/raid1/www/Hosts/bankrupt/TCR_Public/250312.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 12, 2025, Vol. 29, No. 70
Headlines
1021-1025 SANTA FE: Seeks Chapter 11 Bankruptcy in California
1804 SHACKLEFORD: Timothy Stone Named Subchapter V Trustee
225 BOWERY: Secured Party Sets Auction for April 23
ACADIA HEALTHCARE: Moody's Rates New $500MM Unsecured Notes 'Ba3'
ACME ASPHALT: Case Summary & 16 Unsecured Creditors
AMERIGLASS CONTRACTOR: Seeks Chapter 11 Bankruptcy in Florida
AMITY COURT: U.S. Trustee Unable to Appoint Committee
ASCEND PERFORMANCE: Moody's Cuts CFR to 'Caa2', Outlook Negative
ASTRA ACQUISITION: S&P Downgrades Issuer Credit Rating to 'SD'
ATARA BIOTHERAPEUTICS: Narrows Net Loss to $85.4 Million in 2024
B.L.H.G. GROUP: Case Summary & 20 Largest Unsecured Creditors
BANGL LLC: Fitch Puts 'B+' LongTerm IDR on Watch Positive
BLACKBRUSH INVESTMENTS: Seeks Chapter 11 Bankruptcy in Texas
BLACKROCK TCP: Moody's Assigns Ba1 CFR & Alters Outlook to Stable
BORDER PROPERTIES: U.S. Trustee Unable to Appoint Committee
BREAD FINANCIAL: Fitch Gives B(EXP) Rating on New $400MM Sub. Debt
BREAD FINANCIAL: Moody's Gives Ba3 Rating on New Subordinate Debt
CAPITAL PROPERTIES: Unsecureds to Get 100 Cents on Dollar in Plan
CAREPOINT HEALTH: Insurers Consider Ch. 11 Plan 'Fatally Flawed'
CELANESE US: Moody's Rates New Senior Unsecured Notes 'Ba1'
CGL HOLDCO: Chapter 15 Case Summary
CITRUS360 LLC: Seeks Chapter 11 Bankruptcy in Texas
COMPASS MINERALS: Moody's Cuts CFR to 'B2' & Alters Outlook to Neg.
CONFLUENCE TECHNOLOGIES: Moody's Withdraws Caa3 Corp. Family Rating
CORTO II LLC: Case Summary & One Unsecured Creditor
D&D TRUCKING: Joe Supple Named Subchapter V Trustee
DAVE & BUSTER'S: S&P Alters Outlook to Negative, Affirms 'B' ICR
DOUBLE HELIX: Voluntary Chapter 11 Case Summary
EAGLEVIEW TECHNOLOGY: In Talks w/ Lenders for Loan Extension
ECTUL HOLDINGS: Case Summary & One Unsecured Creditor
EEJ HOSPITALITY: Unsecureds to Get $1,422 per Month for 60 Months
ELANCO ANIMAL: Fitch Affirms 'BB-' LongTerm IDR, Outlook Positive
ELITE SCHOOL: Angela Shortall Named Subchapter V Trustee
ENDO INTERNATIONAL: Knight to Buy International Pharmaceuticals
ESSENTIAL MINERALS: Case Summary & 20 Largest Unsecured Creditors
EURASIA LLC: Jody Corrales Named Subchapter V Trustee
FAMILY OFFICE: Narrows Net Loss to $100K for 2024
FENDER MUSICAL: S&P Downgrades ICR to 'B-', Outlook Negative
FIRST QUANTUM: Fitch Rates New 8% USD1-Bil. Notes Due 2033 'B'
FIT FOR THE RED: Gets OK to Use Cash Collateral to Pay Repair Cost
FORESTAR GROUP: Moody's Rates New Senior Unsecured Notes 'Ba3'
FOREVER 21: Sets to Lay Off Workers Starting April 21
FRENCH SEAM: Judy Wolf Weiker Named Subchapter V Trustee
GFL ENVIRONMENTAL: Moody's Ups CFR to 'Ba2', Outlook Stable
GLOSSLAB LLC: Enters Asset Purchase Deal with Townhouse
GWG HOLDINGS: Trustee Reaches Settlement Shielding Ex-Execs, Cos
H-FOOD HOLDINGS: Nears Chapter 11 Bankruptcy Exit
HERBALIFE LTD: Moody's Affirms 'B1' CFR & Alters Outlook to Stable
I A P CONSTRUCTION: Janice Seyedin Named Subchapter V Trustee
JM GROVE: U.S. Trustee Unable to Appoint Committee
JW ALUMINUM: S&P Rates New $350MM Senior Secured Notes 'B'
M2I GLOBAL: Posts Larger Net Loss of $3.89 Million for FY 2024
MALLINCKRODT PLC: Opioid Trust Suit Can't Proceed to Mediation
MAPRAGENCY INC: Seeks Subchapter V Bankruptcy in Colorado
MCCLAIN FAMILY: Case Summary & 20 Largest Unsecured Creditors
MONTFER PROPERTY: Voluntary Chapter 11 Case Summary
MVL INVESTMENTS: U.S. Trustee Unable to Appoint Committee
NATGASOLINE LLC: S&P Assigns Prelim 'BB-' Rating on Sec Term Loan B
NB STRANDS: Seeks $8.2MM DIP Loan From Dove Mortgage
NEDDY LLC: Joseph Cotterman Named Subchapter V Trustee
NEW LONDON: Seeks Cash Collateral Access
NEW YORK'S PREMIER: Unsecureds to Split $375K over 19 Months
NIKOLA CORP: Reaches Settlement with Investors on Fraud Suit
NORTHVOLT AB: Scania Remains Resilient Despite Co.'s Bankruptcy
ORION SECURITY: Case Summary & 20 Largest Unsecured Creditors
PACIFIC DENTAL: S&P Affirms 'B' ICR, Outlook Stable
PARAMOUNT DRUG: Case Summary & 10 Unsecured Creditors
PAUL LESPOIR: Seeks Subchapter V Bankruptcy in New York
PAULWALKEE HOSPITALITY: Gets Interim OK to Use Cash Collateral
PREMIER BRANDS: Moody's Upgrades CFR to B3, Outlook Remains Stable
PROSOURCE MACHINERY: Gets OK to Use Cash Collateral Until March 24
REICHMAN KARTEN: Samuel Dawidowicz Named Subchapter V Trustee
RITE AID: In Negotiations with Creditors to Boost Liquidity
RLR MARKETING: Gets Interim OK to Use Cash Collateral
ROCKIES EXPRESS: S&P Rates New Senior Unsecured Notes 'BB'
RVFW LLC: Seeks Chapter 11 Bankruptcy in Texas
SABAL CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors
SAPOBLA INVESTMENTS: Seeks Chapter 11 Bankruptcy in Florida
SEABIRDS KITCHEN: Arturo Cisneros Named Subchapter V Trustee
SHERWOOD HOSPITALITY: Seeks to Use Cash Collateral
SHIELDCOAT TECHNOLOGIES: Case Summary & 20 Top Unsecured Creditors
SMITH MOUNTAIN: Unsecureds Will Get 75% of Claims over 3 Years
SOLAR EXCLUSIVE: Nathan Smith Named Subchapter V Trustee
STARK ENERGY: Unsecured Creditors Will Get 1% of Claims in Plan
SUNNOVA ENERGY: Shares Dip 71% After Going Concern Warning
TEMADA INC: Unsecureds Will Get 10% of Claims over 60 Months
TERRAFORM LABS: Judge Amends Crypto Claims to Prevent Bullying
TRAILER OWNER: Robert Handler Named Subchapter V Trustee
TRANSITIONAL HOUSING: Michael Abelow Named Subchapter V Trustee
U-TELCO UTILITIES: Mark Schlant Named Subchapter V Trustee
UGI INT'L: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
UMAPM HOLDING: Unsecureds Will Get 65% of Claims over 3 Years
UNITY MINES: Seeks Chapter 11 Bankruptcy in Pennsylvania
UROGEN PHARMA: Posts $126.9 Million Net Loss for 2024
US 24 TRUCK: Case Summary & 20 Largest Unsecured Creditors
VALVOLINE INC: S&P Affirms 'BB' ICR on Acquisition of Breeze
VIAVI SOLUTIONS: Fitch Puts 'BB-' LongTerm IDR on Watch Negative
VIAVI SOLUTIONS: Moody's Puts 'Ba2' CFR on Review for Downgrade
VIRGINIA BEACH: Case Summary & 20 Largest Unsecured Creditors
VOBEV LLC: Creditors to Get Proceeds From Liquidation
WAYFAIR LLC: S&P Assigns 'BB' Rating on New Senior Secured Notes
WHISKEY RANCH: U.S. Trustee Unable to Appoint Committee
XCELERATOR BOATWORKS: To Sell Boat Business at Online Auction
XYZ HOME: To Sell Family Rental Houses to Lifestyles Realty
YOUNG MEN'S CHRISTIAN: Updates Redstone & Priority Non-Tax Claims
ZOOZ POWER: Reports $10.99 Million Net Loss for 2024
*********
1021-1025 SANTA FE: Seeks Chapter 11 Bankruptcy in California
-------------------------------------------------------------
On March 4, 2025, 1021-1025 Santa Fe Avenue LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Central District
of California. According to court filing, the Debtor reports
between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
About 1021-1025 Santa Fe Avenue LLC
1021-1025 Santa Fe Avenue LLC is a limited liability company.
1021-1025 Santa Fe Avenue LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11700) on March
4, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Julia W. Brand handles the case.
The Debtor is represented by:
Raymond H. Aver, Esq.
LAW OFFICES OF RAYMOND H. AVER, A PROFESSIONAL CORPORATION
11849 West Olympic Boulevard, Suite 204
Los Angeles, CA 90064
Tel: (310) 571-3511
E-mail: ray@averlaw.com
1804 SHACKLEFORD: Timothy Stone Named Subchapter V Trustee
----------------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Timothy Stone of
Newpoint Advisors Corporation as Subchapter V trustee for 1804
Shackleford, LLC.
Mr. Stone will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Stone declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Timothy Stone
Newpoint Advisors Corporation
750 Old Hickory Blvd, Building Two, Suite 150
Brentwood, TN 37027
Phone: 800-306-1250/615-440-8273
Fax: (702) 543-3881
Email: tstone@newpointadvisors.us
About 1804 Shackleford
1804 Shackleford, LLC is the fee simple owner of two properties
located at 1804 Shackleford Road, Nashville, Tenn. (current value
of $1,800,000), and at 1802 Shackleford Road, Nashville, Tenn.
(current value of $2,200,000).
1804 Shackleford, sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 25-00742) on February
23, 2025, listing $4,000,000 in assets and $3,131,135 in
liabilities. Deepak Chaudhry, chief executive officer, signed the
petition.
Judge Nancy B. King presides over the case.
Jay R. Lefkovitz, Esq., at Lefkovitz & Lefkovitz represents the
Debtor as legal counsel.
225 BOWERY: Secured Party Sets Auction for April 23
---------------------------------------------------
In accordance with applicable provisions of the Uniform Commercial
Code as enacted in New York, Omnia Properties LLC ("secured party")
will sell the collateral that is made up of 48% of the right,
title, and interest of each of the Northwind RE LLP ("Northwind"),
225 Bowery Holdings LLC ("Bowery Holdings"), 225 Bowery Holdings II
LLC ("Bowery Holdings II"), and 225 Bowery Pref Equity LLC ("Bowery
Pref", and together with Bowery Holdings and Bowery Holdings II,
"Debtors"), an and to the common equity membership interest in VNAA
LLC ("collateral"), to the highest qualified bidder at a public
sale to take place on April 23, 2025, at 3:00 p.m. EST, via Zoom
Platform or web-based program selected by the Secured Party, as
well as in person at Schlam Stone & Dolan LLP, 26 Broadway, 19th
Floor, New York, New York 10004, Attention: Joshua Wurtzel, Esq.
Remote log-in credentials will be provided to registered bidders
upon request.
The sale will be conducted by Matthew D. Mannion with an office at
299 Broadway, Suite 1601, New York, New York 10007.
Interested parties that intend to bid on the collateral must
contact the Secured Party's broker, Greg Corbin of Northgate Real
Estate Group, at (212) 369-1800 or greg@northgatereg.com, to
receive the terms of sale and bidding instructions.
ACADIA HEALTHCARE: Moody's Rates New $500MM Unsecured Notes 'Ba3'
-----------------------------------------------------------------
Moody's Ratings assigned a Ba3 rating to Acadia Healthcare Company,
Inc.'s proposed $500 million senior unsecured notes. There are no
changes to the company's existing Ba2 Corporate Family Rating,
Ba2-PD Probability of Default Rating, and Ba3 senior unsecured
ratings. The Speculative Grade Liquidity Rating is an SGL-1. The
rating outlook is stable.
Proceeds from the new $500 million offering will be used to prepay
a portion of the outstanding borrowings under the new Revolving
Facility.
RATINGS RATIONALE
The Ba2 CFR is supported by the company's large scale and good
business and geographic diversity within the domestic behavioral
healthcare industry. It is also supported by attractive industry
fundamentals including growing demand for services and increasing
willingness of payors, including governments, to pay for behavioral
health and addiction treatment services. The rating is further
underpinned by the company's strong operating cash flow and very
good liquidity.
The rating is constrained by Acadia's reliance on government
reimbursement from Medicare and Medicaid and risks associated with
the rapid pace of growth through acquisitions, opening of new
facilities and the addition of new beds in existing facilities.
Acadia operates with moderate financial leverage with adjusted debt
to EBITDA of 3.0x as of Dec. 31, 2024. Moody's forecast Acadia will
be able to maintain leverage around 3.0x while still investing in
its growth strategy.
The Speculative Grade Liquidity Rating of SGL-1 considers Moody's
expectations that Acadia will generate positive free cash flow over
the next year despite its heightened capital investment in its
operations. It is also underpinned by the Moody's expectations that
Acadia will maintain good cash balances and significant access to
its revolving credit facility. As of December 31, 2024, Acadia had
about $76 million of cash and access to about $230 million under
its $600 million revolving credit facility. Following the
transaction, Acadia will have full access to a new $1 billion
revolving credit facility. The company has no near term debt
maturities, with the refinancing transaction, the revolving credit
facility and term loan A will be extended 2030. Acadia has a good
mix of fixed to variable debt.
The stable outlook reflects the non-elective nature of Acadia's
services, good scale and diversity by geography and behavioral
service line. It also reflects Moody's expectations that the
company will continue to operate with conservative financial
policies.
The senior unsecured notes are rated Ba3, or one notch below the
CFR. The senior unsecured notes provide first loss absorption for
the senior secured classes in the event of a default.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The ratings could be downgraded if debt to EBITDA is expected to be
sustained above 3.0 times, or if Moody's do not expect Acadia to
produce consistently positive free cash flow. Adverse reimbursement
developments could also result in a ratings downgrade. Moody's
could also downgrade the ratings if Acadia resumes more aggressive
financial policies with respect to the use of leverage for
acquisitions or shareholder returns.
The ratings could be upgraded if the company reduces and sustains
debt/EBITDA below 2.0 times while generating substantially higher
levels of free cash flow and balancing expansion opportunities and
acquisitions with debt reduction. Reduced reliance on Medicaid
would also support an upgrade.
Acadia is a provider of behavioral health care services. Acadia
provides psychiatric and chemical dependency services to its
patients in a variety of settings, including inpatient psychiatric
hospitals, residential treatment centers, outpatient clinics and
therapeutic school based programs. Acadia operates behavioral
health facilities spanning across the US and Puerto Rico. As of
December 31, 2024, Acadia generated LTM revenue of approximately
$3.15 billion.
The principal methodology used in this rating was Business and
Consumer Services published in November 2021.
ACME ASPHALT: Case Summary & 16 Unsecured Creditors
---------------------------------------------------
Debtor: Acme Asphalt Industries Inc.
1 Beef Trail Road
Butte, MT 59701
Business Description: ACME Asphalt is a small business based in
Southwest Montana, established in 1997,
specializing in all phases of site work,
including excavation, grading, utilities,
and asphalt construction and maintenance.
The Company's services cater to residential,
commercial, and municipal projects. ACME
Asphalt operates in Montana, Idaho, Oregon,
Washington, and Wyoming, focusing on
delivering projects with high-quality
standards, on time, and within budget.
Chapter 11 Petition Date: March 10, 2025
Court: United States Bankruptcy Court
District of Montana
Case No.: 25-20045
Debtor's Counsel: Matt Shimanek, Esq.
SHIMANEK LAW PLLC
317 East Spruce Street
Missoula, MT 59802
Tel: 406-544-8049
Email: matt@shimaneklaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Tom Rice Jr. as president.
A full-text copy of the petition, which includes a list of the
Debtor's 16 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/2ZEYBFQ/ACME_ASPHALT_INDUSTRIES_INC__mtbke-25-20045__0001.0.pdf?mcid=tGE4TAMA
AMERIGLASS CONTRACTOR: Seeks Chapter 11 Bankruptcy in Florida
-------------------------------------------------------------
On March 4, 2025, Ameriglass Contractor Corp. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Southern District
of Florida. According to court filing, the
Debtor reports $1,389,948 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Ameriglass Contractor Corp.
Ameriglass Contractor Corp. specializes in residential and
commercial glass repair and replacement services in the Fort
Lauderdale, Florida area. The Company offers a range of services,
including window and sliding door repairs, storefront glass
repairs, and high-impact window installations. The Company operates
24/7, providing emergency glass repair services.
Ameriglass Contractor Corp. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No.: 25-12349) on
March 4, 2025. In its petition, the Debtor reports total assets of
$423,551 and total liabilities of $1,389,948.
Honorable Bankruptcy Judge Scott M. Grossman handles the case.
The Debtor is represented by:
Susan D Lasky, Esq.
SUSAN D. LASKY, PA
320 SE 18 Street
Fort Lauderdale, FL 33316
Tel: 954-400-7474
E-mail: Jessica@SueLasky.com
AMITY COURT: 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 Amity Court, LLC.
About Amity Court
Amity Court, LLC is the owner of the property situated at 14400
Northeast Bellevue-Redmond Road, Bellevue, Wash., which has an
appraised value of $7.78 million.
Amity Court filed Chapter 11 petition (Bankr. E.D. Wash. Case No.
25-00240) on February 11, 2025, listing total assets of $7,988,279
and total liabilities of $5,775,823.
Judge Whitman L. Holt handles the case.
The Debtor is represented by James L. Day, Esq., at Bush Kornfeld,
LLP.
Axos Bank, as lender, is represented by:
Brian T. Peterson, Esq.
K&L Gates LLP
925 Fourth Avenue, Suite 2900
Seattle, WA 98104-1158
Telephone: (206) 623-7580
Email: brian.peterson@klgates.com
ASCEND PERFORMANCE: Moody's Cuts CFR to 'Caa2', Outlook Negative
----------------------------------------------------------------
Moody's Ratings has downgraded the Corporate Family Rating of
Ascend Performance Materials Operations LLC ("Ascend") to Caa2 from
B2 and the Probability of Default Rating to Caa2-PD from B2-PD.
Moody's also downgraded the rating on the company's backed senior
secured term loan B to Caa2 from B2. The outlook remains negative.
Governance considerations are a key driver of this rating action.
Moody's revised Ascend's ESG Credit Impact Score (CIS) to CIS-5
from CIS-4 to reflect the change in the Governance Issuer Profile
Score (IPS), which was changed to G-5 from G-4. This reflects
heightened risks associated with the company's financial strategy
and risk management related to its leveraged capital structure and
refinancing challenges, and the weakening in management credibility
and track record.
RATINGS RATIONALE
The downgrade and negative outlook reflect Ascend's weak
performance, leveraged credit metrics, and tight liquidity. The
credit profile is also constrained by its refinancing challenges as
the company seeks to refinance the majority of its outstandings
debts before these debts turn current in 2H2025.
Despite some increasing volume from 2023, Ascend's performance
remained weak and was well below Moody's expectations in 2024,
driven mainly by the weak demand recovery and growing competitive
pressures particularly from the Asian market. Ascend's leverage, as
measured by Moody's adjusted debt/EBITDA, rose to more than 14.0x
in the LTM end-September 2024, compared with 10.0x in 2023. At the
same time, it generated large negative free cash flows of more than
-$260 million in the first three quarters of 2024, reflecting the
significant shortfall of its earnings to cover its large cash
spending needs including interest expenses and CapEx. While Ascend
has taken a series of actions to reduce costs and improve
efficiencies, it remains to be seen whether these measures will
effectively increase EBITDA and turn around its negative free cash
flows. With the uncertain macro economic conditions and the
challenging Nylon 6,6 market, Moody's expects Ascend's leverage
will modestly improve but remain high at 9-10x in 2025, driven by
its cost cuttings efforts. Its negative free cash flows will narrow
but remain weak in the -$100 to $150 million range, which will
strain its liquidity as the year progresses. Moody's expects such
weak credit metrics and ongoing negative free cash flows will
impose challenges for the company to address its refinancing needs
in 2025. Based on its Q3 2024 report, Ascend's 1st lien asset-based
revolver and 1st lien senior secured term loan totaling $1.3
billion or about 80% of its total adjusted debts will become
current in August 2025. The company has recently hired PJT
Partners, an investment bank specializing in restructuring and
special situations, which substantially increased the probability
of a financial restructuring or distressed exchange.
Ascend's business profile is supported by its leading market
position in the Nylon 6,6 industry, its vertically integrated
production particularly for ADN, the key intermediate with
historical barriers to entry for Nylon 6,6, and the growth
prospects of its key end markets including growing application of
Nylon 6,6 in EV and electrification.
Ascend's liquidity is weak. As of Sep 30, 2024, Ascend had $220
million of liquidity, including $110 million in cash and $110
million available under its $500 million asset-based revolving
credit facility with a borrowing base of $427 million, which will
be due on the earlier of 91 days before the term loan maturity
(August 2026) or October 2027. The revolver contains a springing
fixed charge coverage ratio set at 1.00x, which will be tested if
the availability under the revolver falls below 10% of the
borrowing base. With Ascend's operating trend and negative free
cash flows, Moody's expects the company will need to draw the
revolver and may have challenges complying with the springing
covenant over the next 12 months.
The Caa2 rating on the company's $1.1 billion senior secured term
loan is in line with the company's CFR, reflecting the
preponderance of the debt in its capital structure, despite its
effective subordination to the $500 million asset-based revolving
credit facility. Moody's rank the revolver ahead of the term loan
in Moody's Loss-Given Default framework based on its access to more
liquid collateral in a default scenario compared to the Term Loan.
The ABL has a first priority lien on current assets and a second
priority lien on fixed assets. The Term Loan has a first priority
lien on fixed assets and a second priority lien on current assets.
The negative outlook reflects Ascend's weak credit metrics, tight
liquidity, and the uncertainties in addressing its upcoming debt
maturities in the coming months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's will downgrade the rating if its free cash flow remains
negative, liquidity continues to deteriorate, or the company fails
to address the upcoming debt maturities in a timely manner at
reasonable terms. A distressed exchange could also lead to a
downgrade of the rating.
An upgrade of the ratings is unlikely in the near term but could
occur if Ascend's operating performance improves and it starts to
generates positive free cash flow, successfully addresses its debt
maturities, and maintains sufficient liquidity.
Ascend's Credit Impact Score of CIS-5 indicates that the rating is
lower than it would have been if ESG risks did not exist.
Governance is viewed as weak from a credit standpoint due to
elevated financial leverage, weak cash flows and refinancing risks.
In addition, environmental risks due to the level of waste and
pollution from its Nylon 6,6 production process reinforce the
negative ESG impact on the rating.
Ascend Performance Materials Operations LLC ("Ascend") is an
integrated propylene based producer of Nylon 6,6. SK Titan Holdings
LLC bought the company from Solutia Inc. in 2009 and a small
remaining equity interest in 2011. Headquartered in Houston, Texas,
Ascend generated about $2.4 billion of revenues in the trailing
twelve months ended September 2024.
The principal methodology used in these ratings was Chemicals
published in October 2023.
ASTRA ACQUISITION: S&P Downgrades Issuer Credit Rating to 'SD'
--------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating (ICR) on Astra
Acquisition Corp. (d/b/a Anthology) to 'SD' (selective default)
from 'CCC'. S&P's issue-level and recovery ratings on the company's
tranche A and tranche B debt are unchanged.
Over the coming days, S&P will reassess its ICR on Anthology to
incorporate its improved cash flow metrics due to the reduction of
its interest expense obligations.
The downgrade reflects Anthology's action to enter into an
agreement which results in no obligation to pay interest on its
second-lien instrument. Anthology said that it has entered into a
formal waiver agreement with relevant parties that will prevent
cash interest from accruing on its second-lien debt instrument in
perpetuity. S&P said, "We view Anthology not living up to the
original promise to pay interest on the second lien as equivalent
to a selective default. In addition, we believe in the absence of
this transaction, the company would be vulnerable to a conventional
default sooner." Nonetheless, the waiver agreement will improve the
company's free operating cash flow (FOCF) by about $60 million
annually, which will provide it with additional financial
flexibility.
S&P said, "Over the coming days, we will reassess our ICR on
Anthology to incorporate the impact of lower interest expense
payments. We still expect Anthology to generate negative FOCF in
fiscal year 2025."
ATARA BIOTHERAPEUTICS: Narrows Net Loss to $85.4 Million in 2024
----------------------------------------------------------------
Atara Biotherapeutics, Inc., submitted its annual report on Form
10-K to the Securities and Exchange Commission, revealing a net
loss of $85.40 million on total revenue of $128.94 million for the
year ending Dec. 31, 2024. This represents a substantial
improvement compared to the previous year, when the Company
reported a net loss of $276.13 million on total revenue of $8.57
million.
As of Dec. 31, 2024, the Company had $109.1 million in total
assets, $206.4 million in total liabilities, and a total
stockholders' deficit of $97.28 million.
San Francisco, California-based Deloitte Touche LLP, the Company's
auditor since 2013, issued a "going concern" qualification in its
report dated March 7, 2025. The report cited that the Company's
recurring losses from operations raises substantial doubt about its
ability to continue as a going concern.
The Company mentioned in the report that, "Investment in
biopharmaceutical product development is highly speculative because
it entails substantial upfront capital expenditures and significant
risk that product candidates will fail to prove effective, gain
regulatory approval or become commercially viable. We have one
product, Ebvallo, which is approved in the EEA, the UK and
Switzerland and have generated limited revenues from
commercialization, and have incurred significant research,
development and other expenses related to our ongoing operations
and expect to continue to incur such expenses. As a result, we
have incurred significant operating losses in every annual
reporting period since our inception.
"We do not know when, or if, we will generate sufficient revenue
from commercialization to offset our operating expenses. We expect
to continue to incur significant expenses and operating losses for
the foreseeable future as we continue to research, develop and seek
regulatory approvals for our product candidates and any additional
product candidates we may acquire, in-license or develop. We may
encounter unforeseen expenses, difficulties, complications, delays
and other unknown factors that may adversely affect our business.
The size of our future net losses will depend, in part, on the rate
of change of our expenses and our ability to generate revenues. If
any of our product candidates fails in clinical studies or does not
gain regulatory approval, or if approved, fails to achieve market
acceptance, we may never become profitable. Even if we achieve
profitability in the future, we may not be able to sustain
profitability in subsequent periods. Our expenses may increase in
the future as we continue to invest in research and development of
our existing product candidates, investigate and potentially
acquire new product candidates."
According to the Company, "To alleviate the conditions that raise
substantial doubt about our ability to continue as a going concern,
we plan to secure additional capital, potentially through a
combination of public or private security offerings; use of our ATM
facility...and/or strategic transactions. We may need to raise
additional funding as required based on the status of our
development programs and our projected cash flows. Although we
have been successful in raising capital in the past, and expect to
continue to raise capital as required, there is no assurance that
we will be successful in obtaining sufficient funding on terms
acceptable to us to fund continuing operations, if at all, or
identify and enter into any strategic transactions that will
provide the capital that we will require. If we are unable to
obtain sufficient funding on acceptable terms, we could be forced
to delay, limit, reduce or terminate preclinical studies, clinical
studies or other development activities for one or more of our
product candidates, which could have a material adverse effect on
our business, results of operations, and financial condition.
Accordingly, we have concluded that substantial doubt exists with
respect to our ability to continue as a going concern for at least
12 months after the issuance of the accompanying consolidated
financial statements."
The full text of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1604464/000095017025035507/atra-20241231.htm
About Atara Biotherapeutics
Atara is headquartered in Southern California, Atara
Biotherapeutics -- http://www.atarabio.com/-- is a biotechnology
company focused on developing off-the-shelf cell therapies that
harness the power of the immune system to treat difficult-to-treat
cancers and autoimmune conditions. With cutting-edge science and
differentiated approach, Atara is the first company in the world to
receive regulatory approval of an allogeneic T-cell immunotherapy.
The Company's advanced and versatile T-cell platform does not
require T-cell receptor or HLA gene editing and forms the basis of
a diverse portfolio of investigational therapies that target EBV,
the root cause of certain diseases, in addition to next-generation
AlloCAR-Ts designed for best-in-class opportunities across a broad
range of hematological malignancies and B-cell driven autoimmune
diseases.
B.L.H.G. GROUP: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: The B.L.H.G. Group, LLC
d/b/a Smile Now Dental Implant
3011 South Lindsay Road
Suite 118
Gilbert, AZ 85295
Business Description: The B.L.H.G. Group, dba Smile Now Dental
Implant, is a dental practice based in
Phoenix, AZ, specializing in dental
implants. The center offers a variety of
implant services, including full-mouth
dental implants, single implants,
zygomatic implants, and bone grafting. The
Company emphasizes convenience by providing
comprehensive treatment in a single
location, utilizing advanced technology such
as CBCT imaging and digital smile design
software. The practice also offers
financing options, flexible scheduling, and
same-day solutions for implants.
Chapter 11 Petition Date: March 11, 2025
Court: United States Bankruptcy Court
District of Arizona
Case No.: 25-02029
Judge: Hon. Scott H Gan
Debtor's Counsel: Allan D. NewDelman, Esq.
ALLAN D. NEWDELMAN, P.C.
80 East Columbus Avenue
Phoenix, AZ 85012
Tel: 602-264-4550
Fax: 602-277-0144
E-mail: anewdelman@adnlaw.net
Total Assets: $180,813
Total Liabilities: $2,155,970
The petition was signed by Blake Austin as manager/member.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/GUPVIOQ/THE_BLHG_GROUP_LLC__azbke-25-02029__0001.0.pdf?mcid=tGE4TAMA
BANGL LLC: Fitch Puts 'B+' LongTerm IDR on Watch Positive
---------------------------------------------------------
Fitch Ratings has placed BANGL LLC's 'B+' Long-Term Issuer Default
Rating (IDR) and 'BB' Term Loan with a Recovery Rating of 'RR2' on
Rating Watch Positive (RWP), following MPLX LP's (MPLX; BBB/Stable)
announced intent to acquire 100% of BANGL.
The RWP reflects the anticipated acquisition closing in the coming
months, which would create an explicit rating linkage between MPLX
and BANGL. Fitch expects to resolve the Watch upon transaction
close, which could exceed six months.
BANGL's current ratings reflect its strong position in the Permian
Basin, where it operates a natural gas liquids (NGL) pipeline. The
ratings also reflect BANGL's small size, expected low leverage, and
fixed-fee business model. While BANGL avoids direct commodity price
exposure, it faces volumetric risk due to its dedication (not
take-or-pay) contracts. Credit risks include short-term operational
performance and execution risk.
Key Rating Drivers
Announced Transaction a Credit Positive: Fitch currently rates
BANGL on a standalone basis, as it is a joint venture with no
single owner exerting significant control. Once the transaction
closes, MPLX will wholly own and control BANGL, at which point MPLX
will be viewed as BANGL's parent, and Fitch's parent-subsidiary
linkage will apply. Since MPLX has a stronger rating than BANGL,
and if Fitch determines there are sufficient strategic and/or
operational incentives, BANGL's could likely see a multi-notch
upgrade. Absent this rating linkage, Fitch will continue to rate
BANGL on a standalone basis.
Fitch expects BANGL to be fully integrated in MPLX's management
decision making, products and service offering. The BANGL asset
aligns well with MPLX's Wellhead-to-Water strategy, as it is
already connected to MPLX's processing plants within the Delaware
basin. Transportation to the Sweeny hub will enable further
fractionation and eventual export.
Near-Term Execution Risk Subsiding: BANGL has substantially
completed its two primary near-term growth projects. The Gardendale
to Sweeney (GtoS) greenfield expansion reached mechanical
completion in December 2024 and the brownfield addition of pumps to
expand the BANGL mainline capacity is also nearing completion.
Fitch expects the two projects will be in service 1Q25.
BANGL's next project is significantly lower in execution risk. The
Orla to Benedum (OtoB) expansion will be roughly half the length
and require less permitting than the GtoS segment. However, the
successful on-time and on-budget completion of these projects is a
significant factor supporting Fitch's expectations for BANGL's
deleveraging. WhiteWater and MPLX have experience building
pipelines in Texas, and Fitch believes Texas has fewer regulatory
constrains versus other states.
Financial Profile Deteriorating Headroom: Fitch expects 2025
forecast leverage to rise in the near term, as the Orla-to-Bennedum
expansion ramps up. However, Fitch expects 2025 leverage to remain
within its 6.0x negative sensitivity. Leverage should decline as
EBITDA grows with increased volumes and fewer lease payments. The
company is expected to maintain lower leverage long term. BANGL
maintains adequate liquidity through its $50 million revolver. The
revolver matures in 2028.
Throughput Volumes on Target: Following lower-than-expected volumes
in 2H23 and 1Q24, BANGL revised its estimated throughput down to
151 million barrels per day (Mbbl/d) from 190 Mbbl/d in 2024. This
was primarily due to operational issues at two plants feeding the
BANGL pipeline system. These issues have since been resolved, and
the Preakness II plant began processing volumes midway through
2024. BANGL's 2024 throughput was around 148 Mbbl/d. Fitch expects
volumes to increase modestly, as operational issues have been
resolved and the Secretariat II plant expected to begin service in
2H25.
