/raid1/www/Hosts/bankrupt/TCR_Public/250219.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, February 19, 2025, Vol. 29, No. 49
Headlines
138 GREENE: Seeks to Hire Backenroth Frankel & Krinsky as Counsel
145 NAVARRO: Voluntary Chapter 11 Case Summary
31FO LLC: Seeks to Extend Plan Exclusivity to April 8
3784 LLC: Seeks Chapter 11 Bankruptcy Protection in Florida
491 BERGEN: Hires Klestadt Winters Jureller Southard as Counsel
8501 FORT HAMILTON: Seeks to Extend Plan Exclusivity to April 4
9029 NEW YORK: Files Chapter 11 Bankruptcy in New Jersey
AFINITI LTD: Appoints New CEO Amid Post-Bankruptcy Recovery
ALCHEMY 365: Case Summary & 20 Largest Unsecured Creditors
ALI A. ASKARI MD: Files Chapter 11 Bankruptcy in Arizona
AMERICANN INC: Reports Increased Net Loss of $1.3M for Q1 2025
AMN HEALTHCARE: Fitch Lowers Long-Term IDR to 'BB', Outlook Stable
AR ACQUISITIONS: U.S. Trustee Unable to Appoint Committee
B.G.P. INC: Court OKs Interim Use of Cash Collateral
BOVAN ENTERPRISES: Gets OK to Use $50K in Cash Collateral
BUFFALO NEWSPRESS: Files Emergency Bid to Use Cash Collateral
CAMPBELL FAMILY: Gets OK to Use Cash Collateral Until March 28
CAN BROTHERS: Gets OK to Use Cash Collateral Until April 30
CANVAS SARASOTA: Hires Gallardo Law Firm as Bankruptcy Counsel
CENTENNIAL HOUSING: Plan Exclusivity Period Extended to March 28
COASTAL GROWERS: Files Chapter 11 Bankruptcy in Alabama
COLLECTIVE SPEAKERS: Files Chapter 11 Bankruptcy in Colorado
CUT & FILL: Court Extends Cash Collateral Access to March 6
DANG LA CONSTRUCTION: Seeks Subchapter V Bankruptcy in Texas
DATASEA INC: Reports $1.14 Million Net Loss for Q2 2025
DJK ENTERPRISES: Seeks to Extend Plan Exclusivity to May 31
DON ENTERPRISES: Case Summary & Nine Unsecured Creditors
DORMIFY INC: Seeks to Hire Reliable as Claims and Noticing Agent
DUSOBOX CORP: To Sell Inventory to Precision Corr for $250,000
DVKOCR TIGARD: Case Summary & 13 Unsecured Creditors
EAGLE HIGHLAND: Case Summary & 17 Unsecured Creditors
EGZIT CORPORATION: Court Extends Cash Collateral Access to March 7
EISNER ADVISORY: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
ELEMENTS UES: Gets Interim OK to Use Cash Collateral
ELITE ENDEAVORS: Seeks to Extend Plan Exclusivity to May 16
ESSEX TECHNOLOGY: Taps Livingstone Partners as Investment Banker
EVENTIDE CREDIT: Seeks to Hire William L. Roberts as Accountant
EZ ROLL CASTERS: Creditor Seeks to Prohibit Cash Collateral Access
FAMILY HEALING: Seeks to Use Cash Collateral
FTX TRADING: Estate Disputes $59MM Korean Asset Ownership Claim
FUEL FITNESS: Gets Extension to Access Cash Collateral
FUEL HOMESTEAD: Gets Extension to Access Cash Collateral
FUEL REYNOLDA: Court Extends Cash Collateral Access to March 21
G7 VENICE: Case Summary & 20 Largest Unsecured Creditors
GEORGIAN TRANSPORTATION: Seeks to Tap Alla Kachan as Legal Counsel
GILGAL MEDICAL: Seeks Subchapter V Bankruptcy in Florida
GLASS MANAGEMENT: Court Extends Cash Collateral Access to March 5
GOLDEN STAR: Reports Increased Net Loss of $23K in Second Quarter
HARADA FAMILY: Seeks to Hire Scharfe Kato & Co. as Accountant
IM3NY LLC: U.S. Trustee Appoints Creditors' Committee
INTEGRITY CELEBRATIONS: Seeks to Use Cash Collateral
IR4C INC: Court Extends Cash Collateral Access to March 27
IVANTI SOFTWARE: Fitch Puts 'B' Rating on Watch Negative
J & P FLASH: To Sell Properties to Triple Net Properties
JERVOIS TEXAS: Hires PwC US Tax as Tax Restructuring Provider
JERVOIS TEXAS: Seek to Hire Sidley Austin as Bankruptcy Counsel
JERVOIS TEXAS: Seeks to Hire FTI Consulting as Financial Advisor
JERVOIS TEXAS: Seeks to Hire Moelis & Company as Investment Banker
JOANN INC: Sets to Close Abilene Location as Part of Chapter 11
KDHX: Two Steps from Bankruptcy Filing, Says Lawyer
LEITMOTIF SERVICES: Gets Interim OK to Use Cash Collateral
LIBERATED BRANDS: U.S. Trustee Appoints Creditors' Committee
LJB LLC: Denied Another Extension to Use Cash Collateral
MI LIQUIDATION: Trustee Hires William F. Murray as Consultant
MIRACLE RESTAURANT: Gets OK to Use Cash Collateral Until March 5
MK & UK PALM: Secured Creditor Files Liquidating Plan
NORDICUS PARTNERS: Delays 10-Q for Q3 2024, Expects $391,527 Loss
NORTHWEST RENEWABLE: Seeks to Tap James G. Murphy Co. as Auctioneer
NOTHIN' BUT WASTE: U.S. Trustee Unable to Appoint Committee
OLIVIA J STUDIOS: Court OKs Deal to Use JPMorgan's Cash Collateral
OMEGA THERAPEUTICS: Hires Kroll as Claims and Noticing Agent
OUR WICKED: Seeks to Hire Maltz Auctions as Broker and Auctioneer
OUTLOOK THERAPEUTICS: Reports Net Income of $17.38M in Q1 2025
PARTY CITY: Wholesale Business, IP Sold for $20MM
PERASO INC: Grants 100,000 Stock Options to Top Executives
PHOENIX EXTEND-A-SUITES: U.S. Trustee Unable to Appoint Committee
PINEY POINT: Court Extends Cash Collateral Access to May 31
PRAIRIE EYE: Seeks to Hire Rafool & Bourne as Bankruptcy Counsel
PROSPECT MEDICAL: Court Okays Roger Williams, Fatima Hospitals Sale
PUREMEDY INC: Gets Interim OK to Use Cash Collateral Until March 26
PUREMEDY INC: Seeks to Hire Beall & Burkhardt as Legal Counsel
QUARTZ ACQUIRECO: Fitch Hikes LongTerm IDR to BB-, Outlook Stable
R&R TRAILERS: Gets Interim OK to Use Cash Collateral
RENNOVA HEALTH: Posts $7.73M Loss for 2023, Up From $3.29M in 2022
RENO CITY CENTER: Unsecureds to Get 95% in Creditors' Plan
RFNA LP: Fitch Assigns 'B+' Final LongTerm IDR, Outlook Stable
RGC RESOURCES: Liquidity Risks Raises Going Concern Doubt
ROOME ENTERPRISES: Court OKs Use of Cash Collateral
ROYAL REALTY: Seeks to Hire Calaiaro Valencik as Legal Counsel
RPM EXPEDITE: Gets Extension to Access Cash Collateral
S&W SEED: Reduces Net Loss to $1.66 Million in Q2 2025
SBB SHIPPING: U.S. Trustee Unable to Appoint Committee
SCHILLER PARK: Court OKs Interim Use of Cash Collateral
SHEKINAH RESOURCE: Seeks Chapter 11 Bankruptcy in Georgia
SHERWOOD HOSPITALITY: Case Summary & 11 Unsecured Creditors
SOUTHERN PINESTRAW: Gets Final OK to Use Cash Collateral
SOUTHMINSTER, NC: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
TBB DEEP: Court to Hold Hearing Today on Bid to Use Cash Collateral
TEAM MUV FITNESS: Case Summary & 10 Unsecured Creditors
TIMELINE CONSTRUCTION: Seeks to Tap Thomas F. Jones III as Counsel
TPT GLOBAL: Raises Going Concern Doubt Amid Losses, Cash Flow Woes
TWIN FALLS: Gets OK to Use Additional $197K in Cash Collateral
UNITED FIBER: Court Extends Cash Collateral Access to Feb. 28
VERDE RESOURCES: Reports Larger Net Loss of $2.69 Million for Q2
VIGILANT HEALTH: Gets Final OK to Use Cash Collateral
VISTAGEN THERAPEUTICS: Posts Wider Net Loss of $14.1M in Q3 2025
WE BE BOOK'N: Seeks to Tap Neeleman Law Group as Bankruptcy Counsel
WINDWARD DESIGN: Gets Interim OK to Use Cash Collateral
WISCONSIN & MILWAUKEE: Unsecureds Will Get 50% Dividend in Plan
WITTENBERG LUTHERAN: Files Chapter 11 Bankruptcy in Illinois
XTI AEROSPACE: Obtains Required Consent From 3AM to Raise $10M
XTI AEROSPACE: To Issue 59,382 Shares to Exchange $250K Debt
YOGI INTERNATIONAL: Seeks to Hire Christopher Quinn as CRO
YOGI INTERNATIONAL: Seeks to Tap Tran Singh as Bankruptcy Counsel
[] Private Equity Cos. Tied to 21% Healthcare Bankruptcies in 2024
*********
138 GREENE: Seeks to Hire Backenroth Frankel & Krinsky as Counsel
-----------------------------------------------------------------
138 Greene Retail, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ Backenroth
Frankel & Krinsky LLP bankrupty counsel.
The firm will render these services:
(a) provide the Debtor with legal counsel regarding its powers
and duties in the continued operation of its business and
management of its property during the Chapter 11 case;
(b) prepare on behalf of the Debtor all necessary legal
documents which may be required with the Chapter 11 case;
(c) provide the Debtor with legal services regarding
formulating and negotiating a plan of reorganization with
creditors; and
(d) perform such other legal services for the Debtor as
required during the Chapter 11 case.
The firm's counsel will be paid at these hourly rates:
Abraham Backenroth, Attorney $750
Mark Frankel, Attorney $695
Scott Krinsky, Attorney $650
Paralegal $250
In addition, the firm will seek reimbursement for expenses
incurred.
On or about January 24, 2025, the firm received a retainer of
$30,000 from the Debtor.
Mr. Frankel disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Mark Frankel, Esq.
Backenroth Frankel & Krinsky, LLP
488 Madison Avenue, Floor 23
New York, NY 10022
Telephone: (212) 593-1100
About 138 Greene Retail
138 Greene Retail, LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10129) on January 27,
2025, listing up to $50 million in both assets and liabilities.
Honorable Bankruptcy Judge Philip Bentley handles the case.
Mark Frankel, Esq., at Backenroth Frankel & Krinsky, LLP represents
the Debtor as counsel.
145 NAVARRO: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: 145 Navarro LLC
3 Sugar Creek Center Blvd Suite 100
Sugar Land, TX 77478
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 25-90011
Judge: Hon. Christopher M Lopez
Debtor's Counsel: Susan Tran Adams, Esq.
TRAN SINGH, LLP
2502 La Branch St.
Houston TX 77004
Phone: (832) 975-7300
E-mail: stran@ts-llp.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Kunal Mody as member.
The Debtor submitted a list of its 20 largest unsecured creditors,
but the list was blank.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/MGGXGZY/145_Navarro_LLC__txsbke-25-90011__0001.0.pdf?mcid=tGE4TAMA
31FO LLC: Seeks to Extend Plan Exclusivity to April 8
-----------------------------------------------------
31FO, LLC, asked the U.S. Bankruptcy Court for the Eastern District
of New York to extend its exclusivity periods to file a plan of
reorganization April 8, 2025.
The Debtor owns a substantial real estate asset located at 31 Fort
Hill, Lloyd Neck, New York, consisting of 10-acre property,
improved by a 37 room 25,000 square feet house, with an 18-car
garage, overlooking Cold Spring Harbor and the Long Island Sound
(the "Property").
The Debtor is a key financing source for the underlying settlement,
which resolved a complex partnership dispute principally between
Rakesh Bhargava of MangoTree Real Estate Holdings L.P. and David
DeRosa of IPA Asset Management LLC ("IPA"). The settlement calls
for payment by the Debtor and others in the total sum of
$8,591,948.55.
The Debtor explains that since the commencement of the bankruptcy
case, the Debtor and MangoTree have already entered into a consent
order granting limited stay relief to MangoTree for the purposes of
pursuing certain non-debtor assets.
In addition, the Debtor and MangoTree have exchanged a term sheet
providing for the sale of the Property pursuant to a confirmed
Chapter 11 plan following an extensive marketing campaign, with
proposed benchmarks for the various steps needed to simultaneously
move the sale process and the confirm process forward.
In the meantime, the Debtor is seeking an extension of exclusivity
to preserve the status quo while the plan and sale processes
unfold.
The Debtor submit that the relevant Adelphia factors militate in
favor of the requested extension of the exclusive periods. The
Debtor is making progress on all fronts, although it will take some
time to complete negotiations with MangoTree and arrange for a
high-end marketing program to maximize the value of the Property.
About 31FO LLC
31FO LLC was organized in 2018 as a New York limited liability
company to own and develop real property. The Debtor is the fee
simple owner of real property located at 31 Fort hill, Lloyd Neck,
NY 10073 having an appraised value of $23 million.
31FO LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. E.D.N.Y. Case No. 24-73893) on Oct. 10, 2024. In the
petition filed by David D. DeRosa, as managing member, the Debtor
reports total assets of $23,000,000 and total liabilities of
$12,841,948.
The Honorable Bankruptcy Judge Robert E. Grossman handles the
case.
The Debtor is represented by:
Kevin Nash, Esq.
GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP
125 Park Ave
New York, NY 10017-5690
Email: knash@gwfglaw.com
3784 LLC: Seeks Chapter 11 Bankruptcy Protection in Florida
-----------------------------------------------------------
On February 14, 2025, 3784 LLC filed Chapter 11 protection in the
U.S. Bankruptcy Court for the Southern District of Florida.
According to court filing, the Debtor reports $6,243,947 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About 3784 LLC
3784 LLC owns two properties: one located at 1934 22nd Ave, Vero
Beach, FL, valued at $4.1 million, and another at 1550 Nectarine
Street, Fernandina Beach, FL 32034, valued at $6.6 million.
3784 LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. ) on February 14, 2025. In its petition, the Debtor
reports total assets of $10,726,000 and total liabilities of
$6,243,947.
Honorable Bankruptcy Judge Scott M. Grossman handles the case.
The Debtor is represented by:
Brian K. McMahon, Esq.
BRIAN K. MCMAHON, PA
1401 Forum Way, Suite 730
West Palm Beach, FL 33401
Tel: 561-478-2500
E-mail: briankmcmahon@gmail.com
491 BERGEN: Hires Klestadt Winters Jureller Southard as Counsel
---------------------------------------------------------------
491 Bergen St. Corporation and its affiliates seek approval from
the U.S. Bankruptcy Court for the Southern District of New York to
employ Klestadt Winters Jureller Southard & Stevens LLP as
counsel.
The firm will render these services:
(a) advise the Debtors with respect to their rights, powers,
and duties in the continued management of their assets;
(b) attend meetings and negotiate with representatives of
creditors and other parties in interest and advise and consult on
the conduct of the bankruptcy cases;
(c) take all necessary action to protect and preserve the
Debtors' estates;
(d) prepare on behalf of the Debtors such legal papers
necessary to the administration of their estates;
(e) assist the Debtors in their analysis and negotiation with
any third-party concerning matters related to the realization by
creditors of a recovery on claims and other means of realizing
value;
(f) represent the Debtors at all hearings and other
proceedings;
(g) assist the Debtors in their analysis of matters relating
to their legal rights and obligations with respect to various
agreements and applicable laws;
(h) review and analyze all applications, orders, statements,
and schedules filed with the court and advise the Debtors as to
their propriety;
(i) assist the Debtors in preparing pleadings and applications
as may be necessary in furtherance of their interests and
objectives;
(j) assist and advise the Debtors with regard to their
communications to the general creditor body regarding any proposed
Chapter 11 plan or other significant matters in these bankruptcy
cases;
(k) assist the Debtors with respect to consideration by the
court of any disclosure statement or plan prepared or filed
pursuant to section 1125 or 1121 of the Bankruptcy Code and take
any necessary action on behalf of them to obtain confirmation of
such plan; and
(l) perform such other legal services as may be required
and/or deemed to be in the interests of the Debtors in accordance
with their powers and duties as set forth in the Bankruptcy Code.
The firm's attorneys will be paid at these hourly rate:
Tracy Klestadt, Esq. $995
Ian Winters, Esq. $875
John Jureller, Jr., Esq. $875
Sean Southard, Esq. $875
Fred Stevens, Esq. $875
Brendan Scott, Esq. $795
Kathleen Aiello, Esq. $750
Lauren Kiss, Esq. $750
Stephanie Sweeney, Esq. $750
Christopher Reilly, Esq. $595
Andrew Brown, Esq. $595
Paralegals $275
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a total retainer of
$110,428 from the account of non-debtor John J. Sofia, Jr.
Mr. Klestadt 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:
Tracy L. Klestadt, Esq.
Klestadt Winters Jureller Southard & Stevens, LLP
200 West 41st Street, 17th Floor
New York, NY 10036
Telephone: (212) 972-3000
Facsimile: (212) 972-2245
Email: tklestadt@klestadt.com
About 491 Bergen St. Corporation
491 Bergen St. Corporation is a single asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
491 Bergen St. Corporation and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
25-10091) on January 22, 2025. In its petition, 491 Bergen St.
disclosed up to $50 million in both assets and liabilities.
Judge David S. Jones oversees the case.
Tracy L. Klestadt, Esq., at Klestadt Winters Jureller Southard &
Stevens, LLP serves as the Debtors' counsel.
8501 FORT HAMILTON: Seeks to Extend Plan Exclusivity to April 4
---------------------------------------------------------------
8501 Fort Hamilton Parkway Ltd., asked the U.S. Bankruptcy Court
for the Eastern District of New York to extend its exclusivity
period to file a plan of reorganization April 4, 2025.
The Debtor is the owner of certain residential property acquired in
1995 located at 8501 Fort Hamilton Parkway, Brooklyn, NY (the
"Property"), improved by a four-story residential apartment
building with 19 rooms per floor.
The Debtor explains that it is working toward a plan predicated
upon either a refinancing of the debt or a sale of the Property. To
that end the Debtor has been negotiating with a real estate advisor
over the terms of retention, and anticipate filing papers shortly
in support of that retention as well as motion to authorize the
sale and approve bid procedures.
The Debtor claims that it has been providing documents to Flagstar
pursuant to Rule 2004, and is putting together a budget which will
form the basis of a cash collateral stipulation. Because there is
no cash collateral stipulation as of yet, the Lender has moved for
stay relief. This motion will be returnable on the same date as the
Lender's motion, with the hope that by moving the case forward, an
agreement can be reached on all matters.
In the meantime, the Debtor is hereby seeking an extension of
exclusivity to preserve the status quo while the plan and sale
processes unfold.
The Debtor submit that the relevant Adelphia factors militate in
favor of the requested extension of the exclusive periods. The
Debtor is making progress on all fronts. While much work remains,
the Debtor's continuing efforts will be demonstrated at the hearing
on this motion.
About Fort Hamilton Parkway Ltd.
Fort Hamilton Parkway Ltd. is the owner of certain residential
property acquired in 1995 located at 8501 Fort Hamilton Parkway,
Brooklyn, NY. The Property is improved by a four-story residential
apartment building with 19 rooms per floor.
8501 Fort Hamilton Parkway Ltd. sought Chapter 11 protection
(Bankr. E.D.N.Y. Case No. 24-44150) on Oct. 4, 2024.
The Honorable Bankruptcy Judge Nancy Hershey Lord handles the
case.
The Debtor is represented by:
Kevin Nash, Esq.
GOLDBERG WEPRIN FINKEL GOLSTEIN LLP
125 Park Ave
New York, NY 10017-5690
E-mail: knash@gwfglaw.com
9029 NEW YORK: Files Chapter 11 Bankruptcy in New Jersey
--------------------------------------------------------
On February 14, 2025, 9029 New York Avenue LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of New
Jersey.
According to court filing, the Debtor reports between $500,000
and $1 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About 9029 New York Avenue LLC
9029 New York Avenue LLC is a single asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
9029 New York Avenue LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 25-11485) on February 14,
2025. In its petition, the Debtor reports estimated assets between
$1 million and $10 million and estimated liabilities between
$500,000 and $1 million.
The Debtor is represented by:
Russell L. Low, Esq.
LOW AND LOW
505 Main Street
Hackensack, NJ 07601
Tel: 201-343-4040
Fax: 201-488-5788
E-mail: Rbear611@aol.com
AFINITI LTD: Appoints New CEO Amid Post-Bankruptcy Recovery
-----------------------------------------------------------
CX Today reports that Afiniti has named Jerome Kapelus as its new
CEO as the company works to regain stability following its recent
bankruptcy. He succeeds Hassan Afzal, who will transition into a
strategic advisory role.
Kapelus brings 25 years of experience in financial leadership and
business transformation. He previously served as Chief Financial
Officer at Quartet Health and TCGplayer, which was later acquired
by eBay. Most recently, he was President of PWCC Marketplace, where
he oversaw its acquisition by Fanatics and its integration, the
report states.
"It's an honor to lead Afiniti," Kapelus said, recognizing Afzal's
contributions. "I look forward to building on his legacy by
investing in advanced AI technologies that create real value for
our customers and optimize their customer experience."
Afiniti continues to serve major brands like AT&T, Verizon, and
Virgin with its AI-driven call routing solutions. However, as the
contact center industry moves to the cloud, competition has
intensified, with tech giants like AWS, Google, and Microsoft
reshaping the market.
In November 2024, Afiniti filed for bankruptcy in Delaware due to
financial pressures. The company exited Chapter 15 in just over a
month, pledging to expand its portfolio to stay competitive.
Kapelus'appointment signals a strategic move toward stability and
innovation. Vista Credit Partners, one of Afiniti’s key lenders,
welcomed the leadership change.
"Jerome is a proven leader with a strong track record of driving
transformation and growth,” said David Flannery, President of
Vista Credit Partners and Chairman of Afiniti's Board of Directors.
"He is the right choice to guide Afiniti through this next stage."
To stay relevant, Afiniti must evolve beyond its core AI-powered
routing technology. While it has expanded into industry-specific
and omnichannel solutions, the rise of integrated CCaaS platforms
has increased competition.
As businesses prioritize generative and predictive AI, Afiniti must
clearly define its value proposition. In an industry where AI
promises have often outpaced actual results, demonstrating
measurable impact will be critical.
The key question is whether Afiniti will continue with its existing
approach or undergo a major transformation. One thing is
certain—success will require more than just recovery; it will
demand reinvention, according to CX Today.
About Afiniti Ltd.
Afiniti Ltd. provides management consultancy services.
Afiniti Ltd. sought relief under Chapter 15 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 1:24-bk-12539) on Nov. 3, 2024, to
seek U.S. recognition of the liquidation proceedings in Bermuda.
The Debtor's U.S. counsel:
Kara Hammond Coyle
Young Conaway Stargatt & Taylor LLP
302-571-6600
kcoyle@ycst.com
ALCHEMY 365: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Alchemy 365, Inc.
d/b/a PowerTen Fitness
d/b/a PowerTen
d/b/a Alchemy
d/b/a Alchemy 365
d/b/a Alchemy 365, LLC
2432 W 32nd Ave
Denver, CO 80211
Business Description: Alchemy 365, operating under various names
including PowerTen Fitness and Alchemy, is a
Denver-based fitness company offering group
classes that integrate yoga, strength
training, and cardio. The Company provides
these services at two Denver locations: LoHi
at 2432 W 32nd Ave and Tennyson at 4144
Tennyson St.
Chapter 11 Petition Date: February 17, 2025
Court: United States Bankruptcy Court
District of Colorado
Case No.: 25-10797
Debtor's Counsel: Gabrielle G. Palmer, Esq.
ONSAGER | FLETCHER | JOHNSON | PALMER LLC
600 17th Street, Suite 425N
Denver, CO 80202
Tel: 303-512-1123
Email: gpalmer@ofjlaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Tyler Kent Quinn as CEO.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/Q35TKIA/Alchemy_365_Inc__cobke-25-10797__0008.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/WPWPKMA/Alchemy_365_Inc__cobke-25-10797__0001.0.pdf?mcid=tGE4TAMA
ALI A. ASKARI MD: Files Chapter 11 Bankruptcy in Arizona
--------------------------------------------------------
On February 14, 2025, Ali A. Askari MD PC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of
Arizona.
According to court filing, the Debtor reports $1,163,072 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 18,
2025 at 12:00 PM as a Telephonic Hearing.
About Ali A. Askari MD PC
Ali A. Askari MD PC is a medical practice that specializes in
cardiology, focusing on the diagnosis and treatment of
heart-related conditions. Dr. Ali Askari, the principal physician,
offers a range of cardiology services, including consultative
cardiology, catheterization, interventional cardiology,
and non-invasive cardiology.
Ali A. Askari MD PC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No.: 25-01263) on February
14, 2025. In its petition, the Debtor reports total assets of
$828,201 and total liabilities of $1,163,072.
Honorable Bankruptcy Judge Madeleine C. Wanslee handles the
case.
The Debtor is represented by:
Mark J. Giunta, Esq.
LAW OFFICE OF MARK J. GIUNTA
531 East Thomas Road, Suite 200
Phoenix, AZ 85012
Tel: 602-307-0837
Fax: 602-307-0838
E-mail: markgiunta@giuntalaw.com
AMERICANN INC: Reports Increased Net Loss of $1.3M for Q1 2025
--------------------------------------------------------------
Americann, Inc. filed its Quarterly Report on Form 10-Q with the
Securities and Exchange Commission, reporting a net loss of $1.30
million on zero rental income for the three months ending Dec. 31,
2024. This compares to a net loss of $171,999 on rental income of
$475,629 for the same period in 2023.
As of Dec. 31, 2024, the Company had $10.14 million in total
assets, $6.99 million in total liabilities, and $3.15 million in
total stockholders' equity.
The Company had an accumulated deficit of $22,406,481 and
$21,107,773 at Dec. 31, 2024 and September 30, 2024, respectively.
Americann stated, "These matters, among others, raise substantial
doubt about the Company's ability to continue as a going concern.
While the Company is attempting to increase operations and generate
additional revenues, the Company's cash position may not be
significant enough to support the Company's daily operations.
Management intends to raise additional funds through the sale of
its securities.
"Management believes that the actions presently being taken to
further implement its business plan and generate additional
revenues provide the opportunity for the Company to continue as a
going concern. While the Company believes in the viability of its
strategy to generate additional revenues and in its ability to
raise additional funds, there can be no assurances to that effect.
The ability of the Company to continue as a going concern is
dependent upon the Company's ability to further implement its
business plan and generate additional revenues."
The full text of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1508348/000143774925004034/acan20241231_10q.htm
About AmeriCann
Headquartered in Denver, CO, Americann, Inc. (OTCQB:ACAN) designs,
develops, leases and operates state-of-the-art cannabis
cultivation, processing and manufacturing facilities. AmeriCann
uses greenhouse technology which is superior to the current
industry standard of growing cannabis in warehouse facilities under
artificial lights. According to industry experts, by capturing
natural sunlight, greenhouses use 25 percent fewer lights, and
utility bills are up to 75 percent less than in typical warehouse
cultivation facilities. As such, AmeriCann's Canopy System enables
cannabis to be produced with a greatly reduced carbon footprint,
making the final product less expensive. Additionally, greenhouse
construction costs can be nearly half of warehouse construction
costs. AmeriCann's business is committed to sustainable, clean
cultivation of cannabis and to social and environmental ethics,
transparency and accountability.
The Company had an accumulated deficit of $(21,107,773) and
$(19,853,444) at Sept. 30, 2024 and 2023, respectively, and had a
net loss of $(1,254,329) for the year ended Sept. 30, 2024.
AMN HEALTHCARE: Fitch Lowers Long-Term IDR to 'BB', Outlook Stable
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Fitch Ratings has downgraded the Long-Term Issuer Default Rating
(IDR) of AMN Healthcare Services, Inc. and subsidiary AMN
Healthcare, Inc. to 'BB' from 'BB+', affirmed the senior secured
revolving credit facility at 'BBB-' with a Recovery Rating of 'RR1'
and downgraded the senior unsecured notes to 'BB'/'RR4' from
'BB+'/'RR4'. The Outlook is Stable. This reflects ongoing declines
in demand in its businesses, particularly in temporary nurse
staffing, due to cyclical industry contraction and share erosion.
Due to limited visibility on stabilization, Fitch expects leverage
to remain in the 2.5x-3.5x range over the rating horizon,
appropriate for an IDR of 'BB' rather than 'BB+', as revised from
its previous expectation of AMN sustaining leverage below 2.5x by
2025. The 'BB' IDR considers AMN's top three market position in
U.S. healthcare staffing, moderate leverage, strong FCF and
commitment to deleveraging, offset by limited end-market
diversification and the challenging dynamics of a highly
competitive, cyclical business.
Key Rating Drivers
Healthcare Staffing Solutions Leader: AMN is one of the largest
U.S. staffing providers of travel nurses, temporary nurses, locum
tenens and allied healthcare professionals. Despite recently ceding
some share, significant historical growth is a positive, with AMN
tripling revenue from about $1.0 billion and more than tripling
EBITDA from under $100 million over the past decade.
The expanding Technology & Workforce Solutions (TWS) segment now
contributes EBITDA in league with the core Nurse & Allied Solutions
(NAS) segment, carries AMN's highest margins, and offers
diversification given the majority of EBITDA is generated by the
NAS and Physician & Leadership Solutions (PLS) segments. An
expanding product line and increasing operational integration with
clients should also be positives for client retention and recurring
revenue.
Outlook Reflects Rebasing of Demand: AMN benefitted materially when
the pandemic disrupted the healthcare nursing labor market in
2021-2022, driving a surge in demand for temporary hospital nurse
staffing, but health systems in 2023-2024 improved full-time nurse
hiring and retention materially, with some even insourcing
temporary nurse staffing capabilities. Fitch believes this has
driven a deeper reset in temporary staffing agency demand than many
expected, with declines in billable hours and bill rates driving
AMN's EBITDA down from its 2022 peak by over 30% in 2023 and likely
by more in 2024.
With some health systems still reducing temporary staffing use and
visibility on stabilization still limited, Fitch now expects
declines in the NAS segment to persist for 12-18 months before
stabilizing in 2026 and EBITDA growth resuming in 2027. Fitch
expects locum tenens demand to recover sooner amid physician
shortages, driving stabilization in the PLS segment in 2026 and
growth in 2027. While high-margin, fee-based revenue from vendor
management systems (VMS) declined along with NAS demand moderating
in 2024, Fitch assumes AMN's TWS unit will stabilize in 2026 and
generate EBITDA growth again in 2027.
Free Cash Flow Remains Solid: AMN's 'BB' IDR is supported by its
history of positive FCF over the full economic cycle, with FCF
rising from nominally positive levels a decade ago to over $250
million in 2023. Fitch expects staffing companies with well-managed
balance sheets can sustain positive FCF throughout the cycle as
they can pass along much of their costs and flex labor expense amid
cyclical challenges. Accordingly, while EBITDA may be pressured in
the near term, Fitch still expects AMN to generate FCF in the $150
million-$200 million range over its forecast period, equating to a
healthy 6%-7% of revenue.
Increase in Leverage Likely Limited: Fitch views AMN's commitment
to sub-2.5x net leverage as a positive. After reducing EBITDA
estimates to reflect a later rebound in demand, Fitch now sees
EBITDA leverage rising from 2.3x at YE 2023 to 3.2x at YE 2024 and
3.5x at YE 2025, then declining within the 2.5x-3.0x range in
2026-2027. This reflects Fitch's belief that AMN will primarily use
its FCF in the near term to repay debt, without material
debt-funded M&A or share purchases. It also reflects its view that
the structural U.S. nursing shortage will support AMN's return to
EBITDA growth by 2027.
Pausing Growth via Debt-Funded M&A: As noted above, while Fitch
expects AMN to abstain from any material debt-funded M&A until it
reduces net leverage below 2.5x, acquisitions were a focus in
2018-2023, and M&A remains a key part of its long-term growth
strategy. While this has entailed integration and investment risk
from acquiring assets with varied operational profiles, it has also
diversified the company well beyond travel nursing, adding growth
assets including language interpretation, telehealth, healthcare
software and locum tenens (physician staffing) solutions.
Derivation Summary
Fitch believes AMN is positioned properly at the 'BB' IDR level
given its leading (top three) market position, some business
diversification (it offers not only staffing but also higher-margin
labor technology solutions), meaningful positive FCF and moderate
EBITDA leverage.
Relative to Team Health Holdings, Inc. (CCC+), which operates
outsourced hospital physician staffing operations focused on ED
medicine and anesthesiology, AMN has significantly lower leverage,
higher EBITDA margins and FCF margins, and meaningfully higher
interest coverage.
