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250505.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, May 5, 2025, Vol. 29, No. 124 Headlines 11AM INDUSTRIES: Unsecureds to Split $24K over 36 Months 13007 YUKON AVENUE: Hires CBRE and SRS Real Estate as Brokers 23ANDME HOLDING: 1.3MM Users Seek Removal of Personal Data 23ANDME HOLDING: UK, Canadian Officials Raise Privacy Concerns 344 ROEBLING: Seeks Chapter 11 Bankruptcy in New York 564-566 KELTON: Matthew Brash Named Subchapter V Trustee 620 ARKELL DRIVE: Voluntary Chapter 11 Case Summary 8TH AVENUE: S&P Downgrades ICR to 'CCC-', Outlook Negative ADMI CORP: Moody's Affirms 'B3' CFR & Alters Outlook to Negative AFH AIR: Committee Seeks to Hire Province as Financial Advisor AFH AIR: Committee Seeks to Hire Small Herrin as Local Counsel AFH AIR: Committee Taps Pachulski Stang Ziehl & Jones as Counsel AHF PARENT: Moody's Downgrades CFR to B3, Outlook Remains Negative AIBOTICS INC: Reports $1.85 Million Net Loss in 2024 AMERICAN PEST: Seeks to Hire CAVA Law LLC as Bankruptcy Counsel ANALABS INC: Seeks to Extend Plan Exclusivity to July 1 ANGIE'S TRANSPORTATION: Court OKs Tractor Sale to Delta Logistics ANGIE’S TRANSPORTATION: 3 Tractors Sale to Delta Logistics OK'd ANNALEE DOLLS: Taps William S. Gannon PLLC as Bankruptcy Counsel APTIM CORP: Moody's Affirms 'B3' CFR & Alters Outlook to Negative ARCH PRODUCTION: Gets OK to Use Cash Collateral Until May 28 ARCHDIOCESE OF NEW ORLEANS: Directed to Respond to Chapter 11 Case ASCEND PERFORMANCE: Seeks to Tap Epiq as Claims and Noticing Agent ATLANTIC NATURAL: Seeks to Hire Fishman Haygood as Legal Counsel ATLANTIC NATURAL: Seeks to Hire Malcom M. Dienes as Accountant AVONDALE CAPITAL: Hires J&J Commercial as Real Estate Broker B.A.S.S. & M.: Seeks to Sell Real Estate at Auction BALKAN EXPRESS: Seeks Chapter 11 Bankruptcy in Texas BEC CAPITAL: Section 341(a) Meeting of Creditors on June 3 BELLEVUE HOSPITAL: Quality of Care Maintained, 1st PCO Report Says BENSON HILL: Seeks to Hire Ordinary Course Professionals BEYOND COSTUMES: Samuel Dawidowicz Named Subchapter V Trustee BLH TOPCO: Seeks to Hire Raines Feldman Littrell as Legal Counsel BRINKER INTERNATIONAL: S&P Upgrades ICR to 'BB+', Outlook Stable BUILD BAYTOWN: Unsecureds Will Get 100% of Claims over 5 Years BYLEGACY TEAM: Seeks to Hire Century 21 TK Realty as Broker CAREPOINT HEALTH: No Decline in Patient Care, 2nd PCO Report Says CARRUTH COMPLIANCE: Seeks to Tap Mullen Coughlin as Defense Counsel CASH MONEY: Seeks Subchapter V Bankruptcy in California CHASEN CONSTRUCTION: Trustee Hires Schlossberg Mastro as Counsel CITRUS360 LLC: Seeks to Tap Coldwell Banker Commercial as Broker CONSOLIDATED APPAREL: Seeks Subchapter V Bankruptcy in Florida CORBETT BUILDINGS: Seeks to Sell New York Property at Auction D&B RENTALS: Cameron McCord Named Subchapter V Trustee DANIMER SCIENTIFIC: Hires AlixPartners LLP as Financial Advisor DANIMER SCIENTIFIC: Seeks to Hire Ordinary Course Professionals DANIMER SCIENTIFIC: Seeks to Hire Stretto as Administrative Advisor DANIMER SCIENTIFIC: Seeks to Tap Vinson & Elkins LLP as Co-Counsel DANIMER SCIENTIFIC: Taps Livingstone Partners as Investment Banker DANIMER SCIENTIFIC: Taps Richards Layton & Finger as Co-Counsel DARE BIOSCIENCE: Nasdaq Grants Compliance Extension to Aug. 12 DC CHOPPERS: Section 341(a) Meeting of Creditors on May 20 DECO GROUP: Gets Final OK to Use Cash Collateral DESTINATIONS TO RECOVERY: No Patient Care Concern, PCO Report Says DOS POTRILLOS: To Sell Wilmington Property to Miguel Huerta DR. JOHN C. DRAGON: Gets Interim OK to Use Cash Collateral E.W. SCRIPPS: Refinances Revolver and 2026, 2028 Term Loans ELITE SCHOOL: Court Extends Cash Collateral Access to May 31 ESG CLEAN: Seeks Chapter 11 Bankruptcy in Massachusetts ESG-H2 LLC: Seeks Chapter 11 Bankruptcy in Massachusetts EVANS INVESTMENT: Seeks Subchapter V Bankruptcy in California F21 OPCO: Closes All 354 Leased Stores in the U.S. FIGUEROA TELEPHONE: Taps Hatillo Law Office as Legal Counsel FIRST CLASS: Gets Interim OK to Use Cash Collateral FLORES PEDIATRICS: Unsecureds to Get Share of Income for 36 Months FRANCIS TRUST: Hires Drum and Drum Real Estate as Broker FRANCIS TRUST: Seeks to Hire Molleur Law Office as Attorney FRANCO HAULING: Seeks to Tap O. Allan Fridman as Bankruptcy Counsel FRUGALITY INC: Seeks to Hire English Accounting as Accountant FXI HOLDINGS: S&P Downgrades ICR to 'CCC' on Liquidity Pressures GAMECHEST LLC: Gets Extension to Access Cash Collateral GAUCHO GROUP: Nasdaq Completes Delisting of Securities GLASS MANAGEMENT: Court Extends Cash Collateral Access to May 31 GLOBAL CONCESSIONS: Seeks to Tap B. Riley as Restructuring Advisor GLOBAL FIDELITY: Chapter 15 Case Summary GLOBAL PREMIER: Taps Wilshire Pacific Capital as Financial Advisor GRANT THORNTON: S&P Rates New $800MM First-Lien Term Loan 'B' HARMONY CAVE: Seeks Subchapter V Bankruptcy in Florida HBL SNF: No Resident Care Concerns, 14th PCO Report Says HEALTHCHANNELS INTERMEDIATE: S&P Withdraws 'CCC-' Long-Term ICR HEART 2 HEART: U.S. Trustee Appoints Deborah Fish as PCO HIGHRISE ELECTRICAL: Seeks to Sell 14 Vehicles HYPERSCALE DATA: Series G Preferred Stock Sales Reach $960K IM3NY LLC: Taps Sun Environmental to Provide Waste Removal Services IMMANUEL SOBRIETY: No Patient Care Concern, 10th PCO Report Says INFINITY GEAR: Seeks to Hire Hansen Tax Consulting as Accountant INVATECH PHARMA: Gets Extension to Access Cash Collateral J&L LANDSCAPE: Seeks Subchapter V Bankruptcy in Washington JEFFERSON CAPITAL: Moody's Rates New $400MM Unsecured Notes 'Ba3' JJ PFISTER: Case Summary & 10 Unsecured Creditors JM GROVE: Gets Final OK to Use Cash Collateral JOANN INC: Burlington Stores Buys Co.'s 45 Leased Locations KTRV LLC: Seeks Approval to Tap Morris James as Bankruptcy Counsel KTRV LLC: Seeks to Hire RK Consultants as Restructuring Advisor LAID RIGHT SITE: Seeks Subchapter V Bankruptcy in North Carolina LAND AND LAWN: Unsecureds to Get 42 Cents on Dollar in Plan LAS VEGAS 0ILPK: Seeks to Hire David J. Winterton as Legal Counsel LAVIE CARE: No Decline in Resident Care, 4th PCO Report Says LEGACY AT WILLOW: Fitch Affirms 'BB-' Issuer Default Rating LIFEPOINT HEALTH: Moody's Ups CFR to B2 & Alters Outlook to Stable LINDO HOLDINGS: Seeks to Use Cash Collateral LIVEONE INC: Preliminary FY25 Results Includes Revenues of $112M+ LOCAL EATERIES: Trustee Taps Crosslin CPAs as Accountant LUKITAS INC: Seeks Approval to Hire TNCPA as Accountant MAGIC CAR: Court OKs Deal to Use ReadyCap's Cash Collateral MARSH TOWN: Case Summary & Seven Unsecured Creditors MERIDIAN WEIGHT: Lender Seeks to Prohibit Cash Collateral Access MESEARCH MEDIA: Trustee Taps Bronder & Company as Accountant MI LIQUIDATION: Trustee Taps Womble Bond as Special Counsel MID-COLORADO INVESTMENT: Joli Lofstedt Named Subchapter V Trustee MORGUARD CORP: DBRS Confirms BB(high) Issuer Rating MOYVANE-ARABIAN PROPERTIES: Taps Derbes Law Firm as Legal Counsel MS FREIGHT: Seeks to Prohibit Cash Collateral Access MULBERRY GROUP: Seeks to Hire Schreeder Wheeler as Legal Counsel NANOVIBRONIX INC: Guarantees $360K Note Issued by ENvue NANOVIBRONIX INC: Regains Compliance with Nasdaq Equity Rule NAUTICA'S EDGE: Seeks Subchapter V Bankruptcy in Georgia NAZARETH LIMO: Unsecureds Will Get 17% of Claims in Plan NESTWELL LLC: Seeks Chapter 11 Bankruptcy in Connecticut NEW CHANCE: Seeks Chapter 11 Bankruptcy in California NLC PRODUCTS: Gets Interim OK to Use Cash Collateral NORTHERN MARIANA CPA: Fitch Affirms BB Rating on $9.6MM Rev. Bonds NORTHPOINT DEVELOPMENT: Gets Extension to Access Cash Collateral NOVA ACADEMY: S&P Lowers 2015 Revenue Refunding Bonds to 'B+' NOVA CONSTRUCTORS: Court Extends Cash Collateral Access to July 18 OMNIA PARTNERS: Moody's Alters Outlook on 'B2' CFR to Stable OUTLAW STEAKBURGERS: Gets Interim OK to Use Cash Collateral PENNYMAC FINANCIAL: S&P Rates Proposed Senior Unsecured Notes 'B+' PERATON CORP: S&P Alters Outlook to Negative, Affirms 'B-' ICR POPELINO'S TRANSPORTATION: Gets Final OK to Use Cash Collateral PORT LOUIS: Hires Renaissance Realty as Property Manager PR DIAMOND: Seeks Subchapter V Bankruptcy in Nevada PRIMERO SPINE: Gets Interim OK to Use Cash Collateral PROSPECT MEDICAL: No Patient Care Concern, 1st PCO Report Says PROSPECT MEDICAL: Taps Bartko Pavia as Special Litigation Counsel PUBLISHERS CLEARING: Seeks to Sell Publishing Asset in an Auction QSR STEEL: Court Extends Cash Collateral Access to July 31 RED RIVER: Brown Rudnick Seeks Compensation in Chapter 11 Case REDDIRT ROAD: Gets Interim OK to Use Cash Collateral REGIONS PROPERTY: Seeks to Hire Brian K. McMahon PA as Counsel RIC (AUSTIN) LLC: Plan Confirmation Hearing Set for August 26 ROMAN BUILDERS: Wins Final OK to Use Cash Collateral ROYAL INTERCO: Gets Court Approval for $10MM Chapter 11 Financing RYVYL INC: CFO Gets Salary Increase, Execs Awarded 1.3M RSAs RYVYL INC: Fails Nasdaq Equity Rule With $1.5-Mil. Deficit SABAL CONSTRUCTION: Gets Extension to Access Cash Collateral SABRE HOLDINGS: Moody's Alters Outlook on 'B3' CFR to Stable SANTA FE MARINA: Seeks Chapter 11 Bankruptcy in Florida SCHAFER FISHERIES: Court OKs Continued Use of Cash Collateral SCV GRAPHIC: Seeks Chapter 11 Bankruptcy in Georgia SHAHINAZ SOLIMAN: Gets Interim OK to Use Cash Collateral SHAHINAZ SOLIMAN: U.S. Trustee Appoints Robert Splawn as PCO SHIFT4 PAYMENTS: S&P Assigns 'BB-' ICR on Proposed Financing SHIFT4 PAYMENTS: S&P Rates Proposed Euro Unsecured Notes 'BB-' SHILLINGS' CANNERY: Gets Interim OK to Use Cash Collateral SIGNATURE YHM: Gets OK to Hire Golden Goodrich LLP as Counsel SKY RADIOLOGY: Voluntary Chapter 11 Case Summary SLEEP COUNTRY: S&P Retains 'BB-' Rating on Unsecured Debt SOLID FINANCIAL: Hires Rock Creek as Financial Advisor, Sales Agent SOLID FINANCIAL: Seeks to Hire Ordinary Course Professionals SOLID FINANCIAL: Taps Womble Bond Dickinson as Bankruptcy Counsel SPACE SHADOW: Court Rejects Appeal from Sale Order SUNNOVA ENERGY: Bondholders Postpone Default Action Until May SUNNOVA ENERGY: Forms Special Committee with Two New Directors SWEET TRUCKING: Hearing Today on Bid to Use Cash Collateral TALPHERA INC: Rosalind Entities Hold 9.9% Equity Stake TARGET HOSPITALITY: S&P Withdraws 'B' Issuer Credit Rating THERMOPRO INC: Gary Murphey Named Subchapter V Trustee TONA DEVELOPMENT: Case Summary & 11 Unsecured Creditors TOUCAN TOPCO: S&P Assigns 'B-' Issuer Credit Rating, Outlook Stable TRIPLETT FUNERAL: Court OKs Limited Use of Cash Collateral TWENTY EIGHT: Gets OK to Use Cash Collateral Until May 31 UNIVISION COMMUNICATIONS: Moody's Lowers CFR & Secured Notes to B2 VAN DER VALK: Seeks Subchapter V Bankruptcy in Florida VENUS CONCEPT: Orca Capital Holds 8% Equity Stake VIRIDOS INC: Hires Stretto as Claims and Noticing Agent WALKER AREA: Voluntary Chapter 11 Case Summary WELCH & WELCH: Seeks to Sell Farm Equipment WHIRLPOOL CORP: Moody's Assigns Ba1 CFR, Outlook Remains Negative WHIRLPOOL CORP: S&P Downgrades ICR to 'BB+', Outlook Stable WHITESTAR DISTRIBUTORS: Case Summary & Two Unsecured Creditors WILLIAM H. ZIEGENBALQ: Gets Interim OK to Use Cash Collateral WILSON CREEK: Committee Taps Huron Consulting as Financial Advisor WOODMAN INVESTMENT: Case Summary & Three Unsecured Creditors XHR LP: Moody's Affirms 'B1' CFR, Outlook Remains Stable YOUSSEF CORP: Unsecureds Will Get 1% of Claims in Subchapter V Plan ZDK COMPANY: Gets Interim OK to Use Cash Collateral ZENITH PROPERTY: Section 341(a) Meeting of Creditors on May 22 [] Bankruptcies, Layoffs Affect Several Sectors in April 2025 [] U.S. Bankruptcy Filings Increased 10% in the 1st Qtr. of 2025 [^] T&W Unveils Outstanding Young Restructuring Lawyers of 2025 ********* 11AM INDUSTRIES: Unsecureds to Split $24K over 36 Months -------------------------------------------------------- 11AM Industries LLC filed with the U.S. Bankruptcy Court for the Northern District of Ohio a Plan of Reorganization dated March 31, 2025. The Debtor is a small Ohio limited liability company formed in 2014 which operates by purchasing consumer goods at low prices through closeout or auction sales and reselling the items at a reasonable price. The Debtor's reliance on short-term and revolving debt became untenable as interest rates increased significantly over the past two years. In August 2024, the Debtor began selling goods on a consignment basis which allowed the Debtor to expand its offerings in-store and online and increase sales. Although the change in its business model showed promise, the Debtor was unable to meet its monthly debt service obligations in late 2024. Demands from creditors and the threat of interruption of its operations led to the filing of the present chapter 11 case. Over the life of the Plan, or until such time as Allowed Claims are paid in full, the Debtor will pay at least the projected disposable income as required by 1191(d) of the Bankruptcy Code, regardless of the Debtor's actual disposable income. The final Plan payment is expected to be paid on July 1, 2028. This Plan of Reorganization proposes to pay creditors of the Debtor from Debtor's projected disposable income. Class 2 consists of General Unsecured Claims. The Debtor shall pay General Unsecured claimants a total sum of $24,000, in equal quarterly payments over the course of thirty-six months, beginning October 1, 2025. Class 2 is Impaired by this Plan. The allowed unsecured claims total $611,144.98. Class 3 consists of Equity interest holders. Class 3 is unimpaired by this Plan. The holder of an equity interest in the Debtor shall retain their interest upon confirmation of the Plan. The Debtor shall make plan payments from ordinary income of the business. Upon the Effective Date of the Plan, or upon court approval, Debtor shall make payment in full of approved administrative expense claims, or pursuant to terms otherwise agreed to by professionals. Upon the Effective Date of the Plan, Debtor shall make payments on the unclassified priority tax claims in full, in cash. The Debtor shall make payments to Class 1 claimant SBA pursuant to the terms of its loan agreement in the monthly amount of $1,014.00, at the rate of 3.75%, as it comes due in the ordinary course of business. Debtor shall pay to the SBA the arrearage amount due upon the Effective Date of the Plan, estimated to be $6,084.00, monthly at the rate of one-twelfth of the arrearage amount each month, beginning July 1, 2025. The Debtor shall pay the holders of Class 3 claims the total sum of $24,000.00, pro rata, in equal quarterly installments for a period of thirty-six months, beginning October 1, 2025. A full-text copy of the Plan of Reorganization dated March 31, 2025 is available at https://urlcurt.com/u?l=0dWFmy from PacerMonitor.com at no charge. About 11AM Industries 11AM Industries LLC, operating under the trade names Zoogari Pets and Shop11AM, is a pet supply retailer based in Norton, Ohio. The company operates from its principal location at 4409 Cleveland-Massillon Road. 11AM Industries sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ohio Case No. 24-52038) on December 29, 2024, with $50,000 to $100,000 in assets and $500,000 to $1 million in liabilities. Frederic Schwieg, Esq., at Schwieg Law, serves as Subchapter V trustee. Judge Alan M. Koschik handles the case. The Debtor is represented by: Steven Heimberger, Esq. Roderick Linton Belfance, LLP 50 South Main Street, 10th Floor Akron, OH 44308 Phone: 330-434-3000 Fax: 330-434-9220 13007 YUKON AVENUE: Hires CBRE and SRS Real Estate as Brokers ------------------------------------------------------------- 13007 Yukon Avenue, Hawthorne, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Central District of California to employ CBRE, Inc. and SRS Real Estate Partners as real estate sales agenrs and brokers. The Debtors need brokers to market and sell their properties located at: (a) 13007 Yukon Avenue Hawthorne; (b) 13100 and 13130 Yukon Ave. Hawthorne; (c) 13040 Cerise Avenue, Hawthorne; and (d) 12536 Chadron Avenue, Hawthorne. CBRE has agreed to share its commissions with SRS Real Estate Partners as follows: The commission for the sale of the Cerise property is to be split evenly between CBRE and SRS, unless the Cerise property is sold as part of a transaction involving all the Properties, in which case SRS is to receive a flat fee of $150,000, to be deducted from the total commission due to CBRE. CBRE will also be reimbursed of $9,500 for marketing materials. Michael Longo, senior vice president at CBRE, and Garrett Colburn, president at SRS Real Estate Partners, disclosed in court filings that their firms are "disinterested persons" as the term is defined in Section 101(14) of the Bankruptcy Code. The firms can be reached through: Michael Longo CBRE Inc. 2221 Rosecrans Avenue, Suite 100 El Segundo, CA 90245 Telephone: (310) 363-4906 Email: Michael.longo@cbre.com - and - Garret Golburn SRS eal Estate Partners 610 Newport Center Drive, Ste. 1500 Newport Bach, CA 92660 Telephone: (949) 698-1120 About 13007 Yukon Avenue, Hawthorne LLC 13007 Yukon Avenue, Hawthorne LLC is a single asset real estate debtor, as defined in 11 U.S.C. Section 101(51B)). 13007 Yukon Avenue, Hawthorne LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10880) on February 3, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Honorable Bankruptcy Judge Barry Russell handles the case. Matthew Lesnick, Esq., at Lesnick Prince & Pappas LLP serves as the Debtor's counsel. 23ANDME HOLDING: 1.3MM Users Seek Removal of Personal Data ---------------------------------------------------------- Rick Archer of Law360 reports that at a creditors’ meeting on Friday, May 2, 2025, 23andMe executives revealed that over 1.3 million customers have requested account cancellations and deletion of their genetic data since the company filed for Chapter 11 bankruptcy. About 23andMe 23andMe is a genetics-led consumer healthcare and biotechnology company empowering a healthier future. Through its direct-to-consumer genetic testing, 23andMe offers personalized insights into ancestry, genetic traits, and health risks. The Company has developed a large database of genetic information from over 15 million customers, enabling it to provide health and carrier status reports and collaborate on genetic research for drug development. On the Web: http://www.23andme.com/ On March 23, 2025, 23andMe Holding Co. and 11 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. E.D. Mo. Lead Case No. 25-40976). The Company disclosed $277,422,000 in total assets against $214,702,000 in total liabilities as of Dec. 31, 2024. Paul, Weiss, Rifkind, Wharton & Garrison LLP; Morgan, Lewis & Bockius LLP; and Carmody MacDonald PC are serving as legal counsel to 23andMe and Alvarez & Marsal North America, LLC as restructuring advisor. Lewis Rice LLC, Moelis & Company LLC, and Goodwin Procter LLP are serving as special local counsel, investment banker, and legal advisor to the Special Committee of 23andMe's Board of Directors, respectively. Reevemark and Scale are serving as communications advisors to the Company. Kroll is the claims agent. 23ANDME HOLDING: UK, Canadian Officials Raise Privacy Concerns -------------------------------------------------------------- Steven Church of Bloomberg News reports that the privacy regulators in the UK and Canada have warned U.S. officials that they will investigate any potential violations of their respective privacy laws related to the planned sale of customer genetic data by the bankrupt DNA testing company 23andMe. In a joint letter to the U.S. Trustee, the UK Information Commissioner's Office and the Office of the Privacy Commissioner of Canada outlined their concerns over how personal data might be handled during the company's bankruptcy proceedings. The U.S. Trustee, which represents consumer interests in corporate bankruptcies on behalf of the Department of Justice, received the letter following 23andMe's March bankruptcy filing, which includes intentions to sell its genetic data assets, according to Bloomberg News. About 23andMe 23andMe is a genetics-led consumer healthcare and biotechnology company empowering a healthier future. Through its direct-to-consumer genetic testing, 23andMe offers personalized insights into ancestry, genetic traits, and health risks. The Company has developed a large database of genetic information from over 15 million customers, enabling it to provide health and carrier status reports and collaborate on genetic research for drug development. On the Web: http://www.23andme.com/ On March 23, 2025, 23andMe Holding Co. and 11 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. E.D. Mo. Lead Case No. 25-40976). The Company disclosed $277,422,000 in total assets against $214,702,000 in total liabilities as of Dec. 31, 2024. Paul, Weiss, Rifkind, Wharton & Garrison LLP; Morgan, Lewis & Bockius LLP; and Carmody MacDonald PC are serving as legal counsel to 23andMe and Alvarez & Marsal North America, LLC as restructuring advisor. Lewis Rice LLC, Moelis & Company LLC, and Goodwin Procter LLP are serving as special local counsel, investment banker, and legal advisor to the Special Committee of 23andMe's Board of Directors, respectively. Reevemark and Scale are serving as communications advisors to the Company. Kroll is the claims agent. 344 ROEBLING: Seeks Chapter 11 Bankruptcy in New York ----------------------------------------------------- On April 30, 2025, 344 Roebling 123 LLC 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 not be available to unsecured creditors. About 344 Roebling 123 LLC 344 Roebling 123 LLC is a real estate company engaged in activities such as property ownership, leasing, or management in Brooklyn, New York. 344 Roebling 123 LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y .Case No. 25-42114) on April 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Elizabeth S. Stong handles the case. The Debtor is represented by Joshua R. Bronstein, Esq. at JOSHUA R. BRONSTEIN & ASSOCIATES, PLLC. 564-566 KELTON: Matthew Brash Named Subchapter V Trustee -------------------------------------------------------- The U.S. Trustee for Region 11 appointed Matthew Brash of Newpoint Advisors Corporation as Subchapter V trustee for 564-566 Kelton Ave Industries, LLC. Mr. Brash will be paid an hourly fee of $415 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Brash declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Matthew Brash Newpoint Advisors Corporation 655 Deerfield Road, Suite 100-311 Deerfield, IL 60015 Tel: (847) 404-7845 About 564-566 Kelton Ave Industries 564-566 Kelton Ave Industries, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-05003) on March 31, 2025, with $100,001 to $500,000 in both assets and liabilities. Judge Michael B. Slade presides over the case. Michael G. Kelly, Esq., at Kelly & Bracey Law Offices represents the Debtor as bankruptcy counsel. 620 ARKELL DRIVE: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: 620 Arkell Drive House, LLC 4312 Woodman Avenue, Ste 250 Sherman Oaks, CA 91423 Business Description: 620 Arkell Drive House is a newly built 18,400-square-foot Class A contemporary estate located in Beverly Hills, California. The property, situated at 620 Arkell Drive, is currently on the market for $100 million, with Christie's Real Estate SoCal, The Beverly Hills Estates, and Nest Seekers International handling the listing. Chapter 11 Petition Date: May 2, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-10774 Judge: Hon. Martin R Barash Debtor's Counsel: Michael Jay Berger, Esq. LAW OFFICES OF MICHAEL JAY BERGER 9454 Wilshire Boulevard, 6th Floor Beverly Hills, CA 90212 Tel: (310) 271-6223 Fax: (310) 271-9805 E-mail: michael.berger@bankruptcypower.com Total Assets: $100,019,301 Total Liabilities: $27,894,361 The petition was signed by Eli Sasson as managing member. The Debtor has confirmed in the petition that there are no unsecured creditors. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/3BNX5YA/620_Arkell_Drive_House_LLC__cacbke-25-10774__0001.0.pdf?mcid=tGE4TAMA 8TH AVENUE: S&P Downgrades ICR to 'CCC-', Outlook Negative ---------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on U.S.-based private label food manufacturer 8th Avenue Food & Provisions Inc. (8th Avenue) to 'CCC-' from 'CCC'. At the same time, S&P lowered its issue-level ratings on the company's revolver and first-lien term loan to 'CCC-' from 'CCC'. The recovery ratings remain '3', indicating S&P's expectations of meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default. S&P also lowered its issue-level rating on the company's second-lien term loan to 'C' from 'CC'. The recovery rating remains '6', indicating its expectations of negligible (0%-10%; rounded estimate: 5%) recovery in the event of a payment default. The negative outlook reflects the possibility that S&P will lower its ratings if the company defaults or restructures its debt, or files for bankruptcy to address its maturities and unsustainable capital structure. S&P said, "The downgrade reflects our view that near-term liquidity risk could make a default unavoidable within the next few months absent a successful refinancing to address its looming maturities. As of Dec. 31, 2024, the company's liquidity position was about $77 million inclusive of $7 million cash on balance sheet and $70 million availability under its revolver. However, as part of 8th Avenue's February 2025 amendment to the credit agreement (which extended the revolver's maturity to June 30, 2025, from March 31, 2025), the commitment under the company's revolving facility was lowered to $65 million from $100 million, thereby reducing its total liquidity to about $42 million. To date, the company remains current on its obligations, including the $1.6 million amortization payments on the first-lien term loans payable quarterly and interest payments on the first- and second-lien term loans. However, we believe the company will continue to borrow under its revolver to fund some of its mandatory obligations, further pressuring liquidity. Given our expectations of ongoing cash burn, the company could exhaust its liquidity over the next few months, which could also lead to a payment default. "We believe that a refinancing of the company's debt facilities is highly challenged given our expectation for leverage above 15x, which includes $540 million of preferred stock in 2025 (about 10x excluding the preferred stock), continued negative free operating cash flow (FOCF), and EBITDA cash interest coverage of about 0.9x. Moreover, volatile market conditions, caused by severe uncertainties related to weak consumer environment, persistent inflation and tariffs, could further hinder the company's ability to complete a refinancing. If the company can refinance, the likely increase in interest expense due to higher borrowing costs in current market conditions would further strain cash flow and potentially compromise liquidity since our base case already assumes severely negative free operating cash flow in 2025 and thereafter. "We assess 8th Avenue's liquidity as weak given its onerous debt service requirements, tight covenant cushion, and looming debt maturities. In addition to its looming term loan maturity in October, 8th Avenue's capital structure remains unsustainable given its high annual debt service costs of around $110 million, low EBITDA cash interest coverage around 1x, and negative FOCF generation. We continue to assess the company's liquidity as weak because its liquidity sources are insufficient to cover its cash needs over the next 12 months. We do not believe the company would generate enough EBITDA to meet its obligations over the next six months, unless the term loan was refinanced with a significant reduction in debt service requirements, which we view as highly unlikely. We forecast 8th Avenue's total liquidity will drop to $10 million-$15 million after principal amortization, capital expenditure (capex), and working capital outflows over the next 30 days. The revolver's credit agreement has a minimum liquidity covenant set at $10 million that is tested quarterly. We forecast the company could violate the minimum liquidity covenant if it cannot improve its profitability and cash flow within the next two months. Moreover, if the company underperforms our forecast, it could burn through a greater amount of cash, increasing the risk of a payment default. "We believe operating headwinds will continue in 2025 and 8th Avenue's ability to return to revenue growth is uncertain. The company's topline and profit performance has been uneven over the past five years, attributable to distribution losses, weak demand, supply chain challenges, as well as the increased competition in the pasta and fruit and nut categories. The company launched turnaround plans a few years ago to streamline its procurement, manufacturing, logistics, and warehousing operations, expand into product category adjacencies and add new customers. However, sales volumes declined over the past two years, though its cost-reduction initiatives yielded some benefits." The company released first quarter financials for fiscal year 2025, which showed a 2% revenue decline compared to last year due to lower volumes. S&P Global Ratings-adjusted EBITDA margin in the first quarter declined to 8.7% from 9.2% during the prior year period due to lower volumes offset by improving manufacturing efficiencies and benefits from cost-savings initiatives. FOCF in the first quarter was negative $9.3 million due to lower profitability and higher working capital requirements. S&P expects the headwinds in the company's operating segments, particularly pasta, will continue in 2025 and pressure the company's topline and profit and forecast continued negative FOCF generation. S&P said, "Our rating on 8th Avenue does not include any uplift from its status as a majority-owned subsidiary of Post Holdings Inc., because we view the investment as nonstrategic. Post does not guarantee 8th Avenue's debt, and our base-case expectation has been that Post would not support it during times of stress. Nevertheless, we recognize the possibility that Post would consider contributing cash if 8th Avenue had an immediate liquidity need. Post has a holding-company operating model whereby it regularly buys and sells assets. We believe the company's owners have the financial wherewithal to support 8th Avenue's liquidity. "The negative outlook reflects the possibility that we could lower our ratings if the company does not address its upcoming maturities, including the revolver and first-lien term loan, or if Post does not provide needed liquidity leading to a payment default or the company engaging in a transaction that we view as tantamount to a default." S&P could lower its ratings on the company if: -- It undertakes a debt restructuring, including a distressed exchange or a bankruptcy filing; or -- The company is unable to meet its principal and/or interest payments. Although unlikely within the next 12 months, S&P could take a positive rating action if: -- The company can address its revolver maturity in June 2025 and term loan maturity in October 2025 in a manner we don't view as distressed and improves its liquidity; and -- S&P believes a restructuring is unlikely over the next 12 months, which most likely would be the result of utilizing proceeds from asset sales to repay debt or an unexpected turnaround in operations. ADMI CORP: Moody's Affirms 'B3' CFR & Alters Outlook to Negative ---------------------------------------------------------------- Moody's Ratings affirmed the ratings of ADMI Corp. (d/b/a "The Aspen Group", "TAG"), including the B3 Corporate Family Rating, B3-PD Probability of Default Rating, and the B3 rating on the existing backed senior secured first lien term loan B2 due 2027, B3 rating on backed senior secured first lien term loan B3 due 2027, B3 rating on backed senior secured first lien term loan B4 due 2027, B3 rating on backed senior secured first lien term loan B5 due 2027 and B3 rating on backed senior secured first lien revolving credit facility due 2028. At the same time, Moody's revised TAG's outlook to negative from stable. The revision of the outlook to negative reflects Moody's views that TAG's liquidity has weakened and the company will continue to rely on the revolving credit facility to fund its operations. While operational issues at the WellNow (urgent care) business segment have commenced to stabilize, the company's more economically sensitive segment ClearChoice is declining. Moody's expects leverage to remain elevated in the 7x range in the next 12-18 months. RATINGS RATIONALE TAG's B3 CFR reflects its high financial leverage at 7.0x as of 12/31/24, negative free cash flow, partially due to its moderately aggressive de novo growth strategy and increased reliance on revolving credit facility to finance its operations. The ratings are also constrained by ongoing business risk considerations such as decline of TAG's more economically sensitive ClearChoice business. The ratings are supported by the company's strong market position as the close second largest dental support organization (DSO) in the US, favorable industry dynamics, and geographic diversification. Moody's expects TAG's liquidity to be adequate over the next 12-18 months. Liquidity is supported by the company's cash balance of approximately $44 million as of December 31, 2024 and $242 million availability on its $450 million backed senior secured revolving credit facility and no near-term debt maturities. The company's free cash flow will remain negative in the next 12 to 18 months and the company will need to further increase borrowings on its revolver to finance its operations. The outlook is negative. Moody's expects TAG's financial leverage to remain elevated in the 7x range in the next 12-18 months. Moody's also expects the company to generate negative free cashflow and rely on the revolving credit facility to finance its operations. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if the company's liquidity and free cash flow trends worsen. The ratings could be downgraded if the company is unable to reduce leverage by earnings growth and profitability. Additionally, aggressive financial policies including a reacceleration in the pace of debt funded acquisitions could result in a downgrade. The ratings could be upgraded if TAG improves its liquidity, generating positive free cash flow on a sustained basis. Additionally, reducing Debt to EBITDA below 6 times on a sustained basis would also be viewed positively. TAG operations are comprised of over 1,399 offices in 46 states across four brands including Aspen Dental, ClearChoice, WellNow, and Lovet (noting WellNow is not a guarantor). TAG, through the Aspen Dental brand, provides business support services to its 1,108 affiliated dental offices, while ClearChoice serves a network of 103 affiliated dental implant centers. ClearChoice practices are the leading national provider of fixed full-arch dental implants and related treatments. TAG also supports the practices under the WellNow urgent care brand that has 165 locations and Lovet veterinary hospital brand that has 23 locations. TAG is privately-held, and majority owned by Ares Management, L.P. and Leonard Green & Partners, L.P., with the remaining 10% owned by American Securities, and 10% owned by management and dentists. LTM combined TAG net patient revenues as of December 31, 2024 including practice ownership program offices, WellNow and Lovet were approximately $4 billion. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. AFH AIR: Committee Seeks to Hire Province as Financial Advisor -------------------------------------------------------------- The committee of creditors holding unsecured claims appointed in the Chapter 11 cases of AFH Air Pros, LLC and its affiliates seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Province LLC as financial advisor. The firm will provide these services: (a) become familiar with and analyze the Debtors' budget, assets and liabilities, and overall financial condition; (b) review financial and operational information furnished by the Debtors; (c) monitor the sale process, interface with the Debtors' professionals, and advise the committee regarding the process; (d) scrutinize the economic terms of various agreements; (e) analyze the Debtors' proposed business plans and develop alternative scenarios, if necessary; (f) assess the Debtors' various pleadings and proposed treatment of unsecured creditor claims therefrom; (g) assist the committee's investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors and their affiliates; (h) analyze claims against the Debtors and non-Debtor affiliates; (i) assist and advise the committee and counsel regarding the identification and prosecution of estate claims; (j) assist and advise the committee in its review and analysis of, and negotiations with the Debtors and non-Debtor affiliates related to, intercompany transactions and claims; (k) prepare, or review as applicable, avoidance action and claim analyses; (l) assist the committee in reviewing the Debtors' financial reports; (m) advise the committee on the current state of these Chapter 11 cases; (n) prepare and update waterfall analyses and the components thereof for the committee to analyze potential claims recoveries under various scenarios; (o) advise the committee in negotiations with the Debtors and third parties as necessary; (p) if necessary, participate as a witness in hearings before the court with respect to matters upon which Province has provided advice; and (q) other activities as are approved by the committee, the its counsel, and as agreed to by Province. The firm's professionals will be paid at these hourly rates: Managing Directors and Partners $900 - $1,450 Vice Presidents, Directors, & Senior Directors $700 - $1,050 Analysts, Associates & Senior Associates $350 - $825 Paraprofessional / Admin $270 - $450 In addition, the firm will seek reimbursement for expenses incurred. Paul Navid, a partner at Province, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Paul Navid Province LLC 2360 Corporate Circle, Suite 340 Henderson, NE 89074 Telephone: (702) 685-5555 Email: pnavid@provincefirm.com About AFH Air Pros Founded in 2017 in Fort Lauderdale, Florida, Air Pros is a professional home services provider specializing in HVAC installation, repair, maintenance, and air quality solutions for residential and commercial clients. Air Pros also offer plumbing, electrical services, and home warranties at certain locations. Air Pros, which began with one vehicle and two employees, now operates over 600 vehicles, employs more than 700 people, and serves customers in eight states: Florida, Georgia, Alabama, Mississippi, Louisiana, Texas, Colorado, and Washington. AFH Air Pros, LLC, and 19 of its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga.) on March 16, 2025, listing estimated assets of $100 million to $500 million, and estimated liabilities of $100 million to $500 million. The petitions were signed by Andrew D.J. Hede as chief restructuring officer. Judge Paul Baisier presides over the cases. The Debtors tapped David B. Kurzweil, Esq. and Matthew A. Petrie, Esq., at Greenberg Traurig LLP, as bankruptcy counsel; Accordion Partners, LLC as financial advisor; and Jefferies, LLC as investment banker. Kurtzman Carson Consultants, LLC and DBA Verita Global serve as the Debtors' notice, claims and balloting agent and administrative advisor. On March 31, 2025, the Office of the United States Trustee appointed a committee of creditors holding unsecured claims. The committee tapped Pachulski Stang Ziehl & Jones LLP as bankruptcy counsel, Small Herrin LLP as local counsel, and Province LLC as financial advisor. AFH AIR: Committee Seeks to Hire Small Herrin as Local Counsel -------------------------------------------------------------- The committee of creditors holding unsecured claims appointed in the Chapter 11 cases of AFH Air Pros, LLC and its affiliates seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Small Herrin LLP as local counsel. The firm will provide these services: (a) provide the committee with legal advice with respect to the Chapter 11 cases; (b) prepare on behalf of the committee any necessary applications, motions, answers, orders, reports and other legal matters; (c) assist in examination of the Debtors' plan and underlying financial documentations; (d) evaluate and participate in any sale process to ensure such process proceeds in the most efficient manner to maximize recoveries to the unsecured creditors; (e) assist the committee in its investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtors; (f) attend meetings of the committee and meetings with the Debtors, and its attorneys and other professionals, and participate in negotiations with the Debtors and other parties, as requested by the committee; (g) take all necessary action to protect and preserve the interests of the committee; and (h) perform any and all other legal services for the committee which may be necessary herein. The firm's hourly rates are as follows: Gus Small, Attorney $600 Brent Herrin, Attorney $450 Anna Humnicky, Attorney $450 Benjamin Klehr, Attorney $450 Q. Andy Nguyen, Attorney $245 Paralegals & Law Clerk $100 - $210 Ms. Humnicky disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Anna M. Humnicky, Esq. Small Herrin, LLP 100 Galleria Parkway, Suite 350 Atlanta, GA 30339 Telephone: (770) 783-1800 Email: ahumnicky@smallherrin.com About AFH Air Pros Founded in 2017 in Fort Lauderdale, Florida, Air Pros is a professional home services provider specializing in HVAC installation, repair, maintenance, and air quality solutions for residential and commercial clients. Air Pros also offer plumbing, electrical services, and home warranties at certain locations. Air Pros, which began with one vehicle and two employees, now operates over 600 vehicles, employs more than 700 people, and serves customers in eight states: Florida, Georgia, Alabama, Mississippi, Louisiana, Texas, Colorado, and Washington. AFH Air Pros, LLC, and 19 of its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga.) on March 16, 2025, listing estimated assets of $100 million to $500 million, and estimated liabilities of $100 million to $500 million. The petitions were signed by Andrew D.J. Hede as chief restructuring officer. Judge Paul Baisier presides over the cases. The Debtors tapped David B. Kurzweil, Esq. and Matthew A. Petrie, Esq., at Greenberg Traurig LLP, as bankruptcy counsel; Accordion Partners, LLC as financial advisor; and Jefferies, LLC as investment banker. Kurtzman Carson Consultants, LLC and DBA Verita Global serve as the Debtors' notice, claims and balloting agent and administrative advisor. On March 31, 2025, the Office of the United States Trustee appointed a committee of creditors holding unsecured claims. The committee tapped Pachulski Stang Ziehl & Jones LLP as bankruptcy counsel, Small Herrin LLP as local counsel, and Province LLC as financial advisor. AFH AIR: Committee Taps Pachulski Stang Ziehl & Jones as Counsel ---------------------------------------------------------------- The committee of creditors holding unsecured claims appointed in the Chapter 11 cases of AFH Air Pros, LLC and its affiliates seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Pachulski Stang Ziehl & Jones LLP as counsel. The firm will render these services: (a) assist, advise, and represent the committee in its consultations with the Debtors regarding the administration of these Chapter 11 cases; (b) assist, advise, and represent the committee in analyzing the Debtors' assets and liabilities, investigate the extent and validity of liens, and participate in and review any proposed asset sales, asset dispositions, financing arrangements, and cash collateral stipulations or proceedings; (c) assist, advise, and represent the committee in any manner relevant to reviewing and determining the Debtors' rights and obligations under leases and other executory contracts; (d) assist, advise, and represent the committee in assessing the acts, conduct, assets, liabilities, and financial condition of the Debtors, their operations and the desirability of the continuance of any portion of those operations, and any other matters relevant to these cases or to the formulation of any plan; (e) assist, advise, and represent the committee in its participation in the negotiation, formulation, and drafting of a plan of liquidation or reorganization; (f) assist and advise the committee in communicating with unsecured creditors regarding significant matters in these Chapter 11 cases; (g) represent the committee at hearings and other proceedings; (h) review and analyze applications, orders, statements of operations, and schedules filed with the court and advise the committee regarding same; (i) assist the committee in preparing pleadings and applications as may be necessary in furtherance of its interests and objectives; (j) assist, advise, and represent the committee in the evaluation of claims and on any litigation matters; (k) prepare, on behalf of the committee, any pleadings in connection with any of the foregoing; and (l) provide such other services as may be required or requested or as may otherwise be deemed in the interests of the committee in accordance with its powers and duties as set forth in the Bankruptcy Code, Bankruptcy Rules, or other applicable law. The firm will be paid at these hourly rates: Partners $1,075 - $2,350 Of Counsel $1,050 - $1,850 Associates $725 - $1,225 Paraprofessionals $575 - $675 In addition, the firm will seek reimbursement for expenses incurred. Bradford Sandler, Esq., a partner at Pachulski Stang Ziehl & Jones, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Bradford Sandler, Esq. Pachulski Stang Ziehl & Jones LLP 1700 Broadway, 36th Floor New York, NY 10019 Telephone: (212) 561-7700 Facsimile: (212) 561-7777 Email: bsandler@pszjlaw.com About AFH Air Pros Founded in 2017 in Fort Lauderdale, Florida, Air Pros is a professional home services provider specializing in HVAC installation, repair, maintenance, and air quality solutions for residential and commercial clients. Air Pros also offer plumbing, electrical services, and home warranties at certain locations. Air Pros, which began with one vehicle and two employees, now operates over 600 vehicles, employs more than 700 people, and serves customers in eight states: Florida, Georgia, Alabama, Mississippi, Louisiana, Texas, Colorado, and Washington. AFH Air Pros, LLC, and 19 of its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga.) on March 16, 2025, listing estimated assets of $100 million to $500 million, and estimated liabilities of $100 million to $500 million. The petitions were signed by Andrew D.J. Hede as chief restructuring officer. Judge Paul Baisier presides over the cases. The Debtors tapped David B. Kurzweil, Esq. and Matthew A. Petrie, Esq., at Greenberg Traurig LLP, as bankruptcy counsel; Accordion Partners, LLC as financial advisor; and Jefferies, LLC as investment banker. Kurtzman Carson Consultants, LLC and DBA Verita Global serve as the Debtors' notice, claims and balloting agent and administrative advisor. On March 31, 2025, the Office of the United States Trustee appointed a committee of creditors holding unsecured claims. The committee tapped Pachulski Stang Ziehl & Jones LLP as bankruptcy counsel, Small Herrin LLP as local counsel, and Province LLC as financial advisor. AHF PARENT: Moody's Downgrades CFR to B3, Outlook Remains Negative ------------------------------------------------------------------ Moody's Ratings downgraded AHF Parent Holding, Inc.'s (AHF) ratings including its Corporate Family Rating to B3 from B2, Probability of Default Rating to B3-PD from B2-PD, and the rating on its senior secured first lien term loan facilities due 2028 to B3 from B2. The outlook remains negative. The ratings downgrade reflects AHF's high financial leverage and free cash flow deficits amid a challenging operating environment. Softer demand due to lower consumer discretionary spending particularly for large home improvement projects is pressuring volumes and profitability. In addition, sizable charges related to acquisitions and subsequent sale-leaseback transactions, restructuring and cost savings initiatives, and product launch expenses are also pressuring the company's profitability and cash flow generation. The proceeds from the sale-leaseback transactions helped fund the company's growth through acquisition strategy and free cash flow deficit since the 2022 leveraged buy-out transaction, but also meaningfully increased its operating lease liability. As a result, AHF's financial leverage is high with debt/EBITDA (all ratios Moody's-adjusted unless otherwise stated) at 7.6x as of fiscal year ending December 31, 2024. RATINGS RATIONALE AHF's B3 CFR broadly reflects its high leverage, weak free cash flow and exposure to cyclical discretionary consumer spending. AHF's credit profile also reflects its narrow product focus in the mature and discretionary hard surface flooring industry. The solid-wood category, which represents about a quarter of AHF's revenue, continues to experience gradual declines in market penetration, as luxury vinyl tile (LVT) products continue to gain share. The company is exposed to cyclical consumer discretionary spending, and inflationary pressures and higher borrowing costs are negatively impacting demand for the company's products. AHF's financial leverage is high with debt/EBITDA at 7.6x as of fiscal year-end 2024. Moody's projects that debt/EBITDA will remain high at around 6.0x over the next 12-18 months, reflecting the Moody's-adjusted EBITDA lapping the significant charges and the benefits from restructuring initiatives, offset by ongoing demand pressures. There is uncertainty around the company's ability to meaningfully improve its profitability and cash flow generation amid weaker consumer discretionary spending. The company has high geographic and customer concentration with sales primarily in North America and with its top 2 customers representing about a quarter of annual sales. The company's credit profile benefits from a good market position in the US hardwood flooring market, aided by its strong market leading position in the solid wood flooring (SWF) category, and #2 position in engineered wood flooring (EWF). The July 2022 acquisition of Armstrong Flooring Inc. (AFI) meaningfully expanded the company's products into non-wood categories, particularly into the faster growing luxury vinyl tile (LVT), and the October 2023 acquisition of Crossville added porcelain tile. In addition, these acquisitions diversified the company's end markets with sales in the commercial segment now representing just over a third of revenue. AHF's exposure to US tariffs is low given its large domestic manufacturing footprint, which is a competitive advantage versus industry competitors that rely on imports, and positions the company well to gain share particularly in the LVT product category. The company's differentiated brand portfolio with the ability to service distribution partners without channel conflict is also a competitive advantage. AHF's adequate liquidity is supported by its cash balance of $2 million and access to an undrawn $75 million revolving facility as of December 31, 2024, as well as the lack of meaningful debt maturities until the revolver expiration in 2027. The company's free cash flow deficits have been covered by sale-lease back proceeds and AHF would need to sustainably improve its free cash flow generation to reduce potential revolver reliance over the next 12 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The negative outlook reflects that risks to AHF's business remain high as Moody's anticipates pressures affecting discretionary consumer spending to persist through 2025. This creates risk that AHF's high financial leverage will remain elevated and create challenges for the company to meaningfully improve its profitability and cash flow generation. The ratings could be downgraded if AHF's revenue or EBITDA weakens, debt/EBITDA is sustained above 6.5x, EBITDA less capital spending/interest falls below 1.0x, or if free cash flow is weak or negative. The ratings could also be downgraded if liquidity deteriorates for any reason, including reliance on revolver borrowings, or if the company completes a debt-financed acquisition or shareholder distribution that increases leverage. The ratings could be upgraded if the company demonstrates a consistent track record of organic revenue growth alongside EBITDA margin expansion, sustains debt/EBITDA below 5.0x. The company would also need to maintain at least good liquidity with consistent good positive free cash flows, and Moody's expectations of balanced financial policies that support credit metrics at those levels. Headquartered in Mountville, PA, AHF Parent Holding, Inc. (AHF) manufactures and distributes hard surface flooring in North America to both residential and commercial end markets. The company's flooring product categories include solid wood flooring (SWF), engineered wood flooring (EWF), luxury vinyl tile (LVT), vinyl composite tile (VCT), stone polymer core (SPC), and porcelain tile products, among others. Following the February 2022 leveraged buyout transaction, AHF is majority owned by Paceline Equity Partners. The company reported revenue for the LTM period ending March 30, 2024 of $819 million, pro forma for acquisitions. The principal methodology used in these ratings was Consumer Durables published in September 2021. AIBOTICS INC: Reports $1.85 Million Net Loss in 2024 ---------------------------------------------------- Aibotics, Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting net loss of $1,848,275 for the year ended December 31, 2024, compared to a net loss of $1,181,347 for the year ended December 31, 2023. Spokane, Wash.-based Fruci & Associates II, PLLC, the Company's auditor since 2024, issued a "going concern" qualification in its report dated Apr. 11, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has generated no revenues, experienced negative operating cash flows, and has incurred operating losses since inception. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. For the year ended December 31, 2024, the Company had negative cash flows from operations of $259,037 and may incur additional future losses. At December 31, 2024, the Company had total current assets of $185,097 and total current liabilities of $4,851,763, resulting in a working capital deficit of $4,666,666. The Company's existence is dependent upon management's ability to develop profitable operations. Management is devoting substantially all of its efforts to developing its business and raising capital and there can be no assurance that the Company's efforts will be successful. No assurance can be given that management's actions will result in profitable operations or the resolution of its liquidity problems. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/mu5mfk6d About Aibotics Inc Miami, Fla.