Realization of Near-Term Growth Opportunities: BANGL expects EBITDA
margin expansion through three near-term opportunities: a rise in
transportation service rates in 2025 as initial lower 'teaser
rates' expire, completion of the GtoS pipeline eliminating
third-party leasing costs to access Sweeney, and reduced
TSA-related and swap expenses as deliveries streamline. These
changes are projected to save approximately $40 million annually.
Limited Size and Scale: BANGL is relatively small in size/scale
despite its status as one of the larger NGL pipelines in the
Permian basin. Fitch anticipates the company's EBITDA to remain
below $300 million throughout the forecast period, which is
consistent with a 'B' category IDR. The company operates in the
Permian basin only. The lack of operational, geographic and
geological diversity would expose BANGL to outsized event and
capital market access risks if production or operations are
disrupted.
Fixed-Fee, Volume Exposed: BANGL operates under entirely fixed-fee
contracts, but without minimum volume commitments (MVC), exposing
most EBITDA to volume fluctuations. Plant dedication contracts
require processing on certain dedicated acreage and subsequent use
of the BANGL pipeline, with a weighted average remaining life
exceeding 10 years. Many of these plants are linked to an MVC on
adjacent pipelines (Whistler and Agua Blanca, owned by WhiteWater),
incentivizing high utilization.
Peer Analysis
BANGL operates a small, concentrated business with EBITDA under
$300 million, generating all its revenue from the transportation of
NGLs in the Permian Basin. It operates under contracts that are
largely price certain (fixed fee) but volume uncertain (no explicit
minimum volume commitments), leading to significant volume
exposure.
However, the company operates in North America's premier crude oil
basin, with globally competitive breakeven points, supported by
plant dedication contracts with its largest customers. Fitch
expects BANGL's EBITDA leverage to decline to around 4.0x from
around 7.0x over the forecast period.
M6 ETX Holdings II MidCo LLC (M6; B/Stable) is another small
midstream issuer providing gathering, processing and treating
services to natural gas producers in the Haynesville basin. It also
provides long-haul natural gas transportation to the U.S. Gulf
Coast, serving LNG export facilities as well as meeting local
industrial and utility demand. Fitch views the transmission and
pipeline segments of midstream companies to be marginally less
risky than gathering and processing (G&P) segments. Both M6 and
BANGL have limited scale, with EBITDA below $300 million.
Like BANGL, M6 derives most of its EBITDA from fixed-fee,
volume-exposed contracts. M6 is expected to be FCF negative in 2025
due to the market conditions in the Haynesville. BANGL is also
expected to be FCF negative due to its expansion projects. Once
these projects are completed, BANGL is expected to be FCF positive.
BANGL and M6 maintain similar business risk profiles. However,
BANGL is expected to pursue a more aggressive deleveraging path.
Despite the similar business risk profiles, BANGL's expected
financial profile is stronger, accounting for the one-notch
difference between the two respective IDRs.
Key Assumptions
- Oil and natural gas production consistent with the Fitch Price
Deck. No significant ethane rejection over the forecast period;
- Export markets for NGLs remain robust and BANGL's volumes
increase yoy until peak processing capacity is achieved;
- Incremental EBITDA growth beyond volume growth, due to contract
rate increases and as lease expense fall away with organic growth
projects coming on line;
- Maintenance capex increase in 2025 due to new assets (Gardendale
to Sweeney pipeline) coming into service;
- No further meaningful growth projects beyond those currently in
process;
- BANGL does not pay distributions until the Bennedum to Gardendale
and Gardendale to Sweeney construction projects are completed and
in service;
- Secured Overnight Financing Rate interest rates consistent with
the Fitch Global Economic Outlook.
Recovery Analysis
Fitch estimates the company's going-concern value will be greater
than the liquidation value. Fitch used a going-concern multiple of
6.0x EBITDA, which is in the range of most multiples for recent
reorganizations in the energy sector. There have been a limited
number of bankruptcies and reorganizations within the midstream
space, but in the limited sample (such as bankruptcies of Azure
Midstream and Southcross Holdco) the reorganization multiples were
between 5.0x and 7.0x by Fitch's estimates.
In Fitch's recent bankruptcy case study report, Energy, Power and
Commodities Bankruptcies Enterprise Values and Creditor Recoveries,
published in September 2023, the median enterprise valuation exit
multiple for the 51 energy cases with sufficient data to arrive at
an estimate was 5.3x, with a wide range of multiples observed.
The recovery analysis assumes a default in 2025 due to a covenant
violation, resulting from a low commodity price-driven reduction in
activity. This occurs along with significant delays in the BANGL
pipeline expansion. Fitch assumed a going-concern EBITDA of $100
million, higher than the current TTM EBITDA, given the default
scenario contemplated occurs after the BANGL expansion is placed
into service. Fitch assumed administrative claims of 10% and a
fully drawn revolving credit facility, both of which are standard
assumptions.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch could remove the RWP if the transaction fails to close
- Forecast EBITDA leverage above 6.0x on a sustained basis;
- Significantly lower-than-expected volumes;
- A significant increase in capex, targeted towards higher business
risk projects;
- A significant delay in construction execution;
- A significant deterioration in liquidity.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch could resolve the RWP if the transaction closes and Fitch
determines there is significant enough strategic and operational
linkages to warrant an upgrade;
- A positive rating action/upgrade could occur if BANGL's EBITDA
were expected to be sustained at or above approximately $300
million per year, with EBITDA leverage expected to be below 5.0x on
a sustained basis;
- A significant increase in the percentage of EBITDA coming from
take-or-pay-type contracts.
Liquidity and Debt Structure
As of Sept. 30, 2024, BANGL's had limited liquidity, with $191
million in cash on the balance sheet and an undrawn $50 million
revolver. Fitch expects BANGL to make modest draws on its revolver
for pipeline expansion. BANGL Term Loan B matures in July 2030, and
its revolver matures in July 2028. As of September 30th 2024 BANGL
was compliant with all of its covenants.
Issuer Profile
BANGL is a single-asset pipeline company that transports NGLs from
the Permian basin to the U.S. Gulf Coast fractionation and purity
markets. It is a joint venture among WhiteWater (45%), MPLX LP
(45%), and Diamondback Energy, Inc. (10%). It is 100% fixed-fee,
volume exposed.
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
----------- ------ -------- -----
BANGL, LLC LT IDR B+ Rating Watch On B+
senior secured LT BB Rating Watch On RR2 BB
BLACKBRUSH INVESTMENTS: Seeks Chapter 11 Bankruptcy in Texas
------------------------------------------------------------
On March 4, 2025, Blackbrush Investments LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Western District
of Texas. According to court filing, the Debtor reports between
$1 million and $10 million in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Blackbrush Investments LLC
Blackbrush Investments LLC is a limited liability company.
Blackbrush Investments LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-11092) on March
4, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Craig A. Gargotta handles the case.
The Debtor is represented by:
J. Seth Moore, Esq.
SNELL & WILMER
2501 N Harwood Street, Suite 1850
Dallas, Texas 75201
Tel: 214-305-7320
E-mail: semoore@swlaw.com
BLACKROCK TCP: Moody's Assigns Ba1 CFR & Alters Outlook to Stable
-----------------------------------------------------------------
Moody's Ratings has downgraded BlackRock TCP Capital Corp.'s (TCPC)
senior unsecured ratings to Ba1 from Baa3, and assigned the company
a Ba1 corporate family rating. Moody's have also changed TCPC's
outlook to stable from negative.
RATINGS RATIONALE
Moody's have downgraded TCPC's senior unsecured debt rating to
reflect the business development company's (BDC) weaker earnings
and asset quality performance in the latest quarter and over the
past year. TCPC reported adjusted net realized and unrealized
losses of $69.3 million in the fourth quarter of 2024, which
contributed to a quarterly net loss of $38.5 million. The net loss
for full-year 2024 was $63.1 million compared to a net profit of
$38.5 million in 2023, the decline reflecting $206.5 million of net
realized and unrealized portfolio losses (adjusted for the purchase
accounting effects related to TCPC's acquisition of BlackRock
Capital Investment Corporation) recorded in 2024.
TCPC's non-accrual loans rose to 14.4% of total investments (at
cost) as of December 31, 2024 from 9.3% as of September 30, 2024,
which continues to be the highest level among rated BDC peers.
TCPC's high balance of non-accrual loans increases the likelihood
that the BDC will realize further losses this year. The decline in
TCPC's net asset value (NAV) has moderately weakened the BDC's
cushion against its 150% regulatory minimum asset coverage
requirement, which slipped to 19.3% as of December 31, 2024 from
22.1% as of September 30, 2024 and is below the September 30, 2024
peer median of 28%.
Moody's have also changed TCPC's outlook to stable based on Moody's
expectations that the Ba1 rating level incorporates the BDC's
vulnerability to further asset quality and earnings challenges.
The ratings and outlook also consider TCPC's external management by
Tennenbaum Capital Partners, LLC, an indirect subsidiary of
BlackRock, Inc. (Blackrock; Aa3 negative), the world's largest
asset manager, which has been active in direct lending for over 20
years. Helpful steps that management is taking to improve TCPC's
financial condition include a reduction in the BDC's regular
quarterly dividend to 25 cents/share from 34 cents/ share and a
waiver of one-third of its base management fee for the first three
quarters of 2025. Blackrock's investments in private credit,
including notably its pending acquisition of HPS Investment
Partners, LLC, also provide a basis for expecting that TCPC's asset
quality and earnings challenges will eventually stabilize, but in
the meantime Moody's expects that the BDC's performance risks will
be elevated compared to most peers.
TCPC's ratings reflect the BDC's focus on senior secured lending to
core middle-market businesses in diverse sectors. At December 31,
2024, 91% of TCPC's portfolio was comprised of senior secured
investments, including 84% first-lien secured loans. TCPC's
portfolio has modest borrower concentrations, though notably its
exposures to Amazon aggregators Razor, Thras.io and Seller X have
been a source of credit challenges over the past year. In the
fourth quarter of 2024, TCPC recorded a $50.3 million unrealized
loss on its investments in Razor, leading to a total fair value of
$25.3 million at quarter-end versus a cost of $89.7 million.
TCPC's asset coverage ratio (ACR) measured 179% as of December 31,
2024, down moderately from 183% as of September 30, 2024,
reflecting the decline in NAV. The BDC's regulatory (which excludes
SBIC debentures) and total debt-to-equity ratios measured 1.27x
(1.14x net debt) and 1.42x (1.31x net debt), respectively, up from
1.20x (1.08x net debt) and 1.34x (1.22x net debt) as of September
30, 2024. In contrast, the BDC peer median total debt-to-equity
ratio as of September 30, 2024 was 0.99x. TCPC's leverage is within
its target range of 0.9x-1.2x net regulatory debt-to-equity.
TCPC has effectively managed its liquidity position, having
extended the maturity of its three revolving borrowing facilities
during 2024, which together had borrowing availability of $509
million as of December 31, 2024. Unsecured bond maturities in 2025
are a manageable $92 million but a further $325 million matures in
February 2026. Cash balances, borrowing availability and expected
net portfolio repayments during the year should provide coverage
should market access to debt capital contract.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade TCPC's ratings if the company: 1) generates
stronger and more stable profitability comparable to higher rated
peers; 2) reduces non-accrual loans toward peer median levels while
maintaining a high senior secured loan portfolio composition; 3)
improves its ACR cushion and lowers its total debt-to-equity ratio
toward the peer median; 4) maintains strong funding diversity and
maintains a secured debt-to-assets ratio (SBIC debt as unsecured)
of less than 30%; and 5) sustains strong liquidity coverage.
Moody's could downgrade TCPC's ratings if the company: 1) reports
further material earnings and asset quality deterioration; 2)
reduces its ACR cushion; 3) materially increases its funding
reliance on secured debt; or 4) decreases the strength of its
liquidity coverage and borrowing availability.
The principal methodology used in these ratings was Finance
Companies published in July 2024.
BORDER PROPERTIES: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The U.S. Trustee for Region 7 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Border Properties Group, LLC.
About Border Properties Group
Border Properties Group, LLC is the fee simple owner of six
properties located in Ruidoso, N.M., and El Paso, Texas, with a
total current value of $9.96 million.
Border Properties Group sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Texas Case No. 25-30142) on February
3, 2025. In its petition, the Debtor reported total assets of
$10,000,000 and total liabilities of $15,641,365.
Judge Christopher G. Bradley handles the case.
The Debtor is represented by:
Corey W. Haugland, Esq.
James & Haugland, P.C.
609 Montana Avenue
El Paso, TX 79902
Tel: (915) 532-3911
Fax: (915) 541-6443
Email: chaugland@jghpc.com
BREAD FINANCIAL: Fitch Gives B(EXP) Rating on New $400MM Sub. Debt
------------------------------------------------------------------
Fitch Ratings has assigned Bread Financial Holdings' (BFH;
BB-/Positive) proposed subordinated debt of $400 million an
expected rating of 'B (EXP)'.
The proposed debt will pay a fixed rate for five years and reset to
a new fixed rate against the then current five-year U.S. treasury
security, plus a spread to be determined at issuance, for the next
five years. BFH plans to use the proceeds to establish its Tier 2
capital base at the parent and subsidiary, Comenity Capital Bank,
and for general purposes, which may include share repurchases.
The final rating is subject to the receipt of final documentation
conforming to information already received.
Key Rating Drivers
BFH's subordinated debentures are rated two notches below its 'bb-'
Viability Rating (VR), which conforms with baseline notching for
subordinated debt, according to Fitch's "Bank Rating Criteria". The
rating reflects two notches for loss severity and none for
non-performance risk. In November 2024, Fitch revised Bread's
Rating Outlook to Positive from Stable and affirmed its Issuer
Default Rating (IDR) at 'BB-' and VR at 'bb-'.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A downgrade of BFH's Viability Rating would lead to a downgrade of
the expected subordinated debt rating.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade of BFH's Viability Rating would lead to an upgrade of
the expected subordinated debt rating.
Date of Relevant Committee
20-Feb-2025
ESG Considerations
Bread Financial Holdings, Inc. has an ESG Relevance Score of '4'
for Customer Welfare - Fair Messaging, Privacy & Data Security due
to for Customer Welfare - Fair Messaging, Privacy, and Data
Security due to its exposure to compliance risks including fair
lending practices, debt collection practices and consumer data
protection, which has a negative impact on the credit profile, and
is relevant to the ratings in conjunction with other factors.
Bread Financial Holdings, Inc. has an ESG Relevance Score of '4'
for Financial Transparency. Due to the company's non-BHC status for
regulatory purposes, BFH has exposure to quality of financial
reporting and auditing processes, which has a negative impact on
the credit profile, and is relevant to the ratings in conjunction
with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating
----------- ------
Bread Financial
Holdings, Inc.
Subordinated LT B(EXP) Expected Rating
BREAD FINANCIAL: Moody's Gives Ba3 Rating on New Subordinate Debt
-----------------------------------------------------------------
Moody's Ratings has assigned a rating of Ba3 to Bread Financial
Holdings, Inc.'s new subordinate debt issuance. Concurrently,
Moody's affirmed all of the ratings and assessments of Bread
Financial, and its bank subsidiaries Comenity Bank (Comenity) and
Comenity Capital Bank (Comenity Capital). The affirmations include
the ba2 baseline credit assessments (BCAs) and adjusted BCAs for
Comenity and Comenity Capital, along with the Ba3 long-term issuer
ratings, Baa3/Prime-3 long- and short-term deposit ratings,
Ba2/Not-Prime long- and short-term counterparty risk ratings and
Ba1(cr)/Not-Prime(cr) long- and short-term counterparty risk
assessments. Bread Financial's Ba3 long-term issuer and senior
unsecured ratings were also affirmed. The outlooks for Bread
Financial's Ba3 long-term issuer and senior unsecured ratings and
Comenity's and Comenity Capital's Baa3 long-term deposit ratings
and Ba3 long-term issuer ratings remain positive.
The $400 million subordinate debt issuance will be included in
Bread Financial's Tier II capital and bolster its total risk-based
capital ratio. A portion of the proceeds will be used to issue
subordinated debt to Comenity Capital Bank with the remaining
proceeds intended to be used for general corporate purposes, which
may include share repurchases.
RATINGS RATIONALE
The subordinate debt rating of Ba3 reflects Moody's advanced Loss
Given Failure (LGF) analysis for banks. For this analysis, Moody's
assumes residual tangible common equity of 3% and losses
post-failure of 13% of tangible banking assets. These assumptions
are in line with Moody's standard assumptions for US Title I banks.
Because of the relative thinness of Bread Financial's debt
structure and modest levels of subordination, Moody's see possible
loss severity in all of its debt classes to be potentially high.
The affirmation of Bread Financial's ratings and its banks
subsidiaries' assessments and ratings reflect its very profitable,
but highly concentrated business in US credit cards, which makes it
more vulnerable to economic cycles. The ratings also reflect
Moody's views that the company faces elevated execution risk as
management works towards strengthening its capital, funding, and
liquidity planning and operational and financial risk management
following its shift to a more conservative financial strategy, and
risk management framework that is more comparable to the bank
holding company structure of its peers than its industrial loan
company (ILC) structure.
Comenity and Comenity Capital's long-term issuer ratings are Ba3;
one notch below the banks' BCAs and at the same level as Bread
Financial's issuer rating. The volume of parent company (holdco)
debt in Bread Financial's funding structure is above the threshold
under Moody's Advanced Loss Given Failure framework that would
support the banks' issuer ratings being rated at the same level as
their BCAs at Ba2. However, because regulators have more limited
enforcement powers in a potential bank resolution with respect to
the parent companies of ILCs than they do with bank holding
companies, Moody's do not presumes bank-level debt would be treated
as being senior to holdco debt in a resolution and thus the banks'
issuer ratings were affirmed at Ba3, the same level as the holdco's
issuer rating.
The positive outlook reflects Bread Financial's meaningful progress
toward enhancing its enterprise risk management framework and
expanding its capital, funding and liquidity planning beyond its
bank subsidiaries to the holding company level to be more
consistent with peers. Further progress on the implementation and
execution upon these initiatives, together with sustained higher
capital levels and credit performance stabilization over the
outlook horizon, could result in an upgrade of the BCAs and
ratings.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The BCAs of Bread Financial's bank subsidiaries (Comenity and
Comenity Capital) could be upgraded upon the full implementation
and evidence of the effectiveness of its enterprise risk management
framework including capital, funding and liquidity planning
policies. An upgrade would also be contingent upon the company
maintaining Moody's TCE as a percentage of RWA above 12.5%,
demonstrating further improvement in asset quality, and sustaining
a return on tangible assets of at least 2%.
Bread Financial's ratings would likely be upgraded if its bank
subsidiaries' BCAs are upgraded barring any meaningful changes to
its funding structure.
The outlooks for Bread Financial's senior unsecured and long-term
issuer ratings together with Comenity's and Comenity Capital's
long-term issuer and deposit ratings could be revised to stable if
management is unsuccessful or incurs meaningful delays in further
updating its enterprise risk management framework, or if Moody's
TCE ratio measurement falls and is sustained below 12.5%. Given the
positive outlook, a downgrade is less likely in the near-term.
Longer-term, the BCAs of Bread Financial's bank subsidiaries
(Comenity and Comenity Capital) could be downgraded if there is a
sustained decline in consolidated capitalization (Moody's Ratings
TCE % RWA below 10%) or a material decline in asset quality and
profitability over a sustained period.
Bread Financial's ratings would likely be downgraded if its bank
subsidiaries' BCAs are downgraded barring any meaningful changes to
its funding structure.
The principal methodology used in these ratings was Banks published
in November 2024.
CAPITAL PROPERTIES: Unsecureds to Get 100 Cents on Dollar in Plan
-----------------------------------------------------------------
Capital Properties and Home Services, LLC, filed with the U.S.
Bankruptcy Court for the Eastern District of California a Plan of
Reorganization for Small Business.
The Debtor is an LLC. Debtor has been in the business of remodeling
and selling residential real property.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $950,000.00. The final
Plan payment is expected to be paid on February 1, 2025.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 100 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 3 consists of Non-priority unsecured creditors. Class 3 is
unimpaired by this Plan, and each holder of a Class 3 Priority
Claim will be paid in full, in cash, upon the later of the
effective date of this Plan, or the date on which such claim is
allowed by a final non-appealable order.
The allowed unsecured claims total $104,047.36.
Class 4 consists of Equity security holders of the Debtor. Class 4
is unimpaired by this Plan, and each holder of a Class 4 Priority
Claim will be paid in full, in cash, upon the later of the
effective date of this Plan, or the date on which such claim is
allowed by a final non-appealable order.
The Plan will be paid in full from the sale of (2) properties.
A full-text copy of the Plan of Reorganization dated Feb. 24, 2025
is available at https://urlcurt.com/u?l=VcafPy from
PacerMonitor.com at no charge.
About Capital Properties and Home Services
Capital Properties and Home Services, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No.
24-25376) on Nov. 26, 2024, with $0 to $50,000 in assets and
$500,001 to $1 million in liabilities.
Judge Christopher D. Jaime presides over the case.
Counsel to the Debtor:
Peter G. Macaluso, Esq.
LAW OFFICES OF PETER G. MACALUSO
7230 South Land Park Drive, Suite 127
Sacramento, CA 95831
Tel: (916) 392-6591
Cell: (916) 705-8847
Fax: (916) 392-6590
Email: info@pmbankruptcy.com
CAREPOINT HEALTH: Insurers Consider Ch. 11 Plan 'Fatally Flawed'
----------------------------------------------------------------
MJ Koo of Law360 reports that an insurer has requested that a
Delaware bankruptcy judge reject CarePoint Health Systems' Chapter
11 plan, claiming it unfairly favors the debtor's landlord by
granting liability releases.
The Troubled Company Reporter, citing Emlyn Cameron of Law360, also
reported that 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.
CELANESE US: Moody's Rates New Senior Unsecured Notes 'Ba1'
-----------------------------------------------------------
Moody's Ratings has assigned Ba1 ratings to Celanese US Holdings
LLC's proposed backed senior unsecured notes and a (P)Ba1 rating to
the senior unsecured shelf. Celanese's Ba1 Corporate Family Rating,
Ba1-PD Probability of Default Rating and SGL-2 Speculative Grade
Liquidity Rating remain unaffected by the notes issuance. The
outlook is negative.
RATINGS RATIONALE
Moody's expects the notes issuance will improve Celanese's debt
maturity and liquidity profile. There is no impact on the company's
credit metrics as the proceeds from the notes will be used to repay
outstanding debt, including the 4.777% Senior Notes due 2026 and a
portion of the outstanding 6.165% Senior Notes due 2027, a portion
of the outstanding borrowings under the Five-Year Term Loan Credit
Agreement, borrowings under the US Revolving Credit Agreement and
the 364-Day Term Loan Credit Agreement.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Celanese' rating could be downgraded if the company fails to
improve its earnings, generate at least $500 million of free cash
flow and make progress on reducing debt leverage towards 4.5x in
the next two years through a combination of free cash flow
generation and asset divestures.
Rating upgrade would require earnings improvement, debt leverage
below 3.5x and free cash flow to debt over 10% on a sustained
basis, as well as management's commitment to conservative financial
policies. Maintaining a strong and competitive business profile
with positive revenues growth and an over 20% EBITDA margin are
also key factors for us to consider a rating upgrade.
Celanese Corporation, headquartered in Irving, Texas, is a leading
global producer of acetyls, vinyl acetate monomer, emulsions,
acetate tow and engineered thermoplastics. Celanese acquired
majority of DuPont de Nemours, Inc.'s (DuPont) M&M business in an
all debt financed transaction in 2022. Sales are around $10-13
billion depending on commodity prices. Celanese US Holdings LLC is
the main issuer of corporate debt and is a co-borrower under the
credit facilities.
The principal methodology used in these ratings was Chemicals
published in October 2023.
CGL HOLDCO: Chapter 15 Case Summary
-----------------------------------
Chapter 15 Debtor: CGL Holdco, LLC
1000 North King Street,
Wilmington, DE 19801
United States
Business Description: CGL Holdco, LLC, through its parent
company Chesswood Group, is a
specialty finance company that
provides financing and investment
management solutions to niche markets,
which are often underserved by
traditional financial institutions.
The Company delivers these services
through its various subsidiaries,
focusing on specialized sectors and
customer needs.
Chapter 15 Petition Date: March 6, 2025
Court: United States Bankruptcy Court
District of Delaware
Case No.: 25-10394
Judge: Hon. Craig T Goldblatt
Foreign Representative: FTI Consulting Canada Inc.
Toronto-Dominion Centre, TD South
Tower, 79
Wellington St W Suite 2010
Toronto, ON M5K 1G8
Foreign Proceeding: In The Matter of the Companies'
Creditors Arrangement Act, R.S.C.
1985, C. C-36, as Amended and in the
Matter of a Plan of Compromise or
Arrangement of Chesswood Group
Limited, Case Funding Inc., Chesswood
Holdings Ltd., Pawnee Leasing
Corporation, Chesswood US
Acquisitionco Ltd., Lease-Win
Limited, Windset Capital Corporation,
Tandem Finance, Inc., Chesswood
Capital Management Inc., Chesswood
Capital Management USA Inc., 942328
Alberta Inc. (f/k/a Rifco National
Auto Finance Corporation), 908696
Alberta Inc. (f/k/a Rifco Inc.),
Waypoint Investment Partners Inc.,
1000390232 Ontario Inc., and CGL
Holdco, LLC
Foreign
Representative's
Counsel: Kenneth J. Enos, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
1000 N. King Street
Wilmington, DE 19801
Tel: 302-571-6600
Email: kenos@ycst.com
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/6CHIOKA/FTI_Consulting_Canada_Inc_and__debke-25-10394__0001.0.pdf?mcid=tGE4TAMA
CITRUS360 LLC: Seeks Chapter 11 Bankruptcy in Texas
---------------------------------------------------
On March 3, 2025, Citrus360 LLC filed Chapter 11 protection in the
U.S. Bankruptcy Court for the Southern District of Texas.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Citrus360 LLC
Citrus360 LLC is a limited liability company.
Citrus360 LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Tex. Case No. 25-70056) on March 3, 2025. In its
petition, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
Honorable Bankruptcy Judge Eduardo V. Rodriguez handles the
case.
The Debtor is represented by:
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
COMPASS MINERALS: Moody's Cuts CFR to 'B2' & Alters Outlook to Neg.
-------------------------------------------------------------------
Moody's Ratings downgraded Compass Minerals International, Inc.'s
corporate family rating to B2 from B1, its probability of default
rating to B2-PD from B1-PD, and the rating of its existing senior
unsecured notes to B3 from B2. The speculative grade liquidity
rating (SGL) remains at SGL-3. The outlook is revised to negative
from stable.
Governance considerations under the Moody's ESG framework,
including financial strategy and risk management, were a key driver
of the rating action given Compass' elevated leverage and weakened
credit metrics. A combination of unfavorable weather conditions and
strategic missteps in recent years consumed a significant amount of
capital and reduced operating and financial flexibility.
RATINGS RATIONALE
The downgrade reflects the decline in Compass' Moody's adjusted
EBITDA in recent years, driven by a combination of mild winters and
a challenging plant nutrition market. Since January 2024, Compass
has replaced a number of its senior executives and implemented a
new strategy refocusing on the core business and prioritizing cash
flow generation for deleveraging (e.g., the lithium project was
terminated and dividends eliminated). While Moody's views these as
positive developments, Moody's expects Compass' credit metrics to
remain challenged in fiscal 2025. Moody's expects Compass to
generate FY2025 Moody's Adjusted EBITDA of approximately $170
million, resulting in Moody's adjusted leverage of 6.2x by the end
of fiscal 2025. Despite the expectation of a more favorable winter,
Moody's expects modestly lower EBITDA primarily due to lower
margins driven by mix and higher production costs associated with
the Goderich production curtailment. Moody's expects a modest
volume recovery for the Plant Nutrition segment, offset by
continued challenges in pricing and elevated production costs.
Assuming normal winter conditions, Moody's forecast the company to
generate over $220 million in Moody's adjusted EBITDA for fiscal
2026, resulting in Moody's adjusted leverage of approximately 4.7x
by the end of fiscal 2026. Moody's do not expect the company to
generate positive free cash flow in fiscal 2025 primarily due to
lower EBITDA relative to its interest obligations and capex needs.
The lack of expected free cash flow generation in fiscal 2025 will
continue to weigh on Compass' liquidity profile. Moody's expects
Compass to generate modest positive free cash flow starting in
fiscal 2026, supported by a recovery in EBITDA, better working
capital management and more capital discipline.
The negative outlook reflects the company's limited liquidity as
well as potential negative financial impact from the recently
implemented tariffs on Canadian imports into the US Compass'
largest mine is in Ontario, Canada and its exports into the US will
be subject the 25% tariff. Uncertainty over the duration of the
tariff and a resolution of US-Canada trade tension creates
significant risks on financial performance and credit metrics.
Compass' credit profile is supported by the company's strong
competitive position in the North American salt industry,
traditionally attractive EBITDA margins of the Salt segment and
ability to generate robust operating cash flow during normal
winters. Compass Minerals owns high-quality and low-cost salt
deposits in addition to an efficient distribution network that
utilizes cost-efficient water transportation. The company is also a
low-cost producer of sulfate of potash (SOP) fertilizer from
naturally occurring brines in the Great Salt Lake.
The credit profile reflects the company's limited scale, elevated
leverage, and concentrated exposure to the salt segment. The credit
profile is also constrained by the relatively unpredictable
weather-related nature of the de-icing salt and plant nutrition
businesses, resulting in higher earnings and leverage volatility.
Liquidity analysis
Compass has adequate liquidity. The company has approximately $46
million of cash on balance sheet and $81 million of availability
under its $325 million revolver as of 12/31/2024. The company also
has access to a $100 million AR securitization facility, of which
approximately $58 million was utilized as of 12/31/2024. As part of
the credit agreement amendment executed in December 2024, the
revolver commitment size will be reduced to $300 million by October
2025, $275 million by April 2026, and further to $250 million by
July 2026.
Going forward, Moody's expects the company to continue relying on
the revolver and its AR securitization facility for seasonal
working capital swings, liquidity needs and growth projects.
Structural considerations
The $500 million senior unsecured notes due 2027 are rated B3, one
notch below the B2 CFR, reflecting their subordinated ranking in
the capital structure that includes first-lien senior secured
credit facilities in the form of $325 million revolver and $200
million term loan (both unrated). The senior secured facilities are
secured and guaranteed by all material US subsidiaries, 65% of the
stock of certain foreign subsidiaries and by the Goderich mine in
Canada. The revolver includes a $40 million sub-limit for Canadian
borrowings and a $10 million sub-limit for UK borrowings guaranteed
by the Canadian and UK subsidiaries, respectively.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's would consider upgrading the ratings if the company reduces
its gross debt such that Moodys-adjusted leverage sustains below
4.75x during mild winters, generates positive free cash flow on a
sustained basis, and lowers its earnings dependence on the de-icing
salt business.
Moody's would consider a downgrade of the ratings if the company is
unable to consistently generate positive free cash flow, adjusted
leverage remains above 6.5x on a sustained basis, or if the company
is unable to secure additional liquidity. A downgrade would also be
considered if tariffs on Canadian goods sold in the US were
implemented on a prolonged basis.
The principal methodology used in these ratings was Chemicals
published in October 2023.
CONFLUENCE TECHNOLOGIES: Moody's Withdraws Caa3 Corp. Family Rating
-------------------------------------------------------------------
Moody's Ratings has withdrawn all ratings for Confluence
Technologies, Inc. including the Caa3 corporate family rating and
the Ca-PD probability of default rating. At the same time, Moody's
have withdrawn the Caa2 senior secured first lien bank credit
facility ratings. At the time of withdrawal the outlook was
negative.
RATINGS RATIONALE
Moody's have decided to withdraw the rating(s) following a review
of the issuer's request to withdraw its rating(s).
Confluence, which is principally owned by Clearlake Capital Group,
L.P.'s ("Clearlake") and TA Associates Management, L.P. ("TA"),
provides, primarily through a SaaS-based sales model, performance
reporting, analytics, regulatory reporting, risk, and data
solutions to capital markets clients.
CORTO II LLC: Case Summary & One Unsecured Creditor
---------------------------------------------------
Debtor: Corto II, LLC
P.O. Box 4858
Laguna Beach, CA 92652
Business Description: Corto II, LLC owns the property located at
APN: 149-160-32-00, 149-160-33-00 Corto St.,
Oceanside, CA 92054, with a current value of
$2.7 million based on a broker's opinion.
Chapter 11 Petition Date: March 8, 2025
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-10597
Judge: Hon. Theodor Albert
Debtor's Counsel: James Mortensen, Esq.
SOCAL LAW GROUP, PC
2855 Michelle Drive 120
Irvine CA 92606
Tel: 213-387-7414
E-mail: pimmsno1@aol.com
Total Assets: $2,700,000
Total Liabilities: $2,006,400
The petition was signed by David S. Abernathy as manager.
The Debtor has listed Elevatio Engineering Group, located at 18594
Beach Blvd, #659, Huntington Beach, CA, 92648, as its sole
unsecured creditor, which has a claim of $6,400.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/ZPXSZLY/Corto_II_LLC__cacbke-25-10597__0001.0.pdf?mcid=tGE4TAMA
D&D TRUCKING: Joe Supple Named Subchapter V Trustee
---------------------------------------------------
The Acting U.S. Trustee for Region 4 appointed Joe Supple, Esq., at
Supple Law Office, PLLC as Subchapter V trustee for D&D Trucking,
LLC.
Mr. Supple will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Supple declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Joe M. Supple, Esq.
Supple Law Office, PLLC
801 Viand Street
Point Pleasant, WV 25550
304-675-6249
Email: joe.supple@supplelawoffice.com
About D&D Trucking
D&D Trucking, LLC filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. N.D. W.Va. Case No. 25-00075) on
February 24, 2025, listing between $100,001 and $500,000 in both
assets and liabilities.