Relative to other business services issuers rated by Fitch, AMN has
a higher mix of transactional revenue, which can drive greater
cyclicality at points in the economic cycle. While an industry
reset from post-pandemic normalization of healthcare temporary
staffing demand has driven operating declines at AMN in 2023 and,
to a lesser extent, in 2024, recent weakness in AMN's financial
performance also reflects some erosion of market share that Fitch
will monitor.
In applying Fitch's Parent and Subsidiary Linkage Rating Criteria,
Fitch views AMN Healthcare Services, Inc. and subsidiary AMN
Healthcare, Inc. as having the same stand-alone credit profile and
thus are rated the same. In a prior analysis, Fitch considered the
subsidiary of AMN as the stronger of the two entities due to its
greater proximity to the operating assets.
Legal ring-fencing between the entities was and is considered open,
while access and control were and are viewed as strong, reflecting
their common management. The entities are rated the same regardless
of the applied approach.
Key Assumptions
- Revenues decline at moderating rates through 1H26 due to
normalization of post-pandemic healthcare staffing demand and
competition, weighing on both bill rates and volumes, with
stabilization in 2H26 and a return to mid-single-digit growth in
2027;
- EBITDA margins decline from an estimated 11.3% in 2024 to 10.0%
in 2025 and 9.7% in 2026 due to declines in revenue, with a
recovery in revenue driving an increase to 10.5% in 2027;
- Capex declining from an estimated 2.4% of revenue in 2024 to
about 2.0% in 2025-2026, then reverting to 2.4% of revenue in
2027;
- Working capital, after billing delays from an ERP system
conversion in 2023, is a source of cash adding about $50 million in
2024, $25 million in 2025 and $10 million in 2026, and is
essentially neutral to cash in 2027;
- EBITDA leverage increases to 3.2x as of YE 2024 and 3.5x as of YE
2025 due to declining EBITDA, then declines to 3.1x by YE 2026, all
reflecting offsets to declines in EBITDA from essentially all of
FCF (about $150 million-$210 million annually) funding material
debt reduction in 2024-2026, with further deleveraging to 2.5x,
driven by EBITDA growth, resuming in 2027;
- M&A, after the $300 million acquisition of MSDR completed in
November 2023, is paused until FCF is assumed to fund $100 million
of acquisitions in 2027;
- No share buybacks or dividends over the rating horizon;
- Other cash outflows limited to $5 million paid annually in
2025-2027 on account of non-recurring charges for restructuring,
litigation, and other matters.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch's expectation that EBITDA leverage is likely to be
sustained above 3.5x;
- Fitch's expectation that EBITDA margins are likely to be
sustained below 9.0%;
- Fitch's expectation that FCF margins are likely to be sustained
below 4.0%;
- Fundamental drivers suggesting sustained deterioration in
competitive position, including staffing volumes, bill rates or
margins.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch's expectation that EBITDA leverage is likely to be
sustained below 2.5x;
- Fitch's expectation that EBITDA margins are likely to be
sustained above 12.0%;
- Fitch's expectation that FCF margins are likely to be sustained
above 5.0%;
- Fundamental drivers suggesting sustained improvement in
competitive position, including staffing volumes, bill rates or
margins.
Liquidity and Debt Structure
As of Sept. 30, 2024, liquidity totaled about $475 million, with
$31 million of cash and $445 million available under AMN's $750
million senior secured revolver due February 2028 (net of $285
million drawn and $20 million of letters of credit). Including
annual FCF of about $150 million-$200 million that Fitch expects
AMN to generate over its rating horizon, liquidity is sufficient to
operate the business and repay all borrowings under the revolver.
Fitch expects such debt reduction is likely with AMN likely
abstaining from share repurchases and material debt-funded M&A in
the near term.
AMN's capital structure consists of the $750 million senior secured
revolver due February 2028 (currently S+150) noted above, $500
million of 4.625% senior unsecured notes due October 2027, and $350
million of 4.000% senior unsecured notes due April 2029.
Issuer Profile
A U.S.-based healthcare staffing and talent solutions provider, AMN
is one of the largest providers of travel nursing and locum tenens
services for hospitals and other healthcare facilities. It also
offers staffing and technology-enabled solutions for the healthcare
industry.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
AMN Healthcare
Services, Inc. LT IDR BB Downgrade BB+
AMN Healthcare, Inc. LT IDR BB Downgrade BB+
senior unsecured LT BB Downgrade RR4 BB+
senior secured LT BBB- Affirmed RR1 BBB-
AR ACQUISITIONS: U.S. Trustee Unable to Appoint Committee
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The U.S. Trustee for Region 18 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of AR Acquisitions, LLC.
About AR Acquisitions
AR Acquisitions, LLC, a company in Bellevue, Wash., filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. W.D. Wash. Case No. 24-12986) on November 22, 2024. In the
petition, the Debtor reported between $1 million and $10 million in
both assets and liabilities.
Judge Christopher M. Alston oversees the case.
The Debtor is represented by:
Dennis McGlothin, Esq.
Western Washington Law Group PLLC
01485 Northeast Sixth Street, #1820
Bellevue, WA 98004
Tel: 425-728-7296
Email: docs@westwalaw.com
B.G.P. INC: Court OKs Interim Use of Cash Collateral
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B.G.P., Inc. and its affiliates got the green light from the U.S.
Bankruptcy Court for the Middle District of Florida, Tampa
Division, to use cash collateral.
The interim order signed by Judge Roberta Colton authorized the
companies to use cash collateral to pay the expenses set forth in
their projected budget, plus an amount not to exceed 10% for each
line item.
DWB Holdings Group, LLC, as successor to Truist Bank, asserts an
interest in the cash collateral, including inventory and accounts.
The lender claims it is owed approximately $9.6 million.
As protection, DWB and other creditors with interest in the cash
collateral were granted a replacement lien on the cash collateral
and all other post-petition assets of the companies, to the same
extent and with the same validity and priority as their
pre-bankruptcy petition lien.
The next hearing will be held on March 6.
DWB is represented by:
Edward J. Peterson, Esq.
Johnson Pope Bokor Ruppel & Burns, LLP
400 N. Ashley Drive, Suite 3100
Tampa, FL 33602
Telephone: (813) 225-2500
Email: edwardp@jpfirm.com
About B.G.P. Inc.
B.G.P., Inc. and its affiliates, BGP Warehouse Indiana, LLC and
B.G.P. Stores, LLC, filed Chapter 11 petitions (Bankr. M.D. Fla.
Lead Case No. 25-00412) on January 23, 2025. At the time of the
filing, B.G.P., Inc. reported between $10 million and $50 million
in both assets and liabilities.
Judge Roberta A. Colton oversees the cases.
The Debtors are represented by:
Scott A. Stichter
Stichter, Riedel, Blain & Postler, P.A.
110 E. Madison St., Suite 200
Tampa, FL 33602
Tel: (813) 229-0144
Email: sstichter@srpb.com
BOVAN ENTERPRISES: Gets OK to Use $50K in Cash Collateral
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The U.S. Bankruptcy Court for the Eastern District of Michigan
granted Bovan Enterprises, LLC interim approval to use up to
$50,000 in cash collateral for operating expenses between Feb. 10
and 26.
A final hearing is scheduled for Feb. 26.
About Bovan Enterprises
Bovan Enterprises, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-30084-jda) on
January 17, 2025, with up to $500,000 in assets and up to $10
million in liabilities. Waneita Bovan, member, signed the
petition.
Judge Joel D. Applebaum oversees the case.
The Debtor is represented by Peter T. Mooney, Esq., at Simen,
Figura & Parker.
BUFFALO NEWSPRESS: Files Emergency Bid to Use Cash Collateral
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Buffalo Newspress Inc. asked the U.S. Bankruptcy Court for the
Western District of New York for authority to use $989,000 in cash
collateral through March 2.
The Debtor needs to use cash collateral to pay ongoing wages,
insurance and utility costs and other ongoing operating costs.
On the Petition Date, the Debtor was indebted to S&T Bank on a
secured basis in the approximate principal amount of$172,000,
exclusive of interest, costs, fees and expenses.
The Debtor and the Bank entered into a Loan and Security Agreement
dated February 19, 2019, by which the Bank extended to Debtor a
line of credit in the maximum amount of $3 million. This loan
arrangement was modified the line of credit to an on demand,
secured line of credit by a series of agreements entered into on or
about March of 2020. The modification also added an equipment line
of credit in the amount of $500,000.
The Bank filed several UCC-l financing statements with the New York
State Secretary of State, including on February 13, 2019, and again
on April 1, 2022.
On the Petition Date, the Debtor was indebted to Celtic Capital
Corporation on a secured basis in the approximate principal amount
of $1.3 million, exclusive of interest, costs, fees and expenses.
On the Petition Date, the Debtor was indebted to Change Capital
Corporation on a secured basis in the approximate principal amount
of $533,000, exclusive of interest, costs, fees and expenses.
In connection with a certain Master Business Loan Agreement dated
October 23, 2023, by and between the Debtor and Change Capital, the
Debtor granted a security interest to Change Capital in, inter
alia, accounts, goods, and products and proceeds thereof. Change
Capital filed a UCC- 1 with the New York Secretary of State in
October 2023.
Change Capital is also secured by a mortgage upon the Property,
which mortgage was duly filed in the Erie County Clerk’s Office
on or about November 30, 2023.
As adequate protection, the Debtor proposes to grant Bank, Celtic
and Change Capital, effective as of the Petition Date, roll-over or
replacement liens granting security to the same extent and with
respect to the same assets as served as collateral for the
Prepetition Indebtedness.
A copy of the motion is available at https://urlcurt.com/u?l=miOieS
from PacerMonitor.com.
About Buffalo Newspress Inc.
Buffalo Newspress Inc. also known as BNP Empower, is a full-service
printing solutions provider based in Buffalo, NY, offering digital,
web offset, and other printing services with 24/7 operations.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D>. N.Y. Case No. 25-10125) on
February 5, 2025. In the petition signed by Thomas J. Majerski,
president, the Debtor disclosed up to $10 million in both assets
and liabilities.
Judge Carl L. Bucki oversees the case.
Kevin R. Lelonek, Esq., at GROSS SHUMAN PC, represents the Debtor
as legal counsel.
CAMPBELL FAMILY: Gets OK to Use Cash Collateral Until March 28
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Campbell Family Enterprises, Inc. received interim approval from
the U.S. Bankruptcy Court for the Northern District of Mississippi
to use cash collateral until March 28.
The company requires the use of cash collateral to continue
operations, acquire goods and services, and pay other necessary and
essential business expenses.
Cleveland State Bank asserts an interest in the company's real and
personal property, including cash collateral, which constitutes
proceeds of the collateral and therefore, constitutes cash
collateral under 11 U.S.C. 363(a).
As adequate protection, Cleveland will be granted a replacement
security interest in, and liens on, all post-petition acquired
property of the company's estate that is the same type of property
that the bank holds a pre-bankruptcy interest, lien or security
interest to the extent of the validity and priority of such
interests, liens, or security interests.
A final hearing is set for March 27.
About Campbell Family Enterprises Inc.
Campbell Family Enterprises, Inc. sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Miss. Case No.
25-10364-SDM) on February 4, 2025. In the petition signed by
Phillip Campbell, member, the Debtor disclosed up to $500,000 in
assets and up to $1 million in liabilities.
Judge Selene D. Maddox oversees the case.
Thomas C. Rollins, Jr., Esq., at The Rollins Law Firm, PLLC,
represents the Debtor as legal counsel.
CAN BROTHERS: Gets OK to Use Cash Collateral Until April 30
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CAN Brothers Construction, Inc. received approval from the U.S.
Bankruptcy Court for the District of New Hampshire to use cash
collateral for the period from March 1 to April 30.
The Debtor needs to use cash collateral to pay post-petition costs
and expenses including payroll and monthly operating expenses
incurred in the ordinary course of business and making adequate
protection payments to the extent provided for in the budget,
during the period between March 1, 2025 and April 30, 2025.
Bank of New Hampshire and the Small Business Association assert an
interest in the cash collateral.
Bank of NH holds a blanket lien in first priority position on the
Debtor's collateral in the remaining amount of $101,706. The Debtor
sold a piece of equipment with court approval and paid the sale
proceeds of $110,000 to Bank of NH reducing the amount of its
secured lien. The Debtor believes that the SBA holds a similar
secured position on the Debtor's collateral in the form of an EIDL
loan in the amount of $523,000.
As adequate protection, the Debtor will continue to make monthly
adequate protection payments in the amount of $1,650 to Bank of New
Hampshire starting April 1, 2024 and $2,500 to the SBA starting May
1.
The Debtor will grant the Potential Record Lienholders a
replacement lien in, to and on the Debtor's post-petition property
of the same kinds and types as the collateral in, to and on which
they held valid and enforceable, perfected liens on the Petition
Date.
About CAN Brothers Construction
CAN Brothers Construction, Inc., is a New Hampshire Corporation
with the principal place of business located at 120 Ridge Road,
Middleton, New Hampshire 03887.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.H. Case No. 24-10115) on February 26,
2024. In the petition signed by Charles W. Therriault, Jr.,
president, the Debtor disclosed up to $10 million in both assets
and liabilities.
Judge Kimberly Bacher oversees the case.
Eleanor Wm. Dahar, Esq., at Victor W. Dahar Professional
Association, represents the Debtor as legal counsel.
Bank of New Hampshire, as potential record lienholder, is
represented by:
Deborah A. Notinger, Esq.
Cleveland, Waters and Bass, P.A.
Two Capital Plaza, 5th Floor
P.O. Box 1137
Concord, NH 03302-1137
Tel: (603) 224-7761
Email: notingerd@cwbpa.com
CANVAS SARASOTA: Hires Gallardo Law Firm as Bankruptcy Counsel
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Canvas Sarasota, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Florida to employ Gallardo Law Firm as
counsel.
The firm will provide these services:
(a) advise the Debtor with respect to its powers and duties;
(b) advise the Debtor with respect to its responsibilities in
complying with U.S. Trustee's Opearting Guideline and Reporting
Requirements and with the rules of the court;
(c) prepare legal documents necessary in the administration of
the case;
(d) protect the interests of the Debtor in all matters pending
before the court; and
(e) represent the Debtor in negotiaton with its creditors in
the preparation of a plan.
Ismael Labrador, Esq., an attorney at Gallardo Law 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 through:
Ismael Jose Labrador, Esq.
Gallardo Law Firm
8492 SW 8 St.
Miami, FL 33144
Telephone: (305) 261-7000
Email: isameljose@gallardolawyers.com
About Canvas Sarasota
Canvas Sarasota, LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-11395) on February
10, 2025. In the petition signed by Pablo Arce, manager, the Debtor
disclosed up to $50,000 in estimated assets and up to $10 million
in estimated liabilities.
Ismael Jose Labrador, Esq., at Gallardo Law Firm serves as the
Debtor's counsel.
CENTENNIAL HOUSING: Plan Exclusivity Period Extended to March 28
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Judge Joseph N. Callaway of the U.S. Bankruptcy Court for the
Eastern District of North Carolina extended Centennial Housing &
Community Services Corporation's exclusive periods to file a plan
of reorganization and obtain acceptance thereof to March 28 and May
27, 2025, respectively.
As shared by Troubled Company Reporter, the Debtor requests that
the period in which it has the exclusive right to file a Plan of
Reorganization under Section 1121(b) of the Bankruptcy Code and the
acceptance period under Section 1121(c)(3) of the Bankruptcy Code
each be extended for a period of approximately thirty 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
COASTAL GROWERS: Files Chapter 11 Bankruptcy in Alabama
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On February 13, 2025, Coastal Growers Holdings LLC filed Chapter
11 protection in the U.S. Bankruptcy Court for the Southern
District of Alabama.
According to court filing, the Debtor reports between $100
million and $500 million in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
About Coastal Growers Holdings LLC
Coastal Growers Holdings LLC is a limited liability company.
Coastal Growers Holdings LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Ala. Case No. 25-10391) on
February 13, 2025. In its petition, the Debtor reports estimated
assets between $50 million and $100 million and estimated
liabilities between $100 million and $500 million.
Honorable Bankruptcy Judge Henry A. Callaway handles the case.
The Debtor is represented by:
Edward J. Peterson, Esq.
JOHNSON, POPE, BOKOR, RUPPEL & BURNS, LLP
400 N Ashley Dr. #3100
Tampa, FL 33602
Tel: 813-225-2500
Fax: 813-223-7118
COLLECTIVE SPEAKERS: Files Chapter 11 Bankruptcy in Colorado
------------------------------------------------------------
On February 14, 2025, Collective Speakers LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of
Colorado. According to court filing, the
Debtor reports $1,956,440 in debt owed to 50 and 99 creditors.
The petition states funds will be available to unsecured
creditors.
About Collective Speakers LLC
Collective Speakers LLC is a full-service speakers bureau
specializing in organizing impactful spoken word and lecture
events. The bureau represents a diverse roster of artists and
thought leaders who address a wide range of topics, including
addiction, social justice, diversity, education, feminism, mental
health, and more. In addition to event organization, Collective
Speakers offers coaching services. With over 27 years in the
speaking industry, the bureau provides speech coaching sessions and
speech writing services to help individuals enhance their speaking
skills and craft compelling presentations.
Collective Speakers LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Col. Case No.: 25-10783) on February
14, 2025. In its petition, the Debtor reports total assets of
$25,000 and total liabilities of $1,956,440.
Honorable Bankruptcy Judge Kimberley H. Tyson handles the case.
The Debtor is represented by:
Keri L. Riley, Esq.
KUTNER BRINEN DICKEY RILEY PC
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Tel: 303-832-2400
E-mail: klr@kutnerlaw.com
CUT & FILL: Court Extends Cash Collateral Access to March 6
-----------------------------------------------------------
Cut & Fill, LLC received another extension from the U.S. Bankruptcy
Court for the Northern District of Illinois, Eastern Division to
use cash collateral.
The sixth interim order authorized the company to use cash
collateral until March 6 to pay ordinary business expenses
consistent with its budget, which shows total projected expenses of
$50,714.70 for February.
Pension Fund of Cement Masons' Union Local No. 502 was granted
replacement liens on all post-petition property of the company,
including cash collateral, with the same priority and validity as
its pre-bankruptcy liens.
As additional protection, CM Funds will receive payment of $1,000
by Feb. 28.
Meanwhile, the court ordered Cut & Fill to pay the contributions
and dues attributable to work performed post-petition to CM Funds
and the Laborers' Pension & Welfare Fund.
The next hearing is scheduled for March 5.
About Cut & Fill
The Cut & Fill, LLC has operated a concrete business since 2019.
Rachel McCuen, who serves as the company's managing and sole
member, supervises the company's day-to-day operations in Volvo,
Ill.
Cut & Fill filed Chapter 11 petition (Bankr. N.D. Ill. Case No.
24-13457) on Sept. 12, 2024, listing $183,243 in total assets and
$1,492,053 in total liabilities. Rachel McCuen, president of Cut &
Fill, signed the petition.
Judge Timothy A. Barnes oversees the case.
The Debtor is represented by David R. Herzog, Esq., at the Law
Offices of David R. Herzog.
DANG LA CONSTRUCTION: Seeks Subchapter V Bankruptcy in Texas
------------------------------------------------------------
On February 14, 2025, Dang La Construction and Associates LLC
filed Chapter 11 protection in the U.S. Bankruptcy Court for
the Southern District of Texas.
According to court filing, the Debtor reports $1,212,340 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About Dang La Construction and Associates LLC
Dang La Construction and Associates LLC is a limited liability
company.
Dang La Construction and Associates LLC sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D. Tex. Case No. 25-30853) on February 14, 2025. In its
petition, the Debtor reports total assets of $60,305 and total
liabilities of $1,212,340.
Honorable Bankruptcy Judge Alfredo R. Perez handles the case.
The Debtor is represented by:
Susan Tran Adams, Esq
TRAN SINGH, LLP
2502 La Branch St.
Houston TX 77004
E-mail: stran@ts-llp.com
DATASEA INC: Reports $1.14 Million Net Loss for Q2 2025
-------------------------------------------------------
Datasea Inc. submitted its Quarterly Report on Form 10-Q to the
Securities and Exchange Commission, revealing a net loss to the
company of $1.14 million on revenues of $20.46 million for the
three months ended Dec. 31, 2024. In comparison, Datasea posted a
net loss to the company of $1.83 million on revenues of $11.35
million for the same period last year.
For the six months ended Dec. 31, 2024, the Company reported a net
loss to the company of $3.10 million on revenues of $41.54 million,
as compared to a net loss to the company of $1.86 million on
revenues of $18.23 million for the six months ended Dec. 31, 2023.
As of Dec. 31, 2024, the Company had $5.90 million in total assets,
$2.68 million in total liabilities, and $3.23 million in total
stockholders' equity.
The Company had an accumulated deficit of approximately $42.54
million as of Dec. 31, 2024, and negative cash flow from operating
activities of approximately $1.59 million and $5.63 million for the
six months ended Dec. 31, 2024 and 2023, respectively. According
to the Company, the historical operating results including
recurring losses from operations raise substantial doubt about the
Company's ability to continue as a going concern.
"If deemed necessary, management could seek to raise additional
funds by way of admitting strategic investors, or private or public
offerings, or by seeking to obtain loans from banks or others, to
support the Company's research and development ("R&D"),
procurement, marketing and daily operation. While management of
the Company believes in the viability of its strategy to generate
sufficient revenues and its ability to raise additional funds on
reasonable terms and conditions, there can be no assurances to that
effect. The ability of the Company to continue as a going concern
depends upon the Company's ability to further implement its
business plan and generate sufficient revenue and its ability to
raise additional funds by way of a public or private offering.
There is no assurance that the Company will be able to obtain funds
on commercially acceptable terms, if at all. There is also no
assurance that the amount of funds the Company might raise will
enable the Company to complete its initiatives or attain profitable
operations. If the Company is unable to raise additional funding
to meet its working capital needs in the future, it may be forced
to delay, reduce or cease its operations," Datasea stated in the
Report.
The full text of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1631282/000121390025013537/ea0230219-10q_datasea.htm
About Datasea
Headquartered in Beijing, People's Republic of China, Datasea Inc.
-- http://www.dataseainc.com-- is a technology company
incorporated in Nevada, USA, on Sept. 26, 2014, with subsidiaries
and operating entities located in Delaware, US, and China that
provides intelligent acoustics (including ultrasound, infrasound,
directional sound, and Schumann resonance), 5G messaging and other
products and services to various corporate and individual
customers. The acoustic business offers a wide range of
cutting-edge products including high-quality sonic air disinfection
solutions, skin repair and beauty solutions, as well as sleep-aid
devices. The Company's products find extensive applications across
various industries and sectors, including sonic antivirus, sonic
beauty, sonic medical treatments, and sonic agriculture.
Los Angeles, California-based Kreit & Chiu CPA LLP, the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated Sept. 26, 2024, citing that the Company had an
accumulated deficit of $39.44 million and incurred a net loss from
operations of approximately $11.38 million as of and for the year
end June 30, 2024. The Company has had recurring losses from
operations which has raised substantial doubt about the Company's
ability to continue as a going concern.
For the years ended June 30, 2024 and 2023, the Company had a net
loss of approximately $11.38 million and $9.48 million,
respectively. The Company had an accumulated deficit of
approximately $39.44 million as of June 30, 2024, and negative cash
flow from operating activities of approximately $6.40 million and
$3.14 million for the years ended June 30, 2024 and 2023,
respectively.
DJK ENTERPRISES: Seeks to Extend Plan Exclusivity to May 31
-----------------------------------------------------------
DJK Enterprises, LLC, filed with the U.S. Bankruptcy Court for the
Southern District of Illinois to extend its exclusivity periods to
file a plan of reorganization and obtain acceptance thereof to May
31 and July 31, 2025, respectively.
The Debtor claims that its reorganization is proceeding at a pace
consistent with the size of the case and the complex and difficult
issues confronting the Debtor. The Debtor's Amended Plan of
Reorganization is set for trial on March 27, 2025.
The Debtor explains that Courts considering an extension of a
debtor's exclusive period also assess its liquidity and solvency.
Here, the Debtor has sufficient liquidity and is paying its
postpetition bills as they come due and has operated at a profit
each month it has been in bankruptcy.
The Debtor asserts that although it has made progress in the
prosecution of its chapter 11 case, the company does require
additional time to confirm its chapter 11 plan. The Debtor needs
additional time to build a consensual plan, which will be the focus
of discussions with EAF and all other interested parties. These
discussions are progressing, but more time and resources will have
to be devoted by the parties in furtherance thereof.
The Debtor further asserts that an extension of the Exclusive
Periods as requested herein will not prejudice any party in
interest, but rather will afford the Debtor an opportunity to
achieve and propose a confirmable chapter 11 plan. Failure to
extend the Exclusive Periods as requested herein would defeat the
very purpose of section 1121 of the Bankruptcy Code - i.e., to
provide the Debtor with a meaningful and reasonable opportunity to
negotiate with creditors and other parties in interest and propose
a confirmable chapter 11 plan.
DJK Enterprises, LLC is represented by:
Larry E. Parres, Esq.
John J. Hall, Esq.
LEWIS RICE LLC
600 Washington Ave., Suite 2500
St. Louis, MO 63101
Telephone: (314) 444-7600
Facsimile: (314) 612-7660
E-Mail: lparres@lewisrice.com
jhall@lewisrice.com
About DJK Enterprises
DJK Enterprises, LLC, operates in the traveler accommodation
industry. It conducts business under the names Thelma Keller
Convention Center, Holiday Inn Effingham and TK Grille Restaurant.
The company is based in Effingham, Ill.
DJK sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D. Ill. Case No. 24-60126) on August 9, 2024, with $10
million to $50 million in both assets and liabilities. Chris
Keller, DJK president and member, signed the petition.
Judge Laura K. Grandy oversees the case.
The Debtor is represented by Larry E. Parres, Esq., at Lewis Rice,
LLC.
DON ENTERPRISES: Case Summary & Nine Unsecured Creditors
--------------------------------------------------------
Debtor: DON Enterprises, Inc.
101 South Mercer St. Suite 210
New Castle, PA 16101
Business Description: DON Enterprises, Inc. is a nonprofit
organization focusing on community
revitalization, housing, and employment
opportunities for people with disabilities.
Through its range of programs and services,
DON Enterprises strives to foster a more
inclusive community while promoting
independence and integration into society.
Chapter 11 Petition Date: February 17, 2025
Court: United States Bankruptcy Court
Western District of Pennsylvania
Case No.: 25-20379
Debtor's Counsel: Kathryn L. Harrison, Esq.
CAMPBELL & LEVINE, LLC
310 Grant Street, Suite 1700
Pittsburgh, PA 15219
Tel: 412-261-0310
Fax: 412-261-5066
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Philip Berezniak as authorized
representative of the Debtor.
A full-text copy of the petition, which includes a list of the
Debtor's nine unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/4HZEJGI/DON_Enterprises_Inc__pawbke-25-20379__0001.0.pdf?mcid=tGE4TAMA
DORMIFY INC: Seeks to Hire Reliable as Claims and Noticing Agent
----------------------------------------------------------------
Dormify, Inc. seeks approval from the U.S. Bankruptcy Court for the
District of Delaware to employ Reliable Companies, doing business
as Reliable, as claims and noticing agent.
Reliable will oversee the distribution of notices and will assist
in the maintenance, processing, and docketing of proofs of claim
filed in the Chapter 11 case of the Debtor.
The firm will be paid at these rates:
Analyst $35 - $50
Consultant/Senior Consultant $65 - $165
Technology Consultant $65 - $90
Director $175
Solicitation Consultant $190
Director of Solicitation $195
In addition, the firm will seek reimbursement for expenses
incurred.
Justin Edelson, director at Reliable, 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:
Justin K. Edelson
Reliable Companies
Nemours Building
1007 Orange Street, Suite 110
Wilmington, DE 19801
Telephone: (302) 654-8080
About Dormify Inc.
Dormify, Inc. filed Chapter 11 petition (Bankr. D. Del. Case No.
24-12634) on November 18, 2024, with $1 million to $10 million in
assets and $10 million to $50 million in liabilities.
Judge Thomas M. Horan oversees the case.
The Debtor tapped Goldstein & McClintock, LLLP as counsel. Reliable
Companies is the Debtor's claims and noticing agent.
DUSOBOX CORP: To Sell Inventory to Precision Corr for $250,000
--------------------------------------------------------------
Dusobox Corporation seeks permission from the U.S. Bankruptcy Court
for the Middle District of Florida, Orlando Division, to sell
Inventory, free and clear of all liens, claims, encumbrances, and
interests.
The Debtor's Inventory include all of its operating assets, except
for all of Debtor’s right, title and interest in and to all
inventory, finished goods, raw materials, labels, Flexo ink,
outsourced inventory, digital ink, work in progress, consumable
material, and other inventories, including, without limiting, any
such items that were in existence, cash, accounts receivable, and
certain causes of action.
The Debtor wants to sell the Inventory to Precision Corr FL, LLC.
All of the Debtor’s Inventory is fully encumbered by the first
priority secured lien of Winter Park National Bank.
The Debtor and the Bank have engaged in arm’s-length discussions
with the Buyer regarding the sale and purchase of the Inventory,
including the finished goods shipped by the Buyer after the January
6, 2025 closing. The Debtor, the Bank and the Buyer have negotiated
a total purchase price of $250,000.
The Debtor and Bank have agreed to settle and waive any claims
against Precision Corr related to the Inventory, contingent upon
court approval.
The Debtor believes the purchase agreement will maximize the value
of the assets while resolving any open issues or potential claims
with Buyer and will increase the value of Debtor’s estate by
$250,000 for Inventory which has a very limited market.
The Debtor believes that the sale process and negotiations with
Buyer were conducted at arm’s length and in good faith, and that
the consideration to be paid for the Inventory is fair and
reasonable.
About Dusobox Corporation
Dusobox Corporation is a designer, engineer and manufacturer of
custom corrugated display solutions and product packaging. It is
based in Orlando, Fla.
Dusobox filed Chapter 11 petition (Bankr. M.D. Fla. Case No.
24-00391) on Jan. 29, 2024, with $1 million to $10 million in
assets and $10 million to $50 million in liabilities.
Judge Tiffany P. Geyer oversees the case.
Michael A. Nardella, Esq., at Nardella & Nardella, PLLC is the
Debtor's legal counsel.
DVKOCR TIGARD: Case Summary & 13 Unsecured Creditors
----------------------------------------------------
Debtor: DVKOCR Tigard, LLC
DBA Hampton Inn & Suites Tigard
11799 SW 69th Ave
Portland, OR 97223
Business Description: DVKOCR Tigard, LLC is a single asset real
estate debtor, as defined in 11 U.S.C.
Section 101(51B).
Chapter 11 Petition Date: February 17, 2025
Court: United States Bankruptcy Court
District of Oregon
Case No.: 25-30486
Judge: Hon. Peter C Mckittrick
Debtor's Counsel: Douglas R. Ricks, Esq.
SUSSMAN SHANK LLP
1000 SW Broadway
Suite 1400
Portland, OR 97205
Tel: 503-227-1111
E-mail: dricks@sussmanshank.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Alkesh R. Patel as manager of DVKOCR,
LLC.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/JBAMPAY/DVKOCR_Tigard_LLC__orbke-25-30486__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 13 Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Carver & Assoc $520,589
4177 Northeast
Expressway
Atlanta, GA 30340
Angie Alberts
Email: aalbert@carverassoc.com
Phone: 678-672-4719
2. Ascentium Pawnee Loan $336,314
23970 Highway 59N
Kingwood, TX 77339
Customer Service
Email: Service@AscentiumCapital.com
Phone: 800-864-4266
3. Sagar/Omkar Loan $113,326
2015 2nd Ave. Unit 2609
Seattle, WA 98121
Omkar Kasinadhuni
Tel: 617-480-5407
4. Lileni Lopez Loan $50,000
15820 SE Alder St.
Portland, OR 97233
Lileni Lope
Tel: 503-894-0949
5. Hilton Franchise $42,316
4649 Paysphere CIR
Chicago, IL 60674
Corporate Communications
Email: hiltonpr@hilton.com
Phone: 888-446-6677
6. Washington County $27,042
155 N 1st Ave Ste
130 MS8
Hillsboro, OR 97154
Customer Service
Email: at@washingtoncountyor.gov
Phone: 503-846-8801
7. Hallmark Financial Service $6,420
P.O. Box 610091
Dallas, TX
75261-0091
Customer Service
Email: claims@hallmarkgrp.com
Phone: 817-348-1600
8. City Of Tigard $5,350
13125 SW Hall Blvd
Tigard, OR 97223
Darren Black
Fax: 503-684-8840
Tel: 503-718-2574
9. Hd Supply Facilities Maintenance $3,728
PO Box 509058
San Diego, CA
92150-9058
Customer Care Dept
Email: customercare@hdsupply.com
Phone: 888-363-0357
10. Tualatin Valley $3,571
Water District
1850 SW 170th Ave
Beaverton, OR 97003
Carissa Sosa
Email: carissa.sosa@tvwd.org
Phone: 503-848-3000
11. Sysco Portland Inc $2,771
PO Box 2210
Wilsonville, OR 97070
Customer Service
Tel: 503-682-8700
12. Pride Disposal Company $1,292
P.O. Box 820
Sherwood, OR 97140
Customer Service
Tel: 503-625-6177
13. Quore LLC $229
PO Box 6843
Carol Stream, IL
60197-6843
General Inquiries
Email: Support@quore.com
Phone: 877-974-9774
EAGLE HIGHLAND: Case Summary & 17 Unsecured Creditors
-----------------------------------------------------
Debtor: Eagle Highland Pharmacy Inc.
