/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/250305.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, March 5, 2025, Vol. 29, No. 63 Headlines 180 LA PATA: Hires Bensamochan Law Firm as Bankruptcy Counsel 1800 CORDON ROAD: U.S. Trustee Unable to Appoint Committee 18222 YORBA: Hires Law Office of Michael Jay Berger as Counsel 3 BROTHERS PHARMACY: Seeks 30-Day Extension of Plan Filing Deadline AEMETIS INC: Extends Maturity Date of $136M Notes to April 2026 ALCOA CORP: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable ALCOA CORP:S&P Affirms 'BB' Issuer Credit Rating, Outlook Positive ALL INCLUSIVE: Gets Final OK to Use Cash Collateral ALL INCLUSIVE: Seeks to Hire Royzette Phillips CPA as Accountant APPLIED DNA: Special Meeting Fails to Reach Quorum, No Action Taken ARAMARK INTERNATIONAL: S&P Rates EUR400MM Unsecured Notes 'BB-' BANGL LLC: S&P Places 'BB-' ICR on Watch Positive on Acquisition BETA DRIVE HOTEL: Case Summary & 20 Largest Unsecured Creditors BEXIN REALTY: Court Extends Cash Collateral Access to March 31 BONE CONSTRUCTION: Creditors to Get Proceeds From Liquidation BOOKS INC: Gets Final OK to Use Cash Collateral BUFFALO NEWSPRESS: Hires Gross Shuman P.C. as Counsel BYJU'S ALPHA: Camshaft, T&L Must Face $500MM Clawback Suit CAREPOINT HEALTH: Trustee Opposes Chapter 11 Plan Confirmation CARROLLTON GATEWAY: Hires Hayward PLLC as Counsel CBAM LTD 2018-6: Moody's Affirms Ba3 Rating on $51.5MM E-R Notes CENTRAL FLORIDA: Case Summary & 18 Unsecured Creditors CES KIMBERLINA: Case Summary & Five Unsecured Creditors CHORD ENERGY: S&P Rates New $750MM Senior Unsecured Notes 'BB' CINEPLEX INC: Fitch Alters Outlook on 'B' LongTerm IDR to Negative CISION LTD: Nears Agreement with Lenders CITRUS360 LLC: Case Summary & 13 Unsecured Creditors CUMBERLAND ACADEMY: Moody's Puts Ba2 Rating on Review for Downgrade DIOCESE OF ROCHESTER: Slater Slater Advises Sexual Abuse Claimants DJK ENTERPRISES: Court Extends Cash Collateral Access to April 30 DOCUDATA SOLUTIONS: Case Summary & 30 Largest Unsecured Creditors DURECT CORP: Ingalls & Snyder Holds 8.5% Equity Stake EASTSIDE DISTILLING: Amends Bylaws in Serving Notices of Meetings EASTSIDE DISTILLING: CEO Converts $700K Loan, Buys $542K in Units EDGEWELL PERSONAL: Moody's Alters Outlook on 'Ba3' CFR to Stable EDMOUNDSON STEEL: Hires Lawson Accounting Group as Accountant EMD EXPRESS: Gets Interim OK to Use Cash Collateral ENERGIZER HOLDINGS: S&P Rates $760MM First-Lien Term Loan B 'BB' ENGLOBAL CORP: Secures $500K Loan EPIC COMPANIES: Beth Postemski Resigns; New Committee Member Named FIBERCO GENERAL: Hires Totaro & Shanahan LLP as Legal Counsel FIT FOR THE RED: Seeks to Hire Roetzel & Andress as Counsel FRENCH SEAM: Gets Interim OK to Use Cash Collateral FTX TRADING: CEO John Ray in Line to Get $41MM Bonus GEM PREP - NAMPA: Moody's Upgrades Revenue Bonds Rating to Ba1 GLOBAL IID S&P Rates New Repriced $468.2MM 1st-Lien Term Loan 'B-' GLOBAL PARTNERS: S&P Alters Outlook to Positive, Affirms 'B+' ICR GOLDEN TRIANGLE: Hires Jose L. Pacheco Carrasquillo as Appraiser GOODY'S FLEET: Gets Extension to Access Cash Collateral GOTO GROUP: Fitch Affirms 'CCC+' LongTerm IDR GREY WOLF: Hires David W. Steen P.A. as Legal Counsel H-FOOD HOLDINGS: Gets Court Approval for Executive Bonus Plan HARVEY LANDHOLDINGS: Gets Final OK to Use Cash Collateral HELIX ENERGY: Extends Alliance Agreement to 2026 HUMPER EQUIPMENT: U.S. Trustee Unable to Appoint Committee INFINITE GLOW: Seeks Chapter 11 Bankruptcy in California J. HOWELL: Gets Interim OK to Use Cash Collateral JUBILANT FLAME: Marino Papazoglou Resigns From Board of Directors KING'S MOVING: Unsecureds to Get Share of Income for 60 Months KINGSMAN REAL: Seeks to Hire Alvarado Law as Bankruptcy Counsel KNIGHTS HOURGLASS: Unsecureds to Split $10K over 3 Years KONTOOR BRANDS: S&P Alters Outlook to Negative, Affirms 'BB' ICR KOZUBA & SONS: Court Extends Cash Collateral Access to March 27 LAKE SPOFFORD: Voluntary Chapter 11 Case Summary LEFEVER MATTSON: Hires CBRE Inc. as Real Estate Broker LILYDALE PROGRESSIVE: Gets Extension to Access Cash Collateral LONERO ENGINEERING: Gets Final OK to Use Cash Collateral LSF11 TRINITY: Moody's Affirms 'B2' CFR, Outlook Stable LUMEN TECHNOLOGIES: S&P Upgrades ICR to 'B-' on Contract Wins LUTHERAN HOME: Hires McDonald Hopkins LLC as Conflict Counsel LUTHERAN HOME: Hires Squire Patton Boggs as Bankruptcy Counsel LUTHERAN HOME: Hires Stretto Inc. as Administrative Advisor MADRONE-FLORIDA TECH: S&P Assigns 'BB' Rating on Revenue Bonds MATTRESS FIRM: S&P Withdraws 'B+' Issuer Credit Rating MAWSON INFRASTRUCTURE: Registers 7.5M Shares Under 2024 Equity Plan MID-ATLANTIC RHEUMATOLOGY: Hires Nan Gallagher as Special Counsel MIRACLE RESTAURANT: Updates Unsecured Claims Pay Details MS FREIGHT: Baker Donelson Represents Multiple Creditors MT. AIRY ONE: Carolina Experience to Contribute $400K to Fund Plan MULLEN AUTOMOTIVE: Receives Notice of Noncompliance From Nasdaq NATIONWIDE EXPRESS: Gets Extension to Access Cash Collateral NEUROONE MEDICAL: Registers 3 Million Shares Under 2025 Equity Plan NEW LEDA LANES: Voluntary Chapter 11 Case Summary NIKOLA CORP: U.S. Trustee Appoints Creditors' Committee NISSAN MOTOR: Fitch Lowers LongTerm IDR to 'BB+', Outlook Negative NORTHWEST INDIANA LIGHTHOUSE: Moody's Rates New 2025A/B Bonds 'Ba1' NOVA CHEMICALS: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable ONDAS HOLDINGS: Unit Pushes Back $1.5M Loan Maturity to July 2025 OPENLANE INC: S&P Alters Outlook to Positive, Affirms 'B' ICR ORSIPEL V LLC: Seeks to Hire Rachel S. Blumenfeld PLLC as Attorney PAP-R PRODUCTS: Case Summary & 20 Largest Unsecured Creditors PAVMED INC: Closes $2.37M Offering of Common Shares, Warrants PEACHY ATHLETIC: Court Extends Cash Collateral Access to March 27 PEOPLE WHO CARE: Hires Century 21 Allstars as Real Estate Broker PHAIR COMPANY: Seeks Chapter 11 Bankruptcy in California PMHB LLC: Case Summary & 20 Largest Unsecured Creditors POSEIDON INVESTMENT: S&P Downgrades ICR to 'SD' on Debt Repurchase PUBLIC FINANCE: Moody's Rates New 2025C Subordinate Bonds 'Ba1' PUERTO RICO: PREPA Bankruptcy Attention Turns to Revenue Dispute R.R. DONNELLEY: Fitch Affirms 'B' LongTerm IDR, Outlook Stable RBX INC: U.S. Trustee Unable to Appoint Committee RENOVARO INC: Enters Definitive Merger Agreement With BioSymetrics RLG HOLDINGS: Moody's Cuts CFR to Caa1 & Alters Outlook to Stable RVFW LLC: Voluntary Chapter 11 Case Summary RYLEE & COMPANY: Hires Law Firm of McMurray as Special Counsel SBF VENTURES: Seeks to Hire Gary W. Cruickshank as Counsel SEBASTIAN HABIB: Hires BKO Associates as Real Estate Broker SHERWOOD HOSPITALITY: Hires Sussman Shank LLP as Counsel SMITH ENVIRONMENTAL: Seeks Subchapter V Bankruptcy in Colorado SOAP BOX: Hires Law Offices of Eric J. Gravel as Counsel SOLUTION ENGINEERING: Business Revenue to Fund Plan Payments STARLIGHT PARENT: S&P Assigns 'B' ICR on Leveraged Buyout SUMMIT MATERIALS: S&P Withdraws 'BB+' Issuer Credit Rating SUNNOVA ENERGY: Raises Going Concern Warning, Shares Plunge SVB FINANCIAL: FDIC Directed to Face $1.9 Billion Lawsuit SWC INDUSTRIES: Hires Jones Day as Special Counsel T & U INVESTMENTS: Hires Keery McCue PLLC as Counsel TAMPA BRASS: Gets Extension to Access Cash Collateral TBB DEEP: Gets Extension to Access Cash Collateral TBB DEEP: Gets Final OK to Use Cash Collateral TEAM HEALTH: Moody's Hikes CFR to 'Caa1', Outlook Stable TEHUM CARE: Secures Court Okay for Chapter 11 Plan TJC SPARTECH: Moody's Lowers CFR to 'Caa3', Outlook Negative TONIX PHARMACEUTICALS: Regains Compliance With NASDAQ Listing Rule TRIPADVISOR INC:S&P Rates New $350MM Incremental Term Loan B 'BB-' TROLLMAN ENTERPRISES: Hires Five Star Real Estate as Realtor TSB VENTURES: Hires Anders Minkler Huber as Accountant UNION COLONY: Moody's Affirms 'Ba2' Revenue Bond Rating UNITY MINES: Case Summary & 10 Unsecured Creditors URBAN CHESTNUT: Hearing Today on Bid to Use Cash Collateral USA COMPRESSION: Moody's Ups CFR to Ba3 & Alters Outlook to Stable VERRICA PHARMACEUTICALS: Enters Waiver to OrbiMed Credit Agreement VICTORIA'S SECRET: Moody's Alters Outlook on 'Ba3' CFR to Stable VISION2SYSTEMS LLC: Hires Spencer Fane LLP as Legal Counsel WAGNER COLLEGE: Fitch Lowers IDR to 'BB', Outlook Negative WESTERN ALLIANCE: Moody's Ups Issuer & Subordinate Ratings From Ba1 WEX INC: Moody's Affirms 'Ba2' CFR, Outlook Stable WHITE FOREST: Hires Chipman Brown Cicero & Cole LLP as Counsel WHITE FOREST: Hires Jones & Associates as Special Counsel WHITE FOREST: Hires Mr. Ryniker of RK Consultants as CRO WHITE FOREST: Hires Stretto Inc. as Administrative Advisor WHITTAKER CLARK: Claimants Slam $535MM Chapter 11 Settlement WINDWARD DESIGN: Gets Extension to Access Cash Collateral YELLOW CORP: Settles Employee Layoff Lawsuits for $12MM [] Moody's Takes Action on 86 Ratings From 11 Deals by RALI Trust ********* 180 LA PATA: Hires Bensamochan Law Firm as Bankruptcy Counsel ------------------------------------------------------------- 180 La Pata 2020, LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ Bensamochan Law Firm as General Bankruptcy Counsel. The firm will provide these services: a. advise the Debtor regarding matters of bankruptcy law and concerning the requirements of the Bankruptcy Code, and Bankruptcy Rules relating to the administration of this case, and the operation of the Debtor's estate as a debtor in possession; b. represent the Debtor in proceedings and hearings in the court involving matters of bankruptcy law; c. assistance in compliance with the requirements of the Office of the United States trustee; d. provide the Debtor legal advice and assistance with respect to the Debtor's powers and duties in the continued operation of the Debtor's business and management of property of the estate; e. assist the Debtor in the administration of the estate's assets and liabilities; f. prepare necessary applications, answers, motions, orders, reports and/or other legal documents on behalf of the Debtor; g. assist in the collection of all accounts receivable and other claims that the Debtor may have and resolve claims against the Debtor's estate; h. provide advice, as counsel, concerning the claims of secured and unsecured creditors, prosecution and/or defense of all actions; i. prepare, negotiate, prosecute and attain confirmation of a plan of reorganization. The firm will be paid at these rates: Eric Bensamochan Esq. $525 per hour Kerry Moynihan $375 per hour Karina Arita $95 per hour Paulina Buitron $120 per hour The firm received a retainer in the amount of $ 22,500. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Eric Bensamochan, Esq., a partner at The Bensamochan Law Firm 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: Eric Bensamochan, Esq. The Bensamochan Law Firm Inc 2566 Overland Ave. Suite 650 Los Angeles, CA 90064 Tel: (818) 574-5740 Fax: (818) 961-0138 Email: eric@eblawfirm.us About 180 La Pata 2020, LLC 180 La Pata 2020 LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). 180 La Pata 2020 LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-12859) on Nov. 7, 2024. In the petition filed by Patrick Steven Nelson, as managing member, the Debtor estimated assets and liabilities between $1 million and $10 million each. Bankruptcy Judge Scott C. Clarkson oversees the case. The Debtor is represented by Eric Bensamochan, Esq., at THE BENSAMOCHAN LAW FIRM, INC. 1800 CORDON ROAD: U.S. Trustee Unable to Appoint Committee ---------------------------------------------------------- The U.S. Trustee for Region 18 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of 1800 Cordon Road, LLC. About 1800 Cordon Road 1800 Cordon Road, LLC is a single asset real estate debtor as defined in 11 U.S.C. Section 101(51B). 1800 Cordon Road filed Chapter 11 petition (Bankr. D. Ore. Case No. 25-60335) on February 5, 2025, listing between $1 million and $10 million in both assets and liabilities. The Debtor is represented by: Joseph A. Field, Esq. Field Jerger, LLP P.O. Box 13326 Portland, OR 97213 Tel: 503-515-3310 Email: joe@fieldjerger.com 18222 YORBA: Hires Law Office of Michael Jay Berger as Counsel -------------------------------------------------------------- 18222 Yorba Linda Owner, LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ the Law Office of Michael Jay Berger to handle its Chapter 11 case. The firm will be paid at these rates: Michael Berger, Partner $645 per hour Sofya Davtyan, Partner $595 per hour Robert Poteete, Associate Attorney $475 per hour Senior Paralegals/Law Clerks $275 per hour Paralegals $200 per hour The Debtor paid the firm a retainer of $25,000, plus $1,738 filing fee. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Berger disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Michael Jay Berger, Esq. Law Offices of Michael Jay Berger 9454 Wilshire Blvd, 6th Floor Beverly Hills, CA 90212 Telephone: (310) 271-6223 Facsimile: (310) 271-9805 Email: Michael.Berger@bankruptcypower.com About 18222 Yorba Linda Owner, LLC 18222 Yorba Linda Owner LLC is a single asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). 18222 Yorba Linda Owner LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10922) on February 6, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Honorable Bankruptcy Judge Julia W. Brand handles the case. The Debtor is represented by Michael Jay Berger, Esq., at LAW OFFICES OF MICHAEL JAY BERGER. 3 BROTHERS PHARMACY: Seeks 30-Day Extension of Plan Filing Deadline ------------------------------------------------------------------- 3 Brothers Pharmacy, LLC, asked the U.S. Bankruptcy Court for the Northern District of Mississippi to extend its period to file a Chapter 11 Plan and Disclosure Statement for additional thirty days. The Debtor explains that its counsel has caseload recently has been heavy with trials and other court appearances. Thus, Debtor's counsel has not had the time to properly prepare the Chapter 11 plan and Disclosure statement. The Debtor claims that an extension of time will not prejudice any creditors of the Debtor. 3 Brothers Pharmacy, LLC is represented by: D. Dewayne Hopson Jr., Esq. Derek D. Hopson, Sr., Esq. HOPSON LAW GROUP P. O. Box 266 601 Dr. Martin Luther King, Jr., Blvd., Suite A Clarksdale, MS 38614 Telephone: (662) 624-4100 Fax: (662) 621-9197 About 3 Brothers Pharmacy 3 Brothers Pharmacy, LLC, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Miss. Case No. 24-12502) on August 21, 2024, with $50,001 to $100,000 in assets and $100,001 to $500,000 in liabilities. Judge Jason D. Woodard presides over the case. D. Dewayne Hopson, Jr., Esq. at HOPSON LAW GROUP, is the Debtor's legal counsel. AEMETIS INC: Extends Maturity Date of $136M Notes to April 2026 --------------------------------------------------------------- Aemetis Advanced Fuels Keyes, Inc. and Aemetis Facility Keyes, Inc., both subsidiaries of Aemetis, Inc., provided written notice to Third Eye Capital Corporation, exercising their right to extend the maturity date of certain outstanding notes, in accordance with the provisions of "Amendment No. 29 to the Amended and Restated Note Purchase Agreement," which became effective on July 31, 2024, according to a Form 8-K filed with the Securities and Exchange Commission. The notice extended the maturity date of the Notes by one year, from April 1, 2025, to April 1, 2026. This includes the "Acquisition Notes," "Existing Notes," "Revenue Participation Notes," "Revolving Notes," and "Revolving Notes (Series B)" as outlined in the Note Amendment. The aggregate amount of principal and interest due under these notes that is subject to the maturity date extension is $136 million as of Jan. 31, 2025. About Aemetis Headquartered in Cupertino, California, Aemetis -- www.aemetis.com -- is a renewable natural gas, renewable fuel, and biochemicals Company focused on the operation, acquisition, development, and commercialization of innovative technologies that replace petroleum-based products and reduce greenhouse gas emissions. Founded in 2006, Aemetis is operating and actively expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas. Aemetis owns and operates a 65 million gallon per year ethanol production facility in California's Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis also owns and operates a 60 million gallon per year production facility on the East Coast of India producing high-quality distilled biodiesel and refined glycerin for customers in India. The Company's planned sustainable aviation fuel (SAF) and renewable diesel (RD) production plant is currently designed to produce 90 million gallons per year of combined SAF and RD from feedstocks consisting of renewable waste oils and fats. As a result of negative capital, negative operating results, and collateralization of substantially all of the Company assets, the Company has been reliant on its senior secured lender to provide extensions to the maturity dates of its debt and loan facilities and was required in 2023 to remit excess cash from operations to its senior secured lender. In order to meet its obligations during the next twelve months, the Company will need to refinance debt with its senior lender for amounts becoming due in the next 12 months or receive the continued cooperation of its senior lender. This dependence on the Company's senior lender raises substantial doubt about the Company's ability to continue as a going concern, according to the Company's Quarterly Report on Form 10-Q for the period ended Sept. 30, 2024. Aemetis reported a net loss of $46.42 million for the year ended Dec. 31, 2023, compared to a net loss of $107.76 million for the year ended Dec. 31, 2022. As of Sept. 30, 2024, the Company had $247.4 million in total assets, $506.3 million in total liabilities, and $258.9 million in total stockholders' deficit. ALCOA CORP: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable ------------------------------------------------------------ Fitch Ratings has affirmed the Long-Term Default Ratings (IDRs) of Alcoa Corporation (Alcoa) and Alcoa Nederland Holding B.V. (Alcoa Nederland) at 'BB+'. Fitch has also affirmed Alcoa Nederland's senior unsecured note ratings at 'BB+' with a Recovery Rating of 'RR4' and the senior secured revolver rating at 'BBB-' /'RR2'. The Rating Outlook is Stable. The ratings reflect Alcoa Corporation's leading positions in bauxite, alumina and aluminum, and solid cost position and control over spending. The scope of its operations as well as cost and spending management affords the flexibility necessary to navigate through the volatility in the aluminum and alumina markets. The Stable Outlook reflects Fitch's expectations for EBITDA leverage generally below 2.5x and not exceeding 3.5x. Key Rating Drivers Variable Profitability, Increased Debt-Load: Fitch believes Alcoa's goal of deleveraging toward modest debt levels and retaining high cash balances is prudent given the swings in profitability since its inception. Over the past nine years, EBITDA has ranged from about $500 million (2023) to over $3 billion (2018). Despite extraordinarily high alumina and above-average aluminum prices, recent results are still below the average of the previous eight years. Fitch expects alumina prices to moderate as new supply from Indonesia and China becomes available. Fitch projects Alcoa's 2025 EBITDA at around $1.6 billion. If losses at its smelter operation in San Ciprian, Spain are higher than expected and markets are weaker than expected, leverage could rise above the rating sensitivities, especially considering the $750 million debt raised in 2024. Fitch believes the pending restructuring of the San Ciprian operations to restore profitability will be complex and potentially prolonged. Alumina Acquisition Long-term Positive: The company's acquisition of the remaining 40% stake in Alumina World Alumina and Chemicals (AWAC) is positive to Alcoa's long-term credit profile as it enhances its cash flow generation. The acquisition enables more agile management and creates synergies by operating the business as a subsidiary rather than a joint venture. In addition, distributions to non-controlling interests have been meaningful and high during periods of constrained alumina or bauxite supply. Credit Conscious Capital Allocation: Fitch expects share repurchases to be limited while the company focuses on deleveraging and innovation project spending to be funded in a credit-conscious manner. Fitch assumes that capital allocation will be balanced relative to the company's commitment to a strong balance sheet, evidenced by the company's modest dividend. Fitch expects capex to remain elevated over the next few years if earnings are supportive, but notes that there is some flexibility. Sensitivity to Aluminum Prices: Fitch assumes average London Metal Exchange (LME) aluminum prices for full year 2025 of $2,400/tonne (t), falling to $2,300/t thereafter. While bauxite and alumina are priced relative to market fundamentals and the alumina segment accounted for more than two thirds of aggregate segment adjusted EBITDA in FY 2024, bauxite and alumina prices are sensitive to aluminum prices over the long run. The company estimates a $100/t change in the LME price of aluminum affects segment adjusted EBITDA by $215 million, including the effect of the power LME-linked agreements. U.S. Tariffs Impacts Uncertain: Fitch believes that the U.S. premium to London Metal Exchange price would need increase to offset the proposed section 232 aluminum tariff increase to 25%, if applied to imports from all regions in order to attract the imports the U.S. needs. The increased cost to U.S. consumers of the metal, however, may result in demand destruction and/or shifts in downstream production to other regions resulting in second order impacts. Its rating case does not factor in any cut to shipments, decline in realizations, or increased costs associated with potential tariff impacts. Low-Cost Position: Alcoa's cost position and operational diversification provide financial flexibility through the cycle. CRU International Limited assesses Alcoa's bauxite costs in the first quartile, alumina costs in the second quartile and aluminum costs in the second quartile of 2025 global production costs. Most of Alcoa's alumina facilities are located next to its bauxite mines, cutting transportation costs and allowing consistent feed and quality. Aluminum assets benefit from prior optimization and smelters co-located with cast houses to provide value-added products, including slab, billet and alloys. Derivation Summary The ratings of Alcoa Nederland Holding B.V. are consolidated with those of Alcoa Corporation under the stronger subsidiary path under Fitch's Parent and Subsidiary Rating Linkage Rating Criteria due to strong operational and strategic linkages. The ratings of Alcoa Nederland's notes benefit from guarantees by Alcoa Corporation and certain subsidiaries. Although Alcoa is larger and more diversified, its earnings are more volatile than its metal peers Commercial Metals Company (BB+/Positive), Carpenter Technology Corporation (BB/Positive) and AZZ Inc. (BB/Stable). Commercial Metals is Alcoa's closest peer in terms of EBITDA and margin. Fitch-rated aluminum peers include China Hongqiao Group Limited (BB+/Stable), and Aluminum Corporation of China Ltd. (Chalco; A-/Negative). Hongqiao benefits from its larger size, higher vertical integration and EBITDA margins above 18%. Hongqiao has a less-sophisticated product range and less operational and end-market diversity than Alcoa but it maintains a higher EBITDA margin due to the scale and efficiency of its core aluminum smelting business. Fitch expects Hongqiao and Alcoa to have similar EBITDA net leverage on average. Chalco is rated using a top-down approach based on the credit profile of parent Aluminum Corporation of China (Chinalco), which owns 32% of the company. Fitch's internal assessment of Chinalco's credit profile is based on the agency's Government-Related Entities Rating Criteria and is derived from China's rating, reflecting its strategic importance. Key Assumptions - Fitch aluminum price assumptions published Dec. 6, 2024 of (LME spot) of $2,400 in 2025, and $2,300/t thereafter; - Shipments in line with guidance; - EBITDA margins average about 15%; - Capex at the $700 million per year level; - The Ma'aden transaction closes in 2025; - Dividends at the current rate. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: - EBITDA Leverage expected to be above 3.0x on a sustained basis; - EBITDA margins sustained below 10%. Factors that could, individually or collectively, lead to positive rating action/upgrade: - Visibility into the future of the San Ciprian operations; - EBITDA margins expected to be sustained above 15%, indicating higher value-added production and/or more disciplined markets; - EBITDA leverage expected to be sustained below 2.0x. Liquidity and Debt Structure As of Dec. 31, 2024, cash on hand was $1.1 billion, an undrawn $1.25 billion secured revolver expiring June 27, 2027, and an undrawn $250 million secured Japanese Yen revolver expiring April 25, 2025. The facilities have a maximum debt/capitalization of 0.6x and a minimum interest coverage ratio of 4.0x (EBITDA/cash interest expense) in 2025 and thereafter. Fitch expects Alcoa to generate positive FCF on average in its rating case. Issuer Profile Alcoa Corporation is among the world's largest low-cost bauxite and alumina producers, with a leading position in second-quartile cost aluminum products. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Alcoa Nederland Holding B.V. LT IDR BB+ Affirmed BB+ senior unsecured LT BB+ Affirmed RR4 BB+ senior secured LT BBB- Affirmed RR2 BBB- Alcoa Corporation LT IDR BB+ Affirmed BB+ ALCOA CORP:S&P Affirms 'BB' Issuer Credit Rating, Outlook Positive ------------------------------------------------------------------ S&P Global Ratings affirmed its ratings on Alcoa Corp., including its 'BB' issuer credit rating and 'BB' issue-level rating on the company's senior unsecured notes. S&P said, "At the same time, we assigned our 'BB' issue-level rating and '3' recovery rating to the company's proposed $1 billion senior unsecured notes. Proceeds will refinance the company's 2027 senior notes and partially redeem the 2028 notes. Our '3' recovery rating on its senior unsecured notes indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery." The positive outlook reflects Alcoa's progress with portfolio rationalization and addressing weaker assets. It also reflects our expectation for leverage of about 2x over the next 12 months as buoyant alumina and aluminum prices support earnings in 2025, despite slowing demand growth, persistently elevated interest rates, and global trade and geopolitical uncertainties. With significant Canadian aluminum exports to the U.S., Alcoa could face headwinds if tariffs are implemented but benefit from higher prices for its US output. Following news that the U.S. administration could probe into Section 232 tariffs, the Midwest transaction premium surged to 41.5 cents per pound (c/lb) compared to the average price of 19 c/lb in 2024. The U.S.' short position in aluminum and very limited alternative non-tariffed supply if Section 232 exemptions are lifted, as well as Alcoa's logistical proximity and low-carbon content of its Canadian production, could mean U.S customers may absorb the tariff impact. On the other hand, prices for the company's U.S. output are sharply higher, owing to a potential reshaping of aluminum imports with likely higher input costs for U.S. buyers. If premiums hold at 35-40 c/lb for the year, Alcoa's EBITDA could jump to $2.0 billion-$2.3 billion. This would translate to leverage of 1x-1.25x. However, this assumes no impact to Alcoa's aluminum shipment guidance of 2.6 million-2.8 million metric tons, with about 50% sold at the Midwest premium. On the other hand, tariffs could be a headwind for Alcoa if inflationary pressure hurts demand from U.S. customers. Complex supply chains exist across the U.S.-Canadian border, which could result in metal or fabricated goods being tariffed more than once, causing customers to import from alternative sources despite long import lead times and rapidly changing policy environment. If both Section 232 tariffs and tariffs of 10% or 25% on all Canadian imports are implemented, there is a large risk that Alcoa could lose market share and see volumes displaced into other global markets with a potential hit to earnings for transportation. Alcoa has a global smelting portfolio that provides options to redistribute metal supply across other regions to mitigate headwinds over time. However, in the near term, uncertainty and risk of incremental costs remain, but higher London Metal Exchange (LME) prices could more than offset this impact. Higher alumina prices could help offset higher costs associated with lower bauxite grades at Alcoa's alumina operations again this year. Alumina prices surged in 2024 and could remain elevated this year due to constrained supply. After the acquisition of Alumina Ltd., Alcoa now benefits from 6 million tons of alumina priced in the spot market compared to 2 million previously, making the company more exposed to alumina prices than aluminum LME prices. That said, the alumina operations are navigating elevated costs related to lower bauxite grades. Alcoa's 2024 segment EBITDA recovered sharply to $1.4 billion compared to $273 million in 2023, with $716 million generated in the fourth quarter alone based on realized prices of $636 per ton. While the alumina segment EBITDA recovered from the impact of lower bauxite grades, EBITDA per ton has not recovered to 2018 levels when alumina prices were at similar levels. Realized alumina prices averaged $455 per ton in 2018 compared to $477 per ton in 2024, while volumes were just 3% lower in 2024 compared to 2018. However, 2024 EBITDA per ton was 40% lower than in 2018. Higher raw material and energy costs are also a factor in current conditions. In late 2023. Alcoa moved into a different area under its mine plan after local authorities intervened due to the proximity of mining activity to municipal water supplies. Alcoa targets first-quarter 2026 approval to mine in Myara North and Holyoake, with production starting in 2027. This could return Alcoa to higher bauxite grades more consistent with historical levels. With continued portfolio rationalization and progress addressing weaker assets, Alcoa's profitability and competitive position could strengthen over the long term. A supportive price environment and cost reductions could drive another year of EBITDA growth, despite lackluster demand and geopolitical and trade uncertainties. S&P forecasts $1.5 billion-$2 billion of EBITDA in 2025 and EBITDA margins of 15.5%-16% sustained in the years after, which is slightly higher than historical S&P Global Ratings-adjusted margins despite a production footprint roughly 20% smaller than 10 years ago. In 2024, Alcoa took several steps to shore up cash drain from its business. Alcoa's acquisition of Alumina Ltd. enhanced its credit after strong cash flows enabled redemption of Alumina Ltd. debt. Alcoa now has full economic interest in the strongest assets in its portfolio. Furthermore, the elimination of its joint venture (JV) partner means more cash flow to Alcoa. In 2024, Alcoa fully curtailed its Kwinana alumina refinery because of unsustainably high energy costs--in 2023, it generated losses of $130 million. This elimination should generate additional cash savings this year after already achieving $45 million of Alcoa's targeted $75 million. Alcoa is also moving toward sustainable operations at San Ciprian through a strategic partnership and agreement with national and local government. This could limit future cash losses at the site, following a pre-tax loss of $150 million in 2023 and continued financial pressure. Alcoa sold its 25% ownership interest in the Ma'aden JV. This gives Alcoa greater financial flexibility as Ma'aden enacts its growth plan and reduces additional potential capital outlays. The positive outlook reflects Alcoa's progress with portfolio rationalization and addressing weaker assets. It also reflects S&P's expectations for leverage of about 2x over the next 12 months as buoyant alumina and aluminum prices support earnings in 2025, despite slowing demand growth, persistently elevated interest rates and global trade and geopolitical uncertainties. S&P could revise the outlook back to stable if debt to EBITDA approaches 3x. This could occur due to: -- Greater-than-anticipated headwinds from tariffs, such that Alcoa's aluminum volumes and realized prices drop; -- Sustained negative free operating cash flow (FOCF), stemming from higher-than-anticipated costs from sharply weaker earnings or from lower prices or sustained market share loss from U.S. tariffs; -- Unanticipated outcomes on the ongoing mine approval processes, signaling a potential delay in returning to higher grades at its operating bauxite mines; or -- Potential Australian tax liability. S&P could raise its ratings if: -- Alcoa sustains debt to EBITDA well below 3x while strengthening FOCF; -- The Myara North and Holyoake mine plan approvals advance, as does the sustainability of San Cirprian operations; and -- Alcoa sustains EBITDA margins of 15%, which would indicate strengthening profitability from both its world-class upstream bauxite and alumina assets, as well as improving returns from its large fleet of smelters. ALL INCLUSIVE: Gets Final OK to Use Cash Collateral --------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas issued a final order allowing All Inclusive 4DL, LLC to use cash collateral. The final order signed by Judge Eduardo Rodriguez authorized the company to use cash collateral to pay operating expenses in accordance with its budget, with a 10% variance. All Inclusive 4DL projects total monthly expenses of $33,080.88. As protection, secured creditors with liens on cash collateral will receive replacement liens on post-petition accounts receivable and deposit accounts, subject to a $20,000 carve-out for administrative fees and expenses. About All Inclusive 4DL All Inclusive 4DL, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 24-36024) on December 24, 2024, with $50,000 to $100,000 in assets and $100,000 to $500,000 in liabilities. Judge Eduardo V. Rodriguez handles the case. The Debtor is represented by: Aaron W. McCardell, Sr. The Mccardell Law Firm, PLLC Tel: 713-236-8736 Email: amccardell@mccardelllaw.com ALL INCLUSIVE: Seeks to Hire Royzette Phillips CPA as Accountant ---------------------------------------------------------------- All Inclusive 4DL, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Royzette Phillips, CPA as accountant. Mr. Phillips will assist the Debtor in preparing and filing its 2024 Income Tax Returns. The accountant will charge $150 per hour for his services. Mr. Phillips assured the court that he does not hold or represent any interest adverse to the Debtor or its estate. The accountant can be reached through: Royzette Phillips, CPA PO Box 976 Fresno, TX 77545 Tel: (713) 256-5247 About All Inclusive 4DL All Inclusive 4DL, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-36024) on December 24, 2024, with $50,000 to $100,000 in assets and $100,000 to $500,000 in liabilities. Judge Eduardo V. Rodriguez handles the case. Aaron W. McCardell Sr., Esq., at McCardell Law Firm, PLLC represents the Debtor as counsel. APPLIED DNA: Special Meeting Fails to Reach Quorum, No Action Taken ------------------------------------------------------------------- Applied DNA Sciences, Inc. submitted a Form 8-K to the Securities and Exchange Commission, reporting that on Feb. 28, 2025, it reconvened its special meeting of stockholders which was originally held on Jan. 23, 2025, adjourned until Feb. 14, 2025, and then subsequently adjourned until Feb. 28, 2025. At the Special Meeting, an aggregate of 16,413,535 shares of the Company's common stock were present in person or by proxy and entitled to vote, which did not constitute a quorum determined in accordance with the Company's By-Laws, which requires one-third of the Company's issued and outstanding shares of Common Stock. Accordingly, no action was taken with respect to the proposal presented at the Special Meeting. As previously reported on its Form 8-K filed on Oct. 31, 2024, the Company closed on that date a registered direct public offering and concurrent private placement of common stock, series C and D common stock purchase warrants and placement agent warrants. The Private Placement Warrants will only be exercisable upon receipt of such stockholder approval as may be required by the applicable rules and regulations of the Nasdaq Capital Market. Further, pursuant to the terms of the Securities Purchase Agreement entered into in connection with the Offering, since the Company did not obtain Warrant Stockholder Approval at the Special Meeting, it is obligated to call a subsequent stockholder meeting to seek to obtain Warrant Stockholder Approval. About Applied DNA Sciences Applied DNA Sciences -- adnas.com -- is a biotechnology company developing technologies to produce and detect deoxyribonucleic acid ("DNA"). Using the polymerase chain reaction ("PCR") to enable both the production and detection of DNA, the Company currently operates in three primary business markets: (i) the enzymatic manufacture of synthetic DNA for use in the production of nucleic acid-based therapeutics and the development and sale of a proprietary RNA polymerase ("RNAP") for use in the production of mRNA therapeutics; (ii) the detection of DNA and RNA in molecular diagnostics and genetic testing services; and (iii) the manufacture and detection of DNA for industrial supply chain security services. Melville, NY-based Marcum LLP, the Company's auditor since 2014, issued a "going concern" qualification in its report dated Dec. 17, 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. The Company has recurring net losses, which have resulted in an accumulated deficit of $309,672,755 as of Sept. 30, 2024. The Company has incurred a net loss of $7,088,306 for the fiscal year ended Sept. 30, 2024. At Sept. 30, 2024, the Company had cash and cash equivalents of $6,431,095. "We will continue to seek to raise additional working capital through public equity, private equity or debt financings. If we fail to raise additional working capital, or do so on commercially unfavorable terms, it would materially and adversely affect our business, prospects, financial condition and results of operations, and we may be unable to continue as a going concern. If we seek additional financing to fund our business activities in the future and there remains substantial doubt about our ability to continue as a going concern, investors or other financing sources may be unwilling to provide additional funding to us on commercially reasonable terms, if at all," the Company mentioned in its Annual Report for the year ending Sept. 30, 2024. As of Dec. 31, 2024, the Company had $15.97 million in total assets, $3.42 million in total liabilities, and $12.55 million in total equity. The Company's liquidity needs consist of its working capital requirements and research and development expenditure funding. As of Dec. 31, 2024, the Company had working capital of $8,889,342. ARAMARK INTERNATIONAL: S&P Rates EUR400MM Unsecured Notes 'BB-' --------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issue-level rating and '5' recovery rating to Aramark International Finance S.à R.L.'s proposed EUR400 million senior unsecured notes due 2033. The '5' recovery rating indicates its expectation for modest (10%-30%; rounded estimate: 10%) recovery in the event of a payment default. The company intends to use the proceeds from these notes to refinance its 3.125% euro-denominated senior unsecured notes due April 2025 and for general corporate purposes in a transaction S&P views as leverage neutral. Aramark Services Inc., an indirect parent of the issuer, will guarantee the notes. S&P said, "All of our existing ratings on the company--including our 'BB' issuer credit rating, 'BBB-' issue-level rating and '1' recovery rating on the senior secured debt, and 'BB-' issue-level rating and '5' recovery rating on its other unsecured debt--are unchanged. Following the transaction, Aramark's nearest debt maturity will be its receivables facility due July 2026. "Our ratings on Aramark reflect its scale as a leading provider of food concession and facility services, the positive performance trends supported by its new customer growth, its effective pricing strategies, and its improved operating efficiency. These factors have improved the company's credit metrics year over year through its ongoing debt reduction and EBITDA growth. We forecast Aramark will increase its revenue by the mid-single-digit percent area in fiscal year 2025, supported by a robust performance in both the U.S. and international markets and the ongoing implementation of its strategic initiatives. "Aramark's increased its revenue by about 3.3% in the first quarter ended Dec. 27, 2024, and expanded its S&P Global Ratings-adjusted EBITDA by 17.2% (to $374.7 million) relative to the prior year. On a trailing-12-month basis, the company's S&P Global Ratings-adjusted leverage was 4.4x, which compares with 4.1x during the same quarter the previous year. However, this was mainly due to Aramark's seasonal borrowings and we project its S&P Global Ratings-adjusted leverage will decline during the year because of its improved profitability and debt reduction. We expect the company will continue to deleverage toward its company-reported leverage target of around 3x by the end of fiscal year 2025." BANGL LLC: S&P Places 'BB-' ICR on Watch Positive on Acquisition ---------------------------------------------------------------- S&P Global Ratings placed all its ratings on BANGL LLC, including the 'BB-' issuer credit rating and its 'BB-' issue-level rating on its senior secured term loan B, on CreditWatch with positive implications. S&P said, "The CreditWatch placement reflects our expectation that we will raise our ratings on BANGL and its debt after the acquisition closes, which we anticipate will occur in July 2025. We also expect to resolve the CreditWatch at that time." MPLX L.P. (MPLX) has signed a definitive agreement with affiliates of WhiteWater and Diamondback Energy to acquire the remaining 55% interest in BANGL LLC for $715 million. S&P said, "We placed our ratings on BANGL and its debt on CreditWatch with positive implications to reflect the likelihood that we will raise the ratings after the close of its acquisition by MPLX. "We expect to resolve the CreditWatch at or near the close of the transaction, which we anticipate will occur in July 2025. We expect MPLX will fully integrate BANGL into its business following the acquisition." BETA DRIVE HOTEL: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Beta Drive Hotel Group LLC d/b/a Hilton Garden Inn Cleveland East/Mayfield Village 700 Beta Dr Mayfield Village, OH 44143 Business Description: Beta Drive Hotel Group LLC is a hospitality company that operates the Hilton Garden Inn Cleveland East/Mayfield Village, offering amenities such as complimentary Wi-Fi, an indoor/outdoor pool, and extensive meeting spaces. Chapter 11 Petition Date: March 2, 2025 Court: United States Bankruptcy Court Northern District of Ohio Case No.: 25-10849 Judge: Hon. Suzana Krstevski Koch Debtor's Counsel: Frederic P. Schwieg, Esq. FREDERIC P SCHWIEG ATTORNEY AT LAW 19885 Detroit Rd #239 Rocky River, OH 44116-1815 Tel: 440-499-4506 Fax: 440-398-0490 E-mail: fschwieg@schwieglaw.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $1 million to $10 million The petition was signed by Irene Mendyuk as manager. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/23XVPBA/Beta_Drive_Hotel_Group_LLC__ohnbke-25-10849__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Hilton Domestic Franchise Fees $159,456 Operating Co Inc 755 Crossover Ln Memphis, TN 38117 Maryna Zozulina Email: maryna.zozulina@hilton.com Phone: 901-304-8246 2. Ohio Department of Taxation Sales Tax $40,000 Attn: Bankruptcy Division PO Box 530 Columbus, OH 43216-0530 3. Mayfield Village Bed Tax $11,000 Attn: Finance Director 6622 Wlison Mills Rd Mayfield, OH 44143 Diane Calta Email: dcalta@mggmlpa.com Phone: 216.523.1500 4. FirstEnergy Corp Electric Service $8,910 76 S Main St Akron, OH 44308 5. Sysco Food and Service $7,200 P.O. Box 94570 Cleveland, OH 44101 6. Delbaso Construction, LLC $7,009 4563 Hamann Pkwy 4563 Hamann Parkway Willoughby, OH 44094 Dominic Delbaso Email: Dominicdelbalso@yahoo.com 7. HD Supply $6,584 P.O. Box 509058 San Diego, CA 92150 8. Westfield Insurance Insurance $5,645 1 Park Cir Premium Westfield Center, OH 44251 9. Enbridge Gas Ohio Gas Service $5,424 P O Box 26666 Richmond, VA 23261-2666 10. Bernard Heating and Cooling $5,202 359 Stanton Ave Akron, OH 44301 11. NEORSD Sewer Service $4,682 3900 Euclid Av Cleveland, OH 44115 12. SeSac $2,598 P.O. Box 737457 Dallas, TX 75373 13. Division of Water Water Service $2,445 1201 Lakeside Ave E Cleveland, OH 44113 14. Spectrum $2,057 Box 223085 Pittsburgh, PA 15251 15. Morgan Services $1,766 2013 Columbus Road Clevealnd, OH 44113 16. Toshiba Financial $1,493 Services P.O. Box 790448 St Louis, MO 63179 17. Cloud 5 Communications $1,358 P.O. Box 772475 Detroit, MI 48277 18. ATT Phone Service $1,203 P.O. Box 5019 Carol Stream, IL 60197 19. Kimble Recycling $1,200 and Disposal P.O. Box 448 Dover, OH 44622 20. Koorsen Fire and Security $1,105 6930 W Snowville Rd Brecksville, OH 44141 BEXIN REALTY: Court Extends Cash Collateral Access to March 31 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York issued a third interim order extending Bexin Realty Corporation's authority to use its lender's cash collateral from Feb. 28 to March 31. The third interim order authorized the company to use the cash collateral of Cathay Bank to pay the expenses set forth in its budget, with a 10% variance. As protection, Cathay Bank will be granted replacement liens on Bexin's assets subordinate only to certain carve-outs, including U.S. trustee fees and clerk's filing fees. The bank will also be granted a superpriority administrative expense claim senior to all other administrative expense claims and unsecured claims against the company's estate. The company's authority to use cash collateral will terminate if certain events occur, including a default under the order; a conversion of the company's Chapter 11 case to one under Chapter 7; or the appointment of a Chapter 11 trustee. A final hearing is scheduled for March 31. About Bexin Realty Corporation Bexin Realty Corporation is a single asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)). Bexin Realty filed Chapter 11 petition (Bankr. S.D.N.Y. Case No. 24-12080) on November 27, 2024, listing between $10 million and $50 million in both assets and liabilities. Bahram Benaresh, president of Bexin Realty, signed the petition. Judge Martin Glenn handles the case. The Debtor is represented by Jonathan S. Pasternak, Esq., at Davidoff Hutcher & Citron, LLP. Cathay Bank, as lender, is represented by: Conrad K. Chiu, Esq. Amanda Schaefer, Esq. Pryor Cashman LLP 7 Times Square New York, NY 10036-6569 Telephone: (212) 421-4100 Facsimile: (212) 326-0806 cchiu@pryorcashman.com aschaefer@pryorcashman.com BONE CONSTRUCTION: Creditors to Get Proceeds From Liquidation ------------------------------------------------------------- Bone Construction Company, Inc., filed with the U.S. Bankruptcy Court for the Western District of Arkansas a Plan of Liquidation dated February 18, 2025. The Debtor is an electrical contracting business organized as a C Corporation under Arkansas law on June 2, 2017. It operated out of 7800 Collier Street in Fort Smith, Arkansas. During the COVID-19 period, Bone Construction's revenue surged to an estimated $4 million in contracts, but costs increased by as much as 70%, and Regions Bank withdrew a critical line of credit. In an effort to sustain operations, the owner, Larry Bone, contributed personal retirement funds and secured two rounds of Paycheck Protection Program loans, yet these measures could not counteract rising expenses and growing debt obligations. In November 2023, the Debtor entered into a lease and licensing agreement with Leading Light, LLC, a subsidiary of Adonis Holdings, and entered into discussions to potentially sell the business. Faced with mounting debts and limited liquidity, Bone Construction filed for relief under Subchapter V of Chapter 11 to restructure its obligations, address its operational challenges, and pursue a path through this liquidation plan that will maximize value for creditors. The Debtor has received a Letter of Intent from Leading Light, LLC to purchase the building and lot located at 7800 Collier Street, Ft. Smith, AR 72916 for the fair market value of $250,000.00. The Letter of Intent is attached and marked Exhibit C. Debtor is engaged in negotiations with the owner of Leading Light, LLC to increase the sales price of the real property and to sale the personal property to Leading Light, LLC as well. The Plan Proponent's financial projections show that the Debtor will have projected disposable income of $0. Class 5 consists of non-priority unsecured creditors. This class also includes the following creditors which filed unsecured claims as follows: * Claim No. 2-1 filed by Sunbelt Rentals, Inc. in the amount of $3,179.04. * Claim No. 4-1 Filed by J & B Supply, Inc. in the amount of $30,124.88. * Claim No. 5 filed by Cintas in the amount of $4,017.46. * Claim No. 8-1 filed by City Electric Supply in the amount of $7,503.43. This class of all allowed general unsecured non-priority claims and includes any amount of secured claims that exceed the value of the collateral securing the claim. Debtor does not anticipate any distribution to this class of creditors, which would be the same distribution they would receive in a chapter 7 liquidation of the business. Collection against any co-debtor or personal guarantor shall be prohibited after confirmation of the Plan provided that Debtor is not in default with the terms of the Plan. Class 6 consists of Equity security holders of the debtor. Equity security holder shall receive no distribution under the plan. Upon confirmation, Debtor shall be charged with administration of the case. Larry Bone will continue in his current position as CEO of Bone Construction Company, Inc., and facilitate the liquidation plan. Payments for the plan will be made from the sale of the business. Debtor may maintain bank accounts under the confirmed Plan in the ordinary course of business. A full-text copy of the Liquidating Plan dated February 18, 2025 is available at https://urlcurt.com/u?l=PPfAcq from PacerMonitor.com at no charge. Counsel to the Debtor: Marc Honey, Esq. HONEY LAW FIRM, PA P.O. Box 1254 Hot Springs, AR 71902 Telephone: (501) 321-1007 Facsimile: (501) 321-1255 Email: mhoney@honeylawfirm.com About Bone Construction Company Bone Construction Company, Inc. is an electrical contracting business organized as a C Corporation under Arkansas law on June 2, 2017. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ark. Case No. 24-71734) on October 18, 2024, with $100,001 to $500,000 in assets and $1 million to $10 million in liabilities. Judge Bianca M. Rucker presides over the case. Marc Honey, Esq., at Honey Law Firm, P.A., is the Debtor's bankruptcy counsel. BOOKS INC: Gets Final OK to Use Cash Collateral ----------------------------------------------- Books Inc. received final approval from the U.S. Bankruptcy Court for the Northern District of California, Oakland Division, to use the cash collateral of its secured creditors. The court authorized the company to use cash collateral in accordance with its budget, with a variance of up to 10% per line item calculated on a monthly basis. The budget shows monthly total operational expenses of $1,247,180 for March; $1,404,330 for April; $1,631,433 for May; $1,542,623 for May; and $1,802,983 for July. Books was ordered to make monthly payments of $4,097.43 to Commercial Bank of California, $2,750 to Adrienne Kernan, and $2,513 to the U.S. Small Business Administration. As additional protection, the secured creditors were granted replacement liens with the same priority as their pre-bankruptcy liens. About Books Inc. Books Inc. is the oldest independently owned bookstore in the western U.S. and operates eleven brick-and-mortar stores in the Bay Area. In addition to its physical locations, the Company runs an online store, offering a mix of direct shipping and in-store pickup for customers. The Company also fosters strong community engagement, hosting hundreds of author events, book clubs, and other activities each year. Books Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-40087 on January 20, 2025, with $3,283,300 in assets and $5,161,574 in liabilities. Andrew Perham, chief executive officer of Books Inc., signed the petition. Judge William J. Lafferty oversees the case. Stephen D. Finestone, Esq., at Finestone Hayes, LLP is the Debtor's legal counsel. Commercial Bank of California, as secured creditor, is represented by: David J. Rapson, Esq. Rapson Law Offices 318 San Carlos Avenue Piedmont, CA 94611-4119 Phone: 510-286-2080 Email: rapsonlaw@gmail.com BUFFALO NEWSPRESS: Hires Gross Shuman P.C. as Counsel ----------------------------------------------------- Buffalo Newspress Inc., d/b/a BNP Empowered Print, seeks approval from the U.S. Bankruptcy Court for the Western District of New York to employ Gross Shuman P.C. as counsel. The firm's services include: a. advising the Debtor of its rights, powers, and duties as a debtor and debtor-in-possession in the continued operation of its business and the management of its property; b. preparing on behalf of the Debtor any and all necessary motions, applications, answers, draft orders, other legal pleadings, notices, schedules and other documents, and reviewing financial and other reports to be filed in the Bankruptcy Case; c. advising the Debtor concerning, and preparing responses to, applications, motions, other pleadings, notices and other papers that may be filed and served in this Bankruptcy Case; d. advising the Debtor and assisting in the negotiation and documentation of financing agreements, debt and cash collateral orders and related transactions; e. advising and counseling the Debtor with respect to any sales of assets and negotiating and preparing the agreements, pleadings, and other documents related thereto; f. reviewing the nature and validity of any liens asserted against the Debtor's property and advising the Debtor concerning the enforceability of such liens; g. advising the Debtor regarding its ability to initiate actions to collect and recover property for the benefit of the estate; h. counseling the Debtor in connection with the formulation, negotiation and drafting of an anticipated plan of reorganization and related documents; i. advising the Debtor concerning executory contracts and unexpired lease assumptions, assignments, and rejections and lease restructurings; j. assisting the Debtor in reviewing, estimating, and resolving claims asserted against the Debtor's estate; k. commencing and conducting any and all litigation necessary or appropriate to assert rights held by the Debtor, protect assets of the Debtor's estate, or otherwise further the goals of completing the Debtor's successful reorganization; 1. providing general litigation and other non-bankruptcy legal services as requested by the Debtor; m. appearing in Court on behalf of the Debtor, as needed, in connection with this Bankruptcy Case; and n. providing such other services to the Debtor as may be necessary in this Case or any related proceeding(s). The firm will be paid at these rates: Partners $300 to $450 per hour Associates $250 to $300 per hour Law Clerks $175 to $225 per hour Paralegals $225 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The firm will be paid a retainer of $100,000, of which $15,000 was received by the firm on February 4, 2025. Kevin R. Lelonek, Esq., a partner at Gross Shuman 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: Kevin R. Lelonek, Esq. Gross Shuman P.C. 465 Main Street, Suite 600 Buffalo, NY 14203 Tel: (716) 854-4300 Email: kielonek@gross-shuman.com About Buffalo Newspress Inc. d/b/a BNP Empowered Print Buffalo Newspress Inc. also known as BNP Empower, is a full-service printing solutions provider based in Buffalo, NY, offering digital, web offset, and other printing services with 24/7 operations. