/raid1/www/Hosts/bankrupt/TCR_Public/250220.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, February 20, 2025, Vol. 29, No. 50
Headlines
145 NAVARRO: Files Chapter 11 Bankruptcy in Texas
3220 S FISKE BLVD: Files Subchapter V Bankruptcy in Florida
AES CORP: Egan-Jones Retains BB Senior Unsecured Ratings
AGEAGLE AERIAL: Inks Funding Agreement With Alpha Capital
AHAB FINANCE 2: S&P Affirms 'B' Rating on Secured Credit Facility
ALL CRAFT: U.S. Trustee Unable to Appoint Committee
ALPINEBAY INC: Gets Final OK to Use Cash Collateral
ALTICE USA: CEO, CFO Receive Salary and Incentive Increases
ANGELA'S BRIDALS: Francis Brennan Named Subchapter V Trustee
APT HOLDINGS III: Moody's Affirms 'Caa3' CFR, Outlook Stable
ASCEND PERFORMANCE: S&P Cuts ICR to 'CCC+' On Upcoming Maturities
ASPIRA WOMEN'S: President Sandra Milligan Resigns Effective Feb. 21
AVINGER INC: Board OKs Asset Transfer; Assignment Deal Inked
AVINGER INC: Terminates CEO, 2 Other Execs; 5 Directors Resign
B&G FOODS: Egan-Jones Retains B Senior Unsecured Ratings
BALANCE LIFE: Kimberly Ross Clayson Named Subchapter V Trustee
BALLISTIC FABRICATION: Unsecureds to Split $269K in Plan
BELLEVUE HOSPITAL: Hires Allen Stovall Neuman as Counsel
BELLEVUE HOSPITAL: Hires Juniper Advisory as Investment Banker
BELLEVUE HOSPITAL: Hires Kroll as Claims and Noticing Agent
BELLEVUE HOSPITAL: Hires Mr. Lentz of HL4 Consulting as CFO
BEYOND AIR: Net Loss Lowers to $13.3 Million in Fiscal Q3
BLACKBERRY LIMITED: Director Michael Daniels Steps Down
BUE HART: Case Summary & Six Unsecured Creditors
BURGERFI INT'L: Bankruptcy Court OKs Disclosure Statement
CAPSTONE CONSULTING: Case Summary & 13 Unsecured Creditors
CARMAX INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
CARNIVAL CORP: Moody's Ups CFR to 'Ba3', Outlook Positive
CARNIVAL CORP: S&P Rates New $1BB Senior Unsecured Notes 'BB'
CHATEAU CREOLE: Trustee Hires Fishman Haygood as Counsel
CINEMARK HOLDINGS: Wellington Management, 3 Others Hold 6.8% Stake
CKM SHINING: UST Appoints Arturo Cisneros as Chapter 11 Trustee
COGENT COMMUNICATIONS: Egan-Jones Retains B- Sr. Unsecured Ratings
CONNORSVILLE COMMONS: Gets Final OK to Use Cash Collateral
CYTOPHIL INC: Iana Vladimirova Named Subchapter V Trustee
DAVITA INC: Egan-Jones Retains BB Senior Unsecured Ratings
DIAMOND COMIC: Seeks to Hires Omni as Administrative Agent
DIAMOND COMIC: Seeks to Hires Saul Ewing LLP as Counsel
DIOCESE OF ROCKVILLE: U.S. Trustee Slams Jones Day Fees in Ch. 11
DISTRIBUIDORA MI: Hires Frank J. Giarratano CPA as Accountant
DMD FLORIDA: Seeks to Sell Restaurants at Auction
DON ENTERPRISES: Seeks Subchapter V Bankruptcy in Pennsylvania
DOVETAIL DEVELOPMENT: Amends Sherwood & Civista Secured Claims
DRW HOLDINGS: S&P Affirms 'BB-' Long-Term ICR, Outlook Stable
DVKOCR TIGARD: Sec. 341(a) Meeting of Creditors on March 18
EAGLE HIGHLAND: Seeks Chapter 11 Bankruptcy in Indiana
ELETSON HOLDINGS: Reed Smith Removed as Counsel from $102MM Suit
ENGINEERING RECRUITING: Gets Extension to Access Cash Collateral
EQUINIX INC: Egan-Jones Retains BB- Senior Unsecured Ratings
ERION REAL ESTATE: Holly Smith Miller Named Subchapter V Trustee
ESSEX TECHNOLOGY: Hires Burr & Forman LLP as Counsel
ESSEX TECHNOLOGY: Hires McDonald Hopkins LLC as Counsel
FIBERCO GENERAL: Case Summary & 20 Largest Unsecured Creditors
FINEST COACHBUILDING: Gets OK to Use $237,500 in DIP Loan Funds
FIT FOR THE RED: Case Summary & 20 Largest Unsecured Creditors
FIT FOR THE RUNWAY: Case Summary & 20 Largest Unsecured Creditors
FLOOR RESOURCES: Court Affirms Ruling in Tax Dispute
FLUENT INC: JB Capital Partners, Alan Weber Hold 7.3% Stake
G7 VENICE: Seeks Chapter 11 Bankruptcy in California
GABHALTAIS TEAGHLAIGH: Hires Joseph G. Butler as Counsel
GIRARD HOUSE: Plan Exclusivity Period Extended to February 28
GOTSTUFF INC: Frances Smith Named Subchapter V Trustee
GREENLEAF 2 CPE: Case Summary & 20 Largest Unsecured Creditors
GREENLEAF 4 SOCO: Case Summary & 15 Unsecured Creditors
GRISWOLD ENTERPRISES: Tom Howley Named Subchapter V Trustee
H6 COMPANY: Appointment of Unsecured Creditors' Committee Sought
HANDS ON PREMIUM: Case Summary & 20 Largest Unsecured Creditors
HANESBRANDS INC: Egan-Jones Retains B Senior Unsecured Ratings
HAYDALE CERAMIC: Tamara Miles Ogier Named Subchapter V Trustee
HEART ESTATES: Cameron McCord Named Subchapter V Trustee
HEART OF GOLD: Hires Cunningham Chernicoff as Counsel
HOOPERS DISTRIBUTING: J.M. Cook Named Subchapter V Trustee
HTP INC: Court Tosses First Merit Group, et al. Lawsuit
HYPERSCALE DATA: Increases Series G Voting Floor Price to $6.244
ILLUMINA INC: Egan-Jones Retains BB Senior Unsecured Ratings
INTEGRITY CELEBRATIONS: Hires Swanson Sweet LLP as Counsel
INTERNATIONAL FLAVORS: Egan-Jones Retains BB+ Sr. Unsec. Ratings
INVATECH PHARMA: Sec. 341(a) Meeting of Creditors on March 20
J. HOWELL: Seeks to Hire Bruner Wright PA as Counsel
JER INVESTORS: Plan Exclusivity Period Extended to March 28
JETBLUE AIRWAYS: Egan-Jones Retains CCC+ Senior Unsecured Ratings
JJ BADA: Scott Rever of Genova Burns Named Subchapter V Trustee
JOURNEY HEALTH: Unsecureds Will Get 63% of Claims over 60 Months
KINGDOM EXPRESS: Seeks to Sell El Paso Property for $150,000
KOSSOFF PLLC: Trustee Cleared to Seek Clawbacks After Court Victory
KREF HOLDINGS: S&P Assigns 'B+' Rating on New $550MM Term Loan
LAREDO HOUSING: S&P Places 'CC' LT Bonds Rating on Watch Negative
LAS VEGAS SANDS: Egan-Jones Retains BB- Senior Unsecured Ratings
LAVA CANTINA: Case Summary & 19 Unsecured Creditors
LCS UNLIMITED: Seeks to Extend Plan Exclusivity to April 13
LEAP ACADEMY: S&P Raises 2014A-B Revenue Debt Rating to 'BB'
LEARNINGSEL LLC: Seeks to Extend Plan Exclusivity to April 30
LIKELIHOOD LLC: Gets OK to Use Cash Collateral Until March 4
LILLY INDUSTRIES: Hires Rocky Mountain as Financial Advisor
LISBON CONCRETE: Court OKs Vehicle, Tools Sale
LOVING KINDNESS: Seeks to Extend Plan Exclusivity to June 23
LUTHERAN HOME: Seeks to Hire Stretto as Claims and Noticing Agent
MARATHON DEVELOPMENT: U.S. Trustee Unable to Appoint Committee
MAT TRANSPORT: Seeks to Extend Plan Exclusivity to May 18
MENORAH CAMPUS: Intends to Sell School to Pay $33MM Claims
MERIDIAN WEIGHT: Taps Law Offices of Douglas M. Engell as Counsel
MJD ENGINEERING: Walter Dahl of Dahl Law Named Subchapter V Trustee
MMK FAMILY: Stephen Gray Named Subchapter V Trustee
MMK SUBS: James LaMontagne Named Subchapter V Trustee
MONTICELLO CONSTRUCTION: Seeks 60-Day Extension of Plan Filing
NEWFOLD DIGITAL: Moody's Cuts CFR to Caa1 & Alters Outlook to Neg.
NOMADE VILLA: Tarek Kiem of Kiem Law Named Subchapter V Trustee
NOV INC: Egan-Jones Hikes Senior Unsecured Ratings to BB+
NP ELEVATE: Voluntary Chapter 11 Case Summary
NTI-CA INC: Court Narrows Claims in Forbush COBRA Lawsuit
NUTRACAP HOLDINGS: U.S. Trustee Appoints Creditors' Committee
NW CUSTOM: Hires Neeleman Law Group P.C. as Counsel
OMEGA THERAPEUTICS: Gets $11.5MM Stalking-Horse Bid
ONCOCYTE CORP: Broadwood, 2 Others Hold 40.2% Equity Stake
ONCOCYTE CORP: Ends $7.5MM ATM Offering With Needham, Raises $1.8MM
PACER PRINT: Case Summary & 20 Largest Unsecured Creditors
PBF ENERGY: Egan-Jones Retains BB Senior Unsecured Ratings
PG&E CORP: Egan-Jones Retains BB- Senior Unsecured Ratings
PINSEEKERS DEFOREST: Case Summary & 20 Top Unsecured Creditors
POTTSVILLE OPERATIONS: Seeks to Extend Plan Exclusivity to April 13
PRIMESOURCE INC: Christy Brandon Named Subchapter V Trustee
PROS HOLINGS: Egan-Jones Retains CCC- Senior Unsecured Ratings
PROSPECT MEDICAL: Gets Approval for Amended DIP Financing
PURE PRAIRIE POULTRY: Court Dismisses Involuntary Chapter 7 Case
RATH RACING: Unsecureds Will Get 3.55% of Claims in Plan
RECOMBINETICS INC: Seeks to Extend Plan Filing Deadline to March 12
RED RIVER: J&J Cancer Suits Must End, Says 20,000 Claimants' Lawyer
RED RIVER: J&J Starts 3rd Talc Bankruptcy Plan Confirmation Trial
REENVISION AESTHETICS: Hires FoxLaw Corporation as Legal Counsel
REGIS COLLEGE, MA: S&P Assigns 'BB' Issuer Credit Rating
REKOR SYSTEMS: Enters $25MM ATM Offering Agreement With Northland
RENALYTIX PLC: UBS Group AG Holds 5.1% Equity Stake
RENOVARO INC: GEDi Cube Amends CEO's Contract
REYNOSO VINEYARDS: Trustee Hires Bachecki Crom as Accountant
REYNOSO VINEYARDS: Trustee Hires Cozen O'Connor as Counsel
RICHMOND TELEMATICS: Case Summary & Six Unsecured Creditors
ROCK MEDICAL: UST Appoints Brent King as Chapter 11 Trustee
ROCK N CONCEPTS: Case Summary & Five Unsecured Creditors
ROTI RESTAURANTS: Court OKs Catering Van Sale to Broadpeak
SEAQUEST HOLDINGS: Court OKs Appointment of Chapter 11 Trustee
SEBASTIAN HABIB: To Sell Atlanta Property to Township Properties
SEMTECH CORP: Egan-Jones Cuts Senior Unsecured Ratings to BB
SENA & SENA: Jodi Daniel Dubose Named Subchapter V Trustee
SK INDUSTRIES: Case Summary & Seven Unsecured Creditors
SM MILLER: Seeks Chapter 11 Bankruptcy in Texas
SOAP BOX: Mark Sharf Named Subchapter V Trustee
SOLIGENIX INC: Ends Pontifax Loan Agreement With $10M Repayment
SSR HOSPITALITY: Seeks Chapter 11 Bankruptcy in Illinois
STEWARD HEALTH: Massachusetts Owes $22MM Withheld Patient Claims
STOEVER GLASS: Files Chapter 7 Bankruptcy in New York
T-REX SPORTS: Unsecured Creditors to Get 8 Cents on Dollar in Plan
TBOTG DEVELOPMENT: Seeks to Extend Plan Exclusivity to March 14
TEAM MUV FITNESS: Seeks Chapter 11 Bankruptcy in Oregon
TEXAS OILWELL: Gets Interim OK to Use Cash Collateral
TEXAS WHEEL: Frances Smith Named Subchapter V Trustee
TGI FRIDAY'S: G5ive Eyes Buyout After Bankruptcy Filing
TGI FRIDAY'S: G5ive Restaurant Plans to Buy Company
THERATECHNOLOGIES INC: Orin Hirschman Holds 6.1% Stake
THOMAS ROOFING: Hires TaxZone Inc. as Accountant
TIGER ACQUISITION: Moody's Raises CFR to 'B2', Outlook Stable
TIME OUT: Hires Great Neck Realty Company as Marketing Broker
TRINITY INDUSTRIES: Egan-Jones Retains B+ Senior Unsecured Ratings
TRINITY PLACE: MFP Investors, 2 Others Report 12.6% Equity Stake
TV TRANSPORT: Brian Shapiro Named Subchapter V Trustee
VETERANS EMPOWERING: Richard Cook Named Subchapter V Trustee
VIASAT INC: Incurs $146.9 Million Net Loss in Fiscal Q3
VIEWBIX INC: MMCAP International Holds 8.76% Equity Stake
VOYAGER DIGITAL: Protective Order Issued in Metropolitan Bank Suit
WALGREENS BOOTS: Moody's Alters Outlook on 'Ba3' CFRR to Negative
WELLPATH HOLDINGS: Wants to Exit Chapter 11 Bankruptcy in March
WENDY'S CO: Egan-Jones Retains B Senior Unsecured Ratings
WIN WASTE: S&P Places 'CCC+' ICR on CreditWatch Developing
YUM! BRANDS: Egan-Jones Retains BB- Senior Unsecured Ratings
YUM! BRANDS: Moody's Affirms 'Ba2' CFR, Outlook Remains Stable
ZIPS CAR WASH: Hires Kroll as Claims and Noticing Agent
[] Vartabedian Hester & Haynes Expands With 7 Bankruptcy Attorneys
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
145 NAVARRO: Files Chapter 11 Bankruptcy in Texas
-------------------------------------------------
On February 18, 2025, 145 Navarro LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Southern District of Texas.
According to court filing, the Debtor reports between $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will not be available to unsecured creditors.
About 145 Navarro LLC
145 Navarro LLC is a limited liability company.
145 Navarro LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90011) on February
18, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Christopher M. Lopez handles the
case.
The Debtor is represented by:
Susan Tran Adams, Esq.
TRAN SINGH, LLP
2502 La Branch St.
Houston TX 77004
Phone: (832) 975-7300
E-mail: stran@ts-llp.com
3220 S FISKE BLVD: Files Subchapter V Bankruptcy in Florida
-----------------------------------------------------------
On February 14, 2025, 3220 S Fiske Blvd LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Middle District of
Florida.
According to court filing, the Debtor reports $3,179,132 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About 3220 S Fiske Blvd LLC
3220 S Fiske Blvd LLC, d/b/a Rockledge Extended Stay, is the owner
of the property at 3220 S Fiske Blvd, Rockledge, FL, which is
currently valued at approximately $1.71 million.
3220 S Fiske Blvd LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.:
25-00858) on February 14, 2025. In its petition, the Debtor reports
total assets of $1,723,080 and total liabilities of $3,179,132.
Honorable Bankruptcy Judge Lori V. Vaughan handles the case.
The Debtor is represented by:
Robert Zipperer, Esq.
ATTORNEY AT LAW
224 S. Beach St., Suite 202
Daytona Beach, FL 32114
Tel: (386) 226-1151
Fax: (386) 238-3956
E-mail: robertzipperer@bellsouth.net
AES CORP: Egan-Jones Retains BB Senior Unsecured Ratings
--------------------------------------------------------
Egan-Jones Ratings Company on February 4, 2025, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by AES Corporation. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Arlington County, Virginia, AES Corporation is an
electric power distribution company.
AGEAGLE AERIAL: Inks Funding Agreement With Alpha Capital
---------------------------------------------------------
AgEagle Aerial Systems Inc. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that the Company
entered into a Funding Agreement with Alpha Capital Anstalt.
Pursuant to the Funding Agreement, among other things, Alpha agreed
to:
(i) exercise its Additional Investment Right for $1,000,000 of
Series F Convertible Preferred Stock and
(ii) Alpha agreed to provide quarterly financing to the Company
for the next 12 months, with such amounts and timing of funding to
be agreed to by the parties.
In consideration for Alpha's commitment to additional funding, the
Company has agreed to:
(i) extend the period in which Alpha can exercise its
Additional Investment Right by extending the termination date of
December 31, 2025 to June 1, 2026 and
(ii) grant Alpha certain registration rights related to the
Series F Convertible Preferred it currently holds and will receive
upon further exercises of its Additional Investment Right. The
Company has agreed to use its best efforts to register 5,500,000
shares of common stock underlying the Series F Convertible
Preferred stock.
As previously reported on a Current Report on Form 8-K filed on
June 30, 2022, the Company entered into a Securities Purchase
Agreement, dated June 26, 2022, as subsequently amended by the
Series F SPA Amendment Agreement dated February 8, 2024, and the
Series F SPA Amendment Agreement dated July 25, 2024, with Alpha,
pursuant to which Alpha purchased 10,000 shares of the Company's
Series F 5% Convertible Preferred Stock and a warrant to purchase
5,212,510 shares of the Company's Common Stock. Pursuant to the
terms of the SPA, Alpha had the right to purchase up to an
aggregate of $25,000,000 stated value of the Series F Convertible
Preferred and accompanying warrants, at a purchase price equal to
the volume-weighted average prices of the Company's common stock
for three trading days prior to the date Alpha gives notice to the
Company that it will exercise its Additional Investment Right.
On February 7, 2025, Alpha exercised its Additional Investment
Right for the aggregate purchase of 1,000 shares of Series F
Convertible Preferred convertible into 450,390 shares of Common
Stock, in the aggregate, at a conversion price of $2.2203 and
warrants to purchase up to 450,390 shares of Common Stock at an
exercise price of $2.2203 per share for an aggregate purchase price
of $1,000,000. The Warrants will be immediately exercisable upon
issuance and have a three-year term.
The Series F Convertible Preferred and Warrants are being issued
and sold in reliance upon the exemption from registration provided
by Section 4(a)(2) of the Securities Act of 1933, as amended, and
Rule 506 promulgated thereunder.
About AgEagle
AgEagle Aerial Systems Inc. is headquartered in Wichita, Kansas,
and operates through its wholly-owned subsidiaries, focusing on
designing and delivering top-tier drones, sensors, and software to
address critical customer needs. Founded in 2010, AgEagle initially
pioneered proprietary, professional-grade, fixed-wing drones and
aerial imagery-based data collection and analytics solutions for
the agriculture sector. Today, the company is recognized as a
globally respected market leader, offering customer-centric,
advanced, autonomous unmanned aerial systems (UAS) that generate
revenue at the intersection of flight hardware, sensors, and
software across industries, including agriculture,
military/defense, public safety, surveying/mapping, and
utilities/engineering. AgEagle has achieved numerous regulatory
milestones, including government approvals for its commercial and
tactical drones to fly Beyond Visual Line of Sight (BVLOS) and/or
Operations Over People (OOP) in the United States, Canada, Brazil,
and the European Union. It has also received Blue UAS certification
from the Defense Innovation Unit of the U.S. Department of Defense.
More information can be found at www.ageagle.com.
Orlando, Florida-based WithumSmith+Brown, PC, the company's auditor
since 2020, issued a "going concern" qualification in its report
dated April 1, 2024, citing recurring losses from operations, cash
usage exceeding its current cash position, and an accumulated
deficit as factors raising substantial doubt about the company's
ability to continue as a going concern.
AHAB FINANCE 2: S&P Affirms 'B' Rating on Secured Credit Facility
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' issue-level ratings on Ahab
Finance 2 Ltd.'s (dba AmaWaterways) senior secured credit facility.
The company plans to issue a $370 million fungible add-on to its
existing $524 million first-lien term loan B due 2031. The '3'
recovery rating indicates its expectation of meaningful (50%-70%;
rounded estimate: 60%) recovery for lenders in a payment default.
AmaWaterways' subsidiary LC Ahab US Bidco LLC is the borrower under
the senior secured credit facility.
AmaWaterways plans to use the proceeds from the term loan add-on to
fund a $370 million distribution to its private equity sponsor, L
Catterton, add cash to the balance sheet, and fund transaction fees
and expenses. S&P said, "Despite the incremental debt, the
transaction does not affect our 'B' issuer credit rating or stable
outlook on the company because our rating already incorporated the
risk that the financial sponsor could use its leverage capacity to
fund distributions, which would likely weaken its credit measures.
Pro forma for the debt-funded dividend, we estimate AmaWaterways'
S&P Global Ratings adjusted leverage as of Dec. 31, 2024 is 5.65x,
comfortably below our 6.5x downgrade threshold."
S&P said, "AmaWaterways' increasing fleet size and cash flow base
warrant an upward revision in our estimated emergence enterprise
value in our hypothetical default scenario. In addition, we expect
the company would default at a higher level of EBITDA given higher
fixed charges from the incremental debt issuance and our assumption
for higher maintenance capital expenditures in our default scenario
because of a larger fleet and the need to periodically refresh its
ships to maintain its quality and market position. Accordingly, we
raised our assumed emergence net enterprise valuation to $579
million from $430 million. Notwithstanding our higher valuation,
the proposed larger term loan modestly impairs recovery prospects
for senior secured lenders, but not enough to change our '3'
recovery rating. However, our rounded estimate of recovery for
senior secured lenders is now 60% instead of 65%.
"AmaWaterways' 2024 performance exceeded our prior base-case
forecast and its booked position for 2025 is strong, with a
majority of its capacity sold at higher pricing. We continue to
forecast healthy revenue and EBITDA growth based on the company's
advance bookings and recovery in occupancy levels. We assume 20%
revenue growth in 2025, supported by 23% capacity growth from the
addition of three new ships and the extension of the cruise season
for certain routes, further recovery in occupancy, and modest yield
growth. However, we assume S&P Global Ratings-adjusted EBITDA
margin compresses about 300 basis points, due to higher marketing
expenses as new ships enter the fleet and inflationary cost
pressures. As a result, we forecast EBITDA grows about 9% in 2025.
Although we increased our 2025 EBITDA forecast by about 10%, we
expect debt leverage to be about 4.9xby the end of year compared to
3.4x in our prior forecast, because debt has increased by about
60%.
Recovery Analysis
Key Analytical Factors
S&P said, "We affirmed our 'B' issue-level ratings on the company's
$894 million first-lien term loan B due 2031 pro forma for the
proposed $370 million add-on and its $75 million revolving credit
facility due 2031. The recovery rating remains '3' and reflects our
expectation of meaningful (50%-70%; rounded estimate: 60%) recovery
for lenders in a payment default."
Simulated default assumptions
-- S&P's simulated default scenario contemplates a default in 2028
due to a significant loss of cash flow stemming from a prolonged
economic downturn, escalating geopolitical conflicts, or increased
competitive pressures that cause a significant reduction in demand
for river cruising.
-- S&P applies a 6x multiple to value the company post-emergence,
which is at the low end of the range it uses for leisure companies
given AmaWaterways' small scale and limited asset diversity.
-- S&P assumes the $75 million revolver is 85% drawn at time of
default.
Simplified waterfall
-- Emergence EBITDA: $102 million
-- EBITDA multiple: 6x
-- Gross enterprise value: $609 million
-- Net enterprise value (after 5% administrative expenses): $579
million
-- Valuation split (obligor/nonobligor): 100%/0%
-- Value available for first-lien claims: $579 million
-- Estimated first-lien claims: $938 million
--Recovery expectations: 50%-70% (rounded estimate: 60%)
Note: All debt amounts include six months of prepetition interest.
ALL CRAFT: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of All Craft Marine Holdings, LLC, according to court
dockets.
About All Craft Marine Holdings
All Craft Marine Holdings, LLC, a company in Zephyrhills, Fla.,
filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 25-00129) on
January 10, 2025. In its petition, the Debtor reported between $1
million and $10 million in both assets and liabilities.
Judge Roberta A. Colton oversees the case.
Daniel R. Fogarty, Esq., at Stichter, Riedel Blain & Postler, P.A.
represents the Debtor as legal counsel.
ALPINEBAY INC: Gets Final OK to Use Cash Collateral
---------------------------------------------------
Alpinebay, Inc. received final approval from the U.S. Bankruptcy
Court for the Central District of California, Santa Barbara
Division to use its secured creditors' cash collateral.
The final order authorized the company to use cash collateral to
pay the expenses set forth in its budget, with a 10% variance.
JPMorgan Chase Bank, N.A., First Business Bank and the U.S. Small
Business Administration assert security interests in substantially
all of the company's assets, including accounts receivable,
inventory and proceeds thereof, which constitute the secured
creditors' cash collateral.
As protection for the use of their cash collateral, the secured
creditors were granted replacement liens on post-petition assets of
the company to the same extent and with the same priority and
validity as their pre-bankruptcy liens.
In case the replacement liens are insufficient to protect their
interests, the secured creditors will be granted a superpriority
administrative expense claim.
The secured creditors will also receive monthly payments as
additional protection.
Alpinebay's authority to use cash collateral terminates upon
failure to comply with the final order or the budget; a sale of
substantially all of its assets; the dismissal or conversion of its
Chapter 11 case to one under Chapter 7; or the effective date of a
plan of reorganization confirmed by the court.
First Business Bank is represented by:
Andrew J. Nazar, Esq.
Polsinelli PC
900 West 48th Place, Suite 900
Kansas City, MO 64112
(816) 753-1000
Fax: (816) 753-1536
anazar@polsinelli.com
About Alpinebay Inc.
Alpinebay Inc. is a building materials and manufacturing company
located in California. Its products include EZ-Niches, a
lightweight and durable material, offering exceptional strength and
longevity. These niches not only provide a functional storage space
for shower essentials but also serve as a stylish focal point for
decorative tiles. It also offers Ultra X Guard, a liquid polymer
membrane that provides flawless waterproofing and fracture
protection up to 1/8" without the necessity of additional fabric.
Alpinebay sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-11386) on
December 6, 2024, with up to $50,000 in assets and up to $10
million in liabilities. Anne Xiuying Ho, chief executive officer,
signed the petition.
Judge Ronald A. Clifford, III handles the case.
Christopher J. Langley, Esq., at Shioda Langley & Chang, LLP is the
Debtor's legal counsel.
ALTICE USA: CEO, CFO Receive Salary and Incentive Increases
-----------------------------------------------------------
Altice USA Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that the Compensation Committee
of the Board of Directors approved an increase to the annual
compensation of Dennis Mathew, the Company's Chief Executive
Officer and Chairman of the Board, and Marc Sirota, the Company's
Chief Financial Officer.
Effective January 1, 2025, Mr. Mathew's base salary is $1,550,000,
his target annual cash incentive award will be $3,000,000 and his
annual long-term incentive target will be $10,000,000. Mr. Mathew
does not receive any compensation for his role as a Board member.
Also effective January 1, 2025, Mr. Sirota's base salary is
$650,000, his target annual cash incentive award will be 150% of
base salary and his annual long-term incentive target will be
$3,500,000.
About Altice USA Inc.
Altice USA, Inc. is an American cable television provider.
* * *
As reported by the TCR on May 17, 2024, S&P Global Ratings lowered
all its ratings on Altice USA Inc. one notch, including the Company
credit rating to 'CCC+', and removed them from Credit Watch, where
it placed them with negative implications on May 2, 2024. The
negative outlook reflects that S&P could lower its ratings if the
company opts to pursue a debt restructuring over the next year.
S&P said, "We believe Altice USA's capital structure is
unsustainable. We believe the company is vulnerable to nonpayment
long term and depends on favorable business, financial, and
economic conditions to meet its financial obligations as they come
due in 2027 and beyond. We believe it is more likely than not that
Altice USA will enter into a distressed debt restructuring that we
consider tantamount to default, or it could face bankruptcy long
term."
ANGELA'S BRIDALS: Francis Brennan Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 2 appointed Francis Brennan, Esq., at
Nolan Heller Kauffman, LLP, as Subchapter V trustee for Angela's
Bridals, Inc.
Mr. Brennan will be paid an hourly fee of $480 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Brennan declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Francis Brennan, Esq.
Nolan Heller Kauffman, LLP
80 State Street, 11th Floor
Albany, NY 12207
Phone: 518-432-3159
Email: fbrennan@nhkllp.com
About Angela's Bridals Inc.
Angela's Bridals, Inc. operates a brick-and-mortar bridal shop that
sells dresses and other accessories.
Angela's Bridals filed Chapter 11 petition (Bankr. N.D. N.Y. Case
No. 25-10119) on February 4, 2025, listing between $100,001 and
$500,000 in assets and between $500,001 and $1 million in
liabilities. Janet M. Cooper, president of Angela's Bridals, signed
the petition.
Michael Boyle, Esq., at Boyle Legal LLC, represents the Debtor as
legal counsel.
APT HOLDINGS III: Moody's Affirms 'Caa3' CFR, Outlook Stable
------------------------------------------------------------
Moody's Ratings affirmed API Holdings III Corp.'s ("Spectrum
Control") Caa3 corporate family rating, Caa3-PD probability of
default rating and Caa3 ratings on its senior secured first lien
credit facilities. The outlook was revised to stable from
negative.
The revision of the outlook to stable from negative reflects
stabilizing operating performance and improving liquidity over the
next 12 to 18 months. Liquidity, while still weak, will improve
because Moody's expect the company will generate breakeven free
cash flow in 2025 supported by better operating performance and
deferral of interest expense payments following a distressed
exchange in November 2023.
The affirmation of the Caa3 reflects Spectrum's weak liquidity,
modest scale and weak market position as a component supplier in
the aerospace and defense sector. Moody's adjusted debt/EBITDA is
above 10x as of September 30, 2024 and Moody's expect it will
improve to 8x by the end of 2026.
RATINGS RATIONALE
The Caa3 rating reflects weak credit metrics and modest scale. The
company's financial leverage is high though Moody's expect
deleveraging through improvement in operating performance.
Liquidity remains weak, with breakeven free cash flow expected
through 2025 and no committed external liquidity sources.
The company will continue to be a supplier to US defense prime
contractors and maintain a healthy backlog. Customers cannot easily
switch suppliers because of the demanding specifications of
products as well as high customer demand for Spectrum's products.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if the company continues to improve its
liquidity and grow revenue and EBITDA.
The ratings could be downgraded if the probability of default or
loss given default further increases.
The principal methodology used in these ratings was Aerospace and
Defense published in December 2024.
API Holdings III Corp., headquartered in Fairview, PA, is a holding
company whose main operating subsidiary is API Technologies Corp.
The company does business as Spectrum Control. Spectrum is a tier
three or tier four supplier of radio frequency (RF) and performance
components and subsystems for the US aerospace and defense
industry. API is majority owned by affiliates of AEA Investors.
ASCEND PERFORMANCE: S&P Cuts ICR to 'CCC+' On Upcoming Maturities
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Ascend
Performance Materials Operations LLC to 'CCC+' from 'B'. At the
same time, S&P lowered the issue-level rating on Ascend's senior
secured term loan to 'CCC+' from 'B'. The recovery rating is
unchanged at '3' (50%).
S&P said, "The negative outlook reflects risks associated with the
term loan becoming current this year, the company's tight liquidity
position, and potentially slower-than-anticipated improvement in
credit metrics relative to our base case. These could result in
weaker credit metrics than we anticipate over the next 12 months.
"The downgrade reflects significant underperformance in 2024 and
our expectation for elevated debt leverage in 2025. We expect debt
to EBITDA of around 9x at year-end 2024, stemming from a more
challenging operating environment, weak global demand, and loss of
earnings due to a damaged catalyst caused by a third-party error.
"Furthermore, the company's asset-based lending (ABL) facility and
its term loan B become current in August 2025. Ascend has hired PJT
partners, which specializes in restructuring and special
situations, for assistance in addressing next year's loan maturity.
We believe the upcoming maturity, the engagement of PJT, and
current debt trading levels raises the prospect of Ascend engaging
in a restructuring activity or a debt exchange that we may consider
distressed.
"However, we recognize Ascend is attempting to cut expenses,
including closing its Greenwood facility and using outside help to
reduce costs on raw material procurement. These actions could boost
EBITDA in 2025. Moreover, tariffs from the new U.S. administration
could mitigate the impacts of low-cost Chinese imports that have
been flooding international markets. On a weighted-average basis,
we project S&P Global Ratings-adjusted debt to EBITDA of 8x-9x and
funds from operations (FFO) to debt of 4%-7%."
Earnings and credit metrics will likely improve in 2025 from trough
levels in 2024. Performance should gradually improve through the
year. Cost-cutting measures will benefit earnings and margins in a
more sustainable fashion, and tariffs could mitigate international
competition.
S&P said, "However, we still expect 2025 credit metrics to remain
soft. Furthermore, the company's liquidity will likely be tight
this year as we don't expect Ascend to generate sufficient free
cash flow and the company currently has limited availability on its
ABL facility. We also acknowledge potential challenges in
refinancing its debt in the existing economic environment before
the debt becomes current in August. Additionally, the extent of
Ascend's operating challenges in 2024 created some uncertainty, and
raw material costs will always remain potentially volatile.
"We assess Ascend's business risk as weak. This reflects our view
of its relatively narrow focus on nylon 6,6 and intermediate
chemicals, somewhat offset by modest end-market diversity and an
improved product mix. In addition, Ascend operates in cyclical end
markets, and competitive pressures change based largely on
commodity input prices. The company's propylene-based products,
produced in a cost-advantaged market such as the U.S., face
competition from butadiene-based products from across North
America, such as from competitor Invista Equities LLC.
Environmental risks remain elevated as many of the intermediates
used to produce nylon 6,6 are hazardous or toxic."
Ascend benefits from its position as a large global player, the
location of its production facilities, a shift toward electric
vehicles (EVs), and contract mechanisms. The company is one of only
two large, global nylon 6,6 players with proprietary technology for
adiponitrile production, a key intermediate compound. Additionally,
Ascend's production facilities are near raw material suppliers and
each other, which keeps transport costs low. S&P expects the
increasing shift toward EV's, which use many of the company's
products, and modest demand improvement in housing, construction,
and industrial activity, will translate to greater demand for nylon
6,6 applications.
Ascend's very high proportion of sales via contracts with price
pass-through mechanisms offsets much but not all of the risk from
unpredictable input costs. S&P believes the company remains
somewhat exposed to volatile raw material prices.
S&P said, "The negative outlook reflects potentially weaker
earnings and credit measures beyond what we consider in our base
case, as well as the risk that upcoming maturities in 2026 could
become current this year. Our base case incorporates a slightly
improving operating environment in 2025.
"We anticipate core credit metrics will start improving as the
company begins to recover from macroeconomic demand weakness and
implements cost-cutting measures in 2025. If that happens, we
expect S&P Global Ratings-adjusted EBITDA margins to recover toward
mid-teens percent in the coming years as inflationary pressures
come down. On a weighted average basis, we project S&P Global
Ratings-adjusted debt to EBITDA of 8x-9x and FFO to debt of 4%-7%.
Additionally, our assessment reflects our belief that Ascend will
not pursue large, debt-funded shareholder rewards because of
financial sponsor SK Titan."
S&P could lower the rating within the next few quarters on Ascend
if:
-- Ascend's end-market demand weakens further, and sales of
higher-margin products decline. In this scenario, we would expect
EBITDA margins at or below 10%, FFO to debt of low-single-digit
percent, and weighted average debt to EBITDA of more than 10x, with
no immediate prospect for improvement;
-- Ascend pursues sizable debt-funded shareholder rewards or
acquisitions;
-- Liquidity weakens to less than 0x sources over uses;
-- The company is unable to refinance its upcoming maturities
before they become current; or
-- It engages in an exchange that S&P views as distressed or
enters into a restructuring transaction.
S&P could consider a positive rating action, including an outlook
revision to stable on Ascend over the next few quarters if:
-- It improves its end-market and product diversity and mix,
leading to better profitability and margins;
-- Weighted average debt to EBITDA recovers and falls below 8x on
a sustained basis;
-- It successfully refinances its upcoming maturities; or
-- Sponsor ownership falls below 40%.
ASPIRA WOMEN'S: President Sandra Milligan Resigns Effective Feb. 21
-------------------------------------------------------------------
Aspira Women's Health Inc. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that Dr. Sandra
Milligan, the President of the Company, informed the Board of
Directors of the Company that she was resigning as President of the
Company for personal reasons, effective February 21, 2025. Jamie
Sullivan, Chief of Staff and ARPA-H Program Director as well as
Todd Pappas, Vice President of Research &Development and Laboratory
Operations, will be taking over Dr. Milligan'sfebruar duties.
On February 6, 2025, the Board of Directors of the Company
appointed Ellen Beausang as a director of the Company.
Ms. Beausang has been President-Chief Commercial Officer of
BioReference Health since June 2022. As an industry veteran with
over 25 years of experience, Ms. Beausang has held executive roles
at leading pharmaceutical and diagnostic companies including
Pfizer, Thermo Fisher Diagnostics and Quest Diagnostics where she
managed the go-to-market strategy and product development. Ms.
Beausang holds a dual B.S. degree in Psychology/Sociology from SUNY
Brockport and a M.S. Degree in Clinical Psychology from Seton Hall
University.
There is no arrangement or understanding between Ms. Beausang and
any other person pursuant to which Ms. Beausang was appointed as a
director. There are no family relationships between Ms. Beausang
and any of the Company's directors, executive officers or persons
nominated or chosen by the Company to become a director or
executive officer. Ms. Beausang has not engaged in any
related-person transactions required to be disclosed by Item 404(a)
of Regulation S-K under the Securities Exchange Act of 1934, as
amended.
About Aspira Women's Health
Formerly known as Vermillion, Inc., Aspira Women's Health Inc. --
http://www.aspirawh.com-- is dedicated to the discovery,
development, and commercialization of noninvasive, AI-powered tests
to aid in the diagnosis of gynecologic diseases. OvaWatch and
Ova1Plus are offered to clinicians as OvaSuiteSM. Together, they
provide a comprehensive portfolio of blood tests to aid in the
detection of ovarian cancer for the 1.2+ million American women
diagnosed with an adnexal mass each year. OvaWatch provides a
negative predictive value of 99% and is used to assess ovarian
cancer risk for women where initial clinical assessment indicates
the mass is indeterminate or benign, and thus surgery may be
premature or unnecessary. Ova1Plus is a reflex process of two
FDA-cleared tests, Ova1 and Overa, to assess the risk of ovarian
malignancy in women planned for surgery.
Boston, Massachusetts-based BDO USA, P.C., the Company's auditor
since 2012, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has suffered
recurring losses from operations and expects to continue to incur
substantial losses in the future, which raises substantial doubt
about its ability to continue as a going concern.
Aspira Women's Health reported a net loss of $16.69 million for the
year ended Dec. 31, 2023, compared to a net loss of $29.88 million
for the year ended Dec. 31, 2022. As of June 30, 2024, Aspira
Women's Health had $3.96 million in total assets, $7.67 million in
total liabilities, and $3.7 million in total stockholders' deficit.
AVINGER INC: Board OKs Asset Transfer; Assignment Deal Inked
------------------------------------------------------------
As previously reported, on February 5, 2025, Avinger, Inc. held its
previously announced Special Meeting of Stockholders at which the
Company's stockholders approved an assignment for the benefit of
creditors followed by a voluntary dissolution and liquidation
pursuant to a plan of dissolution if the Board of Directors deems
such action to be in the Company's best interests and those of its
stockholders, which approval shall include authorization for the
Board to abandon such assignment and dissolution.
Effective February 10, 2025, the Board:
(i) determined that the transfer of all or substantially all
of the Company's assets through an assignment for the benefit of
creditors was in the best interests of the Company, and
(ii) authorized the Company to enter into a general assignment
for the benefit of creditors, by and between the Company and
Avinger (assignment for the benefit of creditors), LLC, a
California limited liability company, which provides for the
transfer of all or substantially all of the Company's assets to the
Assignee.
The Company entered into the Assignment Agreement on February 10,
2025.
In connection with the Assignment, Moss Adams LLP terminated its
engagement as the Company's independent registered public
accounting firm.
Moss Adams' reports on the Company's financial statements for the
fiscal years ended December 31, 2023, and December 31, 2022, did
not contain an adverse opinion or disclaimer of opinion, except
that the reports expressed substantial doubt about the Company's
ability to continue as a going concern due to its financial
condition.
During the Company's two most recent fiscal years and the
subsequent interim period preceding Moss Adams' dismissal, there
were no disagreements (as defined in Item 304(a)(1)(iv) of
Regulation S-K) between the Company and Moss Adams on any matter of
accounting principles or practices, financial statement disclosure,
or auditing scope or procedures, which, if not resolved to Moss
Adams' satisfaction, would have caused it to make reference to the
subject matter of the disagreement in its reports.
Additionally, the Company is not required to have, and Moss Adams
did not provide, an opinion on the effectiveness of the Company's
internal control over financial reporting.
About Avinger Inc.
Headquartered in Redwood City, Calif., Avinger, Inc. --
http://www.avinger.com-- is a commercial-stage medical device
company that designs, manufactures, and sells real-time
high-definition image-guided, minimally invasive catheter-based
systems that are used by physicians to treat patients with
peripheral artery disease ("PAD"). Patients with PAD have a
build-up of plaque in the arteries that supply blood to areas away
from the heart, particularly the pelvis and legs. The Company's
mission is to significantly improve the treatment of vascular
disease through the introduction of products based on its
Lumivascular platform, the only intravascular real-time
high-definition image-guided system available in this market.
San Francisco, Calif.-based Moss Adams LLP, the Company's auditor
since 2017, issued a "going concern" qualification in its report
dated March 20, 2024, citing that the Company's recurring losses
from operations and its need for additional capital, raise
substantial doubt about its ability to continue as a going
concern.
As of Sept. 30, 2024, Avinger had $13.60 million in total assets,
$9.73 million in total liabilities, and $3.88 million in total
stockholders' equity.
AVINGER INC: Terminates CEO, 2 Other Execs; 5 Directors Resign
--------------------------------------------------------------
Avinger Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that the Company terminated the
employment of Himanshu Patel, the Company's Chief Technology
Officer, effective as of February 7, 2025, and the employment of
each of Jeffrey M. Soinski, the Company's Chief Executive Officer,
and Nabeel Subainati, Vice President, Finance, effective as of
February 10, 2025.
In connection with such terminations, each of Mr. Patel, Mr.
Soinski and Mr. Subainati entered into a Separation Agreement and
Release with the Company. Each Separation Agreement provides for
the lump sum payment of an amount equal to two weeks of such
executive's base salary.
In addition, Jeffrey M. Soinski, James G. Cullen, James B. McElwee,
Tamara N. Elias and Jonathon Zhong Zhao each provided notice of
his/her decision to resign from the Board and all committees
thereof, effective as of February 10, 2025.
About Avinger Inc.
Headquartered in Redwood City, Calif., Avinger, Inc. --
http://www.avinger.com-- is a commercial-stage medical device
company that designs, manufactures, and sells real-time
high-definition image-guided, minimally invasive catheter-based
systems that are used by physicians to treat patients with
peripheral artery disease ("PAD"). Patients with PAD have a
build-up of plaque in the arteries that supply blood to areas away
from the heart, particularly the pelvis and legs. The Company's
mission is to significantly improve the treatment of vascular
disease through the introduction of products based on its
Lumivascular platform, the only intravascular real-time
high-definition image-guided system available in this market.
San Francisco, Calif.-based Moss Adams LLP, the Company's auditor
since 2017, issued a "going concern" qualification in its report
dated March 20, 2024, citing that the Company's recurring losses
from operations and its need for additional capital, raise
substantial doubt about its ability to continue as a going concern.
B&G FOODS: Egan-Jones Retains B Senior Unsecured Ratings
--------------------------------------------------------
Egan-Jones Ratings Company on January 30, 2025, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by B&G Foods Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Parsippany-Troy Hills, New Jersey, B&G Foods Inc.
manufactures, sells, and distributes shelf-stable foods across
North America.
BALANCE LIFE: Kimberly Ross Clayson Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Kimberly Ross
Clayson, Esq., as Subchapter V trustee for Balance Life Better
Enhancement Corporation.
Ms. Clayson, an attorney at Taft Stettinius & Hollister, LLP, will
be paid an hourly fee of $400 for her services as Subchapter V
trustee and will be reimbursed for work-related expenses incurred.
Ms. Clayson declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Kimberly Ross Clayson, Esq.
Taft Stettinius & Hollister, LLP
27777 Franklin Rd., Ste. 2500
Southfield, MI 48034
Phone: (248) 727.1635
Email: kclayson@taftlaw.com
About Balance Life Better Enhancement
Detroit, Mich.-based Balance Life Better Enhancement Corporation
filed Chapter 11 petition (Bankr. E.D. Mich. Case No. 25-41075) on
February 4, 2025, listing between $1 million and $10 million in
assets and between $500,000 and $1 million in liabilities. Raphael
Williams Jr., managing member, signed the petition.
Judge Thomas J. Tucker oversees the case.
Orlando Avant, Esq., at Orlando Avant, P.C. is the Debtor's
bankruptcy counsel.
BALLISTIC FABRICATION: Unsecureds to Split $269K in Plan
--------------------------------------------------------
Ballistic Fabrication, LLC, submitted a Second Amended Plan of
Liquidation dated February 10, 2025.
Since the Petition Date, the Debtor maintained at least four
full-time employees (including principal Jeffery Bullock). The
Debtor ended 2024 with six full-time employees, including principal
Jeffrey Bullock, and 1 part time employee.