9010 Crawfordsville Road
Indianapolis, IN 46234
Business Description: Eagle Highland Pharmacy Inc., located in
Indianapolis, provides a wide range of
pharmacy services, including prescription
medications, compounded prescriptions,
medical equipment, and wellness products
like vitamins and CBD items. The pharmacy
also offers specialized products such as
compression stockings, ostomy care supplies,
and mobility aids to support patient health
and well-being.
Chapter 11 Petition Date: February 17, 2025
Court: United States Bankruptcy Court
Southern District of Indiana
Case No.: 25-00691
Judge: Hon. James M Carr
Debtor's Counsel: Harley K. Means, Esq.
KROGER, GARDIS & REGAS, LLP
111 Monument Circle
Suite 900
Indianapolis, IN 46204
Tel: 317-692-9000
Fax: 317-264-6832
Total Assets: $147,900
Total Liabilities: $1,037,805
The petition was signed by Ryan Barton as owner.
A full-text copy of the petition, which includes a list of the
Debtor's 17 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/6FIBMCY/Eagle_Highland_Pharmacy_Inc__insbke-25-00691__0001.0.pdf?mcid=tGE4TAMA
EGZIT CORPORATION: Court Extends Cash Collateral Access to March 7
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
extended Egzit Corporation's authority to use cash collateral from
Feb. 7 to March 7.
The interim order signed by Judge Deborah Thorne authorized the
company to use cash collateral in accordance with its budget, which
outlines the company's projected monthly operational costs of
$227,191.12.
The next hearing is set for March 5.
About Egzit Corporation
Egzit Corporation is a provider of general freight trucking
services in Darien, Ill.
Egzit Corporation filed Chapter 11 petition (Bankr. N.D. Ill. Case
No. 24-13990) on Sept. 20, 2024, with $1 million to $10 million in
both assets and liabilities. Neema Varghese of NV Consulting
Services serves as Subchapter V trustee.
Judge Deborah L. Thorne oversees the case.
The Debtor is represented by Peter C. Nabhani, Esq., at the Law
Office of Peter C. Nabhani.
EISNER ADVISORY: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating
(IDR) of Eisner Advisory Group, LLC (Eisner) at 'B'. The Rating
Outlook is Stable. Fitch has also affirmed the company's existing
senior secured debt at 'B+' with a Recovery Rating of 'RR3'.
Eisner's ratings reflect its position in the middle market
accounting services sector, highly recurring and noncyclical
revenue, and acquisition-driven growth strategy, offset by weaker
than expected profitability and free cash flow margins. The Ratings
and Outlook reflect expectations of improving cash from operations
and strengthening cash flow leverage to levels commensurate with
its 'B' IDR over the next 12-24 months.
Key Rating Drivers
Higher-Risk Acquisition-Driven Growth: Fitch expects Eisner to
continue to actively pursue acquisitions as a key part of its
strategy to enhance its market position and grow earnings. The
company completed multiple acquisitions since its 2021 LBO
primarily funded by debt, contributing to high leverage. Despite
rapid growth, acquisition and integration costs, along with
business optimization initiatives focused on achieving efficiency
and synergies, combined with high interest rates, have reduced cash
flows. This underscores the strategy's financial and execution
risks.
Weak But Improving Cash Flow: Fitch anticipates that FCF relative
to revenue will be broadly neutral in FY25, improving to the
low-single digits in FY26. FCF margin was negative 5% in FY24 due
to system implementation challenges that increased working capital.
This issue largely reversed in the first quarter of FY25.
Fitch's base case assumes the company will continue acquiring
businesses primarily through debt at a similar pace to recent
trends. This strategy will incur acquisition and integration costs,
resulting in low but positive cash flow from operations (CFFO)
margins, which should gradually expand as Eisner scales up.
Plateauing deferred M&A payments and debt repricing at the start of
FY25 should also contribute to improved cash flow.
Highly Recurring Revenue Model: Eisner's credit profile benefits
from highly recurring revenue streams driven by strong customer
retention. The company's revenue retention rate exceeds 90% in the
assurance and tax businesses, which together represent a
significant portion of the company's revenues. Average client
tenure was more than eight years. Client retention is aided by
cross selling across multiple business lines, leading to deeper
customer relationships.
High Leverage: Fitch expects cash flow-based leverage, defined as
(CFO-capex)/debt excluding restructuring and integration costs, to
turn positive in FY25, improving from negative in FY24 and FY23.
Pro forma EBITDA leverage may stay around 6.5x due to acquisitions.
High EBITDA leverage is tolerable if CFO rises, aligning with a 'B'
rating in 12-24 months.
Middle Market Positioning: Eisner ranks in the top 20 public
accounting firms according to industry estimates. It holds a strong
position in the fragmented mid-tier accounting market, leveraging
its well-known brand while avoiding competition from the big four
accounting firms.
Diversified Business Lines and Client Base: Eisner services over
45,000 customers, with the top 10 customers comprising less than
10% of overall revenues. Additionally, the company has multiple
business lines across audit, tax, and advisory services. The
largest sector, financial services, constitutes less than 30% of
total revenues with other clients spread across diverse end
markets.
Relatively Inelastic Demand for Services: The firm's audit and tax
services offered are typically non-discretionary due to the
critical role of audited financials and tax filings. This minimizes
the risk of significant disruptions due to economic cycles. While
demand for advisory services is more volatile than demand for tax
and audit services, Fitch expects advisory services to remain a
relatively small share of overall company revenues.
Derivation Summary
Eisner is well positioned compared with peers in the middle market
for accounting services in terms of business but carries more
leverage than some of the companies Fitch follows in the sector.
The company compares less favorably with the big four accounting
firms, which have higher operating leverage. Eisner also has a
large debt stack due to its LBO and recent acquisitions.
Fitch also considers Eisner in relation to other companies in the
business services sector. VT Topco (Veritext; B/Stable) operates in
the similarly stable and fragmented court reporting industry. Both
firms have retention rates above 90% and are private equity-owned.
Veritext generates solid FCF, with its rating reflecting
deleveraging capacity, though shareholder returns may limit its
actual deleveraging.
The insurance brokerage industry shares stability and fragmentation
characteristics with the accounting services industry. Firms like
Canadian firm Navacord Intermediate Holdings, Inc. (B/Stable)
similarly pursue debt-funded M&A roll-up strategies. Insurance
brokers typically have higher EBITDA margins, around 30% or higher,
compared with accounting industry firms in the mid-teens area.
However, insurance brokers within the 'B' rating category have also
operated with higher leverage.
Key Assumptions
- Organic revenue growth of mid-single digits;
- EBITDA margins around 13%;
- Acquisition strategy primarily debt funded;
- Operating cash costs other than interest, working capital and
taxes do not exceed $40 million per year;
- Capex around 1% of revenues.
Recovery Analysis
Fitch's recovery analysis assumed the company will be reorganized
as a going concern (GC) in the event of bankruptcy rather than
liquidated. The GC analysis assumes a decline in EBITDA to reflect
the stress that provoked the bankruptcy, as well as an amount of
corrective action taken before emergency from bankruptcy. The GC
analysis contemplates a scenario in which a high-profile audit
mistake drives business away from the company, resulting in
significant revenue decline, including the loss of clients.
In arriving at a GC EBITDA, Fitch assumes sustained partner and/or
client defections resulting in a meaningful loss of around 25% of
revenue. The resulting estimate of GC EBITDA of $120 million is
significantly below the pro forma EBITDA considering completed
acquisitions.
The recovery multiple of 6.0x reflects several factors, including
the stable recurring revenue nature of accounting business, as well
as Eisner's favorable positioning in the fragmented market for
mid-tier accounting services, while also recognizing the low growth
nature of the accounting industry.
The company's debt balance at the time of default is estimated to
be just north of $1 billion consisting of pari passu senior secured
debt. Fitch assumes a fully drawn revolver of $130 million. Using a
6.0x emergence multiple, $120 million in GC EBITDA and 10% for
administrative claims results in a recovery rate for the secured
debt within the 'RR3' range to generate a one-notch uplift to the
debt rating from the IDR.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- (CFO-capex)/debt sustained below 2% excluding acquisition and
integration costs;
- Negative FCF;
- EBITDA interest coverage sustained below 2.0x;
- EBITDA leverage maintained above 6.0x;
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA leverage maintained below 5.0x;
- EBITDA margins maintained in the mid to high teens on a sustained
basis.
Liquidity and Debt Structure
The company typically maintains liquidity in the form of cash and
revolver availability, combined totaling $50 million to $100
million. As of October 2024, the company had cash and equivalents
of $22 million and revolver capacity of $67 million. The company
faces no meaningful near-term maturities. Fitch expects the sponsor
and management to continue pursuing debt-funded acquisitions, which
will lead to depressed FCF margins in the neutral to slightly
positive range. Fitch treats partner distributions as operating
items when calculating cash flow and EBITDA metrics.
Eisner's debt consists of a first-lien senior secured term loan B
totaling $914 million, maturing in February 2031, and $58 million
drawn under a secured revolver maturing in 2029.
Issuer Profile
Eisner Advisory Group is a middle-market U.S. professional services
firm with a national platform and global presence. The company has
a full suite of accounting, tax and advisory services with more
than 45,000 clients across multiple industries.
Summary of Financial Adjustments
Fitch treats partner distributions as operating items when
calculating cash flow from operations and EBITDA.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Eisner Advisory
Group, LLC LT IDR B Affirmed B
senior secured LT B+ Affirmed RR3 B+
ELEMENTS UES: Gets Interim OK to Use Cash Collateral
----------------------------------------------------
Elements UES, LLC received interim approval from the U.S.
Bankruptcy Court for the Southern District of New York to use cash
collateral.
The Debtor requires the use of cash collateral to pay ordinary,
necessary and reasonable operating expenses including, but not
limited to, payroll, payroll taxes employee benefits, vendor
payments, equipment costs, insurance, rent, maintenance, and other
goods and services incidental to the Debtor's business.
Fund-Ex Solutions Group, a pre-bankruptcy senior secured lender,
and the U.S. Small Business Administration were granted replacement
liens on all of the personal property of the Debtor as adequate
protection of their interests in cash collateral.
As additional protection, Fund-Ex and the SBA will receive monthly
payments of $6,600 and $455.25, respectively.
The Debtor operates a boutique fitness and wellness studio in New
York City, offering group fitness classes and private sessions in
barre, dance, yoga, and stretch. Despite its unique exercise method
and total-body workout, the studio faced delays in opening due to
COVID-19 lockdowns and supply chain disruptions, which led to
reduced revenue and increased expenses. Additionally, the landlord
initiated efforts to evict the debtor to replace them with a tenant
offering higher rent, leading to legal battles. A default notice
from the landlord after the New Year holiday ultimately triggered
the bankruptcy.
About Elements UES
Elements UES, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10033) on January 12,
2025, with $1 million to $10 million in both assets and
liabilities. Andrea Fornarola Hunsberger, president and chief
executive officer of Elements UES, signed the petition.
Judge Michael E. Wiles presides over the case.
Ralph E. Preite, Esq., at Cullen and Dykman, LLP represents the
Debtor as legal counsel.
ELITE ENDEAVORS: Seeks to Extend Plan Exclusivity to May 16
-----------------------------------------------------------
Elite Endeavors, LLC, asked the U.S. Bankruptcy Court for the
District of Kansas to extend its exclusivity periods to file a plan
of reorganization and obtain acceptance thereof to May 16 and
August 15, 2025, respectively.
The Debtor claims that it requires further additional time to file
its Plan and Disclosure Statement. Since the filing of the Petition
for Relief, the Debtor has surrendered its equipment located at
1502 East Walnut in Lexington, Nebraska to BizCapital BIDCO I, LLC
and Landery Bank of the Lake ("Banks") and the Banks conducted a
UCC public sale of the equipment, which was purchased by Livestock
Nutrition Center, L.L.C. ("LNC") and in turn, Debtor and LNC
entered into an Equipment Lease Agreement.
Further, during the early days of this Chapter 11, the Debtor fell
behind with post-petition obligations and Debtor has worked
diligently since the surrender of its equipment to bring those
post-petition obligations current. Debtor expects at the present
rate, to bring the post-petition taxes current within the next
14-16 weeks. Further, Debtor has been making the back payments to
Wells Fargo, a secured lender and has brought current the payments
owed to CNH.
The Debtor explains that the Plan will need to address secured
claims of Wells Fargo Equipment Finance (Loop Conveyor System); CNH
Industrial Capital (Case Wheel Loader); and DeLage Landen Financial
Services (four forklifts). Moreover, the unsecured non-priority
class includes in excess of 70 claims, many of which are disputed,
but which now total approximately $8,200,000. This sum includes the
deficiency of the Banks once the equipment was sold (approximately
$4,700,000). Debtor will need to address all of these claims in its
Plan.
The Debtor asserts that the complication of this case, which
includes the Debtor working to expand its markets and volume to
increase its profitability, exploring whether it is in the Debtor's
best interest to assume the lease with the Landlord, and
determining how to create a Chapter 11 Plan to fairly treat its
unsecured creditors, necessitates that the Debtor be given
additional time.
The Debtor further asserts that the extension of time for the
filing of the Plan and Disclosure Statement and the extension of
time for the exclusivity periods will not work a hardship on
creditors and is in the best interest of all parties to allow the
Debtor time to explore its options.
Elite Endeavors, LLC is represented by:
Erlene W. Krigel, Esq.
KRIGEL & KRIGEL, P.C.
4520 Main Street, Suite 700
Kansas City, MO 64111
Tel: (816) 756-5800
Fax: (816) 756-1999
E-mail: ekrigel@krigelandkrigel.com
About Elite Endeavors
Elite Endeavors, LLC, a company in Edmond, Okla., sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Kan. Case
No. 24-20222) on March 6, 2024, with up to $50,000 in assets and up
to $50 million in liabilities.
Judge Robert D. Berger oversees the case.
Erlene W. Krigel, Esq., at Krigel & Krigel, PC, is the Debtor's
legal counsel.
ESSEX TECHNOLOGY: Taps Livingstone Partners as Investment Banker
----------------------------------------------------------------
Essex Technology Group, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Tennessee to employ the
Livingstone Partners LLC as investment banker.
The firm will render these services:
(a) assist the Debtor in the preparation of a comprehensive
confidential information package describing the Debtor and prepare
and negotiate any confidentiality agreements to be entered into by
third parties potentially interested in participating in a
transaction;
(b) develop a list of potential buyers that Livingstone, in
good faith, believes to be financially qualified and potentially
interested in participating in a transaction;
(c) contact potential buyers on behalf of the Debtor to
arrange for and orchestrate meetings between potential buyers
and/or investors and the Debtor;
(d) present the Debtor all proposals from potential buyers and
make recommendations to its appropriate negotiating strategy and
course of conduct; and
(e) provide such other financial advisory and investment
banking services to the Debtor and assist in all negotiations and
document review as may be agreed upon by Livingstone and the
Debtor.
The firm will be paid at these following fee:
(a) Initial Monthly Fee of $75,000;
(b) Monthly Fee of $25,000;
(c) Transaction Fee:
(a) Accomplishment Fee: Amount payable at the closing of
a transaction of an amount equal to the lesser of:
(i) the greater of 4.5 percent of Total
Consideration or $650,000; or
(ii) 50 percent of the Total Consideration.
(d) Expenses: Reimbursement of all reasonable out-of-pocket
expenses and the reasonable fees and expenses of Livingstone's
counsel up to $15,000.
Joseph Greenwood, a member at Livingstone Partners, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Joseph Greenwood
Livingstone Partners LLC
443 N. Clark St.
Chicago, IL 60654
Telephone: (312) 670-5913
Email: greenwood@livingstonepartners.com
About Essex Technology Group
Essex Technology Group, LLC is a retail chain operating 91 stores
across 10 states. The company is based in Antioch, Tenn., and
operates under the name Bargain Hunt.
Essex Technology Group filed Chapter 11 petition (Bankr. M.D. Tenn.
Case No. 25-00452) on February 3, 2025, listing between $10 million
and $50 million in assets and between $50 million and $100 million
in liabilities. Rob Hubbard, chief restructuring officer of Essex,
signed the petition.
Judge Nancy B. King oversees the case.
The Debtor tapped David W. Houston, IV, Esq., at Burr & Forman LLP
as counsel and Joseph Greenwood at Livingstone Partners LLC as
investment banker.
EVENTIDE CREDIT: Seeks to Hire William L. Roberts as Accountant
---------------------------------------------------------------
Eventide Credit Acquisitions, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to employ
William Roberts, CPA, a professional practicing in Fort Worth,
Texas, as its accountant.
The accountant will render these services:
(a) prepare a spreadsheet analysis summarizing transfers of
funds by the Debtor from January 1, 2016, through September 6,
2023.
(b) prepare related reports as requested by the Debtor;
(c) provide any accounting services relating to the Debtor's
bankruptcy case as it may be requested; and
(d) provide court testimony as required by the court or
requested by the Debtor.
Mr. Roberts will be compensated at his hourly rate of $450 plus
expenses.
Mr. Roberts 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 accountant can be reached at:
William L. Roberts, CPA
177 Aledo Creeks Rd.
Fort Worth, TX 76126
Telephone: (214) 507-2750
About Eventide Credit Acquisitions
Eventide Credit Acquisitions, LLC, a Dallas-based company, filed
voluntary Chapter 11 petition (Bankr. N.D. Tex. Lead Case No.
23-90007) on Sept. 6, 2023. In the petition signed by Matt
Martorello, manager, the Debtor disclosed up to $100 million in
both assets and liabilities.
Judge Mark X. Mullin oversees the case.
The Debtor tapped Forshey Prostok as bankruptcy counsel and William
L. Roberts, CPA as accountant. Donlin, Recano & Company, Inc. is
the Debtor's notice, claims and balloting agent.
EZ ROLL CASTERS: Creditor Seeks to Prohibit Cash Collateral Access
------------------------------------------------------------------
The U.S. Small Business Administration asked the U.S. Bankruptcy
Court for the Eastern District of Arkansas, Central Division, to
prohibit EZ Roll Casters, Inc. from using cash collateral or
require it to provide adequate protection.
On October 7, 2021, the Debtor executed a COVID Economic Injury
Disaster Loan promissory note in the amount of $500,000 payable to
the SBA at an interest rate of 3.75% and with monthly payments of
$2,575. Pursuant to a security agreement executed of even date, the
SBA Note is secured by an interest in all of Debtor's tangible and
intangible personal property. Said interest is perfected by a UCC-1
Financing Statement filed October 21, 2021, with the Arkansas
Secretary of State under Filing Number 4000023901153.
The Debtor defaulted on the SBA Note by failing to make payments as
agreed and is now due for the April 10, 2024 payment. As of the
date of the filing of the Petition, the amount due and owing on the
SBA Note is $555,736.
SBA has not been offered adequate protection though it is scheduled
as a secured creditor in the Original and Amended Schedules filed
October 2, 2024 and January 15, 2025, respectively. The Debtor
continues to use the SBA Collateral in the operation of its
business. Use of the SBA Collateral results in significant
deterioration and decline in its value. As such, and without
receiving monthly payments, SBA's interest in the SBA Collateral is
not adequately protected.
The SBA asserted that the Debtor must be prohibited from using the
cash collateral, or in the alternative, the Debtor's continued use
should be conditioned on (i) timely payment of all current taxes
and insurance on the SBA Collateral; and (ii) monthly installment
payments of $2,575 to compensate SBA for the continuing decrease in
the value of the SBA Collateral.
A copy of the motion is available at https://urlcurt.com/u?l=qnTAFE
from PacerMonitor.com.
About E-Z Roll Casters Inc.
E-Z Roll Casters Inc. is a manufacturer of rigid and swivel
casters. The Company's distribution center is centrally located in
Conway, Arkansas. The Company offers wheels, casters, hand trucks,
pallet jacks, platform carts and other specialty items.
E-Z Roll Casters Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Ark. Case No. 24-13217) on October 2,
2024. In the petition filed by Martin Stewart Aist, as owner, the
Debtor reports estimated assets between $500,000 and $1 million and
estimated liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Bianca M. Rucker handles the case.
The Debtor is represented by Joel G. Hargis, Esq., at Caddell
Reynolds Law Firm.
The U.S. Small Business Administration, as creditor, is represented
by:
Lindsey Mitcham Lorence, Esq.
Assistant United States Attorney
P.O. Box 1229
Little Rock, Arkansas 72203
Tel: (501) 340-2600
Email: lindsey.lorence@usdoj.gov
FAMILY HEALING: Seeks to Use Cash Collateral
--------------------------------------------
Family Healing Center, Inc. asked the U.S. Bankruptcy Court for the
District of New Jersey for authority to use cash collateral and
provide adequate protection.
The Debtor needs to use cash collateral to pay prepetition payroll
and amounts owed to critical therapists. The Debtor also requires
the use of cash collateral to pay operating expenses, including
rent, data storage facility usage, payroll and related taxes,
business and insurance, post-petition taxes, utilities, and other
expenses it incurs in the ordinary course of business as itemized
in the Budget.
The Debtor, a mental health center in Livingston, NJ, provides
various counseling services. Founded by Malik Carey and Bill
Powell, it employs four full-time staff and works with independent
therapists. The center faced delays in obtaining a drug and alcohol
therapy license but has since secured it. After disputes over
unpaid common area maintenance charges, the landlord filed for
eviction. The Debtor filed for bankruptcy to negotiate with the
landlord and avoid relocation, which would require restarting the
licensing process. The goal is to reach an agreement to cure
arrears under the lease.
The parties that assert an interest in the cash collateral are
Corporation Service Company, as Representative, Advantage Platform
Services Inc., and First Corporate Solutions, as Representative.
A copy of the motion is available at https://urlcurt.com/u?l=U7QQZW
from PacerMonitor.com.
A hearing on the matter is set for March 4.
About Family Healing Center Inc.
Family Healing Center, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. N.J. Case No. 25-11266) on
February 6, 2025. In the petition signed by Malik Carey, chief
executive officer, the Debtor disclosed up to $1 million in both
assets and liabilities.
Judge John K. Sherwood oversees the case.
John McDonnell, Esq., at McDonnell Crowley, LLC, represents the
Debtor as legal counsel.
FTX TRADING: Estate Disputes $59MM Korean Asset Ownership Claim
---------------------------------------------------------------
Randi Love of Bloomberg Law reports that the estate of bankrupt FTX
Trading Inc. is seeking a court order for an evidentiary hearing to
determine who is entitled to funds from $160 million in claims
linked to an imprisoned Korean creditor.
Junho Bang and Lemma Technologies, a Panamanian firm he previously
controlled, were previously involved in legal battles over the FTX
claims.
According to a February 14, 2025 objection filed by the FTX
recovery trust in the U.S. Bankruptcy Court for the District of
Delaware, Bang was sentenced to prison last 2024 in Seoul for a
separate cryptocurrency exchange fraud case.
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases. White
collar crime specialist Mark S. Cohen has reportedly been hired to
represent SBF in litigation. Lawyers at Paul Weiss previously
represented SBF but later renounced representing the entrepreneur
due to a conflict of interest.
FUEL FITNESS: Gets Extension to Access Cash Collateral
------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina, Raleigh Division, extended Fuel Fitness, LLC's authority
to use cash collateral to fund its operations.
The interim order authorized the company to use cash collateral for
the period from Feb. 22 to March 21 pursuant to its monthly budget,
with a 10% variance.
The budget shows total projected expenses of $69,543 for the
interim period.
Live Oak Banking Company and all other lien creditors were granted
a continuing post-petition security interest in and lien on all
personal property of the company to the same extent and with the
same priority as their pre-bankruptcy liens.
As additional protection, Live Oak Banking Company will receive
payment of $5,000 on or before March 15.
The next hearing is set for March 11.
About Fuel Fitness
Fuel Fitness, LLC, a company in Raleigh, N.C., filed a petition
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr.
E.D.N.C. Case No. 24-03698) on Oct. 22, 2024, with up to $100,000
in assets and up to $10 million in liabilities. Christopher Shawn
Stewart, member-manager, signed the petition.
Judge Joseph N. Callaway oversees the case.
The Debtor is represented by Philip Sasser, Esq., at Sasser Law
Firm.
Live Oak Banking Company, as secured creditor, is represented by:
William Walt Pettit, Esq.
Hutchens Law Firm
6230 Fairview Road, Suite 315
Charlotte, NC 28210
Phone: (704) 362-9255
walt.pettit@hutchenslawfirm.com
FUEL HOMESTEAD: Gets Extension to Access Cash Collateral
--------------------------------------------------------
Fuel Homestead, LLC received fifth interim approval from the U.S.
Bankruptcy Court for the Eastern District of North Carolina, to use
cash collateral.
The third interim order authorized the company to use cash
collateral for operational expenses from Feb. 22 to March 21, with
a 10% variance.
The budget shows total projected expenses of $94,530 for the
period.
Live Oak Banking Company and all other secured creditors were
granted a continuing post-petition security interest in and lien on
all personal property of the company to the same extent and with
the same priority as their pre-bankruptcy liens.
As additional protection, Live Oak Banking Company will receive
payment in the amount of $5,000 on or before March 15, 2025.
The next hearing is set for March 11.
About Fuel Homestead
Fuel Homestead, LLC, a company in Raleigh, N.C., sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case
No. 24-03699) on October 22, 2024, with up to $100,000 in assets
and up to $10 million in liabilities. Christopher Shawn Stewart,
member-manager, signed the petition.
Judge Joseph N. Callaway oversees the case.
The Debtor is represented by Philip Sasser, Esq., at Sasser Law
Firm.
Live Oak Banking Company can be reached through its counsel:
William Walt Pettit, Esq.
Hutchens Law Firm
6230 Fairview Road, Suite 315
Charlotte, NC 28210
(704) 362-9255
walt.pettit@hutchenslawfirm.com
FUEL REYNOLDA: Court Extends Cash Collateral Access to March 21
---------------------------------------------------------------
Fuel Reynolda, LLC received fifth interim approval from the U.S.
Bankruptcy Court for the Eastern District of North Carolina,
Raleigh Division, to use cash collateral to fund its operations.
The interim order authorized the company to use cash collateral for
the period from Feb. 22 to March 21 pursuant to its monthly budget,
with a 10% variance.
The budget shows total projected expenses of $85,750 for the
interim period.
Live Oak Banking Company and all other lien creditors were granted
a continuing post-petition security interest in and lien on all
personal property of the company to the same extent and with the
same priority as their pre-bankruptcy liens.
As additional protection, Live Oak Banking Company will receive
payment of $5,000.
The next hearing is set for March 11.
Live Oak Banking Company can be reached through its counsel:
William Walt Pettit, Esq.
Hutchens Law Firm
6230 Fairview Road, Suite 315
Charlotte, NC 28210
(704) 362-9255
walt.pettit@hutchenslawfirm.com
About Fuel Reynolda
Fuel Reynolda, LLC -- https://fuelfitnessclubs.com/about/ -- doing
business as Fuel Fitness, is a fitness center that offers the best
free weights, strength training/cardio equipment, group fitness
classes, personal training, childcare, recovery studio and smoothie
bar.
Fuel Reynolda sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03700) on October
22, 2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Christopher Shawn Stewart, member-manager,
signed the petition.
Judge Joseph N. Callaway oversees the case.
The Debtor is represented by:
Philip Sasser
Sasser Law Firm
Tel: 919-319-7400
Email: philip@sasserbankruptcy.com
G7 VENICE: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: G7 Venice, LLC
1239 Abbot Kinney Blvd
Venice, CA 90291
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-11189
Judge: Hon. Vincent P Zurzolo
Debtor's Counsel: David B. Golubchik, Esq.
LEVENE, NEALE, BENDER, YOO & GOLUBCHIK LLP
2818 La Cienega Ave.
Los Angeles, CA 90034
Tel: (310) 229-1234
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jonathan Rollo as chief executive
officer.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/EAIIRXA/G7_Venice_LLC__cacbke-25-11189__0001.0.pdf?mcid=tGE4TAMA
GEORGIAN TRANSPORTATION: Seeks to Tap Alla Kachan as Legal Counsel
------------------------------------------------------------------
Georgian Transportation Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to employ Law
Offices of Alla Kachan, PC as counsel.
The firm will provide these services:
(a) assist the Debtor in administering this Chapter 11 case;
(b) make such motions or take such action as may be
appropriate or necessary under the Bankruptcy Code;
(c) represent Debtor in prosecuting adversary proceedings to
collect assets of the estate and such other actions as it deem
appropriate;
(d) take such steps as may be necessary for the Debtor to
marshal and protect the estate's assets;
(e) negotiate with the Debtor's creditor in formulating a plan
of reorganization in this case;
(f) draft and prosecute the confirmation of the Debtor's plan
of reorganization in this case; and
(g) render such additional services as the Debtor may require
in this case.
The hourly rates of the firm's counsel and staff are as follows:
Attorney $475
Clerks/Paraprfessionals $250
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received an initial retainer of $13,000 from the Debtor on
December 5, 2024.
Alla Kachan, Esq., an attorney at the 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 through:
Alla Kachan, Esq.
Law Offices of Alla Kachan, PC
2799 Coey Island Avenue, Suite 202
Brooklyn, NY 11235
Telephone: (718) 513-3145
About Georgian Transportation
Georgian Transportation Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-45163) on
December 11, 2024, listing under $1 million in both assets and
liabilities.
Judge Nancy Hershey Lord oversees the case.
The Law Offices of Alla Kachan, PC serves as the Debtor's counsel.
GILGAL MEDICAL: Seeks Subchapter V Bankruptcy in Florida
--------------------------------------------------------
On February 4, 2025, Gilgal Medical Supplies Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Middle District of
Florida. According to court filing, the Debtor reports between
$500,000 and $1 million in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
About Gilgal Medical Supplies Inc.
Gilgal Medical Supplies Inc. is a medical supplies distributor
headquartered in Saint Cloud, Florida.
Gilgal Medical Supplies Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.
25-00651) on February 4, 2025. In its petition, the Debtor reports
estimated assets between $50,000 and $100,000 and estimated
liabilities between $500,000 and $1 million.
Honorable Bankruptcy Judge Grace E. Robson handles the case.
The Debtor is represented by:
Daniel A Velasquez, Esq.
LATHAM, LUNA, EDEN & BEAUDINE, LLP
201 S. Orange Ave., Suite 1400
Orlando, Florida 32801
Telephone: 407-481-5800
Facsimile: 407-481-5801
GLASS MANAGEMENT: Court Extends Cash Collateral Access to March 5
-----------------------------------------------------------------
Glass Management Services, Inc. received another extension from the
U.S. Bankruptcy Court for the Northern District of Illinois to use
the cash collateral of Old National Bank.
The company was authorized to use cash collateral until March 5 to
pay the expenses set forth in its budget, plus an amount not to
exceed 10% for each line item.
Old National Bank's interest in the assets will be protected by
replacement liens on post-petition assets, according to the interim
order penned by Judge Janet Baer.
The bank will also be granted a superpriority administrative
expense claim in case of diminution in value of its collateral and
will receive monthly payments of $30,000 from Glass Management
starting this month, which the bank can automatically debit from
the company's account.
Glass Management Services, Glass Management Services was ordered to
maintain insurance covering the full value of all collateral
securing the obligations to the bank.
The next hearing is scheduled for March 5.
About Glass Management
Glass Management Services, Inc. is a construction contractor based
in Illinois, specializing in glazing services. Established with a
focus on high-profile projects, the company has been involved in
significant developments, including the Obama Presidential Library,
Terminal 5 at O’Hare Airport,
and multiple Chicago Public Schools and CTA transit stations.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-14036) with
$3,029,997 in assets and $11,989,444 in liabilities. Ernest B.
Edwards, president, signed the petition.
Hon. Janet S. Baer presides the case.
The Debtor is represented by:
David P Leibowitz, ESQ
Leibowitz, Hiltz & Zanzig, LLC
Tel: 312-566-9008
Email: dleibowitz@lodpl.com
GOLDEN STAR: Reports Increased Net Loss of $23K in Second Quarter
-----------------------------------------------------------------
Golden Star Resource Corp. submitted its Quarterly Report on Form
10-Q to the Securities and Exchange Commission, revealing a net and
comprehensive loss of $23,423 for the three months ending Dec. 31,
2024. This compares to a net and comprehensive loss of $11,335 for
the same period in 2023.
For the six months ended Dec. 31, 2024, the Company recorded a net
loss and comprehensive loss of $37,853, compared to a net loss and
comprehensive loss of $24,848 for the six months ended Dec. 31,
2023.
As of Dec. 31, 2024, the Company had $2,802 in total assets,
$859,696 in total liabilities, and a total stockholders' deficiency
of $856,894.
Golden Star stated, "The general business strategy of the Company
is to acquire and explore mineral properties. The continued
operations of the Company and the recoverability of mineral
property costs is dependent upon the existence of economically
recoverable mineral reserves, the ability of the Company to obtain
necessary financing to complete the development of its properties,
and upon future profitable production. The Company has not
generated any revenues or completed development of any properties
to date. Further, the Company has a working capital deficit of
$856,894 (June 30, 2024 - $819,041), has incurred losses of
$963,954 since inception, and further significant losses are
expected to be incurred in the exploration and development of its
mineral properties. The Company will require additional funds to
meet its obligations and maintain its operations. There can be no
guarantee that the Company will be successful in raising the
necessary financing. Management's plans in this regard are to
raise equity financing as required. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern."