-based AIBotics, Inc. promotes the study of psychedelics for the treatment of mental health issues and supports the creation of both natural and synthetic molecules for the development of appropriate treatments. AIBotics also intends to deploy technology from its parent company, Ehave, Inc., in the collection of research and clinical data to further the study of the effects of psychedelics in the treatment of mental health issues. With the acquisition of assets from Philon Labs, we intend on using Artificial Intelligence to transform great ideas and innovative solutions into disruptive products using advanced engineering and design techniques, enhancing patient care and streamlining medical processes. As of Dec. 31, 2024, the Company had $1,456,995 in total assets, $4,851,763 in total liabilities, and a total stockholders' deficit of $3,394,768. AMERICAN PEST: Seeks to Hire CAVA Law LLC as Bankruptcy Counsel --------------------------------------------------------------- American Pest Solutions, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to hire CAVA Law, LLC as general bankruptcy counsel. The firm will render these services: a) advise the Debtor with respect to its powers and duties as a debtor-in-possession and the continued management of its affairs; b) advise the Debtor with respect to its responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the rules of the Court; c) prepare motions, pleadings, orders, applications, adversary proceedings, and other legal documents necessary in the administration of the case; d) protect the interests of the Debtor and the Estate in all matters pending before the Court; and e) represent the Debtor in negotiations with its creditors in the preparation of a plan. The firm's current rates are: Senior Attorney/Partner $450/hour Associate Attorney $350/hour Paralegal $175/hour Assistant/Secretary $100/hour The Debtor paid CAVA a $6,000 deposit towards this Subchapter V case and understands that further fees and costs will continue to be incurred as the case progresses. The firm can be reached through: Christina Vilaboa-Abel, Esq. CAVA Law, LLC 1390 South Dixie Highway, Suite 1110 Coral Gables, FL 33146 Phone: (786) 675-6830 Email: christina@cavalegal.com About American Pest Solutions, Inc. American Pest Solutions, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-13635) on April 1, 2025, listing up to $50,000 in assets and $100,001 to $500,000 in liabilities. Judge Scott M Grossman presides over the case. Christina Vilaboa-Abel, Esq. at CAVA Law, LLC represents the Debtor as counsel. ANALABS INC: Seeks to Extend Plan Exclusivity to July 1 ------------------------------------------------------- Analabs Inc. asked the U.S. Bankruptcy Court for the Southern District of Western Virginia to extend its exclusivity period to file a Chapter 11 Plan to July 1, 2025. Pursuant to Section 1121 of the Bankruptcy Code and the Order Establishing Certain Deadlines and Procedures entered on December 19, 2024, the Debtor is currently permitted and exclusive period to file a Chapter 11 Plan of Reorganization to on or before April 2, 2025. The Debtor explains that it has anticipated filing a plan prior to the 120-day exclusivity period but circumstances have arisen that require additional time to enable the Debtor to prepare and file a comprehensive plan of reorganization. Specifically, the Debtor requires additional time to determine the extent and priority of secured claims by the Small Business Administration, Partner Capital, and National Capital Investment Fund in personal property of the Debtor and to complete negotiations with those and other secured creditors. Additionally, and perhaps more significantly, the Debtor anticipates finalization of new client contracts that could result in up to $40,000.00 per month in revenue to assist in funding the plan. The Debtor anticipates those new contracts to be secured within 90 days. As a result, the Debtor is unable to meet the current deadline for filing the plan exclusively. The Debtor believes that this extension will allow sufficient time to prepare a plan that is in the best interests of all creditors and parties in interest. Analabs Inc. is represented by: Paul W. Roop, II, Esq. Roop Law Office LC PO Box 1145 Beckley, WV 25802-1145 Telephone: (304) 255-7667 Facsimile: (304) 256-2295 E-mail bankruptcy@rooplawoffice.com About Analabs Inc. Analabs Inc. provides cannabis testing, drug testing and environmental testing for corporations of all sizes. Its clients include waste and drinking water plants, coal companies, engineering firms, public school systems, grocery stores, natural gas companies, local, state, and federal government agencies. Analabs sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. W. Va. Case No. 24-50095) on Dec. 3, 2024, with total assets of $1,882,258 and total liabilities of $3,188,705. Kelli Harrison, director and vice-president of Analabs, signed the petition. Judge B. Mckay Mignault handles the case. The Debtor is represented by Paul W. Roop, II, Esq., at Roop Law Office, LC. ANGIE'S TRANSPORTATION: Court OKs Tractor Sale to Delta Logistics ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Missouri, Eastern Division, has approved Angie's Transportation LLC and its affiliate, STL Equipment Leasing, LLC, to sell Tractor, free and clear of liens, claims, and interests. The Debtors operate a trucking company in St. Louis, Missouri. The Court has authorized the Debtor to sell the 2020 Volvo VNL64T760 Tractor 4V4NC9EH2LN265997 Delta Logistics, Inc. for the sum of $30,000.00. The Court ordered the Debtor the Debtors to remit payment to The Huntington National Bank in an amount necessary to satisfy the outstanding lien. As of May 1, 2025, said balance is $9,181.10. The Debtor is furthered directed to remit payment to the United States Attorney's Office, Eastern District of Missouri, at closing on the sale of the Tractors in the amount of $5,000.00 from the Purchase Price. The payment made to the United States Attorney's Office, Eastern District of Missouri, on behalf of the Internal Revenue Service, shall be in addition to any amounts payable as and for adequate protection under orders previously entered by this Court. The Debtors shall also remit payment to M&T Equipment Finance Corporation at closing on the sale of the Tractors in the amount of $2,000.00 from the Purchase Price. The Debtors shall use the remaining funds from the Purchase Price solely for continuing business operations of the Debtors. About Angie's Transportation, LLC Angie's Transportation LLC is a trucking company in St. Louis, Missouri. Angie's Transportation LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Miss. Case No. 24-44594) on December 16, 2024. In the petition filed by Angelina Twardawa, as manager, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Bonnie L. Clair handles the case. The Debtor is represented by Andrew Magdy, Esq., at SCHMIDT BASCH, LLC ANGIE’S TRANSPORTATION: 3 Tractors Sale to Delta Logistics OK'd ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Missouri, Eastern Division, to sell Property, free and clear of liens, interests and encumbrances. The Debtors operate a trucking company in St. Louis, Missouri. The Debtor owns the tractors: - 2020 Volvo VNL64T760 Tractor 4V4NC9EH9LN265995 - 2020 Volvo VNL64T760 Tractor 4V4NC9EH0LN265996 - 2020 Volvo VNL64T760 Tractor 4V4NC9EH4LN265998 The Court authorized the Debtor to sell three tractors to Delta Logistics Inc., free and clear of liens, claims and interests for the sum of $90,000.00. The lienholders of the Tractors, PNC Bank, Internal Revenue Service, M&T Equipment Finance Corporation, have consented to the sale of the Tractors. The Debtors are directed to remit payment to PNC Bank at closing of the sale of the Tractors in an amount necessary to satisfy its outstanding lien. As of May 1, 2025, said balance is $34,965.64. The Debtors shall also remit payment to the United States Attorney's Office, Eastern District of Missouri, at closing on the sale of the Tractors in the amount of $15,000.00 from the Purchase Price. The Debtors shall further remit payment to M&T Equipment Finance Corporation at closing on the sale of the Tractors in the amount of $6,000.00 from the Purchase Price. The Court also ordered that the Debtors shall use the remaining funds from the Purchase Price solely for continuing business operations of the Debtors. About Angie's Transportation, LLC Angie's Transportation LLC is a trucking company in St. Louis, Missouri. Angie's Transportation LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Miss. Case No. 24-44594) on December 16, 2024. In the petition filed by Angelina Twardawa, as manager, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Bonnie L. Clair handles the case. The Debtor is represented by Andrew Magdy, Esq., at SCHMIDT BASCH, LLC. ANNALEE DOLLS: Taps William S. Gannon PLLC as Bankruptcy Counsel ---------------------------------------------------------------- Annalee Dolls LLC seeks approval from the U.S. Bankruptcy Court for the District of New Hampshire to hire William S. Gannon PLLC as general bankruptcy counsel. The firm's services include: a. advising the Debtor with respect to its powers and duties as debtor-in-possession and the continued management and operation of its businesses and properties; b. attending meetings and negotiating with representatives of creditors and other parties in interest, responding to creditor inquiries, and advising and consulting on the conduct of the case, including all of the legal and administrative requirements of operating in Chapter 11; c. negotiating and preparing on behalf of the Debtor a plan or plans of reorganization, and all related documents, and prosecuting the plan or plans through the confirmation process; d. representing the Debtor in connection with any adversary proceedings or contested matters or any other action commenced by or against Debtor and protect and preserve the Debtor’s estate; e. advising the Debtor in connection with any sale of assets; f. representing and advising the Debtor regarding post-confirmation operations and consummation of a plan or plans of reorganization; g. appearing before the Family Court as amicus curiae to represent the interests of Debtor and the estate in the Lee Divorce Matter to the extent necessary or deemed to be helpful to the Family Court; h. appearing before this Court, any appellate courts, and the U.S. Trustee and protecting the interests of the Debtor before such courts and the U.S. Trustee; i. preparing necessary motions, applications, answers, orders, reports, and papers necessary to the administration of the estate; and j. performing all other legal services for and providing all other legal advice to the Debtor that may be necessary and proper in these proceedings, including, without limitation, services or legal advice relating to applicable state and federal laws and securities, labor, commercial, and real estate laws. The hourly rates of the firm's counsel and staff are: William S. Gannon, Esq., Attorney $525 Mari Voisine, Paralegal $120 Jeanne Arquette-Koehler, Administrative Assistant $120 In addition, the firm will be reimbursed for out-of-pocket expenses incurred. Mr. Gannon disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: William S. Gannon, Esq. William S. Gannon, PLLC 740 Chestnut Street Manchester, NH 03104 Telephone: (603) 621-0833 Facsimile: (603) 621-0830 Email: bgannon@gannonlawfirm.com About Annalee Dolls LLC Annalee Dolls LLC is an American company known for its handcrafted felt dolls that embody holiday themes and whimsical charm. Founded in 1934, the business has become a staple of collectible Americana, with its headquarters and flagship store located in Meredith, New Hampshire. The Company continues to attract visitors and collectors with its nostalgic products and scenic gift shop near Lake Winnipesaukee. Annalee Dolls LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.H. Case No. 25-10232) on April 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Kimberly Bacher handles the case. The Debtor is represented by William S. Gannon, Esq. at WILLIAM S. GANNON PLLC. APTIM CORP: Moody's Affirms 'B3' CFR & Alters Outlook to Negative ----------------------------------------------------------------- Moody's Ratings affirmed APTIM Corp.'s B3 corporate family rating, B3-PD probability of default rating, and the $380 million senior secured term loan bank credit facility rating at B3. The outlook was changed to negative from stable. APTIM is an engineering, consulting, and construction management firm providing end-to-end environmental, resilience, and critical infrastructure solutions. The affirmation of the B3 CFR and revision of the outlook to negative from stable reflect Moody's growing concerns relating to APTIM's operating performance trends following a considerable contraction in sales in 2024 and uncertainties relating to federal government spending budgets over the next 12-18 months, which account for a significant portion of APTIM's revenue base. RATINGS RATIONALE APTIM's B3 CFR is principally constrained by the company's elevated debt/EBITDA of approximately 9x as of December 31, 2024 (based on Moody's calculations) which should contract, but remain high at approximately 7x by the end of 2025. APTIM's credit profile is also negatively impacted by the company's weak operating performance in 2024, including declining revenue and low profitability metrics in a highly competitive operating landscape. Additional credit risk stems from the concentration of APTIM's revenues among federal government agencies as well as state and local governments (approximately 70% of 2024 revenue) that can be negatively impacted by budgetary delays, with only 30% of APTIM's business attributable to private sector clients. Additionally, the uncertainties inherent to contract cost estimates associated with fixed price contracts (which represents a majority of APTIM's backlog), surety bonding and related letter of credit requirements for new projects, meeting required performance standards, and the involvement of subcontractors heighten APTIM's risk profile. APTIM's high reliance on a staff of scientists, engineers, technicians, and other skilled personnel can create pressures on the company's profitability during periods of talent shortages while technical skills gaps could result in poor service quality and expose APTIM to reputational risk, significant legal claims, and escalating insurance expenses. Corporate governance concerns related to the company's concentrated ownership by Veritas present an element of uncertainty as the potential for incremental acquisitions and shareholder distributions could constrain leverage reduction efforts. These risks are partially mitigated by the company's $1.9 billion multi-year contract backlog as of December 31, 2024 which provides good revenue visibility. Growth of the backlog in 2024 suggests there could be a recovery in demand for APTIM's services in 2025. Furthermore, APTIM's national scale and breadth of technical capabilities bolster the company's market position as a provider of environmental, resilience, and critical infrastructure solutions, primarily in the US market. The company's credit profile is also supported by APTIM's good liquidity. Liquidity is principally supported by the company's unrestricted cash balance of approximately $123 million as of December 31, 2024. Moody's expects that APTIM will be challenged to generate meaningful free cash flow over the next 12 to 15 months. Liquidity is bolstered by APTIM's $100 million ABL revolver (unrated) expiring in late 2028, but availability after considering the company's borrowing base and outstanding letters of credit is limited to only $24.4 million as of December 31, 2024. The company's term loans are not subject to financial maintenance covenants. The ABL revolver is subject to a springing minimum fixed charge coverage ratio of 1x when ABL revolver excess availability is less than the greater of $10 million or 10% of the maximum amount of the ABL revolver. Moody's expects the company to remain in compliance with this covenant over the next 12-15 months. APTIM's B3 senior secured first lien term loan rating is consistent with the company's CFR and reflects APTIM's B3-PD PDR as well as the term loan's effective subordination to the unrated ABL revolver. The ABL revolver is secured by a first-priority lien primarily on the receivables of the borrower and its domestic subsidiaries, and a second-priority lien on substantially all other assets. The first lien term loan rating is supported by the benefit of loss absorption provided by APTIM's junior secured payment in kind (PIK) term loan due 2029 ($94 million outstanding as of December 31, 2024) as well as a meaningful amount of estimated general unsecured claims (including trade payables and operating lease rejection claims in an event of default scenario). The negative outlook reflects Moody's expectations that APTIM's debt/EBITDA will contract, but remain high approaching 7x by the end of 2025. While revenue and EBITDA are expected to recover meaningfully from 2024 levels, the ongoing accumulation of PIK interest from APTIM's junior secured PIK term loan will somewhat constrain leverage reduction. The outlook can be changed to stable from negative if APTIM's operating performance materially exceeds Moody's expectations, such that debt/EBITDA is expected to fall below 7x over the next 12 months while the company maintains good liquidity and does not adopt more aggressive financial policies. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given the negative outlook, an upgrade is not likely in the near term. Over the longer term, the ratings could be upgraded if APTIM can realize revenue and EBITDA growth while reducing debt, such that debt/EBITDA is maintained below 5x and annual free cash flow is sustained at a mid-single digit percentage of total debt. The ratings could be downgraded if APTIM's operating performance deteriorates, the company loses market share, or adopts more aggressive financial policies, resulting in a material deterioration of APTIM's liquidity profile or debt/EBITDA remaining at elevated levels. The principal methodology used in these ratings was Construction published in April 2025. Headquartered in Baton Rouge, Louisiana and majority-owned by affiliates of Veritas, APTIM provides end-to-end environmental, resilience, and critical infrastructure solutions to clients in the commercial (energy, industrial, and retail) and government sectors. Moody's expects 2025 revenue of approximately $1.1 billion. ARCH PRODUCTION: Gets OK to Use Cash Collateral Until May 28 ------------------------------------------------------------ ARCH Production and Design NYC, Inc. got the green light from the U.S. Bankruptcy Court for the Northern District of New York to use cash collateral. The order authorized the company's interim use of cash collateral through May 28 for business operations. As protection, ARCH was ordered to make monthly payments of $1,236 and $3,400 to the U.S. Small Business Administration and JP Morgan Chase Bank, starting this month. A final hearing is scheduled for May 28. About ARCH Production and Design, NYC ARCH Production and Design, NYC, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. N.Y. Case No. 25-10390-1) on April 4, 2025. In the petition signed by Evan Collier, president, the Debtor disclosed up to $500,000 in assets and up to $10,000 in liabilities. Mitchell Canter, Esq., at Law Offices of Mitchell J. Canter, represents the Debtor as legal counsel. ARCHDIOCESE OF NEW ORLEANS: Directed to Respond to Chapter 11 Case ------------------------------------------------------------------ Daniel Payne of Catholic News Agency reports that a federal judge has ordered the Archdiocese of New Orleans to appear in court and defend the continuation of its long-running bankruptcy case, citing a lack of progress despite years of proceedings and millions of dollars spent. The Archdiocese filed for Chapter 11 bankruptcy in May 2020, citing financial strain from clergy abuse lawsuits and the economic impact of the COVID-19 pandemic. The New Orleans Archdiocese is one of numerous U.S. dioceses that have filed for bankruptcy in response to mounting clergy abuse claims. However, U.S. Bankruptcy Judge Meredith Grabill noted this week that, after nearly five years, no party has proposed a feasible reorganization plan to adequately compensate abuse survivors -- either through financial means or through institutional reforms like increased transparency and accountability. The judge has scheduled a hearing for June 26, 2025 in New Orleans, requiring the Archdiocese to explain why the case should not be dismissed due to its failure to produce a workable resolution, according to Catholic News Agency. While expressing frustration over the delay, Judge Grabill maintained that the bankruptcy process still holds the potential to deliver the best outcomes for all stakeholders, the report states. In response, the Archdiocese said it looks forward to outlining recent progress in negotiations aimed at delivering fair compensation to survivors and creditors while preserving its ministry, the report relays. "Although the time and money spent over the last five years is regrettable, we believe a resolution is still in the best interest of all involved," the Archdiocese stated, adding that its legal team is preparing a formal response to the court. The current $62.5 million settlement offer remains significantly lower than the approximately $1 billion sought by abuse survivors, with most of the proposed funds expected to come from insurance providers, according to report. About Roman Catholic Church of The Archdiocese Of New Orleans The Roman Catholic Church of the Archdiocese of New Orleans -- https://www.nolacatholic.org/ -- is a non-profit religious corporation incorporated under the laws of the State of Louisiana. Created as a diocese in 1793, and established as an archdiocese in 1850, the Archdiocese of New Orleans has educated hundreds of thousands in its schools, provided religious services to its churches and provided charitable assistance to individuals in need,including those affected by hurricanes, floods, natural disasters, war, civil unrest, plagues, epidemics, and illness. Currently, the archdiocese's geographic footprint occupies over 4,200 square miles in southeast Louisiana and includes eight civil parishes: Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist, St. Tammany, and Washington. The Roman Catholic Church for the Archdiocese of New Orleans sought Chapter 11 protection (Bankr. E.D. La. Case No. 20-10846) on May 1, 2020. The archdiocese was estimated to have $100 million to $500 million in assets and liabilities as of the bankruptcy filing. Judge Meredith S. Grabill oversees the case. Jones Walker, LLP and Blank Rome, LLP, serve as the archdiocese's bankruptcy counsel and special counsel, respectively. Donlin, Recano& Company, Inc., is the claims agent. The U.S. Trustee for Region 5 appointed an official committee of unsecured creditors on May 20, 2020. The committee is represented by the law firms of PachulskiStangZiehl& Jones, LLP and Locke Lord, LLP. Berkeley Research Group, LLC is the committee's financial advisor. ASCEND PERFORMANCE: Seeks to Tap Epiq as Claims and Noticing Agent ------------------------------------------------------------------ Ascend Performance Materials Holdings Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Epiq Corporate Restructuring LLC as claims, noticing, and solicitation agent. Epiq will oversee the distribution of notices and will assist in the maintenance, processing, and docketing of proofs of claim filed in the Chapter 11 cases of the Debtors. The firm will be paid at these hourly rates: Executive Vice President, Solicitation $195 Solicitation Consultant $195 Consultants/ Directors/Vice Presidents $185 - $195 Case Managers $85 - $180 IT/Programming $60 - $85 In addition, the firm will seek reimbursement for expenses incurred. The firm received a retainer of $25,000 from the Debtors. Brad Tuttle, a member at Epiq Corporate Restructuring, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Brad Tuttle Epiq Corporate Restructuring, LLC 777 Third Avenue, 12th Floor New York, NY 10017 Telephone: (646) 282-2532 About Ascend Performance Materials Holdings The Debtors, together with their non-Debtor affiliates, are one of the largest, fully-integrated producers of nylon, a plastic that is used in everyday essentials, like apparel, carpets, and tires, as well as new technologies, like electric vehicles and solar energy systems. Ascend's business primarily revolves around the production and sale of nylon 6,6 (PA66), along with the chemical intermediates and downstream products derived from it. Common applications of PA66 include heating and cooling systems, air bags, batteries, and athletic apparel. Headquartered in Houston, Texas, Ascend has a global workforce of approximately 2,200 employees and operates eleven manufacturing facilities that span the United States, Mexico, Europe, and Asia. Ascend Performance Materials Holdings Inc. and its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90127) on April 21, 2025. In the petitions signed by Robert Del Genio, chief restructuring officer, the Debtors disclosed $1 billion to $10 billion in both estimated assets and liabilities. Judge Christopher M. Lopez oversees the cases. The Debtors tapped Bracewell LLP and Kirkland & Ellis LLP as counsel; PJT Partners, Inc. as investment banker; FTI Consulting, Inc. as restructuring advisor; and Deloitte LLP as tax advisor. Epiq Corporate Restructuring LLC is the Debtors' claims, noticing, and solicitation agent. ATLANTIC NATURAL: Seeks to Hire Fishman Haygood as Legal Counsel ---------------------------------------------------------------- Atlantic Natural Foods, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Louisiana to employ Fishman Haygood LLP as counsel. The firm will render these services: (a) advise the Debtor with respect to its rights, powers and duties; (b) prepare and pursue confirmation of a plan of reorganization; (c) prepare on behalf of the Debtor all necessary legal documents, and review all financial and other reports to be filed; (d) advise the Debtor concerning and prepare responses to legal documents which may be filed by other parties herein; (e) appear in court to protect the interests of the Debtor before this court; (f) represent the Debtor in connection with use of cash collateral and/or obtaining post-petition financing; (g) advise the Debtor concerning and assist in the negotiation and documentation of financing agreements, cash collateral orders and related transactions; (h) investigate the nature and validity of liens asserted against the property of the Debtor, and advise concerning the enforceability of said liens; (i) investigate and advise the Debtor concerning, and take such action as may be necessary to collect, income and assets in accordance with applicable law, and the recovery of property for the benefit of the its estate; (j) advise and assist the Debtor in connection with any potential property dispositions; (k) advise the Debtor concerning executory contract and unexpired lease assumptions, assignments and rejections and lease restructuring, and recharacterizations; (l) assist the Debtor in reviewing, estimating and resolving claims asserted against the its estate; (m) commence and conduct litigation necessary and appropriate to assert rights held by the Debtor, protect assets of its Chapter 11 estate or otherwise further the goal of completing its successful reorganization; and (n) perform all other legal services for the Debtor which may be necessary and proper in this case. The firm will be paid at these hourly rates: Tristan Manthey, Partner $600 Other Partners/Special Counsel $350 - $650 Joseph Caneco, Partner $350 Other Associates $225 - $395 Paralegals $210 In addition, the firm will seek reimbursement for expenses incurred. During the 90-day period prior to the petition date, the firm received an advance payment retainer of $66,717 from the Debtor. Mr. Manthey disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Tristan Manthey, Esq. Fishman Haygood LLP 201 St. Charles Avenue, Suite 4600 New Orleans, LA 70170 Telephone: (504) 586-5252 Facsimile: (504) 586-5250 Email: tmanthey@fishmanhaygood.com About Atlantic Natural Foods Atlantic Natural Foods, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 25-10676) on April 7, 2025, listing between $10 million and $50 million in assets and between $1 million and $10 million in liabilities. J. Douglas Hines, manager, signed the petition. Judge Meredith S. Grabill oversees the case. The Debtor tapped Tristan Manthey, Esq., at Fishman Haygood, LLP as counsel and Malcom M. Dienes LLC as accountant. ATLANTIC NATURAL: Seeks to Hire Malcom M. Dienes as Accountant -------------------------------------------------------------- Atlantic Natural Foods, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Louisiana to employ Malcom M. Dienes LLC as accountant. The firm will provide these services: (a) work collaboratively with the Debtor's management, legal counsel, professionals, and employees in preserving estate assets and value; (b) assist the Debtor in cash management and cash flow forecasting processes; (c) assist the Debtor in connection with its preparation of various financial reports; (d) assist the Debtor in preparation of monthly operating reports; (e) assist the Debtor with reviewing and acquiring various financing options; (f) assist the Debtor in evaluating its options related to a sale of its assets; (g) prepare and file tax returns in the ordinary course of business and to ensure that the Debtor complies with applicable law and U.S. Trustee Guidelines; (h) assist the Debtor and in connection with the formulation, negotiation and promulgation of a chapter 11 plan; (i) provide advice and recommendations with respect to other related matters as the Debtor or its professionals may request from time to time, as agreed to by the firm; and (j) render such assistance as the Debtor and its counsel may request and deem necessary. The firm's professionals will be paid at these hourly rates: John Theriot, CPA $450 Jonathan Stoltz, CPA $350 Jason Schellhaas, CPA $350 Supervisors $225 - $350 Staff $150 - $225 In addition, the firm will seek reimbursement for expenses incurred. Mr. Theriot disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: John Theriot, CPA Malcom M. Dienes LLC 611 N. Causeway Blvd. Metairie, LA 70001 Telephone: (504) 588-9288 About Atlantic Natural Foods Atlantic Natural Foods, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 25-10676) on April 7, 2025, listing between $10 million and $50 million in assets and between $1 million and $10 million in liabilities. J. Douglas Hines, manager, signed the petition. Judge Meredith S. Grabill oversees the case. The Debtor tapped Tristan Manthey, Esq., at Fishman Haygood, LLP as counsel and Malcom M. Dienes LLC as accountant. AVONDALE CAPITAL: Hires J&J Commercial as Real Estate Broker ------------------------------------------------------------ Avondale Capital, LLC seeks approval from the U.S. Bankruptcy Court for the District of Arizona to employ J&J Commercial Properties Inc., an Arizona Corporation, as real estate broker. The firm will market and sell the Debtor's real property located at NEC of Eliseo Felix Jr. Way & 9th Street, Tax Parcel #: 500-02-107. The broker will receive a commission of 4 percent of the gross selling price and 5 percent if co-brokered. The broker represents or holds no interest adverse to the interests of the estate with respect to the matters on which they are to be employed, according to court filings. The firm can be reached through: Tyson Breinholt J&J Commercial Properties Inc. 1333 W Broadway Rd Tempe, AZ 85282 Phone: (480) 966-7513 Fax: (480) 966-2307 Email: tbreinholt@cpiaz.com About Avondale Capital Avondale Capital, LLC filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D. Ariz. Case No. 25-01783), listing under $1 million in both assets and liabilities. Judge Daniel P. Collins oversees the case. Keith M. Knowlton, Esq., at Keith M. Knowlton, LLC serves as the Debtor's counsel. B.A.S.S. & M.: Seeks to Sell Real Estate at Auction --------------------------------------------------- B.A.S.S. & M. Inc. and its affiliates seek permission from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, to sell Real Property, free and clear of all liens, claims, and encumbrances. The Debtors are engaged in renting and leasing real estate properties. On December 4, 2024, the Debtor was authorized by the curt to obtain senior Secured Superpriority Post-Petition Financing to borrow $4,000,000 pursuant to the terms of the Senior Secured Super-Priority Debtor-in-Possession Loan and Security Agreement, which matures on August 31, 2025. The Court also authorizes the Debtor to retain Rock Creek Financial Advisors LLC to provide Brian Ayers as Chief Restructuring Officer (CRO) to the Debtor. The CRO is authorized to manage the Debtor's, including but not limited to supervising a marketing and sale process, liquidating assets, prosecuting a bankruptcy plan, administering claims, administering the bankruptcy estate, and assisting with managing the business affairs for all of the Debtors. The Debtors retain Hilco Real Estate to assist in the marketing and sale of the Properties. The Court also approves bid procedures to facilitate the Debtors' ongoing marketing and sale process of the Properties, and sets the sale hearing on May 6, 2025. The Debtors held an Auction on April 23, 2025 and subsequently determined the successful bidders for certain of the Properties. As the Court is aware, the Debtors are holding companies with limited liquidity remaining from their DIP Loan, no additional forthcoming financing, and no cash-generating operations to fund a plan of reorganization or liquidation. The Debtors' only option to maximize value for creditors is to effectuate the Sale to the Purchasers and use the proceeds to pay creditors of the estates. The Debtors also believe that the only way to maximize value for the creditors of these estates is for the Sale to be free and clear of all liens, claims, rights, interests, charges, and encumbrances, and for the Claims and Interests to attach to the sale proceeds. Given that the proceeds of this Sale will not satisfy the Debtor's post-petition loan with Nine Left Capital Master Fund DIP Lender), the Debtors seek authorization to distribute sale proceeds directly to the DIP Lender to pay down the Debtors' indebtedness, and to Hilco for its commissions. The Debtors are currently accruing interest on the DIP Loan at a rate of 2.5% per month, or 0.083% per day. The longer the Debtors wait to close the Sale and use the proceeds to pay claims, the more interest will be owed to the DIP Lender on its claim, which primes all other creditors except Hilco. About B.A.S.S. & M. Inc. B.A.S.S. & M. Inc. is primarily engaged in renting and leasing real estate properties. B.A.S.S. & M. Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ill. Lead Case No. 24-15381) on Oct. 16, 2024. In the petition filed by Suzie B. Wilson, as authorized representative, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtors tapped ARENTFOX SCHIFF LLP as general bankruptcy counsel, and ROCK CREEK ADVISORS, LLC, as financial advisor. STRETTO, INC., is the claims agent. BALKAN EXPRESS: Seeks Chapter 11 Bankruptcy in Texas ---------------------------------------------------- On April 30, 2025, Balkan Express LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern 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 Balkan Express LLC Balkan Express LLC is a transportation and logistics company based in Fort Worth, Texas, offering full truckload and less-than-truckload freight services across the 48 contiguous U.S. states. The Company operates a fleet of over 150 trucks and 250 trailers and offers 24/7 dispatch support with GPS tracking. Balkan Express LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-41544) on April 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million. The Debtor is represented by Joshua N. Eppich, Esq. at BONDS ELLIS EPPICH SCHAFER JONES LLP. BEC CAPITAL: Section 341(a) Meeting of Creditors on June 3 ---------------------------------------------------------- On April 30, 2025, BEC Capital Corp. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of New York. According to court filing, the Debtor reports $1,040,100 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on June 3, 2025 at 02:00 PM at Telephonic Meeting: Phone 1 (877) 960-2850, Participant Code 5942427#. About BEC Capital Corp. BEC Capital Corp. operates the Blink Fitness franchise in Lindenhurst, New York. The gym offers affordable membership options and personal training for all fitness levels. BEC Capital Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-71685) on April 30, 2025. In its petition, the Debtor reports total assets of $170,262 and total liabilities of $1,040,100. Honorable Bankruptcy Judge Alan S. Trust handles the case. The Debtor is represented by Heath S. Berger, Esq. at BFSNG LAW GROUP, LLP. BELLEVUE HOSPITAL: Quality of Care Maintained, 1st PCO Report Says ------------------------------------------------------------------ Deborah L. Fish, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the Eastern District of Ohio her first report regarding the quality of patient care provided by The Bellevue Hospital. In her report, which covers the period from March 17 to March 28, 2025, the PCO has visited the hospital, met with numerus staff including the CEO, Director of Nursing, HR, Infection Control, Facilities, and patients. During the hospital visit, the PCO observed the Debtor providing care to patients in each department. The PCO has made and will continue to make visits to the hospital to monitor the quality of care. The PCO met with the Chief of Medical Staff and the Director of Nursing to confirm neither of them nor the staff were experiencing any issues which would prevent them from delivering quality patient care. Additionally, the PCO receives daily census, and staffing reports and has an open line of communication with the hospital. During her first visit the PCO confirmed that the licenses issued by the State of Ohio for all medical staff were current. Finally, the PCO met with the plant operations manager to confirm the systems in place to confirm HVAC systems, backup generators and operational systems were all in place and functioning properly. The PCO noted that Pursuant to Section 333 (b) (3), the quality of patient care provided to patients of the debtor has been maintained post-petition, is not being materially compromised, patients' needs are met, staffing is sufficient, and quality of care is significantly above average. The ombudsman may be reached at: Deborah L. Fish 211 West Fort Street, Suite 705 Detroit, MI 48226 Phone: 313.309.3171 Email: dfish@allardfishpc.com About The Bellevue Hospital The Bellevue Hospital is a healthcare provider offering a range of services, including cancer care, cardiac and pulmonary rehab, diagnostic imaging, emergency care, and surgery. It serves residents of Bellevue, Clyde, Fremont, and surrounding areas, providing care 24/7. The organization is governed by a board of trustees and operates as a not-for-profit corporation. Bellevue Hospital was founded in 1914 and has interests in several subsidiary entities, including The Bellevue Hospital Foundation, Bellevue Professional Services, Inc., Bellevue Hospital Pain Management, LLC, Prairie Ridge, LLC, and Bellevue Hospital Medical Holdings, LLC. Bellevue Hospital filed Chapter 11 petition (Bankr. N.D. Ohio Case No. 25-30191) on February 5, 2025, listing between $10 million and $50 million in both assets and liabilities. Sara K. Brokaw, chief executive officer of Bellevue Hospital, signed the petition. Judge Mary Ann Whipple oversees the case. Richard K. Stovall, Esq., at Allen Stovall Neuman & Ashton LLP, represents the Debtor as legal counsel. Fifth Third Bank, as senior secured creditor, is represented by Carrie M. Brosius, Esq. at Vorys, Sater, Seymour and Pease LLP. Firelands Regional Health System, as DIP lender, is represented by Ellen Arvin Kennedy. Esq. at Dinsmore & Shohl, LLP. BENSON HILL: Seeks to Hire Ordinary Course Professionals -------------------------------------------------------- Benson Hill, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to retain non-bankruptcy professionals in the ordinary course of business. The Debtors need ordinary course professionals to perform services for matters unrelated to this Chapter 11 case. The Debtors seek to pay OCPs 100 percent of the fees and expenses incurred. The Debtors do not believe that any of the OCPs have an interest materially adverse to them, their estates, creditors, or other parties in interest in connection with the matter upon which they are to be engaged. The OCPs include: BDO Accounting - U.S. and Canadian Tax Return Extensions and Filing Coleman Talley LLP --Legal - Litigation Elliott Blackburn PC --Legal - Litigation Major, Lindsey & Africa --Legal - General Corporate McCarron & Diess --Legal - Litigation Weatherly IP Solutions --Legal - Patent Prosecution Womble Bond Dickinson --Legal - Patent Prosecution About Benson Hill Benson Hill, Inc. is an ag-tech company focused on innovating soy protein through advanced genetics. Using its CropOS technology platform, Benson Hill creates food and feed that are more nutritious, functional, and produced efficiently, offering sustainability benefits to the food and feed sectors. Benson Hill and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Lead Del. Case No. 25-10539) on March 20, 2025. The petitions were signed by Daniel Cosgrove as interim chief executive officer. In their petitions, the Debtors reported total assets of $137,542,000 and total debts of $110,701,000. Judge Thomas M. Horan handles the cases. The Debtors tapped Faegre Drinker Biddle & Reath, LLP as bankruptcy counsel; Piper Sandler as investment banker; Meru, LLC as financial advisor; and Stretto, Inc. as claims and noticing agent. BEYOND COSTUMES: Samuel Dawidowicz Named Subchapter V Trustee ------------------------------------------------------------- The U.S. Trustee for Region 2 appointed Samuel Dawidowicz as Subchapter V trustee for Beyond Costumes, 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 Beyond Costumes Beyond Costumes, Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-22261) on April 1, 2025, listing between $100,001 and $500,000 in both assets and liabilities. Judge Sean H. Lane presides over the case. Daniel Scott Alter, Esq. represents the Debtor as legal counsel. BLH TOPCO: Seeks to Hire Raines Feldman Littrell as Legal Counsel ----------------------------------------------------------------- BLH TopCo, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Raines Feldman Littrell LLP as legal counsel. The firm will provide these services: (a) advise he Debtors with respect to their powers and duties in the continued management and operation of their business and properties; (b) advise and consult on the conduct of these cases; (c) attend meetings and negotiate with representatives of creditors and other parties in interest; (d) take all necessary actions to protect and preserve the Debtors' estates; (e) prepare pleadings in connection with these cases; (f) represent the Debtors in connection with obtaining authority to obtain postpetition financing, if required; (g) advise the Debtors in connection with any potential sale of assets; (h) appear before the court and any appellate courts to represent the interests of the Debtors' estates; (i) advise the Debtors regarding tax matters; (j) take any necessary action on behalf of the Debtors to negotiate, prepare, and obtain approval of a disclosure statement and confirmation of a Chapter 11 plan and all documents related thereto; and (k) perform all other necessary legal services for the Debtors in connection with the prosecution of these cases. The firm will be paid at these hourly rates: Partners/Senior Attorneys $495 - $1,300 Associates $415 - $595 Paraprofessionals $250 - $450 In addition, the firm will seek reimbursement for expenses incurred. The firm received a retainer of $400,000 from the Debtors. Thomas Francella, Jr., Esq., an attorney at Raines Feldman Littrell, also provided the following in response to the request for additional information set forth in Section D of the Revised U.S. Trustee Guidelines: Question: Did the firm agree to any variations from, or alternatives to, its standard billing arrangements for this engagement? Response: No. Question: Do any of the firm's professionals in this engagement vary their rate based on the geographic location of the Debtors' Chapter 11 cases? Response: No. Question: If the firm has represented the Debtors in the 12 months prepetition, disclose its billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If its billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Answer: The firm's current hourly rates for services rendered on behalf of the Debtors range as follows: Partners/Senior Attorneys $495 - $1,300 Associates $415 - $595 Paraprofessionals $250 - $450 The firm represented the Debtors from February 27, 2025, to March 26, 2025, using the hourly rates listed below: Partners/Senior Attorneys $495 - $1,300 Associates $415 - $595 Paraprofessionals $250 - $450 Question: Have the Debtors approved the firm's budget and staffing plan, and, if so, for what budget period? Response: Yes, for the period from March 27, 2025 through June 22, 2025. Mr. Francella disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Thomas J. Francella, Jr., Esq. Raines Feldman Littrell LLP 824 North Market Street, Suite 805 Wilmington, DE 19801 Telephone: (302) 772-5803 Email: tfrancella@raineslaw.com About BLH TopCo BLH TopCo, LLC is the operator and franchisor of locally themed, social gastrobars under the "Bar Louie" brand. Bar Louie is an upscale neighborhood bar and eatery. Established in 1991 in Chicago, Ill., BLH TopCo and its affiliates currently operate 31 locations, franchise an additional 17, and employ roughly 1,400 individuals across 19 states. Bar Louie restaurants are situated in various settings, such as lifestyle centers, conventional shopping malls, event venues, central business districts, and other unique standalone locations. BLH TopCo and its affiliates filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 25-10576) on March 26, 2025. In its petition, BLH TopCo reported between $1 million and $10 million in assets and between $50 million and $100 million in liabilities. Judge Craig T. Goldblatt handles the cases. The Debtors are represented by Thomas J. Francella, Jr., Esq., and Mark W. Eckard, Esq., attorneys at Raines Feldman Littrell, LLP. Bankruptcy Management Solutions, Inc., doing business as Stretto, serves as the Debtors' claims and noticing agent. BRINKER INTERNATIONAL: S&P Upgrades ICR to 'BB+', Outlook Stable ---------------------------------------------------------------- S&P Global Ratings upgraded Dallas-based casual dining restaurant operator Brinker International Inc. two notches to 'BB+' from 'BB-' S&P said, "Concurrent with the upgrade, we raised the issue-level rating on its $350 million notes due 2030 to 'BB+'; the recovery rating remains '4', indicating our expectations for average (30%-50%: 40% rounded estimate) recovery in the event of a payment default. "The stable outlook reflects our expectation that Brinker will maintain a conservative financial policy and leverage in the high-1x area over the next 12 months as it continues to benefit from share gains, sales leverage, and improved execution. "The upgrade reflects Brinker's strong operating performance and reduced leverage. Brinker's operating performance through the first three quarters of fiscal 2025 exceeded our expectations, with comparable sales up13% (14.1% for Chili's), 27.4% (31.4%), and 28.2% (31.6%) in quarters one, two, and three, respectively. (Chili's represents more than 95% of Brinker's restaurant base and nearly 90% of sales.) Notably, comparable sales were largely due to traffic increases of 4.9%, 16.5%, and 17.7% at company-owned units in quarters one, two, and three, respectively. These results contrast with a pressured restaurant industry that has seen nearly flat comparable sales growth and negative traffic over the last two quarters. Brinker's recent results were driven by sales leverage, in turn fueled by simplification and efficiency initiatives that began more than two years ago. These initiatives include labor retention and kitchen efficiency efforts, a revamped advertising campaign, as well as menu innovation, consolidation, and simplification, leading to enhanced quality and value-proposition while reducing promotions. These actions resulted in revenue growth of more than 25% and EBITDA growth of more than 75% compared to two years ago. This has led S&P Global Ratings-adjusted debt to EBITDA to fall to 2.0x as of the most recent quarter. We expect it will further improve to below 2x by the end of fiscal 2025 and remain in this area over the next 12 months. "We expect tariffs will have a minimal impact on Brinker's margins and overall performance and for improved free cash flow generation to provide the company with options for cash uses. More than 80% of Brinker's supply chain basket is sourced domestically. Of the remaining 20%, approximately one-third is sourced from Mexico and Canada and is covered by the 2020 United States-Mexico-Canada Agreement, leaving approximately 13% of its basket exposed to potential tariffs. We believe the company has ample flexibility to shift sourcing to control costs. Furthermore, we believe Brinker's pricing strategy will both allow it to absorb tariffs while it protects opening price points and thereby maintains its value proposition. Finally, we expect the company's good free cash flow generation--which we expect to reach $330 million in fiscal 2025--will allow it to continue to invest in the business, repay debt, and return capital to shareholders. As such, we have incorporated an uptick in capital spending in fiscal years 2026 and 2027 to incorporate store reimaging across its base as well as $90 million-$100 million of share repurchases in fiscal years 2025-2027. We note Brinker previously funded the pay-off of its October 2024 notes with borrowings from its revolver and has repaid all but $90 million. The company has previously stated a leverage target of 2.0x-2.5x and finished last quarter with reported lease-adjusted leverage of 1.9x." Brinker's ability to sustain traffic-driven comparable sales growth offsets risks related to the competitive nature of its industry. Brinker's ability to maintain relevance in terms of value and offerings has proven key to maintaining its competitive position, even if comparable store sales were to slow. The company, which operates more than 70% of its units, is directly exposed to fluctuations in commodity prices, wage inflation, and other restaurant-related operating cost pressures, as well as capital investment requirements. Brinker's geographic footprint--and banner mix, at just two, with Chili's representing about 90% of fiscal 2024 sales--is concentrated, with approximately 40% of its company-owned restaurants located in just three states: Texas, Florida, and California. Despite this, S&P views the company's operational effectiveness as offsetting these risks, leading us to revise the comparable rating analysis modifier to neutral from negative. The stable outlook reflects S&P's expectation for Brinker to maintain a conservative financial policy and leverage in the high-1x area over the next 12 months as it continues to benefit from share gains, sales leverage, and improved execution. S&P could lower the rating if Brinker experienced a sharp reversal in its strong execution and operating trajectory such that leverage rises and remains above 3x. This could result from: -- A more aggressive financial policy, specifically in the form of heightened share repurchases, dividends, and/or large, debt- funded acquisitions, or -- A significant reduction in demand due to a softer-than-expected economic backdrop leading to a sharp decline in traffic, price, and mix. While unlikely over the next 12 months, S&P could raise its rating on Brinker if the company: -- Significantly grows its existing store base or diversifies its banner mix while maintaining consistent performance; or -- Maintains a more conservative financial policy, including maintaining S&P Global Ratings-adjusted leverage well below 2x. BUILD BAYTOWN: Unsecureds Will Get 100% of Claims over 5 Years -------------------------------------------------------------- Build Baytown I, LLC, filed with the U.S. Bankruptcy Court for the Eastern District of Tennessee a Disclosure Statement describing Chapter 11 Plan dated March 31, 2025. The Debtor was formed to build and develop a golf course, clubhouse, and other amenities serving as a lifestyle driver of mixed-uses in the Southside of Baytown, Texas. The desire for the City of Baytown ("COB") to bring golf back to its community was supported by the findings of an independent, third-party consulting firm that listed a golf course as a highly desired amenity by many of the citizens of COB. The development agreement between the Debtor and COB falls under the State of Texas mandate Article III, Section 52 of the Texas Constitution and Chapter 380 of the Texas Local Government Code to foster the ability to promote state and local economic development and to stimulate commerce and commercial activity in Baytown. The Debtor has assets including leasehold real property, civil actions against the City of Baytown, Texas and Landscapes unlimited, and revenue stream from the operation of the golf course, the value of which well exceeds its obligations. The continued operation of the golf course, litigation awards granted, and DIP/permanent financing will allow the Debtor to cash flow all of its obligations. The proposed Plan will pay all of the Debtor's creditors. Class 2.01 is comprised of the allowed non-insider, non-priority, unsecured claims. Class 2.01 creditors shall receive 100 percent of their claim over five years following the confirmation date of the Plan. 90 days commencing from Confirmation of the Plan, payments shall be made in equal monthly installments of $1,000.00 on a pro rata basis. Upon executed lease agreements for the adjoining properties, Class 2.01 creditors shall receive fifty percent of lease proceeds on an annual basis, distributed on a pro rata basis. Class 2.02 is comprised of allowed insider, non-priority, unsecured claims. Payment of Class 2.02 claims will be subordinated to payment of all other allowed claims. Class 3 is comprised of equity security holders. David Hinkle and Rio Valeriano shall retain their interest in the Debtor. A full-text copy of the Disclosure Statement dated March 31, 2025 is available at https://urlcurt.com/u?l=a0Wpwj from PacerMonitor.com at no charge. Counsel to the Debtor: Lynn Tarpy, Esq. Kelli Holmes, Esq. Tarpy, Cox, Fleishman & Leveille, PLLC 1111 N. Northshore Suite N-290 Knoxville, TN 37919 Telephone: (865) 588-1096 About Build Baytown I, LLC Build Baytown I, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tenn. Case No. 24-30748) on May 2, 2024, listing $10 million to $50 million in assets and $1 million to $10 million in liabilities. The petition was signed by David Hinkle as member. Thomas Lynn Tarpy, Esq. at Tarpy, Cox, Fleishman & Leveille, PLLC, is the Debtor's counsel. BYLEGACY TEAM: Seeks to Hire Century 21 TK Realty as Broker ----------------------------------------------------------- Bylegacy Team, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Oralia Herrera and Century 21 TK Realty, Inc. as real estate broker. The broker will market and sell the Debtor's property located at 2345 N Mannheim Road., Melrose Park, IL 60164. The firm will be paid a commission of 2.5 percent of the gross rent. Oralia Herrera, a real estate broker at Century 21 TK Realty, Inc., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Oralia Herrera Century 21 TK Realty, Inc. 861 West Lake Street Addison, IL 60101 Mobile: (630) 816-8059 Phone: (630) 543-7000 Office: (630) 543-7000 Fax: (630) 543-7001 About Bylegacy Team, Inc. Bylegacy Team, Inc., filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ill. Case No. 24-09747) on July 2, 2024. At the time of filing, the Debtor estimated $100,001 to $500,000 on both assets and liabilities. Judge Jacqueline P Cox presides over the case. The Debtor hires O. Allan Fridman as counsel. CAREPOINT HEALTH: No Decline in Patient Care, 2nd PCO Report Says ----------------------------------------------------------------- David Crapo, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the District of Delaware his second report regarding the quality of patient care provided by CarePoint Health Systems, Inc., d/b/a Just Health Foundation, and affiliates. In February of 2024, New Jersey Department of Health ("NJDOH") appointed Robert Iannaccone ("Monitor") to monitor operations at the three Hospitals. The Monitor has actively monitored the quality of healthcare at the Hospitals and continues in his role as of the date of this report. In the report which covers the period January 25 to March 31, 2025, the PCO spoke with: (i) the Monitor; (ii) Shamiq Syed, the Chief Financial Officer of CarePoint Health; (iii) Angela Ridley, the Chief Financial Officer of Hudson Regional Medical Center; and (iv) Jonathan Goldstein, the Chief Supply Chain Officer of CarePoint Health, about the contracts the Debtors sought to reject. The PCO has not received any information indicating that quality of care provided to the Debtor's patients (including patient safety) is not acceptable and is currently declining or is otherwise being materially compromised, but reserves making an actual finding in that regard pending the receipt of: (i) additional information in the form of dashboards to be requested from the Debtor; (ii) the PCO's inspections of the Hospitals' operating theatres and kitchens; and, especially if the confirmation process is delayed, (iii) the interviews of patients and staff. The PCO notes that the oversight and supervision provided by the management of the Hospitals, the diligence and experience of the Monitor, the attentiveness and loyalty of the Debtors' clinical staff will likely uncover quality of care deficits if they arise. However, the PCO will continue monitor the situation at the hospitals, in particular by the review of the dashboards the Debtors use to monitor the quality of the services they provide. The PCO does not at this point recommend any remedial action or external intervention at this time regarding additional monitoring of clinical or administrative matters at the Hospitals, because patient care and safety is not likely to be compromised in the immediate to midterm future, other than having the PCO perform the services receive the information. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=jK15Kx from PacerMonitor.com. The ombudsman may be reached at: David N. Crapo, CIPP-US GIBBONS P.C. One Gateway Center Newark, New Jersey 07102-5310 Telephone: (973) 596-4523 Facsimile: (973) 639-6244 Email: dcrapo@gibbonslaw.com 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. CARRUTH COMPLIANCE: Seeks to Tap Mullen Coughlin as Defense Counsel ------------------------------------------------------------------- Carruth Compliance Consulting, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Oregon do to employ Mullen Coughlin LLC as data privacy and cyber security defense counsel. The firm's services include, without limitation, providing the Debtor with advice on its duties and responsibilities as an entity that has suffered a cyber-attack affecting its computer systems and unauthorized access to data in its possession, including defending any claims resulting from such events. The firm's fees and expenses are being paid by Continental Casualty Insurance Company pursuant to Continental's obligations under the Debtor's insurance policy with Continental. Mullen Coughlin expects this arrangement to continue post-petition and does not expect that it will need to request payment of its fees and expenses from the bankruptcy estate. Carolyn Purwin Ryan, Esq., a partner at Mullen Coughlin, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Carolyn Purwin Ryan Mullen Coughlin LLC 3001 N. Rocky Point Dr. East, Suite 200 Tampa, FL 33607 About Carruth Compliance Consulting Carruth Compliance Consulting, Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ore. Case No. 25-31060) on March 31, 2025, listing under $1 million in both assets and liabilities. Harvey Carruth, president, signed the petition. Honorable Bankruptcy Judge David W. Hercher handles the case. The Debtor tapped Thomas W. Stilley, Esq., at Sussman Shank LLP as bankruptcy counsel and Mullen Coughlin LLC as data privacy and cyber security defense counsel. CASH MONEY: Seeks Subchapter V Bankruptcy in California ------------------------------------------------------- On April 28, 2025, Cash Money 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 $100,000 and $500,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Cash Money LLC Cash Money LLC is a health supplement retailer based in Fullerton, California. Cash Money LLC sought relief under Subchapter V o Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11107) on April 28, 2025. In its petition, the Debtor reports estimated assets between $50,000 and $100,000 and estimated liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge Theodor Albert handles the case. The Debtor is represented by Quintin G. Shammam, Esq. of Law Offices Of Quintin G Shammam. CHASEN CONSTRUCTION: Trustee Hires Schlossberg Mastro as Counsel ---------------------------------------------------------------- Roger Schlossberg, the trustee appointed in the Chapter 11 case of Chasen Construction, LLC, seeks approval from the U.S. Bankruptcy Court for the District of Maryland to employ Schlossberg Mastro as general counsel. The firm will provide these services: (a) collect and reduce to money the property of the estate; (b) fully investigate the Debtor's financial affairs and conduct; (c) assist in the examination of claims and prosecute such objections thereto as appear necessary and proper to the trustee; and (d) otherwise aid in the protection of the property of the estate and ensure compliance by the Debtor and its principals with those obligations imposed upon it under the provisions of the Bankruptcy Code and the Bankruptcy Rules of Procedure. The firm will be paid at these hourly rates: Roger Schlossberg, Attorney $650 Frank Mastro, Attorney $550 Paralegal $150 - $175 In addition, the firm will seek reimbursement for expenses incurred. Mr. Schlossberg disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Roger Schlossberg, Esq. Schlossberg Mastro 18421 Henson Boulevard, Suite 201 P.O. Box 2067 Hagerstown, MD 21742 About Chasen Construction Chasen Construction LLC, operating as Chasen Companies, specializes in real estate acquisition and development in the Greater Baltimore Region, with plans for expansion across the U.S. As a vertically integrated company, Chasen manages the entire development process, from acquisitions and financing to construction, marketing, and leasing. The Company is dedicated to delivering high-quality living and workspaces, designed with luxury and modern amenities to enhance the tenant experience. On March 18, 2025, Sandy Spring Bank, Southland Insulators of Maryland, Inc., and Ferguson Enterprises, Inc., petitioning creditors, on behalf of Chasen Construction, LLC filed an involuntary petition under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 25-12356). Judge Nancy V. Alquist oversees the case. Schlossberg Mastro serves as the Debtor's general counsel. Martin Law Group, P.C., the Law Office of Jill D. Caravaggio, and Whittaker/Myers, PC serve as the petitioners' counsel. CITRUS360 LLC: Seeks to Tap Coldwell Banker Commercial as Broker ---------------------------------------------------------------- Citrus360, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Coldwell Banker Commercial RGV as real estate broker. The Debtor needs a broker to list and market its property located at 8921 Israel Cavazos Rd., Monte Alto. The firm will receive a commission of 4 percent of the sales price if no buyer's broker cooperation, and 3 percent if cooperation from a buyer's broker, buyer's broker to receive 2 percent, upon closing and funding of a sale approved by this court. Rafael Guerra, a real estate agent at Coldwell Banker Commercial, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Rafael Guerra Coldwell Banker Commercial RGV 508 E. Dove Ave McAllen, TX 78504 Telephone: (956) 631-1322 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., at Law Offices of Kurt Stephen, PLLC. CONSOLIDATED APPAREL: Seeks Subchapter V Bankruptcy in Florida -------------------------------------------------------------- On April 25, 2025, Consolidated Apparel Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Florida. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Consolidated Apparel Inc. Consolidated Apparel Inc., operating as Native Outfitters and MTO Wear, Consolidated Apparel, Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-14604) on April 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 Mindy A. Mora handles the case. The Debtor is represented by Craig I. Kelley, Esq. CORBETT BUILDINGS: Seeks to Sell New York Property at Auction ------------------------------------------------------------- Corbett Buildings and Holdings LLC seek permission from the U.S. Bankruptcy Court for the Southern District of New York, Poughkeepsie Division, to sell Real Property in an Auction, free and clear of liens, interests, and encumbrances. The Debtor's Property is located 54 Union Street, Montgomery, New York 12549. The Debtor owns the Property, which is residential real property zoned historic in Montgomery (Orange County), New York. Shortly after the Debtor secured a construction loan from Walden Savings Bank, in or about May, 2024, the contractor on the project, Operation Green Construction, abandoned the project. The Debtor receives a purchase offer from Steven and Stephanie Koski in the purchase price of $367,000.00. The Offer contemplates that the purchase is conditioned on the Town of Montgomery building inspector to furnish a list of all violations and itemize what is needed to correct them. The parties shall enter into a Contract, subject to higher and better offers in accordance with the Bid Procedures annexed hereto and subject to approval of this Court at a subsequent sale hearing. The Debtor believes that the offer from Koski contains the best terms that the Debtor could receive for the Property. The Property has been listed with Keller Williams since the end of August, 2024. The Debtor has received numerous "low-ball" offers since construction on the Property needs to be completed. The Debtor proposes bid procedures that will enable the Debtor to conduct its proposed sale in accordance with the requirements of the applicable Bankruptcy Code and Rules and allows a reasonable structure to attract other interested parties to make competing bids. The Debtor further seeks approval on the form and manner of the sale and to schedule an auction and sale hearing. About Corbett Buildings and Holdings LLC Corbett Buildings and Holdings LLC operates as a single-asset real estate company based in Montgomery, NY, focusing on a partially constructed single-family residence in a historic district. Corbett Buildings and Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-35073) on January 24, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $500,000 and $1 million. The Debtor is represented by Michelle L. Trier, Esq. at Genova, Malin & Trier, LLP. D&B RENTALS: Cameron McCord Named Subchapter V Trustee ------------------------------------------------------ The U.S. Trustee for Region 21 appointed Cameron McCord, Esq., at Jones & Walden, LLC, as Subchapter V trustee for D&B Rentals, Inc. Ms. McCord will be paid an hourly fee of $500 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. McCord declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Cameron McCord, Esq. Jones & Walden, LLC 699 Piedmont Avenue, NE Atlanta, GA 30308 Phone: (404) 564-9300 Fax: (404) 564-9301 Email: cmccord@joneswalden.com About D&B Rentals Inc. D&B Rentals Inc., doing business as Atlanta Tent Rental, is a family owned and operated business serving Georgia and the Southeast for over 25 years, specializing in providing tents, tables, chairs, staging, flooring, linens, and lighting and event services for various occasions, including weddings, corporate events, festivals, sporting events, inventory sales, and nonprofit gatherings. D&B Rentals sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-20449) on April 1, 2025, with $1 million to $10 million in both assets and liabilities. Ira Inman, chief executive officer, signed the petition. William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC represents the Debtor as legal counsel. DANIMER SCIENTIFIC: Hires AlixPartners LLP as Financial Advisor --------------------------------------------------------------- Danimer Scientific, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to hire AlixPartners, LLP as their financial advisor. The firm will render these services: a. assist the Debtors with development of their rolling 13-week cash receipts and disbursements forecasting; b. support the Debtors' financial and treasury functions including, without limitation, by assisting in cash management strategies, planning, general accounting, financial reporting information management and strengthening the core competencies of the finance organization; c. work with management of the Debtors to obtain covenant relief from their bank lenders and other creditors, if applicable; d. work with the Debtors to identify, implement, and monitor both short-term and long-term liquidity generating initiatives; e. provide assistance to management in connection with the Debtors' development of their revised business plan, and such other related forecasts as may be required by lenders in connection with negotiations or by the Debtors for other corporate purposes; f. assist the Debtors in the design and implementation of a restructuring strategy designed to maximize enterprise value, taking into account the unique interests of all constituencies; g. work with management to develop a restructuring strategy, evaluate, negotiate, and implement restructuring initiatives and strategic alternatives; h. assist the Debtors with their communications and/or negotiations with outside parties including the Debtors' stakeholders, banks and potential acquirers of the Debtors' assets and advisors to the foregoing; i. assist in preparing for and filing bankruptcy petitions and "first day" and other motions with the Court, coordinating and providing administrative support for the proceeding and developing the Debtors' disclosure statement and plan, sale and/or other appropriate case resolution, if necessary; j. advise the Debtors on the financial reporting requirements attendant to a bankruptcy filing, including, but not limited to, court orders, court-approved transactions, and bankruptcy accounting; k. assist management in preparing and testing accounting systems in order to perform appropriate accounting cut-off; l. assist with the preparation of documents such as a liquidation analysis, the statement of financial affairs, schedules of assets and liabilities, potential preference analysis, claims analysis, monthly operating reports and other regular reports required by the Court; m. manage the claims estimation and reconciliation processes; n. provide testimony and litigation support services regarding any of the matters to which AlixPartners is providing services; o. meet with lenders, the unsecured creditors' committee and other statutory or unofficial committees, if any, in connection with any bankruptcy filing, as necessary, to provide general process updates and other information as may be requested by the Debtors; p. provide post confirmation services, as may be necessary, to support the Chapter 11 plan and emergence; and q. assist the Debtors with such other matters as may be requested that fall within AlixPartners' expertise and that are mutually agreeable. The firm's hourly rates are: Partner/ Partner & Managing Director $1,225 to $1,540 Senior Vice President/ Director $850 to $1,150 Vice President $650 to $835 Analyst/ Consultant $250 to $640 AlixPartners received a retainer in the amount of $150,000 from the Debtors. Frank Pometti, a partner and managing director at AlixPartners, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Frank Pometti AlixPartners, LLP 909 3rd Ave, New York, NY 10022 Tel: (212) 490-2500 Email: fpometti@alixpartners.com About Danimer Scientific Inc. Danimer Scientific, Inc. is a performance polymer company specializing in bioplastic replacement for traditional petroleum-based plastics. The company is based in Bainbridge, Georgia. Danimer Scientific Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10523) on March 18, 2025. In its petition, the Debtor reports estimated assets between $500 million and $1 billion and estimated liabilities between $100 million and $500 million. Honorable Bankruptcy Judge Mary F. Walrath handles the case. The Debtor is represented by Daniel J. DeFranceschi, Esq. at Richards, Layton & Finger. DANIMER SCIENTIFIC: Seeks to Hire Ordinary Course Professionals --------------------------------------------------------------- Danimer Scientific, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to retain non-bankruptcy professionals in the ordinary course of business. The Debtors need ordinary course professionals to perform services for matters unrelated to this Chapter 11 case. The Debtors seek to pay OCPs 100 percent of the fees and expenses incurred. The Debtors do not believe that any of the OCPs have an interest materially adverse to them, their estates, creditors, or other parties in interest in connection with the matter upon which they are to be engaged. The OCPs include: Tier I Brooks, Wilkins Sharkey & Turco PLLC --Legal Counsel (General) Foley & Lardner LLP --Legal Counsel (Tax) Kane Kessler, P.C. --Legal Counsel (IP) Kawaguti & Partners --Legal Counsel (IP) Keller And Heckman LLP --Legal Counsel (Regulatory) Kilpatrick Townsend & Stockton LLP --Legal Counsel (General) Koreana Patent Firm --Legal Counsel (IP) Lee & Ko --Legal Counsel (IP) Linda Liu & Partners --Legal Counsel (IP) Novogradac & Company LLP --Accounting Services Odajima Patent Attorneys Corporation --Legal Counsel (IP) Stoll Keenon Ogden PLLC --Legal Counsel (General) Thomas Howell Ferguson P.A. --401(k) Audit Services Thompson Hine LLP --Legal Counsel (General) Wallinger Ricker Schlotter Tostmann, Patent Attorneys and Attorneys at Law Partnership mbB --Legal Counsel (IP) Wiley Rein LLP --Legal Counsel (General) Young Basile Hanlon & Macfarlane, PC --Legal Counsel (IP) Tier II CliftonLarsonAllen LLP --Accounting Services CBIZ Inc. --Tax Services About Danimer Scientific Inc. Danimer Scientific, Inc. is a performance polymer company specializing in bioplastic replacement for traditional petroleum-based plastics. The company is based in Bainbridge, Georgia. Danimer Scientific Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10523) on March 18, 2025. In its petition, the Debtor reports estimated assets between $500 million and $1 billion and estimated liabilities between $100 million and $500 million. Honorable Bankruptcy Judge Mary F. Walrath handles the case. The Debtor is represented by Daniel J. DeFranceschi, Esq. at Richards, Layton & Finger. DANIMER SCIENTIFIC: Seeks to Hire Stretto as Administrative Advisor ------------------------------------------------------------------- Danimer Scientific, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Stretto, Inc. as administrative advisor. The firm will render these services: (a) assist with, among other things, solicitation, balloting, and tabulation of votes; prepare any related reports, as required in support of confirmation of a Chapter 11 plan; (b) prepare an official ballot certification and, if necessary, testify in support of the ballot tabulation results; (c) provide a confidential data room; (d) manage and coordinate any distributions pursuant to a Chapter 11 plan if designated as distribution agent under such plan; and (e) provide such other solicitation, balloting and other administrative services described in the Engagement Agreement. The fees Stretto will charge in connection with providing services to the Debtors are set forth in the Engagement Agreement. Sheryl Betance, a senior managing director at Stretto, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Sheryl Betance Stretto Inc. 410 Exchange, Ste. 100 Irvine, CA 92602 Telephone: (714) 716-1872 Email: sheryl.betance@stretto.com About Danimer Scientific Danimer Scientific, Inc. is a performance polymer company specializing in bioplastic replacement for traditional petroleum-based plastics. The company is based in Bainbridge, Georgia. Danimer Scientific Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10523) on March 18, 2025. In its petition, the Debtor reports estimated assets between $500 million and $1 billion and estimated liabilities between $100 million and $500 million. Honorable Bankruptcy Judge Mary F. Walrath handles the case. The Debtor is represented by Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger. Stretto, Inc. is the Debtor's claims and noticing agent and administrative advisor. DANIMER SCIENTIFIC: Seeks to Tap Vinson & Elkins LLP as Co-Counsel ------------------------------------------------------------------ Danimer Scientific, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to hire Vinson & Elkins LLP as their co-counsel. The firm will render these services: a. provide legal advice with respect to the Debtors' powers and duties as debtors in possession in the operation of their businesses and the management of estate property; b. prepare all necessary motions, answers, orders, reports, and other legal papers on the Debtors' behalf in connection with the administration of their bankruptcy estates; c. represent the Debtors in connection with obtaining authority for debtor-in-possession financing and the continued use of cash collateral; d. advise the Debtors in connection with any potential sale(s) of assets and take necessary action(s) to guide the Debtors through such potential sale(s); e. advise the Debtors regarding tax matters; f. analyze proofs of claim that may be filed against the Debtors and potential objections to such claims; g. analyze certain executory contracts and unexpired leases and potential assumptions, assignments, or rejections of such contracts and leases; h. advise the Debtors with respect to corporate and litigation matters, as well as compliance with non-bankruptcy law; i. consult with the U.S. Trustee, the Committee, any other committees that may be appointed in these Chapter 11 Cases, and all other creditors and parties in interest concerning the administration of these Chapter 11 Cases; j. take action on the Debtors' behalf to obtain approval of a disclosure statement and confirmation of a chapter 11 plan; and k. provide representation and all other legal services required by the Debtors in discharging their duties as debtors in possession or otherwise in connection with these Chapter 11 Cases. The firm's current hourly rates are: Partners and Counsel $1,550 to $2,250 Associates $910 to $1,400 Paraprofessionals $615 The firm received $2,750,000 in advance payment retainers. The following are provided in response to the request for additional information set forth in Paragraph D.1 of the Guidelines: a. Question: Did Vinson & Elkins agree to any variations from, or alternatives to, Vinson & Elkins' standard billing arrangements for this engagement? Answer: Yes, Vinson & Elkins has agreed to a discount of its standard or customary billing arrangements for this engagement consistent with its historical fee arrangement with the Debtors. Vinson & Elkins will continue to adhere to these arrangements and apply the discount during the pendency of these Chapter 11 Cases. b. Question: Do any of the Vinson & Elkins professionals in this engagement vary their rate based on the geographic location of these Chapter 11 Cases? Answer: No. The hourly rates used by Vinson & Elkins in representing the Debtors are consistent with the rates that Vinson & Elkins charges other comparable chapter 11 cases, regardless of the location of the chapter 11 cases. c. Question: If Vinson & Elkins has represented the Debtors in the 12 months prepetition, disclose Vinson & Elkins' billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If Vinson & Elkins' billing rates and material financial terms have changed post-petition, explain the difference and the reasons for the difference. Answer: Vinson & Elkins first started performing work for the Debtors in May 2024 on certain employment related matters before being engaged in relation to restructuring related matters in October 2024. Since May 2024, Vinson & Elkins has historically provided the Debtors with discounted rates from its standard billing rates. Vinson & Elkins will continue to apply discounted rates during the pendency of these Chapter 11 Cases. On January 1, 2025, Vinson & Elkins adjusted its standard billing rates. In 2024, Vinson & Elkins' hourly rates for services rendered on behalf of the Debtors ranged as set forth below. Partners and Counsel $1,425 to $2,050 Associates $850 to $1,325 Paraprofessionals $570 to $650 d. Question: Have the Debtors approved Vinson & Elkins' budget and staffing plan, and, if so, for what budget period? Answer: Yes, the Debtors have approved Vinson & Elkins' prospective budget and staffing plan for the period from the Petition Date through the end of the current 13-week budget period, and the Debtors and Vinson & Elkins are developing a prospective budget and staffing plan in a reasonable effort to comply with any requests for information and additional disclosures that may be made by the U.S. Trustee. George Howard, Esq., a partner at Vinson & Elkins, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: George R. Howard, Esq. Vinson & Elkins LLP 1114 Avenue of the Americas, 32nd Floor New York, NY 10036 Tel: (212) 237-0000 Fax: (212) 237-0100 Email: ghoward@velaw.com About Danimer Scientific Inc. Danimer Scientific, Inc. is a performance polymer company specializing in bioplastic replacement for traditional petroleum-based plastics. The company is based in Bainbridge, Georgia. Danimer Scientific Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10523) on March 18, 2025. In its petition, the Debtor reports estimated assets between $500 million and $1 billion and estimated liabilities between $100 million and $500 million. Honorable Bankruptcy Judge Mary F. Walrath handles the case. The Debtor is represented by Daniel J. DeFranceschi, Esq. at Richards, Layton & Finger. DANIMER SCIENTIFIC: Taps Livingstone Partners as Investment Banker ------------------------------------------------------------------ Danimer Scientific, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to hire Livingstone Partners, LLC as their investment banker. The firm will render these services: a. review and familiarize itself with the business, operations, physical assets and financial condition of the Debtors, as well as other matters and/or analyses it deems relevant; b. assist in the preparation and negotiation of any confidentiality agreements to be entered into by third parties potentially interested in participating in the 363 Sale Process, all of which shall be subject to the approval of the Debtors; c. coordinate with any potential buyers that have expressed an interest in participating in the 363 Sale Process to develop their interest into Qualified Bids; d. develop a list of potential buyers for the Debtors that Livingstone believes in good faith to be financially qualified and potentially interested in participating in the 363 Sale Process; e. contact potential buyers on the Debtors' behalf and, as appropriate, arrange for and orchestrate meetings between potential buyers and/or investors and the Debtors; f. present to the Debtors all proposals from potential buyers and make recommendations as to the Debtors' appropriate negotiating strategy and course of conduct; g. assist in all negotiations and in all document review related to the 363 Sale Process as reasonably requested and directed by the Debtors; and h. provide such other financial advisory and investment banking services as are customary for similar transactions and as may be mutually agreed upon in advance in writing by Debtors and Livingstone. The firm will be compensated as follows: a. The Debtors agree to pay to Livingstone a fee (the "Work Fee") of $100,000. The Work Fee was due, earned and payable on the date of execution of the Engagement Letter by the Debtors, subject to approval of this Application by the Court. Livingstone shall in no event be obligated to return the Work Fee to the Debtors. b. The amount payable by the Debtors to Livingstone at the closing of a Transaction (the "Accomplishment Fee") shall be calculated as follows: i. In the event Total Consideration is less than $15,000,000, an amount equal to the greater of: (i) 3.5 percent of Total Consideration, or (ii) $350,000. Notwithstanding the foregoing sentence, in the event Total Consideration is less than $15,000,000 and the Transaction is consummated with certain parties designated to Livingstone by the Debtors that were engaged with the Debtors about a potential transaction prior to the date of the Engagement Letter (the "Designated Parties"), then the Accomplishment Fee shall be equal to $300,000 (the "Minimum Fee"); ii. If Total Consideration is greater than $15,000,000, the Accomplishment Fee shall be an amount equal to 5.0 percent of Total Consideration; iii. In the event the only Qualified Bid is a credit bid from one of the Debtors' existing lenders, the Accomplishment Fee shall be an amount equal to the Minimum Fee; iv. In the event there is more than one Qualified Bid and the prevailing bid is a credit bid by one of the Debtors' existing lenders, the Accomplishment Fee shall be equal to the amount due under subparagraph (i) or (ii) based on the Total Consideration provided by the highest and best Qualified Bid that is not a credit bid from one of the Debtors' existing lenders; c. The Accomplishment Fee shall be calculated based on the Total Consideration ("Total Consideration") paid or payable to the Debtors or their security holders in connection with, or in anticipation of, the Transaction, including amounts held back by the Buyer or placed in escrow, and shall include without limitation: i. Cash paid (including without limitation any licensing, royalty or similar fees) and securities transferred to the Debtors, lenders and/or holders of their securities, based on the market value of marketable equity securities or interests, the fair value of unmarketable equity securities or interests and the face amount of straight and convertible debt instruments or obligations issued or issuable to the Debtors or their security holders or any entity affiliated with the Debtors or their security holders, in each case whether vested or not, that are "rolled over," "carved out," or "cashed out" as part of the Transaction; ii. In the case of a sale of securities by the Debtors' security holders, all "financial debt" of the Debtors, which includes all liabilities of the Debtors other than trade payables and operating expenses accrued in the ordinary course of business; iii. In the case of a sale of assets, any and all debt, liabilities and/or obligations of the Debtors that are assumed, paid or forgiven by the buyer; iv. The amount of any credit bid made by any of the Debtors' existing lenders; v. The net present value (applying a discount rate equal to the then prevailing prime rate as quoted in The Wall Street Journal) of scheduled payments provided for in any leases by the buyer of assets owned and retained by the Debtors, their security holders or any affiliates thereof; vi. The principal amount of deferred installments of purchase price; vii. Future payments to be made to the Debtors or their security holders in connection with the Transaction, including payments that are contingent on future events, such as, without limitation, the post-closing earnings or operations of the Debtors or their underlying assets; viii. The fair market value of the Debtors' assets retained after closing (including accounts receivable and real property) or transferred to the Debtors' security holders or any affiliates thereof after the date of the Engagement Letter (including extraordinary bonuses, dividends, or other distributions of property or capital); and ix. The value of any retained or acquired interest in the Debtors or their successor, or the right to acquire such interest. d. Whether or not there is a Closing of a Transaction, the Debtors agree to reimburse Livingstone in accordance with applicable provisions of the Bankruptcy Code, for all reasonable out-of-pocket expenses and the reasonable fees and expenses of Livingstone's counsel, subject to the Debtors' prior approval of cumulative expenditures in excess of $25,000. e. In the event that Livingstone or any of its employees, officers, affiliates or agents are requested or required to appear as a witness in any action in which the Debtors' or any affiliate thereof is a party, the Debtors will reimburse Livingstone for all expenses incurred by it in connection with such person's preparation and appearance as a witness, including, without limitation, the reasonable fees and disbursements of Livingstone's or such person's legal counsel. Joseph Greenwood, a member at Livingstone Partners, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Joseph Greenwood Livingstone Partners LLC 443 N. Clark St. Chicago, IL 60654 Telephone: (312) 670-5913 Email: greenwood@livingstonepartners.com About Danimer Scientific Inc. Danimer Scientific, Inc. is a performance polymer company specializing in bioplastic replacement for traditional petroleum-based plastics. The company is based in Bainbridge, Georgia. Danimer Scientific Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10523) on March 18, 2025. In its petition, the Debtor reports estimated assets between $500 million and $1 billion and estimated liabilities between $100 million and $500 million. Honorable Bankruptcy Judge Mary F. Walrath handles the case. The Debtor is represented by Daniel J. DeFranceschi, Esq. at Richards, Layton & Finger. DANIMER SCIENTIFIC: Taps Richards Layton & Finger as Co-Counsel --------------------------------------------------------------- Danimer Scientific, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to hire Richards, Layton & Finger, P.A. as co-counsel. The firm's services include: a. advising the Debtors of their rights, powers, and duties as debtors and debtors in possession under chapter 11 of the Bankruptcy Code; b. preparing on behalf of the Debtors motions, applications, answers, orders, reports, and papers in connection with the administration of the Debtors' estates; c. taking all necessary actions to protect and preserve the Debtors' estates, including the prosecution of actions on the Debtors' behalf, the defense of any actions commenced against the Debtors in these Chapter 11 Cases, the negotiation of disputes in which the Debtors are involved, and the preparation of objections to claims filed against the Debtors' estates; d. assisting with any sale or sales of assets, including preparing any necessary motions and papers related thereto; e. assisting in preparing the Debtors' disclosure statement and any related motions, pleadings, or other documents necessary to solicit votes on any chapter 11 plan; f. assisting in preparing any chapter 11 plan; g. prosecuting on behalf of the Debtors any chapter 11 plan and seeking approval of all transactions contemplated therein and in any amendments thereto; and h. performing all other necessary and desirable legal services in connection with the Chapter 11 Cases. The firm will be paid as follows: Directors $1,175 to $1,500 an hour Counsel $1,000 an hour Associates $575 to $875 an hour Paraprofessionals $425 an hour The firm received a retainer in the amount of $517,380. Consistent with the Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed Under 11 U.S.C. Sec. 330 by Attorneys in Larger Chapter 11 Cases Effective as of November 1, 2013, I submit the following information: a. Richards Layton did not agree to any variations from, or alternatives to, its standard or customary billing arrangements for this engagement; b. None of Richards Layton's professionals included in this engagement have varied their rate based on geographic location for these Chapter 11 Cases; c. Richards Layton has advised the Debtors in connection with their restructuring efforts and in contemplation of these Chapter 11 Cases since on or about December 2, 2024. The billing rates, except for Richards Layton's standard and customary periodic rate adjustments as set forth above, and material financial terms have not changed post-petition from the prepetition arrangement; and d. Richards Layton, in conjunction with the Debtors, is developing a prospective budget and staffing plan for these Chapter 11 Cases. Daniel DeFranceschi, Esq., a director of Richards, Layton & Finger, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Daniel J. DeFranceschi, Esq. Richards, Layton & Finger, P.A. One Rodney Square 920 North King Street Wilmington, DE 19801 Tel: (302) 651-7700 Fax: (302) 651-7701 Email: defranceschi@rlf.com About Danimer Scientific Inc. Danimer Scientific, Inc. is a performance polymer company specializing in bioplastic replacement for traditional petroleum-based plastics. The company is based in Bainbridge, Georgia. Danimer Scientific Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10523) on March 18, 2025. In its petition, the Debtor reports estimated assets between $500 million and $1 billion and estimated liabilities between $100 million and $500 million. Honorable Bankruptcy Judge Mary F. Walrath handles the case. The Debtor is represented by Daniel J. DeFranceschi, Esq. at Richards, Layton & Finger. DARE BIOSCIENCE: Nasdaq Grants Compliance Extension to Aug. 12 -------------------------------------------------------------- Dare Bioscience, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company received a letter from The Nasdaq Stock Market LLC informing the Company that the Nasdaq Hearings Panel determined to grant its request for an extension until August 12, 2025 to demonstrate compliance with Nasdaq Listing Rule 5550(b) by demonstrating compliance with either Nasdaq Listing Rule 5550(b)(1) or 5550(b)(2). Nasdaq Listing Rule 5550(b)(1) requires a company to maintain stockholders' equity of at least $2.5 million, which it refers to as the "Stockholders' Equity Rule," and Nasdaq Listing Rule 5550(b)(2) requires a company to have a minimum market value of listed securities of $35 million, which the company refers to as the "Minimum MVLS Rule." A company will satisfy the continued listing requirement under Nasdaq Listing Rule 5550(b) if it meets either the Stockholders' Equity Rule or the Minimum MVLS Rule. As previously reported, Dare Bioscience have not been in compliance with Nasdaq Listing Rule 5550(b) since August 2024, and it presented its multi-step plan for regaining compliance to the Panel on March 25, 2025. The Company's Plan includes, among other things, satisfying the Stockholders' Equity Rule in lieu of the Minimum MVLS Rule and conducting certain capital raising activities to increase the Company's stockholders' equity in excess of $2.5 million by April 30, 2025 and to increase it further by July 15, 2025. The Panel's determination to grant the Company's request for an extension is subject to certain conditions, including, among others, that it makes progress in executing against its Plan by the dates specified in the Plan and that on or before August 12, 2025: (a) Dare publicly discloses transactions it undertook to increase the Company's stockholders' equity and provide an indication of its stockholders' equity following such transactions, and (b) Dare provides the Panel with an update on its fundraising plans and income projections for the next 12 months. Dare said, "We intend to publicly disclose or provide, as the case may be, the information required by the Panel's determination within the timeframe required thereby. While we are actively pursuing a range of initiatives aimed at executing against our Plan, no assurances can be given that we will be successful in doing so or that we will satisfy either the Stockholders' Equity Rule or the Minimum MVLS Rule by August 12, 2025. If we fail to execute on our Plan to the Panel's satisfaction and remain non-compliant with Nasdaq's continued listing requirements, the Panel may take action to delist our common stock after April 30, 2025, even though the Panel granted us conditional continued listing until August 12, 2025. As is customary, the Panel also reserved the right to reconsider the terms of the extension it granted based on any event, condition or circumstance that exists or develops that would, in the opinion of the Panel, make continued listing of our common stock inadvisable or unwarranted. See the risk factor titled, "If we fail to regain and maintain compliance with the continued listing requirements of The Nasdaq Capital Market, our common stock could be suspended and delisted, which could, among other things, limit demand for our common stock, substantially impair our ability to raise additional capital and have an adverse effect on the market price of, and the efficiency of the trading market for, our common stock," and our other risk factors in Item 1A of Part I of our annual report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2025." About Dare Bioscience Dare Bioscience, Inc. is a biopharmaceutical company committed to advancing innovative products for women's health. The Company's mission is to identify, develop, and bring to market a diverse portfolio of differentiated therapies that prioritize women's health and well-being, expand treatment options, and improve outcomes, primarily in the areas of contraception, vaginal health, reproductive health, menopause, sexual health, and fertility. Irvine, California-based Haskell & White LLP, the Company's auditor since 2023, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has recurring losses from operations and is dependent on additional financing to fund operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. DC CHOPPERS: Section 341(a) Meeting of Creditors on May 20 ---------------------------------------------------------- On April 25, 2025, DC Choppers LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Arkansas. According to court filing, the Debtor reports between $100,000 and $500,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on May 20, 2025 at 09:00 AM at Chapter 11 Tele-Meeting. About DC Choppers LLC DC Choppers LLC is a motorcycle repair and customization shop based in Hot Springs National, Arkansas that specializes in motorcycle repairs and custom modifications, particularly focusing on chopper-style motorcycles. DC Choppers LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ark.Case No. 25-70696) on April 25, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge Richard D. Taylor handles the case. The Debtor is represented by Marc Honey, Esq. at Honey Law Firm, P.A. DECO GROUP: Gets Final OK to Use Cash Collateral ------------------------------------------------ Deco Group, LLC received final approval from the U.S. Bankruptcy Court for the Southern District of Texas to use cash collateral. The final order authorized the company to use cash collateral to finance operations in accordance with its budget. The 30-day budget projects total expenses of $175,941.61. As protection, creditors were granted replacement liens on post-petition assets, including accounts receivable, contract rights and deposit accounts, with the same priority as their pre-bankruptcy liens. About Deco Group LLC Deco Group, LLC runs and oversees both a quick-service restaurant and a full-service restaurant business in Bryan, Texas. Deco Group sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 25-31252) on March 4, 2025, listing $106,682 in assets and $2,238,074 in debts. John Mathews, Deco Group manager, signed the petition. Judge Jeffrey P. Norman oversees the case. Robert C. Lane, Esq., at the Lane Law Firm, represents the Debtor as bankruptcy counsel. DESTINATIONS TO RECOVERY: No Patient Care Concern, PCO Report Says ------------------------------------------------------------------ Tamar Terzian, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the Central District of California her second report regarding the quality of patient care provided at Destinations to Recovery, LLC's treatment facilities. In the report which covers the period February 7 to April 7, 2025, the PCO disclosed a site visit to the the three residential facilities Calenda, Hatteras, and Ladrillo. The San Diego locations have no patients due to the Debtor not having enough patients and as such the PCO did not visit locations with no patients. Debtor will notify PCO if they have more patients in the other facilities. The PCO finds that the outpatient services are above the requisite standard of care. She will review each treatment plan, any incident reports, and discharge planning. There are no pending complaints or incidents. The PCO finds that the company provides individualized treatment plans and individualized discharge planning. The PCO observed staff being trained and reviewed employee records. She finds that the company has more than sufficient staff to add more patients. Destinations to Recovery is utilizing this time to train its staff and prepare for new patients. The PCO observed that all medication was properly labeled and stored for the patients. For each location there is a designated staff area that had the medication and files for each participant. Ms. Terzian reviewed each log maintained on site at the facility and that each patient's belongings were stored in separate baskets in a locker that only responsible parties could access. The PCO noted that the company also provides an educational component to these various patients who are in secondary school. The PCO has the following observations for each residential location: * The First Residential Facility of Hatteras Street is licensed for six patients and during the time of the visit there were six patients at this location. The safety binders are properly updated, and the office was locked only available for staff. The medications are properly labeled with two patients only on medication. All kitchen knives and cleaning products are locked with staff having the only access to the locked area. No concerns noted. * The Second Residential Facility of Ladrillo Street has four patients present at the time of PCO's visit. The home was clean and fully supplied in the kitchen for patients' meals and care. All exits and emergency signs were properly placed. All exits and emergency signs were properly placed. PCO checked each bin and all medications are current. PCO reviewed the medication logs which also are properly maintained and current. No concerns noted. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=hKY7W5 from PacerMonitor.com. The ombudsman may be reached at: Tamar Terzian, Esq. Email: tterzian@hansonbridgett.com Hanson Bridgett, LLP 601 W. 5th Street, 3rd Floor Los Angeles, CA 90071 Tel: (323) 210-7747 About Destinations to Recovery Destinations to Recovery, LLC, operates an IPO and PHO rehabilitation center located at 20951 Burbank Blvd., Woodland Hills, Calif. Destinations to Recovery filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 24-11877) on November 8, 2024, with up to $1 million in both assets and liabilities. Mark Sharf, Esq., a practicing attorney in Los Angeles, serves as Subchapter V trustee. Judge Martin R. Barash oversees the case. The Debtor is represented by Eric Bensamochan, Esq., at The Bensamochan Law Firm, Inc. Tamar Terzian is the patient care ombudsman appointed in the Debtor's case. DOS POTRILLOS: To Sell Wilmington Property to Miguel Huerta ----------------------------------------------------------- Dos Potrillos LLC seeks permission from the U.S. Bankruptcy Court for the Central District of California, to sell Real Property, free of liens, interests, and encumbrances. The Debtor's Property is comprised of two parcels of underdeveloped land commonly known as 902 Nicholson Avenue, Wilmington, CA 90744. The Debtor seeks to sell the Property on an "as-is, where-is" basis to Miguel Huerta, an individual unrelated to the Debtor, for the sum of $2,300,000, or to such other person or entity as may successfully overbid at the hearing. The Property will be sold to buyer at the sale price through escrow for sale of the Property and on the terms and conditions set in the agreement executed by the buyer. The Debtor proposes to sell the Property in the best interest of the estate on the basis that the sale price is fair and reasonable. The minimum overbid of the Property will be $40,000 above the present offer and any subsequent overbids will be at least $20,000 over the preceding offer. A minimum deposit of $200,000 will be required, and overbidders are required to submit to the Counsel for Debtor not later than 48 hours before the hearing date. About Dos Potrillos LLC Dos Potrillos LLC is engaged in the business of leasing real estate properties. Dos Potrillos LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-13141) on April 16, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $100,000 and $500,000. The Debtor is represented by Moses S. Bardavid, Esq. at LAW OFFICES OF MOSES S. BARDAVID. DR. JOHN C. DRAGON: Gets Interim OK to Use Cash Collateral ---------------------------------------------------------- John C. Dragon, O.D. & Associates, PLC got the green light from the U.S. Bankruptcy Court for the Eastern District of Virginia, Norfolk Division, to use cash collateral. The order penned by Judge Stephen St-John authorized the Debtor's interim use of cash collateral and granted protection to PNC Bank, the Debtor's primary secured lender, in the form of a replacement lien on all of the Debtor's post-petition assets and a monthly payment of $13,000. The final hearing is set for May 29, at 11:00 a.m. The Debtor's business, a long-standing optometry practice in Norfolk, Virginia, generates income from insurance claims and patient payments and reported approximately $2.8 million in revenue for 2024. The Debtor's assets include limited cash (just over $8,600 in various bank accounts), $16,490 in receivables from patients, and about $414,000 in pending insurance claims. Its primary liabilities include loans from PNC Bank totaling over $1.29 million, secured by a lien on all business assets. Southern Eyecare also lists several other creditors with UCC filings, but argues that PNC holds a superior, perfected lien and the other creditors' claims are unsecured. About Dr. John C. Dragon, OD & Associates Dr. John C. Dragon, OD & Associates, PLC offers a range of optometric services, including routine eye exams, contact lens fittings, treatment for dry eyes, emergency care, and co-management of LASIK and cataract surgeries. The practice also provides designer eyeglasses and prescription sunglasses. Dr. John C. Dragon conducts business under the name Southern Eyecare Associates and is located in Norfolk, Va. Dr. John C. Dragon sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 25-70854) on April 2, 2025. In its petition, the Debtor reported assets between $100,000 and $500,000 and liabilities between $1 million and $10 million. The Debtor is represented by Paul Driscoll, Esq., at Zemanian Law Group. E.W. SCRIPPS: Refinances Revolver and 2026, 2028 Term Loans ----------------------------------------------------------- The E.W. Scripps Company has successfully completed a series of previously announced refinancing transactions, which include: * Refinance of approximately $110.8 million aggregate principal amount of existing tranche B-2 term loans with new tranche B-2 term loans due 2028, with remaining existing tranche B-2 term loans repaid in cash, including with proceeds from a new accounts receivable securitization facility, approximately $223.5 million of proceeds from new tranche B-2 term loans funded by certain participating lenders and cash on hand (including from drawings under our revolving credit facilities); * Refinance of approximately $540.2 million (99.8%) aggregate principal amount of existing tranche B-3 term loans with $200 million new tranche B-2 term loans due 2028 and $340.2 million new tranche B-3 term loans due 2029, with remaining existing tranche B-3 term loans repaid in cash with cash on hand (including from drawings under our revolving credit facilities); * Replacement of the existing revolving credit facility with a new revolving credit facility with aggregate commitments of up to $208 million due July 2027 and another new non-extended revolving credit facility with aggregate commitments of up to $70 million due January 2026; and * Entrance into a new accounts receivable securitization facility with aggregate commitments of up to $450 million. As a result of the transactions: * No existing B-2 term loans, existing B-3 term loans or existing revolving commitments remain outstanding; * Scripps has $545.2 million aggregate principal amount of new tranche B-2 term loans outstanding and $340.2 million aggregate principal amount of new tranche B-3 term loans outstanding; and * Scripps will have total aggregate revolving commitments of up to $278 million, inclusive of the new non-extended revolving credit facility set forth above. The completion of the transactions strengthens the balance sheet by extending maturities and providing the company flexibility to continue execution of key strategic initiatives. Simpson Thacher & Bartlett LLP served as counsel and Perella Weinberg Partners served as financial advisor to the company. Davis Polk & Wardwell LLP served as counsel and Moelis & Company LLC served as exclusive financial advisor and investment banker to an ad hoc group of certain of existing B-2 and B-3 lenders. Cahill Gordon & Reindel LLP acted as counsel to JPMorgan Chase Bank, N.A., as administrative agent for the new credit facilities and left lead arranger with respect to the new revolving credit facility. Mayer Brown LLP served as counsel to PNC Bank, National Association, as administrative agent and a lender with respect to the new accounts receivable securitization facility. Orrick Herrington & Sutcliffe LLP served as counsel to KKR Credit Advisors (US) LLC, on behalf of itself, certain of its affiliates and its or their managed funds and accounts, as a lender with respect to the new accounts receivable securitization facility. The Company filed a Form 8-K with the Securities and Exchange Commission that contain further details regarding the completion of the transactions, available at https://tinyurl.com/yc7vhfjx About Scripps The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company focused on creating a better-informed world. As one of the nation's largest local TV broadcasters, Scripps serves communities with quality, objective local journalism and operates a portfolio of more than 60 stations in 40+ markets. Scripps reaches households across the U.S. with national news outlets Scripps News and Court TV and popular entertainment brands ION, ION Plus, ION Mystery, Bounce, Grit and Laff. Scripps is the nation's largest holder of broadcast spectrum. Scripps is the longtime steward of the Scripps National Spelling Bee. Founded in 1878, Scripps' long-time motto is: "Give light and the people will find their own way." * * * In Apr. 2025, S&P Global Ratings raised our Company credit rating on The E.W. Scripps Co. to 'CCC+' from 'SD' (selective default). Moreover, Fitch Ratings has downgraded The E.W. Scripps Company's Long-Term Company Default Ratings (IDR) to 'RD' from 'CCC-'. Fitch has also downgraded the issue-level ratings of the old senior secured term loan Bs to 'C' with a Recovery Rating of 'RR2' from 'CCC+'/'RR2', and subsequently has withdrawn them. In addition, Fitch has assigned ratings of 'CCC+'/'RR1' to the new senior secured TLBs and revolving credit facilities, affirmed the senior secured notes at 'CCC+' with a revised recovery rating of 'RR1' from 'RR2', and affirmed the senior unsecured notes at 'C'/'RR6'. Fitch has also removed from Rating Watch Negative the ratings of the secured facilities subject to the DDE. Fitch has subsequently upgraded Scripps' IDR to 'CCC-' following the closure of its transaction support agreement (TSA) on April 10, 2025. This upgrade reflects a slightly improved debt maturity profile, with the 2027 unsecured notes as the next major maturity and elevated two-year average EBITDA leverage, which Fitch expects to rise further in a non-political year, with a challenging maturity schedule. ELITE SCHOOL: Court Extends Cash Collateral Access to May 31 ------------------------------------------------------------ Elite School Bus Company, LLC received third interim approval from the U.S. Bankruptcy Court for the District of Maryland, Baltimore Division, to use cash collateral. The third interim order signed by Judge David Rice authorized the company to use cash collateral to pay its expenses for the period from May 1 to 31. The company projects total operational expenses of $28,813.76 for the week ending May 10; $67,740.02 for the week ending May 17; $16,931.00 for the week ending May 24; and $73,734.76 for the week ending May 31. The U.S. Small Business Administration and the company's junior lien creditors assert interest in the cash collateral, which consists of accounts receivables. As protection, the SBA and the junior lien creditors were granted a replacement lien on and security interest in the company's post-petition cash collateral. In addition, the SBA will receive a monthly payment of $2,481. A further hearing is scheduled for May 27. 