By the middle of January 2025, the Debtor could not ignore its
sluggish sales and its looming, late January, plan confirmation
hearing. Bullock saw that its cash position was going to remain
tenuous, especially in the first year of a confirmed plan. Any
softness in sales would not only affect its performance under the
reorganization plan it would probably assure a default.
After due consideration of its financial affairs, the Debtor
determined that the orderly sale of its remaining assets,
inventory, raw materials, and intellectual property ("IP") would be
in the best interest of the estate.
When Debtor made the announcement of its impending closure, its
sales skyrocketed. Debtor has also received strong interest for its
IP. Although retail online sales have ceased, Debtor continues to
sell its remaining raw materials to metal fabricators. Debtor also
continues to sell its remaining finished goods to VIP customers and
other retailer in the industry.
This Plan provides for full payment of administrative and priority
claims. Administrative claims of the Subchapter V Trustee, Debtor's
accountant and counsel for the Debtor are to be paid in cash after
the Court's approval of any fee application. Priority claims will
be paid upon the Effective Date.
The IRS's secured claim will be paid from cash on hand upon the
Effective Date. The SBA's secured claim, junior to that of the IRS,
shall be paid upon receipt of the ERC credits and, if necessary,
cash from the Debtor.
Non-priority, unsecured creditors holding allowed claims will
receive a pro rata share of approximately $269,000.00.
Class 3 consists of non-priority unsecured claims. Creditors with
Allowed Unsecured Claims in Class 3 shall be paid all of the
Debtor's cash after payment of all administrative expense claims,
secured claims and claims of creditors of equal or higher priority.
These payments, if made, shall be in full satisfaction of any
obligation of the Debtor and NOT any guarantor of the obligations.
This Class is impaired.
This Plan of Liquidation under chapter 11 of the Bankruptcy Code,
Subchapter V, proposes to pay administrative claim and creditors of
the Debtor from the following sources:
* cash on hand as of the Effective Date;
* the sale at auction of Debtor's fixed assets ("Machinery");
* the Debtor's future receipt of Employee Retention Credits
("ERC Credits");
* the sale of Debtor's intellectual property and business
intangibles ("IP");
* cash from the sale of finished product unsold as of the
Effective Date; and
* cash from the sale of raw materials unsold as of the
Effective Date.
A full-text copy of the Second Amended Liquidating Plan dated
February 10, 2025 is available at https://urlcurt.com/u?l=pALWj7
from PacerMonitor.com at no charge.
Attorney for the Debtor:
Charles R. Hyde, Esq.
The Law Offices of C.R. Hyde, PLC
2810 N. Swan Rd., Suite 150
Tucson, AZ 85712
Telephone: (520) 270-1110
Facsimile: (520) 547-2475
E-mail: crhyde@gmail.com
About Ballistic Fabrication
Ballistic Fabrication, LLC, a company in Tucson, Ariz., filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. D. Ariz. Case No. 24-06403) on August 4, 2024, with up to
$50,000 in assets and up to $1 million in liabilities.
Judge Brenda Moody Whinery oversees the case.
The Debtor tapped Charles R. Hyde, Esq., at the Law Offices of C.R.
Hyde, PLC as bankruptcy counsel and The Ruboyianes Company, PLLC as
accountant.
BELLEVUE HOSPITAL: Hires Allen Stovall Neuman as Counsel
--------------------------------------------------------
The Bellevue Hospital seeks approval from the U.S. Bankruptcy Court
for the Northern District of Ohio to employ Allen Stovall Neuman &
Ashton LLP as counsel.
The Debtor requires legal counsel to:
(a) give advice regarding the rights, powers and duties of the
Debtor in the continued operation of its business;
(b) advise and assist the Debtor in preparing all necessary
legal documents required in connection with the administration of
this Chapter 11 case;
(c) review all financial and other reports to be filed with
the court or the United States Trustee in this Chapter 11 case;
(d) if applicable, advise the Debtor concerning, and assist in
the negotiation and documentation of, the refinancing or sale of
its assets and related transactions;
(e) counsel and represent the Debtor regarding actions it
might take to collect and recover property for the benefit of the
estate;
(f) review the nature and validity of liens asserted against
the Debtor's property and advise the Debtor concerning the
enforceability of such liens;
(g) if applicable, assist the Debtor in formulating,
negotiating, and obtaining confirmation of a plan of reorganization
and preparing other related documents; and
(h) perform other legal services for the Debtor.
The firm will be paid at these rates:
Thomas R. Allen Partner $525 per hour
Richard K. Stovall Partner $490 per hour
James A. Coutinho Partner $410 per hour
Andrew D. Rebholz Associate $275 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received from the Debtor a retainer of $180,000.
Richard Stovall, Esq., an attorney at Allen Stovall Neuman &
Ashton, disclosed in a court filing that his firm is a
"disinterested person" as the term is defined in Section 101(14)
of
the Bankruptcy Code.
The firm can be reached through:
Thomas R. Allen, Esq.
Richard K. Stovall, Esq.
James A. Coutinho, Esq.
Andrew D. Rebholz, Esq.
Allen Stovall Neuman & Ashton LLP
10 West Broad Street, Suite 2400
Columbus, OH 43215
Tel: (614) 221-8500
Fax: (614) 221-5988
Email: allen@asnalaw.com
stovall@asnalaw.com
coutinho@asnalaw.com
rebholz@asnalaw.com
About The Bellevue Hospital
The Bellevue Hospital is a healthcare provider offering a range of
services, including cancer care, cardiac and pulmonary rehab,
diagnostic imaging, emergency care, and surgery. It serves
residents of Bellevue, Clyde, Fremont, and surrounding areas,
providing care 24/7. The organization is governed by a board of
trustees and operates as a not-for-profit corporation. Bellevue
Hospital was founded in 1914 and has interests in several
subsidiary entities, including The Bellevue Hospital Foundation,
Bellevue Professional Services, Inc., Bellevue Hospital Pain
Management, LLC, Prairie Ridge, LLC, and Bellevue Hospital Medical
Holdings, LLC.
Bellevue Hospital filed Chapter 11 petition (Bankr. N.D. Ohio Case
No. 25-30191) on February 5, 2025, listing between $10 million and
$50 million in both assets and liabilities. Sara K. Brokaw, chief
executive officer of Bellevue Hospital, signed the petition.
Judge Mary Ann Whipple oversees the case.
Richard K. Stovall, Esq., at Allen Stovall Neuman & Ashton LLP,
represents the Debtor as legal counsel.
Fifth Third Bank, as senior secured creditor, is represented by:
Carrie M. Brosius, Esq.
Vorys, Sater, Seymour and Pease LLP
200 Public Square, Suite 1400 Cleveland, OH 44114
Telephone: (216) 479-6189
Email: cmbrosius@vorys.com
Firelands Regional Health System, as DIP lender, is represented
by:
Ellen Arvin Kennedy. Esq.
Dinsmore & Shohl, LLP
100 W. Main Street, Suite 900
Lexington, Kentucky 40507
Phone: (859) 425-1000
Facsimile: (859) 425-1099
Email: ellen.kennedy@dinsmore.com
BELLEVUE HOSPITAL: Hires Juniper Advisory as Investment Banker
--------------------------------------------------------------
The Bellevue Hospital seeks approval from the U.S. Bankruptcy Court
for the Northern District of Ohio to employ Juniper Advisory, LLC
as its financial advisor and investment banker.
The firm's services include:
a. conducting discussions with certain directors, officers,
employees, agents, and representatives of the Debtor, as approved
by the Debtor, and reviewing information provided by or at the
direction of the Debtor to obtain an understanding of the Debtor's
business and prospects;
b. performing such analysis as the Debtor and Juniper determine
is appropriate to help support the Debtor's decision-making;
c. advising and assisting the Debtor in developing both general
and specific strategies for identifying and evaluating Partners
with whom to discuss a Transaction (both capitalized terms as
defined in the Engagement Agreement);
d. assisting the Debtor in soliciting information and proposals
from Partners regarding a potential Transaction;
e. identifying, contacting, eliciting interest from, screening,
and evaluating Partners on behalf of the Debtor, provided, however,
that Juniper shall not contact any Partner without the Debtor's
prior approval;
f. presenting and obtaining fully-executed copies of
confidentiality agreements from Partners;
g. drafting marketing materials and providing other transaction
support;
h. conducting discussions with qualified Partners regarding
their interest in a Transaction;
i. reviewing, evaluating, and analyzing all proposals that the
Debtor receives from Partners;
j. assisting the Debtor in deciding whether to proceed with a
Transaction with a particular Partner;
k. providing evidentiary support to obtain Court authorization
for the Debtor to proceed with and close a Transaction, including,
without limitation, testimony in this chapter 11 proceeding;
l. assisting the Debtor in negotiations with Partners; and
m. providing such additional services as are mutually agreed
upon by Juniper and the Debtor during the term of the Engagement
Agreement.
The firm will be paid a monthly retainer of $20,000.
The firm will be paid a cash fee equal to $500,000 (the
"Transaction Fee") which will be payable upon consummation of the
Transaction.
J. Jordan Shields, a partner at Juniper Advisory, LLC, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
J. Jordan Shields
Juniper Advisory, LLC
110 N. Wacker Dr., Ste. 2500
Chicago, IL 60606
Tel: (312) 506-3000
About The Bellevue Hospital
The Bellevue Hospital is a healthcare provider offering a range of
services, including cancer care, cardiac and pulmonary rehab,
diagnostic imaging, emergency care, and surgery. It serves
residents of Bellevue, Clyde, Fremont, and surrounding areas,
providing care 24/7. The organization is governed by a board of
trustees and operates as a not-for-profit corporation. Bellevue
Hospital was founded in 1914 and has interests in several
subsidiary entities, including The Bellevue Hospital Foundation,
Bellevue Professional Services, Inc., Bellevue Hospital Pain
Management, LLC, Prairie Ridge, LLC, and Bellevue Hospital Medical
Holdings, LLC.
Bellevue Hospital filed Chapter 11 petition (Bankr. N.D. Ohio Case
No. 25-30191) on February 5, 2025, listing between $10 million and
$50 million in both assets and liabilities. Sara K. Brokaw, chief
executive officer of Bellevue Hospital, signed the petition.
Judge Mary Ann Whipple oversees the case.
Richard K. Stovall, Esq., at Allen Stovall Neuman & Ashton LLP,
represents the Debtor as legal counsel.
Fifth Third Bank, as senior secured creditor, is represented by:
Carrie M. Brosius, Esq.
Vorys, Sater, Seymour and Pease LLP
200 Public Square, Suite 1400 Cleveland, OH 44114
Telephone: (216) 479-6189
Email: cmbrosius@vorys.com
Firelands Regional Health System, as DIP lender, is represented
by:
Ellen Arvin Kennedy. Esq.
Dinsmore & Shohl, LLP
100 W. Main Street, Suite 900
Lexington, Kentucky 40507
Phone: (859) 425-1000
Facsimile: (859) 425-1099
Email: ellen.kennedy@dinsmore.com
BELLEVUE HOSPITAL: Hires Kroll as Claims and Noticing Agent
-----------------------------------------------------------
The Bellevue Hospital seeks approval from the U.S. Bankruptcy Court
for the Northern District of Ohio to employ Kroll Restructuring
Administration LLC as claims, noticing, and solicitation agent.
The firm will oversee the distribution of notices and will assist
in the maintenance, processing and docketing of proofs of claim
filed in the Debtors' Chapter 11 cases.
Prior to the petition date, the Debtors provided Kroll an advance
in the amount of $50,000.
Benjamin Steele, managing director at Kroll, disclosed in a court
filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Benjamin J. Steele
Kroll Restructuring Administration LLC
55 East 52nd Street, 17th Floor
New York, NY 10055
About The Bellevue Hospital
The Bellevue Hospital is a healthcare provider offering a range of
services, including cancer care, cardiac and pulmonary rehab,
diagnostic imaging, emergency care, and surgery. It serves
residents of Bellevue, Clyde, Fremont, and surrounding areas,
providing care 24/7. The organization is governed by a board of
trustees and operates as a not-for-profit corporation. Bellevue
Hospital was founded in 1914 and has interests in several
subsidiary entities, including The Bellevue Hospital Foundation,
Bellevue Professional Services, Inc., Bellevue Hospital Pain
Management, LLC, Prairie Ridge, LLC, and Bellevue Hospital Medical
Holdings, LLC.
Bellevue Hospital filed Chapter 11 petition (Bankr. N.D. Ohio Case
No. 25-30191) on February 5, 2025, listing between $10 million and
$50 million in both assets and liabilities. Sara K. Brokaw, chief
executive officer of Bellevue Hospital, signed the petition.
Judge Mary Ann Whipple oversees the case.
Richard K. Stovall, Esq., at Allen Stovall Neuman & Ashton LLP,
represents the Debtor as legal counsel.
Fifth Third Bank, as senior secured creditor, is represented by:
Carrie M. Brosius, Esq.
Vorys, Sater, Seymour and Pease LLP
200 Public Square, Suite 1400 Cleveland, OH 44114
Telephone: (216) 479-6189
Email: cmbrosius@vorys.com
Firelands Regional Health System, as DIP lender, is represented
by:
Ellen Arvin Kennedy. Esq.
Dinsmore & Shohl, LLP
100 W. Main Street, Suite 900
Lexington, Kentucky 40507
Phone: (859) 425-1000
Facsimile: (859) 425-1099
Email: ellen.kennedy@dinsmore.com
BELLEVUE HOSPITAL: Hires Mr. Lentz of HL4 Consulting as CFO
-----------------------------------------------------------
The Bellevue Hospital seeks approval from the U.S. Bankruptcy Court
for the Northern District of Ohio to employ HL4 Consulting, LLC and
designate Darrell M. Lentz as chief financial officer.
The firm will provide these services:
a. review analytical and financial information related to the
Debtor and its operations, and provide information necessary toward
the Debtor's
reorganization;
b. assist in negotiations with creditors and parties in interest
related to the Debtor's plan and other bankruptcy matters;
c. develop and maintain the Debtor's budget and manage secured
lender reporting;
d. assist generally in managing the chapter 11 process for
client; and
e. render any other tasks as requested by Debtor and agreed to
by HL4.
Mr. Lentz will be paid at the rate of $250 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Mr. Lentz disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Darrell M. Lentz
HL4 Consulting, LLC
2217 Carroll Road
Bay City, MI 48708
About The Bellevue Hospital
The Bellevue Hospital is a healthcare provider offering a range of
services, including cancer care, cardiac and pulmonary rehab,
diagnostic imaging, emergency care, and surgery. It serves
residents of Bellevue, Clyde, Fremont, and surrounding areas,
providing care 24/7. The organization is governed by a board of
trustees and operates as a not-for-profit corporation. Bellevue
Hospital was founded in 1914 and has interests in several
subsidiary entities, including The Bellevue Hospital Foundation,
Bellevue Professional Services, Inc., Bellevue Hospital Pain
Management, LLC, Prairie Ridge, LLC, and Bellevue Hospital Medical
Holdings, LLC.
Bellevue Hospital filed Chapter 11 petition (Bankr. N.D. Ohio Case
No. 25-30191) on February 5, 2025, listing between $10 million and
$50 million in both assets and liabilities. Sara K. Brokaw, chief
executive officer of Bellevue Hospital, signed the petition.
Judge Mary Ann Whipple oversees the case.
Richard K. Stovall, Esq., at Allen Stovall Neuman & Ashton LLP,
represents the Debtor as legal counsel.
Fifth Third Bank, as senior secured creditor, is represented by:
Carrie M. Brosius, Esq.
Vorys, Sater, Seymour and Pease LLP
200 Public Square, Suite 1400 Cleveland, OH 44114
Telephone: (216) 479-6189
Email: cmbrosius@vorys.com
Firelands Regional Health System, as DIP lender, is represented
by:
Ellen Arvin Kennedy. Esq.
Dinsmore & Shohl, LLP
100 W. Main Street, Suite 900
Lexington, Kentucky 40507
Phone: (859) 425-1000
Facsimile: (859) 425-1099
Email: ellen.kennedy@dinsmore.com
BEYOND AIR: Net Loss Lowers to $13.3 Million in Fiscal Q3
---------------------------------------------------------
Beyond Air, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $13.3 million on $1.1 million of revenues for the three months
ended December 31, 2024, compared to a net loss of $17.3 million on
$0.4 million of revenues for the three months ended December 31,
2023.
For the nine months ended December 31, 2024, the Company reported a
net loss of $40.4 million on $2.6 million of revenues, compared to
a net loss of $49.7 million on $0.7 million of total revenues for
the same period in 2023.
The Company used cash in operating activities of $31.3 million for
the nine months ended December 31, 2024, and has accumulated losses
attributable to the stockholders of Beyond Air of $278.3 million.
The Company had cash, cash equivalents and marketable securities of
$10.9 million as of December 31, 2024. Management believes these
factors raise substantial doubt about the Company's ability to meet
its obligations with cash on hand, however, management believes
this doubt is alleviated through plans for increased revenues and
decreased expenditures, many of which have already been
implemented, enabling increased cash flows. The company has
recently signed agreements with TrillaMed (providing access to
Department of Defense and Veterans Affairs hospitals), Healthcare
Links (expanding access to group purchasing organizations and
integrated delivery networks) and Business Asia Consultants
(accelerating global expansion) which will drive increased
revenues. The company has implemented a capital conservation
strategy, reducing our back office footprint, reducing staffing
levels by over 30% across the company, placing our VCAP study on
hold pending future funding and adjusting our production forecasts.
The Company expects an immediate benefit from these actions.
Management is confident that the efforts it has implemented to
increase revenues and decrease expenditures, while not assured,
will enable the Company to meet its obligations.
The Company's future capital needs and the adequacy of its
available funds will depend on many factors, including, but not
necessarily limited to, the success and costs of commercialization
of the Company's approved product and the actual cost and time
necessary for current and anticipated preclinical studies, clinical
trials and other actions needed to obtain certification or
regulatory approval of the Company's product candidates.
As of December 31, 2024, the Company had $34.1 million in total
assets, $15.8 million in total liabilities, and $18.4 million in
total equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/2p8z89p9
About Beyond Air
Headquartered in Garden City, N.Y., Beyond Air, Inc. --
www.beyondair.net -- is a commercial-stage medical device and
biopharmaceutical company developing a platform of nitric oxide
generators and delivery systems (the "LungFit platform") capable of
generating NO from ambient air. The Company's first device, LungFit
PH, received premarket approval from the FDA in June 2022. The NO
generated by the LungFit PH system is indicated to improve
oxygenation and reduce the need for extracorporeal membrane
oxygenation in term and near term (34 weeks gestation) neonates
with hypoxic respiratory failure associated with clinical or
echocardiographic evidence of pulmonary hypertension in conjunction
with ventilatory support and other appropriate agents.
East Hanover, New Jersey-based Marcum LLP, the Company's auditor
since 2019, issued a "going concern" qualification in its report
dated June 24, 2024, citing that the Company has incurred
significant losses and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
BLACKBERRY LIMITED: Director Michael Daniels Steps Down
-------------------------------------------------------
BlackBerry Limited disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that Michael A. Daniels
notified the Company of his decision to retire from the board of
directors, effective February 15, 2025. The decision by Mr. Daniels
to retire was not the result of any disagreement with the Company
on any matter relating to the Company's operations, policies or
practices.
Mr. Daniels joined the Board and its Compensation, Nomination and
Governance Committee in 2014 and served as Chair of the Committee
from 2021 to 2024. The Company thanks Mr. Daniels for his many
years of service and contributions to the Board.
About BlackBerry
Headquartered in Waterloo, Canada, BlackBerry Limited provides
intelligent security software solutions.
At May 31, 2024, BlackBerry had $1.3 billion in total assets, $581
million in total liabilities, and $742 million in total equity.
* * *
Egan-Jones Ratings Company on December 18, 2024, maintained its
'CCC' foreign currency and local currency senior unsecured ratings
on debt issued by BlackBerry Limited.
BUE HART: Case Summary & Six Unsecured Creditors
------------------------------------------------
Debtor: Blue Hart Investments, LLC
9842 Little Rd.
New Port Richey, FL 34654
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-00979
Debtor's Counsel: James W. Elliott, Esq.
MCINTYRE THANASIDES BRINGGOLD ELLIOTT, ET AL.
1228 E. 7th Ave., Suite 100
Tampa, FL 33605
Tel: 813-223-0000
E-mail: James@mcintyrefirm.com
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Bobbi J. Schrader as authorized
representative of the Debtor.
A full-text copy of the petition, which includes a list of the
Debtor's six unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/3NA7GWI/Blue_Hart_Investments_LLC__flmbke-25-00979__0001.0.pdf?mcid=tGE4TAMA
BURGERFI INT'L: Bankruptcy Court OKs Disclosure Statement
---------------------------------------------------------
As previously reported, on September 11, 2024, BurgerFi
International, Inc. and 114 direct or indirect subsidiaries filed
voluntary petitions for relief under chapter 11 of Title 11 of the
United States Code in the United States Bankruptcy Court for the
District Court of Delaware.
The Debtors are operating as debtors in possession in accordance
with the applicable provisions of the Bankruptcy Code and their
cases are being jointly administered under the caption In re
BurgerFi International, Inc., Case No. 24-12017 (CTG).
On January 27, 2025, the Debtors filed with the Bankruptcy Court
the First Amended Combined Disclosure Statement and Joint Chapter
11 Plan of Liquidation. As described therein, the Plan provides,
among other things, for:
(i) the satisfaction in full of all allowed administrative,
priority and secured claims,
(ii) the cancellation of the Company's existing equity
interests for no consideration;
(iii) the issuance of new equity interests to TREW Capital
Management Private Credit 2 LLC or its assignee; and
(iv) certain distributions for holders of allowed general
unsecured claims to be funded solely by a liquidating trust from
specified assets.
On January 29, 2025, the Bankruptcy Court entered an order
approving the disclosures set forth in the Plan on an interim basis
and approving procedures for soliciting votes to accept or reject
the Plan. Holders of the Company's existing equity interests are
deemed to reject the Plan and are not entitled to vote on the
Plan.
About BurgerFi Int'l
BurgerFi International, Inc. (NASDAQ:BFI) is a multi-brand
restaurant company that develops, markets, and acquires fast casual
and premium-casual dining restaurant concepts around the world,
including corporate-owned stores and franchises. BurgerFi
International, Inc. is the owner and franchisor of two brands with
a combined 144 locations: (i) Anthony's, a premium pizza and wing
brand with 51 restaurants (50 corporate-owned casual restaurant
locations and one dual brand franchise location), as of Sept. 10,
2024, and (ii) BurgerFi, among the nation's fast-casual better
burger concepts with 93 BurgerFi restaurants (76 franchised and 17
corporate-owned) as of Sept. 10, 2024.
BurgerFi International, Inc., and 114 affiliated debtors filed
voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code on Sept. 11, 2024 (Bankr. D. Del. Lead Case
No. 24-12017). The cases are pending before the Honorable Judge
Craig T. Goldblatt.
Raines Feldman Littrell LLP serves as the Debtors' counsel. Force
Ten Partners' Jeremy Rosenthal serves as the Company's Chief
Restructuring Officer. Sitrick And Company serves as strategic
communications advisor to the Company. Stretto is the claims
agent.
CAPSTONE CONSULTING: Case Summary & 13 Unsecured Creditors
----------------------------------------------------------
Debtor: Capstone Consulting, LLC
1755 North 1780 East
North Logan, UT 84341
Business Description: Capstone Consulting, LLC is involved in real
estate development, with a focus on
residential projects in the Logan, Utah
area. The Company works on subdividing
properties, expanding neighborhoods, and
collaborating with other stakeholders to
enhance local communities.
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
District of Utah
Case No.: 25-20752
Judge: Hon. Joel T. Marker
Debtor's Counsel: George B. Hofmann, Esq.
COHNE KINGHORN, P.C.
111 E. Broadway, 11th Floor
Salt Lake City, UT 84111
Tel: 801-363-4300
Fax: 801-363-4378
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Brent J. Lawyer as managing member.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/DAOGFKA/Capstone_Consulting_LLC__utbke-25-20752__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 13 Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Advanced Excavation, LLC $872,000
13481 N 2400 E
Cove, UT 84320
Todd and Ashleigh Foster
Email: advancedexcavation214@gmail.com
Phone: (435) 881-5690
2. Shree Giriraj Ji, Inc. Equity Interest $551,000
Attn: Jay Patel
3221 Kittery Drive SW
Snellville, GA
30039-6029
Email: jkp345@yahoo.com
Phone: (228) 383-0251
3. Visvottama, LLC $458,531
Attn: Sagar Patel
118 North 1600
West, Suite B
Mapleton, UT 84341
Email: silver.sp.56@gmail.com
Phone: (801) 400-0060
4. LCH HEMA Fund, LLC $98,776
Attn: James "Jim" Hickman
112 North Main Street
Logan, UT 84341
Email: jimh@hickmantitle.com
Phone: (435) 752-0582
5. CAPPV International, LLC $62,981
Attn: Krunal Patel
29 Avignon Drive
Morris Plains, NJ 07950
Email: krunalpatel2186@gmail.com
Phone: (201) 994-5356
6. Alliance Consulting Engineers Vendor $51,200
Attn: Brian Lyon
150 East 200 North,
Suite P
Logan, UT 84321
Email: alliancelogan@yahoo.com
Phone: (435) 755-5121
7. YU Capital, LLC $41,664
Attn: Wenfei Yu
293 East 475 South
Kaysville, UT 84037
Email: bttsea@gmail.com
Phone: (626) 716-5159
8. Goldman Sachs Bank USA $36,723
PO Box 70321
Philadelphia, PA
19176-0321
Tel: (833) 773-0990
9. IB Funding, LLC Vendor $25,000
Attn: Indra Bhonsle
2888 Maple Cove Lane
Bountiful, UT 84010
Email: indra@ipbfunding.com
Phone: (801) 949-2558
10. Ron Foster Construction $25,000
Attn: Ron Foster
13481 North 2400 East
Cove, UT 84320
Email: ronfoster1@hotmail.com
Phone: (435) 994-1212
11. Key Bank Line of Credit $25,000
Commercial Loan Department
PO Box 94525
Cleveland, OH
44101-4525
Tel: (800) 821-2829
12. Key Bank, N.A. Credit Card $24,078
PO Box 89438
Cleveland, OH
44101-6446
Tel: (888) 539-4249
13. Helgesen, Houtz & Jones $10,550
Attn: Taylor Jones
532 S 1475 E, Ste 200
Ogden, UT 84403
CARMAX INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company on January 27, 2025, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by CarMax, Inc.
Headquartered in Richmond, Virginia, CarMax, Inc. retails
automobiles.
CARNIVAL CORP: Moody's Ups CFR to 'Ba3', Outlook Positive
---------------------------------------------------------
Moody's Ratings upgraded its ratings of Carnival Corporation
(Parent); corporate family rating to Ba3 from B1, probability of
default rating to Ba3-PD from B1-PD, backed senior secured notes
and backed senior secured bank credit facilities to Baa3 from Ba1
and backed senior unsecured notes to B1 from B2. Moody's also
upgraded Moody's ratings for Carnival plc (plc); backed senior
secured notes to Baa3 from Ba1 and backed senior unsecured notes to
B1 from B2. Moody's also affirmed the Not Prime backed commercial
paper ratings of the Parent and plc and upgraded the rating of the
backed taxable revenue bond issued by Long Beach (City of) CA to B1
from B2. The speculative grade liquidity (SGL) rating remains
unchanged at SGL-2. The rating outlook for Carnival remains
positive.
The upgrades of the ratings and positive outlook reflect the
improvements in the company's credit metrics through the end of
fiscal 2024 and Moody's expectations for further improvements this
fiscal year. Debt/EBITDA fell to 4.6x at November 30, 2024 and will
approach 4.0x by the end of fiscal 2025 and 3.5x in 2026 from
modest earnings expansion and modest debt reduction. The rating
action also reflects Moody's view that demand will remain strong
through and beyond 2025 and free cash flow will expand annually
through 2026.
The SGL-2 speculative grade liquidity rating reflects Carnival's
good liquidity. Cash and marketable securities were $1.2 billion at
the start of fiscal 2025. Moody's expect free cash flow of at least
$1.6 billion in 2025. The $2.9 billion revolver will remain
undrawn.
RATINGS RATIONALE
The Ba3 corporate family rating balances the company's leading
position in the global ocean cruise industry based on size against
its still high, albeit improving financial leverage. Carnival
operates nine brands, the highest number in the industry. The
company accounts for about 40% of the industry's annual revenue,
operates the most ships -- representing 37% of industry capacity in
2024 -- and boards the most passengers. Carnival's passenger count
reached 13.5 million in 2024, 57% higher than second largest cruise
company, Royal Caribbean Cruises Ltd. Carnival's diverse brands
offer cruise experiences across a wide range of customer
demographics. Enhanced marketing initiatives across the cruise
industry are expanding the customer base, which will grow the base
of recurring cruise customers. Risks include cost inflation,
including for fuel, demand's exposure to economic cycles, and
competitive capacity increases in certain markets, particularly the
Caribbean, which could weigh on pricing.
Moody's project debt/EBITDA to approach 4.0x at the end of fiscal
2025. Leverage at this level will align with the cross-industry
median for the Ba3 rating category. Operating margin in the
mid-teens and funds from operations + interest to interest coverage
approaching 4.0x at the end of 2025 comfortably support the Ba3
rating.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if Carnival continues to retire debt,
resulting in declining financial leverage. Expectations for
debt/EBITDA sustained below 4.0x and funds from operations plus
interest to interest approaching 5.0x could support a ratings
upgrade. Ratings could be downgraded if Moody's expect free cash
flow will be no better than breakeven, if funds from operations
plus interest to interest will be sustained below 3.5x or if
debt/EBITDA will approach 4.5x.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Carnival Corporation & Carnival plc is the largest global cruise
company, and among the largest leisure travel companies, with a
portfolio of world-class cruise lines – AIDA Cruises, Carnival
Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O
Cruises (Australia), P&O Cruises (UK), Princess Cruises, and
Seabourn. Carnival Corporation and Carnival plc operate as a
dual-listed company and are headquartered in Miami, Florida, US and
Southampton, UK. Gross and net revenue were $25.0 and $19.1
billion, respectively in fiscal 2024.
CARNIVAL CORP: S&P Rates New $1BB Senior Unsecured Notes 'BB'
-------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating and '3'
recovery rating to Carnival Corp.'s proposed $1 billion senior
unsecured notes due in 2030. The '3' recovery rating indicates its
expectation for meaningful (50%-70%; rounded estimate: 65%)
recovery for noteholders in the event of a payment default.
Carnival intends to use the proceeds from these notes, along with
cash on hand, to fully redeem its $1 billion, 10.5% senior
unsecured notes due in 2030, pay the associated premium and accrued
interest, and for other transaction-related fees and expenses.
S&P said, "The transaction is debt-for-debt and does not affect our
'BB' issuer credit rating or positive outlook on Carnival. We
expect it will reduce interest expense and improve cash flow
because we assume the interest rate on the new notes will be lower
than the rate on the notes Carnival is repaying, given its improved
credit quality since it issued them in May 2022. Our rating and
outlook incorporate an expectation that refinancings in fiscal 2025
could support interest reduction and increase cash available for
debt reduction. We expected Carnival to refinance two bonds
totaling approximately $3 billion with interest rates over 10%. In
our forecast, we assumed the company would refinance these bonds in
the second half of 2025 at rates at least 300 basis points (bps)
below current rates.
"Carnival recently issued $2 billion, 6.125% senior unsecured notes
at a rate that was 425 bps lower than on the debt it was redeeming.
This will save approximately $88 million annually. We believe the
company can achieve a similar interest rate reduction with this
refinancing."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P assigned its 'BB' issue-level rating and '3' recovery
rating to Carnival's proposed $1 billion senior unsecured notes due
in 2030. The '3' recovery rating indicates its expectation for
meaningful (50%-70%; rounded estimate: 65%) recovery for
noteholders.
-- S&P's 'BBB-' issue-level rating and '1' recovery rating on
Carnival's first-lien secured debt are unchanged. The '1' recovery
rating indicates its expectation for very high (90%-100%; rounded
estimate: 95%) recovery.
-- S&P's 'BB' issue-level rating and '3' recovery rating on
Carnival's other unsecured debt with subsidiary guarantees are
unchanged. The '3' recovery rating indicates its expectation for
meaningful (50%-70%; rounded estimate: 65%) recovery.
-- S&P's 'BB' issue-level rating and '4' recovery rating on
Carnival's unsecured debt without subsidiary guarantees are
unchanged. The '4' recovery rating indicates its expectation for
average (30%-50%; rounded estimate: 45%) recovery.
Simulated default assumptions
-- S&P's simulated default scenario considers a default by 2030
due to a significant decline in cash flow stemming from a prolonged
economic downturn, significant health or safety event, escalating
geopolitical conflicts, or increased competitive pressures that
substantially reduce demand for cruising.
-- S&P estimates a gross enterprise value (EV) at emergence of
about $24.8 billion by applying a 7x multiple to its estimate of
the company's EBITDA at emergence. This multiple is at the high end
of its range for leisure companies to reflect Carnival's good
position in the cruise industry, a small but underpenetrated
segment of the overall travel and vacation industry.
-- S&P allocates its estimate of gross EV at emergence among
secured and unsecured claims based on our understanding of the
contributions, by asset value, from parents Carnival Corp. and
Carnival PLC, Carnival Holdings (Bermuda) Ltd., Carnival Holdings
(Bermuda) II Ltd. (the new revolver borrower), and subsidiary
guarantors.
S&P Said, "We assume that about 53% of our estimate of gross EV at
emergence is available to cover first-priority secured claims,
about 20% is available to cover the unsecured claims at Carnival
Holdings (a subsidiary that owns 12 vessels previously backing the
priority senior notes), about 20% is at remaining unencumbered
vessels and available to cover the unsecured claims that benefit
from subsidiary guarantees, and about 7% is available to cover
revolver claims at Carnival Holdings II.
"Under our analysis, about $12.2 billion of net EV would be
available to cover secured claims. After satisfying the
first-priority secured claims, the remaining value we estimate at
about $6.4 billion would be allocated among the claims that benefit
from subsidiary guarantees and those that benefit only from parent
guarantees. We understand substantial collateral sits at the
subsidiary guarantors. Under our analysis, about $4.6 billion of
net EV at Carnival Holdings that previously backed the priority
senior notes would flow to parent Carnival Corp. and be available
to cover other unsecured claims guaranteed by the parent. This is
because Carnival Holdings is not a subsidiary guarantor.
"We estimate that about $8.2 billion of the EV at default will be
directly available to unsecured debt benefiting from subsidiary
guarantees. This includes $3.7 billion of residual collateral
value, after satisfying various secured claims, and an additional
$4.5 billion (our estimated value of the remaining unencumbered
vessels after carving out the vessels contributed to Carnival
Holdings and Carnival Holdings II). The $8.2 billion of total value
only partially covers our estimate of the unsecured debt with
subsidiary guarantees at default. We assume these deficiency claims
rank pari passu with the unsecured debt that only benefit from
parent guarantees.
"We estimate about $7.4 billion of residual EV at default after
satisfying other claims that will be available to the unsecured
debt that has only parent guarantees." This includes $2.7 billion
of residual collateral value, after satisfying various secured
claims, and an additional $4.7 billion that reflects the value at
Carnival Holdings. The total value of $7.4 billion only partially
covers our estimate of those unsecured claims and pari passu
deficiency claims at default.
A new approximate $3 billion revolving credit facility issued by
Carnival Holdings II replaced Carnival's prior $2.9 billion
revolving credit facility upon maturity in August 2024. S&P assumes
the facility is 85% drawn at default and its maturity is extended
to the year of default.
S&P said, "Under our analysis, the value we attribute to Carnival
Holdings II is not sufficient to cover our estimate of revolving
credit facility claims at default. We assume this deficiency claim
ranks pari passu with the company's unsecured debt with subsidiary
guarantees."
Simplified waterfall
-- Emergence EBITDA: $3.5 billion
-- EBITDA multiple: 7x
-- Gross EV: $24.8 billion
-- Net EV (after 7% administrative expenses): $23.1 billion
-- Value attributable to secured/Carnival Holdings/unsecured
claims/unsecured revolver claims: $12.2 billion/$4.7 billion/$4.5
billion/$1.6 billion
-- Value available to first-lien secured claims: $12.2 billion
-- Estimated first-lien secured claims at default: $5.8 billion
--Recovery expectations: 90%-100% (rounded estimate: 95%)
-- Residual value available from collateral after satisfying
first-lien secured claims: $6.4 billion
-- Residual value available from collateral for unsecured claims
that benefit from subsidiary guarantees (export credit facilities,
the 2026, 2027, 2029, and 2033 notes, the 2027 convertible notes,
bilateral bank facilities, and the new revolver deficiency claims):
$3.7 billion
-- Residual value available from collateral for unsecured debt
that benefits from parent guarantees: $2.7 billion
-- Value from Carnival Holdings available for unsecured claims
that benefit from parent guarantees: $4.7 billion
-- Value available to unsecured claims that benefit from
subsidiary guarantees: $8.2 billion
-- Pro rata share of parent value: $7 billion
-- Total value available to unsecured claims that benefit from
subsidiary guarantees: $15.2 billion
-- Estimated unsecured claims that benefit from subsidiary
guarantees at default: $22.9 billion
--Recovery expectations: 50%-70% (rounded estimate: 65%)
-- Value available to unsecured debt with only parent guarantees:
About $400 million
-- Unsecured claims with only parent guarantees at default: $843
million
--Recovery expectations: 30%-50% (rounded estimate: 45%)
All debt amounts include six months of prepetition interest.
CHATEAU CREOLE: Trustee Hires Fishman Haygood as Counsel
--------------------------------------------------------
Dwayne M. Murray, the Trustee for Chateau Creole Apartments, LLC,
seeks approval from the U.S. Bankruptcy Court for the Eastern
District of Louisiana to employ Fishman Haygood, L.L.P. as
counsel.
The firm's services include:
a. advising the Trustee with respect to the continued
operation and management of the Debtor's business and properties,
including without limitation, (i) analysis of various lease
agreements and relationships with affiliates and third parties
perhaps related to ownership of the Debtor, (ii) analysis of the
highest and best use of the Debtor's real property, (iii) analysis
of the avoidability of any lease agreements purporting to affect
the Debtor's real property, and (iv) analysis of the extent to
which (if any) amounts are due to the Debtor's estate under any
lease agreements or for occupancy of the Debtor's real property;
b. investigating the nature and validity of claims and liens
asserted against the property of Debtor, and representing the
Trustee within pending litigation on behalf of the estate
concerning claims and liens against the estate and properties of
the estate;
c. assisting the Trustee in obtaining an accounting
professional to assist in analysis of the accounting work done by
the US Trustee and to perform all accounting functions necessary
for the Trustee to bring up to date and maintain the necessary
accounting and financial records such that the business of the
Debtor's estate will be properly accounted for and the Trustee will
be able to account to this court, creditors and the U.S. Trustee
for the operations of the business(es) of this Debtor's estate;
d. working on behalf of the Trustee regarding all necessary
applications, motions, answers, proposed orders, other pleadings,
notices, schedules and other documents, and reviewing all financial
and other reports to be filed;
e. advising the Trustee concerning and preparing responses to
applications, motions, pleadings, notices, and other documents
which may be filed by other parties herein;
f. appearing in court to protect the interests of the Debtor's
estate;
g. representing the Trustee in connection with obtaining
post-petition financing, if necessary;
h. investigating and advising the Trustee concerning, and
taking such action as may be necessary to collect, income and
assets in accordance with applicable law, and the recovery of
property for the benefit of Debtor's estate;
i. advising and assisting the Trustee in connection with any
potential property dispositions;
j. advising the Trustee concerning executory contract and
unexpired lease assumptions, assignments and rejections and lease
restructuring, and characterizations of the Debtor's estate's
property interests;
k. assisting the Trustee in reviewing, estimating, and
resolving claims asserted against Debtor's estate;
l. assisting the Trustee with respect to any referrals as may
be appropriate upon investigations done within the trustee's
duties;
m. commencing, continuing and conducting litigation necessary
and appropriate to assert rights held by the Debtor's estate,
protect assets of the Debtor's estate or otherwise further the goal
of completing a successful reorganization of the Debtor's estate;
n. providing corporate transaction services with respect to
transitioning from the Debtor's control of various affiliated
entities to the Trustee, modifying entity charter documents and as
necessary operating agreements and/or by-laws;
o. preparing and pursuing a confirmation of a plan of
reorganization and approval of a disclosure statement; and
p. performing all other legal services for the Trustee which
may be necessary and proper in this Case.
The firm will be paid at these rates:
Brent Barriere $650 per hour
Tristan Manthey $595 per hour
Cherie D. Nobles $475 per hour
Associates $275 to $445
Paralegals $210 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Cherie Nobles, Esq., a partner at Fishman Haygood, L.L.P.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Cherie Nobles, Esq.
Fishman Haygood, L.L.P.
201 St. Charles Avenue, Suite 4600
New Orleans, LA 70170
Telephone: (504) 556-5561
Facsimile: (504) 310-0253
Email: cnobles@fishmanhaygood.com
About Chateau Creole Apartments
Chateau Creole Apartments is primarily engaged in renting and
leasing real estate properties.
Chateau Creole Apartments, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La.
Case No. 24-10608) on March 29, 2024, listing $1 million to $10
million in both assets and liabilities. The petition was signed by
Damon J. Baldone as manager.
Judge Meredith S Grabill presides over the case.
Ryan J. Richmond, Esq. at Sternberg, Naccari & White, LLC
represents the Debtor as counsel.
CINEMARK HOLDINGS: Wellington Management, 3 Others Hold 6.8% Stake
------------------------------------------------------------------
Wellington Management Group LLP disclosed in a Schedule 13G/A filed
with the U.S. Securities and Exchange Commission that as of
December 31, 2024, it and its affiliates -- Wellington Group
Holdings LLP, Wellington Investment Advisors Holdings LLP,
Wellington Management Company LLP -- beneficially owns 8,280,631
shares of Common Stock of Cinemark Holdings, Inc., representing
approximately 6.8% of the outstanding shares of the Company's
common stock.
Wellington Management Group LLP may be reached at:
Taisia Lowe, Regulatory Analyst
c/o Wellington Management Company LLP
280 Congress Street
Boston MA 02210
A full-text copy of Wellington Management's SEC Report is available
at:
https://tinyurl.com/8cay2at3
About Cinemark Holdings Inc.
Headquartered in Plano, Texas, Cinemark Holdings, Inc. operates as
a movie theater.
* * *
Egan-Jones Ratings Company on November 11, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Cinemark Holdings, Inc. to CCC+ from CCC.
CKM SHINING: UST Appoints Arturo Cisneros as Chapter 11 Trustee
---------------------------------------------------------------
Peter C. Anderson, the U.S. Trustee for Region 16, appointed Arturo
Cisneros as Chapter 11 trustee for CKM Shining Stars, LLC.
The appointment was made pursuant to the order from the U.S.
Bankruptcy Court for the Central District of California on February
6.
The chapter 11 trustee bond is initially set at $200,000.00. The
bond may require adjustment as the trustee collects and liquidates
assets of the estate, and the trustee is directed to inform the
U.S. Trustee when changes to the bond amount are required or made.
About CKM Shining Stars, LLC
CKM Shining Stars is engaged in activities related to real estate.
CKM Shining Stars, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankrutpcy Code (Bankr. C.D. Cal. Case No.
24-11238) on May 15, 2024, listing $10 million to $50 million in
assets and $1 million to $10 million in liabilities. The petition
was signed by Margaret Levecke as manager.
Judge Scott C. Clarkson presides over the case.
Robert P. Goe, Esq. at GOE FORSYTHE & HODGES LLP represents the
Debtor as counsel.
COGENT COMMUNICATIONS: Egan-Jones Retains B- Sr. Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company on January 28, 2025, maintained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by Cogent Communications Holdings, Inc. EJR also
withdrew the rating on commercial paper issued by the Company.
Headquartered in Washington, D.C., Cogent Communications Holdings,
Inc. operates as a next generation optical Internet service
provider focused on delivering ultra-high speed Internet access and
transport services.
CONNORSVILLE COMMONS: Gets Final OK to Use Cash Collateral
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, issued a final order authorizing Connersville
Commons, LLC to continue using cash collateral under agreed terms
with First Merchants Bank.
The final order, signed by Judge Eduardo Rodriguez, approved the
use of cash collateral for payment of expenses set forth in the
company's budget, with a permitted variance of 10% in the
aggregate.
Connersville projects total operational expenses of $15,995 for
February.
First Merchants Bank was granted a post-petition replacement lien
with the same validity and priority as its pre-bankruptcy lien and
will receive monthly payments as protection for the use of its cash
collateral.
First Merchants Bank can be reached through its counsel:
Jarrod B. Martin, Esq.
Chamberlain, Hrdlicka, White, Williams & Aughtry, P.C.
1200 Smith Street, Suite 1400
Houston, TX 77002
Phone: 713-356-1280
Fax: 713-658-2553
Email: Jarrod.Martin@chamberlainlaw.com
About Connorsville Commons
Connorsville Commons, LLC is a Single Asset Real Estate (as defined
in 11 U.S.C. Sec. 101(51B)).
Connorsville Commons sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Texas Case No. 24-34691) on October 4,
2024, with $1 million to $10 million in both assets and
liabilities. Thomas Noons, managing partner of Connorsville
Commons, signed the petition.
Judge Eduardo V. Rodriguez oversees the case.
The Debtor is represented by Bennett Greg Fisher, Esq., at Lewis
Brisbois Bisgaard & Smith.
CYTOPHIL INC: Iana Vladimirova Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 5 appointed Iana Vladimirova as
Subchapter V trustee for Cytophil, Inc.
Ms. Vladimirova will be compensated at $450 per hour for her
services as Subchapter V trustee and will be reimbursed for work
related expenses incurred.
Ms. Vladimirova declared that she is a disinterested person
according to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Iana A. Vladimirova
Stafford Rosenbaum
222 West Washington Avenue, Suite 900
Madison, Wisconsin 53701-1784
608.259.2639 (Phone)
608.259.2600 (Fax)
ivladimirova@staffordlaw.com
About Cytophil Inc.