Martin P. Sheehan, Esq. at Sheehan & Associates, P.L.L.C. presides
over the case.
DAVE & BUSTER'S: S&P Alters Outlook to Negative, Affirms 'B' ICR
----------------------------------------------------------------
S&P Global Ratings revised its rating outlook on Dallas-based
dining and entertainment venue operator Dave & Buster's Inc. (D&B)
to negative from positive and affirmed all its ratings on the
company including its 'B' issuer credit rating.
The negative outlook reflects risk to S&P's base case due to
pressure on discretionary purchases; tight household budgets,
especially for lower income consumers; and uncertainty that
renovations and other efforts will improve traffic and stabilize
same store sales.
The outlook revision reflects D&B's weaker-than-expected operating
results and the potential for continued declines in same-store
sales and margin compression. The company's comparable store sales
declined 8% during its third quarter ending Nov. 5, 2024, as lower
guest traffic more than offset higher prices. S&P said, "We expect
improving but still negative sales pressure for D&B next year as
customers reduce discretionary spending due to stretched household
budgets, particularly in the lower income bracket. Furthermore,
consumers have an increasing assortment of entertainment options
and overall consumer spending is shifting to goods from services.
In addition, same-store-sales pressure on a relatively fixed cost
base has hampered operating margins. At the same time, the company
has aggressively expanded its store base, resulting in higher
manager headcount, occupancy costs, and marketing expenses. Based
on our expectations for a weakening consumer environment, we
believe there is risk that sales will not keep pace with increased
operating expenses. While we expect the company to slow down the
pace of its remodeling, which should benefit cash flows, we
forecast low FOCF in our base case. Because the company's growth
capex only keeps revenue flattish, we think growth capex is
difficult to pare back further. FOCF could deteriorate beyond our
expectations to negative levels if the consumer environment weakens
further, which could be commensurate with a lower rating."
S&P said, "We project 2025 FOCF of $10 million following a reported
FOCF deficit in 2024, mostly driven by lower capex and a small
amount of EBITDA growth. While the company originally planned on 60
remodels next year (anticipating 68% of its store base remodeled by
the end of 2025), we now expect it to slow its pace of remodels due
to ongoing same-store sales (SSS) declines and execution missteps.
We expect SSS declines to persist over the next 12 months and for
adjusted EBITDA margins to remain flattish, though lower compared
to 2022 and 2023. We also think the company could continue
repurchasing shares funded with the revolver, although at a lower
level than 2024. Given our expectation for slightly higher EBITDA
and increased utilization of the $650 million revolving credit
facility, we project S&P Global Ratings-adjusted debt to EBITDA of
4.4x through 2025.
"We believe same-store sales declines will persist and
traffic-driving initiatives will take longer to bear fruit. We
expect traffic declines in 2025 following seven consecutive
quarters of SSS declines worsening this year (negative 6.8% in the
first quarter of 2024, negative 6.3% in the second quarter of 2024,
and negative 7.7% in the third quarter of 2024). We believe the
lower income consumer—comprising 60% of D&B's customer
base—will remain stretched by food inflation, increased credit
card debt, and stagnant wages, given their spending was down twice
as much as other income quintiles in the third quarter of 2024.
Despite our expectation for growth in the special events business,
we anticipate continued low- to mid-single digit SSS declines next
year. We believe traffic-driving initiatives including the
remodeling expansion plan and game and menu enhancements will take
longer to show results, as we think the brand may need to earn back
the attention of customers. The consumer discretionary space has
faced increased competition and macro pressures, with same-store
sales declines reported by many leading players. There is risk that
increased food-at-home inflation results in further pressure on
discretionary spending. D&B offers a highly discretionary service
and faces heavy competition in a fragmented market from both
restaurant operators and entertainment venues competing for
customer traffic. Competitors include localized attractions such as
movie theaters, sporting events, bowling alleys, sports centers,
arcades, night clubs, restaurants, and theme parks. Despite added
diversity to the customer base following the 2022 acquisition of
Main Event to now include both adults and families with young
children, we believe the consumer discretionary space continues to
face intensifying competitive pressures and additional
susceptibility to economic downturns.
'We thus forecast 2% overall revenue growth next year with 7%
growth of the store base largely offset by SSS contraction of about
5%. However, the negative outlook reflects risk to our base case
that challenges re-establishing the brand and slower traffic may
result in further traffic declines and pressure on same-store
sales. Additionally, we see risk that margins decline due to the
sales pressure and a largely fixed cost base such that credit
metrics and cash flow weaken.
"The negative outlook reflects the risk we could lower the rating
if the company faces extended demand weakness that causes continued
same-store sales declines, margin pressure, and sustained weak FOCF
generation."
S&P could lower the rating on D&B if:
-- S&P expects mid-single-digit same-store sales declines to
persist longer than projected in our forecast; or,
-- S&P expects S&P Global Ratings-adjusted FOCF- to debt sustained
below 3%. In this scenario, it would anticipate the company
continuing to rely heavily upon significant growth capital
investments to sustain revenue levels.
S&P could revise the outlook to stable on D&B if:
-- S&P expects sustained positive same-store sales growth and FOCF
to debt consistently maintained above 3%.
-- S&P expects S&P Global Ratings-adjusted EBITDA margins of about
33% in line with 2023 levels.
DOUBLE HELIX: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Double Helix Corporation
d/b/a KDHX Community Media
3524 Washington Ave
Saint Louis MO 63103
Business Description: Double Helix Corporation, doing business as
KDHX Community Media, is a nonprofit
organization based in St. Louis, Missouri,
that operates an independent, non-commercial
radio station at 88.1 FM. The station
offers a wide variety of programming,
including music, as well as public affairs
shows and educational content. In addition
to its radio broadcasts, KDHX engages with
the local community through events,
educational programs, and support for
independent artists.
Chapter 11 Petition Date: March 10, 2025
Court: United States Bankruptcy Court
Eastern District of Missouri
Case No.: 25-40745
Judge: Hon. Bonnie L Clair
Debtor's Counsel: Robert Eggmann, Esq.
CARMODY MACDONALD P.C.
Saint Louis MO 63105
Tel: (314) 854-8600
E-mail: ree@carmodymacdonald.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Kelly K. Wells as executive director.
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/OU2EQ3A/Double_Helix_Corporation__moebke-25-40745__0001.0.pdf?mcid=tGE4TAMA
EAGLEVIEW TECHNOLOGY: In Talks w/ Lenders for Loan Extension
------------------------------------------------------------
Reshmi Basu of Bloomberg News reports that EagleView Technology
Inc., a provider of aerial imagery and data analytics, is
negotiating with creditors on an amend-and-extend proposal to delay
the maturity of its existing loan, which is set to expire in less
than six months, according to sources familiar with the situation.
The discussions focus on obtaining fresh capital from
junior-ranking creditors, with the proceeds aimed at reducing the
company's outstanding debt balance, the sources said, requesting
anonymity due to the confidential nature of the matter.
About EagleView Technology Inc.
EagleView Technology Inc. is a provider of aerial imagery and data
analytics.
ECTUL HOLDINGS: Case Summary & One Unsecured Creditor
-----------------------------------------------------
Debtor: Ectul Holdings, LLC
121 Alhambra Plaza, 10th Floor
Miami, FL 33134
Business Description: The Debtor owns three retail spaces at 1300
Brickell Bay Drive, Miami, FL 33131,
including Unit CU-8 (Folio 01-4139-125-
3820), Unit CU-9 (Folio 01-4139-125-3830),
and Unit CU-11 (Folio 01-4139-125-3850),
with a total value of $14 million.
Additionally, the Debtor owns a separate
property at 1331 Brickell Bay Drive, #4607,
Miami, FL 33131, valued at $5 million based
on comparable sales.
Chapter 11 Petition Date: March 8, 2025
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 25-12521
Debtor's Counsel: Diego G. Mendez, Esq.
MENDEZ LAW OFFICES
P.O. Box 228630
Miami, FL 33222
Tel: 305-264-9090
E-mail: INFO@MENDEZLAWOFFICES.COM
Total Assets: $19,000,000
Total Liabilities: $13,302,315
The petition was signed by Elgio Cedeno as authorized member.
The Debtor has listed Blue Waves Investment, LLC, located at 18620
N. Bay Rd, North Miami Beach, FL 33160 as its sole unsecured
creditor, which has a claim of $800,000.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/VYGESWY/ECTUL_HOLDINGS_LLC__flsbke-25-12521__0001.0.pdf?mcid=tGE4TAMA
EEJ HOSPITALITY: Unsecureds to Get $1,422 per Month for 60 Months
-----------------------------------------------------------------
EEJ Hospitality, Inc., filed with the U.S. Bankruptcy Court for the
Northern District of Texas a Chapter 11 Plan of Reorganization
dated February 24, 2025.
Founded in 2020, the Debtor is an investment holding company in
South Lake, Texas that was originally formed to own and operate a
Dickey's Barbeque Pit restaurant located in Fort Worth, Texas, as a
franchisee.
As of the petition date, the Debtor is actively preparing to begin
five separate construction contracts for commercial hotel
properties in the Dallas/Fort Worth area. Due to cash flow issues
caused by a sudden drop in revenue (a direct result of the COVID-19
pandemic) the Debtor incurred large Net Operating Losses ("NOLs")
from the restaurant activities and has since decided to exit the
restaurant investment.
The Debtor wishes to continue to grow operations in the
construction sector and utilize the carryover NOLs that were
generated by the COVID-19 pandemic's effects on its prior
restaurant venture. The Debtor wishes to preserve these existing
NOLs and use them as an offset against future profits generated
from the construction materials business.
Class 3 consists of Allowed Unsecured Claims. In the event the Plan
is a consensual plan pursuant to Sections 1191(a) and 1129(a), the
Debtor shall make sixty consecutive monthly payments commencing
thirty days after the Effective Date in the amount of $1,422.72
(the "Monthly Payment"), which amount equals the Debtor's
Disposable Income identified on the Debtor's Projections. The
Holders of Allowed Unsecured Claims shall receive their pro rata
share of the Monthly Payment.
In the event the Plan is a nonconsensual plan under Section
1191(b), the Debtor shall make sixty consecutive monthly payments
commencing thirty days after the Effective Date in the amount of
the Monthly Payment, which amount equals the Debtor's Disposable
Income identified on the Debtor's Projections. The Holders of
Allowed Unsecured Claims shall receive their pro rata share of the
Monthly Payment.
The Debtor shall be allowed to cure up to two defaults. Upon a
third default, the Holder of the Allowed Secured Claim at its
option, may declare the default non-cureable and proceed to collect
the remainder of the debt under state law. The Class 3 Claimants
are impaired and entitled to vote on the Plan.
The current owner, Enrique Dutilly, will receive no payments under
the Plan; however, Mr. Dutilly will be allowed to retain their
ownership in the Debtor.
From and after the Effective Date, the Debtor will continue to
exist as a Reorganized Debtor. By reducing the Debtor's monthly
obligations to creditors to the Reorganized Debtor's Disposable
Income, the Reorganized Debtor will have sufficient cash to
maintain operations and will allow the Reorganized Debtor to
successfully operate following the Effective Date of the Plan.
A full-text copy of the Plan of Reorganization dated February 24,
2025 is available at https://urlcurt.com/u?l=cEPrXi from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Brandon J. Tittle, Esq.
Tittle Law Group, PLLC
1125 Legacy Dr., Ste. 230
Frisco, TX 75034
Tel: (972) 213-2316
Email: btittle@tittlelawgroup.com
About EEJ Hospitality
EEJ Hospitality, Inc., is an investment holding company in South
Lake, Texas that was originally formed to own and operate a
Dickey's Barbeque Pit restaurant located in Fort Worth, Texas, as a
franchisee.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. N.D. Tex.
Case No. 24-44405) on Nov. 27, 2024. The Debtor hires Tittle Law
Group, PLLC, as counsel.
ELANCO ANIMAL: Fitch Affirms 'BB-' LongTerm IDR, Outlook Positive
-----------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of Elanco Animal Health Incorporated and Elanco US Inc.
(collectively, Elanco) at 'BB-' and the ratings of the senior
secured and unsecured debt at 'BB+' with a Recovery Rating of 'RR2'
and 'BB-'/'RR4', respectively. Fitch has also assigned 'BB+'/'RR2'
ratings to the 2031 senior secured term loans. The Rating Outlook
remains Positive.
The Positive Outlook reflects Elanco's deleveraging progress
following the 2024 sale of its aqua business, as well as
anticipated growth and margin expansion opportunities. It also
captures Fitch's reduced visibility into the sustainability of such
opportunities, which are needed to maintain gross leverage below
4.5x and meaningful free cash flow (FCF) generation.
Fitch may upgrade the IDR to 'BB' if Elanco exceeds revenue growth
and profitability projections through stronger contributions from
innovative products and fewer operating challenges. Commitment to
maintaining leverage below 4.5x would also support an upgrade.
Key Rating Drivers
Innovation Drives Near-Term Growth: Fitch's organic growth
assumption of 4.0%-5.0% in 2025 is driven by Elanco's market share
gain in the global pet health market and its strong position in the
U.S. farm animal markets. The continued strength among legacy
products and the growth potential of innovative products will help
maintain the durability of Elanco's product portfolio and ensure
its presence across different geographies. Following the aqua
divestiture and nearly $1.5 billion of net debt repayments in 2024,
Fitch believes that Elanco will have the financial flexibility to
navigate near-term challenges.
Fitch expects EBITDA margins to decline by 120 basis points in 2025
from 21.7% in 2024, due to increased sales and marketing spending,
incremental costs associated with a manufacturing facility, and a
stronger U.S. dollar. The degree to which profit margins will
expand thereafter will depend on Elanco's ability to increase the
revenue contribution of higher-margin products, manage operating
costs, and raise prices. Although Fitch's forecast suggests that
EBITDA leverage will be maintained below 4.5x by year-end 2026,
there are factors that could potentially disrupt Elanco's
progress.
Competitive Pet Health Market: Fitch forecasts Zenrelia's global
sales of $45 million to $50 million in 2025 and expects it to
capture 6%-7% of the global market share by 2027. Significant
market share gains will not occur initially, driven by the black
box warning of concurrent use with vaccines, the required education
regarding Zenrelia's efficacy, and Zenrelia's form factor as a
film-coated tablet. While Zenrelia's discounted pricing is an
attractive offer, Fitch expects veterinarians will likely prefer
existing first-line treatments due to their strong presence in
retail and veterinary channels.
Fitch projects Credelio Quattro's global sales to reach $80 million
to $90 million in 2025 and expects it to capture 9%-10% of the
global market share by 2027. Although Credelio Quattro will face
significant competition, Fitch believes that the parasiticide
market is large enough for Credelio Quattro to establish its
position. However, potential product cannibalization and the trend
of declining clinic visits pose material risks to near-term growth.
Excluding foreign exchange (FX) headwinds, Fitch expects Elanco's
Pet Health segment to grow organically at 5.0% in 2025 and
3.0%-4.0% per annum thereafter.
Poor Producer Economics; Avian Flu: Fitch forecasts Elanco's Farm
Animal segment to grow organically at 4.0%-4.5% in 2025 and
2.5%-3.0% per annum thereafter. Near-term growth will be driven by
Elanco's favorable position in the U.S. markets, strong demand for
Experior and Rumensin, and growing interest in Bovaer. However,
declining cattle herd size in the U.S., challenging swine
economics, poultry rotation, cross-species avian influenza, and
recent funding cuts and freezes to the U.S. Department of
Agriculture will create uncertainty and financial strain for
farmers.
Government Actions Create Uncertainties: Although Fitch forecasts
FX headwinds of 2.5% in 2025, tariffs and retaliatory actions will
lead to deterioration in growth prospects and profitability. The
U.S. animal health industry not only sources pharmaceutical
ingredients from China for production but also relies on robust
supply chain networks in North America, Europe, and other
international markets for growth opportunities. Fitch assumes
companies will realize the impact of the 20% tariff on imports from
China in the second half of 2025 and further assumes price
increases will be passed on to customers.
Growth, Innovation and Cash: Fitch expects Elanco to maintain its
focus on growth and innovation in the near term. Research and
development (R&D) spending will remain in excess of 7.0% of revenue
to help advance Elanco's early- and mid-stage pipeline assets.
Capital expenditure (capex) will be elevated in 2025 and 2026 as
Elanco expands its monoclonal antibody manufacturing facility in
Kansas and production capacity in France. Fitch does not expect job
cuts at the Food and Drug Administration to have a material impact
on Elanco, as the company only has one product awaiting approval.
Parent-Subsidiary Linkage Analysis: The IDRs of Elanco Animal
Health Incorporated and Elanco US Inc. are rated on a consolidated
basis, using the stronger subsidiary approach, with open access and
control factors based on the intercompany guarantees of senior
secured debt instruments, and the entities operating as a single
enterprise with strong legal and operational ties.
Peer Analysis
The 'BB-' IDR reflects Elanco's competitive position in the animal
health industry, with a global footprint and scale that afford it
competitive advantages in procurement, manufacturing, R&D, and
distribution. These factors also buffer against the impact of
customer consolidation. Elanco's IDR is multiple notches lower than
the 'BBB' and 'A' category ratings of its pharmaceutical peers due
to significantly higher leverage, limited scale, and weaker cash
flow generation.
Compared to its human health pharmaceutical peers, Elanco benefits
from no reimbursement risk. However, its antibiotic segment
continues to face material headwinds from regulatory interventions
and end-consumer preferences. Zoetis, Inc., Elanco's closest public
peer, has a broader product portfolio, is larger in scale, and
maintains lower leverage.
Key Assumptions
- Revenue of $4.45 billion to $4.50 billion in 2025, and annual
organic revenue growth of approximately 3.0% thereafter;
- EBITDA margins of 20%-21% in 2025 that will gradually increase to
22% by 2028;
- Effective interest rates of 6.0%-6.5% over the forecast period,
moving with SOFR;
- Cash flow from operating activities (CFO) of $300 million to $325
million in 2025 and in excess of $500 million per annum
thereafter;
- Working capital will be a use of cash, averaging about 2.0% of
revenue per annum;
- FCF of $50 million to $75 million in 2025 and in excess of $250
million per annum thereafter;
- Capex of $240 million to $250 million per annum;
- Debt repayments of $114 million in 2025 and $54 million per annum
thereafter;
- Acquisitions totaling $650 million after 2025. No allocation of
discretionary FCF toward shareholder-friendly activities.
RATING SENSITIVITIES
Factor that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch's expectation of EBITDA leverage sustaining above 5.5x, in
part due to weaker or slower recovery in EBITDA without additional
debt repayment;
- Fitch's expectation of (CFO-capex)/debt sustaining below 5.0%.
Factor that Could, Individually or Collectively, Lead to Positive
Rating Action/Downgrade
- Fitch's expectation of successful growth and productivity
initiatives manifesting in revenues and margins;
- Fitch's expectation of EBITDA leverage sustaining below 4.5x;
- Fitch's expectation of (CFO-capex)/debt sustaining above 7.5%;
- Continued improvements in Elanco's scale and competitive
position.
Liquidity and Debt Structure
Liquidity is supported by $468 million of cash on hand and an
undrawn revolving credit facility of $750 million as of Dec. 31,
2024. Over the rating horizon, Fitch forecasts positive CFO in
excess of $300 million per annum, which should be sufficient to
cover working capital requirements and capex. Fitch assumes that
Elanco will voluntarily repay a small amount of outstanding debt in
2025 and deploy any excess cash toward asset purchases thereafter.
Elanco has no significant near-term debt maturities, with term loan
amortization of $54 million per annum and a receivables
securitization facility maturing in 2026 ($100 million outstanding
at year-end 2024). Elanco will have approximately $2.5 billion and
$1.1 billion of debt maturing in 2027 and 2028, respectively. Over
the forecast period, Fitch assumes effective interest rates of
6.0%-6.5%.
Issuer Profile
Elanco Animal Health Incorporated is a global leader in animal
health, offering innovative products for pets and farm animals.
With around 200 brands available in more than 90 countries, Elanco
distributes through third-party distributors, retailers,
veterinarians, and farm animal producers.
Summary of Financial Adjustments
Fitch adjusts historical and projected EBITDA to remove non-cash
and non-recurring expenses, including goodwill and asset impairment
charges, acquisition, integration and divestiture expenses,
stock-based compensation, and restructuring and other related
costs.
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
Elanco Animal Health Incorporated has an ESG Relevance Score of '4'
for Customer Welfare - Fair Messaging, Privacy & Data Security due
to regulatory interventions and end-consumer preferences against
using antibiotics in animal feeds, which has a negative impact on
the credit profile and is relevant to the ratings in conjunction
with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Elanco Animal
Health Incorporated LT IDR BB- Affirmed BB-
senior secured LT BB+ New Rating RR2
senior unsecured LT BB- Affirmed RR4 BB-
senior secured LT BB+ Affirmed RR2 BB+
Elanco US Inc. LT IDR BB- Affirmed BB-
senior secured LT BB+ New Rating RR2
senior secured LT BB+ Affirmed RR2 BB+
ELITE SCHOOL: Angela Shortall Named Subchapter V Trustee
--------------------------------------------------------
The Acting U.S. Trustee for Region 4 appointed Angela Shortall of
3Cubed Advisory Services, LLC, as Subchapter V trustee for Elite
School Bus Company, LLC.
Ms. Shortall will be paid an hourly fee of $525 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Shortall declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Angela L. Shortall
3Cubed Advisory Services, LLC
111 S. Calvert St., Suite 1400
Baltimore, MD 21202
Phone: 410-783-6385
About Elite School Bus Company
Elite School Bus Company, LLC operates a school bus company that
provides services primarily to Cecil County public schools. With 23
bus routes, the company is responsible for transporting children on
23 buses to and from school.
Elite School Bus Company filed Chapter 11 petition (Bankr. D. Md.
Case No. 25-11526) on February 25, 2025, listing up to 10 million
in both assets and liabilities. Rebecca Minks, manager of Elite
School Bus Company, signed the petition.
Judge David E. Rice oversees the case.
Mary Fran Ebersole, Esq., at Tydings & Rosenberg LLP, represents
the Debtor as legal counsel.
ENDO INTERNATIONAL: Knight to Buy International Pharmaceuticals
---------------------------------------------------------------
Lara Sanli of Bloomberg Law reports that Endo has agreed to sell
its International Pharmaceuticals business, primarily operated by
Paladin Pharma, to Knight Therapeutics for up to $99 million.
According to Bloomberg Law, the transaction includes an upfront
cash payment of $84 million, with an additional $15 million
contingent on milestone achievements. At closing, Knight will make
an initial payment of C$120 million in cash.
The deal is expected to close in mid-2025, with RBC Capital Markets
serving as Knight's financial adviser, the states.
About Endo International PLC
Endo International plc (OTC: ENDPQ) is a generics and branded
pharmaceutical company. It develops, manufactures, and sells
branded and generic products to customers in a wide range of
medical fields, including endocrinology, orthopedics, urology,
oncology, neurology, and other specialty areas. On the Web:
http://www.endo.com/
Endo International and certain of its subsidiaries initiated
voluntary prearranged Chapter 11 proceedings (Bankr. S.D.N.Y. Lead
Case No. 22-22549) on Aug. 16, 2022.
On May 25, 2023, Operand Pharmaceuticals Holdco II Limited and
Operand Pharmaceuticals Holdco III Limited each filed a voluntary
Chapter 11 petition also in the U.S. Bankruptcy Court for the
Southern District of New York. On May 31, 2023, Operand
Pharmaceuticals II Limited and Operand Pharmaceutical III Limited
each filed a voluntary Chapter 11 petition also in the Southern
District of New York.
The Company's cases are jointly administered before the Honorable
James L. Garrity, Jr.
Endo initiated the financial restructuring process after reaching
an agreement with a group of its senior debtholders on a
transaction that would substantially reduce outstanding debt,
address remaining opioid and other litigation-related claims, and
best position Endo for the future. This would allow the Company to
advance its ongoing business transformation from a strengthened
financial position to create compelling value for its stakeholders
over the long term.
Endo's India-based entities are not part of the Chapter 11
proceedings. The Company has filed recognition proceedings in
Canada and expects to file similar proceedings in the United
Kingdom and Australia.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom, LLP as
legal counsel; PJT Partners, LP as investment banker; and Alvarez &
Marsal North America, LLC as financial advisor. Kroll Restructuring
Administration, LLC, is the claims agent and administrative
advisor. A Website dedicated to the restructuring is at
http://www.endotomorrow.com/
Roger Frankel, the legal representative for future claimants in the
Chapter 11 cases, tapped Frankel Wyron LLP and Young Conaway
Stargatt & Taylor, LLP, as legal counsels, and Ducera Partners,
LLC, as investment banker.
ESSENTIAL MINERALS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Essential Minerals, LLC
901 Lambson Lane
New Castle, DE 19720
Business Description: Essential Minerals, LLC, established in
2017, specializes in the production of
naturally pure calcium products for the food
and pharmaceutical industries. The
Company's product line, including PureCal
Calcium Carbonate, Calcium Oxide, and
Calcium Hydroxide, is designed to meet
stringent quality standards, offering
exceptional purity and minimal metal
content.
Chapter 11 Petition Date: March 10, 2025
Court: United States Bankruptcy Court
District of Delaware
Case No.: 25-10430
Judge: Hon. Thomas M Horan
Debtor's Counsel: Ronald S. Gellert, Esq.
GELLERT SEITZ BUSENKELL & BROWN, LLC
1201 N. Orange Street
Suite 300
Wilmington, DE 19801
Tel: (302) 425-5806
E-mail: rgellert@gsbblaw.com
Total Assets: $5,983,878
Total Liabilities: $11,962,729
The petition was signed by David Snyder as chief executive
officer.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/Y2UYS3A/Essential_Minerals_LLC__debke-25-10430__0001.0.pdf?mcid=tGE4TAMA
EURASIA LLC: Jody Corrales Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 14 appointed Jody Corrales, Esq., at
Deconcini McDonald Yetwin & Lacy P.C. as Subchapter V trustee for
Eurasia, LLC.
Ms. Corrales will be paid an hourly fee of $385 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Corrales declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jody A. Corrales
Deconcini McDonald Yetwin & Lacy P.C.
252 E. Broadway Blvd., Suite 200
Tucson, AZ 85716
Telephone: 520-322-5000
Fax: 520-322-5585
Email: jcorrales@dmyl.com
About Eurasia LLC
Eurasia LLC is a furniture and home furnishings business located in
Prescott, Ariz.
Eurasia LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Ariz. Case No. 25-01515) on February 25, 2025. In
its petition, the Debtor reported up to $50,000 in assets and
between $100,000 and $500,000 in liabilities
Judge Paul Sala handles the case.
The Debtor is represented by:
Allan D. Newdelman, Esq.
Allan D. Newdelman PC
80 E Columbus Ave
PHoenix, AZ 85012
Phone: 602-264-4550
Fax: 602-277-0144
FAMILY OFFICE: Narrows Net Loss to $100K for 2024
-------------------------------------------------
Family Office of America, Inc. filed its annual report on Form 10-K
with the Securities and Exchange Commission, disclosing a net loss
of $100,484 with no net revenue for the year ending Dec. 31, 2024.
This compares to a net loss of $805,021 and zero net revenue for
the year ending Dec. 31, 2023.
As of Dec. 31, 2024, the Company had $20,581 in total assets,
$44,021 in total liabilities, and a total stockholders' deficit of
$23,440.
Houston, Texas-based Victor Mokuolu, CPA PLLC, the Company's
auditor since 2023, issued a "going concern" qualification in its
report dated March 7, 2025. The report cited that the Company has
suffered recurring losses, had a working capital deficit of $23,440
as of Dec. 31, 2024, and had accumulated deficit of $4,530,792 and
$4,430,308 as of Dec. 31, 2024 and Dec. 31, 2023 respectively.
These factors raise substantial doubt about the Company's ability
to continue as a going concern.
"While the Company is attempting to expand operations and increase
revenues, the Company's cash position may not be significant enough
to support the Company's daily operations. Management intends to
raise additional funds by way of a public offering or an asset sale
transaction. Management believes that the actions presently being
taken to further implement its business plan and generate revenues
provide the opportunity for the Company to continue as a going
concern. While management believes in the viability of its
strategy to generate revenues and in its ability to raise
additional funds or transact an asset sale, there can be no
assurances to that effect or on terms acceptable to the Company.
The ability of the Company to continue as a going concern is
dependent upon the Company's ability to further implement its
business plan and generate revenues," the Company mentioned in the
report.
The full text of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1871181/000149315225009601/fom10-k.htm
About Family Office of America
Headquartered in Centennial, CO, Family Office of America, Inc., is
a holding entity overseeing mPathix, a clinical-stage company
focused on developing, producing, and distributing innovative pain
management and central nervous system (CNS)-based solutions.
mPathix is creating a product designed to offer alternative
treatments for patients seeking alternatives to traditional pain
medications or adjunctive therapies, aiming to provide clinicians
and patients with a differentiated set of pain management options.
FENDER MUSICAL: S&P Downgrades ICR to 'B-', Outlook Negative
------------------------------------------------------------
S&P Global Ratings lowered its rating on U.S.-based Fender Musical
Instrument's Corp. to 'B-' from 'B'. S&P also lowered the
issue-level rating on the company's $400 million senior secured
first-lien term loan to 'B-' from 'B'. The recovery rating on this
debt is '3', indicating its expectations of meaningful (50%-70%;
rounded estimate: 60%) recovery in the event of a payment default.
The negative outlook reflects greater uncertainty in Fender's
operating performance over the next 12 months due to its
significant exposure to tariffs on imports from China and Mexico
that may cause EBITDA and liquidity to decline by more than we
expect.
The lower rating reflects the negative forecasted impact of foreign
exchange headwinds, labor inflation and tariffs on China imports.
S&P said, "In 2024, we believe Fender's S&P Global Ratings-adjusted
EBITDA margin declined 100 basis points (bps) primarily because of
greater foreign exchange headwinds and persistent labor inflation.
This is despite recording revenue growth in three of four quarters
in 2024 due to adequate demand for its products from customers
given healthier inventory levels. However, we expect foreign
exchange will continue to be a headwind in 2025 given the strength
of the U.S. dollar. This includes our expectation for interest
rates to remain elevated over the next 12 months because of greater
tariffs on international imports, which S&P Global economists
expect will slow the progression of interest rate cuts by the
Federal Reserve in 2025. We expect EBITDA in 2025 will decline by
at least as much as it declined in 2024 because of continued
foreign exchange headwinds and labor inflation before giving effect
to the impact of tariffs."
On Feb. 4, 2025, the Trump administration implemented a 10% tariff
on all China imports. On March 4, 2025, the administration
implemented a second 10% tariff on all China imports as well as 25%
tariffs on all imports from Mexico and Canada. S&P said, "We expect
tariffs to have a negative impact on Fender's profitability and
credit metrics since we think Fender imports 20%-25% of finished
goods from China into the U.S. and around 10% of finished goods
from Mexico into the U.S. Our base case assumes gross margin
declines about 160 bps. However, we have only considered the impact
of China tariffs in our forecast, as well as offsetting pricing
benefits, because of greater policy uncertainty regarding Mexico
tariffs and their respective impact on Fender's EBITDA. Moreover,
we do not believe Mexico tariffs currently apply to Fender's
products imported from Mexico given the United States-Mexico-Canada
Agreement (USMCA) origin rules."
There is greater uncertainty that profitability and cash flow could
weaken by more than our base case forecast. While Fender did not
see its profits materially deteriorate when the government
implemented tariffs on China imports during President Trump's first
term, it is now facing higher tariffs than before, and consumers
are more sensitive to discretionary spending after several years of
elevated inflation. Moreover, S&P Global economists forecast
inflation will increase 40 bps and U.S. gross domestic product
(GDP) will decrease 30 bps in 2025 compared to prior expectations
considering higher tariffs on imports from China, Mexico and Canada
in 2025. On March 1, 2025, Fender responded to the 10% China tariff
implemented in February by increasing pricing on all China-made
products by 5%. S&P said, "We expect Fender would implement a
similar pricing strategy to offset the impact of additional
tariffs. While this will partially offset higher costs of goods
sold, we expect higher pricing to lead to volume declines as
consumers become more cautious with discretionary spending,
focusing instead on essentials like food and housing. If
performance is weaker than expected, we believe marketing
expenditures could be reduced despite management's preference to
maintain marketing spending to drive growth. Moreover, we believe
capex is largely committed so there is less flexibility to reduce
that cash outflow."
S&P said, "We revised our assessment of liquidity downward to less
than adequate. We expect sources of liquidity will decline over the
next 12 months due to weaker profitability. Our base case assumes
asset-based lending (ABL) facility borrowings of around $45 million
in 2025 with $20 million cash at year-end 2025. This compares to
expected ABL borrowings of around $45 million and cash on hand of
about $40 million at year-end 2024. Fender's ABL availability
depends on its borrowing base. We estimate ABL availability of
about $50 million in 2025 considering its Dec. 29, 2024, borrowing
base less letters of credit. However, should Fender require greater
ABL borrowings that cause ABL availability to decline below the
springing fixed-charge coverage threshold of $17 million, it's
unlikely the company could comply with its minimum 1x fixed-charge
coverage ratio (FCCR). Throughout 2024, the company's FCCR has been
just 1x, meeting the minimum ratio. In 2025, however, we expect
FCCR below 1x due to lower consolidated EBITDA because of lower
profitability, higher capex as well as greater interest expense due
to increased borrowings. Moreover, if the company is not able to
offset higher expected costs, it could face difficulties addressing
its upcoming Dec. 1, 2026, ABL maturity on favorable terms, which
could further erode liquidity.
"The negative outlook reflects greater uncertainty in Fender's
operating performance over the next 12 months due to its
significant exposure to tariffs on imports from China and Mexico
that may cause EBITDA and liquidity to decline by more than we
expect."
S&P could lower the rating within the next few quarters if Fender's
capital structure becomes unsustainable, including EBITDA interest
coverage declining below 1.5x. This could occur if:
-- Fender is unable to offset the impact of higher tariffs through
higher pricing; and
-- The macroeconomic environment softens, leading to
greater-than-expected volume declines due to lower consumer
spending on discretionary products.