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. ESG CLEAN: Seeks Chapter 11 Bankruptcy in Massachusetts ------------------------------------------------------- On April 30, 2025, ESG Clean Energy LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Massachusetts. 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 ESG Clean Energy LLC ESG Clean Energy LLC develops distributed power generation systems that integrate advanced carbon capture technology. Based in West Springfield, Massachusetts, the Company utilizes natural gas and biogas to produce electricity while converting emissions into usable byproducts such as distilled water and ethanol. ESG Clean Energy LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-30267) on April 30, 2025. In its petition, the Debtor reports estimated assets between $10 million and $50 million and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Elizabeth D. Katz handles the case. The Debtor is represented by James P. Ehrhard, Esq. ESG-H2 LLC: Seeks Chapter 11 Bankruptcy in Massachusetts -------------------------------------------------------- On April 30, 2025, ESG-H2 LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Massachusetts. 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 ESG-H2 LLC ESG-H2 LLC, based in West Springfield, Massachusetts, focuses on developing zero-carbon power generation systems. The Company specializes in utilizing natural gas to generate electricity while capturing nearly all carbon dioxide and water vapor, converting them into commercially viable products. ESG-H2 LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. ) on April 2, 2025. In its petition, the Debtor reports estimated assets between $10 million and $50 million and estimated liabilities between $1 million and $10 million. The Debtor is represented by James P. Ehrhard, Esq. EVANS INVESTMENT: Seeks Subchapter V Bankruptcy in California ------------------------------------------------------------- On April 30, 2025, Evans Investment Partners LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of California. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Evans Investment Partners LLC Evans Investment Partners LLC is a limited liability company. Evans Investment Partners LLC sought relief under Subchapter V o Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-30342) on April 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by E. Vincent Wood, Esq. at SHEPHERD & WOOD LLP. F21 OPCO: Closes All 354 Leased Stores in the U.S. -------------------------------------------------- Greta Cross and Jonathan Limehouse of USA Today report that Forever 21 closes all 354 of its leased U.S. stores on May 1, 2025 with some already shutting down in April 2025, USA Today reports. "Forever 21 remains one of the most recognizable fast-fashion brands globally, with strong U.S. roots and a promising future," said Jarrod Weber, global president of lifestyle at Authentic Brands, in a March interview. "As retail evolves, Forever 21 is adjusting its strategy to strike the right balance between physical stores, e-commerce, and wholesale." According to CNBC, the company cited intense competition from fast-fashion online retailers Shein and Temu as a major factor in its decline. It has begun liquidation sales and is expected to wind down its U.S. operations entirely. A notice on Forever 21's website confirmed the Chapter 11 bankruptcy filing, stating that increased costs and overseas competition had rendered its current business model unsustainable. The company noted that while U.S. store closures are underway, locations will remain open for now, and online orders will still be fulfilled. Gift cards and store credits will be valid through April 15, 2025. All sales, both in-store and online, are now final, and the company has stopped issuing new gift cards and credit cards. The statement emphasized that the restructuring only affects U.S. operations. International stores will continue to operate as usual, USA Today reports. About F21 OpCo F21 OpCo, LLC is the operator of Forever 21 stores and licensee of the Forever 21 brand in the United States. F21 OpCo sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10469) on March 16, 2025. In its petition, the Debtor reports estimated assets between $100 million and $500 million and estimated liabilities between $1 billion and $10 billion. The Debtor's proposed advisors include Paul, Weiss, Rifkind, Wharton & Garrison LLP and Young Conaway Stargatt & Taylor, LLP as legal counsel, BRG as financial advisor, RCS Real Estate Advisors as real estate advisor, SSG Capital Advisors, LLC as investment banker, and Reevemark as communications advisor. 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 Debtor 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. FIGUEROA TELEPHONE: Taps Hatillo Law Office as Legal Counsel ------------------------------------------------------------ Figueroa Telephone Construction Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Hatillo Law Office, PSC as its legal counsel. The firm will advise the Debtor of its powers and duties in the continued operation of its business and management of its property; prepare applications, reports and other legal papers; and provide other legal services in connection with the Debtor's Chapter 11 case. The hourly rates of the firm's counsel and staff are as follows: Jaime Rodriguez-Perez, Esq. $250 Paralegals $50 Law Clerks $50 The firm received a retainer of $8,000 from the Debtor. Jaime Rodriguez-Perez, Esq., a member of Hatillo Law Office, disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Jaime Rodriguez-Perez, Esq. Hatillo Law Office, PSC P.O. Box 678 Hatillo, PR 00659 Telephone: (787) 262-4848 Email: hatillolawoffice@yahoo.com About Figueroa Telephone Construction Inc. Figueroa Telephone Construction Inc. specializes in the construction and maintenance of telecommunication systems, including both aerial and underground installations. The Company's services encompass fusion and splicing of fiber optic networks, as well as the construction and installation of handholes and manholes for cables. Figueroa Telephone Construction Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-01506) on April 2, 2025. In its petition, the Debtor reports total assets of $499,203 and total liabilities of $1,131,80. The Debtor is represented by Jaime Rodriguez Perez, Esq. at HATILLO LAW OFFICE, PSC. FIRST CLASS: Gets Interim OK to Use Cash Collateral --------------------------------------------------- First Class Moving Systems, Inc. and its affiliates got the green light from the U.S. Bankruptcy Court for the Middle District of Florida to use cash collateral. The interim order penned by Judge Roberta Colton authorized the companies' interim use of cash collateral pending a further hearing to be conducted on May 15. Creditors with a security interest in cash collateral including the U.S. Small Business Administration, Valley National Bank and De Lage Landen Financial Services, Inc. will be granted a post-petition lien on the cash collateral as protection. As additional protection, the companies were ordered to keep the secured creditors' collateral insured. Valley National Bank is represented by: Andrew W. Lennox, Esq. Casey Reeder Lennox, Esq. Lennox Law, P.A. P.O. Box 20505 Tampa, FL 33622 Tel: 813-831-3800 Fax: 813-749-9456 alennox@lennoxlaw.com clennox@lennoxlaw.com About First Class Moving Systems Inc. First Class Moving Systems Inc. is a professional moving company offering residential and commercial moving services, as well as packing, logistics, and storage solutions. It has locations in Tampa, Miami/Fort Lauderdale; Gulfport, Miss.; Orlando, Fla.; and Bound Brook, N.J. First Class Moving Systems and its affiliates filed Chapter 11 petitions (Bankr. M.D. Fla. Lead Case No. 25-02243) on April 11, 2025. In its petition, First Class Moving Systems reported between $1 million and $10 million in both assets and liabilities. Judge Roberta A. Colton handles the cases. The Debtors are represented by Scott A. Stichter, Esq., and Amy Denton Mayer, Esq., at Stichter, Riedel, Blain & Postler, P.A. FLORES PEDIATRICS: Unsecureds to Get Share of Income for 36 Months ------------------------------------------------------------------ Flores Pediatrics, LLC filed with the U.S. Bankruptcy Court for the Western District of Oklahoma a Plan of Reorganization dated March 31, 2025. The Debtor is a pediatric clinic in Yukon, Oklahoma. Debtor filed bankruptcy because Debtor was unable to meet its financial obligations due to reduced and delayed payments that was caused by restructure of Medicaid payments. The Debtor's income has now increased and Debtor is now able to meet its obligations. Debtor proposes this plan of reorganization to restructure its debt and exit bankruptcy to continue operating. The Debtor will be the disbursing agent for all post-confirmation plan payments. The Subchapter V Trustee, Stephen Moriarty, will not disburse payments on behalf of Debtor. The first monthly payment under the Plan will be due thirty days from the Effective Date of the Plan. This Plan of Reorganization proposes to pay Debtor's creditors from the revenue generated by Debtor. The Debtor will pay all of its projected disposable income, if any, over thirty-six months to the general unsecured pool of creditors. If Debtor has monthly disposable income during the 36-month period, it will first pay the disposable income to its secured creditors, then once the secured creditors are paid in full, Debtor will pay its disposable income to the unsecured pool of creditors through month thirty-six. Javier Flores is fifty percent owner of the Debtor and Catherine Flores is fifty percent owner of the Debtor. All owners will retain their equity interests in the newly reorganized Debtor. The owners of Debtor are employed by Flores Consulting, LLC. Debtor pays Flores Consulting, LLC a monthly consulting fee, which includes the salary of the owners of Debtor. Debtor also pays for the owners' life insurance policies as part of the owners compensation package. The Debtor will fund the Plan from its operations. A full-text copy of the Plan of Reorganization dated March 31, 2025 is available at https://urlcurt.com/u?l=qyHm94 from PacerMonitor.com at no charge. Counsel to the Debtor: Gary D. Hammond, Esq. Hammond Law Firm 512 Nw 12th Street Oklahoma City, OK 73103 Tel: (405) 216-0007 Fax: (405) 232-6358 Email: Gary@okatty.com About Flores Pediatrics Flores Pediatrics, LLC, is a pediatric clinic in Yukon, Oklahoma. The Debtor sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Okla. Case No. 24-13144) on Nov. 1, 2024, listing under $1 million in both assets and liabilities. Judge Sarah A. Hall oversees the case. The Blackwood Law Firm, PLLC, serves as the Debtor's bankruptcy counsel. FRANCIS TRUST: Hires Drum and Drum Real Estate as Broker -------------------------------------------------------- Francis Trust LLC seeks approval from the U.S. Bankruptcy Court for the District of Maine to hire Drum and Drum Real Estate as real estate broker. The broker will assist the Debtor in selling real property located at 25 Southside Road and 4 Penniman Road, Bristol, Maine. The firm will receive a commission of 3 percent of the gross sales price. As disclosed in the court filings, Drum and Drum does not hold or represent an interest adverse to the estate and that are "disinterested persons," as that term is defined in 11 U.S.C. Sec. 101(14). The firm can be reached through: Peter Christine Drum and Drum Real Estate 17 Bristol Road Damariscotta, ME 04543 Phone: (207) 563-1772 Fax: (207) 592-2951 Email: peter.christine@icloud.com About Francis Trust LLC Francis Trust LLC operates The Moorings of New Harbor, a lodging complex situated in New Harbor, Maine. This property offers a variety of accommodations, including private units in historic homes with harbor and ocean views. Amenities at The Moorings include an indoor heated pool, hot tub, tennis courts, and free Wi-Fi. Some units are pet-friendly and feature full kitchens, fireplaces, and expansive decks. Francis Trust LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Me. Case No. 25-10064) on April 15, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Peter G. Cary handles the case. The Debtor is represented by Tanya Sambatakos, Esq. at MOLLEUR LAW FIRM. FRANCIS TRUST: Seeks to Hire Molleur Law Office as Attorney ----------------------------------------------------------- Francis Trust LLC seeks approval from the U.S. Bankruptcy Court for the District of Maine to hire Molleur Law Office as attorneys. The firm's services include: (a) consult regarding bankruptcy; (b) prepare the Petition and Schedules necessary to commence the case; (c) prepare the Chapter 11 Plan; (d) attend the status conference, section 341 meetings and Rule 2004 examinations; (e) negotiate with creditors regarding the Plan; (f) attend at court hearings for confirmation of the Debtor's Plan; and (g) prosecute and defend any contested matters, motions or adversary proceedings in the Bankruptcy Court necessary for the successful conclusion of the Debtor's Chapter 11 case. The hourly rates of the firm's counsel and staff are as follows: Tanya Sambatakos, Attorney $375 Melissa Bourque, Paralegal $130 Deana Kariotis, Paralegal $130 In addition, the firm will seek reimbursement for expenses incurred. The firm received a pre-petition retainer in the total amount of $12,500 from the Debtor. Ms. Sambatakos disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Tanya Sambatakos, Esq. Molleur Law Office 190 Main Street, 3rd Floor Saco, ME 04072 Telephone: (207) 283-3777 Email: tanya@molleurlaw.com About Francis Trust LLC Francis Trust LLC operates The Moorings of New Harbor, a lodging complex situated in New Harbor, Maine. This property offers a variety of accommodations, including private units in historic homes with harbor and ocean views. Amenities at The Moorings include an indoor heated pool, hot tub, tennis courts, and free Wi-Fi. Some units are pet-friendly and feature full kitchens, fireplaces, and expansive decks. Francis Trust LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Me. Case No. 25-10064) on April 15, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Peter G. Cary handles the case. The Debtor is represented by Tanya Sambatakos, Esq. at MOLLEUR LAW FIRM. FRANCO HAULING: Seeks to Tap O. Allan Fridman as Bankruptcy Counsel ------------------------------------------------------------------- Franco Hauling, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Illinois to employ O. Allan Fridman, Esq., an attorney practicing in Northbrook, Illinois, to handle its Chapter 11 case. The attorney will be billed at his hourly rate of $485 plus out-of-pocket expenses. The attorney will receive $10,000 as retainer from the Debtor. Mr. Fridman disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The attorney can be reached at: O. Allan Fridman, Esq. 555 Skokie Blvd. Suite 500 Northbrook, IL 60062 Telephone: (847) 412-0788 Email: allan@fridlg.com About Franco Hauling LLC Franco Hauling, LLC is a truck hauling Company that haul materials and debris from work sites to designates locations. Franco is a veteran owned female controlled company. Franco was formerly a Union Contractor, but the contract was terminated by the Suburban Teamsters. Franco is currently operating a non-union company. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-03520) on March 7, 2025. In the petition signed by July Franco, manager, the Debtor disclosed up to $100,000 in assets and up to $1 million in liabilities. Judge Janet S. Baer oversees the case. O. Allan Fridman, Esq., at Law Office of Allan Fridman represents the Debtor as counsel. FRUGALITY INC: Seeks to Hire English Accounting as Accountant ------------------------------------------------------------- Frugality Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Florida to hire English Accounting and Tax Service, Inc. as accountant. The firm will provide tax advice and accounting services. The firm will charge an hourly rate of $180. Thomas English of English Accounting and Tax Service assured the court that his firm is a "disinterest person" within the meaning of 11 U.S.C. 101(14). The firm can be reached through: Thomas English English Accounting and Tax Service, Inc. 3407 Edinborough Ct. Pensacola, FL 32514 About Frugality Inc. Frugality Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-30177) on March 3, 2025, with $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Judge Jerry C. Oldshue Jr. presides over the case. Byron Wright, III, Esq. at Bruner Wright, P.A. represents the Debtor as legal counsel. FXI HOLDINGS: S&P Downgrades ICR to 'CCC' on Liquidity Pressures ---------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on U.S.-based producer of engineered polyurethane foam solutions, FXI Holdings Inc. to 'CCC' from 'CCC+'. S&P also lowered its issue-level ratings on its senior secured debt to 'CCC' from 'CCC+'. The '4' recovery rating on its senior secured debt remains unchanged. The negative outlook reflects the company's minimal liquidity cushion and at least a one in three chance for a downgrade in the next 12 months if liquidity deteriorates further or the company undertakes a debt restructuring, which S&P could view as distressed. S&P said, "We expect FXI will continue to generate negative FOCF and maintain a highly leveraged financial risk profile in 2025. In 2024, FXI's consolidated operating performance was weaker than our previous expectations primarily due to continued demand softness and competition in the original equipment manufacturer (OEM) bedding and furniture segment, partially offset by share gains in its retail business. This resulted in weaker than expected FOCF in 2024. We anticipate this period of soft demand in the home furnishings market to persist through most of 2025 given macroeconomic uncertainty and low consumer confidence limiting discretionary spending. We also note the recent acquisition of the largest U.S. bedding retailer by the largest bedding manufacturer and will continue to monitor any adverse impacts on industry competitive dynamics. At the same time, we expect FXI, with its largely domestic manufacturing footprint, to somewhat benefit from the current tariff environment as cost competitiveness of lower cost imported mattresses decreases relative to domestic production in the U.S. Overall, we expect FXI's EBITDA to improve modestly in 2025 driven by new product launches and share gains in its retail business, but believe high debt servicing requirements will result in negative FOCF in 2025—albeit improving relative to 2024. We expect its S&P Global Ratings-adjusted debt to EBITDA to remain unsustainable between 9x-10x on a weighted average basis." FXI has continued to perform relatively well in its retail business, which largely comprises bedding products including mattresses, toppers and pillows, alongside other fast-growing categories such as play furniture. The company expanded its share with new products and programs in 2024. Meanwhile, volumes in the OEM bedding and furniture segment improved in the second half of 2024 as the company focused on maintaining market share but lower average selling prices (ASP) led to weaker segment margins. S&P said, "We expect weak liquidity and challenged covenant compliance over the next 12 months, with potential relief from several cash and liquidity management measures. The company is focused on conserving its liquidity position, and we expect it will explore multiple liquidity improvement measures including tighter working capital management and certain ad hoc cash items, which we expect will support liquidity in the next few months. We believe FXI has the ability and willingness to meet its upcoming $76 million semiannual interest payments on the senior secured notes on May 15, 2025. However, in our base case we expect an increased risk of a liquidity shortfall approaching the November 2025 interest payment with its liquidity sources well below 1x its uses, unless certain cash management measures materialize. Our liquidity assessment factors in the minimum availability covenant on the company's ABL facility that effectively limits the amount it can draw. "FXI has elevated refinancing risk with its capital structure scheduled to become current later this year. The company has about $1.2 billion in senior secured notes--which will become current in November 2025--and a $187 million asset-based lending (ABL) facility that will mature on the earlier of Dec. 15, 2026 and 91 days before the notes maturity. We continue to believe FXI's financial commitments are unsustainable given current earnings and free cash flows and that it will eventually need to address these maturities in potentially challenging credit markets. Based on the company's current credit profile including high leverage and tight liquidity amid a weak operating environment, we believe there is an increased likelihood of a potential distressed debt restructuring or an event of default in the next 12 months. "The negative outlook on FXI reflects the potential for further deterioration in its liquidity and pressure on its financial covenant over the next 12 months, particularly after the semi-annual interest payments on its senior notes each year. We expect FOCF to remain negative in 2025 due to high debt servicing requirements amid continued weak demand in the OEM bedding and furniture segments, despite better performance and commercial execution in the retail bedding business. We anticipate the company's S&P Global Ratings-adjusted debt to EBITDA metric to be between 9x-10x on a weighted-average basis. The negative outlook also reflects the risk of a distressed debt transaction given its capital structure becomes current in the second half of 2025." S&P could lower its rating on FXI over the next few quarters if: -- Earnings deteriorate further as a result of weaker demand across key end markets of bedding and furniture due to a prolonged slowdown in consumer spending; -- Free cash flow remains materially negative and liquidity declines further; -- It breaches its minimum excess availability covenant under its ABL facility; -- It skips an interest payment; or -- It conducts a debt restructuring transaction, which we would likely view as distressed given current liquidity profile and debt trading levels. Although unlikely, S&P could take a positive action in the next 12 months if: -- FXI's revenues and EBITDA increase more than our expectations on successful commercial execution or a faster-than-anticipated end-market demand recovery; and -- FXI's liquidity improves significantly on positive free cash flow generation or other cash generation avenues such that its liquidity sources are at least 1x its uses over the next 12 months. Before a positive rating action, S&P would expect the company's S&P Global Ratings-adjusted debt to EBITDA metric to remain below 10x. GAMECHEST LLC: Gets Extension to Access Cash Collateral ------------------------------------------------------- Gamechest, LLC received another extension from the U.S. Bankruptcy Court for the Middle District of Florida, Jacksonville Division, to use cash collateral. At the hearing held on April 28, the court allowed the company to continue to use its lenders' cash collateral and set a final hearing for May 21. The court's previous interim order issued on April 22 allowed the company to access cash collateral to pay its expenses until April 28 only and granted its lenders, Wayfler Financial, LLC and Huntington Valley Bank, a post-petition lien on the cash collateral. The company's budget projects total operational expenses of $141,060 for the period from April 15 to May 15. About Gamechest LLC Gamechest LLC, a company in Jacksonville, Fla., sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00215) on January 23, 2025, listing up to $50,000 in assets and between $1 million and $10 million in liabilities. Aaron Cohen, Esq., a practicing attorney in Jacksonville, Fla., serves as Subchapter V trustee. Judge Jacob A. Brown handles the case. Thomas Adam, Esq., at Adam Law Group, PA is the Debtor's bankruptcy counsel. Wayfler Financial, LLC, as lender, is represented by: Wayflyer Financial 16192 Coastal Highway, Lewes, DE 19958 c/o Capitol Corporate Services, Inc., Registered Agent 515 E Park Avenue, 2nd Floor Tallahassee, FL 32301 Huntington Valley Bank, as lender, is represented by: Huntington Valley Bank 2617 Huntingdon Pike Huntingson Valley, PA 19006 c/o Jason Mukai, Director 990 Spring Garden St., Suite 700 Philadelphia, PA 19123 GAUCHO GROUP: Nasdaq Completes Delisting of Securities ------------------------------------------------------ The Nasdaq Stock Market LLC (the Exchange) disclosed in a 25-NSE that it has determined to remove from listing the security of Gaucho Group Holdings, Inc. Based on review of information provided by the Company, Nasdaq Staff determined that the Company no longer qualified for listing on the Exchange pursuant to Listing Rules 5101,5110(b), and IM-5101-2. The Company was notified of the Staff determination on November 13, 2024. The Company did not file an appeal. The Company securities were suspended on November 18, 2024. The Staff determination to delist the Company securities became final on November 18, 2024. About Gaucho Group Holdings, Inc. Gaucho Group Holdings, Inc. is a Delaware holding company headquartered in Miami, Fla., which owns certain subsidiaries including operating companies that own a winery, boutique hotel and real property in Argentina. Gaucho filed Chapter 11 petition (Bankr. S.D. Fla. Case No. 24-21852) on November 12, 2024, with $10 million to $50 million in both assets and liabilities. Nathan G. Mancuso, Esq., at Mancuso Law, P.A. is the Debtor's legal counsel. GLASS MANAGEMENT: Court Extends Cash Collateral Access to May 31 ---------------------------------------------------------------- Glass Management Services, Inc. received another extension from the U.S. Bankruptcy Court for the Northern District of Illinois to use the cash collateral of Old National Bank. The company was authorized to use cash collateral until May 31 to pay the expenses set forth in its budget, plus an amount not to exceed 10% for each line item. The company projects total operational expenses of $205,087.76. Old National Bank's interest in the assets will be protected by replacement liens on post-petition assets, according to the interim order penned by Judge Janet Baer. The bank will also be granted a superpriority administrative expense claim in case of diminution in value of its collateral and will continue to receive monthly payments of $30,000 from Glass Management, which the bank can automatically debit from the company's account. The monthly payments started in December last year. As further protection, Glass Management Services was ordered to keep the bank's collateral insured. The next hearing is scheduled for May 28. About Glass Management Glass Management Services, Inc. is a construction contractor based in Illinois, specializing in glazing services. Established with a focus on high-profile projects, the company has been involved in significant developments, including the Obama Presidential Library, Terminal 5 at O'Hare Airport, and multiple Chicago Public Schools and CTA transit stations. Glass Management Services sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-14036) with $3,029,997 in assets and $11,989,444 in liabilities. Ernest B. Edwards, president of Glass Management Services, signed the petition. Judge Janet S. Baer presides the case. David P. Leibowitz, Esq., at Leibowitz, Hiltz & Zanzig, LLC is the Debtor's legal counsel. Old National Bank, as secured creditor, is represented by: Adam B. Rome, Esq. Greiman, Rome, & Griesmeyer, LLC 205 W. Randolph St., Ste. 2300 Chicago, IL 60606 Phone: 312-428-2750 arome@grglegal.com GLOBAL CONCESSIONS: Seeks to Tap B. Riley as Restructuring Advisor ------------------------------------------------------------------ Global Concessions, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ GlassRatner Advisory & Capital Group, LLC, doing business as B. Riley Advisory Services, as restructuring advisor. B. Riley will provide Marshall Glade as chief restructuring officer and certain additional personnel to the Debtors. The CRO and additional personnel will render these services: (a) assist the Debtor in developing financial projections and a liquidity projection model to help assess capital needs; (b) evaluate the viability of the company's cash flow forecast; (c) assess potential refinancing and restructuring alternatives; (d) interact with the Debtor's counsel, lenders and other capital sources; (e) assist in the Debtor's business activities, including budgeting, cash management and financial management; (f) assist the Debtor in communications and negotiations with lenders, vendors and other stakeholders; (g) work with the Debtor's other professionals as needed including attorneys; (h) assist the Debtor(s) with ongoing financial reporting; (i) assist the Debtor(s) in preparation of the information required pursuant to statutory reporting requirements related to the Chapter 11 proceeding; (j) assist with the preparation of reports for, and communications with, the Bankruptcy Court, creditors, and any other constituents; (k) review, evaluate, and analyze the financial ramifications of proposed transactions for which the Debtor(s) may seek Bankruptcy Court approval; (l) provide financial advice and assistance to the Debtor(s) and any potential sales broker in connection with a sale transaction; (m) assist the Debtor(s) in developing and supporting a proposed Plan of Reorganization; (n) render Bankruptcy Court testimony in connection with the foregoing, as required, on behalf of the Debtor(s); (o) lead the effort to secure debtor-in-possession financing and negotiate terms, if necessary; (p) perform other financial advisory tasks as requested by the Debtor. The firm will be paid at these hourly rates: Marshall Glade, Managing Diector $550 Senior Managing Directors $550 - $650 Managing Directors $450 - $550 Other $275 - $425 In addition, the firm will seek reimbursement for expenses incurred. The firm will require a retainer in the amount of $15,000 from the Debtor. Mr. Glade disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Marshall Glade B. Riley Advisory Services 3445 Peachtree Road, Suite 1225 Atlanta, GA 30326 Telephone: (470) 346-6800 About Global Concessions Global Concessions Inc., established in 1990 and headquartered in Atlanta, Georgia, specializes in operating food and beverage concessions, primarily within major transportation hubs across the United States. The Company has expanded its portfolio to include a diverse range of dining experiences, from quick-service partnerships with renowned brands like IHOP Express, Ben & Jerry's, and Nathan's Famous, to unique, stand-alone restaurants such as Sweet Georgia's Juke Joint and One Flew South. Global Concessions Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-53640) on April 2, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million. The Debtor tapped Benjamin Keck, Esq., at Keck Legal, LLC as counsel and GlassRatner Advisory & Capital Group, LLC, doing business as B. Riley Advisory Services, as restructuring advisor. GLOBAL FIDELITY: Chapter 15 Case Summary ---------------------------------------- Chapter 15 Debtor: Global Fidelity Bank Harbour Centre, 159 Mary Street 2nd Floor George Town Grand Cayman, Cayman Islands Business Description: Global Fidelity Bank, licensed by the Cayman Islands Monetary Authority, operated from November 2014 until its liquidation in July 2021. The bank offered services such as deposits, treasury management, and lending. Following regulatory pressure in 2018 and the collapse of a major depositor in June 2021, the institution was placed into official liquidation by the Grand Court of the Cayman Islands. Foreign Proceeding: Grand Court of the Cayman Islands Financial Services Division: No. 168 of 2021 Chapter 15 Petition Date: April 29, 2025 Court: United States Bankruptcy Court Southern District of Florida Case No.: 25-14799 Judge: Hon. Erik P Kimball Foreign Representatives: Michael Pearson and Nicola Cowan 10, Market Street, #769 Grand Cayman, KY1 9006 Cayman Islands Foreign Representatives' Counsel: Leyza B. Florin, Esq. Juan J. Mendoza, Esq. Miguel E. Del Rivero, Esq. SEQUOR LAW, P.A. 1111 Brickell Avenue, Suite 1250 Miami, FL 33131 Tel: (305) 372-8282 Email: lflorin@sequorlaw.com jmendoza@sequorlaw.com mdrivero@sequorlaw.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/FZZVGMA/Global_Fidelity_Bank__flsbke-25-14799__0001.0.pdf?mcid=tGE4TAMA GLOBAL PREMIER: Taps Wilshire Pacific Capital as Financial Advisor ------------------------------------------------------------------ Global Premier Regency Palms Oxnard LP seeks approval from the U.S. Bankruptcy Court for the U.S. Bankruptcy Court for the Central District of California to hire Wilshire Pacific Capital Advisors LLC as its financial advisor. The firm's services include: Restructuring (1) Developing a comprehensive plan to address the Company’s post-petition and prepetition obligations, including its senior secured mortgage loan; (2) Providing the financial analysis and forecast to support the Plan of Reorganization; (3) Advising on any creditor negotiations; and (4) Assisting with corporate communications. M&A Transaction: (1) Advising and assisting the Debtor in the preparation, marketing and sale of its assets pursuant to the Bankruptcy Code; (2) Working with the Debtor to identify assets to be sold, including intellectual property assets; (3) Advising on the structure of a sale process; (4) Developing a target list of potential acquirers; (5) Working with the Debtor to prepare an offering memorandum, nondisclosure agreement and data room; (6) Commencing external outreach to the target list of potential acquirers; (7) Assisting potential buyers with due diligence and formulation of offers; and (8) Working with the Debtor to assist in the closing of a sale transaction. Financing Transaction: (1) Advising and assisting the Debtor in devising and executing a program to secure new financing (but without any authority to bind or obligate the Debtor); (2) Selecting, structuring and preparing of materials, documents, and applications in a manner which the Firm determines to be necessary to obtain the Financing based upon the practices of various investors and lenders in the capital marketplace as determined by the firm; (3) Identifying on a best-efforts basis, prospective capital investors and lending institutions that may have an interest in providing the Financing to the Debtor. There is no guarantee that the Firm will be successful in securing the Financing for the Debtor; (4) Negotiating the terms of the Financing with prospective capital investors and lending institutions identified by the Firm, the Debtor, or any third party, at all times in coordination and cooperation with the Debtor and its legal counsel; and (5) Structuring of and participation in presentations to prospective investors and lending institutions as reasonably necessary to obtain the Financing. The firm will be paid at these hourly rates: Eric J. Weissman, President $500 Derek Buchanan, Vice President $400 Kevin Roy, Director $350 Josh Davidson, Director $250 Estimated Blended Rate $400 The Debtor provided the Firm with a $10,000 retainer payment. Eric Weissman, the president of Wilshire Pacific Capital Advisors, disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Eric Weissman Wilshire Pacific Capital Advisors, LLC 8447 Wilshire Blvd., Suite 202 Beverly Hills, CA 90211 Telephone: (310) 526-3323 Facsimile: (310) 388-5405 Email: eweissman@wilshirepacificadvisors.com About Global Premier Regency Palms Oxnard LP Global Premier Regency Palms Oxnard LP owns and operates Regency Palms Oxnard, an assisted living and memory care facility located at 1020 Bismark Lane in Oxnard, California. The facility offers a range of services, including assistance for independent residents and specialized memory care programs developed through extensive research and experience. Global Premier Regency Palms Oxnard LP sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10614) on March 1, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. The Debtor is represented by Garrick A. Hollander, Esq. at WINTHROP GOLUBOW HOLLANDER, LLP. GRANT THORNTON: S&P Rates New $800MM First-Lien Term Loan 'B' ------------------------------------------------------------- S&P Global Ratings assigned its 'B' issue-level rating and '3' recovery rating to Grant Thornton Advisors LLC proposed $800 million first-lien term loan due 2031. The '3' recovery rating indicates our expectation of meaningful (50%-70% rounded estimate: 50%) recovery in the event of a payment default. The company plans to use the proceeds from the proposed loan to complete several acquisitions, add cash to the balance sheet, and pay related transaction fees and expenses. S&P said, "Our 'B' issuer credit rating and stable outlook on the company's parent, Turbo Global LP are unchanged, although we expect the proposed transaction will result in an increase in leverage within the next 12 months. We forecast S&P Global Ratings year end 2025 pro forma adjusted leverage to be in the mid- to high-6x area, which we view as elevated but adequate for the rating level given our expectation for deleveraging below our 6.5x downgrade threshold by year end 2026. Despite the incremental debt, the company will continue to generate positive free operating cash flow (FOCF), we forecast FOCF to debt of about 5% in 2026. We believe the proposed series of acquisitions will enhance GT's geographic diversity and provide synergy opportunities, including back-office cost realizations and increased offshoring activity. We view integration risks as low because most of the companies acquired or are under a letter of intent are foreign businesses that are part of the Grant Thornton international network. "Given the series of acquisitions contemplated and our expectation for increased leverage, we believe the proposed debt transaction increases risks within the next 12 to 18 months at the current rating level. The proposed issuance will leave the company with around $600 million of cash on the balance sheet, a large portion of which we anticipate the company will use for future mergers or acquisitions, thereby enhancing future EBITDA and cash flows. If the sponsor elected to take any dividends, this could put downward pressure on the rating or outlook. Additionally, the timing and successful closing of the planned acquisitions, as well as the company's ability to achieve the contemplated synergies will affect the pace of deleveraging. Finally, audited financials for fiscal year ended December 2024 and first quarter 2025 will not be released before the end of June 2025 due to the change in the fiscal year-end date following the change in ownership in 2024, and we have based our analysis on company-provided, internally generated financial statements. We believe the recent changes in ownership structure and fiscal year-end date, the integration of multiple acquisitions and as well as the delayed financial reporting add uncertainty to our forecasts." ISSUE RECOVERY ANALYSIS Key analytical factors: -- S&P's simulated scenario contemplates a default in 2028 due to a weak operating performance resulting from adverse events that affect Grant Thornton's reputation, resulting in the loss of key clients to competitors and difficulty attracting and retaining qualified professionals. -- S&P believes if Grant Thornton defaulted, its debt-holders would look to maximize recovery through a reorganization. -- The company's capital structure includes a $400 million revolver due 2029, a $2.3 billion term loan B due 2031, and $800 million incremental term loan B due 2031. -- Default assumptions include an 85% draw on the revolving credit facility and a fully drawn delayed draw term loan. -- S&P has valued the company on a going-concern basis using a 6.0x multiple of its projected emergence EBITDA, which is in line with what S&P applies to similar-sized companies in the sector. Simulated default assumptions: -- Simulated year of default: 2028 -- EBITDA at emergence: $306 million -- EBITDA multiple: 6.0x -- The revolving credit facility is 85% drawn at default. Simplified waterfall: -- Gross enterprise value: $1.83 billion -- Obligor/nonobligor split: 85%/15% -- Net enterprise value (after 5% administrative costs): $1.75 billion -- Net value available to creditors: About $1.75 billion (including about $91 million unpledged value from non-obligors) -- Total first-lien debt claims: $3.4 billion --Recovery expectation: 50%-70% (rounded estimate: 50%) All debt amounts include six months of prepetition interest. HARMONY CAVE: Seeks Subchapter V Bankruptcy in Florida ------------------------------------------------------ On April 2, 2025, Harmony Cave LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern 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 Harmony Cave LLC Harmony Cave LLC is Florida-based limited liability company with real estate assets in Broward County. Harmony Cave LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-14846-SMG) on 2, 2025. In its petition, the Debtor reports estimated assets between $10 million and $50 million and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Scott M. Grossman handles the case. HBL SNF: No Resident Care Concerns, 14th PCO Report Says -------------------------------------------------------- Joseph Tomaino, the court-appointed patient care ombudsman, filed with the U.S. Bankruptcy Court for the Southern District of New York his 14th report regarding the quality of patient care provided at HBL SNF, LLC's nursing facility in White Plains, N.Y. The report contains the PCO's findings from his visit to the White Plains facility, during which he interviewed the facility administrator. The facility administrator reports that census has been slightly soft but sustainable. He reports that the organization has not had difficulty making payroll, purchasing supplies, or meeting any other operational obligations. He reported that the new director of nursing has fully assumed her role, and there are no management vacancies. The PCO explained that the facility is entitled to receive payment for their services and asked if she was represented by Counsel in the accident case. She said she was, so the PCO recommended that she discuss with Counsel options she may have legally against the individual responsible for the accident and if some arrangement can be made for guarantee of payment of the facility by their insurance company. The patient indicated that she was very satisfied with her care, and that the administrator was very kind to her in these payment discussions. A copy of the 14th ombudsman report is available for free at https://urlcurt.com/u?l=5G9Tdx from Omni Agent Solutions, claims agent. About HBL SNF HBL SNF, LLC, doing business as Epic Rehabilitation and Nursing at White Plains, operates a 160-bedroom skilled nursing and rehabilitation facility located at 120 Church St., White Plains, N.Y. The facility, which opened in late 2019, provides an array of healthcare services, including neurological, respiratory, orthopedic, occupational, psychiatric, and many other medical and rehabilitative services. HBL SNF filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-22623) on Nov. 1, 2021, listing $9,131,311 in total assets and $20,128,876 in total liabilities. Heidi J Sorvino, Esq., at White and Williams, LLP serves as Subchapter V trustee. Judge Sean H. Lane oversees the case. The Debtor tapped Klestadt Winters Jureller Southard & Stevens, LLP as bankruptcy counsel; Michelman & Robinson, LLP as special litigation counsel; and HMM CPAs, LLP as accountant. Joseph J. Tomaino, the patient care ombudsman appointed in the case, is represented by SilvermanAcampora, LLP. HEALTHCHANNELS INTERMEDIATE: S&P Withdraws 'CCC-' Long-Term ICR --------------------------------------------------------------- S&P Global Ratings withdrew its 'CCC-' long-term issuer credit rating on provider of medical scribes to hospitals and medical practices HealthChannels Intermediate Holdco LLC, as well as the 'CCC-' issue-level rating on the company's $385 billion term loan due to a lack of sufficient information. The outlook was negative at the time of the withdrawal. S&P said, "Despite repeated attempts, we have not been able to obtain--nor do we expect to obtain--sufficient information on Healthchannels to maintain surveillance of the ratings in accordance with our applicable criteria and policies. Therefore, we are no longer able to provide surveillance on the company's ratings." HEART 2 HEART: U.S. Trustee Appoints Deborah Fish as PCO -------------------------------------------------------- Matthew Cheney, Acting U.S. Trustee for Region 4, appointed Deborah Fish, Esq., at Allard & Fish, P.C., as patient care ombudsman for Heart 2 Heart Volunteers, Inc. The appointment was made pursuant to the order from the U.S. Bankruptcy Court for the Northern District of West Virginia on April 2. The patient care ombudsman shall: * Monitor the quality of patient care provided to patients of the Debtor, to the extent necessary under the circumstances, including interviewing patients and physicians, as provided under Section 333(b)(1) of the Bankruptcy Code; * Not later than 60 days after the entry of an order approving the PCO's appointment, and not less frequently than at 60-day intervals thereafter, report to the Court after notice to the parties in interest, at a hearing, or in writing, regarding the qualify of patient care provided to the patients of the Debtor, as provided under Section 333(b)(2) of the Bankruptcy Code; and * If the PCO determines that the quality of patient care provided to patients of the Debtor is declining significantly or is otherwise being materially compromised, file with the court a motion or a written report, with notice to the parties in interest immediately upon making such determination pursuant to Section 333(b)(3) of the Bankruptcy Code. Ms. Fish disclosed in a court filing that she is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. About Heart 2 Heart Volunteers Inc. Heart 2 Heart Volunteers Inc., doing business as Serenity Hills Life Center, operates three addiction recovery centers and treatment facilities. Heart 2 Heart Volunteers sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.W. Va. Case No. 25-00087) on February 27, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. Judge David L. Bissett oversees the case. The Debtor is represented by Kirk B. Burkley, Esq., at Bernstein-Burkley, P.C. HIGHRISE ELECTRICAL: Seeks to Sell 14 Vehicles ---------------------------------------------- Highrise Electrical Technologies, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, to sell Vehicles, free and clear of liens, interests, and encumbrances. The Debtor is an electrical contractor firm that offers design build, budgeting, re-model, computerized estimating, and turn-key installation. In or about 1993, Debtor was founded by Paul Blount (now deceased) and Ron Eitze. Ron Eitze is now its sole owner and president. For many years Debtor has been one of the leading electrical contractors in the greater Houston area. Debtor is a proud member of the Independent Electrical Contractors Association. The Debtor is coordinating with general contractors and vendors and there have been some construction project delays, unrelated to Debtor's bankruptcy, however, remains cautiously optimistic that it will collect everything owed to it without the expense and delay of collection litigation. Since the bankruptcy filing, several employees have left the Debtor, significantly reducing the cost of remaining operations. The Debtor, meanwhile, is in possession of assets that it no longer needs. On these facts, it makes no sense to continue to insure the vehicles, maintain them, and incur the risk of theft, particularly in the context of a business soon to be shut down. The Debtor proposes to sell the 14 vehicles as the Debtor in its business judgment deems reasonably appropriate. Giving the Debtor latitude to sell the property as would avoid the time and administrative expense of filing multiple motions for these relatively low value items. The Debtors also asks permission to take all reasonable steps to market and sell the property, including, but not limited to permission to advertise the property for sale online, in print, and on social media, and sell the vehicles at a price that is at least 90% of the values of each property. The Debtor also requests permission to pay any costs needed to market the property for sale, including, but not limited to commissions that might be paid to any auctioneers. The Debtor would only accept cash or the equivalent for the sale. About Highrise Electrical Technologies, Inc. Highrise Electrical Technologies Inc., operating under the trade name Highrise Electric, is a full-service electrical contracting company. The Company specializes in design assistance, consulting, estimating, scheduling, procurement, installation, troubleshooting, energy management, and preventive maintenance services. Serving both residential and commercial sectors, the Company brings expertise to large-scale projects, including high-rise buildings. Highrise Electrical Technologies Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-31634) on March 1, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Annie Catmull, Esq. at O'CONNORWECHSLER PLLC. HYPERSCALE DATA: Series G Preferred Stock Sales Reach $960K ----------------------------------------------------------- Hyperscale Data, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on April 10, 2025, the Company, pursuant to the Securities Purchase Agreement entered into with Ault & Company, Inc., a Delaware corporation on December 21, 2024, sold 100 shares of Series G convertible preferred stock, and warrants to purchase 16,898 shares of the Company's common stock to the Purchaser, for a purchase price of $100,000. As of April 10, the Purchaser has purchased an aggregate of 960 shares of Series G Convertible Preferred Stock and Series G Warrants to purchase an aggregate of 162,217 Warrant Shares, for an aggregate purchase price of $960,000. The Agreement provides that the Purchaser may purchase up to $25 million of Series G Convertible Preferred Stock and Series G Warrants in one or more closings. The Purchaser is an affiliate of the Company. The material terms of the Agreement, Series G Convertible Preferred Stock and the Series G Warrants were described in the Form 8-K filed with the Securities and Exchange Commission on December 23, 2024, as amended on January 3 and 6, 2025. About Hyperscale Data Headquartered in Las Vegas, NV, Hyperscale Data, Inc., formerly known as Ault Alliance, Inc., is transitioning from a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact to becoming solely an owner and operator of data centers to support high performance computing services. Through its wholly and majority-owned subsidiaries and strategic investments, Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries. It also provides, through its wholly owned subsidiary, Ault Capital Group, Inc., mission-critical products that support a diverse range of industries, including an artificial intelligence software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, Hyperscale Data is actively engaged in private credit and structured finance through a licensed lending subsidiary. New York, New York-based Marcum LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated Apr. 15, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. IM3NY LLC: Taps Sun Environmental to Provide Waste Removal Services ------------------------------------------------------------------- iM3NY, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Sun Environmental Corp. to provide waste removal services. The firm will assist with collection and removal of materials, chemicals and environmental waste from the Debtors' facility. The firm represents no interest adverse to the Debtors or to the estate on the matters upon which it is to be engaged. The firm can be reached at: Sun Environmental Corp. 4655 Crossroads Park Drive Liverpool, NY 13088 Telephone: (315) 218-6995 Facsimile: (315) 214-8598 About iM3NY LLC IM3NY LLC -- https://im3ny.com/ -- is an independent lithium-ion cell manufacturer that is commercializing cell chemistry developed in the USA. iM3NY LLC and Imperium3 New York, Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 25-10131) on January 27, 2025. In the petition, the Debtors reported estimated assets between $50 million and $100 million and estimated liabilities between $100 million and $500 million. The Honorable Bankruptcy Brendan Linehan Shannon handles the cases. The Debtors tapped William E. Chipman, Jr., Esq., at Chipman Brown Cicero & Cole, LLP as counsel; Novo Advisors as financial advisor; and Hilco Corporate Finance, LLC as investment banker. Stretto, Inc. is the Debtors' noticing claims management and reconciliation consultant. IMMANUEL SOBRIETY: No Patient Care Concern, 10th PCO Report Says ---------------------------------------------------------------- Tamar Terzian, the court-appointed patient care ombudsman, filed with the U.S. Bankruptcy Court for the Central District of California her tenth report for the period February 1 to April 1 regarding Immanuel Sobriety Inc.'s healthcare facility. The PCO physically conducted visits to all facilities in addition to verification of licensing, staffing and assuring compliance with the Department of Health Care Services. She observed generally at each location that all medication was properly labeled and stored for the participants. For each location, there is a designated staff area that had the medication and files for each participant. The PCO finds that all medication logs at the Male Detox Facility (Winton location) are properly maintained by staff and executed by staff after supervising the participants taking of the medication. The safety binders are properly updated, and the office was locked only available for staff. The medications are properly labeled with two participants only on medication. Ms. Terzian conducted a tour of the Male Sober Living Facility (Anira location). Medication was properly labeled and stored with only access by the staff. At the time of the site visit, there were 9 participants present. There was one house manager and an administrator present at the time of the tour. No concerns noted. The PCO visited the Sober Living Facility (Richmond location) with six participants present at the time of her visit. The home was clean and fully supplied in the kitchen for participants to prepare their own meals. There is a large outdoor space where participants can spend time. There was no medication on site. No concerns noted. The PCO observed staff being trained and reviewed employee records. She finds that the healthcare provider has sufficient staff. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=YPoamB from PacerMonitor.com. The ombudsman may be reached at: Tamar Terzian, Esq. Terzian Law Group 1122 E. Green Street Pasadena, CA 91106 Telephone: (818) 242-1100 Facsimile: (818) 242-1012 Email: tterzian@terzlaw.com About Immanuel Sobriety Immanuel Sobriety Inc. provides drug and alcohol rehabilitation programs and treatment services. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-10806) on March 2, 2023. In the petition signed by its chief executive officer, Elizabeth Reid, the Debtor disclosed up to $500,000 in assets and up to $1 million in liabilities. Judge Wayne Johnson oversees the case. The Law Office of Crystle J. Lindsey represents the Debtor as legal counsel. Tamar Terzian is the patient care ombudsman appointed in the Debtor's Chapter 11 case. INFINITY GEAR: Seeks to Hire Hansen Tax Consulting as Accountant ---------------------------------------------------------------- Infinity Gear, LLC seeks approval from the U.S. Bankruptcy Court for the District of Colorado to employ Hansen Tax Consulting & Accounting LLC as accountant. The firm will assist the Debtor in preparing its 2022, 2023, and 2024 tax returns and tax-related documents and schedules and providing other accounting and bookkeeping-related services as may be needed. The firm will charge a flat rate of $1,400 to prepare and file each of the Debtor's annual tax returns and $4,200 to prepare its 2022, 2023, and 2024 federal tax returns. If any additional bookkeeping services are required, the firm will charge for those services at an hourly rate of $110. Ted Hansen, a certified public accountant at Hansen Tax Consulting & Accounting, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Ted Hansen, CPA Hansen Tax Consulting & Accounting LLC 710 Burbank Street Broomfield, CO 80020 Telephone: (303) 465-2585 About Infinity Gear LLC Infinity Gear, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Colo. Case No. 25-11134) on March 6, 2025, listing between $100,001 and $500,000 in assets and between $100,001 and $500,000 in liabilities. Judge Thomas B. Mcnamara oversees the case. The Debtor tapped Wadsworth Garber Warner Conrardy, PC as legal counsel and Hansen Tax Consulting & Accounting LLC as accountant. INVATECH PHARMA: Gets Extension to Access Cash Collateral --------------------------------------------------------- InvaTech Pharma Solutions, LLC received fourth interim approval from the U.S. Bankruptcy Court for the District of New Jersey to use cash collateral. The fourth interim order authorized the company to use the cash collateral of Citibank N.A., Provident Bank and the U.S. Small Business Administration as per the budget, except for funds in Citibank IMMA Account ending 8856. As protection, the secured creditors will be granted replacement liens on post-petition assets, including receivables. As additional protection, Provident will receive payment of $13,500 per month. A final hearing is scheduled for May 27. Citibank, N.A. is represented by: Teresa Sadutto-Carley, Esq. Goetz Platzer LLP One Penn Plaza 31st Floor New York, NY 10119 Telephone: 212-593-3000 Facsimile: 212-593-0353 tsadutto@goetzplatzer.com Provident Bank is represented by: Angela Nascondiglio Stein, Esq. Meyner and Landis LLP One Gateway Center, Suite 2500 Newark, NJ 07102 (973) 602-3432 astein@meyner.com About InvaTech Pharma Solutions LLC InvaTech Pharma Solutions LLC, doing business as Inva Tech Pharma Solutions LLC and Inva-Tech Pharma Solutions LLC, is a specialty pharmaceutical company that develops, manufactures, and markets generic prescription products. The Company's cGMP-compliant facility supports ANDA scale manufacturing and packaging of tablets, capsules, and liquid in bottles. With a dedicated team, InvaTech is committed to meeting industry regulations, exceeding deadlines, and delivering exceptional service to its partners. InvaTech Pharma Solutions LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-11482) on February 13, 2025. In its petition, the Debtor reported estimated assets between $1 billion and $10 billion and estimated liabilities between $10 million and $50 million. Judge Christine M. Gravelle oversees the case. The Debtor is represented by Daniel M. Stolz, Esq., at Genova Burns, LLC. J&L LANDSCAPE: Seeks Subchapter V Bankruptcy in Washington ---------------------------------------------------------- On May 2, 2025, J&L Landscape Services LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Washington. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About J&L Landscape Services LLC J&L Landscape Services LLC is a Marysville, Washington-based landscaping that provides professional landscaping services including design, installation, and maintenance, with operations spanning residential and commercial properties in Snohomish County. J&L Landscape Services LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 25-11215) on May 2, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $500,000 and $1 million. The Debtor is represented by Thomas D. Neeleman, Esq. at Neeleman Law Group, P.C. JEFFERSON CAPITAL: Moody's Rates New $400MM Unsecured Notes 'Ba3' ----------------------------------------------------------------- Moody's Ratings has assigned a Ba3 rating to Jefferson Capital Holdings, LLC's (Jefferson) proposed $400 million senior unsecured notes due 2030. The company plans to use the proceeds from the proposed issuance to repay a portion of its revolving credit facility and for general corporate purposes. This rating action does not affect Jefferson's Ba2 corporate family rating or its existing Ba3 senior unsecured rating. The issuer's outlook is stable. RATINGS RATIONALE The Ba3 rating assigned to Jefferson's proposed senior unsecured notes is consistent with the company's existing senior unsecured rating. The Ba3 senior unsecured rating is one notch below Jefferson's Ba2 CFR, reflecting the debt's ranking and size in the company's capital structure. Jefferson's ratings are supported by the company's strong profitability, solid interest coverage, stable capitalization and modest debt/EBITDA leverage. The ratings also reflect risks from the company's reliance on internal modeling for valuing portfolio purchases and associated future collections, the estimates of which could deteriorate significantly amid unexpected economic, regulatory, or consumer behavior changes. The ratings also reflect regulatory risk associated with operating in the debt collection business, particularly in the US. The stable outlook reflects Moody's expectations that Jefferson's strong competitive position will support its revenue, profitability and cash flow, offset by Moody's expectations that debt leverage will remain at the top end of the company's target range and interest coverage will be weaker than in prior years. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Jefferson's rating could be upgraded if the company: 1) continues to demonstrate strong financial performance as it increases its scale, with consistently solid profitability and cash flows; 2) maintains Moody's Ratings-adjusted debt/EBITDA at less than 2.0x; and 3) continues to improve its liquidity and funding profile as evidenced by reduced reliance on secured credit facilities. The rating could be downgraded if the company's financial performance materially deteriorates; for example, if Moody's Ratings-adjusted debt/EBITDA leverage increases to above 3.5x or if the company's profitability and liquidity meaningfully deteriorate on a sustained basis. Adverse regulatory developments or a significant operational or compliance failure that weakens the company's franchise could also result in a downgrade. A weakness in collections or higher costs associated with the Conn's transaction that lead to lower EBITDA than originally expected could lead to a downgrade. The principal methodology used in this rating was Finance Companies published in July 2024. JJ PFISTER: Case Summary & 10 Unsecured Creditors ------------------------------------------------- Debtor: JJ Pfister Distilling Company, LLC 9819 Business Park Drive Ste. 3 Sacramento CA 95827 Business Description: J.J. Pfister Distilling Company was a Sacramento-based craft distillery known for producing organic spirits including vodka, gin, rum, whiskey, and brandy. The Company operated from a facility on Business Park Drive but ceased on-site operations in 2024. Its products remain available through select retailers and online distribution. Chapter 11 Petition Date: May 2, 2025 Court: United States Bankruptcy Court Eastern District of California Case No.: 25-22194 Judge: Hon. Fredrick E Clement Debtor's Counsel: Stephen Reynolds, Esq. REYNOLDS LAW CORPORATION PO Box 73379 Davis CA 95617 Tel: 530 297 5030 E-mail: sreynolds@lr-law.net Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Kevin Keck as managing member. 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/V6ZIGBY/JJ_Pfister_Distilling_Company__caebke-25-22194__0001.0.pdf?mcid=tGE4TAMA JM GROVE: Gets Final OK to Use Cash Collateral ---------------------------------------------- JM Grove, LLC received final approval from the U.S. Bankruptcy Court for the District of Kansas to use cash collateral. The final order authorized the company to use cash collateral through July 5 or until a plan of reorganization is confirmed, whichever comes first. As protection for the use of their cash collateral, the U.S. Small Business Administration and Kansas Department of Revenue were granted replacement security interests in the company's post-petition property to maintain the same priority as their pre-bankruptcy liens. As additional protection, the Kansas Department of Revenue will continue to receive a monthly payment of $1,000. The monthly payments started in March. About JM Grove LLC JM Grove, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (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 JOANN INC: Burlington Stores Buys Co.'s 45 Leased Locations ----------------------------------------------------------- Jennifer Marks of Home Textiles Today reports that Burlington Stores Inc. is once again leveraging retail bankruptcies to fuel its expansion—similar to its strategy following Bed Bath & Beyond's 2023 collapse. The off-price retailer has acquired the leases for 45 former Joann stores, according to reports from Retail Dive and other outlets. Burlington is expected to take over the sites in May and June 2025. Joann, a fabric and crafts chain, filed for bankruptcy in January and soon began liquidating its nearly 800 stores. This marked the company's second bankruptcy in less than a year. This isn't the first time Burlington has expanded by taking over shuttered retail spaces. In 2023, it secured 62 former Bed Bath & Beyond leases to support its growth. As of February 1, 2025, Burlington operated 1,108 stores across 46 states, Washington D.C., and Puerto Rico, and has announced plans to open approximately 100 net new stores in 2025. About Joann Inc. JOANN operates in the fabric and sewing industry with one of the largest assortments of arts and crafts products. JOANN has transformed itself into a fully-integrated, digitally-connected omni-channel retailer. JOANN reported a net loss of $200.6 million for the year ended Jan. 28, 2023. On March 18, 2024, JOANN Inc. and 9 affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10418). JOANN listed $2,257,700,000 in assets against $2,440,700,000 in liabilities as of Oct. 28, 2023. Judge Craig T. Goldblatt oversees the case. The Debtors tapped Latham & Watkins, LLP as legal counsel; Houlihan Lokey Capital, Inc. as investment banker; and Alvarez & Marsal North America, LLC, as financial advisor. Kroll Restructuring Administration, LLC is the noticing agent. JOANN Inc., on April 30, 2024 successfully emerged from its court-supervised financial restructuring process. 2nd Attempt Joann Inc. sought voluntary Chapter 11 petition for the second time under U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25 10068) on Jan. 15, 2025. Kirkland & Ellis is serving as legal counsel to JOANN, with Centerview Partners LLC serving as financial advisor and Alvarez & Marsal North America, LLC serving as restructuring advisor. KTRV LLC: Seeks Approval to Tap Morris James as Bankruptcy Counsel ------------------------------------------------------------------ KTRV LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Morris James LLP as counsel. The firm will provide these services: (a) advise the Debtors with respect to their powers and duties in the continued management and operation of their businesses and properties; (b) advise and consult on the conduct of the bankruptcy case; (c) attend meetings and negotiate with representatives of creditors and other parties in interest; (d) take all necessary actions to protect and preserve the Debtors' estates; (e) prepare pleadings in connection with its bankruptcy case; (f) represent the Debtors in connection with obtaining authority to continue using cash collateral and postpetition financing; (g) advise the Debtors in connection with any potential sale of assets, to the extent necessary; (h) appear before the court and any appellate courts to represent the interests of the Debtors' estates; (i) take any necessary action on behalf of the Debtors to negotiate, prepare, and obtain approval of a disclosure statement and confirmation of a Chapter 11 plan and all documents related thereto; (j) analyze the Debtors' leases and contracts and the assumption and assignment or rejection thereof, to the extent necessary; and (k) perform such other necessary legal services to the Debtors in connection with the prosecution of the bankruptcy case as are necessary and appropriate. The firm will be paid at these hourly rates: Jeffrey Waxman, Partner $910 Eric Monzo, Partner $905 Christopher Donnelly, Associate $425 Samantha Rodriguez, Associate $375 Stephanie Lisko, Paralegal $385 Douglas Depta, Paralegal $385 In addition, the firm will seek reimbursement for expenses incurred. The firm received a total retainer of $205,000 from the Debtors. Mr. Waxman disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Jeffrey Waxman Morris James LLP 500 Delaware Avenue, Suite 1500 Wilmington, DL 19801 Telephone: ((302) 888-6800 About KTRV LLC KTRV is a Delaware holding company whose sole asset is its membership interest in HCNR, a Pennsylvania limited liability company. HCNR owns and operates five coal mines and related operations in Pennsylvania and Maryland. KTRV LLC and Heritage Coal & Natural Resources, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10601) on March 30, 2025. The petitions were signed by Brian Ryniker as chief restructuring officer. In the petitions, KTRV LLC reported estimated assets of $50 million to $100 million and estimated liabilities of $50 million to $100 million, and Heritage Coal reported estimated assets of $100 million to $500 million and estimated liabilities of $100 million to $500 million The Debtors are represented by Morris James LLP. The Debtors' restructuring advisor is RKC, LLC d/b/a RK Consultants LLC, and their claims and noticing agent is Stretto Inc. KTRV LLC: Seeks to Hire RK Consultants as Restructuring Advisor --------------------------------------------------------------- KTRV LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ RK Consultants LLC as restructuring advisor. RK Consultants will provide Brian Ryniker as chief restructuring officer (CRO) and certain additional personnel to the Debtors. The CRO and additional personnel will render these services: (a) provide Brian Ryniker to serve as CRO; (b) assist the Debtors and provide analysis in securing post-petition financing and meet with or assist in discussions and/or negotiations with potential lenders, creditors, committees, suppliers, lessors and other parties in interest; (c) assist the Debtors in preparing and implementing an efficient and effective court based restructuring, whether through a Chapter 11 Plan; (d) prepare and present to the Debtors' Representative a preliminary action plan and timeline and a monthly operating budget for them and assist in preparing statements of financial affairs, schedules, monthly operating reports, and other regular reports required in a Chapter 11 proceeding; (e) with the approval of the managers, retain and oversee other outside consultants in connection with the sale or reorganization of the Debtors; (f) maintain communications regularly with the Debtors' Representative and certain other creditors; (g) identify and seek to recover assets of the Debtors; (h) assist in the identification of executory contracts and unexpired leases; and (i) perform such other professional services as may be requested by the Debtors and agreed to by RK Consultants in writing. The firm will be paid at these hourly rates: Brian Ryniker, CRO $500 Other Firm Professionals $140 - $500 In addition, the firm will seek reimbursement for expenses incurred. For the 90 days prior to the petition date, the firm received a retainer of $90,750 from the Debtor. Mr. Ryniker disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Brian Ryniker RK Consultants LLC 200 E. 17th Street New York, NY 10003 About KTRV LLC KTRV is a Delaware holding company whose sole asset is its membership interest in HCNR, a Pennsylvania limited liability company. HCNR owns and operates five coal mines and related operations in Pennsylvania and Maryland. KTRV LLC and Heritage Coal & Natural Resources, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10601) on March 30, 2025. The petitions were signed by Brian Ryniker as chief restructuring officer. In the petitions, KTRV LLC reported estimated assets of $50 million to $100 million and estimated liabilities of $50 million to $100 million, and Heritage Coal reported estimated assets of $100 million to $500 million and estimated liabilities of $100 million to $500 million The Debtors are represented by Morris James LLP. The Debtors' restructuring advisor is RKC, LLC d/b/a RK Consultants LLC, and their claims and noticing agent is Stretto Inc. LAID RIGHT SITE: Seeks Subchapter V Bankruptcy in North Carolina ---------------------------------------------------------------- On April 30, 2025, Laid Right Site Development Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of North Carolina. According to court filing, the Debtor reports up to $50,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Laid Right Site Development Inc. Laid Right Site Development Inc. is a site development contractor specializing in grading and utility services. The Company operates in North Carolina, with locations in Jefferson and Sanford. Its services support infrastructure and construction projects across the region. Laid Right Site Development Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-01607) on April 30, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities up to $50,000. The Debtor is represented by JM Cook, Esq. at J.M. COOK, P.A. LAND AND LAWN: Unsecureds to Get 42 Cents on Dollar in Plan ----------------------------------------------------------- Land and Lawn, LLC, filed with the U.S. Bankruptcy Court for the Middle District of Florida an Amended Plan of Reorganization under Subchapter V dated March 31, 2025. The Debtor, a limited liability company under the laws of the State of Florida,operates a horticultural recycling business operating in Southwest Florida. The Debtor purchased a property in Punta Gorda, Florida located at 41330 and 41390 Cook Brown Rd, Punta Gorda, FL ("The Cook Brown Property") in December 2023 to move its operations to the Cook Brown Property. The Debtor purchased the Cook Brown Property for $550,000 and the current value of the Cook Brown Property is estimated at $975,000. The debtor generates revenues charging a per truck load fee to drop off horticultural materials at the Punta Gorda Property. In addition to the dump fees the debtor sells partially processed mulch to a mulch wholesaler for a per truckload fee. Out of the revenues from the project the debtor pays its employees wages and the costs of performing the work including dump fees and fuel as well as the operating expenses of the business and payments to secured creditors for equipment and real estate. Due to the loss of income caused by the delay in opening the Cook Brown Property and the threat of repossession of equipment by secured creditors, the debtor initiated the case by filing a voluntary petition for reorganization relief under Subchapter V of the Bankruptcy Code. To the fund the Plan, the Debtor will use its disposable income, as defined by Bankruptcy Code section 1191(d). Specifically, the Debtor will use its disposable income received in the 3- year period beginning on the date that the first payment is due under the Plan (hereafter the "Relevant Income Period"). The Financial Projections show that, for the Relevant Income Period, the Debtor's Disposable Income should total approximately $441,039.00. The final Plan payment is expected to be paid on September 1, 2028. This Plan of Reorganization proposes to pay creditors of the Debtor from the cash flow from operations, and future income. Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately 42 cents on the dollar. This Plan also provides for the payment of administrative and priority claims. Class 6 consists of general unsecured non-priority creditors. Class 6 claims shall receive a pro rate Quarterly distribution collectively totaling the Debtor's Disposable Income, after payment of administrative expense Claims and priority tax claims which is estimated to be $38,883.83. The Debtor anticipates that the holders of Class 6 will receive distributions collectively totaling approximately $466606.00 at an interest rate of zero percent over the life of the Plan. Class 6 claims are impaired. Class 7 consists of the Equity Security Holder Sarah Brooke Connolly. While the holders of Class 7 shall retain their interest in the Debtor, all claims which the holders of Class 7 may assert against the Debtor shall not be paid until allowed Class 1 to 6 Claim Are paid in full. Payments required under the Plan shall be paid from revenues generated by continued operations. A full-text copy of the Amended Plan dated March 31, 2025, is available at https://urlcurt.com/u?l=jghCLy from PacerMonitor.com at no charge. The Debtor's Counsel: Joseph Trunkett, Esq. TRUCKETT LAW FIRM, LLC D/B/A GULF COAST BANKRUPTCY LAW FIRM 2271 McGregor Blvd. Suite 300 Fort Myers FL 33901 Tel: 239-790-4529 Email: jtrunkett@trunkettlaw.com About Land and Lawn Land and Lawn, LLC is a landscaping supply store in Fort Myers, Fla., offering nursery and landscape supply, sod, dirt, and mulch. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01728) on November 12, 2024, with $2,938,950 in assets and $2,374,150 in liabilities. Sarah Brooke Connolly, manager, signed the petition. Judge Caryl E. Delano presides over the case. Joseph Trunkett, Esq., at Trunkett Law Firm, LLC, doing business as Gulf Coast, represents the Debtor as bankruptcy counsel. LAS VEGAS 0ILPK: Seeks to Hire David J. Winterton as Legal Counsel ------------------------------------------------------------------ Las Vegas 0ILPK 280, LLC seeks approval from the U.S. Bankruptcy Court for the District of Nevada to employ David J. Winterton & Assoc., Ltd. to handle its Chapter 11 case. The firm will be paid at these hourly rates: Attorneys $250 - $400 Paralegals $150 David Winterton, Esq., an attorney at the firm, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: David J. Winterton, Esq. David J. Winterton & Assoc., Ltd. 7881 W. Charleston Blvd., Suite 220 Las Vegas, NV 89117 Telephone: (702) 363-0317 Facsimile: (702) 363-1630 Email: david@davidwinterton.com About Las Vegas 0ILPK 280 LLC Las Vegas 0ILPK 280 LLC is a single-asset real estate entity as defined in 11 U.S.C. Section 101(51B), is the fee simple owner of the property located at 2720 E Quail Ave, which is valued at $1.41 million. Las Vegas 0ILPK 280 LLC relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-11510) on March 20, 2025. In its petition, the Debtor reports total assets of $1,405,000 and total liabilities of $613,161. David J. Winterton & Assoc., Ltd. serves as the Debtor's counsel. LAVIE CARE: No Decline in Resident Care, 4th PCO Report Says ------------------------------------------------------------ Joani Latimer, the patient care ombudsman, filed her third report regarding the quality of patient care provided by LaVie Care Centers, LLC. The report covers the period Jan. 8 to March 7. The ombudsman representative (OR) visited the Ashland and Rehabilitation facility on Jan. 8 and 20, and Feb. 7. The OR did receive a few complaints during this visit and observed a few things of concern. The memory care med-cart was unlocked and residents' name and photo were displayed on a computer screen on the cart. The OR observed one aide providing one-on-one care across the hall, and the Unit Manager standing at the door of another resident. On Dec. 11, 2024 and Feb. 26, 2025, the OR visited the Augusta Nursing and Rehabilitation Center facility. The OR was informed that a new Director will likely be in place in a number of weeks, but according to the interim acting Director, they are having difficulty finding a qualified person. There were no new complaints during this visit and there was no indication of a decline in resident's care. Residents interviewed expressed no concerns. On Feb. 10 and 26, the OR visited the Consulate Health Care of Norfolk and was able to tour the nursing units. The OR received no complaints from residents interviewed. No concerns were observed. The residents appeared clean and staff members were noted interacting appropriately with the residents during the provision of care. Since the date of the appointment, the Ombudsman is not aware of marked overall decline in facility conditions or resident care in the facilities. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=Comz69 from Kurtzman Carson Consultants, LLC, claims agent. The ombudsman may be reached at: Joani Latimer State Long-Term Care Ombudsman 8004 Franklin Farms Drive Richmond, Virginia 23229 Phone: (804) 565-1600 Email: Joani.Latimer@dars.virginia.gov About Lavie Care Centers LaVie Care Centers, LLC, is the parent company of skilled nursing facility operators and providers, with facilities primarily located in Mississippi, North Carolina, Pennsylvania and Virginia. The company operates 43 licensed facilities, with 4,300 beds, providing short-term rehabilitation, comprehensive post-acute care, and long-term care to its residents. On June 2 and 3, 2024, LaVie Care Centers and 281 affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Lead Case No. 24-55507), before Judge Paul Baisier in Atlanta. The Debtors tapped McDermott Will & Emery, LLP as legal counsel; Stout Capital, LLC as investment banker; and Ankura Consulting as financial advisor. M. Benjamin Jones, senior managing director at Ankura, serves as the Debtors' chief restructuring officer. Kurtzman Carson Consultants, LLC is the claims agent, and maintains the page http://www.kccllc.com/LaVie The U.S. Trustee for Region 21 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. Troutman Pepper Hamilton Sanders, LLP and FTI Consulting, Inc. serve as the committee's legal counsel and financial advisor, respectively. Joani Latimer is the patient care ombudsman appointed in the cases. LEGACY AT WILLOW: Fitch Affirms 'BB-' Issuer Default Rating ----------------------------------------------------------- Fitch Ratings has affirmed Legacy at Willow Bend's (LWB) Issuer Default Rating (IDR) at 'BB-'. Fitch has also affirmed approximately $45 million of series 2016 fixed-rate revenue bonds issued by the New Hope Cultural Education Facilities Finance Corporation on behalf of LWB at 'BB-'. The Rating Outlook is Stable. Entity/Debt Rating Prior ----------- ------ ----- Legacy Willow Bend (The) (TX) LT IDR BB- Affirmed BB- Legacy Willow Bend (The) (TX) /General Revenues/1 LT LT BB- Affirmed BB- The affirmation of the 'BB-' reflects persistently weak operating performance and a balance sheet consistent with the lower end of the 'bb' financial profile. Fitch has also incorporated moderate additional risk from LWB's approximately $30 million, 30 independent living unit (ILU) expansion called the Flats. LWB has been marketing the hybrid homes for the past year. As of April of 2025, only 13 of the 30 planned units were sold. If they are filled, the additional ILUs should improve LWB's unit mix and likely improve profitability ratios after the project stabilizes. Management has limited ability to increase revenues and contain costs, leaving LWB vulnerable to external operating pressures with its minimal balance sheet cushion. LWB's unit mix includes more healthcare capacity than the community has needed. This is reflected in operating ratios exceeding 105% over the past three fiscal years and critically weak maximum annual debt service (MADS) coverage, including a covenant violation in fiscal 2021 (ended September 30). SECURITY The bonds are secured by a gross revenue pledge, mortgage pledge, and debt service reserve fund. KEY RATING DRIVERS Revenue Defensibility - 'bbb' Good Service Area LWB's ILU occupancy has consistently remained in the mid-to-high-90% range. At the end of December of 2024, ILU occupancy averaged 96%. Strong ILU occupancy generally indicates robust demand. Occupancy has improved in other areas of care as well, returning to levels above 85% across the continuum from lows near 80% in the assisted living units (ALUs), 70% in the memory care units (MCUs), and 55% in skilled nursing facility (SNF). Fitch expects LWB to maintain occupancy at the improved levels. Marketing for the 30 expansion units began in April of 2024. As of April 2025, 13 units were presold with 10% deposits. In April 2024, LWB had 25 $1,000 priority depositors. Management has hired new marketing staff and expects presales to improve. LWB is uniquely positioned as the only Jewish-sponsored life plan community (LPC) in its primary market area around Plano, TX. Demographic indicators are sound, as the Dallas area has population growth above the national average and the housing market remains robust. However, competition for senior living is strong in the service area. LWB has a solid track record of annual increases in both its monthly service and entrance fees in recent years. Operating Risk - 'bb' Persistent Operating Pressures Weaken Cost Management As a predominantly type A contract provider, LWB is limited in its ability to manage healthcare costs. LWB's profitability ratios have weakened since 2019, with operating ratios exceeding 100% from 2020 through the 1Q25, compared with average ratios in the low-90% range from 2016 through 2019. Similarly, net operating margin (NOM) became negative in 2021 and 2022, compared with levels generally above 4% previously. Over the Outlook period, Fitch expects operating ratios to continue to near 100%. NOM-Adjusted (NOMA) fell from levels consistently above 20% prior to 2020 to 12% or lower since then. Excluding the expansion project, management expects to maintain capex spending below 70% of depreciation over the next several years. Average age of plant was approximately 13 years at YE 2024. LWB's capital-related metrics have a historical average revenue-only MADS coverage of approximately 0.3x over the past five years. MADS represented a moderate 10.2% of 2024 revenues. Revenue-only MADS coverage and debt-to-net available were weak in 2024 at 0.4x and 9.3x, respectively. Financial Profile - 'bb' Thin Balance Sheet LWB's financial profile is rated 'bb'. At fiscal YE 2024, LWB had approximately $42.6 million of debt. Unrestricted cash and investments measured approximately $15 million. Fitch's forward-looking base case shows LWB maintaining operating and financial metrics improving as the 30 expansion ILUs stabilize. Net entrance fees are expected to remain stable and consistent with historical results. In a stress case, LWB's cash-to-adjusted debt and MADS coverage levels remain consistent with the 'BB-' rating. Cash has been above 200 days cash on hand (DCOH) for the past several years and is not an asymmetric risk. LWB's entrance fee refund policy triggers refunds when the resident leaves the community and the unit is resold, rather than when the resident leaves the ILU. This policy increases the potential for cash flow disruption due to refund unpredictability. Asymmetric Additional Risk Considerations No asymmetric risks were relevant to the rating determination. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Cash-to-debt that approaches 25% without the expectation of a recovery; - Presales below 70% before construction begins; - An extended presale period requiring more than 18 months to achieve 70% presales; - Failure to meet financial covenants; - Debt service coverage ratio (DSCR) near or below 0.5x; - Cash transfers outside the obligated group. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Operating ratios sustained near or below 100%; - Revenue-only MADS coverage sustained above 0.5x; - Cash-to-adjusted debt sustained above 40%. PROFILE LWB is a Type A LPC located in Plano, TX approximately 20 miles north of Dallas. LWB opened in April 2008 and has 114 ILUs (102 apartments and 12 villas), 40 ALUs, 18 memory support suites, and 60 SNF beds. Lifecare residents are primarily on the 90% refundable entrance fee plan. Management has set aside up to six ILUs to be used as rentals for residents who do not have the financial resources for the lifecare contract. LWB is subject to an annual 1.2x DSCR covenant minimum and a liquidity covenant minimum of 150 DCOH. LWB's sole corporate parent is Legacy Senior Communities (LSC), which manages LWB under a management agreement. Fitch's analysis is based on LWB, which is the only obligated group member. Sources of Information In addition to the sources of information identified in Fitch's applicable criteria specified below, this action was informed by information from Lumesis. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. LIFEPOINT HEALTH: Moody's Ups CFR to B2 & Alters Outlook to Stable ------------------------------------------------------------------ Moody's Ratings upgraded the ratings of Lifepoint Health, Inc. ("Lifepoint"), including the Corporate Family Rating to B2 from B3, and Probability of Default Rating to B2-PD from B3-PD. Moody's also upgraded the company's ratings on the senior unsecured notes to Caa1 from Caa2, and affirmed the B2 ratings of the company's backed senior secured term loan B and senior secured notes. At the same time, Moody's revised the outlook to stable from positive. The ratings upgrade reflects Moody's expectations of mid-single digit revenue growth and solid operating performance. Moody's expects that the company's leverage will remain under 6.0x in the next 12-18 months, while generating positive free cash flow. Margins will improve from higher reimbursement and the ongoing change in service offering mix with the higher margin behavioral health and rehabilitation segments. These increases may be partially offset by higher inflationary costs. Moody's expects that Lifepoint will use its excess free cash to repay its outstanding ABL facility balance, which will lower interest costs. The stable outlook reflects Moody's expectations that Lifepoint will maintain solid credit metrics but will also remain highly reliant on government payors and vulnerable to potential reimbursement changes. RATINGS RATIONALE Lifepoint's B2 CFR reflects the company's elevated but improving financial leverage of 5.6x. Moody's forecasts leverage to decline to around 5.2x over the next 12 to 18 months. Moody's calculations of EBITDA deducts distributions made to non-controlling interests in JV, which are a material for the in-patient rehabilitation (IRF) business. Deleveraging has been driven by improved volumes, and the realization of many of the company's cost reduction initiatives. Moody's anticipates that the company will remain balanced in its approach to M&A and new facility additions. Lifepoint's combination of acute care, rehabilitation and behavioral health supports solid organic growth with many opportunities for expansion with acute care hospitals serving as referral source to its other business lines. Lifepoint's rating is also supported by the company's large scale and good geographic diversity. Moody's expects that Lifepoint will maintain very good liquidity for the next year. The company reported $113 million of cash as of December 31, 2024 which together with revolver availability provides a buffer against negative free cash flow. The company's $1 billion ABL revolver (unrated, expiring in January 2030), has about $280 million used as of December 31, 2024. The current usage on the revolver was mainly related to the one-time impact from Change Healthcare that delayed payments to Lifepoint. Moody's forecasts Lifepoint will repay its revolver in 2025, consistent with company guidance. The company's senior secured term loans and senior secured notes are rated B2, same as the B2 corporate family rating. There is subordination to the asset-based revolver which has a first lien on certain accounts receivable, which is partially offset from the material level of junior capital provided by the $1.3 billion of unsecured debt. The Caa1 rating on the company's unsecured notes is two notches below the B2 corporate family rating and reflects their effective subordination to a material level of secured debt. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade the ratings if Lifepoint improves profitability and maintains balanced financial policies and good liquidity. Ratings could be upgraded if debt/EBITDA is below 5 times. Moody's could downgrade the ratings if the company's liquidity deteriorates or if the operating environment weakens significantly including margin pressure. Ratings could be downgraded if financial policies become more aggressive including debt-financed dividends or leveraging acquisitions. Quantitatively ratings could be downgraded if debt/EBITDA was sustained above 6 times. Lifepoint Health, Inc., headquartered in Brentwood, Tennessee, is an operator of general acute care hospitals, community hospitals, regional health systems, physician practices, outpatient centers and post-acute care facilities in non-urban markets. The company operates 60 community hospitals in 31 states, approximately 46 rehabilitation facilities and 23 behavioral health hospitals, and 200 outpatient centers under the private ownership of funds affiliated with Apollo Global Management, LLC. Revenues totaled over $10.1 billion for the LTM December 31, 2024. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. LINDO HOLDINGS: Seeks to Use Cash Collateral -------------------------------------------- Lindo Holdings, LLC asked the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, for authority to use cash collateral. The Debtor owns and manages a five-unit investment property located at 236 S. Curtis Avenue, Alhambra, California. Prior to the filing, the Debtor had one secured lender, First General Bank, holding a mortgage lien on the property. The Debtor reserves the right to challenge the extent and priority of any lien on the property and cash collateral. The Debtor generates rental income from the property, with monthly revenues ranging between $7,500 and $12,500. At the time of filing, the Debtor had approximately $10,000 in its operating account. The rental income and operating account balance constitute the "cash collateral" in question. The Debtor filed for Chapter 11 relief to halt a foreclosure sale scheduled for April 17 on the Curtis Avenue property. The goal is to restructure its debt and propose a reorganization plan that pays the liquidation value to unsecured creditors and services the debt to First General Bank over time. The Debtor requires the use of cash collateral to fund necessary operating expenses of the rental business. The Debtor acknowledges that First General Bank has a lien on the cash collateral. To provide adequate protection, the Debtor proposed granting the bank a replacement lien on post-petition collateral to the extent its pre-bankruptcy collateral is diminished by the use of cash collateral. This approach is consistent with 11 U.S.C. Section 361(2), which allows for the granting of a replacement lien as a means of providing adequate protection. A hearing on the matter is set for May 27, at 1 p.m. A copy of the motion is available at https://urlcurt.com/u?l=8DGaR1 from PacerMonitor.com. About Lindo Holdings Lindo Holdings, LLC holds ownership of the property situated at 236 S. Curtis Avenue in Alhambra, Calif., with an estimated worth of approximately $2.6 million. Lindo Holdings sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-13059) on April 2, 2025. In its petition, the Debtor reported total assets of $2,600,061 and total liabilities of $1,500,738. Judge Deborah J. Saltzman handles the case. The Debtor is represented by Marc Aaron Goldbach, Esq., at Goldbach Law Group. LIVEONE INC: Preliminary FY25 Results Includes Revenues of $112M+ ----------------------------------------------------------------- LiveOne, an award-winning, creator-first, music, entertainment, and technology platform, announced preliminary financial results for its fiscal year ended March 31, 2025 and updates to certain of its other metrics. * Audio Revenue of $108M+ and Adjusted EBITDA* of $16M+ * Subscribers and ad-supported users exceeded 1.45M * Extinguished $7M+ of liabilities, including paying off $4.1M of East West Bank credit line * Extended $5M payables to long-term liabilities * Expanded restructuring efforts, cutting $40M in annualized costs since December 2024 * Acquired 1.47M PodcastOne (Nasdaq: PODC) shares at average price of $2.22 since March 2024, including 550K shares in Q4 Fiscal 2025 Robert Ellin, CEO of LiveOne, commented, "I'm proud of my team for surviving and thriving amidst the Tesla deal's changes. We've delivered outstanding results: * 50%+ car conversions * 5+ B2B deals generating $44M in new revenue * Multiple additional deals poised to launch shortly Notably, we're trading at just 50% of revenues, presenting a massive opportunity for shareholders to benefit from our growth potential." About LiveOne Headquartered in Beverly Hills, California, LiveOne, Inc. -- www.liveone.com -- is a creator-first, music, entertainment and technology platform focused on delivering premium experiences and content worldwide through memberships and live and virtual events. The Company is a pioneer in the acquisition, distribution and monetization of live music events, Internet radio, podcasting/vodcasting and music-related membership, streaming and video content. Through its comprehensive service offerings and innovative content platform, it provides music fans the ability to listen, watch, attend, engage and transact. Serving a global audience, the Company's mission is to bring the experience of live music and entertainment to consumers wherever music and entertainment is watched, listened to, discussed, deliberated or performed around the world. Los Angeles, Calif.-based Macias Gini & O'Connell LLP, the Company's auditor since 2022, issued a "going concern" qualification in its report dated July 1, 2024. The report cited that the Company has suffered recurring losses from operations, negative cash flows from operating activities and has a net capital deficiency. These matters raise substantial doubt about the Company's ability to continue as a going concern. LOCAL EATERIES: Trustee Taps Crosslin CPAs as Accountant -------------------------------------------------------- Michael Abelow, trustee of Local Eateries, Inc. and its affiliates, seeks approval from the U.S. Bankruptcy Court for the Middle District of Tennessee to employ Crosslin, CPAs as accountant. Crosslin will provide an independent opinion that the parties and the Court could utilize for purposes of further settlement discussions and/or contested proceedings if necessary. The firm will be paid at these rates: Principals $350 to $475 per hour Directors/Managers $225 to $300 per hour Professional Staff $125 to $200 per hour Rhonda W. Sides, CPA, a partner of Crosslin, CPAs, assured the court that she is a "disinterested person" within the meaning of 11 U.S.C. 101(14). The firm can be reached through: Rhonda W. Sides, CPA Crosslin, CPAs 3803 Bedford Avenue, Suite 201 Nashville, TN 37215 Phone: (615) 320-5500 About Local Eateries Inc. Local Eateries Inc., operating as Porter Road, is a Nashville-based butcher shop, specializing in US pasture-raised meats such as beef, pork, chicken, and other market products, all free from hormones and antibiotics. The Company operates a retail shop and provides nationwide delivery via its online platform, offering premium, dry-aged meats to customers across the U.S. Local Eateries Inc. and its affiliates sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Tenn. Lead Case No. 25-01131) on March 17, 2025. In its petition, Local Eateries reports estimated assets between $1 million and $10 million and estimated liabilities between $10 million and $50 million. Honorable Bankruptcy Judge Charles M. Walker handles the case. Dunham Hildebrand Payne Waldron PLLC serves as the Debtors' counsel. LUKITAS INC: Seeks Approval to Hire TNCPA as Accountant ------------------------------------------------------- Lukitas, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to hire TNCPA as accountant. The accountant will assist the Debtor in reconciling its accounting records and ascertaining as to which income tax returns are due on behalf of the estate. The accountant's compensation is $1200 per month starting March 1, 2025. As disclosed in the court filings, TNCPA has no connection with the debtor, creditors, any other party in interest, their respective attorneys and accountants, the United States Trustee, or any person employed in the office of the United States Trustee within the meaning of 11 U.S.C. Sec. 101(14) and has not served as an examiner in this case. The accountant can be reached through: Han Nguyen TNCPA 11209 Bellaire Blvd, Cuite C13A Houston, TX 77072 Phone: (281) 530-1115 About Lukitas Inc. Lukitas, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 25-30321) on January 20, 2025, with up to $500,000 in assets and up to $1 million in liabilities. James Burciaga, owner and president of Lukitas, signed the petition. Judge Eduardo V. Rodriguez oversees the case. The Debtor is represented by Vicky M. Fealy, Esq., at Fealy Law Firm, PC. MAGIC CAR: Court OKs Deal to Use ReadyCap's Cash Collateral ----------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California, San Fernando Division, approved a stipulation between Magic Car Rental, Inc. and ReadyCap Lending, LLC, allowing the company to use its lender's cash collateral. The stipulation authorizes Magic Car Rental to use cash collateral starting April 1 to pay expenses in accordance with its budget, which shows monthly expenses of $18,500. As protection, the lender will be granted a superpriority administrative claim and will receive a monthly payment in accordance with the budget. ReadyCap asserts a senior lien on the cash collateral and it is purportedly secured by, among other things, liens in and to the real and personal property of the company. On June 22, 2020, Magic Car Rental entered into a first business loan agreement with the lender, whereby the lender made a loan in the original principal amount of $2.7 million. On August 18,2021, Magic Car Rental entered into a second business loan agreement with the lender, whereby the lender made a loan in the original principal amount of $1.315 million. About Magic Car Rental Inc. Magic Car Rental, Inc. operates a car rental business and owns two real properties in California, which generate rental income. Magic Car Rental filed Chapter 11 petition (Bankr. C.D. Calif. Case No. 25-10123) on January 24, 2025, listing up to $10 million in both assets and liabilities. Simon Simonyan, chief executive officer of Magic Car Rental, signed the petition. Judge Victoria S. Kaufman oversees the case. The Debtor is represented by Anyama Law Firm and A.O.E. Law & Associates. Ready Cap Lending LLC, as lender, is represented by: Scott B. Lieberman, Esq. Finlayson Toffer Roosevelt & Lilly, LLP 15615 Alton Parkway, Suite 270 Irvine, California 92618 Telephone: 949.759.3810 Facsimile: 949.759.3812 slieberman@ftrlfirm.com MARSH TOWN: Case Summary & Seven Unsecured Creditors ---------------------------------------------------- Debtor: Marsh Town Properties, LLC 30 Dove Ct. Richmond Hill GA 31324 Business Description: Marsh Town Properties, LLC is a real estate company based in Richmond Hill, GA. It owns a residential property located at 365 Warnell Drive, valued at $1.1 million. Chapter 11 Petition Date: May 2, 2025 Court: United States Bankruptcy Court Southern District of Georgia Case No.: 25-40379 Judge: Hon. Edward J Coleman III Debtor's Counsel: Jon Levis, Esq. LEVIS LAW FIRM, LLC Post Office Box 129 Swainsboro GA 30401 Tel: 478-237-7029 E-mail: levis@levislawfirmllc.com Total Assets: $1,133,406 Total Liabilities: $1,168,748 The petition was signed by Matthew Marston as chief executive manager. A full-text copy of the petition, which includes a list of the Debtor's seven unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/XL2LSTQ/Marsh_Town_Properties_LLC__gasbke-25-40379__0001.0.pdf?mcid=tGE4TAMA MERIDIAN WEIGHT: Lender Seeks to Prohibit Cash Collateral Access ---------------------------------------------------------------- Kapitus Servicing, Inc., acting as the authorized sub-servicing agent for Kapitus LLC, asked the U.S. Bankruptcy Court for the Southern District of Mississippi, Jackson, to prohibit Meridian Weight Management Center, LLC from using cash collateral, or in the alternative, to impose strict conditions and require adequate protection for any continued use. Meridian filed for Chapter 11 bankruptcy on Feb. 4 and remains in control of its business operations. In March last year, Kapitus loaned $180,000 to Meridian, secured by nearly all of Meridian's personal property including cash, accounts receivable, inventory, and other assets. Kapitus perfected its security interest by filing a UCC-1 Financing Statement in Mississippi. As of the bankruptcy filing, Meridian had defaulted on the loan, owing at least $255,114. Despite this, and without Kapitus' consent, Meridian is believed to be continuing to use the cash collateral without providing any adequate protection, which is a violation of Section 363 of the Bankruptcy Code. Kapitus argued that its collateral, primarily consisting of "soft assets" like cash and receivables, diminishes in value with ongoing use and must be protected by specific safeguards. Because Meridian has not provided transparency or financial reporting, Kapitus contended that the creditor's interests are not being adequately safeguarded. Accordingly, Kapitus requested that the court either prohibit further use of the cash collateral or condition its use on protections including monthly adequate protection payments, replacement liens, detailed budgets and spending limits, ongoing financial disclosures, proof of insurance with Kapitus named as loss payee, and the right to access Meridian's books and premises. Kapitus also sought a superpriority administrative expense claim in case the protections ultimately provided prove insufficient. A court hearing is set for May 22. About Meridian Weight Management Center Meridian Weight Management Center, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Miss. Case No. 25-00302) on February 4, 2025, listing up to $50,000 in assets and between $100,001 and $500,000 in liabilities. Judge Katharine M. Samson presides over the case. Douglas M. Engell, Esq., represents the Debtor as legal counsel. Kapitus Servicing, Inc. as authorized sub-servicing agent of Kapitus LLC, is represented by: Erno D. Lindner, Esq. Baker, Donelson, Bearman, Caldwell & Berkowitz, PC 633 Chestnut Street, Suite 1900 Chattanooga, TN 37450 Telephone: (423) 209-4206 elindner@bakerdonelson.com -- and -- R. Spencer Clift, III, Esq. Baker, Donelson, Bearman, Caldwell & Berkowitz, PC 165 Madison Avenue, Suite 2000 Memphis, TN 38103 Telephone: (901) 577-2216 sclift@bakerdonelson.com MESEARCH MEDIA: Trustee Taps Bronder & Company as Accountant ------------------------------------------------------------ Crystal H. Thornton-Illar, the Trustee for Mesearch Media Technologies Limited, seeks approval from the U.S. Bankruptcy Court for the Western District of Pennsylvania to employ Bronder & Company, P.C. as her accountant. The firm will render these services: a. prepare the Debtor's federal and state tax returns; b. advice of tax matters; c. prepare any bookkeeping entries and accounting transactions necessary in connection with the preparation of the Debtor's tax returns; d. prepare and post any adjusted entries; and e. any other general accounting services that become necessary in this bankruptcy case. The firm's hourly rates are: Professional Staff $200 to $420 Administrative Staff $100 to $105 As disclosed in the court filings, Bronder & Company is a "disinterested" person as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Michael H. Bronder, CPA Bronder & Company, P.C. 235 Alpha Drive, Suite 101 Pittsburgh, PA 15238 Phone: (412) 963-1270 x212 About MeSearch Media Technologies RMS Funding Company, LLC, Game Creek Holdings, LLC and Trib Total Media, LLC filed involuntary Chapter 11 petition against MeSearch Media Technologies Limited (Bankr. W.D. Pa. Case No. 24-21982) on August 13, 2024. Kirk B. Burkley, Esq., at Bernstein-Burkley, P.C. represents the petitioning creditors in MeSearch's bankruptcy case. Judge John C. Melaragno oversees the case. David L. Fuchs, Esq., at Fuchs Law Office, LLC serves as the Debtor's counsel. MI LIQUIDATION: Trustee Taps Womble Bond as Special Counsel ----------------------------------------------------------- George Sanderson III, the trustee appointed in the Chapter 11 case of MI Liquidation, Inc., seeks approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina to employ Womble Bond Dickinson (US) LLP as special purpose counsel. The firm will assist the Trustee in reviewing and analyzing claims and, if necessary, to file and to prosecute objections to claims. Among the claims remaining to be administered in this case, there are claims of approximately 80 individual tort claimants totaling approximately $592,339,291.76 that the Trustee must review to determine if the claims are objectionable. James S. "Charlie" Livermon III, a partner at Womble Bond Dickinson (US) LLP, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: James S. Livermon, III, Esq. Womble Bond Dickinson (US), LLP 555 Fayetteville Street, Suite 1100 Raleigh, NC 27601 Telephone: (919) 755-2148 Facsimile: (919) 755-6048 charlie.livermon@wbd-us.com About MI Liquidation MI Liquidation, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-01757) on May 25, 2024, listing $500,001 to $1 million in assets and $10,000,001 to $50 million in liabilities. Judge David M. Warren presides over the case. The Debtor tapped John A. Northen, Esq., at Northen Blue, LLP as counsel. George Sanderson III was appointed as trustee in the Chapter 11 case. The trustee tapped William Murray, CPA as insurance consultant. MID-COLORADO INVESTMENT: Joli Lofstedt Named Subchapter V Trustee ----------------------------------------------------------------- The Acting U.S. Trustee for Region 19 appointed Joli Lofstedt, Esq., as Subchapter V trustee for Mid-Colorado Investment Company, Inc. Ms. Lofstedt, a practicing attorney in Louisville, Colo., will be paid an hourly fee of $390 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Lofstedt declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Joli A. Lofstedt, Esq. P.O. Box 270561 Louisville, CO 80027 Phone: (303) 476-6915 Fax: (303) 604-2964 Email: joli@jaltrustee.com About Mid-Colorado Investment Company Mid-Colorado Investment Company provides bulk water services to a community in El Paso County and operates a small cattle ranch. Mid-Colorado Investment Company filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Colo. Case No. 25-11742) on March 31, 2025, listing up to $10 million in assets and up to $50,000 in liabilities. Charles A. Hagedorn, president and treasurer of Mid-Colorado Investment Company, signed the petition. Judge Joseph G. Rosania, Jr. oversees the case. The Debtor tapped Daniel J. Garfield, Esq., at Fairfield and Woods, PC as bankruptcy counsel and Hackstaff Snow Atkinson & Griess, LLC as special counsel. MORGUARD CORP: DBRS Confirms BB(high) Issuer Rating --------------------------------------------------- DBRS Limited confirmed the Issuer Rating and Senior Unsecured Debentures rating of Morguard Corporation at BB (high) and changed the trends to Positive from Stable. In addition, Morningstar DBRS changed the recovery rating of the Senior Unsecured Debentures to RR2 from RR3. KEY CREDIT RATING CONSIDERATIONS The Positive trends reflect Morningstar DBRS' modestly upward assessment of Morguard's financial risk assessment (FRA) resulting from sustained deleveraging initiatives undertaken in the past year. The trends also take into consideration Morguard's consistency with Morningstar DBRS' prior-year expectations for both leverage and coverage for a positive rating action. The Company's leverage as measured by Total Debt-to-EBITDA of 9.1 (x) times was consistent with Morningstar DBRS' prior-year expectations while coverage as measured by EBITDA Interest coverage ratio of 2.1 (x) for year-end 2024 was better than Morningstar DBRS' prior year's expectations of 2.0x. Furthermore, Morguard's business risk assessment (BRA) factors, namely Diversification and Lease Maturity and Tenant Quality, have been revised modestly higher. Morguard's diversification has improved on account of improvement in geographical diversification, partially driven by modest reduction in Ontario's geographic concentration following the Company's sale of majority of its hotel portfolio last year and a recent strategic acquisition of 20% interest in Telus Garden, an office asset in Downtown Vancouver in Q4 2024. The hotel dispositions have also modestly improved Lease Maturity and Tenant Quality as the strategic shift has resulted in higher-credit-quality tenants contributing a greater proportion of Morguard's overall revenues. Taken together, these BRA and FRA revisions are credit positive in nature and provide a higher tolerance for leverage (i.e., total debt-to-EBITDA) for a given credit rating. Morningstar DBRS also continues to attribute credit rating benefit to Morguard's holdings in Morguard Real Estate Investment Trust (MRT) and Morguard North American Residential REIT (MRG; together with MRT, the REITs). Morningstar DBRS continues to believe that ownership in the REITs, forming core long-term investment holdings of Morguard, provides the Company with reliable quarterly cash distributions that it can use for debt service, thus warranting a modest credit rating uplift. CREDIT RATING DRIVERS Morningstar DBRS would consider a credit ratings upgrade should Morguard perform consistently with our expectations such that the Company's total debt-to-EBITDA and EBITDA interest coverage continue to remain in the low 9.0x range and low 2.0x range, respectively, in the next 12 months, all else being equal. Morningstar DBRS would consider changing the trend to Stable if Morguard's total debt-to-EBITDA were to deteriorate above 9.8x and EBITDA interest coverage were to deteriorate below 2.0x on a sustained basis, all else equal, or if Morningstar DBRS were to reassess the credit rating uplift provided by distributions received from the REITs. FININCIAL OUTLOOK Morningstar DBRS anticipates Morguard's leverage measured by total debt-to-EBITDA will remain in the low 9.0x range in the near term owing to the consistent operational performance within its diversified portfolio and then modestly improve in the high 8.0x range over the medium term on account of its near-term capital improvement and ongoing development initiatives, modest progress in occupancy, and same property NOI growth. Similarly, EBITDA-to-interest coverage is expected to remain relatively steady in the low 2.0x range in the near to medium term as interest expenses are expected to modestly increase on account of capitalized interest related to ongoing development projects and refinancing of near-term mortgage maturities at elevated interest rates. Morningstar DBRS believes that Morguard has additional flexibility in the current credit rating category from the upward revision in its business risk assessment (BRA) factors. CREDIT RATING RATIONALE The credit rating confirmations are supported by Morguard's (1) well-diversified, stable and recurrent income-producing portfolio through economic cycles; (2) strong asset type and tenant diversification; and (3) key investment holdings in publicly listed REITs like MRT and MRG. However, the credit ratings are constrained by the Company's (1) high proportion of secured debt; (2) lack of scale in any markets in which it operates; and (3) the smaller portfolio size on both EBITDA and square footage bases relative to higher-rated real estate entities in Morningstar DBRS' coverage universe. Morningstar DBRS has changed the recovery rating on Morguard's Senior Unsecured Debentures to RR2 from RR3 because of its improved assessment of a potential recovery in a default scenario. However, the Senior Unsecured Debentures rating remains unchanged despite this upward revision in the instrument's recovery rating. Notes: All figures are in Canadian dollars unless otherwise noted. MOYVANE-ARABIAN PROPERTIES: Taps Derbes Law Firm as Legal Counsel ----------------------------------------------------------------- Moyvane-Arabian Properties, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Louisiana to hire The Derbes Law Firm, L.L.C. as its counsel. The firm's services include: (a) providing legal advice with respect to its powers and duties as debtor-in-possession in the continued management of its business and property; (b) attending meetings with representatives of its creditors and other parties in interest; (c) taking all necessary action to protect and preserve the Debtor's estate; (d) preparing on behalf of the Debtor motions, applications, answers, orders, reports, and papers necessary to the administration of the estate; (e) negotiating and preparing on the Debtor's behalf a plan of reorganization, and all related agreements and/or documents, and taking any necessary action on behalf of the Debtor to obtain confirmation of such plan; (f) appearing before this Court to protect the interests of the Debtor before this Court; (g) performing all other necessary legal services and provide all necessary legal advice to the Debtor in connection with this Chapter 11 case; (h) advising the Debtor concerning executory contract and unexpired lease assumptions, assignments and rejections and lease restructuring and recharacterizations; and (i) commencing and conducting litigation necessary and appropriate to assert rights held by the Debtor, protect assets of the Debtor's Chapter 11 estate or otherwise further the goal of completing the Debtor's successful reorganization. The firm will be paid at these rates: Albert J. Derbes, IV, Esq. $495 per hour Mark S. Goldstein, Esq. $495 per hour Wilbur J. "Bill" Babin, Jr., Esq. $495 per hour Patrick S. Garrity, Esq. $495 per hour Beau P. Sagona, Esq. $475 per hour Eric J. Derbes, Esq. $425 per hour Frederick L. Bunol, Esq. $390 per hour Hugh J. Posner, CPA $250 per hour Bryan J. O'Neill, Esq. $280 per hour Notary $100 per hour Jared S. Scheinuk, Esq. $280 per hour Paralegals $80 per hour McKenna Dorais, Esq. $175 per hour Legal Assistant $60 per hour On April 9, 2025, the firm received a retainer from Michael Baker, a member of the Debtor, in the amount of $11,738. The firm Firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Patrick S. Garrity, Esq., a partner at Derbes Law Firm, L.L.C., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Patrick S. Garrity, Esq. Derbes Law Firm, L.L.C. 3027 Ridgelake Drive Metairie, LA 70002 Telephone: (504) 207-0913 Facsimile: (504) 832-0327 Email: pgarrity@derbeslaw.com About Moyvane-Arabian Properties, LLC Moyvane-Arabian Properties, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La. Case No. 25-10694) on April 9, 2025. At the time of filing, the Debtor estimated $500,001 to $1 million in assets and $100,001 to $500,000 in liabilities. Judge Meredith S Grabill presides over the case. Patrick S. Garrity, Esq. at The Derbes Law Firm, LLC represents the Debtor as counsel. MS FREIGHT: Seeks to Prohibit Cash Collateral Access ---------------------------------------------------- Wells Fargo Commercial Distribution Finance, LLC and affiliates asked the U.S. Bankruptcy Court for the Northern District of Mississippi to prohibit MS Freight Co., Inc. from using cash collateral. The creditors argued that MS Freight has used, and continues to use, the cash collateral, which consists of proceeds from certain secured assets, without the creditors' consent, adequate protection or a court-approved budget. The creditors assert that it holds first-priority perfected security interests in this collateral through multiple agreements and UCC filings, with a total debt owed by the Debtor of over $456,000. The creditors claimed that the Debtor's unauthorized use of the collateral is causing its value to diminish and that there have been "out-of-trust" sales—where the Debtor sold hard collateral like equipment without remitting proceeds to Wells Fargo. Additionally, the creditors demanded strict limitations and conditions on any potential use of cash collateral moving forward, including compliance with a budget, insurance coverage, access to records, and an agreement that no third parties benefit from any court orders. The creditors emphasized that the burden is on the Debtor to prove that its interests are adequately protected, and it urges the court to either prohibit further use of the cash collateral or enforce detailed protective measures A court hearing is scheduled for June 11. About MS Freight Co., Inc. MS Freight Co., Inc. filed Chapter 11 petition (Bankr. N.D. Miss. Case No. 24-13745) on November 25, 2024, listing up to $10 million in both assets and liabilities. Will White, president of MS Freight Co., signed the petition. Judge Jason D. Woodard oversees the case. Craig M. Geno, Esq., at the Law Offices of Craig M. Geno, PLLC, represents the Debtor as bankruptcy counsel. Red Iron, as lender, is represented by P. Garner Vance, Esq. at Bradley Arant Boult Cummings, LLP. MULBERRY GROUP: Seeks to Hire Schreeder Wheeler as Legal Counsel ---------------------------------------------------------------- The Mulberry Group LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to hire Schreeder, Wheeler & Flint, LLP as counsel. The firm's services include: (a) preparing pleadings, schedules and statements of financial affairs, adversary proceedings and applications incidental to administering the Debtor's estate; (b) developing the relationship and status of the Debtor and handling of claims of creditors in the Debtor's Chapter 11 proceedings; (c) advising the Debtor of its rights, duties and obligations; (d) performing legal services incidental and necessary to the day-to-day operation of the Debtor including, but not limited to, institution and prosecution of necessary legal proceedings, debt restructuring, general business, corporate and legal advice and assistance necessary to the proper preservation and administration of the estate; (e) taking any and all necessary actions incident to the proper preservation and administration of the Debtor and to the conduct of its business; (f) preparing a plan of reorganization and disclosure statement; and (g) providing post-confirmation legal services in connection with the implementation of the plan. The firm will be paid at these rates: John A. Christy $595 per hour Jonathan A. Akins $485 per hour Jamie A. Christy $310 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. As disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: John H. Christy, Esq. Jonathan A. Akins, Esq. Schreeder, Wheeler & Flint, LLP 1100 Peachtree Street NE, Suite 800 Atlanta, GA 30309 Tel: (404) 681-3450 Email: jchristy@swfllp.com jakins@swfllp.com About The Mulberry Group LLC The Mulberry Group LLC operates as a real estate investment firm, providing rental properties and related property management services. The Mulberry Group LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-20508) on April 13, 2025, listing $1 million to $10 million in assets and $100,000 to $500,000 in liabilities. The petition was signed by S. Roger Cahoon as managing member. John A. Christy, Esq. at SCHREEDER, WHEELER & FLINT, LLP represents the Debtor as counsel. NANOVIBRONIX INC: Guarantees $360K Note Issued by ENvue ------------------------------------------------------- NanoVibronix, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on April 11, 2025, ENvue Medical Holdings, Corp., a wholly-owned subsidiary of the Company, issued a promissory note to Alpha Capital Anstalt in the principal amount of $360,000, together with all accrued interest thereon. The Note has a maturity date of June 11, 2025 and on the Maturity Date, the aggregate unpaid Principal Amount, all accrued and unpaid interest and all other amounts payable under the Note shall be due and payable. The Note bears interest at an annual rate equal to 8% and is payable "in kind" by adding such accrued interest to the Principal Amount. Pursuant to the terms of the Note, commencing on the date of the issuance and sale of any shares of common stock, par value $0.001 per share, or Common Stock Equivalents by the Company, the Lender may require ENvue to redeem all or a portion of the Note with the proceeds of such issuance and sale. The Redemption Right may be redeemed at any time after date of such issuance and sale by the Lender providing to ENvue written notice specifying the principal amount of the Note to be redeemed, and the Redemption Amount shall be due and payable by ENvue on the second business day after the date of such notice. The Note additionally provides for certain customary events of default which upon occurrence, the Lender may, at its option, declare the entire Principal Amount together with all accrued interest and all other amounts payable under the Note immediately due and payable, provided however, that if a bankruptcy event occurs, the Principal Amount and accrued interest on the Note shall become immediately due and payable without any notice, declaration or other act on the part of the Lender. In connection with ENvue's issuance of the Note, on April 11, 2025, the Company entered into that certain Guaranty in favor of the Lender, pursuant to which the Company has agreed to guarantee to the Lender the payment of all obligations and liabilities of ENvue under the Note, including, without limitation, for principal, interest and any other amounts due and payable by ENvue under the Note. Upon the occurrence of an Event of Default, the Guaranteed Obligations shall be deemed immediately due and payable at the election of Lender and the Company shall pay on demand the Guaranteed Obligations to Lender. About NanoVibronix Elmsford, N.Y.-based NanoVibronix, Inc., a Delaware corporation, commenced operations on October 20, 2003, and is a medical device company focusing on noninvasive biological response-activating devices that target wound healing and pain therapy and can be administered at home without the assistance of medical professionals. Southfield, Mich.-based Zwick CPA, PLLC, the Company's auditor since 2023, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has suffered recurring losses from operations and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about its ability to continue as a going concern. As of September 30, 2024, NanoVibronix had $4.7 million in total assets, $2.8 million in total liabilities, and $1.9 million in total stockholders' equity. NANOVIBRONIX INC: Regains Compliance with Nasdaq Equity Rule ------------------------------------------------------------ NanoVibronix, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company received a letter from the Nasdaq Stock Market LLC, notifying the Company that it has demonstrated compliance with the minimum bid price requirement pursuant to Nasdaq Listing Rule 5550(a)(2) and compliance with the minimum stockholder's equity requirement pursuant to Nasdaq Listing Rule 5550(b)(1) as required by the Hearing Panel's decision dated December 26, 2024. Pursuant to the Letter, the Company will be subject to a mandatory panel monitor for a period of one year from the date of the Letter. If, within that one-year monitoring period, Staff finds the Company again out of compliance with the Equity Rule that was subject of the exception, notwithstanding Rule 5810(c)(2), the Company will not be permitted to provide the Staff with a plan of compliance with respect to that deficiency and Staff will not be permitted to grant additional time for the Company to regain compliance with respect to that deficiency, nor will the company be afforded an applicable cure or compliance period pursuant to Rule 5810(c)(3). Instead, Staff will issue a Delist Determination Letter and the Company will have an opportunity to request a new hearing with the Panel or a newly convened Hearings Panel if the initial Panel is unavailable. About NanoVibronix Elmsford, N.Y.-based NanoVibronix, Inc., a Delaware corporation, commenced operations on October 20, 2003, and is a medical device company focusing on noninvasive biological response-activating devices that target wound healing and pain therapy and can be administered at home without the assistance of medical professionals. Southfield, Mich.-based Zwick CPA, PLLC, the Company's auditor since 2023, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has suffered recurring losses from operations and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about its ability to continue as a going concern. As of September 30, 2024, NanoVibronix had $4.7 million in total assets, $2.8 million in total liabilities, and $1.9 million in total stockholders' equity. NAUTICA'S EDGE: Seeks Subchapter V Bankruptcy in Georgia -------------------------------------------------------- On April 29, 2025, Nautica's Edge LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Georgia. According to court filing, the Debtor reports $505,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Nautica's Edge LLC Nautica's Edge LLC owns two properties in Atlanta, Georgia. The first is a rental home at 6550 Powers Ferry Rd NW, with an estimated value of $915,000. The second is a 3.52-acre undeveloped parcel at 6500 Powers Ferry Rd NW, valued at around $750,000. Nautica's Edge LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-54710) on April 29, 2025. In its petition, the Debtor reports total assets of $1,670,000 and total liabilities of $505,000. The Debtor is represented by Michael D Robl, Esq. at ROBL & BOWEN LLC. NAZARETH LIMO: Unsecureds Will Get 17% of Claims in Plan -------------------------------------------------------- Nazareth Limo, Inc., filed with the U.S. Bankruptcy Court for the Southern District of New York a Small Business Subchapter V Plan dated March 31, 2025. The Debtor is a New York Corporation organized under the laws of the State of New York since December 2011. The Debtor owns and operates a limousine and taxi service. The Debtor operates its business from the Debtor's Principal's home office located at 265 Mill River Road, Chappaqua, NY 10514. The Debtor's Principal manages and maintains the Debtor's daily business operations. The debtor's principal Savio Nazareth ("Debtor's Principal" or "SN") manages and maintains the Debtor's daily business operations. The Debtor's revenue significantly decreased this past year because of the Debtor's loss of a service contract with a vendor. To pay its vendors, the Debtor entered into merchant cash advances agreements for financing. The interest rates charged in the merchant cash advance agreements are extremely high; therefore, the Debtor filed this bankruptcy to successfully reorganize its debts and emerge as a profitable taxi and livery service business. The Debtor's Chapter 11 Plan estimates that the distributions to general unsecured creditors over the course of Debtor's 36-month plan will be at least $18,000.00 plus any additional monies recovered in the adversary proceeding against Windsor International Limo, Inc. to collect unpaid invoices owed to the Debtor; therefore, creditors will receive more in Chapter 11 than they would receive in a Chapter 7 Liquidation. Notwithstanding the above, the Debtor will make plan payments over the course of the 36-month plan totaling an amount greater than the creditors would receive in a Chapter 7 liquidation. Under the Plan, the Debtor proposes to pay Administrative Claims and Tax Claims in full. Debtor also proposes making on-going distributions to Secured Creditors beyond what the Secured Creditors would receive in a Chapter 7 liquidation. Class 4 consists of the allowed general unsecured claims. There are four allowed general unsecured claims. The holders of allowed general unsecured claims are as follows: NYS DTF's Claim No. 1 in the amount of $2,100.00, the unsecured portion of Chase's Claim No. 3, in the amount in the amount of $37,276.51, the IRS's Claim No. 4 in the amount of $1,038.05, and the Aspire's wholly unsecured Claim No. 5 in the amount of $64,864.85. The total sum of claim in Class 4 is approximately $105,279.41. Holders of Class 4 claims are expected to receive a distribution of approximately 17.00%. The holders of Class 4 claims are impaired under the Plan; therefore, holders of Class 4 claims are entitled to vote to accept or reject the Plan. Class 5 consists of the equity holder of the Debtor. Nazareth shall retain his Interest in the Debtor and continue to manage and maintain the Debtor's daily business operations and receive the same or similar compensation that he does now. Class 5 interests are unimpaired under the Plan and are deemed to have accepted the Plan. Except as set forth elsewhere in the Plan, all payments required to be made under the Plan shall be made by the Reorganized Debtor and will come from income earned ongoing operations of the Debtor. The Plan will also be funded from the recovery of funds from the adversary proceeding that is to be filed on behalf of the Debtor to collect receivables. A full-text copy of the Subchapter V Plan dated March 31, 2025 is available at https://urlcurt.com/u?l=m1zbqC from PacerMonitor.com at no charge. Counsel to the Debtor: James J. Rufo, Esq. Law Office of James J. Rufo 222 Bloomingdale Road, Suite 202 White Plains, NY 10605 Tel: (914) 600-7161 Email: jrufo@jamesrufolaw.com About Nazareth Limo Inc. Nazareth Limo, Inc., owns and operates a limousine and taxi service. The Debtor filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 24-23023) on Nov. 20, 2024. At the time of filing, the Debtor listed up to $50,000 in assets and $50,001 to $100,000 in liabilities. Judge Sean H Lane oversees the case. The Debtor tapped the Law Office of James J. Rufo as bankruptcy counsel. NESTWELL LLC: Seeks Chapter 11 Bankruptcy in Connecticut -------------------------------------------------------- On April 25, 2025, Nestwell LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Connecticut. 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 Nestwell LLC Nestwell LLC is a single asset real estate company with its principal place of business in Glastonbury, Connecticut. Nestwell LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Conn. Case No. 25-20403) on April 25, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge James J. Tancredi handles the case. NEW CHANCE: Seeks Chapter 11 Bankruptcy in California ----------------------------------------------------- On April 28, 2025, New Chance LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California. According to court filing, the Debtor reports $4.3 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About New Chance LLC New Chance LLC is a Los Angeles-based real estate investment company operating as a Single Asset Real Estate entity that owns multiple real estate properties across various California counties including Los Angeles, Fresno, San Diego, Orange, Contra Costa, Santa Clara, and Solano. New Chance LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-13483) on April 28, 2025. In its petition, the Debtor reports estimated assets of $3.3 million and liabilities of $4.3 million. NLC PRODUCTS: Gets Interim OK to Use Cash Collateral ---------------------------------------------------- NLC Products, Inc. got the green light from the U.S. Bankruptcy Court for the Eastern District of Arkansas, Central Division, to use its secured lender's cash collateral. The order penned by Judge Phyllis Jones authorized the Debtor's interim use of cash collateral to pay its expenses pending the final hearing on May 19. As protection from the Debtor's use of its cash collateral, Arvest Bank was granted replacement liens and security interests co-extensive with its pre-bankruptcy liens. The Debtor needs to access funds secured by Arvest Bank in order to continue daily operations including payroll, utilities, and vendor payments while it prepares a reorganization plan. The Debtor, a national e-commerce company with facilities in Little Rock and Clarksville, Arkansas, has no alternative funding sources and warns that without immediate access to cash, its operations and chances of reorganization will be jeopardized. About NLC Products Inc. NLC Products, Inc. is a privately held company specializing in niche catalog and e-commerce retail. Based in Arkansas, it operates a range of brands across various lifestyle segments, including gifts, apparel, and specialty merchandise. One of its notable subsidiaries is SGT GRIT, a brand dedicated to United States Marine Corps-themed apparel and accessories, which NLC acquired to expand its patriotic and military-focused offerings. NLC Products sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Ark. Case No. 25-11264) on April 14, 2025. In its petition, the Debtor reported total assets of $4,144,606 and total liabilities of $3,997,628. Judge Phyllis M. Jones handles the case. The Debtor is represented by Kevin P. Keech, Esq., at Keech LA Firm, PA. Arvest Bank, as lender, is represented by: Geoffrey B. Treece, Esq. Quattlebaum, Grooms and Tull 111 Center Street, Suite 1900 Little Rock, AR 72201 Telephone: 501.379.1735 (Direct) Facsimile: 501.379.1701 (Direct) Email: gtreece@qgtlaw.com NORTHERN MARIANA CPA: Fitch Affirms BB Rating on $9.6MM Rev. Bonds ------------------------------------------------------------------ Fitch Ratings has affirmed the 'BB' rating on approximately $9.6 million of outstanding Commonwealth Ports Authority (CPA), Commonwealth of the Northern Mariana Islands (CNMI) senior series 1998A and 2005A seaport revenue bonds. The Rating Outlook is Stable. RATING RATIONALE The rating reflects the essentiality of the seaport system to a small, island economy with high exposure to economic volatility from tourism and a nearly 100% import-based cargo operation. The rating also considers CPA's sustained revenue performance and history of controlled expenses. Fitch expects CPA to maintain financial metrics supportive of the current rating level, with rating case debt service coverage ratios (DSCR) averaging 1.8x through 2028. CPA also benefits from robust liquidity levels and low annual debt service obligations through debt maturity in 2031, which mitigate the potential impact of tariff volatility on maritime trade and volumes. Despite strong financial performance without a material increase in leverage, the current rating is consistent with the 'BB' level given the potential for heightened revenue volatility due to uncertainty related to changes in U.S. and foreign trade policy. KEY RATING DRIVERS Revenue Risk - Volume - Weaker Concentrated but Vital Cargo Base: The seaports remain essential for the import of goods to an island economy. However, CNMI's exposure to macroeconomic shocks and heavy reliance on a limited tourist base weaken growth prospects. Food and fuel-related cargos account for approximately 50% of import-dependent revenue tonnage, which provides volume stability. Revenue Risk - Price - Midrange Limited Rate Increases: CPA benefits from unlimited legal authority to increase rates on seaport system tenants and users as needed to meet a 1.25x coverage ratio. A lack of willingness to increase rates over a prolonged period, with the last rate increase occurring in 2009, indicates some political pressure on rate setting. Infrastructure Dev. & Renewal - Midrange Modest Capital Improvement Plan: The ports are in satisfactory condition and have ample capacity to meet future demand, as the current facilities previously handled nearly twice as much cargo prior to the departure of the garment industry and the 2008 recession. The authority's planned capital projects are manageable and funded with grants and internally generated funds. No additional debt is anticipated to fund capital projects. Short-term capital projects are well-defined, but the capital plan does not currently consider long-term maintenance needs. Debt Structure - 1 - Stronger Conservative Capital Structure: The authority maintains 100% fixed-rate, fully amortizing debt with a level debt service profile and final maturity in 2031. Structural features and reserves are sufficient and typical for a port credit, with a 1.25x rate covenant and additional bonds test, and a debt service reserve fund sized to maximum annual debt service. Financial Profile In fiscal 2024 (unaudited), CPA had a solid coverage ratio of 1.9x and negative net debt-to-cash flow available for debt service (CFADS) due to cash balances exceeding debt outstanding. CPA maintains strong balance sheet cash and reserves available for operating expenses, with days cash on hand (DCOH) currently exceeding 800. Robust liquidity and leverage metrics provide CPA with flexibility to meet financial commitments in weak performing periods, mitigating any near-term volume and revenue declines related to tariff volatility. Coverage under Fitch's rating case, which considers a hypothetical recessionary stress in fiscal 2026 that results in a 10% decrease in revenues followed by limited recovery, averages 1.8x through fiscal 2028 and increases to over 9x annually as debt service materially steps down in fiscal 2029 through final maturity in 2031. Leverage, fully offset by CPA's strong cash position and low debt outstanding balance, has been negative since fiscal 2020 and remains so through debt maturity under Fitch's rating case. PEER GROUP Terminales Portuarios Euroandinos Paita (Paita) (BBB/Stable), located in Peru, serves as a global peer to CPA, with a similar regionally focused importance but higher coverage metrics and superior franchise strength. Paita is an essential Peruvian port asset with a pricing mechanism that allows for rate increases of 2.7% above U.S. CPI through 2029, which supports revenue generation and stability. The Hawaii Department of Transportation (AA-/Stable) is a U.S. port with a similar operational profile to CPA, strong financial metrics and island economy structure. However, Hawaii's operations are on a much larger scale, the service area is less economically volatile, and tariff increases are increased annually by the greater of 3% or CPI. This results in stronger volume assessment and a midrange price assessment. All of these factors contribute to Hawaii's much higher rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A severely weakened underlying service area economy that results in the seaports' inability to maintain cargo levels at or near current levels for a sustained period; - Depressed debt service coverage levels from declining operating revenues; - A shift in the seaports' balance sheet liquidity and financial flexibility from changes in operating expense management or pricing power. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Due to increased revenue volatility in the current global macroeconomic environment and the limited market size, immediate upward rating movement is unlikely. Nonetheless, sustained financial performance consistent with Fitch's base case expectations, without a significant rise in leverage, may warrant positive rating action in the future. SECURITY The seaport bonds are secured solely by gross seaport revenues and certain accounts established pursuant to the bond indenture. 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 Prior ----------- ------ ----- Northern Mariana Islands, Commonwealth of (MP) [Port Facilities] Northern Mariana Islands, Commonwealth of (MP) /Port Facility Revenues – First Lien/1 LT LT BB Affirmed BB NORTHPOINT DEVELOPMENT: Gets Extension to Access Cash Collateral ---------------------------------------------------------------- Northpoint Development Holdings, LLC received another extension from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, to use cash collateral to pay its operating expenses. The eighth interim order authorized the company to use cash collateral until June 1 as outlined in its projected budget, with a 10% variance. Any further usage of cash collateral beyond June 1 requires further court approval. The budget shows projected total operating expenses of $23,344.55. The First National Bank of Ottawa, a secured creditor, was granted post-petition replacement liens on the company's collateral, including cash collateral, to protect its interest. The next hearing is set for May 28. First National Bank of Ottawa is represented by: Cindy M. Johnson, Esq. Johnson Legal Group, LLC 140 S. Dearborn St., Ste. 1510 Chicago, IL 60603 Tel: 312-345-1306 Email: Cjohnson@jnlegal.net About Northpoint Development Holdings Northpoint Development Holdings, LLC is a single asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)). It is the fee simple owner of real property located at 1800 North Bloomington St., Streator, Ill., valued at $6.8 million. Northpoint filed Chapter 11 petition (Bankr. N.D. Ill. Case No. 24-13265) on September 9, 2024, with total assets of $6,800,000 and total liabilities of $5,176,241. Keith Weinstein, manager of Greystone Develpment Holdings, LLC, signed the petition. Judge Deborah L. Thorne oversees the case. Gregory K. Stern, Esq., at Gregory K. Stern, P.C. is the Debtor's legal counsel. NOVA ACADEMY: S&P Lowers 2015 Revenue Refunding Bonds to 'B+' ------------------------------------------------------------- S&P Global Ratings lowered its underlying rating for credit program on Clyde Education Facilities Corp., Texas' series 2015 education revenue refunding bonds issued for Nova Academy (Nova or the school) to 'B+' from 'BB-'. The outlook is stable. S&P said, "The rating action reflects our view of Nova's persistent and accelerating enrollment decreases and negative operations for fiscal 2024. Nova has experienced falling enrollment in eight of the last nine years, with enrollment of 295 in March 2025, down from a high of 962 in fiscal 2016. "We analyzed Nova's environmental, social, and governance factors relative to its market position, financial performance, reserves and liquidity, and debt burden. We believe Nova has resolved its elevated governance structure risk, risk management, and oversight risk due to the replacement of board members and management over the past three years, and thus consider them neutral. Additionally, we analyzed the environmental and social factors and consider them neutral in our credit rating analysis. "The stable outlook reflects our expectation that Nova will maintain its management team and continue to adjust it budget to reflect the shrinking revenue as a result of its declining enrollment. The outlook incorporates the likely negative operating margins in fiscal 2025 and the potential for coverage below the DSC covenant of 1.1x, which would result in a covenant violation and necessitate an independent management report. Management reports the ability to continue operating as long as enrollment is at least 240, with 290 expected for the fall of 2025. "We could lower the rating during the outlook period if enrollment or demand metrics continue to weaken, if the school posts larger than the anticipated operating deficit in fiscal 2025, or if liquidity deteriorates significantly. For the fall of 2025, management is budgeting for 290 students, but if enrollment were to fail to meet budgeted expectations, we could lower the rating. In our view, the school has limited remaining capacity to adjust its operating budget should enrollment continue to decline, which could further deplete financial resources. We would also view negatively any instability in the management team or additional covenant violations. "We could revise the outlook to stable or consider a positive rating action if the school demonstrates a reverse in its long-term trend of enrollment decreases, meeting all state and authorizer academic standards, producing positive operating surpluses, and maintaining liquidity near current levels." NOVA CONSTRUCTORS: Court Extends Cash Collateral Access to July 18 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Middle District of Tennessee extended Nova Constructors, LLC's authority to use cash collateral from April 25 to July 18. The third interim order signed by Judge Charles Walker authorized the company to use cash collateral for business expenses as outlined in its interim budget. As protection, Pinnacle Bank was granted a replacement lien on property acquired by the company after its Chapter 11 filing, to the same extent and with the same priority as its pre-bankruptcy lien. In addition, the secured creditor will continue to receive a monthly payment of $3,000. The next hearing is scheduled for July 16. About Nova Constructors LLC Nova Constructors LLC, formerly known as Noble Constructors, LLC, is a full-service building company specializing in construction, renovation, and pre-construction consulting. The company comprehensive design and build services, handling projects such as terrace builds, kitchen remodels, new garage additions, and lake house renovations. Nova Constructors sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00389) on January 30, 2025. In its petition, the Debtor reports total assets of $917,066 and total liabilities of $2,775,211. Judge Charles M. Walker handles the case. The Debtor is represented by: R. Alex Payne, Esq. Dunham Hildebrand Payne Waldron, PLLC 9020 Overlook Blvd., Suite 316 Brentwood, TN 37027 Tel: 629-777-6529 Fax: 615 777 3765 Email: alex@dhnashville.com OMNIA PARTNERS: Moody's Alters Outlook on 'B2' CFR to Stable ------------------------------------------------------------ Moody's Ratings affirmed OMNIA Partners, Inc.'s (OMNIA) corporate family rating at B2 and probability of default rating at B2-PD. At the same time, Moody's also affirmed OMNIA Partners, LLC's backed senior secured bank credit facility ratings at B2. The outlooks for both OMNIA and OMNIA Partners, LLC were changed to stable from negative. "The affirmation and outlook change reflect OMNIA's strong operating performance driven by a diverse customer base, and Moody's expectations of continued deleveraging", said Will Gu, Moody's Ratings analyst. RATINGS RATIONALE OMNIA's B2 CFR benefits from: (1) the ongoing transition of public and private sector groups to group purchasing organizations (GPOs) for savings; (2) healthy EBITDA margins, complemented by an asset-light business model supporting free cash flow generation; (3) long-term contracts and high customer retention rate of over 95%; and (4) very good liquidity. The company's rating is constrained by: (1) higher current leverage (6.8x as of LTM Q3 2024) and weaker interest coverage (1.9x estimate as of LTM 2024); (2) exposure to volume fluctuations given its small scale; and (3) concentration in providing procurement efficiencies to the public sector as a GPO. OMNIA has very good liquidity. Sources total about $630 million, consisting of company's cash on hand of around $159 million, Moody's expectations of about $155 million free cash flow in the four quarters through March 2026 and full availability under the company's $320 million revolving credit facility expiring 2028. Uses are limited to about $21 million in mandatory debt amortizations, before consideration of the excess cash flow sweep. The revolver has a springing maximum first lien net leverage covenant when drawings exceed 40% of the total commitment with which Moody's expects the company to remain in compliance over the next 12 months. The company has limited sources of alternate liquidity. OMNIA Partners, LLC's senior secured revolving credit facility expiring in 2028 and senior secured term loan due in 2030 are rated B2, same as OMNIA's CFR. The facilities are guaranteed by OMNIA and its operating subsidiaries and secured by substantially all of the company's domestic assets. The stable outlook reflects Moody's expectations that OMNIA will continue to deleverage with debt to EBITDA in the high 5x range and interest coverage of above 2x over the next 12-18 months. The outlook also reflects Moody's expectations that OMNIA will maintain solid revenue growth, healthy profit margins, and maintain at least good liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company sustains Debt/EBITDA below 4.5x, EBITDA/Interest above 3x, demonstrates a conservative financial policy track record, and maintains a strong liquidity profile. The ratings could be downgraded if the company faces deterioration in revenue, earnings or operating margins, debt/EBITDA remains above 6.5x, EBITDA/interest is below 1.5x or if liquidity deteriorates for any reason. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. Headquartered in Franklin, TN, OMNIA Partners, Inc. is a leading GPO serving state and local public agencies, educational institutions and corporate clients in the US through its subsidiaries (OMNIA Partners, Public Sector and OMNIA Partners, Private Sector). OUTLAW STEAKBURGERS: Gets Interim OK to Use Cash Collateral ----------------------------------------------------------- Outlaw Steakburgers, LLC got the green light from the U.S. Bankruptcy Court for the Eastern District of Texas, Tyler Division, to use its lender's cash collateral. The order penned by Judge Joshua Searcy authorized the Debtor's interim use of cash collateral to fund working capital, operating expenses, capital expenditures, fixed charges, and payroll. The Debtor's right to access cash collateral commenced on April 22 and will expire 30 days from April 29. Equity Bank, the Debtor's lender, was granted a replacement lien on and security interests in all assets acquired by the Debtor after its Chapter 11 filing that are similar to its pre-bankruptcy collateral. In the event the protection provided to Equity Bank is not enough to cover any diminution in the value of its collateral, the lender will be granted an allowed superpriority administrative expense claim. The final hearing is set for May 13. About Outlaw Steakburgers Outlaw Steakburgers, LLC filed Chapter 11 petition (Bankr. E.D. Texas Case No. 25-60236) on April 22, 2025, listing up to $500,000 in assets and up to $10 million in liabilities. Esther Yeager, corporate representative, signed the petition. Judge Joshua P. Searcy oversees the case. Robert C. Lane, Esq., at The Lane Law Firm, represents the Debtor as bankruptcy counsel. PENNYMAC FINANCIAL: S&P Rates Proposed Senior Unsecured Notes 'B+' ------------------------------------------------------------------ S&P Global Ratings assigned its 'B+' issue rating and '3' recovery rating to PennyMac Financial Services Inc.'s proposed $650 million senior unsecured notes due 2032. The '3' recovery rating reflects our expectation of meaningful (50%-70%; rounded estimate: 55%) recovery in a simulated default scenario. PennyMac (B+/Stable/--) intends to use the net proceeds to repay its $650 million senior unsecured notes due October 2025 and for other general corporate purposes. S&P said, "As of March 31, 2025, the company's adjusted debt to rolling-12-month EBITDA (by our calculation) was 4.6x, within our base-case expectation of 4.0x-5.0x. The company's debt to tangible equity was 1.6x--slightly above the historical range of 1.0x-1.5x--but we expect the ratio to normalize when origination activity improves. "The stable outlook indicates our expectation that over the next 12 months, while the uncertain interest rate environment could delay the recovery of residential mortgage originations, the company's adjusted debt to EBITDA will remain in the 4.0x-5.0x range on a sustained basis. We also expect that debt to tangible equity will remain close to 1.5x on a sustained basis, and we think the company will maintain sufficient liquidity to meet its operational needs." Issue Ratings--Recovery Analysis Key analytical factors -- S&P simulated a default scenario for the company occurring in 2029, resulting from reduced origination volumes and rapid prepayments of mortgages. -- Eventually, the company's liquidity and capital resources could become strained to the point where it can't continue to operate without an equity infusion or bankruptcy filing. -- S&P believes creditors would place the most value on the company's mortgage servicing rights (MSRs). -- S&P has therefore valued the company through a discrete asset valuation of its MSRs. Simulated default assumptions -- High delinquency rates leading to depressed MSR valuations. -- A sustained period of rapid amortization of MSRs with a limited ability to refinance the repayments. -- Limited new originations, an increase in borrower delinquencies, and a rise in the discount rate to value MSRs. Simplified waterfall -- Net enterprise value (after 5% administrative costs): $6.5 billion -- Priority claims: $4.0 billion -- Collateral value available to senior unsecured creditors: $2.5 billion -- Senior unsecured debt: $4.2 billion -- Recovery expectations: 50%-70% (rounded estimate: 55%) Note: All debt amounts include six months of prepetition interest. PERATON CORP: S&P Alters Outlook to Negative, Affirms 'B-' ICR -------------------------------------------------------------- S&P Global Ratings affirmed its 'B-' issuer credit rating on the Peraton Corp. and revised the outlook to negative from stable. At the same time, S&P affirmed its 'B-' issue-level rating on the company's first-lien debt. The '3' recovery rating is unchanged. The negative outlook reflects S&P's expectation that credit ratios will be weaker than previously anticipated in 2025 and depend on stronger contract performance for improvement. Peraton's EBITDA will likely decline in 2025 due to the end of some profitable contracts and the absence of one-time profits. Peraton had been working on a few defense contracts with higher than average margins that ended in 2024. The company's book-to-bill ratio was below 1x in 2024, resulting in less new business to replace the ending contracts than we anticipated. Similarly, while S&P doesn't expect the Department of Government Efficiency's initiatives to have a material near-term impact, it could be a factor in slowing contract awards throughout the year, further suppressing revenues. Peraton also generated approximately $25 million of one-time earnings at the end of 2024, a boost to earnings that will not occur 2025. The expected result is revenue decline of 2%-5% and EBITDA margins deterioration to 13%-13.5% from 13.6%, and S&P Global Ratings-adjusted EBITDA decline of 5%-7%. S&P said, "Free cash flow could be materially negative in 2025 as we expect earnings to weaken and working capital to be a significant cash use. The decline in EBITDA is a factor, but working capital is a significant change year over year. In 2024, Peraton improved its days sales outstanding (DSO) considerably and realized significant cash contribution from working capital. In 2025, we expect the company to give some of that DSO improvement back. Increasing DSO along with other timing impacts are likely to result in a large cash use for working capital. We expect cash from operations to be negative $50 million-$60 million in 2025, with capital expenditures accounting for approximately $40 million additional cash outflow. "We believe Peraton will likely maintain adequate liquidity, but it will face some potential refinancing challenges. Despite the significant interest expense, Peraton's large cash balance and relatively modest debt amortization and capital spending needs help keep the company in a favorable liquidity position. The company ended 2024 with $550 million in cash, and even with negative free cash flow in 2025, we expect Peraton to maintain a large cash balance even while in decline. The company's $500 million revolver is due in early 2026, and Peraton is in discussions to extend that maturity, potentially as part of a larger refinancing plan. Even without the revolver availability beyond 2025, we expect Peraton to maintain more than enough cash to service its debt throughout our forecast. Given the amount of debt and high leverage, as well as reports that groups of lenders are forming to potentially come up with a refinancing proposal, we believe Peraton could seek a debt exchange. Based on debt trading levels, we could consider an exchange distressed. "The negative outlook reflects our expectation that Peraton's free cash flow will be negative in 2025 and a refinancing plan that amounts to a distressed exchange could occur. "We could lower our ratings on Peraton if its debt to EBITDA rises such that we believe its capital structure is unsustainable. We could also lower our rating if it generates materially negative free cash flow and we don't expect its cash flow generation will improve, which would constrain its liquidity." Lastly, S&P could lower its rating if S&P believes a distressed exchange is likely. These scenarios could occur if: -- The company's revenue is weaker than expected because it loses existing business or fails to win material new awards; -- Its EBITDA margins are negatively affected by operational inefficiencies that lead to increased costs or delayed deliveries; -- Its working capital outflows are higher than expected as it attempts to organically expand its business; or -- It is unable to extend the maturity on its revolving credit facility due 2026. S&P could revise the outlook on Peraton to stable if it expects free cash flow to remain positive throughout its forecast and think a distressed exchange is unlikely. This could occur if: -- The company continues to win new contracts beyond our expectations; -- It expands its organic revenue by implementing more-efficient hiring practices; -- The company effectively manages the start-up costs in the early stages of its programs such that it improves its profitability; -- Peraton manages its working capital while expanding its business; and -- The company uses its excess cash to repay debt beyond its mandatory amortization. POPELINO'S TRANSPORTATION: Gets Final OK to Use Cash Collateral --------------------------------------------------------------- Popelino's Transportation, Inc. received final approval from the U.S. Bankruptcy Court for the Central District of California, Riverside Division, to use cash collateral. The final order authorized the company to use cash collateral through August 26, according to its budget. Creditors with security interests in cash collateral were granted replacement liens on the company's post-petition accounts and receivables, with the same priority and extent as their pre-bankruptcy liens. About Popelino's Transportation Inc. Popelino's Transportation, Inc. is a Riverside, California-based company that has been offering green waste hauling and transportation services since 2005. Additionally, the Company recycles green waste at its facility to generate compost, mulch, and woodchips for landscaping. Popelino's Transportation filed petition (Bankr. C.D. Calif. Case No. 25-11628) on March 18, 2025, listing $3,318,612 in total assets and $8,329,194 in total liabilities. Jose Barragan, president of Popelino's Transportation, signed the petition. Judge Mark D. Houle oversees the case. Todd Turoci, Esq., at The Turoci Firm represents the Debtor as legal counsel. PORT LOUIS: Hires Renaissance Realty as Property Manager -------------------------------------------------------- Port Louis Owners Association, Inc. filed an amended application seeking approval from the U.S. Bankruptcy Court for the Eastern District of Louisiana to employ Renaissance Realty Services, L.L.C. as property manager. The firm will provide consulting on property management and handling the accounting and financial management of Debtor. The firm will be paid a flat fee of $500 per month. In addition, Rodney Durst was appointed as agent will also prepare the periodic statements of the DIP's operations for a flat amount of $275 per report. Also, Renaissance and Rodney Durst will prepare the Monthly Operations Reports for Debtor for a flat fee of $275. As disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Rodney Durst Renaissance Realty Services, L.L.C. 506 E. Rutland Street Covington, LA 70433 Tel: (985) 624-2900 About Port Louis Owners Association, Inc. Port Louis Owners Association Inc. is dedicated to fostering a sense of belonging and unity among homeowners in this vibrant community. Port Louis Owners Association sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 24-12511) on December 26, 2024. In its petition, the Debtor reported assets of $100,000 to $500,000 and liabilities of up to $50,000. Judge Meredith S. Grabill handles the case. The Debtor tapped Renee L. Achee, Esq., at Achee Law Firm, LLC as bankruptcy counsel and Anthony S. Maska, Esq., as special counsel. PR DIAMOND: Seeks Subchapter V Bankruptcy in Nevada --------------------------------------------------- On April 25, 2025, PR Diamond Products Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Nevada. 