email: pcorney@millerthomson.com Tel: 416.595.8555 Counsel to the Debtors: Borden Ladner Gervais LLP Bay Adelaide Centre, East Tower, 22 Adelaide St W #3400 Toronto, ON M5H 4E3 Jasmine Lothian Email: JLothian@blg.com Tel: 416.367.6452 Kevin Lambie Email: KLambie@blg.com Tel: 416.367.7290 Chief Restructuring Office can be reached at Shawn Dym, sdym@yorkplains.com. True North Cannabis Co. -- https://www.tncc.ca/ -- is a cannabis retailer. UGI INT'L: $221MM Intercompany Loan No Impact on Moody's 'Ba2' CFR ------------------------------------------------------------------ Moody's Ratings has stated that the $221 million intercompany loan from UGI International, LLC (UGI International) to AmeriGas Partners, L.P. (AmeriGas, B1 negative) is credit negative for UGI International. However, this loan does not currently affect UGI International's ratings, including its Ba2 Corporate Family Rating and Ba2 senior unsecured notes rating, nor its stable outlook. The 9.13% unsecured subordinated loan has a two-year term. UGI International funded this loan by borrowing on its revolver. Due to the incremental borrowings on the revolver, UGI International's leverage increases from the low 2x range to the high 2x range on a pro forma basis, as of December 31, 2024. Moody's expect UGI International to repay the additional revolver borrowings as AmeriGas repays the intercompany loan with free cash flow. Maintaining leverage below 3x is a key support to UGI International's rating, making the repayment of incremental revolver borrowings important to mitigating negative pressures on the credit profile from higher leverage. A key aspect of UGI International's credit profile is the management of cash distributions to UGI Corporation (unrated), the parent company of both UGI International and AmeriGas, in a way that does not further increase debt. UGI Corporation, a holding company, relies on distributions from its various subsidiaries to fund its own dividends and debt service requirements. UGI International's incremental interest expense incurred from revolver borrowings will be more than offset by the interest received from AmeriGas on the 9.13% intercompany loan. However, the intercompany loan adds direct exposure to AmeriGas' weaker credit quality, and the operational issues that underly AmeriGas' negative rating outlook. UGI Corporation directly utilizing UGI International's balance sheet to support AmeriGas crystalizes concerns regarding the stand-alone nature of the rated subsidiaries and the potential for further support being necessary should AmeriGas not be able to improve its operating performance. As of December 31, 2024, UGI International's Euro 500 million revolving credit facility due 2028 had Euro 110 million of borrowings outstanding. UGI International can borrow in either Euros or US Dollars under this facility. While UGI International had a sizable cash balance of $130 million as of December 31, 2024, a significant portion of this cash was held outside the US. UGI International's Ba2 CFR reflects its low leverage, high customer diversification, and strong market positions and brand recognition in various European countries. Maintaining profit margins amid advancing energy efficiency measures and conservation efforts will require a continued focus on cost management. UGI International's credit profile is constrained by its limited product offering, high geographic concentration, and the long-term decline in demand for LPG. Despite its concentration in France, UGI International has a diversified customer base across Europe. UGI International has exited nearly all of its non-core energy marketing business, significantly reducing the associated risks to its credit profile. The company experienced damage to one of the ports it uses for LPG supply in France. While the company expects insurance to cover repair costs, the repair process could take up to 18 months, leading to higher supply costs in the meantime. UGI International markets and distributes LPG throughout Europe. AmeriGas is a marketer and distributor of propane in the US. Both of these companies are wholly owned subsidiaries of UGI Corporation, a publicly traded holding company. ULTRA SAFE: Claims to be Paid From Asset Sale Proceeds ------------------------------------------------------ Ultra Safe Nuclear Corp. and its affiliates filed with the U.S. Bankruptcy Court for the District of Delaware a Disclosure Statement for the Joint Chapter 11 Plan of Liquidation dated February 5, 2025. Prior to the Sales, the Debtors were a global leader in developing cutting edge technology and equipment for reliable and safe zero carbon nuclear power energy used on Earth and in space. The Debtors were founded in 2011 by Dr. Francesco Venneri, the Debtors' former chief executive officer, to commercialize the technology for Fully Ceramic Micro-Encapsulated (FCM(R)) nuclear fuel ("FCM Fuel"). Since the Debtors' founding, the Debtors expanded their initiatives to include the development of the Micro Modular Reactor (MMR(R)) (the "MMR") and nuclear power propulsion technologies for defense applications and space exploration. Each of the Debtors filed for chapter 11 bankruptcy protection on October 29, 2024. The Debtors sold substantially all of their assets during the Chapter 11 Cases for an aggregate purchase price of approximately $41,000,000, through (i) the sale of certain assets to Standard Nuclear, as set forth in the Standard Nuclear Purchase Agreement and (ii) the sale of certain assets to Nano Nuclear, as set forth in the Nano Nuclear Purchase Agreement. The proceeds from the Sales (the "Sale Proceeds") were applied in full satisfaction of the outstanding obligations under the Prepetition First Lien Loan and Security Agreement and the DIP Credit Agreement, in the amount of $24,878,113.47. The next phase of the Chapter 11 Cases is the Confirmation and consummation of the Plan, pursuant to which the Debtors will liquidate and distribute their remaining assets, including the remaining Sale Proceeds, in accordance with the priority scheme set forth in the Bankruptcy Code. The Plan provides for, among other things: (a) the payment of Allowed Administrative Claims, Allowed Priority Tax Claims, Allowed Class 1 Secured Claims, and Allowed Class 2 Other Priority Claims in full, or otherwise renders such Claims Unimpaired, (b) the appointment of the Liquidating Trustee pursuant to the mechanics set forth in the Plan, and (c) the establishment of a Liquidating Trust to (i) administer claims and liquidate and distribute the Liquidating Trust Assets to the Holders of Allowed Class 4 General Unsecured Claims and, to the extent the Prepetition Note Claim is determined to be a General Unsecured Claim, the Holder of the Prepetition Note Claim, and (ii) wind down the Debtors. As set forth in the Plan, the Liquidating Trust Assets will vest in and be transferred to the Liquidating Trust on the Effective Date and include: (a) the Effective Date Cash Amount; and (b) all other assets of each of the Debtors, including, but not limited to, (i) all tangible and intangible assets, including the Insurance Policies, (ii) the Retained Causes of Action, and (iii) the Debtors' books and records, including all documents, communications, and information of the Debtors, including, without limitation, such documents, communications, and information protected by the attorney-client privilege, the work-product privilege, and any other applicable evidentiary privileges. The Holders of Allowed Class 4 General Unsecured Claims will be the beneficiaries of the Liquidating Trust and will receive their pro rata share of the Beneficial Trust Interests, which Beneficial Trust Interests will entitle the holders thereof to receive their pro rata share of the distributable proceeds from the Liquidation Trust Assets. In addition, to the extent the Court determines that the Class 3 Prepetition Note Claim is a General Unsecured Claim, such Holder will be treated like other Holders of General Unsecured Claims and receive its pro rata share of the Beneficial Trust Interests. The Committee disputes that the Prepetition Note represents valid debt claims against either Debtor USNC or Ultra Safe Nuclear Corporation – Technologies ("USNC-Tech") and asserts that the Class 3 Prepetition Note Claim should be recharacterized as