Cytophil Inc., doing business as RegenScientific, operates in the
field of manufacturing medical devices.
Cytophil sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. E.D. Wis. Case No. 25-20576) on February 4, 2025. In its
petition, the Debtor reported total assets of $1,131,109 and total
liabilities of $3,520,398 as of September 30, 2024.
Judge G. Michael Halfenger handles the case.
The Debtor is represented by:
Evan P. Schmit, Esq.
Kerkman & Dunn
839 N. Jefferson St., Ste. 400
Milwaukee, WI 53202-3744
Tel: 414-277-8200
Email: eschmit@kerkmandunn.com
DAVITA INC: Egan-Jones Retains BB Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on February 3, 2025, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by DaVita Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Denver, Colorado, DaVita Inc. provides a variety
of health care services.
DIAMOND COMIC: Seeks to Hires Omni as Administrative Agent
----------------------------------------------------------
Diamond Comic Distributors, Inc. and its affiliates seek approval
from the U.S. Bankruptcy Court for the District of Maryland to
employ Omni Agent Solutions, Inc. as administrative agent.
The firm will provide these services:
a) assist with the preparation of the Debtors' schedules of
assets and liabilities and statements of financial affairs and
gather data in conjunction therewith;
b) provide a confidential data room;
c) assist with, among other things, solicitation, balloting
and tabulation of votes, and prepare any related reports, as
required in support of confirmation of a Chapter 11 plan, and in
connection with such services, process requests for documents from
parties in interest, including, if applicable, brokerage firms,
bank back-offices, and institutional holders;
d) prepare an official ballot certification and, if necessary,
testify in support of the ballot tabulation results;
e) manage and coordinate any distributions pursuant to a
Chapter 11 plan; and
f) provide such other processing, solicitation, balloting and
other administrative services described in the Engagement
Agreement, but not included in the Section 156(c) Application, as
may be requested from time to time by the Debtors, the Court or the
Office of the Clerk of the Bankruptcy Court.
Omni has received an initial retainer of $50,000.
In addition, the firm will seek reimbursement for expenses
incurred.
Paul Deutch, the executive vice president of Omni Agent Solutions,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Paul H. Deutch
Omni Agent Solutions
5955 De Soto Avenue, Suite 100
Woodland Hills, CA 91367
Tel: (818) 906-8300
About Diamond Comic Distributors, Inc.
Founded in 1982, Diamond Comic Distributors Inc. offers a
multi-channel platform of publishing, marketing and fulfillment
services, coupled with an unparalleled global distribution network
for its retailers, publishers and vendors.
Diamond Comic Distributors and its affiliates filed Chapter 11
petitions (Bankr. D. Md. Case No. 25-10308) on January 14, 2025. At
the time of the filing, Diamond Comic Distributors reported between
$50 million and $100 million in both assets and liabilities.
Judge David E. Rice handles the case.
The Debtors tapped Saul Ewing, LLP as legal counsel; Getzler
Henrich & Associates, LLC as financial advisor; Raymond James &
Associates, Inc. as investment banker; and Stephenson Harwood, LLP
as U.K. counsel. Omni Agent Solutions is the Debtors' claims and
noticing agent and administrative agent.
DIAMOND COMIC: Seeks to Hires Saul Ewing LLP as Counsel
-------------------------------------------------------
Diamond Comic Distributors, Inc. and its affiliates seek approval
from the U.S. Bankruptcy Court for the District of Maryland to
employ Saul Ewing LLP as counsel.
The firm's services include:
(a) providing legal advice with respect to the Debtors' powers
and duties as debtors in possession in the continued operation of
their businesses and management of their properties;
(b) preparing and pursuing confirmation of a plan and approval
of a disclosure statement;
(c) preparing, on behalf of the Debtors, necessary applications,
motions, answers, orders, reports, and other legal papers;
(d) appearing in Court and protecting the interests of the
Debtors before the Court;
(e) providing assistance, advice, and representation concerning
any investigation of the assets, liabilities, and financial
condition of the Debtors that may be required under local, state,
or federal law or orders of this or any other court of competent
jurisdiction;
(f) providing counseling and representation with respect to the
assumption or rejection of executory contracts and leases,
transfers of assets, and other bankruptcy-related matters arising
from these chapter 11 cases; and
(g) performing all other services assigned by the Debtors to
Saul Ewing as counsel to the Debtors, and to the extent the firm
determines that such services fall outside of the scope of services
historically or generally performed by Saul Ewing as counsel in a
bankruptcy proceeding, Saul Ewing will file a supplemental
declaration pursuant to Bankruptcy Rule 2014.
The firm will be paid at these rates:
Partners $620 to $1,300 per hour
Special Counsel $555 to $1,440 per hour
Associates $325 to $620 per hour
Paraprofessionals $240 to $500 per hour
The firm holds a retainer of $317,989.78.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Consistent with Part D(1) of the U.S. Trustee Guidelines, Mr.
Hampton state as follows:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and reasons for the difference.
Response: Saul Ewing began working with the Debtors in
connection with restructuring matters on or about July 2024. Saul
Ewing's billing rates were adjusted in January 2025 to reflect
economic and other conditions.
Question: Has your client approved your respective budget and
staffing plan, and if so, for what budget period?
Response: The Debtors approved or will be approving a
prospective budget and staffing plan for Saul Ewing's engagement
for the postpetition period, as appropriate. In accordance with the
U.S. Trustee Guidelines, the budget may be amended as necessary to
reflected changed or unanticipated developments.
Jeffrey C. Hampton, Esq., a partner at Saul Ewing LLP, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jeffrey C. Hampton, Esq.
Saul Ewing LLP
1500 Market Street, 38th Floor
Philadelphia, PA 19102
Tel: (215) 972-7118
Email: jeffrey.hampton@saul.com
About Diamond Comic Distributors, Inc.
Founded in 1982, Diamond Comic Distributors Inc. offers a
multi-channel platform of publishing, marketing and fulfillment
services, coupled with an unparalleled global distribution network
for its retailers, publishers and vendors.
Diamond Comic Distributors and its affiliates filed Chapter 11
petitions (Bankr. D. Md. Case No. 25-10308) on January 14, 2025. At
the time of the filing, Diamond Comic Distributors reported between
$50 million and $100 million in both assets and liabilities.
Judge David E. Rice handles the case.
The Debtors tapped Saul Ewing, LLP as legal counsel; Getzler
Henrich & Associates, LLC as financial advisor; Raymond James &
Associates, Inc. as investment banker; and Stephenson Harwood, LLP
as U.K. counsel. Omni Agent Solutions is the Debtors' claims and
noticing agent and administrative agent.
DIOCESE OF ROCKVILLE: U.S. Trustee Slams Jones Day Fees in Ch. 11
-----------------------------------------------------------------
Hilary Russ of Law360 Bankruptcy Authority reports that the U.S.
Trustee's Office is contesting a portion of the nearly $52 million
in fees charged by Jones Day attorneys for serving as lead counsel
to the Catholic diocese on New York's Long Island, as total case
fees have surpassed $120 million.
About The Roman Catholic Diocese
of Rockville Centre, New York
The Roman Catholic Diocese of Rockville Centre, New York, is the
seat of the Roman Catholic Church on Long Island. The Diocese has
been under the leadership of Bishop John O. Barres since February
2017. The State of New York established the Diocese as a religious
corporation in 1958. The Diocese is one of eight Catholic dioceses
in New York, including the Archdiocese of New York. The Diocese's
total Catholic population is approximately 1.4 million, roughly
half of Long Island's total population of 3.0 million. The Diocese
is the eighth largest diocese in the United States when measured by
the number of baptized Catholics.
To deal with sexual abuse claims, the Roman Catholic Diocese of
Rockville Centre, New York, filed a Chapter 11 petition (Bankr.
S.D.N.Y. Case No. 20-12345) on Sept. 30, 2020, listing as much as
$500 million in both assets and liabilities. Judge Martin Glenn
oversees the case.
The Diocese tapped Jones Day as legal counsel, Alvarez & Marsal
North America, LLC, as restructuring advisor, and Sitrick and
Company, Inc., as communications consultant. Epiq Corporate
Restructuring, LLC is the claims agent.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors in the Diocese's Chapter 11 case. The
coxmmittee tapped Pachulski Stang Ziehl & Jones, LLP and Ruskin
Moscou Faltischek, PC as its bankruptcy counsel and special real
estate counsel, respectively.
Robert E. Gerber, the legal representative for future claimants of
the Diocese, is represented by the law firm of Joseph Hage
Aaronson, LLC.
DISTRIBUIDORA MI: Hires Frank J. Giarratano CPA as Accountant
-------------------------------------------------------------
Distribuidora Mi Honduras LLC, d/b/a DMH, LLC, seeks approval from
the U.S. Bankruptcy Court for the District of Maryland to employ
Frank J. Giarratano, CPA as accountant.
The firm's services include:
a. General Accounting services;
b. Tax services;
c. Litigation support;
d. Reporting services;
e. Auditing services;
f. Forensic services;
g. Projections;
h. Plan analysis; and
i. Other accounting and consulting services.
The firm will be paid at the rate of $600 per tax year, and
necessary 1099 NEC forms at the rate of $250 per year.
Mr. Giarratano assured the court that he is a disinterested person
within the meaning of 11 U.S.C. Sec. 327.
The accountant can be reached at:
Frank J. Giarratano, CPA
4237 Red Bandana Way
Ellicott City, MD 21042
Tel: (443) 283-2083
Fax: (443) 283-1407
About Distribuidora Mi Honduras LLC, LLC
d/b/a DMH, LLC
Distribuidora Mi Honduras LLC, doing business as DMH LLC, imports
specialty non-perishable foods, cosmetics, and cleaning supplies
from Mexico and Central America.
Distribuidora Mi Honduras filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Md. Case No.
24-18364) on Oct. 4, 2024, with assets of $500,000 to $1 million
and liabilities of $1 million to $10 million. Omar Rubinstein,
managing member, signed the petition.
The Debtor is represented by David Erwin Cahn, Esq., at the Law
Office of David Cahn, LLC.
DMD FLORIDA: Seeks to Sell Restaurants at Auction
-------------------------------------------------
DMD Florida Development 2, LLC (Development) and its affiliates,
DMD Florida Restaurant Group C LLC (DMD C), DMD Florida Restaurant
Group D LLC (DMD D), seek approval from the U.S. Bankruptcy Court
for the Southern District of Florida, Fort Lauderdale Division, to
sell substantially all of their Assets, free and clear of all
liens, claims, and encumbrances.
The Debtors DMD C and DMD D each own a restaurant operating as a
Twin Peaks franchise from a leased business premises.
Debtor Development owns all of the membership interests in Debtors
DMD C and DMD D. Development is 100% owned by non-debtor DMD
Restaurant Group, LLC (Restaurant Group), which in turn is 100%
owned by non-debtor DMD Ventures, LLC.
Restaurant Group, through subsidiaries, also owns 6 other Twin
Peaks restaurants. Ventures, Restaurant Group and its subsidiaries
besides Development, and the Non-Debtor Restaurants are not, and
have not been, debtors before this, or any other, Bankruptcy
Court.
The Debtors propose to sell the Debtor Restaurants through a free
and clear 363 sale. The Debtor Restaurants will be packaged for
sale with the Non-Debtor Restaurants, as it is believed that a
higher price for the Debtor Restaurants will be obtained if the
sale is conducted for all 8 restaurants as one transaction.
The Debtor Restaurants are located at:
a. 440 SW 145th Ave., Pembroke Pines, FL 33027
b. 2224 Palm Beach Lakes Blvd., West Palm Beach, FL, 33409
The Non-Debtor Restaurants are located at:
a. 2000 S University Drive, Davie, FL
b. 1903 Hollywood Blvd, Hollywood, FL
c. 6401 N Andrews Ave, Fort Lauderdale, FL
d. 16411 Corporate Commerce Way, Fort Myers, FL
e. 2078 9th St N, Naples, FL
f. 8700 NW 18th Terrace, Doral, FL
All 8 restaurants are operating, and therefore the buyer will step
into a turnkey operation. The sale of the restaurants will include
the assignment of existing leases as well as the sale of all
personal property.
As part of the sale process, the Twin Peaks franchisor will vet the
proposed buyer(s) to ensure that such purchaser will be able to
comply with all franchise agreements.
The Debtors believe they are more valuable if they are packaged for
sale as part of an entire territory rather than as two standalone
franchises within another owner's territory. The proposed Sale will
include all 8 the Restaurant Group's Twin Peaks franchises. The
only sales that will be free and clear of liens, claims, and
encumbrances, and that will benefit from the protections available
under section 363 of the Bankruptcy Code, are the sales of the
Debtors' two franchises.
The Debtors have not yet retained an investment banker or other
professional to market their Restaurants, together with the
Non-Debtor Restaurants, for sale, and have not yet secured a
stalking horse bidder or finalized proposed bid protections or
procedures.
The Debtors are in the business of owning and operating Twin Peaks
franchises. The largest creditor in these jointly-administered
cases, Florida Restaurant Franchise Group IX, LP (Lender), loaned
Debtor Development $12,000,000 to develop and operate the two Twin
Peaks franchises that are now owned and operated by Debtors DMD C
and DMD D.
The Lender asserts a secured claim against the Debtors in the
approximate amount of $16,250,000, and the Debtors believe the
Lender should be allowed no more than nonpriority, general
unsecured claim in the amount of $11,500,000.
Aside from the Lender's claim, the Debtors have scheduled general
unsecured claims in the approximate amount of $170,000.
The Debtors generally are current on their payment obligations
under the leases and contracts and Debtor DMD C is accruing
postpetition rent payable to its landlord, PP Omni Ventures, LLC,
in DMD C's debtor-in-possession bank account.
The Debtors propose to sell the Debtor Restaurants along with the
NonDebtor Restaurants at an auction to be conducted by undersigned
counsel on a date
to be determined.
The Debtors believe that the proposed Bidding Procedures are fair,
reasonable, and calculated to maximize the value of the Debtors’
assets and create a competitive sale environment.
About DMD Florida Development 2, LLC
DMD Florida Development 2, LLC and its affiliates, DMD Florida
Restaurant Group C LLC, and DMD Florida Restaurant Group D, LLC,
filed Chapter 11 petitions (Bankr. S.D. Fla. Lead Case No.
25-10088) on January 6, 2025. Jack Flechner, manager and co-chief
executive officer, signed the petitions.
At the time of the filing, each Debtor reported $500,001 to $1
million in assets and $10 million to $50 million in liabilities.
Judge Scott M. Grossman oversees the cases.
The Debtors tapped Wernick Law, PLLC as counsel and GGG Partners
LLC as financial advisor.
DON ENTERPRISES: Seeks Subchapter V Bankruptcy in Pennsylvania
--------------------------------------------------------------
On February 17, 2025, DON Enterprises Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Western District
of Pennsylvania.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About DON Enterprises Inc.
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.
DON Enterprises Inc. sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-20379) on
February 17, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
The Debtor is represented by:
Kathryn L. Harrison, Esq.
CAMPBELL & LEVINE, LLC
310 Grant Street, Suite 1700
Pittsburgh, PA 15219
Tel: 412-261-0310
Fax: 412-261-5066
DOVETAIL DEVELOPMENT: Amends Sherwood & Civista Secured Claims
--------------------------------------------------------------
Dovetail Development Ltd. submitted a Second Amended Chapter 11
Plan dated February 10, 2025.
In the year 2023, as part of accounting changes implemented by the
Debtor, the financial statements were separated with Birdstone,
Inc. In the year 2023, the Debtor experienced a net profit from
operations of $39,164.
In addition to the accounting change, the Debtor also anticipates
that has part of its ongoing plan in this case it will include if
necessary the consideration of liquidation of certain parcels to
reduce lender debt and as noted owns unencumbered real property
with a value of $1,052,285.
Based on the foregoing, the Debtor believed that during the course
of the five-year term of this Plan, it would continue to experience
increases in net profit in a similar fashion as 2024 and 2023 and
has projected disposable income to meet the terms of the Plan
without further reorganization. The 5-year projection (the duration
of the proposed Plan) includes the proposed distributions to each
Class of Creditors.
However, subsequently to the filing of the Amended Plan on November
19, 2024, the Debtor began to incur short fall in the collection of
monthly rents and as a result, the Debtor determined that it would
be prudent to liquidate property to reduce, if not fully satisfy
creditors. As a result, the Debtor retained a real estate broker to
list and sell real property. (Motion to Sell – Doc. No. 99, Order
Authorizing Order to Sell – Doc. No. 129 and Order Granting
Application to Employ Matthew J Joost, Realtor/Broker Doc. No.
130.) This transaction is scheduled to close by February 22, 2025.
This Plan of Reorganization proposes to pay creditors of the
Debtors from their Disposable Income and possible liquidation and
or refinance of some claims of creditors during the term of this
Plan.
Class 3 consists of the Secured Claim of Sherwood State Bank. The
Debtor would acknowledge the Sherwood claims set forth under
subparagraph A and had previously agreed to modifications and
treatment for the same. 3 The following plan treatment is
substituted for such prior proposed treatment.
* The Debtor agrees that it will not object to the proofs of
claim filed by Sherwood for Loan Nos. 1 and 2, provided, however,
that the post-petition interest rate shall be set at 10%.
* The Debtor agrees that it will not object to Sherwood's
proof of claims for Loan Nos. 3, 4 and 5 based on a current
principal balance of $251,589.82, plus interest at a post-petition
rate of 10% and late charges.
* The Debtor agrees to maintain the monthly payments due on
each loan commencing March 1, 2025.
* The Debtor agrees that from the Unencumbered Properties set
forth in the Designated Assets, Sherwood would receive the first
$200,000.00 and shall pay the balance of all claims of Sherwood, no
later than May 31, 2025.
Class 8 consists of the Secured Claim of Civista Bank. The Debtor
would adopt the treatment under the Griffiths Plan with the
following agreed changes:
* The Debtor shall bring current the delinquent payments owing
to Civista Bank by December 1, 2024, which delinquent payments
total $17,630.29;
* The Debtor shall resume making the regular monthly payments,
by December 1, 2024;
* Civista is willing to agree to a modification to the terms
of the plan in this case to cause the reset of the interest rate
every six months rather than one year as provided in the prior
Griffiths' Plans, at New York prime + 1.0. and the new restart date
would be January 28, 2025 for all loans and then every six months
thereafter, on July 28, 2025 and so forth.
* At the current interest rate, the total monthly payment (not
including any late fees) is $11,712.01.
Class 9 consists of General Unsecured Claims. At present, the
Debtor is not aware of any claims in this Class.
The Plan will be implemented and funded through three sources:
* The Debtors' Disposable Income; and
* The liquidation of the Debtor's selected real property, or
* Refinancing.
A full-text copy of the Second Amended Plan dated February 10, 2025
is available at https://urlcurt.com/u?l=bXk8nc from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Steven L. Diller, Esq,
DILLER & RICE
124 E. Main Street
Van Wert, Ohio 45891
Phone: (419) 238-5025
Facsimile: (419) 238-4705
Email: steven@drlawllc.com
About Dovetail Development
Dovetail Development Ltd. is a limited liability company formed in
1999.
Dovetail Development sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-30828) on May 1,
2024, with up to $50,000 in assets and up to $500,000 in
liabilities.
Judge John P. Gustafson presides over the case.
Steven L. Diller, Esq., at Diller and Rice, LLC, is the Debtor's
legal counsel.
DRW HOLDINGS: S&P Affirms 'BB-' Long-Term ICR, Outlook Stable
-------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' long-term issuer credit and
issue ratings on DRW Holdings LLC (DRW) and its senior secured
debt. The outlook on the issuer credit rating remains stable.
The affirmation reflects DRW's successful, and diversified
principal trading and investing business, adequate capitalization,
and good, albeit lower-than-peer profitability. S&P believes the
firm's operational risk, dependence on short-term financing, and
reliance on transactional principal trading revenue partially
offset the strengths.
DRW has a solid trading franchise, with strong market share in
several major liquid options and futures products. However, its
business relies on higher-risk and potentially more volatile
principal trading and investing revenue. The firm makes markets and
conducts other principal trading of many asset classes and trading
instruments, with its primary products including interest rate
futures and options, foreign exchange options, cryptocurrency
assets, exchange-traded funds, equity index futures and options,
and agricultural product and energy futures and options. The firm
is more heavily weighted in rates trading and less in equity than
most high-frequency trading peers.
DRW also invests in private venture capital and invests in and
develops commercial real estate (CRE), which adds some diversity
(5%-10% of net revenue) but also increases risk. While the CRE
business has performed well, DRW is working to reduce the CRE
portfolio to allocate more capital to the higher-margin trading
business.
S&P said, "We believe the company has adequate capitalization to
cover market risk. While the risk-adjusted capital (RAC) ratio
declined in the second half of last year to 7.6% as of Sept. 30,
2024, we expect it to remain supportive of the rating at above 7%.
We also expect capital growth from earnings retention will remain
commensurate with the growth in trading operations."
DRW's relatively large capital base is a competitive advantage over
many smaller market-making and trading firms. The firm operates
with a sizable balance sheet, typically of mostly government
securities as well as equities and fixed-income securities and
derivatives, which require considerable equity to offset the
resulting margin requirements and market risk.
Since DRW's trading revenue is not as correlated with the
volatility of U.S. equity markets as that of most rated peers, the
company had good, but not as strong, results in 2024 relative to
competitors. That said, the diversity of DRW's trading asset
classes, strategies, and geographies, as well as nontrading
businesses, has helped limit volatility in results and the number
and severity of loss days relative to some peers.
Like all electronic trading firms, DRW has elevated operational
risk because it relies on complex algorithms and automated risk
management functions. S&P believes this risk is not fully
reflected in its RAC ratio's operational risk-weighted assets
(RWAs). Nevertheless, DRW's scale gives it the resources to develop
and support its own programming and technology, including
safeguards that can lower the probability of material operational
events.
S&P views funding as a relative weakness, given the firm's reliance
on short-term funding. Although highly liquid government-related
securities are typically the majority of trading inventory, the mix
and amount of securities and the amount of required margin (posted
to prime brokers) can be volatile from period to period depending
on market conditions. This has led to volatility in the firm's
gross stable funding ratio (GSFR) and margin to net trading capital
ratio. The company upsized its term loan by $250 million in
December 2024, boosting total long-term debt to $1.15 billion,
which provides additional stable funding to support further
growth.
S&P said, "We assess liquidity as adequate and view favorably the
expansion of contingent liquidity sources, which include some
committed lines to finance traded products, among them financial
instruments and physical commodities. DRW's ratio of required
margins (less the amount of prime broker affiliate lines used to
meet the additional central counterparty [CCP] margin) to net
trading capital was 55% as of Sept. 30, 2024. This indicates
sufficient flexibility to meet contingent needs, including margin
calls. However, market conditions also affect the ratio, and it is
likely to increase in periods of rising volatility. Moreover,
including the additional margin from separate CCPs that DRW can
meet with short-term lines of credit from its prime brokers, the
ratio can sometimes be over 70%, indicating less flexibility to
meet contingent liquidity needs if access to the prime brokers'
lines is curtailed.
"The stable outlook reflects S&P Global Ratings' expectation that
while DRW's balance sheet, risk exposure, and margin requirements
may be volatile, the firm will maintain good operating performance,
a RAC ratio above 7%, and supportive liquidity. We expect total
commercial real estate (CRE) investments to decline, with total
exposure to CRE and private equity investments to remain not
materially above 50% of total adjusted capital. We also expect
nonregulated entities to continue to account for most of the firm's
earnings and resources, while the holding company maintains
liquidity sufficient to meet two years of debt service
obligations."
Over the next 12 months, S&P could lower our ratings if it
expects:
-- The RAC ratio to fall consistently below 7%;
-- Required margin (excluding prime broker lines used to meet
additional CCP margin) to total net trading capital to be
consistently above 70%, or the firm's liquidity to otherwise
weaken;
-- Capital or liquidity outside of regulated entities to fall
dramatically or holding company liquidity to deteriorate;
-- The performance or asset quality of the CRE portfolio to
deteriorate materially; or
-- Material operational risk issues or losses to arise.
Over the same time frame, S&P could raise its ratings if it expects
the company to:
-- Maintain a RAC ratio well above 10%;
-- Successfully sell down more of its CRE portfolio; and
-- Improve funding to reduce the volatility of its GSFR, while
strengthening liquidity.
DVKOCR TIGARD: Sec. 341(a) Meeting of Creditors on March 18
-----------------------------------------------------------
On February 3, 2025, DVKOCR Tigard LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the District of Oregon. According
to court filing, the Debtor reports between $10 million and $50
million in debt owed to 1 and 49 creditors. The petition states
funds will be available to unsecured creditors.
A meeting of creditors under Section 341(a) to be held on March 18,
2025 at 12:00 PM via Telephone (UST). Dial 866-564-0532, passcode
8835427.
About DVKOCR Tigard LLC
DVKOCR Tigard LLC is a single asset real estate debtor, as defined
in 11 U.S.C. Section 101(51B).
DVKOCR Tigard LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Or. Case No.: 25-30486) on February 3,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million.
Honorable Bankruptcy Judge Peter C. Mckittrick handles the
case.
The Debtor is represented by:
Douglas R. Ricks, Esq.
SUSSMAN SHANK LLP
1000 SW Broadway, Suite 1400
Portland, OR 97205
Tel: 503-227-1111
E-mail: dricks@sussmanshank.com
EAGLE HIGHLAND: Seeks Chapter 11 Bankruptcy in Indiana
------------------------------------------------------
On February 17, 2025, Eagle Highland Pharmacy Inc. filed Chapter
11 protection in the U.S. Bankruptcy Court for the Southern
District of Indiana. According to court filing, the
Debtor reports $1,037,805 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Eagle Highland Pharmacy Inc.
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.
Eagle Highland Pharmacy Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 25-00691) on
February 17, 2025. In its petition, the Debtor reports total assets
of $147,900 and total liabilities of $1,037,805.
Honorable Bankruptcy Judge James M. Carr handles the case.
The Debtor is represented by:
Harley K. Means, Esq.
KROGER, GARDIS & REGAS, LLP
111 Monument Circle, Suite 900
Indianapolis, IN 46204
Tel: 317-692-9000
Fax: 317-264-6832
ELETSON HOLDINGS: Reed Smith Removed as Counsel from $102MM Suit
----------------------------------------------------------------
Bonnie Eslinger of Law360 reports that a New York federal judge
approved a request from the alleged new owners of Eletson Holdings
Inc., removing Reed Smith LLP as legal counsel in a $102 million
breach of contract lawsuit the firm filed on behalf of the
international shipping group in 2023.
About Eletson Holdings
Eletson Holdings Inc. is a family-owned international shipping
company, which touts itself as having a global presence with
headquarters in Piraeus, Greece as well as offices in Stamford,
Connecticut, and London.
At one time, Eletson claimed to own and operate one of the world's
largest fleets of medium and long-range product tankers and boasted
a fleet consisting of 17 double hull tankers with a combined
capacity of 1,366,497 dwt, 5 LPG/NH3 carriers with a combined
capacity of 174,730 cbm and 9 LEG carriers with capacity of 108,000
cbm.
Eletson Holdings, a Liberian company, is Eletson's ultimate parent
company and is the direct parent and owner of 100% of the equity
interests in the two other debtors, Eletson Finance (US) LLC, and
Agathonissos Finance LLC.
Eletson and its two affiliates were subject to involuntary Chapter
7 bankruptcy petitions (Bankr. S.D.N.Y. Case No. 23-10322) filed on
March 7, 2023 by creditors Pach Shemen LLC, VR Global Partners,L.P.
and Alpine Partners (BVI), L.P. The petitioning creditors are
represented by Kyle J. Ortiz, Esq., at Togut, Segal & Segal, LLP.
On Sept. 25, 2023, the Chapter 7 cases were converted to Chapter 11
cases.
The Honorable John P. Mastando, III is the case judge.
Derek J. Baker, Esq., represents the Debtors as bankruptcy
counsel.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors. The committee tapped Dechert, LLP as its legal
counsel.
ENGINEERING RECRUITING: Gets Extension to Access Cash Collateral
----------------------------------------------------------------
Engineering Recruiting Experts, LLC received third interim approval
from the U.S. Bankruptcy Court for the Middle District of Florida
to use the cash collateral of the U.S. Small Business
Administration to pay its expenses.
The SBA asserts an interest in the company's cash and accounts
receivable, which constitute cash collateral. The company owes the
lender approximately $135,000.
As protection, the SBA was granted a replacement lien to the same
extent and with the same priority as its pre-bankruptcy lien. In
addition, the lender will receive a monthly payment of $2,500.
The company's authority to use cash collateral terminates
immediately upon conversion of its bankruptcy case to Chapter 7,
cessation of business operations, dismissal of the case, or default
in payments.
The final hearing is scheduled for April 24.
About Engineering Recruiting Experts
Engineering Recruiting Experts, LLC filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D.
Fla. Case No. 24-03292) on Oct. 29, 2024, listing $100,001 to
$500,000 in assets and $1 million to $10 million in liabilities.
Judge Jason A Burgess presides over the case.
Bryan K. Mickler, Esq. at Mickler & Mickler represents the Debtor
as counsel.
EQUINIX INC: Egan-Jones Retains BB- Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on February 4, 2025, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by Equinix, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Redwood City, California, Equinix, Inc. operates
as a real estate investment trust.
ERION REAL ESTATE: Holly Smith Miller Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Holly Smith Miller,
Esq., at Gellert Scali Busenkell & Brown, LLC as Subchapter V
trustee for Erion Real Estate Investors, LLC.
Ms. Miller will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Miller declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Holly S. Miller, Esq.
Gellert Scali Busenkell & Brown, LLC
1628 John F. Kennedy Boulevard, Suite 1901
Philadelphia, PA 19103
Telephone: (215) 238-0012
Facsimile: (215) 238-0016
Email: hsmiller@gsbblaw.com
About Erion Real Estate Investors
Erion Real Estate Investors, LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. E.D. Pa. Case No. 25-10459) on
February 3, 2025, listing up to $50,000 in both assets and
liabilities.
Judge Ashely M. Chan presides over the case.
Michael Gumbel, Esq., at Bainbridge Law Center represents the
Debtor as bankruptcy counsel.
ESSEX TECHNOLOGY: Hires Burr & Forman LLP as Counsel
----------------------------------------------------
Essex Technology Group, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Tennessee to employ Burr & Forman
LLP as counsel.
The firm's services include:
a. advising the Debtor with respect to its powers and duties as
Debtor in possession in the continued management and operation of
its business and properties;
b. advising and consulting on the conduct of this Chapter 11
case, including all of the legal and administrative requirements of
operating in Chapter 11;
c. attending meetings and negotiating with representatives of
creditors and other parties in interest;
d. taking all necessary actions to protect and preserve the
Debtor's estate, including prosecuting actions on the Debtor's
behalf, defending any action commenced against the Debtor, and
representing the Debtor in negotiations concerning litigation in
which the Debtor is involved, including objections to claims filed
against the Debtor's estate;
e. preparing pleadings in connection with this Chapter 11 case,
including motions, applications, answers, orders, reports, and
papers necessary or otherwise beneficial to the administration of
the Debtor's estate;
f. representing the Debtor in connection with obtaining
authority to continue using cash collateral and postpetition
financing;
g. advising the Debtor in connection with any potential sale of
assets;
h. appearing before the Court and any appellate courts to
represent the interests of the Debtor's estate;
i. advising the Debtor regarding tax matters;
j. taking any necessary action on behalf of the Debtor to
negotiate, prepare, and obtain approval of a disclosure statement
and confirmation of a Chapter 11 plan and all documents related
thereto; and
k. performing all other necessary legal services for the Debtor
in connection with the prosecution of this Chapter 11 case.
The firm will be paid at these rates:
Partners $500 to $965 per hour
Of Counsel $475 to $625 per hour
Associates $350 to $535 per hour
Paralegals $150 to $450 per hour
On January 29, 2025, the Debtor paid the firm a retainer in the
amount of $25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David W. Houston, IV, Esq., a partner at Burr & Forman, LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
David W. Houston, IV, Esq.
Burr & Forman, LLP
222 2nd Ave. S., Ste. 2000
Nashville, TN 37201
Tel: (615) 724-3215
Email: dhouston@burr.com
About Essex Technology Group, LLC
Essex Technology Group, LLC is a retail chain operating 91 stores
across 10 states. The company is based in Antioch, Tenn., and
operates under the name Bargain Hunt.
Essex Technology Group filed Chapter 11 petition (Bankr. M.D. Tenn.
Case No. 25-00452) on February 3, 2025, listing between $10 million
and $50 million in assets and between $50 million and $100 million
in liabilities. Rob Hubbard, chief restructuring officer of Essex,
signed the petition.
Judge Nancy B. King oversees the case.
David W. Houston, IV, Esq., at Burr & Forman LLP, represents the
Debtor as legal counsel.
ESSEX TECHNOLOGY: Hires McDonald Hopkins LLC as Counsel
-------------------------------------------------------
Essex Technology Group, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Tennessee to employ McDonald
Hopkins LLC as counsel.
The firm's services include:
a. advising the Debtor with respect to its powers and duties as
Debtor in possession in the continued management and operation of
its business and properties;
b. advising and consulting on the conduct of this chapter 11
case, including all of the legal and administrative requirements of
operating in chapter 11;
c. attending meetings and negotiating with representatives of
creditors and other parties in interest;
d. taking all necessary actions to protect and preserve the
Debtor's estate;
e. preparing pleadings in connection with this chapter 11 case,
including motions, applications, answers, orders, reports, and
papers necessary or otherwise beneficial to the administration of
the Debtor's estate;
f. representing the Debtor in connection with obtaining
authority to continue using cash collateral and postpetition
financing;
g. advising the Debtor in connection with any potential sale of
assets;
h. appearing before the Court and any appellate courts to
represent the interests of the Debtor's estate;
i. advising the Debtor regarding tax matters;
j. taking any necessary action on behalf of the Debtor to
negotiate, prepare, and obtain approval of a disclosure statement
and confirmation of a chapter 11 plan and all documents related
thereto; and
k. performing all other necessary legal services for the Debtor
in connection with the prosecution of this Chapter 11 case.
The firm will be paid at these rates:
Members $420 to $1,060 per hour
Of Counsel $475 to $1,010 per hour
Associates $295 to $620 per hour
Paralegals $215 to $440 per hour
On January 16, 2025, the Debtor paid $75,000 to the firm as advance
retainer.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The following is provided in response to the request for additional
information set forth in Paragraph D.1. of the Revised U.S. Trustee
Guidelines:
a. Question: Did McDonald Hopkins agree to any variations from,
or alternatives to, McDonald Hopkins' standard billing arrangements
for this engagement?
Answer: Yes. McDonald Hopkins agreed to a discounted rate for
two of its lawyers, Sean Malloy and Michael Kaczka, at $795 and
$695 per hour, respectively. Other than that, McDonald Hopkins and
the Debtor have not agreed to any variations from, or alternatives
to, McDonald Hopkins' standard billing arrangements for this
engagement. The rate structure provided by McDonald Hopkins is
appropriate and is not significantly different from (a) the rates
that McDonald Hopkins charges for other non-bankruptcy
representations or (b) the rates of other comparably skilled
professionals.
b. Question: Do any of the McDonald Hopkins professionals in
this engagement vary their rate based on the geographic location of
the Debtor's chapter 11 case?
Answer: No. The hourly rates used by McDonald Hopkins in
representing the Debtor are consistent with the rates that McDonald
Hopkins would charge other comparable chapter 11 clients,
regardless of the location of the chapter 11 case.
c. Question: If McDonald Hopkins has represented the Debtor in
the 12 months prepetition, disclose McDonald Hopkins' billing rates
and material financial terms for the prepetition engagement,
including any adjustments during the 12 months prepetition. If
McDonald Hopkins' billing rates and material financial terms have
changed postpetition, explain the difference and the reasons for
the difference.
Answer: McDonald Hopkins' current hourly rates for services
rendered on behalf of the Debtor in the 19-day prepetition period
range as follows:
Billing Category Range
Members $420-$1,060 per hour
Of Counsel $475-$1,010 per hour
Associates $295-$620 per hour
Paralegals $215-$440 per hour
d. Question: Has the Debtor approved McDonald Hopkins' budget
and staffing plan, and, if so, for what budget period?
Answer: Yes, for the period of February 8, 2025 – May 3,
2025.
Sean D. Malloy, Esq., a partner at McDonald Hopkins LLC, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Sean D. Malloy, Esq.
Michael J. Kaczka, Esq.
McDonald Hopkins LLC
600 Superior Avenue, E., Suite 2100
Cleveland, Ohio 44114
Tel: (216) 348-5400
Email: smalloy@mcdonaldhopkins.com
mkaczka@mcdonaldhopkins.com
About Essex Technology Group, LLC
Essex Technology Group, LLC is a retail chain operating 91 stores
across 10 states. The company is based in Antioch, Tenn., and
operates under the name Bargain Hunt.
Essex Technology Group filed Chapter 11 petition (Bankr. M.D. Tenn.
Case No. 25-00452) on February 3, 2025, listing between $10 million
and $50 million in assets and between $50 million and $100 million
in liabilities. Rob Hubbard, chief restructuring officer of Essex,
signed the petition.
Judge Nancy B. King oversees the case.
David W. Houston, IV, Esq., at Burr & Forman LLP, represents the
Debtor as legal counsel.
FIBERCO GENERAL: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Fiberco General Engineering Contractors, Inc
12155 Magnolia Ave. #3B
Riverside CA 92503
Business Description: Fiberco General Engineering Contractors,
Inc., established in 1995, is a general
engineering contractor based in Riverside,
California. The Company specializes in
utility system construction and heavy and
civil engineering projects.
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-10912
Judge: Hon. Scott H Yun
Debtor's Counsel: Michael R. Totaro, Esq.
TOTARO & SHANAHAN, LLP
P.O. Box 789
Pacific Palisades CA 90272
Tel: (310) 804-2157
E-mail: Ocbkatty@aol.com
Total Assets: $2,451,262
Total Liabilities: $2,989,654
The petition was signed by David Zuniga as president.
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/EDL7QKY/Fiberco_General_Engineering_Contractors__cacbke-25-10912__0001.0.pdf?mcid=tGE4TAMA
FINEST COACHBUILDING: Gets OK to Use $237,500 in DIP Loan Funds
---------------------------------------------------------------
Finest Coachbuilding Group, LLC got the green light from the U.S.
Bankruptcy Court for the District of Delaware to draw the remaining
$237,500 under the $750,000 debtor-in-possession facility.
The order signed by Judge John Dorsey on Feb. 18 authorized the
company to use the remaining amount under the DIP facility pursuant
to the new budget.
The new budget shows total operating disbursements of $397,355 and
total restructuring disbursements of $46,000 for the period from
the week ending Jan. 17 through the week ending April 11.
The Feb. 18 order also authorized, on a final basis, the use of
cash collateral during the period in
accordance with the new budget, with a 15% variance.
The same order authorized Finest Coachbuilding Group to pay $50,000
to Pastor Velasco, subject to clawback in the event his asserted
lien is declared invalid, avoided, or otherwise unenforceable; and
grant him a replacement lien on the company's post-petition
property, including cash and non-cash proceeds.
About Finest Coachbuilding Group
Finest Coachbuilding Group, LLC, doing business as Radford Motors,
specializes in the creation of bespoke, luxury vehicles. It is
based in Costa Mesa, Calif.
Finest Coachbuilding Group filed Chapter 11 petition (Bankr. D.
Del. Case No. 24-12327) on October 10, 2024, listing between $1
million and $10 million in both assets and liabilities. Daniel
Bednarski, chief financial officer and chief operating officer,
signed the petition.
Judge John T. Dorsey handles the case.
The Debtor tapped Mark W. Eckard, Esq., at Raines Feldman Littrell,
LLP as legal counsel and Force Ten Partners, LLC as financial
advisor.
FIT FOR THE RED: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Fit for the Red Carpet LLC
34 N. Hawkins, Space 305
Akron, OH 44313
Business Description: Fit for the Red is a company that offers
personal services.
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Northern District of Ohio
Case No.: 25-50238
Judge: Hon. Alan M Koschik
Debtor's Counsel: Marc B. Merklin, Esq.
ROETZEL & ANDRESS, LPA
222 S. Main St., Suite 400
Akron, OH 44308
Tel: 330-376-2700
E-mail: mmerklin@ralaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Rhonda Stark as owner.
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/4EXIXJQ/Fit_for_the_Red_Carpet_LLC__ohnbke-25-50238__0001.0.pdf?mcid=tGE4TAMA
FIT FOR THE RUNWAY: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Fit for the Runway LLC
4342 Belden Village St. NW
Canton, OH 44718
Business Description: Fit for the Runway LLC is a privately held
company that operates in the personal
services industry.
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Northern District of Ohio
Case No.: 25-50239
Judge: Hon. Alan M Koschik
Debtor's Counsel: Marc B. Merklin, Esq.
ROETZEL & ANDRESS, LPA
222 S. Main St., Suite 400
Akron, OH 44308
Tel: 330-376-2700
E-mail: mmerklin@ralaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Rhonda Stark as owner.
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/4EWTJZA/Fit_for_the_Runway_LLC__ohnbke-25-50239__0001.0.pdf?mcid=tGE4TAMA
FLOOR RESOURCES: Court Affirms Ruling in Tax Dispute
----------------------------------------------------
In the appealed case captioned as CHRISTOPHER GILL,
Plaintiff-Appellant, v. DIRECTOR, DIVISION OF TAXATION,
Defendant-Respondent, Case No. A-3116-22 (N.J. Super. Ct. App.
Div.), Judges Lisa Firko, Avios Bishop-Thompson and Lorraine
Augostini affirmed the order of the Tax Court of New Jersey
denying, in part, plaintiff Christopher Gill's motion for summary
judgment and granting, in part, defendant Division of Taxation's
motion for summary judgment in a dispute over the unpaid taxes of
the Debtor.
This tax appeal presents an issue of first impression: whether the
four-year limitation period governing the additional assessment of
the Sales and Use Tax applies to the issuance of a Notice of
Finding of Responsible Person (Responsible Person Notice) for SUTs
that a corporation has acknowledged it owed.
Plaintiff was the vice president and sole shareholder of Floor
Resources, Inc., a New Jersey commercial floor company engaged in
installation and demolition services. He acknowledged that, during
the relevant tax years, he was the person most familiar with the
business operations of the corporation, had ultimate
decision-making authority, and oversaw all financial aspects of the
company. He was responsible for filing the gross income
tax-employer withholding returns and SUT returns and to withhold
and pay the taxes associated with these returns.
Plaintiff acknowledges that under his direction, Floor Resources
filed, albeit late, the SUT returns (Form ST-50) for the second
quarter of 2012 (April to June); the second quarter of 2013 (April
to June); and the third quarter of 2013 (July to September). Floor
Resources failed to remit a portion of the self-assessed taxes
reported on these forms.
On Aug. 8, 2013, Floor Resources filed for voluntary reorganization
under Chapter 11 of the United States Bankruptcy Code. Plaintiff
signed the requisite documents supporting the bankruptcy filing and
listed the business's creditors. Taxation was listed as a creditor
with priority claims in the bankruptcy proceeding, which included
deficiencies for the GIT-ERs, and SUT returns. Specifically,
Taxation submitted a priority proof of claim in the amount of
$70,088.57 and a secured proof of claim in the amount of
$109,494.07 in the Chapter 11 proceeding.
On July 29, 2014, the Chapter 11 bankruptcy matter was converted to
a Chapter 7 liquidation. On Nov. 29, 2016, a final decree was
entered by the bankruptcy court. The State of New Jersey (State)
did not receive any payment toward its claims.
On March 15, 2019, Taxation issued a Responsible Person Notice
against plaintiff for the unpaid, self-assessed trust fund
liabilities of Floor Resources. On June 11, 2019, plaintiff filed
an administrative protest, contending that the assessments were
barred by the statute of limitations. On Dec. 16, 2020, Taxation
issued a final determination, upholding the Responsible Person
Notice based upon the liabilities in this case being self-reported
tax liabilities and related penalty and interest. Taxation found
plaintiff, as the responsible person, jointly and severally liable
for Floor Resources' unpaid taxes.
On March 12, 2021, plaintiff filed a complaint with the Tax Court,
contesting Taxation's final determination and the timeliness of
Taxation's issuance of the Responsible Person Notice. As Tax Court
Judge Kathi F. Fiamingo noted, plaintiff did not contest the
underlying determination of responsible party status or the amount
of the SUT liabilities. Plaintiff filed a motion for summary
judgment, and Taxation filed opposition and a cross-motion for
summary judgment.
In a May 1, 2023, order, the judge granted in part and denied in
part plaintiff's motion and Taxation's cross-motion for summary
judgment, voiding the assessment of the penalty issued against
plaintiff for the GIT-ERs and affirming the SUT against plaintiff.
In a comprehensive accompanying opinion, the judge reasoned that
based upon the clear language of the Sales and Use Tax Act, (SUTA),
N.J.S.A. 54:32B-1 to -55, there is no time limitation on the filing
of a Responsible Person Notice because the filing of the return,
thus self assessing the tax at issue, is known to the responsible
person, as is the duty to
act. This appeal follows.
On appeal, plaintiff argues the judge erred in granting summary
judgment to Taxation because:
(1) she conflated the issue of a separate notice requirement
with the issue of the applicability of a statute of limitations;
(2) her interpretation of the statute obviates the legislative
intent behind N.J.S.A. 54:32B-27(b);
(3) she failed to consider that the application of N.J.S.A.
54:32B-2(w) and -14(a) as a procedural tool to "pierce the
corporate veil";
(4) she failed to abide by the holdings in Lauckner v. United
States, 68 F.3d 69 (3d Cir. 1995); and
(5) she failed to consider the inequity of no statute of
limitations.
Plaintiff contends that a Responsible Person Notice is an
assessment of the SUT owed by the corporation because it is the
first time Taxation determines that the individual is personally
liable for the tax. He further argues the notice must be served no
later than four years following the filing date of the returns.
Amicus Taxpayer for Center Rights concurs and argues that Taxation
is required to give notice to an alleged responsible person of
liability within four years of the filing of the SUT return
pursuant to the Taxpayers' Bill of Rights, codified in pertinent
part at N.J.S.A. 54:49-6 and N.J.S.A. 54:32B-27(b).