S&P could also lower the rating over the next few quarters if
borrowings on the ABL facility increase by more than S&P expects
potentially indicating greater need for liquidity and likelihood of
the covenant springing.
S&P could revise the outlook to stable if Fender can sustain EBITDA
interest coverage of more than 1.5x. This could occur if:
-- The company is able to offset higher costs from tariffs through
higher pricing or if tariff risk abates;
-- The demand for guitars and accessories strengthens; and
-- Foreign exchange headwinds improve.
FIRST QUANTUM: Fitch Rates New 8% USD1-Bil. Notes Due 2033 'B'
--------------------------------------------------------------
Fitch Ratings has assigned First Quantum Minerals Ltd.'s (FQM;
B/Negative) new 8% USD1 billion notes due 2033 a final senior
unsecured rating of 'B'. The Recovery Rating is 'RR4'.
The notes are FQM's senior unsecured obligations and rank pari
passu with its existing senior unsecured notes.
Fitch expects gross debt to remain broadly unchanged following the
debt issue as proceeds will be used to repay USD250 million of the
drawn portion of an existing revolving credit facility (RCF) and to
partially redeem its outstanding 2027 notes.
FQM's Negative Outlook reflects its high leverage and persistent
uncertainly on the future of its Cobre Panama mine. The rating
incorporates robust operations in Zambia and proactive liquidity
management. FQM is reviewing options for the sale of a minority
stake in its Zambian assets. The sale proceeds will be used for
deleveraging and liquidity. If successful, Fitch forecasts EBITDA
gross leverage at slightly below its negative rating sensitivity of
5x.
Key Rating Drivers
Prolonged Suspension of Cobre Panama: Cobre Panama remains in
preservation and safe management with no production since November
2023. Last year's elections have not led to a decision on the
future of the mine, in contrast to its previous expectations that
the mine will resume operations in 2025. Due to this uncertainty,
Fitch has taken a conservative approach and centred its forecasts
for 2025-2028 on operations in Zambia.
FQM is working on bringing the Cobre Panama mining operations back
on track by launching a public relations campaign to improve the
perception of the project and seeking to negotiate with the
government in the near term. The process of setting terms for an
environmental audit commenced in January and FQM is concurrently
pursuing two separate international arbitration cases against
Panama.
High Leverage: Without volumes from Cobre Panama, Fitch forecasts
EBITDA to average USD1.4 billion in 2025-2028 under its price
assumption. This is almost twice lower than when the mine had been
in operation. Fitch expects EBITDA gross leverage of around 5x
(excluding the Franco Nevada streaming agreement with no metal
deliveries from the mine) over the next three years, close to its
negative sensitivity, and higher than 4.4x in 2024. This is due to
expected negative free cash flow (FCF) in 2025-2026, driven by
substantial capex, including for the completion of the Kansanshi S3
project.
Fitch incorporates the potential sale of minority stakes in Zambian
assets into its forecast. Failure to complete the stake sale and
the continuing suspension of Cobre Panama will drive EBITDA
leverage higher to over 6x, which may lead to a downgrade.
Proactive Liquidity Management: Since Cobre Panama's operations
were suspended, FQM has been actively addressing liquidity risks
and strengthening its balance sheet. In 2024 it issued USD1.6
billion secured notes for refinancing, placed USD1.1 billion common
shares that it used for bonds prepayment, and signed a USD500
million copper prepayment facility. The new notes are being used to
refinance upcoming bond maturities and a portion of its bank
facilities. This, together with the potential sale of minority
stakes in Zambian mines, will bolster its liquidity.
Rating Above Zambia's Country Ceiling: Without volumes from Cobre
Panama, FQM will derive over 95% of EBITDA from Zambia (RD) from
2025, leading us to apply the 'B-' Country Ceiling of Zambia,
instead of Panama. FQM maintains sizeable liquidity headroom, with
a high share of export proceeds, cash held abroad, and undrawn
offshore committed credit lines totalling USD3.3 billion in 2025
and USD2.2 billion in 2026. This supports a hard-currency
debt-service coverage ratio above 1.5x for 2025-2026 and allows
Fitch to rate FQM one notch above Zambia's Country Ceiling.
Deteriorating Operating Environment: The forced suspension of Cobre
Panama reflects a deterioration in the mining environment in
Panama, in Fitch's view. Social and environmental opposition to
mining became more vocal in the run-up to the elections last year.
Further, in November 2023 the government signed into law a
moratorium on new mining projects in the country. Fitch believes
that the new government may adopt a more constructive approach
towards the mining sector. However, as the decision might take
time, Fitch sees no certainty on the timeline for the mine's
restart.
Zambia Power Challenges: Since 1Q24 the supply of energy was
limited, due to drought reducing Zambia's hydropower generation.
FQM has been importing power from neighbouring countries to
minimise operational disruptions. Fitch expects that in 2025-2026
around 40% of FQM's energy will be supplied from abroad, increasing
its cash costs by 4%. In the longer term, a new solar and wind
project, together with new hydropower initiatives, in Zambia should
improve domestic energy supply.
ESG - Exposure to Social Impact: FQM's suspension of operations at
Cobre Panama since November 2023 amid social protests and a Supreme
Court ruling that the mine's concession law is unconstitutional has
resulted in uncertainty over the future of the mine and FQM's
financial performance. This resulted in the downgrade of the rating
and maintenance of the RWN in February 2024. The Negative Outlook
on the IDR, assigned in February 2025, continues to reflect the
uncertainty.
Derivation Summary
FQM's peers include copper producers Freeport-McMoRan Inc.
(BBB/Stable), Hudbay Minerals Inc. (BB-/Stable), Ero Copper Corp.
(B/Stable) and Endeavour Mining plc (BB/Stable).
Freeport is among the top 10 global producers with a 1.9 million
tonnes copper output in 2024. FQM produced 431,000 tonnes, Ero
41,000 tonnes, and Hudbay is estimated to have produced 140,000
tonnes in 2024.
FQM's medium-term cost position is in the higher third quartile,
while Freeport's assets on average are placed around the 50th
percentile, due to low-cost operations at its Grasberg mine.
Freeport benefits from wider diversification across geographies
with a more stable operating environment, and more sizeable assets
with a longer reserve life. Freeport's medium-term EBITDA gross
leverage is below 2x.
FQM has a stronger business profile than Hudbay, due to its much
larger scale and longer reserve life. However, it has a less
competitive cost position. Hudbay operates in the lower-risk
jurisdictions of Canada and Peru and has some commodity
diversification. Fitch expects Hudbay's EBITDA gross leverage to
remain below 2.5x.
Gold miner Endeavour is smaller than FQM (assuming current scale)
but with a better cost position in the second quartile of the
global cost curve. Operations are spread across Senegal, Cote
d'Ivoire and Burkina Faso, with the latter having a very weak
operating environment with many challenges, including security.
Endeavour has a conservative financial policy to maintain net
debt/EBITDA below 0.5x through the cycle.
Ero is much smaller in scale, has comparable reserve life and a
cost position on the higher end of the global cost curve. Ero's
gross leverage is expected at around 2x in 2025.
Key Assumptions
- Prices of copper, gold and nickel for 2025-2028 in line with
Fitch's price assumptions
- Given the uncertainty over Cobre Panama, its rating case is based
on the mine not resuming operations during the forecast period
- Kansanshi S3 production full ramp-up in 2026, increasing total
copper sold volume to 490,000 tonnes from 2027 onwards from 440,000
tonnes in 2025-2026
- Capex in 2025-2027 in line with FQM's guidance and adjusted to
Fitch's price assumptions
- Franco Nevada streaming agreement excluded from Fitch-adjusted
debt over the forecast period
- No dividend for 2025-2028
- Material proceeds from Zambia minority stake sale in 2025
Recovery Analysis
Recovery Analysis Assumptions
The recovery analysis assumes that FQM would be considered a going
concern (GC) in bankruptcy and that it would be reorganised rather
than liquidated.
Its GC EBITDA estimate reflects Fitch's view of a sustainable,
post-reorganisation EBITDA on which Fitch bases the valuation of
the company. Fitch has lowered its GC EBITDA estimate to USD1.35
billion from USD1.55 billion under the assumption of protracted
operational disruption at Cobre Panama.
An enterprise value (EV)/EBITDA multiple of 4.5x was used to
calculate the post-reorganisation EV, which factors in FQM's scale,
growth prospects, and exposure to Zambia with a weak mining
operating environment.
FQM's RCF is assumed to be fully drawn.
Senior secured debt reflected in the recovery waterfall comprises a
combined USD2.2 billion RCF and a term-loan bank facility. Fitch
removed the USD0.9 billion streaming agreement with Franco-Nevada
from the waterfall because its GC EBITDA assumption excludes Cobre
Panama. The existing USD1.6 billion senior secured second-lien
notes with a share pledge covering the Sentinel and Enterprise
assets and benefiting from a guarantee from Kansanshi and other
guarantors are reflected as secured in the recovery waterfall.
The new notes and immediate debt maturities are included in USD3.9
billion of senior unsecured debt, comprising bonds and the copper
pre-payment facility.
FQM's USD423 million term loan is included as senior debt.
Fitch excludes immediate maturities from its debt calculation.
After deducting 10% for administrative claims and taking into
account Fitch's Country-Specific Treatment of Recovery Ratings
Criteria, its analysis resulted in a waterfall-generated recovery
computation (WGRC) in the 'RR4' band, indicating a 'B' senior
secured rating. The Recovery Rating is capped at 'RR4'. The WGRC
output percentage on current metrics and assumptions was 50%.
Its analysis for FQM's senior unsecured notes also resulted in a
WGRC in the 'RR4' band, indicating a 'B' senior unsecured rating.
The WGRC output percentage on current metrics and assumptions was
37%.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA gross leverage consistently above 5x
- Material deterioration in liquidity and increasing refinancing
risk
- Signs of a deteriorating operating environment in Zambia
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- As the Long-Term IDR is on Negative Outlook, Fitch does not
expect a positive rating action at least in the short term.
However, proactive liquidity management and the completion of the
minority interest sale could lead to a revision of the Outlook to
Stable, subject to FQM maintaining hard currency debt service
coverage above 1.5x to maintain its rating above Zambia's Country
Ceiling
Liquidity and Debt Structure
At end-2024, FQM's liquidity comprised an unrestricted cash balance
of USD843 million and an undrawn committed RCF of USD750 million,
compared with around USD530 million of debt maturities in 2025.
The new notes and management's actions to support liquidity, in
addition to the potential Zambian minority stake sale, would
support FQM's liquidity for the next two years. In the absence of
the stake sale or other funding measures available, liquidity will
be sufficient only for the current year.
Issuer Profile
FQM is a medium-sized global copper company. It produces copper in
the form of concentrate, cathode and anode, as well as gold,
silver, zinc and nickel. Major assets are located in Zambia and
Panama with smaller operations in Spain, Mauritania, Australia,
Turkey and Finland.
Summary of Financial Adjustments
- Franco Nevada streaming agreement of USD970 million reclassified
from deferred revenue to Fitch-adjusted debt in 2024
- Transaction and accretion charges of USD45 million added back to
Fitch-adjusted debt balance in 2024
- Jiangxi copper prepayment of USD500 million reclassified from
deferred revenue to Fitch-adjusted debt; USD36 million interest
expenses added to interest paid in 2024
Date of Relevant Committee
February 18, 2025
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
FQM has an ESG Relevance Score of '5' for Exposure to Social
Impacts, due to the forced suspension of operations at Cobre Panama
since November 2023, which has a negative impact on the credit
profile, and is highly relevant to the rating, which resulted in
the downgrade and the maintenance of the RWN in February 2024. The
Long-Term IDR is currently on Negative Outlook, reflecting the
continuing uncertainty on Cobre Panama.
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
----------- ------ -------- -----
First Quantum
Minerals Ltd.
senior unsecured LT B New Rating RR4 B(EXP)
FIT FOR THE RED: Gets OK to Use Cash Collateral to Pay Repair Cost
------------------------------------------------------------------
Fit for the Red Carpet, LLC got the green light from the U.S.
Bankruptcy Court for the Northern District of Ohio, Eastern
Division, to use cash collateral for the repair of air conditioning
systems at its Akron facility.
The company estimates that the repair cost is roughly $14,000, of
which $7,000 deposit must be paid immediately.
The company's authority to use cash collateral expires on April
16.
About Fit for the Red Carpet
Fit for the Red Carpet, LLC is a company in Akron, Ohio, which
offers personal services.
Fit for the Red Carpet filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Ohio Case No.
25-50238) on February 18, 2025, listing up to $500,000 in assets
and up to $10 million in liabilities. Rhonda Stark, company owner,
signed the petition.
Judge Alan M. Koschik oversees the case.
Marc B. Merklin, Esq., at Roetzel & Andress, LPA, represents the
Debtor as legal counsel.
FORESTAR GROUP: Moody's Rates New Senior Unsecured Notes 'Ba3'
--------------------------------------------------------------
Moody's Ratings assigned a Ba3 rating to Forestar Group Inc.
proposed senior unsecured notes. All other ratings of the company
and its stable outlook remain unchanged.
The proceeds of Forestar's $500 million senior unsecured notes due
2033 will be used to retire its $400 million 3.85% unsecured notes
maturing in May 2026, the tender offer for which was announced
simultaneously with the offering. The remainder of the proceeds
will be used by the company for general corporate purposes,
including repayments of revolver borrowings. Pro forma for the
transaction, debt to book capitalization is estimated to remain
similar to its December 31, 2024 level of 33% and EBIT to interest
coverage to decline to about 5.0x from 7.7x.
RATINGS RATIONALE
Forestar's Ba3 corporate family rating is supported by the
company's: 1) market position as a leading US land developer with a
broad geographic footprint across 24 states and 62 markets; 2)
differentiated manufacturing-like business model; 3) strategic
relationship with its main customer D.R. Horton, Inc. (Horton) (A3
stable), the largest homebuilder in the US by revenue and homes
closed, including a master supply agreement for the sale of lots to
Horton; 4) track record of solid execution; and 5) good liquidity
profile with $645 million in total liquidity at December 31, 2024
composed of $132 million of cash and $513 million of revolver
availability, and the associated financial flexibility.
At the same time, the rating is constrained by: 1) the risks
associated with the land development business model and the
inherent volatility in results; 2) significant industry
cyclicality; 3) exposure to land impairment charges in an event of
a market weakening given the owned land supply of about five years;
4) the absence of guarantees from Horton for Forestar's debt; and
5) expectation of negative free cash flow generation as the company
invests in growth.
The stable outlook reflects Moody's expectations that over the next
12 to 18 months Forestar will grow and generate solid operating
performance, while maintaining a conservative balance sheet with
modest leverage, and good liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The rating could be upgraded if the company significantly increases
its revenue scale and improves geographic diversity, maintains very
good liquidity, including through generation of robust free cash
flow, and sustains debt to book capitalization below 40% and EBIT
to interest coverage above 6.0x during various industry cycles.
The rating could be downgraded if the company's gross margins and
liquidity profile deteriorate significantly, revenues drop
meaningfully and impairments expand, debt to book capitalization
leverage is sustained above 45% and EBIT to interest coverage below
5.0x, or if the company shifts to a more aggressive financial
policy.
The principal methodology used in this rating was Homebuilding and
Property Development published in October 2022.
Forestar Group Inc., headquartered in Arlington, Texas, is a
publicly traded land developer that operates in 62 markets and 24
states as of December 31, 2024. Forestar supplies lots primarily
for entry-level and first-time move up home categories, and to a
lesser extent to the active adult segment and build-to-rent
operators. In the last 12 months ended December 31, 2024, Forestar
delivered 14,251 residential lots and generated $1.5 billion in
revenue.
FOREVER 21: Sets to Lay Off Workers Starting April 21
-----------------------------------------------------
Kristina Stidham of TotalRetail reports that Forever 21 plans to
lay off more than 350 employees as it prepares to shut down its Los
Angeles corporate office, according to USA TODAY. The layoffs are
scheduled to begin on April 21, as outlined in a WARN notice dated
February 14, 2025, which is required for mass layoffs. Affected
positions include managers, designers, supply chain directors, and
the company's chief financial and chief merchandising officers.
Remaining employees will transition to remote work after the
headquarters closes.
According to TotalRetail, the headquarters closure follows recent
downsizing at Catalyst Brands, Forever 21's parent company, which
laid off approximately 250 employees last month. While the retailer
has not disclosed the total number of planned store closures,
reports indicate that several locations across multiple states have
already shut down. The decision to reduce staff and close the
headquarters comes as Forever 21 continues to face financial
challenges, struggling to compete with fast-fashion rivals like
Shein and Temu. The company previously avoided liquidation five
years ago when Simon Property Group, Brookfield Corporation, and
Authentic Brands Group acquired it out of bankruptcy. However,
Authentic Brands CEO Jamie Salter admitted in 2023 that buying
Forever 21 was "probably the biggest mistake I made."
As rumors of a second bankruptcy filing circulate, Sarah Foss, head
of legal at Debtwire and a bankruptcy law expert, told USA TODAY
that Chapter 11 liquidation appears likely, as no buyer has emerged
for the company's U.S. assets and leases. However, the potential
shutdown of retail stores may not mark the end of Forever 21, as
Authentic Brands Group owns the brand and its intellectual
property, which could survive a liquidation process, the report
states.
About Forever 21 Inc.
Founded in 1984 by South Korean husband and wife team Do Won Chang
and Jin Sook Chang and headquartered in Los Angeles, Calif.,
Forever 21, Inc. -- http://www.forever21.com/-- is a fast-fashion
retailer of women's, men's and kids clothing and accessories and is
known for offering the hottest, most current fashion trends at a
great value to consumers. Forever 21 delivers a curated assortment
of new merchandise brought in daily.
Forever 21, Inc. and seven of its U.S. subsidiaries each filed a
voluntary petition for relief under Chapter 11 of the United States
Bankruptcy Code (Bankr. D. Del. Lead Case No. 19-12122) on Sept.
29, 2019. According to the petition, Forever 21 has estimated
liabilities on a consolidated basis of between $1 billion and $10
billion against assets of the same range.
As of the bankruptcy filing, the Debtors operated 534 stores under
the Forever 21 brand in the U.S. and 15 stores under beauty and
wellness brand, Riley Rose.
The Debtors tapped Kirkland & Ellis LLP as legal advisor; Alvarez &
Marsal as restructuring advisor; and Lazard as investment banker;
and Pachulski Stang Ziehl & Jones LLP as local bankruptcy counsel.
Prime Clerk is the claims agent.
Andrew Vara, acting U.S. trustee for Region 3, appointed a
committee of unsecured creditors on Oct. 11, 2019. The committee is
represented by Kramer Levin Naftalis & Frankel LLP and Saul Ewing
Arnstein & Lehr LLP.
Counsel to the administrative agent under the Debtors' prepetition
revolving credit facility and the Debtors' DIP ABL financing
facility are Morgan, Lewis & Bockius LLP and Richards, Layton &
Finger, PA.
Counsel to the administrative agent under the Debtors' DIP term
loan facility is Schulte Roth & Zabel LLP.
* * *
In February 2020, the company was purchased by a consortium that
includes Authentic Brands Group, Simon Property Group and
Brookfield Property Partners for $81.1 million. As part of the
deal, ABG and Simon will each own 37.5% of the fast-fashion
retailer, while Brookfield controls the remaining 25% of Forever
21's operating and intellectual property businesses.
FRENCH SEAM: Judy Wolf Weiker Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 10 appointed Judy Wolf Weiker of
Manewitz Weiker Associates, LLC as Subchapter V trustee for The
French Seam, Inc.
Ms. Weiker will be paid an hourly fee of $375 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Weiker declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Judy Wolf Weiker
Manewitz Weiker Associates, LLC
P.O. Box 40185
Indianapolis, IN 46240
Phone: 973-768-2735
Email: JWWtrustee@manewitzweiker.com
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, listing 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.
GFL ENVIRONMENTAL: Moody's Ups CFR to 'Ba2', Outlook Stable
-----------------------------------------------------------
Moody's Ratings has upgraded GFL Environmental Inc.'s (GFL)
corporate family rating to Ba2 from B1, probability of default
rating to Ba2-PD from B1-PD, senior secured notes and bank credit
facility ratings to Baa3 from Ba2, and senior unsecured notes
ratings to Ba3 from B3. Moody's have also upgraded GFL Solid Waste
Southeast LLC's senior unsecured funding obligation and backed
senior unsecured revenue bonds (issued by Florida Development
Finance Corporation) to Ba3 from B3, and Wrangler Holdco Corp.'s
backed senior unsecured notes rating to Ba3 from B3. GFL's
Speculative Grade Liquidity Rating (SGL) has been upgraded to SGL-2
from SGL-3. The outlook for GFL, Wrangler Holdco Corp., and GFL
Solid Waste Southeast LLC is stable. Previously, the ratings were
on review for upgrade.
"The upgrade to Ba2 is largely due to the significant debt
reduction, which decreases GFL's financial leverage and enhances
operating cash flow, enabling the company to continue its
acquisition strategy with less dependence on additional debt", said
Dion Bate, Moody's Ratings' Vice President - Senior Analyst.
The ratings upgrade concludes the review for upgrade initiated on
January 09, 2025 following the disposal of a 56% stake in GFL
Environmental Services LP (B2 stable; ES) on March 03, 2025 to
Apollo and BC Partners (each holding a 28% equity stake and GFL
retaining 44%). The C$6.2 billion in net cash proceeds will be used
to repay approximately C$3.7 billion outstanding under the
revolver, term loan and senior secured notes due 2025 and 2026 over
the next few weeks, removing all near-term refinancing risk.
Subsequent to the debt repayments Moody's will withdraw the
respective instrument ratings. GFL will also use C$2.25 billion for
share buybacks.
The debt reduction underscores the company's commitment to adopt
less aggressive financial policies and lower long-term financial
leverage, a key governance consideration of the rating action.
RATINGS RATIONALE
The upgrade of GFL's CFR to Ba2 reflects improved financial
leverage after debt reduction. Pro forma debt/EBITDA for FY 2024
will decrease to about 4.3x from 5.3x pre-transaction, and Moody's
expects it to fall below 4x in 2025. Although the partial disposal
of ES reduces scale and revenue diversification, the debt reduction
compensates for the loss of ES EBITDA. For 2025, Moody's expects
organic revenue to grow mid-single digits, driven by price
increases, steady volume growth, RNG projects, EPR contracts, and
acquisitions. Additionally, Moody's adjusted EBITDA will benefit
from margin expansion toward 27% due to operational efficiencies
and higher surcharge cost recovery. Moody's forecast debt/EBITDA to
trend below 4.0x in 2025.
The resumption of GFL's strategy to pursue acquisitions of up to
C$900 million with capex of up to $750 million and growth
investments of C$325 million in 2025 will be a drag on cash flow.
This will be partially offset by improved operating cash flow
primarily from the lower interest expense and will reduce GFL's
reliance on additional debt. Moody's notes that GFL has optionality
to buyback the 56% ES stake in 2030, which could lead to higher
financial leverage. However, Moody's would expect GFL to be in a
much stronger financial position with higher free cash flow, which
would help minimize any potential incremental leverage.
GFL's rating benefits from: 1) the company's growing and
diversified business; 2) high recurring revenue supported by long
term contracts and stricter regulation; 3) its good market position
in the stable Canadian and US nonhazardous waste industry; and 4)
growing EBITDA margins that benefits from acquisition cost
synergies and its vertically integrated business model.
However, GFL's rating is constrained by: 1) its history of
aggressive debt financed acquisition growth which has tempered
deleveraging; 2) the short time frame between acquisitions which
increases the potential for integration risks and adds analytical
complexity; and 3) private equity and founder ownership, which may
hinder deleveraging.
GFL has good liquidity (SGL-2). The sources total around C$2.0
billion with no mandatory debt payments over the next 12 months.
Post the transaction, GFL has proforma cash of around C$380 million
(after C$3.7 billion of debt repaid and C$2.25 billion of share buy
backs), full availability under its C$1.3 billion revolving credit
facilities (expiring September 2026) and Moody's expectations of
around C$300 million of free cash flow in 2025. GFL's revolver is
subject to a net leverage and an interest coverage covenant, which
Moody's expects will have sufficient buffer over the next four
quarters. Following the repayment of the $500 million (due December
2026) and $750 million (due August 2025) senior secured notes, GFL
will have no debt maturities until its revolver expiries in
September 2026. Moody's anticipates GFL will be able to extend its
revolver before it becomes current given its track record of
addressing debt maturities well ahead of time. While the revolver
and secured notes are secured by all assets of GFL, the company can
still sell assets for additional liquidity.
The two notch upgrade on the secured debt and three notch upgrade
of the unsecured debt reflects the change in the capital structure
to a more unsecured debt structure. The Baa3 ratings on the senior
secured notes are two notches above the CFR due to the senior
secured debt's first priority access to substantially all of the
company's assets as well as loss absorption cushion provided by the
higher proportion of senior unsecured notes. The Ba3 rating on the
senior unsecured notes is one notch below the CFR due to the senior
unsecured notes' junior position in the debt capital structure.
The stable outlook reflects Moody's expectations that GFL will
operate within their newly stated capital allocation policy and
with lower financial leverage such that adjusted debt/EBITDA will
trend below 4x over the next 12-18 months. It also incorporates
Moody's expectations of favorable pricing and stable volumes,
growing free cash flow and good liquidity over the next 12 to 18
months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if GFL continues to deliver solid
operating performance with EBITDA margins sustained above 25% and
demonstrates a commitment to maintain a more conservative and
predictable financial policy, such that adjusted Debt/EBITDA is
sustained below 3.5x. Moody's would also expect GFL to maintain a
strong free cash flow position such that it is able to fund its
inorganic growth strategy and sustain a good liquidity profile.
The ratings could be downgraded if liquidity weakens, including
excess reliance on the revolver, if there is a material and
sustained decline in operating margin due to challenges integrating
acquisitions or if adjusted debt/EBITDA rises towards 4.5x.
The principal methodology used in these ratings was Environmental
Services and Waste Management published in August 2024.
GFL Environmental Inc., headquartered in Toronto, provides solid
waste collection, recycling and disposal solutions to municipal,
industrial and commercial customers in Canada and the US.
GLOSSLAB LLC: Enters Asset Purchase Deal with Townhouse
-------------------------------------------------------
James Manso of WWD reports that Glosslab's assets are set to change
ownership as part of its Chapter 11 bankruptcy proceedings. A
filing in the U.S. Bankruptcy Court for the Southern District of
New York reveals that U.K.-based nail chain Townhouse has entered
into an asset purchase agreement with Glosslab. The agreement
includes acquiring inventory, industrial and office equipment, and
leases for the Flatiron and Tribeca locations in New York for
$425,000.
Simultaneously, Glosslab's intellectual property is being sold to
VD Brand Holdings Inc. for $100,000. If the sale does not go
through, Townhouse has the option to purchase the IP for the same
amount, as outlined in the purchase agreement. Both transactions
await court approval, with a hearing scheduled for Friday, March 7,
2025.
Rachel Apfel Glass, Glosslab's founder, confirmed that VD Brand
Holdings is owned by entrepreneur Adam Weitsman, who plans to
reposition the brand as a beauty product-oriented lifestyle brand.
Glass highlighted Townhouse's reputation as one of the world's
leading nail salon operators and expressed that continuing the
Glosslab brand alongside Townhouse's management would be a
strategic move.
Glass is still considering her future role within the brand.
Regarding the intellectual property acquisition, Weitsman has
enlisted former Revlon executives Debra Perelman and Martine
Williamson, along with former Farfetch executive Jeffrey Fowler, to
lead the brand's transformation.
"In Glosslab, I saw an opportunity to elevate a strong brand into a
global leader through strategic, sustainable growth," Weitsman
said. "Our vision is to build on Glosslab's foundation of
excellence while expanding intelligently and profitably."
Representatives from Townhouse were not immediately available for
comment.
About Glosslab LLC
Glosslab, LLC and affiliates sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. N.Y. Lead Case No. 24-12399)
on December 23, 2024, with up to $50,000 in assets and up to $10
million in liabilities. Rachel Apfel Glass, chief executive
officer, signed the petition.
Judge Michael E. Wiles oversees the case.
Adrienne Woods, Esq., at Weinberg Zareh Malkin Price, LLP,
represents the Debtor as legal counsel.
GWG HOLDINGS: Trustee Reaches Settlement Shielding Ex-Execs, Cos
----------------------------------------------------------------
Angelica Serrano-Roman of Bloomberg Law reports that GWG Holdings
Inc.'s litigation trustee is requesting court approval for a
settlement with former executives that would grant them liability
releases, following allegations of "corporate looting" made in a
lawsuit last 2024.
The proposed settlement would shield former GWG director and board
chairman Bradley K. Heppner, along with other ex-officials and
related companies, from claims of damaging the company's estate. In
return, the litigation trust would receive $50.5 million, according
to a motion filed Friday in the US Bankruptcy Court for the
Southern District of Texas, the report states.
About GWG Holdings
Headquartered in Dallas Texas, GWG Holdings, Inc. (NASDAQ: GWGH)
conducts its life insurance secondary market business through a
wholly owned subsidiary, GWG Life, LLC, and GWG Life's wholly owned
subsidiaries.
GWG Holdings Inc. and affiliates sought Chapter 11 bankruptcy
protection (Bankr. S.D. Texas Lead Case No. 22-90032) on April 20,
2022. In the petition filed by Murray Holland, president and chief
executive officer, GWG Holdings disclosed between $1 billion and
$10 billion in both assets and liabilities.
Judge Marvin Isgur oversees the cases.
The Debtors tapped Mayer Brown, LLP and Jackson Walker, LLP, as
bankruptcy counsels; Tran Singh, LLP as special conflicts counsel;
FTI Consulting, Inc. as financial advisor; and PJT Partners, LP, as
investment banker. Donlin Recano & Company is the Debtors' notice
and claims agent.
National Founders LP, a debtor-in-possession (DIP) lender, is
represented by Michael Fishel, Esq., Matthew A. Clemente, Esq., and
William E. Curtin, Esq., at Sidley Austin, LLP.
The U.S. Trustee for Region 7 appointed an official committee to
represent bondholders in the Debtors' cases. The committee tapped
Akin Gump Strauss Hauer & Feld, LLP and Porter Hedges, LLP, as
legal counsels; Piper Sandler & Co. as investment banker; and
AlixPartners, LLP as financial advisor.
The Debtors obtained confirmation of their Further Modified Second
Amended Joint Chapter 11 Plan on June 20, 2023.
H-FOOD HOLDINGS: Nears Chapter 11 Bankruptcy Exit
-------------------------------------------------
Randi Love of Bloomberg Law reports that the judge overseeing
Hearthside Food Solutions' bankruptcy has agreed to approve the
restructuring plan, provided that revisions are made to the deal's
releases of wage and labor law claims.
The plan aims to reduce the company's funded debt by nearly $2
billion to support its financial recovery. It also includes $5.5
million in cash for general unsecured claims -- more than double
the previous offer -- Hearthside attorney Stephen Iacovo of Ropes &
Gray LLP said during a Monday, March 10, 2025, hearing in the US
Bankruptcy Court for the Southern District of Texas.
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.
HERBALIFE LTD: Moody's Affirms 'B1' CFR & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Ratings affirmed Herbalife Ltd.'s (HLF or Herbalife) B1
Corporate Family Rating, B1-PD Probability of Default Rating, the
Ba2 rating on the company's senior secured first lien revolving
credit facility, and the B3 rating on the backed senior unsecured
notes due September 2025. Moody's also affirmed HLF Financing SaRL,
LLC's ratings consisting of a Ba2 rating on the backed senior
secured notes due April 2029, the Ba2 rating on senior secured
first lien term loan B, and the B3 rating on the backed senior
unsecured notes due June 2029. Concurrently, Moody's upgraded
Herbalife's speculative grade liquidity rating to SGL-2 from SGL-3.
The outlook was revised to stable for both issuers and was
previously negative.
The affirmations and outlook change to stable from negative reflect
the company's moderating leverage, positive trends in the number of
new distributors joining Herbalife worldwide, decreasing input
costs and debt repayment. These factors are contributing to good
continued free cash flow and deleveraging. The restructuring and
transformative actions implemented by Herbalife over the past year
have resulted in better operating margins and stronger free cash
flow generation than previously forecasted. Consequently, Moody's
adjusted debt-to-EBITDA leverage declined to 4.4x as of December
31, 2024 from 5.2x at the end of 2023. Moody's expects that
Herbalife will remain focused on reducing its debt balance,
targeting a total principal amount of outstanding debt of $1.4
billion by the end of 2028, and will refrain from share repurchases
that along with earnings declines contributed to elevated leverage.
Despite an increase in new distributors, the industry and business
model remain pressured, with sales volumes still negative. However,
if new distributor wins persist, sales volumes are likely to turn
positive in 2025. Herbalife's global diversification supports its
credit profile, as pressures and weak sales volumes are not
uniformly experienced across different regions.
The rating action also acknowledges Herbalife's improved liquidity
position as reflected in the upgrade to SGL-2 from SGL-3. As of
2024 year end, the company had $415 million in cash and an undrawn
$400 million revolver with availability reduced by $45 million of
an issued but undrawn letter of credit. Moody's anticipates that
Herbalife will generate at least $175 million of free cash flow in
2025 and that all share repurchases will remain suspended until
management's gross leverage target of 3.0x (based on the company's
calculation) is achieved. Company calculated total leverage ratio
was 3.2x as of December 31, 2024. Herbalife redeemed in February
2025 $65 million of the unsecured notes due in September 2025 and
the liquidity sources provide good coverage of the remaining $197
million of September 2025 notes outstanding as well as the roughly
$20 million of required annual term loan amortization.
The company plans to repay the unsecured notes due September 2025
using a combination of internally generated cash and revolver draw.
As a result, senior secured instrument ratings may change depending
on the evolution of the debt mix to include less unsecured debt
cushion.