equity. Moreover, the Committee asserts that the perfection of the liens securing the Prepetition Note was within the insider preference period and is therefore avoidable under section 547 of the Bankruptcy Code. Accordingly, for these and other reasons, the Committee intends to seek authority to file certain estate claims challenging the validity, enforceability, priority, and extent of the Class 3 Prepetition Note Claim and the purported liens and security interests securing such claims. Given the Committee's intent to dispute the Class 3 Prepetition Note Claim, the Plan provides for alternative treatments for the Prepetition Note Claim depending on the outcome of that dispute. If the Bankruptcy Court determines that the Class 3 Prepetition Note Claim is a Secured Claim, the Holder of such Claim will receive a cash payment up to the remaining proceeds from the sale of the Prepetition Collateral. However, if the Bankruptcy Court determines that the Class 3 Prepetition Note Claim is a General Unsecured Claim, the Holder of such Claim will receive its pro rata share of the Beneficial Trust Interests. Holders of Class 5 Intercompany Claims, Class 6 Subordinated Claims, and Class 7 Interests are not entitled to any recovery under the Plan. Class 4 consists of all General Unsecured Claims against the Debtors. On the Effective Date, or as soon as reasonably practicable thereafter, except to the extent that a Holder of an Allowed General Unsecured Claim and the Debtors or the Liquidating Trustee, as applicable, agree to less favorable treatment for such Holder, in full and final satisfaction of the Allowed General Unsecured Claim, each Holder thereof will receive its pro rata share of the Beneficial Trust Interests, which Beneficial Trust Interests shall entitle the holders thereof to receive their pro rata share of the distributable proceeds from the Liquidation Trust Assets. Class 4 is Impaired. Subject in all respects to the provisions of the Plan concerning the Professional Fee Reserve, and except as otherwise provided in the Plan, the Debtors or the Liquidating Trustee (as applicable) shall fund distributions under the Plan with Cash on hand on the Effective Date and all other Liquidating Trust Assets. A full-text copy of the Disclosure Statement dated February 5, 2025 is available at https://urlcurt.com/u?l=vTUXtv from Stretto Inc., claims agent. The Debtors' Counsel: Michael R. Nestor, Esq. Elizabeth S. Justison, Esq. Matthew B. Lunn, Esq. Elizabeth S. Justison, Esq. Shella Borovinskaya, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square 1000 North King Street Wilmington, Delaware 19801 Tel: (302) 571-6600 Fax: (302) 571-1253 Email: mnestor@ycst.com mlunn@ycst.com ejustison@ycst.com sborovinskaya@ycst.com About Ultra Safe Nuclear Corporation Ultra Safe Nuclear Corp. -- https://www.usnc.com/ -- is a privately-owned provider of nuclear fuel and reactor components. Ultra Safe Nuclear and its affiliates filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 24-12443) on Oct. 29, 2024, with $10 million to $50 million in assets and $50 million to $100 million in liabilities. Kurt A. Terrani, the interim chief executive officer, signed the petition. The Debtors are represented by Elizabeth Soper Justison, Esq., at Young Conaway Stargatt & Taylor, LLP. UNITED FIBER: Committee Taps Marshack Hays Wood as General Counsel ------------------------------------------------------------------ The official committee of unsecured creditors of United Fiber Comm. Inc., d/b/a United Fiber, seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ Marshack Hays Wood LLP as its general counsel. The firm's services include: (1) advising the Committee with respect to its rights, powers, duties and obligations as the official Committee of creditors holding unsecured claims of the Debtor’s bankruptcy case; (2) preparing pleadings, applications and conducting examinations incidental to administration of this case and to protect the interests of the unsecured creditors of this Estate; (3) advising and representing the Committee in its connection with all applications, motions or complaints filed during the course of the administration of this case; (4) developing the relationship of the Committee with the Debtor in this bankruptcy proceeding; (5) advising and assisting the Committee in presentation with respect to any plan of reorganization proposed by the Debtor, the Committee, or other entity; and (6) taking such other action and performing such other services as the Committee may require of the Firm in connection with this Chapter 11 case. The firm will be paid at these hourly rates: Partners $590 to $770 Senior Counsel $670 Of Counsel $570 to $670 Associates $400 to $570 Paralegals $350 to $380 In addition, the firm will seek reimbursement for expenses incurred. D. Edward Hays, a partner at Marshack Hays, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: D. Edward Hays, Esq. MARSHACK HAYS WOOD LLP 870 Roosevelt Irvine, CA 92620-3663 Tel: (949) 333-7777 Fax: (949) 333-7778 Email: ehays@marshackhays.com About United Fiber Comm. Inc. d/b/a United Fiber Established in 2013, United Fiber is a telecommunications contractor in California, with offices in Goleta, Corona, and Vista. The Company provides clients with a wide range of services: Construction, both aerial and underground, Fiber Optics and Coaxial splicing, troubleshooting, and 24/7 Emergency repairs. It also provides turn key Engineering services. It specializes in excavation and TCP both typical and custom, as well as Make Ready engineering. United Fiber Comm., Inc. in Corona, CA, sought relief under Chapter 11 of the Bankruptcy Code filed its voluntary petition for Chapter 11 protection (Bankr. C.D. Cal. Case No. 24-16470) on Oct. 29, 2024, listing $1,663,379 in assets and $8,172,909 in liabilities. Raymond Martinez as chief executive officer, signed the petition. Judge Scott H Yun oversees the case. GOE FORSYTHE & HODGES LLP serve as the Debtor's legal counsel. UNRIVALED BRANDS: Unsecureds to Get Share of GUC Distribution ------------------------------------------------------------- Unrivaled Brands, Inc., and Halladay Holding, LLC, filed with the U.S. Bankruptcy Court for the Central District of California a Disclosure Statement describing Joint Chapter 11 Plan dated February 4, 2025. Unrivaled is a holding company for the acquisition of multiple businesses acquired from 2018 through 2021. Unrivaled acquired common shares in a hydro-farming business in August 2018 for $5.0 million, and sold the shares in that company for $40.8 million in June 2021, providing Unrivaled with substantial funds for new acquisitions. The estates' primary asset is Halladay's real property located at 3242 S. Halladay Street, Santa Ana, California, 92705 (APN 411 151-04) (the "Property"). The Property is 0.94 acres of land and approximately 24,468 square feet of improvements located at 3242 S. Halladay Street, Santa Ana, California, 92705. On November 16, 2023, the Debtors and Gordineer LLC (the "Buyer") entered into a purchase agreement (the "Purchase Agreement") subject to multiple amendments for the purchase price of $5,303,320.00. The original term of the Purchase Agreement required the parties to close the sale by May 16, 2024. However, the parties agreed to cooperatively enter into five amendments extending the closing date because of problems with alleged disputed creditor Peoples. On November 8, 2024, the Debtors filed a motion (the "Sale Motion") to sell the Halladay Property free and clear of all claims, liens, and interests. On December 4, 2024, the Court held a hearing (the "Sale Hearing") on the Sale Motion, granting the Sale Motion and entering an order (the "Sale Order") on December 6, 2024. The legal challenges, characterized by persistent litigation even after settlements, consumed resources and obstructed Unrivaled's ability to move forward effectively. People's continued actions appear to be aimed at applying continued legal pressure, forcing further legal expense, and extracting additional financial gains, all of which contributed significantly to Unrivaled's decision to file for Chapter 11 bankruptcy. The inability to reach a conclusive resolution to these disputes created an untenable situation that left Unrivaled with no viable alternative but to seek court-supervised