The Appellate Judges conclude that the Responsible Person Notice is
a collection tool for a previously determined, fixed, and final tax
liability assessed against the business and not an additional
assessment. Therefore, they agree with the tax judge's
determination that the issuance of a Responsible Person Notice for
liability of SUT is not subject to a limitations period.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=CDYHJj
Floor Resources, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 13-27486) on Aug. 8,
2013. At the time of filing, the Debtor disclosed up to $500,000
in assets and up to $10 million in liabilities. Christopher Gill,
vice president, signed the petition.
Judge Judith H. Wizmur oversaw the case.
The Debtor tapped Douglas S. Stanger, Esq. Flaster/Greenberg, P.C.
- Linwood as bankruptcy counsel.
The case was converted to Chapter 7 on July 29, 2014.
FLUENT INC: JB Capital Partners, Alan Weber Hold 7.3% Stake
-----------------------------------------------------------
JB Capital Partners, L.P. and Alan W. Weber disclosed in a Schedule
13G/A filed with the U.S. Securities and Exchange Commission that
as of December 31, 2024, they beneficially owned 1,406,982 shares
of Fluent, Inc.'s common stock, representing a 7.3% of the shares
outstanding.
JB Capital Partners may be reached at:
Alan W. Weber/General Partner
5 Evans Place
Armonk, New York 10504
Tel: 914-273-4866
A full-text copy of JB Capital Partners' SEC Report is available
at:
https://tinyurl.com/thfe9res
About Fluent Inc.
Fluent, Inc. -- https://www.fluentco.com -- is a digital marketing
services company specializing in customer acquisition. The Company
operates highly scalable digital marketing campaigns that connect
advertiser clients with their target consumers. The Company's
services leverage both its owned and operated digital media
properties and auxiliary syndicated performance marketplace
products. In 2023, the Company delivered data-driven,
performance-based customer acquisition services for over 500
consumer brands, direct marketers, and agencies across various
industries, including Media & Entertainment, Financial Products &
Services, Health & Life Sciences, Retail & Consumer, and Staffing &
Recruitment.
Fluent said in its Quarterly Report on Form 10-Q for the period
ended Sept. 30, 2024, that "Based on current projections, the
Company expects to be in compliance with the new financial
covenants for each of the quarters in the 12 months following the
issuance date of this Quarterly Report on Form 10-Q. However, the
Company has not met its projections for certain recent quarters, so
there can be no assurance that the Company will meet its
projections in the future. If during any fiscal quarter, the
Credit Parties do not comply with any of their financial covenants,
such non-compliance would result in an event of default that would
give SLR the right to accelerate maturities. Additionally, if the
Company fails to raise capital in at least the amount required
under the Third Amendment by November 29, 2024, such failure would
also result in an event of default. In such case, the Company
would not have sufficient funds to repay the SLR Term Loan ... and
the SLR Revolver...In addition, even if the Company is able to
raise additional capital as required by the Third Amendment, there
is no assurance that such capital plus the available cash plus
borrowing base on the SLR Revolver will be sufficient to fund
operations over the next 12 months. If needed, the Company will
consider implementing other cost-saving measures, but there is no
guarantee that such plans would be successfully executed or have
the expected benefits. As a result, management concluded that
there is substantial doubt about the Company's ability to continue
as a going concern for one year after the date of this Quarterly
Report on Form 10-Q."
As of Sept. 30, 2024, Fluent Inc. had $95.95 million in total
assets, $75.97 million in total liabilities, and $19.98 million in
total shareholders' equity.
G7 VENICE: Seeks Chapter 11 Bankruptcy in California
----------------------------------------------------
On February 18, 2025, G7 Venice LLC filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Central District of California.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About G7 Venice LLC
G7 Venice LLC is a limited liability company.
G7 Venice LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. C.D. Cal.Case No. 25-11189) on February 18, 2025. In
its petition, the Debtor reports estimated assets between $500,000
and $1 million and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Vincent P. Zurzolo handles the case.
The Debtor is represented by:
David B. Golubchik, Esq.
LEVENE, NEALE, BENDER, YOO & GOLUBCHIK LLP
2818 La Cienega Ave.
Los Angeles, CA 90034
Tel: (310) 229-1234
GABHALTAIS TEAGHLAIGH: Hires Joseph G. Butler as Counsel
--------------------------------------------------------
Gabhaltais Teaghlaigh LLC seeks approval from the U.S. Bankruptcy
Court for the District of Massachusetts to employ Law Office of
Joseph G. Butler as substitute counsel, replacing David G. Baker.
The firm will provide these services:
a. review security interests and all other documents relating
to the Debtor's assets;
b. represent the Debtor concerning all matters relating to the
sale of any and all assets; and to represent the Debtor at all
hearings in connection therewith;
c. review and litigate, if necessary, any avoidance actions
and actions to recover property;
d. litigate, if necessary, any claims which the Debtor
determines to be disputed or unenforceable, or to otherwise merit
disposition by the Bankruptcy Court;
e. represent the Debtor in obtaining confirmation of a plan of
reorganization; and
f. perform any and all other bankruptcy-related legal tasks
relating to this case that may subsequently arise to protect and
preserve the estate, including drafting of pleadings and attendance
at court hearings.
The firm will be paid at $375 per hour.
The firm will be paid a retainer in the amount of $10,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Joseph G. Butler, a partner at Law Office of Joseph G. Butler,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Joseph G. Butler, Esq.
Law Office of Joseph G. Butler
355 Providence Highway
Westwood, MA 02090
Email: JGB@JGButlerlaw.com
About Gabhaltais Teaghlaigh LLC
Gabhaltais Teaghlaigh, LLC, is a real estate rental company that
immediately prior to the petition date, owned 6 residential or
commercial properties.
Gabhaltais Teaghlaigh sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 22-10839) on June
15, 2022. In the petition filed by Virginia Hung, as member,
Gabaltais Teaghlaigh LLC listed under $50,000 in both assets and
liabilities.
The case is assigned to Judge Christopher J. Panos.
David G. Baker, at Baker Law Offices, is the Debtor's counsel.
GIRARD HOUSE: Plan Exclusivity Period Extended to February 28
-------------------------------------------------------------
Judge Elizabeth L. Gunn of the U.S. Bankruptcy Court for the
District of Columbia extended Girard House Cooperative, LCA's
exclusive period to file a plan of reorganization to February 28,
2025.
As shared by Troubled Company Reporter, the Debtor's property
consists of 36 units, of which roughly one third are not generating
revenue, either because they are vacant or because the occupants
are not paying the assessments for those units. The lack of revenue
from those units is the underlying cause of the Debtor's
bankruptcy.
Recognizing the hardship that its laws imposed on building owners,
in September 2024 the District of Columbia issued a request for
proposals by adversely affected properties, offering potential
supplemental financing of up to $30,000 per unit. Girard House fits
squarely within the criteria established by the City to qualify for
assistance.
Girard House may be selected for City assistance, or it may not. If
it is selected, the amount for which it may qualify could be as
much as $1,080,000, or some lesser amount. The potential assistance
could make a huge difference in the nature of a potential Chapter
11 Plan for the Debtor, considering that the Debtor's senior
secured lender claims a total of slightly less than $4.6 million.
The Debtor explains that proposing a Chapter 11 Plan based on the
assumption that the Debtor will receive assistance from the City
would be presumptuous. Proposing a Plan without any allowance for
the potential for such assistance would be derelict. With a City
decision so close at hand, it only makes sense to wait for the
outcome of that decision before proposing a Plan.
Girard House Cooperative, LCA is represented by:
David E. Lynn, Esq.
DAVID E. LYNN, P.C.
15245 Shady Grove Road, Suite 465 North
Rockville, MD 20850
Phone: (301) 255-0100
Email: davidlynn@verizon.net
About Girard House Cooperative
Girard House is a Single Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
Girard House Cooperative, LCA filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D.D.C. Case
No. 24-00260) on July 19, 2024, listing $1 million to $10 million
in both assets and liabilities. The petition was signed by Hilda
Ziegler, Board President.
Judge Elizabeth L Gunn presides over the case.
David E. Lynn, Esq., at DAVID E. LYNN, P.C., is the Debtor's
counsel.
GOTSTUFF INC: Frances Smith Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 6 appointed Frances Smith, Esq., at
Ross, Smith & Binford, PC, as Subchapter V trustee for Gotstuff,
Inc.
Ms. Smith will be paid an hourly fee of $475 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Smith declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Frances A. Smith, Esq.
Ross, Smith & Binford, PC
700 N. Pearl Street, Ste. 1610
Dallas, TX 75201
Phone: 214-593-4976
Fax: 214-377-9409
Email: frances.smith@rsbfirm.com
About Gotstuff Inc.
Gotstuff, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Texas Case No. 25-30448) on February
4, 2025, listing between $100,001 and $500,000 in both assets and
liabilities.
Judge Scott W. Everett presides over the case.
Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC
represents the Debtor as bankruptcy counsel.
GREENLEAF 2 CPE: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Greenleaf 2 CPE, LLC
1888 Century Park East, Ste 110
Los Angeles, CA 90067
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-11187
Debtor's Counsel: David B. Golubchik, Esq.
LEVENE, NEALE, BENDER, YOO & GOLUBCHIK L.L.P.
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/4AXFVNI/Greenleaf_2_CPE_LLC__cacbke-25-11187__0001.0.pdf?mcid=tGE4TAMA
GREENLEAF 4 SOCO: Case Summary & 15 Unsecured Creditors
-------------------------------------------------------
Debtor: Greenleaf 4 SOCO, LLC
3321 Hyland Ave, Suite C
Costa Mesa, CA 92626
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-10391
Judge: Hon. Theodor Albert
Debtor's Counsel: David B. Golubchik, Esq.
LEVENE, NEALE, BENDER, YOO & GOLUBCHIK L.L.P.
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 15 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/E4HXQLY/Greenleaf_4_SOCO_LLC__cacbke-25-10391__0001.0.pdf?mcid=tGE4TAMA
GRISWOLD ENTERPRISES: Tom Howley Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 7 appointed Tom Howley, Esq., at Howley
Law, PLLC as Subchapter V trustee for Griswold Enterprises, LLC.
Mr. Howley will be paid an hourly fee of $575 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Howley declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tom Howley, Esq.
Howley Law, PLLC
711 Louisiana Street, Suite 1850
Houston, TX 77002
Telephone: (713) 333-9120
Email: tom@howley-law.com
About Griswold Enterprises
Founded in 2020, Griswold Enterprises, LLC runs a Double Dave's
Pizzaworks franchise at 7312 Louetta Road, Spring, Texas. The
business serves a variety of hand-crafted pizzas, pepperoni rolls,
strombolis, salads, and desserts.
Griswold Enterprises sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 25-30707)
on February 3, 2025. In its petition, the Debtor reported up to
$50,000 in assets and between $1 million and $10 million in
liabilities.
The Debtor is represented by:
Brandon Tittle, Esq.
Tittle Law Group, PLLC
1125 Legacy Dr., Ste. 230
Frisco TX 75034
Tel: 972-213-2316
Email: btittle@tittlelawgroup.com
H6 COMPANY: Appointment of Unsecured Creditors' Committee Sought
----------------------------------------------------------------
Beach Window and Door, LLC, a creditor of H6 Company, Inc., is
seeking the appointment of an official committee that will
represent unsecured creditors in the company's Chapter 11 case.
In a motion filed with the U.S. Bankruptcy Court for the Eastern
District of North Carolina, Beach Window and Doors' attorney said
the appointment of an unsecured creditors' committee is necessary
due to "significant conflicts of interest and mismanagement" by
Michael High, H6 Company's sole owner, director and officer.
"Mr. High currently maintains authority to manage [H6 Company] in
this case despite the fact that he is subject to multiple conflicts
of interest," Oliver Carter, III, Esq., attorney at Carter &
Carter, P.A., said in the court filing.
Mr. Carter cited the non-disclosure of payments made by H6 Company
to its owner and other insiders and preferred creditors in the year
prior to the company's bankruptcy filing.
Many of these transfers are avoidable but were not disclosed in H6
Company's schedules of assets and liabilities and statement of
financial affairs, according to the attorney.
Mr. Carter also questioned the delay in the filing of H6 Company's
bankruptcy case, which was filed seven months after the company
ceased operations in April last year.
"Mr. High himself is a debtor in a case filed on May 1, 2024. He
waited until the deadline for claims and non-dischargeability APs
to pass before he filed this case, thereby hindering H6 Company's
ability to recover funds from him personally and from his preferred
creditors," the attorney said.
Mr. Carter can be reached through:
Oliver Carter, III, Esq.
Carter & Carter, P.A.
408 Market Street
Wilmington, NC 28401
(910) 763-3626
oliver@carterandcarterlaw.com
About H6 Company
H6 Company sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03976) on November 13,
2024, listing between $100,001 and $500,000 in assets and between
$1 million and $10 million in liabilities. Rebecca Redwine serves
as Subchapter V trustee.
Judge David M. Warren presides over the case.
Richard Preston Cook, Esq., at Richard P. Cook, PLLC represents the
Debtor as legal counsel.
HANDS ON PREMIUM: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Hands On Premium Car Wash, LLC
8445 Wicker Avenue
Saint John, IN 46373
Business Description: Hands On Premium Car Wash, LLC, established
in 2008, is a family-owned business in Saint
John, Indiana, offering hand car washing,
waxing, and detailing services.
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Northern District of Indiana
Case No.: 25-20255
Debtor's Counsel: Daniel L. Freeland, Esq.
DANIEL L. FREELAND & ASSOCIATES, P.C.
9105 Indianapolis Boulevard
Highland, IN 46322
Tel: 219-922-0800
Fax: 219-922-1261
Email: Dlf9601@aol.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Douglas Miller as president.
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/UIN5EUI/Hands_On_Premium_Car_Wash_LLC__innbke-25-20255__0001.0.pdf?mcid=tGE4TAMA
HANESBRANDS INC: Egan-Jones Retains B Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on January 27, 2025, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Hanesbrands, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Winston-Salem, North Carolina, Hanesbrands, Inc.
manufactures apparels and clothing products.
HAYDALE CERAMIC: Tamara Miles Ogier Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Tamara Miles Ogier, Esq.,
at Ogier, Rothschild & Rosenfeld, PC as Subchapter V trustee for
Haydale Ceramic Technologies LLC.
Ms. Ogier will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Ogier declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tamara Miles Ogier, Esq.
Ogier, Rothschild & Rosenfeld, PC
P.O. Box 1547
Decatur, GA 30031
Phone: (404) 525-4000
About Haydale Ceramic Technologies
Haydale Ceramic Technologies, LLC is a manufacturer of Silicon
Carbide (SiC) ceramic materials, boasting the largest installed
production capacity across the Americas, Europe, and the APAC
regions. Manufactured in Greer, South Carolina, the Company's
cutting tools are crafted using the highest quality SiC materials,
including particulates, fibers, and microfibers.
Haydale Ceramic Technologies LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-20159) on
February 7, 2025. In its petition, the Debtor reports estimated
assets between $1 million and $10 million and estimated liabilities
between $10 million and $50 million.
Honorable Bankruptcy Judge James R. Sacca handles the case.
The Debtor is represented by:
William Rountree, Esq.
Rountree, Leitman, Klein & Geer, LLC
2987 Clairmont Road Suite 350
Atlanta GA 30329
Tel: 404-584-1238
Email: wrountree@rlkglaw.
HEART ESTATES: Cameron McCord Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 21 appointed Cameron McCord, Esq., at
Jones & Walden, LLC, as Subchapter V trustee for Heart Estates,
LLC.
Ms. McCord will be paid an hourly fee of $500 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. McCord declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Cameron McCord, Esq.
Jones & Walden, LLC
699 Piedmont Avenue, NE
Atlanta, GA 30308
Phone: (404) 564-9300
Fax: (404) 564-9301
Email: cmccord@joneswalden.com
About Heart Estates
Heart Estates, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-51291) on February 6,
2025.
HEART OF GOLD: Hires Cunningham Chernicoff as Counsel
-----------------------------------------------------
Heart of Gold Home Care, LLC seeks approval from the U.S.
Bankruptcy Court for the Middle District of Pennsylvania to employ
Cunningham, Chernicoff & Warshawsky, P.C. as counsel.
The firm will provide these services:
a. give the Debtor legal advice regarding its powers and
duties as Debtor-in-Possession in the continued operation of its
business and management of its property;
b. prepare and file on behalf of the Debtor, as
Debtor-in-Possession, the original Petition and Schedules, and all
necessary applications, complaints, answers, orders, reports and
other legal papers; and
c. perform all other legal services for the Debtor, as
Debtor-in-Possession, which may be necessary.
The firm will be paid at these rates:
Robert E. Chernicoff $450 per hour
Partners $400 to $450 per hour
Associate Attorneys $225 to $350 per hour
Paralegals $100 to $175 per hour
The Debtor paid the firm a retainer of $6,399.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert E. Chernicoff, Esq., a partner at Cunningham, Chernicoff &
Warshawsky, P.C., disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Robert E. Chernicoff, Esq.
Cunningham, Chernicoff & Warshawsky, P.C.
2320 North Second Street
P. O. Box 60457
Harrisburg, PA 17106-0457
Tel: (717) 238-6570
About Heart of Gold Home Care, LLC
Heart of Gold Home Care, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Pa. Case No. 25-00268) on
January 31, 2025, with $500,001 to $1 million in assets and
liabilities.
Judge Mark J. Conway presides over the case.
Robert E. Chernicoff, Esq. at Cunningham And Chernicoff PC
represents the Debtor as legal counsel.
HOOPERS DISTRIBUTING: J.M. Cook Named Subchapter V Trustee
----------------------------------------------------------
Brian Behr, the U.S. Bankruptcy Administrator for the Eastern
District of North Carolina, appointed J.M. Cook as Subchapter V
trustee for Hoopers Distributing LLC.
Mr. Cook is the president and sole stockholder of J.M. Cook, P.A.,
doing business as J.M. Cook, Attorney at Law.
About Hoopers Distributing
Hoopers Distributing LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-00447) on
February 7, 2025, with $500,001 to $1 million in assets and
liabilities.
Judge Joseph N. Callaway presides over the case.
Hendren Redwine & Malone, PLLC represents the Debtor as legal
counsel.
HTP INC: Court Tosses First Merit Group, et al. Lawsuit
-------------------------------------------------------
The Honorable Barbara J. Rothstein of the United States District
Court for the Western District of Washington granted the
defendants' motion for summary judgment in the case captioned as
HTP, INC., Plaintiff, v. FIRST MERIT GROUP HOLDINGS, INC., et al.,
Defendants, Case No. 21-cv-732-BJR (W.D. Wash.).
Plaintiff HTP, Inc.brought this lawsuit against Defendants First
Merit Group Holdings, Inc., NanoGen Technologies Group, Inc., Barry
Lee, Anthony Dutton, David Richardson, and Evan Johnson, asserting
various claims arising from the parties' business relationships.
HTP claims that Defendants caused it to lose necessary financing
and business opportunities relating to its emission control
technology.
HTP focused on developing diesel engine emission control technology
for use in increasing internal combustion engines' fuel efficiency
and decreasing their greenhouse gas emissions.
Despite having borrowed more than $3 million in December 2017 from
Acamar Investment, Inc., secured by HTP's assets, by June 2018, HTP
found it necessary to seek additional funds to continue developing
its ICA and related technologies.
In June 2018, HTP entered into a joint venture agreement with
Joseph Clark, and his company, JC Aviation Investments, LLC, and a
new entity, HyTech Power, LLC was formed to research, develop,
manufacture, and market the ICA technology. HTP contributed all its
employees and assets, including its ICA and related technologies,
to HyTech, and Johnson became HyTech's chief technology officer.
Following this transaction, HTP held a minority interest in HyTech.
Acamar continued to own a security interest in HTP's assets, which
now was represented by HTP's 48% interest in HyTech. JCAI
contributed money, contacts, and experience, and as majority
interest owner, could appoint a majority of HyTech's directors.
Richardson, a public relations professional working with FMG, and a
shareholder in HTP, became involved in negotiations with Nabors to
purchase ICA Units and fund further testing if certain
fuel-efficiency tests passed successfully.
Unfortunately, by late 2019, HyTech began experiencing financial
difficulties, leading to disagreements between HTP and JCAI
regarding additional funding. And in early 2020, Clark, JCAI's sole
owner, died suddenly. JCAI sought to wind-down HyTech while HTP
sought funds to buy out JCAI's interest in HyTech.
On March 6, 2020, the HyTech Board determined that HyTech was
insolvent and terminated all the employees. During this time,
Phillip Jennings, on behalf of HTP, reached out to Lee (one of
FMG's owners and an HTP shareholder), and Dutton (a senior manager
at FMG) to value the technology and solicit investments on HTP's
behalf so it could buy out JCAI's interest in HyTech. FMG also
began lending money to HTP to help fund Johnson and his team to
they could continue refining the ICA and related technology and
develop test units.
Beginning in June 2020, FMG proposed that HTP raise the funds
needed to buy out JCAI's interest in HyTech through a Three-Part
Deal involving:
(1) negotiating the rights to the ICA and related technologies;
(2) procuring an agreement with Nabors Industries, Ltd., to form
a strategic alliance and purchase ICA Units; and
(3) for FMG to solicit funds through a private placement
offering for a shell Canadian business entity owned by FMG.
HTP negotiated a purchase price of $10 million with JCAI, and JCAI
agreed that HTP could test the ICA Units before it received
payment, provided HTP signed an agreement to pay the purchase price
within 60-90 days. Unfortunately, Nabors' testing timeline was
incompatible with JCAI's deadline for payment. It was simply not
possible to complete the logistics of closing all three
transactions, and HTP could not timely pay JCAI to buy out its
ownership in HyTech. The Three-Part Deal fell apart.
According to HTP, Lee and FMG began negotiating with Nabors to
secure the opportunity for itself, excluding HTP, and persuaded
Johnson to join the effort.
HTP filed this lawsuit in June 2021, asserting claims premised on
Defendants' alleged usurpation of the Nabors' opportunity.
On Jan. 20, 2023, this matter was reassigned to this Court.
Thereafter, this Court ruled on Defendants' dismissal motion,
dismissing without prejudice Plaintiff's claim for breach of
fiduciary duty against Defendant NanoGen, but otherwise denying
Defendants' motion on the basis that HTP has sufficiently alleged
its claims.
On Oct. 10, 2023, HTP filed an Amended Complaint, asserting the
following claims:
* Count I – Breach of Fiduciary Duty (against Defendants
Johnson, Lee, Dutton, Richardson, and FMG);
* Count II – Tortious Interference with Business Expectancy
(against all Defendants);
* Count III – Aiding and Abetting and Conspiracy (against all
Defendants); and
* Count IV – Declaratory Relief (against FMG).
Defendants seek summary judgment on all HTP's claims, contending
that all claims should be dismissed because HTP simply does not
have any facts or documentary evidence to support its case.
Breach of Fiduciary Duty
HTP alleges that Defendants Johnson, Lee, Dutton, Richardson, and
FMG, formed a principal-agent relationship wherein HTP was the
principal and each of the Defendants were HTP's agent in procuring
a deal with Nabors. HTP asserts that these Defendants each owed HTP
a fiduciary duty of loyalty to act on its behalf, but they
intentionally breached their fiduciary duties by usurping the
Nabors opportunity for themselves.
Defendants contend that HTP's lawsuit is primarily predicated on
the idea that FMG, and by extension the individual Defendants, owed
HTP a fiduciary duty by virtue of FMG's purported role as HTP's
agent. They argue HTP's claims fail due to its lack of evidence to
support an agency or fiduciary relationship.
The Court finds HTP fails to identify specific evidence that
creates any genuine issue of fact about whether FMG was HTP's agent
or whether FMG owed any kind of fiduciary duty to HTP. Accordingly,
HTP cannot establish the first and necessary element of a breach of
fiduciary duty, and this cause of action will be dismissed.
Tortious Interference
HTP alleges that all Defendants were aware of HTP's potential
business opportunities, and they intentionally interfered, causing
the termination of the expected opportunities.
Defendants contend that HTP fails to meet its burden to establish a
dispute of fact as to whether any of the Defendants intentionally
interfered with HTP's relationships by inducing or causing either
JCAI or Nabors to terminate a business expectancy with HTP. They
argue that HTP could never have had a reasonable expectancy of
entering into a contract with Nabors. Defendants assert that they
did not enter into any agreement with JCAI or HyTech and neither
JCAI nor HyTech breached any agreement with HTP. After initial
efforts failed, HTP began working with Young American Capital to
finance the JCAI buy-out. Nabors could only have been a business
prospect for HTP if HTP had purchased JCAI's interest in HyTech,
and since that never occurred, HTP did not own any assets to sell
Nabors. They assert that they worked with Nabors on a completely
different agreement involving different technology. They also
assert that there is nothing in the record to support a claim of
improper purpose or means.
HTP argues that the opportunity appropriated was the overall
transaction with Nabors and Nanogen, which was predicated on HTP's
acquisition and sale of the HyTech intellectual property. According
to the Court, the two pieces of evidence put forth by HTP are
insufficient to raise a genuine issue of material fact regarding
Defendants' interference.
The Court notes that HTP fails to provide evidence to establish the
first element of this claim -- the existence of a valid contractual
relationship or business expectancy. There is no contract, and a
valid business expectancy only existed if HTP had been able to
successfully purchase JCAI's interest in HyTech. Since HTP's
efforts to finance the JCAI buy-out were unsuccessful, through
either the Three-Part Deal or with Young American Capital, HTP did
not own the ICA technology to sell Nabors. Accordingly, HTP cannot
satisfy necessary elements of a tortious interference claim, and
this cause of action will be dismissed.
Conspiracy
Because the Court has determined that HTP fails to establish its
claims of breach of fiduciary duty and tortious interference, HTP's
civil conspiracy claim must also fail. Accordingly, Count III will
also be dismissed.
Richardson
The Court has dismissed HTP's claims of breach of fiduciary duty
and tortious interference against Defendants, including Richardson.
Therefore, the Court finds it unnecessary to discuss the parties'
arguments related to Richardson's individual liability.
FMG
HTP's final claim is for declaratory relief against. This claim
relates to FMG's claim for monies lent to HTP. HTP denied that
Defendants, specifically FMG, loaned funds to HTP. FMG filed a
counterclaim against HTP, asserting breach of contract and unjust
enrichment claims related to the principal sum of $343,350.73
loaned by FMG to HTP, which is due, owing, and unpaid. HTP has
conceded that it owes FMG $343,350.73, and agreed that the
counterclaim amount will operate as an offset against any award on
HTP's affirmative claims, and if HTP does not recover, then FMG's
award will be administered as an allowed Class 2 Claim in the
bankruptcy case. Therefore, the Court grants FMG's motion on its
counterclaim, and HTP's claim for declaratory relief will
necessarily be dismissed.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=04G7jO from PacerMonitor.com.
About HTP Inc.
HTP, Inc.'s assets and operations consist of holding 48% of Hytech,
LLC and pursuing certain litigation against parties that have,
among other things, misappropriated technology and usurped business
opportunities. The company is based in Sammamish, Wash.
HTP filed its voluntary petition for Chapter 11 protection (Bankr.
W.D. Wash. Case No. 21-11611) on Aug. 24, 2021, listing $772
million in total assets and $10.45 million in liabilities. Judge
Timothy W. Dore presides oversees the case.
Bush Kornfeld, LLP, and Western Washington Law Group, PLLC, serve
as the Debtor's bankruptcy counsel and special counsel,
respectively.
The U.S. Trustee for Region 18 appointed an official committee of
unsecured creditors on Sept. 17, 2021. The committee is
represented by Alan J. Wenokur, Esq., at Wenokur Riordan, PLLC.
HYPERSCALE DATA: Increases Series G Voting Floor Price to $6.244
----------------------------------------------------------------
As previously reported on Current Report Form 8-K filed with the
Securities and Exchange Commission, on December 21, 2024,
Hyperscale Data, Inc. entered into a Securities Purchase Agreement
with Ault & Company, Inc., a Delaware corporation, pursuant to
which the Company agreed to sell to the Purchaser up to 25,000
shares of Series G convertible preferred stock, and warrants to
purchase shares of the Company's Class A common stock, par value
$0.001 per share for a total purchase price of up to
$25,000,000.00.
On February 5, 2025, the Company filed a Certificate of Amendment
to the Certificate of Designation of Preferences, Rights and
Limitations of the Series G Convertible Preferred Stock with the
Secretary of State of the State of Delaware). The Certificate was
approved on February 5, 2025, by an affirmative vote of the holder
of the Series G Convertible Preferred Stock outstanding as of such
date and by the unanimous affirmative vote of the board of
directors of the Company on February 5, 2025. On February 10, 2025,
the Company was notified that the Certificate became effective upon
filing with the Secretary of State of the State of Delaware.
Pursuant to the Certificate, the definition "Voting Floor Price"
was amended to be $6.244. Originally, the Voting Floor Price was
$5.38, which was the closing sale price of the Common Stock on the
trading day immediately preceding the Execution Date.
About Hyperscale Data
Headquartered in Las Vegas, NV, Hyperscale Data, Inc., formerly
known as Ault Alliance, Inc., is transitioning from a diversified
holding company pursuing growth by acquiring undervalued businesses
and disruptive technologies with a global impact to becoming solely
an owner and operator of data centers to support high performance
computing services. Through its wholly and majority-owned
subsidiaries and strategic investments, Hyperscale Data owns and
operates a data center at which it mines digital assets and offers
colocation and hosting services for the emerging artificial
intelligence ecosystems and other industries. It also provides,
through its wholly owned subsidiary, Ault Capital Group, Inc.,
mission-critical products that support a diverse range of
industries, including an artificial intelligence software platform,
social gaming platform, equipment rental services,
defense/aerospace, industrial, automotive, medical/biopharma and
hotel operations. In addition, Hyperscale Data is actively engaged
in private credit and structured finance through a licensed lending
subsidiary.
New York, New York-based Marcum LLP, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
April 16, 2024, citing that the Company has a working capital
deficiency, has incurred net losses, and needs to raise additional
funds to meet its obligations and sustain its operations. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
The Company posted a net loss of $256.29 million in 2023 compared
to a net loss of $189.83 million in 2022.
As of Dec. 31, 2023, the Company had cash and cash equivalents of
$8.6 million (excluding cash of discontinued operations), negative
working capital of $66.3 million and a history of net operating
losses. The Company has financed its operations principally
through issuances of convertible debt, promissory notes and equity
securities.
ILLUMINA INC: Egan-Jones Retains BB Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on February 3, 2025, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Illumina, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in San Diego, California, Illumina, Inc. develops,
manufactures and markets integrated systems for the large-scale
analysis of genetic variation and biological function.
INTEGRITY CELEBRATIONS: Hires Swanson Sweet LLP as Counsel
----------------------------------------------------------
Integrity Celebrations LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Wisconsin to employ Swanson Sweet
LLP as general bankruptcy counsel.
The firm's services include:
a. advising the Debtor with respect to its powers and duties
as Debtor in possession and the continued management and operation
of its business and property;
b. assisting the Debtor with the commencement of DIP
operations, including the initial debtor interview, section 341
meeting of creditors and monthly reporting requirements; and
c. advising the Debtor and taking all necessary action to
protect and preserve the Debtor's estate, including prosecuting
actions on behalf of the Debtor, defending any action commenced
against the Debtor, and representing the Debtor's interests in
negotiations concerning litigation in which the Debtor is
involved;
d. preparing bankruptcy schedules, statements of financial
affairs, and all related documents;
e. assisting with the preparation of a disclosure statement
and plan of reorganization and the related negotiations and
hearings;
f. preparing pleadings in connection with the chapter 11
cases, including motions, applications, answers, orders, reports,
and papers necessary or otherwise beneficial to the administration
of the Debtor's estate;
g. analyzing executory contracts and unexpired leases, and the
potential assumptions, assignments, or rejections of such contracts
and leases;
h. advising the Debtor in connection with any potential sale
of assets;
i. appearing at and being involved in various proceedings
before this Court;
j. analyzing claims and prosecuting any meritorious claim
objections.
The firm will be paid at these rates:
Craig E. Stevenson $475 per hour
Michael C. Jurkash $310 per hour
Mindy Pieper $195 per hour
Mikaela Schneider $175 per hour
The firm received a retainer of $165,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Craig E. Stevenson, Esq., a partner at Swanson Sweet, disclosed in
a court filing that the firm is a "disinterested person" within the
meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Craig E. Stevenson, Esq.
Swanson Sweet LLP
107 Church Avenue
Oshkosh, WI 54901
Tel: (920) 235-6690
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 SWANSON
SWEET LLP.
INTERNATIONAL FLAVORS: Egan-Jones Retains BB+ Sr. Unsec. Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on February 3, 2025, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by International Flavors & Fragrances Inc.
Headquartered in New York, International Flavors & Fragrances Inc.
creates, manufactures, and supplies flavors and fragrances for the
food, beverage, personal care, and household products industries.
INVATECH PHARMA: Sec. 341(a) Meeting of Creditors on March 20
-------------------------------------------------------------
On February 13, 2025, InvaTech Pharma Solutions 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 $10
million and $50 million in debt owed to 100 and 199 creditors.
The petition states funds will be available to unsecured
creditors.
A meeting of creditors under Section 341(a) to be held on March 20,
2025 at 01:00 PM. Telephonic meeting.
About InvaTech Pharma Solutions LLC
InvaTech Pharma Solutions LLC, doing business as Inva Tech Pharma
Solutions LLC and Inva-Tech Pharma Solutions LLC, is a specialty
pharmaceutical company that develops, manufactures, and markets
generic prescription products. The Company's cGMP-compliant
facility supports ANDA scale manufacturing and packaging of
tablets, capsules, and liquid in bottles. With a dedicated team,
InvaTech is committed to meeting industry regulations, exceeding
deadlines, and delivering exceptional service to its partners.
InvaTech Pharma Solutions LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-11482) on February
13, 2025. In its petition, the Debtor reports estimated assets
between $1 billion and $10 billion and estimated liabilities
between $10 million and $50 million.
The Debtor is represented by:
Daniel M. Stolz, Esq.
GENOVA BURNS LLC
110 Allen Road, Suite 304
Basking Ridge, NJ 07920
Tel: (973) 467-2700
Fax: (973) 467-8126
E-mail: dstolz@genovaburns.com
J. HOWELL: Seeks to Hire Bruner Wright PA as Counsel
----------------------------------------------------
J. Howell Tiller MD, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Florida to employ Bruner Wright,
P.A. to handle its Chapter 11 case.
The firm will be paid at these rates:
Robert Bruner, Attorney $450 per hour
Byron Wright, III, Attorney $400 per hour
Samantha Kelly, Attorney $375 per hour
Paralegal $175 per hour
The firm received a retainer of $10,000 from the Debtor.
Mr. Wrigth 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:
Byron Wright, III, Esq.
Bruner Wright, P.A.
2868 Remington Green Circle, Suite B
Tallahassee, FL 32308
Telephone: (850) 385-0342
Facsimile: (850) 270-2441
About J. Howell Tiller MD, LLC
J. Howell Tiller MD, LLC filed Chapter 11 petition (Bankr. N.D.
Fla. Case No. 25-30068) on January 29, 2025, listing up to $50,000
in assets and up to $100,000 in liabilities. Dr. John H Tiller.
manager, signed the petition.
Judge Karen K. Specie oversees the case.
Byron W. Wright, Esq., at Bruner Wright, P.A., represents the
Debtor as legal counsel.
JER INVESTORS: Plan Exclusivity Period Extended to March 28
-----------------------------------------------------------
Judge Thomas M. Horan of the U.S. Bankruptcy Court for the District
of Delaware extended JER Investors Trust Inc., and affiliates'
exclusive periods to file a plan of reorganization and obtain
acceptance thereof to March 28 and May 23, 2025, respectively.
As shared by Troubled Company Reporter, the Debtors explain that an
application of factors establishes sufficient cause to further
extend the Exclusive Periods. First, the Debtors have made good
faith progress towards confirming a chapter 11 plan. Through
mediation, the Debtors resolved in principle the sole objection to
the Combined Disclosure Statement and Plan, and expect to file a
revised Combined Disclosure Statement and Plan promptly. The
Debtors believe they have made good faith progress towards
confirmation and believe the request to extend the Exclusive
Periods as set forth herein is appropriate and reasonable.
Relatedly, the Debtors have demonstrated reasonable prospects for
filing a viable plan. The Court conditionally approved the
disclosures in the Combined Disclosure Statement and Plan, which
reflects and incorporates numerous comments from key parties, and
that document will be further modified in consultation with the
Noteholders and the C-III Parties. The Debtors have also resolved
the sole objection to the Combined Disclosure Statement and Plan,
and now anticipate appearing at the Confirmation Hearing on an
uncontested basis.
Third, since the filing of these Chapter 11 Cases, the Debtors have
continued to pay their undisputed postpetition expenses and
invoices.
Fourth, this Motion is not intended to pressure creditors,
including the Noteholders and C-III Parties. The Debtors have no
ulterior motive in seeking to extend the Exclusive Periods, but
rather seek the extension requested pursuant to this Motion to
protect, not prejudice, the interests of creditors, including with
respect to the resolution of the Plan-Related Issues mediated by
the parties. An extension of the Exclusive Periods will allow the
Debtors to continue their efforts to maximize estate value while
avoiding the expense and distraction of a competing plan process,
which would likely complicate and increase the costs of
administering these Chapter 11 Cases.
Counsel to the Debtors:
Troutman Pepper Hamilton Sanders LLP
David M. Fournier, Esq.
Kenneth A. Listwak, Esq.
Tori L. Remington, Esq.
Hercules Plaza, Suite 5100
1313 N. Market Street, Suite 5100
Wilmington, DE 19801
Telephone: (302) 777-6500
Email: david.fournier@troutman.com
ken.listwak@troutman.com
tori.remington@troutman.com
-and-
Deborah Kovsky-Apap, Esq.
875 Third Avenue
New York, NY 10022
Telephone: (212) 704-6000
Email: deborah.kovsky@troutman.com
About JER Investors Trust
JER Investors Trust Inc. is a specialty finance company quoted on
the Pink Sheets that manages a portfolio of commercial real estate
structured finance products. Its investments include commercial
mortgage backed securities, mezzanine loans and participations in
mortgage loans, and an interest in the US Debt Fund. JER Investors
Trust Inc. is organized and conducts its operations so as to
qualify as a real estate investment trust ("REIT") for federal
income tax purposes. On the Web: http://www.jerinvestorstrust.com/.
JERIT Non-CDO CMBS 1 LLC and affiliate JER Investors Trust Inc.
sought Chapter 11 protection (Bankr. D. Del. Case No. (23-12108 and
23-12109) on Dec. 29, 2023.
The Hon. Thomas M. Horan is the case judge.
The Debtors tapped TROUTMAN PEPPER HAMILTON SANDERS LLP as counsel;
and DUNDON ADVISERS as financial advisor.
JER Investors estimated assets of $10 million to $50 million and
debt of $100 million to $500 million. JERIT Non-CDO estimated
assets of $10 million to $50 million and debt of just under
$50,000.
JETBLUE AIRWAYS: Egan-Jones Retains CCC+ Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company on January 27, 2025, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by JetBlue Airways Corporation. EJR also withdrew
the rating on commercial paper issued by the Company.
Headquartered in Long Island City, New York, JetBlue Airways
Corporation provides non-stop passenger flight services.
JJ BADA: Scott Rever of Genova Burns Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Scott Rever, Esq.,
at Genova Burns, LLC as Subchapter V trustee for JJ Bada 464
Operating Corp.
Mr. Rever will be paid an hourly fee of $450 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Rever declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Scott S. Rever, Esq.
Genova Burns LLC
110 Allen Rd., Suite 304,
Basking Ridge, NJ 07920
Telephone: (973) 387-7801
Email: Rever@genovaburns.com
About JJ Bada 464 Operating Corp.
JJ Bada 464 Operating Corp. owns and operates Bada Story
Restaurant, a Korean and Japanese Sushi Restaurant located at 464
Sylvan Avenue, Englewood Cliffs, N.J.
JJ Bada 464 Operating sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. N.J. Case No. 25-11078) on February
1, 2025, listing between $500,001 and $1 million in both assets and
liabilities. Brandon Park, president of JJ Bada 464 Operating,
signed the petition.
Judge Stacey L. Meisel oversees the case.
Rosemarie E. Matera, Esq., at Kirby Aisner & Curley, LLP,
represents the Debtor as legal counsel.
JOURNEY HEALTH: Unsecureds Will Get 63% of Claims over 60 Months
----------------------------------------------------------------
Journey Health Care Management Services, LLC, filed with the U.S.
Bankruptcy Court for the Western District of Pennsylvania a Small
Business Plan of Reorganization dated February 10, 2025.
The Debtor is a behavioral healthcare provider specializing in the
provision of integrative psychiatry and addiction counseling
services.
The Debtor was organized as a limited liability company owned
entirely by its sole member, Lucy Garrighan. For a brief period,
Lucy Garrighan's children became Members of the Debtor, but their
ownership stake was returned to Lucy Garrighan well before the
filing of the Chapter 11 Case. The Debtor was a sole member LLC as
of the date of its filing the Chapter 11 Case, and remains so as of
the date of this Plan.
The Debtor operated out of two facilities (one in Murrysville, PA,
and one in Robinson, PA). The Murrysville expansion proved to be an
overextension and resulted in rent costs that proved too expensive
for the Debtor to manage. The Debtor entered into Merchant Cash
Advance Agreements to account for the capital shortfall resulting
from its expansion and billing issues. It filed the Chapter 11 Case
to negotiate a reduction of its expanded footprint and to work out
a plan for managing its debt load.
The Plan proposes to pay administrative and priority claims in full
unless otherwise agreed. The Debtor estimates approximately 63%
will be paid on account of general unsecured claims pursuant to the
Plan. The percentage is subject to change based on the allowance of
claims, litigation proceeds, or the proceeds from any sales that
may occur.
Class 4 consists of General Unsecured Claims. Undisputed, known,
allowed Class 4 General Unsecured Claims total $203,471.60, which
represents the value of all unsecured claims in this Case. The
Debtor shall make a distribution of $2,136.45 per month that shall
be divided and paid pro-rata to all allowed Class 4 claims for a
period of 60 months. Payments shall begin on or before the last day
of the month following the Effective Date of the Plan.
Subsequent payments shall be made by the Debtor on or before the
last day of the month every month thereafter for a total of 60
payments. Total payment to Class 4 creditors via monthly payments
shall be $128,187.09, which will pay all allowed and currently
known General Unsecured Creditors approximately 63% of their
allowed claims.
The Plan will be funded through ongoing operations of the Debtor's
outpatient mental health and integrative psychiatry business and
any recovery from employee retention tax credits.
A full-text copy of the Plan of Reorganization dated February 10,
2025 is available at https://urlcurt.com/u?l=XuDGU2 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Ryan J. Cooney, Esq.
Cooney Law Offices LLC
223 Fourth Avenue, 4th Floor
Pittsburgh, PA 15222
Telephone: (412) 392-0330
Facsimile: (412) 392-0335
Email: rcooney@cooneylawyers.com
About Journey Health Care Management Services
Journey Health Care Management Services, LLC, is a behavioral
healthcare provider specializing in the provision of integrative
psychiatry and addiction counseling services.
The Debtor sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Pa. Case No. 24-22772) on Nov. 12,
2024, listing $100,001 to $500,000 in both assets and liabilities.
Judge Gregory L. Taddonio presides over the case.
The Debtor tapped Ryan J Cooney, Esq., at Cooney Law Offices LLC as
counsel and Antonio Lodovico at Lodovico & Associates, PC as
accountant.
KINGDOM EXPRESS: Seeks to Sell El Paso Property for $150,000
------------------------------------------------------------
Kingdom Express LLC asks permission from the U.S. Bankruptcy Court
for the Western District of Texas, El Paso Division, to sell real
property, free and clear of liens.
The Debtor is a trucking company based in El Paso, Texas. The
Debtor's property known as Veta Rica Property is located at 12901
Veta Rica Ave, El Paso, Texas 79938, is from where the Debtor
conducts its business and desires to sell it to generate cash with
which to initially fund its Plan of Reorganization.
The Northern parcel of the Property belongs to the affiliate of the
Debtor, Affordable Auto Repair Inc.
The Veta Rica Property was originally scheduled as having a value
of $29,756 per the City of El Paso's tax assessed value for 2024;
it has received offers for its purchase at a substantially greater
amount since the petition date.
The lienholders of the Veta Rica Property includes City of El Paso
Tax Assessor/Collector and Mills Escrow Servicing.
The Debtor believes that it is in the best interests of the Estate
to sell the Veta Rico Property for $150,000. The sales proceeds of
the Property will be allocated to:
-- Ad Valorem Real Property Taxes $21,000
-- Mills Escrow/Mortgage $58,000
-- Closing Costs $1,250
-- Net Funds Remaining from Sale $69,750
-- IRS Administrative Claim (Postpetition) $52,566.80
-- Balance for Administrative Expenses $17,183.20
About Kingdom Express LLC
The Debtor provides dedicated transportation services.
Kingdom Express, LLC in El Paso TX, filed its voluntary petition
for Chapter 11 protection (Bankr. W.D. Tex. Case No. 24-30051) on
Jan. 19, 2024, listing as much as $1 million to $10 million in both
assets and liabilities. Moises Vasquez as vice-president, signed
the petition.
Judge Donald R. Cassling presides over the case.
MIRANDA & MALDONADO, PC, serves as the Debtor's legal counsel.
KOSSOFF PLLC: Trustee Cleared to Seek Clawbacks After Court Victory
-------------------------------------------------------------------
Alex Wittenberg of Law360 Bankruptcy Authority reports that the
Chapter 7 trustee overseeing Kossoff PLLC's bankruptcy estate has
received approval to continue clawback litigation against about 50
parties, including Citibank and Bloomingdale's, after a New York
federal judge ruled in his favor in a dispute over the firm's
decade-old tax liabilities.
About Kossoff PLLC
Kossoff PLLC is a real estate law firm based in New York City. It
operated as a law firm with offices located at 217 Broadway in New
York City. The firm held itself out as a law firm that provided
full-service real estate legal services specializing in litigation
and transactional matters, including leasing, sale and acquisition
of real property, commercial landlord tenant matters, real estate
litigation, and city, state and federal agency regulatory matters.