The full text of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1375348/000149315225006542/form10-q.htm
About Golden Star
Headquartered in Las Vegas, Nevada, Golden Star Resource Corp. has
been in the exploration stage since its formation and is primarily
engaged in the acquisition and exploration of mining claims. Upon
location of a commercial minable reserve, the Company expects to
actively prepare the site for its extraction and enter a
development stage.
Vancouver, Washington-based Michael Gillespie & Associates, PLLC,
the Company's auditor since 2023, issued a "going concern"
qualification in its report dated Sept. 9, 2024. The report cited
that although the Company has limited operations it has yet to
attain profitability. This raises substantial doubt about its
ability to continue as a going concern.
HARADA FAMILY: Seeks to Hire Scharfe Kato & Co. as Accountant
-------------------------------------------------------------
Harada Family Dental Care, PC seeks approval from the U.S.
Bankruptcy Court for the District of Montana to employ Scharfe,
Kato & Co., PC as accountant.
The firm will prepare income tax returns, income tax consulting,
payroll services, audit services, analysis of tax consequences of
proposed bankruptcy plans, and compiling reports.
The hourly rates of the firm's professionals are as follows:
Lindsey Kellam, CPA $235
Tara Rappold, $130
Carrie Kato $40
In addition, the firm will seek reimbursement for expenses
incurred.
Ms. Kellam 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:
Lindsey Kellam, CPA
Scharfe, Kato & Company PC
215 2nd St.
Harvey, MT 59501
Telephone: (406) 265-1254
About Harada Family Dental Care
Harada Family Dental Care, P.C. is a privately owned dental group.
Harada Family Dental Care filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Mont. Case No.
24-40076) on Nov. 22, 2024, listing $73,202 in assets and
$1,174,825 in liabilities. The petition was signed by Christopher
W. Harada as president.
The Debtor tapped James A. Patten, Esq. at Patten, Peterman,
Bekkedahl & Green as counsel and Lindsey Kellam, CPA, at Scharfe,
Kato & Company PC as accountant.
IM3NY LLC: U.S. Trustee Appoints Creditors' Committee
-----------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of iM3NY, LLC
and its affiliates.
The committee members are:
1. Ramboll Americas Integrated Solutions, Inc.
Attn: Francesco Suglia, Esq.,
333 West Washington St.
Syracuse, NY 13202
Phone: 609-243-9819
Email: fsuglia@ramboll.com
2. mPLUS
Attn: Yeonho Kang
28101, 27 Oksansandan-ro, Oksan-myeon
Heungdeok gu, Cheongju-si
Chungcheongbuk-do, Republic of Korea
Phone: +82-10-2907-6340
Email: yeonho.kang@mplusi.co.kr
3. Phoenix Endicott Industrial Investors LLC
Attn: Robert Kriewaldt
401 E. Kilbourn Ave., Ste. 201
Milwaukee, WI 53202 '
Phone: 920-915-9746
Email: robert@phoenix3pl.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 iM3NY LLC
IM3NY LLC -- https://im3ny.com/ -- is an independent lithium-ion
cell manufacturer that is commercializing cell chemistry developed
in the USA.
iM3NY LLC and Imperium3 New York, Inc. sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
25-10131) on January 27, 2025. In the petition, the Debtors
reported estimated assets between $50 million and $100 million and
estimated liabilities between $100 million and $500 million.
The Honorable Bankruptcy Brendan Linehan Shannon handles the
cases.
The Debtors tapped William E. Chipman, Jr., Esq., at Chipman Brown
Cicero & Cole, LLP as counsel; Novo Advisors as financial advisor;
and Hilco Corporate Finance, LLC as investment banker. Stretto,
Inc. is the Debtors' noticing claims management and reconciliation
consultant.
INTEGRITY CELEBRATIONS: Seeks to Use Cash Collateral
----------------------------------------------------
Integrity Celebrations LLC asked the U.S. Bankruptcy Court for the
Eastern District of Wisconsin for authority to use cash
collateral.
The Debtor needs to use cash collateral to pay its monthly expenses
related to utilities, waste disposal and pest control, insurance,
snow removal, post-petition taxes, building maintenance, office
expenses and other post-petition trade payables.
Citizens Bank asserts an interest in the Debtor's cash collateral.
The Debtor is currently obligated to Citizens on a promissory note
dated June 27, 2018 in the original principal amount of $1.192
million.
The Debtor submits that interest only payments of $5,900 at the
loan's nondefault rate of 6% will adequately protect Citizens.
Furthermore, Citizens is also adequately protected by a substantial
equity cushion when comparing the approximate balance due
Citizens––$1.174 million––with the recently appraised value
of the banquet hall real estate and fixtures–– $1.880 million.
A copy of the motion is available at https://urlcurt.com/u?l=EgOa9c
from PacerMonitor.com.
About Integrity Celebrations LLC
Integrity Celebrations LLC is a single asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
Integrity Celebrations LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Wis. Case No.: 25-20595) on
February 5, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Rachel M. Blise handles the case.
The Debtor is represented by Craig Stevenson, Esq. at SwansonN
Sweet, LLP.
Citizens Bank, as lender, is represented by:
Daniel J. Habeck, Esq.
Beth M. Brockmeyer, Esq.
Cramer Multhauf LLP
1601 E. Racine Ave., Suite 200
Waukesha, WI 53186
Email: djh@cmlawgroup.com
bb@cmlawgroup.com
IR4C INC: Court Extends Cash Collateral Access to March 27
----------------------------------------------------------
IR4C, Inc. received fifth interim approval from the U.S. Bankruptcy
Court for the Middle District of Florida to use cash collateral.
The interim order approved the use of cash collateral for the
period from Jan. 27 to March 27, to pay business expenses set forth
in the monthly budget.
All secured creditors will have perfected post-petition liens on
cash collateral to the same extent and with the same validity and
priority as their respective pre-bankruptcy liens.
Meanwhile, Lake Michigan Credit Union will continue to receive a
monthly payment of $10,000 as protection.
The interim order will remain in effect until IR4C's Chapter 11
case is converted to Chapter 7, a trustee is appointed, a
bankruptcy plan is confirmed, or the order is terminated.
The next hearing is set for March 27.
Lake Michigan Credit Union is represented by:
Andrew W. Lennox, Esq.
Casey Reeder Lennox, Esq.
Lennox Law, P.A.
P.O. Box 20505
Tampa, FL 33622
Tel: 813-831-3800
Fax: 813-749-9456
alennox@lennoxlaw.com
clennox@lennoxlaw.com
About IR4C Inc.
IR4C, Inc., a company in Lakeland, Fla., is the owner and operator
of a mobile application fitness program using augmented reality to
create virtual "races." It conducts business under the name Yes.Fit
and Make Yes Happen.
IR4C filed Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case
No. 24-05458) on Sept. 13, 2024. In its petition, IR4C listed total
assets of $4,280,839 and total liabilities of $7,922,422. IR4C
President Kevin D. Transue signed the petition.
Judge Roberta A. Colton oversees the case.
The Debtor is represented by Samantha L. Dammer, Esq., at Bleakley
Bavol Denman & Grace.
IVANTI SOFTWARE: Fitch Puts 'B' Rating on Watch Negative
--------------------------------------------------------
Fitch Ratings has placed all the ratings for Ivanti Software, Inc.
(Ivanti) and Icon Software, Inc. on Rating Watch Negative (RWN).
This includes the 'B' Long-Term Issuer Default Rating (IDR) for
Ivanti Software, Inc. (Ivanti) and Icon Software Holdings, Inc.,
Ivanti's $175 million secured revolver and $2.2 billion first lien
term loan rated 'BB-' with a Recovery Rating of 'RR2', and the $545
million second lien term loan rated 'CCC+' with a Recovery Rating
of 'RR6'. Ivanti is the debt issuer.
The RWN reflects liquidity concerns, given the maturity of the
company's RCF in Dec. 2025. Ivanti has limited cash and expected
FCF in 2025 to cover the RCF balance and first lien term loan
amortization. Ivanti's leverage and interest coverage currently
exceed negative sensitivities. However, Fitch expects the company
to return within these parameters by 2026, contingent on extending
its RCF and resolving the Rating Watch.
Key Rating Drivers
Liquidity Concerns: Ivanti faces near-term constrained liquidity
and refinancing risks, with a reported cash balance of $8 million
as of Sept. 2024 and an outstanding balance of $76 million on its
$175 million RCF, which matures in Dec. 2025. Although Fitch
anticipates that Ivanti will generate approximately $67 million in
FCF in 2025, this amount, combined with the current cash balance,
is insufficient to fully repay the revolver.
Consequently, Ivanti will need to seek an extension or refinancing
of the revolver to meet its debt servicing obligations and avoid
liquidity issues. Ivanti's debt structure includes a $175 million
RCF, a $2.2 billion first lien term loan maturing in 2027, and a
$545 million second lien term loan maturing in 2028.
Medium- to Long-Term FCF Prospects: In 2024, Ivanti experienced a
transition from perpetual licenses to subscription revenues,
temporarily affecting revenue, EBITDA, and FCF. Fitch anticipates
stabilization in 2025, with Ivanti achieving positive FCF through
cost-cutting measures and cross-selling strategies. In the medium
to long term, Fitch projects that Ivanti will generate FCF margins
in the teens starting in 2026, supported by stable EBITDA margins
and an increased focus on subscription-based revenue streams with
high visibility.
Elevated Leverage Levels: Fitch expects Ivanti's gross leverage to
have exceeded 7x in 2024 due to reduced EBITDA and increased RCF
utilization. Leverage is expected to improve to around 7x in 2025,
aligning with peers in the 'B' rating category. It is projected to
remain above 6.0x over the rating horizon as Ivanti invests in
technologies and products to remain competitive in the rapidly
evolving industry. Additionally, private equity ownership is likely
to limit deleveraging efforts, as sponsors prioritize optimizing
return on equity through acquisitions and shareholder returns.
Recurring and Diversified Revenues: Ivanti has a strong base of
recurring revenues, representing nearly 90% of total revenues, with
net retention rates in the high 90s. While strong, Fitch views
revenue retention as weaker than other enterprise software peers
due to somewhat lower switching costs. The company has
approximately 34,000 customers and no meaningful end-market
concentration. Fitch considers the shift to a subscription-based
model a credit positive, as recurring revenue and retention rates
provide more visibility and consistency for revenue and FCF
streams.
Mid-Term Secular Tailwinds: The proliferation of "Bring Your Own
Devices" (BYOD) policies and increased remote work demand has
significantly increased cybersecurity concerns. The digital
transformation of customers' technology infrastructure has created
strong demand for Ivanti's products. Fitch expects these industry
trends to support Ivanti's medium-term growth in the mid-single
digits, as demand stabilizes after pandemic and post-pandemic
fluctuations.
Highly Fragmented and Competitive Marketplace: Ivanti operates in
highly fragmented markets for each of its products. Fitch expects
Ivanti to face intense competition from large players like
Microsoft, Citrix, and VMWare. These competitors offer solutions in
the same market and can bundle and up-sell to customers at
competitive prices. In the IT Service Management (ITSM) segment,
Ivanti competes with peers like ServiceNow, which has strong
cloud-native offerings. Ivanti's focus on cross-selling initiatives
has improved product stickiness as shown by improving net retention
rates over the past two years.
Moderate FX Exposure: Ivanti generates a portion of its revenue in
currencies other than the U.S. dollar, exposing it to fluctuations
in FX rates. Although the company can adjust local currency prices
to address these fluctuations and remain competitive, short-term
impacts are likely in a swiftly changing FX landscape.
Additionally, since some of Ivanti's expenses are also in local
currencies, this provides a degree of natural hedging to help
offset the effects of currency fluctuations.
Derivation Summary
Ivanti operates primarily in three key markets: Unified Endpoint
Management (UEM), Cyber Security, and IT Service Management (ITSM).
The broader market for endpoint security and remote work solutions
has been expanding, driven by the increase in access points to
secured networks, heightened awareness of security breaches, and
the growing IT networks and applications complexity.
Ivanti is well-positioned within the enterprise IT security and
service sector, supported by its substantial base of recurring
revenue and robust profitability. The company's recent
underperformance in 2024 is attributed to the accelerated shift
from its legacy on-premise perpetual license model to a
subscription-based approach. Fitch assesses that Ivanti's
performance aligns with that of its enterprise software industry
peers, and its credit metrics are comparable to those of other
'B'-rated software companies.
DCert Buyer, LLC (DigiCert, 'B'/Negative), a peer in the software
industry with a 'B' rating, has strong margin levels and an even
more robust market position in its core business compared to
Ivanti. However, it has relatively weak leverage and coverage
metrics for its category. Another 'B'-rated peer, Imprivata
('B'/Stable), has similar profitability levels to Ivanti but
benefits from greater financial flexibility. In contrast, RedStone
Parent LP (RSA, 'B-'/Stable), a cybersecurity peer, has weaker
credit metrics compared with Ivanti, primarily due to stagnant
operating performance and a high interest burden.
Key Assumptions
- 2024 revenue, EBITDA and FCF are negatively impacted by
accelerated migration to subscription revenues from perpetual
licenses;
- Reversion to organic revenue growth in the low- to
mid-single-digit range over the rating horizon, beginning in 2025,
reflecting the shift from perpetual licenses to subscription
revenues;
- EBITDA margins are expected to remain stable near 40%, supported
by cost containment and cross-selling initiatives;
- Normalized FCF margins in the low- to mid-teens;
- Base case assumption of extension of the company's RCF, which is
currently due to mature in Dec. 2025, with FCF in 2025 and 2026
used to repay the facility;
- Debt-funded dividend paid in 2027.
Recovery Analysis
Key Recovery Rating Assumptions
- The recovery analysis assumes that Ivanti would be reorganized as
a going concern in bankruptcy rather than liquidated;
- Fitch has assumed a 10% administrative claim.
Going-Concern (GC) Approach
- In estimating a distressed enterprise value (EV) for Ivanti,
Fitch assumes elevated customer churn will lead to a 15% revenue
decline in a distressed scenario. This lower revenue scale will
compress EBITDA margins, resulting in a going concern EBITDA that
is approximately 24% lower than the 2025 estimated EBTIDA. As
Ivanti's business model depends on the ability to provide robust IT
security, customer churn could increase in times of distress;
- Fitch applies a 6.5x multiple to arrive at an adjusted EV of $1.7
billion, supported by Ivanti's scale, strong margins and highly
recurring revenues;
- The median reorganization EV/EBITDA multiple for the 71 TMT
bankruptcy cases that had sufficient information for an exit
multiple estimate to be calculated was 5.9x. Of these companies,
five were in the software sector: Allen Systems Group, Inc (8.4x);
Avaya, Inc. (2023: 7.5x, 2017: 8.1x); Aspect Software Parent, Inc.
(5.5x), Sungard Availability Services Capital, Inc. (4.6x), and
Riverbed Technology Software (8.3x);
- Fitch assumes that the $175 million revolver for Ivanti is fully
drawn, as companies typically utilize credit revolvers when
experiencing financial distress;
- Fitch estimates strong recovery prospects for the first lien
credit facilities and rates them 'BB-'/'RR2', or two notches above
Ivanti's 'B' IDR. Fitch estimates limited recovery prospects for
the second lien term loan and rates it 'CCC+'/'RR6', two notches
below Ivanti's IDR.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Inability to make timely progress in extending the maturity date
on the RCF could lead to a multi-notch downgrade;
- EBITDA leverage sustained above 7.0x;
- (CFO-capex)/debt sustained below 5.0%;
- EBITDA interest coverage sustained below 1.5x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Stabilization of the ratings is dependent on making timely
progress in extending the RCF;
- EBITDA leverage sustained below 5.5x;
- (CFO-capex)/debt sustained above 8.0%;
- EBITDA interest coverage sustained above 3.0x.
Liquidity and Debt Structure
Constrained Liquidity: As of Sept. 2024, Ivanti reported a cash
balance of $8 million. The outstanding balance on the RCF, due to
mature in Dec. 2025, was $76 million out of a total capacity of
$175 million in Sept. 2024. Although Fitch expects Ivanti to
generate FCF of approximately $67 million in 2025, this amount,
combined with the current cash balance, is insufficient to fully
repay the revolver. As a result, the company will require an
extension or refinancing of the revolver to ensure it can meet its
debt servicing obligations. Without securing an extension, the
company will face liquidity challenges.
Debt Structure: Ivanti's debt structure is comprised of a $175
million RCF ($76 million outstanding as of Sept. 2024), first lien
term loan debt of $2.2 billion, and a second lien $545 million term
loan. The revolver, first lien term loan, and second lien term loan
have maturities of 2025, 2027, and 2028, respectively.
Issuer Profile
Ivanti Software Inc. is an enterprise software company
headquartered in South Jordan, Utah. The company specializes in IT
security and systems management software, offering solutions for
Zero Trust Security, Unified Endpoint Management (UEM), and IT
Service Management (ITSM).
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Ivanti Software, Inc. LT IDR B Rating Watch On B
senior secured LT BB- Rating Watch On RR2 BB-
Senior Secured
2nd Lien LT CCC+ Rating Watch On RR6 CCC+
Icon Software
Holdings, Inc. LT IDR B Rating Watch On B
J & P FLASH: To Sell Properties to Triple Net Properties
--------------------------------------------------------
J & P Flash, Inc. seeks approval from the U.S. Bankruptcy Court for
the Western District of Tennessee, Western Division, to sell its
properties, free and clear of all liens, interests, and
encumbrances.
The Debtor's Properties are located at 301 Glen Bailey Dr., West
Memphis, AR 72301, 809 E. Barton Ave, West Memphis, AR 72301, 120
South First Street, West Memphis, Arkansas, 110 West Polk Ave, West
Memphis, AR 72301, 120 S Woods St, West Memphis, AR 72301, and 121
West Polk Ave, West Memphis, AR 72301.
The Debtor is a Tennessee corporation. The Debtor owns and operates
two ministorage facilities in West Memphis, Arkansas. One
mini-storage facility is located at 809 E. Barton/301 Glen Bailey
Drive, West Memphis, Arkansas. The Debtor owns a second ministorage
facility located at 110 W. Polk Avenue, 121 W. Polk Avenue, 120 S.
Woods Street, West Memphis, Arkansas as well as an adjacent parking
lot located at 120 S. 1st Avenue, West Memphis, Arkansas.
One or more parcels comprising the Property were encumbered by
liens asserted by Southern Bancorp Bank as successor to Premier
Bank f/k/a First Community Bank of Eastern Arkansas, Arkansas,
Department of Finance and Administration, FNBC Bank, Core-Mark
Distributors, Inc., Buddy H. Suiter, Anita C. Phillips, Gary Joe
Williams and Allen Williams as co-Trustees of the Maxine Williams
Family Trust, Branch and Thompson, JNHLM, U.S. Department of
Treasury (Internal Revenue Service), the Jerry Bell Stephens and
Whyneele E. Stephens Family Trust, Magness Oil Company, Anstaff
Bank, and PIRS Capital, some of which liens are disputed by the
Debtor and/or have been satisfied but may or may not have been
released.
The liens of Anstaff Bank, PIRS Capital, the Williams Family Trust
and Branch & Thompson, and Magness have been satisfied and/or
released.
The only remaining liens against the Property are:
i. Estate of Buddy Suiter
ii. Southern Bancorp Bank as successor to Premier Bank
iii. U.S. Department of Treasury (IRS)
iv. Arkansas Department of Finance & Administration (DFA)2
v. FNBC Bank
vi. JNLHM, Inc.
vii. Jerry Bell Stephens and Whyneele E. Stephens Family Trust,
viii. Core-Mark Distributors, Inc.
The Debtor enters a purchase agreement with Triple Net Properties,
LLC for the Property with the purchase price of $2,000,000, subject
to the terms of the Agreement.
An agreement to purchase all of the personal property located at
the Property, other than Excluded Assets under the Purchase
Agreement, for the price of $750,000.
The sale proceeds of $ 2,750,000 will be distributed as as provided
and with any remaining proceeds being paid to the Debtor for
distribution pursuant to the Debtor's confirmed Plan. At closing,
Cowling Title Company shall be authorized to distribute the net
sale proceeds after payment of customary and usual closing costs,
real estate taxes, attorneys fees and real estate commissions to
the creditors.
The Debtor has given notice of the motion to all parties on the
Matrix, which includes all creditors, lessors, taxing authorities,
and regulatory authorities.
About J & P Flash Inc.
J&P Flash, Inc., a company in West Memphis, Ariz., filed a petition
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. W.D.
Tenn. Case No. 21-23968) on Dec. 1, 2021, with up to $50,000 in
assets and up to $10 million in liabilities. Dwayne Jones, vice
president of J&P Flash, signed the petition.
Judge Denise E. Barnett oversees the case.
Glankler Brown, PLLC serves as the Debtor's legal counsel.
JERVOIS TEXAS: Hires PwC US Tax as Tax Restructuring Provider
-------------------------------------------------------------
Jervois Texas, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ PwC
US Tax LLP as tax restructuring services provider.
The firm will provide recurring tax services and tax restructuring
SOW.
The firm's professionals will be paid at these hourly rates for
recurring tax services:
Partner/Principal $1,200
Managing Director $1,100
Director $950
Senior Manager $850
Manager $750
Senior Associate $650
Associate $500
The firm's professionals will be paid at these hourly rates for tax
restructuring services:
Partner/Principal $1,200
Managing Director $1,100
Director $950
Senior Manager $850
Manager $750
Senior Associate $650
Associate $500
PwC US Tax will also seek reimbursement for out-of-pocket expenses
incurred.
The firm received a total retainer of $300,000 for tax
restructuring services from the Debtors.
Hallie Caywood, a partner at PwC US Tax, 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:
Hallie Caywood
PwC US Tax LLP
835 West 6th Street, Suite 1600
Austin, TX 78703
Telephone: (512) 477-1300
About Jervois Texas LLC
Jervois Texas LLC and its affiliates are global suppliers of
advanced manufactured cobalt products, serving customers in the
powder metallurgy, battery and chemical industries. The Debtors'
principal asset base is comprised of an operating cobalt facility
in Finland and non-operating plants in both the United States and
Brazil.
Jervois Texas LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90002) on
January 28, 2025. Seven affiliates also filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code: Jervois Global
Limited, Jervois Suomi Holding Oy, Jervois Finland Oy, Jervois
Japan Inc., Formation Holding US, Inc., Jervois Mining USA Limited,
and Jervois Americas LLC.
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
The Debtors' restructuring counsel are Duston K. McFaul, Esq., at
Sidley Austin LLP, in Houston, Texas, and Stephen E. Hessler, Esq.,
Anthony Grossi, Esq., Andrew Townsell, Esq., and Weiru Fang, Esq.,
at Sidley Austin LLP, in New York.
The Debtors' investment banker is Moelis & Company. The Debtors'
restructuring advisor is FTI Consulting, Inc. The Debtors' claims,
noticing & solicitation agent is Stretto, Inc. The Debtors' tax
advisor is Pricewaterhouse Coopers International Limited.
JERVOIS TEXAS: Seek to Hire Sidley Austin as Bankruptcy Counsel
---------------------------------------------------------------
Jervois Texas, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
Sidley Austin LLP as counsel.
The firm will render these services:
(a) provide legal advice with respect to the Debtors' powers
and duties in the continued operation of their business;
(b) take all necessary action to protect and preserve the
Debtors' estates,
(c) prepare on behalf of the Debtors all necessary legal
papers in connection with the administration of their estates;
(d) advise the Debtors concerning, and prepare responses to,
legal papers that may be filed by other parties in these Chapter 11
cases;
(e) attend meetings and negotiate with representatives of
creditors and other parties in interest, attend court hearings, and
advise the Debtors on the conduct of their Chapter 11 cases;
(f) prepare and refine on behalf of the Debtors a Chapter 11
plan, disclosure statement, and/or all related agreements and
documents necessary to facilitate an exit from these Chapter 11
cases, take appropriate action on behalf of them to obtain
confirmation of such plan, and take such further actions as may be
required in connection with the implementation of such plan;
(g) provide legal advice and perform legal services with
respect to matters relating to corporate governance, the
interpretation, application or amendment of the Debtors'
organizational documents, material contracts, and matters involving
them with their officers, directors and managers;
(h) provide legal advice and legal services with respect to
corporate structuring, corporate governance, financing matters, and
other general legal issues for the Debtors to the extent requested
by them; and
(i) perform all other necessary legal services in connection
with the prosecution of these Chapter 11 cases.
The firm will be paid at these hourly rates:
Partners $1,710 - $2,610
Associates $835 - $1,530
Paraprofessionals $470 - $665
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received an advance retainer
of $3,500,000 from the Debtors.
Anthony Grossi, Esq., a partner at Sidley Austin, 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:
Anthony Grossi, Esq.
Sidley Austin LLP
2021 McKinney Avenue Suite 2000
Dallas, TX 75201
Telephone: (214) 981-3300
Facsimile: (214) 981-3400
About Jervois Texas LLC
Jervois Texas LLC and its affiliates are global suppliers of
advanced manufactured cobalt products, serving customers in the
powder metallurgy, battery and chemical industries. The Debtors'
principal asset base is comprised of an operating cobalt facility
in Finland and non-operating plants in both the United States and
Brazil.
Jervois Texas LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90002) on
January 28, 2025. Seven affiliates also filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code: Jervois Global
Limited, Jervois Suomi Holding Oy, Jervois Finland Oy, Jervois
Japan Inc., Formation Holding US, Inc., Jervois Mining USA Limited,
and Jervois Americas LLC.
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
The Debtors' restructuring counsel are Duston K. McFaul, Esq., at
Sidley Austin LLP, in Houston, Texas, and Stephen E. Hessler, Esq.,
Anthony Grossi, Esq., Andrew Townsell, Esq., and Weiru Fang, Esq.,
at Sidley Austin LLP, in New York.
The Debtors' investment banker is Moelis & Company. The Debtors'
restructuring advisor is FTI Consulting, Inc. The Debtors' claims,
noticing & solicitation agent is Stretto, Inc. The Debtors' tax
advisor is Pricewaterhouse Coopers International Limited.
JERVOIS TEXAS: Seeks to Hire FTI Consulting as Financial Advisor
----------------------------------------------------------------
Jervois Texas, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ FTI
Consulting, Inc. as financial advisor.
The firm will provide these services:
(a) act with and on behalf of the Debtors in connection with
activities related to operational analysis and reporting
obligations;
(b) assist the Debtors in meeting all obligations;
(c) engage with creditors or their advisors on matters related
to the Chapter 11 cases or to the Debtors' operations;
(d) attend meetings, presentations, and negotiations as may be
requested by the Debtors;
(e) render such other restructuring, general business
consulting, or such other assistance as Debtors management or
counsel may deem necessary consistent with the role of a financial
advisor to the extent that it would not be duplicative of services
provided by other professionals; and
(f) assist the Debtors and their other advisors with any other
customary services typical for an engagement of this type as
mutually agreed to by the Debtors and FTI from time to time.
The hourly rates of the firm's counsel and staff are as follows:
Senior Managing Directors $1,185 - $1,525
Directors/Senior Directors/Managing Directors $890 - $1,155
Consultants/Senior Consultants $485 - $820
Aministrative/Paraprofessionals $190 - $385
In addition, the firm will seek reimbursement for expenses
incurred.
In the 90 days prior to the petition date, FTI received $720,000
from the Debtors.
Brian Martin, a senior managing director at FTI, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Brian Martin
FTI Consulting, Inc.
2001 Ross Avenue, Suite 650
Dallas, TX 75201
Telephone: (214) 397-1600
Facsimile: (214) 397-1790
About Jervois Texas LLC
Jervois Texas LLC and its affiliates are global suppliers of
advanced manufactured cobalt products, serving customers in the
powder metallurgy, battery and chemical industries. The Debtors'
principal asset base is comprised of an operating cobalt facility
in Finland and non-operating plants in both the United States and
Brazil.
Jervois Texas LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90002) on
January 28, 2025. Seven affiliates also filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code: Jervois Global
Limited, Jervois Suomi Holding Oy, Jervois Finland Oy, Jervois
Japan Inc., Formation Holding US, Inc., Jervois Mining USA Limited,
and Jervois Americas LLC.
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
The Debtors' restructuring counsel are Duston K. McFaul, Esq., at
Sidley Austin LLP, in Houston, Texas, and Stephen E. Hessler, Esq.,
Anthony Grossi, Esq., Andrew Townsell, Esq., and Weiru Fang, Esq.,
at Sidley Austin LLP, in New York.
The Debtors' investment banker is Moelis & Company. The Debtors'
restructuring advisor is FTI Consulting, Inc. The Debtors' claims,
noticing & solicitation agent is Stretto, Inc. The Debtors' tax
advisor is Pricewaterhouse Coopers International Limited.
JERVOIS TEXAS: Seeks to Hire Moelis & Company as Investment Banker
------------------------------------------------------------------
Jervois Texas, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
Moelis & Company LLC as investment banker.
The firm will provide these services:
(a) assist the Debtors in reviewing and analyzing their
results of operations, financial condition and business plan;
(b) assist the Debtors in reviewing and analyzing any
potential transaction;
(c) assist the Debtors in negotiating any transaction;
(d) assist the Debtors in contacting potential purchasers of a
Capital Transaction that Moelis and the Debtors agree are
appropriate, and meet with and provide them with the information
memorandum for a potential Capital Transaction prepared it and such
additional information about their assets, properties or businesses
that is acceptable to them, subject to customary business
confidentiality agreements;
(e) advise the Debtors in reviewing, analyzing any potential
Capital Transaction and provide related placement agent services in
connection with a Capital Transaction as Moelis and them may
mutually agree upon in writing; and
(f) provide such other financial advisory and investment
banking services in connection with a transaction as Moelis and the
Debtors may mutually agree upon in writing.
The firm will be paid at these following fees:
(a) monthly fee of $150,000;
(b) restructuring fee equal to 2 percent of the aggregate
gross amount or par value of liabilities restructured in such
restructuring;
(c) capital transaction fee of $992,500.
In addition, the firm will seek reimbursement for expenses
incurred.
Adam Steinberg, a managing director at Moelis & Company, 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:
Adam Steinberg
Moelis & Company LLC
Two Allen Center
1200 Smith Street, Suite 1900
Houston, TX 77002
Telephone: (713) 343-6420
Facsimile: (713) 343-6421
About Jervois Texas LLC
Jervois Texas LLC and its affiliates are global suppliers of
advanced manufactured cobalt products, serving customers in the
powder metallurgy, battery and chemical industries. The Debtors'
principal asset base is comprised of an operating cobalt facility
in Finland and non-operating plants in both the United States and
Brazil.
Jervois Texas LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90002) on
January 28, 2025. Seven affiliates also filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code: Jervois Global
Limited, Jervois Suomi Holding Oy, Jervois Finland Oy, Jervois
Japan Inc., Formation Holding US, Inc., Jervois Mining USA Limited,
and Jervois Americas LLC.
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
The Debtors' restructuring counsel are Duston K. McFaul, Esq., at
Sidley Austin LLP, in Houston, Texas, and Stephen E. Hessler, Esq.,
Anthony Grossi, Esq., Andrew Townsell, Esq., and Weiru Fang, Esq.,
at Sidley Austin LLP, in New York.
The Debtors' investment banker is Moelis & Company. The Debtors'
restructuring advisor is FTI Consulting, Inc. The Debtors' claims,
noticing & solicitation agent is Stretto, Inc. The Debtors' tax
advisor is Pricewaterhouse Coopers International Limited.
JOANN INC: Sets to Close Abilene Location as Part of Chapter 11
---------------------------------------------------------------
Trish Choate of Abilene Reporter-News reports that Joann Fabrics &
Crafts, a longtime presence in Abilene, is set to close as part of
its parent company's latest bankruptcy.
The store at 3206 S. Clack Drive is among the locations scheduled
for closure under the Chapter 11 bankruptcy process, according to a
USA Today report Wednesday.
Joann Fabrics opened its Abilene location in August 2016, taking
over the space previously occupied by Hancock Fabrics, which had
closed a month earlier due to bankruptcy.
As part of its restructuring, Joann Fabrics plans to shut down 533
stores across 49 states, leaving around 800 locations in
operation.
This marks the retailer's second bankruptcy filing in less than a
year. The company previously sought financial relief before going
private in March 2024, USA Today reported.
About Joann Inc.
JOANN operates in the fabric and sewing industry with one of the
largest assortments of arts and crafts products. JOANN has
transformed itself into a fully-integrated, digitally-connected
omni-channel retailer.
JOANN reported a net loss of $200.6 million for the year ended Jan.
28, 2023.
On March 18, 2024, JOANN Inc. and 9 affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 24-10418). JOANN listed
$2,257,700,000 in assets against $2,440,700,000 in liabilities as
of Oct. 28, 2023.
Judge Craig T. Goldblatt oversees the case.
The Debtors tapped Latham & Watkins, LLP as legal counsel; Houlihan
Lokey Capital, Inc. as investment banker; and Alvarez & Marsal
North America, LLC, as financial advisor. Kroll Restructuring
Administration, LLC is the noticing agent.
JOANN Inc., on April 30, 2024 successfully emerged from its
court-supervised financial restructuring process.