reorganization in Chapter 11. Despite the challenges posed by Peoples, Unrivaled successfully sold down its portfolio in an orderly fashion over more than two years, and, as of the Petition Date, Unrivaled's primary assets are: (A) its 100% membership interests in Halladay Holding, LLC (which owns the "Property"); (B) Approximately 9% shares in Mystic Holdings LLC ($MSTH on OTC); and (C) avoidance actions against Peoples. The Plan is a liquidation plan with a "pot plan" distribution to pay creditors shortly after the Effective Date and establish a liquidating trust (the "Liquidating Trust") with a liquidation trustee ("Liquidation Trustee") to monetize assets of the estates and distribute them to creditors. Class 6 consists of All allowed general unsecured claims of Halladay not included in any other class. Estimated amount of asserted Class 6 claims is $0. Class 6 claim holders will be paid in full on the Plan Effective Date with applicable interest. This Class is unimpaired. Class 7 consists of All allowed general unsecured claims of Unrivaled not included in any other class. Estimated amount of asserted Class 7 claims is $43 million (subject to objection). In full and final satisfaction of each, any, and all of their claims against the Debtors, on the Plan Effective Date, each holder of an allowed Claim in Class 7 will receive its pro rata share of the "GUC Distribution," to be distributed by the Liquidating Trustee. This Class is impaired. The Class 8 equity interests will be cancelled, and all distributions that Class 8 would otherwise receive will upstream to the Liquidating Trust under the Plan. The Plan will be funded with the sale proceeds of the proposed sale of the Halladay Property and the assets to be transferred to the Liquidation Trust. A full-text copy of the Disclosure Statement dated February 4, 2025 is available at https://urlcurt.com/u?l=kBWn9A from PacerMonitor.com at no charge. The Debtors' Counsel: John Patrick M. Fritz, Esq. Robert M. Carrasco, Esq. LEVENE, NEALE, BENDER, YOO & GOLUBCHIK L.L.P. 2818 La Cienega Ave. Los Angeles, CA 90034 Tel: (310) 229-1234 Email: jpf@lnbyg.com About Unrivaled Brands Business Description: Unrivaled owns 100% membership interests in Halladay, and Halladay is Unrivaled's wholly owned subsidiary. Halladay's primary asset is a commercial real property building. Unrivaled Brands, Inc. in Downey, CA, sought relief under Chapter 11 of the Bankruptcy Code filed its voluntary petition for Chapter 11 protection (Bankr. C.D. Cal. Lead Case No. 24-19127) on Nov. 6, 2024, listing $10 million to $50 million in assets and $1 million to $10 million in liabilities. Sabas Carrillo as chief executive officer, signed the petition. LEVENE, NEALE, BENDER, YOO & GOLUBCHIK L.L.P. serves as the Debtor's legal counsel. UROGEN PHARMA: Morgan Stanley Cuts Equity Stake Below 5% -------------------------------------------------------- Morgan Stanley disclosed in a Schedule 13G/A filed with the U.S. Securities and Exchange Commission that as of December 31, 2024, he beneficially owned 752,861 shares of UroGen Pharma Ltd.'s ordinary shares, representing 1.8% of the shares outstanding. As of December 31, Mr. Stanley ceased to be the beneficial owner of more than five percent of the class of securities. Mr. Stanley may be reached at: Morgan Stanley 1585 Broadway New York NY 10036 Tel: 212-761-4000 A full-text copy of Mr. Stanley's SEC Report is available at: https://tinyurl.com/bdhu3u3k About UroGen Pharma Ltd. Headquartered in Princeton, N.J., UroGen Pharma Ltd. -- http://www.urogen.com-- is a biotechnology company dedicated to developing and commercializing innovative solutions that treat urothelial and specialty cancers. The Company has developed RTGel reverse-thermal hydrogel, a proprietary sustained release, hydrogel-based technology that has the potential to improve therapeutic profiles of existing drugs. The Company's technology is designed to enable longer exposure of the urinary tract tissue to medications, making local therapy a potentially more effective treatment option. Florham Park, N.J.-based PricewaterhouseCoopers LLP, the Company's auditor since 2020, issued a "going concern" qualification in its report dated March 14, 2024, citing that the Company has incurred losses and experienced negative operating cash flows since its inception that raise substantial doubt about its ability to continue as a going concern. As of September 30, 2024, UroGen Pharma had $301.9 million in total assets, $276.4 million in total liabilities, and $25.5 million in total stockholders' equity. US HOUSING: Glen Watson Named Subchapter V Trustee -------------------------------------------------- The Acting U.S. Trustee for Region 8 appointed Glen Watson, Esq., at Watson Law Group, PLLC as Subchapter V trustee for US Housing, LLC. Mr. Watson will be paid an hourly fee of $425 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Watson declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Glen Watson, Esq., Watson Law Group, PLLC 1114 17th Av. S., Suite 201 P.O. Box 121950 Nashville, TN 37212 Telephone: (615) 823-4680 Email: glen@watsonpllc.com About US Housing US Housing, LLC owns the property located at 4013 Lynnwood Court, Franklin, Tenn., with an estimated value of $2.6 million. US Housing filed Chapter 11 petition (Bankr. M.D. Tenn. Case No. 25-00491) on February 5, 2025, listing $2,600,835 in assets and $1,877,432 in liabilities. Rodney Rose, member, signed the petition. Keith D. Slocum, Esq., at Slocum Law represents the Debtor as bankruptcy counsel. VALLEY PARK: Seeks to Hire Lynch Law Firm as Bankruptcy Counsel --------------------------------------------------------------- Valley Park Elevator, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Mississippi to hire The Lynch Law Firm, PLLC to handle the bankruptcy proceedings. The firm will be paid at these hourly rates: David Lynch, Esq. $375 Paralegals $155 Legal Assistants $100 Mr. Lynch disclosed in a court filing that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: David Lynch, Esq. The Lynch Law Firm, PLLC Post Office Box 12229 Jackson, MS 39236 Tel: (601) 321-1977 Email: david@thelynchlawfirm.com About Valley Park Elevator Inc. Valley Park Elevator, Inc., a company in Valley Park, Miss., filed Chapter 11 petition (Bankr. S.D. Miss. Case No. 25-00228) on January 29, 2025, listing between $10 million and $50 million in assets and between $1 million and $10 million in liabilities. David Johnson, president of Valley Park Elevator, signed the petition. Judge Jamie A. Wilson oversees the case. Thomas C. Rollins, Jr., Esq., at The Rollins Law Firm, PLLC, represents the Debtor as bankruptcy counsel. United Bank, as lender, is represented by Jeffrey R. Barber, Esq. at Jones Walker, LLP. VALLEY PARK: Seeks to Hire Rollins Law Firm as Bankruptcy Counsel ----------------------------------------------------------------- Valley Park Elevator, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Mississippi to hire The Rollins Law Firm, PLLC to handle the bankruptcy proceedings. The hourly rates of the firm's counsel and staff are: Thomas Carl Rollins, Jr. $375 Paralegal $155 Legal Assistants $100 Thomas Carl Rollins, Jr., Esq., an attorney at The Rollins Law Firm, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Thomas Carl Rollins, Jr., Esq. The Rollins Law Firm, PLLC P.O. Box 13767 Jackson, MS 39236 Telephone: (601) 500-5533 Email: tc@therollinsfirm.com About Valley Park Elevator Inc. Valley Park Elevator, Inc., a company in Valley Park, Miss., filed Chapter 11 petition (Bankr. S.D. Miss. Case No. 25-00228) on January 29, 2025, listing between $10 million and $50 million in assets and between $1 million and $10 million in liabilities. David Johnson, president of Valley Park Elevator, signed the petition. Judge Jamie A. Wilson oversees the case. Thomas C. Rollins, Jr., Esq., at The Rollins Law Firm, PLLC, represents the Debtor as bankruptcy counsel. United Bank, as lender, is represented by Jeffrey R. Barber, Esq. at Jones Walker, LLP. WEST CENTRO: Amends Bank of America Secured Claim Pay ----------------------------------------------------- West Centro, LLC submitted a First Amended Disclosure Statement for Plan of Reorganization dated February 6, 2025. The Debtor was founded in 2013. Its primary asset is a retail center and