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D>. N.Y. Case No. 25-10125) on February 5, 2025. In the petition signed by Thomas J. Majerski, president, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Carl L. Bucki oversees the case. Kevin R. Lelonek, Esq., at GROSS SHUMAN PC, represents the Debtor as legal counsel. BYJU'S ALPHA: Camshaft, T&L Must Face $500MM Clawback Suit ---------------------------------------------------------- Judge John T. Dorsey of the United States Bankruptcy Court for the District of Delaware denied the motions filed by Defendants Camshaft Capital Fund LP, Camshaft Capital Advisors LLC, Camshaft Capital Management LLC, and Think and Learn Private Limited to dismiss the second amended complaint in the case captioned as BYJU'S ALPHA, INC., Plaintiff, v. CAMSHAFT CAPITAL FUND, LP, CAMSHAFT CAPITAL ADVISORS, LLC, CAMSHAFT CAPITAL MANAGEMENT, LLC, RIJU RAVINDRAN, INSPILEARN LLC, AND THINK AND LEARN PRIVATE LIMITED, Defendants, Adv. No. 24-50013 (JTD) (Bankr. D. Del.). BYJU's Alpha commenced this action asserting that the Defendants fraudulently transferred over $500 million of the Debtor's assets in an attempt to defraud the Debtor's creditors. Defendants Camshaft Capital Fund LP, Camshaft Capital Advisors LLC, and Camshaft Capital Management LLC moved to dismiss the Second Amended Complaint or failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6), made applicable to this proceeding by Federal Rule of Bankruptcy Procedure 7012. Defendant Think and Learn Private Limited also moved to dismiss pursuant to Rules 12(b)(2) and 12(b)(5) claiming lack of personal jurisdiction and insufficient service of process. Debtor was formed to borrow $1.2 billion in five-year term loans in November 2021 from certain lenders under a Credit and Guaranty Agreement, with GLAS Trust Company LLC serving as the Lenders' agent. Shortly after funding, the Debtor began defaulting on its loan obligations. From March to October 2022, the Debtor and its affiliates failed to satisfy three covenants at least four times. The Lenders entered into a temporary waiver and several forbearance agreements to allow the Debtor time to cure the defaults. At the same time that the Debtor was negotiating with its Lenders to cure its defaults, it was transferring its largest asset to Camshaft, an apparent sham hedge fund. On April 27-28, 2022 -- just weeks after the first two defaults occurred, and after entering into the first forbearance agreement with the Lenders -- the Debtor made three wire transfers totaling $318 million to Camshaft. The Debtor made three more wire transfers totaling $215 million to Camshaft between July 12 and 13, 2022. The total, $533 million -- Alpha Funds -- was exchanged for a subscription to a limited partnership interest in Camshaft Fund. This left the Debtor with approximately $100 million in available funds across its known bank and brokerage accounts, and approximately $1.194 billion in liabilities (the amount outstanding on the Term Loans). Neither the transfer nor the true amount of cash on hand was disclosed to the Lenders at this time. The Debtor and the Lenders continued to attempt to reach a negotiated solution through the summer and fall of 2022. On Oct. 12, 2022, the Debtor and the Lenders entered into a second amendment to the Credit Agreement, memorializing that the outstanding defaults would mature into "Events of Default" if not cured by Nov. 24, 2022. The defaults remained uncured at the end of November, but the Lenders agreed to forbear through Dec. 1, 2022. When that forbearance expired, the parties entered into a final forbearance agreement in which the Lenders agreed to forbear from exercising remedies until February 10, 2023. By this time, the Lenders began telling the Debtor that unless progress towards a resolution was made, the Lenders intended to exercise remedies upon expiration of the latest forbearance agreement. Immediately, T&L's founder and CEO Byju Raveendran reached out to the Lenders, requesting that the parties reengage on a potential resolution. The Lenders were willing to engage, which then prompted several weeks of negotiation. During those negotiations, the Lenders focused on verifying the location of the Debtor's cash. After the final forbearance agreement expired, the Lenders directed their agent, GLAS, to begin exercising remedies. On March 3, 2023, GLAS accelerated all amounts outstanding -- over $1.2 billion in principal and outstanding interest and fees -- to become due and payable immediately. That same day, GLAS took control of the pledged equity in the Debtor and, as the now-sole shareholder of the Debtor, appointed Timothy R. Pohl, an experienced restructuring professional, as the Debtor's sole director. At the direction of GLAS, Pohl then appointed himself as the Debtor's sole officer. Unbeknownst to the Lenders, while the negotiations were taking place, Riju Raveendran, under the direction of T&L and with Camshaft's consent and assistance, began to transfer the Debtor's limited partnership interest in Camshaft Fund to Inspilearn. On March 1, 2023, a 100% transfer was processed from the Camshaft Capital Fund Capital Account of the Debtor to Inspilearn LLC. The Debtor received no consideration for this transfer. The transfer was finalized on March 31, 2023. Negotiations broke down and on May 3, 2023, GLAS and Pohl filed a lawsuit in the Delaware Court of Chancery seeking confirmation that, pursuant to Section 225 of the Delaware General Corporation Law, their exercise of remedies had effectuated their proper control of the Debtor. Camshaft's Motion to Dismiss Camshaft argues it is not a proper defendant to the Debtor's fraudulent transfer claims (Counts I through III of the Complaint), pursuant to Section 550 of the Bankruptcy Code. Camshaft argues that none of the Camshaft defendants qualifies as an initial transferee with respect to the Transfers. Specifically, it argues there is nothing in the Complaint that would support the conclusion that: (1) Camshaft Fund was anything more than a "mere conduit;" and (2) Camshaft Advisors and Camshaft Management ever had possession of the transferred funds at all. The Debtor responds that the "mere conduit" defense is an affirmative defense that cannot properly be considered on a Rule 12(b)(6) motion to dismiss. According to the Court, the Debtor has not included any allegations that would contradict the conclusion that Camshaft had dominion and control over the Alpha Funds. Read in its entirety, the Complaint does not allege facts that establish that Camshaft was a mere conduit. Camshaft also argues Camshaft Advisors and Camshaft Management were not initial transferees because there are no allegations in the Complaint that the Debtor made the initial transfer of the Alpha Funds to either entity. The Debtor responds that because the Complaint alleges that all the Camshaft entities were created by and are under the complete control of their founder William Morton, it is reasonable to infer that all the entities may have possessed the requisite dominion and control to be considered initial transferees. According to the Court, the Debtor has made extensive factual allegations in support of its assertion that the Camshaft entities are a sham. The Court emphasizes that while the precise details regarding the involvement of Camshaft Management and Camshaft Advisors are unclear at this stage of the case, there is more than enough support for the conclusion that those entities, like Camshaft Fund, were simply a tool for their founder, Mr. Morton, to perpetrate a fraud. Thus, unlike a case in which no allegations regarding gross misuse of the corporate form in this manner have been made, Camshaft Management and Camshaft Advisors are, at this stage of the case, proper defendants, the Court finds. T&L's Motion to Dismiss T&L raises three arguments related to personal jurisdiction: (1) that the Court lacks general personal jurisdiction over T&L because it is a foreign entity with no business operations in the United States; (2) that the Court lacks specific jurisdiction over T&L because the contacts relied upon by the Debtor are not T&L's contacts, but are contacts of Inspilearn and Raveendran; and (3) that even if minimum contacts were established, an exercise of personal jurisdiction over T&L would be unreasonable. The Debtor responds that the Court could exercise either general or specific jurisdiction over T&L. General jurisdiction exists, the Debtor argues, because the Court has jurisdiction over T&L's subsidiary Inspilearn, which is T&L's alter ego. Specific jurisdiction exists, according to the Debtor, because T&L's creation of U.S. entities for the purpose of engaging in business in the U.S., which business is now the subject of this litigation, amounts to conduct purposefully directed at this forum. Judge Dorsey holds, "Considering the extensive allegations in the Complaint suggesting T&L's use of a U.S. subsidiary to perpetrate a fraud, I find that under the circumstances of this case, the exercise of jurisdiction over T&L is reasonable." T&L's Motion to dismiss based on lack of personal jurisdiction is therefore denied. The Debtor alleges that T&L and Inspilearn were operating, in all respects, as a single entity at the complete direction and control of T&L's founder Byju Raveendran. These facts, if proven, would support the conclusion that Inspilearn is T&L's alter ego. As such, service on Inspilearn meets the requirements of Delaware law. According to the Court, T&L's Motion to Dismiss pursuant to Rule 12(b)(5) for insufficient service of process is denied. A copy of the Court's decision dated Feb. 27, 2025, is available at https://urlcurt.com/u?l=AnXU8V from PacerMonitor.com. About BYJU's Alpha BYJU's Alpha, Inc., designs and develops education software solutions. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 24-10140) on Feb. 1, 2024. In the petition signed by Timothy R. Pohl, chief executive officer, the Debtor disclosed up to $1 billion in assets and up to $10 billion in liabilities. Judge John T. Dorsey oversees the case. Young Conaway Stargatt & Taylor, LLP and Quinn Emanuel Urquhart & Sullivan, LLP serve as the Debtor's legal counsel. GLAS Trust Company LLC, as DIP Agent and Prepetition Agent, is represented in the Debtor's case by Kirkland & Ellis LLP, Pachulski Stang Ziehl & Jones, and Reed Smith. CAREPOINT HEALTH: Trustee Opposes Chapter 11 Plan Confirmation -------------------------------------------------------------- Emlyn Cameron of Law360 reports that on March 3, 2025, the U.S. Trustee's Office joined a wave of objections to CarePoint Health Systems Inc.'s Chapter 11 plan, arguing that the hospital owner has made it difficult to assess the plan's viability. About CarePoint Health CarePoint Health brings quality, patient-focused health care to Hudson County. Combining the resources of three area hospitals, Bayonne Medical Center, Christ Hospital in Jersey City, and Hoboken University Medical Center, CarePoint Health provides a new approach to deliver health care that puts the patient front and center. CarePoint Health leverages a network of top doctors, nurses, and other medical professionals whose expertise and attentiveness work together to provide complete coordination of care, from the doctor's office to the hospital to the home. Patients benefit from the expertise and capabilities of a broad network of leading specialists and specialized technology. At CarePoint Health, all medical professionals emphasize preventive medicine and focus on educating patients to make healthy life choices. For more information on its facilities, partners and services, visit www.carepointhealth.org. CarePoint Health Systems Inc., doing business as Just Health Foundation, and its affiliates filed voluntary petitions for relief under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12534) on Nov. 3, 2024, with up to $1 million in assets and up to $50,000 in liabilities. Judge J. Kate Stickles oversees the cases. The Debtors tapped Dilworth Paxson LLP as legal counsel, Ankura Consulting as financial advisor, and Epiq Corporate Restructuring, LLC as claims and noticing agent and administrative advisor. CARROLLTON GATEWAY: Hires Hayward PLLC as Counsel ------------------------------------------------- Carrollton Gateway Development Partners, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Hayward PLLC as counsel. Hayward PLLC as bankruptcy counsel to handle their Chapter 11 case. The firm will be paid at these rates: John P. Lewis, Jr. $450 per hour Other Attorneys $250 to $500 per hour Paralegal $215 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. John P. Lewis, Jr., Esq., a partner at Hayward PLLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: John P. Lewis, Jr., Esq. Hayward PLLC 10501 North Central Expy., Suite 106 Dallas, TX 75231 Tel: (972) 755-7100 About Carrollton Gateway Development Partners, LLC Carrollton Gateway Development Partners LLC is engaged in activities related to real estate. Carrollton Gateway Development Partners LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-33585) on November 5, 2024. In the petition filed by Dennis M. Holmgren, as Manager of Urban Planning Partners, LLC, the Debtor reports estimated assets between $10 million and $50 million and estimated liabilities between $1 million and $10 million. The Debtor is represented by: Dennis M. Holmgren, Esq. HOLMGREN JOHNSON: MITCHELL MADDEN, LLP 12801 North Central Expressway, Suite 140 Dallas, Texas 75243 Tel: (972) 484-7780 Email: dennis@hjmmlegal.com CBAM LTD 2018-6: Moody's Affirms Ba3 Rating on $51.5MM E-R Notes ---------------------------------------------------------------- Moody's Ratings has upgraded the ratings on the following notes issued by CBAM 2018-6, Ltd.: US$79.63M Class B-1-R Floating Rate Notes, Upgraded to Aaa (sf); previously on Dec 6, 2019 Assigned Aa2 (sf) US$42.88M Class B-2-R Floating Rate Notes, Upgraded to Aaa (sf); previously on Dec 6, 2019 Assigned Aa2 (sf) US$45M Class C-R Deferrable Floating Rate Notes, Upgraded to Aa1 (sf); previously on Dec 6, 2019 Assigned A2 (sf) US$61M Class D-R Deferrable Floating Rate Notes, Upgraded to Baa1 (sf); previously on Sep 23, 2020 Confirmed at Baa3 (sf) Moody's have also affirmed the ratings on the following notes: US$610M (Current outstanding amount US$298,278,207) Class A-1-R Floating Rate Notes, Affirmed Aaa (sf); previously on Dec 6, 2019 Assigned Aaa (sf) US$30M (Current outstanding amount US$14,669,420) Class A-2-R Fixed Rate Notes, Affirmed Aaa (sf); previously on Dec 6, 2019 Assigned Aaa (sf) US$51.5M Class E-R Deferrable Floating Rate Notes, Affirmed Ba3 (sf); previously on Sep 23, 2020 Confirmed at Ba3 (sf) CBAM 2018-6, Ltd., issued in June 2018 and refinanced in December 2019, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured US loans. The portfolio is managed by CBAM Partners, LLC. The transaction's reinvestment period ended in January 2023. RATINGS RATIONALE The rating upgrades on the Class B-1-R, B-2-R, C-R and D-R notes are primarily a result of the significant deleveraging of the senior notes following amortisation of the underlying portfolio since the payment date in January 2024. The affirmations on the ratings on the Class A-1-R, A-2-R and E-R notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The Class A-1-R and A-2-R notes have paid down by approximately USD271.4 million (42.4%) in the last 12 months and USD327.1 million (51.1%) since closing. As a result of the deleveraging, over-collateralisation (OC) has increased. According to the trustee report dated January 2025 [1] the Class A/B, Class C and Class D OC ratios are reported at 139.8%, 128.7% and 116.1% compared to January 2024 [2] levels of 127.7%, 120.3% and 111.5%, respectively. Moody's note that both the January 2024 and January 2025 principal payments are not reflected in the reported OC ratios. The key model inputs Moody's uses in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published methodology and could differ from the trustee's reported numbers. In Moody's base case, Moody's used the following assumptions: Performing par and principal proceeds balance: USD644.1 million Defaulted Securities: none Diversity Score: 61 Weighted Average Rating Factor (WARF): 3092 Weighted Average Life (WAL): 3.5 years Weighted Average Spread (WAS): 3.23% Weighted Average Recovery Rate (WARR): 47.38% The default probability derives from the credit quality of the collateral pool and Moody's expectations of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into Moody's cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in May 2024. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, using the methodology "Moody's Approach to Assessing Counterparty Risks in Structured Finance" published in October 2024. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from Moody's other analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. CENTRAL FLORIDA: Case Summary & 18 Unsecured Creditors ------------------------------------------------------ Debtor: Central Florida Construction Group, Inc. 6250 NW 75th Ave. Chiefland, FL 32626 Business Description: The Debtor is a construction company specializing in a wide range of residential and commercial services. Chapter 11 Petition Date: March 3, 2025 Court: United States Bankruptcy Court Northern District of Florida Case No.: 25-10051 Debtor's Counsel: Justin M. Luna, Esq. LATHAM LUNA EDEN & BEAUDINE LLP 201 S. Orange Avenue, Suite 1400 Orlando, FL 32801 Tel: (407) 481-5800 Fax: (407) 481-5801 Email: jluna@lathamluna.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Michael J. Graham as president. A full-text copy of the petition, which includes a list of the Debtor's 18 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/VV4QYTA/Central_Florida_Construction_Group__flnbke-25-10051__0001.0.pdf?mcid=tGE4TAMA CES KIMBERLINA: Case Summary & Five Unsecured Creditors ------------------------------------------------------- Debtor: CES Kimberlina, Inc. 14051 Paramount Blvd Suite C Paramount, CA 90723 Business Description: CES Kimberlina, Inc. is in the business of producing renewable energy from solid waste, utilizing advanced power generation technologies such as oxy-fuel combustion and carbon capture systems. The Company operates cutting-edge research facilities, including the Kimberlina Power Plant, to develop innovative solutions that improve energy efficiency and reduce emissions. Chapter 11 Petition Date: March 3, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-11691 Judge: Hon. Sheri Bluebond Debtor's Counsel: Charles Shamash, Esq. CACERES & SHAMASH, LLP 9701 Wilshire Boulevard, Suite 1000 Beverly Hills, CA 90212 Tel: (310) 205-3400 Fax: (310) 878-8308 Email: cs@locs.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Kwabena Obeng as designated party. 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/TISXZSI/CES_Kimberlina_Inc__cacbke-25-11691__0001.0.pdf?mcid=tGE4TAMA CHORD ENERGY: S&P Rates New $750MM Senior Unsecured Notes 'BB' -------------------------------------------------------------- S&P Global Ratings assigned its 'BB' issue-level rating and '3' recovery rating to Houston-based crude oil and natural gas exploration and production company Chord Energy Corp.'s proposed $750 million senior unsecured notes due in 2033. The '3' recovery rating indicates its expectation for meaningful (50%-70%; rounded estimate: 65%) recovery of principal to creditors in the event of a payment default. Chord intends to use the net proceeds to repay its $400 million, 6.375% senior unsecured notes due in 2026 and a portion of its outstanding borrowings on its senior secured reserve-based lending (RBL) credit facility. The company had $445 million drawn on its RBL as of Dec. 31, 2024. ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors -- S&P's simulated default scenario assumes sustained low commodity prices, consistent with the conditions of past defaults in this sector. -- S&P bases its valuation for Chord on a company-provided year-end 2024 PV-10 report using our recovery price deck assumptions of $50 per barrel for West Texas Intermediate crude oil and $2.50 per million Btu for Henry Hub natural gas. -- S&P's recovery analysis assumes Chord's RBL credit facility will be fully drawn up to its $2 billion elected commitment amount at default. The RBL has a borrowing base of $2.75 billion and matures in 2027. -- S&P caps its recovery rating on the company's unsecured debt at '3' because S&P assumes, based on empirical analysis, that the size and ranking of Chord's debt claims will change prior to a hypothetical default. Simulated default assumptions -- Simulated year of default: 2030 -- S&P adjusts its gross enterprise valuation to account for restructuring administrative costs (estimated at about 5% of the gross value). Simplified waterfall -- Net enterprise value (after 5% administrative costs): $3.39 billion -- First-lien claims: $2.08 billion --Recovery expectations: Not applicable -- Remaining value available to unsecured debt claims: $1.31 billion -- Unsecured debt claims: $775 million --Recovery expectations: 50%-70% (rounded estimate: capped at 65%) All debt amounts include six months of prepetition interest. CINEPLEX INC: Fitch Alters Outlook on 'B' LongTerm IDR to Negative ------------------------------------------------------------------ Fitch Ratings has revised Cineplex, Inc.'s Rating Outlook to Negative from Stable and affirmed its Long-Term Issuer Default Rating (IDR) at 'B'. The CAD$100 million senior secured revolving credit facility and CAD$575 million senior secured notes were downgraded to 'BB-' with a Recovery Rating of 'RR2' from 'BB'/'RR1' due to revised GC EBITDA. Cineplex's IDR is supported by its 73% Canadian box office market share, diverse revenue streams, and effective entertainment ecosystem monetization. The rating also reflects its smaller scale, historically lower adjusted EBITDA margins, and weaker free cash flow compared to U.S. peers. Despite high leverage, there is potential for deleveraging as attendance is expected to recover this year with a promising film slate. The Negative Outlook reflects concerns about achieving margin gains post-2024 film supply disruption, maintaining attendance levels amid rising streaming competition, especially for smaller-format movies, and adapting to a more streamlined film release schedule. Key Rating Drivers Disrupted Production Cycle; Expected Attendance Recovery: In 2023, the writers and actors' unions went on strike for over 110 days, contributing to the biggest interruption in American film and television content production in recent history. The strike amplified pandemic-related supply-chain challenges, extending delays in the typical film creation cycle (~31 months) and creating post-production and releasing bottlenecks in 2024. As a result, approximately $1.5 billion in film content was rescheduled for release in 2025, leaving a substantial shortage of tent-pole films during the first half of 2024. Fitch expects a substantial recovery in fiscal 2025, driven by a more robust film slate and more normalized theatrical release schedule in the short to medium term, as studios continue optimizing content-creation cycles, particularly for blockbuster films. Fitch expects box office revenues for 2025 to recover to the $9.0 billion-$9.5 billion range. Leverage to Improve Post-Strikes Disruptions: During 2024, Cineplex's EBITDA margin deteriorated significantly to 7.0% from 11.3% the previous year because of the release schedule shift from 2024 to 2025. This shift particularly affected attendance levels in the first half of 2024, with a notably reduced blockbuster slate causing a 10% drop in attendance for the year. Despite sustained increases in ticket and food prices throughout the year, which only partially offset the decline, Cineplex's EBITDA and EBITDAR leverage rose to 8.0x and 7.0x, respectively, from 5.2x and 6.6x in 2023. For 2025, Fitch expects Cineplex's EBITDA and EBITDAR leverage to return to around 5.0x and 6.0x, respectively, within the rating sensitivities by year-end, as result of recovered attendance levels and margin gains, while maintaining an adequate liquidity position. Fitch also expects Cineplex to continue implementing a consistent financial policy focused on its deleveraging strategy, aligning with its public target of maintaining a net leverage ratio (excluding convertible notes) between 2.5x to 3.0x. Leading Market Share; Film Distribution: Cineplex's market position is solid, with a 73% share of the Canadian box office market, enabling operating efficiencies and cost advantages. This translates into theater-level cost-savings, maximized revenue per patron, multiple movie formats for all budgets, granularity of market demographics and distribution leverage with film studios. Cineplex's diversified business mix extends beyond traditional movie exhibition by clustering non-movie entertainment and media services, distinguishing it from regional competitors like Landmark Cinemas. Highly Dependent on Studios Production: Movie theater exhibitors rely on the quality, quantity and timing of film production, which are beyond management's control. Throughout the pandemic, film studios delayed theatrical releases while redirecting certain titles to their own DTC offerings, with options ranging from day-and-date simultaneous releases on DTC platforms and theaters to theatrical releases only. Fitch Ratings sees theatrical exhibition as vital for studios' large format releases, recognizing its franchise branding potential. Video-Streaming Platform Competition: Since the pandemic, the theatrical film industry has experienced increasing competition from at-home distribution channels including DTC streaming services owned by film studios such as Disney+ or Max. As part of their initial strategy to increase subscribers, these studios funneled certain films to their platforms, often bypassing the theatrical exhibition. Over the past three years, studios have worked to normalize theatrical release schedules, acknowledging the economic importance of the theatrical window. Diversified Entertainment Ecosystem: Cineplex's strategy prioritizes accessible entertainment options for Canadians while optimizing and diversifying revenue mix and operational risks. It includes various exhibition formats, a diversified film slate, and increasing 10% revenue contribution from foreign films to diversify from Hollywood. Entertainment options for non-moviegoers include location-based entertainment (LBE) venues, The Rec Room (targeting millennials) and Playdium (targeting families). In 2024, Cineplex generated total revenue of 42% from Box Office, 35% Food Service, 10% Media and 13% Amusement and Other. Derivation Summary Cineplex's ratings reflect its scale and market position as one of the largest entertainment companies in Canada. It combines theatrical film experiences with social entertainment destinations and advertising. Cineplex has a relatively smaller scale than its U.S. peers but is more diversified with greater operating efficiencies. Cineplex has lower historical EBITDA margins and FCF than Cinemark. Cinemark's rating and Outlook (B+/Stable) reflect its higher operating scale and diversification, as the third largest theater chain in the U.S., with a solid presence in key Latin American markets, when compared to regional peers like Cineplex, Inc. Additionally, Cinemark maintains a more conservative balance sheet and greater liquidity than its peers, Cineplex and AMC Entertainment. Key Assumptions - For FY 2025, attendance is expected to experience mid-to-high single-digit growth, reaching approximately 46 million, due to the rescheduling of 2024 films and the release of new blockbusters during the year. For the remainder of the projection period, a low single-digit growth per year is anticipated, assuming media fragmentation continues. - Fitch estimates box-office per patron increasing about 2.5%-3.0% yoy, consistent with recent years and supported by larger movie formats that offer better margins and monetization. A low to mid single-digit growth rate per year was assumed for the rest of the rating horizon. - Concession per patron growing around 3.5% per year throughout the projection, supported by increasing preference for premium food and liquor offerings across locations. - The food delivery service is assumed to expand in the low-single digits, assuming a modest but consistent demand from moviegoers at home. - LBE food service is assumed to increase at a mid-to-high single digit rate, supported by additional locations across Canada. - Adjusted EBITDA margin for the film entertainment and Food Service recovering to 11.3% by the end of 2025, gradually improving to 12.0% by the end of the projected period. - For the media segment, a mid-to-high single-digit revenue growth, as Cineplex continues to expand its advertising solutions across its key markets. In terms of EBITDA margin fluctuating around 55% - 56% throughout the rating horizon. - For the amusement segment, Fitch assumed a mid-single digit growth rate for revenue supported by new LBE locations, while EBITDA margins were maintained at current levels around low-to-mid20s %. - Corporate overhead of around 4.7%-5.0% of revenues throughout the projection. - Effective tax rate at 23% throughout the projected period. - Capex intensity at 5.15% in fiscal 2025 and then gradually increasing to 6.3% by the end of the projection, explained by new LBE investments, exhibition venue upgrades and maintenance capex. Recovery Analysis - The recovery analysis assumes Cineplex would be considered a going concern in bankruptcy and that the company would be reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. - Adjusted EBITDA: Cineplex's going concern EBITDA is based on a run-rate consolidated, adjusted EBITDA of $150 million, reflecting pre-pandemic operational levels, in line with the current recovery path and industry expectations in the upcoming years. - Fitch stresses EBITDA generation by assuming an accelerated 18% fall in attendance amounting to 41 million from a run-rate base of 50 million moviegoers (66 million attendance in 2019), slightly higher ticket prices and concessions per patron levels, which do not offset assumed higher operating costs, resulting in high single-digit margins for the Film Entertainment and Content segment representing 60% of total adjusted EBITDA. - For the Media and Amusement segments, Fitch maintained a 15% decline in revenue but with a 30% and a 20% decrease in Media and Amusement margins, respectively. This results in a GC EBITDA of $120 million or roughly a 21% stress versus its run-rate base. - Prior recessions provide little precedent for a stress case as theatre attendance increased in six of the last eight recessions due to the fact that theatrical exhibition is a relatively cheap form of entertainment. However, the rise of alternative distribution platforms and streaming subscription plans with attractive entry-level offerings (e.g. Netflix, Hulu, Disney+, Max etc.), including independent smaller format movies that are not dependent on exclusive theatrical windows, could place added pressure on theatrical exhibition in future downturns, particularly in urban areas where the cost of an average theater ticket might exceed $12. - Fitch believes the theater loyalty programs like Cineplex's SCENE and CineClub programs could support attendance and higher per patron spending levels. - Multiple: Fitch employs a 5.5x enterprise value multiple to calculate post-reorganization valuation, roughly in-line with the median TMT emergence enterprise value/EBITDA multiple, and incorporates the following into its analysis: (1) Fitch's belief that theater exhibitors have a limited tangible asset value and that the business model bears the risk of being disrupted over the longer-term by alternative distribution models (e.g. Netflix typically releases films in theaters and to its streaming subscribers simultaneously, with some limited exceptions for awards contention); (2) Cineplex's leading market position in Canada with a wide array of movie theater formats and experiences, attractive content offerings (Hollywood and International film studios), and limited revenue diversification from media and other forms of entertainment; (3) Recent trading multiples (EV/EBITDA) in a range of 6x-17x; (4) Transaction multiples in the 9x range (e.g. Cineworld Group plc acquired U.S. theater circuit Regal Entertainment for $5.8 billion in February 2018 for an LTM EBITDA purchase price multiple of roughly 9.0x. AMC purchased U.S. theater circuit Carmike for $1.1 billion in December 2016 for a purchase price multiple of 9.2x and AMC purchased Odeon and UCI for $1.2 billion in November 2016 at a purchase price multiple of 9.1x). - Fitch estimates an adjusted, distressed enterprise valuation of $752 million, after admin claims. - Debt: Fitch assumes a fully drawn revolver in its recovery analysis since credit revolvers are tapped when companies are under distress. Additionally, the company has $575 million of first lien senior secured notes pari passu with the revolver, and $216.3 million of unsecured convertibles. For Fitch's recovery analysis, leases are a key consideration. While Fitch does not assign recovery ratings for the company's operating lease obligations, it is assumed the company rejects 15% of its remaining $1.1 billion in operating lease commitments due to their significance to the operations in a going-concern scenario. This incorporates the importance of the leased space to the core business prospects as a going concern. - Cineplex had $791.3 million in total debt as of Dec. 31, 2024, composed by $575 million senior secured notes and $216.3 million of unsecured convertible notes. - Under this scenario, the $100 million revolving credit facility and the $575 million of senior secured notes have superior recovery prospects and are rated 'BB-'/'RR2', reflecting an issue rating two notches above Cineplex's IDR. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage sustained above 6.5x and EBITDAR leverage sustained above 7.25x; - Significant deterioration in Cineplex's liquidity position; - Increasing secular pressure as illustrated in sustained declines in attendance and/or concession spending per patron; - Failed expansion strategy of its media and amusement segments, evidenced by lower-than-expected margins and sluggish revenue growth. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Higher revenue and EBITDA contribution from its Media and Amusement segments, driving a higher free cash flow generation and notably increasing the scale of the company; - EBITDA leverage sustained below 5.5x and EBITDAR leverage sustained below 6.25x; - FCF margins sustained in the low-to mid-single digits; - The rating will stabilize with higher EBITDA margins in the low-to-mid teen digits, as result of improved attendance, consistent pricing conditions and cost structure stability, driving EBITDA Leverage below 6.5x. Liquidity and Debt Structure As of Dec. 31, 2024, Cineplex's liquidity position was $176 million, consisting of $84 million in cash on hand and $92 million available under its $100 million revolving credit facility (RCF). Fitch expects FCF generation to gradually improve throughout the rating horizon, moving towards a low-single-digit FCF margin, supported by an improving attendance and higher quality of the film slate. Issuer Profile Cineplex Inc. is one of Canada's largest entertainment organizations, with 1,617 screens in 156 movie theatres and 16 location-based entertainment venues from coast to coast. Cineplex operates digital commerce, cinema media, and digital place-based media businesses through wholly owned subsidiaries. Summary of Financial Adjustments - Balance sheet lease liabilities are used as lease-equivalent debt starting in fiscal 2024, in accordance with Fitch's Corporate Rating Criteria dated Dec. 6, 2024. Prior years used an 8x multiple applied to lease expense for lease-equivalent debt. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Cineplex Inc. LT IDR B Affirmed B senior secured LT BB- Downgrade RR2 BB CISION LTD: Nears Agreement with Lenders ---------------------------------------- Reshmi Basu of Bloomberg News reports that Platinum Equity-backed public relations firm Cision Ltd. and a group of its lenders are close to reaching a deal to provide the company with fresh capital, according to sources familiar with the matter. Discussions involve approximately $250 million in new funding from lenders who have entered a cooperation agreement, the sources said, requesting anonymity due to the private nature of the talks. The proposal includes below-par debt exchanges, they added. Cision and an ad hoc group of lenders have been exchanging proposals after hitting a standstill over a debt restructuring in January 2025. About Cision Ltd. Cision is a leading global provider of earned media software and services to public relations and marketing communications professionals. CITRUS360 LLC: Case Summary & 13 Unsecured Creditors ---------------------------------------------------- Debtor: Citrus360, LLC 10575 Friendship Rd. Pilot Point, TX 76258 Chapter 11 Petition Date: March 3, 2025 Court: United States Bankruptcy Court Southern District of Texas Case No.: 25-70056 Judge: Hon. Eduardo V Rodriguez Debtor's Counsel: Kurt Stephen, Esq. LAW OFFICES OF KURT STEPHEN, PLLC 100 S. Bicentennial McAllen, TX 78501-7050 Tel: 956-631-3381 E-mail: kurt@kstephenlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Surya K Vidiyala as member. A full-text copy of the petition, which includes a list of the Debtor's 13 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/5WZFZ4I/Citrus360_LLC__txsbke-25-70056__0001.0.pdf?mcid=tGE4TAMA CUMBERLAND ACADEMY: Moody's Puts Ba2 Rating on Review for Downgrade ------------------------------------------------------------------- Moody's Ratings has placed Cumberland Academy, TX's Ba2 rating under review for downgrade. Previously, the outlook was stable. The school has approximately $74.3 million of long term debt outstanding. The rating is under review for downgrade as Moody's assess the school's current and future financial condition following a debt service covenant violation in fiscal 2024, which is an event of default per the legal terms of the school's Series 2020A bonds. RATINGS RATIONALE The review for downgrade will assess the cause and credit impact of the school's financial covenant violation due to less than sum sufficient debt service coverage in fiscal 2024. Moody's reviews will include an assessment of the remedies available to bondholders (such as the acceleration of principal and interest) should they not approve a default waiver requested by the school. Moody's reviews will also focus on the school's governance financial performance and the potential for further covenant violations. The school's governance is a key driver of this rating action. The academy has experienced some leadership turnover in the past year and Moody's reviews will assess the management team's ability to address the weakened financial performance resulting in the fiscal 2024 covenant violation. RATING OUTLOOK The review will consider the causes and financial impacts of the school breaching its covenanted debt service coverage requirement in fiscal 2024 and the prospects for improvement in fiscal 2025. Moody's will also incorporate the risk that bondholders do not provide the waiver for noncompliance of the bond covenant, which could result in the acceleration of principal. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING -- A confirmation will be considered if bondholders consent to a waiver of the default and Moody's believes the school's future financial and operational performance will return to previous standards. FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING -- A downgrade will be considered under a range of circumstances, including acceleration of principal and poor prospects for financial improvement and further covenant violations. LEGAL SECURITY The bonds are special, limited obligations of the New Hope Cultural Education Facilities Finance Corporation, TX, secured solely by revenues derived from a loan agreement with Cumberland Academy. Under the loan agreement, the academy has pledged to make payments derived from revenues received from the operation of all of its facilities. The academy has also executed a deed of trust covering its real and personal property interests associated with the all of its facilities as security for the debt. PROFILE Cumberland Academy is a K-12 charter school that serves Tyler, TX and the surrounding area. The academy operates six facilities on four campuses with a combined enrollment of 2,035 students. The organization is governed by a six member board of directors and operates under a charter granted by the Texas Education Agency, expiring in 2026. METHODOLOGY The principal methodology used in this rating was US Charter Schools published in April 2024. DIOCESE OF ROCHESTER: Slater Slater Advises Sexual Abuse Claimants ------------------------------------------------------------------ The law firm of Slater Slater Schulman LLP filed a verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure to disclose that in the Chapter 11 case of the Diocese of Rochester, the firm represents Sexual Abuse Claimants. The Firm represents the seven individual Sexual Abuse Claimants. To maintain their confidentiality, each Claimant is identified only by their Sexual Abuse Proof of Claim Form numbers. The names and addresses of the confidential Claimants are available to permitted parties who have executed a confidentiality agreement and have access to the Sexual Abuse Claim Forms. Pursuant to retainer fee agreements, the Firm was individually retained by each Claimant to pursue for damages against the Diocese of Rochester as a result of sexual abuse suffered when each Claimant was a child. The scope of representation includes: (i) representing and acting on behalf of each Claimant as the Claimant's attorneys in the bankruptcy case, (ii) filing a proof of claim on behalf of each Claimant in the bankruptcy case, and/or (iii) filing a corresponding civil lawsuit in the Supreme Court of the State of New York against the Diocese of Rochester and/or parishes, schools and other Catholic institutions in the Diocese. The Firm's interest relative to each Claimant is outlined in the retainer agreements executed by each Claimant. Each Claimant maintains an individual economic interest against the Debtor that has been disclosed in the Sexual Abuse Survivor Proof of Claim Forms. The law firm can be reached at: Slater Slater Schulman LLP Stephanie Lannigan Bross, Esq. (pro hac vice) 445 Broad Hollow Road Suite 419 Melville, NY 11747 631-420-9300 Email: sbross@sssfirm.com About The Diocese of Rochester The Diocese of Rochester in upstate New York provides support to 86 Roman catholic parishes across 12 counties in upstate New York. It also operates a middle school, Siena Catholic Academy. The diocese has 86 full-time employees and six part-time employees and provides medical and dental benefits to an additional 68 retired priests and two former priests. The diocese generated $21.88 million of gross revenue for the fiscal year ending June 30, 2019, compared with a gross revenue of $24.25 million in fiscal year 2018. The Diocese of Rochester filed for Chapter 11 bankruptcy protection (Bankr. W.D.N.Y. Case No. 19-20905) on Sept. 12, 2019, amid a wave of lawsuits over alleged sexual abuse of children. In the petition, the diocese was estimated to have $50 million to $100 million in assets and at least $100 million in liabilities. Bond, Schoenec & King, PLLC and Bonadio & Co. serve as the diocese's legal counsel and accountant, respectively. Stretto is the claims and noticing agent. The U.S. Trustee for Region 2 appointed an official committee of unsecured creditors in the diocese's Chapter 11 case. Pachulski Stang Ziehl & Jones, LLP, and Berkeley Research Group, LLC, serve as the committee's legal counsel and financial advisor, respectively. DJK ENTERPRISES: Court Extends Cash Collateral Access to April 30 ----------------------------------------------------------------- DJK Enterprises, LLC received sixth interim approval to use the cash collateral of Effingham Asset Funding, LLC to pay its operating expenses. The interim order penned by Judge Laura Grandy of the U.S Bankruptcy Court for the Southern District of Illinois approved the use of the lender's cash collateral from March 1 to April 30, in accordance with DJK's projected budget. The company can exceed individual budget items by up to 10%. Effingham holds a lien on DJK's real property in Effingham, Ill., on account of its secured loan under an agreement originally made with St. Louis Bank, which was later assigned to the lender. DJK owes its lender approximately $10.8 million. In exchange for the use of its cash collateral, Effingham will receive first-priority replacement liens on DJK's assets, a monthly payment of $50,000, and administrative priority claims in case of any diminution in the value of its collateral. A final hearing is scheduled for April 24. About DJK Enterprises DJK Enterprises, LLC operates in the traveler accommodation industry. It conducts business under the names Thelma Keller Convention Center, Holiday Inn Effingham and TK Grille Restaurant. The company is based in Effingham, Ill. DJK filed Chapter 11 petition (Bankr. S.D. Ill. Case No. 24-60126) on August 9, 2024, listing between $10 million and $50 million in both assets and liabilities. Chris Keller, DJK president and member of DJK, signed the petition. Judge Laura K. Grandy oversees the case. The Debtor is represented by Larry E Parres, Esq., at Lewis Rice, LLC. DOCUDATA SOLUTIONS: Case Summary & 30 Largest Unsecured Creditors ----------------------------------------------------------------- Lead Debtor: DocuData Solutions, L.C. 2701 E. Grauwyler Road Irving, Texas 75061 Business Description: The Debtors, together with their non-Debtor affiliates (the Company), are a global leader in business process automation. Leveraging their worldwide presence and proprietary technology, the Company offers high-quality payment processing and digital transformation solutions across the Americas and Asia, helping clients enhance efficiency and lower operational costs. The Company has worked with over 60% of the Fortune 100 companies. They provide essential services to top global banks, financial institutions, healthcare payers and providers, and major global brands. These services include finance and accounting solutions, payment technologies, healthcare payer and revenue cycle management, hyper-automation and remote work solutions, enterprise information management, integrated communications and marketing automation, as well as digital solutions for large enterprises. Chapter 11 Petition Date: March 3, 2025 Court: United States Bankruptcy Court Southern District of Texas Sixty affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- DocuData Solutions, L.C. (Lead Case) 25-90023 BancTec (Canada) Inc. 25-90029 BancTec (Puerto Rico) Inc. 25-90031 BancTec Group LLC 25-90034 BancTec Intermediate Holding, Inc. 25-90036 BancTec, Inc. 25-90039 BTC Ventures, Inc. 25-90042 Charter Lason, Inc. 25-90044 CorpSource Holdings, LLC 25-90047 Deliverex, LLC 25-90049 DFG2, LLC 25-90053 DFG2 Holdings, LLC 25-90051 Economic Research Services, Inc. 25-90056 Exela Enterprise Solutions, Inc. 25-90058 Exela Finance, Inc. 25-90060 Exela Intermediate LLC 25-90025 Exela RE LLC 25-90063 Exela Technologies BPA, LLC 25-90024 Exela XBP, LLC 25-90032 FTS Parent Inc. 25-90037 HOV Enterprise Services, Inc. 25-90040 HOV Services, Inc. 25-90045 HOV Services, LLC 25-90048 HOVG, LLC 25-90052 J&B Software, Inc. 25-90055 Kinsella Media, LLC 25-90065 Lason International, Inc. 25-90067 Managed Care Professionals, LLC 25-90070 Meridian Consulting Group, LLC 25-90071 NEON Acquisition, LLC f/n/a Novitex Acquisition, LLC 25-90026 Novitex Enterprise Solutions Canada, Inc. 25-90072 Novitex Government Solutions, LLC 25-90073 Novitex Holdings, Inc. 25-90075 Novitex Intermediate, LLC 25-90077 Pangea Acquisitions Inc. 25-90082 Plexus Global Finance LLC 25-90074 RC4 Capital, LLC 25-90076 Recognition Mexico Holding Inc. 25-90078 Regulus America LLC 25-90080 Regulus Group II LLC 25-90028 Regulus Group LLC 25-90030 Regulus Holding Inc. 25-90033 Regulus Integrated Solutions LLC 25-90035 Regulus West LLC 25-90038 Rust Consulting, Inc. 25-90041 Rustic Canyon III, LLC 25-90043 Services Integration Group, L.P. 25-90046 SOURCECORP BPS Inc. 25-90054 SIG-GP, L.L.C 25-90050 SOURCECORP Legal Inc. 25-90057 SOURCECORP Management, Inc. 25-90059 SOURCECORP, Incorporated 25-90061 SourceHOV Canada Company 25-90062 SourceHOV HealthCare, Inc. 25-90064 SourceHOV Holdings, Inc. 25-90066 SourceHOV LLC 25-90068 TRAC Holdings, LLC 25-90069 TransCentra, Inc. 25-90079 United Information Services, Inc. 25-90081 XCV-EMEA, LLC 25-90027 Judge: Hon. Christopher M Lopez Debtors' Bankruptcy Counsel: Timothy A. Davidson II, Esq. Ashley L. Harper, Esq. Philip M. Guffy, Esq. HUNTON ANDREWS KURTH LLP 600 Travis Street, Suite 4200 Houston TX 77002 Tel: (713) 220-4200 Email: taddavidson@hunton.com ashleyharper@hunton.com pguffy@hunton.com - and – Ray C. Schrock, Esq. Alexander W. Welch, Esq. Hugh Murtagh, Esq. Adam S. Ravin, Esq. Jonathan J. Weichselbaum, Esq. LATHAM & WATKINS LLP 1271 Avenue of the Americas New York, NY 10020 Tel: (212) 906-1200 Email: ray.schrock@lw.com alex.welch@lw.com hugh.murtagh@lw.com adam.ravin@lw.com jon.weichselbaum@lw.com Debtors' Bankruptcy Co-Counsel: LATHAM & WATKINS LLP Debtors' Investment Banker: HOULIHAN LOKEY, FINANCIAL ADVISORS, INC. Debtors' Financial Advisor: ALIXPARTNERS, LLP Debtors' Claims, Noticing, & Solicitation Agent: OMNI AGENT SOLUTIONS, INC. Estimated Assets (on a consolidated basis): $500 million to $1 billion Estimated Liabilities (on a consolidated basis): $1 billion to $10 billion The petitions were signed by Matt Brown as interim chief financial officer. Full-text copies of six of the Debtors' petitions are available for free on PacerMonitor at: https://www.pacermonitor.com/view/GFZVR7Y/DocuData_Solutions_LC__txsbke-25-90023__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/AI6RQ3Q/Exela_Technologies_BPA_LLC__txsbke-25-90024__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/BGLVU4A/BancTec_Canada_Inc__txsbke-25-90029__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/BBZWFVY/Regulus_Group_LLC__txsbke-25-90030__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/AW2WD4I/Exela_Intermediate_LLC__txsbke-25-90025__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/5B3QNIY/United_Information_Services_Inc__txsbke-25-90081__0001.0.pdf?mcid=tGE4TAMA Consolidated List of Debtors' 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. U.S. Bank National Association Bondholders $23,953,210 Company, as Trustee for July Unsecured 2026 Notes 60 Livinston Ave St Paul, MN 55107 Tel: (651) 224-5117 Fax: (651) 466-7430 Email: support@customerconnection.usbank.com 2. ASG Technologies, Inc. Litigation $3,400,000 700 Highlander Blvd #300 Settlement Arlington, TX 76015 Tel: (817) 652-6300 Email: info@asg.com 3. Konica Minolta Trade Vendor $1,362,835 Business Solutions U.S.A. Inc. Dept. CH 19188 Palatine, IL 60055-9188 Tel: (630) 271-6900 Email: mgrande@kmbs.konicaminolta.us 4. Opex Trade Vendor $1,225,681 305 Commerce Dr. Moorestown, NJ 08057-4234 Tel: (888) 384-5259 Email: info@opex.com 5. Digital Color Concepts Inc. Trade Vendor $1,154,160 256 Sheffield Street Mountainside, NJ 07092 Tel: (908) 264-0504 Email: info@dccnyc.com Email: don@dccnyc.com 6. Bofa Securities, Inc. Professional $1,150,000 Bank of America Tower Services 620 South Tyron Street, 20th Floor Charlotte, NC 28255 Attn: Debt Advisory Attn: Erica Coller Tel: (704) 208-3410 ax: (980) 388-0838 Email: info@bnamericas.com 7. Sonata Information Technology Trade Vendor $1,119,884 Limited Tower 2 Global Village RVCE Post, Kengeri Hobli, Mysore Road, Bengaluru 560059, India Tel: +91-80-6778-1999 Email: Vijay.Naveen@sonata-software.com Email: info@sonata-software.com 8. AT&T Trade Vendor $1,056,287 PO Box 5019 Carol Stream, IL 60197-5019 Tel: (800) 235-7524 Email: sd5243@att.com Email: bk4752@att.com 9. AFLAC Litigation $875,501 1932 Wynnton Road Settlement Columbus, GA 31999 Tel: (800) 992-3522 Fax: (877) 442-3522 Email: cscmail@aflac.com 10. Cahill Gordon & Reindel LLP Professional $756,982 Eighty Pine Street Services New York, NY 10005-1702 Tel: (212) 701-3000 Fax: (212) 269-5420 Email: jwhall@cahill.com 11. Cleary Gottlieb Steen & Professional $675,995 Hamilton LLP Services One Liberty Plaza New York, NY 10006 Tel: (212) 225-2000 Fax: (212) 225-3999 Email: malbano@cgsh.com 12. Sandy Alexander Inc. Trade Vendor $662,776 200 Entin Road Clifton, New Jersey 07014 Tel: (973) 470-8100 Fax: (973) 470-9269 Email: hello@sandyalexander.com 13. Scanner Holdings Corp Trade Vendor $624,577 dba: IBML 2750 Crestwood Blvd Birmingham, AL 35210 Tel: (205) 314-1819 Tel: (205) 956-4071 Fax: (205) 956-5309 Email: support@ibml.com 14. Pitney Bowes Trade Vendor $614,862 2225 American Dr. Neenah, WI 54956-1005 Attn: Ryan Berndt Tel: (203) 356-5000 Tel: (800) 243-7824 Fax: (800) 882-2499 15. Genuity Concepts Trade Vendor $489,542 507 N Church Street Greensboro, North Carolina 27401 Tel: (336) 379-1850 Email: info@genuityconcepts.com 16. United Parcel Service Trade Vendor $456,355 P.O. Box 7247-0244 Philadelphia, PA 19170-0001 Tel: (800) 877-1497 Email: enterpriseaccounts@ups.com 17. Staples, Inc. Trade Vendor $454,513 DBA Hitouch PO Box 208897 Dallas, TX 75320 Tel: (866) 448-6824 Email: Info@hitouchbusinessservices.com 18. Access Information Trade Vendor $428,190 Intermediate P.O. Box 101048 Atlanta, GA 30392-1048 Tel: (877) 345-3546 19. Image Business Machiness LLC Trade Vendor $412,534 P.O. Box 676673 Dallas, TX 75267-6673 Tel: (877) 426-6006 Email: ASKAR@US.IBM.COM 20. Standard & Poors Trade Vendor $407,140 The McGraw-Hill Cos Inc 2542 Collection Chicago, IL 60693 Tel: (800) 338-3987 Fax: (800) 953-8691 Email: corporate_secretary@mcgraw-hill.com 21. Bluecrest DMT Solutions Trade Vendor $406,516 Global Corp PO Box 74007412 Chicago, IL 60674-7412 Tel: (475) 204-3068 Tel: (844) 622-2583 Email: dmtpartorders@bluecrestinc.com Email: bluecrestclientcare@bluecrestinc.com 22. Norton Rose Fullbright US LLP Professional $403,785 799 9th Street NW Services Suite 1000 Washington, DC 20001 Tel: (202) 662-0200 Email: marissa.alcala@nortonrosefulbright.com Email: matthew.kirtland@nortonrosefulbright.com 23. Willkie Farr & Gallagher LLP Professional $388,386 787 Seventh Avenue Services New York, NY 10019 Tel: (212) 728-8000 Email: tcerabino@willkie.com 24. Global Tech Inc. Trade Vendor $364,697 DBA: EGlobalTech, 1515 Wilson Blvd Suite 800 Arlington, VA 22209 Tel: (703) 652-0991 Email: info@eglobaltech.com 25. First Insurance Funding Corp Insurance $359,672 450 Skokie Blvd Suite 1000, Northbrook, IL 60062 Tel: (800) 837-3707 Email: Csr@firstinsurancefunding.com 26. Tarter Krinsky & Drogin LLP Professional $350,154 1350 Broadway Services New York, New York 10018 Tel: (212) 216-8000 Email: atarter@tarterkrinsky.com 27. Sharp Electronics Corp Trade Vendor $346,635 100 Paragon Drive Montvale, NJ 07645 Tel: (201) 529-8200 Fax: (201) 529-8425 Email: tmorley@sharpsec.com 28. Liberty Life Ins of Boston Insurance $340,897 PO Box 2658 Group Bene Fits Carol Stream, IL 60132 Tel: (617) 357-9500 Email: Liberty.Support@LibertyMutual.com 29. Alight Holding Company, LLC Trade Vendor $302,394 DBA: Alight Solutions LLC 4 Overlook Point Lincolnshire, IL 60069 Tel: (224) 737-7000 Email: support@alight.com 30. Amsive, Inc. Trade Vendor $296,250 915 Broadway, Suite 501 New York, NY 10010 Tel: (212) 661-8969 Email: letstalk@amsive.com DURECT CORP: Ingalls & Snyder Holds 8.5% Equity Stake ----------------------------------------------------- Ingalls & Snyder, LLC disclosed in a Schedule 13G/A filed with the U.S. Securities and Exchange Commission that as of December 31, 2024, it beneficially owned 2,681,770 shares of DURECT Corporation's common stock, representing 8.5% of the outstanding shares. The shares reported under shared dispositive power include shares held in accounts managed under investment advisory contracts and assume the exercise of 600,000 DURECT warrants. Ingalls & Snyder may be reached through: Thomas O. Boucher Jr., Managing Director 1 Rockefeller Plaza New York, NY 10020 Tel: 212-269-7812 A full-text copy of Ingalls & Snyder's SEC Report is available at: https://tinyurl.com/k859s2xx About DURECT Corporation Headquartered in Cupertino, Calif., DURECT is a late-stage biopharmaceutical company pioneering the development of epigenetic therapies that target dysregulated DNA methylation to transform the treatment of serious and life-threatening conditions, including acute organ injury and cancer. Larsucosterol, DURECT's lead drug candidate, binds to and inhibits the activity of DNA methyltransferases (DNMTs), epigenetic enzymes that are elevated and associated with hypermethylation found in alcohol-associated hepatitis (AH) patients. Larsucosterol is in clinical development for the potential treatment of AH, for which the FDA has granted a Fast Track and a Breakthrough Therapy designation; metabolic dysfunction-associated steatohepatitis (MASH) is also being explored. In addition, POSIMIR (bupivacaine solution) for infiltration use, a non-opioid analgesic utilizing the innovative SABER platform technology, is FDA-approved and is exclusively licensed to Innocoll Pharmaceuticals for sale and distribution in the United States. San Francisco, Calif.