Mitchell H. Kossoff, the firm's founder and only known managing
member, is alleged to have failed to and/or refused to return
millions of dollars of client funds when requested by clients.
Kossoff PLLC is subject to an involuntary petition for Chapter 7
bankruptcy (Bankr. S.D.N.Y. Case No. 21-10699) by creditors on
April 13, 2021. The case is handled by Honorable Judge David S.
Jones.
Gran Sabana Corp NV, Louis & Jeanmarie Giordano, and other former
clients of the Debtor signed the involuntary petition. Carter
Ledyard & Milburn LLP, led by Aaron R. Cahn, represents the
petitioners.
Veteran restructuring lawyer Albert Togut of Togut, Segal & Segal
LLP, was named as Chapter 7 Trustee. He tapped his own firm as
counsel in the case.
KREF HOLDINGS: S&P Assigns 'B+' Rating on New $550MM Term Loan
--------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue rating to KREF Holdings
X LLC's proposed seven-year $550 million term loan. KREF Holdings X
LLC is a wholly owned financing subsidiary of KKR Real Estate
Finance Trust Inc. (KREF). We view favorably KREF's plan to extend
its debt maturity and strengthen its funding, given current
conditions in the commercial real estate (CRE) markets.
S&P expects net proceeds of the proposed term loan to be used to
refinance its existing term loan due 2027 ($340 million outstanding
at year end 2024), pay off the current revolver balance, and repay
$60 million on its repurchase facilities.
KREF's leverage, as measured by debt to adjusted total equity, was
4.75x as of year-end 2024, and pro forma for the proposed issuance.
S&P expects the company to ramp up its originations in 2025, and
for leverage to increase somewhat, but remain well within its
expectations of 5.0x-6.5x. Despite challenging CRE market
conditions, KREF's asset quality stabilized in the second half of
2024. Loans on its internal watchlist equated to 44% of its
adjusted total equity, as of Dec. 31, down from 81% as of March 31,
2024.
The stable outlook indicates that S&P expects KREF will maintain
adequate liquidity to meet its funding needs, its asset quality
won't deteriorate significantly, and its leverage will remain in
the 5.0x-6.5x range as the company increases its origination
activity.
LAREDO HOUSING: S&P Places 'CC' LT Bonds Rating on Watch Negative
-----------------------------------------------------------------
S&P Global Ratings placed its 'CC' long-term rating on Laredo
Housing Finance Corp., Texas' series 1994 single-family mortgage
revenue bonds on CreditWatch with negative implications.
The CreditWatch action reflects that there is at least a one-in-two
likelihood that we will lower the rating to 'D' within 90 days if
debt service is not paid on time and in full on the next payment
date of April 1, 2025, as a result of insufficient funds.
A shortfall between assets available to pay debt service, at only
$8,486.10 as of Jan. 23, 2025, according to the trustee, compared
with liabilities or par outstanding totaling approximately
$125,000, is the key rating factor supporting S&P's view that the
transaction will have insufficient funds to fully cover the next
debt service payment due on April 1, 2025. Final maturity is
scheduled for Oct. 1, 2027.
S&P said, "Because the bonds were issued in a stand-alone indenture
and we do not expect additional money will be deposited into it, we
view default of the bonds as a virtual certainty, even under the
most optimistic collateral-performance scenario, given the existing
gap between available assets and liabilities outstanding.
"If debt service is not paid on time and in full as due on April 1,
2025, we will likely lower the rating to 'D' and then withdraw the
rating. Under our "Ratings Definitions," published Dec. 2, 2024, on
RatingsDirect, the 'D' rating applies when payments on an
obligation are not made in accordance with the terms of the
obligation (or within the earlier of the stated grace period or the
next 30 calendar days)."
A shortfall between assets available to pay debt service, at only
$8,486.10 as of Jan. 23, 2025, according to the trustee, compared
with liabilities or par outstanding totaling approximately
$125,000, is the key rating factor supporting our view that the
transaction will have insufficient funds to fully cover the next
debt service payment due on April 1, 2025. Final maturity is
scheduled for Oct. 1, 2027.
S&P said, "Because the bonds were issued in a stand-alone indenture
and we do not expect additional money will be deposited into it, we
view default of the bonds as a virtual certainty, even under the
most optimistic collateral-performance scenario, given the existing
gap between available assets and liabilities outstanding.
"If debt service is not paid on time and in full as due on April 1,
2025, we will likely lower the rating to 'D' and then withdraw the
rating. Under our "Ratings Definitions," published Dec. 2, 2024, on
RatingsDirect, the 'D' rating applies when payments on an
obligation are not made in accordance with the terms of the
obligation (or within the earlier of the stated grace period or the
next 30 calendar days).
LAS VEGAS SANDS: Egan-Jones Retains BB- Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on January 29, 2025, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by Las Vegas Sands Corp. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Las Vegas, Nevada, Las Vegas Sands Corp. owns and
operates casino resorts and convention centers.
LAVA CANTINA: Case Summary & 19 Unsecured Creditors
---------------------------------------------------
Debtor: Lava Cantina The Colony LLC
5805 Grandscape Blvd
The Colony, TX 75056
Business Description: Lava Cantina is a live entertainment venue
and restaurant. The business focuses on
combining Creole-inspired cuisine with a
Mexican twist and providing a platform for
live music performances, specifically
catering to fans of rock and roll. The
decor and vibe reflect the owners' passion
for music, and the venue is designed to
offer guests an immersive experience that
merges dining with entertainment. Lava
Cantina's menu offers a vibrant fusion of
Cajun and Mexican cuisines, featuring bold
flavors in dishes like creole shrimp, tacos,
and BBQ brisket, alongside burgers, pastas,
and unique appetizers such as stuffed
jalapenos and queso dips.
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Eastern District of Texas
Case No.: 25-40417
Debtor's Counsel: Sarah M. Cox, Esq.
SPECTOR & COX
12270 Coit Road Suite 850
Dallas TX 75251
Tel: (214) 310-1321
Email: sarah@spectorcox.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ian Vaughn as managing member.
A full-text copy of the petition, which includes a list of the
Debtor's 19 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/L7VBSMI/Lava_Cantina_The_Colony_LLC__txebke-25-40417__0001.0.pdf?mcid=tGE4TAMA
LCS UNLIMITED: Seeks to Extend Plan Exclusivity to April 13
-----------------------------------------------------------
L.C.S. Unlimited, LLC, asked the U.S. Bankruptcy Court for the
Middle District of Alabama to extend its exclusivity periods to
file a Disclosure Statement and the Chapter 11 Plan to April 13,
2025.
The Debtor explains that it is relatively close to reaching an
agreement with Commercial Credit Group ("CCG") which is the largest
secured creditor in this case. Further, regarding CCG, the
Debtor-in-Possession has elected to surrender 5 of the units of
collateral and/or heavy equipment securing CCG's claim.
The Debtor claims that it is in communications with Komatsu
Financial regarding adequate protection and valuation of the
collateral and/or heavy equipment. Komatsu is in the process of
securing an appraisal of the subject collateral and/or heavy
equipment, after which the discussions regarding adequate
protection and valuation will continue.
The Debtor notes that it has reached an agreement, as memorialized
by an Order of this Court, regarding the Pearson-Weaver property
related to curing the payment default.
Accordingly, the extension requested will not prejudice any
creditor or party in interest to this case.
The Debtor believes that said extensions will provide it with the
best opportunity to propose a confirmable, feasible plan while
protecting, to the maximum extent possible, the interests of the
creditors.
L.C.S. Unlimited, LLC is represented by:
Anthony B. Bush, Esq.
The Bush Law Firm, LLC
Parliament Place Professional Center
3198 Parliament Circle 302
Montgomery, AL 36116
Tel: (334) 263-7733
Fax: (334) 832-4390
Email: anthonybbush@yahoo.com
abush@bushlegalfirm.com
About L.C.S. Unlimited
L.C.S. Unlimited, LLC filed a Chapter 11 petition (Bankr. M.D. Ala.
Case No. 24-32330) on Oct. 15, 2024, with $1 million to $10 million
in both assets and liabilities. The petition was signed by Lisa C.
Sweeney as member.
Judge Christopher L. Hawkins oversees the case.
Anthony B. Bush, Esq., at The Bush Law Firm, LLC is the Debtor's
bankruptcy counsel.
LEAP ACADEMY: S&P Raises 2014A-B Revenue Debt Rating to 'BB'
------------------------------------------------------------
S&P Global Ratings raised its rating on the New Jersey Economic
Development Authority's series 2014A and 2014B revenue debt, issued
for LEAP Academy University Charter School (LEAP Academy, or LEAP)
on behalf of LEAP Cramer Hill LLC, to 'BB' from 'BB-'. The outlook
is stable.
"The upgrade reflects our view of LEAP's improved financial profile
evident in operating performance with a sustained trend of solid
operating surpluses translating to improved maximum annual debt
service coverage and consistent growth of unrestricted reserves,
coupled with sustained demand trends," said S&P Global Ratings
credit analyst David Holmes.
The stable outlook reflects our expectation that over the one-year
outlook period LEAP will continue to demonstrate positive
operations, maintain lease-adjusted maximum annual debt service
coverage in line with those of peers, while maintaining its
liquidity position through expected capital projects, amid
sustained demand trends.
LEARNINGSEL LLC: Seeks to Extend Plan Exclusivity to April 30
-------------------------------------------------------------
LearningSEL, LLC and affiliates asked the U.S. Bankruptcy Court for
the District of Arizona to extend their exclusivity periods to file
a plan of reorganization and obtain acceptance thereof to April 30
and July 31, 2025, respectively.
The Debtors explain that Creditors filed an Application for
Production of Documents and Oral Examination Pursuant to F.R.B.P.
2004 ("2004 Application"). The Debtors filed a Notice of
Preliminary Objection to Application Production of Documents and
Oral Examination Pursuant to F.R.B.P. 2004 and Objection to
Application Production of Documents and Oral Examination Pursuant
to F.R.B.P. 2004.
The Debtors claim that they are hopeful for a settlement with
Creditors and communications with Creditors' counsel have been
ongoing. In an effort to reach a settlement, Debtors made another
Rule 408 Settlement Offer on January 30, 2025. The Debtors are
currently awaiting a response from Creditors' counsel on this most
recent offer.
This is the Debtors' first request for an extension in a
complicated and complex case, and the case has been pending for
only a short period of time. The Debtors are willing to continue to
work with Creditors to try to reach a settlement, which enables the
Debtors to propose and fund a Plan that provides appropriate and
fair treatment for all creditors, not just the Creditors.
About LearningSEL LLC
LearningSEL LLC is a provider of Social and emotional learning
training and professional development services.
LearningSEL LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-07015) on Aug. 23,
2024. In the petition filed by Anna-Lisa Mackey, as manager, the
Debtor reports total assets of $703 and total liabilities of
$1,543,051.
The Honorable Bankruptcy Judge Paul Sala oversees the case.
The Debtor is represented by:
D. Lamar Hawkins, Esq.
GUIDANT LAW, PLC
402 E. Southern Ave
Tempe, AZ 85282
Tel: 602-888-9229
Email: lamar@guidant.law
LIKELIHOOD LLC: Gets OK to Use Cash Collateral Until March 4
------------------------------------------------------------
Likelihood, LLC received interim approval from the U.S. Bankruptcy
Court for the Eastern District of Washington to use the cash
collateral of its secured lenders.
The interim order signed by Judge Frederick Corbit authorized the
company to use cash collateral to pay its operating expenses
pending a final hearing. The hearing is set for March 4.
KeyBank National Association, 8Fig, Inc., Clear Finance Technology
Corporation, and the U.S. Small Business Administration assert an
interest in the cash collateral. These secured lenders will be
granted replacement liens on the company's post-petition
collateral, including cash collateral, according to the interim
order.
The interim order also authorized Likelihood to obtain up to
$40,000 in post-petition financing from Anthony DelGuzzo, a
relative of the company owner.
The company will use the loan to ensure adequate working capital
and availability of funds to pay its bankruptcy professionals. This
Loan will be unsecured.
Mr. DelGuzzo has agreed to be paid over the term of 60 months
rather than be paid in full on the effective date of the company's
Chapter 11 plan.
KeyBank is represented by:
Michael M. Sperry, Esq.
Schweet Linde & Rosenblum, PLLC
575 S. Michigan Street
Seattle, WA 98108
Phone: 206.275.1010
Fax: 206.381.0101
michaels@shweetlaw.com
About Likelihood LLC
Likelihood, LLC is a retail company in Seattle, Wash., specializing
in footwear, apparel, accessories, and home goods. Some of its
products include Maison Mihara Yasuhiro, Black Comme des Garcons,
Converse, Martine Rose, Crystal Haze, Reebok, and Teddy Vonranson.
Likelihood filed Chapter 11 petition (Bankr. E.D. Wash. Case No.
25-00202) on January 31, 2025, listing total assets of $382,721 and
total liabilities of $5,058,663.
The Debtor is represented by:
Jason Wax, Esq.
Bush Kornfeld, LLP
601 Union St., Suite 5000
Seattle, WA 98101-2373
Tel: 206-292-2110
Email: jwax@bskd.com
LILLY INDUSTRIES: Hires Rocky Mountain as Financial Advisor
-----------------------------------------------------------
Lilly Industries, Inc. seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ Rocky
Mountain Advisory, LLC as accounting and financial advisors.
The firm's services include:
(a) prepare financial disclosures;
(b) update the Debtor's accounting system and reconcile the
Debtor's bank accounts;
(c) assist the Debtor with the preparation of monthly operating
reports;
(d) assist the Debtor with the liquidity, financial, operational
and strategic planning including aiding the Debtor and counsel in
the development in its chapter 11 case and strategies therein;
(e) assist the Debtor with the preparation of a Liquidation
Analysis;
(e) provide support in the development of a cash flow budget or
other operational budgets and forecasts as requested;
(f) assist the Debtor in administration of the bankruptcy
filings;
(g) prepare and file federal, state, and local taxes and other
tax work as needed; and
(h) perform any other ancillary accounting tasks necessary to
assist the Debtor through this chapter 11 case, including any
related litigations or adversary proceedings.
The firm will be paid at these rates:
Managing Directors $390 per hour
Directors $315 per hour
Managers $295 per hour
Senior Associates $270 per hour
Associates $260 per hour
Paraprofessionals $180 per hour
Administrative Staff $120 per hour
On September 27, 2024, the Debtor paid the firm a retainer of
$15,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Josiah Lilly
Rocky Mountain Advisory, LLC
2121 S Anne St.
Santa Ana, CA 92704
Tel: (714) 376-3742
About Lilly Industries, Inc.
Lilly Industries, Inc. (doing business as The Slab Studio) is a
trade-only gallery that offers architects, contractors, dealers,
and designers access to the finest natural stone and semi-precious
slabs, ensuring a sophisticated, one-of-a-kind viewing experience.
With discerning standards and a global reach, they act as a trusted
partner for those seeking premium materials for high-end design
projects.
Lilly Industries filed Chapter 11 petition (Bankr. C.D. Calif. Case
No. 25-10301) on February 3, 2025, listing between $500,001 and $1
million in assets and between $1 million and $10 million in
liabilities. Josiah Lilly, president of Lilly Industries, signed
the petition.
Judge Theodor Albert oversees the case.
The Debtor is represented by Brian M. Rothschild, Esq., at Parsons
Behle & Latimer.
LISBON CONCRETE: Court OKs Vehicle, Tools Sale
----------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina, Raleigh Division, has granted Lisbon Concrete Corp. to
sell its trucks, trailers, tools and materials, free and clear of
all liens through public auction.
The Debtor is authorized to sell the the properties through a
public auction, to be conducted by Country Boys Realty & Auction,
Inc.
The Court further directed the Debtor that all secured parties with
liens against the Assets shall receive liens in the same amount and
priority in the net proceeds from the sale to the extent that there
are any such liens.
The Court ordered that all net proceeds of the sale will be
deposited into the Debtor's counsel's Interest on Lawyers' Trust
Accounts to hold for distribution pursuant to the Debtor's
liquidating plan.
About Lisbon Concrete Corp.
Lisbon Concrete Corporation, filed a Chapter 11 bankruptcy petition
(Bankr. E.D.N.C. Case No. 25-00173) on Jan. 16, 2025, disclosing
under $1 million in both assets and liabilities
Judge Pamela W. Mcafee presides over the case.
The Debtor is represented by PAUL D. BRADFORD, PLLC.
LOVING KINDNESS: Seeks to Extend Plan Exclusivity to June 23
------------------------------------------------------------
Loving Kindness Healthcare Systems, LLC, asked the U.S. Bankruptcy
Court for the Western District of Pennsylvania to extend its
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to June 23 and August 22, 2025, respectively.
The Debtor explains that the extension of the Exclusivity Periods
will allow the Bar Date to pass, providing the Debtor time to
assess all creditors in this case and generate an inclusive plan
addressing all claims.
The Debtor notes that the majority of the currently asserted debt
is tax debt, mostly calculated on estimates due to the failure of
the prepetition debtor to file tax returns. The delinquent tax
returns are being filed presently, and it is hoped that will allow
the taxing authorities to recalculate the proper tax, penalty, and
interest.
The Debtor claims that it is critical for the company to finalize
the proper calculation of all outstanding tax obligations before
filing a plan. This will allow the Debtor to properly assess the
amount owed and properly reorganize.
The Debtor asserts that its creditors will not be prejudiced by the
requested extension; on the contrary, the Debtor's creditors will
be best served with an extension of the Exclusivity Periods, as it
will help determine the precise amount due to each creditor.
The Debtor further asserts that it continues to work in good faith
and remains focused on facilitating a successful reorganization.
Loving Kindness Healthcare Systems, LLC, is represented by:
Robert S. Bernstein, Esq.
Gwenyth A. Ortman, Esq.
Bernstein-Burkley P.C.
601 Grant Street, 9th Floor
Pittsburg, PA 15219
Telephone: (412) 456-8100
Facsimile: (412) 456-8135
Email: rbernstein@bernsteinlaw.com
About Loving Kindness Healthcare Systems
Loving Kindness Healthcare Systems LLC is a state-licensed Home
Health Care Agency.
Loving Kindness Healthcare Systems sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 24-22610) on
Oct. 25, 2024, with up to $50,000 in assets and up to $10 million
in liabilities. Copa Davis, member, signed the petition.
The Debtor tapped Robert S. Bernstein, Esq., at Bernstein-Burkley
PC as counsel and Gloria J. Besley as accountant.
LUTHERAN HOME: Seeks to Hire Stretto as Claims and Noticing Agent
-----------------------------------------------------------------
Lutheran Home and Services for the Aged, Inc. and its affiliates
seek approval from the U.S. Bankruptcy Court for the Northern
District of Illinois to employ Stretto, Inc. as claims and noticing
agent.
Stretto will oversee the distribution of notices and will assist in
the maintenance, processing, and docketing of proofs of claim filed
in the Chapter 11 cases of the Debtors.
Prior to the petition date, the Debtors provided advance payment to
Stretto in the amount of $10,000.
Sheryl Betance, a senior managing director at Stretto, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Sheryl Betance
Stretto, Inc.
410 Exchange, Ste. 100
Irvine, CA 92602
Telephone: (714) 716-1872
Email: sheryl.betance@stretto.com
About Lutheran Home and Services
for the Aged, Inc.
Lutheran Home and Services for the Aged, Inc. is a non-profit,
mission-driven community offering a range of services including
assisted living, memory care, skilled nursing, and short-term
rehabilitation, along with extensive outpatient rehabilitation
therapy.
Lutheran Home and its affiliates filed Chapter 11 petitions (Bankr.
N.D. Ill. Lead Case No. 25-01705). At the time of the filing,
Lutheran Home reported between $100 million and $500 million in
both assets and liabilities.
The Debtors tapped Squire Patton Boggs (US), LLP as bankruptcy
counsel; McDonald Hopkins, LLC as Illinois counsel; and one point
Partners, LLC as financial advisor. Stretto is the claims,
noticing, solicitation, balloting, and tabulation agent.
MARATHON DEVELOPMENT: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of Marathon Development Partners, LLC, according to court
dockets.
About Marathon Development Partners
Marathon Development Partners, LLC operates as a real estate
development company based in Marathon, Fla.
Marathon Development Partners filed Chapter 11 petition (Bankr.
S.D. Fla. Case No. 25-10467) on January 17, 2025. In its petition,
the Debtor reported assets between $1 million and $10 million and
liabilities between $10 million and $50 million.
Judge Corali Lopez-Castro handles the case.
Christian Somodevilla, Esq., at LSS Law serves as the Debtor's
bankruptcy counsel.
MAT TRANSPORT: Seeks to Extend Plan Exclusivity to May 18
---------------------------------------------------------
Mat Transport, Inc., asked the U.S. Bankruptcy Court for the
District of Arizona to extend its exclusivity periods to file a
plan of reorganization and obtain acceptance thereof to May 18 and
July 17, 2025, respectively.
The Debtor explains that cause exists to extend the Exclusive
Periods in this chapter 11 case. First, the Debtor faced and
succeeded in overcoming the challenges resulting from the damage to
the Grand Avenue location. Second, prior counsel to the Debtor
negotiated for an extension of certain stay relief motions or such
motions have been withdrawn, giving the Debtor further time to
negotiate and discuss the issues related to such motions.
Third, creditors will not be harmed by extending the Exclusivity
Periods at this time. Counsel for the Debtor intend to use the
additional 90 days to, among other things, work with West Valley
National Bank to arrive at a consensual plan of reorganization. If
the Debtor can complete confirmation in the time allotted by the
extension requested herein, the Debtor will confirm a plan within a
year.
Lastly, the Debtor has retained MPBG to be its counsel on a go
forward basis. Current counsel for the Debtor has only stepped into
the role with less than three weeks to file the plan. Considering
the ramp up it will take for MPBG to understand the facts and
circumstances of this particular chapter 11 case in order to
adequately advise the Debtor and draft a plan, the Debtor believes
a second extension of the Exclusivity Periods is warranted for this
reason as well.
Mat Transport, Inc. is represented by:
D. Lamar Hawkins, Esq.
Guidant Law, PLC
402 E. Southern Ave.
Tempe AZ 85282
Telephone: (602) 888-9229
Facsimile: (480) 725-0087
Email: lamar@guidant.law
About Mat Transport
Mat Transport, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-05932) on July 22,
2024. In the petition signed by Marko Tomovic, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Madeleine C. Wanslee oversees the case.
D. Lamar Hawkins, Esq., at Guidant Law, PLC, serves as the Debtor's
counsel.
MENORAH CAMPUS: Intends to Sell School to Pay $33MM Claims
----------------------------------------------------------
Tracey Drury of Buffalo Business First reports that Weinberg Campus
officials are seeking to reorganize, liquidate, and sell its North
Forest Road assets through bankruptcy proceedings to generate
enough revenue to cover $33 million in outstanding claims.
The largest creditor, BP Getzville Campus LLC, an Irvine,
California-based company, holds the mortgage on the 100-acre
property at 2700 North Forest Road. BP Getzville initiated
foreclosure proceedings in November and has filed a $22 million
claim. Next in line, the Foundation for Jewish Philanthropies has a
$6 million claim related to a commercial mortgage for the Stovroff
Apartments across the street. Another 284 creditors have filed
claims totaling $5 million against Weinberg Campus and its three
subsidiaries, according to its legal representative, Gross Shuman
PC.
Attorney Jonathan Schechter of Gross Shuman PC emphasized that the
primary objective is to work with a national broker to secure a
buyer and repay as many creditors as possible.
"This process allows us to liquidate assets under federal
bankruptcy oversight, maximizing their value for the nonprofit and
its creditors," Schechter said. "The reorganization plan is
strictly for liquidation and closure. There are no plans to
reopen."
Weinberg Campus ceased operations at its 180-bed nursing home,
assisted living facilities, and licensed home care programs in the
fall, resulting in the displacement of hundreds of residents and
the loss of 300 jobs.
Other creditors include 1199 SEIU, Bee Publications, Eaton Office
Supply, Univera Healthcare, Sodexo, and law firms such as Harter
Secrest & Emery LLP and Gross Shuman.
Former executives have also submitted claims. David Dunkelman, the
former president and CEO who retired in 2016, continued receiving
annual compensation through at least 2020. Meanwhile, former COO
Randi Dressel filed a lawsuit in November 2022, seeking $854,726 in
damages related to deferred compensation that was intended to fund
a charitable trust. The exact amounts of these claims have yet to
be disclosed in bankruptcy filings, according to Buffalo Business
First.
Weinberg Campus is finalizing its selection of a national broker to
market the property. Potential future uses include student housing,
residential apartments, or a healthcare facility, the report
states.
"If an acceptable bid aligns with a buyer's intended use and fits
zoning regulations, we will consider it," Schechter said. "Whether
it's for healthcare or another purpose, we're open to options that
provide the best value."
Despite closing its caregiving programs, Weinberg Campus still
employs about 10 staff members, including longtime CEO Robert
Mayer, bookkeeping personnel, and building engineers.
While the skilled nursing and assisted living programs shut down
last year, several apartment buildings remain operational. These
include low-income senior housing at the Haskell & James Stovroff
Towers and Forest Creek, as well as the Meadows Apartments, which
houses refugees through a contract with Jewish Family Services.
Schechter confirmed that negotiations are underway for the sale of
those properties as well.
"The contract with a low-income housing group planning to retrofit
Stovroff Towers for a day center remains in progress," he said. "We
believe both the secured creditor and the buyer want to move
forward with the deal."
About Menorah Campus Inc.
Menorah Campus Inc., doing business as Weinberg Campus, operates in
the healthcare sector.
Menorah Campus, Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-10127) on February 6,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
The Debtor is represented by:
Kevin R. Lelonek, Esq.
GROSS SHUMAN PC
465 Main St Suite 600
Buffalo, NY 14203
Tel: (716) 854-4300
E-mail: klelonek@gross-shuman.co
MERIDIAN WEIGHT: Taps Law Offices of Douglas M. Engell as Counsel
-----------------------------------------------------------------
Meridian Weight Management Center, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Mississippi to employ
Law Offices of Douglas M. Engell, Inc. as counsel.
The firm will provide these services:
a. advise and consult with the Debtor regarding questions
arising from certain contract negotiations which will occur during
the operation of business by the Debtor;
b. evaluate and attack claims of various creditors who may
assert security interests in the assets and who may seek to disturb
the continued operation of Debtor;
c. appear in, prosecute, or defend suits and proceedings, and
to take all necessary and proper steps and other matters and things
involved in or connected with the affairs of the estate of the
Debtor;
d. represent the Debtor in court hearings and to assist in
the preparation of contracts, reports, accounts, petitions,
applications, orders and other papers and documents as may be
necessary in this proceeding;
e. advise and consult with Debtor in connection with any
reorganization plan which may be proposed in this proceeding and
any matters concerning Debtor which arise out of or follow the
acceptance or consummation of such reorganization or its rejection;
and
f. perform such other legal services on behalf of Debtor as
they become necessary in this proceeding.
The firm will be paid at these rates:
Douglas M. Engell $395 per hour
Paralegals $110 per hour
The Debtor paid the firm a retainer of $5,262.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Douglas M. Engell, Esq., a partner at Law Offices of Douglas M.
Engell, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Douglas M. Engell, Esq.
Law Offices of Douglas M. Engell
PO BOX 309
Marion, MS 39342
Telephone: (601) 693-6311
Email: dengell@dougengell.com
About Meridian Weight Management Center, LLC
Meridian Weight Management Center, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Miss. Case No.
25-00302) on February 4, 2025, with $0 to $50,000 in assets and
$100,001 to $500,000 in liabilities.
Judge Katharine M. Samson presides over the case.
Douglas M. Engell, Esq. represents the Debtor as legal counsel.
MJD ENGINEERING: Walter Dahl of Dahl Law Named Subchapter V Trustee
-------------------------------------------------------------------
The U.S. Trustee for Region 17 appointed Walter Dahl, Esq., a
partner at Dahl Law, as Subchapter V trustee for MJD Engineering,
Inc.
Mr. Dahl will be compensated at $485 per hour for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
In court filings, Mr. Dahl declared that he is a disinterested
person according to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Walter R. Dahl
Dahl Law
2304 "N" Street
Sacramento, CA 95816-5716
Telephone: (916) 446-8800
Telecopier: (916) 741-3346
Email: wdahl@dahllaw.net
About MJD Engineering Inc.
MJD Engineering Inc. is engaged in the construction of utility
systems.
MJD Engineering Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Calif. Case No. 25-20487) on February
3, 2025. In its petition, the Debtor reported estimated assets
between $500,000 and $1 million and estimated liabilities between
$1 million and $10 million.
Judge Fredrick E. Clement handles the case.
The Debtor is represented by:
Michael Jay Berger, Esq.
Law Offices of Michael Jay Berger
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212
Tel: (310) 271-6223
Fax: (310) 271-9805
Email: michal.berger@bankruptcypower.com
MMK FAMILY: Stephen Gray Named Subchapter V Trustee
---------------------------------------------------
The U.S. Trustee for Region 1 appointed Stephen Gray of Gray &
Company, LLC as Subchapter V trustee for MMK Family Investment,
Inc.
Mr. Gray will be paid an hourly fee of $900 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Gray declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Stephen S. Gray
Gray & Company, LLC
207 Union Wharf
Boston, MA 02109
(617) 875-6404
Email: ssg@grayandcompanyllc.com
About MMK Family Investments
MMK Family Investments, Inc. operates a sandwich shop as franchisee
of Firehouse Subs, an international brand of the Restaurant Brands
International Group.
MMK Family filed Chapter 11 petition (Bankr. D. Maine Case No.
25-20020) on February 4, 2025, listing up to $100,000 in assets and
up to $1 million in liabilities. Michael Koman, president of MMK
Family, signed the petition.
Judge Michael A. Fagone oversees the case.
Adam Prescott, Esq., Bernstein Shur Sawyer & Nelson, PA, represents
the Debtor as legal counsel.
MMK SUBS: James LaMontagne Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 1 appointed James LaMontagne of Sheehan
Phinney Bass & Green as Subchapter V trustee for MMK Subs, LLC.
Mr. LaMontagne will be paid an hourly fee of $450 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. LaMontagne declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
James S. LaMontagne, Esq.
Sheehan Phinney Bass & Green
75 Portsmouth Boulevard, Suite 110
Portsmouth, NH 03801
Phone: (603) 627-8102
Email: jlamontagne@sheehan.com
About MMK Subs LLC
MMK Subs, LLC filed Chapter 11 petition (Bankr. D. Maine Case No.
25-20019) on February 4, 2025, listing up to $100,000 in assets and
up to $1 million in liabilities. Michael Koman, president of MMK
Subs, signed the petition.
Judge Michael A. Fagone oversees the case.
Adam Prescott, Esq., Bernstein Shur Sawyer & Nelson, PA, represents
the Debtor as legal counsel.
SouthState Bank, as prepetition lienholder, is represented by:
Jeremy R. Fischer, Esq.
Drummond Woodsum
84 Marginal Way, Suite 600
Portland, Maine 04101
Telephone: (207) 772-1941
Email: jfischer@dwmlaw.com
MONTICELLO CONSTRUCTION: Seeks 60-Day Extension of Plan Filing
--------------------------------------------------------------
Monticello Construction & Real Estate, LLC asked the U.S.
Bankruptcy Court for the Southern District of Mississippi to extend
its exclusivity period to file disclosure statement and plan for
additional sixty days.
The Debtor claims that it is required to file its disclosure
statement and plan of reorganization on or before February 10,
2025. The Debtor and its counsel have diligently attempted to
gather the information necessary to complete these documents and
file them in a timely manner. However, because of the extent of the
information involved, they have not been able to do so.
The Debtor explains that it has filed its Motion to Approve Auction
and Bidding Procedures (the "Bid Procedures Motion") to auction two
of the remaining loots and its Motion for Authority to Sell Real
Outside the Ordinary Course of Business Free and Clear of Liens,
Claims and Interests (the "Motion to Sell") to approve the sale of
one of the remaining lots.
The auction is scheduled for February 26, 2025, at 9:30 a.m., and
the hearing on the Motion to Sell is set for the same date at 11:00
a.m. If the auction is successful, a disclosure statement and plan
will not be needed, and the costs of preparation of them can be
avoided.
Monticello Construction & Real Estate, LLC is represented by:
Craig M. Geno, Esq.
Law Offices of Craig M. Geno, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Telephone: (607) 427-0048
Facsimile: (607) 427-0050
Email: cmgeno@cmgenolaw.com
About Monticello Construction & Real Estate
Monticello Construction & Real Estate, LLC, sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Miss. Case No.
24-00872) on April 10, 2024, with up to $10 million in both assets
and liabilities. Moe Chowdhury, managing member, signed the
petition.
Judge Jamie A. Wilson oversees the case.
The Law Offices of Craig M. Geno, PLLC, is the Debtor's legal
counsel.
NEWFOLD DIGITAL: Moody's Cuts CFR to Caa1 & Alters Outlook to Neg.
------------------------------------------------------------------
Moody's Ratings downgraded Newfold Digital Holdings Group, Inc.'s
Corporate Family Rating to Caa1 from B3 and its Probability of
Default Rating to Caa1-PD from B3-PD. Instrument ratings were also
downgraded with the backed senior secured first lien notes and
backed senior secured first lien bank credit facility rating now
rated B3 from B2 and the senior unsecured rating now Caa3 from
Caa2. The outlook has been revised to negative from stable. Newfold
provides internet domain name registrations, web hosting and
website building tools to small and mid-sized businesses.
The downgrade reflects heightened refinancing risk for the
company's $380 million revolver that matures in February 2026 as
well as lower than expected revenue growth. The revolver is largely
drawn and Moody's does not expect Newfold to be able to generate
sufficient cash flow or use its cash on hand to pay down the drawn
amount. As a result there is increased risk of a restructuring
event if the company is not able to term out the revolver debt.
Lower revenue growth expectations also increases refinancing risk.
RATINGS RATIONALE
The Caa1 CFR reflects the company's high financial leverage and
flat revenue growth that is unlikely to improve meaningfully over
the next 12 to 18 months. The ratings also reflect cyclicality due
to exposure to the small and medium business ("SMB") market where
businesses tend to be less resilient to economic cycles and risks
from operating in a highly competitive market that has low barriers
to entry. Debt to EBITDA leverage for the 12-month period ending
September 30, 2024 was 7.5x. Moody's treats capitalized software
development costs as an expense in the calculation of leverage.
Moody's expects debt-to-EBITDA leverage to remain in the 7.5x area
over the next 12-18.
The ratings benefit from Newfold's position as one of the largest
global providers of web presence solutions, a highly diversified
revenue base with more than 7 million paid-subscribers, the
mission-critical nature of the company's offerings that service
small and medium sized businesses, a largely recurring and
predictable revenue base underpinned by annual contracts with
auto-renew options, and good customer retention rates.
Newfold's weak liquidity profile is driven by Moody's expectations
for moderate cash flow generation and a revolver that is largely
drawn. The company's $380 million revolver had $223 million drawn
as of September 30, 2024. The revolver matures on February 10, 2026
and is thus current. If the company is not able to address the
maturity of the revolver the ratings could be downgraded further.
The debt capital structure comprises the senior secured first lien
credit facilities, which include the $380 million revolver due
February 2026 and $2.3 billion term loan due February 2028, the
$515 million 11.75% senior secured first lien notes due October
2028, and $500 million 6% senior unsecured notes due February 2029.
Newfold's senior secured first lien credit facility (revolver and
term loan) is rated B3, which is one notch higher than the
company's Caa1 CFR, reflecting the moderate amount of junior
support in the capital structure, in the form of unsecured debt and
other non-debt obligations. The $515 million senior secured first
lien notes are also rated B3, reflecting the pari passu nature of
the notes with respect to the credit facilities and also benefits
from the support from junior capital. The Caa3 senior unsecured
notes rating is two notches lower than the company's Caa1 CFR,
reflecting the notes' effective subordination to the revolver, term
loan and secured notes. The unsecured notes are guaranteed on a
senior unsecured basis by the holdings and the borrower's direct
and indirect, existing and future, wholly-owned domestic
subsidiaries.
The negative outlook reflects Moody's concern that if Newfold is
unable to refinance the revolver that is now current the company
will have to pursue a restructuring of its capital structure. The
revolver currently had $223 million drawn as of September 30, 2024.
The company has limited options available to repay the debt under
the revolver since there was approximately $89 million of cash on
hand as of the end of September 2024 and cash flow generation will
not be sufficient. The outlook could be stabilized if Newfold is
able to extend the maturity of the revolver and earnings
stabilize.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The negative outlook implies that an upgrade is unlikely in the
near term. The ratings could be upgraded over time if Moody's
expects Newfold will maintain debt-to-EBITDA below 7.5x and free
cash flow as a percentage of debt in a low single digits range. For
an upgrade Newfold would also have to achieve revenue growth,
liquidity would need to improve and the company would need to
address the revolver maturity.
The ratings could be downgraded if refinancing uncertainty rises,
or if liquidity weakens faster than anticipated due to lower than
anticipated cash flow generation. The ratings could also be
downgraded should the likelihood of a distressed exchange or other
default event increase, or if business recovery prospects weaken.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Newfold Digital Holdings Group, Inc. is a provider of internet
domain name registrations, web hosting and website building tools
to small businesses. The company has a portfolio of web services
brands, which include Bluehost, Network Solutions, and Web.com as
well as other regional and complementary brands. The company is
majority owned by affiliates of private equity sponsors Clearlake
and Siris. Moody's projects annual revenue of around $1.4 billion
in 2025.
NOMADE VILLA: Tarek Kiem of Kiem Law Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Tarek Kiem, Esq., at Kiem
Law, PLLC as Subchapter V trustee for Nomade Villa Collection, LLC.
Mr. Kiem will be paid an hourly fee of $300 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Kiem declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tarek Kiem, Esq.
Kiem Law, PLLC
8461 Lake Worth Road, Suite 114
Lake Worth, FL 33467
Tel: (561) 600-0406
Email: tarek@kiemlaw.com
About Nomade Villa Collection
Nomade Villa Collection, LLC specializes in offering high-end
luxury vacation rentals in Miami Beach, Brickell, and Downtown
Miami, leveraging extensive experience in the South Florida real
estate market.
Nomade Villa Collection sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-11231) on February 4,
2025. In its petition, the Debtor reported between $1 million and
$10 million in both assets and liabilities.
Judge Corali Lopez-Castro handles the case.
The Debtor is represented by:
Celi S. Aguilar, Esq.
CSA Law Firm
1200 Brickell Avenue, Suite 800
Miami, FL 33131
Tel: (786) 489-3650
Email: aguilar@thecsalawfirm.com
NOV INC: Egan-Jones Hikes Senior Unsecured Ratings to BB+
---------------------------------------------------------
Egan-Jones Ratings Company on January 27, 2025, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by NOV Inc. to BB+ from BB. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Houston, Texas, NOV Inc offers equipment and
components used in oil and gas drilling and production operations,
oilfield services, and supply chain integration services to the
upstream oil and gas industry.
NP ELEVATE: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: NP Elevate Pocatello, LLC
180 Avenida La Pata, 2nd Fl
San Clemente, CA 92673
Business Description: NP Elevate Pocatello is a single asset real
estate debtor, as defined in 11 U.S.C.
Section 101(51B).
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-10394
Judge: Hon. Scott C Clarkson
Debtor's Counsel: Eric Bensamochan, Esq.
THE BENSAMOCHAN LAW FIRM, INC.
2566 S. Overland Ave. Suite 650
Los Angeles, CA 90054
Tel: (818) 574-5740
Fax: (818) 961-0138
E-mail: eric@eblawfirm.us
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Patrick Nelson as manager.
The Debtor stated in the petition there are no unsecured
creditors.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/OBQ7J4I/NP_Elevate_Pocatello_LLC__cacbke-25-10394__0001.0.pdf?mcid=tGE4TAMA
NTI-CA INC: Court Narrows Claims in Forbush COBRA Lawsuit
---------------------------------------------------------
Judge Marilyn Huff of the United States District Court for the
Southern District of California granted in part and denied in part
in the plaintiff's motion for default judgment in the case
captioned as MICHAEL J. FORBUSH, an individual, Plaintiff, v.
NTI-CA INC., a Nevada corporation, dba NTI GROUND TRANS; JOHN E.
KINDT, an individual; and DOES 1 through 10 inclusive Defendants,
Case No. 22-cv-00141-H-RBB (S.D. Calif.).
Defendant NTI is a national transportation company that provides
airport shuttle and luxury sedan and SUV transportation services in
San Diego, California, Los Angeles, California, Las Vegas, Nevada,
and New York City, New York.
Defendant John E. Kindt is the Executive Vice President and Chief
Operating Officer of NTI.
In January 2020, Plaintiff began working as a full-time employee of
NTI as a manager for NTI's San Diego office. On Jan. 29, 2021,
Kindt informed Plaintiff that he was being furloughed from his
employment at NTI due to a reduction in work force. At the time of
Plaintiff's furlough and/or termination, Kindt promised that NTI
would continue to provide Plaintiff with health insurance coverage
under NTI's group health plan.
On June 8, 2021, Plaintiff suffered a heart attack that required
emergency heart surgery. He was billed $511,223.56 for the medical
services he received related to his heart surgery. On July 30,
2021, Plaintiff received a notice from NTI's human resources
manager stating that his medical benefits were to be terminated
effective Aug. 1, 2021, due to a COBRA qualifying event and
provided information regarding his COBRA rights. Plaintiff never
received notification of his COBRA rights prior to the July 30,
2021 notice. ERISA's civil enforcement provision only provides a
plan participant or beneficiary a cause of action for failure to
notify of COBRA rights against a plan "administrator."
On Feb. 1, 2022, Plaintiff filed a complaint against Defendants NTI
and Kindt, alleging claims for:
(1) failure to provide notification of COBRA rights in violation
of 29 U.S.C. Sec. 1166;
(2) failure to provide notification of Cal-COBRA rights in
violation of California Insurance Code Sec. 10128.55;
(3) breach of contract;
(4) negligence;
(5) negligent misrepresentation;
(6) intentional misrepresentation; and
(7) declaratory relief.
On Feb. 18, 2022, Plaintiff filed a proof of service as to NTI.
By the present motion, Plaintiff moves pursuant to Federal Rule of
Civil Procedure 55(b) for a default judgment against Defendants NTI
and Kindt. Specifically, Plaintiff requests that the Court enter a
joint and several default judgment against Defendants NTI and Kindt
and award Plaintiff damages, costs, attorney's fees and prejudgment
interest in the total amount of $794,446.14.
Because it appears that Defendants were not the administrators of
Plaintiff's health care plan, Plaintiff is not entitled to a
default judgment on his claim against Defendants for violation of
29 U.S.C. Sec. 1166, the Court finds.
Because Plaintiff is not entitled to a default judgment on his Sec.
1166 claim, and Plaintiff's Sec. 10128.50 is derivative of that
claim, Plaintiff is also not entitled to a default judgment on his
claim for violation of California Insurance Code Sec. 10128.50, the
Court concludes.
According to the Court, because Plaintiff is not entitled to a
default judgment on his Sec. 1166 claim and his Sec. 10128.50
claim, and Plaintiff's claim for declaratory relief is derivative
of those claims, Plaintiff is also not entitled to a default
judgment on his claim for declaratory relief.
Plaintiff is not entitled to default judgment on his claim for
breach of oral contract, the Court finds.
Because Plaintiff has failed to allege sufficient facts to support
the element of scienter for his claim for intentional
misrepresentation, Plaintiff is not entitled to a default judgment
on that claim, the Court concludes.
The Court finds Plaintiff has adequately stated claims against
Defendant NTI for negligence and negligent misrepresentation.
Plaintiff alleges that he was employed by Defendant NTI, and as
Plaintiff's employer, Defendant NTI owed him a duty to use
reasonable care in discharging their obligations. Plaintiff further
alleges that Defendant NTI breached this duty by failing to timely
and adequately provide proper notification of his termination under
ERISA as amended by COBRA.
According to the Court, NTI's failure to provide proper COBRA
notice and its misrepresentations to Plaintiff were the actual and
proximate cause of Plaintiff's injuries. Plaintiff incurred
substantial medical bills when he suffered a heart attack which
required emergency heart surgery and those bills were not covered
by any health insurance plan. The Court says these medical bills
would have been covered under a COBRA and/or CAL-COBRA plan had NTI
provided proper COBRA notice and had it not made the
misrepresentations at issue, which Plaintiff reasonably relied on.
Finally, Plaintiff suffered damages in the form of the uncovered
medical bills he incurred, the Court adds.
Although Plaintiff has adequately stated claims against Defendant
NTI for negligence and negligent misrepresentation, Plaintiff has
not adequately stated those claims against Defendant Kindt, the
Court further finds. Kindt was Plaintiff's supervisor, not his
employer. As such, Kindt, unlike NTI, did not have any obligations
under ERISA as amended by COBRA to provide notice of Plaintiff's
termination, the Court notes. Further, the allegations and evidence
are insufficient to specifically show that those misrepresentations
are attributable specifically to Defendant Kindt as opposed to
other employees, such as NTI's human resources employees or NTI's
corporate controller.
In light of this, Plaintiff is not entitled to a default judgment
against Defendant Kindt on his claims for negligence and negligent
misrepresentation, the Court concludes.
The Court enters a default judgment in favor of Plaintiff and
against Defendant NTI on Plaintiff's claims for negligence and
negligent misrepresentation, and it awards Plaintiff:
(1) $498,223.56 in compensatory damages;
(2) $649.53 in costs;
(3) prejudgment interest of 7% per annum beginning on Oct. 22,
2021; and
(4) post-judgment interest according to the statutory rate set
forth in 28 U.S.C. Sec. 1961(a).
The Court declines to enter a default judgment against Defendant
Kindt on any of Plaintiff's claims.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=Ui24q6 from PacerMonitor.com.
About NTI-CA Inc.
NTI-CA, Inc. sought Chapter 11 protection (Bankr. D. Nev. Case No.
22-10459) on Feb. 10, 2022, listing up to $50,000 in assets and up
to $1 million in liabilities. Judge August B. Landis oversees the
case.
David J. Winterton, Esq., at David J. Winterton & Assoc., Ltd.,
served as the Debtor's legal counsel.
The case was dismissed in 2022.