related redevelopment of an outdated and poorly designed 1970's shopping center with municipal addresses of 2100 Franklin Avenue, Gretna, Louisiana (hereinafter, referred to as the "Property"). The Property is located on two parcels of property and was purchased by the Debtor in July 2013 for approximately $1,200,000.00. The value of the Property is primarily derived from cashflow and cap rate. Using a conservative cap rate of 8.5% in its 2022 appraisal, BOA valued the Property in excess of $3,200,000.00. That value as well as the Debtor's successful operation over many years is what led to BOA financing the Property and later renewing the loan in 2022. Prior to BOA seizing rent in early 2024, the Debtor was in the midst of redeveloping and recapturing a boiler room/storage space that was un rentable and had no windows or access. The Debtor was forced to pause white boxing the suite, which is now known as Suite 170. With "white boxing" of that suite now completed, the suite has 1900 square feet with approximately 80 feet of glass with direct street view. This addition will add much needed rentable retail space, considerable value, and upside to the Debtor's viability and financial success. Other work to refresh the property is ongoing and is expected to be completed within 90 days. The Debtor intends to hire Nola Construction, LLC to perform all work requiring a licensed contractor. Roof repairs will be performed by Conforto Roofing, and Liquid Thinking, LLC will provide sheetrock, paint, and general carpentry services. Furthermore, the Debtor restructured its lease agreement to have all pass-through triple net ("NNN") fees, which protect creditors and ownership, for variable expenses outside their control pass directly through to tenant operators. The Plan contemplates payments to all holders of Allowed Claims against the Debtor based upon the cash flow created through the business operations of the Debtor or, alternatively, liquidation of the Debtor's assets. The holders of Equity Interests will not receive any distribution until all other Allowed Claims have been paid in accordance with the Plan. Class 2 consists of Bank of America, NA Secured Claim. The total estimate of the Allowed Class 2 Claim is $2,375,000.00. The Secured Claim of Bank of America, N.A. is allowed in the approximate amount of $2,375,000.00. The Class 2 Claim shall be amortized over thirty years at the contractual rate of SOFR plus 2.95%. For the purposes of projections attached to the Disclosure Statement, SOFR is 4.29%. Quarterly interest-only payments of $46,123.36 will be paid for the first year. Payments will commence on the last day of the third month after the Distribution Date and continuing through the 12th month after the Distribution Date. Commencing the last day of the 13th month after the Distribution Date, the Debtor will make monthly payments of principal and interest in the amount of $17,048.00, with payments continuing for the next forty-eight months. A balloon payment for the remaining balance of the Class 1 Claim shall be paid on the last day of the 61st month after the Distribution Date. The Class 2 claim is secured by a mortgage on the Debtor's real property. BOA shall retain its lien on the Debtor's property until paid in full. Like in the prior iteration of the Plan, each holder of an Allowed General Unsecured Claim in Class 5 shall receive quarterly cash payments equal to its pro rata share of $195,000.00, to be paid over a period of eighty-four months. Payments shall commence on the first day of the fifteenth month after the Distribution Date. Class 5 will also receive fifty percent of the Litigation Funds. Any distributions of Litigation Funds will not be applied towards the quarterly payment amounts. The total estimate of the Class 5 Claims is $1,300,000.00. This Class will receive a distribution of 15% of their allowed claims. The Debtor is expected to receive from the Lender a $200,000.00 loan as exit funding subject to approval by the court pursuant to Sections 105 and 364 of the Bankruptcy Code (the "Exit Financing") in connection with Confirmation of the Plan. The Lender is an unaffiliated third party not related to the Debtor or any of its members. The Exit Financing, subject to execution of Loan Documents, shall be used to guarantee payments to BOA for the first 12 months following the Distribution Date and fund additional working capital. If the Debtor is unable to meet its payment obligations to BOA at the beginning of the fifteenth month after the Distribution Date, the collateral securing the BOA claim shall be liquidated by engaging brokers to list the Property for sale. The financial forecast of the Debtor is based upon the funds generated from operation of the Debtor's business and assumes an occupancy rate of 92%. Cash distributions will come from current operations and Litigation Proceeds. A full-text copy of the First Amended Disclosure Statement dated February 6, 2025 is available at https://urlcurt.com/u?l=QNDCwx from PacerMonitor.com at no charge. Attorneys for the Debtor: Patrick S. Garrity, Esq. Albert J. Derbes, IV, Esq. Derbes Law Firm, L.L.C. 3027 Ridgelake Drive Metairie, LA 70002 Tel: (504) 837-1230 Fax: (504) 832-0322 Email: pgarrity@derbeslaw.com About West Centro West Centro, LLC, is primarily engaged in renting and leasing real estate properties. It owns the real property located at 2100-2108 Franklin St., Gretna, La., valued at $2.4 million. West Centro filed Chapter 11 petition (Bankr. E.D. La. Case No. 24-11536) on Aug. 7, 2024, with total assets of $3,362,535 and total liabilities of $3,478,874. Judge Meredith S. Grabill oversees the case. The Debtor is represented by Patrick Garrity, Esq., at The Derbes Law Firm, LLC. WEST RIDGE ACADEMY: Moody's Lowers Rating on Revenue Bonds to Ba2 ----------------------------------------------------------------- Moody's Ratings has downgraded to Ba2 from Ba1 the rating on the revenue bonds of West Ridge Academy, CO. The outlook remains negative. The Ba2 rating and negative outlook affect $9.7 million in outstanding revenue bonds. The downgrade and negative outlook are driven by persistent decreases to student enrollment which drives the bulk of the charter school's operating revenue. RATINGS RATIONALE The downgrade to Ba2 reflects West Ridge Academy's (WRA) weakening competitive profile due to declining student enrollment, despite its solid academic performance and location in an area with a growing pool of potential students. Although the school maintains a satisfactory cash position through budgetary adjustments and supportive state funding, the school's fiscal 2024 debt service coverage materially fell to just below 1.0x as calculated by us including interest expense on the line of credit. Failure to increase enrollment could lead to significant further operational strain. Governance considerations are a key rating driver, factoring management's inability to stem its student loss, which is moderated by the school's most recent reauthorization of its charter for an additional five-year period through fiscal 2028. RATING OUTLOOK The negative outlook reflects the uncertainty that the charter school will be able to rebuild its student enrollment over the next few years based on recent trends and increased area competition for potential students. Additional declines in enrollment would further pressure operating revenue and endanger the charter school's long-term viability. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING -- Improved competitive profile that results in enrollment gains and increased student waitlist -- Sustained revenue growth that reduces the charter school's fixed cost burden and improves operational flexibility -- Improved annual debt service coverage to above 1.5x -- Material reduction in the charter school's leverage which consists of debt and unfunded pension liabilities FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING -- Weakened competitive profile as evidenced by further declines in student enrollment or falling academic performance scores -- Narrowed operating margins resulting in annual debt service coverage near or below 1.0x -- Sustained reductions to days cash on hand -- Material increases to the charter school's leverage LEGAL SECURITY The charter school's outstanding Series 2019 bonds are secured by Loan and Security Agreements between the Colorado Educational and Cultural Facilities Authority and the WRA Building Corporation, a nonprofit corporation, which served as borrower, owner, and lessor of the Lease Agreement. The borrower leases the facilities to West Ridge Academy. Bond repayments are secured by the gross revenues of WRA Building Corporation, which consist primarily of the school's rental payments under the lease agreement, and a mortgage interest in the school site. The bonds are further secured by the state's Charter Intercept Statute, under which the state treasurer will make debt service payments directly to the trustee from the school's per pupil revenue (PPR) allocation. The intercept provides protection against liquidity issues or administrative error at the school level, but it does not protect against a shortfall in per pupil revenue due to a decline in enrollment or the termination of the school's charter. Bond covenants include a 45 days cash on hand requirement and annual debt service coverage ratio of 1.2x, unless the school's days cash on hand are at least 75 days, then the debt service coverage is 1.1x. In the event the liquidity or coverage covenants are not met, the school must retain a management consultant. The school is required to retain the management consultant until it has achieved a coverage ratio equal to the required level for two consecutive fiscal years. The outstanding bonds also have a debt service reserve requirement equal to maximum annual debt service (MADS). PROFILE West Ridge Academy is a nonprofit charter school, located in the City of Greeley (Aa2), about 45 miles east of Fort Collins (Aaa stable). The school operates a single campus serving approximately 330 students in grades K-8. West Ridge Academy was created by Weld County School District 6 (Greeley) (Aa3), by a resolution dated December 13, 2010, and has operated as a charter school within the district since July 1, 2011. The school's current five-year charter with its district authorizer is valid through June 30, 2028. METHODOLOGY The principal methodology used in this rating was US Charter Schools published in April 2024. WILDCAT LENDER: Mark Sharf Named Subchapter V Trustee ----------------------------------------------------- The U.S. Trustee for Region 17 appointed Mark Sharf, Esq., a practicing attorney in Los Angeles, as Subchapter V trustee for Wildcat Lender, LLC. Mr. Sharf will charge $660 per hour for his services as Subchapter V trustee and $150 per hour for his trustee administrator's services. In addition, the Subchapter V trustee will seek reimbursement for work-related expenses incurred. Mr. Sharf declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Mark Sharf, Esq. 6080 Center Drive, 6th Floor Los Angeles, CA 90045 Telephone: (323) 612-0202 Email: mark@sharflaw.com About Wildcat Lender Wildcat Lender, LLC, a company in Laguna Beach, Calif., filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-10304) on February 4, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and up to $50,000 in liabilities. Judge Scott C. Clarkson handles the case. The Debtor is represented by: David A. Wood, Esq. Marshack Hays Wood, LLP 870 Roosevelt Irvine, CA 92620-3663 Tel: (949) 333-7777 Email: dwood@marshackhays.com WILLIAM CARTER: Moody's Affirms 'Ba1' CFR, Outlook Remains Stable ----------------------------------------------------------------- Moody's Ratings affirmed The William Carter Company's ("Carter's") Ba1 corporate family rating and Ba1-PD probability of default rating. Concurrently, Moody's affirmed the Ba2 senior unsecured notes rating. The speculative grade liquidity rating remains unchanged at SGL-1. The ratings outlook remains stable. The affirmations reflect Carter's leading market position in branded baby and children's apparel, its solid credit metrics, low funded debt, and balanced financial strategies. Carter's continues to navigate declining birth rates and weaker consumer spending through targeted price reductions and enhanced product offerings with mass retailers. Moody's expect that these price investments will support improving value positioning with its target consumers and a return to sales growth. Its very good liquidity is supported by its solid free cash flow generation, untapped revolver and cash. RATINGS RATIONALE Carter's Ba1 CFR reflects the replenishment nature of Carter's competitively priced baby and toddler offering that poses limited fashion risk. Although the company continues to contend with weaker demand from its value oriented core customer, Moody's project funded debt levels to remain low and credit metrics to remain strong with EBITA/interest of 4.8x and debt/EBITDA of 2.3x in 2025. Reinvestments in pricing, which begain in Q3 2025, are expected to improve value, particularly at its entry price points, and support the company's return to growth. Carter's brand (including its exclusive brands) holds approximately 9% market share in baby and young children's maket (age zero to 10 years) as of December 2023. Its credit profile also reflects its very good liquidity. Although the company has historically maintained moderate leverage and balanced financial strategies, its profile also remains constrained by its lack of commitment to a clearly articulated financial policy supportive of an investment grade capital structure. Given its periodic capital structure reviews, there is a risk that it may choose to increase debt to finance acquisitions or share repurchases. In addition, Carter's has a narrow product focus primarily in infant and toddler apparel, customer concentration, geographic focus mainly in the US. The stable rating outlook reflects Moody's expectations that Carter's will maintain its market postion and profit margins, while operating with balanced financial policies and very good liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade would require sustained market share and solid operating performance in key segments. An upgrade would also require a demonstated commitment to maintaining an investment grade profile, including credit metrics stronger than the quantitative upgrade triggers. Quantitatively, an upgrade would require lease-adjusted debt/EBITDA to be maintained below 3 times, EBITA/interest expense above 5.5 times and EBITA margins in the midteens. The ratings could also be downgraded if financial policies become more aggressive or liquidity erodes. Quantitatively, the ratings could be downgraded if debt/EBITDA is sustained above 3.75 times. The principal methodology used in these ratings was Retail and Apparel published in November 2023. Headquartered in Atlanta, Georgia, The William Carter Company ("Carter's") owns the "Carter's," "OshKosh B'gosh," "Skip Hop" and "Little Planet" brands, which are distributed through company-operated stores, e-commerce operations, as well as national chains, department stores, specialty retailers and e-commerce platforms domestically and internationally. Revenue for the LTM period ended Sep. 28, 2024 was approximately $2.8 billion. The company's parent entity Carter's, Inc. is publicly traded under the stock symbol "CRI". WILLIAM H. ZIEGENBALQ: Sec. 341(a) Meeting of Creditors on March 20 ------------------------------------------------------------------- On February 13, 2025, William H. Ziegenbalg, V. Agency LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of North Carolina. According to court filing, the Debtor reports $2,313,083 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 20, 2025 at 10:00 AM at Greenville 341 Meeting Room. About William H. Ziegenbalg, V. Agency LLC William H. Ziegenbalg, V. Agency LLC is an insurance agency specializing in the sale and management of Allstate Insurance products under an R3001 Agreement. William H. Ziegenbalg, V. Agency LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-00531) on February 13, 2025. In its petition, the Debtor reports total assets of $597,892 and total liabilities of $2,313,083. The Debtor is represented by: 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 WOOF HOLDINGS: $138.5MM Bank Debt Trades at 39% Discount -------------------------------------------------------- Participations in a syndicated loan under which Woof Holdings Inc is a borrower were trading in the secondary market around 60.8 cents-on-the-dollar