-based Ernst & Young LLP, the Company's auditor since 1998, issued a "going concern" qualification in its report dated March 28, 2024, citing that the Company has an accumulated deficit as well as negative cash flows from operating activities and has stated that substantial doubt exists about the Company's ability to continue as a going concern. As of September 30, 2024, DURECT had $24.1 million in total assets, $22.8 million in total liabilities, and $1.2 million in total stockholders' deficit. EASTSIDE DISTILLING: Amends Bylaws in Serving Notices of Meetings ----------------------------------------------------------------- Eastside Distilling, Inc., doing business as Beeline Holdings, disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on February 20, 2025, the Board of Directors of the Company approved and adopted an amendment to the Company's Second Amended and Restated Bylaws. The amendment adds a new subsection to Section 2.5 of the Bylaws relating to notice of annual and special meetings of the shareholders, which new subsection provides that the Company may give notice of a special or annual meeting or any adjournment or postponement thereof by filing, pursuant to Section 14(a) of the Securities Exchange Act of 1934, a proxy statement or an amendment thereto (which amendment shall include additional solicitation material), as permitted by Section NRS 78.370(9) of Chapter 78 of the Nevada Revised Statutes, if the Company is a publicly traded corporation as defined in the NRS as of the record date for such meeting. The term publicly traded corporation is defined under the NRS to include a covered security under section 18(b)(1)(A) or (B) of the Securities Act of 1933. The amendment also adds a new provision to Section 2.6 of the Bylaws relating to adjournments of annual or special meetings of shareholders, which new provision clarifies that the chairman of any annual or special meeting of the shareholders shall have the authority to adjourn or postpone such meeting if a quorum is not present or as otherwise authorized or instructed by the Board. About Eastside Distilling Headquartered in Portland, Oregon, Eastside Distilling, Inc. (d/b/a Beeline Holdings) has been producing craft spirits in Portland, Oregon since 2008. The Company is distinguished by its highly decorated product lineup that includes Azunia Tequilas, Burnside Whiskeys, Hue-Hue Coffee Rum, and Portland Potato Vodkas. All Eastside spirits are crafted from natural ingredients for the highest quality and taste. Eastside's Craft Canning + Printing subsidiary is one of the Northwest's leading independent mobile canning, co-packing, and digital can printing businesses. The Woodlands, Texas-based M&K CPAS, PLLC, the Company's former auditor, issued a "going concern" qualification in its report dated April 1, 2024, citing that the Company suffered a net loss from operations and used cash in operations, which raises substantial doubt about its ability to continue as a going concern. Eastside Distilling incurred a net loss of $7.5 million during the year ended December 31, 2023. As of June 30, 2024, Eastside Distilling had $16,589,000 in total assets, $18,523,000 in total liabilities, and $1,934,000 in total stockholders' deficit. EASTSIDE DISTILLING: CEO Converts $700K Loan, Buys $542K in Units ----------------------------------------------------------------- Eastside Distilling, Inc., doing business as Beeline Holdings, disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that Nicholas Liuzza, Jr., the principal shareholder of the Company and Chief Executive Officer of the Company's wholly-owned subsidiary, Beeline Financial Holdings, Inc., increased his ownership of the Company's securities by converting a $700,000 bridge loan into $700,000 of units comprised of 1,372,549 shares of Series G Convertible Preferred Stock and five-year Warrants to purchase a total of 686,275 shares. In addition, Mr. Liuzza purchased $542,159 of units comprised of a total of 1,063,057 shares of Series G and 531,528 Warrants to purchase shares of Common Stock of the Company. Both purchases were pre-approved by the Company's Audit Committee. The purchase prices were on the same terms as paid by other unaffiliated investors. The offers and sales of the units were exempt from registration Section 4(a)(2) of the Securities Act of 1933 and Rule 506(b) promulgated thereunder. About Eastside Distilling Headquartered in Portland, Oregon, Eastside Distilling, Inc. (d/b/a Beeline Holdings) has been producing craft spirits in Portland, Oregon since 2008. The Company is distinguished by its highly decorated product lineup that includes Azunia Tequilas, Burnside Whiskeys, Hue-Hue Coffee Rum, and Portland Potato Vodkas. All Eastside spirits are crafted from natural ingredients for the highest quality and taste. Eastside's Craft Canning + Printing subsidiary is one of the Northwest's leading independent mobile canning, co-packing, and digital can printing businesses. The Woodlands, Texas-based M&K CPAS, PLLC, the Company's former auditor, issued a "going concern" qualification in its report dated April 1, 2024, citing that the Company suffered a net loss from operations and used cash in operations, which raises substantial doubt about its ability to continue as a going concern. Eastside Distilling incurred a net loss of $7.5 million during the year ended December 31, 2023. As of June 30, 2024, Eastside Distilling had $16,589,000 in total assets, $18,523,000 in total liabilities, and $1,934,000 in total stockholders' deficit. EDGEWELL PERSONAL: Moody's Alters Outlook on 'Ba3' CFR to Stable ---------------------------------------------------------------- Moody's Ratings affirmed Edgewell Personal Care Company's Ba3 Corporate Family Rating and Ba3-PD Probability of Default Rating. At the same time, Moody's affirmed the Ba3 ratings on the company's senior unsecured notes due 2028 and 2029. Edgewell's speculative grade liquidity rating was unchanged. The outlook was changed to stable from negative. The rating affirmation reflects Edgewell's improving operating performance and good free cash flow and liquidity. Organic growth in the company's Sun Care, Grooming and international businesses is helping mitigate volume pressure in US shave and feminine care. Moderating input costs and cost savings from productivity initiatives and restructuring is driving EBITDA margin improvement. Moody's anticipates leverage will decline to around 4.5x (outside of seasonal borrowings) by the fiscal year-ending September 2026 from 4.9x at the fiscal year-ended September 2024. Moody's forecast assumes the company will fully repay all outstanding debt on the revolver by the end of this fiscal year, leaving the facility undrawn beyond its temporary use for seasonal working capital requirements. Edgewell expects to reach the upper range of its publicly stated 2.0-3.0x net debt-EBITDA leverage target using company calculations by the fiscal year-ending September 2025 (3.8x for the seasonally high 12 months ended December 2024 and 3.1x for the 12 months ended September 2024). The outlook change to stable reflects Moody's expectations that Edgewell will reduce its leverage to acceptable levels for a Ba3 rating category over the next 12-18 months. Moody's expects steady organic revenue growth and cost savings to deliver anticipated improvement in the EBITDA margin and sustained, repeatable free cash flow of roughly $100 million after dividends (Moody's adjusted). Additionally, the outlook reflects Moody's expectations that the company will balance share repurchases and a modest dividend to sufficiently paydown the revolving credit facility to ensure ongoing financial flexibility and good liquidity. Nonetheless, the company is currently weakly positioned within the Ba3 category because leverage remains high and is declining at a slower pace than Moody's previously anticipated when Moody's changed the outlook to negative in February 2023. The challenging economic backdrop including high interest rates is leading consumers to prioritize spending and is putting pressure on volumes. Lower pricing, higher promotional activity, and the adverse impact from foreign exchange rates has also pressured earnings. Moody's believes that high leverage is a risk to the company's ability to navigate further declines in consumer demand and economic headwinds, including geopolitical and tariff risks, and can also impact investment in brands and operations needed to maintain its market position in highly competitive end markets. Edgewell competes against significantly larger and better capitalized consumer packaged goods peers which puts it at a disadvantage to aggressively pursue market share. Financial policy has been aggressive due to frequent though moderately sized debt funded acquisitions, implementation of a dividend in 2021, and share repurchases that have lifted debt and leverage above the company's target and have reduced the pace of deleveraging. RATINGS RATIONALE Edgewell Personal Care's Ba3 CFR reflects the company's modest scale in the face of material competitive pressure from significantly larger, more diversified, and better capitalized competitors. The competitive landscape along with Edgewell's concentration towards mature and highly promotional product categories across wet shave and feminine care creates challenging conditions for organic growth. Concentration in mature and competitive product categories is contributing to periodic debt funded acquisitions to lift organic growth potential. Leverage is high due to recent deterioration in the EBITDA margin because of elevated input costs and foreign exchange as well as share repurchases and the company's acquisition of Billie in 2021 for $310 million, which was partly funded on the revolver. Shareholder distributions are aggressive while the company is above its leverage target. The company began paying an annual dividend in 2021 and has consistently repurchased shares despite high leverage although has somewhat moderated the size of its buybacks since 2023. For these reasons the company is currently weakly positioned at Ba3. Moody's expects Edgewell will continue to buyback shares but allocate enough free cash flow to fund revolver paydown such that the revolver is repaid at year-end. Moody's also expects continued focus on reducing leverage towards its stated 2-3x net debt-to-EBITDA target (3.8x as of the 12 months ending September 2024). Positively, strong brand recognition across names like Schick, Playtex, and Banana Boat and solid market positions in multiple well-established, albeit somewhat specific, product categories helps the company maintain solid relationships with key retailers and promotes customer reach at the point of sale. Edgewell's personal care focused portfolio is resilient to weakening economic conditions and the company's global footprint helps mitigate the effects of regional downturns. Recent acquisitions like Cremo and Billie provide organic growth opportunities at least over the next 2-3 years as the company uses its large distribution network and customer relationships to scale these offerings. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade would require continued organic growth and improvement to the EBITDA margin such that debt-to-EBITDA leverage is sustained below 3.0x. An upgrade would also require consistently stronger and stable free cash flow and good liquidity. The ratings could be downgraded if EBITDA margins do not improve over the next 12-18 months and result in debt-to-EBITDA leverage remaining above 4.5x. Continued share repurchase in lieu of reducing revolver borrowings, a deterioration of liquidity, or if the company engages in acquisitions prior to reducing leverage could also lead to a downgrade. The rating could also be downgraded if free cash flow after dividends declines such that RCF/Net Debt is sustained below 10%. The principal methodology used in these ratings was Consumer Packaged Goods published in June 2022. Edgewell Personal Care Company, based in Shelton, CT manufactures, markets and distributes branded personal care products in the wet shave, skin and sun care, and feminine care categories. The company has a portfolio of over 25 brands including Schick, Wilkinson Sword, Playtex, Stayfree, Carefree, o.b., Banana Boat, Hawaiian Tropic, Billie, Jack Black, Cremo and Wet Ones and a global footprint in over 50 countries. Edgewell is publicly traded and generated LTM December 2024 revenue of around $2.24 billion. EDMOUNDSON STEEL: Hires Lawson Accounting Group as Accountant ------------------------------------------------------------- Edmoundson Steel Erection, Inc. seeks approval from the U.S. Bankruptcy Court for the Western District of Arkansas to employ Lawson Accounting Group, PLLC as accountant. The firm will provide accounting services to the Debtor, and serve as expert witness at the confirmation hearing if necessary. The firm will be paid at these rates: -- a flat fee of $1,425 for basic corporate tax return preparation; -- $75 per hour for support staff, and $175 per hour for Accountant for document review and report preparation; and -- $125 per hour for bookkeeping. Polly Lawson, a partner at Lawson Accounting Group, PLLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Polly Lawson Lawson Accounting Group, PLLC 1901 Wheeler Ave Fort Smith, AR 72901 Tel: (479) 648-3680 About Edmoundson Steel Erection, Inc. Edmoundson Steel Erection, Inc., is a construction company based out of Fort Smith, Ariz. Edmoundson Steel Erection sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ark. Case No. 24-71778) on Oct. 25, 2024, with $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. John Balley, company owner, signed the petition. Judge Bianca M. Rucker handles the case. The Debtor is represented by: Stanley V. Bond, Esq. Bond Law Office Tel: (479) 444-0255 Email: attybond@me.com EMD EXPRESS: Gets Interim OK to Use Cash Collateral --------------------------------------------------- EMD Express, LLC got the green light from the U.S. Bankruptcy Court for the Western District of Kentucky to use its secured creditors' cash collateral. The order signed by Judge Joan Lloyd authorized the company to use the cash collateral of Compass Funding Solutions, LLC and the U.S. Small Business Administration, on an interim basis, pending a final hearing. As protection, both creditors will continue to have security interest in EMD Express' cash collateral. Compass Funding Solutions has a $160,470.49 claim against EMD Express stemming from a factoring and security agreement and has a security interest in all assets of the company. Meanwhile, SBA has a $500,000 claim based on the loan it provided to the company. About EMD Express LLC EMD Express, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ken. Case No. 25-10148) on February 21, 2025, listing between $100,001 and $500,000 in assets and between $500,001 and $1 million in liabilities. The Debtor is represented by: Robert C. Chaudoin, Esq. Harlin Parker 519 E. 10th Street P.O. Box 390 Bowling Green, KY 42102-0390 Phone: 270-842-5611 Email: chaudoin@harlinparker.com ENERGIZER HOLDINGS: S&P Rates $760MM First-Lien Term Loan B 'BB' ---------------------------------------------------------------- S&P Global Ratings assigned its 'BB' issue-level rating to U.S.-based Energizer Holdings Inc.'s proposed $500 million revolver and $760 million first-lien term loan B maturing 2030 and 2032, respectively. The recovery rating is '1', reflecting S&P's expectation of very high (90%-100%; rounded estimate: 95%) recovery in the event of a payment default. S&P's 'B+' issuer credit rating and stable outlook are unchanged. The company will primarily use proceeds from the $760 million first-lien term loan B to fully repay its existing first-lien term loan, and for general corporate purposes. S&P will withdraw its rating on the existing facilities after the refinancing transaction closes. The transaction will extend Energizer's debt maturity profile without materially affecting interest expense. The term loan will be subject to quarterly amortization of principal of 1% per annum. S&P said, "The transaction is leverage-neutral and we expect pro forma S&P Global Ratings-adjusted leverage of about 6.4x. We expect Energizer will remain committed to its deleveraging policy. We forecast the company will generate discretionary cash flow (free operating cash flow less dividends) of about $130 million in fiscal 2025, which it will primarily use for debt reduction. "Furthermore, we project adjusted EBITDA will increase by around 9% in fiscal 2025 supported by savings from Project Momentum, wind-down of restructuring-related costs, organic revenue growth from distribution gains and product innovations, partially offset by foreign exchange headwinds, higher brand investments, and sustained promotional pricing. Consequently, we forecast S&P Global Ratings-adjusted leverage will improve to about 5.7x at the end of fiscal 2025. "The 'B' issue-level rating is unchanged on the group's approximately $2.4 billion of senior unsecured notes. The recovery rating on the notes is 5', reflecting our expectation of modest (10%-30%; rounded estimate: 20%) recovery in the event of a payment default." ISSUE RATINGS – RECOVERY ANALYSIS Key analytical factors: The proposed debt structure consists of: -- $500 million senior secured revolving credit facility due 2030 (undrawn at close); -- $760 million senior secured term loan B due 2032; -- $300 million senior unsecured notes due Dec. 31, 2027; -- $600 million senior unsecured notes due June 15, 2028 ($583.7 million outstanding); -- $800 million senior unsecured notes due March 31, 2029 ($791.3 million outstanding); -- EUR650 million senior unsecured notes due June 30, 2029. Energizer Holdings Inc. is the borrower of the revolver and term loan and issuer of the U.S. senior unsecured notes. The issuer of the euro notes is Energizer Gamma Acquisition B.V. S&P views the euro notes as pari passu with the U.S. unsecured notes because they are guaranteed by Energizer and its restricted domestic subsidiaries. In the event of an insolvency proceeding, the company and its subsidiaries would likely file for bankruptcy protection under the auspices of the U.S. federal bankruptcy court system because around half of its operations are in the U.S. S&P said, "We believe creditors would receive maximum recovery in a payment default scenario if the company reorganizes instead of liquidates primarily because of its well-recognized brand names, primarily Energizer. Therefore, in evaluating recovery prospects for debtholders, we assume the company continues as a going concern and arrive at our emergence enterprise value by applying a multiple to our assumed emergence EBITDA." Simulated default assumptions: -- S&P's simulated default contemplates accelerating volume declines due to weak market demand, heightened competition, client attrition, inefficient research and product development spending, or the inability to raise prices. These factors lead to significant EBITDA and cash flow deterioration, causing a payment default in 2029. Calculation of EBITDA at emergence: -- Debt service: $181 million (default year interest plus amortization) -- Minimum capital expenditures (capex): $58 million -- Preliminary emergence EBITDA: $239 million -- Operational adjustment: $84 million (35%) -- Emergence EBITDA: $323 million S&P estimates $1.9 billion gross emergence enterprise value, which incorporates a 6x multiple to emergence EBITDA; the multiple is in line with those used for U.S.-based, branded, nondurable products issuers. Simplified waterfall: -- Gross recovery value: $1.9 billion -- Net recovery value (after 5% administrative expenses): $1.8 billion -- Obligor/nonobligor valuation split: 47%/53% -- Estimated priority claims: $102 million -- Value available for first-lien claims: $1.4 billion -- Estimated first-lien claims: $1.2 billion --Recovery range: 90%-100% (rounded estimate: 95%) -- Value available for unsecured claims: $558 million -- Estimated senior unsecured claims: $2.4 billion --Recovery range: 10%-30% (rounded estimate: 20%) ENGLOBAL CORP: Secures $500K Loan --------------------------------- ENGlobal Corporation disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that it entered into a Loan and Security Agreement with an unaffiliated party, pursuant to which lender has agreed, subject to certain terms and conditions, to extend up to an aggregate principal amount of $500,000 to the Company. In connection with entering into the Credit Agreement: (i) the Company and its subsidiaries, ENGlobal U.S., Inc., a Texas corporation, ENGlobal Government Services, Inc., a Texas corporation, and ENGlobal Technologies, LLC, a Texas limited liability company, has granted a first priority security interest in favor of Lender on substantially all of the Company's assets to secure all of the indebtedness and other obligations owed to Lender under the Loan Agreement. Certain material terms of the Loan Agreement: * Loan Amounts: Multi-draw facility in an aggregate principal amount not to exceed $500,000.00 * Interest: The outstanding principal balance of the Term Loan will bear interest at a per annum rate equal to 12.0%, which will be due and payable at maturity. * Negative Covenants: The Credit Agreement is subject to negative covenants that, among other things and subject to certain exceptions, limit the Company's ability and the ability of the Guarantors to incur indebtedness, to merge, consolidate, transfer assets or undertake certain transactions outside of the ordinary course of business, to make guarantees; to make loans, advances and investments, to make dividends and distributions, to incur liens or encumbrances, to undertake affiliate transactions and to make certain organizational changes. * Maturity Date: March 5, 2025. * Collateral: The Company and Guarantors are granting Lender, for the benefit of Lender, a first priority security interest in all of the Company and Guarantors' now-owned and hereafter acquired property and assets of every kind. * Guaranty: Each of the Guarantors jointly and severally guarantee to Lender prompt payment of the obligations in full when due. About ENGlobal ENGlobal Corporation (NASDAQ: ENG) -- www.englobal.com -- is a provider of innovative, delivered project solutions primarily to the energy industry. The Company delivers these solutions to its clients by combining its vertically-integrated engineering and professional project execution services with its automation and systems integration expertise and fabrication capabilities. The Company has a long history of delivering project solutions and can provide complete project execution and has focused its business development teams on communicating these offerings to its clients which include (i) Engineering, (ii) Automation, and (iii) Government Services. Houston, Texas-based Moss Adams LLP, the Company's auditor since 2017, issued a "going concern" qualification in its report dated March 29, 2024, citing that the Company has suffered recurring losses from operations and has utilized significant cash in operations that raise substantial doubt about its ability to continue as a going concern. As of September 28, 2024, ENGlobal had $13.2 million in total assets, $17.7 million in total liabilities, and $4.4 million in total stockholders' deficit. EPIC COMPANIES: Beth Postemski Resigns; New Committee Member Named ------------------------------------------------------------------ The U.S. Trustee for Region 12 appointed Craig Geron, a resident of West Fargo, N.D., as new member of the official committee of unsecured creditors in the Chapter 11 cases of EPIC Companies Midwest, LLC and affiliates. Beth Postemski has resigned as a committee member. The committee is now composed of: 1. Larry Dietz 4857 Meadow Creek Dr S. Fargo, ND 58104 (701) 793-0349 Llarry3262@hotmail.com 2. Jim Johnson 109 Monterey Ave #5 Capitola, CA 95010 JJOHNSONLGCA@gmail.com (408) 888-8620 3. Zachary Frappier 5431 12th Street S Fargo, ND 58104 ztfrappi@gmail.com 701-388-6919 4. William E. Altringer 4613 Borden Harbor Dr Mandan, ND 58554 Wealtringer@gmail.com (701) 220-6088 5. 3130 40th Ave W. West Fargo, ND 588078 (701) 219-0008 Coralhd1@msn.com About EPIC Companies Midwest EPIC Companies Midwest, LLC is a real estate investing and development firm in Minot, N.D. EPIC and its affiliates filed voluntary Chapter 11 petitions (Bankr. D.N.D., Lead Case No. 24-30281) on July 8, 2024. Patrick Finn, chief restructuring officer, signed the petitions. At the time of the filing, EPIC reported $10 million to $50 million in both assets and liabilities. Judge Shon Hastings oversees the cases. Steven Kinsella, Esq., at Fredrikson & Byron, PA represents the Debtors as legal counsel. The U.S. Trustee for Region 12 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee is represented by the law firm of Stinson, LLP. FIBERCO GENERAL: Hires Totaro & Shanahan LLP as Legal Counsel ------------------------------------------------------------- Fiberco General Engineering Contractors, Inc. seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ Totaro & Shanahan, LLP as counsel. The firm's services include: a. counseling of Debtor through meetings and phone calls, discussions concerning the requirements of the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, the Local Bankruptcy Rules, and the United States Trustee Guidelines; b. documenting preparation or amendments concerning the petition and schedules, status reports, review and consultation concerning Monthly Operating Reports, and personal attendance at all hearings, included but not limited to the Status Conference, Initial Debtor Interview ("IDI"), the meeting of creditors pursuant to Bankruptcy Code section 341(a) or any continuance thereof, all status conferences; preparation of any first day motions and employment applications and all hearings on motions, the disclosure statement and plan; c. consulting with Debtor's representative concerning documents needed and reports to be prepared and consultation with real estate counsel re title and other issues; d. assisting Debtor in preparation of documents for compliance with the requirements of the Office of the United States Trustee ("OUST"); e. negotiating with secured and unsecured creditors regarding the amount and payment of their claims; f. discussing with Debtor's representative concerning the Disclosure Statement and plan of reorganization; g. preparing of the Disclosure Statement and Chapter 11 Plan of Reorganization and any amendments/changes to the same unless filed as a Sub-V case which does not require a disclosure statement; h. submitting of ballots to creditors, tally of ballots and submission to the Court; i. responding to any objections to disclosure statement and/or plan; j. negotiating with creditors as to values, etc and the plan of reorganization; and k. responding to any motions for relief from stay, motions to dismiss or any other motions or contested matters; The firm will be paid at these rates: Attorney $650 per hour Paralegal $150 per hour The firm will be paid a retainer in the amount of $9,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Michael R. Totaro, Esq., a partner at employ Totaro & Shanahan, 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: Michael R. Totaro, Esq. Totaro & Shanahan, LLP P.O. Box 789 Pacific Palisades, CA 90272 Telephone: (310) 804 2157 Email: Ocbatty@aol.com About Fiberco General Engineering Contractors Inc. 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. Fiberco General Engineering Contractors Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10912) on February 18, 2025. In its petition, the Debtor reports total assets of $2,451,262 and total liabilities of $2,989,654. Honorable Bankruptcy Judge Scott H. Yun handles the case. The Debtor is represented by Michael R. Totaro, Esq., at TOTARO & SHANAHAN, LLP. FIT FOR THE RED: Seeks to Hire Roetzel & Andress as Counsel ----------------------------------------------------------- Fit for the Red Carpet and its affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of Ohio to employ Roetzel & Andress as general bankruptcy counsel. The firm's services include: a. advising the Debtors with respect to their powers and duties as Debtors-in-Possession; b. advising the Debtors with respect to all bankruptcy matters; c. preparing on behalf of the Debtor all necessary motions, applications, answers, orders, reports, and papers in connection with the administration of its estate; d. representing the Debtors all hearings on matters relating to its affairs and interests as Debtors-in-Possession before this Court, any appellate courts, the United States Supreme Court, and protecting the interests of the Debtor. e. prosecuting and defending litigated matters that may arise during these Chapter 11 cases, including such matters as may be necessary for the protection of the Debtors' rights, or the preservation of estate assets; f. negotiating and seeking approval of a sale of some or all of the Debtors' assets should such be in the interests of the Debtor's estates; g. negotiating appropriate transactions and preparing any necessary documentation related thereto; h. representing the Debtors on matters relating to the assumption or rejection of executory and unexpired leases; i. advising the Debtors with respect to corporate, securities, real estate, litigation, labor, finance, environmental, regulatory, tax, healthcare and other legal matters which may arise during the pendency of these Chapter 11 Cases; j. performing all other legal services that are necessary for the efficient and economic administration of these Chapter 11 cases; The firm will be paid at these rates: Marc B. Merklin $535 per hour Julie K. Zurn $400 per hour Michele Banner $200 per hour Siobhan Kenna $150 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Marc B. Merklin, Esq., a partner at Roetzel & Andress, 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: Marc B. Merklin, Esq. Roetzel & Andress 222 S. Main Street, Suite 400 Akron, OH 44308 Tel: (330) 376-2700 Fax: (330) 376-4577 Email: mmerklin@ralaw.com jzurn@ralaw.com About Fit for the Red Carpet Fit for the Red Carpet LLC is a company that offers personal services. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 25-50238) on February 18, 2025. In the petition signed by Rhonda Stark, owner, the Debtor disclosed up to $500,000 in assets and up to $10 million in liabilities. Judge Alan M. Koschik oversees the case. Marc B. Merklin, Esq., at ROETZEL & ANDRESS, LPA, represents the Debtor as legal counsel. FRENCH SEAM: Gets Interim OK to Use Cash Collateral --------------------------------------------------- The French Seam, Inc. received interim approval from the U.S. Bankruptcy Court for the Southern District of Indiana, Indianapolis Division, to use cash collateral. The Debtor asserts that the U.S. Small Business Administration is the only secured creditor that may have a valid and enforceable lien on cash collateral. The Debtor is obligated to the SBA pursuant to an Economic Injury Disaster Loan which has an outstanding balance of approximately $57,750. The next hearing is set for March 21. About The French Seam Inc. The French Seam, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 25-00814-AKM-11) on February 24, 2025. In the petition signed by Linda Compton, the Debtor disclosed up to $50,000 in assets and up to $1 million in liabilities. Judge Andrea K. Mccord oversees the case. Jeffrey Hester, Esq., at Hester Baker Krebs LLC, represents the Debtor as legal counsel. FTX TRADING: CEO John Ray in Line to Get $41MM Bonus ---------------------------------------------------- Jonathan Randles and Steven Church of Bloomberg News report that John J. Ray III, who led FTX's restructuring and worked to recover billions for customers following its 2022 collapse, is set to receive $41 million in bonuses. Ray -- who also oversaw Enron Corp.'s liquidation -- and his consulting firm, Owl Hill Advisory LLC, are slated to collect a $3 million completion fee and a $38 million incentive fee under his court-approved compensation plan, according to FTX court filings submitted on Sunday, March 3, 2025. About FTX Trading Ltd. FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 million in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10 showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The official committee of unsecured creditors tapped Paul Hastings as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as Delaware and conflicts counsel; FTI Consulting, Inc. as financial advisor; and Jefferies, LLC as investment banker. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. GEM PREP - NAMPA: Moody's Upgrades Revenue Bonds Rating to Ba1 -------------------------------------------------------------- Moody's Ratings has upgraded GEM Prep: Nampa, ID's revenue bond rating to Ba1 from Ba2. The outlook is stable. The charter school has approximately $9.7 million in outstanding revenue debt. RATINGS RATIONALE The upgrade to Ba1 reflects the school's positive enrollment trends and healthy financial operations. The rating also reflects the school's modest operating scale. Gem Prep: Nampa will continue to benefit from capable management from the Gem Prep organization, which operates multiple standalone charter schools throughout the State of Idaho (Aaa stable). Although the school faces competition from other area education providers, including the local public school district and other charter school operators, its market position has solidified over the past few years and the school is nearing full enrollment. Leverage from debt is moderate and near-term charter renewal risk is low given the recent reauthorization of the school's charter through the fiscal 2029 school year. RATING OUTLOOK The stable outlook reflects the school's healthy liquidity, favorable enrollment trends, and capable home office management. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING -- Sustained increases to annual operating revenue and student enrollment -- Maintenance of healthy operating performance resulting in strong liquidity and annual debt service coverage -- Material reduction to the school's debt leverage FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING -- Inability to maintain stable enrollment and student demand -- Weakening of operating performance and declines to days cash or annual debt service coverage -- Material increases to the school's debt leverage LEGAL SECURITY The school's outstanding Series 2022A bonds constitute special, limited obligations of the issuer payable solely from payments received pursuant to a loan agreement and trust indenture between Gem Prep: Nampa and the Idaho Housing and Finance Association. Under the loan agreement, Gem Prep: Nampa's pledged revenues include all state and Charter School Facility Payments allocable to the school along with all revenues, rentals, fees, third-party payments, receipts, donations, contributions and other income derived from the operation of the school. The school has also executed a deed of trust pledging the campus as security for repayment. The school was approved to use the Idaho Public Charter School Facilities Program for its outstanding Series 2022A bonds. A key requirement of the program is a direct-pay arrangement for debt service, whereby all state per pupil payments to the school are sent directly to the bond trustee to set aside funds in accordance with the bond indenture. The bonds also benefit from a debt service reserve funded at the lesser of the standard three-prong test or at least twelve months of debt service. PROFILE Gem Prep: Nampa is a nonprofit charter school, located in the City of Nampa, about 20 miles west of downtown Boise (Aa1). The school operates a single site facility serving roughly 530 students in grades K-12. Gem Prep: Nampa is one of seven member schools managed by Gem Innovation Schools of Idaho, Inc. (GIS) and was chartered by the Canyon County School District 131 (Nampa; A1). The school's current contract with its authorizer expires on June 30, 2029. METHODOLOGY The principal methodology used in this rating was US Charter Schools published in April 2024. GLOBAL IID S&P Rates New Repriced $468.2MM 1st-Lien Term Loan 'B-' ------------------------------------------------------------------ S&P Global Ratings assigned its 'B-' issue-level rating and '3' recovery rating to Global IID Parent LLC's (Smart Start) proposed repriced $468.2 million first-lien term loan due 2028. The '3' recovery rating indicates its expectation of meaningful (50%-70%; rounded estimate: 60%) recovery for lenders in the event of a payment default. S&P's 'B-' issuer credit rating and stable outlook on Smart Start are unchanged. S&P said, "We believe the transaction will be modestly credit positive for the company since the transaction is leverage neutral and Smart Start will save almost $2 million in annual cash interest expense because of the repricing. We expect the company to perform well in 2025 due to margin expansion achieved in 2024, resulting in S&P Global Ratings-adjusted leverage declining toward the low-6x area this year. Despite our expectation, the company's leverage will be below our 6.5x upgrade trigger for the rating, we believe the company's financial sponsor ownership points to decision making that will prioritize shareholder returns in a manner that will raise leverage, such as the recent debt-funded dividend launched in December 2024." ISSUE RATINGS—RATINGS ANALYSIS Key analytical factors -- Smart Start's debt capitalization will consist of a $40 million revolving credit facility due in 2026 (undrawn), a new $468.2 million first-lien term loan due 2028, and a $80 million second-lien term loan due 2029. -- S&P believes Smart Start would reorganize rather than liquidate under a default scenario, given its integrated software platform, robust network of service centers, monitoring authorities, and geographic diversity. Therefore, in evaluating recovery prospects for debtholders, S&P values the company on a going-concern basis using a 5.5x multiple of our projected emergence EBITDA value. -- S&P's simulated default scenario contemplates a default stemming from a confluence of factors, including intense price competition and execution missteps that sharply reduce volumes, profitability, and business prospects. -- S&P's analysis assumes about $34 million will be outstanding under the revolving credit facility at the time of default, reflecting 85% utilization. Simulated default assumptions -- Simulated year of default: 2027 -- EBITDA at emergence: about $63 million -- Implied enterprise valuation (EV) multiple: 5.5x -- Gross EV: about $349 million Simplified waterfall -- Net EV (after administrative costs): $331 million -- Valuation spit (obligors/nonobligors): 80%/20% -- Total first-lien debt claims: About $510 million --Recovery range: 50%-70%; rounded estimate: 60% -- Total second-lien debt claims: About $84 million --Recovery range: 0%-10%; rounded estimate: 5% Note: All debt amounts include six months of prepetition interest. GLOBAL PARTNERS: S&P Alters Outlook to Positive, Affirms 'B+' ICR ----------------------------------------------------------------- S&P Global Ratings revised its outlook on Global Partners L.P. to positive from stable and affirmed its 'B+' issuer credit rating and its 'B+' issue-level rating on its senior notes due 2027, 2029, and 2032. S&P's '4' recovery rating on the notes is unchanged, indicating its expectation for average (30%-50%; rounded estimate: 40%) recovery. The positive outlook reflects S&P's expectation that Global Partners will reduce its S&P Global Ratings-adjusted leverage below 4x in 2025 and maintain it at that level over the long term. The positive outlook on Global Partners reflects its successful integration of the liquid terminals it acquired from Motiva and Gulf Oil in 2024, which have strengthened its asset base. S&P said, "We expect these assets will increase the diversity of the company's cash flow stream and support its continued deleveraging over the coming year. However, we note that Global Partners remains exposed to the competitive retail market environment and commodity price volatility. The terminal acquisition has further diversified Global Partners' asset base and strengthened its credit profile. The company's successful integration of its acquired liquid terminals has enabled it to strategically expand its midstream asset portfolio. Global Partners' shift away from retail gas stations, as well as the addition of take-or-pay contracts from the acquisition, have enhanced its credit profile by improving its cash flow stability and reducing its exposure to retail fuel demand fluctuations. In December 2023, the company acquired 25 refined product terminals from Motiva for $305 million in cash, which expanded its footprint in the Atlantic Coast, Southeast, and Texas. The transaction, supported by a 25-year take-or-pay contract, increased Global Partners' total shell capacity to 18.3 million barrels across 49 terminals. The company followed this transaction by acquiring four additional terminals from Gulf Oil Corp. in the first quarter of 2024, which further boosted its EBITDA. Global Partners funded both acquisitions with cash and borrowings from its revolving credit facility (RCF), which temporarily increased its leverage above 4x in 2024, though this temporary rise in leverage also reflected the impact of seasonal EBITDA volatility. However, S&P expects the company will reduce its leverage below 4x in 2025 as its earnings normalize. In November 2024, Global Partners acquired liquid energy terminal in East Providence, Rhode Island from the ExxonMobil Oil Corp. S&P said, "We expect Global Partners will expand its volumes and deleverage over the next two years. We anticipate the company will benefit from steady volume growth in 2025 and 2026, primarily due to the increased throughput from its newly acquired terminals. Our base-case forecast assumes Global Partners increases its wholesale segment volumes by more than 40% in 2025, reflecting the full-year contributions from its newly acquired liquid terminals. Seasonal volatility in the company's Gasoline Distribution and Station Operations (GDSO) segment remains a negative credit factor in our base case. However, we expect Global Partners will somewhat offset the impact of this seasonality with the higher-margin revenue from its terminal operations. As such, we forecast the company will generate S&P Global Ratings-adjusted EBITDA in the $500 million-$515 million range in 2025 and 2026, which incorporates approximately $100 million of lease-expense adjustments. We also expect Global Partner will generate about $150 million of discretionary cash flow, which it could use to pay down its RCF borrowings or fund additional acquisitions of smaller retail gas distributors." The company's working capital requirements remain material and may affect its leverage. Global Partners maintains significant working capital requirements, which it primarily funds using its $950 million working capital RCF. This facility, essential for inventory procurement, is governed by a borrowing base calculation, which limits the company's borrowing to a percentage of its liquid asset sales, with its inventories securing the outstanding revolver debt. Excluding its working capital-related debt, S&P estimates Global Partners debt to EBITDA is in the 3.0x-3.5x range, which reflects its financial flexibility. Global Partners must navigate a competitive market environment. The company competes with integrated oil companies, refineries, and independent fuel distributions across its business segments. Global Partners' GDSO segment, which accounted for 73% of its gross margin in 2024, faces structural challenges from improvements in fuel efficiency, the expanding use of electric vehicles, and competition from major convenience store chains. The company's wholesale and commercial segments, which account for up to 27% of its gross margin, are negatively impacted by shifts in commodity prices and the ongoing transition to alternative fuels. That said, Global Partners' long-standing relationships with its suppliers and customers add a layer of steadiness to its overall cash flow. S&P expects the company will continue to expand through acquisitions and partnerships with other players in the industry. For example, in June 2023, Global Partners expanded its network of convenience stores and gas stations through a joint venture with ExxonMobil, which enabled it to acquire 64 stores in Houston. S&P said, "The positive outlook reflects our expectation that, following the successful integration of the Motiva and Gulf terminals in 2024, Global Partners will continue to generate strong EBITDA and free cash flow from its operations. The company could use these cash flows to either reduce its leverage or expand its scale through opportunistic acquisitions. We now expect Global Partners' S&P Global Ratings-adjusted leverage will be just below 4.0x in 2025 before declining to 3.5x by 2026. "We could revise our outlook on Global Partners to stable if its debt to EBITDA remains at or above 4x on a sustained basis. This could occur due to a decline in the company's product margins, a reduction in its fuel volumes, or if it undertakes material debt-financed acquisitions. "We could raise our rating on Global Partners if it achieves S&P Global Ratings-adjusted leverage of below 4x, including its working capital borrowings, and sustains its leverage at this level. This could occur if the company increases its sales volumes and strengthens its EBITDA, reduces its debt using its free cash flow, or undertakes strategic deleveraging efforts." GOLDEN TRIANGLE: Hires Jose L. Pacheco Carrasquillo as Appraiser ---------------------------------------------------------------- Golden Triangle Realty, S.E. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Jose L. Pacheco Carrasquillo as appraiser. The firm will appraise the Debtor's project known as Vistas de San Juan Project. The firm will be paid a flat fee of $8,000, payable when approved by the Court, and 50 percent upon completion of the appraisal. The firm will be paid at $200 per hour for any court appearance. Jose L. Pacheco Carrasquillo, 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: Jose L. Pacheco Carrasquillo Suite 1001, Bldng. 18, Metro Office Park, Guaynabo, PR 00968 Telephone: (787) 460-7474 About Golden Triangle Realty, S.E. Golden Triangle Realty S.E. is engaged in activities related to real estate. Golden Triangle Realty, S.E. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.P.R. Case No. 24-04514) on Oct. 21, 2024. In the petition signed by David Santiago Martinez, president, the Debtor disclosed $19,811,659 in assets and $47,255,382 in liabilities. Judge Maria De Los Angeles Gonzalez oversees the case. Alexis Fuentes-Hernandez, Esq., represents the Debtor as counsel. GOODY'S FLEET: Gets Extension to Access Cash Collateral ------------------------------------------------------- Goody's Fleet Solutions, LLC received another extension from the U.S. Bankruptcy Court for the Middle District of Florida to use cash collateral. The fifth interim order signed by Judge Roberta Colton approved the use of cash collateral to pay the company's operating expenses set forth in its six-month budget, with a 10% variance. The budget projects total operational expenses of $1,360,200 from March to August. As protection, secured creditors will be granted replacement liens on their cash collateral, with the same validity and priority as their pre-bankruptcy liens. In addition, Goody's was ordered to keep the secured creditors' collateral insured in accordance with its obligations under the loan and security documents with secured creditors. The next hearing is scheduled for April 17. About Goody's Fleet Solutions Goody's Fleet Solutions, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05407) on September 11, 2024, with up to $50,000 in assets and up to $500,000 in liabilities. Michael Markham, Esq., serves as Subchapter V trustee. Judge Roberta A. Colton presides over the case. The Debtor is represented by: Buddy D. Ford, Esq. Buddy D. Ford, P.A. Tel: 813-877-4669 Email: buddy@tampaesq.com GOTO GROUP: Fitch Affirms 'CCC+' LongTerm IDR --------------------------------------------- Fitch Ratings has affirmed LMI Parent, L.P.'s and GoTo Group, Inc.'s Long-Term Issuer Default Ratings (IDRs) at 'CCC+'. Additionally, Fitch has affirmed GoTo's first-lien senior secured revolver, first-out term loan and notes at 'B+' with a Recovery Rating of 'RR1', and first-lien senior secured, second out term loan and notes at 'CCC'/'RR5'. The IDR reflects ongoing challenges, including declining revenue, weak liquidity, high EBITDA leverage, and execution risk in revenue stabilization and margin expansion efforts. However, the low-30% EBITDA margin, lower debt balance from the 2024 distressed debt exchange (DDE), and declining SOFR rates will enhance the FCF and keep EBITDA interest coverage around 1.5x, commensurate with 'CCC+' rating tolerances. The company's recurring revenue model and diversified customer base provide additional assurance against a downgrade. Key Rating Drivers Continued Revenue Decline: Fitch expects continued revenue decline throughout the forecast period, particularly in the core collaboration segment. The overall decline is primarily due to decreased post-COVID meeting demand and intense competition from SMB focused competitors, enterprise focused companies and large enterprise solution companies with significant installed bases like Microsoft and Cisco. Although the growth of GoTo's UCaaS platform, GoTo Connect, has partially offset the decline in total revenues, Fitch does not expect total revenue stabilization until fiscal 2027. Execution Risk: Fitch views the execution risk and uncertainty associated with GoTo's strategic efforts as constraints on the company's rating. GoTo is taking steps to manage the revenue decline in its core collaboration segment and increase revenues in other areas, such as IT Services Group (ITSG), by investing in innovation, product differentiation, and key personnel. Additionally, GoTo is working to enhance operational efficiency to stabilize and expand its EBITDA margin, which Fitch forecasts to gradually grow at the low- to mid-30% level. Weak but Improving Liquidity and FCF: GoTo's liquidity remains weak with negative FCF and reduced cash balance at YE 2024. Fitch anticipates FCF improvement over the forecast period due to lower debt from the 2024 DDE, reduced forward SOFRs, and stabilizing EBITDA from operational efficiency initiatives. Fitch also projects that (CFO-Capex)/Debt will remain negative to breakeven for the next two years. However, GoTo's access to its full $250 million revolver (except for $5 million outstanding letters of credit) provides additional liquidity cushion. High EBITDA Leverage: Fitch expects GoTo Group to maintain high EBITDA leverage between 7x and 8x through the forecast period. While Fitch anticipates some margin expansion over the next few years, total EBITDA is likely to remain lower than previous years due to declining revenue. This decline offsets the benefits of a reduced debt balance, keeping EBITDA leverage elevated and consistent with other software peers rated 'CCC+'. Improving EBITDA Interest Coverage: Fitch projects total cash interest payments to decrease over time, and EBITDA interest coverage to remain around 1.5x through the forecast period, supporting the current 'CCC+' rating. Strong Revenue Visibility with a Diversified Customer Base: Most of GoTo Group's revenues come from software subscriptions, with multi-year contracts that support revenue visibility. Consistent with the fragmented nature of the SMB segment, customers are in different sectors with no single customer contributing more than 0.5% of total revenue. The revenue visibility and diversified customer base contribute to a low demand volatility for the company. Derivation Summary GoTo's main business operation is in the UCaaS market. In the Fitch rated universe, direct peers include RingCentral, Inc. (BB/Positive) and Avaya LLC (CCC+). RingCentral has a better market position with higher total revenue, as well as significantly lower EBITDA leverage. Fitch expected RingCentral to exit 2024 with EBITDA leverage of 3.1x and anticipates that the company would continue deleveraging with the growth of EBITDA. Although GoTo's 2024 DDE reduced its total debt balance, revenue and EBITDA have declined, with no clear deleveraging path. RingCentral has a different target customer base on the enterprise side, while GoTo focuses on the SMB market. Avaya is rated at 'CCC+' and filed for bankruptcy in 2023 and restructured. Fitch expected Avaya to exit 2024 with similar revenue and EBITDA leverage as GoTo. Avaya also faces competition, which pressures its top line. Compared to GoTo, Avaya has a much lower debt balance after the restructuring, offset by weaker profitability. Key Assumptions - The rate of total revenue decline decelerates through the forecast period. - No mergers or acquisitions. - No incremental debt issued or prepayments to the existing debt facilities. - Operational efficiency initiatives continue, leading to EBITDA margins stabilizing and slightly growing at low- to mid-30% level. - SOFR at 5.3%, 4.2%, 4.0% and 4.0% for 2024-2027. Recovery Analysis Key Recovery Analysis Assumptions - The recovery analysis assumes that GoTo Group would be reorganized as a going-concern entity in bankruptcy rather than liquidated. - The $250 million revolver is assumed to be fully drawn. - A 10% administrative claim is assumed. Going Concern (GC) Approach The analysis assumes pressure in the form of sustained customer loss to competitors. In this scenario, Fitch assumes that revenues fall to around $1 billion, and EBITDA margins expand to 34% because of continued operational efficiency initiatives. The GC EBITDA of $340 million reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the enterprise valuation (EV) of the company. Fitch applied a multiple of 6.0x. The choice of this multiple considered the following factors: - Comparable Reorganizations: In Fitch's 2024 "Telecom, Media and Technology Bankruptcy Enterprise Values and Creditor Recoveries" case study, Fitch notes the median TMT multiples for reorganization EV/EBITDA is ~5.9x. Among all these companies, five were in the Software subsector: SunGard Availability Services Capital, Inc. (4.6x), Aspect Software, Inc. (5.5x), Allen Systems Group, Inc. (8.4x), Avaya, Inc. (8.1x in 2017, 7.5x in 2023) and Riverbed Technology Software (8.3x). - The company has solid revenue visibility with most of its revenue recurring, offset by the low switching costs for the core collaboration segment, shrinking market position due to intense competition, and its SMB market focus. The first lien first out (FLFO) term loan and notes are senior to the first lien second out (FLSO) term loan and notes. This results in a recovery rating for the FLFO of 'B+'/'RR1', and the FLSO at 'CCC'/'RR5'. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Revenue declines beyond single digits; - Accelerating negative FCF; - EBITDA interest coverage sustained below 1.0x with less than 50% revolver availability - A material reduction in debt terms that is considered a distressed debt exchange (DDE) under Fitch's Corporate Rating Criteria. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Demonstrated execution of margin enhancement and revenue stabilization while maintaining revolver availability in excess of 50%; - (CFO - Capex)/Debt above 0% on a sustained basis; - EBITDA interest coverage sustained above 1.5x. Liquidity and Debt Structure As of September 2024, GoTo Group had over $100 million cash on the balance sheet. Fitch expects the company to exit 2024 with a lower cash balance due to negative cash flow and anticipates that the cash balance will remain flat at a lower level through the forecast period. Despite the expected lower cash balance, the overall liquidity position improved from March 2024, primarily due to looser covenants on the $250 million revolver from the debt exchange. As of September 2024, the $250 million revolver was fully available, except for $5 million outstanding letters of credit. With the DDE completed in March 2024, the total debt balance was reduced by almost $400 million. The FLFO is senior to the FLSO debt, and all instruments mature in 2028. Issuer Profile GoTo Group, Inc. is a provider of Unified Communication as a Services ("UCaaS") and collaboration solutions, identity access management, and remote PC monitoring and support solutions, with a focus on the SMB market. The company serves over 2 million customers globally. LMI Parent, L.P. is the parent company of GoTo. LMI Parent, L.P. is the financial filer, and the parent of a sister company, LastPass, which focuses on identity and password management. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations LMI Parent, L.P. has an ESG Relevance Score of '4' for Management Strategy due to the company's ongoing revenue decline and negative FCF, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- GoTo Group, Inc. LT IDR CCC+ Affirmed CCC+ senior secured LT B+ Affirmed RR1 B+ senior secured LT CCC Affirmed RR5 CCC LMI Parent, L.P. LT IDR CCC+ Affirmed CCC+ GREY WOLF: Hires David W. Steen P.A. as Legal Counsel ----------------------------------------------------- Grey Wolf Armory, LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to employ David W. Steen, P.A. to handle its Chapter 11 case. The firm will be paid based upon its normal and usual hourly billing rates. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. As of the petition date, the firm was paid the sum of $7,000 of the agreed retainer of $10,000, which included the filing fee of $1,738. The source of the funds was from Jeffrey Webb, managing member. David W. Steen, Esq., a partner at employ David W. Steen, P.A., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: David W. Steen, Esq. David W. Steen, P.A. PO Box 270394 Tampa, FL 33688-0394 Tel: (813) 251-3000 Email: dwsteen@dsteenpa.com About Grey Wolf Armory, LLC Grey Wolf Armory, LLC, filed a Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case No. 8:24-bk-06948-RCT) on Nov. 23, 2024. The firm hires David W. Steen, P.A. as counsel. H-FOOD HOLDINGS: Gets Court Approval for Executive Bonus Plan ------------------------------------------------------------- Randi Love of Bloomberg Law reports that bankrupt snack maker Hearthside Food Solutions received court approval to award up to $7.4 million in incentive bonuses to eight executives if they meet certain performance targets. A February 28, 2025 order from the U.S. Bankruptcy Court for the Southern District of Texas states that the payments will be issued after the company's bankruptcy plan takes effect. Judge Alfredo R. Perez approved the plan, emphasizing that the bonuses are contingent on achieving specific goals and will not impact funds available to unsecured creditors. Hearthside filed for bankruptcy in November 2024 as part of an effort to reduce $2 billion in debt. About H-Food Holdings H-Food Holdings, LLC, formerly known as Matterhorn Merger Sub, LLC, was founded in 2009 in Grand Rapids, Mich. The company and its affiliated debtors are a contract manufacturer of food products, producing and supplying, among other things, nutrition bars, frozen packaged foods, meal kits, snacks, sauces, refrigerated trays, overwrap, custom packaging solutions, and more to customers. As the largest food co-manufacturer in North America, the Debtors manufacture some of the most valued and recognizable brands, and the Debtors' key customers include many of the leading consumer packaged goods customers in North America. The Debtors filed Chapter 11 petitions (Bankr. S.D. Texas Lead Case No. 24-90586) on Nov. 22, 2024, listing $1 billion to $10 billion in both assets and liabilities. Robert M. Caruso, chiefrestructuring officer, signed the petitions. Judge Alfredo R. Perez presides over the cases. The Debtors tapped Ropes & Gray, LLP as general bankruptcy counsel; Porter Hedges, LLP as co-bankruptcy counsel; Evercore Group, LLC as investment banker; and Alvarez & Marsal North America, LLC as financial advisor. HARVEY LANDHOLDINGS: Gets Final OK to Use Cash Collateral --------------------------------------------------------- Harvey Landholdings, LLC received final approval from the U.S. Bankruptcy Court for the Northern District of Georgia to use cash collateral. The final order authorized the company to use cash collateral to pay operating expenses including insurance and taxes in accordance with its budget. The company projects $8,580 in total monthly operating expenses. As protection, Synovus Bank and the U.S. Small Business Administration will receive monthly payments from the company pursuant to the budget. In addition, both secured creditors will be granted replacement liens on the company's assets in case of any diminution in value of their collateral. About Harvey Landholdings Harvey Landholdings LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-60343) on Sept. 30, 2024, with $1 million to $10 million in assets and $500,000 to $1 million in liabilities. The petition was signed by Donald K. Harvey as manager. Judge Jeffery W. Cavender oversees the case. The Debtor is represented by Leslie Pineyro, Esq., at Jones & Walden, LLC. Synovus Bank, as secured creditor, is represented by: Stephen G. Gunby, Esq. Page Scrantom Sprouse Tucker & Ford, PC P.O. Box 1199 1111 Bay Avenue, Third Floor Columbus, GA 31902 (706) 243-5630 sgunby@pagescrantom.com HELIX ENERGY: Extends Alliance Agreement to 2026 ------------------------------------------------ Helix Energy Solutions Group, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company, OneSubsea LLC, Cameron Lux V Sarl, as successor in interest to OneSubsea B.V., OneSubsea UK Limited, Schlumberger Technology Corporation, Schlumberger B.V. and Schlumberger Oilfield Holdings Ltd. entered into an Amendment and Assignment Agreement to the Strategic Alliance Agreement entered into by the parties on January 5, 2015. The Alliance Agreement provides the terms for the parties' strategic alliance to design, develop, manufacture, promote, market and sell on a global basis integrated equipment and services for subsea well intervention systems. The Alliance Agreement originally provided for a ten-year term and the Amendment extends the term of the Alliance Agreement for one year until January 5, 2026. A full-text copy of the Amendment and Assignment Agreement to Strategic Alliance Agreement is available at: https://tinyurl.com/3pdp3h6f About Helix Energy Headquartered in Houston, Texas, Helix Energy Solutions Group, Inc. is an American oil and gas services company. As of September 30, 2024, Helix Energy Solutions Group had $2.7 billion in total assets, $1.1 billion total liabilities, and $1.6 billion in total shareholders' equity. * * * Egan-Jones Ratings Company on December 16, 2024, maintained its 'CCC+' foreign currency and local currency senior unsecured ratings on debt issued by Helix Energy Solutions Group, Inc. HUMPER EQUIPMENT: U.S. Trustee Unable to Appoint Committee ---------------------------------------------------------- The U.S. Trustee for Region 13 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Humper Equipment, LLC. About Humper Equipment LLC Humper Equipment LLC, a company in Strafford, Mo., filed Chapter 11 petition (Bankr. W.D. Miss. Case No. 24-60818) on December 12, 2024, with up to $50,000 in assets and $10 million to $50 million in liabilities. James A. Keltner, sole member of Humper Equipment, signed the petition. Judge Brian T. Fenimore oversees the case. The Debtor is represented by: Sharon L. Stolte, Esq. Sandberg Phoenix & Von Gontard Tel: 816-627-5543 Email: sstolte@sandbergphoenix.com INFINITE GLOW: Seeks Chapter 11 Bankruptcy in California -------------------------------------------------------- On February 27, 2025, Infinite Glow LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern 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 Infinite Glow LLC Infinite Glow LLC has an equitable interest in the property situated at 2912 14th Ave, Oakland, CA 94606, which is valued at $4.7 million. Infinite Glow LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal.Case No. 25-50253) on February 27, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Stephen L. Johnson handles the case. The Debtor is represented by: Steven R. Fox, Esq. THE FOX LAW CORPORATION INC. 17835 Ventura Blvd #306 Encino, CA 91316 Tel: 818-774-3545 Email: SRFox@foxlaw.com J. HOWELL: Gets Interim OK to Use Cash Collateral ------------------------------------------------- J. Howell Tiller MD, LLC got the green light from the U.S. Bankruptcy Court for the Northern District of Florida to use its secured creditors' cash collateral. The order signed by Judge Karen Specie authorized the company to use cash collateral to pay its expenses on an interim basis pending a final hearing. As protection, secured creditors will have post-petition security interests in, and liens on, all of the company's personal property, including accounts receivable, to the same extent as their pre-bankruptcy security interests and liens. As additional protection, J. Howell was ordered to deliver to its counsel's trust account monthly payments of $200. 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. Daniel Etlinger of Underwood Murray, P.A. serves as Subchapter V trustee. Judge Karen K. Specie oversees the case. Byron W. Wright, Esq., at Bruner Wright, P.A., represents the Debtor as legal counsel. JUBILANT FLAME: Marino Papazoglou Resigns From Board of Directors ----------------------------------------------------------------- Jubilant Flame International Ltd. filed a Form 8-K with the Securities and Exchange Commission, disclosing that the Company's Board of Directors formally recognized Mr. Marino Papazoglou's resignation from his position as a director, which took effect on Feb. 25, 2025. About Jubilant Jubilant Flame International, Ltd initially provided web development and marketing services but later shifted focus to medical products and, in 2018, entered the U.S. cosmetics market with the Acropass series. In 2020, the company ceased cosmetics sales and began offering technical support for developing nutritional products, such as Sea-Buckthorn and Organic Sprouting Powder. It currently provides technical expertise to manufacturers in the U.S. market for these nutritional products. Diamond Bar, California-based KCCW Accountancy Corp., the Company's auditor since 2023, issued a "going concern" qualification in its report dated May 7, 2024. The report highlighted the Company's Company's recurring operational losses, as well as its working capital deficiency and stockholders' deficit, which raise substantial doubt about the Company's ability to continue as a going concern. During the years ended Feb. 29, 2024 and Feb. 28, 2023, the Company realized a net loss of $67,365 and $61,545, respectively. As of Nov. 30, 2024, the Company had $16,855 in total assets, $1.36 million in total liabilities, and a total stockholders' deficit of $1.34 million. Jubilant Flame stated in its Quarterly Report for the period ending Nov. 30, 2024, that "The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through borrowings from financial institutions or related parties. By doing so, the Company hopes to generate sufficient capital to execute its business plan in the nutrition product technology support sector on an ongoing basis. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern. There is no guarantee the Company will be successful in achieving these objectives." KING'S MOVING: Unsecureds to Get Share of Income for 60 Months -------------------------------------------------------------- King's Moving & Storage, Inc. ("KMSI") filed with the U.S. Bankruptcy Court for the District of Kansas an Amended Plan of Reorganization for Small Business under Subchapter V dated February 18, 2025. KMSI provides moving services to customers throughout Kansas and the United States. Those services include the packing, transporting, and unloading of customers' property. KMSI also provides storage services to customers at a monthly rate. Sometime in July 2023, someone hacked KMSI's computer information systems and installed ransomware ("Cyber-Attack"). Once the ransomware took hold, all of KMSI's digital data and email archives for the business were destroyed. The Cyber-Attack did more than destroy stored data. It terminated KMSI's ability to process moves performed its drivers and various contractors it used to help service the volume of work it received through direct customer contacts, the agency agreements, and other contracts it maintained. Financially, large carriers with outstanding balances owed KMSI have refused to pay valid invoices for work performed because payment for those invoices was not requested within 60 to 90 days for the service provided. KMSI's attempts to get those balances paid have been rebuffed by carriers requesting proof of service which KMSI cannot provide due to ransomware attack. After the delayed payments from the invoicing with current carriers, caused havoc with KMSI's cash flow and led to getting behind on payments to various vendors. Delinquent payments resulted in multiple lawsuits being filed against KMSI. Most of those lawsuits were filed in Sedgwick County (3 total) and another brought in Jackson County, Missouri. While KMSI attempted to navigate all of these outstanding cases, 2111 Industrial, LLC initiated eviction proceeding against KMSI for the Wichita location on August 20, 2024. With the trial in that eviction case fast approaching, KMSI file this bankruptcy case on August 30, 2024 to address that case and to help facilitate KMSI's continued recovery from the Cyber-Attack. KMSI fully acknowledges that in the years before it filed this Chapter 11 case it suffered losses and was not profitable. However, based the significant changes in its operations effected by the Bankruptcy Case, the significant decrease in unsecured-debt service this Amended Plan contemplates, the continued recovery from the Cyber-Attack, and other changes contemplated by this Amended Plan, KMSI believes these estimates are realistic and achievable based on its historical figures. Class 9 consists of Allowed Unsecured Claims. This Class is Impaired and is entitled to vote on the Amended Plan. KMSI disposable income to distribute to Allowed Unsecured Creditors is $94,514.46. Alternatively, KMSI has no liquidation value because the amount of the secured claim against its assets exceed their value. However, in an effort to obtain a consensual plan, to comply Section 1191 of the Bankruptcy Code, and to ensure it retains its personal property assets, KMSI proposes to distribute its disposable income. Therefore, KMSI will distribute to Allowed Unsecured Claims their pro rata share of the total of $94,514.46 over 60 months at 6.51% interest through monthly payments of $1,849.73. The monthly payments shall commence on the day that is 30 days after the Effective Date and on the same day of each month thereafter until the total of $94,514.46 is paid with interest as provided herein. KMSI asserts that paying the $94,514.46 complies with Section 1192(c) of the Bankruptcy Code because that amount is either equal to or exceeds KMSI's disposable income over 60-month period post confirmation and that KMSI would not otherwise be required to distribute any liquidation value to unsecured creditors as the secured claims against its assets exceeds the value of any potential recovery for Allowed Unsecured Claims in a Chapter 7 liquidation. A full-text copy of the Amended Plan dated February 18, 2025 is available at https://urlcurt.com/u?l=ToYstG from PacerMonitor.com at no charge. About King's Moving & Storage King's Moving & Storage, Inc. is primarily engaged in providing local or long-distance specialized freight trucking. It conducts business in Wichita, Kansas. King's Moving & Storage filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Kansas Case No. 24-10850) on August 30, 2024, listing up to $50,000 in assets and $1 million to $10 million in liabilities. Britt D. King, president of King's Moving & Storage, signed the petition. Judge Mitchell L Herren presides over the case. The Debtor is represented by: Nicholas R Grillot, Esq. Hinkle Law Firm, L.L.C. Tel: 316-267-2000 Email: ngrillot@hinklaw.com -- and -- Lora J. Smith, Esq. Hinkle Law Firm, L.L.C. Tel: 316-267-2000 Email: lsmith@hinklaw.com KINGSMAN REAL: Seeks to Hire Alvarado Law as Bankruptcy Counsel --------------------------------------------------------------- Kingsman Real Estate Corporation seeks approval from the U.S. Bankruptcy Court for the Central District of California to hire Alvarado Law as bankruptcy counsel. The firm will render these services: a. advise the Debtor regarding matters of bankruptcy law and concerning the requirements of the Bankruptcy Code, and Bankruptcy Rules relating to the administration of this case, and the operation of the Debtor's estate as a debtor in possession; b. represent the Debtor in proceedings and hearings in the court involving matters of bankruptcy law; c. assist in compliance with the requirements of the Office of the United States trustee; d. provide the Debtor legal advice and assistance with respect to the Debtor’s powers and duties in the continued operation of the Debtor’s business and management of property of the estate; e. assist the Debtor in the administration of the estate's assets and liabilities; f. prepare necessary applications, answers, motions, orders, reports and/or other legal documents on behalf of the Debtor; g. assist in the collection of all accounts receivable and other claims that the Debtor may have and resolve claims against the Debtor’s estate; h. provide advice, as counsel, concerning the claims of secured and unsecured creditors, prosecution and/or defense of all actions; i. prepare, negotiate, prosecute and attain confirmation of a plan of reorganization; and j. provide other legal services. The firm will be paid at these rates: Frank Alvarado, Esq. $400 per hour Oscar Contreras, Paralegal $120 per hour Paraprofessionals $75 per hour The firm received a retainer in the amount of $10,000. Alvarado Law does not hold any interest in, nor is he materially adverse to the Debtor and is a disinterested person as contemplated by 11 U.S.C. Sec. 327 and defined in Section 101(14) of the Bankruptcy Code, according to court filings. About Kingsman Real Estate Corporation Kingsman Real Estate Corporation, established in 2017, is a real estate firm specializing in residential and commercial property transactions, offering services to clients looking to buy, sell, or lease properties in the competitive Los Angeles market. Kingsman Real Estate Corporation filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. 25-11042) on February 11, 2025. At the time of filing, the Debtor estimated up to $50,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Ron Manela as CEO. Judge Frank J. Alvarado, Esq. at ALVARADO LAW represents the Debtor as counsel. KNIGHTS HOURGLASS: Unsecureds to Split $10K over 3 Years -------------------------------------------------------- Knights Hourglass, LLC, filed with the U.S. Bankruptcy Court for the Middle District of Florida a Subchapter V Plan of Reorganization dated February 18, 2025. The Debtor was originally organized in 2021 by Adam Barnes for the purpose of acquiring an interest in the established business known as "Double Decker Warehouse Services," which specializes in the installation of pallet racks and shelving in commercial warehouses. The Debtor conducts its operations from leased office space located at 1230 Hillcrest Street, Suite 101, Orlando, Florida 32803. In October 2022, Debtor acquired its interest in Double Decker Warehouse Services from Double Decker Warehouse Services, Inc. ("DDWS"), a Florida corporation and purported creditor of the Debtor owned by Thomas Otto. Shortly after Debtor's acquisition of DDW, Mr. Otto failed to comply with the terms of a non-compete agreement which significantly hindered Debtor's business and all but guaranteed that Debtor would be unable to service an SBA backed loan obtained to facilitate the acquisition of DDW from DDWS. As a result of Mr. Otto's actions, Debtor struggled to maintain profitable operations and soon found itself in receipt of default notices and demand letters from its creditors. Rather than litigate with its creditors in several different forums, Debtor elected to utilize the Chapter 11 process to restructure its balance sheet, dispute claims, and pursue causes of action for the benefit of its business, creditors and estate. Class 3 consists of all Allowed General Unsecured Claims against Knights Hourglass, LLC. As set forth in the Debtor's financial projections which will be produced within 21-day of the date scheduled for confirmation of the Debtor's Plan, the Debtor's operation will be sufficient to enable quarterly Distributions of the Debtor's Projected Disposable Income over a period of 3-years. In full satisfaction of the Allowed Class 3 General Unsecured Claims, Holders of Class 3 Claims shall receive a pro rata share of Distributions totaling the amount of Debtor's Projected Disposable Income in the amount of $10,000.00 paid in equal quarterly installments of $833.33 commencing on the Effective Date. In a liquidation scenario, the value received by holders of Allowed Class 3 Claims would be $0.00. In addition to the annual Distributions outlined herein, Class 3 Claimholders shall also receive a pro rata share of the net proceeds recovered from all Causes of Action (which currently include at least (1) preference action and (1) civil suit for the recovery of damages for interference with the Debtor's business) after payment of professional fees and costs associated with such collection efforts, and after Administrative Claims and Priority Claims are paid in full. The maximum Distribution to Class 3 Claimholders shall be equal to the total amount of all Allowed Class 3 General Unsecured Claims. Class 3 is Impaired. Class 4 consists of all equity interests in Knights Hourglass, LLC. Class 4 Interest Holders shall retain their respective Interests in Knights Hourglass, LLC in the same proportions such Interests were held as of the Petition Date (i.e., 100.00% Interest retained by Mr. Adam Barnes). Class 4 is Unimpaired. The Plan contemplates the Debtor will continue to manage and operate its business in the ordinary course, but with restructured debt obligations and reduced overhead. It is anticipated the Debtor's post-confirmation business will mainly involve continued operation of its shelving installation company, the income from which will be committed to make the Plan Payments to the extent necessary. Funds generated from the Debtor's operations through the Effective Date will be used for Plan Payments; however, the Debtor's cash on hand as of Confirmation will be available for payment of Administrative Expenses. A full-text copy of the Subchapter V Plan dated February 18, 2025 is available at https://urlcurt.com/u?l=01AbNq from PacerMonitor.com at no charge. About Knights Hourglass Knights Hourglass, LLC, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06728) on December 11, 2024, with up to $50,000 in assets and up to $1 million in liabilities. Judge Tiffany P. Geyer oversees the case. The Debtor is represented by: Daniel A Velasquez, Esq. Latham, Luna, Eden & Beaudine, LLP Tel: 407-481-5800 Email: dvelasquez@lathamluna.com KONTOOR BRANDS: S&P Alters Outlook to Negative, Affirms 'BB' ICR ---------------------------------------------------------------- S&P Global Ratings revised its outlook on U.S.-based Kontoor Brands Inc. to negative from stable and affirmed the 'BB' issuer credit rating. The negative outlook reflects the potential for a lower rating in the next 12 months if the company cannot delever as planned and adjusted leverage sustains above 3x. Kontoor has signed a definitive agreement to acquire Helly Hansen (HH) from Canadian Tire for approximately $900 million. S&P Global Ratings expects the company will finance the acquisition with $700 million of debt and $200 million cash, thus S&P estimates its S&P Global Ratings-adjusted debt to EBITDA will increase to the low-3x area pro forma for the acquisition from 1.6x as of Dec 28, 2024. The outlook revision reflects deterioration in Kontoor's credit metrics due to the announced acquisition, which it will predominately fund with debt. Specifically, the company expects to finance the acquisition with $700 million of debt and $200 million of cash. S&P said, "We estimate Kontoor's pro forma S&P Global Ratings-adjusted debt to EBITDA will rise slightly above our 3x downside trigger as of the close of the transaction. In addition, we do not expect the company will materially deleverage in 2025, mainly due to the restructuring costs related to Project Jeanius. We expect these restructuring costs will pressure Kontoor's EBITDA in 2025, though the cost savings from Project Jeanius will likely partially offset this pressure. After that, we expect the company will improve its S&P Global Ratings-adjusted leverage to the low-2x area by the end of 2026 on increasing EBITDA and debt repayment, absent any unexpected major integration missteps or other business disruptions." S&P said, "We also acknowledge the acquisition will improve the diversity of Kontoor's existing portfolio and strengthen its presence in the growing outdoor and workwear markets. HH is a global outdoor and workwear brand, with outdoor and activewear accounting for 75% of its business and workwear comprising the remaining 25%. The outdoor market is an attractive category that is expanding in the high-single digit percent area. We believe the acquisition of HH will increase Kontoor's penetration in the large and growing outdoor and workwear markets globally, which will accelerate the expansion of its revenue and EBITDA." Additionally, HH will complement Kontoor's existing portfolio by improving its category, channel, and consumer diversity. Following the transaction, the company's outdoor and workwear business will account for more than a third of its total revenue. Furthermore, HH has a global presence and generates 75% of its business from outside the U.S., primarily in Europe. Therefore, the acquisition will also expand Kontoor's international footprint. HH is underpenetrated in the U.S., which represents an opportunity for the company to leverage its expertise in its home market to capture whitespace opportunities. HH's business is similar to Wrangler and Lee, which are predominately wholesale and replenishment in nature. S&P believes a wholesale expansion in the U.S. is the largest growth opportunity for the brand following the transaction. Moreover, HH could benefit from Kontoor's scale, technology, and operating platform. S&P also sees potential synergies, including through freight and supply chain optimization and organizational efficiencies, though it does not incorporate these in its forecast. S&P said, "After the transaction closes, we expect Kontoor will prioritize debt reduction in its capital allocation. Although we do not forecast the company will materially deleverage in the first 12 months following the purchase, we believe it will expand its EBITDA and repay debt such that it will likely reduce its S&P Global Ratings-adjusted leverage to the low-2x area by the end of 2026. We also forecast Kontoor will generate more than $280 million of free operating cash flow (FOCF) in 2025. The company remains committed to a net leverage target of the 1x-2x range (based on its calculations), which roughly translates to S&P Global Ratings-adjusted leverage in the high-1x to high-2x range. As part of management's deleveraging goals, the company will pause its share repurchases over the medium term until it achieves its targeted leverage level. We assume Kontoor will use its excess cash flow after dividends for debt reduction following the transaction, which we expect will close in the second quarter of 2025, subject to customary closing conditions and regulatory approvals. "Kontoor's operating performance was in line with our expectations for 2024, though there is some uncertainty in 2025. The company finished 2024 with S&P Global Ratings-adjusted leverage of 1.6x, which compared with our prior expectation for 1.7x. Kontoor's revenue was flat in 2024, relative to 2023, because the expansion in its U.S. and global direct-to-consumer business was offset by a decline in its international wholesale revenue. By brand, Wrangler continued to outperform and gain market share in 2024, including a 3% year-over-year rise in revenue. Meanwhile, the Lee brand experienced a 6% year-over-year revenue decline due to a drop in its wholesale and retail, which it partially offset with an increase in digital. However, we see some uncertainties in 2025, including weak consumer spending, inconsistent point-of-sale (POS) trends, and tariff headwinds. Kontoor's retail partners remain conservative with their inventory management. In addition, POS trends in February softened, following a good start in January, because of weather-related disruptions and more subdued consumer spending amid the uncertain macroeconomic environment. Moreover, we believe Kontoor is moderately exposed to the effects of potential trade tariffs, given that it derives approximately a third of its U.S. production volume from Mexico, though we view its exposure to China as limited. We believe the company would mitigate the impact of tariffs on its performance by transferring its production within its global supply chain, increasing its pricing, or implementing other mitigating cost actions." The negative outlook reflects the potential for a lower rating in the next 12 months if the company cannot delever as planned and adjusted leverage sustains above 3x. S&P could lower its ratings on Kontoor if it sustains leverage of above 3x. This could occur if: -- The company experiences unexpected operating missteps in the integration of HH; -- The restructuring costs related to Project Jeanius are higher than expected; -- Intense competition in the denim category and rapidly changing fashion trends cause Kontoor to lose key customers to its competitors; or -- The company is unable to mitigate the headwinds from the imposition of tariffs, which could pressure its margins. S&P could revise its outlook on Kontoor to stable if it reduces its S&P Global Ratings-adjusted leverage to comfortably below 3x. This could occur if: -- The company successfully integrates HH as planned and starts to realize synergies; and -- It realizes cost savings from Project Jeanius. KOZUBA & SONS: Court Extends Cash Collateral Access to March 27 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division authorized Kozuba & Sons Distillery, Inc. to use cash collateral, on an interim basis, pending a further hearing set for March 27. The interim order authorized the company to use cash collateral to pay the amounts expressly authorized by the court, including any required monthly payments to the Subchapter V trustee; the expenses set forth in the budget, plus an amount not to exceed 10% for each line item; and additional amounts as may be expressly approved in writing by its lenders. Each creditor with a security interest in cash collateral will have a perfected post-petition lien against cash collateral to the same extent and with the same validity and priority as the pre-bankruptcy lien, without the need to file or execute any document as may otherwise be required under applicable non-bankruptcy law. Kozuba & Sons was ordered to keep its property insured in accordance with the obligations under applicable loan and security documents. The company's primary secured obligations consist of amounts owed to VFS, LLC in the approximate amount of $284,000, and Crown Equipment Corporation in the approximate amount of $12,650. While both VFS and Crown Equipment filed financing statements, it appears that only Crown asserts an interest in cash collateral. About Kozuba & Sons Distillery Kozuba & Sons Distillery, Inc., a company in Pinellas Park, Fla., filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01003) on February 28, 2024, with $1 million to $10 million in both assets and liabilities. Jakub Kozuba, vice president of Kozuba & Sons, signed the petition. Judge Roberta A. Colton presides over the case. The Debtor is represented by Scott A. Stichter, Esq., at Stichter, Riedel, Blain & Postler, P.A. LAKE SPOFFORD: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Lake Spofford Cabins, Inc. 1A Spofford Cabins Way Spofford NH 03462 Business Description: Lake Spofford Cabins, Inc., located in Spofford, NH, offers year-round rental cottages on Spofford Lake with amenities such as fully furnished interiors, Wi-Fi, and access to a private beach, docks, and watercraft. Chapter 11 Petition Date: March 3, 2025 Court: United States Bankruptcy Court District of New Hampshire Case No.: 25-10128 Debtor's Counsel: William J. Amann, Esq. AMANN BURNETT PLLC 757 Chestnut Street Manchester NH 03104 Tel: 603-696-5404 Email: wamann@amburlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $100,000 to $500,000 The petition was signed by Louis P. Pittocco as president. The Debtor failed to include a list of its 20 largest unsecured creditors in the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/S7F3RKQ/Lake_Spofford_Cabins_Inc__nhbke-25-10128__0001.0.pdf?mcid=tGE4TAMA LEFEVER MATTSON: Hires CBRE Inc. as Real Estate Broker ------------------------------------------------------ Lefever Mattson seeks approval from the U.S. Bankruptcy Court for the Northern District of California to employ CBRE, Inc. as real estate broker. The firm will market and sell these real properties of the Debtor: a. Cornerstone Sonoma, Barn at Harrow Cellars Heacock Park Apartments, LP located at 23570 Arnold Dr 72, 100, 150 Wagner Road, Sonoma CA; b. Seven Branches Venue and Inn located at Firetree II, 450 West Spain, Sonoma CA; c. Cottage Inn Sienna Pointe, LLC located at 302 304 310 1st Street East, Sonoma CA; d. An Inn to Remember Sienna Pointe, LLC located at 171 W. Spain Street, Sonoma CA; e. The Post (Fly Fishing Venue) Windscape Apartments, LLC located at 24120 Arnold Dr, Sonoma CA f. Generals Daughter Windscape Apartments, LLC located at 400 West Spain, Sonoma CA; g. Sonoma Chalet B&B Windscape Apartments, located at 5th St W, Sonoma CA h. 241 1st Street West / The Depot Sienna Pointe, LLC 1st Street West, Sonoma CA; and i. Generals Daughter - Barn and Lot located at Sienna Pointe, LLC 430 W. Spain Street, Sonoma CA. The firm will be paid at these rates: a. Two point 2.50 percent of the gross sales price. b. If there is a Cooperating Broker, 4 percent 4 of the gross sales price, which would be divided 50/50 between CBRE and the Cooperating Broker. Henry E. Bose, Jr., a partner at CBRE, 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: Henry E. Bose, Jr., CBRE, Inc. 415 Mission Street, 46th Floor San Francisco, CA 94105 Tel: (415) 772-0123 About Lefever Mattson LeFever Mattson, a California corporation, manages a large real estate portfolio. Timothy LeFever and Kenneth W. Mattson each owns 50% of the equity in the company. Based in Citrus Heights, Calif., LeFever Mattson manages a portfolio of more than 200 properties, comprised of commercial, residential, office, and mixed-use real estate, as well as vacant land, located throughout Northern California, primarily in Sonoma, Sacramento, and Solano Counties. It generates income from the properties through rents and use the proceeds to fund its operations. LeFever Mattson and its affiliates filed voluntary Chapter 11 petitions (Bankr. N.D. Calif. Lead Case No. 24-10545) on September 12, 2024. At the time of the filing, LeFever Mattson listed $100 million to $500 million in assets and $10 million to $50 million in liabilities. Judge Charles Novack oversees the cases. Thomas B. Rupp, Esq., at Keller Benvenutti Kim LLP represents the Debtors as counsel. Kurtzman Carson Consultants, LLC is the Debtors' claims and noticing agent. The U.S. Trustee for Region 17 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee is represented by Pachulski Stang Ziehl & Jones, LLP. LILYDALE PROGRESSIVE: Gets Extension to Access Cash Collateral -------------------------------------------------------------- Lilydale Progressive Missionary Baptist Church received another extension from the U.S. Bankruptcy Court for the Northern District of Illinois to use cash collateral. The sixth interim order authorized the church to use cash collateral to operate and maintain its property from Feb. 24 until April 18 or until the occurrence of an event of default. As protection, CadleRock III, LLC was granted a replacement lien on all post-petition cash collateral and property of the church to the same extent and with the same priority as its pre-bankruptcy lien. In addition, CadleRock will continue to receive a monthly payment of $10,000. A status hearing is set for April 16. About Lilydale Progressive Missionary Lilydale Progressive Missionary Baptist Church sought protection under Chapter 11 of the U.S. Bankruptcy Code (Banker. N.D. Ill. Case No. 24-12502) on August 26, 2024, with $500,001 to $1 million in assets and $100,001 to $500,000 in liabilities. Judge Janet S. Baer presides over the case. The Debtor tapped the Law Office William E. Jamison & Associates as bankruptcy counsel and Chitwood & Chitwood Financial Services as accountant. CadleRock III, LLC, as secured creditor, is represented by: Cynthia G. Feeley, Esq. Feeley & Associates, P.C. 161 North Clark Street, Suite 1600 Chicago, IL 60601 Tel: 312-541-1200 feeleypc@aol.com LONERO ENGINEERING: Gets Final OK to Use Cash Collateral -------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Michigan issued a final order authorizing Lonero Engineering Co., Inc. to use cash collateral. The company requires the use of cash collateral to fund its operations and administer its Chapter 11 case. The lender, Bridge Business Credit, LLC, will receive weekly payments of $7,500 as protection for the use of its cash collateral. As additional protection, the lender was granted replacement security interests in, and liens on the company's assets to the same extent and with the same validity and priority as its pre-bankruptcy liens. The lender will also be granted an allowed administrative claim against the company's estate with superpriority pursuant to Section 507(b) of the Bankruptcy Code. The occurrence of certain events, such as the filing of a plan of reorganization or liquidation that is not acceptable to the lender, will constitute a termination event and may result in the lender terminating the company's authority to use cash collateral. About Lonero Engineering Co. Lonero Engineering Co., Inc. is a company based in Troy, Mich., which operates as a specialized machine shop providing precision machining services for complex, close-tolerance applications. Lonero sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-40041) on January 3, 2025. In its petition, the Debtor reported up to $50,000 in assets and up to $500,000 in liabilities. Judge Lisa S. Gretchko handles the case. The Debtor is represented by: Michael E. Baum, Esq. John J. Stockdale, Jr., Esq. Schafer and Weiner, PLLC 40950 Woodward Avenue, Suite 100 Bloomfield Hills, MI 48304 Tel: (248) 540-3340 Email: jstockdale@schaferandweiner.com LSF11 TRINITY: Moody's Affirms 'B2' CFR, Outlook Stable ------------------------------------------------------- Moody's Ratings affirmed LSF11 Trinity Bidco, Inc.'s ("Titan") B2 corporate family rating, B2-PD probability of default rating and B2 ratings on the senior secured first lien bank credit facilities. The outlook is stable. The affirmation of the ratings follows Titan's announcement of a partially debt-funded $210 million distribution to its owners. Pro forma adjusted debt/EBITDA will be 6.1x as of December 31, 2024, and will decline to 5.7x by the end of 2025 primarily due to earnings improvement. RATINGS RATIONALE The B2 CFR is constrained by Titan's volatile revenue and aggressive financial policies. Revenue and earnings will fluctuate because of timing differences between the conclusion and commencement of large ship repair service projects. Moody's expects the company will maintain aggressive financial policies given its private equity ownership. The ratings also reflect the company's solid market position as a provider of ship maintenance, repair and operations, or MRO, services to the US Navy. More than 60% of the company's revenue comes from the US Navy. The company is well positioned on the west coast as US defense priorities shift to the Pacific region. The company will also benefit from the US Navy's plan to increase the size of its fleet to approximately 355 ships from about 300 ships by 2030. Navy ship repair projects take 12-18 months and are non-deferrable, providing good revenue visibility. There are also high barriers to entry because of how difficult it is to build new dry docks. The stable outlook reflects Moody's expectations that leverage will decline moderately over the next 12-18 months while the company maintains good liquidity. Good liquidity will be supported by cash on hand of around $100 million following the dividend. Moody's expects that the company will generate free cash flow with low maintenance capital expenditures of $30-$40 million annually. Moody's also expects the $125 million revolving credit facility will remain undrawn over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be upgraded if financial policies become more conservative, free cash flow-to-debt is sustained above 5% and debt/EBITDA is sustained below 4.5x. Ratings could be downgraded if liquidity weakens, debt/EBITDA is above 6.0x or if there is poor execution on fixed price contracts that results in cost overruns. The principal methodology used in these ratings was Aerospace and Defense published in December 2024. LSF11 Trinity Bidco, Inc. (dba Titan) provides ship repair and marine and non-marine fabrication services in support of the aerospace, defense, and infrastructure end markets, serving a range of government and commercial customers. Revenue totaled $1.0 billion in twelve-month period ending September 30, 2024. The company is majority owned by private equity firm Lone Star Funds. LUMEN TECHNOLOGIES: S&P Upgrades ICR to 'B-' on Contract Wins ------------------------------------------------------------- S&P Global Ratings raised U.S.-based telecommunications service provider Lumen Technologies Inc.'s issuer-credit rating, and all other ratings, one notch to 'B-' from 'CCC+' and removed the ratings from CreditWatch where S&P placed them with positive implications Nov. 15, 2024. The stable outlook reflects S&P's expectation that the PCF contracts will bolster Lumen's near-term liquidity to cover cash flow deficits from its core business, pay down debt, and reduce leverage longer- term. However, secular industry pressures and its exposure to legacy products and services will likely drive ongoing revenue declines over the next year such that leverage remains elevated at around 5.5x-6x. The upgrade reflects Lumen's improved liquidity profile following the PCF deals. Following its $5 billion of PCF wins with Microsoft (and other major hyperscalers) to provide connectivity to support AI data demand, Lumen announced a series of new PCF transactions with other hyperscalers valued at more than $3.5 billion and primarily consisting of dark fiber sales with much of cash payments being front-end loaded, most likely within the first four years, although S&P expects that at least $3 billion in aggregate will be received in 2025. These transactions enabled Lumen to improve its liquidity position and pay down debt. During 2024, the company generated about $1.1 billion of free operating cash flow (FOCF), a substantial improvement from negative FOCF of about $940 million in 2023. In 2025, Lumen's liquidity sources include about $1.9 billion of cash and equivalents and $737 million of availability under its $956 million of revolving credit facilities. S&P said, "We assume capital expenditures (capex) increases by about $1 billion to around $4.3 billion to $4.4 billion during the year. However, we expect the company will receive at least $3 billion in PCF payments. After special items of around $300 million, we assume Lumen will generate FOCF of $400 million to $450 million in 2025." Following its March 2024 transaction support agreement (TSA), which pushed out a bulk of its debt maturities until 2029, the company only has about $412 million of debt that matures in 2025. However, in 2026, S&P expects PCF payments to decline to around $1.5 billion while capex remains elevated at around $3.7 billion to $3.8 billion, resulting in negative FOCF of around $1.2 billion to $1.3 billion. That said, Lumen should have sufficient liquidity sources, consisting of revolver availability and around $2 billion of cash. Additionally, debt maturities in 2026 are minimal at around $96 million. According to Lumen management, there are another $3.5 billion of potential PCF transactions that are still being negotiated, bringing the total to around $12 billion, which would provide upside to the company's 2025 free cash flow. However, Lumen suggested the remaining sales funnel would have a greater mix of new routes to be built rather than leveraging its existing fiber network, which would result in more construction that could have less favorable economics. Lumen still faces very challenging business conditions and secular headwinds. In 2024, total North America enterprise revenue fell 5%, which includes a 7% decline in large enterprise revenue and an 8% decline in mid-market enterprise revenue, although some of the erosion was due to divestitures and the sale of certain content delivery network (CDN) contracts. The company classifies its sales funnel under three categories: "grow," "nurture," and "harvest" with the grow bucket representing its newer products such as Waves and IP. However, this segment only accounts for 45% of total North American enterprise revenue (42% of total business revenue), suggesting the company's exposure to legacy products and services is still substantial, which will contribute to ongoing secular headwinds. S&P said, "In our view, it will likely take several years for the company to grow revenue from newer technologies at scale to offset lost revenue from higher-margin legacy services. Our base-case forecast assumes that revenue from business services declines through at least 2028." At the same time, Lumen's EBITDA dropped 15% in 2024, and the mid-point of the company's guidance implies another sharp double-digit earnings decline in 2025, which includes about $250 million of run-rate cost savings exiting the year. S&P said, "However, this does not include about $300 million of one-time costs associated with its plan to integrate legacy networks IT systems as part of its $1 billion transformation plan (we include one-time expenses in our EBITDA calculation). Our base-case forecast assumes that EBITDA declines around 11% in 2025 and grows about 5%-6% in 2026. S&P said, "We believe Lumen's capital structure is sustainable because of the new PCF deals. We expect network transformation costs and secular industry pressures will result in lower EBITDA and weaker credit metrics in 2025. Our base-case forecast assumes S&P Global Ratings' gross adjusted leverage rises to over 5.8x in 2025 from 5.4x in 2024. However, as one-time expenses wind down and the company realizes cost savings from its $1 billion expense reduction program, we assume that leverage improves to 5.6x in 2026 and 5.2x-5.3x in 2027. While we expect FOCF to be negative in 2026 and 2027, much of this is due to the timing of the PCF payments and near-term elevated capex to support the network expansion. We believe the company has good prospects to generate sustained positive FOCF in 2028 and beyond assuming it successfully executes its turnaround strategy. Furthermore, since the announcements of the PCF deals, Lumen's spreads have improved significantly, and we believe it can afford to refinance its debt at market rates. Our base-case forecast also assumes that EBITDA interest coverage will be solid at above 2x." Mass markets sale could improve Lumen's leverage profile. S&P believes Lumen is exploring a potential sale of all or a portion of its mass markets business, which would make sense given the company's limited fiber-to-the-home (FTTH) deployment relative to the size of its footprint and its strategy to go all in on the wave of AI fiber demand. Furthermore, Chief Financial Officer Chris Stansbury stated at an industry conference in December 2024 that the fiber business is "a great asset, but it's an asset that is probably better suited in somebody's hands that has a wireless offering." Lumen's mass market segment only covers about 19% of its service area with fiber. The remainder consists of copper-based digital subscriber line (DSL) broadband service. However, the outcome of any asset sale is uncertain and could include all the mass markets business or just the fiber assets. In any case, S&P believes the FTTH business would be in high demand given the recent spate of mergers and acquisitions (M&A) and a sale of all or a portion of this business would enable Lumen to improve its liquidity, pay-down debt, and reduce leverage even more than our current base case. The stable outlook reflects S&P's expectation that the PCF contracts will bolster Lumen's near-term liquidity to cover cash flow deficits from its core business, pay down debt, and reduce leverage longer term. However, secular industry pressures and its exposure to legacy products and services will likely drive ongoing revenue declines over the next year such that leverage remains elevated at around 5.5x-6x. S&P could lower its rating on Lumen if: -- It experiences execution missteps from the deployment of new fiber routes for the hyperscalers or the integration of legacy networks and IT systems; -- Secular and competitive industry pressures are greater than we expect, such that revenue trends are not improving; -- Borrowing rates rise such that the company is unable to refinance at rates that generate positive cash flow; or -- S&P assesses its capital structure is unsustainable. S&P could raise the rating on Lumen if: -- It yields reasonable returns on its new contracts and executes on its turnaround strategy; -- Its growth from newer technologies outpaces declines in legacy products; -- It is able to organically improve leverage to below 5x on a sustained basis and it is on a path to generate positive FOCF approaching 5% of debt; or -- The company enters into an agreement to sell all or some of its mass markets business such that leverage declines to below 5x and S&P believes it will approach FOCF to debt of 5% following this sale. LUTHERAN HOME: Hires McDonald Hopkins LLC as Conflict Counsel ------------------------------------------------------------- Lutheran Home and Services For The Aged, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Mcdonald Hopkins LLC as local counsel and conflicts counsel. The firm's services include: a. advising the Debtors with respect to their powers and duties as debtors in possession in the continued management and operation of their businesses and properties; b. advising and consulting on the conduct of these Chapter 11 cases, 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 Debtors' estates, including prosecuting actions on the Debtors' behalf, defending any action commenced against the Debtors, and representing the Debtors in negotiations concerning litigation in which the Debtors are involved, including objections to claims filed against the Debtors' estates; e. preparing pleadings in connection with these Chapter 11 cases, including motions, applications, answers, orders, reports, and papers necessary or otherwise beneficial to the administration of the Debtors' estates; f. representing the Debtors in connection with obtaining authority to continue using cash collateral and post petition financing, as necessary; g. advising the Debtors in connection with any potential sale of assets; h. appearing before the Court and any appellate courts to represent the interests of the Debtors' estates; i. advising the Debtors regarding tax matters; j. taking any necessary action on behalf of the Debtors 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 Debtors in connection with the prosecution of these Chapter 11 cases, including: (i) analyzing the Debtors' leases and contracts and the assumption and assignment or rejection thereof; (ii) analyzing the validity of liens against the Debtors' assets; and (iii) advising the Debtors on corporate and litigation matters. The firm will be paid at these rates: Members $420 to $1,115 per hour Of Counsel $400 to $1,025 per hour Associates $300 to $635 per hour Paralegals $245 to $445 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. As of the Petition Date, the firm holds the amount of $17,796.50 as advance payment retainer. Pursuant to the Appendix B Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed Under United States Code by Attorneys in Larger Chapter 11 Cases, the following are my responses to the questions set forth in Section D of the Guidelines: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Answer: No. Question: Did any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Answer: 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 post petition, explain the difference and the reasons for the difference. Answer: McDonald Hopkins did not represent the client in the 12 months prepetition. Question: Has your client approved your prospective budget and staffing plan, and, if so, for what budget period? Answer: Given the exigent circumstances under which these cases were filed, McDonald Hopkins and the Debtors have not yet had the opportunity to develop an estimated budget and staffing plan for the first four months of these cases. David A. Agay, 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: David A. Agay McDonald Hopkins LLC 300 North LaSalle Street, Suite 1400 Chicago, IL 60654 Tel: (312) 280-0111 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. LUTHERAN HOME: Hires Squire Patton Boggs as Bankruptcy Counsel -------------------------------------------------------------- Lutheran Home and Services for the Aged, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Squire Patton Boggs (US) LLP as bankruptcy counsel. The firm will provide these services: a. advise the Debtors with respect to their powers and duties as debtors in possession in the continued management and operation of their businesses and property; b. attend meetings and negotiate with representatives of creditors and other parties in interest and advise and consult on the conduct of the cases, including all of the legal and administrative requirements of operating in chapter 11; c. assist the Debtors with the preparation of their Schedules of Assets and Liabilities and Statements of Financial Affairs; d. advise the Debtors in connection with any contemplated sales of assets or business combinations, including negotiating agreements, formulating and implementing appropriate bidding, auction and other procedures with respect to the closing of any such transactions, conducting an auction and obtaining necessary court approvals in connection with such transactions, and otherwise counseling the Debtors in connection with such transactions; e. advise the Debtors in connection with any necessary cash collateral and post petition financing arrangements and negotiate and draft documents relating thereto; f. advise the Debtors on matters relating to the evaluation of the assumption, rejection or assignment of unexpired leases and executory contracts; g. advise the Debtors with respect to legal issues arising in or relating to the Debtors' ordinary course of business, including attending senior management meetings, and meetings of the board of directors; h. take all necessary action to protect and preserve the Debtors' estates, including the prosecution of actions on their behalf, the defense of actions commenced against them, negotiations concerning all litigation in which the Debtors are involved and evaluating and objecting (when appropriate) to claims filed against the Debtors' estates; i. prepare, on the Debtors' behalf, all motions, applications, answers, orders, reports and papers necessary to the administration of the estates; j. negotiate and prepare, on the Debtors' behalf, a plan or plans of reorganization, disclosure statement and all related agreements and/or documents and taking any necessary action on behalf of the Debtors to obtain confirmation of such plan or plans; k. attend meetings with third parties and participate in negotiations with respect to the above matters; l. appear before this Court, any appellate courts and protect the interests of the Debtors' estates before such courts; m. assist and represent the interests of the Debtors with respect to all matters involving the Office of the United States Trustee; and n. perform all other necessary legal services and provide all other necessary legal advice to the Debtors in connection with the cases and/or performing their duties as debtors and debtors in possession, including but not limited to real estate, financial services, regulatory, environmental, labor, pension/employee benefits, tax, corporate and intellectual property matters. The firm will be paid at these rates: Stephen D. Lerner, Partner $2,200 per hour John E. Thomas, Partner $1,485 per hour Jeffrey N. Rothleder Partner $1,450 per hour Maura P. McIntyre Senior Associate $1,030 per hour Michelle N. Saney Associate $840 per hour Patrick C. Maney Associate $545 per hour Sarah Conley, Senior Paralegal $535 per hour As of the petition date, the firm hold a retainer balance of $107,711.96. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Pursuant to the Appendix B Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed Under United States Code by Attorneys in Larger Chapter 11 Cases, the following are my responses to the questions set forth in Section D of the Guidelines: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Answer: Yes. Because the Debtors are not-for-profit companies, Squire agreed to a 10% discount on its fees during any chapter 11 cases. Question: Did any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Answer: 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 the reasons for the difference. Answer: Squire was retained on May 6, 2024 under the firm's 2024 billing rates. As is this firm's practice, and as disclosed in the Engagement Letter provided to the Debtors, billing rates are subject to an annual increase. Prior to the Petition Date, on January 1, 2025, the Debtors began to be billed at, and paid, the 2025 rates disclosed in this Application. The specific hourly rates and terms of compensation are detailed above. Prior to the filing of these chapter 11 cases, per the Engagement Letter Squire applied a 12% discount. As of the filing of these chapter 11 cases, per the Engagement Letter Squire is applying a 10% discount. Question: Has your client approved your prospective budget and staffing plan, and, if so, for what budget period? Answer: Given the exigent circumstances under which these cases were filed, Squire and the Debtors have not yet had the opportunity to develop an estimated budget and staffing plan for the first four months of these cases. We will work promptly to complete the budget and staffing plan as soon as possible. Stephen D. Lerner, Esq., a partner at Squire Patton Boggs (US) 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: Stephen D. Lerner, Esq. Squire Patton Boggs (US) LLP 201 E. Fourth St., Suite 1900 Cincinnati, OH 45202 Telephone: (513) 361-1200 Facsimile: (513) 361-1201 Email: stephen.lerner@squirepb.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. LUTHERAN HOME: Hires Stretto Inc. as Administrative Advisor ----------------------------------------------------------- Lutheran Home And Services For The Aged, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Stretto, Inc. as administrative advisor. The firm will provide these services: a. assist with, among other things, solicitation, balloting, and tabulation of votes; prepare any related reports, as required in support of confirmation of a chapter 11 plan; b. prepare an official ballot certification and, if necessary, testify in support of the ballot tabulation results; c. assist with the preparation of the Debtors' schedules of assets and liabilities and statements of financial affairs and gather data in conjunction therewith; d. assist with the preparation of the Debtors' monthly operating reports and gather data in conjunction therewith; e. provide a confidential data room; f. manage and coordinate any distributions pursuant to a chapter 11 plan if designated as distribution agent under such plan; and g. provide claims analysis and reconciliation, case research, depository management, treasury services, confidential online workspaces or data rooms (publication to which shall not violate the confidentiality provisions of the Engagement Agreement), and any related services otherwise required by applicable law, governmental regulations, or court rules or orders in connection with these Chapter 11 Cases. Prior to the Petition Date, the Debtors paid Stretto with an advance retainer in the amount of $10,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Sheryl Betance, a partner at Stretto, 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: 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. MADRONE-FLORIDA TECH: S&P Assigns 'BB' Rating on Revenue Bonds -------------------------------------------------------------- S&P Global Ratings assigned its 'BB' long-term rating to Capital Trust Authority, Fla.'s approximately $94 million tax-exempt series 2025A and $1.5 million taxable series 2025B student housing revenue bonds issued for Madrone-Florida Tech Student Housing I LLC, Fla., the sole member of which is Madrone Community Development Foundation. The outlook is stable. Madrone-Florida Tech Student Housing I LLC is a not-for-profit corporation organized for the sole purpose of constructing and operating a housing facility on the campus of Florida Tech. "The rating reflects our view of the project's significance to Florida Tech and marketing support from the university," said S&P Global Ratings credit analyst Beth Bishop. S&P said, "The stable outlook reflects our expectation that, during the outlook period, construction will progress on time and within budget. Over the longer term, the stable outlook incorporates our view that the project will perform as forecast, meeting its projected occupancy and coverage requirements. "We could consider a negative rating action if cost overruns or construction delays inhibit the project's ability to open on time and within budget. Beyond the outlook period, we could consider a negative rating action if occupancy is materially weaker than projected, pressuring the project's ability to meet debt service coverage (DSC) or fixed charge coverage covenants. "We do not expect to raise the rating or revise the outlook to positive during the outlook period, as the project will be under construction. Beyond the outlook period, an established trend of strong occupancy and DSC well above 1.2x could lead to a positive rating action." MATTRESS FIRM: S&P Withdraws 'B+' Issuer Credit Rating ------------------------------------------------------ S&P Global Ratings withdrew all of its ratings on Mattress Firm Inc., including the 'B+' issuer credit rating and 'B+' issue-level rating and '3' recovery rating on its senior secured debt that was repaid following its acquisition by Tempur Sealy International Inc., at the issuer's request. At the time of the withdrawal, its outlook on Mattress Firm was stable. MAWSON INFRASTRUCTURE: Registers 7.5M Shares Under 2024 Equity Plan ------------------------------------------------------------------- Mawson Infrastructure Group Inc. filed a Registration Statement on Form S-8 with the U.S. Securities and Exchange Commission to register an additional 7,500,000 shares of the Company's common stock, par value $0.001 per share, issuable under the Company's 2024 Omnibus Equity Incentive Plan. The registration of 5,000,000 additional shares under the Plan is pursuant to the provision in the Plan which provides for annual automatic increases in the number of shares of Common Stock reserved for issuance under the Plan. In addition, shares of Common Stock delivered to the Company by a participant to: (i) satisfy the applicable exercise or purchase price of an award, and/or (ii) satisfy any applicable tax withholding obligation, in each case, shall be added to the number of shares of Common Stock available for the grant of awards under the Plan. Therefore, an additional 2,500,000 shares of Common Stock are being registered for those purposes. The Company previously filed a Registration Statement on Form S-8 on June 21, 2024 (File No. 333-280370) relating to the Plan. About Mawson Infrastructure Group Mawson Infrastructure Group specializes in data centers for Bitcoin miners and AI firms. Mawson Infrastructure Group's creditors filed a Chapter 11 involuntary petition against the company (Bankr. D. Del. Case No. 24-12726) on December 4, 2024. The petitioning creditors include W Capital Advisors Pty Ltd, Marshall Investments MIG Pty Ltd, and Rayra Pty Ltd. The petitioners' counsel is Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell. Judge Mary F. Walrath handles the case. MID-ATLANTIC RHEUMATOLOGY: Hires Nan Gallagher as Special Counsel ----------------------------------------------------------------- Mid-Atlantic Rheumatology, LLC seeks approval from the U.S. Bankruptcy Court for the District of Maryland to employ Nan Gallagher Law Group as special corporate counsel. The firm will represent and provide legal services to the Debtor in general medical practice matters. The firm will be paid a monthly retainer of $2,000. Nan Gallagher, Esq., a partner at Nan Gallagher 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: Nan Gallagher, Esq. Nan Gallagher Law Group 52 Elm Street, Suite 1, Morristown New Jersey, 07960 Tel: (973) 998-8494 About Mid-Atlantic Rheumatology Mid-Atlantic Rheumatology, LLC is a medical group practice located in Millersville, Md., which specializes in internal medicine and rheumatology. Mid-Atlantic Rheumatology filed Chapter 11 petition (Bankr. D. Md. Case No. 25-10845) on January 31, 2025, with up to $1 million in assets and up to $10 million in liabilities. Erinn Maury, sole member, signed the petition. Judge David E. Rice oversees the case. Daniel Staeven, Esq., at Frost Law, represents the Debtor as bankruptcy counsel. MIRACLE RESTAURANT: Updates Unsecured Claims Pay Details -------------------------------------------------------- Miracle Restaurant Group, LLC submitted a Second Amended Plan of Reorganization under Subchapter V dated February 18, 2025. This case was commenced under Subchapter V of Chapter 11 of the Bankruptcy Code. This Subchapter enables small business debtors to more effectively reorganize in Chapter 11. Under this Plan, Store #8879 in Des Plaines, Illinois (the "Des Plaines Store"), Store #1921 in Laurel, Mississippi (the "Laurel Store"), and Store #8822, located in Slidell, Louisiana (the "Slidell Store" and together with the Des Plaines Store and the Laurel Store, the "Closing Stores") will be closed. The equipment that was in the Des Plaines Store was moved to Store #762, located in Niles, Illinois (the "Niles Store") because the equipment in the Niles Store was older and needed to be upgraded. Pawnee has a lien on the Coca-Cola Machine in the Des Plaines Store and will retain its lien on that equipment. Class 8 claims will be paid from the Debtor's projected disposable income as indicated in the pro forma. The Plan provides for payments to Class 8 creditors in the amount of $24,008 in year 1, $13,478 in year 2, and $46,031 in year 3. Store #9057 in Pearl River, Mississippi (the "Pearl River Store") will be assumed and assigned to the landlord at that location, Sunny Time, LLC. This assignment is contingent upon approval from Arby's for the assignment of the franchise license agreement, and if approved, will require execution of a new franchise license agreement in accordance with the provisions of section 16:2 of the current franchise license agreement. This Plan provides for the treatment of Claims and Interests as follows: * Seven classes of Secured Claims (First Franchise, SBA, Woodvine, and the Equipment Lenders). For the Closing Stores, any equipment securing any of the Equipment Lenders will be surrendered to the applicable Equipment Lender or the SBA and the claim of that Equipment Lender or SBA will be reduced by the fair market value of the collateral abandoned. For the stores kept open pursuant to this Plan, the SBA will be paid up to the value of its collateral and any remaining balance due will be treated as a general unsecured claim. The Equipment Lenders whose agreements relate to stores that are kept open will be paid pursuant to the terms of their respective Agreements; and * One class of Unsecured Claims that will be paid their pro rata share of the general unsecured creditor funds. Class 8 consists of General Unsecured Claims. The Debtor estimates its general unsecured claims to total $923,435. The General Unsecured Creditors will receive pro rata payments from the Debtor's projected disposable income over 3 years. The Debtor will make quarterly payments to Class 8 creditors within 45 days following the end of each financial quarter, to commence following the end of Q2 2025 (June 30, 2025). Class 8 is impaired and entitled to vote. The Debtor shall fund the plan from the ERTC funds and projected disposable income. The Debtor shall serve as the disbursing agent under this Plan, whether the Plan is confirmed under Section 1191(a) (consensual confirmation) or Section 1191(b) (non-consensual confirmation) of the Bankruptcy Code. A full-text copy of the Second Amended Plan dated February 18, 2025 is available at https://urlcurt.com/u?l=4H1vhQ from PacerMonitor.com at no charge. Counsel for the Debtor: Douglas S. Draper, Esq. Leslie A. Collins, Esq. Greta M. Brouphy, Esq. Michael E. Landis, Esq. Heller, Draper, Patrick, Horn & Manthey, LLC 650 Poydras Street, Suite 2500 New Orleans, LA 70130 Phone: (504) 299-3300 Email: ddraper@hellerdraper.com lcollins@hellerdraper.com gbrouphy@hellerdraper.com mlandis@hellerdraper.com About Miracle Restaurant Group Miracle Restaurant Group, LLC owns and operates a fast food restaurant in Covington, La. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 24-11158) on June 20, 2024, with $1 million to $10 million in both assets and liabilities. Dwayne Murray, Esq., at Murray & Murray, LLC, serves as Subchapter V trustee. Judge Meredith S. Grabill presides over the case. The Debtor tapped Douglas S. Draper, Esq., at Heller, Draper & Horn, LLC as legal counsel and Peak Franchise Capital, LLC as financial advisor. MS FREIGHT: Baker Donelson Represents Multiple Creditors -------------------------------------------------------- The law firm of Baker, Donelson, Bearman, Caldwell & Berkowitz, P.C. filed a verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure to disclose that in the Chapter 11 case of MS Freight Co., the firm represents multiple creditors. Baker Donelson represents the following creditors and parties-in interest: Navistar Financial Corporation; Wells Fargo Commercial Distribution Finance, LLC ("WFCDF"); Wells Fargo Vendor Financial Services, LLC ("WFVFS"); Wells Fargo Bank, N.A. ("WFBNA") and Mack Financial Services, a division of VFS US LLC. Baker Donelson's address is 100 Vision Drive – Suite 400, Jackson, MS 39211. Baker Donelson holds no disclosable economic interest in relation to the Debtor. Navistar Financial's address is 2701 Navistar Drive, Lisle, IL 60532. The nature and amount of any disclosable economic interest Navistar Financial may have in relation to the Debtor will be set forth in one or more Proofs of Claim filed on behalf of Navistar Financial. WFCDF's address is 10 South Wacker Drive, Chicago, IL 60606. The nature and amount of any disclosable economic interest WFCDF may have in relation to the Debtor will be set forth in one or more Proofs of Claim filed on behalf of WFCDF. WFBNA's address is 5000 Riverside Drive, Suite 300 East, Irving, TX 75039. The nature and amount of any disclosable economic interest WFBNA may have in relation to the Debtor will be set forth in one or more Proofs of Claim filed on behalf of WFBNA. WFVFS's address is 5000 Riverside Drive, Suite 300 East, Irving, TX 75039. The nature and amount of any disclosable economic interest WFVFS may have in relation to the Debtor will be set forth in one or more Proofs of Claim filed on behalf of WFVFS. Mack Financial's address is P.O. Box 26131, Greensboro, NC 27402. The nature and amount of any disclosable economic interest Mack Financial may have in relation to the Debtor will be set forth in one or more Proofs of Claim filed on behalf of Mack Financial. Baker Donelson is acting as counsel for Navistar Financial, WFCDF, WFBNA, WFVFS, and Mack Financial (collectively, the "Clients"). Each of the Clients has been informed of the multiple representation by Baker Donelson and has consented thereto. The law firm can be reached at: BAKER, DONELSON, BEARMAN CALDWELL & BERKOWITZ, PC Alan L. Smith, Esq. One Eastover Center 100 Vision Drive, Suite 400 Jackson, Mississippi 39211 Telephone: (601) 351-8932 Facsimile: (601) 974-8932 Email: asmith@bakerdonelson.com About MS Freight Co., Inc. MS Freight Co., Inc. filed Chapter 11 petition (Bankr. N.D. Miss. Case No. 24-13745) on November 25, 2024, listing up to $10 million in both assets and liabilities. Will White, president of MS Freight Co., signed the petition. Judge Jason D. Woodard oversees the case. Craig M. Geno, Esq., at the Law Offices of Craig M. Geno, PLLC, represents the Debtor as bankruptcy counsel. Red Iron, as lender, is represented by: P. Garner Vance, Esq. Bradley Arant Boult Cummings, LLP One Jackson Place 188 E. Capitol Street, Suite 1000 P.O. Box 1789 Jackson, MS 39215-1789 Telephone: 601-948-8000 Facsimile: 601-948-3000 Email: gvance@bradley.com MT. AIRY ONE: Carolina Experience to Contribute $400K to Fund Plan ------------------------------------------------------------------ Mt. Airy One, LLC, filed with the U.S. Bankruptcy Court for the Middle District of North Carolina a Plan of Reorganization for Small Business. The Debtor is a North Carolina limited liability company. In August 2021, the Debtor purchased the real property located at 247 City Hall Street, Mount Airy (the "Back Building" or the "Emporium Building") and 248 N. Main Street (the "Front Building" or the "Main-Oak Building"). The Debtor intends to redevelopment the property into sixteen units which can then be sold or rented, plus a 2,000 square foot retail space and a 30-stall parking garage. Absent redevelopment, the City of Mount Airy may attempt to condemn the Front Building. The Debtor proposes to take advantage of the tax credit program as part of its redevelopment plan, conditioned upon ownership of both the Front Building and Back Building. The Plan Proponent's financial projections show that the Debtor will have projected disposable income of $0.00, as it will not begin selling completed units during the term of the payments to creditors. The final Plan payment is expected to be paid in November 2025. Class 4 consists of General Unsecured Creditors. The Debtor anticipates that the total Allowed Claims in Class 4 will be approximately $206,441.55, after excluding the insider claim of the Dilweg Companies, which shall be waived, and the claims the Debtor intends to object to. Based on the liquidation value of the estate, the Debtor projects liquidation equity of $254,927.90. Allowed general unsecured claims will total distribution equal to $72,254.54. The first distribution to this Class in the amount of 15% of the Allowed Claims will be paid within fourteen days of the effective date of the Plan, to be distributed to Allowed Claims pro rata. The balance to be paid to this Class will be paid within eight months of the effective date of the Plan. In the event that the Debtor is successful in obtaining additional funds through an adversary proceeding against Carolina West Wireless, Class 4 shall receive 22% of the proceeds recovered from the adversary proceeding, less the administrative costs associated with their recovery, up to the amount of their Allowed Claim. Funds recovered shall be distributed pro rata within ten days of receipt. Class 5 consists of the unsecured portion of the claim of Sasser Companies in the approximate amount of $704,627.30. The unsecured portion of this claim shall receive a total payment of $230,000.00, payable as follows: (i) the Debtor shall make an initial lump sum payment in the amount of 15% of the Allowed unsecured claim amount ($34,500) within fourteen days of the effective date of the Plan; (ii) payment of $70,500 within eight months of the effective date of the Plan; and (iii) the remaining balance of $125,000.00 to be paid from the sale of the sixteen units to be developed, in the amount of $7,812.50 to be paid from each unit sold. In the event that the Debtor is successful in obtaining additional funds through an adversary proceeding against Carolina West Wireless, Class 5 shall receive 78% of the proceeds recovered from the adversary proceeding, less the administrative costs associated with their recovery, up to the amount of the Allowed Claim. Equity interest holders in the Debtor will retain their interests in the Debtor. The Debtor will make all payments call for by the Plan from a cash contribution from its equity security holder, the Carolina Experience Fund, LLC, in the amount of $400,000.00, which shall be used to make the payments provided for in the Plan. The balance of the funds necessary to pay creditors within eight months of the effective date shall come from either (i) additional funds infused by the Carolina Experience Fund, (ii) through refinancing the existing loans on the property with a third party lender, or (iii) through sales proceeds derived from the sale of all or a portion of the Front Building or Back Building, or individual units in either building. A full-text copy of the Plan of Reorganization dated February 18, 2025 is available at https://urlcurt.com/u?l=gH2Oie from PacerMonitor.com at no charge. About Mt. Airy One LLC Mt. Airy One, LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-80270) on November 27, 2024. In the petition filed by Anthony Dilweg, as manager, 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: Laurie B. Biggs, Esq. Biggs Law Firm, PLLC 9208 Falls of Neuse Road Suite 120 Raleigh, NC 27615 Tel: (919) 375-8040 Fax: (919) 341-9942 Email: lbiggs@biggslawnc.com MULLEN AUTOMOTIVE: Receives Notice of Noncompliance From Nasdaq --------------------------------------------------------------- Mullen Automotive Inc. submitted a Form 8-K to the Securities and Exchange Commission, revealing that on Feb. 25, 2025, it received a written notice from the Nasdaq Listing Qualifications Staff notifying the company that for the 30 consecutive business days leading up to the notice date, the Company's Market Value of Listed Securities (MVLS) fell below the $35 million minimum threshold required for continued listing on the Nasdaq Capital Market, as per Nasdaq Listing Rule 5550(b)(2). Additionally, as of the date of the Notice, the Company did not meet either of the alternative Nasdaq continued listing standards under the Nasdaq Listing Rules: stockholders' equity of at least $2.5 million or net income of $500,000 from continuing operations in the most recently completed fiscal year or in two of the three most recently completed fiscal years. In accordance with Nasdaq Listing Rule 5810(c)(3)(C), the Company has 180 calendar days, or until Aug. 25, 2025, to regain compliance with the MVLS Listing Rule. In order to regain compliance with the MVLS Listing Rule, the Company's MVLS must meet or exceed $35.0 million for a minimum of ten consecutive business days during the 180-day compliance period after which the Staff will provide to the Company written confirmation of compliance and the matter will be closed. In the event the Company does not regain compliance with the MVLS Listing Rule, the Staff will provide the Company notice that the Company's securities will be subject to delisting, at which time, the Company may appeal the delisting determination to a Nasdaq hearings panel. The Notice has no immediate effect on the listing or trading of the Company's common stock on the Nasdaq Capital Market. However, if the Company fails to timely regain compliance with the MVLS Listing Rule by Aug. 25, 2025, the Company's common stock will be subject to delisting from Nasdaq. The Company will continue to monitor its MVLS and consider its available options to regain compliance with the MVLS Listing Rule. There can be no assurance that the Company will regain compliance with the MVLS Listing Rule or otherwise maintain compliance with any of the other Nasdaq listing requirements. About Mullen Automotive Brea, California-based Mullen Automotive Inc., formerly known as "Net Element, Inc., is a Southern California-based automotive company building the next generation of commercial electric vehicles ("EVs") with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica. As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board ("CARB") and EPA certified and available for sale in the U.S. The Company has also recently expanded its commercial dealer network to seven dealers, which includes Pape Kenworth, Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group, Eco Auto, and Randy Marion Auto Group, providing sales and service coverage in key West Coast, Midwest, Pacific Northwest, New England and Mid-Atlantic markets. Larkspur, California-based RBSM, LLP, the Company's auditor since 2023, issued a "going concern" qualification in its report dated Jan. 24, 2025. The report highlighted that the Company, among other things, (i) has an accumulated deficit, (ii) has incurred recurring losses, and (iii) does not believe that its available liquidity will be sufficient to meet its current obligations for a period of at least twelve months from the date of the issuance of the financial statements, which raises substantial doubt about its ability to continue as a going concern. For the years ended Sept. 30, 2024 and 2023, the Company incurred net losses of $505.8 million and $1,006.7 million, respectively, and net cash used in operating activities was $185.6 million and $179.2 million, respectively. As of Sept.30, 2024, the Company had an accumulated deficit of $2.3 billion. The Company stated it will need significant capital to, among other things, continue any research and development, increase its production capacity, and expand its sales and service network. The Company expects to continue to incur substantial operating losses for the next several years as it advances its product development, manufacturing and commercialization efforts. NATIONWIDE EXPRESS: Gets Extension to Access Cash Collateral ------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Georgia, Rome Division, extended Nationwide Express, Inc.'s authority to use cash collateral. The interim order signed by Judge Paul Bonapfel authorized the company to use cash collateral to pay its expenses for the period from Feb. 24 until the final hearing, which is set for March 12. The interim order provides protection for lenders, including a replacement lien on post-petition property. Additionally, Nationwide Express must make $1,500 weekly payments to RTS Financial Services, LLC. In the event Nationwide Express fails to comply with any provision of the interim order and fails to cure such noncompliance within five business days of written notice, any of the lenders may file an emergency motion seeking termination of the company's authority to use cash collateral. About Nationwide Express Inc. Nationwide Express Inc. operates in the general freight trucking industry. The company is based in Ringgold, Ga. Nationwide Express filed Chapter 11 petition (Bankr. N.D. Ga. Case No. 24-40995) on July 2, 2024, listing up to $50,000 in assets and up to $10 million in liabilities. Charlie Stinson, chief executive officer of Nationwide Express, signed the petition. Judge Paul W. Bonapfel oversees the case. The Debtor is represented by William A. Rountree, Esq., at Rountree Leitman Klein & Geer, LLC. NEUROONE MEDICAL: Registers 3 Million Shares Under 2025 Equity Plan ------------------------------------------------------------------- NeuroOne Medical Technologies Corporation disclosed in a Form S-8 Report filed with the U.S. Securities and Exchange Commission that the Board of Directors approved the NeuroOne 2025 Equity Incentive Plan, subject to approval of the Company's stockholders. On February 14, 2025, the Company's stockholders approved the 2025 Equity Incentive Plan. The Company filed the Registration Statement on Form S-8 to register the 3,000,000 shares of its common stock, par value $0.001 per share reserved under the 2025 Equity Incentive Plan, which provides for the grant of equity-based awards in the form of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance awards and other forms of awards to employees, directors and consultants. About NeuroOne Medical Technologies Headquartered in Eden Prairie, MN, NeuroOne Medical Technologies Corporation -- nmtc1.com -- is a medical technology company focused on (i) diagnostic, ablation and deep brain stimulation technology for brain related conditions such as epilepsy and Parkinson's disease; (ii) ablation and stimulation for pain management throughout the body; and (iii) drug delivery including diagnostic and stimulation capabilities. The Company is developing and commercializing thin film electrode technology for continuous electroencephalogram ("cEEG") and stereoelectrocencephalography ("sEEG"), spinal cord stimulation, brain stimulation, drug delivery and ablation solutions for patients suffering from epilepsy, Parkinson's disease, dystonia, essential tremors, chronic pain due to failed back surgeries and other pain-related neurological disorders. The Company is also developing the capability to use its sEEG electrode technology to deliver drugs or gene therapy while being able to record brain activity before, during, and after delivery. Additionally, the Company is investigating the potential applications of its technology associated with artificial intelligence. Minneapolis, Minnesota-based Baker Tilly US, LLP, the Company's auditor since 2021, issued a "going concern" qualification in its report dated Dec. 17, 2024, citing that the Company had recurring losses from operations and an accumulated deficit, expects to incur losses for the foreseeable future, and requires additional working capital. These are the reasons that raise substantial doubt about the Company's ability to continue as a going concern. The Company incurred a net loss of $12.32 million for the year ended Sept. 30, 2024, compared to a net loss of $11.86 million for the year ending Sept. 30, 2023. As of Sept. 30, 2024, the Company had an accumulated deficit of $75.0 million primarily as a result of expenses incurred in connection with its operations and from its research and development programs. As of Dec. 31, 2024, NeuroOne Medical Technologies had $6.49 million in total assets, $3.56 million in total liabilities, and $2.94 million in total stockholders' equity. NEW LEDA LANES: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: New Leda Lanes, Inc. d/b/a Leda Lanes d/b/a Kegler's Den d/b/a Leda's Light House 340 Amherst Street Nashua, NH 03063 Business Description: Leda Lanes, located at 340 Amherst Street in Nashua, NH, is a family-owned candlepin bowling center. The facility offers bowling lanes, pool tables, arcade games, and a full bar, making it a popular venue for parties, leagues, and community events. Leda Lanes is also known for hosting local tournaments and supporting the Special Olympics New Hampshire's State Bowling Tournament. Chapter 11 Petition Date: March 3, 2025 Court: United States Bankruptcy Court District of New Hampshire Case No.: 25-10129 Debtor's Counsel: William J. Amann, Esq. AMANN BURNETT, PLLC 757 Chestnut Street Manchester, NH 03104 Tel: 603-696-5401 E-mail: wamann@amburlaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Sean Howard as president. The Debtor did not provide a list of its 20 largest unsecured creditors in the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/3NECIUA/New_Leda_Lanes_Inc__nhbke-25-10129__0001.0.pdf?mcid=tGE4TAMA NIKOLA CORP: U.S. Trustee Appoints Creditors' Committee ------------------------------------------------------- The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of Nikola Corp. and its affiliates. The committee members are: 1. Antara Capital LP Attn: Raph Posner 55 Hudson Yards 47th Floor, Suite C New York, NY 10001 Phone: 646-762-8580 Email: RPosner@AntaraCapital.com 2. Hexagon Purus GmbH Attn: Ashley Remillard 3335 Susan Street Costa Mesa, CA 926263 Phone: 949-396-7413 Email: Ashley.remillard@hexagongroup.com 3. duotec de Norteamérica S de RL de CV Attn: Eli Josafat Olivarez Chavez Blvd. Campestre 100 Parque Industrial Server Arteaga Coahuila, Mexico CP 25350 Phone: +52 844-2056695 Email: eli.olivarez@duotec.net 4. Fiedler Group Attn: Carolyn Contreras 299 N. Euclid Avenue, Suite 550 Pasadena, CA 91101 Phone: 213-381-3592 Email: carolyn.contreras@fiedlergroup.com 5. Aztek Technologies S.A. DE C.V. Attn: Juan Jose Ochoa Renteria Carretera Monterrey Garcia Km 3 AV FINSA 3203 Parque Industrial FINSA Santa Catarina, Nuevo Leon C.P. 66367 Mexico Phone: +81.80.48.04.00 Email:jochoa@aztektec.com 6. STORE Master Funding XXXII, LLC Attn: Chad Freed and Lyena Hale 8377 E. Hartford Drive, Suite 100 Scottsdale, AZ 85255 Phone: 480-256-1108 Email: cfreed@storecapital.com lhale@storecapital.com 7. Proterra Powered LLC Attn: Ben Haydock and Jen Miller 1815 Rollins Road Burlingame, CA 94010 Email: bhaydock@proterra.com jmiller5@proterra.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About Nikola Corp. Nikola Corporation and affiliates specialize in the design and manufacture of zero-emissions commercial vehicles, including battery-electric and hydrogen fuel cell trucks. The Companies operate in two business units: Truck and Energy. The Truck business unit is commercializing heavy-duty commercial hydrogen-electric (FCEV) and battery-electric (BEV) Class 8 trucks that provide environmentally friendly, cost-effective solutions to the short, medium and long-haul trucking sectors. The Energy business unit is developing hydrogen fueling infrastructure to support the Company's FCEV trucks covering supply, distribution and dispensing. Founded in 2015, the Company is headquartered in Phoenix, Arizona. Nikola Corp. and nine of its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del., Lead Case No. 25-10258) on February 19, 2025. In the petitions, the Debtors reported total assets as of Jan. 31, 2025 of $878,094,000 and total debts as of Jan. 31, 2025 of $468,961,000. Honorable Bankruptcy Judge Thomas M. Horan handles the cases. Potter Anderson & Corroon LLP serves as general bankruptcy counsel to the Debtors, and Pillsbury Winthrop Shaw Pittman LLP serves as bankruptcy co-counsel. Houlihan Lokey Capital, Inc. acts as investment banker to the Debtors; M3 Advisory Partners LP acts as financial advisor to the Debtors; while EPIQ Corporate Restructuring LLC is the Debtors' claims and noticing agent. NISSAN MOTOR: Fitch Lowers LongTerm IDR to 'BB+', Outlook Negative ------------------------------------------------------------------ Fitch Ratings has downgraded Nissan Motor Acceptance Company LLC's (NMAC) Long-Term Issuer Default Rating (IDRs) to 'BB+' from 'BBB-' and Short-Term IDR to 'B' from 'F3'. Fitch has also downgraded NMAC's senior unsecured debt rating to 'BB+' from 'BBB-', CP rating to 'B' from 'F3', and Shareholder Support Rating (SSR) to 'bb+' from 'bbb-'. The Rating Outlook remains Negative. Key Rating Drivers Downgrade Drivers and Alignment to Parent Rating: The downgrade of NMAC's ratings are driven by the downgrade of its parent company, Nissan Motor Co., Ltd. (NML; BB+/Negative). The ratings and Rating Outlook for NMAC are equalized with and linked to those of NML as Fitch views the issuer as a core subsidiary of NML. This view reflects strong implicit and explicit support factors, including the financing of a large share of NML's U.S. sales by NMAC, significant operational linkages between the two companies and the existence of a keepwell agreement between the parent and NMAC. This agreement requires NML to maintain 100% ownership of NMAC, make capital contributions to NMAC to maintain its positive tangible net worth, and provide sufficient liquidity for NMAC to punctually meet its debt obligations. NMAC's credit profile is further supported by its strong asset quality, consistent operating performance and moderate leverage. Shareholder Support: NMAC's 'bb+' SSR is aligned with NML's Long-Term IDR and indicates the minimum level to which NMAC's IDR could fall if Fitch does not change its view on potential support from NML. A 'bb+' SSR indicates a moderate probability of support being forthcoming. Short-Term Ratings: NMAC's 'B' Short-Term IDR reflects the rating linkage between the Short-Term IDR and 'BB+' Long-Term IDR, and Fitch's view of the funding and liquidity profiles of NMAC and NML. Therefore, the Short-Term IDR is primarily sensitive to changes in the Long-Term IDR. Credit Metrics Normalizing: NMAC's asset quality remains strong, but credit performance has normalized from the historically strong levels in 2021-2022. NMAC's net charge-offs on finance receivables were 0.33% in fiscal 2Q24, up from 0.25% a year ago. Meanwhile, delinquencies of 60 days or more past due and accruing interest, as well as nonaccruals on finance receivables, were 0.72% as of Sept. 30, 2024, compared with 0.52% the year earlier and an average of 0.64% from fiscal 2020 to fiscal 2023. Higher Expenses Impacting Earnings: NMAC's operating performance weakened in 1H24, driven primarily by a rise in expenses due to higher borrowing costs on outstanding debt and an increase in provisions for loan losses. Annualized pre-tax returns on average assets (ROAA) was 1.8% in 1H24, down from 2.7% a year earlier and below the average of 3.1% for fiscal 2020- fiscal 2023. Fitch expects profitability metrics to continue to be strained in the medium term, given the more challenging macroeconomic backdrop and still-high interest rates. Leverage Above Historical Average: NMAC's leverage, measured by debt to tangible equity, increased to 7.1x at Sept. 30, 2024, up from 4.5x at fiscal YE 2023 and an average of 4.3x for fiscal 2020 to fiscal 2023. The meaningful increase was the result of the recent dividends to its parent, combined with portfolio growth. Fitch believes NMAC's leverage is high but acceptable in the context of the strong asset quality of NMAC's loan and lease portfolio and that it compares favorably with captives rated by Fitch. Diverse Funding Profile: NMAC's funding profile is diverse and includes securitizations, unsecured bonds, bank loans and intercompany borrowings. NMAC's unsecured debt represented 61.4% of total debt as of Sept. 30, 2024, compared with an average of 63.7% for fiscal 2020 to fiscal 2023. NMAC's unsecured debt is below the 70% average for Fitch-rated peers. An increase in unsecured debt would enhance the firm's funding flexibility. Sufficient Liquidity: Fitch believes NMAC's liquidity profile is sufficient given consistent cash flow generation, available cash on hand of $43 million as of Sept. 30, 2024, $8.3 billion of committed asset backed borrowing capacity and $6.1 billion of committed unsecured borrowing capacity under its credit facilities. Fitch believes NMAC has sufficient liquidity to address its near-term borrowing needs. Short-Term Ratings: NMAC's 'B' Short-Term IDR reflects the rating linkage between the Short-Term IDR and 'BB+' Long-Term IDR and Fitch's view of the funding and liquidity profiles of NMAC and NML. Therefore, the Short-Term IDR is primarily sensitive to changes in the Long-Term IDR. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Changes to NMAC's ratings are largely dependent on NML's ratings and Outlook, given the rating linkage. Changes in the perceived relationship between NMAC and NML, such that Fitch believes the captive has become less central to NML's strategic operations and/or adequate financial support was not provided to the captive in times of need, could drive negative rating actions. - Meaningful and sustained credit quality deterioration, the recognition of consistent operating losses, a material increase in leverage above average post-crisis levels, a material increase in the proportion of short-term debt in the funding structure, and/or a deterioration in NMAC's liquidity profile could also lead to negative rating action. - The SSR is primarily sensitive to changes in NMAC's Long-Term IDR, and secondarily, to changes in Fitch's assessment of the probability of support being extended to NMAC from NML. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - NMAC's ratings are linked to Fitch's view of NML's credit profile. Fitch cannot envision a scenario in which NMAC would be rated higher than its parent. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The CP rating is equalized with the Short-Term IDR. The senior unsecured debt rating is equalized with the Long-Term IDR, reflecting a sufficient proportion of unsecured funding in the capital structure and the unencumbered asset pool, which suggests average recovery prospects for debtholders under a stress scenario. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The CP rating is primarily sensitive to changes in the Short-Term IDR and would be expected to move in tandem. The senior unsecured debt ratings are primarily sensitive to changes in the Long-Term IDR and would be expected to move in tandem. However, a material increase in the proportion of secured funding could result in the unsecured debt rating being notched down from the Long-Term IDR. Public Ratings with Credit Linkage to other ratings NMAC's ratings and Outlook are equalized with NML, as Fitch considers NMAC a core subsidiary of NML. This is supported by the high percentage of NML's U.S. sales financed by NMAC, strong operational and financial linkages between the two companies, shared branding, and a support (keepwell) agreement provided directly by NML to NMAC. ESG Considerations NMAC has an ESG Relevance Score of '4' for Group Structure, due to its complexity related to the alliance with Renault and Mitsubishi. This has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Nissan Motor Acceptance Company LLC LT IDR BB+ Downgrade BBB- ST IDR B Downgrade F3 Shareholder Support bb+ Downgrade bbb- senior unsecured LT BB+ Downgrade BBB- senior unsecured ST B Downgrade F3 NORTHWEST INDIANA LIGHTHOUSE: Moody's Rates New 2025A/B Bonds 'Ba1' ------------------------------------------------------------------- Moody's Ratings has assigned an initial Ba1 rating to Northwest Indiana Lighthouse Charter Schools, IN's proposed $20 million Educational Facilities Revenue Bonds (Northwest Indiana Lighthouse Charter Schools, Inc. Project), Series 2025A and $330,000 Taxable Educational Facilities Revenue Bonds (Northwest Indiana Lighthouse Charter Schools, Inc. Project), Series 2025B issued through the Indiana Finance Authority. The bonds will have an expected maturity date of 2044. The school had approximately $18 million of debt outstanding as of fiscal year end (June 30) 2024. The outlook is stable. RATINGS RATIONALE The initial Ba1 rating balances the school's strong financial position and modest leverage with its fair competitive profile as evidenced by low academic performance and weak demographics within the school's service area. Enrollment trends are modestly negative, but good fiscal management and one-time federal revenue have supported strong operating results over the last few fiscal years. In fiscal 2024, the school's operating cash flow margin of 24% provided for a robust 4x annual debt service coverage. Operating performance will narrow in fiscal 2025 and beyond from the reduction of one-time federal revenue, but good budget management will continue to support satisfactory coverage and liquidity. For fiscal 2025, the school has budgeted for an operating cash flow margin of 8%, sufficient to provide 1.3x annual debt service coverage, although actual performance will likely be better given the school's history of outperforming their budget. Operating flexibility is provided by low fixed costs, with annual debt service at 6% operating expenses. Leverage from debt will remain modest given a lack of additional debt plans or significant capital needs. Fiscal 2024 spendable cash and investments covered 39% of pro forma debt. The school operates under two charter agreements with Ball State University and prospects are good for another renewal in 2025. Governance is a key driver of all initial charter school rating assignments. Governance considerations include financial strategy and risk management, as well as management credibility and track record, which has been good as demonstrated the school's solid operating performance. RATING OUTLOOK The stable outlook incorporates the school's good budget management which is will continue to drive satisfactory operating performance and the maintenance of modest financial leverage. The stable outlook also considers the school's ability to adapt to potential shifts in student demand to maintain satisfactory operating performance. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Liquidity of over 150 days cash on hand on a sustained basis -- Strengthening of competitive profile and improved demographic trends FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Material increase in leverage without commensurate increase in reserves or revenue -- Enrollment losses that contributes to narrower operating performance LEGAL SECURITY The Series 2025 bonds are payable from payments received pursuant to a loan agreement between the Northwest Indiana Lighthouse Charter Schools and the Indiana Finance Authority. Under the loan agreement, the school has pledged to make payments from gross revenues. The revenues are primarily comprised of state funding, although the agreement also includes all revenues derived from operation of the school. The Series 2025 bonds are further secured by a debt service fund, funded in an amount equal to MADS, and by a mortgage on the school's facilities. USE OF PROCEEDS The Series 2025 bonds will refund the school's outstanding Series 2016 bonds and fund improvements to the primary (K-3) campus located in Gary as well as fund a debt service reserve fund. PROFILE Northwest Indiana Lighthouse Charter Schools (NWILCS) operates two charter schools know as East Chicago Lighthouse Charter School and Gary Lighthouse Charter School, each operating under separate a charter agreement with Ball State University. The NWILCS is self-managed and collectively serves over 1,600 students. East Chicago Lighthouse Charter School serves students in grades K-8 from a single campus located in East Chicago, IN and operates under a five year charter agreement that currently expires in June 2025. Gary Lighthouse Charter School serves students in grades K-12 from three campuses located in Gary, IN and operates under a five year charter agreement that currently expires in June 2027. The mission of NWILCS is to promote educational equity by preparing scholars for college, career and life in a rigorous and nurturing educational environment. NWILCS places a strong emphasis on literacy, critical thinking, and work ethic. METHODOLOGY The principal methodology used in these ratings was US Charter Schools published in April 2024. NOVA CHEMICALS: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has affirmed the NOVA Chemicals Corporation's Long-Term Issuer Default Rating at 'BB-'. Fitch has also affirmed NOVA's senior secured debt ratings at 'BB+' with a Recovery Rating of 'RR2' and its senior unsecured debt at 'BB-'/'RR4'. The Rating Outlook is Stable. The rating reflects NOVA's position as a low-cost ethylene and polyethylene producers globally, sufficient liquidity and relatively moderate maintenance capital requirements. This is offset by an elevated debt burden, exposure to commodity prices, and an uncertain macroeconomic environment. Key Rating Drivers Improving Operations Drives Deleveraging: NOVA's operations improved significantly in 2024, despite lingering industry overcapacity. In 2023, the company had suffered unplanned outages at its Corunna ethylene production facility due to a mechanical issue within a third-party proprietary technology. Fitch believes that this period marked peak leverage for NOVA as the Corunna cracker issues have been resolved and destocking has largely subsided. Continued industry overcapacity and the potential for significant U.S. tariffs on Canadian imports could threaten this momentum throughout the ratings horizon. If U.S. trade relationships with Canada deteriorate, Fitch believes management could shift a substantial amount of product to Asia, which would partially mitigate the negative impact on profitability and cash generation. Successful Refinancing Efforts: NOVA proactively addressed its near-term maturity profile in 2023-2024 and extended its $1.5 billion revolving credit facility to April 2028, representing an important step in the company's management of its debt maturity profile. Fitch believes that the transactions will afford the company a degree of financial flexibility and materially lower refinancing risk throughout the ratings horizon, with its next significant maturity due in 2027. NOVA's ratings assume the company will continue to proactively address maturities in a timely manner. Sustained Low-Cost Position: NOVA benefits from low-cost feedstock at its Geismar, Louisiana, Joffre, Alberta and Corunna, Ontario sites. These assets have access to some of the most prolific shale oil & gas basins, and the Joffre assets are near Canadian oil sands operations and integrated into the Alberta Ethane Gathering System. Fitch expects North American ethylene production to remain cost advantaged despite low global operating rates. Increased Focus on Sustainability: Fitch believes that NOVA's Circular Solutions business line, which focuses on producing lower-emission, recycled solutions, will remain a key target for investment during periods of greater cash flow and financial access. The company expects to begin production at its new recycling plant in Connersville, IN this year. Fitch believes polyethylene producers that secure both supply and demand commitments in North America will be able to enjoy premium pricing on recycled products. Derivation Summary NOVA and Westlake Corporation (BBB/Stable) are both regional producers concentrated in ethylene and polyethylene production, but Westlake benefits from greater scale and product diversification. Both producers have globally competitive cost bases and have some specialized characteristics resulting in some margin uplift from pure commodity chemical producers. Though NOVA and Westlake's North American asset bases provide the companies with a relative cost advantage, they lack the scale and geographic diversification of Dow Chemical (BBB+/Stable) and LyondellBasell Industries N.V. (BBB/Stable). These three peers have demonstrated more capital discipline than NOVA, each electing to repay debt during a period of record margins and cash flow in 2021 and early 2022 while NOVA paid $1.2 billion in sponsor dividends. NOVA operates with far higher EBITDA leverage than its peers, with YE 2023 leverage over 10.0x compared to LyondellBasell at 2.1x. Key Assumptions - Fitch's model does not incorporate any impacts from tariffs placed on Canada by the U.S.; - Corunna production drives 2024 recovery with modest operational improvement thereafter; - Fitch-calculated EBITDA margins recover sharply in 2024, slowly continuing toward 2019 levels in 2025-2026; - Capex approximately in line with depreciation and amortization; - No additional M&A or sponsor dividends modelled in the forecast; - Limited debt repayment beyond successful execution of the company's refinancing strategy. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage consistently above 5.5x, potentially driven by persistently low utilization rates; - Generally negative FCF through the cycle, straining liquidity; - Aggressive capital deployment via significant dividends or elevated capital spending. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Demonstrated commitment to operating with EBITDA leverage consistently below 4.5x, including voluntary debt repayment; - Generally neutral to positive FCF through the cycle. Liquidity and Debt Structure At Sept. 30, 2024, NOVA had total liquidity consisting of $225 million in readily available cash and over $1.3 billion in revolver availability. The company has largely addressed its near-term maturities as of its new unsecured issuance, and Fitch believes NOVA will be able to successfully address its maturities in a timely manner, with its next significant maturity coming in 2027. Issuer Profile NOVA produces and sells ethylene, polyethylene and co-products. These products are used in a wide variety of downstream applications. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- NOVA Chemicals Corporation LT IDR BB- Affirmed BB- senior unsecured LT BB- Affirmed RR4 BB- senior secured LT BB+ Affirmed RR2 BB+ ONDAS HOLDINGS: Unit Pushes Back $1.5M Loan Maturity to July 2025 ----------------------------------------------------------------- Ondas Networks Inc., a subsidiary of Ondas Holdings Inc., and Charles & Potomac Capital, LLC ("C&P"), entered into a Letter Agreement in which the Maturity Date of the secured loan was extended from Feb. 28, 2025, to July 23, 2025, as disclosed in a Form 8-K filed with the Securities and Exchange Commission. On Sept. 3, 2024, Networks entered into a Security Note Agreement with C&P, an entity affiliated with Joseph Popolo, a director of the Company, under which C&P provided Networks with a loan of $1,500,000. About Ondas Holdings Marlborough, Mass.-based Ondas Holdings Inc. provides private wireless data solutions through its subsidiary, Ondas Networks Inc., and commercial drone solutions through Ondas Autonomous Systems Inc. (OAS), which includes wholly owned subsidiaries American Robotics, Inc. and Airobotics LTD. OAS focuses on the design, development, and marketing of autonomous drone solutions, while Ondas Networks specializes in proprietary, software-based wireless broadband technology for both established and emerging commercial and government markets. Together, Ondas Networks, American Robotics, and Airobotics deliver enhanced connectivity, situational awareness, and data collection capabilities to users in defense, homeland security, public safety, and other critical industrial and government sectors. Somerset, N.J.