RATINGS RATIONALE
Herbalife's B1 CFR broadly reflects its niche product and service
offering in the competitive nutrition and weight loss industry
reliance on the direct sales channel, good free cash flow and an
aggressive financial strategy driven by high leverage and
debt-financed share repurchases. The company offers meal
replacement, targeted nutrition and sports nutrition products and
customer support, aiding clients in weight management and improved
nutrition. The industry is highly competitive and Herbalife's focus
on the direct sales channel creates reliance on continual high
levels of sales force and member recruitment to sustain and grow
the revenue base. Herbalife's strategies to restore growth are
showing some signs of effectiveness including a year-over-year
increase in average active sales leaders in the fourth quarter of
2024. Moody's expects sales volumes to turn positive by the end of
2025 due to the favorable trend of three consecutive quarters of
year-over-year new distributor gains. However, there is execution
risk to achieving sustainable growth due to continual recruitment
needs, competition and emerging alternative weight-loss methods
such as GLP-1 drugs. Herbalife is also exposed to changes in
commodity costs, particularly for the largest commodity input
soybeans, and steady declines in soybean prices since peaking in
2022 should help keep earnings stable in 2025. Additionally,
previous restructuring programs are driving cost improvements,
contributing to margin enhancement. The company's $163 million of
free cash flow generation in 2024 exceeded expectations and Moody's
expects good continued free cash flow generation of at least $175
million in 2025 to provide capacity to continue to repay debt.
Herbalife's global multi-level marketing (MLM) structure could face
challenges as recruitment efforts become more difficult amid the
rise of work-from-home flexible options and changing consumer
preferences. The long-term risk for MLMs in developing markets is
high due to increasing retail penetration, e-commerce activity,
competition, and foreign exchange pressures, which can gradually
erode legacy distribution advantages. Therefore, Herbalife needs to
maintain stronger credit metrics than similar companies with more
stable and less risky business profiles. The company opted to stop
share buybacks in 2023 and is committed to achieving its gross
leverage ratio target of 3.0x (based on the company's calculation).
The authorized share buy back program expired on February 9, 2024.
Because debt-to- EBITDA of 3.2x on this basis at the end of 2024
was above the target and the company has committed to repay debt by
$1 billion to roughly $1.4 billion by the end of 2028, Moody's
believes the company remains focused on reducing debt and leverage.
Moody's expects debt-to-EBITDA (incorporating Moody's adjustments)
will decline to slightly below 4x in 2025 from 4.4x as of December
2024.
The ratings are supported by consumer focus on health and wellness
including weight loss, product innovation, predictable free cash
flow, and excellent geographic diversity. The nutrition and
wellness sector is expected to witness strong long-term demand due
to an aging population, high obesity rates, and a continued focus
on wellness. However, competition requires continual investment and
new products to avoid market share erosion.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects Moody's expectations that Herbalife's
strategies to sustain positive distributor trends will drive
positive sales volume by the end of 2025 and stable earnings.
Moody's also anticipates that the company will continue to maintain
good liquidity including generating free cash flow of at least $175
million annually and repay the September 2025 note at or by
maturity with cash and revolver draw, and remain focused on
reducing debt and leverage.
Ratings could be upgraded if Herbalife demonstrates sustained
growth in sales and profitability with good liquidity. The company
would also need to adhere to a more conservative financial
strategy. Debt-to-EBITDA sustained below 4x, EBITA-to-interest
sustained above 2.5x and retained cash flow (RCF)-to-net debt
sustained in the mid-20% range would also be necessary for an
upgrade.
Ratings could be downgraded if earnings decline due to factors such
as a contraction in the sales force of product volumes, pricing
pressure on higher costs. Debt-to-EBITDA above 5x,
EBITA-to-interest below 2x, free cash flow below $100 million, or a
deterioration in liquidity could also lead to a downgrade.
The principal methodology used in these ratings was Consumer
Packaged Goods published in June 2022.
Herbalife Ltd., founded in 1980 and based in Los Angeles, CA, is a
global health and wellness company that sells weight management,
targeted nutrition, energy, sports and fitness, and outer nutrition
products to and through a global network of independent members.
The company operates through a multi-level marketing system that
consists of approximately 6.2 million global members across 95
markets. Net sales for the year ended December 31, 2024 for the
publicly traded company were approximately $5 million.
I A P CONSTRUCTION: Janice Seyedin Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 11 appointed Janice Seyedin as
Subchapter V trustee for I A P Construction, Inc.
Ms. Seyedin will be paid an hourly fee of $295 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Seyedin declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
About I A P Construction
I A P Construction, Inc. filed Chapter 11 petition (Bankr. N.D.
Ill. Case No. 25-02709) on February 24, 2025, listing up to $1
million in both assets and liabilities. Ian Proce, president of I A
P, signed the petition.
Judge Deborah L. Thorne oversees the case.
David R. Herzog, Esq., represents the Debtor as legal counsel.
JM GROVE: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------
The U.S. Trustee for Region 20 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of JM Grove, LLC.
About JM Grove LLC
JM Grove, LLC filed Chapter 11 petition (Bankr. D. Kan. Case No.
25-20111) on February 4, 2025, listing between $50,001 and $100,000
in assets and between $100,001 and $500,000 in liabilities. Jordan
Grove, a member of JM Grove, signed the petition.
Judge Dale L. Somers oversees the case.
The Debtor is represented by:
Colin N. Gotham, Esq.
Evans & Mullinix, P.A.
Tel: 913-962-8700
Email: cgotham@emlawkc.com
JW ALUMINUM: S&P Rates New $350MM Senior Secured Notes 'B'
----------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating and '3'
recovery rating to U.S.-based flat-rolled aluminum producer JW
Aluminum Continuous Cast Co.'s (B/Stable; JWA) proposed $350
million senior secured notes due 2030. The '3' recovery rating
indicates S&P's expectation for meaningful (50%-70%; rounded
estimate: 55%) recovery in the event of a conventional payment
default. The company plans to use the proceeds from these notes to
refinance its upcoming $300 million 10.25% senior secured notes due
2026, to fund dividends to parent entities up to $50 million, and
for general corporate purposes.
JWA recently strengthened its credit profile by completing the
plant modernization program at its Mt. Holly site, which will
likely support consistent margins and better cash flow stability.
S&P expects the company will generate sustained positive free
operating cash flow (FOCF) and maintain leverage of below 5x in
2025 as it benefits from its improved EBITDA generation due to more
efficient operations and increased production capacity at its Mt.
Holly site.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P assigned its 'B' issue-level rating and '3' recovery rating
to the company's proposed $350 million senior secured notes due
2030. The '3' recovery rating indicates its expectation for
meaningful (50%-70%; rounded estimate: 55%) recovery in the event
of a conventional payment default.
-- S&P assumes a reorganization (rather than asset liquidation)
would maximize the recoveries for JWA's creditors. S&P's recovery
analysis contemplates a gross valuation of approximately $285
million, which reflects about $52 million of emergence EBITDA and a
5.5x multiple.
-- The $52 million of emergence EBITDA incorporates S&P's
assumptions for minimum capital expenditure (of about 2% of sales
on a go-forward basis) and our standard 15% cyclicality adjustment
for issuers in the metals and mining downstream sector.
-- Meanwhile, the 5.5x multiple is in line with the multiples
S&P's use for other companies in the metals and mining downstream
sector.
-- S&P's recovery analysis also assumes that, in a hypothetical
bankruptcy scenario, the company would have drawn about 60% of the
commitment amount under its $100 million asset-based lending (ABL)
facility--approximately $60 million--at default.
Simulated default assumptions
-- S&P bases its simulated default scenario on a default in 2028
following continued weakness across the company's key end markets,
including building and construction, HVAC, transportation,
packaging and containers, and others. This would lead to negative
cash flows and render the company unable to meet its debt
obligations. Our hypothetical default scenario could also stem from
potential costs overruns or delays from the Mt. Holly expansion
project that pressure the company's liquidity.
-- Year of default: 2028
-- Emergence EBITDA: $51.9 million
-- EBITDA multiple: 5.5x
-- Gross recovery value: $286 million
Simplified waterfall
-- Net enterprise value (after 5% of administrative expenses):
$271 million
-- Priority claims (ABL facility and other long-term debt): $61
million
-- Total value available to senior secured credit facilities: $210
million
-- Estimated senior secured debt claims: $366 million.
--Recovery expectations: 50%-70% (estimated recovery: 55%)
M2I GLOBAL: Posts Larger Net Loss of $3.89 Million for FY 2024
--------------------------------------------------------------
M2i Global, Inc. filed its annual report on Form 10-K with the
Securities and Exchange Commission, reporting a net loss of $3.89
million with no revenue for the year ending Nov. 30, 2024. This
compares to a net loss of $1.99 million on revenue of $3,400 for
the year ending Nov. 30, 2023. The increase in net loss is
attributed to higher operating expenses and increased interest
expenses.
As of Nov. 30, 2024, the Company had $85,420 in total assets,
$26.62 million in total liabilities, and a total stockholders'
deficit of $2.53 million.
Diamond Bar, California-based TAAD, L.L.P., the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated Feb. 27, 2025, citing that the Company has limited revenues
and incurred recurring losses that raise substantial doubt about
its ability to continue as a going concern.
As of the fiscal year ended Nov. 30, 2024, the Company had cash of
$80,281 and $48,197 as of the fiscal year ended Nov. 30, 2023.
Furthermore, the Company had a working capital deficit of
$2,532,472 and $1,038,946 as of the fiscal years ended Nov. 30,
2024 and 2023, respectively. The increase in the working deficit
is due to a rise in unpaid accounts payable and payables to related
parties.
During the fiscal year ended Nov. 30, 2024, the Company used
$2,098,661 of cash in operating activities compared to $1,611,258
of cash in operating activities during the fiscal year ended Nov.
30, 2023. The increase in cash used in operating activities was
the result of an increase in net loss, offset by an increase in
accounts payable and accounts payable-related party.
During the fiscal years ended Nov. 30, 2024 and 2023, the Company
had no cash flows from investing activities
During the fiscal year ended Nov. 30, 2024, the Company generated
$2,130,745 cash in financing activities which came from a net
decrease in the related-party loan of $563,950 and proceeds from
sale of common stock of $2,396,735 offset by repurchase of common
stock of $5,000 and a promissory note for $302,960. During the
fiscal year ended Nov. 30, 2023, the Company generated $1,659,341
of cash in financing activities which came from a related-party
loan of $608,319, a convertible note for $250,000 and proceeds from
sale of common stock of $1,236,022 offset by repurchase of common
stock of $435,000.
The complete text of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1753373/000149315225008533/form10-k.htm
About M2I Global, Inc.
M2I Global, Inc., headquartered in Incline Village, NV, focuses on
securing reliable access to critical minerals and metals essential
for the U.S., its allies, and partners. By developing a diverse
portfolio of projects, it aims to address challenges in the
critical minerals and materials sector, ensuring sustainable and
stable supply chains. The Company's efforts support industries
like technology, defense, and energy, while contributing to
national security and economic growth.
MALLINCKRODT PLC: Opioid Trust Suit Can't Proceed to Mediation
--------------------------------------------------------------
Chief Judge Colm F. Connolly of the United States District Court
for the District of Delaware accepted the recommendation from
Magistrate Judge Christopher J. Burke that the case captioned as
OPIOID MASTER DISBURSEMENT TRUST II, Appellant, v. ARGOS CAP IT AL
APPRECIATION MASTER FUND LP, et al., Appellees, Case No.
25-cv-00114-CFC (D. Del.) be withdrawn from the mandatory referral
for mediation and proceed through the appellate process of this
court.
Briefing on this bankruptcy appeal shall proceed in accordance with
the following schedule:
1. Appellants' brief in support of the appeal is due on or
before
April 3, 2025.
2. Appellee's brief in opposition to the appeal is due on or
before May 5, 2025.
3. Appellants' reply brief is due on or before May 19, 2025.
A copy of the Court's decision dated March 4, 2025, is available at
https://urlcurt.com/u?l=zBfluZ from PacerMonitor.com.
About Mallinckrodt plc
Mallinckrodt (OTCMKTS: MNKTQ) -- http://www.mallinckrodt.com/-- is
a global business consisting of multiple wholly-owned subsidiaries
that develop, manufacture, market and distribute specialty
pharmaceutical products and therapies. The Company's Specialty
Brands reportable segment's areas of focus include autoimmune and
rare diseases in specialty areas like neurology, rheumatology,
nephrology, pulmonology and ophthalmology; immunotherapy and
neonatal respiratory critical care therapies; analgesics; and
gastrointestinal products. Its Specialty Generics reportable
segment includes specialty generic drugs and active pharmaceutical
ingredients.
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case
No. 20-12522) to seek approval of a restructuring that would reduce
total debt by $1.3 billion and resolve opioid-related claims
against them. Mallinckrodt in mid-June 2022 successfully completed
its reorganization process, emerged from Chapter 11 and completed
the Irish Examinership proceedings.
Mallinckrodt Plc said in a regulatory filing in early June 2023
that it was considering a second bankruptcy filing and other
options after its lenders raised concerns over an upcoming $200
million payment related to opioid-related litigation.
Mallinckrodt plc and certain of its affiliates again sought Chapter
11 protection (Bankr. D. Del. Lead Case No. 23-11258) on Aug. 28,
2023. Mallinckrodt disclosed $5,106,900,000 in assets and
$3,512,000,000 in liabilities as of June 30, 2023.
Judge John T. Dorsey oversees the new cases.
In the prior Chapter 11 cases, the Debtors tapped Latham & Watkins,
LLP and Richards, Layton & Finger, P.A. as their bankruptcy
counsel; Arthur Cox and Wachtell, Lipton, Rosen & Katz as corporate
and finance counsel; Ropes & Gray, LLP as litigation counsel;
Torys, LLP as CCAA counsel; Guggenheim Securities, LLC as
investment banker; and AlixPartners, LLP, as restructuring
advisor.
In the new Chapter 11 cases, the Debtors tapped Latham & Watkins,
LLP and Richards, Layton & Finger, P.A., as their bankruptcy
counsel; Arthur Cox and Wachtell, Lipton, Rosen & Katz as corporate
and finance counsel; Guggenheim Securities, LLC as investment
banker; and AlixPartners, LLP, as restructuring advisor. Kroll is
the claims agent.
MAPRAGENCY INC: Seeks Subchapter V Bankruptcy in Colorado
---------------------------------------------------------
On March 4, 2025, MAPRagency Inc. filed Chapter 11 protection in
the U.S. Bankruptcy Court for the District of Colorado. 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 MAPRagency Inc.
MAPRagency Inc., d/b/a Comprise and Stryker-Munley Group Boulder,
is a Boulder-based public relations and marketing agency that
specializes in creative services, digital marketing, web design,
and public relations. The Company focuses on delivering innovative
strategies and solutions for businesses to enhance their brand
visibility and engagement.
MAPRagency Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Col. Case No. 25-11092) on March 4,
2025. In its petition, the Debtor reports estimated assets between
$50,000 and $100,000 and estimated liabilities between $1 million
and $10 million.
Honorable Bankruptcy Judge Thomas B. Mcnamara handles the case.
The Debtor is represented by
Jeffrey A. Weinman, Esq.
ALLEN VELLONE WOLF HELFRICH & FACTOR, P.C.
1600 Stout Street
1900
Denver, CO 80202
Tel: 303-534-4499
Email: jweinman@allen-vellone.com
MCCLAIN FAMILY: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: McClain Family Cellars, Inc.
d/b/a McClain Cellars
16 Technology Drive
Suite 111
Irvine, CA 92618-2320
Business Description: McClain Cellars is a Black-owned winery
based in the Santa Ynez Valley, California.
The winery is known for producing luxury,
award-winning wines and emphasizes four core
pillars: Family, Friends, Faith, and
Freedom, offering a range of wines from both
red and white varieties. The Company
provides experiences like private events,
in-home tastings, and barrel blending.
Additionally, McClain Cellars operates
multiple locations, including in Laguna
Beach, Irvine, Solvang, and Buellton, and
offers a wine club with various membership
options. The Company is a proud member of
the African-American Vintners Association.
Chapter 11 Petition Date: March 7, 2025
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-10589
Judge: Hon. Theodor Albert
Debtor's Counsel: Marc C. Forsythe, Esq.
GOE FORSYTHE & HODGES LLP
17701 Cowan
Lobby D. Suite 210
Irvine, CA 92614
Tel: (949) 798-2460
E-mail: mforsythe@goeforlaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jason McClain as chief executive
officer.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/NWCB3LY/McClain_Family_Cellars_Inc__cacbke-25-10589__0001.0.pdf?mcid=tGE4TAMA
MONTFER PROPERTY: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Montfer Property Investments LLC
4716 Danielle Place
Salida, CA 95368
Business Description: Established in 2018, Montfer Property
Investments is a real estate investment
company specializing in creating mutually
beneficial solutions for homeowners and
investors.
Chapter 11 Petition Date: March 10, 2025
Court: United States Bankruptcy Court
Eastern District of California
Case No.: 25-90173
Judge: Hon. Ronald H. Sargis
Debtor's Counsel: David C. Johnston, Esq.
DAVID C. JOHNSTON
1600 G Street, Suite 102
Modesto, CA 95354
Tel: (209) 579-1150
Email: david@johnstonbusinesslaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jose Montejano as managing member.
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/FY7AMCA/Montfer_Property_Investments_LLC__caebke-25-90173__0001.0.pdf?mcid=tGE4TAMA
MVL INVESTMENTS: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of MVL Investments Group, Inc., according to court
dockets.
About MVL Investments Group
MVL Investments Group Inc. filed Chapter 11 petition (Bankr. S.D.
Fla. Case No.: 25-11278) on February 5, 2025. In its petition, the
Debtor reported between $1 million and $10 million in assets and
between $500,000 and $1 million in liabilities.
Judge Scott M. Grossman handles the case.
The Debtor is represented by Mark S. Roher, Esq., at the Law Office
of Mark S. Roher, P.A.
NATGASOLINE LLC: S&P Assigns Prelim 'BB-' Rating on Sec Term Loan B
-------------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'BB-' long-term rating
to the project's proposed debt issuance. S&P also assigned a '2'
recovery rating to the debt.
The stable outlook reflects S&P's expectation that production rates
will remain stable near nameplate capacity, and methanol prices
will be supportive.
Natgasoline is a natural gas-based methanol production facility in
Beaumont, Texas, with a nameplate capacity of about 1.75 million
metric tons per year (mmta). Natgasoline has access to extensive
distribution and logistics infrastructure; and connections to both
the Golden Triangle and TETCO header systems, which provide
redundant access to multiple natural gas pipelines and nearby
storage. The project is a joint venture of OCI N.V. and Proman USA,
with each owning 50%.
-- First-quartile producer of methanol
-- Robust operational performance following repairs
-- Exposure to methanol prices, which are very volatile and
correlate with the macroeconomic environment
-- Periodic operational disruptions that could expose the project
to volatile cash flow
S&P said, "The final rating is subject to our receipt and
satisfactory review of all final transaction documentation,
appointment of the transaction's financial counterparty, and the
final cost of the debt issuance. Accordingly, the preliminary
rating should not be construed as evidence of a final rating. If we
do not receive the final documentation within a reasonable period,
or if the documentation departs from the materials we have already
reviewed or the assumptions we have made for purposes of the
preliminary rating, or the debt cost is materially different from
what we have assumed, we reserve the right to change the rating.
"Natgasoline has announced the proposed TLB, with almost all the
proceeds to be used to repay debt outstanding. We expect the
proposed debt will carry terms and covenants substantially similar
to those of the current debt. The pro forma minimum debt service
coverage ratio (DSCR) of 1.80x occurs in 2032, after the proposed
TLB matures. Therefore, we view the transaction as debt neutral."
The plant had an unplanned outage in September 2024, when a gas
supply line was ruptured. Following the incident, the plant was
taken offline for 84 days for repairs and reinforcement. Despite
the disruption, the project maintained sufficient liquidity to
support its debt service and turnaround capital expenditure from
insurance proceeds and cash on hand, without the need to draw on
its revolving credit facility. In addition, the plant was down in
fall 2024 for a major turnaround; however, because more than 90% of
the project's operating expenses are variable, it did not face high
overhead when the plant was shut down for the turnaround and repair
in 2024.
Although these events resulted in weaker cash flow available for
debt service (CFADS) and EBITDA (expected to be $120 million) for
2024, the project remained in compliance with its covenants. The
project is expected to exit 2024 with a DSCR of 2.3x (as defined by
its covenants). In addition, S&P believes the project's response to
this event demonstrates its resiliency during a prolonged outage.
S&P said, "In the next 12 months, we expect methanol prices will be
supportive for Natgasoline, spurred by tightening supply and stable
demand. In the near term, supply will be low due to prolonged
outages in Norway and Iran. In the medium term, the permanent
reduction in methanol production capacity globally and the lack of
additional capacity will further constrain supply. On the other
hand, demand is supported by new methanol-fueled ships and other
applications. Although we rate to a mid-cycle methanol price in our
base-case scenario, supportive pricing will reduce any immediate
risk to the project's cash flow and liquidity in the near term.
"The stable outlook reflects our expectation that production rates
will be stable and near nameplate capacity, and methanol prices
will remain supportive. In addition, we expect the project will be
able to manage its natural gas feedstock prices, or partially pass
through rising feedstock costs to customer. Our minimum DSCR of
1.80x, which still supports the 'BB-' rating, occurs in 2030. This
coincides with a period of major maintenance.
"We could take a negative rating action if Natgasoline's margin
deteriorates materially, such that the DSCR falls to 1.75x and
remains at that level. This could stem from depressed commodity
prices or the project's inability to pass through rising feedstock
costs to its customers. In addition, the DSCR could deteriorate due
to operational issues that lead to a significant increase in
operating costs or require a plant shutdown for an extended period,
affecting production volume.
"We would consider an upgrade if we believed that, given the
volatile nature of methanol prices, Natgasoline could consistently
achieve debt service coverage exceeding 3.0x in all years of our
base-case projection, including the refinancing period. This could
stem from substantial improvements in methanol prices in the market
or the acquisition of long-term offtake contracts that provide
price and volume certainty, but absent any material increase in
natural gas feedstock prices."
Environmental, Social, And Governance
Environmental factors are a negative consideration for our rating
on Natgasoline's debt, given the project's use of natural gas as
feedstock. That said, S&P expects the project to benefit on a
comparative basis from the energy transition in the medium term, as
the plant uses natural gas unlike other methanol-producing
facilities that rely on coal.
Governance is also a neutral consideration. Project sponsors have
maintained all necessary permits and sufficient transparency on
operating performance to date.
NB STRANDS: Seeks $8.2MM DIP Loan From Dove Mortgage
----------------------------------------------------
NB Strands, LLC asked the U.S. Bankruptcy Court for the Central
District of California, Santa Ana Division, for authority to use
cash collateral and obtain an $8.2 million loan from Dove Mortgage
Corporation.
The company needs to obtain debtor-in-possession (DIP) loan to pay
all existing claims in full and facilitate the completion of a
residential construction project.
The DIP loan is due and payable on December 31, 2026.
NB Strands aims to pay all claims from the loan proceeds and later
file a motion for case dismissal after full repayment of debts.
This loan will also provide necessary funding for its luxury
residence construction project, with Genova Construction and
Development managing completion.
Genova Construction and Development will receive a secured second
deed of trust to help fund and complete the project. It is
estimated to require about $6 million in additional financing.
Together, the Dove loan and Genova's financing will provide $14
million covering all debts and completing the project.
A priority lien is held by Center Street Lending VIII SPE, LLC,
which matured in March 2024. Negotiations for refinancing the loan
failed, and a foreclosure sale was scheduled for October 2024.
Since filing for bankruptcy, NB Strands has been operating as a
debtor-in-possession, with no operating income. Its member,
Versity, has loaned approximately $59,000 to cover post-petition
expenses and has provided additional operational support through
its affiliate, Crew Enterprises, LLC.
NB Strands has filed a Chapter 11 plan of reorganization, which
includes the sale of the property and repayment of creditors. The
company is aiming to refinance the property by June 30. The plan
includes a potential sale of the property after completing the
construction project by December 30, 2026. If refinancing is not
possible, the property will be sold "as-is" within 12 months of the
effective date of the plan.
The company has already filed an amended Disclosure Statement,
which is set for approval today. The disclosure statement details
the property's value, estimated at $14.898 million in an "as-is"
condition and between $23.9 million to $24.7 million after the
project is completed.
All secured creditors will be adequately protected, as the loan
proceeds will pay off their claims in full from escrow.
A court hearing will be held today, at 1:30 p.m.
About NB Strands LLC
NB Strands, LLC was created to develop real estate located at The
Strand, a coastal community in Dana Point, Calif.
NB Strands filed Chapter 11 petition (Bankr. C.D. Calif. Case No.
24-12640) on October 16, 2024, listing between $10 million and $50
million in both assets and liabilities. Brian Nelson, manager,
signed the petition.
Judge Scott C. Clarkson oversees the case.
Paul Leeds, Esq., at Franklin Soto Leeds LLP, represents the Debtor
as legal counsel.
NEDDY LLC: Joseph Cotterman Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 14 appointed Joseph Cotterman as
Subchapter V trustee for Neddy, LLC, doing business as Fortress
Asphalt.
Mr. Cotterman will be paid an hourly fee of $500 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Cotterman declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Joseph E. Cotterman
5232 W. Oraibi Drive
Glendale, AZ 85308
Telephone: 480-353-0540
Email: cottermail@cox.net
About Neddy LLC
Neddy LLC, operating as Fortress Asphalt, is a construction company
based in Peoria, Arizona.
Neddy LLC sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Ariz.Case No. 25-01459) on February
22, 2025. In its petition, the Debtor reports estimated assets
between $500,000 and $1 million and estimated liabilities between
$1 million and $10 million.
Honorable Bankruptcy Judge Brenda K. Martin handles the case.
The Debtor is represented by:
Alan A. Meda, Esq.
Burch & Cracchiolo PA
1850 N. Central Ave., Suite 1700
PHOENIX, AZ 85004
Phone: 602-234-8797
Fax: 602-850-9797
NEW LONDON: Seeks Cash Collateral Access
----------------------------------------
New London Pharmacy, Inc. and Eleni International, Inc. asked the
U.S. Bankruptcy Court for the Southern District of New York for
authority to use cash collateral.
The companies need to use cash collateral to pay for essential
operational costs, including inventory orders and payroll.
Both companies proposed offering protection to their pre-bankruptcy
senior secured lender, Cardinal Health 110, LLC, including
replacement liens, access to financial records, and a waiver of
certain bankruptcy provisions to ensure Cardinal's interests are
protected.
The companies' assets also exceed their debt to Cardinal, providing
an equity cushion to safeguard its interests.
A court hearing is set for March 20.
The companies filed for Chapter 11 bankruptcy protection after
facing significant financial distress, exacerbated by the COVID-19
pandemic, rising rent, and issues with their landlord.
The companies' bank accounts were seized by the landlord in January
2025, severely disrupting their ability to operate and provide
essential medicines. They sought emergency relief from the court to
regain control over their accounts and requested permission to use
cash collateral to prevent further harm.
About New London Pharmacy
New London Pharmacy, Inc. owns and operates a health care business
in New York. Its affiliate, Eleni International Inc., is a New
York-based healthcare company specializing in retail pharmacy.
New London Pharmacy and Eleni International filed Chapter 11
petitions (Bankr. S.D. N.Y. Lead Case No. 25-10107) on February 23,
2025. At the time of the filing, both Debtors reported between $1
million and $10 million in assets and liabilities.
Judge John O. Mastando, III oversees the cases.
Ralph E. Preite, Esq., at Cullen and Dykman LLP, represents the
Debtors as legal counsel.
Cardinal Health 110, LLC, as lender, is represented by:
Scott A. Zuber, Esq.
Chiesa Shahinian & Giantomasi, PC
105 Eisenhower Parkway
Roseland, NJ 07068
Tel: (973) 530-2046
Fax:(973) 530-2246
Email: szuberfa-icselaw.com
NEW YORK'S PREMIER: Unsecureds to Split $375K over 19 Months
------------------------------------------------------------
New York's Premier Group LLC filed with the U.S. Bankruptcy Court
for the Northern District of New York a Plan of Reorganization for
Small Business under Subchapter V dated February 24, 2025.
The Debtor is a Limited Liability Company duly formed under the
laws of the State of New York. The Debtor is operated and managed
by its Managing Member, Mr. Johnathan Vincent.
The Debtor is a roofings, siding, and window contractor with its
principal place of business located at 635 Plank Road, Clifton
Park, New York 12065. The Debtor was formed on February 17, 2021,
and provides contracting services to primarily residential clients.
At the time of filing, Debtor owed secured debts (without
accounting for bifurcation) in the amount of approximately
$661,500.000 arising from a combination of secured collateral debts
(i.e. Truck and Equipment loans) and various UCC filings by
multiple creditors.
At the time of filing, Debtor owed approximately $16,000.00 in
priority unsecured claims, arising from ordinary course wages owed1
and approximately $1,300,000.00 in general unsecured debts.
The Debtor's goal in this reorganization is to: (a) maintain
necessary collateral and repay the secured creditors associated
with its necessary equipment the present value of said equipment,
with interest, over the life of the plan of reorganization; (b)
surrender superfluous equipment back to secured creditors in order
to reduce monthly overhead; (c) repay NYS Article 3A Lien Law
Creditors, in full, and (d) provide a reasonable dividend back to
its general unsecured creditors.
The Plan shall be funded from ongoing revenues derived by the
Debtor's ongoing business operations. The final Plan payment is
expected to be paid 60-months from date of Confirmation.
Class 7 claims are wholly unsecured and shall receive repayment
under the Plan. Any Creditor otherwise not specifically accounted
for under this Plan shall be treated as a General Unsecured Class 7
Claim. Class 7 Creditors shall receive distributions under the Plan
beginning in Month 41, after Class 5 and Class 6 Claims have been
paid in full and shall be amortized and paid over the remaining 19
months of the Plan.
If allowed, General Unsecured Creditors shall receive their pro
rata share of up to $375,317.47. Estimated Monthly Payment to Class
7 Creditors: $19,753.55/mo. for 19 months.
Class 7 consists of Equity Shareholder John Vincent. Equity
Interest holders shall retain 100% of the membership interest in
the reorganized Debtor. Mr. Vincent shall waive any claim held by
himself personally against the Debtor.
A full-text copy of the Plan of Reorganization dated February 24,
2025 is available at https://urlcurt.com/u?l=Qf6gmP from
PacerMonitor.com at no charge.
About New York's Premier Group
New York's Premier Group, LLC, is a local contractor in Clifton
Park, offering roofing, siding, and window services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D.N.Y. Case No. 24-11304) on Nov. 25,
2024, with $991,455 in assets and $1,986,430 in liabilities.
Johnathan Vincent, managing member, signed the petition.
Judge Robert E. Littlefield, Jr. oversees the case.
The Debtor is represented by:
Michael Leo Boyle
Boyle Legal, LLC
Tel: 518-407-3121
Email: mike@boylebankruptcy.com
NIKOLA CORP: Reaches Settlement with Investors on Fraud Suit
------------------------------------------------------------
Gillian R. Brassil of Bloomberg Law reports that Nikola Corp. has
reached a settlement with investors in a class action lawsuit
alleging the bankrupt electric-truck maker misled them about its
technology and business prospects, while the case against the
company's founder remains ongoing.
In a joint notice filed Monday, Nikola and the investors indicated
they plan to formalize the settlement agreement and seek
preliminary approval from the US District Court for the District of
Arizona. The notice comes roughly a month after Nikola filed for
Chapter 11 bankruptcy to liquidate assets, resulting in the
investors' case against the company being put on hold.
About Nikola Corp.
Nikola Corporation manufactures commercial vehicles. The Company
provides battery and hydrogen fuel-cell electric vehicles,
drivetrains, components, energy storage systems, fueling station
infrastructure, and other transportation solutions. Nikola serves
customers worldwide.
Nikola Corp. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 25-10258) on February 19, 2025. In
its petition, the Debtor reports estimated assets between $500
million and $1 billion, with liabilities ranging from $1 billion to
$10 billion.
Honorable Bankruptcy Judge Thomas M. Horan handles the case.
The Debtor is represented by M. Blake Cleary, Esq. at Potter
Anderson & Corroon LLP.
NORTHVOLT AB: Scania Remains Resilient Despite Co.'s Bankruptcy
---------------------------------------------------------------
Rafaela Lindeberg of Bloomberg News reports that Volkswagen AG's
truckmaker Scania continues to receive battery cells from Northvolt
AB, even as the Swedish battery manufacturer navigates bankruptcy
proceedings.
"We have consistently received the cells we order, which is very
encouraging," Scania CEO Christian Levin said in an interview on
Monday, March 10, 2025. To support the production ramp-up, several
Scania employees have been deployed to Northvolt's Skellefteå
facility, with both companies remaining in close, daily contact.
Scania has been one of Northvolt's most steadfast supporters,
planning to rely on the manufacturer for batteries to power its
electric trucks.
About Northvolt AB
Northvolt AB was established in 2016 in Stockholm, Sweden.
Pioneering a sustainable model for battery manufacturing, the
company has received orders from several leading automotive
companies. The company is currently delivering batteries from its
first gigafactory, Northvolt Ett, in Skelleftea, Sweden and from
its R&D and industrialization campus, Northvolt Labs, in Vasteras,
Sweden.
On Nov. 21, 2024, Northvolt AB and eight affiliated debtors filed
voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-90577).
The cases are before the Honorable Alfredo R. Perez.
Northvolt is being advised by Teneo as its restructuring and
communications advisor. Kirkland & Ellis LLP, A&O Shearman and
Mannheimer Swartling Advokatbyra AB are serving as legal counsel.
The company has also engaged Rothschild & Co to run its marketing
process. Stretto is the claims agent.
ORION SECURITY: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Orion Security Service and Investigation Incorporated
State Road 818 KM 2.0
Bo. Cibuco
Corozal, PR 00783
Business Description: Orion Security Service and Investigation
is a security services company based in
Corozal, Puerto Rico.