during the week ended Friday, February 14, 2025, according to Bloomberg's Evaluated Pricing service data. The $138.5 million Term loan facility is scheduled to mature on December 21, 2027. The amount is fully drawn and outstanding. Headquartered in Tewksbury, Massachusetts, Woof Holdings, Inc., through its acquisition of The Wellness Pet Food Holdings Company, Inc., is a manufacturer of premium pet food and treats, mainly in North America. WYNN RESORTS: Secures $2.4 Billion Loan for UAE Resort Construction ------------------------------------------------------------------- As previously reported, Wynn Resorts, Limited has a 40% equity interest in Island 3 AMI FZ-LLC, an unconsolidated joint venture affiliate, which is constructing an integrated resort property in Ras Al Khaimah, United Arab Emirates. On February 5, 2025, Wynn Al Marjan Island FZ-LLC, a wholly-owned direct subsidiary of Island 3, entered into a facility agreement with a syndicate of lenders which provides the Borrower with a $2.4 billion (or equivalent in local currency) delayed draw secured term loan facility to finance the development of Wynn Al Marjan Island. On the same date, as a condition precedent to the Term Loan Facility being made available to the Borrower, the Company and the Government of Ras Al Khaimah acting through the Investment and Development Office of Ras Al Khaimah, entered into a guarantee in favor of First Abu Dhabi Bank PJSC, as security agent for itself and the other secured parties under the Facility Agreement. Under the terms of the Guarantee, the Guarantors, irrevocably and unconditionally jointly and severally: (a) have guaranteed to each Secured Party punctual performance by the Borrower of certain of its obligations under the Facility Agreement, and (b) have undertaken with each Secured Party: (i) to provide, within 10 business days upon receiving written demand by the Security Agent, (A) sufficient funds to ensure that practical completion of the project (as provided in the Facility Agreement) takes place no later than June 30, 2028 and (B) to fund amounts equal to any project cost overruns, to the extent the Borrower fails to fund such overruns; and (ii) to pay, whenever the Borrower does not pay, interest, commitment fees and other finance costs payable under the Facility Agreement as well as scheduled payments under any interest rate hedging agreement. In addition, upon the occurrence of certain specified events of default, change of control events or credit rating downgrades under the Facility Agreement or the occurrence of certain commercial gaming license related events (including, among others, the loss of the commercial gaming license permitting the Borrower to conduct commercial gaming at the project and as further provided in the Facility Agreement), the Guarantors, irrevocably and unconditionally jointly and severally, have undertaken to pay, to the extent the Borrower does not pay, all then outstanding principal, interest, hedging liabilities and any and all other amounts and expenses then due and payable under the Facility Agreement and related agreements, within 10 business days upon receiving written demand by the Security Agent (or, in respect of the occurrence of certain commercial gaming license related events, if later, on the date falling 180 days following the occurrence of such event). The guarantees and undertakings provided by the Guarantors under the Guarantee terminate on the earlier of: (1) the date on which all secured liabilities under the Facility Agreement have been paid in full, and (2) the date of practical completion of the project. About Wynn Resorts Ltd. Headquartered in Las Vegas, Nevada, Wynn Resorts, Limited owns and operates hotels and casino resorts. As of September 30, 2024, Wynn Resorts had $14.1 billion in total assets, $15.2 billion in total liabilities, and $1.1 billion in total stockholders' deficit. * * * Egan-Jones Ratings Company on January 14, 2025, maintained its 'CCC+' foreign currency and local currency senior unsecured ratings on debt issued by Wynn Resorts. X4 PHARMACEUTICALS: Cuts 30% of Workforce in Restructuring ---------------------------------------------------------- X4 Pharmaceuticals, announced a restructuring of its workforce and capital spending to focus efforts on advancing mavorixafor to treat those with chronic neutropenia, while also optimizing its U.S. promotion of XOLREMDI (mavorixafor), approved for the treatment of WHIM syndrome (warts, hypogammaglobulinemia, infections and myelokathexis), a rare immunodeficiency. Strategic restructuring activities include: * Reducing overall headcount by 43 people (approximately 30% of X4 employees), which includes discontinuing research efforts and closing the company's facility in Vienna, Austria, as well as pausing pre-clinical drug candidate programs; * Scaling the U.S. commercial field team and supporting roles across the company; * Streamlining other spending to support the ongoing clinical development of mavorixafor for the larger population of those with chronic neutropenia. "This strategic restructuring is being implemented to improve our operational efficiency and capital efficiency as we continue to maximize the global market opportunity for mavorixafor and to benefit the largest number of patients we can worldwide," said Paula Ragan, Ph.D., President and Chief Executive Officer of X4 Pharmaceuticals. "We expect this organizational redesign to sharpen our focus on the execution of our ongoing global pivotal Phase 3 clinical trial of mavorixafor in chronic neutropenia while we continue to build WHIM communities through both our U.S. commercial presence and through global partnerships. We would like to express our gratitude to all of the X4tizens being impacted by this restructuring. Their contributions and dedication have not only helped shape who we are as a company today, but, we believe, will continue to positively impact the immunodeficiency community for years to come." X4 expects its efforts will decrease annual spending by $30-35 million and believes it will have sufficient funds to support operations into the first half of 2026. Workforce reductions are expected to be completed in the first quarter of 2025. About X4 Pharmaceuticals Boston, Mass.-based X4 Pharmaceuticals, Inc. is a biopharmaceutical company focused on discovering, developing, and commercializing novel therapeutics for the treatment of rare diseases and those with limited treatment options, particularly conditions resulting from immune system dysfunction. The Company cautioned in its Form 10-Q Report for the quarterly period ended March 31, 2024, that substantial doubt exists about its ability to continue as a going concern. The Company said, "Since our inception, we have incurred significant operating losses and negative cash flows from our operations. As of March 31, 2024, our cash and cash equivalents were $60.5 million, our restricted cash balance was $0.8 million, and our investment in marketable securities was $20.4 million. We have a covenant under our Hercules Loan Agreement that currently requires that we maintain a minimum level of cash of $20 million through January 31, 2025, subject to subsequent reductions. Based on our current cash flow projections, which exclude any benefit from the potential sale of our PRV, an additional borrowings that may become available on Hercules Loan Agreement, and with no additional external funding, we believe that we will not be able to maintain the minimum cash required to satisfy this covenant beginning in the first quarter of 2025. In such event, the lenders could require the repayment of all outstanding debt." As of September 30, 2024, X4 Pharmaceuticals had $178.2 million in total assets, $118.5 million in total liabilities, and $59.6 million in total stockholders' equity. ZEVRA THERAPEUTICS: BlackRock Reports 7.6% 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 4,080,420 shares of Zevra Therapeutics, Inc.'s common stock, representing 7.6% 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/ywjm7bn4 About Zevra Therapeutics Celebration, Fla.