-based Rosenberg Rich Baker Berman, P.A., the Company's auditor since 2017, issued a "going concern" qualification in its report dated April 1, 2024, citing that the Company has experienced recurring losses from operations, negative cash flows from operations, and a working capital deficit as of Dec. 31, 2023. Net loss decreased by $28,396,333, or 39%, to $44,844,872 for the year ended Dec. 31, 2023, compared with $73,241,805 for the year ended Dec. 31, 2022. The Company has incurred losses since inception and has funded its operations primarily through debt and the sale of capital stock. As of Sept. 30, 2024, the Company had an accumulated deficit of approximately $226,032,000. As of Sept. 30, 2024, the Company had net long-term borrowings outstanding of approximately $2,217,000 net of debt discount and issuance costs of $0 and short-term borrowings outstanding of approximately $30,751,000, net of debt discount and issuance cost of approximately $1,537,000 and a working capital deficit of approximately $22,341,000. OPENLANE INC: S&P Alters Outlook to Positive, Affirms 'B' ICR ------------------------------------------------------------- S&P Global Ratings revised its outlook to positive from stable and affirmed all ratings, including its 'B' issuer credit rating on OPENLANE Inc. S&P's positive rating outlook on OPENLANE reflects the potential for an upgrade within the next 12 months if it can reduce and sustain leverage below 6x and maintain FOCF to debt above 5%. The positive outlook reflects OPENLANE's improved operating performance, stronger free cash flow, and debt repayments, which have strengthened its credit metrics. The company has grown its digital Marketplace business, particularly its dealer volumes. This strong growth led to the segment's improving profitability as it increased scale and realized cost efficiency. The Marketplace segment's EBITDA margins increased to 7.5% in 2024 from 5.5% the previous year and a loss in 2022. The Marketplace segment margins has provided uplift to OPENLANE's consolidated EBITDA, with margins exceeding 20% in 2024. S&P said, "While we are forecasting some headwinds in 2025, specifically due to the trough in off-lease vehicle volumes, we expect OPENLANE will sustain recent Marketplace profitability as it leverages cost efficiencies from its digital Marketplace business." Though the Marketplace segment profits have grown, the Finance business still generates over half of OPENLANE's profitability. The Finance segment's results were lower in 2024 due to tightening interest margin earned on its floor plan loans. Despite softer Finance segment results during 2024, we expect its EBITDA will remain steady overall throughout our forecast period. Overall, S&P is forecasting consolidated EBITDA margins sustained at around 22% and debt to EBITDA of just below 6x in 2025 followed by gradual improvement toward the mid-5x area by the end of 2026. FOCF to debt is forecast to remain comfortably above 5% annually in our base case. S&P believes OPENLANE has sufficient sources of liquidity over the next 12 months to repay its remaining $210 million of June 2025 notes. The company ended 2024 with $540.7 million of total liquidity, composed of balance sheet cash of $143 million and net revolver availability of $397.7 million under its U.S. and Canadian credit facilities. Since 2022, OPENLANE has repaid $1.9 billion of debt using proceeds from the sale of its ADESA US physical auction business in 2022, cash flow generation, and its recent sale of the noncore key service business during the fourth quarter of 2024. The company's commitment to debt repayment combined with improved Marketplace profitability allowed it to significantly de-leverage over the past few years. The capital structure consists mainly of its floor plan finance obligations, $612.5 million preferred equity, $210 million notes due June 2025, US$325 million revolver due 2028, and C$175 million revolver due 2028. Aside from the upcoming note maturity, OPENLANE has no impending maturities through 2028, when its floor plan finance facilities expire followed by the U.S dollar- and Canadian dollar-denominated revolving credit facilities in mid-2028. S&P said, "Our positive outlook for OPENLANE reflects the potential for an upgrade within the next 12 months if it can reduce and sustain leverage below 6x and maintain FOCF to debt above 5%. "We could revise our outlook to stable if the company sustains leverage above 6x or FOCF to debt falls below 5%. This could occur if a larger decline in off-lease volumes strains Marketplace profitability or the Finance segment provisions for credit losses remained elevated. Credit metrics could also be weakened by OPENLANE pursuing aggressive financial policies such as large acquisitions (similar to that of CARWAVE or BacklotCars) or similar debt-financed activities. "We could raise our rating on OPENLANE if leverage can be sustained below 6x with FOCF to debt above 5%. The company could achieve these metrics if it can uphold cost efficiencies in its digital Marketplace business and steady profitability from the Finance segment." ORSIPEL V LLC: Seeks to Hire Rachel S. Blumenfeld PLLC as Attorney ------------------------------------------------------------------ Orsipel V LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to hire Law Office of Rachel S. Blumenfeld PLLC as attorney. The firm will provide these services: a. give advice to the Debtor with respect to its powers and duties as Debtors-in-Possession and the continued management of its property and affairs; b. negotiate with creditors of the Debtor and work out a plan of reorganization and take the necessary legal steps in order to effectuate such a plan including, if need be, negotiations with creditors and other parties in interest; c. prepare on behalf of the Debtor all necessary schedules, application, motions, answers, orders, reports, and other legal papers required for the Debtors that seek protection from its creditors under Chapter 11 of the Bankruptcy Code; d. appear before the Bankruptcy Court to protect the interest of the Debtors and to represent the Debtor in all matters pending before the Court; e. represent the Debtor, if need be, in connection with obtaining post-petition financing; f. take any necessary action to obtain approval of a disclosure statement and confirmation of a plan of reorganization; and g. perform all other legal services of the Debtor which may be necessary for the preservation of the Debtor's estate and to promote the best interest of the Debtor, its creditors and its estate. The firm will be paid at these rates: Rachel S. Blumenfeld, Esq. $525 per hour Of counsel $450 per hour Paraprofessional $150 per hour The firm will be paid a retainer in the amount of $30,000, plus the $1,738 filing fee. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. In addition, the firm will seek reimbursement for its out-of-pocket expenses. Rachel S. Blumenfeld, a partner at Rachel S. Blumenfeld PLLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Rachel S. Blumenfeld, Esq. Law Office of Rachel S. Blumenfeld PLLC 26 Court Street, Suite 2220 Brooklyn, New York 11242 Tel: (718) 858-9600 Email: rachel@blumenfeldbankruptcy.com About Orsipel V LLC Orsipel V LLC is the owner of a mixed-use property located at 5355 Stone Street, also known as 1517 South William Street, New York, NY 10004. The Property consists of seven residential units and two commercial units, all of which are currently rented, except for two vacant residential units and one vacant commercial unit. The current value of the Property is $15.1 million. Orsipel V LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10238) on February 7, 2025. In its petition, the Debtor reports total assets of $15,115,000 and total liabilities of $10,102,000. Honorable Bankruptcy Judge David S. Jones handles the case. The Debtor is represented by Rachel S. Blumenfeld, Esq. at LAW OFFICE RACHEL S. BLUMENFELD PLLC. PAP-R PRODUCTS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Pap-R Products Company Colorkraft Paper Roll Products Evergreen Manufacturing Pap-R Tainer Double Diamond Management, Inc. 1 Harry Glynn Dr. Martinsville, IL 62442 Business Description: Founded in 1947, PAP-R Products specializes in a wide range of coin and currency wrapping solutions. The Company's product lineup includes flat coin wrappers, automatic coin rolls, currency bands, and specialized wraps for items such as napkins and canceled checks. All products are crafted from high-quality Kraft paper and adhere to ABA standards when applicable. The company also offers custom imprinting services for most products, excluding basic bill bands and storage boxes. Chapter 11 Petition Date: March 3, 2025 Court: United States Bankruptcy Court Southern District of Illinois Case No.: 25-60040 Debtor's Counsel: Larry E. Parres, Esq. LEWIS RICE LLC 600 Washington Ave. Suite 2500 Saint Louis, MO 63101 Tel: 314-444-7600 Email: lparres@lewisrice.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Kenneth Scott Ware as president. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/HWERWUQ/Pap-R_Products_Company__ilsbke-25-60040__0001.0.pdf?mcid=tGE4TAMA List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. American Express $115,724 PO Box 650448 Dallas, TX 75265-0448 2. Beverly Ware $439,816 5501 Dunrobin Dr. #3408 Sarasota, FL 34238 3. Canusa Paper & Packaging $25,667 1532 Thames St. Baltimore, MD 21231 4. Cellmark Papers $56,958 PO Box 358070 Pittsburgh, PA 15251-5070 5. Friendly City Box $9,223 520 Oakridge Dr. Johnstown, PA 15904 6. Harrison Ware $21,303 2005 Stones Throw Dr. Franklin, TN 37067 7. Hood Packaging $69,230 14051 Collections Center Dr. Chicago, IL 60693 8. Manufacturer's Resources, Inc. $9,860 16344 W. Glendale Drive New Berlin, WI 53151 9. Norkol, Inc. $87,015 P.O. Box 85397 Chicago, IL 60689-5397 10. Old Dominion $13,298 14933 Collection Center Dr. Chicago, IL 60693-4933 11. Recycling Technologies, Inc. $54,870 PO Box 24638 Indianapolis, IN 46224 12. Ritchie Marketing Inc. $11,039 3883 36th Street SE Grand Rapids, MI 49512 13. SAIA $9,620 P.O. Box 730532 Dallas, TX 75373-0532 14. Seaman Paper Company $16,070 35 Wilkins Rd Gardner, MA 01440 15. Shorr Packaging $25,509 PO Box 773252 Chicago, IL 60677-3252 16. SMB $209,798 43 San Marcos Rd. Santa Barbara, CA 93111 17. Streco $149,506 168 Business Park Dr. Suite 200 Virginia Beach, VA 23462 18. Veritiv Operating Company $16,461 P.O. Box 849089 Dallas, TX 75284-9089 19. Welch Packaging $54,741 PO Box 856421 Minneapolis, MN 55485 20. Wilson Pallet $19,278 1858 N. CR 1300 E. Sullivan, IL 61951 PAVMED INC: Closes $2.37M Offering of Common Shares, Warrants ------------------------------------------------------------- PAVmed Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company and its majority-owned subsidiary, Veris Health Inc., entered into subscription agreements with certain accredited investors, pursuant to which the Company agreed to sell and the Investors agreed to purchase 2,574,350 shares of the Company's common stock and pre-funded warrants to purchase 756,734 shares of the Company's common stock, at a purchase price of $0.7115 per share or warrant share (as applicable). In addition, Veris agreed to issue to each Investor approximately 0.2033 shares of Veris' common stock for each share or warrant share (as applicable) purchased by such Investor, for an aggregate of 677,143 shares of Veris' common stock. On February 21, 2025, the Company consummated the Offering, generating gross proceeds to the Company of $2.37 million. The proceeds of the offering will be used to resume development activities related to Veris' implantable physiological monitor and for general working capital purposes. The Subscription Agreement contains customary representations, warranties, covenants and indemnities of the Company and the Investors, as well as a covenant by the Company to provide the Investors with protection against subsequent equity raises by the Company or Veris at a lower purchase price (solely to the extent the Investors continue to hold the shares issued in the Offering), with such protection to be effected through the issuance of additional shares of Veris' common stock. In addition, the Company: (i) agreed to solicit the affirmative vote of its stockholders by no later than its next meeting of stockholders, which will be held no later than June 30, 2025, for approval, for the purposes of the rules of The Nasdaq Stock Market LLC, of the issuance of all of the shares underlying the Pre-Funded Warrants, and to hold additional meetings quarterly thereafter to the extent such approval is not obtained, (ii) granted the Investors a 100% participation right in future offerings of equity securities of the Company or its majority-owned subsidiaries, subject to existing participation rights of the Company's debt holder, and (iii) agreed not to incur, and not to permit its majority-owned subsidiaries to incur, any indebtedness until August 18, 2026, subject to certain exceptions. In accordance with the Subscription Agreement, the Company also entered into a registration rights agreement with the Investors, pursuant to which the Company agreed to file a registration statement covering the resale of the shares of the Company's common stock issued in the Offering, including the shares underlying the Pre-Funded Warrants. The Pre-Funded Warrants become exercisable upon the receipt of the stockholder approval described above, expire on February 18, 2030, and have an exercise price of $0.001 per share, subject to adjustment as described below. The Pre-Funded Warrants may be exercised for cash, or on a cashless basis. In the event the Pre-Funded Warrants are exercised on a cashless basis, the holder will be entitled to receive a number of shares of the Company's common stock equal to (x) the excess of the market value of the Company's common stock over the exercise price, multiplied by (y) the number of shares as to which the Pre-Funded Warrant is being exercised, divided by (z) the market value of the Company's common stock. The exercise price and number and type of securities or other property issuable on exercise of the Pre-Funded Warrants may be adjusted in certain circumstances, including in the event of a stock split or combination, stock dividend, or a recapitalization, reorganization, merger or similar transaction. In addition, a holder of the Pre-Funded Warrants will be entitled to participate in rights offerings or pro rata distributions by the Company. However, there will be no adjustment for issuances of shares of common stock at a price below the exercise price. The offer and sale of the Company's common stock and Pre-Funded Warrants, and the offer and sale of the shares of common stock issuable upon exercise of the Pre-Funded Warrants, are exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated thereunder, because, among other things, the transaction did not involve a public offering, the investors are accredited investors, the investors are taking the securities for investment and not resale, and the Company took appropriate measures to restrict the transfer of the securities. The securities have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an exemption from registration. This Current Report on Form 8-K shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About PAVMed Headquartered in New York, NY, PAVmed is structured to be a multi-product life sciences company organized to advance a pipeline of innovative healthcare technologies. Led by a team of highly skilled personnel with a track record of bringing innovative products to market, PAVmed is focused on innovating, developing, acquiring, and commercializing novel products that target unmet needs with large addressable market opportunities. Leveraging its corporate structure -- a parent company that will establish distinct subsidiaries for each financed asset -- the Company has the flexibility to raise capital at the PAVmed level to fund product development, or to structure financing directly into each subsidiary in a manner tailored to the applicable product, the latter of which is its current strategy given prevailing market conditions. Headquartered in New York, NY, Marcum LLP, the Company's auditor since 2019, issued a "going concen" qualification in its report dated March 25, 2024. The report cites that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of June 30, 2024, PAVmed had $39.41 million in total assets, $58.06 million in total liabilities, and a total stockholders' deficit of $18.64 million. PAVmed had net cash flows used in operating activities of approximately $24.8 million for the six month period ended June 30, 2024. As of June 30, 2024, the Company had negative working capital of approximately $23.2 million, with such working capital inclusive of the Senior Secured Convertible Notes classified as a current liability of an aggregate of approximately $44.0 million and approximately $25.5 million of cash. PAVmed's ability to continue operations 12 months beyond the issuance of the financial statements, will depend upon generating substantial revenue that is conditioned upon obtaining positive third-party reimbursement coverage for its EsoGuard Esophageal DNA Test from both government and private health insurance providers, increasing revenue through contracting directly with self-insured employers, and on its ability to raise additional capital through various potential sources including equity and/or debt financings or refinancing existing debt obligations. These factors raise substantial doubt about the Company's ability to continue as a going concern within one year after the date (August 12, 2024) its unaudited condensed consolidated financial statements were issued. PEACHY ATHLETIC: Court Extends Cash Collateral Access to March 27 ----------------------------------------------------------------- Peachy Athletic, LLC received approval from the U.S. Bankruptcy Court for the Middle District of Florida to use cash collateral on an interim basis pending a further hearing set for March 27. The interim order signed by Judge Roberta Colton approved the use of cash collateral to pay the operating expenses set forth in the company's budget, plus an amount not to exceed 10% for each line item. The four-week budget shows total projected expenses of $25,976. The U.S. Small Business Administration and other creditors with a security interest in cash collateral were granted a post-petition lien on the collateral to the same extent and with the same validity and priority as their pre-bankruptcy liens. As additional protection, Peachy Athletic was ordered to maintain insurance coverage for its property in accordance with the obligations under applicable loan and security documents with the SBA. About Peachy Athletic Peachy Athletic, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06501) on November 1, 2024, with $100,001 to $500,000 in assets and $100,001 to $500,000 in liabilities. Judge Roberta A. Colton oversees the case. The Debtor is represented by: Scott A. Stichter, Esq. Stichter, Riedel, Blain & Postler, P.A. 110 E. Madison St., Suite 200 Tampa, FL 33602 Phone: (813) 229-0144 Email: sstichter.ecf@srbp.com PEOPLE WHO CARE: Hires Century 21 Allstars as Real Estate Broker ---------------------------------------------------------------- People Who Care Youth Center, Inc. seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ Century 21 Allstars Commercial Division as real estate broker. The firm will market and rent the Debtor's real property located at 1512 W. Slauson Ave., Los Angeles, CA. The firm will be paid a commission of 6 percent of the gross rent. Dieter Von Puschendorf, a real estate broker at Century 21 Allstars Commercial Division, 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: Dieter Von Puschendorf Century 21 Allstars Commercial Division 224 Brookshire Place Brea, CA 92821 Tel: (714) 349-6649 Email: dvpworld@gmail.com & businessc21ccgroup@gmail.com About People Who Care Youth Center People Who Care Youth Center Inc., is a non-profit corporation that provides child daycare to low-income working parents in South Central Los Angeles. Its primary asset is a commercial real property building located at 1502 and 1512 West Slauson Avenue, Los Angeles, California. People Who Care Youth Center Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 23-16449) on Oct. 3, 2023. In the petition filed by Michelle McArn, as CEO, the Debtor estimated assets between $500,000 and $1 million and estimated liabilities between $100 million and $500 million. PHAIR COMPANY: Seeks Chapter 11 Bankruptcy in California -------------------------------------------------------- On February 25, 2025, The Phair Company LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern 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 The Phair Company LLC The Phair Company LLC is a limited liability company. The Phair Company LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Cal.Case No. 25-00667) on February 25, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. The Debtor is represented by: Vincent Renda, Esq. PINNACLE LEGAL P.C. 9565 Waples Street, Suite 200 San Diego CA 92121 Tel: (858) 868-5000 Email: vr@pinlegal.com PMHB LLC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: PMHB, LLC 2006 Viburnum Lane Asheville, NC 28803 Business Description: PMHB, LLC is a hotel development company based in Asheville, North Carolina. Chapter 11 Petition Date: March 2, 2025 Court: United States Bankruptcy Court Western District of North Carolina Case No.: 25-10038 Judge: Hon. George R Hodges Debtor's Counsel: Dennis O'Dea, Esq. SFS LAW GROUP PO Box 78588 Charlotte, NC 28277 Tel: (704) 780-1544 Fax: (704) 973-0043 Email: dennis.odea@sfslawgroup.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Pratik Bhakta as managing member. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/Q3JPX2Q/PMHB_LLC__ncwbke-25-10038__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Akerman LLC Contract $125,000 98 Southeast Seventh St. Suite 11 Miami, FL 33131 2. Allbridge Contract $42,774 2710 Wycliff Road, Raleigh, NC 27607 3. Arpan Bhakta Loan $150,000 10809 Knight Castle Dr. Charlotte, NC 28203 4. Atul Patel Loan $477,933 2440 Northside Pkway Atlanta, GA 30327 5. Baldev Bhakta Loan $500,000 8214 Caroline Ridge Dr. Houston, TX 77396 6. Bhavna Bakta Loan $300,000 6229 Hickory Forest Drive Charlotte, NC 28227 7. Buncombe County Tax $155,000 94 Coxe Avenue Asheville, NC 28801 8. Buncombe County Contract $62,701 94 Coxe Avenue Asheville, NC 28801 9. Duke Energy Contract $30,000 525 S Tryon St. Charlotte, NC 28202 10. Gerharz Contract $29,246 220 Teall Ave. Syracuse, NY 13210 11. Govind Patel Loan $500,000 2440 Northside Pkwy Atlanta, GA 30327 12. HAMB, LLC Loan $150,000 200 Underwood Road 28732 Fletcher, NC 28732 13. Hyatt Hotel Contract $60,152 150 N. Riverside Plaza 8th Floor North Granby, CT 06060-6000 14. Manjula Bahkta Loan $61,000 2006 Viburnum Lane Asheville, NC 28803 15. Oracle Contract $28,824 2300 Oracle Way Stanhope, NJ 07874-1000 16. Pratik Bhakta Loan $2,080,701 2006 Viburnum Lane Asheville, NC 28802 17. Prestige Hospitality Group Contract $35,565 1 Northwestern Blvd Albany, NY 12211 18. Shila Bhakta Loan $300,000 12481 N. 57th Drive Glendale, AZ 85304 19. Superior Connects LLC Contract $20,000 709 22nd Street, SW Puyallup, WA 98371 20. WDG Construction Contract $225,000 Group, Inc. 5520 Kopetsky Dr. Indianapolis, IN 46217 POSEIDON INVESTMENT: S&P Downgrades ICR to 'SD' on Debt Repurchase ------------------------------------------------------------------ S&P Global Ratings lowered its issuer credit rating on Poseidon Investment Intermediate L.P. (Poseidon) to 'SD' (selective default) from 'CCC' and the issue-level rating on its second-lien term loan to 'D' (default) from 'CC'. S&P's 'B-' and 'CCC' issue-level ratings on Poseidon's super senior first-out loan and super senior second-out loan, respectively, are unchanged. S&P expects to review its issuer credit rating on the company over the next few business days. Poseidon repurchased a portion of its second-lien term loan due 2029 in the first quarter of 2025 at a substantial discount to par. S&P said, "We view the debt repurchase as distressed and tantamount to a default. Poseidon repurchased a portion of its $227.8 million second-lien term loan in the first quarter of 2025 at a significant discount to par value. We view the repurchase as a selective default because lenders received less than originally promised. We also lowered the rating on the company to 'SD' following the exchange of its first-lien term loan in October 2023 and the discounted repurchases of its second-lien term in fiscal 2024. "The company did not repurchase any of the outstanding super senior first-out term loan or the super senior second-out term loan and, therefore, the 'B-' and 'CCC' issue-level credit ratings, respectively, remain unchanged. We expect to review our issuer credit rating on the company over the next few business days. The rating on the second-term loan could remain at 'D' if we anticipate the company will continue to repurchase the debt." PUBLIC FINANCE: Moody's Rates New 2025C Subordinate Bonds 'Ba1' --------------------------------------------------------------- Moody's Ratings has assigned a Baa1, Baa2, Ba1 ratings to Public Finance Authority's $55.47 million Student Housing Revenue Bonds (KSU Bixby Real Estate Foundation, LLC Project) Senior Series 2025A, $27.39 million Subordinate Series 2025B, and $19.90 million Junior Subordinate Series 2025C, respectively. The outlook for all ratings is stable. RATINGS RATIONALE The senior, subordinate, and junior subordinate bonds' ratings reflect the demonstrated strong occupancy levels and ability to annually raise rental rates, which support strong debt service coverage for the senior and subordinate tranches but weaker debt service coverage for the junior subordinate tranche for Bixby Kennesaw ("the Project"), a 656-bed student housing facility located in Kennesaw, Georgia. The Project also benefits from its close proximity to the Kennesaw State University campus core, as well as the current strong student housing demand at the University. The governance provided by the KSU Foundation is a key driver of the project's credit rating. Furthermore, there is a strong affiliation to the University through the Kennesaw State Foundation, who currently owns over 55% of on campus housing and will provide marketing, support services, and residential life programming for the Project. The Baa1 rating on the senior tranche reflects very strong projected operating performance under base-case and stress-case assumptions, with debt service coverage maintained at a minimum of 2.1x and 1.6x, respectively, through maturity. The Baa2 rating for the subordinate tranche reflects solid projected operating performance under base-case and stress-case assumptions of 1.4x and 1.1x respectively. The Ba1 rating for the junior subordinate tranche reflects adequate coverage under base-case assumptions alone 1.1x through maturity. Junior subordinate debt service coverage is not maintained above 1.0x under Moody's stress-case scenario. Offsetting these strengths are both the potential for additional on-campus and off campus housing development that may impact future demand and the small project size of 656 beds. Also factored in is the slight slowdown of future rental increases compared to previous years where KSU Foundation was not the sole owner of the Project. The Foundation along with the University will be incentivized to keep rents low for the student body. RATING OUTLOOK The stable outlook reflects that occupancy will be maintained at current high levels due to strong demand from high university enrollment, thereby sustaining strong operating margins and debt service coverage. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Not expected over the medium term for senior and subordinate tranches; however, significant outperformance of debt service coverage over proforma could lead to upgrades for these tranches -- Multi-year DSC above 1.2x for junior subordinate bonds FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Multi-year DSC approaching 2.0x, 1.2x, 1x for senior, subordinate, and junior subordinate tranches, respectively -- Material decline in occupancy level coupled with inability to raise rental rates and/or offset expenses LEGAL SECURITY The Series 2025A, Series 2025B and Series 2025C bonds ("Series 2025 Bonds") are payable from KSU Bixby Real Estate Foundation, LLC's loan repayments. Additionally, the Series 2025 Bonds are secured by a security interest in all leases, rents, revenues and other income derived from the operation of the Project. KSU Bixby Real Estate Foundation, LLC has granted and assigned to the master trustee a first priority security interest in all accounts under the Master Indenture as well as all inventory and equipment at the project. All rights and interest of the Issuer in cash proceeds arising out of the sale the Series 2025 Bonds, as well as all funds, securities and interest earnings held by the bond trustee in accounts created by the Bond Indenture (except the Rebate Fund) are also pledged to secure Series 2025 Bonds. KSU Bixby Real Estate Foundation, LLC will also convey to the master trustee security title to its leasehold interest in the real property of the Project as specified within the Security Deed. USE OF PROCEEDS The proceeds from the Series 2025 Bonds will be used for refinancing and financing all or a portion of the costs of acquiring the Bixby Kennesaw Project. Additionally, the proceeds will be used to fund the debt service reserve fund and to cover the costs of issuing the Series 2025 Bonds. PROFILE KSU Bixby Real Estate Foundation, LLC (the "Company") is a limited liability company organized and existing under the laws of the State, with Kennesaw State University Foundation, Inc. (the "Foundation" or "Sole Member") as its sole member. The Foundation is a nonprofit corporation recognized by the Internal Revenue Service as an exempt organization described under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended. The Foundation's primary purpose is furthering the interests of Kennesaw State University (KSU). The Company's primary purpose is acquiring, operating, and maintaining the Project, a 656-bed student housing facility located at 3061 George Busbee Parkway NW, Kennesaw, Georgia 30144. METHODOLOGY The principal methodology used in these ratings was Global Housing Projects published in August 2024. PUERTO RICO: PREPA Bankruptcy Attention Turns to Revenue Dispute ---------------------------------------------------------------- Michelle Kaske of Bloomberg News reports thatPuerto Rico's bankrupt electric utility and its creditors must resolve revenue-related disputes before proceeding with a plan to restructure nearly $9 billion in debt. On Monday, March 4, 2025, U.S. District Court Judge Laura Taylor Swain directed Puerto Rico's financial oversight board -- overseeing the utility's bankruptcy -- along with investors and bond insurers to establish a court schedule for addressing these issues. A key dispute remains between the oversight board and a group of bondholders over repayment terms. Swain previously capped their unsecured lien at $2.4 billion, but the U.S. Court of Appeals is reviewing the ruling. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's PROMESA petition is available at http://bankrupt.com/misc/17-01578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies -- Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) -- commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Website https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. R.R. DONNELLEY: Fitch Affirms 'B' LongTerm IDR, Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed R.R. Donnelley & Sons Company's (RRD) Long-Term Issuer Default Rating (IDR) at 'B'. The Rating Outlook is Stable. Additionally, Fitch has affirmed RRD's first lien term loan at 'BB-' with a Recovery Rating of 'RR2' following the add-on to its existing term loan B. Fitch has also affirmed the company's ABL facility at 'BB'/'RR1', senior secured notes at 'BB-'/'RR2', and junior lien secured notes and unsecured notes at 'B-'/'RR5'. The ratings and Outlook reflect RRD's leading market position, scale, client and end-market diversification, as well as EBITDA expansion through continued cost rationalization and operational improvements. The ratings are constrained by secular industry headwinds in the print segment that limit revenue growth over the forecast period, execution risk associated with acquisitions, and moderately high leverage. Key Rating Drivers Execution Risk: Fitch believes there is elevated execution and integration risk following the Valassis acquisition in July 2024, which offers digital and print marketing services. Additionally, RRD recently acquired Williams Lea in January 2025 to enhance its Digital, Creative and Business Services segment. Fitch believes that secular decline in Valassis' print segment revenue could impede RRD's growth profile post-acquisition. Low revenue growth in a relatively low margin business increases the risk and uncertainty of operating performance over time. However, manageable leverage somewhat mitigates this risk for the IDR. Moderate Leverage: RRD issued an incremental term loan of $180 million and used a portion of the proceeds from the ABL to fund the Williams Lea acquisition. Fitch estimates RRD's proforma EBITDA leverage in the low 4.0x range, excluding the parent company's PIK notes and senior PIK toggle notes of $360 million at RRD Intermediate Holdings, Inc. Fitch treats these PIK notes as shareholder loans, not debt, in accordance with Fitch's criteria for rating Holdco PIK shareholder loans. Fitch believes deleveraging will be manageable through continued EBITDA expansion and asset sales. Fitch expects EBITDA leverage to remain in the low 4.0x range over the forecast period. Fitch assumes that RRD will successfully refinance or extend the ABL facility due in 2026. Fitch expects the company's (CFO-Capex)/Debt (%) to stay in the low mid-single-digit range over the forecast period. Print Pressures: Fitch believes RRD faces moderate secular headwinds limiting print segment revenue growth. Commercial print accounted for roughly 27% of 2024 revenues, down from 34% in 2018. The shift to digital media, accelerated by the pandemic, continues to curb demand for printed products and boost online content distribution. However, RRD's transformation into a marketing, packaging and supply chain solutions provider and continued cost rationalization efforts have improved EBITDA margins, with further costs reductions expected over the rating horizon. Scale in Fragmented Industry: RRD's credit profile is supported by its scale and diverse product offerings as one of the largest commercial printers and marketing solutions providers in the U.S. Fitch believes the company's significant size provides economies of scale benefits in the highly competitive and fragmented printing industry. RRD also benefits from longstanding client relationships, with 80% having a tenure of over seven years, low customer concentration and a high contracted revenue base. Diversified Client Base and Industry Mix: RRD serves over 17,000 clients, including over 75% of the Fortune 500, across 175 global locations, with about 76% of the revenues from the U.S. The company operates in major industry verticals such as retail, health care, financials, services, manufacturing, publishing. Its top 10 customers account for about 22% of total revenues, but RRD has strong client retention. Fitch expects that the diversified customer base and geographic spread reduce risks tied to individual sectors and minimize revenue volatility due to long-standing customer relationships. Asset Monetization: RRD continues to optimize parts of its portfolio by monetizing asset sales. Besides divesting GDS, R&D and Logistics businesses, and Chile & Brazil operations before 2021, the company sold a printing facility in Shenzhen, China and disposed of its Canadian operations in 2023. Fitch believes that ongoing cost rationalization and deleveraging through non-core asset sales could provide RRD with additional financial flexibility. Derivation Summary Fitch assesses RRD's ratings relative to various printing and other services peers in Fitch's rated universe. RRD holds a relatively strong competitive position based on the scale of its operations compared to Fitch-rated peer, Quad/Graphics, Inc. (B+/Stable). Quad/Graphics, the second-largest U.S. printing company by revenue after RRD, has lower EBITDA leverage, a FCF margin in low single-digit range, and higher interest coverage compared to RRD. Although RRD's scale, revenue growth, and EBITDA margins are better than Quad/Graphics', its rating is constrained by its moderately high leverage and low FCF. Fitch also rates Deluxe Corporation (B/Stable), which specializes in print legacy and payment solutions. Deluxe's print segment includes checks and promotional products and accounts for 57% of its 2024 revenue. While RRD is larger in scale with higher revenue generation, Deluxe achieves higher EBITDA margins. RRD's ratings are constrained by secular industry headwinds that limit revenue growth execution risk associated with the Valassis acquisition, and the lack of commitment to a financial policy due to private equity ownership, which could prioritize shareholder returns over deleveraging. Relative to other printing and services industry peers rated by Fitch, RRD is well positioned at the 'B' rating level. Key Assumptions - Fitch expects 2025 revenue to increase in low single digits due to secular decline in commercial print, slower demand and overall economic conditions. - EBITDA margins are assumed in low double-digit range over the forecast period based on the improvements in operational efficiency and cost initiatives. - Fitch projects FCF as a percentage of revenue to be in the low single-digit range over the next few years. - Capex of about $125 million-$130 million annually. - Cash taxes and working capital remain a modest use of cash flow in the next few years. - Fitch expects the company to refinance the ABL facility in 2026. Recovery Analysis For entities rated 'B+' and below, where default is a higher possibility and recovery prospects are more meaningful to investors, Fitch undertakes a tailored, or bespoke, analysis of recovery upon default for each issuance. The resulting debt instrument rating includes a Recovery Rating or published 'RR' (graded from RR1 to RR6) and is notched from the IDR accordingly. In this analysis, there are three steps: (i) estimating the distressed enterprise value (EV), (ii) estimating creditor claims, and (iii) distribution of value. Key Recovery Rating Assumptions Fitch assumes that RRD would be reorganized as a going-concern in bankruptcy rather than liquidated. Fitch has assumed a 10% administrative claim. Going-Concern Approach Fitch estimates a going-concern EBITDA of $530 million, or meaningfully below the company's proforma EBITDA including Valassis and Williams Lea. The going-concern EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the enterprise valuation. Fitch contemplates a scenario in which a secular decline in commercial printing and the highly competitive and fragmented nature of the industry impair RRD's debt-servicing facility. Any incremental first lien debt could result in changes to the Recovery Rating for the term loan B facility and senior secured notes. EV Multiple Fitch assumes a 5.0x multiple, which is validated by historical public company trading multiples, industry M&A and past reorganization multiples Fitch has seen across various industries. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Sustained revenue declines or higher than expected deterioration of EBITDA margins; - FCFs sustained near zero; - EBITDA leverage at or above 5.0x; - (CFO - capex)/debt less than 2.5%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Material improvement in operating profile evidenced by sustained positive low single-digit revenue growth and continued improvement in EBITDA margins; - Consistently positive FCFs with FCF margins at mid-single digits or higher; - EBITDA leverage sustained below 4.0x; - (CFO - capex)/debt above 5%. Liquidity and Debt Structure Fitch views RRD's liquidity position as adequate, supported by the company's cash balances and the availability under its asset-based revolving credit facility of $560 million as of Dec. 31, 2024, adjusted for the borrowing base, outstanding LOCs and borrowings under the facility. The company had cash balances of $288 million as of Dec. 31, 2024. Fitch also projects positive FCF over the rating horizon. However, the FCF margins could be impacted if the company pays out large dividends. Pro forma debt capital consists of $750 million ABL facility maturing April 2026, $775 million private term loan B facility maturing 2029, new incremental term loan of $180 million, $1,050 million five-year senior secured notes, $475 million five-year junior lien secured notes and less than $90 million of senior unsecured notes and debentures due from 2029 through 2031. Issuer Profile R.R. Donnelley and Sons Company is one of the largest global commercial printers and a provider of marketing, packaging, labels, print, and supply chain solutions. The company has over 17,000 clients in over 175 locations globally. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- R.R. Donnelley & Sons Company LT IDR B Affirmed B senior unsecured LT B- Affirmed RR5 B- senior secured LT BB Affirmed RR1 BB senior secured LT BB- Affirmed RR2 BB- senior secured LT B- Affirmed RR5 B- RBX INC: U.S. Trustee Unable to Appoint Committee ------------------------------------------------- The U.S. Trustee for Region 13 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of RBX Inc. About RBX Inc. RBX Inc. was founded in 1983 by Randall Walker. It specializes in hauling general freight, beverages, and paper products. RBX Inc. filed Chapter 11 petition (Bankr. W.D. Miss. Case No. 24-60819) on December 13, 2024, listing up to $50,000 in assets and between $10 million and $50 million in liabilities. Judge Brian T. Fenimore oversees the case. Sharon L. Stolte, Esq., at Sandberg Phoenix & Von Gontard is the Debtor's legal counsel. RENOVARO INC: Enters Definitive Merger Agreement With BioSymetrics ------------------------------------------------------------------ Renovaro Biosciences Inc. has announced a definitive agreement to merge with BioSymetrics, an artificial intelligence (AI)-driven company specializing in drug discovery and biomarker identification. This transformative partnership aims to expand Renovaro's data repository, enhance its biomarker discovery capabilities, accelerate translational research, and advance precision medicine solutions for cancer and other critical disease areas. At the core of this collaboration is BioSymetrics' proprietary Elion platform, a cutting-edge AI and machine learning engine that uncovers complex biological relationships to accelerate the discovery of diagnostics and therapeutics. BioSymetrics' Phenograph provides a translational engine that maps human clinical signals to prioritized therapeutic targets and is designed to expedite and improve target and biomarker identification and enable patient stratification and drug repurposing. BioSymetrics' advanced AI in vivo modeling and machine vision systems enable high throughput phenotypic screening, leveraging AI-powered analysis to detect subtle biological responses with unprecedented accuracy. Through in vivo modeling BioSymetrics has amassed an incredible database of proprietary in vivo experimentation, with associated behavioural and morphological analysis. This integrated approach hastens the discovery and validation of transformative therapeutics by bridging computational insights with real-world biological validation, and has enabled platform and analytic partnerships with Janssen, Pfizer, Merck, Supernus Pharma, and Deerfield Cures. By integrating Elion into Renovaro's workflow, the combined entity aims to streamline the translation of biomarker insights into accelerated discovery timelines, enhancing precision in target identification and improving overall research efficiency, ultimately enabling faster and more effective drug discovery and therapeutic development. "This merger represents a pivotal step in our mission to diagnose cancer and advance precision medicine," said David Weinstein, CEO of Renovaro. "By combining our expertise in oncology with BioSymetrics' AI-driven biomarker discovery, we are creating a powerful synergy that will enhance our ability to identify new therapeutic targets, validate diagnostics and accelerate drug development." The Company noted that BioSymetrics' AI technology has been instrumental in uncovering novel disease signatures and optimizing precision medicine strategies. Through this merger, Renovaro will gain access to cutting-edge computational tools that enhance the ability to stratify patients, predict treatment responses, and drive more effective therapeutic interventions. "We are excited to join forces with Renovaro to translate cutting-edge biomarker discoveries into tangible advancements in drug development," said Anthony Iacovone, CEO of BioSymetrics. "Our AI-driven Elion platform is significantly impacting precision medicine and by aligning with Renovaro's deep expertise in immunotherapy and oncology, we can accelerate the journey from discovery to clinical application." The merger underscores a shared commitment to harnessing AI and data-driven approaches to improve patient outcomes. Moving forward, the combined company will focus on integrating AI-powered biomarker discovery with innovative drug development, ultimately bringing more precise and effective treatments to patients worldwide. The transaction is expected to close in March 2025, subject to customary closing conditions and regulatory approvals. About Renovaro Inc. Headquartered in Los Angeles, Calif., Renovaro Inc. operates through two subsidiaries, Renovaro Biosciences and Renovaro Cube. Renovaro Cube refers to GediCube Intl. Ltd. and its wholly owned subsidiaries GediCube, B.V. and Grace Systems B.V., which were acquired on Feb. 13, 2024. Renovaro Biosciences 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 its acquisition of GEDi Cube Intl, the Company has shifted its 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. For the years ended June 30, 2024, and 2023, respectively, the Company reported a net loss of $80,650,172 and $39,684,056. The Company had an accumulated deficit of $325 million and $244 million as of June 30, 2024 and 2023, respectively. As of Dec. 31, 2024, the Company had $111.34 million in total assets, $29.28 million in total liabilities, and $82.06 million in total stockholders' equity. "We have historically satisfied our capital and liquidity requirements through funding from stockholders, the sale of our Common Stock and warrants, and debt financing. We have never generated any sales revenue to support our operations, and we expect this to continue until our therapies or products are approved for marketing in the United States and/or Europe. Even if we are successful in having our therapies or products approved for sale in the United States and/or Europe, we cannot guarantee that a market for the therapies or products will develop. We may never be profitable," the Company mentioned in its Quarterly Report for the period ending Dec. 31, 2024. RLG HOLDINGS: Moody's Cuts CFR to Caa1 & Alters Outlook to Stable ----------------------------------------------------------------- Moody's Ratings downgraded the corporate family rating of RLG Holdings, LLC (RLG) to Caa1 from B3, the Probability of Default Rating to Caa1-PD from B3-PD, the senior secured first lien bank credit facility to B3 from B2, and the senior secured second lien bank credit facility to Caa3 from Caa2. The outlook was changed to stable from negative. The rating downgrade was prompted by RLG's high debt and interest burden that is leading to persistently weak credit metrics, such as interest coverage of around 1.0x and adjusted debt-to-EBITDA of over 10.0x. While Moody's expects credit metrics to improve gradually in 2025, Moody's neither expects that credit metrics will return to more solid levels last seen in 2022 nor are Moody's projecting any major reduction in debt. The company continues to execute its debt funded "tuck-in" acquisition strategy, as evidenced by a transaction using the revolver in February 2025. Moody's expects RLG's negative funds from operations in 2024 to turn positive in 2025, driven by cost saving initiatives and a positive trend in year over year volumes. The downgrade also reflects governance considerations, including an aggressive financial policy and limited prospects for material debt reduction in future. RATINGS RATIONALE RLG's Caa1 CFR reflects the company's very high leverage of over 10.0x debt to EBITDA, weak interest coverage around 1.0x, and negative free cash flow generation. Moody's expects the company to grow organically through volume improvement in 2025 and realize benefits from estimated cost savings initiatives, which will turn funds from operations positive. This is a key consideration for Moody's stables outlook on the Caa1 CFR. In addition, cash flow realization from the integration of bolt-on acquisitions should support operating cash flow generation. However, in the past few years additional revenue from acquisitions has not kept pace with the rapid increase in the company's debt load. Moody's expects RLG to have weak liquidity over the next 12 months. Cash at September 30, 2024 was $6 million and availability on its $85 million revolver was about $50 million. Moody's forecasts that slightly negative free cash flow through 2025, after capital expenditures of around $20 million, will limit RLG's ability to pay down revolver borrowings. The revolver expires in July 2026 and the first lien and second lien term loans mature in 2028 and 2029, respectively. The B3 rating assigned to the first lien senior secured credit facility reflects its priority position in the capital structure. The first lien senior secured credit facility is unconditionally guaranteed by the borrower and each of its direct and indirect subsidiaries, except Resource Label Group Canada, Inc. The first lien secured credit facility is secured by a first priority interest in all assets of the guarantors. The Caa3 rating on the $125 million second lien term loan maturing in 2029 reflects the subordinated lien on the collateral pledged to the first lien senior secured credit facility. The stable outlook incorporates an improving volume environment in 2025 and cost savings initiatives that will support gradual improvements in currently very weak credit metrics. ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS Moody's changed RLG's governance risk score to G-5 from G-4 and its credit impact score to CIS-5 from CIS-4. The change in the governance risk and credit impact scores reflect very aggressive financial policies, which have resulted in a large amount of debt on its balance sheet. As a result, credit metrics are very weak, while execution risk is high to realize the cash flow benefits from acquisition integration and cost savings. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if liquidity deteriorates or the company fails to improve credit metrics. Specifically, Moody's could downgrade the rating if EBITDA-to-interest is sustained below 1.0x. A downgrade could also occur in case of increased risk of a restructuring of the debt or default. An upgrade, although unlikely over the near term, would require a sustainable improvement in credit metrics, liquidity and a less aggressive financial policy. Specifically, if interest coverage improves toward 2.0x, debt to EBITDA declines to 6.0x and the company has positive free cash flow-to-debt. RLG is a leader in pressure-sensitive and other high-value label solutions in the fragmented North American labels industry. The company is owned by Ares Management and does not file public financial statements. In the last twelve months ended September 30, 2024, Resource Label generated pro forma sales of $526 million. The principal methodology used in these ratings was Packaging Manufacturers: Metal, Glass and Plastic Containers published in December 2021. RVFW LLC: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: RVFW LLC 7100 Cross Timbers Road Flower Mound, TX 75022 Business Description: RVFW LLC is the owner of Eden Ranch, a master-planned community located in Flower Mound, Texas, designed to reconnect families with nature, health, and their neighbors. The Community spans over 300 acres and offers upscale living with a focus on sustainability. It includes a range of amenities such as gardens, orchards, and vineyards, where residents can grow their own food, and it promotes a low-impact, organic lifestyle. The ranch is dedicated to high-quality, locally produced food, and its design incorporates elements like rotating gourmet crops and eco-friendly farming practices. Chapter 11 Petition Date: March 3, 2025 Court: United States Bankruptcy Court Eastern District of Texas Case No.: 25-40609 Debtor's Counsel: Buffey E. Klein, Esq. HUSCH BLACKWELL LLP 1900 N. Pearl Street, Suite 1800 Dallas, TX 75201 Tel: 214-999-6152 Email: buffey.klein@huschblackwell.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Tyler Radbourne as manager. The Debtor did not provide a list of its 20 largest unsecured creditors in the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/PNPPLXA/RVFW_LLC__txebke-25-40609__0001.0.pdf?mcid=tGE4TAMA RYLEE & COMPANY: Hires Law Firm of McMurray as Special Counsel -------------------------------------------------------------- Rylee & Company, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Texas to employ the Law Firm of McMurray as special counsel. The Debtor needs the firm's legal assistance in connection with a case filed in the 431st Judicial District Court of Denton County, Texas, against Open Infra Inc. and Lightup Construction Inc. The firm will be paid on a contingency fee of 40 percent of the gross recovery if a successful verdict is rendered from the funds recovered to satisfy a judgment. Thomas M. McMurray, Esq. disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Thomas M. McMurray, Esq. Law Firm of McMurray 109 S. Woodrow Lane, Suite 300 Denton, TX 76205 Tel: (940) 383-0783 Fax: (940) 382-2452 About Rylee & Company, LLC Rylee & Company, LLC provides childcare services, generating revenue from tuition, subsidies, and reimbursements while managing operational costs like utilities, payroll, and supplies. The company is undergoing financial reorganization to stabilize and ensure sustainability. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Texas Case No. 24-42062) with $500,000 to $1 million in assets and $1 million to $10 million in laibilities. The petition was signed by Amber Castillo, owner/director. The Hon. Brenda T. Rhoades presides over the case. Mark J. Petrocchi, Esq., at GRIFFITH, JAY & MICHEL, LLP, is the Debtor's legal counsel. SBF VENTURES: Seeks to Hire Gary W. Cruickshank as Counsel ---------------------------------------------------------- SBF Ventures, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Massachusetts to employ Gary W. Cruickshank, Esq. as counsel. The firm will provide these services: a. assist and advise the Debtor in the formulation and presentation of a Plan of Reorganization and Disclosure Statement; b. advise the Debtor as its duties and responsibilities as Debtor-in-Possession; c. perform such other legal services as may be required during the course of this Chapter 11 case. The firm will be paid based upon its normal and usual hourly billing rates. It will also be reimbursed for reasonable out-of-pocket expenses incurred. Gary W. Cruickshank, Esq., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Gary W. Cruickshank, Esq. 101 Federal Street, Suite 1900, Boston, Massachusetts 02110 Tel: (617) 330-1960 Email: gwc@cruickshank-law.com About SBF Ventures LLC SBF Ventures LLC is a limited liability company. SBF Ventures LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No.: 25-10217) on February 3, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Christopher J. Panos handles the case. The Debtor is represented by Gary W. Cruickshank, Esq.. SEBASTIAN HABIB: Hires BKO Associates as Real Estate Broker ----------------------------------------------------------- Sebastian Habib, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ BKO Associates Real Estate LLC as real estate broker. The firm will market and sell the Debtor's real properties: a. 1758 Dunlap Avenue, East Point, Georgia 30344; b. 2701 Flintlock Place, Austell, Georgia 30106; c. 5038 Austell Powder Springs Road, Austell, Georgia 30106; d. 5034 Austell Powder Springs Road, Austell, Georgia 30106; e. 2764 Whitewater, Austell, Georgia 30106; f. 2324 Nelms Drive SW, Atlanta, Georgia 30315; g. 2231 Nelms Drive SW, Atlanta, Georgia 30315; h. 1744 Nathan Lane, Austell, Georgia 30106; i. 6286 Lobelia Drive, Mableton, Georgia 30126; j. 950 Lake Drive, Snellville, Georgia 30039; k. 2206 Clay Road, Austell, Georgia 30106; l. 865 Old Rocky Road SW, College Park, Georgia 30349; m. 1905 Connally Drive, East Point, Georgia 30344; n. 7085 Winkfield Place, College Park, Georgia 30349; o. 2610 Northfield Court, College Park, Georgia 30349; p. 2274 Nelms Drive SW, Atlanta, Georgia 30315; q. 6405 Kensington Court, Austell, Georgia 30106; r. 6240 Humphries Hill Road, Austell, Georgia 30106; s. 2330 Nelms Drive SW, Atlanta, Georgia 30315; t. 3655 Sulene Drive, College Park, Georgia 30349; u. 4140 Huntcliff Drive, Woodstock, Georgia 30189; v. 2318 Nelms Drive SW, Atlanta, Georgia 30315; and w. 6280 Woodford Road, College Park, Georgia 30349. The firm will be paid at $80,000 at the closing of the sale. Berrendia O'Neal, a partner at BKO Associates Real Estate 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: Berrendia O'Neal BKO Associates Real Estate LLC 9836 Spyglass Drive Villa Rica, GA 30180 Tel: (770) 876-4931 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. SHERWOOD HOSPITALITY: Hires Sussman Shank LLP as Counsel -------------------------------------------------------- Sherwood Hospitality Group, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Oregon to employ Sussman Shank, LLP as counsel. The Debtor requires legal counsel to: (a) give advice regarding the duties and responsibilities of the Debtor; (b) prepare and file schedules; (c) defend motions for relief from stay; (d) analyze and object claims; (e) formulate and approve a plan of reorganization under Subchapter V of Chapter 11 and information statement; (f) negotiate with creditors and other parties in interest; and (g) perform all other matters requiring legal representation of the Debtor in this Chapter 11 case. The firm received a retainer of $40,000 from Devang Patel, and applied $13,454.50 to pre-petition fees and expenses, leaving a retainer of $16,545.50. The firm was owed by the Debtors in the amount of $131,088.83. Douglas R. Ricks, Esq., an attorney at Sussman Shank, disclosed in a court filing that his firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Douglas R. Ricks, Esq. Christopher N. Coyle, Esq. Sussman Shank LLP 1000 SW Broadway, Suite 1400 Portland, OR 97205-3089 Tel: (503) 227-1111 Fax: (503) 248-0130 Email: dricks@sussmanshank.com ccoyle@sussmanshank.com About Sherwood Hospitality Group, LLC Sherwood Hospitality Group LLC, d/b/a Hampton Inn Sherwood Portland, operating as Hampton Inn Sherwood Portland, is a hospitality company based in Sherwood, Oregon. The Company manages a hotel offering amenities like free breakfast,free Wi-Fi, a heated indoor pool, and a fitness center. Sherwood Hospitality Group LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Or. Case No. 25-30484) on February 17, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $10 million and $50 million. Honorable Bankruptcy Judge Peter C. Mckittrick handles the case. The Debtor is represented by Douglas R. Ricks, Esq., at SUSSMAN SHANK LLP. SMITH ENVIRONMENTAL: Seeks Subchapter V Bankruptcy in Colorado -------------------------------------------------------------- On February 28, 2025, Smith Environmental and Engineering Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Colorado. According to court filing, the Debtor reports $2,975,603 in debt owed to 50 and 99 creditors. The petition states funds will be available to unsecured creditors. About Smith Environmental and Engineering Inc. Smith Environmental and Engineering Inc. is a woman-owned consulting firm that provides comprehensive environmental services, specializing in ecological sciences, environmental engineering, and construction. With over 24 years of experience, the Company offers tailored solutions for environmental management, hazardous materials, and cultural resource projects across various industries. Smith Environmental and Engineering Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Col. Case No. 25-11042) on February 28, 2025. In its petition, the Debtor reports total assets of $1,486,401 and total liabilities of $2,975,603. Honorable Bankruptcy Judge Michael E. Romero handles the case. The Debtor is represented by: David J. Warner, Esq. WADSWORTH GARBER WARNER CONRARDY, P.C. 2580 West Main Street, Suite 200 Littleton, CO 80120 Tel: 303-296-1999 E-mail: dwarner@wgwc-law.com SOAP BOX: Hires Law Offices of Eric J. Gravel as Counsel -------------------------------------------------------- Soap Box Cleaners seeks approval from the U.S. Bankruptcy Court for the Northern District of California to employ the Law Offices of Eric J. Gravel as counsel. The firm's services include: a) preparation and filing of its schedules, statement of financial affairs and related documents occasioned by the filing of a Chapter11 case; b) appearance with the debtor at the first meeting of creditors; c) preparation of such orders as may be required, including motions to employ professionals, motions to avoid preferences, motions to sell real property, motions to assume or reject executory contracts, motions to avoid liens and motions to compel turnover of property; and d) preparation of a plan of reorganization and appearance at proceedings related to the confirmation of a plan of reorganization. The firm will charge $480 per hour for its services. The firm received an initial retainer in the amount of $16,000. Eric J. Gravel, Esq., the attorney to perform the services, assured the court that he is a "disinterested person" within the meaning of 11 U.S.C.101(14). The counsel can be reached through: Eric J. Gravel, Esq. Law Offices of Eric J. Gravel 1390 Market St, Suite 200 San Francisco, CA 94102 Phone: (650) 931-6000 Email: ejgravel@gmail.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 reported 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., at The Law Offices of Eric J. Gravel. SOLUTION ENGINEERING: Business Revenue to Fund Plan Payments ------------------------------------------------------------ Solution Engineering for Reliable and Viable Enterprises (SERVE) Advisory Group, LLC filed with the U.S. Bankruptcy Court for the District of Columbia a Subchapter V Plan of Reorganization dated February 18, 2025. The Debtor is a Maryland limited liability company doing business as "SERVE" headquartered and operating at 2000 M Street, NW, Washington, DC 20036. The Debtor provides healthcare technology consulting services, primarily to federal agencies, through government contracts. The Debtor has eighteen employees including William Reynolds. Mr. Reynolds is the sole member and currently is paid a salary of $9,417.02 on a bi-weekly basis. The primary obstacle, and the proximate cause for the bankruptcy filing, has been a dispute with Super Fast Vets, LLC ("SFV"), the holder of a money judgment against the Debtor. The dispute began when Mr. Reynolds assumed the debts of an organization for which he served as Chair of the Board. SFV later obtained a judgment against SERVE and pursued collection of the judgment by serving writs of garnishment and sending requests for discovery to SERVE's vendors, creditors and clients complicating its efforts at collecting revenue. The Debtor believes that it has approximately $1,675,131.37 in undisputed general unsecured claims. The Debtor's projections show that the Debtor will have projected disposable income of approximately $25,350.00 per month. The final Plan payment to unsecured creditors is expected to be paid on the date that is five years after the Effective Date of the Plan. Class 4 consists of all General Unsecured Claims. Provided that an Allowed Class 2 Claim has not been paid prior to the Effective Date, and except to the extent that a holder of a Class 4 Claim agrees to a different and lesser treatment, each holder of an Allowed Class 4 Claim shall receive from the Debtor, in full and complete settlement, satisfaction and discharge of its Allowed Class 4 Claim, a pro rata portion of the Quarterly Payments (each such pro rata share to be paid after Allowed Administrative Claims are satisfied, and payment of the commission incurred by the Trustee, if any). The allowed unsecured claims total $1,675,131.37. Class 4 is impaired under this Plan. To the extent any Class 4 Claim is deemed to be a Non Dischargeable Claim, it will be paid in full, with interest at the federal judgment rate in effect on the Confirmation Date, in equal quarterly payments, over a period not to exceed ten years, beginning on the first day of the quarter immediately after the last Quarterly Payment is made. Any creditor asserting a Non Dischargeable Claim will be required to file an adversary proceeding by not later than the Effective Date or have forever waived their right to do so. Based on the Debtor's projections of consistently increasing and improving revenue over the life of the proposed plan, the Debtor will make Quarterly Payments in increasing amounts: beginning on the first business day that is in the first full quarter after the Effective Date and continuing on the first business of each quarter for the first year after Effective Date of the Plan, the Debtor shall pay Quarterly Payments of $24,000.00 ("Year 1 Quarterly Payments"), in the second year after Effective Date of the Plan, the Debtor shall pay Quarterly Payments of $69,000.00 ("Year 2 Quarterly Payments"), in the third year after Effective Date of the Plan, the Debtor shall pay Quarterly Payments of $75,750.00 ("Year 3 Quarterly Payments"), in the fourth year after Effective Date of the Plan, the Debtor shall pay Quarterly Payments of $96,000.00 ("Year 4 Quarterly Payments"), and in year five after Effective Date of the Plan, the Debtor shall pay Quarterly Payments of $115,500.00 ("Year 5 Quarterly Payments"). The Quarterly Payments shall be first distributed to the holders of Claim 1, until paid in full, and subsequently to holders of Claims 2-3, and thereafter to holders of Claim 4. The Quarterly Payments shall also include a pro rata portion of the proceeds of any Avoidance Action, net of any attorneys' or other fees and expenses incurred in connection with the pursuit, settlement or collection of such proceeds. The Debtor and Trustee will request that, if this Plan is confirmed pursuant to Section 1191(b) of the Bankruptcy Code, the Debtor will make disbursals under the Plan. However, if such a request is denied, the Trustee shall be the disbursing agent. A full-text copy of the Plan of Reorganization dated February 18, 2025 is available at https://urlcurt.com/u?l=08961c from PacerMonitor.com at no charge. Counsel for the Debtor: Jeffery T. Martin, Jr., Esq. John E. Reid, Esq. Martin Law Group, P.C. 8065 Leesburg Pike, Suite 750 Vienna, VA 22182 Phone: 703-834-5550 Office Email: jeff@martinlawgroup.com jack@martinlawgroup.com About Solution Engineering for Reliable and Viable Enter Solution Engineering for Reliable and Viable Enter filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Col. Case No. 24-00390) on Nov. 18, 2024, listing $100,001 to $500,000 in assets and $1,000,001 to $10 million in liabilities. Judge Elizabeth L Gunn presides over the case. Jeffery T. Martin, Esq. at Martin Law Group, P.C., is the Debtor's counsel. STARLIGHT PARENT: S&P Assigns 'B' ICR on Leveraged Buyout --------------------------------------------------------- S&P Global Ratings assigned its 'B' issuer credit rating to IT management solutions provider Starlight Parent LLC (dba SolarWinds). S&P said, "We also assigned our 'B' issue-level and '3' recovery rating to the company's $200 million revolving credit facility and $2.225 billion first-lien term loan and a 'CCC+' issue-level and '6' recovery rating to its $525 million second-lien term loan. "The stable outlook reflects that while SolarWinds will be hampered by an increase in interest expense and vested restricted stock unit (RSU) payments, we expect it will be able to keep its business operations stable such that it can keep leverage below the mid-7x area and generate positive free operating cash flow (FOCF) over the next 12 months. "Even with an increase to its debt, we expect SolarWinds to keep leverage stable over the next couple of years. SolarWinds helps customers and organizations optimize and secure their IT infrastructure by offering solutions around network monitoring, systems management, security, and performance optimization. After the leveraged buyout acquisition, SolarWinds debt is expected to more than double. However, we believe SolarWinds can still manage its new capital structure." SolarWinds has continued to drive customers to its subscription revenue solutions from its perpetual/maintenance customer base. SolarWinds saw good demand for its subscription revenue to drive top-line growth to 4%-6% for year-end 2024. SolarWinds also has a strong cost structure in place, even with its transition to subscription revenue, leading to EBITDA margins in the mid-40% area for year-end 2024. S&P said, "While SolarWinds' leverage will start in the low-7x area at transaction close, we believe it will keep leverage stable over the next few years. To keep employees from leaving SolarWinds, it will begin paying out vested RSU cash payments starting in 2025. We treat vested RSU payments as an operating expense such that we expect the EBITDA base to grow as the RSU liability is reduced, given that the existing RSUs are not an adjustment we make to EBITDA, in contrast to noncash stock compensation. "We expect SolarWinds will continue to see stable growth prospects, driven by an updated business strategy that reduces churn and improves pricing power. The company will also be transitioning more customers to its subscription revenue products, which will drive more upfront revenue recognition. While we expect SolarWinds to see 11%-14% revenue growth in 2025, that is due to one-time accounting changes from the transition to subscription revenue. We expect SolarWinds will see normalized bookings growth of 7%-9% in 2025. "Even with its vested RSU cash payments, we expect SolarWinds to take out some costs related to being a public company that will keep EBITDA margins stable in the mid-40% area in 2025. That good top-line growth and stable EBITDA margins should help it improve leverage to the high-6x area as of year-end 2025. "In 2026, we expect higher RSU cash payments will hamper its EBITDA margins to the low-40% area. We also expect SolarWinds to capture 1%-3% revenue growth in 2026, as it captures most of its subscription revenue recognition in 2025 due to ASC-606. However, without the change in accounting revenue, we expect SolarWinds to see normalized bookings growth at 7%-9%. Even with these factors, we expect the company will keep leverage in the low-7x area for year-end 2026. "The stable outlook reflects that while SolarWinds will be hampered by an increase in interest expense and vested RSU payments, we expect it will keep its business operations stable such that it will sustain leverage below the mid-7x area and generate positive FOCF over the next 12 months. "We could lower our rating if we believe SolarWinds' will sustain leverage above the mid-7x area or FOCF to debt sustained below 3%. This could occur due to higher interest expense, continued restructuring or vested RSU cash payment costs, disruptions to business operations from sponsor sale or macroeconomic headwinds, or competitive pressures hampering SolarWinds financial performance. "While unlikely over the next 12 months, we could look to upgrade SolarWinds if it decreases its leverage below the 6x area through debt-funded acquisitions and generates FOCF/debt well above 5% after vested RSU cash payments. This could occur if SolarWinds continues to improve its top-line growth following the updates to its business strategy and improve EBITDA margins as one-time restructuring costs roll off. "Governance factors are a moderately negative consideration in our credit rating analysis of SolarWinds, as is the case for most rated entities owned by private-equity sponsors. We believe the company's highly leveraged financial risk profile points to corporate decision-making that prioritizes the interests of its controlling owners. This also reflects private-equity owners' generally finite holding periods and focus on maximizing shareholder returns." Environmental and social factors are neutral to S&P's analysis of SolarWinds. SUMMIT MATERIALS: S&P Withdraws 'BB+' Issuer Credit Rating ---------------------------------------------------------- S&P Global Ratings withdrew all our ratings on Summit Materials LLC, including its 'BB+' issuer credit rating, following the close of its acquisition by Quikrete and the full repayment of its outstanding rated debt. SUNNOVA ENERGY: Raises Going Concern Warning, Shares Plunge ----------------------------------------------------------- Mark Chediak and Will Wade of Bloomberg News report that Sunnova Energy International Inc. shares plummeted by up to 71% after the struggling solar company warned of significant uncertainty about its ability to remain in business. On Monday, March 4, 2025, the company reported that its cash flow is insufficient to meet obligations, leading to the suspension of financial guidance. "There is substantial doubt about our ability to continue as a going concern for at least the next year," Sunnova stated in its fourth-quarter earnings report. To mitigate the risk, management is pursuing strategies such as debt refinancing, securing additional financing, reducing costs, and adjusting dealer payment terms. About Sunnova Energy International Inc. Sunnova -- https://www.sunnova.com/ -- is a leading national residential solar company. SVB FINANCIAL: FDIC Directed to Face $1.9 Billion Lawsuit --------------------------------------------------------- Malathi Nayak of Bloomberg News reports that a federal judge in California has ruled that the Federal Deposit Insurance Corp. must face a lawsuit demanding the return of $1.93 billion it seized following Silicon Valley Bank's 2023 collapse. In a written decision Thursday, February 27, 2025, U.S. District Judge Beth Labson Freeman stated that the FDIC, which insures bank deposits, failed to adequately dispute claims that the funds belong to the bank's former parent, Silicon Valley Bank Financial Trust. The trust contends in its lawsuit that the FDIC's actions amount to "theft." About SVB Financial Group SVB Financial Group (Pink Sheets: SIVBQ) is a financial services company focusing on the innovation economy, offering financial products and services to clients across the United States and in key international markets. Prior to March 10, 2023, SVB Financial Group owned and operated Silicon Valley Bank, a state chartered bank. During the week of March 6, 2023, Silicon Valley Bank, Santa Clara, CA, experienced a severe "run-on-the-bank." On the morning of March 10, the California Department of Financial Protection and Innovation seized SVB and placed it under the receivership of the Federal Deposit Insurance Corporation. SVB was the nation's 16th largest bank and the biggest to fail since the 2008 financial meltdown. On March 17, 2023, SVB Financial Group sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 23-10367). The Debtor had assets of $19,679,000,000 and liabilities of $3,675,000,000 as of Dec. 31, 2022. The Hon. Martin Glenn is the bankruptcy judge. The Debtor tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Centerview Partners, LLC as investment banker; and Alvarez & Marsal North America, LLC as restructuring advisor. William Kosturos, a partner at Alvarez & Marsal, serves as the Debtor's chief restructuring officer. Kroll Restructuring Administration, LLC, is the claims and noticing agent and administrative advisor. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. The committee tapped Akin Gump Strauss Hauer & Feld, LLP as bankruptcy counsel; Cole Schotz P.C. as conflict counsel; Lazard Freres & Co. LLC as investment banker; and Berkeley Research Group, LLC as financial advisor. SWC INDUSTRIES: Hires Jones Day as Special Counsel -------------------------------------------------- SWC Industries LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of California to employ Jones Day as special counsel. The Debtor needs the firm's legal assistance in connection with: (i) ongoing insurance coverage litigation pending in Illinois federal court against certain Allianz/Fireman's Fund insurance companies with respect to Danly Machine asbestos bodily injury liability claims; (ii) the Luria/Newtown Creek EPA Liability Insurance Claims; (iii) the Yuba Asbestos Liability Insurance Claims; and (iv) the Danly Machine Asbestos Liability Insurance Claims. The firm will be paid at these rates: Partner $1,025 to $2,400 per hour Of Counsel $1,000 to $2,400 per hour Counsel $875 to $1,375 per hour Associate $525 to $1,350 per hour Legal Paraprofessional $300 to $675 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Edward M. Joyce, Esq., a partner of Jones Day, 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: Edward M. Joyce, Esq. Jones Day 222 East 41st Street New York, NY 10017-6702 Tel: (212) 326-3939 Fax: (212) 755-7306 Email: emjoyce@jonesday.com About SWC Industries LLC With principal operations in California and Massachusetts, SWC Industries LLC manufactures a range of innovative sealing and logistics equipment -- and offers related services -- that create efficiencies and reduce costs across multiple industries. In addition, the Company's San Diego-based business designs and develops a full suite of software designed to improve warehouse operations. SWC Industries LLC and 12 affiliates sought Chapter 11 protection (Bankr. N.D. Cal. Lead Case No. 24-51721) on Nov. 13, 2024. SWC listed assets and debt of $50 million to $100 million as of the bankruptcy filing. The Debtors tapped Allen Overy Shearman Sterling US LLP as lead restructuring counsel; Binder Malter Harris & Rome-Banks LLP as restructuring co-counsel and local counsel; Getzler Henrich & Associates LLC as financial advisor; and Gordian Group, LLC, as Investment banker. Stretto, Inc., is the claims agent. T & U INVESTMENTS: Hires Keery McCue PLLC as Counsel ---------------------------------------------------- T & U Investments, LLC seeks approval from the U.S. Bankruptcy Court for the District of Arizona to employ Keery McCue, PLLC as counsel. The firm's services include: a. preparing of pleadings and applications; b. advising the Debtor of its rights, duties, and obligation undxer Chapter 11 of the Bankruptcy Code; and c. taking any and all other The firm will be paid at $165 to 475 per hour. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Patrick Keery, Esq., an attorney at Keery McCue, 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 through: Martin J. McCue, Esq. Patrick F. Keery, Esq. Keery McCue, PLLC 6803 East Main Street, Suite 1116 Scottsdale, AZ 85251 Tel: (480) 478-0709 Fax: (480) 478-0787 Email: mjm@keerymccue.com pfk@keerymccue.com About T & U Investments, LLC T & U Investments, LLC is a Limited Liability Company registered in 1995 in the State of Arizona. Over the years, Debtor acquired many properties in Yuma, Tacna and Dateland. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No. 24-06816) on August 16, 2024, with as much as $50,000 in both assets and liabilities. Judge Scott H. Gan oversees the case. Scott M. Baker, Esq., at Scott Macmillan Baker, PC represents the Debtor as legal counsel. TAMPA BRASS: Gets Extension to Access Cash Collateral ----------------------------------------------------- Tampa Brass and Aluminum Corporation received another extension from the U.S. Bankruptcy Court for the Middle District of Florida to use cash collateral. The company was authorized to use cash collateral to pay current and necessary expenses set forth in its budget. Each creditor with a security interest in cash collateral will have a perfected post-petition lien on the cash collateral to the same extent and with the same validity and priority as its pre-bankruptcy lien. The next hearing is scheduled for March 24. About Tampa Brass and Aluminum Corporation Tampa Brass and Aluminum Corporation -- https://tampabrass.com/about/ -- is a supplier of cast machined parts for the commercial and defense industries. The company is based in Tampa, Fla. Tampa Brass and Aluminum filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 25-00105) on January 9, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and between $10 million and $50 million in liabilities. Judge Roberta A. Colton oversees the case. Scott A. Stichter, Esq., at Stichter, Riedel, Blain & Postler, P.A. represents the Debtor as legal counsel. The U.S. Trustee for Region 21 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. TBB DEEP: Gets Extension to Access Cash Collateral -------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, issued a second interim order authorizing TBB Deep Ellum, LLC's affiliates to use cash collateral to pay their operating expenses. The affiliates are TBB Boardwalk, LLC, TBB North Arlington, LLC, TBB Stockyards FW, LLC, TBB Coppell, LLC, and TBB Abilene, LLC. The court authorized the companies to use cash collateral in accordance with the budget, with an allowed variance of 5% per line item and 10% overall. Any creditor secured on the companies' inventory as of Feb. 6 will be granted a replacement lien on all cash or cash collateral acquired or generated by the companies as of Jan. 21, and on all assets of the companies to the same extent and priority as the creditor's pre-bankruptcy lien. All Texas trust fund taxes collected by the companies are not a part of their cash, proceeds or accounts receivable, do not form a part of any other secured creditor's collateral, and may not be used by the companies in their operations. The companies are not allowed to utilize the Texas tax trust funds for any purpose other than remittance to the Texas Comptroller of Public Accounts, according to the second interim order. A final hearing is scheduled for March 6. About TBB Deep Ellum TBB Deep Ellum, LLC operates as The Biscuit Bar and provides counter-service dining featuring biscuit sandwiches and full-bar service. The company operates from its location at 2550 Pacific Avenue in Dallas's Deep Ellum neighborhood. TBB Deep Ellum filed Chapter 11 petition (Bankr. D. Texas Case No. 25-30207) on January 21, 2025, listing between $50,000 and $100,000 in assets and between $1 million and $10 million in liabilities. Judge Michelle V. Larson handles the case. On February 12, 2025, the bankruptcy court ordered the joint administration of TBB Deep Ellum's case and the Chapter 11 cases filed by its affiliates on February 6, 2025. The affiliates are TBB Boardwalk, LLC, TBB North Arlington, LLC, TBB Stockyards FW, LLC, TBB Coppell, LLC, and TBB Abilene, LLC. Judge Michelle V. Larson oversees the cases. The Debtors' legal counsel is Thomas Berghman, Esq., at Munsch Hardt Kopf & Harr, P.C., in Dallas, Texas. Spectra Bank, as lender, is represented by: Jack M. Kuykendall, Esq. Law Offices of Jack M. Kuykendall 5048 Tennyson Parkway, Suite 250 Addison, TX 75001 Phone: 972-989-7140 Fax: 972-200-9933 Email: jmkesq@jmklaw.net TBB DEEP: Gets Final OK to Use Cash Collateral ---------------------------------------------- TBB Deep Ellum, LLC received final approval from the U.S. Bankruptcy Court for the District of Texas, Dallas Division, to use the cash collateral of Spectra Bank to pay its operating expenses. The final order signed by Judge Michelle Larson authorized the company to utilize its lender's cash collateral in accordance with its budget, with a 20% variance per line item and 15% overall variance. Spectra Bank will be granted a replacement lien on cash and cash collateral, which TBB acquires or generates as of the petition date, and on all assets of the company to the same extent and priority as its pre-bankruptcy lien. About TBB Deep Ellum TBB Deep Ellum, LLC operates as The Biscuit Bar and provides counter-service dining featuring biscuit sandwiches and full-bar service. The company operates from its location at 2550 Pacific Avenue in Dallas's Deep Ellum neighborhood. TBB Deep Ellum filed Chapter 11 petition (Bankr. D. Texas Case No. 25-30207) on January 21, 2025, listing between $50,000 and $100,000 in assets and between $1 million and $10 million in liabilities. Judge Michelle V. Larson handles the case. On February 12, 2025, the bankruptcy court ordered the joint administration of TBB Deep Ellum's case and the Chapter 11 cases filed by its affiliates on February 6, 2025. The affiliates are TBB Boardwalk, LLC, TBB North Arlington, LLC, TBB Stockyards FW, LLC, TBB Coppell, LLC, and TBB Abilene, LLC. Judge Michelle V. Larson oversees the cases. The Debtors' legal counsel is Thomas Berghman, Esq., at Munsch Hardt Kopf & Harr, P.C., in Dallas, Texas. Spectra Bank, as lender, is represented by: Jack M. Kuykendall, Esq. Law Offices of Jack M. Kuykendall 5048 Tennyson Parkway, Suite 250 Addison, TX 75001 Phone: 972-989-7140 Fax: 972-200-9933 Email: jmkesq@jmklaw.net TEAM HEALTH: Moody's Hikes CFR to 'Caa1', Outlook Stable -------------------------------------------------------- Moody's Ratings upgraded Team Health Holdings, Inc.'s Corporate Family Rating to Caa1 from Caa3 and Probability of Default Rating to Caa1-PD from Caa3-PD. Moody's also upgraded the instruments rating of the senior secured term loan B to Caa2 from Ca. The outlook is stable. The upgrade of Team Health's ratings reflect continued improvement in the company's operating performance and gradual deleveraging in recent quarters. The company has benefitted from business volume recovery, internal cost rationalization and success in resolving its payment disputes with commercial health insurance companies. Moody's expects that Team Health will operate with adjusted debt/EBITDA in the 7.5x-8.5x range over the next 12-18 months. RATINGS RATIONALE Team Health's Caa1 CFR reflects very high financial leverage, low albeit gradually improving EBITDA margin and free cash flow due to high debt service costs, and a challenging operating environment. Team Health has improved its operating performance in recent quarters after a difficult 2023 performance. The company continues to be in dispute with some commercial insurers. Team Health's liquidity is adequate. At the end of September 2024, the company had approximately $119 million in cash and Moody's expects that the company will generate positive free cash flow of $75-125 million (including cash conserved from paying up to $60 million interest in-kind) in the next 12 months. The company pays approximately 1% of its outstanding term loan, or $16 million annually. The company needs to reduce the balance on the senior secured term loan B below $500 million (currently around $1.4 billion) 91 days ahead of its March 2, 2027 maturity. Otherwise, the revolver expiring March 2028 (unrated), first lien notes due June 2028 (unrated) and second lien notes due January 2029 (unrated) will all spring forward to early-December 2026. The stable outlook reflects Moody's views that the likelihood of a default will remain a risk until Team Health is able to address the aforementioned refinancing concern (i.e., reduce its senior secured term loan balance below $500 million). The stable outlook also reflects Moody's expectations for the company to continue to moderately deleverage primarily through earnings growth. The company's senior secured term loan B is rated Caa2. The Caa2 instrument rating reflects limited and inferior quality of collateral support compared to what is available to the company's other tranches of debt (i.e., unrated revolver/1st lien notes/2nd lien notes). FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if the company's liquidity deteriorates or if free cash flow turns negative. Growing refinancing risk or an increase in the company's probability of default could also result in a ratings downgrade. The ratings could be upgraded if Team Health improves its operating performance and liquidity, deleverages below 7.5x, and reduces the probability of default. Progress toward successful refinancing of Term Loan B well ahead of December 2026 could also support ratings upgrade. Team Health Holdings, Inc., headquartered in Knoxville, TN, is a provider of physician staffing and administrative services to hospitals and other healthcare providers in the US Team Health Holdings, Inc. is owned by private equity investor Blackstone Inc. and its revenue for the 12 months ended on September 30, 2024 was approximately $5.8 billion. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. TEHUM CARE: Secures Court Okay for Chapter 11 Plan -------------------------------------------------- Ben Zigterman of Law360 Bankruptcy Authority reports that on March 3, 2025, Tehum Care Services received confirmation of its Chapter 11 plan, more than two years after the prison healthcare provider filed for bankruptcy and less than a year after a previous settlement was rejected. About Tehum Care Services Tehum Care Services Inc., doing business as Corizon Health Services Inc., is a privately held prison healthcare contractor in the United States. It is based in Brentwood, Tenn. Tehum Care Services filed a petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-90086) on Feb. 13, 2023. In the petition filed by Russell A. Perry, as chief restructuring officer, the Debtor reported assets between $1 million and $10 million and liabilities between $10 million and $50 million. Judge Christopher M. Lopez oversees the case. The Debtor tapped Gray Reed & McGraw, LLP as bankruptcy counsel; Bradley Arant Boult Cummings, LLP, as special litigation counsel; and Ankura Consulting Group, LLC, as financial advisor. Russell A. Perry, senior managing director at Ankura, serves as the Debtor's chief restructuring officer. Kurtzman Carson Consultants, LLC, is the claims, noticing and solicitation agent. The U.S. Trustee for Region 7 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. Stinson, LLP and Dundon Advisers, LLC, serve as the committee's legal counsel and financial advisor, respectively. TJC SPARTECH: Moody's Lowers CFR to 'Caa3', Outlook Negative ------------------------------------------------------------ Moody's Ratings downgraded TJC Spartech Acquisition Corp.'s (Spartech) corporate family rating two notches to Caa3 from Caa1, probability of default rating to Caa3-PD from Caa1-PD, and backed senior secured first lien bank credit facilities to Caa3 from Caa1. The outlook remains negative. Decreasing volumes, primarily due to industry-wide headwinds in the cyclical and discretionary end markets that Spartech serves, have further impeded operating results and liquidity as evidenced by the continuation of negative funds from operations. With interest coverage well below 1.0x and very high leverage, the risk of a debt restructuring has grown materially. The negative outlook reflects a deterioration of liquidity and insufficient volume improvement across Spartech's portfolio to improve credit quality. RATINGS RATIONALE Spartech's Caa3 CFR reflects the company's weak credit quality, including very high leverage that stood over 20x for the last 12 months that ended September 2024, weak interest coverage, and negative funds from operations. Volume declines across the company's portfolio, especially in products serving cyclical and discretionary end markets such as industrial, building materials, and automotive, have negatively affected operating results and cash flow generation. While market destocking has ended and Moody's expects some volume demand improvement moving forward, Moody's anticipates the impact to be insufficient to adequately improve credit quality. Therefore, Moody's forecast a high probabilities that it will be necessary for Spartech to take measures to address what Moody's deems as an unsustainable capital structure. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could downgrade the rating if there is an outright default, restructuring, or distressed exchange. Moody's could upgrade the rating if Spartech achieves a more sustainable capital structure. The company must also reduce reliance on the revolving credit facility to operate the business and attain at least adequate liquidity. Headquartered in Maryland Heights, MO, Spartech converts base polymers or resins into extruded plastic sheet, roll-stock, thermoformed packaging, specialty film laminates, and cast acrylic. Revenue for the last 12 months ended September 30, 2024 was $392 million. Spartech was carved out of chemical producer, Polyone, and is a portfolio company of The Jordan Company, L.P. since 2021. The principal methodology used in these ratings was Packaging Manufacturers: Metal, Glass and Plastic Containers published in December 2021. TONIX PHARMACEUTICALS: Regains Compliance With NASDAQ Listing Rule ------------------------------------------------------------------ Tonix Pharmaceuticals Holding Corp. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that it received a letter from The NASDAQ Stock Market LLC stating that because the Company's shares had a closing bid price at or above $1.00 per share for a minimum of 10 consecutive business days, the Company's stock had regained compliance with the minimum bid price requirement of $1.00 per share for continued listing on the NASDAQ Capital Market, as set forth in NASDAQ Listing Rule 5550(a)(2), and that the matter is now closed. About Tonix Pharmaceuticals Chatham, N.J.-based Tonix Pharmaceuticals Holding Corp., through its wholly owned subsidiary Tonix Pharmaceuticals, Inc., is a fully integrated biopharmaceutical company focused on developing and commercializing therapeutics to treat and prevent human disease and alleviate suffering. As of September 30, 2024, Tonix had $95 million in total assets, $20.8 million in total liabilities, and $74.2 million in total equity. Going Concern The Company cautioned in its Form 10-Q report for the quarter ended March 31, 2024, that there is substantial doubt about its ability to continue as a going concern. The Company has suffered recurring losses from operations and negative cash flows from operating activities. As of March 31, 2024, the Company had working capital of approximately $9.6 million and an accumulated deficit of approximately $615.6 million. The Company held cash and cash equivalents of approximately $7 million as of March 31, 2024. During the fourth quarter of 2023, the Company engaged CBRE, an international real estate brokerage firm, to potentially find a strategic partner for or buyer of its Advanced Development Center in North Dartmouth, Massachusetts, to align with its current business objectives and priorities. As of March 31, 2024, the Company does not have a commitment in place to sell the building. The Company believes that its cash resources at March 31, 2024, and the gross proceeds of $4.4 million raised from an equity offering in the second quarter of 2024, will not meet its operating and capital expenditure requirements through the second quarter of 2025. TRIPADVISOR INC:S&P Rates New $350MM Incremental Term Loan B 'BB-' ------------------------------------------------------------------ S&P Global Ratings assigned its 'BB-' issue-level rating and '2' recovery rating to Tripadvisor, Inc.'s proposed $350 million incremental Term Loan B due 2031. The '2' recovery rating indicates its expectation for substantial (70%-90%; rounded estimate: 75%) recovery for lenders in the event of a payment default. Tripadvisor plans to use the proceeds to refinance its $345 million convertible notes due 2026 and pay fees and expenses. The proposed transaction will improve the company's maturity profile and is credit neutral because the outstanding debt will not increase. However, our rounded estimate recovery on the company's senior secured debt has changed to 75% from 85% because of increased first-lien debt claims. S&P said, "Our 'B+' issuer credit rating and stable outlook on Tripadvisor remain unchanged. Our ratings reflect our expectation that Tripadvisor's leverage will likely remain in the mid-3x area in the next 12 months because of strategic investments in its Tripadvisor platform and its Experiences businesses and increased competition in the hotel metasearch business, which we believe will partially offset healthy online travel trends. We also expect Tripadvisor's acquisition of parent company Liberty TripAdvisor Holdings will close by the second quarter of 2025, which will simplify Tripadvisor's capital structure and provide it with more strategic flexibility as a non-controlled company." ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors: -- S&P has a 'BB-' issue-level rating and '2' recovery rating on the company's $850 million senior secured first-lien term loan pro forma for the transaction due 2031. The '2' recovery rating indicates its expectation for substantial (70%-90%, round estimate: 75%) recovery. -- S&P's simulated default scenario contemplates a default in 2029, stemming from a prolonged recession, increased competitive pressures, and reduced demand for metasearch-based travel advertising by online travel agencies (OTAs). -- S&P assumes lenders would maximize recovery and pursue a reorganization in a default scenario given the company's good global brand recognition. -- Tripadvisor's capital structure is comprised of a $500 million revolving credit facility due 2028 (not rated), a $500 million first-lien term loan due 2031, and the proposed $350 million incremental first-lien term loan due 2031. -- The revolving credit facility is secured by collateral comprising substantially all the company's domestic assets and a 65% stock pledge of the company's nonguarantor first-tier foreign subsidiaries and ranks pari passu with the first-lien term loan. -- S&P values Tripadvisor on a going-concern basis and apply a 6.5x EBITDA multiple to our estimate of its emergence EBITDA. -- All debt includes six months of prepetition interest. Simulated default assumptions: -- Simulated year of default: 2029 -- EBITDA at emergence: About $176 million -- EBITDA multiple: 6.5x -- Revolving credit facility: 85% drawn in the simulated default year Simplified waterfall: -- Net enterprise value (after 5% administrative costs and other priority claims): $963 million -- Senior secured claims: $1.276 billion -- Recovery expectation: 70%-90% (round estimate: 75%) TROLLMAN ENTERPRISES: Hires Five Star Real Estate as Realtor ------------------------------------------------------------ Trollman Enterprises Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of Michigan to employ Five Star Real Estate Realtor as realtor. The firm will market and sell the Debtor's real property located at 10005 Hartland Rd., Fenton, Michigan. The firm will be paid a commission of 3 percent of the purchase price of the property. Pakap Crist Dwin, owner of Five Star Real Estate Realtor, 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: Pakap Crist Dwin Five Star Real Estate Realtor 2417 Showtime Lansing, MI 48912 Tel: (517) 894-2641 About Trollman Enterprises Inc. Trollman Enterprises, LLC filed Chapter 11 petition (Bankr. E.D. Mich. Case No. 24-32448) on December 30, 2024. In its petition, the Debtor reported assets between $500,000 and $1 million and liabilities between $100,000 and $500,000. Judge Joel D. Applebaum handles the case. The Debtor is represented by George E. Jacobs, Esq., at Bankruptcy Law Offices. TSB VENTURES: Hires Anders Minkler Huber as Accountant ------------------------------------------------------ TSB Ventures, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Louisiana to employ Anders Minkler Huber & Helm LLP d/b/a Anders CPAs + Advisors as accountant. The firm will provide the Debtor with tax and accounting services for the Debtor which may be necessary, including, but not limited to the filing of annual state and federal tax returns, preparation of monthly operating reports, and periodic reports regarding controlled entities. The firm will be paid at these rates: Derek A. Barnard $400 per hour Support Staff $245 to $135 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The firm was owed by the Debtor the amount of $1,800. Derek A. Barnard, CPA, CEPA, a partner at Anders Minkler Huber & Helm LLP d/b/a Anders CPAs + Advisors, 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: Derek A. Barnard, CPA, CEPA Anders Minkler Huber & Helm LLP d/b/a Anders CPAs + Advisors 800 Market Street, Suite 500 St. Louis, MO 63101-2501 About TSB Ventures, LLC TSB Ventures, LLC operates as a securities and commodity contracts intermediation firm headquartered in Baton Rouge, LA. TSB Ventures sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 25-10117) on January 20, 2025, with $1 million to $10 million in both assets and liabilities. Judge Meredith S. Grabill handles the case. The Debtor is represented by: Ryan James Richmond, Esq. Sternberg, Naccari & White, LLC 450 Laurel Street, Suite 1450 Baton Rouge, LA 70801 Tel: (225) 412-3667 Fax: (225) 286-3046 Email: ryan@snw.law UNION COLONY: Moody's Affirms 'Ba2' Revenue Bond Rating ------------------------------------------------------- Moody's Ratings has affirmed Union Colony Schools, CO's Ba2 revenue bond rating. The outlook is stable. The charter school has approximately $17.3 million in outstanding revenue debt. RATINGS RATIONALE The Ba2 rating balances the charter school's relatively small operating scale, and fairly weak competitive considerations given recent material declines in student enrollment that appear to be stabilizing in fiscal 2025. Despite revenue challenges brought about by the enrollment trends, the school's financial performance is currently healthy as spendable liquidity levels are sound and annual debt service coverage equaled a solid 2.0x in fiscal 2024. Moody's credit views also reflects the school's above average leverage but low charter renewal risk given its comparatively long operating history that includes several charter renewals, including its current charter that is authorized through fiscal 2031. RATING OUTLOOK The stable outlook reflects the charter school's recent progress in improving its annual operating margins, despite weak enrollment trends. This progress has contributed to a healthy financial position, as demonstrated by its days cash on hand and strengthened annual debt service coverage. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING -- Improved market demand profile as demonstrated by enrollment gains and increased student waitlist -- Sustained revenue growth that reduces the charter school's fixed cost burden and improves operational flexibility -- Maintenance of days cash on hand above 200 days and annual debt service coverage above 1.5x -- Material reduction in the charter school's leverage ratios FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING -- Further declines in student enrollment or falling academic performance scores -- Narrowed operating margins resulting in decreases to annual debt service coverage -- Sustained reductions to days cash on hand -- Material increases to the charter school's leverage ratios LEGAL SECURITY The charter school's outstanding Series 2018 bonds are secured by Loan and Security Agreements between the Colorado Educational and Cultural Facilities Authority and the Union Colony Charter School Building Corporation, a nonprofit corporation, which served as borrower, owner, and lessor under the Lease Agreement. The borrower leases the facilities to Union Colony Schools. Bond repayments are secured by the gross revenues of the Building Corporation, which consist primarily of the school's rental payments under the lease agreement, and a mortgage interest in the school site. Notable bond covenants include the maintenance of a 1.2x debt service coverage ratio unless days cash on hand is above 75 days making the coverage ratio requirement 1.1x. The school also covenants that it will maintain days cash on hand of at least 45 days. A debt service reserve fund is funded at MADS. The bonds are further secured by the state's Charter Intercept Statute, under which the state treasurer makes debt service payments directly to the trustee from the school's per pupil revenue (PPR) allocation. The intercept provides protection against liquidity issues or administrative error at the school level, but it does not protect against a shortfall in per pupil revenue due to a decline in enrollment or the termination of the school's charter. PROFILE Union Colony Schools is a non-profit charter school incorporated on December 8, 2006. The school operates two facilities providing kindergarten through 12th grade education to approximately 675 students. Union Colony Schools is authorized by the Weld County School District 6 (Greeley-Evans) (Aa3) and its current charter expires on June 30, 2031. METHODOLOGY The principal methodology used in this rating was US Charter Schools published in April 2024. UNITY MINES: Case Summary & 10 Unsecured Creditors -------------------------------------------------- Debtor: Unity Mines LLC 102 Lee Valley Road Derry, PA 15627 Business Description: Unity Mines LLC, located in Derry, Pennsylvania, is a mining company with properties in Westmoreland County. Chapter 11 Petition Date: March 2, 2025 Court: United States Bankruptcy Court Western District of Pennsylvania Case No.: 25-20520 Judge: Hon. Carlota M Bohm Debtor's Counsel: David Z. Valencik, Esq. CALAIARO VALENCIK 555 Grant Street, Suite 300 Pittsburgh, PA 15219 Tel: 412-232-0930 Fax: 412-232-3858 Email: dvalencik@c-vlaw.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Bozhena Basmanov as authorized representative. A full-text copy of the petition, which includes a list of the Debtor's 10 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/PWTIHSI/Unity_Mines_LLC__pawbke-25-20520__0001.0.pdf?mcid=tGE4TAMA URBAN CHESTNUT: Hearing Today on Bid to Use Cash Collateral ----------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Missouri, Eastern Division is set to hold a hearing today to consider another extension of Urban Chestnut Brewing Company, Inc.'s authority to use cash collateral. The court's previous interim order issued on Feb. 24 allowed the company to use cash collateral until March 7 to pay up to $398,524 in expenses. The Feb. 24 order granted Midland States Bank and the U.S. Small Business Administration protection in the form of a replacement lien on the company's post-petition assets. It also ordered the payment of $1,030 to SBA. About Urban Chestnut Brewing Company Urban Chestnut Brewing Co. is a brewer of craft beer in Saint Louis, Mo., which specializes in German beer and lagers with a variety of beer styles from IPAs to weissbiers. Urban Chestnut sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mo. Case No. 24-43233} on Sept. 6, 2024, listing between $1 million and $10 million in both assets and liabilities. David M. Wolfe, president of Urban Chestnut, signed the petition. Judge Brian C. Walsh oversees the case. Spencer P. Desai, Esq., at The Desai Law Firm, LLC is the Debtor's bankruptcy counsel. Midland States Bank, as secured creditor, is represented by: Erin M. Edelman, Esq. Armstrong Teasdale, LLP 7700 Forsyth Blvd., Suite 1800 St. Louis, MO 63105 Phone: 314.621.5070 Fax: 314.621.5065 eedelman@atllp.com USA COMPRESSION: Moody's Ups CFR to Ba3 & Alters Outlook to Stable ------------------------------------------------------------------ Moody's Ratings upgraded the ratings of USA Compression Partners, LP (USAC), including its Corporate Family Rating to Ba3 from B1, Probability of Default Rating to Ba3-PD from B1-PD and senior unsecured notes ratings to B1 from B2. The Speculative Grade Liquidity Rating (SGL) remains unchanged at SGL-3. The outlook is changed to stable from positive. "The upgrade in USAC's credit ratings reflects the improvement in its profitability and debt leverage," commented John Thieroff, Moody's Ratings Vice President and Senior Credit Officer. "Moderating capital spending in 2025 should allow the company to approach cash flow breakeven and maintain leverage in the low 4x range." RATINGS RATIONALE The upgrade of USAC's CFR reflects strong operating performance, improving credit metrics and favorable industry fundamentals in the company's US markets. Growing natural gas demand and the greater need for compression as key shale basins mature bode well for continued growth. Increasing gas to oil ratios -- particularly in the Permian Basin, where USAC has extensive operations and strong oil prices continue to drive high activity levels – add to the company's tailwinds. The company intends to continue to opportunistically build new large horsepower (HP) units but Moody's expects this activity to be funded largely within cash flow after years of materially outspending cash flow. USAC will continue to benefit from favorable pricing dynamics and strong utilization rates, which have been above 90% since early 2023 and will likely remain well above that level due to strong demand, particularly for large HP units. Consistent EBITDA growth and less reliance on debt to fund capital spending has allowed the company to reduce its leverage, which Moody's expects will remain between 4.0x and 4.5x, including Moody's standard adjustments. USAC benefits from the extensive scale of its high horsepower (HP) compression fleet and the diverse geographic reach over which it is deployed. More than 75% of USAC's 3.86 million active HP fleet is advantageously comprised of high HP compression (exceeding 1,000 HP per unit). A fee-based contractual revenue stream produces stable gross margins that have consistently exceeded 60%. The company's long-term relationships with its high credit quality customer base, with whom it typically has fee-based contracts, and the burdensome cost to the customer associated with returning equipment provides stability and adds to the stickiness of revenue. The rating is constrained by exposure to volatile commodity prices, short-term contracts, meaningful debt levels and limited free cash flow generation in favorable market conditions. USAC's senior notes are rated B1, one notch below the Ba3 CFR, reflecting the unsecured debt's junior position relative to the partnership's senior secured ABL revolving credit facility. The notes are unsecured and guaranteed by substantially all of USAC's domestic subsidiaries. USAC's SGL-3 Speculative Grade Liquidity Rating reflects adequate liquidity through mid-2026 and is principally supported by its $1.6 billion secured ABL revolving credit facility. At year-end 2024, USAC had $783 million available borrowing capacity under the revolver which should comfortably cover capital needs in excess of cash flow. Reduced growth spending in 2025 should allow the company to approach cash flow breakeven, something it has not historically done. Covenants under the credit facility require maintenance of a minimum of 2.5x interest coverage and maximums of 5.25x debt/EBITDA and 3.0x secured indebtedness/EBITDA, which Moody's expects USAC to remain in compliance through mid-2026. Distribution coverage should remain adequate at around 1.5x; USAC's ability to pay distributions is subject to compliance with its financial covenants and if after giving effect to the distribution, the company has availability under its revolver of at least $100 million. USAC's next notes maturity is in 2027; the revolver expires in December 2026. The stable outlook reflects Moody's expectations that USAC will continue to grow its earnings while largely spending within cash flow and maintain credit metrics supportive of its credit rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS USAC's ratings could be upgraded if the firm focuses on debt reduction and de-levers such that it is expected to maintain Debt/EBITDA below 3.5x in a mid-cycle earnings scenario while generating consistent positive free cash flow and adhering to conservative financial policies. A downgrade is possible if USAC's leverage rises above 4.5x or distribution coverage falls below 1x on a sustained basis. USA Compression Partners, LP, headquartered in Dallas, Texas, is a publicly traded partnership providing compression services to the domestic natural gas industry. Energy Transfer LP (Baa2 stable) holds the non-economic general partnership interest in USAC as well as 39% of its common units. The principal methodology used in these ratings was Oilfield Services published in January 2023. VERRICA PHARMACEUTICALS: Enters Waiver to OrbiMed Credit Agreement ------------------------------------------------------------------ Verrica Pharmaceuticals, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that it entered into a waiver to its Credit Agreement dated as of July 26, 2023, by and between the Company, as borrower, OrbiMed Royalty & Credit Opportunities IV, LP, as a lender, each other lender that may from time to time become a party thereto, and OrbiMed, as administrative agent for the lenders. Pursuant to the Waiver, the lenders waived specified covenants under the Credit Agreement, including the requirements under Section 7.1(b) and Section 7.1(c) of the Credit Agreement that there be no "going concern" qualification with respect to the financial statements for the year ended December 31, 2024 and the quarter ending March 31, 2025. Except as set forth in the Waiver, the remaining terms of the Credit Agreement remain unchanged. About Verrica Pharmaceuticals West Chester, Pa.