NUTRACAP HOLDINGS: U.S. Trustee Appoints Creditors' Committee
-------------------------------------------------------------
The U.S. Trustee for Region 21 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Nutracap
Holdings LLC.
The committee members are:
1. Nash Commercial, Inc.
David Michael Nash
3131 Piedmont Road, N.E.
Suite 200
Atlanta, GA 30305
404-386-5846
dnash@nashcommerical.com
2. Laboratories Bidco, LLC
Geoff Westmoreland
199 W. Rhapsody Dr.
San Antoino, TX 78216
210-308-0675
Geoff.Westmoreland@fsns.com
-- and --
Allen M. DeBard
Langley & Banack, Attorneys and Counselors at Law
745 East Mulberry Ave.
Suite 700
San Antonio, TX 78212
210-736-6600
adebard@langleybanack.com
3. Silliker, Inc., d/b/a Meriuex NutriSciences
Jessica Leusch
401 N. Michigan Ave.
Suite 1400
Chicago, IL 60611
312-938-5151
Jessica.leusch@mxns.com
4. SoCal Bulk Nutrition, LLC
Xinyue Joseph Zhang
4000 Barranca Parkway
Suite 250
Irvine, CA 92604
949-668-5597
joseph@scbnutrition.com
5. Environmental Research Center, Inc.
Chris Heptinstall
306 Joy Street
Fort Oglethorpe, GA 30742
Chris.Heptinstall@erc501c3.org
-- and --
Charles W. Poss
In-House Counsel
306 Joy Street
Fort Oglethorpe, GA 30742
619-500-3090
Charles.Poss@erc501c3.org
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 Nutracap Holdings
Nutracap Holdings, LLC is a manufacturer of nutraceuticals and
dietary supplements in Norcross, Ga.
Nutracap Holdings sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-50430) on January 14,
2025, with up to $50 million in both assets and liabilities. Marcos
Fabio Lopes e Lima, chief executive officer of Nutracap Holdings,
signed the petition.
Judge Lisa Ritchey Craig oversees the case.
William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC,
represents the Debtor as legal counsel.
NW CUSTOM: Hires Neeleman Law Group P.C. as Counsel
---------------------------------------------------
NW Custom Aircraft Hangars, LLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the Western District of
Washington to employ Neeleman Law Group, P.C. as counsel.
The firm's services include:
a. assisting the Debtor in the investigation of the financial
affairs of the estate;
b. providing legal advice and assistance to the Debtor with
respect to matters relating to this case and creditor
distribution;
c. preparing all pleadings necessary for proceedings arising
under this case; and
d. performing all necessary legal services for the estate in
relation to this case.
The firm will be paid at these rates:
Principal $550 per hour
Associate $475 per hour
Paralegal $225 per hour
The firm received a retainer in the amount of $11,738 from each
separate Debtor.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jennifer L. Neeleman, Esq., a partner 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 at:
Jennifer L. Neeleman, Esq.
Neeleman Law Group, P.C.
1403 8th Street
Marysville, WA 98270
Tel: (425) 212-4800
Fax: (425) 212-4802
Email: jennifer@neelemanlaw.com
About NW Custom Aircraft Hangars, LLC
NW Custom Aircraft Hangars LLC owns an airplane hangar located on
leased land owned by Arlington Municipal Airport at 19321 59th
Ave., NE Arlington WA 98223. The current value of the Debtor's
interest on the Property is $1.9 million.
NW Custom Aircraft Hangars LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No.
24-13188) on December 13, 2024. In the petition filed by Duane
Wilcoxon, as managing sole member, the Debtor reports total assets
of $1,903,500 and total liabilities of $1,549,542.
The case is overseen by Honorable Bankruptcy Judge Timothy W.
Dore.
The Debtor is represented by Thomas D. Neeleman, Esq. at NEELEMAN
LAW GROUP, P.C.
OMEGA THERAPEUTICS: Gets $11.5MM Stalking-Horse Bid
---------------------------------------------------
Vince Sullivan of Law360 reports that Omega Therapeutics, an mRNA
vaccine developer, filed proposed bidding procedures in a Delaware
bankruptcy court, seeking sale approval by mid-April 2025. The
company has secured a stalking-horse bid worth approximately $11.5
million.
About Omega Therapeutics
Omega Therapeutics Inc. is a biotechnology company in its
development stages, leading innovation in a novel approach to
leverage mRNA therapeutics as programmable epigenetic treatments
through its OMEGA Epigenomic Programming platform. The OMEGA
platform harnesses the power of epigenetics, the mechanism that
controls gene expression and every aspect of an organism's life
from cell genesis, growth, and differentiation to cell death. The
OMEGA platform enables control of fundamental epigenetic processes
to correct the root cause of disease by returning aberrant gene
expression to a normal range without altering native nucleic acid
sequences.
Omega Therapeutics Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 25-10211) on February 10,
2025. In its petition, the Debtor reported total assets as of Jan.
28, 2025 amounting to $137,529,941 and total debts as of Jan. 28,
2025 of $140,421,354.
Honorable Bankruptcy Judge Brendan Linehan Shannon handles the
case.
The Debtor is represented by Derek C. Abbott, Esq., Eric D.
Schwartz, Esq., Andrew R. Remming, Esq., Daniel B. Butz, Esq.,
Jonathan M. Weyand, Esq., and Luke Brzozowski, Esq., at Morris,
Nichols, Arsht & Tunnell LLP in Wilmington, Delaware. The Debtor's
special counsel is Latham & Watkins LLP.
The Debtor tapped Triple P RTS, LLC as restructuring advisor and
Triple P Securities LLC as investment banker. The Debtor's claims
agent and administrative advisor is Kroll Restructuring
Administration LLC.
ONCOCYTE CORP: Broadwood, 2 Others Hold 40.2% Equity Stake
----------------------------------------------------------
Broadwood Partners, L.P., disclosed in a Schedule 13D/A filed with
the U.S. Securities and Exchange Commission that as of February 6,
2025, it and its affiliates -- Broadwood Capital Inc. and Neal C.
Bradsher -- beneficially own 11,560,350 shares of Oncocyte Corp.
common stock, representing 40.2% of the 28,749,380 outstanding
shares as of February 6. These shares include 11,560,193 shares
beneficially owned by Broadwood Partners and Broadwood Capital, and
an additional 157 shares directly owned by Neal C. Bradsher. The
ownership is held with shared voting and dispositive power among
Broadwood Partners, Broadwood Capital, and Neal C. Bradsher, except
for the 157 shares over which Bradsher has sole voting and
dispositive power.
Broadwood Partners may be reached at:
Neal C. Bradsher
President of Broadwood Capital Inc.
156 West 56th Street
3rd Floor
New York N.Y. 10019
Tel: 212-508-5735
A full-text copy of Broadwood Partners' SEC Report is available
at:
https://tinyurl.com/y5jxxf2m
About Oncocyte Corp.
Oncocyte Corporation, based in Irvine, Calif., is a precision
diagnostics company dedicated to developing and commercializing
proprietary tests in three key areas: VitaGraft - A blood-based
test for monitoring solid organ transplantation; DetermaIO - A gene
expression test that evaluates the tumor microenvironment to
predict responses to immunotherapies; and DetermaCNI - A
blood-based monitoring tool to assess therapeutic efficacy in
cancer patients.
Costa Mesa, CA-based Marcum LLP, the Company's auditor since 2023,
issued a "going concern" qualification in its report dated April
15, 2024. The report emphasized that the Company has incurred
operating losses and negative cash flows since inception and needs
to raise additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
As of September 30, 2024, Oncocyte had $70.2 million in total
assets, $60.5 million in total liabilities, and $9.7 million in
total shareholders' equity.
ONCOCYTE CORP: Ends $7.5MM ATM Offering With Needham, Raises $1.8MM
-------------------------------------------------------------------
Oncocyte Corporation disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company provided
notice of its intention to terminate that certain Sales Agreement
dated as of August 9, 2024, by and between the Company and Needham
& Company, LLC, pursuant to which, the Company could offer and sell
from time to time up to an aggregate of $7,500,000 of Common Stock
through Needham in transactions deemed to be "at-the-market"
offerings as defined in Rule 415(a)(4) of the Securities Act,
effective immediately.
As a result, on February 8, 2025, the Sales Agreement terminated in
accordance with its terms. Prior to the termination of the Sales
Agreement, the Company sold an aggregate of $1.8 million of its
Common Stock under the Sales Agreement.
About Oncocyte Corp.
Oncocyte Corporation, based in Irvine, Calif., is a precision
diagnostics company dedicated to developing and commercializing
proprietary tests in three key areas: VitaGraft - A blood-based
test for monitoring solid organ transplantation; DetermaIO - A gene
expression test that evaluates the tumor microenvironment to
predict responses to immunotherapies; and DetermaCNI - A
blood-based monitoring tool to assess therapeutic efficacy in
cancer patients.
Costa Mesa, CA-based Marcum LLP, the Company's auditor since 2023,
issued a "going concern" qualification in its report dated April
15, 2024. The report emphazies that the Company has incurred
operating losses and negative cash flows since inception and needs
to raise additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
As of September 30, 2024, Oncocyte had $70.2 million in total
assets, $60.5 million in total liabilities, and $9.7 million in
total shareholders' equity.
PACER PRINT: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Pacer Print
Pacer Packaging
4101 Guardian St
Simi Valley, CA 93063
Business Description: Pacer Print and Packaging specializes in
custom packaging solutions, including boxes,
labels, and mylar bags. The Company offers
services from initial concept design to
production, ensuring high-quality, eco-
friendly products tailored to clients'
needs.
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-10187
Judge: Hon. Ronald A Clifford III
Debtor's Counsel: Steven R. Fox, Esq.
THE FOX LAW CORPORATION INC.
17835 Ventura Blvd #306
Encino, CA 91316
Tel: 818-774-3545
Fax: 818 774-3707
E-mail: SRFox@foxlaw.com
Total Assets: $1,322,299
Total Liabilities: $4,363,271
The petition was signed by Peter Varady as authorized
representative of the Debtor.
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/KZX42XI/Pacer_Print__cacbke-25-10187__0001.0.pdf?mcid=tGE4TAMA
PBF ENERGY: Egan-Jones Retains BB Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on February 7, 2025, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by PBF Energy Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Parsippany-Troy Hills, New Jersey, PBF Energy Inc.
operates as an independent petroleum refiner and supplier.
PG&E CORP: Egan-Jones Retains BB- Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on January 31, 2025, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by PG&E Corporation. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in San Francisco, California, PG&E Corporation
operates as a holding company.
PINSEEKERS DEFOREST: Case Summary & 20 Top Unsecured Creditors
--------------------------------------------------------------
Debtor: PinSeekers DeForest Operations LLC
6909 River Road
DeForest, WI 53532
Business Description: PinSeekers DeForest Operations LLC operates
a hybrid golf entertainment facility located
in DeForest, Wisconsin, just outside of
Madison. The facility's year-round
offerings include Toptracer golf suites,
which are equipped with all-weather luxury
suites suitable for golfers of all skill
levels. The facility also features mini
bowling, with a scaled-down version of
traditional bowling called duckpin bowling,
a custom-built putting course that caters to
all levels of skill and age, and high-
definition multi-sports simulators.
PinSeekers provides a spacious event space
for corporate gatherings, networking events,
meetings, or parties. The venue also
includes a restaurant and bar, offering a
diverse menu for casual dining.
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Western District of Wisconsin
Case No.: 25-10326
Debtor's Counsel: Rebecca R. DeMarb, Esq.
SWANSON SWEET LLP
8020 Excelsior Drive
Suite 401
Madison, WI 53717
Tel: 608-709-5992
Fax: 608-709-5887
Email: rdemarb@swansonsweet.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Nicholas A. Andersen as authorized
representative of the Debtor.
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/4PVDAOY/PinSeekers_DeForest_Operations__wiwbke-25-10326__0001.0.pdf?mcid=tGE4TAMA
POTTSVILLE OPERATIONS: Seeks to Extend Plan Exclusivity to April 13
-------------------------------------------------------------------
Pottsville Operations, LLC and affiliates asked the U.S. Bankruptcy
Court for the Western District of Pennsylvania to extend their
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to April 13 and June 12, 2025, respectively.
The Pottsville Debtors explain that they have been focused on the
Sale and have allocated its professional resources towards the
Closing. The Pottsville Debtors and other interested parties,
including the Committee, are still in the process of discussing the
terms of a chapter 11 plan and need additional time beyond the
Initial Exclusive Filing Period to file the plan.
The Pottsville Debtors claim that their requested extension of the
Exclusive Periods is intended to allow the Pottsville Debtors to
continue to work cooperatively with key parties toward the goal of
confirming and implementing a chapter 11 plan in the most cost
efficient manner possible. Extending the Exclusive Periods will
benefit creditors by avoiding the drain on estate assets attendant
to a competing chapter 11 plan.
In addition, the requested extension of Exclusive Periods by this
Motion is the first such extension requested in these Chapter 11
Cases. The Pottsville Debtors have been in Chapter 11 for only four
months and are making good faith efforts to advance the bankruptcy
case in a manner that will maximize the return for the estate.
The Pottsville Debtors assert that they have been paying their
undisputed post-petition bills. The Pottsville Debtors are current
on their payments to the U.S. Trustee on account of quarterly fees.
Moreover, the Pottsville Debtors have sufficient liquidity to
continue to meet their post-petition obligations as they come due.
Thus, the requested extension of the Exclusive Periods will not
jeopardize the rights of creditors and other parties who do
business with the Pottsville Debtors during these Chapter 11
Cases.
The Debtors' Counsel:
Elizabeth A. Green, Esq.
Andrew V. Layden, Esq.
BAKER & HOSTETLER LLP
SunTrust Center, Suite 2300
200 South Orange Avenue
Orlando, Florida 32801-3432
Tel: (407) 540-7920
Fax: (407) 841-0168
E-mail: egreen@bakerlaw.com
E-mail: alayden@bakerlaw.com
The Debtors' Local Counsel:
Daniel R. Schimizzi, Esq.
Mark A. Lindsay, Esq.
Harry A. Readshaw, Esq.
Jordan N. Kelly, Esq.
Sarah E. Wenrich, Esq.
RAINES FELDMAN LITTRELL, LLP
11 Stanwix Street, Suite 1100
Pittsburgh, PA 15222
Tel: 412-899-6474
E-mail: dschimizzi@raineslaw.com
mlindsay@raineslaw.com
hreadshaw@raineslaw.com
jkelly@raineslaw.com
swenrich@raineslaw.com
About Pottsville Operations
Pottsville Operations LLC and its affiliates own and operates six
skilled nursing facilities in Pennsylvania. Collectively,
Pottsville has 925 beds across the six facilities, and 759
residents currently at the Facilities as of the Petition Date.
Pottsville acquired the facilities in May of 2021.
Pottsville Operations and its 10 affiliates sought relief under
sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
W.D. Pa. Lead Case No. 24-70418) on Oct. 15, 2024. In the petition
signed by Neil Luria, as chief restructuring officer, Pottsville
reports estimated assets between $1 million and $10 million and
estimated liabilities between $10 million and $50 million.
Bankruptcy Judge Jeffery A Deller handles the cases.
The Debtors tapped Baker & Hostetler, LLP as general bankruptcy
counsel; and RAaines Feldman Littrell, LLP as local counsel. SOLIC
Capital Advisors LLC is serving as financial advisor, and Solic's
Neil Luria has been tapped as CRO of the Debtors. Stretto, Inc. is
the claims agent.
Margaret Barajas is the patient care ombudsman appointed in the
Debtors' cases.
PRIMESOURCE INC: Christy Brandon Named Subchapter V Trustee
-----------------------------------------------------------
The Acting U.S. Trustee for Region 18 appointed Christy Brandon,
Esq., a practicing attorney in Bigfork, Mont., as Subchapter V
trustee for Primesource Incorporated.
Ms. Brandon will be paid an hourly fee of $300 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Brandon declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christy L. Brandon
P.O. Box 1544
Bigfork, MT 59911
Phone: (406) 837-5445
Email: christy@brandonlawfirm.com
About Primesource Incorporated
Primesource Incorporated sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Mont. Case No. 25-40004) on
February 6, 2025, with $500,001 to $1 million in assets and
liabilities.
Judge Benjamin P. Hursh presides over the case.
Gary S. Deschenes, Esq. at Deschenes & Associates represents the
Debtor as legal counsel.
PROS HOLINGS: Egan-Jones Retains CCC- Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on January 31, 2025, maintained its
'CCC-' foreign currency and local currency senior unsecured ratings
on debt issued by PROS Holdings, Inc. EJR also withdrew the rating
on commercial paper issued by the Company.
Headquartered in Houston, Texas, PROS Holdings, Inc. operates as a
holding company.
PROSPECT MEDICAL: Gets Approval for Amended DIP Financing
---------------------------------------------------------
Dorothy Ma of Bloomberg Law reports that bankruptcy Judge Stacey
G.C. Jernigan has approved Prospect Medical's debtor-in-possession
financing plan, according to a court filing on Tuesday, February
18, 2025.
The decision allows the hospital operator to borrow up to $100
million from JMB Capital Partners, with $29 million already
available. However, without written consent from landlord Medical
Properties Trust, Prospect cannot access more than an additional
$46 million until a settlement order between the two parties is
reached.
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.
PURE PRAIRIE POULTRY: Court Dismisses Involuntary Chapter 7 Case
----------------------------------------------------------------
Pursuant to 11 U.S.C. Sec. 305(a)(1), Chief Judge Thad J. Collins
of the United States Bankruptcy Court for the Northern District of
Iowa abstained from exercising jurisdiction over the involuntary
chapter 7 case filed by Pure Prairie Poultry, Inc.'s unsecured
creditors. The case is dismissed.
Following dismissal of its Chapter 11 case, Pure Prairie made an
assignment for the benefit of creditors in the Fifth Judicial
District in Nicollet County, Minnesota, pursuant to Chapter 577 of
the Minnesota Statutes and a general receivership was established
pursuant to Chapter 576. As part of the Assignment, Pure Prairie
assigned its assets to Lighthouse Management Group. As of the date
of the Assignment, Pure Prairie had ceased operations and
terminated the majority of its employees, retaining only a limited
number necessary to protect and preserve the existing assets.
Community Bank & Trust has agreed to fund the ongoing expenses of
the Assignment, including payment of utilities, insurance, and
security of the plant.
This involuntary proceeding was filed on Nov. 7, 2024, against Pure
Prairie by four of its unsecured creditors; Larry Falk, Tri-State
Poultry, LLC, Ekelr, LLC, and Lee Frie. Their claims amount to
approximately $2,635,561.28. The total debt, both secured and
unsecured, amounts to over $113 million. On Nov. 19, 2024, CBT
filed its Motion to Dismiss, in which Interested Party Growers and
Michael Helgeson later joined. On Dec. 12, 2024, Pure Prairie filed
its own Motion to Dismiss.
The Board of Directors asks the Bankruptcy Court to dismiss this
involuntary proceeding under 11 U.S.C. Secs. 303(a) and 707(a). The
Board argues that Pure Prairie is a "farmer" as defined in 11
U.S.C. Sec. 101(20) and is therefore ineligible to be a debtor in
an involuntary bankruptcy under section 303(a). It argues that
cause exists for dismissal under section 707(a).
CBT also asks the Bankruptcy Court to dismiss this case, arguing
that cause exists under section 305(a)(1), which provides that a
court may dismiss an involuntary proceeding at any time if
dismissal would better serve the interests of creditors and the
debtor. The Petitioning Creditors argue that neither the Board nor
CBT have standing to challenge the involuntary petition, that Pure
Prairie is not a "farmer," and that dismissal would not better
serve the interests of the creditors and the Alleged Debtor.
CBT argues that that the Bankruptcy Court should abstain and
dismiss this case because the pending state court Assignment
protects the interests of all parties and provides for an economic
and efficient administration of the Alleged Debtor's liquidation.
Starting fresh in this involuntary proceeding, it argues, would be
costly and time consuming. In addition, CBT points out that the
Alleged Debtor already sought relief in a bankruptcy case and
concluded that it was not in its best interest, later moving to
dismiss the case.
The Petitioning Creditors argue that abstention would be improper
in this case for a number of reasons:
(1) there is no opportunity for creditors to conduct discovery
into claims against the Alleged Debtor;
(2) the Minnesota Receivership Statute does not contain rights
for the benefit of creditors to the same extent of the Bankruptcy
Code;
(3) creditors do not have the right to prosecute claims against
the Alleged Debtor without leave of the Minnesota Court and
additional expense and motion practice;
(4) creditors are not sure what assets have been transferred to
the Assignee as part of the Assignment; and
(5) the Assignment has not proceeded in such a way and to such
an extent that prejudice would occur if the case continued in the
Bankruptcy Court.
The Petitioning Creditors assert that the Assignment does not
provide transparency, litigation protections, or jurisdiction for
creditors to have their claims adjudicated to the same extent that
bankruptcy does. They point out that the Assignment does not
provide them with an opportunity to conduct discovery into claims
against the Alleged Debtor, that a trustee in bankruptcy would have
more expansive powers to pursue claims related to prepetition
transfers than the Assignee, and that creditors do not have a right
to prosecute claims against the Alleged Debtor without leave of the
Minnesota court.
While the Bankruptcy Court acknowledges this to be the case under
the Assignment, it cannot conclude that creditors are prejudiced in
this case merely because they are not afforded exactly the same
rights as they would be in bankruptcy or are required to seek leave
of court to exercise them. Their interests are still adequately
protected by the Assignment for their benefit. Under Minnesota law,
the Assignee represents the creditors, not the Alleged Debtor. The
Bankruptcy Court emphasizes that while the Assignee may not have
the same powers as a bankruptcy trustee, its powers are expansive
enough to protect the creditors in this case without the additional
layer of expenses that bankruptcy would entail.
Based on the record before the Bankruptcy Court, all of the Alleged
Debtor's assets are encumbered and no equity exists in the
property. As the United States Trustee noted in the earlier
Minnesota proceeding, if the case were to proceed in bankruptcy,
the assets would likely be abandoned by the trustee and it would
proceed as a no-asset case. Unsecured creditors stand to recover
very little, if anything, in any scenario. The expense of
bankruptcy would eat away at what already stands to be a measly
recovery for all creditors involved.
There will be nothing for the trustee to distribute in this case
and little prospect of acquiring funds, even if costly preference
and avoidance actions were pursued. According to the Bankruptcy
Court, this case would thus serve no real purpose except to
increase costs and provide the Petitioning Creditors with a forum
to pursue potential claims against the Alleged Debtor that may
instead be brought in state court.
Based on the totality of the circumstances in this case, the
Bankruptcy Court finds that the interests of both the Alleged
Debtor and its creditors would be better served by abstention under
section 305(a)(1).
The alternate motions for dismissal are denied, as moot.
The alternate motions for relief from the automatic stay are
denied, as moot.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=LHgEK9 from PacerMonitor.com.
About Pure Prairie Poultry
Pure Prairie Poultry was a provider of chicken products including
boneless, skinless chicken breast fillets; chicken breast tenders;
boneless, skinless chicken thighs; chicken drumsticks; bone-in
chicken thighs; and whole chicken, without giblets.
Pure Prairie Poultry sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Miss. Case No. 24-32426) on Sept. 20,
2024. In the petition filed by George Peichel, as chief financial
officer, the Debtor reports estimated assets estimated between $50
million and $100 million, and estimated liabilities estimated
between $100 million and $500 million.
The Honorable Bankruptcy Judge Katherine A. Constantine handled the
case.
The Debtor was represented by:
James M. Jorrisen, Esq.
TAFT STETTINIUS & HOLLISTER LLP
80 South Eighth Street
Minneapolis, MN 55402
Tel: 612-977-8575
Email: jjorissen@taftlaw.com
The case was dismissed on Pure Prairie's own emergency motion on
Sept. 27, 2024.
On Nov. 27, 2024, the Debtor's unsecured creditors filed an
involuntary Chapter 7 case. The case was dismissed on
Feb. 5, 2025.
RATH RACING: Unsecureds Will Get 3.55% of Claims in Plan
--------------------------------------------------------
Rath Racing, Inc., filed with the U.S. Bankruptcy Court for the
District of Minnesota a First Modified Plan of Reorganization under
Subchapter V dated February 10, 2025.
The Debtor was formed on January 10, 2001, by the current owners
Daryl and Jennifer Rath. The Debtor is a Minnesota company that
crafts parts for racing vehicles like 4 wheelers and dirt bikes.
The global pandemic caused a major disruption in the Debtor's
business starting in early spring 2020. The pandemic hurt sales,
and this caused the Debtor to fall behind on its obligations.
However, the Debtor sought bankruptcy protection, and believes it
can once again be a viable company if this Plan is approved.
This chapter 11 plan of reorganization proposes to pay creditors of
the Debtor with all of the projected disposable income of the
Debtor for a sixty-month period. The Plan has two secured classes,
one unsecured class, and one class for equity interests. As
required by the Bankruptcy Code, this Plan provides for full
payment of Administrative and Priority Claims.
The Debtor's cashflow projections confirm that the Debtor generates
sufficient cash flow to fund the payments due under the Plan.
Class 3 consists of Allowed General Unsecured Claims and Wholly
Unsecured Claims. As of the date hereof, the Debtor estimates the
total pool of allowed General Unsecured Claims and Wholly Unsecured
Claims to be approximately $704,557.60. In full satisfaction of
such claims and in full satisfaction of any purported lien(s), each
Holder of a Class 3 claim shall receive its pro-rata share of
$5,000.00 per year on the Effective Date, and four more pro-rata
payments on the first ($5,000.00), second ($5,000.00), third
($5,000.00) and fourth ($5,000.00) year anniversaries of the
Effective Date, for a total of five payments equaling $25,000.00.
Upon the final payment to Class 3 claims, any creditor holding
liens against the Debtor shall release such liens. The percentage
payment to each Class 3 creditor is approximately 3.55%. Class 3 is
impaired and entitled to vote to accept or reject the Plan.
Class 4 consists of Equity Interests. Equity interest holders are
parties who hold an ownership interest in the Debtor. The only
members of Class 4 are Daryl and Jennifer Rath. The Raths shall
retain their equity interests in the Debtor on the Effective Date.
Class 4 is unimpaired and deemed to accept the Plan.
On the Effective Date, all of the Debtor's respective rights,
title, and interest in and to all assets shall vest in the
reorganized Debtor, and in accordance with section 1141 of the
Bankruptcy Code.
The Debtor will continue to be managed by Daryl Rath. Daryl Rath
will receive a fixed salary of approximately $6,250.00 (gross) per
month, plus future cost of living increases.
A full-text copy of the First Modified Plan dated February 10, 2025
is available at https://urlcurt.com/u?l=CFP2Am from
PacerMonitor.com at no charge.
Attorney for the Debtor:
John D. Lamey III, Esq.,
980 Inwood Ave N
Oakdale, MN 55128
651-209-3550
Fax 651-789-2179
About Rath Racing Inc.
Rath Racing, Inc., offers all-terrain vehicle (ATV), Side-by-Side
and utility task vehicle (UTV) parts and accessories.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Minn. Case No. 24-41056) on April 22,
2024. In the petition signed by Dary C. Rath, president, the Debtor
disclosed $146,852 in assets and $1,510,411 in liabilities.
Judge William J. Fisher oversees the case.
John D. Lamey III, Esq., at Lamey Law Firm, PA, is the Debtor's
legal counsel.
RECOMBINETICS INC: Seeks to Extend Plan Filing Deadline to March 12
-------------------------------------------------------------------
Recombinetics, Inc., and its affiliates asked the U.S. Bankruptcy
Court for the District of Delaware to extend their time period to
file a chapter 11 plan to March 12, 2025.
On November 21, 2024, the Court entered an order (the "Bidding
Procedures Order") that, among other things, (a) approved bidding
procedures, to be used in connection with the sale (the "Sale") by
auction (the "Auction") of all of the tangible and intangible
Purchased Assets of the Debtors, free and clear of all liens,
rights, encumbrances, claims, and interests; (ii) authorized the
Debtors to designate TOG Technologies, LLC as the Stalking Horse
Bidder in connection with the Sale; and (iii) scheduled an Auction
and a hearing to approve the Sale.
The Debtors explain that while they worked effectively through a
streamlined, Court-approved sale process, the closing of the Sale
was ultimately delayed at the request of the Purchaser. This delay,
and the corresponding post-closing reconciliation work, has
resulted in the Debtors needing a relatively small amount of
additional time to evaluate which path forward will maximize
potential returns to creditors while minimizing administrative
costs.
The Debtors claim that the extension requested is not due to any
dilatory conduct of the Debtors; it is driven by (i) the extension
requested by the Purchaser, which was necessary in order to address
employee and contract issues, and (ii) the post-closing
reconciliation work, which has been significantly more involved
than anticipated. The Debtors have made substantial progress in
prosecuting the Chapter 11 Cases to a successful conclusion and
will shortly be filing their Schedules of Assets and Liabilities
and Statements of Financial Affairs (the "Schedules and
Statements").
The Debtors cite that the ultimate resolution of the Chapter 11
Cases will be driven by the reconciliation work related to the Sale
that the Debtors are in the process of completing, which will
dictate the amount of funds remaining in the estates post-closing,
as well as the financial analysis provided by the Schedules and
Statements, which will provide a clear picture of the liabilities
the Debtors need to address.
Further, no party has moved to dismiss or convert the Chapter 11
Cases, and the Debtors anticipate being able to address any
concerns parties in interest may have with the requested extension.
Accordingly, the need for the relief sought in this Motion is
attributable to circumstances for which the Debtors should not
justly be held accountable and extending the deadline would be in
the best interest of the Debtors' estates and all parties in
interest.
Counsel to the Debtors:
FAEGRE DRINKER BIDDLE & REATH LLP
Patrick A. Jackson, Esq.
Ian J. Bambrick, Esq.
Sarah E. Silveira, Esq.
222 Delaware Ave., Suite 1410
Wilmington, DE 19801
Tel: (302) 467-4200
Fax: (302) 467-4201
Email: patrick.jackson@faegredrinker.com
ian.bambrick@faegredrinker.com
sarah.silveira@faegredrinker.com
Maria J. Cho, Esq.
1800 Century Park East, Suite 1500
Los Angeles, CA 90067
Tel: (310) 203-4000
Fax: (310) 229-1285
Email: maria.cho@faegredrinker.com
About Recombinetics Inc.
Recombinetics Inc. is a gene-editing company in Eagan, Minn., known
for its hornless dairy bulls.
Recombinetics sought relief under Chapter 11 of the U.S. Bankruptcy
(Bankr. D. Del. Case No. 24-12593) on Nov. 11, 2024, with total
assets of $1.7 million and total liabilities of $7.7 million.
Judge Mary F. Walrath oversees the case.
The Debtor is represented by Ian J. Bambrick, Esq., at Faegre
Drinker Biddle & Reath, LLP.
RED RIVER: J&J Cancer Suits Must End, Says 20,000 Claimants' Lawyer
-------------------------------------------------------------------
Steven Church and Jonathan Randles of Bloomberg News report that an
attorney representing around 20,000 women who claim Johnson &
Johnson's baby powder caused their cancer urged a bankruptcy judge
to approve the company's $9 billion settlement offer. The proposal
seeks to resolve the lengthy legal battle and accelerate
compensation for the claimants.
"Our clients are passing away," attorney James Onder told U.S.
Bankruptcy Judge Christopher Lopez on Tuesday at the start of a
nine-day trial to determine the settlement's fate. "We need a
prompt and fair resolution. Their greatest fear is that their
daughters or granddaughters may also develop ovarian cancer."
About J&J Talc Units
LLT Management, LLC (formerly known as LTL Management LLC) was a
subsidiary of Johnson & Johnson that was formed to manage and
defend thousands of talc-related claims and oversee the operations
of Royalty A&M. Royalty A&M owns a portfolio of royalty revenue
streams, including royalty revenue streams based on third-party
sales of LACTAID, MYLANTA/MYLICON and ROGAINE products.
LTL Management first filed a petition for Chapter 11 protection
(Bankr. W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time
of the filing, the Debtor was estimated to have $1 billion to $10
billion in both assets and liabilities.
In the 2021 case, LTL Management tapped Jones Day and Rayburn
Cooper & Durham, P.A., as bankruptcy counsel; King & Spalding, LLP
and Shook, Hardy & Bacon LLP as special counsel; McCarter &
English, LLP as litigation consultant; Bates White, LLC as
financial consultant; and AlixPartners, LLP as restructuring
advisor. Epiq Corporate Restructuring, LLC, served as the claims
agent.
On Dec. 24, 2021, the U.S. Trustee for Regions 3 and 9
reconstituted the talc claimants' committee and appointed two
separate committees: (i) the official committee of talc claimants
I, which represents ovarian cancer claimants, and (ii) the official
committee of talc claimants II, which represents mesothelioma
claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On Jan. 30, 2023, a panel of the Third Circuit issued an opinion
directing this Court to dismiss the 2021 Chapter 11 Case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an order
denying LTL's stay motion on March 31, 2023, and, on the dame day,
issued its mandate directing the Bankruptcy Court to dismiss the
2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In the new filing, J&J said it has agreed to contribute up to a
present value of $8.9 billion, payable over 25 years, to resolve
all the current and future talc claims, which is an increase of
$6.9 billion over the $2 billion previously committed in connection
with LTL's initial bankruptcy filing in October 2021. LTL also has
secured commitments from over 60,000 current claimants to support a
global resolution on these terms.
In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton,
New Jersey, ruled that the second bankruptcy case should be
dismissed.
3rd Try
In May 2024, J&J announced its subsidiary LLT Management LLC is
soliciting support for a consensual prepackaged bankruptcy plan to
resolve its talc-related liabilities. Under the terms of the plan,
a trust would be funded with over $5.4 billion in the first three
years and more than $8 billion over the course of 25 years, which
J&J calculates to have a net present value of $6.475 billion.
Claimants must cast their vote to accept or reject the Plan by 4:00
p.m. (Central Time) on July 26, 2024. A solicitation package may be
requested at www.OfficialTalcClaims.com or by calling
1-888-431-4056. If the Plan is accepted by at least 75% of voters,
a bankruptcy may be filed under the case name In re: Red River Talc
LLC in a bankruptcy court in Texas or in the bankruptcy court of
another jurisdiction. Epiq Corporate Restructuring, LLC is serving
as balloting and solicitation agent for LLT.
On Sept. 20, 2024, Red River Talc LLC filed a Chapter 11 bankruptcy
petition (Bankr. S.D. Tex. Case No. 24-90505).
Porter Hedges LLP and Jones Day serve as counsel in the new Chapter
11 case. Epiq is the claims agent.
Paul Hastings LLP is counsel to the Ad Hoc Committee of Supporting
Counsel. Randi S. Ellis is the proposed prepetition legal
representative of future claimants.
RED RIVER: J&J Starts 3rd Talc Bankruptcy Plan Confirmation Trial
-----------------------------------------------------------------
Reuters reports that Johnson & Johnson faces a pivotal challenge on
Tuesday, February 18, 2025, as it seeks court approval for its $10
billion plan to settle lawsuits alleging its baby powder caused
ovarian cancer. This marks the company's third attempt to resolve
the litigation through a subsidiary's bankruptcy, requiring
judicial approval to move forward.
U.S. Bankruptcy Judge Christopher Lopez in Houston will preside
over a weeks-long hearing to determine whether to approve J&J's
latest Chapter 11 filing or dismiss the case entirely.
J&J is leveraging a subsidiary's bankruptcy to address claims from
over 62,000 plaintiffs who allege its talc products contained
asbestos and led to ovarian and other cancers—allegations the
company denies. While courts previously rejected J&J's
bankruptcy-based settlement efforts, the company contends that this
latest attempt is stronger due to broad claimant support.
Throughout the hearing, Lopez will evaluate arguments from both
sides, focusing on key issues such as the validity of votes
endorsing J&J's proposal and whether a financially robust company
should be permitted to use bankruptcy to shield itself from
litigation.
J&J argues that bankruptcy provides a faster and more equitable
resolution for claimants, sparing them from prolonged legal battles
that could result in large payouts for some while leaving others
with nothing. Erik Haas, J&J's vice president for litigation,
stated that the plan has "overwhelming support" from claimants and
offers a better recovery than what they might receive at trial.
Opponents, however, argue that the settlement forces claimants into
accepting lower payouts based on a flawed voting process and that
those who oppose the deal should have the right to pursue
litigation.
Key witnesses will include attorneys representing both sides. If
approved, the settlement would resolve current claims and prevent
future talc-related lawsuits against J&J.
About J&J Talc Units
LLT Management, LLC (formerly known as LTL Management LLC) was a
subsidiary of Johnson & Johnson that was formed to manage and
defend thousands of talc-related claims and oversee the operations
of Royalty A&M. Royalty A&M owns a portfolio of royalty revenue
streams, including royalty revenue streams based on third-party
sales of LACTAID, MYLANTA/MYLICON and ROGAINE products.
LTL Management first filed a petition for Chapter 11 protection
(Bankr. W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time
of the filing, the Debtor was estimated to have $1 billion to $10
billion in both assets and liabilities.
In the 2021 case, LTL Management tapped Jones Day and Rayburn
Cooper & Durham, P.A., as bankruptcy counsel; King & Spalding, LLP
and Shook, Hardy & Bacon LLP as special counsel; McCarter &
English, LLP as litigation consultant; Bates White, LLC as
financial consultant; and AlixPartners, LLP as restructuring
advisor. Epiq Corporate Restructuring, LLC, served as the claims
agent.
On Dec. 24, 2021, the U.S. Trustee for Regions 3 and 9
reconstituted the talc claimants' committee and appointed two
separate committees: (i) the official committee of talc claimants
I, which represents ovarian cancer claimants, and (ii) the official
committee of talc claimants II, which represents mesothelioma
claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On Jan. 30, 2023, a panel of the Third Circuit issued an opinion
directing this Court to dismiss the 2021 Chapter 11 Case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an order
denying LTL's stay motion on March 31, 2023, and, on the dame day,
issued its mandate directing the Bankruptcy Court to dismiss the
2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In the new filing, J&J said it has agreed to contribute up to a
present value of $8.9 billion, payable over 25 years, to resolve
all the current and future talc claims, which is an increase of
$6.9 billion over the $2 billion previously committed in connection
with LTL's initial bankruptcy filing in October 2021. LTL also has
secured commitments from over 60,000 current claimants to support a
global resolution on these terms.
In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton,
New Jersey, ruled that the second bankruptcy case should be
dismissed.
3rd Try
In May 2024, J&J announced its subsidiary LLT Management LLC is
soliciting support for a consensual prepackaged bankruptcy plan to
resolve its talc-related liabilities. Under the terms of the plan,
a trust would be funded with over $5.4 billion in the first three
years and more than $8 billion over the course of 25 years, which
J&J calculates to have a net present value of $6.475 billion.
Claimants must cast their vote to accept or reject the Plan by 4:00
p.m. (Central Time) on July 26, 2024. A solicitation package may be
requested at www.OfficialTalcClaims.com or by calling
1-888-431-4056. If the Plan is accepted by at least 75% of voters,
a bankruptcy may be filed under the case name In re: Red River Talc
LLC in a bankruptcy court in Texas or in the bankruptcy court of
another jurisdiction. Epiq Corporate Restructuring, LLC is serving
as balloting and solicitation agent for LLT.
On Sept. 20, 2024, Red River Talc LLC filed a Chapter 11 bankruptcy
petition (Bankr. S.D. Tex. Case No. 24-90505).
Porter Hedges LLP and Jones Day serve as counsel in the new Chapter
11 case. Epiq is the claims agent.
Paul Hastings LLP is counsel to the Ad Hoc Committee of Supporting
Counsel. Randi S. Ellis is the proposed prepetition legal
representative of future claimants.
REENVISION AESTHETICS: Hires FoxLaw Corporation as Legal Counsel
----------------------------------------------------------------
ReEnvision Aesthetics and MedSpa, PC seeks approval from the U.S.
Bankruptcy Court for the Central District of California to employ
The FoxLaw Corporation, Inc. as counsel.
The firm will provide these services:
a. advise the Debtor as to its powers and duties as a
debtor-in-possession and the management of estate property and to
assist the Debtor in performing the duties required of it as a
debtor-in-possession;
b. negotiate, formulate, draft, and confirm a plan, to attend
hearings before this Court in connection with any proposed
disclosure statements and plans, to conduct, if necessary,
examinations of interested parties and to advise the Debtor as to
any proposed plan of reorganization or any proposal made in
connection with a plan of reorganization;
c. examine all claims filed in these proceedings in order to
determine their nature, extent, validity and priority;
d. advise and assist the Debtor with the collection of assets,
the sale of assets, or the refinancing of assets;
e. take such actions as may be necessary to protect the
properties of this estate from seizure or other proceedings,
pending confirmation and consummation of the plan of reorganization
in this case;
f. advise Debtor as to rejecting or assuming any executory
contract;
g. advise and assist Debtor in fulfilling its obligations as a
fiduciary of the chapter 11 estate;
h. prepare all necessary pleadings pertaining to matters of
bankruptcy law before the Court;
i. prepare such applications and reports as are necessary and
for which the services of an attorney are required including
responding to the compliance requirements of the U.S. Trustee; and
j. render other legal services for Debtor for which the services
of a bankruptcy attorney may be necessary during the pendency of
this case including any necessary litigation.
The firm will be paid at these rates:
Principals $600 per hour
Associates $550 per hour
Law Clerk/Paralegals $150 per hour
The firm received from the Debtor a retainer of $40,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Steven R. Fox, Esq., a partner at Foxlaw Corporation, Inc.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Steven R. Fox, Esq.
The Fox Law Corporation, Inc.
17835 Ventura Blvd., Suite 306
Encino, CA 91316
Tel: (818) 774-3545
Fax: (818) 774-3707
Email: srfox@foxlaw.com
About ReEnvision Aesthetics and MedSpa, PC
ReEnvision Aesthetics and Medspa, PC, filed a Chapter 11 bankruptcy
petition (Bankr. C.D. Cal. Case No. 25-10127) on February 1, 2025,
disclosing under $1 million in both assets and liabilities. The
Debtor is represented by THE FOX LAW CORPORATION INC.
REGIS COLLEGE, MA: S&P Assigns 'BB' Issuer Credit Rating
--------------------------------------------------------
S&P Global Ratings assigned its 'BB' issuer credit rating to Regis
College (Regis), Mass. The outlook is stable.
"The 'BB' rating reflects our assessment of Regis' significant
decline in full-time equivalent enrollment, full-accrual operating
deficits in fiscal years 2023 and 2024, concentration in
student-derived revenue, and low liquidity," said S&P Global
Ratings credit analyst Mary Ellen Wriedt.
The stable outlook reflects S&P's expectation that operations will
continue to be negative during the one-year outlook period. New
enrollment for undergraduate and graduate programs is expected to
remain stable or start to improve with recently implemented
recruiting and rebranding initiatives, but total enrollment may
decline as prior larger classes graduate.
REKOR SYSTEMS: Enters $25MM ATM Offering Agreement With Northland
-----------------------------------------------------------------
Rekor Systems, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company entered
into an At Market Issuance Sales Agreement with Northland
Securities, Inc., pursuant to which the Company may, from time to
time, offer and sell shares of the Company's common stock, par
value $0.0001 per share, having an aggregate offering price of up
to $25 million.
Sales of the Shares under the Sales Agreement, if any, will be made
by any method that is deemed an "at the market offering" as defined
in Rule 415 promulgated under the Securities Act of 1933, as
amended. The Shares will be offered through or to Northland, acting
as agent in connection with agency transactions or as principal in
connection with any principal transactions. The Company will have
the right, but not the obligation, from time to time at its sole
discretion over the 18-month period beginning on the date hereof to
direct Northland on any trading day to act on a principal basis and
purchase up to $15,000,000 of shares of its common stock as set
forth in the Sales Agreement; provided, however only one principal
sale may be requested per day, and in no event on consecutive
calendar days, unless otherwise agreed to by Northland.
Notwithstanding the foregoing, the aggregate amount of shares of
common stock that the Company will direct Northland to sell as
principal in principal transactions (inclusive of any shares sold
by Northland in agency transactions) in any calendar week shall not
exceed $2,000,000.
Northland will be entitled to receive from the Company a commission
in an amount equal to:
(i) 3.0% of the gross sales price per Share sold through it as
agent in agency transactions and
(ii) 6.0% of the purchase price per Share sold to Northland, as
principal in principal transactions.
The Company has agreed to provide Northland with customary
indemnification and contribution rights. The Company will also
reimburse Northland for certain specified expenses as set forth in
the Sales Agreement.
The Shares will be issued pursuant to the Company's shelf
registration statement on Form S-3 (File No. 333- 281042), which
was declared effective by the Securities and Exchange Commission on
August 6, 2024, and a prospectus supplement dated February 10, 2025
filed with the Securities and Exchange Commission pursuant to Rule
424(b) under the Securities Act.
The Sales Agreement may be terminated by either Northland or the
Company, as permitted therein. The Sales Agreement will
automatically terminate upon the earliest of:
(a) the 18-month anniversary of the date of the Sales
Agreement with respect to principal transactions and the 24-month
anniversary of the date of the Sales Agreement with respect to
agency transactions,
(b) the sale of all of the Shares subject to the Sales
Agreement or
(c) the termination of the Sales Agreement as permitted
therein.
About Rekor Systems
Rekor Systems, Inc., headquartered in Columbia, Md., is working to
revolutionize public safety, urban mobility, and transportation
management using AI-powered solutions designed to meet the distinct
demands of each market it serves. The Company works hand-in-hand
with its customers to deliver mission-critical traffic and
engineering services that assist them in achieving their goals. The
Company's vision is to improve the lives of citizens and the world
around them by enabling safer, smarter, and greener roadways and
communities. The Company works towards this by collecting,
connecting, and organizing mobility data, and making it accessible
and useful to its customers for real-time insights and decisioning
for situational awareness, rapid response, risk mitigation, and
predictive analytics for resource and infrastructure planning and
reporting.
East Hanover, N.J.-based Marcum LLP, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
March 25, 2024, citing that the Company has incurred significant
losses and may need to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
As of Sept. 30, 2024, Rekor Systems had $101.20 million in total
assets, $60.86 million in total liabilities, and $40.33 million in
total stockholders' equity.
RENALYTIX PLC: UBS Group AG Holds 5.1% Equity Stake
---------------------------------------------------
UBS Group AG disclosed in a Schedule 13G filed with the U.S.
Securities and Exchange Commission that as of December 31, 2024, it
beneficially owns 16,774,708 ordinary shares of Renalytix plc,
representing approximately 5.1% of the shares outstanding.
UBS Group AG may be reached at:
Andrew Johnson
UBS Group AG
Bahnhofstrasse 45
PO Box CH-8021
Zurich, Switzerland
A full-text copy of UBS Group's SEC report is available at:
https://tinyurl.com/5u38mtb8
About Renalytix
Headquartered in United Kingdom, Renalytix (LSE: RENX) (NASDAQ:
RNLX) -- www.renalytix.com -- is an artificial intelligence enabled
in-vitro diagnostics and laboratory services company that is the
global founder and leader in the field of bioprognosis for kidney
health. In late 2023, the Company's kidneyintelX.dkd test was
recognized as the first and only FDA-authorized prognostic test to
enable early-stage CKD (stages 1-3b) risk assessment for
progressive decline in kidney function in T2D patients. By
understanding how disease will progress, patients and clinicians
can take action earlier to improve outcomes and reduce overall
health system costs.
New York, New York-based CohnReznick LLP, the Company's auditor
since June 2024, issued a "going concern" qualification in its
report dated September 30, 2024, citing that the Company has
suffered recurring losses from operations and has a net capital
deficiency that raise substantial doubt about its ability to
continue as a going concern.
As of Sept. 30, 2024, Renalytix had $4.79 million in total assets,
$16.11 million in total liabilities, and a total shareholders'
deficit of $11.32 million.
RENOVARO INC: GEDi Cube Amends CEO's Contract
---------------------------------------------
Renovaro Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that GEDi Cube B.V., a wholly
owned subsidiary of Renovaro Cube Intl. Ltd., which is a wholly
owned subsidiary of the Company, entered into an amended and
restated employment agreement with Maurice van Tilburg with respect
to his service as GEDi Cube's Chief Executive Officer.
The A&R Employment Agreement supplements the previous employment
agreement between GEDi Cube and Mr. van Tilburg, which was
disclosed on the Company's Current Report on Form 8-K filed with
the Securities and Exchange Commission on January 6, 2025. Any
clauses in the Previous Employment Agreement remain in full force
unless superseded by any clauses in the A&R Employment Agreement.
Pursuant to the A&R Employment Agreement, GEDi Cube will pay Mr.
van Tilburg EUR22,080 (approximately $22,806) per month. In
addition, Mr. van Tilburg shall be eligible to an annual bonus in
the amount of up to EUR96,000 (approximately $99,158), subject to
standard payroll deductions and withholdings, upon the achievement
of certain performance goals as determined by the Company's board
of directors. Mr. van Tilburg will be entitled to participate in a
share option plan defined by the Board. In addition, Mr. van
Tilburg will participate in a collective pension plan administered
by A.S.R. Nederland, provided he is in compliance with the terms
and conditions stipulated in such plan.
Mr. van Tilburg will also be entitled to reimbursement for business
expenses incurred at the request and on behalf of GEDi Cube. Mr.
van Tilburg will also be entitled to:
(i) 20 working days of holiday per year, based on full pay
and
(ii) a holiday allowance in the amount equal to 8% of his gross
salary received in the 12 months preceding the month of payment,
such payment to be made
(A) annually in the month of May or
(B) monthly at Mr. van Tilburg's request. If the A&R
Employment Agreement is terminated prematurely, Mr. van Tilburg's
holiday allowance will be due pro rata.
About Renovaro Inc.
Headquartered in Los Angeles, Calif., Renovaro Inc. --
http://www.renovarobio.com-- formerly Renovaro BioSciences Inc.,
is a biotechnology company intending, if the necessary funding is
obtained, to develop advanced allogeneic cell and gene therapies to
promote stronger immune system responses potentially for long-term
or life-long cancer remission in some of the deadliest cancers, and
potentially to treat or cure serious infectious diseases such as
Human Immunodeficiency Virus (HIV) infections. As a result of the
Company's acquisition of GEDi Cube Intl on Feb. 13, 2024, the
Company has shifted the Company's primary focus and resources to
the development of the GEDi Cube Intl technologies.
Draper, Utah-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated Oct. 10, 2024, citing that the Company has incurred
substantial recurring losses from operations, has used cash in the
Company's continuing operations, and is dependent on additional
financing to fund operations which raises substantial doubt about
its ability to continue as a going concern.
As of Sept. 30, 2024, Renovaro had $121.83 million in total assets,
$23.75 million in total liabilities, and $98.09 million in totals
stockholders' equity.
REYNOSO VINEYARDS: Trustee Hires Bachecki Crom as Accountant
------------------------------------------------------------
Janina M. Hoskins, the Trustee for Reynoso Vineyards, Inc. seeks
approval from the U.S. Bankruptcy Court for the Northern District
of Illinois to employ Bachecki, Crom & Co., LLP as accountant.
The firm will provide these services:
(a) assist the Trustee with Plan development;
(b) prepare monthly operating reports;
(c) prepare financial analysis;
(d) prepare related party transaction analysis;
(e) prepare and file tax returns;
(f) prepare tax projections and perform tax analysis;
(g) analyze tax claims filed in this case;
(h) prepare wage claim withholding computations and payroll tax
returns;
(i) analyze the tax impact of potential transactions;
(j) if necessary, analyze as to avoidance issues, prepare a
solvency analysis, testify as to avoidance issues, serve as
Trustee's general accountant, and consult with the Trustee and the
Trustee's counsel as to those matters during the Chapter 11
proceeding and during any subsequent Chapter 7 proceeding; and
(k) perform such other accounting services as may be required
and in the best interest of the Estate.
The firm will be paid at these rates:
Partners $495 to $630 per hour
Senior Accountant $375 to $480 per hour
Junior Accountant $175 to $370 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
As disclosed in court filings, Bachecki, Crom & Co. is a
disinterested person within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Jay D. Crom, CPA
Bachecki, Crom & Co., LLP
400 Oyster Point Blvd #106
South San Francisco, CA 94080
Telephone: (415) 398-3534
Email: jcrom@bachcrom.com
About Reynoso Vineyards, Inc.
Reynoso Vineyards Inc. is a family-owned vineyard in the Alexander
Valley of Sonoma County California.
Reynoso Vineyards Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-15572) on October 18,
2024. In the petition filed by Joseph Reynoso, president, the
Debtor disclosed between $10 million and $50 million in both assets
and liabilities.
Judge Deborah L. Thorne oversees the case.
Michael J. Greco, Esq., serves as the Debtor's counsel.
REYNOSO VINEYARDS: Trustee Hires Cozen O'Connor as Counsel
----------------------------------------------------------
Janina M. Hoskins, the Trustee for Reynoso Vineyards, Inc., seeks
approval from the U.S. Bankruptcy Court for the Northern District
of Illinois to employ Cozen O'Connor as counsel.
The firm will provide these services:
(a) advise and consult with the Trustee concerning questions
arising in the conduct of the administration of the Estate and
concerning the Trustee's rights and remedies with regard to the
Estate's assets and the claims of secured, preferred and unsecured
creditors and other parties in interest;
(b) assist the Trustee in the carrying out her duties under
Title 11;
(c) advise and assist the Trustee with all issues concerning the
operations of the Debtor including use of cash collateral and DIP
financing;
(d) advise and consult with the Trustee concerning the sale or
other disposition of any assets of the Estate;
(e) advise and appear for, prosecute, defend and represent the
Trustee's interest in contested matters, adversary proceedings, and
other actions arising in or related to the Case;
(f) investigate and, if appropriate, pursue the Estate's
interest in assets of the Estate including claims and causes of
action;
(g) assist in the preparation of such pleadings, motions,
notices, and orders as are required for the orderly administration
of the Estate; and
(h) handle such other matters as the Trustee may require during
the course of her administration of the Case.
The firm will be paid at these rates:
Shareholders $860 - $1,025
Members $685 - $995
Associates $445 - $650
Paralegals $355 - $365
The firm will be paid a retainer of $10,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Ira Bodenstein, Esq., a partner at Cozen O'Connor, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Ira Bodenstein, Esq.
COZEN O'CONNOR
123 N. Wacker Drive, Street, Suite 1800
Chicago, IL 60606
Tel: (312) 474-1647
Email: ibodenstein@cozen.com
About Reynoso Vineyards, Inc.
Reynoso Vineyards Inc. is a family-owned vineyard in the Alexander
Valley of Sonoma County California.
Reynoso Vineyards Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-15572) on October 18,
2024. In the petition filed by Joseph Reynoso, president, the
Debtor disclosed between $10 million and $50 million in both assets
and liabilities.
Judge Deborah L. Thorne oversees the case.
Michael J. Greco, Esq., serves as the Debtor's counsel.
RICHMOND TELEMATICS: Case Summary & Six Unsecured Creditors
-----------------------------------------------------------
Debtor: Richmond Telematics, Inc.
d/b/a Richmond Transmission & Auto Service
580 S. Wickham Road
W. Melbourne, FL 32904
Business Description: Richmond Transmission & Auto Service,
located in West Melbourne, FL, is a highly
rated automotive repair shop specializing in
transmission services. The Company offers a
wide range of services including automatic,
manual, and continuously variable
transmissions, as well as differential,
axle, driveshaft, and suspension repairs.
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-00907
Judge: Hon. Lori V Vaughan
Debtor's Counsel: Jeffrey S. Ainsworth, Esq.
BRANSONLAW, PLLC
1501 E. Concord Street
Orlando, FL 32803
Tel: 407-894-6834
E-mail: jeff@bransonlaw.com
Total Assets: $1,216,440
Total Liabilities: $1,614,121
The petition was signed by Christine Fernandez as president.
A full-text copy of the petition, which includes a list of the
Debtor's six unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/DAWF7ZI/Richmond_Telematics_Inc__flmbke-25-00907__0001.0.pdf?mcid=tGE4TAMA
ROCK MEDICAL: UST Appoints Brent King as Chapter 11 Trustee
-----------------------------------------------------------
Jerry L. Jensen, the Acting U.S. Trustee for Region 13, appointed
Brent King as Chapter 11 trustee for Rock Medical Group, LLC.
The appointment was made pursuant to the order from the U.S.
Bankruptcy Court for the District of Nebraska on February 7.
The Chapter 11 trustee bond will be set in an amount to be
determined by the U.S. Trustee. The bond may require adjustment as
the trustee collects and liquidates assets of the estate, and the
trustee is directed to inform the Office of the U.S. Trustee when
changes to the bond amount are required or made.
The Chapter 11 trustee can be reached at:
Brent King
B. Riley Advisory Services
7101 College Boulevard, Suite 730,
Overland Park, Kansas 66210
Phone: (816) 945-7825
Email: BKing@Brileyfin.com
About Rock Medical Group
Rock Medical Group, LLC is a solution-focused medical staffing
agency offering medical staffing solutions for hospitals, long term
care facilities, specialty nursing units, hospice care, memory
care, rehabilitation facilities, surgical centers, and allied
services.
Rock Medical Group filed Chapter 11 petition (Bankr. D. Neb. Case
No. 24-81090) on November 27, 2024, with up to $1 million in assets
and up to $10 million in liabilities. Loren Rock, managing member
and owner, signed the petition.
Judge Thomas L. Saladino oversees the case.
Patrick R. Turner, Esq., at Turner Legal Group, LLC, represents the
Debtor as bankruptcy counsel.
ROCK N CONCEPTS: Case Summary & Five Unsecured Creditors
--------------------------------------------------------
Debtor: Rock N Concepts LLC
5805 Grandscape Blvd
The Colony, TX 75056
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Eastern District of Texas
Case No.: 25-40416
Debtor's Counsel: Sarah M. Cox, Esq.
SPECTOR & COX
12770 Coit Road Suite 850
Dallas TX 75251
Tel: (214) 310-1321
Email: sarah@spectorcox.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ian Vaughn as manager.
A full-text copy of the petition, which includes a list of the
Debtor's five unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/LO3GRPA/Rock_N_Concepts_LLC__txebke-25-40416__0001.0.pdf?mcid=tGE4TAMA
ROTI RESTAURANTS: Court OKs Catering Van Sale to Broadpeak
----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois has
granted Roti Restaurants, LLC to sell Catering Van to Broadpeak for
$6,000.
The Debtors operates fast-casual Mediterranean restaurants under
the names Roti Modern Mediterranean, Roti Mediterranean Grill, Roti
Bowls. Salads. Pitas., and Roti.
The Court is authorized to sell the Catering Van and is empowered
to take all actions necessary to implement the relief.
About Roti Restaurants, LLC
Roti Restaurants own and operate fast-casual restaurants offering
Mediterranean menu with house-made meats, crisp vegetables, and
flavor-forward sauces.
Roti Restaurants, LLC, and its affiliates concurrently filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ill. Case No. 24-12410) on Aug. 23, 2024. The
petitions were signed by Justin Seamonds as manager. At the time
of
filing, Roti Restaurants, LLC estimated $50,000 in assets and $1
million to $10 million in liabilities.
Judge Donald R. Cassling presides over the case.
Michael P. Richman, Esq. at RICHMAN & RICHMAN LLC represents the
Debtors as counsel. The Debtors hired Ravinia Capital LLC, led by
Thomas Goldblatt, as their investment banker.
The U.S. Trustee for Region 11 appointed Ira Bodenstein as
Subchapter V trustee for Roti Restaurants.
SEAQUEST HOLDINGS: Court OKs Appointment of Chapter 11 Trustee
--------------------------------------------------------------
Judge Benjamin P. Hursh of the U.S. Bankruptcy Court for the
District of Idaho approved the appointment of Matt McKinlay as
Chapter 11 trustee for SeaQuest Holdings, LLC.
The appointment comes upon the application filed by Jonas V.
Anderson, the Acting U.S. Trustee for Region 18, to appoint a
bankruptcy trustee in SeaQuest Holdings' Chapter 11 case.
Mr. McKinlay disclosed in a court filing that he is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
A copy of the appointment order is available for free at
https://urlcurt.com/u?l=RIFpu6 from PacerMonitor.com.
About SeaQuest Holdings LLC
SeaQuest Holdings, LLC better known as SeaQuest, is an interactive
marine, exotic mammal, and bird/reptile life attraction chain.
Guests are encouraged to connect with animals and learn about their
ecosystems through various hands-on activities which include
hand-feeding sharks, stingrays, birds, and tropical animals.
SeaQuest offers a private event venue ideal for school field trips,
birthday parties, and more.
SeaQuest Holdings sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Idaho Case No. 24-00803) on December 2,
2024, with total assets of $659,473 and total liabilities of
$16,653,877. Aaron Neilsen, chief executive officer of SeaQuest
Holdings, signed the petition.
Judge Benjamin P. Hursh handles the case.
The Debtor is represented by:
Matthew T. Christensen
Johnson May, PLLC
Tel: 208-384-8588
Email: mtc@johnsonmaylaw.com
SEBASTIAN HABIB: To Sell Atlanta Property to Township Properties
----------------------------------------------------------------
Sebastian Habib LLC, seeks approval from the U.S. Bankruptcy Court
for the Northern District of Georgia, Atlanta Division, in a motion
to amend order granting the Debtor to sell real property, free and
clear of liens and interests.
On February 11, 2025, the Debtor was authorized by the Court to
sell a residential home and real property located at 567 Center
Hill Ave NW, Atlanta, GA 30318 to REI Group, LLC for $183,000.00.
However, the sale of the Property has not closed. After the Court
entered the Sale Order, Debtor's counsel was informed by the
closing attorney that the Buyer had assigned its right to purchase
the Property to a different entity, Township Properties LLC, who in
turn assigned its right to purchase the Property to Big Country
Holding LLC.
In addition, the closing attorney informed Debtor's counsel that,
in speaking with a representative of the title insurance company,
the title insurance company requests that the Sale Order referenced
"successors and/ or assigns of the buyer to ensure title insurance
can be issued and the sale can close.
The Debtor seeks to substitute the name of the Buyer as "Big
Country Holding LLC,
its successors and/ or assigns" in lieu of Principles REI Group LLC
as previously approved
pursuant to the Sale Order. Beyond the change in buyer, the terms
of the Agreement, including the purchase price, remain the same.
The Debtor negotiated the terms of the Agreement with Principles
REI Group LLC at arm's length. Big Country Holding LLC has agreed
to purchase the Property under the terms of the Agreement.
About Sebastian Habib LLC
Sebastian Habib LLC is a domestic limited liability company
headquartered in Woodstock, Georgia.
Sebastian Habib LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-50148) on January 6,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Lisa Ritchey Craig handles the case.
Adam E. Ekbom, Esq. of Jones & Walden LLC represents the Debtor as
counsel.
SEMTECH CORP: Egan-Jones Cuts Senior Unsecured Ratings to BB
------------------------------------------------------------
Egan-Jones Ratings Company on January 29, 2025, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Semtech Corporation to BB from BB+.
Headquartered in Camarillo, California, Semtech Corporation
designs, manufactures, and markets a wide range of analog and
mixed-signal semiconductors, including integrated circuits,
discrete circuits, and assembly products.
SENA & SENA: Jodi Daniel Dubose Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 21 appointed Jodi Daniel Dubose, Esq.,
at Stichter, Riedel, Blain & Postler P.A. as Subchapter V trustee
for Sena & Sena, L.L.C.
Ms. Dubose will be paid an hourly fee of $350 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Dubose declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jodi Daniel Dubose, Esq.
Stichter, Riedel, Blain & Postler P.A.
41 N. Jefferson Street, Suite 111
Pensacola, FL 32502
Phone: (850) 637-1836
Email: jdubose@srbp.com
About Sena & Sena
Sena & Sena, L.L.C sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Fla. Case No. 24-30936) on Nov. 6,
2024, listing up to $50,000 in assets and between $100,001 and
$500,000 in liabilities.
Judge Karen K Specie presides over the case.
Robert C. Bruner, Esq., at Bruner Wright, P.A. represents the
Debtor as legal counsel.
SK INDUSTRIES: Case Summary & Seven Unsecured Creditors
-------------------------------------------------------
Debtor: SK Industries, LLC
d/b/a Pensacola Athletic Center
7700 West Highway 98
Pensacola, FL 32506
Business Description: SK Industries, LLC, operating as Pensacola
Athletic Center, is a comprehensive fitness
facility offering 24-hour gym access,
personal training, childcare services,
tennis courts, swimming pools, and group
fitness classes. The family-owned business
has been serving the Pensacola community
since 1985, with a focus on health and
wellness for individuals of all ages.
Chapter 11 Petition Date: February 18, 2025
Court: United States Bankruptcy Court
Northern District of Florida
Case No.: 25-30138
Debtor's Counsel: Byron W. Wright III, Esq.
BRUNER WRIGHT, P.A.
2868 Remington Green Circle, Suite B
Tallahassee, FL 32308
Tel: (850) 385-0342
Fax: (850) 270-2441
E-mail: twright@brunerwright.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Sangeeth Karai as manager.
A full-text copy of the petition, which includes a list of the
Debtor's seven unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/3N3FG4A/SK_Industries_LLC__flnbke-25-30138__0001.0.pdf?mcid=tGE4TAMA
SM MILLER: Seeks Chapter 11 Bankruptcy in Texas
-----------------------------------------------
On February 13, 2025, SM Miller Enterprises Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Texas. According to court filing, the Debtor reports between
$1 million and $10 million in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About SM Miller Enterprises Inc.
SM Miller Enterprises Inc. is a contract line-haul dry freight
provider based in Dallas, Texas.
SM Miller Enterprises Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-30527) on
February 13, 2025. In its petition, the Debtor reports estimated
assets between $100,000 and $500,000 and estimated liabilities
between $1 million and $10 million.
Honorable Bankruptcy Judge Stacey G. Jernigan handles the case.
The Debtor is represented by:
Jacob King, Esq.
MUNSCH HARDT KOPF & HARR, P.C.
500 N. Akard St., Ste. 4000
Dallas, TX 75201
Tel: 214-855-7500
Email: jking@munsch.com
SOAP BOX: Mark Sharf Named Subchapter V Trustee
-----------------------------------------------
The U.S. Trustee for Region 17 appointed Mark Sharf, Esq., a
practicing attorney in Los Angeles, as Subchapter V trustee for
Soap Box Cleaners.
Mr. Sharf will charge $660 per hour for his services as Subchapter
V trustee and will seek reimbursement for work-related expenses
incurred.
Mr. Sharf declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark Sharf, Esq.
6080 Center Drive, 6th Floor
Los Angeles, CA 90045
Telephone: (323) 612-0202
Email: mark@sharflaw.com
About Soap Box Cleaners
Soap Box Cleaners is engaged in the laundry and dry cleaning
industry, providing laundry pickup and delivery services.
Soap Box Cleaners sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 25-30084) on January
31, 2025. In its petition, the Debtor reports estimated assets
between $100,000 and $500,000 and estimated liabilities between $1
million and $10 million.
The Debtor is represented by:
Eric J. Gravel, Esq.
THE LAW OFFICES OF ERIC J. GRAVEL
1390 Market St., Suite 200
San Francisco, CA 94102
Tel: (650) 931-6000
Fax: (650) 931-6424
Email: ctnotices@gmail.com
SOLIGENIX INC: Ends Pontifax Loan Agreement With $10M Repayment
---------------------------------------------------------------
Soligenix, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that the Company and its
subsidiaries repaid in full all outstanding obligations due under,
and terminated, the Loan and Security Agreement dated December 15,
2020 with Pontifax Medison Finance (Israel) L.P. and Pontifax
Medison Finance (Cayman) L.P. and Pontifax Medison Finance GP,
L.P., in its capacity as administrative agent and collateral agent
for itself and Lenders, relating to certain term loans issued
pursuant to the Loan Agreement.
Upon the termination and repayment in full of all outstanding
obligations under the Loan Agreement, all related liens and
security interests securing the Company's obligations under the
Loan Agreement were terminated and released. The Company did not
incur any prepayment penalty with respect to the early repayment.
In connection with the Company's early repaying of the obligations
under the Loan Agreement, Shlomo Karako, the Partner of the
Lenders, stated, "Pontifax provided a $10 million loan to Soligenix
over four years ago, and throughout this period, we have greatly
valued our positive collaboration with the company. Their
professionalism and willingness to find creative solutions have
been truly commendable. We are pleased to have supported Soligenix
and look forward to potential future cooperation."
About Soligenix
Headquartered in Princeton, N.J., Soligenix, Inc. --
http://www.soligenix.com-- is a late-stage biopharmaceutical
company focused on developing and commercializing products to treat
rare diseases where there is an unmet medical need. The Company
maintains two active business segments: Specialized BioTherapeutics
and Public Health Solutions.
Tampa, Florida-based Cherry Bekaert LLP, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated March 15, 2024, citing that the Company has recurring losses
and negative cash flows from operations that raise substantial
doubt about its ability to continue as a going concern.
During the year ended December 31, 2023, Soligenix incurred a net
loss of $6,140,730.
SSR HOSPITALITY: Seeks Chapter 11 Bankruptcy in Illinois
--------------------------------------------------------
On February 13, 2025, SSR Hospitality LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Illinois. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed
to 100 and 199 creditors. The petition states funds will be
available to unsecured creditors.
About SSR Hospitality LLC
SSR Hospitality LLC is a hospitality management company
specializing in owning, operating, and managing hotels and related
properties.
SSR Hospitality LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-02208) on February
13, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Deborah L. Thorne handles the case.
The Debtor is represented by:
Penelope Bach, Esq.
BACH LAW OFFICES
P.O. Box 1285
Northbrook, IL 60065
Tel: (847) 564-0808X216
Fax: (847) 564-0985
Email: pnbach@bachoffices.com
STEWARD HEALTH: Massachusetts Owes $22MM Withheld Patient Claims
----------------------------------------------------------------
Ben Zigterman of Law360 reports that Steward Health Care has sued
Massachusetts in Texas bankruptcy court to recover $22 million,
which the insolvent hospital operator alleged it is owed for
treating low-income patients in Massachusetts after the company
filed for Chapter 11 relief.
About Steward Health Care
Steward Health Care System LLC owns and operates the largest
private physician-owned for-profit healthcare network in the U.S.
Headquartered in Dallas, Texas, Steward's operations include 31
hospitals in eight states, approximately 400 facility locations,
4,500 primary and specialty care physicians, 3,600 staffed beds,
and nearly 30,000 employees. Steward Health Care provides care to
more than two million patients annually.
Steward and 166 affiliated debtors filed a Chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024, in the
U.S. Bankruptcy Court for the Southern District of Texas, and the
Honorable Christopher M. Lopez oversees the proceeding.
Weil, Gotshal & Manges LLP is serving as the Company's legal
counsel. AlixPartners, LLP is providing financial advisory services
to the Company, and John Castellano of AlixPartners is serving as
the Company's Chief Restructuring Officer. Lazard Freres & Co. LLC,
Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc. are providing investment banking services to
the Company. McDermott Will & Emery is special corporate and
regulatory counsel for the company. Kroll is the claims agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Akin Gump Strauss Hauer & Feld, LLP.
STOEVER GLASS: Files Chapter 7 Bankruptcy in New York
-----------------------------------------------------
Yun Park of Law360 reports that the 61-year-old Wall Street
municipal bond investment firm Stoever Glass & Co. Inc. has filed
for Chapter 7 bankruptcy, listing liabilities of up to $10 million
and assets under $1 million.
About Stoever Glass & Co. Inc.
Stoever Glass & Co. Inc. is a 61-year-old Wall Street municipal
bond investment firm.
Stoever Glass & Co. Inc. sought relief under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10297) on February 17,
2025. In its petition, it listed liabilities of up to $10 million
and assets under $1 million.
Honorable Bankruptcy Judge John P. Mastando III handles the case.
The Debtor is represented by:
Julie B. Wlodinguer, Esq.
Reitler Kailas & Rosenblatt LLP
11921 Freedom Drive, Suite 550
Reston, VA 20190
Tel: (212) 209-3050
Fax: (212) 371-5500
T-REX SPORTS: Unsecured Creditors to Get 8 Cents on Dollar in Plan
------------------------------------------------------------------
T-Rex Sports, LLC filed with the U.S. Bankruptcy Court for the
Eastern District of Pennsylvania a Plan of Reorganization for Small
Business dated February 10, 2025.
The Debtor operates in the "trading card" collectibles market. The
revenue comes from buying and selling trading cards in the
"sports," "non-sports" and "gaming" categories.
Inside of these categories, our revenue comes from buying and
selling individual cards, as well as procuring allocations of new
products that are releasing. Procuring allocations is a long and
expensive process, but it can pay off massively in the long run.
The Debtor has prepared a projected financial information analysis
which consists of a projected five-year cash flow analysis, along
with a breakdown of the Debtor's necessary business expenses,
including the requisite pro-rata payments to the unsecured
creditors. The Debtor's financial information projections show that
the Debtor will have projected monthly disposable income of
$3,000.
This Plan under Chapter 11 of the Bankruptcy Code proposes to pay
creditors of the Debtor from the cash flow of the Debtor and future
income to be received from the future sales.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the Debtor has valued at approximately
eight (0.08) cents on the dollar from the monthly payments to be
made under this Plan. The Plan also provides for the payment of
administrative claims.
Class 1 shall consist of all allowed non-priority unsecured claims.
Each holder of a Class 1 claim shall be paid from the Debtor's
disposable income over a five-year period pursuant to the terms of
the Plan.
A full-text copy of the Plan of Reorganization dated February 10,
2025 is available at https://urlcurt.com/u?l=MtbiFS from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Paul B. Maschmeyer, Esq.
Maschmeyer Marinas, PC
629A Swedesford Rd.
Swedesford Corporate Center
Malvern, PA 19355
Telephone: (610) 296-3325
Email: pmaschmeyer@maschmarinas.com
About T-Rex Sports
T-Rex Sports, LLC, a company in Bethlehem, Pa., retails raw
baseball cards, basketball cards, football cards, tennis cards,
miscellaneous sports cards, Star Wars cards, Marvel cards, and
non-sports cards. The company also offers sealed waxes and graded
cards.
T-Rex Sports sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Pa. Case No. 24-12402) on July 12,
2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Robert Clyde Parsons, chief executive
officer, signed the petition.
Judge Patricia M. Mayer presides over the case.
Maschmeyer Marinas, PC, is the Debtor's legal counsel.
TBOTG DEVELOPMENT: Seeks to Extend Plan Exclusivity to March 14
---------------------------------------------------------------
TBOTG Development, Inc., d/b/a The Bluffs On The Guadalupe, asked
the U.S. Bankruptcy Court for the Western District of Texas to
extend its exclusivity periods to file a plan of reorganization and
obtain acceptance thereof to March 6, 2025.
The Debtor explains that under the circumstances, including the
filing of a plan within the exclusive period, the length of time
the case has been on file, the size and complexity of the case, and
the fact that the Debtor is not seeking the extension to pressure
creditors, the Debtor believes the relevant factors weigh in favor
of extending exclusivity.
The Debtor claims that this is the company's third request, but it
is necessitated by the Disclosure Statement hearing originally
being set outside of the period in which exclusivity would exist
under the first request and the resulting balloting deadline being
fixed outside the period of exclusivity to obtain acceptances.
The Debtor believes that this extension will give it time to
sufficiently determine and realize the value(s) of the assets at
issue, giving it the ability to structure a plan that is in the
best interest of the creditors, the estate, and the Debtor.
The Debtor asserts that by requesting this relief, it is not the
intention of the Debtor to waive further requests for future
extensions.
TBOTG Development, Inc., is represented by:
Kell C. Mercer, Esq.
Kell C. Mercer, P.C.
901 S. Mopac Expy. Bldg. 1, Suite 300
Austin, TX 78746
Telephone: (512) 627-3512
Email: kell.Mercer@mercer-law-pc.com
About TBOTG Development
TBOTG Development, Inc., owns and operates The Bluffs on The
Guadalupe, a subdivision in Comal County, Texas, having an
appraised value of $32.1 million.
TBOTG Development filed a Chapter 11 petition (Bankr. W.D. Texas
Case No. 24-10411) on April 16, 2024, with $35,996,538 in total
assets and $22,885,007 in total liabilities. William T. Korioth,
president, signed the petition.
Judge Shad Robinson oversees the case.
Kell C. Mercer, PC and Armbrust & Brown, PLLC serve as the Debtor's
bankruptcy counsel and special litigation counsel, respectively.
TEAM MUV FITNESS: Seeks Chapter 11 Bankruptcy in Oregon
-------------------------------------------------------
On February 17, 2025, filed Chapter 11 protection in the U.S.
Bankruptcy Court for the District of Oregon. According to court
filing, the Debtor reports between $1 million and $10 million in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About Team MUV Fitness Troutdale LLC
Team MUV Fitness Troutdale LLC 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.
Team MUV Fitness Troutdale LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Or.Case No. 25-30476) on
February 17, 2025. In its petition, the Debtor reports estimated
assets between $500,000 and $1 million and estimated liabilities
between $1 million and $10 million.
Honorable Bankruptcy Judge Teresa H. Pearson handles the case.
The Debtor is represented by:
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
TEXAS OILWELL: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------
Texas Oilwell Partners, LLC received interim approval from the U.S.
Bankruptcy Court for the Southern District of Texas to use the cash
collateral of its secured lenders.
The interim order signed by Judge Eduardo Rodriguez authorized the
company to use cash collateral to pay the expenses set forth in its
13-week budget.
Cadence Bank and the U.S. Small Business Administration assert
liens on all or substantially all of the company's assets. As of
the petition date, Texas Oilwell Partners owed $654,277.50 and
$149,340 to Cadence Bank and the SBA, respectively.
As protection for the use of their cash collateral, the secured
lenders were granted post-petition replacement liens on the
company's assets. In case of any diminution in the value of their
collateral, the secured lenders will have an administrative expense
claim.
The company's authority to use cash collateral terminates upon
conversion of its Chapter 11 case to one under Chapter 7; removal
of the company as debtor-in-possession; or any default under,
breach of or failure to comply with the interim order, which is not
cured.
The final hearing is scheduled for May 14.
About Texas Oilwell Partners
Established in 2017, Texas Oilwell Partners, LLC is a
privately-held company that specializes in cutting-edge technology
for extended reach, fishing, and gas separation within coiled
tubing and workover rig applications.
Texas Oilwell Partners filed Chapter 11 petition (Bankr. S.D. Texas
Case No. 25-30750) on February 7, 2025, listing up to $50,000 in
assets and between $1 million and $10 million in liabilities. The
petition was signed by Jason Swinford as member.
Judge Eduardo V. Rodriguez oversees the case.
The Debtor is represented by:
Brandon John Tittle, Esq.
Tittle Law Group, PLLC
1125 Legacy Dr., Ste. 230
Frisco, TX 75034
Tel: 972-213-2316
Email: btittle@tittlelawgroup.com
TEXAS WHEEL: Frances Smith Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 6 appointed Frances Smith, Esq., at
Ross, Smith & Binford, PC, as Subchapter V trustee for Texas Wheel
Repair Express 360, LLC.
Ms. Smith will be paid an hourly fee of $475 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Smith declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Frances A. Smith, Esq.
Ross, Smith & Binford, PC
700 N. Pearl Street, Ste. 1610
Dallas, TX 75201
Phone: 214-593-4976
Fax: 214-377-9409
Email: frances.smith@rsbfirm.com
About Texas Wheel Repair Express 360
Texas Wheel Repair Express 360 LLC specializes in the
straightening, repair, replacement, and refinishing of aluminum and
alloy wheels. The company provides services to fix common wheel
damage such as curb scrapes, scratches, chips, and potholes,
restoring wheels to near-new condition. By offering specialized
solutions like powder coating, machining, welding, and
straightening, Wheel Repair 360 helps businesses like new and used
car dealerships, body shops, tire stores, and mechanic shops save
both time and money.
Texas Wheel Repair Express 360 sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 25-30409) on
February 3, 2025. In its petition, the Debtor reported total assets
of $338,188 and total debts of $1,101,411.
Honorable Bankruptcy Judge Scott W. Everett handles the case.
Robert C. Lane, Esq., at The Lane Law Firm, PLLC serves as the
Debtor's counsel.
TGI FRIDAY'S: G5ive Eyes Buyout After Bankruptcy Filing
-------------------------------------------------------
G5ive Restaurant Group, spearheaded by 30-year-old Louisiana Black
entrepreneur Cory Griffin, is making headlines with its ambitious
plan to acquire TGI Fridays through an ownership consortium. This
move represents a significant step toward increasing Black
ownership in the national restaurant industry. Griffin's initiative
aims to empower African American leaders in the economy, building
upon the groundbreaking achievement of Nicholas Johnson, who became
the first African American to own a national burger franchise with
his 2021 acquisition of Fuddruckers.
This acquisition is not merely a business transaction; it's a
powerful statement about economic empowerment and representation.
G5ive Restaurant Group's bold strategy to acquire TGI Fridays, a
brand currently navigating financial challenges including a recent
Chapter 11 bankruptcy filing, demonstrates a commitment to
revitalizing a well-known establishment while simultaneously
creating opportunities for growth and leadership within the African
American community.
"The creation of G5ive Restaurant Group is more than just a
business venture; it's a statement," said Griffin. "By pursuing the
acquisition of TGI Fridays, we are actively working to increase
Black ownership in major restaurant franchises, building upon the
success of Nicholas Johnson and demonstrating the immense potential
within the African American business community."
The G5ive Restaurant Group's acquisition of TGI Fridays will have a
wide-ranging impact, fostering economic growth and providing
valuable leadership roles for African Americans. This strategic
move aims to not only revive a struggling brand but also to pave
the way for increased representation and opportunity within the
restaurant industry.
The G5ive Restaurant Group's plan includes:
-- Revitalizing the TGI Friday's brand through innovative
strategies and operational improvements.
-- Creating numerous job opportunities across various levels of
management and operations.
-- Investing in community engagement programs to foster positive
relationships with local communities.
-- Implementing sustainable business practices to ensure long-term
success and environmental responsibility.
This acquisition signifies a monumental step towards greater
diversity and inclusion within the national restaurant landscape.
It underscores the importance of supporting Black-owned businesses
and fostering economic empowerment within the African American
community. Join our ownership consortium in celebrating this
achievement and supporting the future of G5ive Restaurant Group
About TGI Friday's Inc.
TGI Friday's Inc., doing business as Wow Bao, operates a chain of
restaurants. The Company provides appetizers, sizzlings, seafood,
salads, sandwiches, entres, desserts, and non-alcoholic and
alcoholic beverages. Wow Bao serves customers in the United
States.
TGI Friday's Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No.
24-80069) on Nov. 2, 2024, listing $100,000,001 to $500 million in
both assets and liabilities.
Judge Stacey G Jernigan presides over the case.
Holland N. O'Neil, Esq. at Foley & Lardner LLP represents the
Debtor as counsel.
TGI FRIDAY'S: G5ive Restaurant Plans to Buy Company
---------------------------------------------------
Verdict Food Service reports that G5ive Restaurant Group, founded
by Louisiana-based Black entrepreneur Cory Griffin, has revealed
its intention to acquire the US restaurant chain TGI Fridays
through an ownership consortium. This move aims to boost
African-American ownership in the national restaurant industry.
Griffin's vision is to empower African-American leaders within the
economy, inspired by Nicholas Johnson, who made history in 2021 as
the first African-American to own a national burger franchise with
his acquisition of Fuddruckers, the report states.
In light of TGI Fridays' financial struggles, including a Chapter
11 bankruptcy filing in October 2024, Griffin is focused on
revitalizing the brand. His strategy includes adopting "innovative"
approaches, improving operations, creating job opportunities at all
management levels, engaging with local communities through targeted
initiatives, and promoting sustainability for long-term success.
Cory Griffin stated: "The creation of G5ive Restaurant Group is
more than just a business venture; it's a statement."
About TGI Friday's Inc.
TGI Friday's Inc., doing business as Wow Bao, operates a chain of
restaurants. The Company provides appetizers, sizzlings, seafood,
salads, sandwiches, entres, desserts, and non-alcoholic and
alcoholic beverages. Wow Bao serves customers in the United
States.
TGI Friday's Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No.
24-80069) on Nov. 2, 2024, listing $100,000,001 to $500 million in
both assets and liabilities.
Judge Stacey G Jernigan presides over the case.
Holland N. O'Neil, Esq. at Foley & Lardner LLP represents the
Debtor as counsel.
THERATECHNOLOGIES INC: Orin Hirschman Holds 6.1% Stake
------------------------------------------------------
Orin Hirschman disclosed in a Schedule 13G filed with the U.S.
Securities and Exchange Commission that as of December 31, 2024, he
beneficially owns 3,026,569 shares of Theratechnologies, Inc.
common stock, representing approximately 6.1% of the shares
outstanding. He has sole voting and dispositive power over these
shares, which are held indirectly through AIGH Capital Management
LLC and AIGH Investment Partners LLC.
He may be reached at:
AIGH Investment Partners LLC
6006 Berkeley Avenue
Baltimore, MD 21209
A full-text copy of 's SEC Report is available at:
https://tinyurl.com/484bxt3s
About Theratechnologies
Theratechnologies (TSX: TH) (NASDAQ: THTX) --
http://www.theratech.com/-- is a biopharmaceutical company focused
on the development and commercialization of innovative therapies
addressing unmet medical needs. The Company currently
commercializes two approved products for people living with HIV,
namely: EGRIFTA SV and Trogarzo. In addition to the sale of its
products, the Company is conducting research and development
activities and it has a pipeline of investigational medicines in
the areas of oncology and NASH.
Montreal, Canada-based KPMG LLP, the Company's auditor since 1993,
issued a "going concern" qualification in its report dated Feb. 20,
2024, citing that the Company has incurred net losses and negative
cash flows from operating activities. The Company's Loan Facility
contains various covenants, including minimum liquidity covenants.
There is material uncertainty related to events or conditions that
cast substantial doubt about its ability to continue as a going
concern.
As of Aug. 31, 2024, Theratechnologies had $69.71 million in total
assets, $89.39 million in total liabilities, and a total deficit of
$19.68 million.
THOMAS ROOFING: Hires TaxZone Inc. as Accountant
------------------------------------------------
Thomas Roofing and Repair Inc. seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ
TaxZone, Inc. as accountant.
The firm will prepare the 2023 Returns, Debtor's Monthly Operating
Reports and other financials in the bankruptcy case.
The firm will be paid $1,899.00 per month.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Ed Kotler, Esq.
TaxZone, Inc.
8865 Commodity Cir #4
Orlando, FL 32819
Tel: (407) 888-3131
About Thomas Roofing and Repair Inc.
Thomas Roofing & Repair, Inc. provides roofing replacement and
repair services for commercial and residential properties.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05788) on October 26,
2024, with $466,403 in assets and $2,428,473 in liabilities.
Matthew Thomas, company owner, signed the petition.
Judge Tiffany P. Geyer oversees the case.
L. Todd Budgen, Esq., at Budgen Law, represents the Debtor as
bankruptcy counsel.
TIGER ACQUISITION: Moody's Raises CFR to 'B2', Outlook Stable
-------------------------------------------------------------
Moody's Ratings upgraded the ratings of Tiger Acquisition, LLC (dba
"Sabre Industries, Inc.", "Sabre") including its Corporate Family
Rating to B2 from B3, its Probability of Default Rating to B2-PD
from B3-PD and its senior secured bank credit facility rating to B2
from B3. The outlook is stable.
The ratings upgrade is driven by voluntary debt prepayments that
have led to a decline in adjusted debt to EBITDA to approximately
4.7 times. Debt prepayments have been accomplished from good demand
in Sabre's markets and improved profitability. Moody's expect that
Sabre will be able to maintain lower leverage compared to recent
prior years when adjusted debt to EBITDA had been well above 6
times from macroeconomic-related supply chain and inflationary cost
pressures.
RATINGS RATIONALE
Sabre's B2 CFR reflects the improvement in the company's credit
metrics which has been driven by a combination of debt reduction
and earnings growth, which Moody's expect to be sustained. Sabre
has voluntarily prepaid a sizable portion of its term loan which
has contributed to an 11% reduction in total debt over the last 12
months. Sabre's profitability has steadily improved for more than
two years which has led to stronger cashflow in support of this
debt repayment. Free cash flow for the last twelve months ended
October 31, 2024 was $137 million which is close to 2 times the
free cash flow for fiscal year end April 30, 2024. Working capital
has also improved across this time period driven by procurement
related initiatives. Moody's expect free cash flow to exceed $100
million annually for the next two years.
The rating also incorporates Sabre's moderate revenue scale and the
company's vulnerability to volatility in capex and infrastructure
spending cycles in its telecom markets, which represent around 20%
of sales. Further, Sabre's work is contract based, so the company
must consistently replace maturing contracts with new ones in order
to avoid meaningful swings in operating performance. Sabre's
contracts are multi-year and the company has a solid track record
of contract renewal and currently has a very strong backlog of
existing orders, which helps mitigate some of these risks over the
near-term.
Sabre has leading market positions and high revenue visibility. The
company is a leader in providing engineered structures to the
telecom and utilities industries and has long-term strategic
relationships with key customers. Favorable dynamics underlying the
company's utility and telecom businesses will continue to drive
positive demand over the next 12-18 months. Sabre's utility
customers continue to contract for "grid hardening" projects, or
the upgrading and strengthening of their existing infrastructure.
Telecom customers also continue to invest in their infrastructure,
notably 5G networks, to enhance the reliability and connectivity of
their networks.
The stable outlook is based on Moody's expectation that strong
demand in the utilities and telecom businesses and a very strong
backlog will allow for strong EBITDA and improved cash flow.
Sabre's good liquidity is supported by Moody's expectation that
free cash flow will exceed $100 million annually for the next two
years. The company also has an undrawn $150 million revolving
credit facility which expires in June 2026. Sabre also utilizes a
$125 million securitization facility maturing in July 2027 with
$111 million drawn under the facility. The company's term loan does
not have financial maintenance covenants. However, the revolving
credit facility and the securitization facility contain a springing
covenant that comes into effect when more than 40% of the facility
is drawn.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Sabre achieves healthy organic
revenue and earnings growth, debt/EBITDA declines to around 4 times
along with expectations of a sustained conservative financial
policy, strengthened liquidity and demonstration of reduced
quarterly earnings and cash flow variability.
The ratings could be downgraded if Sabre experiences an erosion in
liquidity, free cash flow declines to break-even or if debt/EBITDA
increases towards 5.5 times.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
Headquartered in Alvarado, Texas, Sabre Industries, Inc.
manufactures towers, poles, equipment enclosures and related
transmission structures used in the wireless communications and
electric transmission and distribution industries. The company is
owned by private equity firm Blackstone.
TIME OUT: Hires Great Neck Realty Company as Marketing Broker
-------------------------------------------------------------
Time Out Properties, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the Eastern District of North Carolina to
employ Great Neck Realty Company of North Carolina, LLC as
marketing broker.
The firm will provide these services:
a. identify potential Buyers based on information to be provided
by the Trustee and make recommendations to prepare the Sale Assets
for proper investigation by potential Buyers;
b. prepare or assemble materials about the Sale Assets for
consideration by prospective Buyers and prepare sales materials,
which would include information regarding the Sale Assets, in each
case, based on information provided by the Trustee;
c. prepare a program which may include marketing a potential
Transaction through such methods as the Broker may deem
appropriate;
d. contact potential Buyers for consideration and evaluation and
require potential Buyers to execute Confidentiality Agreements in
favor of the Debtor;
e. facilitate the development of a Virtual Data Room (VDR) with
information provided by the Debtor;
f. provide access to the VDR or send materials to interested
parties regarding the Sale Assets, after completing confidentiality
documents;
g. respond, provide information, communicate and obtain offers
from interested parties; and
h. advise the Trustee and make recommendations as to whether a
particular bid should be accepted.
The firm will be paid a "Transaction Fee" 2.5 percent of Gross
Proceeds less than or equal to $10,000,000; plus 1.75 percent of
the incremental Gross Proceeds between $10,000,001 and $20,000,000;
plus .75 percent of the incremental Gross Proceeds between
$20,000,001 and $30,000,000; plus .50 percent of the incremental
Gross Proceeds in excess of $30,000,000. In the event that there is
more than one Transaction, the Transaction Fee shall apply to
cumulative Gross Proceeds realized from all Transactions. A
Transaction Fee shall be payable at closing of a Transaction. Any
third-party broker representing a prospective buyer shall be paid
by its buyer.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Robert J. Tramantano
Great Neck Realty Company
of North Carolina, LLC
1500 W. Main Street
P.O. Box 609
Carrboro, NC 27510
Tel: (516) 902-9568
Email: rtramantano@greatneckrealtyco.com
About Time Out Properties, LLC
Time Out is a holding company that owns 100% of the equity in each
of Prairie Knolls, Grand Valley MHP, LLC, and Rolling Acres MHC,
LLC, each of which own and operate a mobile home park.