Chapter 11 Petition Date: March 7, 2025
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 25-01003
Debtor's Counsel: Rafael A. Gonzalez Valiente, Esq.
GODREAU & GONZALEZ, LLC
P.O. Box 9024176
San Juan, PR 00902-4176
Tel: 787-726-0077
E-mail: rgv@g-glawpr.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Andres Morales Negron as president.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/6HZQMRQ/Orion_Security_Servic_Orion_Security__prbke-25-01003__0001.0.pdf?mcid=tGE4TAMA
PACIFIC DENTAL: S&P Affirms 'B' ICR, Outlook Stable
---------------------------------------------------
S&P Global Ratings affirmed all its ratings on U.S.-based dental
support organization (DSO) Pacific Dental Services LLC (PDS
Health), including its 'B' long-term issuer rating with a stable
outlook. S&P also affirmed its 'B' issue-level rating on its
first-lien term loan, and the recovery rating remains '3'.
The stable outlook reflects solid organic revenue growth prospects,
partly offset by an expectation for EBITDA margins to slightly
contract and the potential for future dividends.
S&P said, "We believe PDS is well positioned to take advantage of
modest industry tailwinds, while also maintaining a healthy level
of profitability. PDS continued its ability to hire and retain
talent while growing its scale of operations. PDS continued its
trend of solid operating performance in 2024, achieving top-line
growth of 12.8% due to 9% same-office growth and 4% growth in
average spend per visit. Overall, robust demand for dentistry led
to solid growth in new and recurring patient visits, though labor
remains a key point of focus as demand continues to outstrip supply
of dentists and technicians. In 2024 PDS' focus on hiring and
retention ultimately led to a decline in companywide turnover by
roughly 480 basis points (bps). Additionally, its dentist ownership
model incentivizes high office-level productivity and efficiency.
Although PDS has been focused on increasing its clinical capacity,
particularly on workforce retention, its EBITDA margin has remained
relatively stable at 13.5%-14.5%. We believe there could be some
pressure on margins as PDS continues to expand its scale of
operations, but its investments in technology and overall cost
focus will likely support margins in that range.
"Our rating also reflects PDS' narrow business focus in a
fragmented industry with low barriers to entry and low customer
switching costs. We view the highly competitive DSO market as
fragmented with most dental offices operating as independent
practices or local chains, demonstrating that solid economics still
exist for dentists that also want to manage their practice. With
relatively low start-up costs, we think independent practices will
still compete well with large dental aggregators. We also think
patients can easily switch dental providers. Additionally, while
PDS is one of the larger and most efficient DSOs, our rating
reflects its smaller scale and relatively weaker profitability
compared to higher-rated entities in the broader health care space.
We think PDS is comparable to Heartland Dental in its scale and
overall risk profile, although PDS' financial results are more
consistently positive. Compared to European-based Colosseum Holdco
Ii AG (Collosseum Dental), we think PDS is of similar scale but
more geographically concentrated and exposed to a single, slightly
lower margin reimbursement environment.
"We believe PDS will achieve high-single-digit percent revenue
growth over the next few years. This reflects solid trends in
patient demand, continued improvements in daily production across
various disciplines, and added value through de novo openings.
Generally, our base case for same-office growth reflects stable
annual reimbursement increases of 150 bps-200 bps, another 300 bps
from the ramp-up of de novo assets in the previous year, and some
benefit from market share gains. We also anticipate the company
will remain focused on retention, utilizing internal ramp-up
processes for new hires and incorporating greater compensation
incentives to reduce turnover. Additionally, we expect the company
will increase investments in de novo office openings, which
together with investments in compensation will likely put some
pressure on margins, resulting in S&P Global Ratings-adjusted
EBITDA margins of 13%-14%.
"We believe the company's credit metrics will remain well within
the range for the rating despite the incremental debt. We believe
the addition of the incremental $250 million term loan will
increase PDS' interest burden by around $14 million in 2025;
therefore we expect leverage will be around 5.0x-5.5x in 2025,
improving to close to 5.0x in 2026. Additionally, we expect S&P
Global Ratings-adjusted FOCF to debt will be in the 3.75%-4.25%
range in 2025 and in the 4.0%-4.5% area in 2026. Our calculation of
cash flow includes normal shareholder distributions because we
believe these to be mandatory in nature and equivalent to
compensation to its office operators. After considering mandatory
distributions and maintenance capital expenditure (capex), we
expect reported free cash flow will be about $50 million in 2025
and around $65 million in 2026. At this level, we expect PDS can
fund the majority of its growth investments, which represent the
majority of total capex. That said, we believe the company could
sustain its cash flow while still growing in a moderate stress
scenario by significantly reducing its high growth capex.
"The stable outlook reflects our expectation for the company to
consistently grow in the high-single-digit percent range with solid
organic growth in the 8%-9% range. It also reflects our expectation
that the company is able to maintain steady operating performance
with EBITDA in the 13%-14% range despite hiring and retention
initiatives. We also expect S&P Global Ratings-adjusted leverage of
about 5.3x, and S&P Global Ratings-adjusted FOCF to debt of
3.75%-4.25% in 2025.
"We could consider a lower rating if PDS adopts a much more
aggressive expansion strategy, resulting in it sustaining S&P
Global Ratings-adjusted FOCF to debt below 3.0%. This is
commensurate with the reported free cash flow deficit (after normal
distributions) of more than $50 million, reflecting an inability to
cover the majority of its growth investments. Under this scenario,
we believe its leverage is likely to increase and be sustained at
or above 6x.
"We could consider an upgrade if PDS establishes a financial policy
commensurate with maintaining more conservative financial metrics
and continues to exhibit strong growth and generate sufficient cash
flow to more than cover growth investments and mandatory
distributions associated with its owner-dentist operating model. In
this scenario, we would expect the company to sustain S&P Global
Ratings-adjusted leverage in the mid-4.0x area and FOCF to debt of
5%-6%."
PARAMOUNT DRUG: Case Summary & 10 Unsecured Creditors
-----------------------------------------------------
Debtor: Paramount Drug, LLC
d/b/a Paramount Drug
54 E. Scott Street
Riverside, NJ 08075
Business Description: Paramount Drug in Riverside, NJ, offers a
range of pharmacy services, including
prescription fills and refills,
immunizations, and the provision of durable
medical equipment. As a member of Good
Neighbor Pharmacy, it is committed to
providing personalized care and customer
satisfaction.
Chapter 11 Petition Date: March 7, 2025
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 25-12381
Debtor's Counsel: Carol L. Knowlton, Esq.
GORSKI & KNOWLTON PC
311 Whitehorse Ave
Suite A
Hamilton, NJ 08610
Tel: 609-964-4000
Fax: 609-528-0721
E-mail: cknowlton@gorskiknowlton.com
Total Assets: $269,300
Total Liabilities: $1,534,570
The petition was signed by Sharon Maher as principal.
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/HVXZJVI/Paramount_Drug_LLC__njbke-25-12381__0001.0.pdf?mcid=tGE4TAMA
PAUL LESPOIR: Seeks Subchapter V Bankruptcy in New York
-------------------------------------------------------
On March 4, 2025, Paul Lespoir Inc. filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Eastern District of New York.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Paul Lespoir Inc.
Paul Lespoir Inc. is a single-asset real estate company.
Paul Lespoir Inc. sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-41058) on
March 4, 2025. In its petition, the Debtor reports estimated assets
and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Nancy Hershey Lord handles the case.
The Debtor is represented by:
Troy Lambert, Esq.
ALTER & BARBARO, P.A.
26 Court Street, Suite 1812
Brooklyn, NY 11242
Tel: 407-897-0880
Email: troylambert@alterbabaro.com
PAULWALKEE HOSPITALITY: Gets Interim OK to Use Cash Collateral
--------------------------------------------------------------
Palwaukee Hospitality, LLC received interim approval from the U.S.
Bankruptcy Court for the Northern District of Illinois, Eastern
Division, to use the cash collateral of Albany Bank & Trust
Company, N.A. and Holiday Hospitality Franchising, LLC until April
5.
The interim order signed by Judge David Cleary authorized the
company to use cash collateral to pay its operating expenses,
including up to $24,479 in payroll and payroll expenses in
accordance with its budget.
As protection, Albany was granted a replacement lien on the
collateral in which it held a security interest and lien as of the
petition date.
Meanwhile, all post-petition fees owed by Palwaukee to Holiday
pursuant to a 2018 license agreement will be paid in full on a
monthly basis.
The next hearing is set for April 2.
About Palwaukee Hospitality
Palwaukee Hospitality, LLC is a hospitality business based in
Skokie, Ill. It primarily operates hotels and motels, including the
one located at 600 N. Milwaukee Avenue Prospect Heights, Ill.
Palwaukee filed Chapter 11 petition (Bankr. N.D. Ill. Case No.
25-02685) on February 23, 2025, listing between $1 million and $10
million in both assets and liabilities. Amin A. Amdani, managing
member, signed the petition.
Judge Deborah L. Thorne oversees the case.
Penelope Bach, Esq., at Bach Law Offices, represents the Debtor as
bankruptcy counsel.
PREMIER BRANDS: Moody's Upgrades CFR to B3, Outlook Remains Stable
------------------------------------------------------------------
Moody's Ratings upgraded Premier Brands Group Holdings LLC's
(Premier Brands) corporate family rating to B3 from Caa1 and
probability of default rating to B3-PD from Caa1-PD. Concurrently,
Moody's withdrew the Caa2 rating on the company's backed senior
secured first lien term loan due 2026. The outlook remains stable.
Premier Brands refinanced its capital structure in a
leverage-neutral transaction. The company repaid its previously
outstanding term loan, asset-based revolving credit facility (ABL)
borrowings and ABL first-in-last-out (FILO) term loan due 2026 with
proceeds from a new $64.9 million backed senior secured first lien
term loan B1 (unrated) due 2029, new $1.33 million backed senior
secured first lien term loan B2 (unrated) due 2025, new $20 million
ABL FILO term loan (unrated) due 2029 and $106 million borrowings
on a new $245 million ABL revolving facility (unrated) expiring
2029.
The upgrade reflects governance considerations, specifically
Premier Brands' enhanced liquidity after the extension of
essentially all of its debt maturities to 2029 and the increase in
its excess revolver availability. Moody's expects the company to
have good liquidity over the next 12-18 months, including positive
free cash flow and good availability on the ABL revolver despite
higher borrowings related to the refinancing.
RATINGS RATIONALE
Premier Brands' B3 CFR credit profile is constrained by the
company's high business risk as a relatively small company with
mature and primarily licensed apparel and accessories brands. The
company's brands also lack significant direct-to-consumer presence
and are exposed to the department store channel, which faces
difficult demand trends. Governance considerations are also a
limiting factor, including the company's ownership by current and
former lenders and volatile operating performance. Supporting the
credit profile is Premier Brands' diversified range of products
that includes jewelry and formal and casual women's apparel.
Premier Brands outperformed its budget year-to-date through October
05, 2024, with revenue up 2% and reported EBITDA up 5%, leading to
Moody's-adjusted debt/EBITDA of 3.9x. Moody's projects flat to
moderately lower earnings in 2025, reflecting Moody's expectations
for weaker discretionary spending among lower and middle-income
consumers, resulting in debt/EBITDA of around 4x and
(EBITDA-Capex)/interest expense of around 2x.
The stable outlook reflects Moody's expectations for good liquidity
and flat to moderately lower earnings in 2025.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company increases the scale
and quality of its owned brands and maintains good liquidity,
including solid positive free cash flow and good revolver capacity.
Quantitatively, the ratings could be upgraded with Moody's-adjusted
debt/EBITDA maintained below 3.5x and (EBITDA-Capex)/interest
expense above 2.5x.
The ratings could be downgraded if operating performance or
liquidity deteriorate, including limited or negative free cash flow
generation. Quantitatively, the ratings could be downgraded if
Moody's-adjusted debt/EBITDA is maintained above 5.0 and
(EBITDA-Capex)/interest expense is sustained well below 1.75x.
Premier Brands Group Holdings LLC (Premier Brands) is a designer,
wholesaler and brand licensor of denim including under the owned
Gloria Vanderbilt brand, women's apparel including Kasper and
jewelry including Napier. Licensed brands comprise the majority of
sales, including Anne Klein, Jones New York, Jessica Simpson and
Nine West. The company (formerly named Nine West Holdings, Inc.)
emerged from Chapter 11 bankruptcy in 2019 and is owned by former
and current lenders including Brigade Capital and Mudrick Capital.
Revenue for the twelve months ended October 05, 2024 was less than
$1 billion.
The principal methodology used in these ratings was Retail and
Apparel published in November 2023.
PROSOURCE MACHINERY: Gets OK to Use Cash Collateral Until March 24
------------------------------------------------------------------
ProSource Machinery, LLC received interim approval from the U.S.
Bankruptcy Court for the District of Colorado to use cash
collateral until March 24.
The interim order signed by Judge Kimberley Tyson authorized the
company to use cash collateral to pay the expenses set forth in its
budget.
The company's cash collateral consists of current cash and future
receipts including, but not limited to, all the funds identified in
the budget. The budget covers the period from March 1 to April 30.
The creditors that assert interests in the cash collateral are
First Interstate Bank, Capital Express, the U.S. Small Business
Administration, and Retail Capital, doing business as Credibly.
As protection, secured creditors will be granted a replacement lien
on the proceeds of all post-petition accounts in case of any
diminution in the value of their interest in the cash collateral.
A final hearing is scheduled for March 24.
ProSource was forced to file for bankruptcy due to financial
difficulties stemming from overly aggressive expansion. As the
company grew, payroll expenses increased too quickly, outpacing
revenue and leading to sustained losses. To cover these shortfalls,
ProSource took on debt at unfavorable interest rates, further
straining its financial position. More recently, the situation
worsened when a merchant cash advance company asserted a lien
against approximately $300,000 of the company's receivables,
restricting cash flow and making it increasingly difficult to meet
financial obligations. Faced with mounting debt and limited
liquidity, ProSource had no viable option but to seek bankruptcy
protection.
About ProSource Machinery
ProSource Machinery, LLC sells and rents off-highway construction
and mining equipment in Montana and Colorado.
ProSource filed Chapter 11 petition (Bankr. D. Colo. Case No.
25-11010) on February 28, 2025, listing up to $10 million in assets
and up to $50 million in liabilities. Derek Dicks, managing member
of ProSource, signed the petition.
Judge Kimberley H. Tyson oversees the case.
David J. Warner, Esq., at Wadsworth Garber Warner Conrardy, P.C.,
represents the Debtor as legal counsel.
REICHMAN KARTEN: Samuel Dawidowicz Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 2 appointed Samuel Dawidowicz as
Subchapter V trustee for Reichman, Karten, Sword Inc.
Mr. Dawidowicz will be paid an hourly fee of $565 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Dawidowicz declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Samuel Dawidowicz
215 East 68th Street
New York, NY 10065
Phone: (917) 679-0382
About Reichman, Karten, Sword Inc.
Reichman, Karten, Sword Inc. a commercial research firm
headquartered in Bayside, Queens.
Reichman, Karten, Sword Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No.
25-40921) on February 25, 2025. In its petition, the Debtor reports
estimated assets between $100,000 and $500,000 and estimated
liabilities between $500,000 and $1 million.
Honorable Bankruptcy Judge Nancy Hershey Lord handles the case.
The Debtor is represented by:
Kamini Fox, Esq.
Kamini Fox, PLLC
825 East Gate Blvd., Suite 308
Garden City, NY 11530
Tel: (516) 493-9920
Email: kamini@kfoxlaw.com
RITE AID: In Negotiations with Creditors to Boost Liquidity
-----------------------------------------------------------
Reshmi Basu and Irene García Perez of Bloomberg News report that
Rite Aid Corp. is negotiating with the providers of its
asset-backed loan to gain full access to the facility and support
its turnaround efforts, according to people familiar with the
matter.
The drugstore chain urgently needs cash to replenish inventory and
is working with lenders to eliminate barriers preventing it from
tapping into available funds under the facility, the sources said,
speaking on condition of anonymity due to the private nature of the
discussions.
A spokesperson for Rite Aid did not immediately respond to a
request for comment.
The company emerged from bankruptcy in September after closing more
than 500 stores and implementing extensive cost-cutting measures.
About Rite Aid Corp.
Rite Aid -- http://www.riteaid.com-- is a full-service pharmacy
that improves health outcomes. Rite Aid is defining the modern
pharmacy by meeting customer needs with a wide range of vehicles
that offer convenience, including retail and delivery pharmacy, as
well as services offered through our wholly owned subsidiaries,
Elixir, Bartell Drugs and Health Dialog. Elixir, Rite Aid's
pharmacy benefits and services company, consists of accredited mail
and specialty pharmacies, prescription discount programs and an
industry leading adjudication platform to offer superior member
experience and cost savings. Health Dialog provides healthcare
coaching and disease management services via live online and phone
health services. Regional chain Bartell Drugs has supported the
health and wellness needs in the Seattle area for more than 130
years. Rite Aid employs more than 6,100 pharmacists and operates
more than 2,100 retail pharmacy locations across 17 states.
The Debtors sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.N.J. Lead Case No. 23-18993) on Oct. 15, 2023. In
the petition signed by Jeffrey S. Stein, chief executive officer
and chief restructuring officer, Rite Aid disclosed $7,650,418,000
in total assets and $8,597,866,000 in total liabilities.
Judge Michael B. Kaplan oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as general bankruptcy counsel, Cole Schotz, P.C.,
as local bankruptcy counsel, Guggenheim Partners as investment
banker, Alvarez & Marsal North America, LLC as financial, tax and
restructuring advisor, and Kroll Restructuring Administration as
claims and noticing agent.
RLR MARKETING: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------
RLR Marketing Corporation received interim approval from the U.S.
Bankruptcy Court for the Northern District of Ohio to use cash
collateral.
The company needs to use cash collateral to fund its day-to-day
business operations.
Newtek Bank, N.A. and ODK Capital, LLC assert an interest in the
company's cash collateral.
As protection, both creditors were granted a replacement lien on
RLR's property to the same extent and with the same priority as
their pre-bankruptcy liens. In addition, Newtek will receive a
monthly payment of $2,000, starting this month.
The next hearing is set for May 7.
RLR obtained a $350,000 loan from Newtek and a $41,000 loan from
ODK prior to its bankruptcy filing. Both loans are guaranteed by
Ronald Rothenbuhler, RLR's chief executive officer.
About RLR Marketing Corporation
RLR Marketing Corporation does business as the School of Rock. It
operates as a franchisee, with the franchisor being the School of
Rock Franchising, LLC.
RLR filed Chapter 11 petition (Bankr. N.D. Ohio Case No. 25-30347)
on February 28, 2025, listing up to $50,000 in assets and up to $1
million in liabilities. Ronald Rothenbuhler, director and president
of RLR, signed the petition.
Judge Mary Ann Whipple oversees the case.
Eric Neuman, Esq., at Diller and Rice, LLC, represents the Debtor
as legal counsel.
ROCKIES EXPRESS: S&P Rates New Senior Unsecured Notes 'BB'
----------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating and '1'
recovery rating to Rockies Express Pipeline LLC's proposed senior
unsecured notes due 2033. The '1' recovery rating indicates its
expectation for very high (90%-100%: rounded estimate: 95%)
recovery in the event of a default.
The company will use the proceeds from this issuance to repay its
unsecured notes that mature in May 2025, repay amounts on its
revolving credit facility, and for general corporate purposes.
RVFW LLC: Seeks Chapter 11 Bankruptcy in Texas
----------------------------------------------
On March 3, 2025, RVFW LLC filed Chapter 11 protection in the U.S.
Bankruptcy Court for the Eastern District of Texas. According to
court filing, the Debtor reports between $10 million and $50
million in debt owed to 1 and 49 creditors. The petition states
funds will be available to unsecured creditors.
About RVFW LLC
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.
RVFW LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. E.D. Tex. Case No. 25-40609) on March 3, 2025. In its
petition, the Debtor reports estimated assets and liabilities
between $10 million and $50 million each.
The Debtor is represented by:
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
SABAL CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Sabal Construction Incorporated
6702 Benjamin Rd.
Suite 400
Tampa, FL 33634
Business Description: Sabal Construction Incorporated is a
veteran-owned and operated construction
company based in Tampa, Florida, established
in 2013. The Company specializes in luxury
custom waterfront homes and light commercial
projects.
Chapter 11 Petition Date: March 10, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-01450
Judge: Hon. Catherine Peek Mcewen
Debtor's Counsel: Jake C. Blanchard, Esq.
BLANCHARD LAW, P.A.
8221 49th Street N.
Pinellas Park, FL 33781
Tel: 727-531-7068
Email: jake@jakeblanchardlaw.com
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Galen Brent Hebert as president.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/QK5V2JY/Sabal_Construction_Incorporated__flmbke-25-01450__0001.0.pdf?mcid=tGE4TAMA
SAPOBLA INVESTMENTS: Seeks Chapter 11 Bankruptcy in Florida
-----------------------------------------------------------
On March 4, 2025, Sapobla Investments LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of
Florida. According to court filing, the Debtor reports between $1
million and $10 million in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
About Sapobla Investments LLC
Sapobla Investments LLC is an investment company based in San Juan,
Puerto Rico.
Sapobla Investments LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Fla. Case No. 25-00955) on March 4,
2025. In its petition, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $1 million and $10
million.
The Debtor is represented by:
Jesus Enrique Batista Sanchez, Esq.
THE BATISTA LAW GROUP, PSC
239 Ave Arterial Hostos Ste 206
San Juan PR 00918-1475
Tel: (787) 620-2856
Email: jeb@batistasanchez.com
SEABIRDS KITCHEN: Arturo Cisneros Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 16 appointed Arturo Cisneros as
Subchapter V trustee for Seabirds Kitchen, LLC.
Mr. Cisneros will be paid an hourly fee of $600 for his services as
Subchapter V trustee while the trustee administrator will be
compensated at $200 per hour. In addition, the Subchapter V trustee
will receive reimbursement for work-related expenses incurred.
Mr. Cisneros declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Arturo Cisneros
3403 Tenth Street, Suite 714
Riverside, CA 92501
Phone: (951) 682-9705/(951) 682-9707
Email: Arturo@mclaw.org
About Seabirds Kitchen
Seabirds Kitchen, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-10460) on
February 24, 2025, with $50,001 to $100,000 in assets and $500,001
to $1 million in liabilities.
Judge Scott C. Clarkson presides over the case.
Steven E. Cowen, Esq. at Se Cowen Law represents the Debtor as
legal counsel.
SHERWOOD HOSPITALITY: Seeks to Use Cash Collateral
--------------------------------------------------
Sherwood Hospitality Group, LLC and DVKOCR Tigard, LLC asked the
U.S. Bankruptcy Court for the District of Oregon for authority to
use cash collateral.
The companies need to use cash collateral to cover operational
costs such as payroll, insurance, taxes and utilities to keep the
hotels running, preserving the value of the estates.
Sherwood Hospitality owns a 60% interest in the Sherwood property
where a Hampton Inn & Suites is located, while DVKOCR owns 100% of
the Tigard property, also hosting a Hampton Inn & Suites. Both
properties are managed by Evergreen Hospitality Group for asset
management while day-to-day operations are handled by Resolution
Road Hospitality (RRH), a management company.
The companies have accounts at Wells Fargo subject to Deposit
Account Control Agreements (DACAs) in favor of secured creditors
L-O Sherwood Finance, LLC and L-O Tigard Finance, LLC.
L-O Sherwood and L-O Tigard have substantial equity cushions (28%
and 23%, respectively) and continuing liens in post-petition
property.
Sherwood Hospitality is under contract to sell the Sherwood
property and hotel for $15.5 million in May 2025, which is expected
to satisfy the claim of L-O Sherwood and provide additional funds
for creditors.
The companies proposed to provide protection through these equity
cushions and by granting additional or replacement liens as
permitted under the Bankruptcy Code. They also plan to allow L-O
Sherwood and L-O Tigard to retain control over the cash collateral,
ensuring transparency and oversight.
A court hearing is set for March 20.
About Sherwood Hospitality Group
Sherwood Hospitality Group, LLC is a real estate holding company in
Sherwood, Ore.
Sherwood and its affiliate, DVKOCR Tigard, LLC, filed Chapter 11
petitions (Bankr. D. Ore. Lead Case No. 25-30484) on February 17,
2025. Alkesh R. Patel, manager, signed the petitions.
At the time of the filing, Sherwood reported between $1 million and
$10 million in assets and between $10 million and $50 million in
liabilities while DVKOCR reported between $10 million and $50
million in both assets and liabilities.
Judge Peter C. McKittrick oversees the cases.
Douglas R. Ricks, Esq., at Sussman Shank LLP, represents the
Debtors as legal counsel.
SHIELDCOAT TECHNOLOGIES: Case Summary & 20 Top Unsecured Creditors
------------------------------------------------------------------
Debtor: Shieldcoat Technologies, Inc.
Cybershield of Texas
308 Ellen Trout Dr
Lufkin, TX 75904-1356
Business Description: Shieldcoat Technologies, dba Cybershield,
specializes in metallized plastic solutions,
offering services such as EMI/RFI shielding,
ESD control, chrome plating, and military
specification (Mil-Spec) coatings, including
CARC coatings. The Company provides
electroless and electroplating services,
conductive paint applications, and FIP
gaskets for various industries, including
consumer electronics, telecommunications,
industrial equipment, medical devices, and
military/aerospace sectors. Additionally,
Cybershield offers value-added services such
as injection molding, mechanical assembly,
and other manufacturing support to
streamline production and improve supply
chain efficiency.
Chapter 11 Petition Date: March 7, 2025
Court: United States Bankruptcy Court
Eastern District of Texas
Case No.: 25-90067
Judge: Hon. Joshua P Searcy
Debtor's Counsel: Robert C Lane, Esq.
THE LANE LAW FIRM
6200 Savoy Dr Ste 1150
Houston TX 77036-3369
Tel: (713) 595-8200
E-mail: notifications@lanelaw.com
Total Assets: $824,621
Total Liabilities: $3,005,698
The petition was signed by Bobby J Marshal as CEO.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/TA3LGBA/Shieldcoat_Technologies_Inc__txebke-25-90067__0001.0.pdf?mcid=tGE4TAMA
SMITH MOUNTAIN: Unsecureds Will Get 75% of Claims over 3 Years
--------------------------------------------------------------
Smith Mountain Lake Coffee Shop, LLC, filed with the U.S.
Bankruptcy Court for the Western District of Virginia a Plan of
Reorganization dated February 24, 2025.
The Debtor was established in May 2019 with a primary location at
Bridgewater Plaza serving breakfast, lunch, pastries, and specialty
coffee and tea drinks.
In May 2020 it opened its location at Eastlake Community Church
serving only pastries and beverages. In December 2021 it opened the
location at Moneta Commons Food Lion. This location was never
profitable and in fact was a huge cash drain, so the Debtor closed
it in November 2024 as part of the Chapter 11 bankruptcy process.
The cash flow problems caused by this location pushed the Debtor to
keep getting loans and credit accounts just to stay afloat, however
it got to a point that getting P.O. Box 404 Roanoke, Virginia
24003-0404 540.343.9800 ATTORNEYS AND COUNSELORS AT LAW another
loan was not possible because of not being able to make the
payments on the existing one.
The Bridgewater Plaza location has proven to be profitable and
therefore the Debtor is striving to restructure in order to keep it
open. The Smith Mountain Lake area is seasonal, with late spring
through early fall being the busiest times, however, the Debtor has
established a local following that keeps it going in the off season
also. With the Food Lion location closed and as it gets closer to
spring, and the cash flow respite provided by the bankruptcy
filing, the Debtor is confident in being able to operate profitably
and to be able to fund this Plan.
The Debtor continues to operate its locations in Bridgewater Plaza
and Eastlake Community Church. Operations have been steady,
although cash flow was hindered by severe weather in January,
during which time the Debtor had to close for several days due to
power loss, and lost some inventory as it lost power to its
refrigerator/freezer.
Class 8 consists of General Unsecured Claims. As a result of a
review of its chapter 11 schedules and the claims that have been
filed in this case as of the claims bar date of February 4, 2025,
the Debtor estimates its general unsecured claims to be
approximately $185,000.00. On a semi-annual basis commencing July
1, 2025 and for a period of three years or the date that all class
8 claims are paid in full, whichever is sooner, and after paying
outstanding Class 1 claims, the Debtor will commit all of its
disposable income to Smith Mountain Lake Coffee House, LLC
Reorganization Fund.
From the Smith Mountain Lake Coffee House, LLC Reorganization Fund,
the Debtor will make the semi-annual pro-rata distributions to
General Unsecured Claims. The Debtor will fund its obligation to
the Smith Mountain Lake Coffee House, LLC Reorganization Fund with
seventy-five percent of its aggregate disposal income (the
remaining twenty-five percent to be used for unanticipated
expenses, capital expenditures, equipment repairs, etc.) within
thirty days from the end of each semi-annual period. The first
semi-annual period will be July 1, 2025-December 31, 2025, and the
first payment will be due on January 30, 2026. If the Debtor's
revenue and expenses projections are accurate, Class 8 creditors
can expect to receive over seventy-five percent of their claims.
Class 9 consists of Equity Interests. Equity interests of Kevin and
Sara Gray shall remain in place during the pendency of this case
and post confirmation. No distributions will be made towards equity
until such time as all the plan obligations to General Unsecured
Claims are paid in full. The Class 9 interest holders shall retain
their interest in the Debtor.
The Debtor will continue to operate its retail coffee shop at
Bridgewater Plaza and Eastlake Community Church. The Debtor will
pursue avoidable preferences and other avoidance actions as it
deems appropriate.
A full-text copy of the Plan of Reorganization dated February 24,
2025 is available at https://urlcurt.com/u?l=I9i9PE from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Andrew S. Goldstein, Esq.
Magee Goldstein Lasky & Sayers, P.C.
P.O. Box 404
Roanoke, VA 24003
Telephone: (540) 343-9800
Facsimile: (540) 343-9898
Email: agoldstein@mglspc.com
About Smith Mountain Lake Coffee Shop
Smith Mountain Lake Coffee Shop, LLC, sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Va. Case No.
24-70904) on Nov. 26, 2024, listing up to $50,000 in assets and up
to $1 million in liabilities.
Andrew S. Goldstein, Esq., at Magee Goldstein Lasky & Sayers, PC is
the Debtor's counsel.
SOLAR EXCLUSIVE: Nathan Smith Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 17 appointed Nathan Smith, Esq., as
Subchapter V trustee for Solar Exclusive, LLC.
Mr. Smith, a partner at Malcolm & Cisneros, will be paid an hourly
fee of $550 for his services as Subchapter V trustee and will be
reimbursed for work-related expenses incurred.
Mr. Smith declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Nathan F. Smith, Esq.
Malcolm & Cisneros
2112 Business Center Drive
Irvine, CA 92612
Phone: (949) 252-9400
Email: nathan@mclaw.org
About Solar Exclusive LLC
Solar Exclusive, LLC operates multiple domain-specific marketing
websites focused on home improvement sectors including solar, mold
removal, windows, turf, and kitchen and bath renovations.
Solar Exclusive sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-10950) on
February 21, 2025. In its petition, the Debtor reported between
$100,000 and $500,000 in assets and between $1 million and $10
million in liabilities.
Judge August B. Landis handles the case.
The Debtor is represented by:
Matthew C. Zirzow, Esq.
Larson & Zirzow, LLC
850 E Bonneville Avenue
Las Vegas, NV 89101
Phone: 702-382-1170
Fax: 702-382-1169
STARK ENERGY: Unsecured Creditors Will Get 1% of Claims in Plan
---------------------------------------------------------------
Stark Energy, Inc., submitted a Second Amended Plan of
Reorganization under Subchapter V dated February 24, 2025.
This chapter 11 plan of reorganization proposes to pay creditors of
the Debtor with all the projected disposable income of the Debtor
for a sixty-month period, with various secured creditors receiving
promissory notes at the close of that period that, in turn, provide
for continued payments to be made into the future.
The Plan has eight secured classes, one unsecured priority class,
one unsecured non-priority class, and one class for equity
interests. As required by the Bankruptcy Code, this Plan provides
for full payment of administrative claims.
The Debtor's cashflow projections confirm that the Debtor generates
sufficient cash flow to fund the payments due under the Plan. To
the extent that there is a shortfall, Robert Gene Fettig, the
equity holder, has committed to reducing his compensation to avoid
a default.
Class 9 consists of Allowed Unsecured Priority Claims. As noted in
Section 3.2(b), supra, there exist three creditors holding claims
for unpaid wages, totaling $6,078 in the aggregate. In full
satisfaction of these claims, the Debtor will pay the three Class 9
claimants within 14 days of the Effective Date as follows: (i)
Justin Bacon ($1,778 priority claim); (ii) Greg Moore ($3,000
priority claim), and (iii) Travis Vernon ($1,300 priority claim).
Class 9 is impaired and entitled to vote to accept or reject the
Plan.
Class 10 consists of Allowed General Unsecured Claims. As of the
date hereof, the Debtor estimates the total pool of allowed general
unsecured claims to be approximately $3,994,661.47. This estimated
amount includes the Gate City claim in the amount of $365,000,
which will be included within Class 10, subject to Gate City's
obligation to amend its claim upon sale of the vehicles and
equipment subject to its security interest.
In full satisfaction of all undisputed or allowed claims, each
Holder of a Class 10 claim shall receive its pro rata share of
$90,000.00 less projected professional fees over the length of this
Plan. Assuming $50,000 in professional fees, each Holder of a Class
10 claim shall receive its pro rata share of $40,000. Payments will
be in the amount delineated on Exhibit D. Professional fees shall
be paid in full before any Class 10 Claims are paid. See Section
3.4 of this Plan. While Exhibit D shows monthly payments to the
Class 10 claimants, the Debtor may, in its sole and absolute
discretion, make payments ahead in quarterly, semi-annual or annual
payments.