2nd Attempt
Joann Inc. sought voluntary Chapter 11 petition for the second time
under U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10068) on
Jan. 15, 2025.
Kirkland & Ellis is serving as legal counsel to JOANN, with
Centerview Partners LLC serving as financial advisor and Alvarez &
Marsal North America, LLC serving as restructuring advisor.
KDHX: Two Steps from Bankruptcy Filing, Says Lawyer
---------------------------------------------------
Jeremy D. Goodwin of St. Louis Public Radio reports that community
radio station KDHX is on the brink of bankruptcy, with less than
$7,000 in cash at the end of January and discussions underway about
selling its assets, an attorney for the station revealed in court
Thursday, February 13, 2025.
"The organization is two steps from bankruptcy. They cannot pay
their creditors," said John M. Reynolds during a St. Louis Circuit
Court hearing. "Running the station costs money, even if the
volunteers are free. And money is the one thing they don't have."
KDHX laid off three of its six staff members on January 31, 2025,
the same day it dismissed nearly all of its volunteers and halted
live broadcasting. The station also lost its building insurance,
preventing volunteers from using its Grand Center studios, Reynolds
said.
The nonprofit operated on a $1.2 million budget in fiscal 2023,
with Executive Director Kelly Wells earning a $106,082 salary, the
report states.
According to St. Louis Public Radio, Reynolds was defending the
station against a motion from former KDHX DJs seeking an emergency
injunction to reinstate dismissed volunteers' membership, which
grants voting rights in board elections and major decisions,
including a potential sale of the station's broadcast license. KDHX
dismissed about 120 volunteers, leaving only one or two voting
members outside of its eight-person board. One board member,
Courtney Dowdall, was suspended after her first meeting, though it
is unclear if she is included in the remaining total.
Plaintiffs' attorney Benjamin Askew argued that the dismissals were
designed to strip volunteers of their voting rights, allowing
station leadership to maintain full control amid its financial
crisis. "There was no 'fair and reasonable' process, as required by
state law," he said.
Reynolds countered that the decision was purely operational,
stating the station no longer needed volunteers.
KDHX's annual meeting is scheduled for Tuesday, but Reynolds said
no votes will take place. If leadership decides to sell the
broadcast license, two-thirds of voting members must
approve—currently, that would require only six people.
Reynolds warned that if the court mandates individual appeal
hearings for dismissed volunteers, the process could become too
costly, delaying asset sales and potentially leading to a "fire
sale" of the station's assets.
Judge Joan Moriarty has not yet ruled on the injunction request.
About KDHX
KDHX is a community radio station in St. Louis, Missouri.
LEITMOTIF SERVICES: Gets Interim OK to Use Cash Collateral
----------------------------------------------------------
Leitmotif Services, LLC got the green light from the U.S.
Bankruptcy Court for the Southern District of Florida to use cash
collateral.
The order signed by Judge Laurel Isicoff authorized the company to
use cash collateral to operate its business according to its
projected budget, with a 10% variance.
Kalamata, the alleged secured creditor, will be granted replacement
liens on the company's post-petition cash collateral to the same
extent and with the same validity and priority as its
pre-bankruptcy liens.
About Leitmotif Services
Leitmotif Services, LLC is a retailer of a wide selection of
electric scooters. It is based in Miami, Fla., with a self-operated
service center in Brooklyn, N.Y., and an expanding network of
service partners.
Leitmotif Services sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-21215) on
October 28, 2024, with total assets of $1,410,835 and total
liabilities of $2,584,500. Carol Fox of GlassRatner serves as
Subchapter V trustee.
Judge Laurel M. Isicoff handles the case.
The Debtor is represented by:
Brett Lieberman, Esq.
Edelboim Lieberman, PLLC
2875 NE 191st St.
Penthouse One
Miami, FL 33180
Tel: 305-786-9909
Email: brett@elrolaw.com
LIBERATED BRANDS: U.S. Trustee Appoints Creditors' Committee
------------------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Liberated
Brands, LLC and its affiliates.
The committee members are:
1. Alpha Source, Inc.
Attn: Keith Lee, President
7711 Amigos Ave., Ste. E
Downey, CA 90242
Phone: 310-515-5560, ext. 212
Email: keith@alphasourceco.com
2. Brookfield Properties
Attn: Julie (Minnick) Bowden, National Bankruptcy Director
350 N. Orleans St., Suite 300
Chicago, IL 60654
Phone: 312-213-9545
Email: Julie.Bowden@bpretail.com
3. Gramtech Knit, Dying, Fin. & Garm. Ind Ltd
Attn: David Yarbrough, Executive Director
Abc Heritage (4th & 5th Floor, 2&4)
Jashimuddin Avenue, Sector-3
' Uttara C/, Dhaka, 1230
Bangledesh
Phone: 214-995-4466
Email: david.yarbrough@mac.com
4. MSP Group, Inc.
Attn: Jong "Johnny" Lim, CEO
206 W. 140th Street
Los Angeles, CA 90061
Phone: 301-508-1701
Email: johnny110389@gmail.com
5. Ningbo Jehson Textiles Import & Export Co. Ltd.
Attn: Jiangang "James" Ou, Esq.
Archer & Greiner P.C.
3040 Post Oak Blvd., Suite 1800-150
Houston, TX 77056
Phone: 281-968-5227
Email: jou@archerlaw.com
6. O5 BNG LLC
Attn: Eric Spiel, CFO
31 West 34th Street
New York, NY 10001
Phone: 215-499-2080
Email: ESpiel@O5Group.com
7. Simon Property Group, Inc.
Attn: Ronald M. Tucker, Vice President/Bankruptcy Counsel
225 West Washington Street
Indianapolis, IN 46204
Phone: 317-263-2346
Email: rtucker@simon.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 Liberated Brands
Liberated is in the sport, outdoor, and lifestyle apparel industry.
Liberated offers its customers access to products under
high-quality brands such as Volcom, Billabong, Quiksilver, Spyder,
RVCA, Roxy, and Honolua, in its 124 retail locations across the
United States and through other channels. As an omnichannel apparel
licensee with deep-rooted and unique expertise in trend forecasting
and brand development, Liberated has attracted loyal customers in
more than 100 countries. Liberated operates regional headquarters
in North America, Europe, Japan, and Australia.
On Feb. 2, 2025, Liberated Brands LLC and eight affiliated debtors
filed voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. D. Del. Lead Case No. 25-10168). The
cases are pending before Honorable Judge J. Kate Stickles.
Liberated has tapped Kirkland & Ellis, LLP and Klehr Harrison
Branzburg LLP to facilitate the Chapter 11 restructuring process.
AlixPartners LLC is the Debtors' financial advisor. Stretto is the
claims agent.
JP Morgan has retained Morgan, Lewis & Bockius LLP and Berkeley
Research Group, LLC.
LJB LLC: Denied Another Extension to Use Cash Collateral
--------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts denied
LJB, LLC a further extension to use cash collateral.
The company's authority to use cash collateral terminated on Jan.
31.
About LJB LLC
LJB LLC sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Mass. Case No. 24-12236) on November 7, 2024, with
$1 million to $10 million in both assets and liabilities. Kenneth
L. Brown, manager, signed the petition.
Judge: Janet E Bostwick oversees the case.
The Debtor is represented by:
Gary W. Cruickshank
Law Office Of Gary W. Cruickshank
Tel: 617-330-1960
Email: gwc@cruickshank-law.com
MI LIQUIDATION: Trustee Hires William F. Murray as Consultant
-------------------------------------------------------------
George Sanderson III, the trustee appointed in the Chapter 11 case
of MI Liquidation, Inc., seeks approval from the U.S. Bankruptcy
Court for the Eastern District of North Carolina to employ William
Murray, a certified public accountant practicing in Fairfield
County, Connecticut, as insurance consultant.
The consultant will provide advice concerning the insurance and
coverage matters relevant to the trustee's liquidation of the
bankruptcy estate.
Mr. Murray will be compensated at his hourly rate of $500.
Mr. Murray 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 consultant can be reached at:
William F. Murray, CPA
Fairfield County, CT
About MI Liquidation
MI Liquidation, Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C. Case No.
24-01757) on May 25, 2024, listing $500,001 to $1 million in assets
and $10,000,001 to $50 million in liabilities.
Judge David M. Warren presides over the case.
The Debtor tapped John A. Northen, Esq., at Northen Blue, LLP as
counsel.
George Sanderson III was appointed as trustee in the Chapter 11
case. The trustee tapped William Murray, CPA as insurance
consultant.
MIRACLE RESTAURANT: Gets OK to Use Cash Collateral Until March 5
----------------------------------------------------------------
Miracle Restaurant Group, LLC received eighth interim approval from
the U.S. Bankruptcy Court for the Eastern District of Louisiana to
use cash collateral until March 5.
The company can use funds in its bank account and cash from
operations based on its projected budget, with a 15% flexibility
per line item.
Creditors with a security interest in cash collateral were granted
replacement liens on the company's assets, including inventory,
accounts receivable and employee retention tax credit claims, to
the same extent and with the same validity and priority as their
pre-bankruptcy liens.
Secured creditors were also granted a superpriority administrative
claim to protect against any loss in value of their collateral.
Meanwhile, First Franchise Capital Corporation, one of the secured
creditors, will receive a monthly payment of $14,062, as set forth
in the budget.
A final hearing on the motion is scheduled for March 5.
About Miracle Restaurant Group
Miracle Restaurant Group, LLC owns and operates a fast-food
restaurant in Covington, La.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. La. Case No. 24-11158) on June 20,
2024, with $1 million to $10 million in both assets and
liabilities. Dwayne Murray, Esq., at Murray & Murray, LLC, serves
as Subchapter V trustee.
Judge Meredith S. Grabill presides over the case.
The Debtor is represented by Douglas S. Draper, Esq., and Michael
E. Landis, Esq., at Heller, Draper & Horn, LLC.
First Franchise Capital Corp., as secured creditor, is represented
by:
Jeffrey M. Hendricks, Esq.
Bricker Graydon, LLP
312 Walnut Street, Suite 1800
Cincinnati, OH 45202
Telephone:(513) 629-2786
Facsimile: (513) 651-3836
Email: jhendricks@brickergraydon.com
MK & UK PALM: Secured Creditor Files Liquidating Plan
-----------------------------------------------------
Wilmington Trust, National Association, as Trustee for the Benefit
of the Registered Holders of Wells Fargo Commercial Mortgage Trust
2018-C-47, Commercial Mortgage Pass-Through Certificates, Series
2018-C47, secured creditor of MK & UK Palm LLC, submitted a First
Amended Disclosure Statement to accompany its First Amended Chapter
11 Plan for the Debtor dated February 7, 2025.
The Debtor is a limited liability company organized under New York
law, and is a single asset real estate company. The Debtor owns a
commercial property located at commonly known as 3823 Guess Road,
Durham, North Carolina, 27705, a commercial shopping center known
as Willowdale Shopping Center (the "Property").
As a result of numerous additional events of default (as set forth
at length in the motion by the Secured Creditor to excuse the pre
petition property receiver's compliance with Section 543 of the
Bankruptcy Code), the Secured Creditor elected to file a Verified
Complaint for Appointment of Receiver, Breach of Contract, and
Other Equitable and Legal Relief on May 12, 2022, in the General
Court of Justice, Superior Court Division, in Durham County, North
Carolina (the "State Court"), case no. 22-CVS-2356 (the "Receiver
Action").
By order dated October 10, 2022 and entered on the State Court's
docket that date (the "Receiver Order"), the State Court appointed
Gregg Williams as receiver (the "Receiver") for the Property, over
the opposition of the Debtor.
The Marketing Agent shall be responsible for designing and
implementing the Marketing Plan, whereby the Marketing Agent will
advertise and conduct one or more prompt, efficient, and orderly
sales (each, a "Sale") of the Assets. Allowed Claims shall be paid
from the Proceeds of any sale conducted under the Marketing Plan.
The Marketing Agent may initiate the Marketing Plan prior to
confirmation of the Plan. A Sale to a buyer (the "Purchaser")
pursuant to the Marketing Plan may occur any time after 45 days
after the Effective Date, and in any event the Marketing Plan shall
provide for a time frame for such Sale to occur as reasonably
determined by the Marketing Agent as part of the Marketing Plan.
The Plan is a plan of liquidation that the Secured Creditor
believes will ultimately maximize value for all its creditors. The
Marketing Plan and Auction are expected to produce the sale of the
Property to the qualified bidder who submits the highest and best
offer for the Property.
The Schedules list no priority claims and 21 total holders of
unsecured claims in the aggregate amount of $171,176.48.
Class 2 consists of Allowed General Unsecured Claims. Holders of
Allowed General Unsecured Claims in Class 2 shall receive the
greater of the following: one or more distributions on a Pro Rata
basis, up to 100% of such Allowed General Unsecured Claim plus such
other amounts to which Holders may be entitled so as to render them
not Impaired, in full and final satisfaction of such Allowed
General Unsecured Claim, at Proponent's election, from (a) the
remaining proceeds of the Distribution Fund, if any, promptly after
the payment in full in Cash of all of the following against the
Debtor: (i) Administrative Claims, (ii) Fee Claims, (iii) the Class
1 Claim, and (iv) Priority Tax Claims, or (b) Cash, if any,
remaining after the payment in full in Cash of all of the following
against the Debtor: (i) Administrative Claims, (ii) Fee Claims,
(iii) the Class 1 Claim, and (iv) Priority Tax Claims, such Cash
being payable upon (1) Assumption or (2) the conduct of the Auction
Sale if the Sale described above does not yield proceeds sufficient
to pay the amounts set forth in subparagraph (a) provided, however,
in no event will the amount of Cash distributed to the Holders of
Allowed General Unsecured Claims in Class 2 collectively shall not
be less than $25,000.00, distributed pro rata. Such minimum amount
to be distributed pursuant to (b) shall be referred to as the
"Baseline Class 2 Distribution."
Class 4 consists of Allowed Interests. Debtor shall have a Class 4
consisting of the holders of equity interests in the Debtor. Each
Holder of an Interest in the Debtor shall, in the event of a Sale,
receive a Pro Rata portion of the remaining proceeds of the
Distribution Fund, if any, after the payment of all classified and
unclassified Allowed Claims. In addition, the interests in Debtor
shall be cancelled and Debtor shall be deemed dissolved as of the
Effective Date, except to the extent that Proponent effectuates a
New Equity Issuance.
The Plan shall be funded with (a) Cash on hand remaining after the
Cash Transfer (but Proponent may elect to allow the Debtor to
retain an amount of Cash otherwise to be transferred pursuant to
the Cash Transfer to be included in the Distribution Fund) and (b)
the net proceeds of (i) a Sale of the Assets pursuant to the Bid
Procedures and (ii) a cash contribution from the Secured Creditor
(which Secured Creditor shall have no obligation to make other than
in amount sufficient (if the sum of (a) and (b)(i) above yields
insufficient proceeds to pay the amounts required to be paid under
this Plan) to pay the difference between (q) the sum of (i) Allowed
Administrative Claims, Allowed Priority Claims and the Baseline
Class 2 Distribution and (ii) the sum of (a) and (b)(i) or any
combination.
Through the assistance of Rosewood, there shall be conducted a Sale
process in accordance with the Marketing Plan or the Auction if the
Marketing Plan does not generate sufficient proceeds to pay the
Class 1 Claim in full, in either case resulting in a sale of the
Property, pursuant to Bankruptcy Code Sections 363 and 1123(a)(5),
free and clear of any and all Liens, Claims, and encumbrances
(except for Assumed Contracts) to the fullest extent provided by
the Bankruptcy Code or other applicable law.
The Sale Proceeds shall be used solely to fund the Distribution
Fund and utilized to satisfy payments consistent with the terms of
the Plan.
A full-text copy of the First Amended Disclosure Statement dated
February 7, 2025 is available at https://urlcurt.com/u?l=mZtx7M
from PacerMonitor.com at no charge.
Attorneys for Wilmington Trust, National Association:
PERKINS COIE LLP
Gary F. Eisenberg, Esq.
1155 Avenue of the Americas, 22nd Floor
New York, New York 10036-2711
Telephone: (212) 262-6900
Email: geisenberg@perkinscoie.com
About MK & UK Palm LLC
MK & UK Palm LLC is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)).
MK & UK Palm LLC sought relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 24-43103) on June 26, 2024. In the
petition filed by Meyer Lebovits, as manager, the Debtor estimated
assets and liabilities between $1 million and $10 million each.
The Honorable Bankruptcy Judge Nancy Hershey Lord handles the
case.
The Debtor is represented by:
Julie Curley, Esq.
KIRBY AISNER & CURLEY LLP
700 Post Road
Suite 237
Scarsdale, NY 10583
Tel: (914) 401-9503
Email: jcurley@kacllp.com
NORDICUS PARTNERS: Delays 10-Q for Q3 2024, Expects $391,527 Loss
-----------------------------------------------------------------
Nordicus Partners Corporation filed a Form 12b-25 with the
Securities and Exchange Commission to notify a delay in the
submission of its Quarterly Report on Form 10-Q for the period
ending Dec. 31, 2024.
The Company stated that it was unable to prepare its accounting
records and schedules in time for its independent registered public
accounting firm to complete the review of its financial statements
for inclusion in the Quarterly Report, despite reasonable efforts.
It is expected that the Form 10-Q, along with the unaudited
financial statements, will be filed within the five-day extension
period.
The Company anticipates reporting a net loss of approximately
$391,527 on revenues of $2,500 for the fiscal quarter ended Dec.
31, 2024.
About Nordicus Partners
Headquartered in Beverly Hills, CA, Nordicus Partners Corporation
is a financial consulting company, specializing in providing Nordic
companies with the best possible conditions to establish themselves
on the U.S. market, taking advantage of management's combined +90
years of experience in the corporate sector, serving in different
capacities both domestically and globally. The Company's core
competencies lie in assisting Danish as well as other Nordic and
international companies in different areas of corporate finance
activities.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2023, issued a "going concern"
qualification in its report dated July 2, 2024. The report cited
that the Company has an accumulated deficit, net losses, and
generated minimal revenue. These factors, among others, raise
substantial doubt about the Company's ability to continue as a
going concern.
For the fiscal year ended March 31, 2024, the Company had a net
loss of $298,202 compared to $8,472,216 in the prior year.
NORTHWEST RENEWABLE: Seeks to Tap James G. Murphy Co. as Auctioneer
-------------------------------------------------------------------
Northwest Renewable Energy Group, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Washington to employ
James G. Murphy, Co. as its auctioneer.
The firm will provide end-to-end service, handling all phases of
the auction process, from the initial inspection and evaluation to
buyer retrieval.
The firm will be paid at the following costs:
(a) commission of 9 percent of the gross sale proceeds;
(b) transportation costs to deliver the equipment from
Enumclaw/Raymond to Marysville (est. $27,000); and
(c) a buyer's premium of 3 percent for heavy machinery and
rolling stock or 13 percent for miscellaneous equipment and tools.
Todd Meyers, vice president at James G. Murphy, 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:
Todd Meyers
James G. Murphy, Co.
5605 Inland Shores Way N., Ste. 102
Keizer, OR 97303
Telephone: (503) 463-4444
About Northwest Renewable Energy Group
Northwest Renewable Energy Group LLC, doing Arsiero Logging, is
primarily engaged in cutting timber, producing rough, round, hewn,
or riven primary wood, and producing wood chips in the forest.
Northwest Renewable Energy Group LLC sought relief under Subchapter
V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case
No. 24-11520) on June 18, 2024. In the petition signed by B.
Michael Malgarini, as managing member, the Debtor reports total
assets amounting to $3,392,164 and total liabilities of
$5,541,377.
Honorable Bankruptcy Judge Timothy W. Dore handles the case.
The Debtor is represented by Thomas A. Buford, Esq. at Bush
Kornfeld LLP.
NOTHIN' BUT WASTE: 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 Nothin' But Waste, LLC.
About Nothin' But Waste
Nothin' But Waste, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. S.C. Case No. 24-04521) on December
19, 2024, listing between $100,001 and $500,000 in both assets and
liabilities. Christine Brimm, Esq., serves as Subchapter V
trustee.
Judge L. Jefferson Davis IV oversees the case.
Richard A Steadman, Jr., Esq., at Steadman Law Firm, P.A.,
represents the Debtor as bankruptcy counsel.
OLIVIA J STUDIOS: Court OKs Deal to Use JPMorgan's Cash Collateral
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
approved a stipulation between Olivia J Studios, LLC and JPMorgan
Chase Bank, N.A., allowing the company to use the lender's cash
collateral to pay its operating expenses.
The stipulation authorizes Olivia J Studios to use cash collateral
until the earlier of the effective date of any confirmed Chapter 11
plan of reorganization; dismissal or conversion of the company's
Chapter 11 case to one under Chapter 7; or the company's default
under the stipulation and failure to cure the default.
As protection, JPMorgan will be granted a replacement lien on all
of the company's assets or interests in assets acquired on or after
the company's bankruptcy filing.
JPMorgan will also receive a monthly payment of $180 as additional
protection.
The court's approval of the stipulation does not constitute
approval of any operational expenses that serve as payment of
professional fees or expenses. Employment and fee applications must
be filed and separate orders must be entered before any payments
are made to professionals.
About Olivia J Studios
Olivia J Studios, LLC filed Chapter 11 petition (Bankr. C.D. Calif.
Case No. 24-11956) on Nov. 22, 2024, listing up to $50,000 in
assets and up to $500,000 in liabilities. David Blair, managing
member of Olivia J Studios, signed the petition.
Judge Victoria S. Kaufman oversees the case.
The Debtor is represented by Thomas B. Ure, Esq., at Ure Law Firm.
JPMorgan Chase Bank, N.A., as lender, is represented by:
Todd S. Garan, Esq.
Aldridge Pite, LLP
3333 Camino del Rio South, Suite 225
San Diego, CA 92108
Phone: 877-319-8840
Email: tgaran@aldridgepite.com
OMEGA THERAPEUTICS: Hires Kroll as Claims and Noticing Agent
------------------------------------------------------------
Omega Therapeutics, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to employ Kroll Restructuring
Administration LLC as claims and noticing agent.
Kroll will oversee the distribution of notices and will assist in
the maintenance, processing, and docketing of proofs of claim filed
in the Chapter 11 case of the Debtor.
Prior to the petition date, the Debtor provided Kroll an advance in
the amount of $50,000 on February 7, 2025.
Benjamin Steele, a managing director at Kroll, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Benjamin Steele
Kroll Restructuring Administration LLC
One World Trade Center
285 Fulton Street, 31st Floor
New York, NY 10007
Telephone: (212) 871-2000
About Omega Therapeutics
Omega Therapeutics Inc. is a biotechnology company in its
development stages, leading innovation in a novel approach to
leverage mRNA therapeutics as programmable epigenetic treatments
through its OMEGA Epigenomic Programming platform. The OMEGA
platform harnesses the power of epigenetics, the mechanism that
controls gene expression and every aspect of an organism's life
from cell genesis, growth, and differentiation to cell death. The
OMEGA platform enables control of fundamental epigenetic processes
to correct the root cause of disease by returning aberrant gene
expression to a normal range without altering native nucleic acid
sequences.
Omega Therapeutics Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 25-10211) on February 10,
2025. In its petition, the Debtor reports total assets as of Jan.
28, 2025 amounting to $137,529,941 and total debts as of Jan. 28,
2025 of $140,421,354.
Honorable Bankruptcy Judge Brendan Linehan Shannon handles the
case.
The Debtor is represented by Derek C. Abbott, Esq., Eric D.
Schwartz, Esq., Andrew R. Remming, Esq., Daniel B. Butz, Esq.,
Jonathan M. Weyand, Esq., and Luke Brzozowski, Esq., at Morris,
Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware.
The Debtor's restructuring advisor is Triple P RTS, LLC
The Debtor's investment banker is Triple P Securities, LLC.
The Debtor's special counsel is Latham & Watkins LLP.
The Debtor's claims agent & administrative advisor is Kroll
Restructuring Administration LLC.
OUR WICKED: Seeks to Hire Maltz Auctions as Broker and Auctioneer
-----------------------------------------------------------------
Our Wicked Lady, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of New York to employ Maltz Auctions, Inc.
doing business as Maltz Auctions as broker and auctioneer.
The Debtor needs a broker and auctioneer to market and sell its
business.
The firm will receive a commission in the amount of 10 percent of
the gross proceeds from the sale. 2 percent of the buyer's premium
will be paid to the authorized purchaser's broker as a commission,
if required.
Richard Maltz, chief executive officer at Maltz Auctions, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Richard B. Maltz
Maltz Auctions, Inc.
39 Windsor Place
Central Islip, NY 11722
Telephone: (516) 349-7022
About Our Wicked Lady
Our Wicked Lady LLC is a venue of rehearsal space, art studios &
rooftop bar with live music, films & snacks.
Our Wicked Lady LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-43390) on August 14,
2024. In the petition filed by Keith Hamilton, managing member, the
Debtor reports estimated assets up to $50,000 and estimated
liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Nancy Hershey Lord handles the
case.
John Lehr, PC represents the Debtor as counsel.
OUTLOOK THERAPEUTICS: Reports Net Income of $17.38M in Q1 2025
--------------------------------------------------------------
Outlook Therapeutics, Inc., submitted its Quarterly Report on Form
10-Q to the Securities and Exchange Commission, revealing net
income of $17.38 million for the three months ending Dec. 31, 2024.
In comparison, the Company posted a net loss of $11.18 million for
the same period in 2023.
As of Dec. 31, 2024, the Company had $17.01 million in total
assets, $67.30 million in total liabilities, and a total
stockholders' deficit of $50.29 million.
Outlook Therapeutics stated, "We have not generated any revenue
from product sales. Since inception, we have incurred net losses
and negative cash flows from our operations. Through December 31,
2024, we have funded substantially all of our operations with
$532.6 million in net proceeds from the sale and issuance of our
equity securities, debt securities and borrowings under debt
facilities. We have also received an aggregate of $29.0 million
pursuant to emerging markets collaboration and licensing agreements
for our inactive biosimilar development programs.
"We evaluated whether there are conditions or events considered in
the aggregate, that raise substantial doubt about our ability to
continue as a going concern. We do not believe that the existing
cash and cash equivalents as of December 31, 2024, together with
net proceeds from the sale of shares of common stock in the Warrant
Inducement Transaction, are sufficient to fund our operations
through one year from the date of this Quarterly Report on Form
10-Q. As a result, there is substantial doubt about our ability to
continue as a going concern."
The full text of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1649989/000155837025001022/otlk-20241231x10q.htm
About Outlook Therapeutics
Headquartered in Iselin, New Jersey, Outlook Therapeutics --
www.outlooktherapeutics.com -- is a biopharmaceutical company
focused on the development and commercialization of ONS-5010 /
LYTENAVA (bevacizumab-vikg; bevacizumab gamma), for the treatment
of retina diseases, including wet AMD. LYTENAVA (bevacizumab
gamma) is the first ophthalmic formulation of bevacizumab to
receive European Commission and MHRA Marketing Authorization for
the treatment of wet AMD. Outlook Therapeutics is working to
initiate its commercial launch of LYTENAVA (bevacizumab gamma) in
the EU and the UK as a treatment for wet AMD, expected in the
second quarter of calendar 2025. In the United States, ONS-5010 /
LYTENAVA is investigational, is being evaluated in an ongoing
non-inferiority study for the treatment of wet AMD, and if
successful, the data may be sufficient for Outlook to resubmit a
BLA to the FDA in the United States. If approved in the United
States, ONS-5010/LYTENAVA, would be the first approved ophthalmic
formulation of bevacizumab for use in retinal indications,
including wet AMD.
Philadelphia, Pennsylvania-based KPMG LLP, the Company's auditor
since 2015, issued a "going concern" qualification in its report
dated Dec. 27, 2024, citing that the Company has incurred recurring
losses from operations and negative cash flows from operations and
has an accumulated deficit, that raise substantial doubt about its
ability to continue as a going concern.
As of Sept. 30, 2024, Outlook Therapeutics had $28.82 million in
total assets, $101.90 million in total liabilities, and a total
stockholders' deficit of $73.08 million.
The Company has incurred net losses in each year since its
inception in Jan. 5, 2010, including net losses of $75.4 million
and $59.0 million for the years ended Sept. 30, 2024 and 2023,
respectively. The Company has not generated material revenue from
the sales of any product. The Company stated that its success
largely relies on its ability to generate revenue from the sales of
ONS-5010/LYTENAVA, which has been approved for treating wet AMD in
both the EU and the UK.
PARTY CITY: Wholesale Business, IP Sold for $20MM
-------------------------------------------------
Marianne Wilson of Chain Store Age reports that Party City Holdco
Inc. is in the final stages of its liquidation after filing for
bankruptcy in December with plans to shut down operations. The
company has completed auctions for nearly all of its intellectual
property, related wholesale intangible assets, and a significant
portion of its real estate lease portfolio.
Following a competitive bidding process, New Amscan, an affiliate
of Ad Populum—a global marketer of pop culture merchandise and
costumes—won the auction for the Party City brand and its Amscan
operating assets. Amscan, Party City's wholesale division, supplies
party products to retailers worldwide, the report states.
In January 2025, Party City entered into a stalking horse agreement
with Ad Populum, which set a baseline bid subject to higher offers.
Ad Populum ultimately secured the assets with a $20 million winning
bid—double the initial stalking horse offer—including $16
million in cash and additional consideration, according to Chain
Store Age.
"We are excited to lead the transformation of the Party City and
Amscan brands," said Joel Weinshanker, CEO of Ad Populum, in
January. "By combining our strengths in sourcing and distribution
with Party City's legacy, we are confident in our ability to
innovate and grow in the party supply market, delivering products
that inspire and elevate life's celebrations."
Party City's lease auctions have generated approximately $14.5
million in gross proceeds, with potential for additional value. A
court hearing is scheduled for February 26, 2025 to approve the
sales, while efforts to monetize remaining leases are ongoing.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Porter Hedges LLP
are serving as legal counsel, while AlixPartners LLP is acting as
the restructuring advisor. Hilco Streambank and Gordon Brothers
Brands are managing intellectual property sales, A&G Real Estate
Partners is overseeing real estate transactions, and Gordon
Brothers is serving as the store closing consultant.
Ad Populum's brand portfolio includes NECA, Kidrobot, Wizkids, Chia
Pet, Rubies, Smiffys, Enesco, and Graceland.
About Party City Holdco
Party City Holdco Inc. (NYSE: PRTY) is the global leader in the
celebrations' industry, with its offerings spanning more than 70
countries around the world. It is also the largest designer,
manufacturer, distributor, and retailer of party goods in North
America. Party City Holdco had 761 company-owned stores as of
September 2022. It is headquartered in Woodcliff Lake, N.J. with
additional locations throughout the Americas and Asia.
Party City Holdco and its domestic subsidiaries sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead
Case No. 23-90005). As of Sept. 30, 2022, Party City Holdco had
total assets of $2,869,248,000 against total debt of
$3,022,960,000.
Judge David R. Jones oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP,
as legal counsel; Moelis & Company, LLC as investment banker;
AlixPartners, LLP as financial advisor; A&G Realty Partners as real
estate advisor; and Kroll as the claims agent.
PricewaterhouseCoopers LLP (PwC) provides accounting and valuation
advisory services, tax-related services, and internal audit
Sarbanes-Oxley Act support services.
Davis Polk & Wardwell, LLP and Lazard serve as legal counsel and
investment banker, respectively, to the ad hoc group of first lien
holders.
The U.S. Trustee for Region 6 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases. The
committee is represented by Pachulski Stang Ziehl & Jones, LLP.
PERASO INC: Grants 100,000 Stock Options to Top Executives
----------------------------------------------------------
The compensation committee of Peraso Inc.'s board of directors
granted 100,000 stock options to each of Ronald Glibbery, the CEO,
James Sullivan, the CFO, and Bradley Lynch, the COO, as reported in
a Form 8-K filed with the Securities and Exchange Commission. The
stock options have an exercise price of $0.7776 per share and vest
in equal monthly installments over 36 months beginning on the one
month anniversary of the grant date, subject to continued service
on each vesting date. The stock options expire on Feb. 11, 2035.
The stock options were awarded pursuant to the Company's Amended
and Restated 2019 Stock Incentive Plan, as amended.
About Peraso Inc.
Headquartered in San Jose, California, Peraso Inc. (NASDAQ: PRSO)
-- http://www.perasoinc.com-- is a fabless semiconductor company
focused on the development and sale of: i) millimeter wavelength
wireless technology, or mmWave, semiconductor devices and antenna
modules based on its proprietary semiconductor devices and ii)
performance of non-recurring engineering, or NRE, services and
licensing of intellectual property, or IP. The Company's primary
focus is the development of mmWave, which is generally described as
the frequency band from 24 Gigahertz, or GHz, to 300 GHz. The
Company's mmWave products enable a range of applications including:
multi-gigabit point-to-point, or PtP, wireless links with a range
of up to 25 kilometers and operating in the 60 GHz frequency band;
multi-gigabit point-to-multi-point, or PtMP, links in the 60 GHz
frequency band used to provide fixed wireless access, or FWA,
services; FWA in the 5G operating bands from 24 GHz to 43 GHz to
provide multi-gigabit capability and low latency connections;
military communications; and consumer applications, such as high
performance wireless video streaming and untethered augmented
reality and virtual reality. The Company also has a line of
memory-denominated integrated circuits, or ICs, for high-speed
cloud networking, communications, security appliance, video,
monitor and test, data center and computing markets that deliver
time-to-market, performance, power, area and economic benefits for
system original equipment manufacturers, or OEMs.