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 PR Diamond Products Inc. PR Diamond Products Inc., operating as Brand X Blades, a Las Vegas-based manufacturer and distributor of diamond cutting tools and blades for construction and industrial applications. PR Diamond Products Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-12370) on April 25, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Natalie M. Cox handles the case. The Debtor is represented by Matthew C. Zirczow at Larson And Zirzow, LLC. PRIMERO SPINE: Gets Interim OK to Use Cash Collateral ----------------------------------------------------- Primero Spine and Joint, LLC received interim approval from the U.S. Bankruptcy Court for the Middle District of Florida, Jacksonville Division, to use cash collateral. The company was authorized to access its secured creditors' cash collateral to pay its expenses until further order of the bankruptcy court. The secured creditors' cash collateral consists of pre-bankruptcy cash in the company's operating accounts. The creditors with a security interest in the cash collateral include GFE Holdings and the U.S. Small Business Administration. As protection, they were granted a post-petition lien on the cash collateral to the same extent and with the same validity and priority as their pre-bankruptcy lien. As additional protection, Primero was ordered to keep its property insured in accordance with its loan agreements with the secured creditors. The next hearing is scheduled for May 20. About Primero Spine and Joint Primero Spine and Joint, LLC filed Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case No. 25-01017) on April 1, 2025, listing between $100,001 and $500,000 in assets and between $500,001 and $1 million in liabilities. Jerrett McConnell, Esq., at McConnell Law Group, P.A. serves as Subchapter V trustee. Judge Jacob A. Brown oversees the case. The Debtor tapped Donald M. DuFresne, Esq., at Parker & DuFresne, P.A. as legal counsel and William G. Haeberle, CPA, LLC as accountant. PROSPECT MEDICAL: No Patient Care Concern, 1st PCO Report Says -------------------------------------------------------------- Suzanne A. Koenig, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the Northern District of Texas her first report regarding the quality of patient care provided by Medical Properties Trust Inc. and its affiliates. In her report, which covers the period from January 30 to March 31, 2025, the Ombudsman developed a standardized methodology to ensure consistency in reporting among the Ombudsman's representatives visiting each location due to the number of Hospitals operated by the Debtors. Each site visit included the Ombudsman and one SAK Healthcare representative, who was a nurse by training. During each visit, the Ombudsman and her representative met with the relevant Hospital's leadership team, conducted a walk-through tour of each Hospital and its buildings, and interviewed key professional staff and patients where possible. The Ombudsman and her representatives also requested and reviewed Hospital records as part of this assessment process. The Ombudsman did not observe any material issues impacting patient care requiring this Court's immediate attention while the individual Hospital Reports will provide a detailed analysis of each Hospital and patient care at those Hospitals. The Ombudsman did observe certain areas in which the Hospitals could improve the patient care experience and has discussed these issues with the Debtors. The Ombudsman did not observe any staffing issues that put patients in immediate danger or jeopardized their care although recruitment across the Hospitals has proved challenging (largely due to prospective employees' uncertainties regarding the Hospitals' future). The Debtors' staff generally demonstrated a strong commitment to quality care and safety. The Debtors' staffing levels appear to be sufficient based on the reporting provided to the Ombudsman throughout this Report Period. The Ombudsman did not find any concerns related to procurement of adequate supplies, such as food, drugs, and medical supplies, among other necessary items. The Hospitals have endeavored to cooperate with each other to share supplies as needed to prevent shortages. Based on the Ombudsman's observations during each of the visits, the supply rooms appeared to be stocked with enough supplies and equipment to provide safe patient care. The Ombudsman observed that the kitchen floors at SCH Culver City require cleaning and the kitchens at MMH and Norwalk require more significant attention while the Hospitals' kitchens were overall clean, well-organized, efficient, and compliant with regulatory requirements. The Ombudsman does not believe patient care or safety is currently at risk because of the issues with MMH's and Norwalk's respective kitchen departments. The Ombudsman noted that the patient census at many of the Hospitals has declined and appears to be partly related to negative press concerning the Debtors' Hospitals and these bankruptcy cases. The Ombudsman observed staff committed to providing excellent care to the patients and urges all parties in interest and the communities to continue supporting these Hospitals, many of which are critical to their localities. The Ombudsman interviewed patients across the Hospitals, and they consistently reported receiving outstanding care. The ombudsman may be reached at: Suzanne Koenig, CEO SAK Healthcare 300 Saunders Road, Suite 300 Riverwoods, IL 60015 Phone: 847-446-8400 Email: skoenig@sakhealthcare.com About Prospect Medical Holdings Prospect Medical Holdings owns Roger Williams Medical Center, Our Lady of Fatima Hospital, and several other healthcare facilities. Prospect Medical Holdings and its affiliates filed Chapter 11 petitions (Bankr. N.D. Texas Lead Case No. 25-80002) on January 11, 2025. At the time of the filing, Prospect Medical Holdings reported between $1 billion and $10 billion in both assets and liabilities. Judge Stacey G. Jernigan handles the cases. The Debtors' bankruptcy attorneys are Thomas R. Califano, Esq., and Rakhee V. Patel, Esq., at Sidley Austin LLP, in Dallas, Texas; and William E. Curtin, Esq., Patrick Venter, Esq., and Anne G. Wallice, Esq., at Sidley Austin LLP, in New York. The Debtors also tapped Alvarez & Marsal North America, LLC as financial advisor; Houlihan Lokey, Inc. as investment banker; and Omni Agent Solutions, Inc. as claims, noticing and solicitation agent. PROSPECT MEDICAL: Taps Bartko Pavia as Special Litigation Counsel ----------------------------------------------------------------- Prospect Medical Holdings, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Bartko Pavia LLP as special litigation counsel. Bartko will represent the Debtors in connection with any and all matters related to the antitrust claims (primarily market allocation, price fixing, and boycott agreements) against the Blue Cross Blue Shield Association and related independent business entities. In the event the Antitrust Litigation results in a Recovery, 33.33 percent of the Recovery is allocated to Bartko and is payable upon realization. The firm's hourly rates are: Patrick M. Ryan, Esq. $1,764 Principals $1,430 Senior Counsel $1,430 Special Counsel $1,430 Of Counsel $1,430 Senior Associates $1,185 Junior Associates $918 Paralegals $651 Litigation support staff $529 Patrick M. Ryan, Esq., a partner at Bartko Pavia LLP, disclosed in a court filing that her firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The following responses are provided in response to the questions set forth in Paragraph D.1 of the UST Guidelines: a. Question: Did Bartko agree to any variations from, or alternatives to, its standard or customary billing arrangements for this engagement? Answer: No. b. Question: Do any of the Bartko professionals in this engagement vary their rate based on the geographic location of the bankruptcy case? Answer: No. c. Question: If Bartko represented the Debtors in the 12 months prepetition, disclose Bartko billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If Bartko's billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Answer: Bartko has represented the Debtors in the past 12 months prepetition. At all relevant times, Bartko and the Debtors agreed on a contingency fee and Bartko has not billed the Debtors. d. Question: Have the Debtors approved Bartko's prospective budget and staffing plan, and, if so, for what budget period? Answer: Given that Bartko's fees are being paid on a contingency fee basis, the Debtors and Bartko have not discussed a staffing plan. The firm can be reached through: Patrick M. Ryan, Esq. Bartko Pavia LLP 1100 Sansome Street San Francisco, CA 94111 Office: (415) 956-1900 Direct: (415) 291-4540 Email: pryan@bartkopavia.com About Prospect Medical Holdings, Inc. Prospect Medical Holdings owns Roger Williams Medical Center, Our Lady of Fatima Hospital, and several other healthcare facilities. Prospect Medical sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80002) on Jan. 11, 2025. In the petition filed by Paul Rundell, chief restructuring officer, the Debtor estimated assets and liabilities between $1 billion and $10 billion each. Bankruptcy Judge Stacey G. Jernigan handles the case. The Debtors' general bankruptcy counsel is Thomas R. Califano, Esq., and Rakhee V. Patel, Esq., at Sidley Austin LLP, in Dallas, Texas, and William E. Curtin, Esq., Patrick Venter, Esq., and Anne G. Wallice, Esq., at Sidley Austin LLP, in New York. The Debtors also tapped Alvarez & Marsal North America, LLC as financial advisor; Houlihan Likey, Inc. as investment banker; and Omni Agent Solutions, Inc. as claims, noticing & solicitation agent. On Jan. 29, 2025, the Office of the United States Trustee for Region 6 appointed an official committee of unsecured creditor in these Chapter 11 cases. The committee tapped Brinkman Law Group, PC as efficiency counsel. PUBLISHERS CLEARING: Seeks to Sell Publishing Asset in an Auction ----------------------------------------------------------------- Publishers Clearing House LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of New York, to sell Assets at Auction, free and clear of liens, interests, and encumbrances. The Debtor is a direct-to-consumer company offering free-to-play digital entertainment. Through its PCH/Media division, it helps brands and advertisers connect with qualified, responsive audiences across its extensive chance-to-win gaming platforms. The Debtor is seeking to sell its right, title and/or interest in any and all assets, including, but not limited to, the Debtor's right, title and/or interest in the Debtor's trademarks, domain names, customer data, content and manuals, copyrights, patents, proprietary software, mobile applications, license agreements, contracts, and IP addresses. The Office of the United States Trustee for the Southern District of New York appointed an Official Committee of Unsecured Creditors consisting of the following three members: Marc D. Friedman, AG-We're 300 Jericho, LLC, and Senior Midwest Direct Inc. dba Jetson Mailers. The Debtor hires SSG Advisors, LLC as exclusive investment banker to advise and assist the Debtor with a potential sale, financing or other restructuring transaction. The Debtor seeks to approve a post-petition senior secured receivables purchase financing facility with Prestige Capital Finance, LLC. The DIP Lender will be paid in full at closing of any sale of substantially all assets of Seller's business, but upon a sale of a portion of the Collateral, the liens of Prestige shall attach to the proceeds of sale in the order of their priority, provided that 25% of such proceeds shall be remitted to Prestige to be held as cash collateral in favor of Prestige pursuant to a cash collateral agreement/addendum in form reasonably satisfactory to Prestige. The Debtor's Bidding Procedures reflect the Debtor's objective of conducting the sale process in a controlled and fair manner, while ensuring that the highest or best bid is generated. The following is a summary of the proposed Bidding Procedures and the significant deadlines: - Bid Deadline: June 13, 2025 at 5:00 p.m. (Eastern Time) - Auction (virtual): June 17, 2025 at 10:00 a.m. (Eastern Time) - Objections to Sale Due: June 18, 2025 at 5:00 p.m. (Eastern Time) - Sale Hearing: June 25, 2025 at 2:00 p.m. (Eastern Time) - Closing: July 15, 2025 To participate in the bidding process, each person or entity must enter into (unless previously entered into) with the Debtor, on or before the Bid Deadline, an executed confidentiality agreement in form and substance satisfactory to the Debtor. Each such person that enters into a Confidentiality Agreement with the Debtor on or before the Bid Deadline is hereinafter referred to as a Potential Bidder. After a Potential Bidder enters into a Confidentiality Agreement with the Debtor, the Debtor shall deliver or make available (unless previously delivered or made available) to each Potential Bidder the certain designated information with respect to the Assets. If at least two Qualified Bids are received by the Bid Deadline with regard to any particular Assets, the Debtor will conduct an auction with respect to such Assets and shall determine which Qualified Bid is the highest or otherwise best Qualified Bid for purposes of constituting the opening bid at the Auction for the relevant Assets. The Auction is proposed to be conducted virtually on June 17, 2025 beginning at 10:00 a.m. The Debtor will have accepted a Qualified Bid only when such Qualified Bid has been approved by the Court at the hearing on approval of the Sale proposed to be scheduled for June 25, 2025 at 2:00 p.m. (Eastern Time). The Debtor believes that the procedures and deadlines are fair and reasonable and will provide sufficient notice to the non-debtor parties to the Assumed Contracts. About Publishers Clearing House LLC Publishers Clearing House LLC is a direct-to-consumer company offering free-to-play digital entertainment. Through its PCH/Media division, PCH helps brands and advertisers connect with qualified, responsive audiences across its extensive chance-to-win gaming platforms. PCH has evolved into a multi-channel media company, combining digital entertainment, direct-to-consumer marketing, and commerce to create compelling experiences for users and brands alike. Publishers Clearing House filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10694) on April 9, 2025. The case is pending before the Honorable Martin Glenn. Klestadt Winters Jureller Southard & Stevens, LLP is serving as legal advisor, William H. Henrich and Laurence Sax from Getzler Henrich & Associates LLC are serving as Co-Chief Restructuring Officers, SSG Capital Advisors, LLC, is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company. Omni Agent Solutions is the claims agent. QSR STEEL: Court Extends Cash Collateral Access to July 31 ---------------------------------------------------------- QSR Steel Corporation, LLC received seventh interim approval from the U.S. Bankruptcy Court for the District of Connecticut to use the cash collateral of its secured creditors. The seventh interim order authorized the company to use up to $815,863.44 in cash collateral from June 1 to July 31, in accordance with an approved budget for operating expenses. The budget sets limits on expenditures by line item, with a provision for a 20% variance and the ability to increase the total expenditure by up to 10% with written consent from Liberty Bank. As protection, Liberty Bank, First Citizens Bank & Trust Company, and Philadelphia Indemnity Insurance Company were granted replacement liens on QSR Steel's assets. In addition, Liberty Bank will continue to receive monthly payments under its loan agreement with QSR Steel during the term of the seventh interim order. The next hearing is set for July 17. About QSR Steel Corporation QSR Steel Corporation, LLC is a one-stop, full service structural steel company based in Hartford, Conn., offering everything from steel buildings to stairs and railings. QSR Steel filed Chapter 11 petition (Bankr. D. Conn. Case No. 24-20562) on June 18, 2024, with $2,838,179 in assets and $2,124,057 in liabilities as of March 31, 2024. Glenn Salamone, a member of QSR Steel, signed the petition. Judge James J. Tancredi oversees the case. Irve J. Goldman, Esq., at Pullman & Comley, LLC is the Debtor's legal counsel. Liberty Bank, as secured creditor, is represented by: Linda c. Hadley, Esq. Gfeller Laurie, LLP West Hartford Center 977 Farmington Avenue, Suite 200 West Hartford, CT 06107 Phone: 860-760-8428/860-760-8400 Fax: 860-760-8401 lhadley@gllawgroup.com RED RIVER: Brown Rudnick Seeks Compensation in Chapter 11 Case -------------------------------------------------------------- Rick Archer of Law360 reports that Brown Rudnick LLP has asked a Texas bankruptcy court to approve nearly $4.3 million in fees for its work representing the talc claimants committee in the Red River Talc Chapter 11 case, arguing that its role in opposing Johnson & Johnson's previous talc-related bankruptcy filings should not disqualify or diminish its compensation. About J&J Talc Units LLT Management, LLC (formerly known as LTL Management LLC) was a subsidiary of Johnson & Johnson that was formed to manage and defend thousands of talc-related claims and oversee the operations of Royalty A&M. Royalty A&M owns a portfolio of royalty revenue streams, including royalty revenue streams based on third-party sales of LACTAID, MYLANTA/MYLICON and ROGAINE products. LTL Management first filed a petition for Chapter 11 protection (Bankr. W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov. 16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time of the filing, the Debtor was estimated to have $1 billion to $10 billion in both assets and liabilities. In the 2021 case, LTL Management tapped Jones Day and Rayburn Cooper & Durham, P.A., as bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon LLP as special counsel; McCarter & English, LLP as litigation consultant; Bates White, LLC as financial consultant; and AlixPartners, LLP as restructuring advisor. Epiq Corporate Restructuring, LLC, served as the claims agent. On Dec. 24, 2021, the U.S. Trustee for Regions 3 and 9 reconstituted the talc claimants' committee and appointed two separate committees: (i) the official committee of talc claimants I, which represents ovarian cancer claimants, and (ii) the official committee of talc claimants II, which represents mesothelioma claimants. The official committee of talc claimants I tapped Genova Burns LLC, Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its legal counsel. Meanwhile, the official committee of talc claimants II is represented by the law firms of Cooley LLP, Bailey Glasser LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and Sherman Silverstein Kohl Rose & Podolsky P.A. Re-Filing of Chapter 11 Petition On Jan. 30, 2023, a panel of the Third Circuit issued an opinion directing this Court to dismiss the 2021 Chapter 11 Case on the basis that it was not filed in good faith. Although the Third Circuit panel recognized that the Debtor "inherited massive liabilities" and faced "thousands" of future claims, it concluded that the Debtor was not in financial distress before the filing. On March 22, 2023, the Third Circuit entered an order denying the Debtor's petition for rehearing. The Third Circuit entered an order denying LTL's stay motion on March 31, 2023, and, on the dame day, issued its mandate directing the Bankruptcy Court to dismiss the 2021 Chapter 11 Case. The Bankruptcy Court entered an order dismissing the 2021 Case on April 4, 2023. Johnson & Johnson on April 4, 2023, announced that its subsidiary LTL Management LLC (LTL) has re-filed for voluntary Chapter 11 bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain approval of a reorganization plan that will equitably and efficiently resolve all claims arising from cosmetic talc litigation against the Company and its affiliates in North America. In the new filing, J&J said it has agreed to contribute up to a present value of $8.9 billion, payable over 25 years, to resolve all the current and future talc claims, which is an increase of $6.9 billion over the $2 billion previously committed in connection with LTL's initial bankruptcy filing in October 2021. LTL also has secured commitments from over 60,000 current claimants to support a global resolution on these terms. In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey, ruled that the second bankruptcy case should be dismissed. 3rd Try In May 2024, J&J announced its subsidiary LLT Management LLC is soliciting support for a consensual prepackaged bankruptcy plan to resolve its talc-related liabilities. Under the terms of the plan, a trust would be funded with over $5.4 billion in the first three years and more than $8 billion over the course of 25 years, which J&J calculates to have a net present value of $6.475 billion. If the Plan is accepted by at least 75% of voters, a bankruptcy was to be filed under the case name In re Red River Talc LLC. Epiq Corporate Restructuring, LLC is serving as balloting and solicitation agent for LLT. On Sept. 20, 2024, Red River Talc LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D. Tex. Case No. 24-90505). Porter Hedges LLP and Jones Day serve as counsel in the new Chapter 11 case. Epiq is the claims agent. Paul Hastings LLP is counsel to the Ad Hoc Committee of Supporting Counsel. Randi S. Ellis is the proposed prepetition legal representative of future claimants. REDDIRT ROAD: Gets Interim OK to Use Cash Collateral ---------------------------------------------------- Reddirt Road Partners, LLC received interim approval from the U.S. Bankruptcy Court for the Northern District of Florida, Panama City Division, to use cash collateral. Prior to the bankruptcy filing, the company entered into an inventory financing agreement with Wells Fargo Commercial Distribution Finance, LLC on January 30, 2019. Under the agreement, Wells Fargo financed inventory purchases and received a first-priority security interest in the financed inventory and any proceeds, including cash collateral. This security interest was properly perfected by a UCC-1 financing statement. As of the petition date, the Debtor owed Wells Fargo $98,262. A final evidentiary hearing is scheduled for May 14. About Reddirt Road Partners Reddirt Road Partners, LLC filed a petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-50049) on March 12, 2025, listing between $500,001 and $1 million in both assets and liabilities. Judge Karen K. Specie oversees the case. Byron Wright, III, Esq., at Bruner Wright, P.A. represents the Debtor as legal counsel. REGIONS PROPERTY: Seeks to Hire Brian K. McMahon PA as Counsel -------------------------------------------------------------- Regions Property Management & Construction Inc. seeks approval from the U.S. Bankruptcy Court for the U.S. Bankruptcy Court for the Southern District of Florida to hire Brian K. McMahon PA as counsel. The firm will render these services: (a) advise the Debtor with respect to its powers and duties; (b) advise the Debtor with respect to its responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the rules of the court; (c) prepare legal documents necessary in the administration of the case; (d) protect the interest of the Debtor in all matters pending before the court; and (e) represent the Debtor in negotiation with its creditors in the preparation of a plan. Brian McMahon, Esq., the primary attorney in this representation, will be paid at his hourly rate of $450. In addition, the firm will seek reimbursement for expenses incurred. The firm received a retainer in the amount of $7,000. Mr. McMahon disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Brian K. McMahon, Esq. Brian K. McMahon, PA 1401 Forum Way, Suite 730 West Palm Beach, FL 33401 Tel: (561) 478-2500 Fax: (561) 478-3111 Email: briankmcmahon@gmail.com About Regions Property Management & Construction Inc. Regions Property Management & Construction Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-14015) on April 12, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. The Debtor is represented by Brian K. McMahon, Esq. at BRIAN K. MCMAHON, PA. RIC (AUSTIN) LLC: Plan Confirmation Hearing Set for August 26 ------------------------------------------------------------- The United States Bankruptcy Court for the Western District of Texas will hold a hearing on August 26, 2025, at 9:00 a.m. (CT), before the Honorable Christopher G. Bradley in Austin, Texas, to confirm the Small Business Debtor's Plan of RIC (Austin), LLC. The deadline for submitting votes on, and/or objections to, the Plan is July, 28, 2025, at 5:00 p.m. Central time. Should confirmation of the Plan be consensual and no unresolved objections are filed to the Plan, all counsel and parties may appear at the Confirmation Hearing by Zoom at www.zoomgov.com/my/bradley.txwb (Meeting ID: 160 1114 1085). A copy of the Court's Plan Scheduling Order dated April 23, 2025, is available at https://urlcurt.com/u?l=P6hBwO Counsel to the Debtor and Debtor-in-Possession: Thomas D. Berghman, Esq. Jay H. Ong, Esq. MUNSCH HARDT KOPF & HARR, P.C. 1717 W. 6th Street, Ste. 250 Austin, TX 78703 Telephone: (512) 391-6100 E-mail: tberghman@munsch.com jong@munsch.com About RIC (Austin) Panache Development and Construction, Inc., a creditor of RIC (Austin), LLC, filed an involuntary petition under Chapter 7 against the Debtor (Bankr. W.D. Texas Case No. 24-10264) on March 12, 2024. On September 9, 2024, the court entered its agreed order for relief against RIC (Austin), LLC under Subchapter V of Chapter 11 of Title 11 of the United States Code. Judge Christopher G. Bradley oversees the case. The Debtor tapped Munsch Hardt Kopf & Harr, P.C. as legal counsel; HMP Advisory Holdings, LLC, doing business as Harney Partners, as restructuring advisor; and O&L, LP as special development consultant. ROMAN BUILDERS: Wins Final OK to Use Cash Collateral ---------------------------------------------------- Roman Builders, LLC received final approval from the U.S. Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division, to use cash collateral. The final order authorized the company to use cash collateral for payroll and other necessary expenses set forth in the approved budget, with up to a 10% variance per line item. The budget projects total monthly expenses of $104,689.14. Creditors with pre-bankruptcy liens will receive replacement liens on post-petition property, maintaining the same validity and priority as their pre-bankruptcy liens, excluding avoidance actions and their proceeds. As additional protection, Roman Builders was ordered to keep its property insured. Kapitus Servicing, Inc. asserts a third lien position and reserves the right to seek a superpriority administrative expense claim for any diminution in collateral value. About Roman Builders LLC Roman Builders, LLC is a South Florida company that specializes in waterproofing services for both commercial and residential properties. It offers various solutions, including the installation of waterproofing membranes, concrete repair, and leak prevention through advanced methods like resin injection. It also provides maintenance and protection services for concrete structures, such as parking garages, balconies, and walkways. Roman Builders sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-12914) on March 19, 2025. In its petition, the Debtor reported total assets of $821,063 and total Liabilities of $1,015,126. Judge Scott M. Grossman handles the case. The Debtor is represented by Susan D. Lasky, Esq., at Susan D. Lasky, PA. ROYAL INTERCO: Gets Court Approval for $10MM Chapter 11 Financing ----------------------------------------------------------------- Ben Zigterman of Law360 Bankruptcy Authority reports that Royal Interco LLC, an Arizona company that supplies private-label paper goods to retailers such as Trader Joe's and Aldi, secured final court approval on May 2, 2025, from a Delaware bankruptcy judge to access a $10 million debtor-in-possession loan as it advances toward a Chapter 11 auction. About Royal Interco Royal Interco, LLC is a manufacturer of high-quality paper products, including bath tissue, paper towels, facial tissue and napkins, offering a broad range of products and packaging configurations to serve both regional and national customers. Royal Interco sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10674) on April 8, 2025. In its petition, the Debtor reported between $100 million and $500 million in both assets and liabilities. Michael Ragano, chief restructuring officer, signed the petitions. Judge Thomas M Horan presides over the cases. The Debtors tapped Morris, Nichols, Arsht & Tunnell, LLP as general counsel; Livingstone Partners, LLC as investment banker; and Epiq Corporate Restructuring, LLC as claims and noticing agent. The Debtors' provider of turnaround and business transformation advisory services is Novo Advisors, LLC. RYVYL INC: CFO Gets Salary Increase, Execs Awarded 1.3M RSAs ------------------------------------------------------------ RYVYL Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on March 14, 2025, the Compensation Committee of the Board of Directors, approved and ratified, pursuant to a unanimous written consent, the following material compensatory plan, contract or arrangement: (i) salary increase to $375,000, retroactive to January 1, 2025, for Mr. George Oliva, the Chief Financial Officer of the Company; and (ii) a one-time grant of restricted stock unit awards of the Company's common stock, par value $0.001 per share, to each of Mr. Ben Errez, the Executive Vice President and Chairman, for 380,000 RSAs, Mr. Fredi Nisan, the Chief Executive Officer, for 380,000 RSAs, and Mr. Oliva, for 272,000 RSAs, amongst other employees of the Company, pursuant to the Company's 2023 Amended and Restated Equity Incentive Plan. The RSAs were granted on April 8, 2025, vest over a period between May 15, 2025, and February 18, 2028, and have a grant date value of $300,200, $300,200, and $214,880, for each of Mr. Errez, Mr. Nisan, and Mr. Oliva, respectively. About Ryvyl Inc. San Diego, Calif.-based RYVYL Inc., together with its subsidiaries, is a financial technology company that develops, markets, and sells innovative blockchain-based payment solutions, which offer significant improvements for the payment solutions marketplace. The Company's core focus is to develop and monetize disruptive blockchain-based applications, integrated within an end-to-end suite of financial products, capable of supporting a multitude of industries. In its report dated March 28, 2025, the Company's auditor, Simon & Edward, LLP, issued a 'going concern' qualification, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, noting that the transitioning of the Company's QuickCard product in North America led to a significant decline in processing volume and revenue, the recovery of these lost revenues is not expected until late 2025. The loss of revenue resulting from this business reorganization has jeopardized its ability to continue as a going concern. RYVYL INC: Fails Nasdaq Equity Rule With $1.5-Mil. Deficit ---------------------------------------------------------- RYVYL Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company, received written notice from The Nasdaq Stock Market LLC notifying the Company that, based on the Company's stockholders' equity of ($1,492,000) as of December 31, 2024, it is no longer in compliance with the minimum stockholders' equity requirement of $2.5 million for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(1). The Company has until May 23, 2025, to provide Nasdaq with a plan to regain compliance with the foregoing listing requirement. If the Company's plan to regain compliance is accepted, Nasdaq may grant an extension of up to 180 calendar days from the date of the Notice (April 8, 2025) for the Company to evidence compliance. The Notice has no immediate effect on the listing or trading of the Company's common stock and the common stock will continue to trade on the Nasdaq Capital Market under the symbol "RVYL." The Company intends to submit a plan to Nasdaq to regain compliance with the Nasdaq Listing Rules. In determining whether to accept the plan, Nasdaq will consider such things as the likelihood that the plan will result in compliance with Nasdaq's continued listing criteria, the Company's past compliance history, the reasons for the Company's current non-compliance, other corporate events that may occur within Nasdaq's review period, the Company's overall financial condition and its public disclosures. If Nasdaq does not accept the Company's plan, the Company may request a hearing, at which hearing it would present its plan to a Nasdaq Hearings Panel. About Ryvyl Inc. San Diego, Calif.-based RYVYL Inc., together with its subsidiaries, is a financial technology company that develops, markets, and sells innovative blockchain-based payment solutions, which offer significant improvements for the payment solutions marketplace. The Company's core focus is to develop and monetize disruptive blockchain-based applications, integrated within an end-to-end suite of financial products, capable of supporting a multitude of industries. In its report dated March 28, 2025, the Company's auditor, Simon & Edward, LLP, issued a 'going concern' qualification, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, noting that the transitioning of the Company's QuickCard product in North America led to a significant decline in processing volume and revenue, the recovery of these lost revenues is not expected until late 2025. The loss of revenue resulting from this business reorganization has jeopardized its ability to continue as a going concern. SABAL CONSTRUCTION: Gets Extension to Access Cash Collateral ------------------------------------------------------------ Sabal Construction, Inc. received another extension from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to use cash collateral. At the hearing held on April 29, the bankruptcy court allowed the company to continue to use its creditors' cash collateral and set a further hearing for June 3. The court previously suspended the company's use of cash collateral following the initial hearing on the motion filed by its creditors, Thiru and Judith Arasu, to terminate the company's access to their cash collateral. The suspension took effect on April 4. On April 22, the court issued an order reinstating the company's authority to use cash collateral. The April 22 order authorized the company to pay certain expenses from the cash collateral provided its account balance does not fall below $116,000. The order also permitted the company to use cash collateral above the $116,000 mark with replacement liens and rights that existed as of the date of filing as to The Arasus, New World Holdings, LLC and the U.S. Small Business Administration. About Sabal Construction Incorporated Established in 2013, Sabal Construction Incorporated is a veteran-owned and operated construction company based in Tampa, Fla. It specializes in luxury custom waterfront homes and light commercial projects. Sabal sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-01450) on March 10, 2025, listing between $50,000 and $100,000 in assets and between $1 million and $10 million in liabilities. Galen Brent Hebert, president of Sabal, signed the petition. Judge Catherine Peek Mcewen presides over the case. Jake C. Blanchard, Esq., at Blanchard Law, P.A. represents the Debtor as bankruptcy counsel. Thiru Arasu and Judith Arasu, as creditors, are represented by: Buddy D. Ford, Esq. Email: Buddy@tampaesq.com Jonathan A. Semach, Esq. Email: Jonathan@tampaesq.com FORD & SEMACH, P.A., 9301 West Hillsborough Avenue Tampa, Florida 33615-3008 Telephone #: (813) 877-4669 Facsimile #: (813) 877-5543 Office Email: All@tampaesq.com SABRE HOLDINGS: Moody's Alters Outlook on 'B3' CFR to Stable ------------------------------------------------------------ Moody's Ratings affirmed Sabre Holdings Corporation's (Sabre or the Company) B3 Corporate Family Rating and B3-PD Probability of Default Rating. Moody's also affirmed the B3 ratings on Sabre GLBL Inc.'s (a wholly-owned subsidiary of Sabre) backed senior secured notes and senior secured bank credit facilities. Moody's also affirmed the B2 rating on Sabre Financial Borrower, LLC's backed senior secured term loan. The outlooks for all three issuers were changed to stable from negative and Sabre's Speculative Grade Liquidity Rating (SGL) was maintained at SGL-2. The rating action reflects the company's definitive agreement to sell its hospitality segment to TPG Capital for approximately $1.1 billion. The transaction has been approved by the company's Board of Directors and is expected to close by the end of the third quarter 2025, subject to customary closing conditions and regulatory approvals. The closing of the transaction is not subject to any financing conditions. The transaction is credit positive as the business is being sold at a high multiple of reported earnings and the company plans to use most of the sale proceeds (approximately $960 million net of transaction fees and expenses) to repay debt. Pro forma for the closing, Moody's estimates leverage could decline by approximately .7x (based on 2024 segment reporting). The sale of the segment will reduce Moody's adjusted revenue and EBITDA by approximately 11% and 9%, respectively. In addition, Moody's expects 3%-4% revenue growth of the remaining distribution business, and significant growth in EBITDA and free cash flows in 2025, driven by cost savings and growth initiatives. RATINGS RATIONALE Sabre's B3 CFR reflects governance risk (as reflected in the G-4 Governance Issuer Profile Score and CIS-4 Credit Impact Score) driven by high leverage (12.9x at the end of 2024), weak profitability (13.3% EBITDA margin, Moody's adjusted 2024), and break-even free cash flow (Moody's adjusted 2024) burdened by high borrowing costs (near 10%, weighted average). The company is disadvantaged by a high mix of corporate and long-haul, cross-border international travel which has not fully recovered from the pandemic. This travel has been structurally disrupted by the shift to hybrid work arrangements and mass adoption of virtual meetings which has proved an effective productivity tool that has decreased the need for business travel and in-person meetings. Regional conflicts and airplane and pilot shortage are also constraints. Additionally, bookings of direct-to-consumer and through online travel agents is rising. Higher demand for low-cost carriers (not well distributed by Global Distribution System, GDS) and the emergence of disruptive technology, notably Gen AI, is also a threat to accelerate disintermediation of GDS as domestic, short-distance, point-to-point leisure travel get easier to book directly with airlines. Despite the challenges, the Company has a long operating history and a strong and established market position as the number two provider of GDS services globally, with a relatively stable market share. While its corporate travel mix is a constraint to faster growth, it's also a more defensible business given the value and the complexity of the service delivery which requires a large network of partners and proprietary routing logic. The business is also not exposed to changes in airfares given the passenger volume driven business model. Earnings and margins are expanding, driven by a more favorable and efficient cost structure and revenue growth supported by sustained demand for travel. Coupled with a conservative financial policy that targets 2.5x to 3.0x net leverage, and the company's growing capacity to significantly reduce debt (using all free cash flows and some cash balance), leverage could decline substantially over the next 12-18 months. The stable outlook reflects Moody's expectations for significant deleveraging over the next 12 to 18 months, driven primarily by mandatory debt repayments and earnings growth such that leverage could approach 7x (assuming the sale of the hospitality business, which would help delever by about .7x). Moody's also expects low single-digit revenue growth and significant margin improvement, supported by a more efficient cost structure which should produce up to $200 million in free cash flow in 2025. Liquidity is good (SGL-2), supported by a large cash balance of approximately $724 million at the end of the last quarter end which is more than sufficient to cover all basic obligations over the next 12 months including 2025 debt maturities. The company does not maintain revolving credit facilities, but does have access to two securitization facilities totaling $235 million in commitments which are largely utilized. The company's private credit term loan (the PIK facility) is subject to a minimum asset coverage test of 75% (e.g., subsidiary guarantors must hold at least 75% of total gross consolidated assets within the foreign entities in the guarantor structure) and the guarantors and their subsidiaries are subject to a minimum liquidity covenant of at least $100 million. There are no other secured credit facility maintenance covenants. Following the sale, alternate liquidity will be limited by a largely secured capital structure, very thin market capitalization, and asset lite-business model. The senior secured term loans and notes, issued at Sabre GLBL Inc., Sabre Holdings Corporation's wholly owned direct subsidiary, are rated B3, equal to Sabre's Corporate Family Rating (CFR) given the predominance of this debt class in the capital structure. Security for the existing senior secured lenders includes the assets of all domestic subsidiaries and a 2/3 stock pledge of the stock of foreign subsidiaries. The notes are guaranteed by Sabre Holdings Corporation and each of Sabre GLBL Inc.'s existing and future subsidiaries that are borrowers or guarantors of the senior secured bank credit facilities. The senior secured term loan (with a PIK feature) issued at Sabre Financial Borrower, LLC (a subsidiary of Sabre Holdings Corporation) is rated B2, one notch above the existing senior secured lenders, because they have a priority claim over the existing secured claims with a guarantee from the majority of Sabre's foreign assets limited to $400 million. The credit ratings on senior secured debt also reflects support provided by subordinate and unrated exchangeable notes and Moody's expectations for an average family recovery in a default scenario. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if leverage (gross debt to EBITDA, Moody's adjusted) is sustained below 5.5x (Moody's adjusted) and free cash flow to debt is sustained in the mid-single digit percent range. A positive rating action could also be conditional on successfully refinancing upcoming maturities well in advance, operating performance is consistent with management's plan, liquidity improves, and there are no material unfavorable changes in the company's market position or scale. Ratings could be downgraded if leverage (gross debt to EBITDA, Moody's adjusted) does not materially improve over the next 12 to 18 months such that Moody's believes the capital structure may be unsustainable. A negative rating action could also be considered if liquidity declines, near term debt maturities are not successfully refinanced well in advance, if operating performance deviates from management's plan, or there are material unfavorable and sustained changes in the company's market position, scale, or business model. Based in Southlake, TX, Sabre Holdings Corporation's business is organized in two segments. The Travel Solutions segment includes revenues from Global Distribution System (GDS) services (a software-based passenger reservation system) as well as from commercial and operations offerings to the airline industry. The Hospitality Solutions segment includes distribution, operations, and marketing offerings for the hotel industry. Revenue in 2024 was approximately $3.0 billion. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. SANTA FE MARINA: Seeks Chapter 11 Bankruptcy in Florida ------------------------------------------------------- On April 25, 2025, Santa Fe Marina LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern 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 Santa Fe Marina LLC Santa Fe Marina LLC, operating as Ellie Ray's RV Resort and Bar, operates a recreational facility offering RV camping accommodations, marina services, and food/beverage operations through its bar located at 3349 Northwest 110th Street in Branford, Florida. Santa Fe Marina LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-10098) on April 25, 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 Bradley R. Markey, Esq. SCHAFER FISHERIES: Court OKs Continued Use of Cash Collateral ------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois, Western Division, granted Schafer Fisheries, Inc.'s authority to continue using cash collateral through June 30. The bankruptcy court did not receive objection to the continued use of cash collateral and payment to the secured creditor as set forth in the budget. A status hearing is scheduled for June 4. About Schafer Fisheries Schafer Fisheries Inc. is a seafood processor and distributor in Fulton, Ill. Schafer Fisheries filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-80824) on June 20, 2024, listing between $100,001 and $500,000 in assets and between $1 million and $10 million in liabilities. Jennifer Schank of Fuhrman & Dodge, S.C. serves as Subchapter V trustee. Judge Thomas M. Lynch oversees the case. Schafer Fisheries tapped The Golding Law Offices PC and Leibowitz, Hiltz & Zanzig, LLC as bankruptcy counsel, and Philip Firrek as consultant. The Debtor is represented by: Richard N. Golding, Esq. Law Offices Of Richard N. Golding, P.C. Tel: 312-832-7885 Email: rgolding@goldinglaw.net SCV GRAPHIC: Seeks Chapter 11 Bankruptcy in Georgia --------------------------------------------------- On April 28, 2025, SCV Graphic Productions Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Georgia. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 100 and 199 creditors. The petition states funds will be available to unsecured creditors. About SCV Graphic Productions Inc. SCV Graphic Productions Inc., operating as Dangling Carrot Creative, is a custom graphics and display manufacturing company that specializes in manufacturing custom displays, signage, and creative installations using materials such as composites, plastics, and foams, alongside printing and imaging technology. The company maintains operations in both Fayetteville, Georgia and Valencia, California, with its principal place of business located in Georgia. SCV Graphic Productions Inc.sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-10613) on April 28, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Benjamin R. Keck, Esq. at Keck Legal, LLC. SHAHINAZ SOLIMAN: Gets Interim OK to Use Cash Collateral -------------------------------------------------------- Shahinaz Soliman Clinic Corp. got the green light from the U.S. Bankruptcy Court for the Central District of California to use cash collateral to pay its expenses. The order penned by Judge Barry Russell authorized the company's interim use of cash collateral and monthly payments of $2,140 to the U.S. Small Business Administration. A final hearing is scheduled for July 15. The company's accounts and personal property constitute the cash collateral of its secured creditors including SBA. As of the petition date, the company's personal property is valued at $417,100. About Shahinaz Soliman Clinic Corp. Shahinaz Soliman Clinic Corp., dba Soliman Care Family Practice Center Inc., is a family practice health center that offers comprehensive healthcare services for individuals of all ages, from pediatrics to geriatrics. The clinic specializes in both acute and chronic care, focusing on prevention, diagnosis, and holistic treatment. Led by Dr. Shahinaz Soliman, the center is committed to providing compassionate, culturally competent, and patient-centered care to the community. Shahinaz Soliman Clinic Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.: 25-12747) on April 2, 2025. In its petition, the Debtor reported estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Judge Barry Russell handles the case. The Debtor is represented by Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger. SHAHINAZ SOLIMAN: U.S. Trustee Appoints Robert Splawn as PCO ------------------------------------------------------------ Peter Anderson, the U.S. Trustee for Region 16, appointed Robert Splawn as patient care ombudsman for Shahinaz Soliman Clinic Corp. The appointment was made pursuant to the order from the U.S. Bankruptcy Court for the Central District of California on April 7. Mr. Splawn disclosed in a court filing that he is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. About Shahinaz Soliman Clinic Corp. Shahinaz Soliman Clinic Corp., dba Soliman Care Family Practice Center Inc., is a family practice health center that offers comprehensive healthcare services for individuals of all ages, from pediatrics to geriatrics. The clinic specializes in both acute and chronic care, focusing on prevention, diagnosis, and holistic treatment. Led by Dr. Shahinaz Soliman, the center is committed to providing compassionate, culturally competent, and patient centered care to the community. Shahinaz Soliman Clinic Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.: 25-12747) on April 2, 2025. In its petition, the Debtor reported estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Judge Barry Russell handles the case. The Debtor is represented by Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger. SHIFT4 PAYMENTS: S&P Assigns 'BB-' ICR on Proposed Financing ------------------------------------------------------------ S&P Global Ratings assigned its 'BB-' issuer credit rating to Shift4 Payments Inc. At the same time, S&P assigned its 'BB+' issue-level and '1' recovery ratings to its proposed $1 billion senior secured term loan and its 'BB-' issue-level and '4' recovery ratings to its existing senior unsecured notes due in 2032. The stable outlook reflects S&P's expectation that the combined company will continue to expand at a healthy pace and maintain favorable profit margins, sustaining leverage well below 5x by 2026. S&P thinks Shift4 will increase revenue more than 30% annually through 2025 and 2026. Acquisition contribution and end-to-end payment volume expansion have sparked rapid growth since its IPO in 2020. A combination of acquisitions and organic expansion opportunities increased revenue to roughly $3.3 billion in 2024 from approximately $766 million in 2020. In 2024, it reported 26% organic growth and 44% total revenue expansion. Acquisitions have allowed the company to move into new verticals and geographies and broaden its capabilities. These include its 2021 acquisition of VenueNext, which enabled its expansion into the sports and entertainment vertical, and its 2023 acquisition of Finaro, which expanded its presence into Europe and provided cross-border e-commerce capabilities. Key drivers of organic growth include converting existing merchants, including those acquired through prior acquisitions, to its end-to-end payments processing platforms that provide point of sale (POS) devices, payment software, and additional services. S&P said, "In our view, eliminating duplicate products from acquired companies and ceasing support for acquired platforms is an integral component of Shift4's organic growth plans. We expect the company to sustain strong growth on a stand-alone basis over the next two years, further supported by the Global Blue acquisition. While its strategy for integrating is not without risks, including the potential for higher attrition among acquired customers, it enables Shift4 to streamline its focus on its flagship products, which we think provide better operational efficiencies relative to other highly acquisitive companies." Shift4 has modified its go-to-market strategy to reduce reliance on distribution partners. This has improved its profit margin profile in recent years. In 2022, the company added a direct distribution channel and began in-sourcing its distribution network. It distributes directly to about one-third of its restaurants vertical and half of its hospitality vertical, reducing revenue sharing payments to distribution partners and improving gross profit margins. Direct relationships should benefit customer retention and better enable cross-selling opportunities. Still, some reliance on third-party partners and independent software vendors is appropriate, especially for vending to smaller merchants in sparsely populated areas. Shift4's customer acquisition strategy along with a movement to end-to-end payment products have led to favorable profit margins. S&P said, "We forecast S&P Global Ratings-adjusted EBITDA margin of about 41% in 2025, an improvement of more than 200 basis points (bps) in 2026 on reduced acquisition and transaction related expenses, benefits from scale, and a revenue mix shift toward end-to-end payments. We calculate EBITDA margin as a percentage of gross revenue less network fees (GRLNF)." The acquisition of Global Blue expands Shift4's geographic reach and capabilities. The $2.5 billion acquisition will improve cross-selling opportunities, though it entails integration risk; increase Shift4's GRLNF by more than 35%; and enable its payment processing capabilities across 75 countries with more meaningful penetration in Europe. S&P said, "The company will benefit from a significant opportunity to sell its product suite to Global Blue's more than 400,000 merchant locations, which we think will support growth over the next few years. Meanwhile, it expands capabilities to include tax free shopping and dynamic currency conversion, among others. We think this will expand modestly in existing markets with favorable secular trends, such as digitization and adoption of tax refunds for tourists by new countries. Dynamic currency conversion could be adopted more broadly across Shift4's infrastructure as an added feature for its merchants, providing incremental revenue opportunities. Furthermore, Global Blue's two-sided network maintains extensive data on shoppers that use its platform, which we think can provide valuable insights and additional monetization opportunities." The acquisition of Global Blue aligns with Shift4's strategy and the company has a track record of successfully integrating prior transactions. Still, S&P expects Shift4 to limit additional acquisitions and follow a more gradual timeline to integrate Global Blue, which should offset elevated integration risk. Financing the Global Blue acquisition will increase leverage above 5x, with a rapid drop toward 4x. S&P said, "Following the proposed debt issuance, we expect leverage of about 6.7x in 2025, reflecting a partial-year earnings contribution (low-5x area on a pro forma basis). Revenue growth and profit margin expansion should reduce leverage to about 4.3x in 2026. Our forecast incorporates internally generated cash and regularly issued incremental debt used to fund acquisitions of about $300 million annually beginning in 2026, as well as share repurchases. With a smooth integration progress, we expect Shift4 will maintain leverage in the low- to mid-4x area." S&P said, "We also consider free operating cash flow (FOCF) to debt an important indicator of Shift4's financial risk profile because of its high capital expenditure at more than 10% of GRLNF (including capitalized software development costs). We expect FOCF to debt increasing to about 10% by 2026. "We include the proposed $750 million mandatory convertible preferred share issuance in our calculation of debt because the mandatory conversion date is more than two years away. However, assuming consistent performance with no changes to the terms and no deterioration in ratings, we expect to treat the instrument as equity once the mandatory conversion date is within two years. Our other adjustments to debt include Shift4's tax receivable agreement liability ($365 million as of Dec. 31, 2024, which we expect will increase), forecast lease liabilities ($40 million as of Dec. 31), and contingent liabilities ($26 million). We net cash balances against its debt and adjust EBITDA to reclassify capitalized software development costs as an expense, though we add back-lease expenses and stock compensation. "Shift4 will continue to rely on verticals exposed to cyclical consumer discretionary spending. We anticipate greater volatility compared to larger, better diversified peers. Shift4 primarily serves merchants in the restaurants, hospitality, and sports and entertainment verticals. We view these as cyclical markets highly dependent on consumer spending patterns and believe an economic slowdown could hamper payment volumes across Shift4's primary markets. Meanwhile, merchants contending with challenging conditions are likely to become increasingly price sensitive, pressuring both price and volume. Still, Shift4 continues to expand rapidly through acquisitions, cross-selling, and upselling its products. We think its end-to-end payment volumes can continue to expand, albeit slower, even with contracting industry volumes. Additionally, its subscription-based revenues should limit volatility tied to macroeconomic cyclicality. We also think Shift4's strategy to provide free hardware to new merchants and eliminate certain other fees could appear more favorable during a downturn, enabling more conversions." Competition is fierce, and competitors' improving products could pose a risk. Shift4's focus on a few verticals allows it to concentrate on the unique needs of the restaurant, hospitality, retail, and entertainment industries. Still, payment processing comprises providers seeking to expand their share of wallet by developing competitive offerings and delivering a more compelling value proposition to merchants. Shift4's leading position in the hospitality segment is enabled by acquired and organically developed capabilities that allow it to meet its clients' complex needs. Shift4 is the second largest provider in the restaurant segment, in which its Skytab product suite competes with the leading provider, Toast. Its flagship product in the sports and entertainment segment, Skytab Venue, provides integrated products throughout a site, including online and box office ticket sales, concessions, mobile ordering, retail, and loyalty programs. The merchant operator avoids having multiple disparate systems in favor of a unified solution to simplify its experience. S&P said, "The stable outlook reflects that we expect continued good business execution with healthy organic revenue growth through expanding end-to-end payment volumes, cross-selling opportunities, and new logo wins. We think leverage will decline below 5x shortly after the acquisition closes and FOCF to debt will remain comfortably above 5% during our forecast period." S&P could lower the rating on Shift4 if: -- The company adopts a more aggressive financial policy such that S&P expects leverage to remain above 5x or maintains FOCF to debt below 5%; or -- Operating performance weakens or merchant attrition rises, and the company cannot sustain growth momentum and profit margins, leading S&P to believe its competitive position has weakened. S&P could raise the rating on Shift4 if: -- It continues to expand its scale, capturing market share and expanding into new verticals that reduce its exposure to cyclicality while maintaining its profit margin profile; or -- S&P expects leverage will be sustained below 3.5x and FOCF to debt will remain above 10%, and management's financial policy sustains such leverage. SHIFT4 PAYMENTS: S&P Rates Proposed Euro Unsecured Notes 'BB-' -------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issue-level rating and '4' recovery rating to Allentown, Pa.