The percentage payment to each Class 10 creditor is reasonably
anticipated to be approximately 1% of their respective claim(s),
insofar as professional fees will be paid out of Class 10 before
monies are made available to general unsecured creditors. Insofar
as this case is still pending, and is amongst the more actively
contested of Subchapter V proceedings, it is difficult to
accurately estimate the final sum of professional fees that will be
incurred herein. Class 10 is impaired and entitled to vote to
accept or reject the Plan.
On the Effective Date, all the Debtor's respective rights, title,
and interest in and to all assets shall vest in the reorganized
Debtor, and in accordance with section 1141 of the Bankruptcy Code.
A full-text copy of the Second Amended Plan dated February 24, 2025
is available at https://urlcurt.com/u?l=OvQAwI from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Erik A. Ahlgren, Esq.
Ahlgren Law Office PLLC
220 W. Washington Ave, Ste 105
Fergus Falls, MN 56537
Tel: (218) 998-2775
Email: erik@ahlgrenlawoffice.net
Maurice B. VerStandig, Esq.
The Dakota Bankruptcy Firm
1630 1st Avenue N., Suite B PMB 24
Fargo, ND 58102
Telephone: (701) 394-3215
Email: mac@dakotabankruptcy.com
About Stark Energy
Stark Energy, Inc., filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D.N.D. Case No. 24-30168)
on April 23, 2024, listing up to $50,000 in assets and $1 million
to $10 million in liabilities. The petition was signed by Robert
Fettig as president.
Judge Shon Hastings presides over the case.
The Debtor tapped Erik A. Ahlgren, Esq. at Ahlgren Law Office,
PLLC, and Maurice B. VerStandig, Esq., at The Dakota Bankruptcy
Firm, as counsel.
SUNNOVA ENERGY: Shares Dip 71% After Going Concern Warning
----------------------------------------------------------
Mark Chediak and Will Wade of Bloomberg News reports that the
shares of Sunnova Energy International Inc. plummeted by up to 71%
after the solar company expressed serious doubts about its ability
to stay in business.
In a statement on Monday, March 3, 2025, the company revealed that
its cash flow is insufficient to meet financial obligations,
prompting it to suspend guidance and raising concerns about its
long-term viability.
About Sunnova Energy
Sunnova Energy International Inc. (NYSE: NOVA) is an
industry-leading adaptive energy services company focused on making
clean energy more accessible, reliable, and affordable for
homeowners and businesses. Through its adaptive energy platform,
Sunnova provides a better energy service at a better price to
deliver its mission of powering energy independence.
Founded in Houston, Texas in 2012, Sunnova started its journey to
create a better energy service at a better price. Driven by the
changing energy landscape, technology advancements, and demand for
a cleaner, more sustainable future, we are proud to help pioneer
the energy transition.
TEMADA INC: Unsecureds Will Get 10% of Claims over 60 Months
------------------------------------------------------------
Temada, Inc., filed with the U.S. Bankruptcy Court for the Southern
District of Florida a Plan of Reorganization under Subchapter V
dated February 24, 2025.
The Debtor is a Florida corporation formed on September 24, 1996.
Since that time the Debtor has operated as an auto body repair shop
under the name Rembrandt Auto Body with leased office and workspace
at 1900 NE 154th Street, Miami, FL 33162.
Due to the downturn in the economy caused by the COVID-19 pandemic
Debtor's revenues have decreased in recent years. Additionally, the
Debtor has been the victim of embezzlement by a former employee.
This Plan of Reorganization proposes to pay creditors of the Debtor
from cash flow from operations. The Debtor is also hoping to
recover funds from an adversary proceeding.
This Plan provides for three classes of secured claims; one class
of tax claims, one class of unsecured claims; and one class of
equity security holders. Unsecured creditors holding allowed claims
will receive distributions, which the proponent of this Plan has
valued at approximately 10 cents on the dollar. This Plan also
provides for the payment of administrative and priority claims. All
such claims will be paid on the effective date of this Plan with
respect to any such claim unless the claimant agrees otherwise.
Class 5 consists of General Unsecured Creditors. All unsecured
claims allowed under Section 502 of the Code will be paid 10% of
the allowed claim in 60 equal monthly payments with no interest
beginning 30 days after the effective date of the Plan, or the date
on which such claim is allowed by a final non appealable order.
The Debtor will also make a one-time payment to unsecured
creditors, pro rata, representing one-half of the net proceeds of
any successful avoidance actions or settlements. This Class is
impaired.
Class 6 consists of Equity Security Holders of the Debtor. The
shareholders of the Debtor shall retain their interests in the
Debtor property of the estate.
The payments required under the Plan will be made from the Debtor's
business operations.
A full-text copy of the Plan of Reorganization dated February 24,
2025 is available at https://urlcurt.com/u?l=XaQE9i from
PacerMonitor.com at no charge.
Attorney for the Debtor:
David W. Langley, Esq.
8551 W. Sunrise Boulevard, Suite 303
Plantation, FL 33322
Tel: (954) 356-0450
Fax: (954) 356-0451
Email: dave@flalawyer.com
About Temada Inc. d/b/a Rembrandt Auto Body
Temada Inc., doing business as Rembrant Auto Body, was founded in
2004. The company's line of business includes the retail sale of
computers, computer peripheral equipment, and software.
Temada Inc. sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-22472) on Nov.
26, 2024, with up to $50,000 in assets and up to $10 million in
liabilities. Linda Leali, Esq., at Linda M. Leali, P.A., serves as
Subchapter V trustee.
Judge Corali Lopez-Castro handles the case.
The Debtor is represented by David W. Langley, Esq.
TERRAFORM LABS: Judge Amends Crypto Claims to Prevent Bullying
--------------------------------------------------------------
Ben Zigterman of Law360 reports that on Monday, March 10, 2025, a
Delaware bankruptcy judge instructed the Chapter 11 plan
administrator for defunct cryptocurrency software developer
Terraform Labs to make slight changes to creditor claim filing
instructions related to its collapsed stablecoin, after concerns
were raised that the wording could intimidate claimants.
About Terraform Labs
Terraform Labs Pte. Ltd. -- https://www.terra.money -- is a startup
that created Terra, a blockchain protocol and payment platform used
for algorithmic stablecoins. It was co-founded by Do Kwon and
Daniel Shin in 2018 in Seoul, South Korea.
Terraform Labs introduced its first cryptocurrency token, TerraUSD,
in 2019. Investment firms like Arrington Capital, Coinbase
Ventures, Galaxy Digital, and Lightspeed Venture Partners helped
Terraform Labs raise more than $200 million.
The collapse of the stablecoins TerraUSD (UST) and Luna in May 2022
caused the temporary suspension of the Terra network, wiping out
over $45 billion in market capitalization in a single week.
Both of Terra Form Labs' founders have encountered legal problems
as a result of the devaluation of the company's currency. In
September 2022, South Korean prosecutors filed a warrant for Do
Kwon's arrest. He was also added to Interpol's Red Notice list,
which urges other law enforcement to find and detain him.
Terraform Labs Pte. Ltd. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-10070) on Jan. 22,
2024. In the petition filed by Chris Amani, as chief executive
officer, the Debtor estimated assets and liabilities between $100
million and $500 million each.
The Debtor is represented by Zachary I Shapiro, Esq., at Richards,
Layton & Finger, P.A.
TRAILER OWNER: Robert Handler Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 11 appointed Robert Handler of
Commercial Recovery Associates, LLC as Subchapter V trustee for The
Trailer Owner LLC.
Mr. Handler will be paid an hourly fee of $450 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Handler declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Robert P. Handler
Commercial Recovery Associates, LLC
205 West Wacker Drive, Suite 918
Chicago, IL 60606
Tel: (312) 845-5001 x221
Email: rhandler@com-rec.com
About The Trailer Owner
The Trailer Owner, LLC is a transportation company specializing in
the ownership and leasing of a diverse fleet of trucks and
trailers, including Freightliner, International, and Wabash models.
The Company provides equipment solutions for owner operators and
trucking companies, supporting efficient freight hauling and
logistics operations.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-02805) on February
25, 2025, with $902,074 in assets and $1,376,000 in liabilities.
Christian Puscas, president, signed the petition.
Judge Timothy A. Barnes presides over the case.
David Freydin, Esq. at the Law Offices of David Freydin represents
the Debtor as bankruptcy counsel.
TRANSITIONAL HOUSING: Michael Abelow Named Subchapter V Trustee
---------------------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Michael Abelow,
Esq., at Sherrard Roe Voigt & Harbison, PLC, as Subchapter V
trustee for Transitional Housing & Work Program of Davidson
County.
Mr. Abelow will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Abelow declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael G. Abelow, Esq.
Sherrard Roe Voigt & Harbison, PLC
150 3rd Ave. South, Suite 1100
Nashville TN 37201
Phone: (615) 742-4532
Email: mabelow@srvhlaw.com
About Transitional Housing & Work Program
of Davidson County
Transitional Housing & Work Program of Davidson County owns and
operates Venue 109, a versatile venue for events like weddings,
receptions, private parties, corporate & charity/fundraising,
accommodating 150-250 guests with catering, bar services, and
modern audio-visual setups. The venue supports the mission of the
THWP, a charitable institution, by providing a unique space that
helps fund its housing and workforce development services for
individuals in need.
Transitional Housing & Work Program of Davidson County sought
relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code
(Bankr. M.D. Tenn. Case No. 25-00743) on February 18, 2025. In its
petition, the Debtor reports total assets of $1,499,900 and total
liabilities of $901,587.
Judge Charles M. Walker handles the case.
The Debtor is represented by:
Keith D. Slocum, Esq.
Slocum Law
370 Mallory Station Road, Suite 504
Franklin, TN 37067
Tel: (615) 656-3344
Email: keith@keithslocum.com
U-TELCO UTILITIES: Mark Schlant Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 2 appointed Mark Schlant, Esq., at
Zdarsky, Sawicki & Agostinelli, LLP as Subchapter V trustee for U
Telco Utilities, Inc.
Mr. Schlant will be paid an hourly fee of $300 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Schlant declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark J. Schlant, Esq.
Zdarsky, Sawicki & Agostinelli, LLP
1600 Main Place Tower
350 Main St.
Buffalo, NY 14202
Phone: (716) 855-3200
Email: mschlant@zsalawfirm.com
About U-Telco Utilities Inc.
U-Telco Utilities Inc. specializes in the rental of commercial and
industrial machinery and equipment, including heavy construction
machinery such as dozers, excavators, and compact track loaders.
The Company provides a diverse range of equipment for construction
and mining operations, offering machinery for rent to support
grading, excavation, and material screening projects.
U-Telco Utilities Inc. sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 25-30126)
on February 25, 2025. In its petition, the Debtor reported total
assets of $544,250 and total liabilities of $1,184,527.
Judge Wendy A. Kinsella handles the case.
The Debtor is represented by:
Peter A. Orville, Esq.
Orville & McDonald Law, P.C.
30 Riverside Drive
Binghamton, NY 13905
Tel: 607-770-1007
Fax: 607-770-1110
UGI INT'L: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed UGI International, LLC's (UGII)
Long-Term Issuer Default Rating (IDR) and its senior unsecured debt
at 'BB+'. The Outlook is Stable. The Recovery Rating on the senior
unsecured debt is 'RR4'.
The affirmation reflects that the impact of the recently announced
USD221 million inter-group two-year loan to sister company AmeriGas
Partners, L.P. (AmeriGas, B+/Negative) is mitigated by UGII's
flexible dividend policy and expected overperformance over
FY24-FY25 (fiscal year end-September). Fitch expects its EBITDA
leverage to average 2.6x over FY25-FY27, which is commensurate with
its rating sensitivities.
UGII's ratings reflect its leading market position as a liquified
petroleum gas (LPG) distributor in Europe, and a business model
that is supported by customer and supplier diversification. Rating
constraints are limited organic growth potential, smaller scale
than investment-grade peers', and unfavorable long-term trends.
Key Rating Drivers
Strong Operating Performance: UGII's Fitch-defined EBITDA for FY24
of USD408 million exceeded its USD376 million forecast. This was
due to better-than-expected LPG unitary margin and lower operating
costs. The latter reflects UGII's near complete exit of the energy
marketing business, which had been weighing on profitability for
the last two years. Fitch expects volumes to be resilient in FY25,
due to colder temperatures, but margins should decrease, leading to
forecast EBITDA at just below USD360 million.
Neutral Related-Party Transaction: The intra-group loan extended to
AmeriGas does not have a material impact on UGII's credit profile.
Fitch views it as an exceptional form of indirect parent support to
AmeriGas, which should be viewed in conjunction with UGII's
flexible dividend policy. The excess liquidity on UGII's balance
sheet following the good FY24 results, together with forecast lower
dividends to UGI Corporation (UGI Corp), mitigates the negative
impact of the loan on UGII's financial metrics.
No Additional Support Expected: UGI Corp management has publicly
stated that the parent company would not provide additional equity
to AmeriGas and Fitch does not expect similar related-party
transactions to support future refinancings at AmeriGas. This
relies on the successful implementation of the operational
improvements in the US LPG business and is subject to market
conditions in the US. Similar transactions without mitigating
measures, such as lower distributions to the parent, could lead to
a negative rating action.
Adequate Leverage: Leverage decreased to 2.3x at FYE24 from 3.2x at
FYE23, due to the strong operating results. Fitch forecasts
leverage to average 2.6x over FY25-FY27, despite a strong operating
result forecast in FY25. This is due to the extension of the
inter-group loan to AmeriGas, together with normalising operating
results and cumulative dividend payments of around USD400 million
over FY25-FY27.
Structural Challenges Manageable: The LPG industry continues to
face secular negative trends related to the energy transition that
affect the business in the form of unfavourable legislation.
However, Fitch does not expect these to have a material impact on
UGII's business over the short-to-medium term. The affordability
and leaner infrastructure of LPG should protect the industry in the
short term. Over the long term, the introduction of renewable gases
could also be a mitigation for companies with strong market
positions.
Defensive Pricing Arrangements: Long-term margins have been stable
despite volume and pricing volatility, with higher margins in
retail offsetting tighter mark-ups for bulk customers. The
contracts of most UGII customers have pricing arrangements, under
which prices move in tandem with propane spot prices. Around 17% of
UGII's LPG volumes are derived from fixed-price contracts, for
which sold volumes are hedged with forward contracts. This
structure of the supply contract portfolio has been stable.
Standalone Approach: UGII's IDR reflects its Standalone Credit
Profile (SCP), due to 'Weak' legal, operational and strategic
incentives to support for its ultimate majority shareholder, UGI
Corp, in accordance with Fitch's Parent and Subsidiary Rating
Linkage Criteria. While UGII is one of the larger assets of UGI
Corp, UGII's senior unsecured bonds and loans are non-recourse to
the parent, with no guarantees or cross-default provisions.
Although UGII raises debt independently, the parent has supported
its funding.
Peer Analysis
UGII is well-positioned relative to its Fitch-rated peers such as
Vivo Energy Ltd. (BBB-/Stable) and Puma Energy Holdings Pte. Ltd
(BB/Stable). Vivo and Puma have more diversified businesses than
UGII, with integrated downstream and midstream operations. Puma is
more geographically diversified than UGII in emerging markets.
Fitch views the less volatile operating environment and stronger
governance environment in Europe (compared with emerging markets)
for UGII as a mitigating factor for Europe's weak demand trend.
UGII has strong pre-dividend cash generation, with
neutral-to-positive expected free cash flow (FCF) after dividends
and higher average EBITDA margins than most of its peers. This is
due to higher margins on retail propane and LPG sales (for home
heating and cooking as well as industrial use) than Puma and Vivo,
which are focused on highly competitive and low-margin retail motor
fuel sales. UGII has a stronger financial profile than Puma, while
Vivo has lower expected leverage than UGII. All three peers are
slightly less capital-intensive than UGII.
UGII is also better positioned than its sister company, AmeriGas
Partners, L.P. (AmeriGas, B+/Negative), which is also a large
propane retailer. However, AmeriGas operates in a highly fragmented
US market, with about a 15% market share. AmeriGas also has higher
Fitch-estimated leverage. Its margin benefits from its ability to
compete with small retail propane distributors in the US and to use
its large size to lower or eliminate overhead costs while
maintaining sales. AmeriGas has also become adept at managing
EBITDA and gross margins, even in an environment of contracting
sales and volatile propane prices.
Key Assumptions
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- LPG volumes decreasing towards 1.5 million tonnes to FY28
- Contributions from the energy marketing business to cease by
FY26
- Total EBITDA at around USD360 million in FY25, before decreasing
towards USD300 million to FY28
- Effective interest rate at around 4% for FY25-FY28
- Capex averaging USD92 million a year to FY28
- Cumulative dividends close to USD600 million between FY25 and
FY28
- Inter-group loan extended to AmeriGas repaid fully by FY26
- US dollar at EUR1.05 to FY28
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Weaker-than-Fitch-expected financial performance due to
structurally lower profit margins, or mostly debt-funded M&As,
resulting in EBITDA leverage persistently higher than 3.0x and
EBITDA interest coverage weakening towards 7.0x
- Consistently higher dividends than forecast
- Structurally negative FCF
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch currently does not anticipate an upgrade to the 'BBB'
category. Upside is limited by UGII's business profile as an LPG
distributor and lack of diversification towards other businesses
with more robust long-term prospects. However, a material
improvement of the business profile supported by increased scale
and diversification while maintaining solid market shares would be
positive for the credit profile.
Liquidity and Debt Structure
At end-2024, UGII's liquidity composed of USD130 million cash on
its balance sheet and over USD400 million available under its
revolving credit facility (RCF). As of end-February 2025, borrowing
capacity under the RCF has decreased by USD221 million, due to the
two-year inter-group loan extended to AmeriGas.
UGII's liquidity remains adequate, supported by consistently
positive FCF before distributions, a flexible dividend policy, and
potential support from the parent in periods of stress. This
compares with no significant debt maturities until FY28, excluding
RCF drawdowns.
Issuer Profile
UGII is an LPG distributor in 16 European countries that is heavily
weighted towards France and with leading market position in other
EU countries.
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
----------- ------ -------- -----
UGI International, LLC LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ Affirmed RR4 BB+
UMAPM HOLDING: Unsecureds Will Get 65% of Claims over 3 Years
-------------------------------------------------------------
UMAPM Holding Company, LLC, filed with the U.S. Bankruptcy Court
for the District of Minnesota a Chapter 11 Plan of Reorganization
dated February 24, 2025.
The company was established in 2000 and has grown from the
founder's garage to working out of a 25,000 square foot state-of
the-art facility with more than a dozen employees, several with
over 15 years' tenure.
UMA is a contract manufacturer of medical devices located in
Zimmerman, Minnesota. UMA provides prototyping and production
manufacturing services to over 30 active customers in the medical
device, medical instrumentation, and industrial instrumentation
industries. UMA specializes in precision machining of highly
complex components with tight tolerance requirements and leverages
advanced capabilities including Swiss turning, 5-axis machining and
wire EDM.
Facing financial distress, the Debtor entered into a forbearance
agreement with Choice Financial Group on September 3, 2024.
Subsequently, the Debtor fell behind on rent payments to its
landlord and an eviction hearing was scheduled for December 4,
2014.
In early November 2024, the Debtor negotiated a sale of the company
on a price that was acceptable to Choice. This sale fell through
because the landlord insisted that all lease arrears be cured
immediately upon the closing of the sale. The Debtor filed a
voluntary petition under Chapter 11 of Title 11 on November 26,
2024.
The Plan proposes to pay Allowed Administrative Claims and Priority
Tax Claims in accordance with Article III. Holders of Class 4
General Unsecured Claims will receive Pro Rata distributions, which
the Debtor has valued as approximately 65 cents on the dollar.
Holders of Interests shall retain their Interests in the Debtor.
The Plan Term is three years commencing on the Effective Date.
Class 3 consists of General Unsecured Claims (i) that are Allowed
in an amount equal to or less than $5,000.00 or (ii) in an amount
greater than $5,000.00, but which the Holder thereof elects on its
Ballot to be Allowed in an amount no greater than $5,000.00 and to
be treated as a Convenience Claim. As of the date of this Plan,
there are 41 Convenience Claims, with an aggregate Allowed amount
is $43,420.45.
Each Holder of a Convenience Claim shall receive, in full and final
satisfaction of such Claim, its Pro Rata share of Cash equal to
$30,000.00 on the later of (i) sixty days after the Effective Date;
or (ii) when such Claim, or any portion of such Claim, becomes due
and payable under the parties' contract or applicable law. Based on
the estimates in subsection b above, this is a distribution of
approximately 69%. Class 3 is impaired under the Plan.
Class 4 consists of Holders of General Unsecured Claims, including
the Allowed General Unsecured Claims of Choice.
On the Effective Date, each Holder of a General Unsecured Claim
shall receive, in full and final satisfaction of such Claim, Cash
in an amount equal to such Claim's Pro Rata share of Projected
Disposable Income in the aggregate amount of $1,839,000.00, which
should result in a recovery of approximately 65% of the Allowed
amount of a Holder's General Unsecured Claim, according to the
Financial Projections.
Commencing on the Effective Date and concluding no later than the
third anniversary of the Effective Date, the Debtor shall
distribute the Cash to each Holder in not more than twelve equal
installments and not less frequently semi-annually. Notwithstanding
the foregoing, a Holder may receive such other less favorable
treatment as may be agreed upon by such Holder and the Debtor.
In lieu of receiving the treatment provided in Class 4, any Holder
of a General Unsecured Claim may elect on its Ballot to have its
Claim treated as a Convenience Claim in Class 3 in an amount up to
$5,000.00. Class 4 is Impaired under the Plan and Holders of
General Unsecured Claims shall be entitled to vote to accept or
reject the Plan.
Class 5 consists of Holders of Interests in the Debtor. On the
Effective Date, each Holder shall retain their Interests in the
Debtor in the same number of Class A Units that existed on the
Petition Date.
The Debtor will satisfy Allowed Claims under the Plan with Cash in
its possession, custody, or control on the Effective Date, Cash
derived from its ongoing business operations, and Cash derived from
its Projected Disposable Income during the term of the Plan.
A full-text copy of the Plan of Reorganization dated February 24,
2025 is available at https://urlcurt.com/u?l=a2zqmL from
PacerMonitor.com at no charge.
About UMAPM Holding Company
UMAPM Holding Company, LLC is a contract manufacturer of medical
devices located in Zimmerman, Minnesota.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Minn. Case No. 24-43262) with $0 to
$50,000 in assets and $1,000,001 to $10 million in liabilities.
Judge Katherine A Constantine oversees the case.
The Debtor is represented by:
Karl J. Johnson, Esq.
Sapientia Law Group
Tel: 612-756-7155
Email:karlj@sapientialaw.com
- and -
Alexander J. Beeby, Esq.
Sapientia Law Group
Tel: 612-756-7100
Email: alexb@sapientialaw.com
UNITY MINES: Seeks Chapter 11 Bankruptcy in Pennsylvania
--------------------------------------------------------
On March 2, 2025, Unity Mines LLC filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Western District of
Pennsylvania. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will not be
available to unsecured creditors.
About Unity Mines LLC
Unity Mines LLC, located in Derry, Pennsylvania, is a mining
company with properties in Westmoreland County.
Unity Mines LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-20520) on March 2,
2025. In its petition, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Carlota M. Bohm handles the case.
The Debtor is represented by:
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
UROGEN PHARMA: Posts $126.9 Million Net Loss for 2024
-----------------------------------------------------
Urogen Pharma Ltd. filed its annual report on Form 20-F with the
Securities and Exchange Commission, reporting a net loss of $126.87
million on revenue of $90.40 million for the year ending Dec. 31,
2024. This marks an improvement compared to the previous year,
when the Company incurred a net loss of $102.24 million on revenue
of $82.71 million.
As of Dec. 31, 2024, the Company had $285.71 million in total
assets, $294.51 million in total liabilities, and a total
shareholders' deficit of $8.80 million.
As of Dec. 31, 2024, the Company had $241.7 million in cash and
cash equivalents and marketable securities. Cash in excess of
immediate requirements is invested in accordance with the Company's
investment policy, primarily with a view to liquidity and capital
preservation, and is held primarily in U.S. dollars.
Through Dec. 31, 2024, the Company funded its operations primarily
through public equity offerings, private placements of equity
securities and its funding arrangements with RTW and Pharmakon.
The Company has incurred losses since its inception and negative
cash flows from its operations, and as of Dec. 31, 2024 the Company
had an accumulated deficit of $806.2 million.
The company expects to continue incurring losses for the
foreseeable future. Its primary uses of capital are anticipated to
remain focused on commercialization activities, research and
development expenses, including third-party clinical research and
development services, laboratory and related supplies, clinical
costs such as manufacturing expenses, as well as legal, regulatory,
and general administrative costs, partially offset by revenue from
Jelmyto sales.
"Based on the Company's cash, cash equivalents and marketable
securities as of December 31, 2024, together with management's cash
flow projections, the Company believes that it has sufficient cash
and cash equivalents to fund its operations beyond one year from
the issuance of these consolidated financial statements. If the
Company is unable to obtain approval for UGN-102 and generate
sufficient cash inflows from the sale and distribution of UGN-102,
the Company may need to raise additional capital in the future or
reduce operating expenditures. There can be no assurances that the
Company will be able to secure such additional financing on terms
that are satisfactory to the Company, in an amount sufficient to
meet the Company's needs, or at all. In the event the Company is
not successful in obtaining sufficient funding, this could force
the Company to delay, limit, reduce or terminate the Company's
product development, commercialization efforts or other
operations," the Company mentioned in the report.
The complete text of the Form 20-F is available for free at:
https://www.sec.gov/Archives/edgar/data/1668243/000143774925006842/urgn20241231_10k.htm
About Urogen Pharma Ltd.
Urogen Pharma Ltd. (www.urogen.com), headquartered in Princeton,
NJ, is a biotechnology company dedicated to developing and
commercializing innovative solutions that treat urothelial and
specialty cancers. The Company has developed RTGel reverse-thermal
hydrogel, a proprietary sustained release, hydrogel-based
technology that has the potential to improve therapeutic profiles
of existing drugs. Its technology is designed to enable longer
exposure of the urinary tract tissue to medications, making local
therapy a potentially more effective treatment option. The
Company's approved product Jelmyto (mitomycin) for pyelocalyceal
solution, and its investigational candidates, UGN-102 (mitomycin)
for intravesical solution, UGN-103 (mitomycin) for intravesical
solution and UGN-104 (mitomycin) for pyelocalyceal solution, are
designed to ablate tumors by non-surgical means and to treat
several forms of non-muscle invasive urothelial cancer, including
low-grade upper tract urothelial cancer ("low-grade UTUC") in the
case of Jelmyto and UGN-104 and low-grade intermediate risk
non-muscle invasive bladder cancer ("low-grade intermediate risk
NMIBC") in the case of UGN-102 and UGN-103. In addition, the
Company's immuno-uro-oncology pipeline includes UGN-301
(zalifrelimab), an anti-CTLA-4 antibody, which the Company is
currently studying as both a monotherapy and combination therapy.
The Company has experienced consistent net losses over the past
several years, posting a loss of $109.78 million in 2022, $110.82
million in 2021, $124.48 million in 2020, and $105.15 million in
2019.
US 24 TRUCK: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: US 24 Truck and Trailer Repair Co.
11738 W US Hwy 24
Wolcott, IN 47995
Business Description: US 24 Truck and Trailer Repair Co. offers a
comprehensive range of services for trucks
and trailers, including mobile repair
services, tire and reefer repair, computer
diagnostics, electrical repairs, air
conditioning service, suspension and
hydraulics maintenance, brakes and air leak
fixes, engine repairs, and more.
Chapter 11 Petition Date: March 10, 2025
Court: United States Bankruptcy Court
Northern District of Indiana
Case No.: 25-40056
Debtor's Counsel: Weston E. Overturf, Esq.
KROGER, GARDIS & REGAS, LLP
111 Monument Circle, Suite 900
Indianapolis, IN 46204
Tel: 317-777-7443
Total Assets: $1,236,313
Total Liabilities: $90,033
The petition was signed by Grigore Canali as owner.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/J6ZHIKY/US_24_Truck_and_Trailer_Repair__innbke-25-40056__0001.0.pdf?mcid=tGE4TAMA
VALVOLINE INC: S&P Affirms 'BB' ICR on Acquisition of Breeze
------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' issuer credit rating and its
'B+' issue-level rating on Valvoline Inc.'s unsecured debt.
S&P said, "We lowered our issue-level rating on the company's
senior secured debt to 'BB' from 'BBB-', and revised our recovery
rating to '3' from '1'. This reflects the increase in secured
debt.
"Concurrently, we assigned our 'BB' rating and '3' recovery rating
to the company's proposed $650 million term loan B maturing in
2032.
"The stable outlook reflects our view expectation for good
performance and a financial policy that results in S&P Global
Ratings-adjusted leverage declining to the mid-3x area by the end
of fiscal 2026.
"We expect Valvoline to prioritize returning leverage to its public
target range of 2.5x-3.5x following its planned debt-funded
acquisition of Breeze Autocare. The acquisition of Breeze, an
operator of automotive quick lube and other maintenance services,
will add about 200 stores to Valvoline's existing 2,045 store base
and enhance its market presence across 17 states. Although we
project S&P Global Ratings-adjusted leverage rising to 4.7x in
fiscal 2025 (4.4x on a pro forma basis), we forecast leverage
returning to below 4x in fiscal 2026. Valvoline has committed to
pausing share repurchases while leverage is above its
company-defined target range of 2.5x-3.5x, prioritizing cash
generation for debt repayment ahead of shareholder returns. A
deviation from this policy or additional material leveraging
transactions while S&P Global Ratings-adjusted leverage is above 4x
could lead to ratings pressure.
"We expect continued performance improvements over the next two
years, including sales and EBITDA expansion. Our projections assume
9% sales growth in fiscal 2025, driven by pricing strategies and
increased customer traffic, along with the integration of Breeze
Autocare into Valvoline's operations. For the first fiscal quarter
ended Dec.31, 2024, Valvoline's sales grew 11%, with comparable
store sales increasing 8% on a balanced mix of average ticket and
transactions. We believe the company's operating model, which
offers convenient maintenance services and competitive pricing, is
leading to market share gains. At the same time, we expect higher
average ticket and increased transactions will support
mid-single-digit percent comparable store sales growth this year.
We also expect ancillary services like battery service sales and
air conditioning recharging will add to sales growth.
"Valvoline's ongoing efforts to improve operational efficiency will
reinforce good profitability. Valvoline's trailing-12-month S&P
Global Ratings-adjusted EBITDA margin improved 130 basis points
(bps) year over year to 30.1% as of Dec. 30, 2024, reflecting
top-line growth and higher gross margin from better labor
efficiency and lower product costs. We forecast EBITDA margin will
contract to 28.4% in 2025 as growing scale benefits are offset by
investments in marketing and technology as well as the impact of
acquisition-related and integration expenses. Additionally,
Valvoline's recent refranchising transactions will hinder EBITDA
growth this year, but we expect a growing franchise mix will
support margin expansion over time. We expect EBITDA margin will
improve to around 31% in fiscal 2026, supported by a focus on
enhancing operating and labor efficiency. In our view, Valvoline's
operational model, which emphasizes customer convenience and
competitive pricing, will support margin improvements and market
share gains.
"We expect a reported free operating cash flow (FOCF) deficit this
year, turning positive next year. Higher capital expenditures
(capex) this year will constrain Valvoline's FOCF generation. We
expect the company will spend around $320 million in 2025, up from
the company's previous plans to spend $230 million-$250 million,
and up compared to $224 million in fiscal 2024. The increase
reflects ongoing investments in technology and operating efficiency
initiatives, existing store enhancements, store expansion, and the
integration of Breeze Autocare into its platform. At the same time,
we expect FOCF of more than $140 million in 2026 because of
improved profitability and lower capex, estimated at $275 million.
We anticipate that Valvoline will prioritize expansion investments
while managing cash flow, ensuring that it can effectively navigate
the near-term increase in leverage from the acquisition. Our
projections do not assume potential proceeds from refranchising
sales of either legacy Valvoline stores or Breeze locations. At the
same time, we believe it would use any refranchising proceeds to
repay debt while leverage is above the company's target range. We
expect Valvoline to maintain adequate liquidity supported by
availability under its $475 million revolver.
"The stable outlook reflects our expectation that Valvoline's good
strategic execution, history of consistent performance and
financial policy will lead to earnings growth that supports S&P
Global Ratings-adjusted leverage returning to under 4x over the
next 12 to 18 months."
S&P could lower the ratings on Valvoline if:
-- Operating performance falls short of our expectations,
including weaker sales, profitability and cash flow, leading S&P
Global Ratings-adjusted leverage to be sustained above 4x;
-- The company demonstrates a more aggressive financial policy,
including additional large debt-funded acquisitions or resuming
share repurchases while leverage is elevated; or
-- Poor integration of Breeze or other execution issues, resulting
in sales and profitability below S&P's expectations.
While unlikely over the next 12-months, S&P could raise its rating
if:
-- The company significantly expands its geographic footprint in
the U.S. and Canada faster than S&P's expectations leading to
higher EBITDA and FOCF generation; and
-- Valvoline sustains S&P Global Ratings-adjusted leverage under
3x.
VIAVI SOLUTIONS: Fitch Puts 'BB-' LongTerm IDR on Watch Negative
----------------------------------------------------------------
Fitch Ratings has placed Viavi Solutions Inc.'s (Viavi) 'BB-'
Long-Term Issuer Default Rating (IDR) and 'BB-' with a Recovery
Rating of 'RR4' senior unsecured debt ratings on Rating Watch
Negative (RWN) following the proposed acquisition of Spirent
Communications plc's high-speed ethernet and network security
testing business.
The RWN reflects the deal's shareholder-friendly funding structure,
resulting in pro forma EBITDA leverage exceeding its 4.5x negative
sensitivity. It also reflects the potential for more opportunistic
financial policies supporting acquisitions and capital returns.
Fitch expects to resolve the RWN once there is clarity on deal
synergies and the company's deleveraging road map.