Los Angeles, California-based Weinberg & Company, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated March 29, 2024, citing that during the year ended Dec.
31, 2023, the Company incurred a net loss and utilized cash in
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
The Company incurred net losses of approximately $16.8 million and
$32.4 million for the years ended Dec. 31, 2023 and 2022,
respectively, and it had an accumulated deficit of approximately
$166.4 million as of Dec. 31, 2023.
PHOENIX EXTEND-A-SUITES: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------------
The U.S. Trustee for Region 14 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Phoenix Extend-A-Suites, LLC.
About Phoenix Extend-A-Suites
Phoenix Extend-A-Suites, LLC operates a 100-room hotel under the
Extend-A-Suites flag, which is located at 17211 North Black Canyon
Highway, Phoenix, Ariz.
Phoenix filed Chapter 11 petition (Bankr. D. Ariz. Case No.
25-00688) on January 27, 2025, listing up to $10
million in both assets and liabilities. Jennifer Schubert, managing
member of Phoenix, signed the petition.
Judge Brenda Moody Whinery oversees the case.
Patrick Keery, Esq., at Keery McCue, PLLC, represents the Debtor as
legal counsel.
PINEY POINT: Court Extends Cash Collateral Access to May 31
-----------------------------------------------------------
Piney Point 2023, LLC received another extension from the U.S.
Bankruptcy Court for the Southern District of Texas to use the cash
collateral of Federal National Mortgage Association (Fannie Mae).
The agreed order signed by Judge Jeffrey Norman on Feb. 18 extended
the company's authority to use cash collateral until May 31.
Judge Norman's previous interim order allowed the company to access
the lender's cash collateral from Jan. 28 to Feb. 10 only.
Fannie Mae's cash collateral includes rents from the company's
1,094-unit multi-family property in Houston, Texas. The lender
asserts a lien on, and security interest in, the real property as
well as the rents generated by the property based on its loan to
the company.
As of the petition date, Piney Point 2023 owed the lender more than
$77 million.
Fannie Mae will be provided with adequate protection in the form of
a replacement lien on the company's assets and payment of
$302,694.24 for February.
About Piney Point 2023
Piney Point 2023, LLC is a single asset real estate company
headquartered in Spring, Texas.
Piney Point 2023 sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Texas Case No. 25-30128) on January 7,
2025. In its petition, the Debtor reports estimated assets between
$100 million and $500 million and estimated liabilities between $50
million and $100 million.
Honorable Bankruptcy Judge Jeffrey P. Norman handles the case.
The Debtor is represented by:
Steven Douglas Shurn, Esq.
Hughes Watters Askanase
Total Energies Tower
1201 Louisiana, 28th Floor
Houston TX 77002
Tel: (713) 590-4200
Email: sshurn@hwa.com
PRAIRIE EYE: Seeks to Hire Rafool & Bourne as Bankruptcy Counsel
----------------------------------------------------------------
Prairie Eye Center, Ltd. seeks approval from the U.S. Bankruptcy
Court for the Central District of Illinois to employ Rafool &
Bourne, PC as bankruptcy counsel.
The firm will render these services:
(a) provide the Debtor legal advice with respect to its
rights, powers and duties in connection with the administration of
its bankruptcy estate and the disposition of its property;
(b) take such action as may be necessary with respect to
claims that may be asserted against the Debtor and property of its
estate;
(c) prepare legal documents as may be necessary in connection
with the appropriate administration of this case;
(d) represent Debtor with respect to inquiries and
negotiations concerning creditors of its estate and property;
(e) initiate, defend or otherwise participate on behalf of the
Debtor in all proceedings before this court or any other court of
competent jurisdiction; and
(f) perform any and all other legal services on behalf of the
Debtor which may be required to aid in the proper administration of
its bankruptcy estate.
Sumner Bourne, Esq., the primary attorney in this representation,
will be paid at his hourly rate of $300 plus expenses.
The firm received a retainer of $35,000 from the Debtor.
Mr. Bourne 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:
Sumner A. Bourne, Esq.
Rafool & Bourne, PC
401 Main Street, Suite 1130
Peoria, IL 61602
Telephone: (309) 673-5535
Email: notices@rafoolbourne.com
About Prairie Eye Center
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 filed its voluntary petition for relief under
Chapter 11 of the United States Bankruptcy Code (Bankr. C.D. Ill.
Case No. 25-70105). In the petition signed by Sandra W. Yeh, M.D.,
bankruptcy representative, the Debtor disclosed up to $1 million in
assets and up to $10 million in liabilities.
Judge Mary P. Gorman oversees the case.
Sumner A. Bourne, Esq., at Rafool & Bourne, PC serves as the
Debtor's counsel.
PROSPECT MEDICAL: Court Okays Roger Williams, Fatima Hospitals Sale
-------------------------------------------------------------------
Nancy Lavin of Rhode Island Current reports thatA federal
bankruptcy judge has approved the sale of Roger Williams Medical
Center and Our Lady of Fatima Hospital, a decision aimed at
preserving the facilities after financial turmoil under their
bankrupt owner.
"There has certainly been a compelling argument showing that time
is of the essence," said Chief Judge Stacey Jernigan of the U.S.
Bankruptcy Court for the Northern District of Texas during
Wednesday's, February 12, 2025, hearing in Dallas. She warned that
without an approved transition, the hospitals might not remain
operational much longer, the report states.
The sale, expected to close within 30 to 60 days, follows Prospect
Medical Holdings'’ Chapter 11 bankruptcy filing in January—just
before the anticipated $80 million sale of its Rhode Island
hospitals to The Centurion Foundation. The Los Angeles-based
hospital chain reported liabilities between $1 billion and $10
billion, with debts owed to more than 100,000 creditors, according
to Rhode Island Current.
Under Prospect's ownership, Roger Williams and Fatima have faced
operational struggles, including canceled surgeries, equipment
shortages, and federal health and safety violations. The bankruptcy
filing heightened concerns among Rhode Island health care providers
over the hospitals' future. CharterCARE Health Partners, Prospect's
Rhode Island subsidiary, called the court's approval "critically
important."
Prospect's financial troubles continue to deepen, with only $11.7
million in cash expected to remain by Feb. 21, according to Chief
Restructuring Officer Paul Rundell. Without additional financing,
the company could run out of cash entirely, putting operations at
its 16 hospitals nationwide at risk, according to report.
The sale is projected to return between $10 million and $15 million
to Prospect, offering limited financial relief as it navigates its
ongoing crisis.
About Prospect Medical Holdings Inc.
Prospect Medical Holdings owns Roger Williams Medical Center, Our
Lady of Fatima Hospital, and several other healthcare facilities.
Prospect Medical Holdings sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80002) on
January 11, 2025. In the petition filed by Paul Rundell, as chief
restructuring officer, the Debtor reports estimated assets and
liabilities between $1 billion and $10 billion each.
Honorable Bankruptcy Judge Stacey G. Jernigan handles the case.
The Debtors' General Bankruptcy Counsel is Thomas R. Califano,
Esq., and Rakhee V. Patel, Esq., at Sidley Austin LLP, in Dallas,
Texas, and William E. Curtin, Esq., Patrick Venter, Esq., and Anne
G. Wallice, Esq., at Sidley Austin LLP, in New York.
The Debtors' Financial Advisor is ALVAREZ & MARSAL NORTH AMERICA,
LLC.
The Debtors' Investment Banker is HOULIHAN LIKEY, INC.
The Debtors' Claims, Noticing & Solicitation Agent is OMNI AGENT
SOLUTIONS, INC.
PUREMEDY INC: Gets Interim OK to Use Cash Collateral Until March 26
-------------------------------------------------------------------
Puremedy, Inc. received interim approval from the U.S. Bankruptcy
Court for the Central District of California, Northern Division, to
use cash collateral until March 26.
The Debtor needs to use cash collateral to pay certain expenses to
maintain its operations and continue to create and sell its
products.
The U.S. Small Business Administration and other creditors
asserting liens will receive a replacement lien on the Debtor's
assets with the same validity, extent, and priority as their
pre-bankruptcy liens.
As additional protection, the SBA will receive a monthly payment of
$731 starting next month.
The first lienholder is JPMorgan Chase Bank, N.A. Chase has two
UCC-1 s filed against the Debtor, The Debtor believes that the
total balance owed Chase on its first position lien is
approximately $19,323. As security for the Chase deby, Chase
received a lien on all inventory, chattel paper, accounts,
equipment and general intangibles of the Debtor.
The Chase lien was perfected by the filing of two UCC-ls, both
recorded March 13, 2017. The next position lienholder is the United
States Small Business Administration. The Debtor believes that the
SBA is owed approximately $150,000. As security for the SBA debt,
the SBA received a broadform lien on all assers of the Debtor. The
SBA lien was perfected by the filing of a UCC-1 on May 23, 2020.
The amount owed to Chase and the SBA exceeds the value of the
assets of the Debtor which the Debtor estimates to be $67,660
comprised of the following. Bayfirst National Bank and CT Corp, as
representative of Kapitus LLC have security interests, and have
recorded UCC-1 financing statements. However, they are unsecured.
The Debtor believes that its secured creditors are adequately
protected by the accumulation of cash through the Debtor's
continued operations. The Debtor intends to make payments to
secured creditors in an appropriate amount once the Debtor has had
time to use cash collateral to fund the ongoing operations of the
business. As adequate protection for use of the cash collateral of
the secured claims, the Debtor proposes to give all creditors
holding liens new liens on post-petition rents generated through
the Debtor's business operations with the same validity, extent and
priority they hold in the pre-filling assets, notwithstanding the
effect of 11 U.S.C 552.
A continued hearing will be held on March 26.
About Puremedy, Inc.
Puremedy, Inc. creates and sells healing ointments and other herbal
products made from certified organic or wild harvested and
completely non-toxic ingredients.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 9:25-bk-10156-RC) on
February 7, 2025. In the petition signed by Joan Siegel, president,
the Debtor disclosed up to $50,000 in assets and up to $1 million
in liabilities.
William C. Beall, Esq., at Beall & Burkhardt APC, represents the
Debtor as legal counsel.
PUREMEDY INC: Seeks to Hire Beall & Burkhardt as Legal Counsel
--------------------------------------------------------------
Puremedy, Inc. seeks approval from the U.S. Bankruptcy Court for
the Central District of California to employ Beall & Burkhardt, APC
as counsel.
The firm will provide these services:
(a) advise the Debtor generally concerning its rights, duties,
and obligations;
(b) meet with the Debtor concerning the initial filing
requirements of a Chapter 11 case;
(c) represent the Debtor in all hearings and meetings before
the bankruptcy court;
(d) prosecute and defense of appropriate adversary proceedings
in the bankruptcy court;
(e) prosecute any claim objections;
(f) prepare and prosecute a Disclosure Statement and Plan of
Reorganization; and
(e) such other matters as shall normally arise in the conduct
of the Chapter 11 case.
The firm's counsel will be paid at these hourly rates:
William Beall, Attorney $575
Eric Burkhardt, Attorney $450
Carissa Horowitz, Attorney $400
The firm received a pre-petition retainer of $30,000 from the
Debtor.
Mr. Beall disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
William C. Beall, Esq.
Beall & Burkhardt, APC
1114 State Street
La Arcada Building, Suite 200
Santa Barabra, CA 93101
Telephone: (805) 966-6774
Facsimile: (805) 963-5988
About Puremedy Inc.
Puremedy, Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10156) on February 7,
2025, listing under $1 million in both assets and liabilities.
Honorable Bankruptcy Judge Ronald A. Clifford III handles the
case.
William C. Beall, Esq., at Beall & Burkhardt, APC serves as the
Debtor's counsel.
QUARTZ ACQUIRECO: Fitch Hikes LongTerm IDR to BB-, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has upgraded Quartz AcquireCo, LLC's (dba Qualtrics)
Long-Term Default Rating (IDR) to 'BB-' from 'B+'. The Rating
Outlook is Stable. Fitch has also affirmed the company's $200
million secured revolving credit facility (RCF) and secured term
loan at 'BB+' with a Recovery Rating of 'RR1' including the
proposed $50 million upsizing. The company will use the net
proceeds to repay the outstanding revolver balance.
Qualtrics' upgrade reflects a significant improvement in
profitability, driven by the successful execution of
cost-efficiency strategies and normalized revenue growth levels.
Fitch now expects Qualtrics' EBITDA growth to reduce the gross
leverage ratio to 4.0x or lower in the coming years. The ratings
are also supported by its industry-leading software solutions for
enterprise experience management and net revenue retention rates of
above 100%, reflecting a highly recurring revenue base. The private
equity ownership is likely to prioritize ROE through reinvestments
in growth or shareholder return, limiting further deleveraging.
Key Rating Drivers
Moderate EBITDA Leverage: Fitch estimates improvement in EBITDA
leverage from 5.2x in fiscal 2023 to estimated 3.5x in fiscal 2025
driven by recent execution of cost efficiencies. Given the private
equity ownership, the company is likely to seek optimal ROE. Fitch
expects excess capital to be used for acquisitions to accelerate
growth or for dividends, with financial leverage remaining below
4.0x. In Fitch's view, with the post-LBO cost optimization largely
completed, the company is likely to prioritize growth through
acquisitions over dividends. This is likely to keep EBITDA leverage
at moderate levels.
Strengthened Profitability: After being acquired by Silver Lake and
CPP, Qualtrics is transitioning from a high-growth company to a
moderate-growth company with greater focus around profitability.
Through 4Q24, Fitch estimates the company to have actioned on over
90% of planned operational optimization. The plan results in
significant changes in cost structure with greater emphasis around
operational efficiency. The company has made significant progress
toward achieving its target, with Fitch-calculated EBITDA margins
expected to be in 30%-35% range over the rating horizon.
Strong Free Cash-flow Generation: Fitch expects FCF margins to be
approaching the teens, and the (CFO-Capex)/Debt ratio to also be
approaching double-digits from fiscal 2025, which is consistent
with other Fitch-rated 'BB'-rating category peers in the software
enterprise space. FCF margins are driven by operating efficiencies
and successful execution of its planned cost saving actions. Due to
the projected increase in operating cash flow generation starting
in 2025, Fitch estimates the company has sufficient cash to settle
the remaining obligations of cash equity. Additionally, Qualtrics
has a strong EBITDA-to-FCF conversion due to recurring revenue,
strong profitability, and minimal capex requirements.
Industry Tailwind Supports Growth: Qualtrics specializes in
utilizing and analyzing customer engagement data from multiple
channels. They then provide actionable insight that helps companies
increase lifetime value of end-customers. Companies now have more
customer data and analytics capabilities than ever, providing the
potential for greater insight into the end-customers. The
quantifiable value provides customers improvements in lifetime
value of end customers. These insights offer quantifiable value to
companies and could improve customer satisfaction, translating into
greater revenue opportunities. Fitch expects data analytics
utilization to continue to grow as companies seek to use such
insight as competitive advantages.
High Revenue Retention: Approximately 85% of Qualtrics' revenue is
subscription-based with gross retention rates in the high-80's and
net retention rate above 100%. The high net retention reflects
Qualtrics' land-and-expand product strategy where cross-sell and
up-sell has been successful in driving increased customer adoption.
Qualtrics' products provide measurable benefits to its customers.
Fitch believes retention rates will remain high as customers build
their customer experience management workflow around Qualtrics
products.
Significant Customer Diversification: Qualtrics has a highly
diversified customer base of over 16,000. This base span
technology, retail, financial services, healthcare, education, and
government verticals. The diverse customer base effectively
minimizes idiosyncratic risks associated with individual industry
verticals and should reduce revenue volatility for Qualtrics.
Technology Disruption Risk: While Qualtrics' product portfolio
encompasses the entire end-customer experience management,
improving generative artificial intelligence (AI) could pose risk
to the company's product offerings. However, Qualtrics' products
are integrated within customers' operating workflows. Replacing its
products with generative AI may involve significant switching
costs. Fitch believes AI risk is low for Qualtrics for the
foreseeable future.
Derivation Summary
Qualtrics specializes in niche software solutions that provide
enterprises with experience management based on data analytics. Its
customers benefit from improved customer satisfaction, customer
support cost, and monetization opportunities. As product
implementation typically involves deep integration within the
customers' workflows, this integration results in a highly sticky
customer base due to the high switching cost. Qualtrics serves over
16,000 customers with no meaningful customer concentration.
The Analytics Data Management & Integration Platforms market is
projected to grow in the high-single-digits compound annual growth
rate (CAGR). Fitch expects the Experience Management segment, a
sub-segment within the broader analytics space, to growth at a
higher rate. Qualtrics' strong position within the niche market
extends to data integration, analytics, and automation. This should
enable the company to maintain growth consistent with the
industry.
Qualtrics peers include Qlik Parent, Inc. (B/Stable) as they both
operate in the data analytics market. Fitch estimate Qlik's EBITDA
leverage to be higher than that of Qualtrics'. Fitch also compares
Qualtrics to MeridianLink, Inc. (BB-/Stable) and Waystar
Technologies, Inc. (BB-/Positive). Fitch estimates both peers to
maintain EBITDA leverage below 4x.
Balancing the favorable operating profile, low execution risk, and
moderate financial structure, Fitch believes Qualtrics' operating
and credit profiles are consistent with other 'BB-' rated
enterprise software companies.
Key Assumptions
- Normalized revenue growth rate in the mid-teens;
- EBITDA margins expanding from low-teens in 2023 to the 30s in
2025;
- Capex intensity 2.5% of revenue;
- Debt repayment limited to mandatory amortization;
- Partially cash and debt-funded acquisitions of approximately
$2,500 million through 2027;
- SOFR rates assumed as 5.14%, 4.50%, 4.10%, and 4,10% from 2024 to
2027.
Recovery Analysis
Fitch assesses the first lien revolver and term loan to be Category
1, which is reserved for U.S.-based borrowers, as Qualtrics does
not feature any limitations in Category 2, such as being ranked
junior to ABL facilities, excessive fully drawn secured gross
leverage being greater by 50% of the midpoint of the 'BB' category
for the sector, or other factors that do not apply to the company.
Per the criteria, Fitch rates the revolver and term loan 'BB+' and
maintains the 'RR1' recovery rating.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch's expectation of EBITDA leverage sustaining above 4x as a
result of significant debt-funded acquisition or dividend
distribution;
- (CFO - capex)/debt ratio sustaining below 10%;
- Erosion in revenue retention rates resulting in organic revenue
growth sustaining below high-single digits.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch's expectation of EBITDA leverage sustaining below 3.5x;
- (CFO - capex)/debt ratio sustaining above mid-teens or higher;
- Sufficient financial flexibility for the company to pursue
strategic actions without significant deviation in credit metrics.
Liquidity and Debt Structure
Fitch forecasts the liquidity to be adequate to address near-term
cash requirements to address Deferred Cash Settled Awards and
Long-Term Incentive Plan payments through 2025. Fitch forecasts the
company would begin generating positive FCF beginning 2025 as cash
obligations decline. In addition to cash on balance sheet and
operational cash generation, Qualtrics also has an undrawn $200
million RCF to support liquidity.
Pro forma for the transaction, Qualtrics will have a$200 million
revolving credit facility due 2028 (expected to be fully repaid
during 2025) and a $1,458 million (including $50 million add-on)
senior secured term loan due 2030. Given the recurring nature of
the business and strong normalized FCF generation capacity, Fitch
believes Qualtrics will be able to make its required debt
payments.
Issuer Profile
Qualtrics is an Experience Management company with products that
collect data from multiple sources, analyze the data, recommend
actions, and automate select workflows. Qualtrics' analytics
platform reduces service resolution time and cost, improves
customer satisfaction and increases lifetime value of customers.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Quartz AcquireCo, LLC LT IDR BB- Upgrade B+
senior secured LT BB+ Affirmed RR1 BB+
R&R TRAILERS: Gets Interim OK to Use Cash Collateral
----------------------------------------------------
R&R Trailers, Inc. received interim approval from the U.S.
Bankruptcy Cout for the Western District of Michigan for authority
to use cash collateral.
The Debtor requires the use of cash collateral to meet payroll
obligations, sustain its operations, and preserve its assts for the
benefit of its creditors.
The Debtor believes that the value of the cash collateral assets
will not change substantially over the next 90 days, and that the
Debtor can successfully reorganize through this bankruptcy
proceeding.
The Debtor believes the following lenders are likely to assert an
interest in one or more of the aforementioned assets: Fifth Third
Bank and Altbanq Lending II, LLC.
As adequate protection, the Debtor will make monthly adequate
protection payment to Fifth Third Bank in the amount of $3,500.
Secured creditors will be granted continuing and replacement
security interests in liens on all of the Debtor's post-petition
property.
A final hearing is set for March 18.
About R & R Trailers Inc.
R & R Trailers, Inc. specializes in manufacturing American-made
aluminum trailers for a variety of uses, including hauling cars,
cargo, and recreational vehicles. Their trailers offer exceptional
performance, reliability, and versatility, providing safe and
efficient transportation for both work and leisure needs.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Mich. Case No. 25-00318) on February
7, 2025. In the petition signed by Ross M. Daniels, shareholder and
vice-president, the Debtor disclosed $276,910 in assets and
$1,351,582 in liabilities.
Judge Scott W. Dales oversees the case.
Steven M. Bylenga, Esq., at CBH ATTORNEYS & COUNSELORS, PLLC,
represent the Debtor as legal counsel.
RENNOVA HEALTH: Posts $7.73M Loss for 2023, Up From $3.29M in 2022
------------------------------------------------------------------
Rennova Health, Inc. submitted its Annual Report on Form 10-K to
the Securities and Exchange Commission, revealing a net loss
attributable to the company of $7.73 million on net revenues of
$18.69 million for the year ending Dec. 31, 2023. This compares to
a net loss attributable to the company of $3.29 million on net
revenues of $13.04 million for the year ending Dec. 31, 2022.
As of Dec. 31, 2023, the Company reported total assets of $20.25
million, total liabilities of $57.10 million, and a stockholders'
deficit of $36.84 million.
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated Feb. 13, 2025. The report cited that the Company had a
working capital deficit, stockholders' deficit, net losses,
deficient cash, payments for operations in the ordinary course not
being made, past due accounts payable and payroll taxes and payment
defaults of certain outstanding notes payable and debentures. This
raises substantial doubt about the Company's ability to continue as
a going concern.
"There can be no assurance that the Company will be able to achieve
its business plan, raise any additional capital or secure the
additional financing necessary to implement its current operating
plan. The ability of the Company to continue as a going concern is
dependent upon its ability to raise adequate capital to fund its
operations and repay its outstanding debt and other past due
obligations, fully align its operating costs, increase its net
revenues, and eventually gain profitable operations," stated
Rennova in the Report.
The full text of the Form 10-K is available for free at:
https://www.sec.gov/Archives/edgar/data/931059/000149315225006522/form10-k.htm
About Rennova Health
Rennova Health, Inc. -- http://www.rennovahealth.com/-- is a
provider of health care services. The Company owns one operating
hospital in Oneida, Tennessee known as Big South Fork Medical
Center, a hospital located in Jamestown, Tennessee that it plans to
reopen. In addition, the Company has a strategic investment in
InnovaQor, Inc.
RENO CITY CENTER: Unsecureds to Get 95% in Creditors' Plan
----------------------------------------------------------
Creditors Christopher Beavor and CAI Development, LLC filed with
the U.S. Bankruptcy Court for the District of Nevada a Disclosure
Statement describing Plan of Reorganization for Reno City Center
Owner LLC dated February 7, 2025.
Reno City Center Owner, LLC is a Delaware limited liability company
established on April 11, 2022. The sole member of the Debtor is
Reno City Mezzanine Borrower, LLC, a Delaware limited liability
company ("Mezzanine Borrower"). The sole member of Mezzanine
Borrower is Reno City Center, LLC ("RCC").
Christopher Beavor conceived of the Reno City Center Project and
then formed RCC in November of 2019. On or about September 30,
2020, RCC acquired from Harrah's Reno LLC the real property in
downtown Reno, Nevada previously operated as the Harrah's Hotel &
Casino and now commonly referred to as the Reno City Center Project
(the "Project" or the "RCC Project").
RCC purports to be the duly authorized manager of both the Debtor
and Mezzanine Borrower and has been acting as the manager since
purporting to oust Bristlecone Management, LLC ("BCM") as manager
in May, 2023. Proponent believes that BCM was wrongfully removed
and that matter is pending in arbitration between the Gryphon
Members and BCM and related parties.
The Gryphon Members, directed by Walton and Oleson, provided $62
million as their capital contribution. In order to wrest control of
the RCC Project away from BCM, the Gryphon Members engaged in a
series of actions which ultimately derailed the RCC Project,
including defaming BCM and Beavor. The uncertainty of the outcome
of the arbitration and the question of whether BCM is reinstated as
the manager of RCC, leaves considerable unpredictability of the
future management of the Debtor in connection with any plan that
leaves in place the present structure of the Debtor's management.
The Proponent's Plan addresses the management uncertainty by
providing that CAI Acquisition LLC, an entity affiliated with
Beavor, will purchase the assets of the Debtor, free and clear of
all claims, liens and encumbrances. The Debtor will liquidate and a
Plan Administrator will distribute the sale proceeds to the
creditors of the Debtor.
Class 4 consists of Allowed Unsecured Claims. The holders of Class
4 Allowed Unsecured Claims as of the Petition Date will be paid 95%
of their Claims on the later of the Effective Date or the date on
which such Claim becomes an Allowed Claim. Accordingly, Class 4
allowed claims of the Debtor's general unsecured creditors are
impaired under the Plan.
Class 5 consists of the Allowed unsecured deficiency Claim of
Delphi in the amount of $58,904,600 as of the Effective Date. The
Class 5 Allowed Unsecured Claim of Delphi shall be paid the sum of
$7,500,000 on the Effective Date in full and final satisfaction of
the Class 5 claim and of the Delphi Mezzanine Claim ("Class 5
Payment").
Upon the occurrence of all of the following: the Effective Date,
the Class 1 Payment and the Class 5 Payment, then (i) Delphi shall
Release all parties, including but not limited to the Debtor and
its Affiliates, Proponent and its Affiliates, CAI and its
Affiliates and Beavor and his Affiliates, and all of their
predecessors, successors, assigns, agents, representatives,
members, officers, employees, directors and attorneys; provided
that the Class 5 allowed unsecured claim shall remain a valid claim
for voting purposes only; and (ii) Debtor and its Affiliates,
Proponent and its Affiliates, CAI and its Affiliates and Beavor and
his Affiliates, and all of their predecessors, successors, assigns,
agents, representatives, members, officers, employees, directors
and attorneys shall Release Delphi and all of their predecessors,
successors, assigns, agents, representatives, members, officers,
employees, directors and attorneys.
Class 6 consists of the Allowed Claims of CAI and affiliates.
Effective on: (i) the occurrence of the Effective Date; (ii) the
Release of the Delphi Class 5 Claim; and (iii) the Release by the
Debtor, CAI and its Affiliates, and Beavor and his Affiliates shall
Release all Class 6 Claims as against the Debtor only.
Simultaneously therewith, the Debtor shall Release, and shall be
deemed to have Released, CAI and its Affiliates and Beavor and his
Affiliates.
The Class 7 equity interests of Reno City Center Owner, LLC as of
the Petition Date shall not be affected. Since Class 7 holders
receive nothing on account of the Plan, Class 7 holders are deemed
to reject the Plan.
The Proponent intends to fund its Plan through the Sale
Transaction. The Sale Transaction contemplates that CAI Reno
Acquisition, LLC, an entity affiliated with the Proponent, will
purchase substantially all of the Debtor's Assets for the sum of
Seventy Five Million Dollars. The specific terms of the Sale
Transaction are set forth in that certain Purchase Agreement to be
attached to the Plan Supplement.
The Sale Proceeds will be used as follows: (a) payment of all
allowed administrative expenses of the Estate; (b) payment to
Delphi of $47,500,000 in full satisfaction of its allowed Class 1
claim (Delphi to repay to RCC the greater of $10,000,000 paid to
Delphi on account of its October 15, 2024 payment, or such
additional amount as has been paid to Delphi pursuant to the
Settlement Agreement prior to the occurrence of the Effective Date,
but excluding the Consideration Payment of $5,000,000 paid to
Delphi on or about December 31, 2024); (c) payment to Classes 2, 3,
and 4 in satisfaction of their Allowed Claims; (d) payment of
$7,500,000 to Delphi for its Class 5 Claim; and (e) for payment of
cure amounts on all executory contracts assumed under the Plan.
A full-text copy of the Disclosure Statement dated February 7, 2025
is available at https://urlcurt.com/u?l=TYcAtI from
PacerMonitor.com at no charge.
Attorneys for Christopher Beavor and CAI Development:
Jeffrey L. Hartman, Esq.
HARTMAN & HARTMAN
510 W. Plumb Lane, Suite B
Reno, Nevada 89509
Telephone: (775)324-2800
Facsimile: (775)324-1818
Email: jlh@bankruptcyreno.com
Brian L. Davidoff, Esq.
Jeffrey A. Krieger, Esq.
GREENBERG GLUSKER FIELDS CLAMAN & MACHTINGER LLP
2049 Century Park East, Suite 2600
Los Angeles, California 90067
Telephone: 310-553-3610
Facsimile: 310-553-0687
About Reno City Center Owner
Reno City Center is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)).
Reno City Center Owner LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case no.
24-50152) on Feb. 16, 2024, listing $100 million to $500 million in
both assets and liabilities. The petition was signed by Kirk
Walton, Managing Member of GPWM QOF Manager LLC, its Manager.
Judge Hilary L Barnes presides over the case.
Elizabeth Fletcher, Esq. at Fletcher & Lee, is the Debtor's
counsel.
RFNA LP: Fitch Assigns 'B+' Final LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has assigned RFNA, LP (Republic Finance) a final
Long-Term Issuer Default Rating (IDR) of 'B+'. The Rating Outlook
is Stable. Fitch has also assigned a final rating of 'B+' with a
Recovery Rating of 'RR4' to Republic Finance's $500 million 7.875%
senior unsecured notes maturing in February 2030. Proceeds from the
issuance will be used to repay outstanding secured debt, distribute
a dividend to the company's partners, and for general corporate
purposes.
The assignment of the final ratings follows the receipt of
documents conforming to information already received. The final
ratings are the same as the expected ratings assigned on Feb. 3,
2025. Please see "Fitch Assigns RFNA, LP First-Time 'B+ (EXP)';
Outlook Stable".
Key Rating Drivers
Financial Profile Supports the Rating: Republic Finance's rating is
supported by its relatively consistent profitability and
appropriate leverage, adequate funding flexibility and liquidity,
and credit performance that is in line with expectations for the
risk profile of the portfolio and the rating category.
Modest Franchise, Risk Profile Constrain Rating: The ratings are
constrained by Republic Finance's modest franchise and nominal
market share, monoline business model with high subprime exposure,
elevated geographical concentrations, and partial private equity
ownership, which increases the possibility of shareholder-friendly
actions and adds long-term strategic uncertainty.
Improving Scale, Limited Product Diversification: Republic Finance
has grown its franchise primarily through de novo branch openings,
operating 259 total branches across 16 states as of 3Q24. The
company supplements its lending income with fee-based insurance
products, but lacks the revenue diversification of peers that offer
a wider range of products, such as direct auto purchase loans. This
is partially mitigated by the presence of secured collateral in 77%
of the loan portfolio as of 3Q24, which should reduce overall
performance volatility.
Asset Quality Stabilizing: Asset performance has improved in recent
quarters, with 30+ day delinquencies of 11.6% at 3Q24, down from
13.7% at YE 2023 and 14.4% at YE 2022. Credit performance weakened
notably in 2022-2023, with delinquencies exceeding pre-pandemic
levels despite the company ceasing originations with average
percentage rates (APR) above 36% in July 2021. This led the company
to tighten its underwriting standards throughout 2022, with the
stronger portfolio mix driving improved performance.
Net charge-offs were 9.2% in 9M24 (annualized), an improvement from
12.9% in 2023 and 13.2% in 2022. Fitch expects performance to
continue to improve in the near term as the portfolio mix
strengthens. Still, Fitch believes the company's customer base,
which is already challenged by high inflation, will be particularly
vulnerable to economic stresses such as rising unemployment.
Solid Profitability: Profitability, measured as pre-tax return on
average assets (ROAA), was 4.1% in 9M24 (annualized), consistent
with 4.4% in 2023 and 4.5% in 2022. Republic Finance promptly
slowed originations in response to weaker performance indicators in
2022, which reduced provisioning expense in 2023 and resulted in
more stable profitability than peers during the period. Still,
profitability remains highly sensitive to consumer credit
performance given the business model.
Appropriate Leverage: Fitch views Republic Finance's leverage
(debt/tangible equity) as appropriate for the risk profile of the
portfolio. Leverage was 4.9x at 3Q24, pro forma the $500 million
unsecured debt issuance, $410 million secured debt paydown and
$62.5 million dividend, up from 3.9x prior to the issuance and 3.9x
at YE 2023. The pro forma metric corresponds to Fitch's 'bb'
category quantitative benchmark range of 4x-7x for balance
sheet-heavy finance and leasing companies with a sector risk
operating environment (SROE) score in the 'bbb' category.