Time Out Properties, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 24-19722) on
September 20, 2024, with $1 million to $50 million in both assets
and liabilities. The petition was signed by Neil Carmichael Bender,
II as manager.
Judge Scott M Grossman oversees the case.
The Debtor is represented by Bradley S. Shraiberg, Esq. at
Shraiberg Page P.A.
TRINITY INDUSTRIES: Egan-Jones Retains B+ Senior Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company on January 28, 2025, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Trinity Industries, Inc. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Dallas, Texas, Trinity Industries, Inc.
manufactures transportation, construction, and industrial products.
TRINITY PLACE: MFP Investors, 2 Others Report 12.6% Equity Stake
----------------------------------------------------------------
MFP Investors LLC disclosed in a Schedule 13G/A filed with the U.S.
Securities and Exchange Commission that as of February 6, 2025, it
and its affliates -- MFP Partners, L.P. and managing director
Jennifer Cook Price -- beneficially owns 8,232,617 shares of
Trinity Place Holdings Inc.'s Common Stock, par value $0.01 per
share. The reported ownership represents approximately 12.6% and is
based on 65,314,726 shares of Common Stock outstanding based on the
Company's most recent Form 10-Q.
MFP Investors LLC is the general partner of MFP Partners, L.P.
Jennifer Cook Price is managing director of MFP and managing member
and managing director of MFP Investors LLC.
The 8,232,617 shares of common stock, par value $0.01 per share, of
Trinity Place are held directly by MFP Partners. Due to their
respective relationships with each other, each of the Reporting
Persons may be deemed to share voting and dispositive power with
respect to the 8,232,617 shares of Common Stock.
MFP Investors LLC may be reached at:
Timothy E. Ladin, Chief Operating Officer, Chief Legal Officer
& Chief Compliance Officer of MFP Partners, L.P., by its Gen.
Ptnr., MFP Investors LLC
909 Third Ave
33rd Floor
New York N.Y. 10022
212 752-7280
A full-text copy of MFP Investors' SEC Report is available at:
https://tinyurl.com/52sdt2d8
About Trinity Place
Trinity Place Holdings Inc. is a real estate holding, investment,
development, and asset management company. On Feb. 14, 2024, the
Company's real estate assets and related liabilities were
contributed to TPH Greenwich Holdings LLC, which is owned 95% by
the Company, with an affiliate of the lender under the Company's
corporate credit facility owning a 5% interest in, and acting as
manager of, such entity. These real estate assets include: (i) the
property located at 77 Greenwich Street in Lower Manhattan, which
is substantially complete as a mixed-use project consisting of a
90-unit residential condominium tower, retail space, and a New York
City elementary school; (ii) a 105-unit, 12-story multi-family
property located at 237 11th Street in Brooklyn, New York; and
(iii) a property occupied by retail tenants in Paramus, New
Jersey.
As of September 30, 2024, Trinity Place Holdings had $3 million in
total assets, $1.5 million in total liabilities, and $1.5 million
in total stockholders' equity.
Going Concern
The Company cautioned in its Quarterly Report for the period ended
September 30, 2024, that there is substantial doubt about its
ability to continue as a going concern.
The Company said, "We have a limited amount of unrestricted cash
and liquidity available for working capital and our cash needs are
variable under different circumstances. If the Asset Management
Agreement does not remain in place and the related fees are not
increased significantly, the Company's cash and cash equivalents
will not be sufficient to fund the Company's operations and
corporate expenses beyond the next few months, unless we are able
to raise additional capital or enter into a strategic transaction,
creating substantial doubt about our ability to continue as a going
concern. There is no assurance that we will be successful in
consummating any such strategic transaction or obtaining capital
sufficient to meet our operating needs, in each case, on terms or a
timeframe acceptable to us or at all. Even if a strategic
transaction and/or other transaction is entered into, the benefits
to shareholders, if any, of such transactions are uncertain.
Further, in the event that we are unable to identify or consummate
such transactions, we would be required to evaluate additional
alternatives in restructuring our business and our capital
structure, including but not limited to, filing for bankruptcy
protection, liquidating, dissolving and/or seeking another
out-of-court restructuring of our liabilities or liquidation."
TV TRANSPORT: Brian Shapiro Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 17 appointed Brian Shapiro as
Subchapter V trustee for TV Transport, Inc.
Mr. Shapiro will be paid an hourly fee of $625 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Shapiro declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brian Shapiro
510 S. 8th Street
Las Vegas, NV 89101
Phone: (702) 386-8600
Email: brian@trusteeshapiro.com
About TV Transport Inc.
TV Transport Inc. operating as A-One Exhibits from its Las Vegas
headquarters, provides transportation, warehousing, and
installation services. The veteran-owned company offers long-haul
trucking, air freight, local drayage, and warehousing solutions,
serving major clients in the entertainment and hospitality sectors
throughout the Las Vegas area.
TV Transport sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Nev. Case No. 25-10207) on January 16, 2025. In its
petition, the Debtor reported between $500,000 and $1 million in
both assets and liabilities.
Judge August B. Landis handles the case.
The Debtor is represented by Charles Barnabi, Jr., Esq., at The
Barnabi Law Firm, PLLC.
VETERANS EMPOWERING: Richard Cook Named Subchapter V Trustee
------------------------------------------------------------
Brian Behr, the U.S. Bankruptcy Administrator for the Eastern
District of North Carolina, appointed Richard Preston Cook as
Subchapter V trustee for Veterans Empowering Veterans, Inc.
About Veterans Empowering Veterans
Veterans Empowering Veterans, Inc. sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-00445)
on February 6, 2025, with $100,001 to $500,000 in assets and
liabilities.
J.M. Cook, Esq. at J.M. Cook, P.A. represents the Debtor as legal
counsel.
VIASAT INC: Incurs $146.9 Million Net Loss in Fiscal Q3
-------------------------------------------------------
Viasat, Inc. filed with the U.S. Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net loss of $146.9
million on $1.12 billion of total revenues for the three months
ended December 31, 2024, compared to a net loss of $119.3 million
on $1.13 billion of total revenues for the three months ended
December 31, 2023.
For the nine months ended December 31, 2024, the Company reported a
net loss of $290.4 million on $3.37 billion of total revenues,
compared to a net loss of $962 million on $3.13 billion of total
revenues for the same period in 2023.
As of December 31, 2024, the Company had $15.6 billion in total
assets, $10.8 billion in total liabilities, and $4.8 billion in
total equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/yckfkt77
About Viasat Inc.
Viasat, Inc., headquartered in Carlsbad, California, operates a
consumer satellite broadband internet business, an in-flight
connectivity business, and provides satellite and related
communications, networking systems, and services to government and
commercial customers. Inmarsat operates a satellite communications
network using L-band, Ka-band, and S-band spectrum and provides
voice and data services to customers on land, at sea, and in the
air.
* * *
Egan-Jones Ratings Company on November 5, 2024, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by Viasat, Inc.
VIEWBIX INC: MMCAP International Holds 8.76% Equity Stake
---------------------------------------------------------
MMCAP International Inc. SPC and MM Asset Management Inc. disclosed
in a Schedule 13G filed with the U.S. Securities and Exchange
Commission that as of December 31, 2024, they beneficially own
1,855,921 shares of Viewbix Inc. common stock, representing
approximately 8.76% of the outstanding shares.
MMCAP International Inc. SPC may be reached at:
c/o Mourant Governance Services (Cayman) Limited
94 Solaris Avenue
Camana Bay, P.O. Box 1348
Grand Cayman, KY1-1108, Cayman Islands
-- and --
MM Asset Management Inc. may be reached at:
161 Bay Street
TD Canada Trust Tower, Suite 2240
Toronto, ON, M5J 2S1, Canada
A full-text copy of MMCAP International's SEC Report is available
at:
https://tinyurl.com/msrpxpzu
About Viewbix
Headquartered in Ramat Gan, Israel, Viewbix and its subsidiaries,
Gix Media and Cortex Media Group Ltd., operate in the field of
digital advertising. The Group has two main activities that are
reported as separate operating segments: the search segment and the
digital content segment. The search segment develops a variety of
technological software solutions, which perform automation,
optimization, and monetization of internet campaigns, for the
purposes of obtaining and routing internet user traffic to its
customers. The search segment activity is conducted by Gix Media.
The digital content segment is engaged in the creation and editing
of content, in different languages, for different target audiences,
for the purposes of generating revenues from leading advertising
platforms, including Google, Facebook, Yahoo and Apple, by
utilizing such content to obtain and route internet user traffic
for its customers. The digital content segment activity is
conducted by Cortex.
Tel Aviv, Israel-based Brightman Almagor Zohar & Co., A Firm in the
Deloitte Global Network, the Company's auditor since 2012, issued a
"going concern" qualification in its report dated March 25, 2024,
citing that the Company's non-compliance with its debt covenants as
of Dec. 31, 2023 and the decrease in revenues and positive cash
flows from operations may result in the Company's inability to
repay its debt obligations during the 12-month period following the
issuance date of these financial statements. These conditions
raise a substantial doubt about the Company's ability to continue
as a going concern.
As of Sept. 30, 2024, Viewbix had $30.80 million in total assets,
$16.93 million in total current liabilities, $2.30 million in total
non-current liabilities, and $11.57 million in total equity.
VOYAGER DIGITAL: Protective Order Issued in Metropolitan Bank Suit
------------------------------------------------------------------
The Honorable Paul A. Engelmayer of the United States District
Court for the Southern District of New York granted the request of
the parties in the case captioned as MICHAEL WYSE, as Plan
Administrator for the Voyager Wind-Down Debtor, Plaintiff, v.
METROPOLITAN COMMERCIAL BANK, Defendant, Case No. 24-cv-09108-PAE
(S.D.N.Y.) for a protective order pursuant to Federal Rule of Civil
Procedure 26( c) to protect the confidentiality of nonpublic and
competitively sensitive information that they may need to disclose
in connection with discovery in this action.
On Jan. 16, 2025, the Court directed the Parties to prepare a
confidentiality agreement that is consistent with the
confidentiality provisions of the Stipulated Order for Permanent
Injunction, Monetary Judgment, and Other Relief entered in Federal
Trade Commission v. Voyager Digital, LLC, No. 23 Civ. 8960
(S.D.N.Y. Nov. 27, 2023).
The Court finds good cause exists for issuance of an appropriately
tailored confidentiality order governing this action.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=ZahI3y from PacerMonitor.com.
Counsel to Michael Wyse, as the Plan Administrator for the Voyager
Wind-Down Debtor:
Darren Azman, Esq.
John J. Calandra, Esq
Joseph B. Evans, Esq.
Lisa Gerson, Esq.
MCDERMOTT WILL & EMERY LLP
One Vanderbilt A venue
New York, NY 10017-3852
Telephone: (212) 547-5400
Facsimile: (212) 547-5444
E-mail: dazman@mwe.com
jcalandra@mwe.com
jbevans@mwe.com
lgerson@mwe.com
Counsel to Metropolitan Commercial Bank:
John K. Crossman, Esq.
Jeffrey L. Friesen, Esq.
ZUKERMAN GORE, BRANDEIS & CROSSMAN LLP
Eleven Time Square
New York, NY 10036
Telephone: (212) 233-6700
Facsimile: (212) 233-6433
E-mail: jcrossman@zukermangore.com
jfriesen@ zukermangore.com
About Voyager Digital Holdings
Based in Toronto, Canada, Voyager Digital Holdings Inc. --
https://www.investvoyager.com/ -- ran a cryptocurrency platform.
Voyager claimed to offer a secure way to trade over 100 different
crypto assets using its easy-to-use mobile application. Through its
subsidiary Coinify ApS, Voyager provided crypto payment solutions
for both consumers and merchants around the globe.
Voyager Digital Holdings Inc. and two affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead
Case No. 22-10943) on July 5, 2022. In the petition filed by
Stephen Ehrlich, chief executive officer, the Debtors estimated
assets and liabilities between $1 billion and $10 billion.
Judge Michael E. Wiles oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP as general bankruptcy
counsel; Berkeley Research Group, LLC, as financial advisor; Moelis
& Company as investment banker; Consello Group as strategic
financial advisor; Deloitte Tax, LLP as tax services provider; and
Deloitte & Touche, LLP, as accounting advisor. Stretto, Inc., is
the claims agent.
On July 19, 2022, the U.S. Trustee for Region 2 appointed an
official committee of unsecured creditors in the Chapter 11 cases.
The committee tapped McDermott Will & Emery, LLP as bankruptcy
counsel; FTI Consulting, Inc., as financial advisor; Cassels Brock
& Blackwell, LLP as Canadian counsel; and Epiq Corporate
Restructuring, LLC, as noticing and information agent.
The committee also tapped the services of Harney Westwood &
Riegels, LP, in connection with Three Arrows Capital Ltd.'s
liquidation proceedings in British Virgin Islands.
On July 6, 2022, the Debtors filed a joint Chapter 11 plan of
reorganization.
* * *
Following an auction process, the Debtors in September 2022
selected the bid submitted by FTX US' West Realm Shires Inc. as the
winning bid for the assets. But after a series of events, FTX
collapsed in November 2022, before the sale could be completed.
After reopening bidding, Voyager Digital selected the offer from
U.S. exchange BAM Trading Services Inc. (doing business as
"Binance.US") as the highest and best bid for its assets. Binance's
bid is valued at $1.022 billion.
In April 2023, Binance.US called off its deal to buy assets of
bankrupt crypto lender Voyager Digital, citing a "hostile and
uncertain regulatory climate."
WALGREENS BOOTS: Moody's Alters Outlook on 'Ba3' CFRR to Negative
-----------------------------------------------------------------
Moody's Ratings changed the outlook of Walgreens Boots Alliance,
Inc.'s ("WBA") and its subsidiary Walgreen Co. (together combined
referred to as "Walgreens") to negative from stable. Concurrently,
Moody's affirmed WBA's corporate family rating at Ba3, its
probability of default rating at Ba3-PD, its senior unsecured notes
ratings at B1 and affirmed the B1 senior unsecured notes rating
issued at Walgreen Co. WBA's backed commercial paper program rating
was affirmed at Not Prime and its speculative grade liquidity
rating ("SGL") remains unchanged at SGL-2.
The change to a negative outlook reflects the high execution risks
associated with Walgreens' multi-year turnaround strategy aimed at
returning the company to profitable growth amidst ongoing
operational challenges. These challenges include a weak consumer
environment, ongoing legal disputes that could result in
significant liability payments, dark rent given the comapny's plan
to close up to 14% of its underperfoming stores through 2027,
persistent inflation and reimbursement rate pressure. While
leverage has improved due to debt repayment and modest EBITDA
growth, interest coverage remains weak and Moody's expect negative
free cash flow over the next 12 months despite the recent
suspension of the company's dividend and reduced capital spending.
For the twelve months ending November 30, 2024, Walgreens'
debt/EBITDA (including the present value of the opioid liability),
was high at 5.5x, down from 6.0x in fiscal 2024 (ending August 31,
2024). EBITA to interest was weak at 1.5x, up from 1.4x for the
same period, and still well below the company's 1.75x downgrade
threshold.
The affirmation of the ratings reflects Walgreens' positive steps
to preserve free cash flow and reduce debt, such as suspending its
dividend, reducing capital spending and pre-settling several of its
variable prepaid contracts, proceeds of which will be used to repay
debt. The affirmation also reflects the company's good liquidity,
focus on debt repayment, and Moody's belief that Walgreens'
operating performance and metrics will improve over the next 12
months. Moody's also expect that Walgreens will address its
upcoming debt maturities in a timely manner.
RATINGS RATIONALE
Walgreens' Ba3 CFR reflects its large scale and leading market
position as the second largest pharmacy chain in the US. The rating
also indicates Moody's view of the drugstore industry which
benefits from the aging of the US, UK and European populations
which will likely increase long term use of prescription drugs.
Moody's believe that demand for prescription drug medication is
mostly resilient to recessionary pressures. The rating is also
supported by Walgreens' good liquidity, recent suspension of its
$864 million dividend, suspension of its share repurchase program
and commitment to repaying debt. The company recently pre-settled
several of its variable prepaid contracts for $300 million,
proceeds of which will be used to repay debt. However, the
industry continues to face ongoing reimbursement rate pressures and
an evolving healthcare industry. Walgreens faces significant
execution risks as it seeks to turnaround its operating performance
particularly in light of its plan to close up to 14% (or about
1,200) of its underperforming stores within the competitive and
highly complex retail drug store sector. The Ba3 rating is
predicated on Moody's expectation that the current weakness in
Walgreens' credit metrics is temporary and that leverage and
coverage metrics will improve in 2025 to levels more in line with a
Ba rating.
Walgreens' SGL-2 reflects good liquidity. The company's liquidity
is largely supported by its $5.75 billion in fully available
revolving credit facilities, which include a $2.25 billion revolver
expiring in August 2026 and a $3.5 billion revolver expiring June
2027. Walgreens had $1.2 billion of unrestricted cash at November
30th, 2024. In addition, Walgreens has a large pool of unencumbered
assets.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if Walgreens' strategic review results in
material improvement in profitability that leads to a sustained
improvement in credit metrics and consistently positive free cash
flow. An upgrade would also require the company to maintain good
liquidity, to address its upcoming maturities in a timely manner,
and to demonstrate financial policies that support debt/EBITDA
(including the present value of the opioid liability) sustained
below 4.75x and EBITA to interest sustained above 2.25x.
Ratings could be downgraded if Walgreens' strategic review does not
result in steady operational improvement that leads to stronger
credit metrics and sustained positive free cash flow. Ratings could
also be downgraded should liquidity weaken, should financial
policies become more aggressive or should the company fail to
address its upcoming debt maturities in a timely manner.
Quantitatively ratings could be downgraded if debt/EBITDA
(including the present value of the opioid liability) is sustained
above 5.5x or EBITA/interest is sustained below 1.75x.
Walgreens Boots Alliance, Inc. is a global retail pharmacy
operator. Walgreens together with the companies in which it has
equity method investments has a presence in more than 8 countries,
and has more than 12,500 locations. The company generated about
$150 billion in annual revenue and $6.4 billion of EBITDA for the
LTM ended November 30th, 2024.
The principal methodology used in these ratings was Retail and
Apparel published in November 2023.
WELLPATH HOLDINGS: Wants to Exit Chapter 11 Bankruptcy in March
---------------------------------------------------------------
Clara Geoghegan of Law360 Bankruptcy Authority reports that a Texas
bankruptcy judge instructed prison healthcare provider Wellpath
Holdings to revise its proposed Chapter 11 plan disclosure
statement after a lengthy hearing on February 18, 2025.
Wellpath stressed the need for swift plan confirmation despite
creditors' concerns about the case's speed, the report states.
About Wellpath Holdings, Inc.
Wellpath Holdings, Inc. f/k/a CCS-CMGC Holdings, Inc., is a
provider of medical and mental healthcare in jails, prisons, and
inpatient and residential treatment facilities.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90533) on
November 11, 2024, with $1 billion to $10 billion in assets and
liabilities. Timothy Dragelin, chief restructuring officer and
chief financial officer, signed the petitions.
The Debtor tapped Marcus A. Helt, Esq. at McDERMOTT WILL & EMERY
LLP as bankruptcy counsel; FTI CONSULTING, INC. as financial
advisor; and LAZARD FRERES & CO. LLC and MTS PARTNERS, LP as
investment bankers.
WENDY'S CO: Egan-Jones Retains B Senior Unsecured Ratings
---------------------------------------------------------
Egan-Jones Ratings Company on February 5, 2025, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Wendy's Company. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Dublin, Ohio, Wendy's Company operates fast-food
restaurants.
WIN WASTE: S&P Places 'CCC+' ICR on CreditWatch Developing
----------------------------------------------------------
S&P Global Ratings affirmed its 'CCC+' issuer credit and
issue-level ratings on WIN Waste Innovations Holdings Inc. and
placed all ratings on CreditWatch with developing implications. S&P
revised the recovery rating on existing debt to '3' (rounded
estimate: 55%) from '4'. S&P also assigned a 'CCC+' rating and '3
recovery rating to the proposed term loan and revolving credit
facilities.
The CreditWatch developing placement reflects the likelihood of a
near-term rating action. S&P said, "We could raise ratings,
including the 'CCC+' issuer credit rating, by a notch to 'B-' if
the transaction closes as planned and improves WIN Waste's
liquidity. We could lower ratings if the transaction does not close
in the next several weeks, the revolving credit facility becomes
current, and liquidity remains strained."
The proposed transaction could potentially improve WIN Waste's
liquidity, but if the transaction is unsuccessful, its liquidity
could weaken.
The company's announced launch of a debt transaction potentially
addresses several key credit weakness. These include the imminent
maturity of its $477 million revolving credit facility in March
2026, which becomes current in March of this year, and the imminent
maturity of the accounts receivable facility. Another key issue is
the absence of any availability under the company's revolving
credit facility while it's generating negative free cash flow. S&P
believes WIN Waste's liquidity could strengthen if it effectively
extends the maturity of the revolving credit facility beyond 2026
and thereby pushes out a very onerous and imminent debt maturity
and the company utilizes the approximate $300 million it plans to
raise in term loan B to pay down borrowings under the revolver,
freeing up availability.
S&P said, "On the other hand, we believe the company's liquidity
could weaken should it not extend maturity in a timely manner or
free up availability in a meaningful manner.
"We expect WIN Waste's operating performance to remain steady or
improve.
"The company's EBITDA has improved steadily from trough levels in
2023 and 2022, when unexpected operating issues and macroeconomic
challenges hurt earnings. We believe it has now built up a brief
track record of improving earnings. We expect the company to at
least maintain earnings at current levels, in 2025. We specifically
expect the company's Waste-to-Energy business to continue to
contribute to this level of EBITDA.
"The company's debt leverage has declined, but further declines
might be constrained. We expect WIN Waste's S&P Global
Ratings-adjusted total debt to EBITDA to be 6x-7x. This is a
meaningful improvement from a year ago, when the ratio approached
10x. In our calculations, we exclude certain addbacks to
company-reported EBITDA and add back certain items such as
capitalized operating leases to company-reported debt. However,
continued negative cash generation will likely prevent a further
decrease in its debt leverage.
"Our ratings continue to factor in WIN Waste's business strengths.
"We continue to view the company's operations within the
Northeastern U.S. and South Florida markets as a strength given the
shrinking landfill capacity and limits (related to environmental
regulations) on expansion of such capacity. We expect earnings in
2025 will increasingly reflect these strengths, as well as
improvements in pricing in energy markets in particular.
"Prior to 2024, external and unanticipated internal challenges hurt
earnings. We don't anticipate a repeat of that situation in our
base case given steps undertaken by management to strengthen
operations. The company has been able to better leverage its
strengths in recent quarters. We will continue to monitor its
ability to insulate performance from unexpected setbacks and future
macroeconomic challenges.
"We will resolve the CreditWatch Developing listing in a few weeks
or if the proposed transaction closes as planned." S&P will likely
raise its ratings by a notch if:
-- The company's proposed transaction goes to plan and the
maturity of the revolving credit and asset-based lending (ABL)
facilities are extended before they become current, beyond 2026;
and
-- It releases availability under these facilities by paying down
borrowings so there is an improvement in the projected sources of
funds by uses of funds.
The company in S&P's view will be able to at least maintain credit
metrics at current levels, including total debt to EBITDA at 7x or
below.
S&P could downgrade ratings by at least one notch under the
following circumstances:
-- The company is unable to close the transaction in a timely
manner;
-- The company's revolving credit facility or ABL become current;
-- Availability under credit facilities is minimal;
-- The company is unable to meet its covenants or cannot access
its liquidity sources, including its revolving credit facility;
-- S&P believes the company is likely to engage in a distressed
exchange which S&P views as tantamount to a default; and
-- Unexpected operating issues or plant downtimes arise, which
could hurt earnings or cash flow generation.
YUM! BRANDS: Egan-Jones Retains BB- Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on January 31, 2025, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by YUM! Brands, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Louisville, Kentucky, YUM! Brands, Inc. owns and
franchises quick-service restaurants.
YUM! BRANDS: Moody's Affirms 'Ba2' CFR, Outlook Remains Stable
--------------------------------------------------------------
Moody's Ratings affirmed Yum! Brands, Inc.'s ("Yum") ratings,
including its Ba2 corporate family rating, Ba2-PD probability of
default rating, Ba3 senior unsecured notes ratings and (P)Ba3
senior unsecured shelf rating. Moody's also affirmed the ratings on
its KFC Holding Co. ("KFC") subsidiary, including the Baa3 backed
senior secured bank credit facilities ratings and Ba2 backed senior
unsecured notes rating. Yum's speculative grade liquidity rating
(SGL) remains unchanged at SGL-1. The rating outlook for both
issuers remains stable.
The affirmations and stable outlook reflect Moody's expectation for
Yum to continue to drive profitable growth despite a difficult
consumer environment while maintaining a balanced financial policy.
Moody's expect further deleveraging to be limited as the company
actively maintains to its new net leverage target (as defined by
Yum) of 4.0 times, which was reduced from 5.0 times. Moody's also
expect liquidity to remain very good, supported by solid positive
free cash flow generation and ample excess revolver availability,
and expectation that debt obligations will be refinanced well ahead
of their maturity. The uncertainty around the timing and ultimate
outcome of its ongoing IRS tax appeal remains an ongoing rating
constraint.
RATINGS RATIONALE
Yum's Ba2 CFR benefits from its significant scale, global
geographic reach, diverse portfolio of well recognized global brand
names and very good liquidity. In addition, Yum franchises 98% of
its restaurants, which reduces its overall earnings volatility and
capital requirements as compared to other restaurant operators.
Yum's credit profile is constrained by its relatively high
historical leverage profile, although having moderated over the
past two years through earnings growth and debt reduction with
Moody's-adjusted debt/EBITDA improving to around 4.4x at the end of
2024 from 5.0x at the end of 2022. Other constraining factors
include the reliance on securitizations to support cash flow for
the borrowing group, as well as uncertainty around the timing and
ultimate outcome of its ongoing IRS tax appeal related to its 2014
business realignment which the IRS asserts a tax underpayment of
$2.1 billion (as of September 2024, excluding penalties and
interest).
The stable outlook reflects Moody's expectation for continued
revenue and earnings growth from positive same store sales and
global unit expansion. Moody's also expect the company to maintain
very good liquidity, through solid free cash flow, as well as a
prudent financial policy that balances dividends and share
repurchases while maintaining credit metrics near current levels.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could result in an upgrade include a sustained
improvement across all restaurant concepts along with a financial
policy that results in Moody's-adjusted debt to EBITDA sustained
well below 5.0x and EBIT to Interest sustained above 3.0x. A higher
rating would also require continued very good liquidity, and
elimination of potential risks related to the ongoing IRS tax
appeal.
Factors that could result in a downgrade include a sustained
deterioration in performance, more aggressive financial policies or
increase in debt that led to Moody's-adjusted debt to EBITDA
remaining at or above 5.7x or EBIT to Interest below 2.5x on a
sustained basis.
Headquartered in Louisville, Kentucky, Yum! Brands, Inc. is the
owner, operator and franchisor of quick service restaurants with
brands that include KFC, Taco Bell, Pizza Hut and the Habit Burger
Grill. Revenue exceeded $5.8 billion (excluding franchise
contributions for advertising) in the year ended December 31, 2024,
with estimated systemwide sales of around $66 billion.
The principal methodology used in these ratings was Restaurants
published in August 2021.
ZIPS CAR WASH: Hires Kroll as Claims and Noticing Agent
-------------------------------------------------------
Zips Car Wash, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Texas to employ Kroll Restructuring
Administration LLC as claims, noticing, and solicitation agent.
The firm will oversee the distribution of notices and will assist
in the maintenance, processing and docketing of proofs of claim
filed in the Debtors' Chapter 11 cases.
Prior to the petition date, the Debtors provided Kroll an advance
in the amount of $75,000.
Benjamin Steele, managing director at Kroll, disclosed in a court
filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Benjamin J. Steele
Kroll Restructuring Administration LLC
55 East 52nd Street, 17th Floor
New York, NY 10055
About Zips Car Wash, LLC
Zips Car Wash LLC and affiliates are among the largest privately
owned express car wash operators in the U.S., offering advanced car
wash services using cutting-edge chemistry like Ultra HD Glaze and
Graphene-Ceramic Fusion X to deliver superior results, including
glossy tires, streak-free windows, and a well-protected paint job.
Founded in 2004 with just two locations in rural Arkansas, the
Debtors have expanded significantly through strategic acquisitions,
now operating over 260 locations across 23 states. Headquartered in
Plano, Texas, the Debtors run their businesses under the Zips, Jet
Brite, and Rocket Express brands and serve their customers through
two core revenue channels: a traditional pay-per-wash format and
Zips Unlimited, their flagship monthly subscription program with
over 600,000 members.
Zips Car Wash LLC and affiliates sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80069)
on February 5, 2025. In its petition, the Debtor reports estimated
assets between $500 million and $1 billion and estimated
liabilities between $1 billion and $10 billion.
Honorable Bankruptcy Judge Michelle V. Larson handles the case.
The Debtors' local bankruptcy counsel is Jason S. Brookner, Esq.,
Aaron M. Kaufman, Esq., and Amber M. Carson, Esq., at Gray Reed,
Dallas, Texas.
The Debtors' general bankruptcy counsel is Joshua A. Sussberg,
Esq., and Ross J. Fiedler, Esq., at Kirkland & Ellis LLP, in New
York, and Lindsey Blumenthal, Esq., at Kirkland & Ellis LLP,
Chicago, Illinois.
The Debtors' investment banker is Evercore Group LLC. The Debtors'
financial advisor is Alixpartners LLP. The Debtors' Noticing &
Claims Agent is Kroll Restructuring Administration LLC. The
Debtors' Real Estate Consultant & Advisor is Hilco Real Estate LLC.
The Debtors' tax advisor is PWC US TAX LLP.
[] Vartabedian Hester & Haynes Expands With 7 Bankruptcy Attorneys
------------------------------------------------------------------
Vartabedian Hester & Haynes has added a veteran team of seven
commercial bankruptcy and restructuring attorneys, continuing a
rapid pace of growth that has seen the firm more than double in
size since opening a year ago.
Since forming in early 2024, Vartabedian Hester & Haynes has
established itself as a leading choice for business clients who
want smart, sophisticated and business-focused representation and
an alternative to the large law firm model. The merger with
attorneys from the Forshey Prostok law firm brings the Fort
Worth-based firm's headcount to 24.
The latest additions include former Forshey Prostok co-founders
Jeff Prostok and Robert Forshey, each of whom are Board Certified
in Business Bankruptcy Law by the Texas Board of Legal
Specialization and ranked by Chambers USA for their expertise in
Bankruptcy/Restructuring. They join the firm as partners, along
with attorneys Lynda Lankford and Suzanne Rosen. Blake Berryman and
Deidre Brown join the firm as of counsel, and Emily Chou as
counsel.
"This is a great team that's poised to capture the kind of
corporate restructuring and bankruptcy work that's really taking
off in Texas right now," said founding partner Robert Vartabedian.
The bankruptcy team brings deep experience guiding businesses and
creditors through complex financial restructuring, including
representing businesses in the Texas oil patch and energy space.
Their expertise includes representing clients in Chapter 11
reorganizations and counseling trustees in managing bankruptcy
estates, as well as advising parties in bankruptcy-related asset
acquisitions.
"The litigation support Vartabedian Hester & Haynes is going to
provide is crucial to what we want to do. We have turned down work
over the years because we didn't have a sufficient litigation
bench." said Mr. Prostok.
About Vartabedian Hester & Haynes
Vartabedian Hester & Haynes is a premier litigation boutique that
focuses on finding legal outcomes that make business sense. With a
proven record in energy disputes, financial restructuring, and
commercial litigation, the firm redefines expectations in complex
litigation for respected enterprises. The team delivers urgency,
consistency, and efficiency without compromise. For more
information, visit: https://vhh.law/.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re LSF Coaching Corporation, Inc.
Bankr. E.D. Ark. Case No. 25-10435
Chapter 11 Petition filed February 11, 2025
See
https://www.pacermonitor.com/view/KKM5JRI/LSF_Coaching_Corporation_Inc__arebke-25-10435__0001.0.pdf?mcid=tGE4TAMA
represented by: Kyle Havner, Esq.
HAVNER LAW FIRM PA
E-mail: havnerlaw@gmail.com
In re 330 Westminster St MI LLC
Bankr. E.D. Mich. Case No. 25-41260
Chapter 11 Petition filed February 11, 2025
See
https://www.pacermonitor.com/view/YVTQBEI/330_Westminster_St_MI_LLC__miebke-25-41260__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert McClellan, Esq.
RESURGENT LEGAL SERVICES, PLC
E-mail: bob@robertjmcclellan.com
In re H&M Fine Art and Custom Framing Corporation
Bankr. E.D.N.Y. Case No. 25-70537
Chapter 11 Petition filed February 11, 2025
See
https://www.pacermonitor.com/view/OOASQ4A/HM_Fine_Art_and_Custom_Framing__nyebke-25-70537__0001.0.pdf?mcid=tGE4TAMA
represented by: Thomas A. Farinella, Esq.
LAW OFFICE OF THOMAS A. FARINELLA, PC
E-mail: tf@lawtaf.com
In re Bizness as Usual Inc.
Bankr. E.D. Pa. Case No. 25-10551
Chapter 11 Petition filed February 11, 2025
See
https://www.pacermonitor.com/view/HFNYSXA/Bizness_as_Usual_Inc__paebke-25-10551__0001.0.pdf?mcid=tGE4TAMA
represented by: Jonathan H. Stanwood, Esq.
E-mail: jhs@stanwoodlaw.com
In re Lawson and Son Service Center Inc.
Bankr. M.D. Tenn. Case No. 25-00573
Chapter 11 Petition filed February 11, 2025
See
https://www.pacermonitor.com/view/KZ7TFVA/Lawson_and_Son_Serice_Center_Inc__tnmbke-25-00573__0001.0.pdf?mcid=tGE4TAMA
represented by: Keith D. Slocum, Esq.
SLOCUM LAW
E-mail: keith@keithslocum.com
In re Jeffrey Scott Rauch and Becky Ann Rauch
Bankr. C.D. Cal. Case No. 25-10358
Chapter 11 Petition filed February 12, 2025
In re Jimmy Carroll Rushing
Bankr. M.D. Fla. Case No. 25-00415
Chapter 11 Petition filed February 12, 2025
represented by: Thomas Adam, Esq.
In re Mohamed Mestari
Bankr. E.D. Mich. Case No. 25-41331
Chapter 11 Petition filed February 12, 2025
represented by: Yuliy Osipov, Esq.
In re Sasha Richard Kissoondath
Bankr. D.N.J. Case No. 25-11426
Chapter 11 Petition filed February 12, 2025
represented by: Angela Mastrangelo, Esq.
BIELLI & KLAUDER, LLC
Email: mastrangelo@bk-legal.com
In re Deed Rescue, LLC
Bankr. E.D.N.Y. Case No. 25-70564
Chapter 11 Petition filed February 12, 2025
See
https://www.pacermonitor.com/view/22JPJ6I/Deed_Rescue_LLC__nyebke-25-70564__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re IGH Properties, LLC
Bankr. M.D. Ala. Case No. 25-80181
Chapter 11 Petition filed February 13, 2025
See
https://www.pacermonitor.com/view/BCS257Q/IGH_Properties_LLC__almbke-25-80181__0001.0.pdf?mcid=tGE4TAMA
represented by: Anthony Brian Bush, Esq.
THE BUSH LAW FIRM, LLC
E-mail: abush@bushlegalfirm.com
In re Comprehensive Integrated Care, PLLC
Bankr. D. Ariz. Case No. 25-01228
Chapter 11 Petition filed February 13, 2025
See
https://www.pacermonitor.com/view/6YDUADY/Comprehensive_Integrated_Care__azbke-25-01228__0001.0.pdf?mcid=tGE4TAMA
represented by: Wesley D. Ray, Esq.
SACKS TIERNEY P.A.
E-mail: Wesley.Ray@sackstierney.com
In re Mirabal Discount Corp. DBA La Bodeguita Cubana
Bankr. S.D. Fla. Case No. 25-11525
Chapter 11 Petition filed February 13, 2025
See
https://www.pacermonitor.com/view/GEOVC3Q/Mirabal_Discount_Corp_DBA_La_Bodeguita__flsbke-25-11525__0001.0.pdf?mcid=tGE4TAMA
represented by: Diego G. Mendez, Esq.
MENDEZ LAW OFFICES
E-mail: INFO@MENDEZLAWOFFICES.COM
In re Allen V Petrossian
Bankr. C.D. Cal. Case No. 25-10364
Chapter 11 Petition filed February 13, 2025
In re Blue Apple Books, LLC
Bankr. D.N.J. Case No. 25-11469
Chapter 11 Petition filed February 13, 2025
See
https://www.pacermonitor.com/view/G4WQWHI/Blue_Apple_Books_LLC__njbke-25-11469__0001.0.pdf?mcid=tGE4TAMA
represented by: Jon S. Ziefert, Esq./Ken Rosen, Esq.
BLUE APPLE BOOKS, LLC/KEN ROSEN ADVISORS
E-mail: jonziefert@gmail.com
In re Lisa C Serme
Bankr. D.N.J. Case No. 25-11452
Chapter 11 Petition filed February 13, 2025
represented by: Justin Gillman, Esq.
In re Harriet Ziefert, Inc.
Bankr. D.N.J. Case No. 25-11470
Chapter 11 Petition filed February 13, 2025
See
https://www.pacermonitor.com/view/NCCYI6Y/Harriet_Ziefert_Inc__njbke-25-11470__0001.0.pdf?mcid=tGE4TAMA
represented by: Jon S. Ziefert, Esq./Ken Rosen, Esq.
BLUE APPLE BOOKS, LLC/KEN ROSEN ADVISORS
E-mail: jonziefert@gmail.com
In re Fraleg Kusciuszok Corp
Bankr. E.D.N.Y. Case No. 25-40708
Chapter 11 Petition filed February 13, 2025
See
https://www.pacermonitor.com/view/HF4WX4Y/Fraleg_Kusciuszko_Corp__nyebke-25-40708__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Blessed Mini Market Deli Grocery
Bankr. E.D.N.Y. Case No. 25-40716
Chapter 11 Petition filed February 13, 2025
See
https://www.pacermonitor.com/view/HB5DLAQ/Blessed_Mini_Mart_Deli_Grocery__nyebke-25-40716__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Last Chance Realty Corp.
Bankr. S.D.N.Y. Case No. 25-22115
Chapter 11 Petition filed February 13, 2025
See
https://www.pacermonitor.com/view/MJAGG7Y/Last_Chance_Realty_Corp__nysbke-25-22115__0001.0.pdf?mcid=tGE4TAMA
represented by: H Bruce Bronson, Esq.
BRONSON LAW OFFICES PC
E-mail: hbbronson@bronsonlaw.net
In re William J. MacDonald
Bankr. S.D.N.Y. Case No. 25-10283
Chapter 11 Petition filed February 13, 2025
represented by: Jonathan Pasternak, Esq.
In re Garage Loco, Inc.
Bankr. W.D. Pa. Case No. 25-20353
Chapter 11 Petition filed February 13, 2025
See
https://www.pacermonitor.com/view/WAI4I4A/Garage_Loco_Inc__pawbke-25-20353__0001.0.pdf?mcid=tGE4TAMA
represented by: Renee Kuruce, Esq.
ROBLETO KURUCE PLLC
E-mail: rmk@robletolaw.com
In re John Harvey
Bankr. M.D. Tenn. Case No. 25-00601
Chapter 11 Petition filed February 13, 2025
represented by: Denis Waldron, Esq.
In re Gary Edward Burton
Bankr. E.D. Tex. Case No. 25-40389
Chapter 11 Petition filed February 13, 2025
In re Princess Port Bed and Breakfast
Bankr. N.D. Cal. Case No. 25-30117
Chapter 11 Petition filed February 14, 2025
See
https://www.pacermonitor.com/view/FSYV7RQ/Princess_Port_Bed_and_Breakfast__canbke-25-30117__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Elnunu Medical P.C.
Bankr. E.D.N.Y. Case No. 25-40732
Chapter 11 Petition filed February 14, 2025
See
https://www.pacermonitor.com/view/A2UYMEY/Elnunu_Medical_PC__nyebke-25-40732__0001.0.pdf?mcid=tGE4TAMA
represented by: Btzalel Hirschhorn, Esq.
SHIRYAK, BOWMAN, ANDERSON, GILL &
KADOCHNIKOV, LLP
E-mail: Bhirschhorn@sbagk.com
In re El Cano Development Inc.
Bankr. D.P.R. Case No. 25-00637
Chapter 11 Petition filed February 14, 2025
See
https://www.pacermonitor.com/view/XC2LQFY/EL_CANO_DEVELOPMENT_INC__prbke-25-00637__0001.0.pdf?mcid=tGE4TAMA
represented by: Modesto Bigas-Mendez, Esq.
MODESTO BIGAS LAW OFFICE
E-mail: mbigasmendez@gmail.com
In re Modern Eye Gallery, LLC
Bankr. M.D. Tenn. Case No. 25-00636
Chapter 11 Petition filed February 14, 2025
See
https://www.pacermonitor.com/view/3UZS2GY/MODERN_EYE_GALLERY_LLC__tnmbke-25-00636__0001.0.pdf?mcid=tGE4TAMA
represented by: Jay R. Lefkovitz, Esq.
LEFKOVITZ & LEFKOVITZ
E-mail: jlefkovitz@lefkovitz.com
In re Antonio Marciano Mead-Smith
Bankr. D. Ariz. Case No. 25-01292
Chapter 11 Petition filed February 17, 2025
represented by: Patrick Keery, Esq.
KEERY MCCUE, PLLC
Email: pfk@keerymccue.com
In re Jon Moore
Bankr. E.D. Ark. Case No. 25-10493
Chapter 11 Petition filed February 17, 2025
See
https://www.pacermonitor.com/view/NRXQEKI/Jon_Moore__arebke-25-10493__0001.0.pdf?mcid=tGE4TAMA
represented by: Kyle Havner, Esq.
HAVNER LAW FIRM PA
E-mail: havnerlaw@gmail.com
In re Jerk Pan Kusine Inc.
Bankr. E.D.N.Y. Case No. 25-40743
Chapter 11 Petition filed February 17, 2025
See
https://www.pacermonitor.com/view/OMYSEEQ/Jerk_Pan_Kusine_Inc__nyebke-25-40743__0001.0.pdf?mcid=tGE4TAMA
represented by: Narissa A. Joseph, Esq.
NARISSA JOSEPH
E-mail: njosephlaw@aol.com
In re 40acam Funding Inc.
Bankr. C.D. Cal. Case No. 25-10910
Chapter 11 Petition filed February 18, 2025
See
https://www.pacermonitor.com/view/URI6MPQ/40acam_Funding_Inc__cacbke-25-10910__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Michael Sam Arikat and Pasima Arikat
Bankr. N.D. Cal. Case No. 25-10085
Chapter 11 Petition filed February 18, 2025
represented by: Gina Klump, Esq.
In re John Edmond Holmes
Bankr. N.D. Fla. Case No. 25-30135
Chapter 11 Petition filed February 18, 2025
In re Lee Woodland Jones and Ruth Elaine Jones
Bankr. D. Idaho Case No. 25-00106
Chapter 11 Petition filed February 18, 2025
In re Ghadeer M. Abbasi
Bankr. D.N.J. Case No. 25-11619
Chapter 11 Petition filed February 18, 2025
represented by: David Stevens, Esq.
SCURA, WIGFIELD, HEYER & STEVENS
E-mail: dstevens@scura.com
In re 317 South Main Holdings Re Holdings LLC
Bankr. E.D.N.Y. Case No. 25-70615
Chapter 11 Petition filed February 18, 2025
See
https://www.pacermonitor.com/view/EQX2HPI/317_South_Main_Holdings_Re_Holdings__nyebke-25-70615__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Hensley Hercules
Bankr. E.D.N.Y. Case No. 25-40747
Chapter 11 Petition filed February 18, 2025
In re Olegna Fuschi
Bankr. S.D.N.Y. Case No. 25-10304
Chapter 11 Petition filed February 18, 2025
represented by: Kendra Harris, Esq.
In re Brent Davis and Candice Davis
Bankr. E.D.N.C. Case No. 25-00595
Chapter 11 Petition filed February 18, 2025
represented by: Danny Bradford, Esq.
In re Gabriel Custom Homes, LLC
Bankr. W.D.N.C. Case No. 25-30141
Chapter 11 Petition filed February 18, 2025
See
https://www.pacermonitor.com/view/X3YTHJY/Gabriel_Custom_Homes_LLC__ncwbke-25-30141__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Andy Valiente Caballeroro
Bankr. D.P.R. Case No. 25-00670
Chapter 11 Petition filed February 18, 2025
represented by: Hector Figueroa Vincenty, Esq.
In re Splendidly Blended We LLC
Bankr. E.D. La. Case No. 25-10300
Chapter 11 Petition filed February 19, 2025
See
https://www.pacermonitor.com/view/3IUOZYI/Splendidly_Blended_We_LLC__laebke-25-10300__0001.0.pdf?mcid=tGE4TAMA
represented by: Ralph Bickham, Esq.
BICKHAM LAW
E-mail: rbickham@bickhamlaw.com
In re NS Grand Street Management Services Inc.
Bankr. S.D.N.Y. Case No. 25-10307
Chapter 11 Petition filed February 19, 2025
See
https://www.pacermonitor.com/view/ZCHEUGQ/NS_GRAND_STREET_MANAGEMENT_SERVICES__nysbke-25-10307__0001.0.pdf?mcid=tGE4TAMA
represented by: Narissa A. Joseph, Esq.
NARISSA JOSEPH
E-mail: njosephlaw@aol.com
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
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then-ending.
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Troubled Company Reporter is a daily newsletter co-published
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Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
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