Key Rating Drivers
More Opportunistic Financial Policies: Viavi's financial policies
are likely to remain opportunistic. The Fitch-estimated EBITDA
leverage pro forma for the Spirent acquisition will be 4.7x for
fiscal 2026. Viavi plans to fund the $425 million all-cash
acquisition with $425 million of Term Loan B borrowings, with the
potential to upsize the amount. This deal follows Viavi's Jan. 2025
$150 million acquisition of Inertial Labs and incorporates its
expectation that the company will use FCF for stock buybacks.
Deal Strengthens Operating Profile: Spirent Communications plc's
high speed ethernet and network security business line will
strengthen Viavi's network and services enablement segment and
expand its addressable market, providing a path to accelerate
growth. The deal is accretive to operating margins over the
long-term, given that integration costs will offset Spirent's
higher gross margins in the near term.
On March 3, 2025, Viavi reached a definitive agreement to acquire a
carve-out of Spirent Communications plc from Keysight Technologies,
Inc. (BBB+/Stable) for $410 million, with an additional $15 million
contingent consideration at closing. The deal is contingent upon
Keysight receiving regulatory approval and closing its acquisition
of Spirent Communications plc. The company expects the deal to
close in the 2Q25.
Improving Operating Performance: Viavi's EBITDA margins will
improve due to higher revenue levels, an increasing mix of
higher-margin network and services enablement revenues, and the
realization of $25 million of annualized cost savings exiting
fiscal 2025, related to the June 2024 announced restructuring plan.
Fitch expects EBITDA margins to increase above 20% from mid-to-high
teens over the past few years. The company's low capital intensity
should translate to improved FCF margins in the low-to-mid teens
over the long term.
Strong Existing Market Position: Fitch expects Viavi to participate
in solid market growth and outgrow the market, retaining its top
five leadership position in test and measurement across various
sectors, including wireline, wireless, aerospace and defense, and
anti-counterfeiting pigments, as well as 3D sensing optical filters
for mobile phones.
Diversified Business Lines: Fitch expects Viavi to maintain its
diversified business lines, supporting revenue visibility and
stable revenue and profitability growth. About 70% of its revenue
comes from Network and Service Enablement, including test and
measurement, and network optimization, while 30% is from Optical
Security and Performance Products. These uncorrelated subsectors
provide diversification benefits. The anti-counterfeiting business,
for instance, benefits from stimulus-driven bank note growth within
weak economic environments.
Technology Supports Demand: Viavi benefits from its exposure to
development and field deployment of wireless and wireline
communication technologies, with the availability of ethernet
speeds of 800 gigabit per second and 1.6 terabit per second
supporting demand for module prototype and lab-test solutions.
Viavi has benefited from the transition to 5G wireless through
relationships with service providers, which drive demand growth as
networks are built out. The development of 6G supports deeper
engagement with key wireless equipment providers. The company's 3D
sensing offering has expanded and still has great potential.
Peer Analysis
Viavi competes with Keysight Technologies, Inc. (BBB+/Stable) in
its Network Enablement subsector. Keysight enjoys larger overall
revenue scale of over $5 billion which, pro forma for Keysight's
successful acquisition of Spirent, would increase towards $6
billion, compared with about $1.3 billion in annual revenues for
Viavi. Keysight's relative credit profile benefits from higher
operating EBITDA margins of over 30% compared with around 20% for
Viavi, as well as more conservative financial structure and
policies.
Coherent Corp. (BB/Stable) competes with Viavi in the optical
security and performance products subsector, which produces optical
filters used in 3D sensing. Coherent revenue scale is similar to
that of Keysight, with revenue over $5 billion. Except for Viavi's
lower 2023 and 2024 EBITDA margins, Coherent's EBITDA margins have
been historically close to Viavi's in the mid-20s. Viavi's more
opportunistic financial policies also result in a financial
structure that is weaker than that of Coherent.
TTM Technologies, Inc (BB/Stable), which manufactures printed
circuit boards, generates about $2.5 billion in sales, but has a
lower EBITDA margin structure than Viavi. EBITDA leverage for most
recent fiscal year end was just over 3.0x.
Key Assumptions
- Revenue growth in 2025 driven by the increased demand for higher
bandwidth through fiber buildout by data center and service
providers and the introduction of 1.6tbps products
- The $425 million Term Loan B-funded acquisition of Spirent's
high-speed ethernet and network security testing business,
contributes $180 million of revenue in 2026.
- EBITDA margins improve from the high teens in 2025 to the low-20%
through forecast period.
- The company refinances upcoming debt maturities.
- Annual FCF is allocated to tuck-in acquisitions and share
repurchases.
- Base interest rates applicable to the company's outstanding
variable-rate debt obligations reflects the SOFR forward curve
between 4.3% and 3.7%.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA leverage sustained above 4.5x;
- Negative FCF margins;
- Sustained below-market organic revenue growth.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA leverage sustained below 3.5x, along with a public
re-commitment to a target below that level;
- Sustained organic mid-single-digit growth;
- Evidence of a decrease in revenue and EBITDA margin volatility
Liquidity and Debt Structure
Viavi held $488 million in cash and cash equivalents, excluding
about $21.4 million of short-term investments and $3.4 million of
restricted cash, as of Dec. 28, 2024, although the company used
$150 million of cash to fund the acquisition of Intertial Labs in
Jan. 2025. The company had $153.5 million of availability under its
$300 million ABL RCF due Dec. 30, 2026. Positive FCF further
supports Viavi's liquidity through the rating horizon.
Its debt maturities are manageable, with its nearest $250 million
convertible note due in 2026.
Issuer Profile
Viavi is a provider of network test, monitoring and assurance
solutions, as well as optical solutions for hard currency
anti-counterfeiting pigments and 3D sensing.
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
----------- ------ -------- -----
Viavi Solutions Inc. LT IDR BB- Rating Watch On BB-
senior unsecured LT BB- Rating Watch On RR4 BB-
VIAVI SOLUTIONS: Moody's Puts 'Ba2' CFR on Review for Downgrade
---------------------------------------------------------------
Moody's Ratings placed Viavi Solutions Inc.'s (VIAVI) ratings,
including the Ba2 corporate family rating, Ba2-PD probability of
default rating, and the Ba2 senior unsecured rating, on review for
downgrade following the company's announced acquisition of Spirent
Communications plc's (Spirent) High-Speed Ethernet and Network
Security Business. VIAVI's SGL-1 speculative grade liquidity rating
remains unchanged. Previously, the outlook was stable.
The acquisition, which is expected to close during the second
quarter of calendar 2025, will be funded with $425 million in
committed bank debt. Viavi may also consider increasing the term
loan B on a "best efforts" basis. The acquisition is conditional on
regulatory approvals and is expected to close shortly after the
close of Keysight's acquisition of Spirent.
"The review for downgrade reflects VIAVI's willingness to make debt
funded acquisitions amid a still challenging operating
environment," says Justin Remsen, Moody's Ratings Vice President.
"Prolonged inventory digestion and modest service provider spending
has driven leverage near 8x (or about 5x adding back stock based
compensation) for the twelve months ending December 2024. While
Moody's anticipates an improvement in end market demand, the
additional debt from the acquisition will further increase leverage
and pressure the Ba2 rating," added Remsen.
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
The acquisition of Spirent's High-Speed Ethernet and Network
Security Business enhances VIAVI's Ethernet testing solutions,
advancing its software, hardware, and protocol knowledge across
network layers. This should strengthen VIAVI's market position in
the growing digital infrastructure sector.
However, the transaction is leveraging, with leverage expected to
be over 8x, from an already elevated level given the challenged
operating environment. As such, governance considerations are a key
driver of the rating action.
The Ba2 CFR reflects VIAVI's track record of free cash flow
generation, solid, though declining profitability and limited
capital intensity. VIAVI has a strong market position in certain
niche market segments, such as pigments used in anti-counterfeit
features in currency notes and optical filters used for 3D sensing
in smartphones. Moody's believes that the 3D sensing market
provides an important secular growth driver as 3D sensing becomes
more widely available across smartphones and other use cases.
VIAVI's revenue scale is small and the underlying businesses are
narrowly focused, which can lead to revenue volatility over time,
particularly since Viavi derives a large portion of revenue from
cyclical end markets. Revenues have been particularly volatile over
the past 18 months.
The review will focus on: (1) the strategic rationale of the
acquisition; (2) details on the integration plan and cost
synergies, including targeted areas, timing, and costs to achieve;
and (3) long term financial policies, including deleveraging plans
and capital allocation.
At the conclusion of the review, VIAVI's CFR could be downgraded by
one notch. Depending on the final capital structure, the Ba2 rating
on the senior unsecured note could be downgraded by two notches
given the proposed acquisition financing is senior in priority to
the unsecured note.
Viavi Solutions Inc., based in Chandler, Arizona, makes network
test, monitoring, and assurance instruments and software for
communications services providers, enterprises, network equipment
manufacturers, and the aerospace industry. VIAVI also makes
pigments used in currency notes to reduce counterfeiting risk and
makes optical filters primarily used in 3D sensing modules for
smartphones.
The principal methodology used in these ratings was Diversified
Technology published in February 2022.
VIRGINIA BEACH: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Virginia Beach Patios Inc.
d/b/a Virginia Beach Patios
d/b/a Richmond Patios
d/b/a Innovate
1253 Jensen Dr., Suite #100B
Virginia Beach, VA 23451
Business Description: Virginia Beach Patios is a family-owned
contractor specializing in designing and
building custom outdoor living spaces,
including custom pools, outdoor kitchens,
fire features, or artistic structures. The
Company is committed to delivering high-
quality craftsmanship and creating
functional, beautiful environments that
enhance the homeowner's outdoor experience.
With personalized service and innovative
designs, the Company transforms ordinary
yards into extraordinary outdoor retreats.
Chapter 11 Petition Date: March 7, 2025
Court: United States Bankruptcy Court
Eastern District of Virginia
Case No.: 25-70478
Debtor's Counsel: Carolyn Bedi, Esq.
BEDI LEGAL, P.C.
1305 Executive Blvd, Suite 110
Chesapeake, VA 23320
Tel: 757-222-5842
E-mail: carolyn@bedilegal.com
Total Assets: $186,926
Total Liabilities: $1,233,715
The petition was signed by Angela Marie Rose as president.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/ZBZ2QMQ/Virginia_Beach_Patios_Inc__vaebke-25-70478__0001.0.pdf?mcid=tGE4TAMA
VOBEV LLC: Creditors to Get Proceeds From Liquidation
-----------------------------------------------------
Vobev, LLC filed with the U.S. Bankruptcy Court for the District of
Utah a Combined Disclosure Statement and Chapter 11 Plan of
Liquidation dated February 25, 2025.
The Debtor is an innovator in the beverage industry, offering
integrated beverage can production, filling and warehouse capacity
in a single location, which is the first of its kind.
The Debtor's state-of-the art custom production and filling
facility came online in 2022, and now produces and fills tens of
millions of aluminum beverage cans per year for some of the most
well known beverage companies in the world. The Debtor also
provides beverage formulation and mixing services.
Beginning in early-June 2024, Houlihan began contacting potential
bidders regarding the debt sale, and has provided a detailed teaser
to 162 potential strategic and financial sponsor parties.
Unfortunately, after further discussions, those bidders either
withdrew their interest, were either unwilling or unable to advance
to binding documentation or were not willing to raise their bids to
value levels that were acceptable to the Debtor and the Prepetition
Lenders. As Houlihan engaged with potential third-party bidders,
they also engaged with the DIP Lenders to, through one or more
affiliates or newly formed affiliate entities, serve as the
stalking horse bidder for substantially all of the Debtor's
Assets.
On January 9, 2025, the Bankruptcy Court entered the Bidding
Procedures Order approving, inter alia, (i) procedures setting
forth the process by which the Debtor was authorized to conduct a
marketing and auction process for the sale of substantially all of
the Debtor's Assets, (ii) the Debtor's entry into the Stalking
Horse APA, and (iii) the scheduling a sale hearing to approve the
sale of the Debtor's Assets. Other than the Stalking Horse APA, the
Debtor did not receive any bids for its Assets. Accordingly,
pursuant to the Bidding Procedures Order, by notice dated January
24, 2025, the Stalking Horse APA was designated as the "Successful
Bid" pursuant to the Bidding Procedures Order.
The Debtor, the Committee and Ares resolved the Committee's
objections with respect the Sale Transaction and the Final DIP
Order and, on January 29, 2025, Ares, the Committee, and the Debtor
entered into the Committee Resolution Term Sheet. The Committee
Resolution Term Sheet also provides a path for a cost effective
resolution of the Chapter 11 Case pursuant to a consensual plan of
liquidation that would provide unsecured creditors the opportunity
for some recovery.
As a result of arms' length negotiations, the Debtor, Ares and the
Committee resolved their differences regarding numerous matters,
which resolutions are embodied in this Combined Disclosure
Statement and Plan and reflected in the provisions, among others,
implementing the Committee Resolution Term Sheet, including by
establishing the GUC Trust, providing funding to the GUC Trust, and
permitting the Committee to select the GUC Trustee (subject to the
reasonable consent of Ares). The Committee Resolution Term Sheet
also contemplates the assignment of Estate Causes of Action that
are resolved or released under the Plan to the GUC Trust (i.e., the
GUC Estate Causes of Action). The Committee supports the Plan.
Following closing of the Sale Transaction, the Debtor has no
remaining tangible Assets. The Debtor's other remaining Assets
consist primarily of limited cash, which is being used to fund the
wind-down and administration of the Chapter 11 Case, and the Estate
Causes of Action, certain of which (i.e., the GUC Estate Causes of
Action) are being transferred to the GUC Trust. Accordingly, if the
Plan is confirmed, the GUC Trust shall initially be funded by the
Initial GUC Trust Funding Amount. The GUC Trust Assets will be the
source of Distributions to Holders of Allowed Claims in Class 3 and
Class 4. No Distributions are expected to be made to Holders of
Claims in Class 5 or Interests in Class 6.
Class 4 consists of all General Unsecured Claims against the
Debtor. Except to the extent that a Holder of an Allowed General
Unsecured Claim has agreed to a less favorable treatment of such
Claim, and only to the extent that any such Allowed General
Unsecured Claim has not been paid by the Debtor prior to the
Effective Date, each Holder of an Allowed General Unsecured Claim
shall receive such Holder’s pro rata share of 50% of the
aggregate distributions made by the GUC Trust to Holders of Allowed
Claims that are GUC Trust Beneficiaries under the Trust Agreement.
Notwithstanding anything herein to the contrary, the Trust Loan
shall be paid in full in cash from any net recoveries by the GUC
Trust prior to any distribution to any Holder of an Allowed
Unsecured Claim from the GUC Trust. Class 4 is Impaired and
entitled to vote to accept or reject the Plan.
Class 6 consists of all Equity Interests in the Debtor. On the
Effective Date, all Equity Interests in the Debtor shall be
cancelled, released, and extinguished.
The Plan provides for the liquidation and distribution of all of
the Debtor's remaining assets. The Plan provides for the GUC Trust
to be funded initially by the Initial GUC Trust Funding Amount,
which the GUC Trustee may use to evaluate, investigate, and pursue
the GUC Estate Causes of Action pursuant to the Plan and GUC Trust
Agreement. Accordingly, the Debtor believes that all Plan
obligations will be satisfied without the need for further
reorganization of the Debtor.
The GUC Trust shall be established for the purpose of liquidating
the GUC Trust Assets, prosecuting the GUC Estate Causes of Action
transferred to the GUC Trust to maximize recoveries for the benefit
of the GUC Trust Beneficiaries, and making Distributions in
accordance with the Plan to the GUC Trust Beneficiaries, with no
objective to continue or engage in the conduct of a trade or
business in accordance with Treas. Reg. § 301.7701-4(d). The GUC
Trust is intended to qualify as a "grantor trust" for federal
income tax purposes and, to the extent permitted by applicable law,
for state and local income tax purposes, with the GUC Trust
Beneficiaries treated as grantors and owners of the trust.
A full-text copy of the Combined Disclosure Statement and
Liquidating Plan dated February 25, 2025 is available at
https://urlcurt.com/u?l=f6jOcF from Kroll Restructuring
Administration LLC, claims agent.
Counsel to the Debtor:
Michael R. Johnson, Esq.
Jeffrey W. Shields, Esq.
David H. Leigh, Esq.
Mel Jones-Cannon, Esq.
RAY QUINNEY & NEBEKER, P.C.
36 South State Street, 14th Floor
Salt Lake City, Utah 84111
Tel: (801) 532-1500
(801) 323-3363
Email: mjohnson@rqn.com
Email: jshields@rqn.com
Email: dleigh@rqn.com
Email: mjonescannon@rqn.com
-and-
Eric P. Schriesheim, Esq.
ROPES & GRAY LLP
191 North Wacker Drive
Chicago, Illinois 60606
Tel: (312) 845-1200
Fax: (312) 845-5500
Email: eric.schriesheim@ropesgray.com
- and -
Gregg M. Galardi, Esq.
ROPES & GRAY LLP
1211 Avenue of the Americas
New York, New York 10036
Tel: (212) 596-9000
Fax: (212) 596-9090
Email: gregg.galardi@ropesgray.com
About Vobev LLC
Vobev LLC, a Salt Lake City-based beverage can manufacturer, sought
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Utah
Case No. 24-26346) on Dec. 9, 2024. In its petition, the Debtor
disclosed between $500 million and $1 billion in both assets and
liabilities.
Bankruptcy Judge Joel T. Marker handles the case.
The Debtor tapped Ray Quinney & Nebeker PC as counsel, Houlihan
Lokey Capital, Inc. as investment banker, and FTI Consulting, Inc.
as financial advisor. Kroll Restructuring Administration LLC is
the Debtor's claims and noticing agent.
WAYFAIR LLC: S&P Assigns 'BB' Rating on New Senior Secured Notes
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating and '1'
recovery rating to Wayfair LLC's proposed senior secured notes due
2030. The company will use the net proceeds to pre-fund upcoming
maturities of its convertible unsecured notes due in October 2025
and August 2026.
S&P said, "The '1' recovery rating on the senior secured notes
indicates our expectation for very high recovery (90%-100%; rounded
estimate: 95%) in a default scenario. The proposed notes will rank
pari passu with the company's existing secured notes due 2029 and
revolving credit facility. The company's new five-year $500 million
senior secured revolver replaces its $600 million facility due
March 2026.
"Our 'B+' issuer credit rating and stable outlook on Wayfair
reflect our expectation for improving credit protection metrics due
to operational efficiency and cost reduction efforts in 2025. The
company continues to navigate a challenging sales environment for
the home furnishings category, offsetting soft revenue trends with
substantial expense reductions that are improving profitability,
free operating cash flow (FOCF) generation, and credit metrics. The
company expanded S&P Global Ratings-adjusted EBITDA margin 150
basis points (bps) to 4.9% in fiscal year 2024 despite revenue
declining 1.3%.
"While a large portion of products sold on Wayfair are sourced from
China, its marketplace model limits its direct exposure to tariffs
and we believe it will be able to manage margins effectively. We
expect sales growth will remain challenged in 2025 due to weakening
macroeconomic conditions that will continue to negatively impact
the housing market and discretionary spending. Still, we believe
Wayfair's leading e-commerce platform and growth initiatives will
continue to support relative market share growth. Additionally,
ongoing cost reduction initiatives will lead to better operational
efficiency. S&P Global Ratings-adjusted leverage improved roughly
two turns to 5.0x at fiscal year-end 2024, and we expect leverage
will reach the mid-4x area in 2025 through modest EBITDA growth. We
continue to assess liquidity as adequate, supported by the
company's $1.3 billion cash balance, availability under its undrawn
revolver, and our expectation for positive FOCF."
WHISKEY RANCH: 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 Whiskey Ranch Estates, LLC.
About Whiskey Ranch Estates
Whiskey Ranch Estates, LLC is a real estate development company
based in Bellevue, Wash.
On January 17, 2025, a group of creditors including Mi Tierra Real
Estate Investments, Inc., J&K Earthworks, Inc. and Triumph Asset
Management, LLC filed involuntary Chapter 11 petition against
Whiskey Ranch Estates (Bankr. E.D. Wash. Case No. 25-00095) on
January 17, 2025. The petition was filed pro se.
Judge Whitman L. Holt handles the case.
Whiskey Ranch Estates is represented by:
Benjamin A. Ellison, Esq.
Salish Sea Legal, PLLC
2212 Queen Anne Ave N., No. 719
Seattle, WA 98109
Tel: 206-257-9547
Email: salishsealegal@outlook.com
XCELERATOR BOATWORKS: To Sell Boat Business at Online Auction
-------------------------------------------------------------
John W. Taylor, the Chapter 7 trustee of Xcelerator Boatworks Inc.,
seeks approval from the U.S. Bankruptcy Court for the Western
District of North Carolina, Statesville Division, to sell personal
property, free and clear of liens, claims, encumbrances, and other
interests.
The Debtor is the owner of certain personal property located at 154
Commerce Boulevard, Statesville, North Carolina, including, but not
limited to, furniture, fixtures, equipment, tools, machinery,
supplies, and work in process, including at least three unfinished
boat builds.
The Trustee seeks to sell the Personal Property free and clear of
any and all liens, claims, encumbrances and other interests and
retains the services of Iron Horse Auction Co., Inc. as auctioneer
to conduct the public online auction.
The sale to be conducted online has the following conditions.
a. The auction will begin on April 10, 2025, at 8:00 a.m. and
will conclude on April 17, 2025 at 12:00 p.m., subject to extended
bidding whereby any bid on the Personal Property in the last five
minutes of the auction will automatically extend the auction until
there is a period of five minutes without any bidding activity.
b. William B. Lilly, Jr., of Iron Horse has offered to conduct
the online auction sale for a seller's commission of 15% of the
final auction price of the Personal Property and a Buyer's Premium
of 10% of the final auction sales price of the Personal Property.
c. The Auctioneer further requests reimbursement of advertising
campaign expenses not to exceed the sum of $2,500.00.
d. The Auctioneer further requests payment of a set-up fee in
the amount of $1,500.00.
All advertising, promotion, and advertising layout will be
conducted by Auction Promotions Unlimited, the in-house advertising
agency of Iron Horse Auction Co. Inc.
Christopher Savits and BCS Construction have claimed lien or
interest in the property.
All liens, claims, encumbrances and other interests will be
attached to the proceeds of the sale.
About Xcelerator Boatworks Inc.
Xcelerator Boatworks Inc., was incorporated in 2010 to build high
end, custom boats.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. W.D.N.C.
Case No. 24-50244) on July 2, 2024.
Judge Laura T. Beyer presides over the case.
The Debtor is represented by Cole Hayes as counsel.
XYZ HOME: To Sell Family Rental Houses to Lifestyles Realty
-----------------------------------------------------------
XYZ Home Buyers LLC and its affiliates, M3B SFR, LLC, M4B SFR LLC,
and B&H SFR, LLC, seek approval from the U.S. Bankruptcy Court for
the Middle District of Georgia, Columbus Division, to sell
Property, free and clear of liens or interests.
The Debtors collectively own a portfolio of 90 single-family rental
houses which they rent out to tenants and are located in Georgia,
Alabama, Texas, Missouri, and North Carolina.
The Debtors seek to sell certain real property each located in
Augusta, Georgia to a single purchaser free and clear of all liens,
claims, interests, and encumbrances.
The individual properties, secured liens, and related purchase
agreements are as follows:
A. 2028 Wharton Drive, Augusta, Georgia 30904 (B&H)
B&H seeks to sell a residential home and real property located at
2028 Wharton Drive, Augusta, Georgia 30904 (Wharton Drive Property)
to Lifestyles Realty Georgia, Inc., its successors and/ or assigns
for the purchase price of $135,000.00
The only outstanding lien on the Wharton Drive Property is held by
PS Funding, Inc. in the scheduled amount of $108,000.00.
B. 3635 Munich Drive, Augusta, Georgia 30906 (B&H)
B&H seeks to sell a residential home and real property located at
3635 Munich Drive, Augusta, Georgia 30906 (Munich Drive Property)
to Lifestyles Realty, its successors and/ or assigns, for the
purchase price of $141,000.00.
The only outstanding lien on the Munich Drive Property is held by
PS Funding in the scheduled amount of $112,000.00.
C. 2349 Henry Circle, Augusta, Georgia 30906 (M3B)
M3B seeks to sell a residential home and real property located at
2349 Henry Circle, Augusta, Georgia 30906 (Henry Circle Property)
to Lifestyles Realty, its successors and/ or assigns, for the
purchase price of $150,000.00.
The only outstanding lien on the Henry Circle Property is held by
Wilmington Savings Fund Society, FSB in the scheduled amount of
$136,500.00.
D. 1914 Rozella Road, Augusta, Georgia 30904 (M4B)
M4B seeks to sell a residential home and real property located at
1914 Rozella Road, Augusta, Georgia 30904 (Rozella Road Property)
to Lifestyles Realty, its successors and/ or assigns, for the
purchase price of $130,000.00.
The only outstanding lien on the Rozella Road Property is held by
Wilmington Savings in the scheduled amount of $132,800.00.
E. 3804 Murray Road, Augusta, Georgia 30907 (XYZ)
XYZ seeks to sell a residential home and real property located at
3804 Murray Road, Augusta, Georgia 30907 (Murray Road Property) to
Lifestyles Realty, its successors and/ or assigns, for the purchase
price of $142,000.00.
The only outstanding lien on the Murray Road Property is held by
Anchor Loans LP in the scheduled amount of $142,365.00.
The Debtors request to sell the Wharton Drive Property, the Munich
Drive Property, the Henry Circle Property, the Rozella Road
Property, and the Murray Road Property in accordance with their
respective purchase and sale agreements with Lifestyles Realty.
The Debtors assert that Lifestyles Realty, as the buyer, is a good
faith purchaser.
About XYZ Home Buyers LLC
XYZ Home Buyers, LLC manages multiple residential rental
properties.
XYZ Home Buyers filed Chapter 11 petition (Bankr. M.D. Ga. Case No.
25-40081) on February 7, 2025, listing up to $500,000 in both
assets and liabilities. James Bell, chief restructuring officer of
XYZ Home Buyers, signed the petition.
The Debtor is represented by Thomas McClendon, Esq., at Jones &
Walden, LLC.
Judge John T. Laney III presides over the case.
YOUNG MEN'S CHRISTIAN: Updates Redstone & Priority Non-Tax Claims
-----------------------------------------------------------------
Young Men's Christian Association of Metropolitan Huntsville,
Alabama, submitted an Amended Disclosure Statement describing
Amended Plan of Reorganization dated February 24, 2025.
The Debtor's Plan is one of reorganization. The primary objective
of the Debtor's Plan is to provide a means for the reorganization
of the Debtor's assets and liabilities, the adjustment of claims,
including causes of action, held by or in favor of the Debtor,
reconciling and fixing the claims asserted against the Debtor and
making payment to Allowed Claims in conformity with the
requirements of the Plan and the Bankruptcy Code.
On November 6, 2024, the Court entered its Order Approving (I) Sale
Process and Bid Procedures, (II) Scheduling an Auction, (III)
Granting Bid Protection, and (IV) Setting Final Hearing on Debtor's
Motion to Sell. On January 3, 2025, the Debtor sold the Property by
Auction to Shannon Provence, as the highest bidder, for $2,350,000.
On January 7, 2025, the Court entered its Order Approving Motion to
Sell the Property Provence.
On January 8, 2025, the Debtor closed on the sale of the Property
to Shannon Provence for the gross sales price of $2,350,000.00.
Also on January 8, 2025, an appeal of the sale by auction was filed
by Mr. Allen Davis who was an unsuccessful bidder at the auction.
As of closing, however, Mr. Davis had failed to obtain or request
to stay the sale of the Property pending appeal, and no stay has
been issued. The appeal is pending in the United States District
Court for the Northern District of Alabama Case No. 25-00054.
The Debtor intends to assume its Agreement, dated April 15, 2024
with JS Building Company for the ongoing renovations at Debtor's
Southeast Family YMCA facility through its Plan.
The Plan will be funded primarily the Net Operating Income of the
Debtor as well as from the sale proceeds from certain real
properties owned by the Debtor. The Plan provides for distributions
on account of secured claims and unsecured claims (including claims
arising from the rejection of leases or contracts), priority claims
and administrative claims, in priority of payment set forth under
the Bankruptcy Code.
Class 1 consists of the claim of Redstone and is impaired.
Prepetition, the Debtor owed Redstone certain obligations under two
existing loans ("Current Loans"): (1) a loan dated August 10, 2009
in an original principal amount of $19,360,00.00 ("Current Loan 1")
and (2) a loan dated October 3, 2019 in the original principal
amount of $1,800,000.00 ("Current Loan 2"). The Current Loans are
secured by certain real and personal property identified in the
applicable loan documents for the Current Loans, including without
limitation the Debtor's facilities located at 1000 Weatherly Road
Southeast, Huntsville, Alabama 35803 and 130 Park Square Lane
Madison, Alabama 35758. Based on significant but non-binding
discussions to date with Redstone, Debtor proposes to restructure
the Current Loans as part of a new loan ("New Loan").
Class 3 consists of Priority Non-Tax Claims. The only claim in this
class, which the Debtor is aware of is the claim of Uline which has
filed a priority non-tax claim in the amount of $3,844.62 under
Section 507(a)(2) of the Bankruptcy Code for good sold
pre-petition. This claim is impaired. The Debtor will pay, settle
and satisfy the Claim of Uline, and all other Allowed Non-Tax
Priority claims filed under Section 507(a)(4) of the Bankruptcy
Code or Section 507(a)(5) of the Bankruptcy Code, within 60 days of
the Effective Date of the Plan.
The primary sources for funding the Plan are the net operating
income that the Debtor expects to earn over the life of the Plan as
well as the sale proceeds from the sale of certain real and
personal properties.
A full-text copy of the Amended Disclosure Statement dated February
24, 2025 is available at https://urlcurt.com/u?l=NtrjAT from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Kevin D. Heard, Esq.
Angela S. Ary, Esq.
HEARD, ARY & DAURO, LLC
303 Williams Avenue, Suite 921
Huntsville, AL 35801
Phone: (256) 535-0817
Email: kheard@heardlaw.com
aary@heardlaw.com
About The Young Men's Christian Association
The Young Men's Christian Association of Metropolitan Huntsville,
Alabama is a non-profit organization that offers programs to
support the needs of a growing and diverse communities including
child care, health & fitness, teen programs and community
programs.
Young Men's Christian Association of Metropolitan Huntsville,
Alabama filed its voluntary petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Ala. Case No, 24-81638) on August
23, 2024, listing $10 million to $50 million in both assets and
liabilities. The petition was signed by Jeff Collen as interim
chief executive officer.
Judge Clifton R Jessup Jr. presides over the case.
Kevin D. Heard, Esq., at HEARD, ARY & DAURO, LLC, is the Debtor's
counsel.
ZOOZ POWER: Reports $10.99 Million Net Loss for 2024
----------------------------------------------------
Zooz Power Ltd. submitted its annual report on Form 20-F to the
Securities and Exchange Commission, showing a net loss of $10.99
million on revenue of $1.04 million for the year ending Dec. 31,
2024. This compares to a net loss of $11.76 million on revenue of
$764,000 for the year ending Dec. 31, 2023.
Jerusalem, Israel-based Kesselman & Kesselman, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated March 7, 2025, citing that the Company has net losses
and has generated negative cash flows from operating activities for
the years ended Dec. 31, 2024, 2023 and 2022. These conditions
create significant uncertainty regarding the Company's ability to
continue as a going concern.
As of Dec. 31, 2024, the Company had $12.84 million in total
assets, $6.12 million in total liabilities, and $6.72 million in
total equity.
The Company has historically financed its operations over the years
by raising funds from investors. On April 4, 2024, the Company
finalized a merger deal with a SPAC. The Company stated that,
since it has only recently started commercial sales of its products
and considering its expected cash usage, the cash balance as of
December 31, 2024, and as of the date the financial statements were
approved, is insufficient to continue operations for at least 12
months from the approval date.
"In order to continue the Company's operations, including research
and development and sales and marketing, the Company is looking to
secure financing from various sources, including additional
investment funding. There is no assurance that the Company will be
successful in obtaining the level of financing necessary to finance
its operation," the Company mentioned in the report.
Management Comments
"As the EV market continues to evolve, ZOOZ Power remains dedicated
to delivering innovative power-boosting and energy management
solutions that enhance the accessibility and efficiency of
ultra-fast charging stations worldwide. I am excited to lead ZOOZ
Power and focus on global expansion," said Erez Zimerman, ZOOZ
Power's CEO.
"With our unique flywheel-based power boosting technology and
recent deployments in key global markets, we are uniquely
positioned to grow our presence globally. We are currently scaling
operations in Germany and France and advancing partnerships with
leading charge point operators. These steps underscore our
commitment to enhance infrastructure efficiency and empower the EV
ecosystem. I look forward to our success in 2025 as we shape the
future of sustainable, high-performance charging solutions,"
concluded Erez Zimerman.
The full text of the Form 20-F is available for free at:
https://www.sec.gov/Archives/edgar/data/1992818/000149315225009478/form20-f.htm
About ZOOZ Power
Headquartered in St. Lod, Israel, ZOOZ is a provider of
flywheel-based power boosting and energy management solutions,
enabling the widespread deployment of ultra-fast charging
infrastructure for electric vehicles (EVs) while overcoming
existing grid limitations. ZOOZ pioneers its unique flywheel-based
power-boosting technology, enabling efficient utilization and power
management of a power-limited grid at an EV charging site. Its
Flywheel technology allows high-performance, reliable, and
cost-effective ultra-fast charging infrastructure. ZOOZ Power's
sustainable, power-boosting solutions are built with longevity and
the environment in mind, helping its customers and partners
accelerate the deployment of fast-charging infrastructure, thus
facilitating improved utilization rates, better efficiency, greater
flexibility, and faster revenues and profitability growth. ZOOZ is
publicly traded on NASDAQ and TASE under the ticker ZOOZ.
*********
Monday's edition of the TCR delivers a list of indicative prices
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