-based Verrica Pharmaceuticals Inc. is a dermatology therapeutics company developing and selling medications for skin diseases requiring medical intervention. As of March 31, 2024, the Company had $66.3 million in total assets, $64.8 million in total liabilities, and $1.5 million in total stockholders' equity. Going Concern The Company cautioned in Form 10-Q Report for the quarterly period ended March 31, 2024, that substantial doubt exists about its ability to continue as a going concern. The Company has incurred substantial operating losses since inception and expects to continue to incur significant losses for the foreseeable future and may never become profitable. As of March 31, 2024, the Company had an accumulated deficit of $250.8 million. For the three months ended March 31, 2024, and 2023, the Company reported net losses of $20.3 million and $6.6 million, respectively. The Company plans to secure additional capital in the future through equity or debt financings, partnerships, or other sources to carry out its planned commercial and development activities. If the Company is unable to raise capital when needed or on attractive terms, it would be forced to delay, reduce, or eliminate its future commercialization efforts or research and development programs. VICTORIA'S SECRET: Moody's Alters Outlook on 'Ba3' CFR to Stable ---------------------------------------------------------------- Moody's Ratings changed Victoria's Secret & Co.'s (VS) outlook to stable from negative. At the same time, Moody's affirmed all ratings including the Ba3 corporate family rating, Ba3-PD probability of default rating, Ba2 senior secured bank credit facility rating and B1 senior unsecured notes rating. The company's speculative grade liquidity rating (SGL) remains unchanged at SGL-2. "The change in outlook to stable reflects the improvement in the company's operating performance with topline trends improving in all merchandise categories in the last couple of quarters and Moody's expects this trend to continue in the fourth quarter despite a tough consumer environment", Moody's Ratings Vice President Mickey Chadha stated. "Moody's expects the company to maintain lease adjusted leverage at around 2.7x over the next 12 months", Chadha further stated. RATINGS RATIONALE VS' Ba3 corporate family rating is supported by the company's solid market position as a leading intimates apparel retailer through its Victoria's Secret brand ("Victoria's Secret") and PINK brand, its formidable beauty business and its good liquidity. The company continues to implement strategic initiatives to improve its operational performance which has required the rationalization of its fleet, addressing its assortments and imagery, remodeling to improve store presentation and reducing costs. The company has also expanded its third party product assortment. VS' rating is also supported by its conservative capital structure and good liquidity. VS has also grown its e-commerce business rapidly and in December 2022 acquired an intimate apparel company called Adore Me which primarily sells its products online powered by a proprietary technology platform. Adore Me has a younger customer base with over a million active customers. The company's operating performance has improved as topline trends are now positive across all merchandise categories as the company had successful new product launches and has improved assortment at its PINK brand. The company expects net sales to grow 3%-4% in the fourth quarter which is better than the previous expectation of 2%-3% growth. Moody's expects credit metrics to improve in 2025 with debt/EBITDA and EBIT/Interest expected to be around 2.7x and 2.4x respectively in the next 12 months. The company's rating is constrained by its narrow product focus which has a significant fashion element which can lead to earnings volatility. The stable outlook reflects Moody's expectations that operating performance and credit metrics will continue to improve and liquidity will remain very good. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be upgraded to the extent the company continues to post consistent sales and operating earnings growth while maintaining good liquidity. An upgrade would require a conservative and clearly articulated financial strategy. Quantitatively, an upgrade would require operating margins sustained in excess of 10%, Moody's Ratings adjusted EBITA/interest sustained above 3.0x and debt/EBITDA sustained below 2.25x. Ratings could be downgraded if liquidity deteriorates for any reason or financial strategies become more aggressive. Ratings could also be downgraded if revenue and operating profit does not improve. Quantitatively, ratings would be downgraded should Moody's Ratings adjusted debt/EBITDA remain above 3.25x or EBITA/interest is sustained below 2.25x. Headquartered in Reynoldsburg, Ohio, Victoria's Secret & Co. is a specialty retailer of women's lingerie, other apparel, personal care and beauty products through its global retail stores. VS operates 813 stores in North America with 492 stores outside North America. The company also has 69 stores in a joint venture in China and 6 Adore Me stores. Products are sold under two leading two brands, Victoria's Secret and PINK. Its beauty products business comprises about 20% of its net sales. Revenue was about $6.2 billion for the twelve months ended November 2, 2024. The principal methodology used in these ratings was Retail and Apparel published in November 2023. VISION2SYSTEMS LLC: Hires Spencer Fane LLP as Legal Counsel ----------------------------------------------------------- Vision2systems LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Spencer Fane LLP to handle its Chapter 11 case. The firm will be paid at these rates: Partners $400 to $1,650 per hour Counsels $295 to $1,010 per hour Associates $290 to $675 per hour Legal assistants/paralegals $140 to $450 per hour The Debtor retained the firm on January 16, 2025, and paid a retainer on January 21, 2025 in the amount of $150,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Jason P. Kathman, Esq., a partner at Spencer Fane 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: Jason P. Kathman, Esq. Megan F. Clontz, Esq. Spencer Fane LLP 5700 Granite Parkway, Suite 650 Plano, TX 75024 Tel: (972) 324-0300 Fax: (972) 324-0301 Email: jkathman@spencerfane.com mclontz@spencerfane.com About Vision2systems LLC Vision2Systems LLC founded in 2012, is a software company based in Dallas, Texas, that provides online giving and membership management platforms tailored for churches. The platform offers solutions for accounting, donations, event planning, and overall church management. Vision2Systems LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40583) on February 19, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Jason P. Kathman, Esq., at SPENCER FANE. WAGNER COLLEGE: Fitch Lowers IDR to 'BB', Outlook Negative ---------------------------------------------------------- Fitch Ratings has downgraded Wagner College, NY's Issuer Default Rating (IDR) and approximately $116 million of Dormitory Authority of the State of New York bonds, Series 2022, issued on behalf of Wagner, to 'BB' from 'BBB-'. The Rating Outlook is Negative. Entity/Debt Rating Prior ----------- ------ ----- Wagner College (NY) LT IDR BB Downgrade BBB- Wagner College (NY) /General Revenues/1 LT LT BB Downgrade BBB- The downgrade to 'BB' from 'BBB-' reflects a significant decline in Wagner's operating performance, reflected in its $18 million operating loss in fiscal 2024 (unaudited). This loss was well below budget expectations and a meaningful decline from the approximately $7 million loss in fiscal 2023. The losses were driven by decreased revenues, including student fee revenue from increased discounting and reduced gifts and contributions, alongside increased expenses largely driven by personnel costs for instruction key program support. Persistent deficits projected through fiscal 2027, as Wagner executes various programmatic and operational plans, have effectively reduced its financial flexibility to a level inconsistent with a 'BBB-' rating. These operating pressures are exacerbated by Wagner's elevated debt burden, resulting from a 2022 refinancing that provided some near-term debt service relief and eliminated variable rate risk but also added debt. The Negative Outlook reflects the expectation for continued operating losses that, while easing in magnitude, will rely on successful execution of Wagner's key strategic plans. These include modest growth in graduate student enrollment and potential asset monetization. Where necessary, Wagner continues to make investments in key programmatic growth areas, while also identifying and reducing its underperforming programs. Capital needs are very modest, but Wagner will need to improve its operating cash flows to support its first full debt service payments starting in 2026 (1.1x annual coverage covenant). SECURITY The bonds are a general obligation of the college payable from any legally available funds. The bonds are secured by a gross pledge of the college's unrestricted revenues. In addition, there is a negative mortgage pledge in place. KEY RATING DRIVERS Revenue Defensibility - 'bbb' Moderate Demand and Enrollment Recovery from Program Expansion Wagner's revenue defensibility is driven by generally moderate demand indicators, including limited freshman selectivity and matriculation rates of approximately 88% and 20%, respectively, with limited prospects for tuition increases. Freshman-to-sophomore retention remains strong at 84%. The expansion of revenue-accretive programs at both the undergraduate and graduate levels could counter demographic pressures in the wider region and support near-term net tuition growth despite higher discounting. Overall enrollment has shown signs of stabilizing, with its largest incoming freshman class size of 454 students, the largest since fall 2017. Applications for the upcoming academic year have risen by approximately 20% compared to fall 2024; however, cash deposits have decreased by about 35% (65 current deposits compared to 100 the previous year). Wagner has shown signs of stabilized undergraduate and international enrollment and a gradual return to matriculation rates near 22%. However, graduate enrollment continued to decline, falling just below 2% in fall 2024 (fiscal 2025) on a headcount basis. The new president has expressed plans to enhance Wagner's graduate program to develop it into more of a master's comprehensive institution. Fitch expects Wagner's total enrollment to grow at a modest to moderate pace beyond fiscal 2024, driven by the introduction of new undergraduate and graduate programs in health sciences, business, and its highly regarded arts department. Wagner has an endowment of about $118 million, providing sustainable support for its operating needs. However, there is a heightened risk that Wagner may need to rely on endowment support unsustainably to bridge substantial operational shortfalls in the coming years. Wagner's steady increase in fundraising activities bolsters its overall financial health and operational continuity. However, gifts and contributions remain a relatively limited contributor to unrestricted operating revenue, accounting for about 3% of the total in fiscal 2024 (unaudited). Management plans to begin strategic planning for fundraising and to leverage this untapped opportunity in the summer of fiscal 2026. Operating Risk - 'bb' Consistent and Very Weak Operating Performance Expected to Continue; Material Capital Needs Fitch's Operating Risk assessment has been downgraded to 'bb' from 'bbb', reflecting a diminishing capacity for operating flexibility due to a shrinking revenue base and reliance on balance sheet draws to cover increasing losses. Wagner's adjusted operating loss in fiscal 2024 (unaudited) exceeded $17.7 million (as calculated by Fitch), representing approximately 26% of total unrestricted revenues. This loss significantly increased from the fiscal 2023 loss of approximately $6.8 million and greatly surpassed Fitch's expectations. This steep, albeit anticipated, deficit resulted in a cash flow margin of negative 10.6% and a debt service coverage ratio of negative 1.5x (as calculated by Fitch, which differs from the covenant calculation), while Available Funds (AF) remained flat. Allocating funds to develop new academic programs and enhancing facilities is expected to constrain margin expansion in the near term but could improve financial outcomes in the longer term. A high degree of turnover within Wagner's leadership team has likely hindered strategic plan execution over the past five years. However, the current team has been in place for about 11 months, although some key roles remain vacant. Recently renovated dormitories are fully occupied and are generating additional revenue. Significant capital expenditures over the past few years have been allocated to key facilities renovations to support strategically important educational programs. Most of these projects were financed through the issuance of bonds in 2022, supplemented by a relatively modest level of philanthropy. Looking ahead to fiscal year 2027 and beyond, Fitch expects cash flow margins to recover to levels between 5%-10%, with no plans for additional debt. Financial Profile - 'bb' Weakened Leverage Profile; Trajectory is Dependent on Plan Execution Fitch's Financial Profile assessment has been downgraded to 'bb' from 'bbb'. Wagner's 'bb' financial profile assessment reflects a strain on the college's leverage profile, but with the flexibility to meet financial commitments in the base case. Wagner's leverage is at a recent high, with AF-to-adjusted debt (Fitch defines AF as cash and investments less permanently restricted net assets) at just 47% reported for fiscal 2024 (unaudited). The assessment indicates Wagner is expected to maintain its AF levels, which were about $57 million at the end of fiscal year 2024 (unaudited), with some market appreciation anticipated in the current fiscal year and no plans for additional debt. Wagner's debt consists of approximately $110 million in fixed-rate bonded debt, with no variable rate exposure. Fitch expects leverage levels will be pressured in the immediate term and considers Wagner's financial flexibility will be vulnerable to market and operating conditions in its stress scenario. Wagner's fixed-rate bonds mature in 2052, with principal deferral and capitalized interest until 2025. Fitch anticipates that the college will experience significant pressures as it undergoes changes over the next three to five years. These changes are inconsistent with the current rating and remain vulnerable to execution risk regarding its growth strategy. Wagner's Series 2022 bonds require the college to maintain a debt service coverage ratio of 1.1x from available net revenues, which Fitch expects the college to meet. Additionally, the college has the added flexibility of capitalized interest and deferral of principal payments until fiscal 2025. Asymmetric Additional Risk Considerations Fitch has assigned an asymmetric additional risk consideration to its Operating Risk assessment, due to a consistent and persistent mismatch in revenue and expenditure growth rates over time, which have translated into increasing negative margins. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Failure to increase enrollment and student-generated revenues starting in fiscal 2026 and thereafter; - An ongoing trend of cash flow margins below 5%, which may pressure debt service coverage going forward; - Elevated endowment draws necessary to support operating margins beyond fiscal 2025; - Deterioration of balance sheet metrics, with AF-to-adjusted debt consistently below 35%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A clear trend of enrollment growth which supports moderate growth in student-generated revenues beyond fiscal 2025; - Improved cash flow, resulting in margins consistently exceeding 10%-15%; - Successful development of non-student dependent revenue sources could support a stronger revenue defensibility assessment and higher rating; - Stronger balance sheet metrics, with a sustained level of AF to adjusted debt in excess of 90%. PROFILE Wagner College, established in 1883, has been located in Staten Island, NY location since 1918. Recently, the full-time equivalent (FTE) student enrollment has been consistent, with a 5% increase to 1,917 FTE students in the fall of 2024 (fiscal 2025), with approximately 84% pursuing undergraduate degrees. Wagner College inaugurated its 21st president, Dr. Jeffrey A. Doggett, on July 1, 2024. Dr. Doggett joins Wagner after a significant tenure at Merrimack College, a Catholic Augustinian institution, where he held several key positions, including Executive Vice President - Chief Financial Officer and Chancellor of Learning and Student Success. The institution is committed to delivering a practice-oriented education within a residential college setting, where a majority of the undergraduates engage in full-time studies and live on the expansive 105-acre campus. The college's most prominent graduate programs are in the fields of education, business, and nursing. Fully accredited by the Middle States Commission on Higher Education, Wagner College is currently in the self-study stage of its 10-year accreditation cycle. Sources of Information In addition to the sources of information identified in Fitch's applicable criteria specified below, this action was informed by information from Lumesis. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. WESTERN ALLIANCE: Moody's Ups Issuer & Subordinate Ratings From Ba1 ------------------------------------------------------------------- Moody's Ratings has upgraded the following ratings and assessments of Western Alliance Bancorporation and its subsidiaries, including Western Alliance Bank and Western Alliance Trust Company, N.A., collectively referred to as "Western Alliance", by one notch: Western Alliance Bancorporation's long-term issuer and subordinate local currency ratings to Baa3 from Ba1, preferred stock non-cumulative local currency rating to Ba2 (hyb) from Ba3 (hyb); Western Alliance Bank's long-term issuer and subordinate local currency ratings to Baa3 from Ba1, long-term and short-term local and foreign currency Counterparty Risk Ratings to Baa2/Prime-2 from Baa3/Prime-3, long-term local currency bank deposit rating to A3 from Baa1, long-term Counterparty Risk Assessment to Baa1(cr) from Baa2(cr), and the baseline credit assessment (BCA) and adjusted BCA to baa2 from baa3; Western Alliance Trust Company, N.A.'s BCA and adjusted BCA to baa2 from baa3, long-term and short-term local and foreign currency Counterparty Risk Ratings to Baa2/Prime-2 from Baa3/Prime-3, long-term Counterparty Risk Assessment to Baa1(cr) from Baa2(cr) and long-term local currency issuer rating to Baa3 from Ba1. At the same time, Moody's affirmed Western Alliance Bank's and Western Alliance Trust Company, N.A.'s short-term Counterparty Risk Assessments at Prime-2(cr), as well as Western Alliance Bank's short-term local currency bank deposit rating at Prime-2. The outlooks on the long-term local currency bank deposit and issuer ratings of Western Alliance Bank, as well as the outlooks on the long-term local currency issuer rating of Western Alliance Bancorporation and on the long-term local currency issuer rating of Western Alliance Trust Company, N.A. were changed to stable from positive. RATINGS RATIONALE The upgrade of Western Alliance's ratings reflects credit positive enhancements to the firm's financial strategy and risk management that Moody's expects will endure. Specifically, over the past two years, Western Alliance has substantially slowed its pace of loan growth, improved its capital and liquidity positions, and meaningfully strengthened its risk infrastructure, policies and procedures. These enhancements make it far less likely that Western Alliance would once again face outsized funding and liquidity challenges in a period of broad banking industry stress, as it did in the immediate wake of multiple regional bank failures in early 2023. Indeed, as measured by its Moody's Ratings-adjusted tangible common equity (TCE)/risk-weighted assets (RWA) ratio, Western Alliance's capitalization has grown to 11.2% at September 30, 2024 from 9.3% at December 31, 2022. Over the same period, its Moody's Ratings-calculated ratio of liquid banking assets/tangible banking assets grew to 21.8% from 12.4%. Meanwhile, Western Alliance's deposit gathering initiatives and slower pace of loan growth have lowered its loan to deposit ratio, materially reducing its reliance on market funds. In addition, Western Alliance's earnings have remained respectable, though the firm's expenses and cost/income ratio have risen, in part due to expense associated with the build-out of its risk infrastructure. Notwithstanding Western Alliance's improved risk mitigants and overall credit profile, it continues to face credit risks associated with its substantial concentration in commercial real estate (CRE) loans, particularly office, where it primarily focuses on suburban shorter-term bridge loans for property repositioning or redevelopment. CRE loans represent 2.4x Western Alliance's tangible common equity (TCE) on a Moody's Ratings-adjusted basis at September 30, 2024. Given the challenges facing the office sector and CRE markets in general, it is not surprising that Western Alliance's credit costs and problem loan levels have risen, but Moody's expects them to be manageable in the context of the firm's earnings. Western Alliance's firmwide annualized net charge-off rate was moderate at 25 basis points of total loans in Q4 2024 and Moody's ratings incorporate the possibility that credit costs could rise somewhat further. In addition to the upgrade of Western Alliance's ratings, its improved risk infrastructure and risk governance resulted in its ESG Credit Impact Score being raised to CIS-3 from CIS-4. Moody's expectation is that Western Alliance's risk framework will continue to strengthen as it makes further investments in order to comply with the regulatory requirements of being a Category IV bank, a threshold it is likely to reach organically within the next two to three years. Still, Western Alliance's CIS-3 indicates the potential for some negative impact from ESG considerations over time. The most prominent of these risks arise from Western Alliance's CRE concentration and the fact that its risk management enhancements are not yet complete. Nonetheless, Moody's favorably adjusted Western Alliance's governance issuer profile score to G-3 from G-4. The stable outlook reflects Moody's views that while capital will remain within target levels, Western Alliance's meaningful risk governance enhancements, as well as its depositor diversification strategy, remain subject to further development. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Western Alliance's ratings could be further upgraded if its CRE credit costs do not rise materially, even in a more challenging economic environment, if it continues to enhance its risk governance, if its capitalization as measured by Moody's Ratings TCE to RWA ratio continues to exceed 11.0% throughout the cycle and if it further strengthens its deposit franchise such that the granularity of its deposit base continues to improve. Sustained improvement in profitability could also support positive rating pressure. Western Alliance's ratings could be downgraded if its capital as measured by TCE/RWA moves back below 11.0%, if its liquidity weakens from current levels, if its CRE credit costs rise substantially or if Moody's believes that its risk appetite has become more aggressive, which would most likely be observed by loan growth that noticeably exceeds deposit growth. The principal methodology used in these ratings was Banks published in November 2024. WEX INC: Moody's Affirms 'Ba2' CFR, Outlook Stable -------------------------------------------------- Moody's Ratings has affirmed WEX Inc.'s (WEX) Ba2 long-term corporate family rating and its Ba2 backed senior secured bank credit facility rating. Moody's also assigned a Ba2 rating to WEX's proposed $500 million senior secured term loan B and assigned a B1 rating to WEX's proposed $500 million senior unsecured notes. WEX's outlook remains stable. WEX plans to use the net proceeds from the new debt issuances to repurchase shares and paydown a portion of its revolving credit facility. RATINGS RATIONALE The ratings affirmation reflects the benefits of WEX's scaled and diversified portfolio of technology-driven payments solutions and consumer-directed benefits businesses. The company's three segments - Mobility, Corporate Payments and Benefits - have solid competitive positions and generate good profitability and strong cash flows. Moody's expects that WEX will maintain solid and stable long-term growth in each of its segments, with the possibility of natural fluctuations in performance driven by macroeconomic factors such as fuel prices and interest rates that are outside of the company's control. However, WEX's sensitivity to these factors makes it susceptible to stress during periods of economic decline, lower fuel prices, and lower interest rates, all of which could weaken its credit profile. WEX's banking subsidiary, WEX Bank, funds receivables generated in its Mobility and Corporate Payments segments. WEX Bank's funding profile consists primarily of brokered deposits and Health Savings Account (HSA) deposits, allowing the firm to fund business activities at a competitive cost. Over 90% of its deposits are FDIC insured and the small balance size and granular, specialized nature of HSA deposits makes WEX bank less at risk of rapid and sizeable deposit outflows. A large portion of WEX's HSA deposits are invested in a medium-duration portfolio of relatively high-quality fixed-income securities. WEX can liquidate a reasonable portion of the portfolio on short notice to offset potential deposit outflows without realizing losses. Unrealized losses on the portfolio were less than 4% of the portfolio fair value as of December 31, 2024. WEX's prior acquisitions have generated substantial goodwill resulting in a negative tangible equity to tangible assets ratio of -24.0% as of December 31, 2024, a key credit constraint. However, Moody's believes WEX's strong cash flow generation partially offsets the increased credit risk from the company's negative tangible equity. The ratings affirmation also incorporates the recently announced credit-negative debt-funded share repurchases, which will lead to a temporary spike in WEX's covenant debt/EBITDA ratio. However, Moody's expects that WEX will continue to operate within its target range of 2.5x-3.5x and prioritize deleveraging throughout the rest of 2025. Moody's expects that WEX will be less aggressive on pursuing potential acquisitions and additional share repurchases during the rest of 2025 until it has deleveraged back to the middle or low end of its target range. WEX has been operating at or close to the low end of its target range since the end of 2022. These governance considerations were a key driver of the rating action. WEX's Credit Impact Score (CIS-3) indicates limited impact of environmental, social and governance (ESG) considerations on the ratings to date, with potential greater negative impact over time, mainly due to governance risks. Moody's maintains WEX's governance issuer profile score (IPS) at G-3, reflective of management's aggressive posture towards shareholder distributions and willingness to increase leverage for such purposes. These governance risks are partially offset by WEX's commitment to remain within its target leverage range in the normal course of business. The Ba2 rating on WEX's existing and new senior secured debt reflects its priority ranking and dominance within the capital structure. The B1 rating assigned to WEX's new senior unsecured notes reflects their lower ranking and smaller proportion within the capital structure. The stable outlook reflects Moody's expectations that the transaction will not lead to sustained leverage levels outside of WEX's target range and that the company will prioritize reducing leverage through the rest 2025. The stable outlook also reflects Moody's expectations that the company will maintain solid and stable performance in each of its business segments. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if WEX improves its profitability so that its net income/average managed assets ratio exceeds 3% on a sustainable basis. Consistent demonstration of conservative financial policies, evidenced by a reduced willingness to engage in large debt-funded acquisitions, a lowering of its stated leverage ratio target, or using excess cash flow to reduce leverage instead of for shareholder distributions could lead to an upgrade. The ratings could be downgraded if WEX materially increases its leverage so that its company-reported bank covenant net debt/EBITDA ratio worsens to 4.0x or higher and persists for at least 12 months, or if the ratio were to rise above 4.5x. The ratings could also be downgraded if there were a deterioration in WEX's funding and liquidity, especially at WEX Bank, or if there was indication that the company was taking on more asset risk, funding risk, or interest rate risk. The principal methodology used in these ratings was Finance Companies published in July 2024. WHITE FOREST: Hires Chipman Brown Cicero & Cole LLP as Counsel -------------------------------------------------------------- White Forest Resources, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Chipman Brown Cicero & Cole, 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) negotiating, drafting, and pursuing all documentation necessary in these Chapter 11 Cases; (c) preparing on behalf of the Debtors all applications, motions, answers, orders, reports, and other legal papers necessary to the administration of the Debtors’ estates; (d) appearing in Court and protecting the interests of the Debtors before the Court; (e) assisting with any disposition of the Debtors’ assets, by sale or otherwise; (f) negotiating and taking all necessary or appropriate actions in connection with a plan or plans of reorganization and all related documents thereunder and transactions contemplated therein; (g) attending all meetings and negotiating with representatives of creditors, the United States Trustee, and other parties-in-interest; (h) providing legal advice regarding bankruptcy law, corporate law, corporate governance, transactional, litigation, and other issues to the Debtors in connection with the Debtors’ ongoing business operations; and (i) performing all other legal services for, and providing all other necessary legal advice to, the Debtors that may be necessary and proper in these Chapter 11 Cases. The firm will be paid at these rates: William E. Chipman, Jr. $950 per hour David W. Carickhoff $795 per hour Alan M. Root $600 per hour Bryan J. Hall $575 per hour Aaron J. Bach $400 per hour Alison R. Maser $400 per hour Renae M. Fusco $350 per hour On January 17, 2025, the firm received a retainer payment from the Debtors totaling $100,000, which was supplemented on January 29, 2025, with an additional $50,000, and then further supplemented prepetition on February 7, 2025, with an additional $20,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The following paragraph is provided in response to Paragraph D.1 of the UST Guidelines: 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 twelve months prepetition. If your billing rates and material financial terms have changed postpetition, explain the differences and the reasons for the differences. Response: Not applicable. Question: Has your client approved your prospective budget and staffing plan, and, if so, for what budget period? Response: A preliminary prospective budget and staffing plan for the postpetition period that includes CBCC as well as the Debtors' other advisors has been approved by the Debtors. In accordance with the UST Guidelines, the budget may be amended or supplemented, as necessary, to reflect changed or unanticipated developments. Alan M. Root, Esq., a partner at Chipman Brown Cicero & Cole, 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: Alan M. Root, Esq. William E. Chipman, Jr., Esq. CHIPMAN BROWN CICERO & COLE, LLP Hercules Plaza 1313 North Market Street, Suite 5400 Wilmington, Delaware 19801 Tel: (302) 295-0191 Email: root@chipmanbrown.com chipman@chipmanbrown.com About White Forest Resources, Inc. White Forest Resources Inc. and affiliates are privately-held producers of premium metallurgical and thermal coal in the Central Appalachian coal basin. The Debtors operate two mining operations in West Virginia. The main buyers of the Debtors' premium metallurgical coal, which is used in a process to produce coke for steel manufacturing, include steel manufacturers, commodity brokers, and industrial clients. Electric utilities and industrial companies are the principal customers for the Debtors' thermal coal. White Forest Resources Inc. and affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 25-10195) on February 7, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $10 million and $50 million. Honorable Bankruptcy Judge Thomas M. Horan handles the case. The Debtor is represented by Alan M. Root, Esq., William E. Chipman, Jr., Esq., and Alison R. Maser, Esq., at Chipman Brown Cicero & Cole LLP in Wilmington, Delaware. The Debtors' CRO Provider is RK Consultants LLC. The Debtors' special counsel is Jones & Associates. The Debtors' noticing and claims agent is Stretto. WHITE FOREST: Hires Jones & Associates as Special Counsel --------------------------------------------------------- White Forest Resources, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Jones & Associates as special counsel. The firm will provide general legal services with regard to ongoing corporate, transactional, and land matters and in connection with matters relating to West Virginia state law and other related matters. E. Forrest Jones, Jr. the lawyer handling the case will be paid $600 per hour. During the 90 days immediately preceding the Petition Date, the firm received payments from the Debtors on account of work for the Debtors or their affiliates totaling $125,000. As of the Petition Date, the firm was owed $138,200 on account of prepetition work for the Debtors or their affiliates. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Jones, Jr. 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: E. Forrest Jones, Jr., Esq. Jones & Associates 13 Kanawha Boulevard, West, Suite 200 Charleston, WV 25302 Tel: (304) 343-9466 About White Forest Resources, Inc. White Forest Resources Inc. and affiliates are privately-held producers of premium metallurgical and thermal coal in the Central Appalachian coal basin. The Debtors operate two mining operations in West Virginia. The main buyers of the Debtors' premium metallurgical coal, which is used in a process to produce coke for steel manufacturing, include steel manufacturers, commodity brokers, and industrial clients. Electric utilities and industrial companies are the principal customers for the Debtors' thermal coal. White Forest Resources Inc. and affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 25-10195) on February 7, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $10 million and $50 million. Honorable Bankruptcy Judge Thomas M. Horan handles the case. The Debtor is represented by Alan M. Root, Esq., William E. Chipman, Jr., Esq., and Alison R. Maser, Esq., at Chipman Brown Cicero & Cole LLP in Wilmington, Delaware. The Debtors' CRO Provider is RK Consultants LLC. The Debtors' special counsel is Jones & Associates. The Debtors' noticing and claims agent is Stretto. WHITE FOREST: Hires Mr. Ryniker of RK Consultants as CRO -------------------------------------------------------- White Forest Resources, Inc. and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ RK Consultants LLC to designate Brian Ryniker as chief restructuring officer. The firm will provide these services: a. provide Brian Ryniker to serve as Chief Restructuring Officer; b. assist the Company and providing analysis in securing post-petition financing and meeting with or assisting in discussions and/or negotiations with potential lenders, creditors, committees, suppliers, lessors and other parties in interest; c. assist the Company in preparing and implementing an efficient and effective court-based restructuring, whether through a Chapter 11 Plan, a section 363 sale, the combination of a Chapter 11 plan and section 363 sale, or any other structure; d. prepare and present to the Company Representative a preliminary action plan and timeline and a monthly operating budget for the Company and assist in preparing statements of financial affairs, schedules, monthly operating reports, and other regular reports required in a Chapter 11 proceeding; e. with the approval of the Board, retain and oversee other outside consultants in connection with the sale or reorganization of the Company; f. maintain communications regularly with the Company Representative and certain other creditors; g. identify and seek to recover assets of the Company; h. assist in the identification of executory contracts and unexpired leases; and i. perform such other professional services as may be requested by the Company and agreed to by RK Consultants in writing. The firm will be paid at these rates: Brian Ryniker $500 per hour Other Professionals $140 to $500 per hour The firm hold a retainer in the amount of $13,260. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Brian Ryniker, a partner at RK Consultants 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: Brian Ryniker RK Consultants, LLC f/k/a Ryniker Consultants LLC 1178 Broadway, 3rd FL 1505 New York, NY 10001 Tel: (646) 341-3926 Email: Brian@rkc.llc About White Forest Resources, Inc. White Forest Resources Inc. and affiliates are privately-held producers of premium metallurgical and thermal coal in the Central Appalachian coal basin. The Debtors operate two mining operations in West Virginia. The main buyers of the Debtors' premium metallurgical coal, which is used in a process to produce coke for steel manufacturing, include steel manufacturers, commodity brokers, and industrial clients. Electric utilities and industrial companies are the principal customers for the Debtors' thermal coal. White Forest Resources Inc. and affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 25-10195) on February 7, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $10 million and $50 million. Honorable Bankruptcy Judge Thomas M. Horan handles the case. The Debtor is represented by Alan M. Root, Esq., William E. Chipman, Jr., Esq., and Alison R. Maser, Esq., at Chipman Brown Cicero & Cole LLP in Wilmington, Delaware. The Debtors' CRO Provider is RK Consultants LLC. The Debtors' special counsel is Jones & Associates. The Debtors' noticing and claims agent is Stretto. WHITE FOREST: Hires Stretto Inc. as Administrative Advisor ---------------------------------------------------------- White Forest Resources, Inc. and its affiliate seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Stretto, Inc. as administrative advisor. The firm will render these services: a) assist with, among other things, solicitation, balloting, and tabulation of votes; prepare any related reports, as required in support of confirmation of a chapter 11 plan; b) prepare an official ballot certification and, if necessary, testify in support of the ballot tabulation results; c) assist with the preparation of the Debtors' schedules of assets and liabilities and statements of financial affairs and gather data in conjunction therewith; d) assist with the preparation of the Debtors' monthly operating reports and gather data in conjunction therewith; e) provide a confidential data room; f) manage and coordinate any distributions pursuant to a chapter 11 plan if designated as distribution agent under such plan; and g) provide claims analysis and reconciliation, case research, depository management, treasury services, confidential online workspaces or data rooms, and any related services otherwise required by applicable law, governmental regulations, or court rules or orders in connection with these Chapter 11 Cases. Prior to the Petition Date, the Debtors paid Stretto an advance in the amount of $20,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Sheryl Betance, a partner at Stretto, 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: Sheryl Betance Stretto, Inc. 410 Exchange, Ste. 100 Irvine, CA 92602 Telephone: (714) 716-1872 Email: sheryl.betance@stretto.com About White Forest Resources, Inc. White Forest Resources Inc. and affiliates are privately-held producers of premium metallurgical and thermal coal in the Central Appalachian coal basin. The Debtors operate two mining operations in West Virginia. The main buyers of the Debtors' premium metallurgical coal, which is used in a process to produce coke for steel manufacturing, include steel manufacturers, commodity brokers, and industrial clients. Electric utilities and industrial companies are the principal customers for the Debtors' thermal coal. White Forest Resources Inc. and affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 25-10195) on February 7, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $10 million and $50 million. Honorable Bankruptcy Judge Thomas M. Horan handles the case. The Debtor is represented by Alan M. Root, Esq., William E. Chipman, Jr., Esq., and Alison R. Maser, Esq., at Chipman Brown Cicero & Cole LLP in Wilmington, Delaware. The Debtors' CRO Provider is RK Consultants LLC. The Debtors' special counsel is Jones & Associates. The Debtors' noticing and claims agent is Stretto. WHITTAKER CLARK: Claimants Slam $535MM Chapter 11 Settlement ------------------------------------------------------------ Vince Sullivan of Law360 Bankruptcy Authority reports that on March 3, 2025, the official committee of talc claimants in Whittaker Clark & Daniels' Chapter 11 case told a New Jersey bankruptcy judge that the $535 million settlement with Berkshire Hathaway entities, which own the debtor, is "a smack in the face" to claimants and was the result of an insider-negotiated deal. About Whittaker, Clark & Daniels Whittaker, Clark & Daniels, Inc. and affiliates, Brilliant National Services Inc., Soco West Inc. and L.A. Terminals Inc., were engaged in nonmetallic mineral mining and quarrying. The Debtors sought Chapter 11 protection (Bankr. D.N.J. Lead Case No. 23-13575) on April 26, 2023. The Debtors estimated $100 million to $500 million in assets against $1 billion to $10 billion in liabilities as of the bankruptcy filing. The Hon. Michael B. Kaplan is the case judge. The Debtors tapped Kirkland & Ellis LLP as general bankruptcy counsel; Cole Schotz P.C. as co-bankruptcy counsel; and M3 Partners LLC as financial advisor. Stretto, Inc. is the claims agent. The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent talc claimants in the Debtors' Chapter 11 cases. The talc committee is represented by Cooley, LLP. The Hon. Shelley Chapman was appointed as the future claimants' representative (FCR) in the Chapter 11 cases. Willkie Farr & Gallagher, LLP is the FCR's counsel. WINDWARD DESIGN: Gets Extension to Access Cash Collateral --------------------------------------------------------- Windward Design Group, Inc. received another extension from the U.S. Bankruptcy Court for the Middle District of Florida to use cash collateral. The second interim order signed by Judge Catherine Peek McEwen authorized the company to use cash collateral to pay the amounts expressly authorized by the court, including payments to the U.S. trustee for quarterly fees; the expenses set forth in the budget, plus an amount not to exceed 10% for each line item; and additional amounts expressly approved in writing by secured creditor, South State Bank. The company's three-week budget projects total operational expenses of $95,133.81 for the first week; $48,075 for the second week; and $38,129.10 for the third week. Each creditor with a security interest in cash collateral will have a perfected post-petition lien on cash collateral to the same extent and with the same validity and priority as its pre-bankruptcy lien. Windward was ordered to keep the secured creditor's collateral insured in accordance with the obligations under the loan and security documents with the creditor. About Windward Design Group Inc. Windward Design Group, Inc. filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 25-00780) on February 6, 2025, listing up to $10 million in both assets and liabilities. David G. Peace, president of Windward Design Group, signed the petition. Judge Catherine Peek McEwen oversees the case. Edward J. Peterson, Esq., at Johnson, Pope, Bokor, Ruppel & Burns, LLP, represents the Debtor as legal counsel. YELLOW CORP: Settles Employee Layoff Lawsuits for $12MM ------------------------------------------------------- Angelica Serrano-Roman of Bloomberg Law reports that bankrupt trucking company Yellow Corp. has reached a settlement with two groups of former employees who claimed it violated federal layoff notice requirements. According to court filings on Friday in the U.S. Bankruptcy Court for the District of Delaware, Yellow agreed to pay $3.5 million to class members in the Coughlin v. Yellow case and $8.7 million to those in the Moore v. Yellow case. The settlement follows a trial over Yellow's compliance with the Worker Adjustment and Retraining Notification (WARN) Act, which mandates a 60-day notice for layoffs. The agreement remains subject to court approval. About Yellow Corporation Yellow Corporation -- www.myyellow.com -- operates logistics and less-than-truckload (LTL) networks in North America, providing customers with regional, national, and international shipping services throughout. Yellow's principal office is in Nashville, Tenn., and is the holding company for a portfolio of LTL brands including Holland, New Penn, Reddaway, and YRC Freight, as well as the logistics company Yellow Logistics. Yellow Corporation and 23 affiliates concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-11069) on August 6, 2023, before the Hon. Craig T. Goldblatt. As of March 31, 2023, Yellow Corp. had $2,152,200,000 in total assets against $2,588,800,000 in total liabilities. The petitions were signed by Matthew A. Doheny as chief restructuring officer. The Debtors tapped Kirkland & Ellis LLP as restructuring counsel; Pachulski Stang Ziehl & Jones LLP as Delaware local counsel; Kasowitz, Benson and Torres LLP as special litigation counsel; Goodmans LLP as special Canadian counsel; Ducera Partners LLC as investment banker; and Alvarez and Marsal as financial advisor. Epiq Bankruptcy Solutions serves as claims and noticing agent. Milbank LLP serves as counsel to certain investment funds and accounts managed by affiliates of Apollo Capital Management, L.P. White & Case LLP serves as counsel to Beal Bank USA. Arnold & Porter Kaye Scholer LLP serves as counsel to the United States Department of the Treasury. On August 16, 2023, the United States Trustee for Region 3 appointed an official committee of unsecured creditors in these Chapter 11 cases. The committee tapped Akin Gump Strauss Hauer & Feld LLP and Benesch, Friedlander, Coplan & Aronoff LLP as counsel; Miller Buckfire as investment banker; and Huron Consulting Services LLC as financial advisor. [] Moody's Takes Action on 86 Ratings From 11 Deals by RALI Trust ----------------------------------------------------------------- Moody's Ratings has upgraded the ratings of 84 bonds and downgraded the ratings of two bonds from 11 US residential mortgage-backed transactions (RMBS), backed by Alt-A and option ARM mortgages issued by RALI. A comprehensive review of all credit ratings for the respective transactions have been conducted during a rating committee. The complete rating actions are as follows: Issuer: RALI Series 2007-QA2 Trust Cl. A-3, Upgraded to Caa2 (sf); previously on Dec 14, 2010 Confirmed at Caa3 (sf) Issuer: RALI Series 2007-QH2 Cl. A-1, Upgraded to Caa1 (sf); previously on Dec 1, 2010 Downgraded to Ca (sf) Issuer: RALI Series 2007-QH5 Trust Cl. A-I-1, Upgraded to Caa1 (sf); previously on Aug 16, 2013 Confirmed at Caa3 (sf) Cl. A-II, Upgraded to Caa3 (sf); previously on Dec 1, 2010 Downgraded to Ca (sf) Issuer: RALI Series 2007-QH7 Trust Cl. 1-A-1, Upgraded to B3 (sf); previously on Dec 1, 2010 Downgraded to Caa3 (sf) Cl. 1-A-2, Upgraded to Ca (sf); previously on Dec 1, 2010 Downgraded to C (sf) Cl. 2-A-1, Upgraded to Caa2 (sf); previously on Dec 1, 2010 Downgraded to Ca (sf) Issuer: RALI Series 2007-QO2 Trust Cl. A-1, Upgraded to Caa2 (sf); previously on Dec 1, 2010 Downgraded to Ca (sf) Issuer: RALI Series 2007-QS3 Trust Cl. A-1, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-2, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-3, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-P, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-V*, Upgraded to Caa3 (sf); previously on Nov 29, 2017 Downgraded to Ca (sf) Issuer: RALI Series 2007-QS5 Trust Cl. A-1, Upgraded to Caa2 (sf); previously on Nov 27, 2013 Downgraded to Ca (sf) Cl. A-2, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-4, Upgraded to Caa3 (sf); previously on Nov 27, 2013 Downgraded to Ca (sf) Cl. A-5, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-6*, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-7, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-8*, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-9, Upgraded to Caa3 (sf); previously on Nov 27, 2013 Downgraded to Ca (sf) Cl. A-10*, Upgraded to Caa3 (sf); previously on Nov 27, 2013 Downgraded to Ca (sf) Cl. A-11, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-12*, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-P, Upgraded to Caa1 (sf); previously on Nov 27, 2013 Downgraded to Ca (sf) Cl. A-V*, Upgraded to Caa3 (sf); previously on Oct 27, 2017 Confirmed at Ca (sf) Issuer: RALI Series 2007-QS6 Trust Cl. A-5, Downgraded to Ca (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-7, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-8, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-14, Downgraded to Ca (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-25, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-26, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-27, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-28, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-29, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-30*, Upgraded to Caa2 (sf); previously on Nov 29, 2017 Confirmed at Caa3 (sf) Cl. A-35, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-36, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-37, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-38, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-39, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-40, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-41, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-42, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-60, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-61, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-62, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-63, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-64, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-65*, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-66, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-67, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-68, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-69, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-70, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-71, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-72, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Cl. A-116*, Upgraded to Caa3 (sf); previously on Oct 27, 2017 Confirmed at Ca (sf) Cl. A-P, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Confirmed at Caa3 (sf) Issuer: RALI Series 2007-QS7 Trust Cl. I-A-5, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Downgraded to Caa3 (sf) Cl. I-A-6*, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Downgraded to Caa3 (sf) Cl. I-A-P, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Downgraded to Caa3 (sf) Cl. II-A-P, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Issuer: RALI Series 2007-QS8 Trust Cl. A-8, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Downgraded to Caa3 (sf) Cl. A-9, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Downgraded to Caa3 (sf) Cl. A-10, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Downgraded to Caa3 (sf) Cl. A-11*, Upgraded to Caa2 (sf); previously on Dec 23, 2010 Downgraded to Caa3 (sf) Cl. A-P, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Downgraded to Caa3 (sf) Issuer: RALI Series 2007-QS9 Trust Cl. A-1, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-2*, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-3*, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-4, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-5, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-6*, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-18, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-19, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-20*, Upgraded to Caa3 (sf); previously on Nov 29, 2017 Confirmed at Ca (sf) Cl. A-21, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-24, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-26, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-27, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-31, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-32, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-33, Upgraded to Caa3 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-P, Upgraded to Caa1 (sf); previously on Dec 23, 2010 Downgraded to Ca (sf) Cl. A-V*, Upgraded to Caa3 (sf); previously on Oct 27, 2017 Confirmed at Ca (sf) *Reflects Interest-Only Classes. RATINGS RATIONALE The rating actions reflect the current levels of credit enhancement available to the bonds, the recent performance, analysis of the transaction structures, Moody's updated loss expectations on the underlying pools and Moody's revised loss-given-default expectation for each bond. Each of the bonds experiencing a rating change has either incurred a missed or delayed disbursement of an interest payment or is currently, or expected to become, undercollateralized, which may sometimes be reflected by a reduction in principal (a write-down). Moody's expectations of loss-given-default assesses losses experienced and expected future losses as a percent of the original bond balance. No actions were taken on the other rated classes in these deals because their expected losses remain commensurate with their current ratings, after taking into account the updated performance information, structural features, credit enhancement and other qualitative considerations. Principal Methodologies The principal methodology used in rating all classes except interest-only classes was "US Residential Mortgage-backed Securitizations: Surveillance" published in December 2024. Factors that would lead to an upgrade or downgrade of the ratings: Up Levels of credit protection that are higher than necessary to protect investors against current expectations of loss could drive the ratings of the subordinate bonds up. Losses could decline from Moody's original expectations as a result of a lower number of obligor defaults or appreciation in the value of the mortgaged property securing an obligor's promise of payment. Transaction performance also depends greatly on the US macro economy and housing market. Down Levels of credit protection that are insufficient to protect investors against current expectations of loss could drive the ratings down. Losses could rise above Moody's expectations as a result of a higher number of obligor defaults or deterioration in the value of the mortgaged property securing an obligor's promise of payment. Transaction performance also depends greatly on the US macro economy and housing market. Other reasons for worse-than-expected performance include poor servicing, error on the part of transaction parties, inadequate transaction governance and fraud. An IO bond may be upgraded or downgraded, within the constraints and provisions of the IO methodology, based on lower or higher realized and expected loss due to an overall improvement or decline in the credit quality of the reference bonds. Finally, performance of RMBS continues to remain highly dependent on servicer procedures. Any change resulting from servicing transfers or other policy or regulatory change can impact the performance of these transactions. In addition, improvements in reporting formats and data availability across deals and trustees may provide better insight into certain performance metrics such as the level of collateral modifications. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA. Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The single-user TCR subscription rate is $1,400 for six months or $2,350 for twelve months, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each per half-year or $50 annually. For subscription information, contact Peter A. Chapman at 215-945-7000. *** End of Transmission ***