Management evaluates leverage on a debt to tangible equity plus
reserves basis. Republic Finance's loan loss reserve increased
substantially following the adoption of CECL accounting standards
in January 2023. Debt to tangible equity plus reserves was 3.4x at
3Q24, pro forma for the debt issuance, which is within management's
target range of 3x-4x. This translates to approximately 4.2x-5.7x
leverage as calculated by Fitch, as Fitch excludes loan loss
reserves in its core leverage metric.
Republic Finance had $267 million of preferred equity shares
outstanding at Sept. 30, 2024. Fitch assessed the preferred equity
shares under the "Corporate Rating Criteria", which is the
applicable criteria for instruments that are held by affiliated
investors whose economic and strategic interests are expected to
remain aligned with those of common equity holders. Fitch treated
the preferred equity as equity in its leverage calculation because
it does not increase the probability of default of the rated entity
and is considered permanent, loss-absorbing capital.
Secured Funding Profile: Republic Finance's funding profile is
largely secured, which Fitch views less favorably due to the
encumbrance of assets and limited financial flexibility during
periods of stress. Pro forma the inaugural unsecured issuance,
unsecured debt would comprise 31.1% of total debt at 3Q24, within
Fitch's 'bb' category quantitative benchmark range of 10%-35% for
balance sheet-heavy finance and leasing companies with a SROE score
in the 'bbb' category. Fitch would view further increases in
funding diversification and unencumbered assets as incrementally
credit positive.
Adequate Liquidity: Fitch views Republic Finance's cash liquidity
of $40 million at 3Q24, pro forma for the debt issuance, as
sufficient to support its operations and near-term funding
obligations. The unsecured notes mature in February 2030 and both
warehouse facilities have remaining tenors greater than one year.
The warehouse facilities are expected to be extended prior to their
maturity dates.
Additionally, the company had approximately $546 million of
unencumbered receivables at 3Q24, pro forma the paydown of the ABL
facility with unsecured debt proceeds, which could be borrowed
against with undrawn warehouse capacity or securitized. The company
plans to distribute a $62.5 million dividend to its partners in
1Q25, funded with proceeds from the debt issuance, which Fitch
views as negative for capital levels.
Stable Outlook: The Stable Outlook reflects Fitch's expectation
that leverage will increase modestly but remain below 6x, credit
performance will remain relatively stable, and the unsecured
funding mix will be sustained above 15% of total debt.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Sustained deterioration in credit performance, including net
charge-offs sustained above 10%;
- Sustained increase in leverage above 7x (unadjusted for CECL);
- Sustained decrease in the unsecured debt mix below 10% of total
debt;
- Sustained decline in ROAA below 3%;
- Sustained increase in the risk profile of the portfolio, as
evidenced by weaker credit quality borrowers or lower presence of
secured collateral;
- Inability to access term funding;
- The imposition of new and more onerous regulations that
negatively impact Republic Finance's ability to execute on its
business model.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Improvement to the business profile through market share gains
that enhance Republic Finance's franchise, geographical expansion
within the U.S. or further product diversification;
- Maintenance of unsecured debt above 25% of total debt;
- A sustained decline in leverage below 4x;
- Continued maintenance of charge-offs within management's target
range through credit cycles.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
The senior unsecured debt rating is equalized with the Long-Term
IDR, reflecting Fitch's expectation of average recovery prospects
in a stress scenario.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The senior unsecured debt rating is primarily sensitive to changes
in the Long-Term IDR, the funding mix, and availability of
unencumbered assets to support recovery prospects in a stressed
scenario.
ADJUSTMENTS
- The Standalone Credit Profile (SCP) has been assigned in line
with the implied SCP.
- The Business Profile score has been assigned below the implied
score due to the following adjustment reasons: Business model
(negative), Market position (negative).
- The Earnings & Profitability score has been assigned below the
implied score due to the following adjustment reason: Portfolio
risk (negative).
- The Capitalization & Leverage score has been assigned below the
implied score due to the following adjustment reasons: Historical
and future metrics (negative), Portfolio profile and business model
(negative).
- The Funding, Liquidity & Coverage score has been assigned below
the implied score due to the following adjustment reason: Business
model/Funding market convention (negative).
Criteria Variation
Fitch's "Corporate Rating Criteria" states that instruments that
are held by affiliated investors whose economic and strategic
interests are expected to remain aligned with those of common
equity may be treated as "non-debt" of the rated entity. In this
case, Fitch has treated the preferred equity as equity in its
leverage calculations, which represents a criteria variation. Fitch
does not believe the use of such variation had a measurable impact
on the rating given offsetting adjustments to the capitalization
and leverage score and the influence of other key rating drivers.
Date of Relevant Committee
31-Jan-2025
ESG Considerations
RNFA, LP has an ESG Relevance Score of '4' for Customer Welfare -
Fair Messaging, Privacy & Data Security due to the importance of
fair collection practices and consumer interactions and the
regulatory focus on them, which has a negative impact on the credit
profile and is relevant to the ratings in conjunctions with other
factors.
RNFA, LP has an ESG Relevance Score of '4' for Governance Structure
due to due to the presence of private equity ownership, which has a
negative impact on the credit profile and is relevant to the
ratings in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
RFNA, LP LT IDR B+ New Rating B+(EXP)
senior unsecured LT B+ New Rating RR4 B+(EXP)
RGC RESOURCES: Liquidity Risks Raises Going Concern Doubt
---------------------------------------------------------
RGC Resources, Inc. disclosed in a Form 10-Q Report filed with the
U.S. Securities and Exchange Commission for the quarterly period
ended December 31, 2024, that there is substantial doubt about its
ability to continue as a going concern.
RGC Resources announced consolidated Company earnings of
$5,269,689, or $0.51 per share, for the first quarter ended
December 31, 2024, compared to $5,019,992, or $0.50 per share, for
the fiscal quarter ended December 31, 2023. Higher utility margin
reflected the new base rates that went into effect July 1, 2024 and
was offset by lower equity earnings from unconsolidated affiliate
and higher interest expense.
Roanoke Gas continued investing in utility infrastructure to
enhance system reliability and deliver gas to new customers,
driving both higher margins and earnings. CEO Paul Nester stated,
"Colder weather in December and strong usage by our largest
transportation customer also contributed to a higher quarterly
performance. The Company's equity earnings from its investment in
the MVP were $854,213 in the first quarter ended December 31, 2024,
as the pipeline is in operation, compared to $1,467,835 in the
first quarter ended December 31, 2023, which corresponded to the
Company's share of Allowance for Funds Used During Construction
(AFUDC) during the construction phase."
Despite these earnings, liquidity concerns remain. Roanoke Gas'
line of credit has historically been renewed annually in March, and
there was approximately $10 million outstanding under the line of
credit as of the date of this Form 10-Q. Separately, Midstream has
$26,200,000 of current maturities of long-term debt due in the next
12 months. These amounts, in the aggregate, exceed the liquidity
available to the Company through currently executed agreements and
anticipated operating cash flows over this period. Management
plans to refinance these amounts. The Company has refinanced this
debt in the past and is currently in discussions with lenders
concerning refinancing the debt. Management believes discussions
to date have been positive and that the completion of MVP supports
the likelihood of a successful refinancing. Such refinancing
cannot be completed without taking additional actions involving a
third party. As a result, under ASU 2014-15, substantial doubt
exists about the Company's ability to continue as a going concern.
In the opinion of management, the accompanying unaudited condensed
consolidated financial statements contain all adjustments
(consisting of only normal recurring accruals) necessary to fairly
present Resources' financial position as of December 31, 2024, cash
flows for the three months ended December 31, 2024 and 2023, and
the results of its operations, comprehensive income, and changes in
stockholders' equity for the three months ended December 31, 2024
and 2023. The results of operations for the three months ended
December 31, 2024 are not indicative of the results to be expected
for the fiscal year ending September 30, 2024 as quarterly earnings
are affected by the highly seasonal nature of the business and
weather conditions generally result in greater earnings during the
winter months.
As of December 31, 2024, RGC Resources had $1,158,306 in total
assets, $37,432,577 million in total liabilities, $59,947,107 in
total mezzanine equity, and total stockholders' deficit of
$96,221,378.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/3v3vbehd
About RGC Resources
ROANOKE, Va.-based RGC Resources, Inc. is an energy services
company primarily engaged in the sale and distribution of natural
gas through its operating subsidiaries Roanoke Gas Company and RGC
Midstream, LLC.
ROOME ENTERPRISES: Court OKs Use of Cash Collateral
---------------------------------------------------
The U.S. Bankruptcy Court for the District of Idaho issued an order
authorizing Roome Enterprises, Inc. to use cash collateral.
The company needs to use cash collateral to pay its operating
expenses, in accordance with the budget, with a 10% variance.
First Bank of the Lake and Kalamata Capital Group assert an
interest in the cash collateral.
As protection, both secured creditors will be granted liens on
post-petition cash collateral to the same extent and with the same
priority as their pre-bankruptcy liens.
First Bank can be reached through its counsel:
Sheila R. Schwager, Esq.
Hawley Troxell Ennis & Hawley, LLP
P.O. Box 1617
Boise, ID 83701
Phone: 208.344.6000
Fax: 208.954.5261
Email: sschwager@hawleytroxell.com
About Roome Enterprises
Roome Enterprises, Inc. provides construction, cleanup, disaster
restoration, janitorial, window washing, and related services, in
Northern Idaho and Eastern Washington under various ServiceMaster
franchise agreements.
Roome Enterprises sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Idaho Case No. 25-20010) on January 14,
2025, with up to $10 million in both assets and liabilities.
Adolphe R Roome, owner and president, signed the petition.
The Debtor is represented by:
Matthew W Grimshaw
Grimshaw Law Group, P.C.
Tel: 208-391-7860
Email: matt@grimshawlawgroup.com
ROYAL REALTY: Seeks to Hire Calaiaro Valencik as Legal Counsel
--------------------------------------------------------------
Royal Realty by TLM, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Pennsylvania to employ Calaiaro
Valencik as its counsel.
The firm will render these services:
(a) prepare bankruptcy petition and complete Schedules and
Statement of Financial Affairs;
(b) attend the Initial Debtor Interview and the meeting of
creditors;
(c) represent the Debtor in relation to negotiating an
agreement with KeyBank regarding their treatment under a Plan;
(d) represent the Debtor in relation to acceptance or
rejection of executory contracts;
(e) advise the Debtor about preference actions;
(f) advise the Debtor regarding its rights and obligations
during the Chapter 11 case;
(g) represent the Debtor in relation to any motions to convert
or dismiss this Chapter 11;
(h) represent the Debtor in relation to any motions for relief
from stay filed by any creditors;
(i) prepare the Plan of Reorganization and Disclosure
Statement;
(j) prepare any objection to claims in the Chapter 11; and
(k) otherwise, represent the Debtor in general.
The firm will be paid at these hourly rates:
Donald Calaiaro, Partner $450
David Valencik, Partenr $375
Andrew Pratt, Partner $325
Paralegals $100
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received payments of $5,000 as initial retainer on January
9, 2025, and $1,738 on January 24, 2025, as filing fee from the
Debtor.
Mr. Calaiaro 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:
Donald R. Calaiaro, Esq.
Calaiaro Valencik
555 Grant Street, Suite 300
Pittsburgh, PA 15219
Telephone: (412) 232-0930
Facsimile: (412) 232-3858
Email: dcalaiaro@c-vlaw.com
About Royal Realty By TLM LLC
Royal Realty By TLM LLC is a real estate company based in West
Mifflin, Pennsylvania.
Royal Realty By TLM LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-20186) on January 24,
2025. In its petition, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $100,000 and $500,000.
Honorable Bankruptcy Judge James M. Carr handles the case.
Calaiaro Valencik serves as the Debtor's counsel.
RPM EXPEDITE: Gets Extension to Access Cash Collateral
------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas issued
a third interim order extending RPM Expedite USA, LLC's authority
to use the cash collateral of Frost Bank.
Frost Bank asserts security interest in substantially all of RPM's
assets, including cash collateral based on the pre-bankruptcy
financing it provided to the company.
As protection, the bank was granted a continuing post-petition
security interest in and lien on all personal property of the
company to the same extent and with the same priority as its
pre-bankruptcy liens.
RPM's authority to use cash collateral terminates on the final
hearing date to be set by the court.
About RPM Expedite USA
RPM Expedite USA, LLC operates in the general freight trucking
industry.
RPM Expedite USA sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Texas Case No. 24-44345) on November
22, 2024, listing between $1 million and $10 million in both assets
and liabilities. Eric Kunz, chief executive officer of RPM Expedite
USA, signed the petition.
Judge Mark X. Mullin oversees the case.
The Debtor is represented by Howard Marc Spector, Esq., at Spector
+ Cox, PLLC.
S&W SEED: Reduces Net Loss to $1.66 Million in Q2 2025
------------------------------------------------------
S&W Seed Company submitted its Quarterly Report on Form 10-Q to the
Securities and Exchange Commission, revealing a net loss of $1.66
million on revenue of $5.08 million for the three months ended Dec.
31, 2024. This marks an improvement over the same period last
year, when the Company posted a net loss of $6.49 million on
revenue of $8.26 million.
For the six months ending Dec. 31, 2024, the Company reported a net
loss of $17.89 million on revenue of $13.39 million, as compared to
a net loss of $12.45 million on revenue of $19.02 million for the
six months ended Dec. 31, 2023.
As of Dec. 31, 2024, the Company had $73.32 million in total
assets, $38.33 million in total liabilities, $6.03 million in total
mezzanine equity, and $28.96 million in total stockholders'
equity.
Management Discussion
"Over the past few months, we have completed a number of important
steps to reposition S&W for future success by exclusively focusing
our operations on our core, Americas-based business, led by our
high margin Double Team sorghum solutions," commented S&W's CEO,
Mark Herrmann. "We believe these actions, including the completion
of the Australian VA process, entry into a new working capital
facility, and implementation of an operating optimization plan to
align our cost structure, have dramatically improved the long-term
outlook for S&W. With a streamlined organization and focused
management team, we feel we are poised to truly benefit from our
pioneering research and development of sorghum and camelina, two
globally important crops where S&W has differentiated technology."
"Our outlook for the remainder of fiscal 2025 remains optimistic,
with expectations that we will have positive adjusted EBITDA for
the six-month period of January through June 2025. We look forward
to the successful execution of our operating objectives in this
important spring planting season as we look to drive continued
value for S&W," Herrmann concluded.
Liquidity and Going Concern
S&W Seed stated, "The Company is not profitable and has recorded
negative cash flows from operating activities for the last several
years. For the six months ended December 31, 2024, the Company
reported a net loss from continuing operations of $12.5 million and
a net loss from discontinued operations of $5.4 million, which
included a $5.2 million loss from the disposal of S&W Australia.
The Company has an accumulated deficit of $140.2 million as of
December 31, 2024. As of December 31, 2024, the Company had cash
on hand of $1.4 million and positive working capital of $1.0
million. The Company had $1.6 million of unused availability from
its new working capital facility with ABL OPCO LLC, or Mountain
Ridge, as of December 31, 2024.
"The Company's Credit and Security Agreement, or the Mountain Ridge
Credit Agreement, with Mountain Ridge contains various financial
covenants. Adverse geopolitical and macroeconomic events and other
factors affecting the Company's results of operations may increase
the risk of the Company's inability to comply with these covenants,
which could result in acceleration of its repayment obligations and
foreclosure on its pledged assets. As of December 31, 2024, the
Company was in compliance with all covenants in the Mountain Ridge
Credit Agreement. While we obtained waivers for certain defaults
and covenants of our credit facilities in the past, there can be no
assurance we will be successful in meeting our covenants, avoiding
future defaults, or securing future waivers and/or amendments from
our lenders. If we are unsuccessful in doing so, we may need to
reduce the scope of our operations, repay amounts owing to our
lenders, finance our cash needs through a combination of equity and
debt financings, enter into collaborations, strategic alliances and
licensing arrangements, delay payments to our growers, sell certain
assets or divest certain operations. These operating and liquidity
factors raise substantial doubt regarding the Company's ability to
continue as a going concern."
The full-text of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1477246/000095017025019956/sanw-20241231.htm
About S&W Seed Company
Founded in 1980, S&W is a global multi-crop, middle-market
agricultural company headquartered in Longmont, Colorado. S&W's
vision is to be the world's preferred proprietary seed company
which supplies a range of sorghum, forage and specialty crop
products that supports the growing global demand for animal
proteins and healthier consumer diets. S&W is a global leader in
proprietary sorghum seeds with significant research and
development, production and distribution capabilities. S&W also
has a commercial presence in proprietary alfalfa seeds, and through
a partnership, is focused on sustainable biofuel feedstocks
primarily within camelina. For more information, please visit
www.swseedco.com.
Denver, Colorado-based Grant Thornton LLP, the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated Nov. 1, 2024. The report cited that the Company has incurred
a net loss of $30.1 million and cash used in operating activities
was $5.6 million for the year ended June 30, 2024, and as of that
date, the Company's current liabilities exceeded its current assets
by $5.9 million and had an accumulated deficit of $122.1 million.
In addition, the Company's subsidiary, S&W Australia, entered into
voluntary administration on July 24, 2024, and is no longer under
the Company's control. S&W Australia's entry into voluntary
administration also resulted in an event of default under the
Company's Amended CIBC Loan Agreement. On Aug. 5, 2024, the
Company received a waiver for the event of default from CIBC, which
contained conditions that are not within the Company's control.
Effective Sept. 16, 2024, the Company was not in compliance with
the amended terms per the Third Amendment of the Company's Amended
CIBC Loan Agreement, which constitutes an additional event of
default, and through the date of this report has not been able to
regain compliance. These conditions and uncertainties as to
whether the Company can mitigate the impact of the voluntary
administration, along other matters, raise substantial doubt about
the Company's ability to continue as a going concern.
SBB SHIPPING: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------
The U.S. Trustee for Region 3 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of SBB Shipping USA, Inc.
About SBB Shipping USA
SBB Shipping USA Inc. offers JIT and tailor-made international
logistics and fulfillment services.
SBB filed Chapter 11 petition (Bankr. D.N.J. Case No. 24-22278) on
December 14, 2024, listing between $1 million and $10 million in
assets and between $10 million and $50 million in liabilities.
Batuhan Cakmak, president of SBB, signed the petition.
Judge Vincent F. Papalia handles the case.
The Debtor is represented by David Stevens, Esq., at Scura,
Wigfield, Heyer, Stevens & Cammarota, LLP.
SCHILLER PARK: Court OKs Interim Use of Cash Collateral
-------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
issued a second interim order authorizing Schiller Park
Hospitality, LLC to use cash collateral.
The second interim order authorized the company to use cash
collateral to pay the expenses set forth in its budget, subject to
a variance of no more than 10% between projected EBITDA and actual
EBITDA.
The court provided protection to the lender, CRE Bridge Capital,
LLC, in the form of a replacement liens on the company's
post-petition assets, including proceeds from its pre-bankruptcy
collateral.
The next hearing will be held on March 12.
CRE Bridge Capital is represented by:
John O'Connor, Esq.
Levenfeld Pearlstein, LLC
120 S. Riverside Plaza, Suite 1800
Chicago, IL 60606
Phone: 312-346-8380
Email: joconnor@lplegal.com
About Schiller Park Hospitality
Schiller Park Hospitality, LLC, a company in Skokie, Ill., filed
Chapter 11 petition (Bankr. N.D. Ill. Case No. 25-01447) on January
30, 2025, listing between $10 million and $50 million in both
assets and liabilities. The petition was signed by Amin Amdani as
managing member.
Judge David D Cleary oversees the case.
The Debtor is represented by Paul M. Bach, Esq., at Bach Law
Offices.
SHEKINAH RESOURCE: Seeks Chapter 11 Bankruptcy in Georgia
---------------------------------------------------------
On February 4, 2025, Shekinah Resource Foundation Inc. filed
Chapter 11 protection in the U.S. Bankruptcy Court for
the Northern District of Georgia. According to court filing, the
Debtor reports $500,000 and $1 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
About Shekinah Resource Foundation Inc.
Shekinah Resource Foundation Inc. operating as a public charity in
Winston Salem, NC.
Shekinah Resource Foundation Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-51160) on
February 4, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $500,000 and $1 million each.
Honorable Bankruptcy Judge Jeffery W. Cavender handles the case.
SHERWOOD HOSPITALITY: Case Summary & 11 Unsecured Creditors
-----------------------------------------------------------
Debtor: Sherwood Hospitality Group, LLC
d/b/a Hampton Inn Sherwood Portland
22000 SW Meinecke Parkway
Sherwood, OR 97140
Business Description: Sherwood Hospitality Group, LLC, operating
as Hampton Inn Sherwood Portland, is a
hospitality company based in Sherwood,
Oregon. The Company manages a hotel
offering amenities like free breakfast,
free Wi-Fi, a heated indoor pool, and a
fitness center.
Chapter 11 Petition Date: February 17, 2025
Court: United States Bankruptcy Court
District of Oregon
Case No.: 25-30484
Judge: Hon. Peter C Mckittrick
Debtor's Counsel: Douglas R. Ricks, Esq.
SUSSMAN SHANK LLP
1000 SW Broadway, Suite 1400
Portland, OR 97205
Tel: (503) 227-1111
Fax: (503) 248-0130
E-mail: dricks@sussmanshank.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Alkesh R. Patel as manager.
A copy of the Debtor's list of 11 unsecured creditors on
PacerMonitor at:
https://www.pacermonitor.com/view/I24J4GA/Sherwood_Hospitality_Group_LLC__orbke-25-30484__0004.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/IVHUGEY/Sherwood_Hospitality_Group_LLC__orbke-25-30484__0001.0.pdf?mcid=tGE4TAMA
SOUTHERN PINESTRAW: Gets Final OK to Use Cash Collateral
--------------------------------------------------------
The United States Bankruptcy Court for the Northern District of
Florida granted Southern Pinestraw, Inc. final approval to use cash
collateral.
The final order authorized the company to use cash collateral to
pay its expenses in accordance with its six-month budget.
The company's budget shows total projected expenses of $46,186.67
for January; $46,597.07 for February; $28,675 for March; $41,400
for April; $43,400 for May; and $47,700 for June.
Any creditor that claims to have a lien on cash collateral will be
granted a post-petition lien on the collateral to the same extent
and with the same validity and priority as its pre-bankruptcy
lien.
About Southern Pinestraw Inc.
Southern Pinestraw Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Fla. Case No.
25-10003) on January 7, 2025. In its petition, the Debtor reported
between $500,000 and $1 million in both assets and liabilities.
Judge Karen K. Specie oversees the case.
The Debtor is represented by Lisa Caryl Cohen, Esq., at Ruff &
Cohen, P.A.
SOUTHMINSTER, NC: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Southminster, NC's (SM) Long-Term Issuer
Default Rating (IDR) at 'BB' and Public Finance Authority series
2018 bonds issued on behalf of SM at 'BB'.
The Rating Outlook is Stable.
Entity/Debt Rating Prior
----------- ------ -----
Southminster, Inc. (NC) LT IDR BB Affirmed BB
Southminster, Inc. (NC)
/General Revenues/1 LT LT BB Affirmed BB
The 'BB' rating reflects SM's highly leveraged balance sheet driven
by its completed master facility plan. SM has been able to sustain
strong occupancy driving strong entrance fee income. SM remains
focused on improving operations and, as such, has little room for
any setbacks due to its leverage metrics.
SM's business profile remains characterized by a strong revenue
defensibility as a single site, Type B life plan community (LPC)
with good demand in a quality service area. However, SM has a
currently weaker operating risk assessment and weaker financial
profile assessment driven primarily by its elevated leverage
position, reflecting its rating in the middle of the 'BB'
category.
SM's Rating Outlook is Stable, reflecting Fitch's expectation that
the organization should leverage its position in the market to
sustain operating metrics and eventually build its liquidity,
particularly given a manageable pace of capital spending in the
next few years.
SECURITY
A gross revenue pledge, mortgage on the facility and a debt service
reserve fund for the 2018 tax-exempt bonds.
KEY RATING DRIVERS
Revenue Defensibility - 'a'
Single Site LPC with Strong Demand Characteristics
The strong revenue defensibility is supported by IL occupancy that
averaged a very strong 99% over the last five years. The strong
occupancy is supported by a sizable waitlist for SM with
approximately 1,000 members. Demand in the other continuum of care
service lines is also strong. It should be noted that SM has
historically limited outside admits, preferring to keep
availability for its residents. As such, SNF occupancy was 78% for
fiscal 2024 and improved from fiscal 2023.
Competition for SM's Type B contract is manageable in the primary
service area of southeast Charlotte, NC. SM has a demonstrated
history of regular entrance fee and monthly rate increases.
Entrance fee pricing is consistent with area housing prices and
resident wealth indicators, which provides further support for its
strong market position in its quality service area.
Operating Risk - 'bb'
Highly Leveraged Constrains Southminster's Assessment
The weak operating risk assessment largely reflects SM's elevated
leverage position. For FY 2024, SM's maximum annual debt service
(MADS) as a percentage of revenues, and debt to net available, were
consistent with a weaker operating assessment at 20.4% and 10.5x,
respectively. SM's core operating metrics have remained sound, with
net operating margin (NOM) and NOM-adjusted measuring 10% and 27%,
respectively, in fiscal 2024, which is important given its
leveraged position.
SM has completed its elevated cycle of capital spending. Over the
last five years capex averaged 319% of depreciation, reflecting
necessary MFP spending. SM has scaled back on the capital as the
campus has been refreshed. SM is expecting to spend approximately
$5 million on capital over the next several of years, allowing for
improved unrestricted reserves going forward.
Financial Profile - 'bb'
Financial Profile Leveraged but Stable
Given SM's strong revenue defensibility but weak operating risk
assessment, Fitch views the financial profile assessment as weak.
Fitch expects key leverage metrics to remain stable through the
current economic and business cycle. SM had unrestricted cash and
investments of approximately $263 million at Sept. 30, 2024, which
represented about 23.1% of total adjusted debt, when including a $9
million debt service reserve fund.
Days cash on hand and MADS coverage for FY 2024 were both are
adequate for the rating level at 233 days and 1.5x, respectively.
Fitch believes SM's strong demand, manageable capital needs and
focus on improving operational performance provides a good
financial cushion in a stress scenario. Fitch's forward-looking
stress case incorporates both an investment portfolio and cash flow
stress. With the stress scenario, Fitch expects capital related
metrics will improve while leverage remains a constraint on the
financial profile.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Challenges to the strong market position such that ILU occupancy
is sustained below 90%;
- Deterioration in unrestricted liquidity or a debt issuance,
particularly if cash to adjusted debt is expected to be sustained
below 20% in a forward-looking stress case.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Growth in unrestricted liquidity such that cash to adjusted debt
stabilizes closer to 50% through Fitch's forward look;
- Improved cash flow such that MADS coverage is consistently around
2x.
PROFILE
SM is a North Carolina nonprofit corporation organized in 1984 that
owns and operates Southminster, a single site, Type B contract
senior living community. SM is the only member of the obligated
group. To date, SM has 322 IL units, 25 AL units, and 60 skilled
nursing beds. Total operating revenue in fiscal 2024 was $46.5
million.
SM residents are offered Type B modified residency agreements with
three options. Over 80% of residents are on the standard plan,
which amortizes the entrance fee paid at 5% per month for 20 months
and offers no refund. The other residents are divided between a 50%
refundable plan, which amortizes the entrance fee paid at 5% per
month for the first 10 months of occupancy, and a 90% refundable
plan where the plan is amortized at 5% per month for two months
following occupancy.
Sources of Information
In addition to the sources of information identified in Fitch's
applicable criteria specified below, this action was informed by
data from Lumesis.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
TBB DEEP: Court to Hold Hearing Today on Bid to Use Cash Collateral
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas will
hold a hearing today to consider the request of TBB Deep Ellum,
LLC's affiliates for a further extension to use their cash
collateral.
TBB Boardwalk, LLC, TBB North Arlington, LLC, TBB Stockyards FW,
LLC, TBB Coppell, LLC, and TBB Abilene, LLC previously received
interim approval to use their cash collateral to pay their expenses
and grant a replacement lien to creditors with security interest in
the cash collateral.
The interim order was issued on Feb. 14 following the court's
approval to jointly administer the companies' Chapter 11 cases with
that of TBB Deep Ellum.
The Feb. 14 interim order does not apply to TBB Deep Ellum and does
not supersede the bankruptcy court's second interim order signed on
Feb. 7, which granted TBB Deep Ellum interim authorization to use
its cash collateral.
About TBB Deep Ellum
TBB Deep Ellum, LLC operates as The Biscuit Bar and provides
counter-service dining featuring biscuit sandwiches and full-bar
service. The company operates from its location at 2550 Pacific
Avenue in Dallas's Deep Ellum neighborhood.
TBB Deep Ellum filed Chapter 11 petition (Bankr. D. Texas Case No.
25-30207) on January 21, 2025, listing between $50,000 and $100,000
in assets and between $1 million and $10 million in liabilities.
Judge Michelle V. Larson handles the case.
On February 12, 2025, the bankruptcy court ordered the joint
administration of TBB Deep Ellum's case and the Chapter 11 cases
filed by its affiliates on February 6, 2025. The affiliates are TBB
Boardwalk, LLC, TBB North Arlington, LLC, TBB Stockyards FW, LLC,
TBB Coppell, LLC, and TBB Abilene, LLC.
Judge Michelle V. Larson oversees the cases.
The Debtors' legal counsel is Thomas Berghman, Esq., at Munsch
Hardt Kopf & Harr, P.C., in Dallas, Texas.
TEAM MUV FITNESS: Case Summary & 10 Unsecured Creditors
-------------------------------------------------------
Debtor: Team MUV Fitness Troutdale LLC
2501 SW Cherry Park Road
Troutdale, OR 97060
Business Description: MUV Fitness Troutdale is a fitness center
located at 2469 SW Cherry Park Road in
Troutdale, Oregon. It offers a variety of
amenities, including cardio and strength
training equipment, group fitness classes
like Boot Camp, Zumba, and yoga, an indoor
swimming pool, basketball and pickleball
courts, and onsite childcare services.
Chapter 11 Petition Date: February 17, 2025
Court: United States Bankruptcy Court
District of Oregon
Case No.: 25-30476
Judge: Hon. Teresa H Pearson
Debtor's Counsel: Oren B. Haker, Esq.
BLACK HELTERLINE LLP
805 SW Broadway, Suite 1900
Portland, OR 97205
Tel: 503-224-5560
Fax: 503-224-6148
E-mail: oren.haker@bhlaw.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jeffrey Carlson as owner/manager.
A full-text copy of the petition, which includes a list of the
Debtor's 10 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/J6S7VDA/Team_MUV_Fitness_Troutdale_LLC__orbke-25-30476__0001.0.pdf?mcid=tGE4TAMA
TIMELINE CONSTRUCTION: Seeks to Tap Thomas F. Jones III as Counsel
------------------------------------------------------------------
Timeline Construction, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to employ Law Firm of
Thomas F. Jones III as counsel.
The firm will render these services:
(a) advise the Debtor with respect to its powers and duties in
the continued operation of its businesses and management;
(b) take all necessary action to protect and preserve the
bankruptcy estate;
(c) prepare all necessary legal papers in connection with the
administration of the estate;
(d) assist in preparing for and filing a disclosure statement
and plan of reorganization and, if necessary, amendments thereto,
at the earliest possible date; and
(e) perform any and all other legal services reasonably
necessary or otherwise requested by the Debtor in connection with
its Chapter 11 case and the formation and implementation for a
Chapter 11 plan.
Thomas F. Jones III, Esq., the primary attorney in this
representation, will be paid at his hourly rates of $450 and $120
for attorney and paraprofessional time, respectively.
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to filing of this case, the firm received a retainer of
$6,000 from the Debtor.
Mr. Jones III disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Thomas F. Jones III, Esq.
Law Firm of Thomas F. Jones III
2425 West Loop S.
Houston, TX 77027
Telephone: (832) 398-6182
Email: tfjonesiii@gmail.com
About Timeline Construction
Timeline Construction, LLC is a full-service construction company
in Houston, Texas, specializing in high-end residential and
commercial construction, build-outs, remodeling, and renovations.
Timeline Construction filed Chapter 11 petition (Bankr. S.D. Tex.
Case No. 25-30212) on January 10, 2025, with between $10 million
and $50 million in both assets and liabilities.
Judge Alfredo R. Perez oversees the case.
The Law Office of Thomas F. Jones, III represents the Debtor as
counsel.
TPT GLOBAL: Raises Going Concern Doubt Amid Losses, Cash Flow Woes
------------------------------------------------------------------
TPT Global Tech, Inc. disclosed in a Form 10-Q Report filed with
the U.S. Securities and Exchange Commission for the quarterly
period ended September 30, 2024, that there is substantial doubt
about its ability to continue as a going concern.
TPT Global stated that it incurred $3,541,766 and ($3,919,955),
respectively, in net income and net loss, and used $459,252 and
$442,135, respectively, in cash for operations for the nine months
ended September 30, 2024 and 2023.
"We calculate the net cash used by operating activities by
decreasing, or increasing in case of gain, our let loss by those
items that do not require the use of cash such as depreciation,
amortization, research and development, derivative expense or gain,
gain on extinguishment of debt and share-based compensation which
totaled to a net ($7,337,932) for 2024 and $1,170,540 for 2023,"
the Company said.