-based Zevra Therapeutics, Inc. is a company focused on developing therapies for rare diseases with limited or no treatment options. The company aims to create transformational therapies by combining science, data, and patient needs. Utilizing unique, data-driven development and commercialization strategies, Zevra Therapeutics overcomes complex drug development challenges to provide new therapies for the rare disease community. During the year ended December 31, 2023, Zevra Therapeutics incurred a net loss of $46 million, compared to a net loss of $26.8 million in 2022. As of September 30, 2024, Zevra Therapeutics had $191.6 million in total assets, $121.8 million in total liabilities, and $69.8 million in total stockholders' equity. Orlando, Fla.-based Ernst & Young LLP, the company's auditor since 2022, issued a "going concern" qualification in its report dated April 1, 2024. The qualification cited sustained recurring losses, negative cash flows from operations, and substantial doubt about the company's ability to continue as a going concern. ZIPS CAR WASH: Unsecured Creditors to Get Nothing in Plan --------------------------------------------------------- Zips Car Wash, LLC and its Debtor Affiliates filed with the U.S. Bankruptcy Court for the Northern District of Texas a Disclosure Statement for the Joint Plan of Reorganization dated February 5, 2025. Zips is one of the largest privately owned express car wash operator in the United States, having grown to more than 260 locations across 23 states since its founding in 2004. Operating through its Zips, Jet Brite, and Rocket Express brands, Zips serves its customers through two core revenue channels: (a) Retail Washes, which rely on a pay-per-wash model that is available to all consumers; and (b) the Unlimited Wash Club ("UWC"), a monthly subscription membership with exclusive offerings for its members. Following extensive, arm's-length negotiations, Zips enters chapter 11 to implement a pre negotiated restructuring transaction and related chapter 11 plan that has support of 100% of its lenders and the Company's major shareholders. The restructuring will reduce the Company's outstanding funded debt obligations by approximately $279 million, shed millions of dollars in go-forward lease liabilities, issue $375 million in take-back debt (including a $150 million HoldCo facility and a $225 million OpCo term loan facility), and provide the reorganized Company with access to a new $15 million revolving credit facility to fund operations. An expedited and orderly process, with the support and buy-in from the Company's landlord constituency, will allow Zips to continue as a healthy going-concern and preserve nearly 1,800 jobs. To finance the chapter 11 cases, the Company has negotiated a $82.5 million debtor-in-possession financing facility (the "DIP Facility") with their existing secured lenders that will provide the Debtors with $30 million in new money. The Company marketed the facility, and it provides the best terms available under the circumstances. With only $1 million of cash on hand as of the Petition Date, the new money financing provided by the DIP Facility is critical to ensuring the Company continues to satisfy its vendor obligations in the ordinary course and achieves its restructuring objectives. The key terms of the Restructuring Transactions, as reflected in the Plan, include the following: * each Holder of an Allowed Term Loan Claim shall receive its Pro Rata share of: (a) the $225 million New OpCo Term Loans under the New OpCo Term Loan Facility, (b) the $150 million New HoldCo Loans under the New HoldCo Facility, and (c) 100% of the New Zips Common Equity, subject to dilution on account of the MIP Equity Interests; * each Holder of an Allowed General Unsecured Claim shall receive no recovery or distribution on account of such Allowed General Unsecured Claim; and * Preferred Equity Interests, Common Equity Interests, and Section 510(b) Claims will be cancelled, released, and extinguished without any distribution. Class 4 consists of General Unsecured Claims. On the Effective Date, except to the extent that a Holder of an Allowed General Unsecured Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each Allowed General Unsecured Claim shall receive no recovery or distribution on account of such Allowed General Unsecured Claim. This Class will receive a distribution of 0% of their allowed claims. On the Effective Date, all Common Equity Interests shall be canceled, released, extinguished, and discharged and will be of no further force or effect. Holders of Common Equity Interests shall receive no recovery or distribution on account thereof and each Holder of a Common Equity Interest shall not receive or retain any distribution, property, or other value on account of such Common Equity Interest. The Debtors and the Reorganized Debtors, as applicable, shall fund distributions under the Plan with: (1) Cash on hand, including Cash from operations; (2) the New Zips Common Equity; (3) the issuance of New HoldCo Loans under the New HoldCo Facility; (4) the issuance of New OpCo Term Loans under the New OpCo Term Loan Facility; and (5) the issuance of New OpCo RCF Loans under the NewOpCo RCF. Each distribution and issuance shall be governed by the terms and conditions set forth in the Plan applicable to such distribution or issuance and by the terms and conditions of the instruments or other documents evidencing or relating to such distribution or issuance, which terms and conditions shall bind each Entity receiving such distribution or issuance. A full-text copy of the Disclosure Statement dated February 5, 2025 is available at https://urlcurt.com/u?l=MlwbJV from PacerMonitor.com at no charge. Proposed Co-Counsel for the Debtors: Jason S. Brookner, Esq. Aaron M. Kaufman, Esq. Amber M. Carson, Esq. GRAY REED 1601 Elm Street, Suite 4600 Dallas, Texas 75201 Tel: (214) 954-4135 Fax: (214) 953-1332 Email: jbrookner@grayreed.com akaufman@grayreed.com acarson@grayreed.com Proposed Co-Counsel for the Debtors: Joshua A. Sussberg, Esq. Ross J. Fiedler, Esq. KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 601 Lexington Avenue New York, NY 10022 Tel: (212) 446-4800 Fax: (212) 446-4900 Email: joshua.sussberg@kirkland.com ross.fiedler@kirkland.com - and - Lindsey Blumenthal, Esq. KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 333 West Wolf Point Plaza Chicago, IL 60654 Tel: (312) 862-2000 Fax: (312) 862-2200 Email: lindsey.blumenthal@kirkland.com 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, includingglossy 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 $10 billion. Honorable Bankruptcy Judge Michelle V. Larson handles the case. The Debtors' local bankruptcy counsel is Jason S. Brookner, Esq., Aaron M. Kaufman, Esq., and Amber M. Carson, Esq., at Gray Reed, Dallas, Texas. The Debtors' general bankruptcy counsel is Joshua A. Sussberg, Esq., and Ross J. Fiedler, Esq., at Kirkland & Ellis LLP, in New York, and Lindsey Blumenthal, Esq., at Kirkland & Ellis LLP, Chicago, Illinois. The Debtors' investment banker is Evercore Group LLC. The Debtors' financial advisor is Alixpartners LLP. The Debtors' Noticing & Claims Agent is Kroll Restructuring Administration LLC. The Debtors' Real Estate Consultant & Advisor is Hilco Real Estate LLC. The Debtors' tax advisor is PWC US TAX LLP. [^] Large Companies with Insolvent Balance Sheet ------------------------------------------------ Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ACADIAN ASSET MA AAMI US 555.2 (3.8) - AIRSHIP AI HOLDI AISP US 9.1 (12.9) 0.0 ALPHAVEST ACQUIS ATMVU US 53.1 (1.3) (1.3) ALTRIA GROUP INC MO US 35,177.0 (2,188.0) (4,268.0) AMC ENTERTAINMEN AMC US 8,324.1 (1,685.3) (789.8) AMERICAN AIRLINE AAL US 61,783.0 (3,977.0) (10,833.0) AMNEAL PHARM INC AMRX US 3,461.0 (33.7) 418.1 APPIAN CORP-A APPN US 549.9 (49.8) 62.0 AQUESTIVE THERAP AQST US 110.0 (45.4) 81.4 AUTOZONE INC AZO US 17,465.8 (4,672.9) (1,468.0) AVEANNA HEALTHCA AVAH US 1,644.2 (156.4) (24.7) AVIS BUDGET GROU CAR US 18,216.0 (229.0) (1,007.0) B. RILEY FINANCI RILY US 3,236.3 (143.1) 678.5 BATH & BODY WORK BBWI US 4,984.0 (1,748.0) 145.0 BAUSCH HEALTH CO BHC CN 26,540.0 (242.0) 845.0 BAUSCH HEALTH CO BHC US 26,540.0 (242.0) 845.0 BELLRING BRANDS BRBR US 885.2 (146.6) 455.6 BEYOND MEAT INC BYND US 692.9 (611.9) 210.8 BIGBEAR.AI HOLDI BBAI US 354.1 98.4 53.6 BIOAGE LABS INC BIOA US 337.4 313.7 317.4 BIOCRYST PHARM BCRX US 491.3 (468.6) 295.2 BIOTE CORP-A BTMD US 101.3 (126.8) 23.5 BLEICHROEDER ACQ BACQU US 0.3 (0.1) (0.3) BLEICHROEDER ACQ BACQ US 0.3 (0.1) (0.3) BOEING CO/THE BA US 156,363.0 (3,914.0) 30,920.0 BOLD EAGLE ACQ-A BEAG US 0.9 (0.1) (0.0) BOLD EAGLE ACQUI BEAGU US 0.9 (0.1) (0.0) BOMBARDIER INC-A BDRAF US 12,668.0 (1,991.0) 604.0 BOMBARDIER INC-A BBD/A CN 12,668.0 (1,991.0) 604.0 BOMBARDIER INC-B BDRBF US 12,668.0 (1,991.0) 604.0 BOMBARDIER INC-B BBD/B CN 12,668.0 (1,991.0) 604.0 BOOKING HOLDINGS BKNG US 27,978.0 (3,653.0) 3,851.0 BRIDGEBIO PHARMA BBIO US 665.0 (1,218.4) 305.4 BRIDGEMARQ REAL BRE CN 163.4 (68.9) (86.7) BTQ TECHNOLOGIES BTQ CN 1.8 (1.3) (1.1) CALUMET INC CLMT US 2,640.1 (426.6) (464.6) CANTOR PA CEP US 101.5 100.9 (0.1) CARDINAL HEALTH CAH US 47,002.0 (2,921.0) 533.0 CHARLTON ARIA AC CHARU US 0.2 (0.1) (0.3) CHARLTON ARIA-A CHAR US 0.2 (0.1) (0.3) CHECKPOINT THERA CKPT US 5.2 (12.6) (12.6) CHENIERE ENERGY CQP US 17,385.0 (626.0) (543.0) CHILDREN'S PLACE PLCE US 888.8 (49.6) (46.3) CHOICE HOTELS CHH US 2,544.0 (96.2) (140.2) CINEPLEX INC CGX CN 2,287.3 (39.7) (316.9) CINEPLEX INC CPXGF US 2,287.3 (39.7) (316.9) CLIPPER REALTY I CLPR US 1,287.0 (14.2) - COHEN CIRCLE ACQ CCIRU US 0.2 (0.5) (0.7) COHEN CIRCLE ACQ CCIR US 0.2 (0.5) (0.7) COMMSCOPE HOLDIN COMM US 8,810.7 (2,111.8) 973.2 COMMUNITY HEALTH CYH US 13,905.0 (1,270.0) 982.0 COMPOSECURE IN-A CMPO US 435.4 (285.0) 92.2 CONSENSUS CLOUD CCSI US 622.5 (93.2) 4.5 CONTANGO ORE INC CTGO US 158.3 (10.2) (43.0) COOPER-STANDARD CPS US 1,733.1 (133.4) 228.5 CORE SCIENTIFIC CORZ US 921.9 (729.4) 201.3 CPI CARD GROUP I PMTS US 342.3 (42.8) 123.7 CROSSAMERICA PAR CAPL US 1,130.1 (30.7) (47.1) CYTOKINETICS INC CYTK US 1,436.1 (13.9) 908.8 D-WAVE QUANTUM I QBTS US 49.6 (16.9) 9.3 DAVE INC DAVE US 272.2 (169.3) 217.3 DELEK LOGISTICS DKL US 1,960.7 (45.1) 16.4 DELL TECHN-C DELL US 81,951.0 (2,190.0) (11,465.0) DENNY'S CORP DENN US 496.3 (34.0) (55.6) DIGITALOCEAN HOL DOCN US 1,526.5 (211.7) 376.0 DINE BRANDS GLOB DIN US 1,699.5 (216.7) (55.4) DOMINO'S PIZZA DPZ US 1,775.1 (3,976.6) 361.7 DOMO INC- CL B DOMO US 190.2 (171.2) (105.7) DROPBOX INC-A DBX US 2,576.7 (546.1) (156.6) DRUGS MADE IN AM DMAAU US 0.4 (0.2) (0.6) ECO BRIGHT FUTUR EBFI US 0.0 (0.1) (0.1) EMBECTA CORP EMBC US 1,149.5 (768.8) 369.0 EOS ENERGY ENTER EOSE US 216.8 (417.7) 74.1 ETSY INC ETSY US 2,442.2 (624.3) 767.7 EXCO RESOURCES EXCE US 1,032.7 (1,026.5) (421.2) EXOZYMES INC EXOZ US 3.6 (3.6) (4.4) FAIR ISAAC CORP FICO US 1,706.6 (1,138.2) 264.5 FENNEC PHARMACEU FENC US 58.9 (5.2) 50.5 FENNEC PHARMACEU FRX CN 58.9 (5.2) 50.5 FERRELLGAS PAR-B FGPRB US 1,413.7 (457.2) (18.4) FERRELLGAS-LP FGPR US 1,413.7 (457.2) (18.4) FOGHORN THERAPEU FHTX US 308.4 (28.3) 214.4 FREIGHTCAR AMERI RAIL US 245.9 (72.4) 63.3 GCM GROSVENOR-A GCMG US 612.7 (90.3) 152.8 GOAL ACQUISITION PUCKU US 3.6 (12.2) (13.6) GRINDR INC GRND US 456.3 (13.4) 29.3 GUARDANT HEALTH GH US 1,538.7 (60.1) 1,029.4 H&R BLOCK INC HRB US 2,712.3 (872.5) (282.0) HERBALIFE LTD HLF US 2,653.5 (954.2) (40.4) HILTON WORLDWIDE HLT US 16,522.0 (3,689.0) (1,428.0) HP INC HPQ US 39,909.0 (1,323.0) (7,927.0) HUMACYTE INC HUMA US 114.8 (63.7) 2.1 IMMUNITYBIO INC IBRX US 364.6 (744.2) 102.2 INNOVATE CORP VATE US 897.2 (125.3) (68.1) INSEEGO CORP INSG US 113.4 (85.1) (103.8) INSPIRED ENTERTA INSE US 388.6 (78.3) 56.1 INTUITIVE MACHIN LUNR US 224.8 (4.5) 73.0 IRON MOUNTAIN IRM US 18,717.1 (304.7) (1,396.1) JACK IN THE BOX JACK US 2,735.6 (851.8) (253.0) LAUNCH ONE ACQUI LPAAU US 234.0 (9.8) - LAUNCH ONE ACQUI LPAA US 234.0 (9.8) - LIFEMD INC LFMD US 72.6 (6.0) (10.3) LINDBLAD EXPEDIT LIND US 889.8 (122.4) (98.3) LIONS GATE ENT-B LGF/B US 7,167.3 (156.4) (2,328.7) LIONS GATE-A LGF/A US 7,167.3 (156.4) (2,328.7) LIONSGATE STUDIO LION US 5,374.5 (950.1) (2,038.2) LOWE'S COS INC LOW US 44,743.0 (13,419.0) 2,530.0 LUCKY STRIKE ENT LUCK US 3,240.0 (55.7) (52.9) LUMINAR TECHNOLO LAZR US 403.4 (258.0) 176.2 MADISON SQUARE G MSGS US 1,412.4 (273.1) (305.9) MANNKIND CORP MNKD US 464.2 (209.9) 255.6 MARBLEGATE ACQ-A GATE US 4.2 (19.4) (0.4) MARBLEGATE ACQUI GATEU US 4.2 (19.4) (0.4) MARRIOTT INTL-A MAR US 26,182.0 (2,992.0) (5,164.0) MARTIN MIDSTREAM MMLP US 538.5 (70.4) 15.0 MASCO CORP MAS US 5,016.0 (53.0) 1,170.0 MATCH GROUP INC MTCH US 4,465.8 (63.7) 848.3 MBIA INC MBI US 2,230.0 (1,988.0) - MCDONALDS CORP MCD US 55,183.0 (3,797.0) 738.0 MCKESSON CORP MCK US 71,081.0 (2,704.0) (6,821.0) MEDIAALPHA INC-A MAX US 236.1 (59.6) 29.4 METTLER-TOLEDO MTD US 3,240.0 (126.9) 25.7 MSCI INC MSCI US 5,445.4 (940.0) (241.6) NATHANS FAMOUS NATH US 48.7 (19.0) 26.5 NEW ENG RLTY-LP NEN US 387.4 (65.5) - NEXT-CHEMX CORP CHMX US 3.9 (1.8) (3.8) NOVAGOLD RES NG CN 109.8 (47.4) 98.3 NOVAGOLD RES NG US 109.8 (47.4) 98.3 NOVAVAX INC NVAX US 1,712.5 (526.4) (77.3) NUTANIX INC - A NTNX US 2,181.4 (685.3) 302.9 O'REILLY AUTOMOT ORLY US 14,893.7 (1,371.0) (2,443.6) OAKTREE ACQUIS-A OACC US 0.6 (0.0) - OAKTREE ACQUISIT OACCU US 0.6 (0.0) - OMEROS CORP OMER US 313.3 (154.2) 109.3 OTIS WORLDWI OTIS US 11,316.0 (4,728.0) (79.0) PAPA JOHN'S INTL PZZA US 860.9 (414.7) (54.7) PELOTON INTERA-A PTON US 2,109.8 (497.2) 672.8 PHATHOM PHARMACE PHAT US 387.0 (187.1) 308.5 PHILIP MORRIS IN PM US 61,784.0 (9,870.0) (2,745.0) PITNEY BOWES INC PBI US 3,397.5 (578.4) (354.8) PLANET FITNESS-A PLNT US 3,048.2 (267.1) 270.2 PLUM ACQUISITION PLMKU US 0.4 (0.0) (0.4) PLUM ACQUISITION PLMK US 0.4 (0.0) (0.4) PORCH GROUP INC PRCH US 867.3 (77.0) (84.6) PRIORITY TECHNOL PRTHU US 1,759.7 (58.9) 37.7 PRIORITY TECHNOL PRTH US 1,759.7 (58.9) 37.7 PROS HOLDINGS IN PRO US 419.9 (68.7) 52.1 PTC THERAPEUTICS PTCT US 1,842.2 (1,054.4) 670.8 QUANTUM CORP QMCO US 163.1 (153.4) (25.7) RE/MAX HOLDINGS RMAX US 578.6 (61.8) 54.2 REALREAL INC/THE REAL US 406.3 (345.4) (14.0) REDFIN CORP RDFN US 1,151.1 (25.2) 167.3 REVANCE THERAPEU RVNC US 461.6 (163.0) 249.6 REVANCE THERAPEU RTI GR 461.6 (163.0) 249.6 REVANCE THERAPEU RTI QT 461.6 (163.0) 249.6 REVANCE THERAPEU RVNCEUR E 461.6 (163.0) 249.6 REVANCE THERAPEU RTI TH 461.6 (163.0) 249.6 REVANCE THERAPEU RTI GZ 461.6 (163.0) 249.6 RH RH US 4,464.2 (183.0) 381.5 RIGEL PHARMACEUT RIGL US 139.4 (14.6) 52.2 RIMINI STREET IN RMNI US 343.8 (76.8) (93.7) RINGCENTRAL IN-A RNG US 1,818.4 (345.9) 94.2 RUBRIK INC-A RBRK US 1,268.7 (521.1) 127.1 SABRE CORP SABR US 4,693.2 (1,530.1) 22.9 SANUWAVE HEALTH SNWV US 21.8 (60.3) (71.6) SBA COMM CORP SBAC US 10,201.7 (5,125.8) (217.6) SCOTTS MIRACLE SMG US 3,170.2 (479.5) 601.6 SEAGATE TECHNOLO STX US 7,959.0 (1,079.0) 693.0 SECURETECH INNOV SCTH US 0.0 (0.4) (0.4) SEMTECH CORP SMTC US 1,379.0 (139.7) 322.3 SHOULDERUP TEC-A SUAC US 9.6 (3.8) (4.8) SLEEP NUMBER COR SNBR US 864.7 (448.8) (723.8) SPACKMAN EQUITIE SQG CN 0.1 (1.8) (0.4) SPECTRAL CAPITAL FCCN US 0.3 (0.1) (0.2) SPIRIT AEROSYS-A SPR US 7,049.2 (1,936.5) 501.5 STARBUCKS CORP SBUX US 31,893.1 (7,464.6) (2,440.6) STELLAR V CAPITA SVCCU US 0.2 (0.0) (0.2) TORRID HOLDINGS CURV US 493.0 (189.3) (28.4) TOWNSQUARE MED-A TSQ US 565.4 (52.5) 25.3 TRANSDIGM GROUP TDG US 21,515.0 (6,251.0) 3,872.0 TRAVEL + LEISURE TNL US 6,698.0 (861.0) 658.0 TRAVERE THERAPEU TVTX US 504.4 (30.5) 134.7 TRINSEO PLC TSE US 2,644.1 (619.9) 267.3 TRISALUS LIFE SC TLSI US 27.5 (20.4) 13.9 TRIUMPH GROUP TGI US 1,511.8 (82.3) 460.6 TUCOWS INC-A TC CN 799.0 (53.1) 22.7 TUCOWS INC-A TCX US 799.0 (53.1) 22.7 UNISYS CORP UIS US 1,861.6 (187.9) 361.8 UNITED PARKS & R PRKS US 2,579.6 (455.9) (142.3) UNITI GROUP INC UNIT US 5,098.7 (2,476.3) - VERISIGN INC VRSN US 1,406.5 (1,957.9) (867.3) VERITONE INC VERI US 336.4 (25.2) (83.9) VOYAGER ACQ CORP VACHU US 256.9 (11.3) 0.8 VOYAGER ACQUISIT VACH US 256.9 (11.3) 0.8 WAYFAIR INC- A W US 3,414.0 (2,733.0) (357.0) WILLOW LANE ACQU WLACU US 0.1 (0.0) (0.1) WILLOW LANE ACQU WLAC US 0.1 (0.0) (0.1) WINGSTOP INC WING US 484.8 (447.5) 47.3 WINMARK CORP WINA US 52.0 (33.7) 30.0 WORKIVA INC WK US 1,302.1 (50.8) 449.5 WPF HOLDINGS INC WPFH US 0.0 (0.3) (0.3) WYNN RESORTS LTD WYNN US 12,978.0 (968.6) 1,382.1 XERIS BIOPHARMA XERS US 321.1 (28.3) 71.8 XPONENTIAL FIT-A XPOF US 472.2 (123.3) 1.4 YUM! BRANDS INC YUM US 6,727.0 (7,648.0) 602.0 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA. Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The single-user TCR subscription rate is $1,400 for six months or $2,350 for twelve months, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each per half-year or $50 annually. For subscription information, contact Peter A. Chapman at 215-945-7000. *** End of Transmission ***