"In addition, we report increases and reductions in liabilities as
uses of cash and decreases assets and increases in liabilities as
sources of cash, together referred to as changes in operating
assets and liabilities. For the nine months ended September 30,
2024, we had a net change in our assets and liabilities of
$3,336,914 primarily from an increase in accounts payable from lag
of payments for accounts payable for cash flow considerations and
increase in prepaid expenses. For the nine months ended September
30, 2023 we had a net change to our assets and liabilities of
$2,303,246 for similar reasons."
"Cash flows from financing activities were $453,739 and $382,505
for the nine months ended September 30, 2024 and 2023,
respectively. These cash flows were generated primarily from
proceeds from convertible notes and notes payable from related
parties."
"Cash flows used in investing activities were $0 and $0,
respectively, for the nine months ended September 30, 2024 and
2023."
These factors raise substantial doubt about the ability of the
Company to continue as a going concern within the next 12 months.
"In order for us to continue as a going concern for a period of one
year from the issuance of these financial statements, we will need
to obtain additional debt or equity financing and look for
companies with cash flow positive operations that we can acquire.
There can be no assurance that we will be able to secure additional
debt or equity financing, that we will be able to acquire cash flow
positive operations, or that, if we are successful in any of those
actions, those actions will produce adequate cash flow to enable us
to meet all our future obligations. Most of our existing financing
arrangements are short-term. If we are unable to obtain additional
debt or equity financing, we may be required to significantly
reduce or cease operations."
As of September 30, 2024, TPT Global Tech had $1,158,306 in total
assets, $37,432,577 million in total liabilities, $59,947,107 in
total mezzanine equity, and total stockholders' deficit of
$96,221,378.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/rxjyv7cx
About TPT Global Tech
TPT Global Tech, Inc. -- www.tptglobaltech.com -- is a technology
holding company based in San Diego, California. It was formed as
the successor of two U.S. corporations, Ally Pharma US and TPT
Global, Inc. The Company operates in various sectors including
media, telecommunications, Smart City Real Estate Development, and
the launch of the first super App, VuMe Live technology platform.
TWIN FALLS: Gets OK to Use Additional $197K in Cash Collateral
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of North Dakota granted
Twin Falls Oil Service, LLC permission to use an additional
$197,714.92 in cash collateral.
The company requires the use of cash collateral to pay quarterly
payroll taxes and a retainer for its financial advisor.
Pre-bankruptcy lenders, including First International Bank & Trust,
Quick Bridge Funding, and Samson MCA LLC, were granted replacement
liens on post-petition assets to the same effect and with the same
priority as their pre-bankruptcy liens.
First International Bank & Trust, as lender, is represented by:
Eli J. Patten, Esq.
Crowley Fleck PLLP
P.O. Box 2529
Billings, Montana 59103-2529
Email: epatten@crowleyfleck.com
About Twin Falls Oil Service
Twin Falls Oil Service, LLC, a company in Killdeer, N.D., offers
crude oil hauling, water hauling, aggregate hauling, hydrovac winch
services, and OTR hauling.
Twin Falls filed Chapter 11 petition (Bankr. D. N.D. Case No.
24-30525) on December 11, 2024, listing up to $50,000 in assets and
up to $10 million in liabilities. Jeffery L. Jacobson, president of
Twin Falls, signed the petition.
Judge Shon Hastings oversees the case.
The Debtor is represented by Steven R Kinsella, Esq., at Fredrikson
& Byron, P.A.
UNITED FIBER: Court Extends Cash Collateral Access to Feb. 28
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Riverside Division extended United Fiber Comm, Inc.'s authority to
use cash collateral until Feb. 28.
Any creditor that the court determines to have an interest in cash
collateral will receive a replacement lien on its collateral with
the same priority and validity as its pre-bankruptcy lien.
The next hearing is scheduled for Feb. 27.
About United Fiber Comm.
United Fiber Comm., Inc. is a telecommunications contractor in
California, with offices in Goleta, Corona, and Vista.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-16470) on October
29, 2024, with $1,663,379 in assets and $8,172,909 in liabilities.
Raymond Martinez, chief executive officer, signed the petition.
Judge Scott H. Yun oversees the case.
The Debtor is represented by Robert P. Goe, Esq., at Goe Forsythe &
Hodges, LLP.
VERDE RESOURCES: Reports Larger Net Loss of $2.69 Million for Q2
----------------------------------------------------------------
Verde Resources, Inc., submitted its Quarterly Report on Form 10-Q
with the Securities and Exchange Commission, showing a net loss of
$2.69 million on net revenue of $2,423 for the three months ending
Dec. 31, 2024, as compared to a net loss of $526,338 on net revenue
of $5,192 for the same period last year.
For the six months ending Dec. 31, 2024, the Company reported a net
loss of $2.34 million on net revenue of $127,993, as compared to a
net loss of $1.08 million on net revenue of $7,774 for the six
months ending Dec. 31, 2023.
As of Dec. 31, 2024, the Company had $39.75 million in total
assets, $1.79 million in total liabilities, and $37.96 million in
total stockholders' equity.
The Company has generated recurring losses and suffered from an
accumulated deficit of $15,819,791 as of Dec. 31, 2024.
"The Company's ability to continue as a going concern over the next
twelve months depends on the successful validation and
certification of its net zero road construction blueprint, the
Verde Net Zero Blueprint, by the National Center for Asphalt
Technology (NCAT) and its adherence to established carbon removal
and avoidance methodologies. Achieving these milestones will
enable the Company to generate revenue through the commercial
licensing of the blueprint, royalties from Biochar-Asphalt mix
designs, carbon credits, and sales of biochar and bio-fuel," Verde
Resources stated in the Report.
The full text of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1506929/000164033425000251/vrdr_10q.htm
About Verde Resources
Headquartered in St. Louis, MO, Verde Resources, Inc. specializes
in Net Zero road construction and building materials, driving
innovations that enhance sustainability and advance environmental
stewardship. Since 2021, the Company's BioFraction facility in
Borneo has been converting palm waste into biochar and other
sustainable byproducts.
Kuala Lumpur, Malaysia-based J&S Associate PLT, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated Oct. 16, 2024, citing that the company has incurred
recurring losses and accumulated a deficit of $13,480,204 as of
June 30, 2024. These matters raise substantial doubt about the
Company's ability to continue as a going concern.
The Company recorded a net loss of $3,187,774 and $3,998,960 for
the years ended June 30, 2024, and 2023, respectively.
VIGILANT HEALTH: Gets Final OK to Use Cash Collateral
-----------------------------------------------------
Vigilant Health Network, Inc. and affiliates received final
approval from the U.S. Bankruptcy Court for the Middle District of
Tennessee, Nashville Division, to use cash collateral.
As adequate protection for the use of its cash collateral, Origin
Bank was granted a replacement security interest in the Debtors'
post-petition property and proceeds thereof to the same validity,
extent and priority as its purported security interest in the
Debtors' pre-bankruptcy property and the proceeds thereof.
The Debtors and Origin Bank may modify the budget by agreement,
after consultation with the Subchapter V Trustee and U.S. Trustee,
if the Debtors' business circumstances require them to spend more
than the amount reflected in the budget.
About Vigilant Health Network Inc.
Vigilant Health Network, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Tenn. Case No. 25-00100) on
January 9, 2025, with up to $10 million in both assets and
liabilities. G. Austin Triggs, Jr., executive chairman of Vigilant
Health Network, signed the petition.
Judge Charles M. Walker oversees the case.
Robert J. Gonzales, Esq., at EmergeLaw, PLC, represents the Debtor
as bankruptcy counsel.
Origin Bank, as lender, is represented by:
Keith C. Dennen, Esq.
PHELPS DUNBAR LLP
414 Union Street, Suite 1105
Nashville, TN 37219
Telephone: 615.726.1200
Facsimile: 615.726.1776
Email: keith.dennen@phelps.com
VISTAGEN THERAPEUTICS: Posts Wider Net Loss of $14.1M in Q3 2025
----------------------------------------------------------------
Vistagen Therapeutics, Inc. submitted its Quarterly Report on Form
10-Q to the Securities and Exchange Commission, revealing a net
loss of $14.10 million on total revenues of $234,000 for the three
months ending Dec. 31, 2024. In comparison, the Company reported a
net loss of $6.35 million on revenues of $411,000 for the same
period in 2023.
For the nine months ended Dec. 31, 2024, the Company disclosed a
net loss of $37.78 million on total revenues of $501,000, as
compared to a net loss of $19.84 million on total revenues of
$867,000 for the same period last year.
As of Dec. 31, 2024, the Company had $92.31 million in total
assets, $11.19 million in total liabilities, and $81.12 million in
total stockholders' equity.
"Since our inception, we have not generated any revenue from
product sales and have incurred significant operating losses and
negative cash flows from our operations. To date, we have financed
our operations and technology acquisitions primarily through the
issuance and sale of our equity and debt securities for cash
proceeds of approximately $338.5 million, as well as from an
aggregate of approximately $22.7 million of government research
grant awards, strategic collaboration payments, intellectual
property licensing payments, and other revenues. Additionally, we
have issued equity securities with an approximate value at issuance
of $41.3 million in non-cash acquisitions of product licenses, as a
portion of the consideration for our acquisition of the Pherin in
February 2023, and in settlements of certain liabilities, including
liabilities for professional services rendered to us or as
compensation for such services," Vistagen stated in the Report.
The full text of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1411685/000141168525000019/vtgn-20241231.htm
About VistaGen
Headquartered in San Francisco, California, VistaGen Therapeutics,
Inc. -- http://www.vistagen.com-- is a clinical-stage
biopharmaceutical company leveraging a deep understanding of
nose-to-brain neurocircuitry to develop and commercialize a broad
and diverse pipeline of clinical-stage product candidates from a
new class of intranasal therapies called pherines. Pherines
specifically and selectively bind to peripheral receptors in human
nasal chemosensory neurons, which activate olfactory bulb-to-brain
neurocircuits without requiring systemic absorption or uptake into
the brain to achieve desired therapeutic benefits and
differentiated safety. Vistagen's neuroscience pipeline also
includes an oral prodrug with potential to impact certain
neurological conditions involving the NMDA receptor. Vistagen is
passionate about developing transformative treatment options to
improve the lives of individuals underserved by the current
standard of care for multiple highly prevalent indications,
including social anxiety disorder, major depressive disorder, and
vasomotor symptoms (hot flashes) associated with menopause.
Vistagen reported a net loss and comprehensive loss of $29.36
million for the year ended March 31, 2024, a net loss and
comprehensive loss of $59.25 million for the year ended March 31,
2023, a net loss and comprehensive loss of $47.76 million for the
fiscal year ended March 31, 2022, a net loss and comprehensive loss
of $17.93 million for the fiscal year ended March 31, 2021, a net
loss and comprehensive loss of $20.77 million for the year ended
March 31, 2020, and a net loss and comprehensive loss of $24.59
million for the year ended March 31, 2019.
The Company has incurred significant losses and negative cash flows
from operations since inception. As of March 31, 2024, the Company
had an accumulated deficit of $356.2 million. The Company expects
that its operating losses and negative cash flows will continue for
the foreseeable future as it continues to develop its product
candidates. The Company expects that its cash and cash equivalents
of $119.2 million as of March 31, 2024, will be sufficient to fund
its operating expenses and capital requirements for at least 12
months from the issuance of these audited consolidated financial
statements on June 11, 2024.
WE BE BOOK'N: Seeks to Tap Neeleman Law Group as Bankruptcy Counsel
-------------------------------------------------------------------
We Be Book'N LLC, seeks approval from the U.S. Bankruptcy Court for
the Western District of Washington to employ Neeleman Law Group as
legal counsel.
The firm will provide these services:
(a) assist the Debtor in the investigation of the financial
affairs of the estate;
(b) provide legal advice and assistance to the Debtor with
respect to matters relating to this case and creditor
distribution;
(c) prepare all pleadings necessary for proceedings arising
under this case; and
(d) perform all necessary legal services for the estate in
relation to this case.
The firm's professionals will be paid at these hourly rates:
Principals $600
Associates $475
Paralegal $250
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer of $1,738 to pay the filing fee.
Jennifer Neelemen, Esq., an attorney at Neeleman Law Group,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Jennifer L. Neeleman, Esq.
Neeleman Law Group, P.C.
1408 8th Street
Marysville, WA 98270
Telephone: (425) 212-4800
Email: jenifer@neelemanlaw.com
About We Be Book'N
We Be Book'N, LLC operates as a retail bookstore in Monroe,
Washington, which began in January, 2023.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wash. Case No. 25-10139) on January
17, 2025, with $0 to $50,000 in assets and $100,001 to $500,000 in
liabilities.
Judge Christopher M. Alston presides over the case.
Jennifer L. Neeleman, Esq. at Neeleman Law Group, PC represents the
Debtor as legal counsel.
WINDWARD DESIGN: Gets Interim OK to Use Cash Collateral
-------------------------------------------------------
Windward Design Group, Inc. received interim approval from the U.S.
Bankruptcy Court for the Middle District of Florida, Tampa
Division, to use cash collateral and provide adequate protection.
The Debtor needs to use cash collateral to fund its operating
expenses and the costs of administering the Chapter 11 case in
accordance with the budget.
The Debtor's primary secured creditor is South State Bank, in
connection with a line of credit in the approximate amount of
$975,000. The Lender filed UCC-1 financing statements asserting a
security interest in all assets of the Debtor.
About Windward Design Group Inc.
Windward Design Group, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00780) on
February 6, 2025. In the petition signed by David G. Peace,
president, the Debtor disclosed up to $10 million in both assets
and liabilities.
Judge Catherine Peek McEwen oversees the case.
Edward J. Peterson, Esq., at Johnson, Pope, Bokor, Ruppel & Burns,
LLP, represents the Debtor as legal counsel.
WISCONSIN & MILWAUKEE: Unsecureds Will Get 50% Dividend in Plan
---------------------------------------------------------------
Wisconsin & Milwaukee Hotel LLC, filed with the U.S. Bankruptcy
Court for the Eastern District of Wisconsin a Disclosure Statement
for Plan of Reorganization dated February 7, 2025.
WMH is a Wisconsin limited liability company with its principal
place of business in Milwaukee, Wisconsin. WMH owns and operates
the Milwaukee Marriott Downtown, a 205-room full-service, high-end
hotel located at 625 N. Milwaukee Street, Milwaukee, Wisconsin (the
"Hotel").
The Debtor intends as part of its Plan to assume the Marriott
Franchise Agreement in an agreed, modified form, following
negotiations with Marriott. The Debtor also intends to reject the
Management Agreement either as part of its Plan or prior to Plan
confirmation, and to replace White Lodging with a new Hotel
management company. Negotiations with potential replacement
management companies are ongoing.
The need for and urgency of the bankruptcy filing was precipitated
by the breakdown of discussions with Computershare to renew the
WHEDA Loans, which had matured on March 31, 2024. WMH filed this
Case to forestall a foreclosure, receivership, or other collection
action by Computershare.
WMH believes that, with a reorganization of its debts, the Hotel
will continue to operate successfully, provide good-paying jobs and
be an asset to a vibrant Milwaukee.
The Debtor's proposed Plan provides for treatment and distributions
on account of all allowed priority, secured and unsecured claims,
and interests. The schedule for payment of these obligations has
been designed to provide adequate prospective cash flow to the
Debtor to enable it to service its Plan and business obligations.
Class 5 consists of the Unsecured Claims of White Lodging. The
White Lodging claims are impaired, and White Lodging will be
solicited to vote to accept or reject the Plan. Pending the Court's
determination of the amounts of White Lodging's allowed claims, the
Plan provides that White Lodging shall be allowed a general
unsecured claim of $1,800,000 in full satisfaction of Claims 15 and
16, to be paid a 10% dividend in the amount of $180,000 on the
Effective Date.
Class 6 consists of Unsecured Claim of Computershare. Class 6 is
the unsecured portion of the Aggregate Claim of Computershare, in
the amount of $23,766,120.00, and is impaired. Class 6 will be
solicited to vote to accept or reject the Plan, unless Class 1 has
elected treatment pursuant to Options 1B or C. This Claim shall be
paid a 10% dividend in the amount of $2,376,612.00 over 18 years in
equal monthly payments of $11,002.83, with the first payment due on
the first day of the month that begins after 30 days from the
Effective Date, and each monthly payment due on the first day of
the same month thereafter, until paid in full.
Class 7 consists of the Unsecured Claim of WMH Funding. Class 7 is
the unsecured portion of the Claim of WMH Funding in the amount of
$2,113,208.30, and is impaired, and entitled to vote to accept or
reject the Plan. WMH shall be paid a 10% dividend in the amount of
$211,320.83 in equal monthly payments of $978.34, with the first
payment due on the first day of the month that begins after 30 days
from the Effective Date, with each monthly payment due on the first
day of the same month thereafter, until paid in full. Any lien
rights WMH Funding may have shall be extinguished upon the
Effective Date.
Class 8 consists of all other allowed General Unsecured Claims,
representing primarily trade debt of the Debtor, which totals
approximately $3,700,000 according to claims scheduled as
undisputed, non-contingent and liquidated, or for which a claimant
has filed a Proof of Claim, and which has not otherwise being paid
as cure costs in connection with the assumption of contracts or
disallowed pursuant to any orders entered by the Court. The
claimants in Class 8 are impaired.
Class 8 claimants shall be paid a 50% dividend in the approximate
aggregate amount of $1,850,000 pro-rata, in quarterly payments of
$185,000 over a 2 1/2 year period, with the first quarterly payment
due on the first day of the calendar quarter that begins after the
Effective Date, with each quarterly payment due on the first day of
each calendar quarter thereafter, until paid in full.
CLASS 9 consists of Equity Interest Holders of the Debtor. The
Debtor intends in the event of such an objection to seek Court
approval of the Class 9 treatment as an exception to the absolute
priority rule. Debtor's equity interest holders shall provide the
Debtor with $5 million in new capital over a five-year period in
order to fund improvements that are necessary to the success of the
reorganization. The Debtor believes that such new value is equal to
or greater than the equity component of its pro forma projection of
enterprise value upon emergence from bankruptcy, and therefore more
than sufficient to justify an exception to the absolute priority
rule.
To effectuate the proposed Plan, WMH shall continue its Hotel
operations. WMH will utilize profits, revenues, and income from its
operations, and cash on hand on the Effective Date to fund the
proposed Plan distributions. WMH shall rely on the new capital
contributions of its interest holders ($5 million over five years)
in order to pay for needed improvements and renovations.
A full-text copy of the Disclosure Statement dated February 7, 2025
is available at https://urlcurt.com/u?l=Ct27Jb from
PacerMonitor.com at no charge.
Wisconsin & Milwaukee Hotel LLC is represented by:
RICHMAN & RICHMAN LLC
Michael P. Richman, Esq.
Claire Ann Richman, Esq.
Eliza M. Reyes, Esq.
122 West Washington Avenue,
Suite 850
Madison, WI 53703
Tel: (608) 630-8990
Fax: (608) 630-8991
Email: mrichman@RandR.law
crichman@RandR.law
ereyes@RandR.law
About Wisconsin & Milwaukee Hotel
Wisconsin & Milwaukee Hotel LLC is a Wisconsin limited liability
company with its principal place of business in Milwaukee,
Wisconsin.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Wisc. Case No. 24-21743) on April 9, 2024. In
the petition signed by Mark Flaherty, as manager, the Debtor
disclosed up to $50 million in both assets and liabilities.
Judge G. Michael Halfenger oversees the case.
Michael P. Richman, at RICHMAN & RICHMAN LLC, is the Debtor's legal
counsel.
WITTENBERG LUTHERAN: Files Chapter 11 Bankruptcy in Illinois
------------------------------------------------------------
On February 4, 2025, Wittenberg Lutheran Village Inc. filed
Chapter 11 protection in the U.S. Bankruptcy Court for
the Northern District of Illinois. According to court filing, the
Debtor reports between $100 million and $500 million in
debt owed to 100 and 199 creditors. The petition states funds will
be available to unsecured creditors.
About Wittenberg Lutheran Village Inc.
Wittenberg Lutheran Village Inc. operating as Wittenberg Village,
is a tax-exempt healthcare and senior living facility located in
Crown Point, Indiana.
Wittenberg Lutheran Village Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-01711) on
February 4, 2025. In its petition, the Debtor reports estimated
assets between $10 million and $50 million and estimated
liabilities between $100 million and $500 million.
The Debtor is represented by:
Nicholas M Miller, Esq.
Mcdonald Hopkins LLC
600 Superior Avenue, East, Suite 2100
Cleveland, OH 44114
Tel: (216) 348-5400
XTI AEROSPACE: Obtains Required Consent From 3AM to Raise $10M
--------------------------------------------------------------
XTI Aerospace, Inc., filed a Form 8-K with the Securities and
Exchange Commission to disclose it has secured written approval
from 3AM Investments LLC, a company controlled by Nadir Ali, the
former CEO and director of the Company, in relation to the
Company's "at the market" offering program, which is governed by an
Equity Distribution Agreement with Maxim Group LLC, dated July 22,
2022, and amended as needed.
3AM Investments holds a majority of the Company's outstanding
Series 9 Preferred Stock. Under the terms of a securities purchase
agreement dated March 12, 2024, between the Company and 3AM, 3AM
will be considered a "Required Holder" as long as it owns any
shares of Series 9 Preferred Stock. As of Feb. 12, 2025, 3AM was
the sole holder of the Company's outstanding Series 9 Preferred
Stock.
Pursuant to the February 2025 Consent, 3AM authorized the Company
to raise up to an additional $10 million of common stock under the
ATM in consideration for the Company's agreement to pay 20% of the
gross proceeds of any sale by the Company of any debt or equity
securities of the Company, including but not limited to sales of
common stock under the ATM, (a) First, to those certain employees
and other service providers, including Nadir Ali, Wendy Loundermon
(the Company's former chief financial officer and director), and
Soumya Das (chief executive officer of the Company's Real Time
Location System Division and a current director of the Company),
who are entitled to bonuses payable under the Transaction Bonus
Plan, adopted on July 24, 2023, as amended from time to time; and
(b) Second, to the extent the Bonus Plan Payments have been fully
satisfied, any remaining portion of the Payment Amount shall be
applied to the redemption of outstanding shares of the Series 9
Preferred Stock. Payments will be due on (i) with respect to ATM
sales, every Monday for the prior week's ATM sales, and (ii) with
respect to any other Financing, five business days following the
closing of such Financing.
About XTI Aerospace
XTI Aerospace, Inc. -- https://xtiaerospace.com -- is the parent
company of XTI Aircraft Company headquartered near Denver,
Colorado. XTI Aerospace is developing the TriFan 600, a vertical
lift crossover airplane (VLCA) that combines the vertical takeoff
and landing (VTOL) capabilities of a helicopter with the speed and
range of a fixed-wing business aircraft. The TriFan 600 is
designed to reach speeds of 345 mph and a range of 700 miles.
Additionally, the Inpixon (inpixon.com) business unit of XTI
Aerospace is a provider of real-time location systems (RTLS)
technology with customers around the world who use the Company's
location intelligence solutions in factories and other industrial
facilities to help optimize operations, increase productivity, and
enhance safety.
New York-based Marcum LLP, the Company's auditor since 2012, issued
a "going concern" qualification in its report dated April 16, 2024,
citing that the Company has a significant working capital
deficiency, has incurred significant losses, and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
The Company incurred net losses from continuing operations of
approximately $34.4 million and $19.7 million for the fiscal years
ended Dec. 31, 2023 and 2022, respectively.
As of Sept. 30, 2024, the Company has a working capital deficit of
approximately $11.9 million, and cash of approximately $0.5
million. For the nine months ended Sept. 30, 2024, the Company had
a net loss of approximately $21.7 million. During the nine months
ended Sept. 30, 2024, the Company used approximately $14.3 million
of cash for operating activities.
"If we are unable to obtain adequate financing or financing on
terms satisfactory to us, when we require it, our ability to
continue to pursue our business objectives and to respond to
business opportunities, challenges, or unforeseen circumstances
could be significantly limited, which could have a material adverse
effect on our business, results of operations, and financial
condition," the Company stated in its Quarterly Report for the
period ended Sept. 30, 2024.
In several instances in the past, including as recently as on July
9, 2024, the Company received written notification from Nasdaq
informing it that because the closing bid price of its common stock
was below $1.00 for 30 consecutive trading days, its shares no
longer complied with the minimum closing bid price requirement for
continued listing on Nasdaq under the Nasdaq Listing Rules. Each
time, the Company was given a period of 180 days from the date of
the notification to regain compliance with Nasdaq's listing
requirements by having the closing bid price of its common stock
listed on Nasdaq be at least $1.00 for at least 10 consecutive
trading days.
XTI AEROSPACE: To Issue 59,382 Shares to Exchange $250K Debt
------------------------------------------------------------
XTI Aerospace, Inc. submitted a Form 8-K to the Securities and
Exchange Commission announcing that on Feb. 13, 2025, the company
and Streeterville Capital, LLC, the holder of a secured promissory
note issued on May 1, 2024, reached an agreement to revise the
terms of the Note. Under the Agreement, the Company and
Streeterville agreed to:
(i) partition a new secured promissory note in the same format
as the Original Note, with a principal amount of $250,000.00, and
reduce the outstanding balance of the Original Note by the
specified amount; and
(ii) exchange the Partitioned Note for 59,382 shares of the
Company's common stock, with an effective price per share of $4.21,
which meets the Minimum Price requirement under Nasdaq Listing Rule
5635(d).
The offer and sale of the Exchange Shares was not registered under
the Securities Act of 1933, as amended, in reliance on an exemption
from registration under Section 3(a)(9) of the Securities Act, in
that (a) the Exchange Shares are being issued in exchange for the
Partitioned Note which is another outstanding security of the
Company; (b) there is no additional consideration of value being
delivered by the Note Holder in connection with the Exchange; and
(c) there are no commissions or other remuneration being paid by
the Company in connection with the Exchange.
As of Feb. 13, 2025, the Company has 3,535,294 shares of common
stock outstanding, which includes the Exchange Shares that will be
issued in the Exchange.
About XTI Aerospace
XTI Aerospace, Inc. -- https://xtiaerospace.com -- is the parent
company of XTI Aircraft Company headquartered near Denver,
Colorado. XTI Aerospace is developing the TriFan 600, a vertical
lift crossover airplane (VLCA) that combines the vertical takeoff
and landing (VTOL) capabilities of a helicopter with the speed and
range of a fixed-wing business aircraft. The TriFan 600 is
designed to reach speeds of 345 mph and a range of 700 miles.
Additionally, the Inpixon (inpixon.com) business unit of XTI
Aerospace is a provider of real-time location systems (RTLS)
technology with customers around the world who use the Company's
location intelligence solutions in factories and other industrial
facilities to help optimize operations, increase productivity, and
enhance safety.
New York-based Marcum LLP, the Company's auditor since 2012, issued
a "going concern" qualification in its report dated April 16, 2024,
citing that the Company has a significant working capital
deficiency, has incurred significant losses, and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
The Company incurred net losses from continuing operations of
approximately $34.4 million and $19.7 million for the fiscal years
ended Dec. 31, 2023 and 2022, respectively.
As of Sept. 30, 2024, the Company has a working capital deficit of
approximately $11.9 million, and cash of approximately $0.5
million. For the nine months ended Sept. 30, 2024, the Company had
a net loss of approximately $21.7 million. During the nine months
ended Sept. 30, 2024, the Company used approximately $14.3 million
of cash for operating activities.
"If we are unable to obtain adequate financing or financing on
terms satisfactory to us, when we require it, our ability to
continue to pursue our business objectives and to respond to
business opportunities, challenges, or unforeseen circumstances
could be significantly limited, which could have a material adverse
effect on our business, results of operations, and financial
condition," the Company stated in its Quarterly Report for the
period ended
Sept. 30, 2024.
In several instances in the past, including as recently as on July
9, 2024, the Company received written notification from Nasdaq
informing it that because the closing bid price of its common stock
was below $1.00 for 30 consecutive trading days, its shares no
longer complied with the minimum closing bid price requirement for
continued listing on Nasdaq under the Nasdaq Listing Rules. Each
time, the Company was given a period of 180 days from the date of
the notification to regain compliance with Nasdaq's listing
requirements by having the closing bid price of its common stock
listed on Nasdaq be at least $1.00 for at least 10 consecutive
trading days.
YOGI INTERNATIONAL: Seeks to Hire Christopher Quinn as CRO
----------------------------------------------------------
Yogi International, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to employ Christopher
Quinn, a professional practicing in Cypress, Tex., as chief
restructuring officer.
CRO will provide these services:
(a) execute and/or file or cause to be executed and/or filed
all necessary documents in connection with the bankruptcy case;
(b) prepare and execute a plan of reorganization for the
Debtor containing terms and conditions that Quinn determines to be
in the best interests of it and its bankruptcy estate and to submit
such plan and any and all subsequent amendments, modifications,
changes or additions to its creditors and the court for approval
pursuant to the requirements of the Bankruptcy Code;
(c) take or cause to be taken all such other and further
actions and to execute, deliver, and perform for and on behalf of
the Debtor any documents, agreements, settlements, guaranties,
instruments, or undertakings as Quinn may deem necessary or
appropriate to confirm a plan of reorganization and conduct the
Bankruptcy Case in a manner that maximizes the value of the Debtor;
and
(d) Quinn's authority will be subject only to the approval of
the court to the extent required by the Bankruptcy Code and none of
the actions above shall require the approval of the Debtor's
members except provided in this Application and Order.
Mr. Quinn will be compensated at his hourly rate of $350 plus
expenses.
Mr. Quinn disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Christopher Quinn
26414 Cottage Cypress Lane
Cypress, TX 77433
Email: Chris.Quinn2021@outlook.com
About Yogi International
Yogi International, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-30233) on
January 12, 2025. In the petition signed by Kirpal Singh, member,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Alfredo R. Perez oversees the case.
The Debtor tapped Tran Singh, LLP as counsel and Christopher Quinn
as chief restructuring officer.
YOGI INTERNATIONAL: Seeks to Tap Tran Singh as Bankruptcy Counsel
-----------------------------------------------------------------
Yogi International, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to employ Tran Singh LLP
as counsel.
The firm will render these services:
(a) analyze the financial situation, and render advice and
assistance to the Debtor;
(b) advise the Debtor with respect to its rights, duties, and
powers in this case;
(c) represent the Debtor at all hearings and other
proceedings;
(d) prepare and file all appropriate legal papers as necessary
to further the Debtor's interests and objectives;
(e) represent the Debtor at any meeting of creditors and such
other services as may be required during the course of the
bankruptcy proceedings;
(f) represent the Debtor in all proceedings before the court
and in any other judicial or administrative proceeding where its
rights may be litigated or otherwise affected;
(g) prepare and file a Disclosure Statement, if required, and
Subchapter V Plan of Reorganization;
(h) assist the Debtor in analyzing the claims of the creditors
and in negotiating with such creditors; and
(i) assist the Debtor in any matters relating to or arising
out of the captioned case.
The firm will be paid at these hourly rates:
Susan Tran Adams, Attorney $550
Brendon Singh, Attorney $550
Mayur Patel, Attorney $425
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a pre-petition retainer of $50,000 from the
Debtor.
Mr. Singh disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Brendon Singh, Esq.
Tran Singh LLP
2502 La Branch Street
Houston, TX 77004
Telephone: (832) 975-7300
Facsimile: (832) 975-7301
Email: bsingh@ts-llp.com
About Yogi International
Yogi International, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-30233) on
January 12, 2025. In the petition signed by Kirpal Singh, member,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Alfredo R. Perez oversees the case.
The Debtor tapped Tran Singh, LLP as counsel and Christopher Quinn
as chief restructuring officer.
[] Private Equity Cos. Tied to 21% Healthcare Bankruptcies in 2024
------------------------------------------------------------------
Paul J. Gough of Pittsburgh Business Times reports that a new
report from the Private Equity Stakeholder Project, citing S&P
Global Intelligence data, found that private equity was involved in
21% of U.S. health care bankruptcies in 2023-2024. Seven of the
eight largest health system bankruptcies in 2024 had ties to
private equity, including Steward Health Care, which filed for
Chapter 11 in May and plans to sell its hospitals.
Among them was Sharon Regional Medical Center in Mercer County,
which closed on January 6, 2025 after months of financial
struggles. Now set to reopen under new ownership by Tenor Health
Care, the facility received temporary financial support from
Pennsylvania, with the state providing $1.5 million per month
during the transition.
Critics argue that private equity's focus on cost-cutting and
short-term profits has led to hospital closures and reduced patient
access. "Bankruptcy-driven closures leave patients without reliable
care, disrupting treatment and putting lives at risk," said
Valentina Dabos, a senior campaign coordinator at the Private
Equity Stakeholder Project.
Pennsylvania Gov. Josh Shapiro is pushing for stronger oversight,
calling for the Attorney General to have the authority to review
health care mergers, acquisitions, and bankruptcies. He criticized
private equity's growing influence, stating, "Private equity firms
buy health care institutions, separate land from operations, drive
up costs, and then exit—legally profiting while leaving
communities without essential care."
Shapiro is urging state and federal reforms to ensure financial
stability and protect access to health care.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
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however, be complete or accurate. The Monday Bond Pricing table
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are not intended to reflect actual trades. Prices for actual
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then-ending.
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*********
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