-based Shift 4 Payments LLC's proposed eight-year senior unsecured euro notes. The '4' recovery rating indicates its expectation for average (30%-50%; rounded estimate: 30%) recovery in the event of a default. Shift4 will use the proceeds, with term loan and mandatory convertible shares announced previously, to fund its acquisition of Global Blue Group Holding AG. S&P's 'BB-' issuer credit rating and stable outlook on Shift4 are unchanged. ISSUE RATINGS - RECOVERY ANALYSIS Key analytical factors -- The revolving credit facility and term loan B will be secured by first-priority liens on substantially all the property and assets of Shift4 Payments LLC and guaranteed by its subsidiaries. -- The senior unsecured notes are issued by Shift4 Payments LLC, guaranteed on a senior unsecured basis by certain of Shift4's subsidiaries, and subordinated to the revolver and term loan. -- The convertible notes (not rated) are also senior unsecured obligations issued by Shift4 Payments Inc. and structurally subordinated to the senior unsecured notes. -- S&P's simulated default scenario considers a payment default in 2029 following prolonged weak economic conditions, a significant decline in merchant transaction volumes, and competitive incursions that lead to pricing pressure. -- S&P believes Shift4 would reorganize following a payment default based on its proprietary technologies and large merchant network. -- S&P values the company on a going-concern basis using a 7x multiple. Simulated default assumptions -- Year of default: 2029 -- EBITDA at emergence: $330 million -- Implied enterprise value multiple: 7x -- Gross enterprise value at emergence: $2.31 billion Simplified waterfall -- Net enterprise value (after 5% administrative costs): $2.19 billion -- Valuation split (obligors/nonobligors): 75%/25% -- Secured first-lien debt: $1.38 billion --Recovery expectations: 90%-100% (rounded estimate: 95%) -- Collateral value available to senior unsecured creditors: $808 million -- Senior unsecured debt: $2.35 billion --Recovery expectations: 30%-50% (rounded estimate: 30%) SHILLINGS' CANNERY: Gets Interim OK to Use Cash Collateral ---------------------------------------------------------- Shillings' Cannery, L.L.C. got the green light from the U.S. Bankruptcy Court for the District of Columbia to use cash collateral. The order penned by Judge Elizabeth Gunn authorized the Debtor's interim use of cash collateral for the period from April 24 to May 8 to pay its expenses. The U.S. Small Business Administration, a secured creditor, will be granted a replacement lien on all post-petition assets of the Debtor to the same extent and with the same priority as its pre-bankruptcy lien. A final hearing is set for May 7. The Debtor's business has faced declining revenues, leading to unpaid rent and cash flow issues, prompting it to borrow from SBA through an Economic Injury Disaster Loan (EIDL). As of the petition date, the Debtor owed SBA approximately $564,000, secured by a UCC-1 lien covering all business assets. About Shillings' Cannery Shillings' Cannery, L.L.C. operates a restaurant located at 360 Water Street, SE, Washington D.C. Shillings' Cannery filed Chapter 11 petition (Bankr. D. D.C. Case No. 25-00145) on April 22, 2025, listing up to $500,000 in assets and up to $1 million in liabilities. Reid Shilling, manager, signed the petition. Judge Elizabeth L. Gunn oversees the case. Justin P. Fasano, Esq., at McNamee Hosea, P.A., represents the Debtor as legal counsel. SIGNATURE YHM: Gets OK to Hire Golden Goodrich LLP as Counsel ------------------------------------------------------------- Signature YHM Land LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Georgia to employ Golden Goodrich LLP as its counsel. The firm will render these services: i. advise the Debtor with respect to the requirements and provisions of the Bankruptcy Code, Federal Rules of Bankruptcy Procedure, Local Bankruptcy Rules, U.S. Trustee Guidelines, and other applicable requirements which may affect the Debtor; ii. assist the Debtor in preparing and filing Schedules and Statement of Financial Affairs, complying with and fulfilling U.S. Trustee requirements, and preparing other documents as may be required after the initiation of a chapter 11 case; iii. if appropriate, assist the Debtor in selling the Properties, including preparing the necessary pleadings for the Court to approve the terms of any such sale, participating in any hearings before this Court regarding the sale, including any auction that may occur, and, should the Court approve the sale, taking actions necessary to close the sale; iv. assist the Debtor in negotiations with creditors and other parties-in-interest; v. assist the Debtor in the preparation of a disclosure statement and formulation of a chapter 11 plan; vi. advise the Debtor concerning the rights and remedies of the estate and of the Debtor in regard to adversary proceedings which may be removed to, or initiated in, the Bankruptcy Court, and assist the Debtor, if appropriate, in retaining special counsel to litigate such adversary proceedings; vii. prepare all motions, applications, answers, orders, reports, and papers on behalf of the Debtor that are necessary to the administration of the bankruptcy case; viii. represent the Debtor in any proceeding or hearing in the main bankruptcy case where the rights of the estate or the Debtor may be litigated, or affected; and ix. otherwise provide those services to the Debtor as are generally provided by general insolvency counsel to a debtor and debtor-in-possession in a chapter 11 case. The firm will undertake representation of the Debtor at hourly rates ranging from $250 to $850. The majority of the work will be performed by Jeffrey I. Golden at $850 per hour and Sara Tidd at $625 per hour. In March 2025, the Firm received $25,000 from the Jekogian Family Trust, of which $7,988 was applied to prepetition services and expenses, leaving a balance of $17,012 which is maintained in the firm's retainer account. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Jeffrey I. Golden, Esq., a partner at Golden Goodrich LLP, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Jeffrey I. Golden, Esq. GOLDEN GOODRICH, LLP 3070 Bristol Street, Suite 640 Costa Mesa, CA 92626 Tel: (714) 966-1000 Fax: (714) 966-1002 Email: jgolden@go2.law About Signature YHM Land LLC Signature YHM Land LLC operates in the real estate sector. Signature YHM Land LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No.: 25-50324) on March 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Jeffrey I. Golden, Esq. at GOLDEN GOODRICH LLP. SKY RADIOLOGY: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Sky Radiology P.C. 210-12 Northern Blvd. Bayside, NY 11361-3240 Business Description: Sky Radiology P.C. operates a diagnostic imaging center specializing in magnetic resonance imaging (MRI) services. Based in Bayside, New York, the clinic serves patients in the surrounding area. Chapter 11 Petition Date: May 2, 2025 Court: United States Bankruptcy Court Eastern District of New York Case No.: 25-42147 Judge: Hon. Elizabeth S Stong Debtor's Counsel: James Mermigis, Esq. THE MERMIGIS LAW GROUP, P.C. 85 Cold Spring Road Syosset, NY 11791 Tel: 516-353-0075 E-mail: mermigislaw@gmail.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Brijesh V. Reddy M.D. as president. The Debtor failed to attach a list of its 20 largest unsecured creditors to the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/4QLS3BA/Sky_Radiology_PC__nyebke-25-42147__0001.0.pdf?mcid=tGE4TAMA SLEEP COUNTRY: S&P Retains 'BB-' Rating on Unsecured Debt --------------------------------------------------------- S&P Global Ratings revised its recovery rating on Canada-based Sleep Country Canada Holdings Inc.'s C$600 million senior unsecured notes to '4' from '3'. The '4' recovery rating reflects average (rounded estimate: 45%) recovery in event of default. S&P's 'BB-' issue-level rating on the company's unsecured debt is unchanged. Sleep Country plans to acquire U.K.-based online mattress retailer Simba Sleep Ltd. for C$115 million. The company plans to fund this acquisition by issuing an additional C$150 million in senior unsecured notes. Concurrently, the company also plans to expand its secured revolving credit facility to C$400 million from a combined approximately C$300 million revolver and term loan, as of year-end December 2024. As a result of higher secured and unsecured debt compared with our previous assessment, S&P expects lower enterprise value available to unsecured debt holders in an event of hypothetical default relative to S&P's previous assessment. The acquisition of Simba is neutral to the credit profile of Sleep Country. S&P said, "We expect, pro forma for the acquisition, Sleep Country will maintain debt to EBITDA of about 4.7x-4.8x in 2025. At present, our forecasts do not include any potential direct or indirect impact of tariffs on Sleep Country's operating performance for 2025. We note that Sleep Country generates a very small proportion of its overall sales from the U.S, hence the impact from tariffs on products being imported from China should be minimal." That said, S&P Global Ratings believes there is a high degree of unpredictability around policy implementation by the U.S. administration and possible responses--specifically with regard to tariffs--and the potential effect on economies, supply chains, and credit conditions around the world. S&P said, "As a result, our baseline forecasts carry a significant amount of uncertainty. As situations evolve, we will gauge the macro and credit materiality of potential and actual policy shifts and reassess our guidance accordingly." S&P said, "Stand-alone Sleep Country's financial performance for year-end 2024 is modestly better than our expectations. The company exited 2024 with leverage of 5.5x compared with our expectation of 6x owing to both modestly higher EBITDA and lower debt relative to our previous expectation. Our 'BB-' issuer credit rating and stable outlook on the company are unchanged. Our ratings reflect the small scale of Sleep Country's revenue relative to its North American peers, its limited geographic diversity, and the discretionary nature of its products. The rating also reflects positive factors such as the company's entrenched market position, brand diversity, and omnichannel capabilities. Our rating on Sleep Country also includes one notch of uplift to reflect the support from its parent Fairfax based on our expectation that under extraordinary challenging circumstances Fairfax would support the company." ISSUE RATINGS - RECOVERY ANALYSIS Key analytical factors -- S&P simulates a default scenario occurring in 2029 because of a significant decline in revenue and operating income amid a recessionary environment or business execution issues, leading to lower sales and profit margins for the company. -- S&P assumes a default year minimum capital expenditure (capex) of 2% of sales based on its estimate of minimum capex needs and investments necessary to run its operations. -- The emergence EBITDA of about C$128 million roughly reflects the company's fixed-charge requirements of about C$65 million of interest and default year capex of C$23 million. -- S&P applies a positive 30% operational adjustment for Sleep Country given the company's low leverage. -- The 5.5x multiple reflects the company's industry and market position and is in line with specialty retailers. Simulated default assumptions -- Simulated year of default: 2029 -- EBITDA at emergence: About C$128 million -- EBITDA multiple: 5.5x -- Estimated gross enterprise value (EV) at emergence: About C$704 million. Simplified waterfall -- Net EV at default (after 5% administrative costs): About C$669 million -- Obligor/nonobligor valuation split: 100%/0% -- Value available to first-lien debt: About C$669 million -- Secured first-lien debt claims: About C$353 million -- Value available to unsecured claims: About C$316 million -- Total unsecured debt: About C$636 million -- Recovery expectations: 30%-50%; rounded estimate: 45% SOLID FINANCIAL: Hires Rock Creek as Financial Advisor, Sales Agent ------------------------------------------------------------------- Solid Financial Technologies Inc. seeks approval from the U.S. Bankruptcy Court for the District of Delaware to hire Rock Creek Advisors, LLC as financial advisor and sales agent. The firm will render these financial advisory services: (a) assist the Debtor in evaluating strategic restructuring alternatives; (b) assist the Debtor with preparation of a 13-week cash forecast including professional fees related to potential restructuring alternatives; (c) assist the Debtor and its counsel in negotiations with various parties-in-interest; (d) provide guidance to the Debtor in completing the necessary schedules to accompany restructuring alternatives; (e) assist the Debtor with the preparation of data in order to prepare the petition, schedules, pleadings and fiduciary filings required in a bankruptcy proceeding; (f) assist the Debtor and counsel to provide the Debtor and/or the court any information necessary to confirm and consummate a plan in a bankruptcy proceeding; and (g) support the Debtor in such matters as the board of directors of the Debtor shall request or require from time to time. Rock Creek will render these services as sales agent: (a) develop a list of available assets for sale, including fixed assets, contracts, inventory, IP, accounts receivable, licenses, tax assets (NOLs and ERTC), and intangibles; (b) prepare a sale memo providing notice of the sale to help market the Debtor's assets; (c) develop a select target list of potential buyers, with input from the Debtor; (d) organize due diligence materials in a confidential virtual data room; (e) collect and assist in execution of NDAs as interested parties seek access to confidential information; (f) assist the Debtor to determine if an auction or date certain term sheets deadline will maximize value; (g) manage the sale process and due diligence inquiries of interested parties to help facilitate bids/term sheets; (h) set up bidding and auction/term sheet procedures and share with interested parties; (i) assist in qualifying bidders for the process; (j) communicate rules of the auction/term sheets to Qualified Bidders and their agents; (k) assist the Debtor and its legal counsel with preparation and/or negotiation of the bid term sheets for Qualified Bidders to participate in the sale process; (l) collect and hold the deposits for Qualified Bidders; (m) assist the Debtor and its legal counsel with preparation and/or negotiation of one or more asset purchase agreements (APA) and related transaction documents; (n) if an APA is provided by the Debtor in advance of the auction/term sheet deadline, work with the Debtor and Qualified Bidders to accept major terms of the APA as a required part of their respective bids; (o) run the auction on the proposed auction date, if appropriate; (p) return deposits to non-winning parties once the transaction has closed in accordance with bid procedures; and (q) facilitate the closing of the transaction(s) with the winning bidder(s). The current hourly rates charged by Rock Creek are as follows: Brian Ayers, Managing Director $495 Chris Peirce, Vice President $395 Managing Directors $450 to $610 Managers and Senior Managers $325 to $450 Associates and Staff $200 to $325 Additionally, as sales agent, the firm will be compensated as follows: (i) a monthly fee in the amount of $30,000; and (ii) a two-tiered success fee, consisting of 10 percent on total consideration paid by a buyer up to $5,000,000 and 5 percent above this amount; provided, that the Success Fees will be 4 percent for transactions with certain parties the Debtor has previously explored a transaction with prior to engaging Rock Creek. Brian Ayers, managing director at Rock Creek Advisors, assured the court that his firm is a "disinterested person" within the meaning of 11 U.S.C. 101(14). The firm can be reached through: Brian Ayers Rock Creek Advisors, LLC 1738 Belmar Blvd. Belmar, NJ 07719 Phone: (201) 315-2521 Email: bayers@rockcreekfa.com About Solid Financial Technologies Inc. Solid Financial Technologies Inc. is a FinTech platform that enables banks and companies to build, scale, and launch banking and payment solutions with ease. By offering services like account creation, payments processing, and card issuance, Solid integrates with partner banks to deliver seamless financial experiences. The platform prioritizes security and compliance, helping companies navigate regulatory requirements while driving innovation in the financial ecosystem. Solid Financial Technologies Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10669) on April 7, 2025. In its petition, the Debtor reports total assets as of February 28, 2025 of $10,523,766 and total liabilities as of February 28, 2025 of $4,131,647. Honorable Bankruptcy Judge Brendan Linehan Shannon handles the case. The Debtor is represented by Matthew P. Ward, Esq. at WOMBLE BOND DICKINSON (US) LLP. ROCK CREEK ADVISORS, LLC is the Debtor's financial advisor. SOLID FINANCIAL: Seeks to Hire Ordinary Course Professionals ------------------------------------------------------------ Solid Financial Technologies Inc. seeks approval from the U.S. Bankruptcy Court for the District of Delaware to retain non-bankruptcy professionals in the ordinary course of business. The Debtors need ordinary course professionals to perform services for matters unrelated to this Chapter 11 case. The Debtors seek to pay OCPs 100 percent of the fees and expenses incurred. The Debtors do not believe that any of the OCPs have an interest materially adverse to them, their estates, creditors, or other parties in interest in connection with the matter upon which they are to be engaged. The OCPs include: Quinn Emanuel Urquhart & Sullivan, LLP 50 California Street, 22nd Floor San Francisco, CA 94111 --Litigation Counsel Clovity, Inc 11501 Dublin Blvd., Suite 200, Dublin, CA 94568 --Accounting/bookkeeping KLDiscovery Ontrack, LLC 9023 Columbine Rd Eden Prairie, MN 55347-4182 --Data management Miklos CPA 355 S Grand Ave Ste 2450, Los Angeles, CA 90071 --Accountants About Solid Financial Technologies Inc. Solid Financial Technologies Inc. is a FinTech platform that enables banks and companies to build, scale, and launch banking and payment solutions with ease. By offering services like account creation, payments processing, and card issuance, Solid integrates with partner banks to deliver seamless financial experiences. The platform prioritizes security and compliance, helping companies navigate regulatory requirements while driving innovation in the financial ecosystem. Solid Financial Technologies Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10669) on April 7, 2025. In its petition, the Debtor reports total assets as of February 28, 2025 of $10,523,766 and total liabilities as of February 28, 2025 of $4,131,647. Honorable Bankruptcy Judge Brendan Linehan Shannon handles the case. The Debtor is represented by Matthew P. Ward, Esq. at WOMBLE BOND DICKINSON (US) LLP. ROCK CREEK ADVISORS, LLC is the Debtor's financial advisor. SOLID FINANCIAL: Taps Womble Bond Dickinson as Bankruptcy Counsel ----------------------------------------------------------------- Solid Financial Technologies Inc. seeks approval from the U.S. Bankruptcy Court for the District of Delaware to hire Womble Bond Dickinson (US) LLP as counsel. The firm's services include: a. advising the Debtor with respect to its powers and duties as a debtor-in-possession in the continued management and operation of its business and properties; b. attending meetings and negotiating with representatives of creditors, interest holders, and other parties in interest; c. analyzing proofs of claim filed against the Debtor and potential objections to such claims; d. taking necessary action on behalf of the Debtor to negotiate, obtain approval of and consummate the sale(s) of the Debtor's assets; e. analyzing executory contracts and unexpired leases and potential assumptions, assignments, or rejections of such contracts and leases; f. taking all necessary action to protect and preserve the Debtor's estate, including prosecuting actions on the Debtor's behalf, defending any action commenced against the Debtor, and representing the Debtor's interests in negotiations concerning litigation in which the Debtor is involved, including objections to claims filed against the estate; g. preparing motions, applications, answers, orders, reports, and papers necessary to the administration of the Debtor's estate; h. taking necessary action on behalf of the Debtor to negotiate, prepare, and obtain confirmation of a plan of reorganization; i. advising the Debtor in connection with any potential sale of assets or stock and taking necessary action to guide the Debtor through such potential sale; j. appearing before this Court or any Appellate Courts and protecting the interests of the Debtor's estate before those Courts and the United States Trustee for the District of Delaware; k. advising on corporate, litigation, environmental, finance, tax, employee benefits, and other legal matters; and l. performing all other necessary legal services for the Debtor in connection with the Chapter 11 Case. The firm will be paid at these rates: Partner $405 to $1,550 per hour Of Counsel $485 to $1,045 per hour Associate $340 to $775 per hour Senior Counsel $125 to $1,015 per hour Counsel $130 to $860 per hour Paralegal $110 to $600 per hour On March 3, 2025, Womble Bond received a retainer in the amount of $25,000 and, subsequently, the firm received four (4) additional retainers: $10,000 on March 14, 2025, $4,000 on March 24, 2025, $14,000 on March 31, 2025, and $16,827.51 on April 4, 2025. Matthew Ward, Esq., a partner at Womble Bond Dickinson (US), disclosed in a court filing that his firm is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. The firm can be reached at: Matthew Ward, Esq. Womble Bond Dickinson (US), LLP 1313 North Market Street, Suite 1200 Wilmington, DE 19801 Tel: (302) 252-4320 Fax: (302) 252-4330 Email: matthew.ward@wbd-us.com About Solid Financial Technologies Inc. Solid Financial Technologies Inc. is a FinTech platform that enables banks and companies to build, scale, and launch banking and payment solutions with ease. By offering services like account creation, payments processing, and card issuance, Solid integrates with partner banks to deliver seamless financial experiences. The platform prioritizes security and compliance, helping companies navigate regulatory requirements while driving innovation in the financial ecosystem. Solid Financial Technologies Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10669) on April 7, 2025. In its petition, the Debtor reports total assets as of February 28, 2025 of $10,523,766 and total liabilities as of February 28, 2025 of $4,131,647. Honorable Bankruptcy Judge Brendan Linehan Shannon handles the case. The Debtor is represented by Matthew P. Ward, Esq. at WOMBLE BOND DICKINSON (US) LLP. ROCK CREEK ADVISORS, LLC is the Debtor's financial advisor. SPACE SHADOW: Court Rejects Appeal from Sale Order -------------------------------------------------- Judge Gloria M. Navarro of the United States District Court for the District of Nevada granted the motion of Avatar REIT I, LLC to dismiss the appeal from the order of the United States Bankruptcy Court for the District of Nevada granting Space Shadow LLC's motion to sell its real property free and clear of liens. The Sale Order authorized the sale of commercial property located at 249 Stephanie Street, Henderson, Nevada. Both parties agree that this bankruptcy appeal should be dismissed but disagree on the grounds for dismissal. Appellant seeks to voluntarily dismiss the appeal arguing that it is moot because there is no longer a sale contemplated between the debtor and the buyer. Appellee argues that the appeal is not moot because a sale is still being contemplated and the only obstacle hindering the debtor from selling the property to the buyer is this appeal. Appellee ultimately contends that the appeal is frivolous, and it should be dismissed for Appellant's failure to prosecute the appeal by failing to file an opening brief by the deadline imposed by the District Court. The appeal is dismissed on the grounds that both parties agree that the matter should be dismissed, the District Court holds. Avatar REIT I, LLC appealed the Bankruptcy Court's order granting Space Shadow's Motion to Sell the Real Property of the Debtor Free and Clear of Liens, which was entered on December 9, 2024. Following the entry of the Sale Order, the proposed sale never materialized despite Appellant's agreement to dismiss this appeal and allow the sale to proceed. The buyer did not proceed with the purchase of the Property. Therefore, according to Avatar REIT I, the Sale Order is moot, both constitutionally and equitably. Avatar REIT I, LLC said it made several attempts to dismiss this appeal by stipulation to avoid wasting judicial resources but Appellee's counsel refused, stating "I am not sure we want the appeal dismissed. We are willing to let it play out." Now, Appellee has used its refusal to stipulate to dismiss the appeal, in a stunning manipulation of the facts, to argue in Appellee's Motion for Reconsideration, that the Appeal is the only reason Appellee cannot close on the sale of the Property, Avatar REIT I, LLC told the Court. Avatar REIT I, LLC said the Sale Order's enforceability hinged on the execution of specific terms, none of which materialized due to the buyer's refusal to proceed. The Debtor contended that the appeal must be dismissed so the sale can be completed and that the appeal was the only reason why the sale did not close. The District says its Dismissal Order does not make a determination on whether the appeal was frivolous and does not preclude Appellee from seeking fees and costs by separate motion pursuant to Fed. R. Bankr. P. 8020(a). Avatar REIT I, LLC is represented in the case by: Michael R. Brooks, Esq. Mark T. Lounsbury, Esq. GHIDOTTI BERGER LLP 7251 W. Lake Mead Blvd., Ste. 470 Las Vegas, NV 89128 Tel: (949) 427-2010 Fax: (949) 427-2732 E-mail: mbrooks@ghidottiberger.com mlounsbury@ghidottiberger.com The appellate case is, AVATAR REIT I, LLC, Appellant, vs. SPACE SHADOW, LLC, et al. Appellees, Case No. 2:24-cv-02374-GMN (D. Nev.). A copy of the Court's decision dated April 21, 2025, is available at https://urlcurt.com/u?l=wnnXfR from PacerMonitor.com. About Space Shadow LLC Space Shadow LLC in Henderson, NV, has been operating the real property located at 249 N. Stephanie Street, Henderson, Nevada. The Debtor filed its voluntary petition for Chapter 11 protection (Bankr. D. Nev. Case No. 23-14412) on October 9, 2023, listing as much as $1 million to $10 million in both assets and liabilities. Kayvoughn Moradi as managing member, signed the petition. Judge Hilary L. Barnes oversees the case. ANDERSEN & BEEDE serve as the Debtor's legal counsel. SUNNOVA ENERGY: Bondholders Postpone Default Action Until May ------------------------------------------------------------- Jim Silver and Dorothy Ma of Bloomberg News report that Sunnova disclosed in a Friday, May 2, 2025, filing that its bondholders have agreed to a forbearance pact lasting through May 8, 2025. During this period, holders of the 5.875% and 11.750% notes will refrain from exercising enforcement rights, including acceleration. Additionally, participating holders are barred from transferring the notes unless the recipient agrees to the forbearance terms, according to Bloomberg News. The agreement comes after Sunnova missed an interest payment on the 11.750% notes, triggering a 30-day grace period, the report states. 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. SUNNOVA ENERGY: Forms Special Committee with Two New Directors -------------------------------------------------------------- Sunnova Energy International Inc., an industry-leading adaptive energy services company, announced on April 11, 2025, the appointment of Tony Horton and Jeffrey S. Stein as independent Class I directors to its Board of Directors, effective April 11, 2025. Mr. Horton and Mr. Stein bring deep experience guiding companies through value maximizing capital structure transactions and periods of transformation. Their appointments underscore Sunnova's commitment to strong governance and enhancing the expertise of its Board. Mr. Horton brings extensive financial and business leadership expertise to the Board, having served in senior leadership and director roles across a range of public and private companies. He currently serves as Chief Executive Officer of AR Horton Advisors, Lead Independent Director for Team, Inc., and Independent Director for both Equiniti Trust Company and Talen Energy Corporation. With more than 25 years of energy and technology experience, including senior leadership roles at Energy Future Holdings Corporation and TXU Energy, Mr. Horton offers deep strategic insights and has a strong track record of guiding companies through turnarounds and restructuring matters. Mr. Stein brings more than 30 years of investment and financial services expertise to the Board, along with extensive experience as a corporate executive and director of both public and private companies. He is the Founder and Managing Partner of Stein Advisors LLC, a financial advisory firm serving public and private companies and institutional investors. Mr. Stein currently serves as Chairman of the Board of Directors of Ambac Financial Group, Inc. With deep experience in both debt and equity markets, particularly in distressed and special situations, Mr. Stein brings valuable financial insight and a proven ability to navigate complex situations. In connection with these appointments, Sunnova has formed a Special Committee of the Board, consisting of Mr. Horton and Mr. Stein. The Special Committee will be responsible for evaluating the Company's capital structure and financial condition and assessing and negotiating transactions and/or other strategic alternatives for the Company and its stakeholders. In addition to serving on the Special Committee, Mr. Horton will serve as a member of the Audit Committee and the Compensation and Human Capital Committee and Mr. Stein will serve as a member of the Audit Committee and the Nominating, Corporate Governance and Sustainability Committee. Mary Yang and Akbar Mohamad have stepped down from their roles on the Company's Board, effective April 11, 2025, and April 7, 2025, respectively. Sunnova is grateful for their contributions during their tenure and wishes them continued success in their future endeavors. Additionally, in accordance with the Company's governing documents and to establish an equal balance of membership among the classes of directors, Chief Executive Officer Paul Mathews has been reappointed to the Board as a Class III Director, transitioning from his prior role as a Class I Director. Mr. Mathews's service on the board continues uninterrupted and he continues to lead Sunnova's financial and operational strategies as CEO. These governance changes reflect the Board's commitment to taking proactive steps to support ongoing capital structure discussions with its key financial partners. Sunnova remains focused on stabilizing the Company's financial foundation and positioning the business for long-term success. 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. * * * In April 2024, Fitch Ratings has downgraded Sunnova Energy International Inc.'s (Sunnova) and Sunnova Energy Corporation's (SEC) Long-Term Company Default Ratings (IDRs) to 'C' from 'CCC-'. Fitch has also downgraded SEC's senior unsecured debt to 'C' with a Recovery Rating of 'RR4' from 'CCC'/'RR4'. The downgrade reflects initiation of a 30-day grace period following Sunnova's election of non-payment of $23.5 million of interest on its $400 million senior notes maturing 2028, which was due on April 1, 2025. This development comes amid substantial refinancing risk and persistently weak cash flows. SWEET TRUCKING: Hearing Today on Bid to Use Cash Collateral ----------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Tennessee, Northern Division, is set to hold a hearing today to consider the motion filed by Sweet Trucking Co., LLC to use cash collateral. Sweet Trucking Co. previously obtained an interim order authorizing limited use of cash collateral. The interim order allowed the Debtor to use up to $12,000 in cash collateral to fund its payroll on April 25 and up to $15,000 in cash collateral to pay fuel arrears. The interim order directed the Debtor to segregate $5,805.50, representing the scheduled claim for App Funding Beta, LLC. These funds will be held in the trust account of the attorney for the Debtor pending further order of the bankruptcy court. The Debtor intends to use funds that may be subject to secured claims by its creditors, including App Funding Beta, Keystone Financial, U.S. Bank, JB&B Capital, and Leaf Capital Funding. While the Debtor believes some creditors may have security interests in its accounts receivable and credit card receipts, it has not confirmed the extent or perfection of these liens and reserves the right to dispute them. As of the petition date, the Debtor had over $146,000 in accounts receivable, with the majority expected to be collected. These funds are essential to maintain operations in the Debtor's transportation and construction business. Without access to this cash collateral, the Debtor cannot cover operational costs critical to preserving its value and to its successful reorganization. The Debtor believes that creditors are adequately protected due to the surplus value of accounts receivable over the debt amounts, and by offering replacement liens on future receivables. A financial summary provided by the Debtor indicates average monthly gross revenue of about $197,000 and operating expenses of approximately $107,000, leaving around $90,000 per month for debt service and profit. A copy of the motion is available at https://urlcurt.com/u?l=h9Axei from PacerMonitor.com. About Sweet Trucking Co., LLC Sweet Trucking Co., LLC is a family-owned transportation company based in Knoxville, Tennessee, specializing in hauling heavy equipment locally and across state lines. The Company operates a fleet of trucks, tractors, and trailers and employs a team of drivers to manage logistics and transport. It provides various trailer types, including flatbeds, lowbeds, and gooseneck trailers, serving construction and industrial clients. Sweet Trucking Co. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bank. E.D. Tenn. Case No. 25-30765) on April 21, 2025, listing $1,293,647 in assets and $1,471,498 in liabilities. Gary Wayne Sweet, Jr., managing member of Sweet Trucking Co., signed the petition. Judge Suzanne H. Bauknight oversees the case. Keith Edmiston, Esq., at Clark & Washington, PC represents the Debtor as legal counsel. TALPHERA INC: Rosalind Entities Hold 9.9% Equity Stake ------------------------------------------------------ Rosalind Advisors, Inc., Rosalind Master Fund L.P., Steven Salamon, and Gilad Aharon disclosed in a Schedule 13G filed with the U.S. Securities and Exchange Commission that as of March 31, 2025, they beneficially own 7,642,515 common shares of Talphera, Inc., representing 9.9% of the 20,503,463 shares outstanding based on the Company's 10-K filing from March 17, 2025. The Reporting persons may be reached through: Rosalind Advisors, Inc. 25 ADMIRAL ROAD Toronto, Ontario A6 M5R 2L4 Tel: 416-888-7606 A full-text copy of Rosalind's SEC report is available at: https://tinyurl.com/5jzvac5z About Talphera Headquartered in San Mateo, California, Talphera, Inc. -- www.talphera.com -- is a specialty pharmaceutical company focused on the development and commercialization of innovative therapies for use in medically supervised settings. Talphera's lead product candidate, Niyad, is a lyophilized formulation of nafamostat and is currently being studied under an investigational device exemption (IDE) as an anticoagulant for the extracorporeal circuit, and has received Breakthrough Device Designation status from the U.S. Food and Drug Administration (FDA). Walnut Creek, Calif.-based BPM LLP, the Company's auditor since 2023, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has suffered recurring operating losses and negative cash flows from operating activities since inception and expects to continue to incur operating losses and negative cash flows in the future. These matters raise substantial doubt about its ability to continue as a going concern. As of September 30, 2024, Talphera had $21 million in total assets, $11.4 million in total liabilities, and $9.6 million in total stockholders' equity. TARGET HOSPITALITY: S&P Withdraws 'B' Issuer Credit Rating ---------------------------------------------------------- S&P Global Ratings withdrew all its ratings on Target Hospitality Corp., including the 'B' issuer credit rating and 'B+' issue level rating, at the issuer's request. The company requested the withdrawal following the recent redemption of all its outstanding senior secured notes. At the time of withdrawal, S&P's outlook on Target was stable. THERMOPRO INC: Gary Murphey Named Subchapter V Trustee ------------------------------------------------------ The U.S. Trustee for Region 21 appointed Gary Murphey of Resurgence Financial Services, LLC as Subchapter V trustee for ThermoPro Inc. Mr. Murphey 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. Murphey declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Gary Murphey Resurgence Financial Services, LLC 3330 Cumberland Blvd., Suite 500 Atlanta, GA 30330 Tel: (770) 933-6855 Email: Murphey@RFSLimited.com About ThermoPro Inc. ThermoPro Inc., doing business as Prize Wheels R Fun, Games People Play, and The Golf Target, is a plastics thermoforming manufacturer based in the metro Atlanta, Georgia area, specializing in heavy gauge vacuum forming, pressure forming, drape forming, plastic fabrication, and secondary assembly. It serves a wide range of industries, including office products, medical devices, recreational vehicles, kiosks, and more. Additionally, ThermoPro offers design and development services to help clients create high-quality, engineered plastic parts. ThermoPro sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-53612) on April 1, 2025. In its petition, the Debtor reported total assets of $2,127,245 and total liabilities of $1,634,653. Judge Barbara Ellis-Monro handles the case. The Debtor is represented by Michael Pugh, Esq., at Thompson O'Brien Kappler & Nasuti, P.C. TONA DEVELOPMENT: Case Summary & 11 Unsecured Creditors ------------------------------------------------------- Debtor: Tona Development Group, LLC 54 Hudson Street Suite 300 Freehold, NJ 07728 Business Description: The Debtor is a family-owned small business based in Freehold, New Jersey, specializing in construction management services primarily in New Jersey and New York. Chapter 11 Petition Date: May 2, 2025 Court: United States Bankruptcy Court District of New Jersey Case No.: 25-14662 Judge: Hon. Mark Edward Hall Debtor's Counsel: Albert A. Ciardi, III, Esq. CIARDI CIARDI & ASTIN 1905 Spruce Street Philadelphia, PA 19103 Tel: (215) 557-3550 Fax: (215) 557-3551 E-mail: aciardi@ciardilaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Domenick Tonacchio as authorized signatory. A copy of the Debtor's list of 11 unsecured creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/A7RMENQ/Tona_Development_Group_LLC__njbke-25-14662__0001.2.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/AVKSD4Y/Tona_Development_Group_LLC__njbke-25-14662__0001.0.pdf?mcid=tGE4TAMA TOUCAN TOPCO: S&P Assigns 'B-' Issuer Credit Rating, Outlook Stable ------------------------------------------------------------------- S&P Global Ratings assigned its 'B-' issuer credit rating to Toucan TopCo Ltd. (Toucan). Rigid plastic packaging manufacturer Intelligent Packaging Sub L.P. (IPL) has announced the merger with European-based transport packaging producer Schoeller Allibert (SA) and will operate under a newly incorporated holding company, Toucan TopCo Ltd. (Toucan). The company plans to issue a five-year $140 million asset-based lending (ABL) revolver (undrawn at close, not rated), a EUR25 million five-year cash flow revolver (undrawn at close, not rated), and $1.275 billion in senior secured notes due 2030, of which $300 million will be equivalent in euros. The debt will be issued under Toucan FinCo Ltd. and will be used to refinance the existing IPL and SA capital structure, as well as to fund a $200 million equalization payment to IPL shareholders as part of the agreement. S&P assigned its 'B-' issue-level and '4' recovery ratings to Toucan FinCo's senior secured notes. SA manufactures resin-based reusable products with typical lifetimes of five to up to 15 or more years before being returned to the manufacturer and recycled. Its primary products support bulk shipping and handling needs within the industrial (33% of European sales), food and beverage (23%), system integrator (8%), and pharma, cosmetics, and chemicals end markets (6%). The company also sells to returnable transport packaging (RTP) pooling providers and has a rental segment in Europe and the U.S. for companies looking to simplify their supply chain or achieve sustainability goals. S&P said, "The stable outlook reflects our expectation that Toucan will successfully integrate SA and reach its projected synergies over the next 18 months from close, leading to expanded EBITDA margins and higher profitability. It also reflects our expectation for limited volume recovery in 2025 given ongoing economic headwinds, leading to flat organic revenue growth in 2025. We expect pro forma S&P Global Ratings-adjusted leverage improving to between 6.5x and 7x in 2026. "Our rating on Toucan reflects the additional scale and projected synergies of the combined entities, offset by recent operational pressures within legacy SA." The merger will improve Toucan scale and geographic diversity and expand its presence in the RTP market, though the product portfolio has seen softer volumes than other end markets recently, particularly within the agriculture and environmental segments. Toucan's value creation strategy as a combined entity is centered around improving SA's commercial positioning. Toucan's projected synergies fall into three main categories: procurement, SG&A, and manufacturing footprint. The company anticipates this will drive growth with improved resin-based pricing and terms through centralize procurement efforts, and leverage ordering volumes with resin suppliers, which the company expects will generate the bulk of the $27 million projected procurement synergies over the next 18 months from the merger close. S&P said, "We believe this should be achievable and note the track record legacy IPL has realized over the past year through resin procurement. Toucan's management estimates significant synergistic opportunities within SG&A, with a focus on reorganization and right sizing the SA team. It forecasts $27 million in total synergies within SG&A, which it expects to achieve within 12 months of close. We believe there is significant integration and execution risk, particularly within SG&A as the companies combine, and as a result are forecasting lower synergies over a longer period. The company is also forecasting $6 million in synergies coming from footprint rationalization." Legacy SA's operating performance has been soft in recent years, with revenue declining each year to $593 million in 2024 from $721 million in 2021. Company-adjusted EBITDA also fell to $58 million in 2024 from $81 million in 2021, with EBITDA margin coming in just under 10% in 2024. S&P said, "IPL is forecasting an ability to improve SA's margins to the mid-teens percent area over the next three to four fiscal years, however we believe there is significant execution risk to achieving this. The European division of legacy IPL has naturally generated lower margins than its North American operations given different market factors, and we expect it will continue to do so going forward. Additionally, SA's customers typically dedicate a portion of their capital expenditure (capex) budgets for its products, which we believe could cause some volatility in weaker economic environments." S&P Said, "The proposed capital structure will result in elevated leverage metrics, though we are forecasting deleveraging in the outer years. We expect leverage will increase under the capital structure on a pro forma basis in 2025 to 7.4x from 5.7x in 2024 because of the additional debt. We expect to see some further deleveraging to 6.6x in 2026 as a result of improved margins and realization of synergies. We believe there is some risk associated with the total level and timing of the projected synergies, along with significant integration risk that could lead to cost overruns. As a result, we have adjusted our forecast to reflect our expectation for potential cost and top line headwinds, particularly given some of the performance issues SA has faced over the past several years. In recent years, legacy IPL has deleveraged following the buyout and sponsor dividend in 2020, focusing on operational initiatives to drive margin growth. However, it remains susceptible to swings in margins and overall earnings given the high level of exposure to resin costs, which we expect will continue despite the additional scale. We expect liquidity will remain adequate, with $117 million in pro forma cash on Dec 31, 2024, and an undrawn ABL and European cash flow revolver available. "The stable outlook reflects our expectation that Toucan will successfully integrate SA and reach its projected synergies, leading to expanded EBITDA margins and higher profitability. It also reflects our expectation for limited volume recovery in 2025 given ongoing economic headwinds, leading to flat organic revenue growth in 2025. We expect pro forma S&P Global Ratings-adjusted leverage will improve to between 6.5x and 7x in 2026. "We could lower our rating on Toucan if operating performance "deteriorates or cost overruns related to the integration of SA pressure cash flow and tighten liquidity. We could also lower our rating if credit metrics deteriorate such that its capital structure becomes unsustainable or interest coverage approaches 1.5x. "We could upgrade Toucan if it firmly reduces leverage below 6.5x on a sustained basis and we believe its financial sponsor will maintain financial policies that support maintenance of improved credit metrics." TRIPLETT FUNERAL: Court OKs Limited Use of Cash Collateral ---------------------------------------------------------- Triplett Funeral Homes, LLC obtained an interim order from the U.S. Bankruptcy Court for the Eastern District of Missouri, Northern Division authorizing limited use of cash collateral. The interim order temporarily allowed Edwin Wilson, the receiver appointed by the Circuit Court of Clark County, Missouri, to continue making necessary payments on behalf of the company, consistent with the previous orders from the Circuit Court. The order also temporarily modified the automatic stay under Section 362 of the Bankruptcy Code to allow the payments. The bankruptcy court's interim order does not determine adequate protection for creditors or affect their right to seek further relief. The next hearing is scheduled for May 15. About Triplett Funeral Homes Triplett Funeral Homes, LLC, a company in Kahoka, Mo., is a locally owned and operated funeral service provider dedicated to offering compassionate services and personalized care to families during their time of need. Triplett Funeral Homes sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Miss. Case No. 25-20049) on March 27, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. The Debtor is represented by Fredrich J. Cruse, Esq., at Cruse Chaney-Faughn. TWENTY EIGHT: Gets OK to Use Cash Collateral Until May 31 --------------------------------------------------------- Twenty Eight Hundred Lafayette, Inc. received another extension from the U.S. Bankruptcy Court for the District of New Hampshire to use its secured creditors' cash collateral. The order signed by Judge Kimberly Bacher authorized the company's interim use of up to $233,377.49 in cash collateral for the period from May 1 to 31 to pay the expenses in accordance with its budget. Secured creditors including Enterprise Bank & Trust, Rockingham Economic Development Corp. and the U.S. Small Business Administration were granted replacement liens on property held as collateral. Twenty Eight Hundred Lafayette was ordered to make monthly payments of $3,156.11 to SBA, $3,232.12 to Enterprise Bank & Trust, and $1,509.26 to Rockingham. The next hearing is scheduled for May 28. About Twenty Eight Hundred Lafayette Established in 1992, Twenty Eight Hundred Lafayette, Inc. is a seafood restaurant with locations in Epping, Portsmouth, Salem, and North Hampton (seasonal) in New Hampshire. It conducts business under the names The Beach Plum 2 Portsmouth and The Beach Plum 3 Epping. Twenty Eight Hundred Lafayette filed Chapter 11 petition (Bankr. D.N.H. Case No. 25-10046) on January 27, 2025. In its petition, the Debtor reported assets between $50,000 and $100,000 and liabilities between $1 million and $10 million. Judge Kimberly Bacher handles the case. Eleanor Wm. Dahar, Esq., at Victor W. Dahar Professional Association is the Debtor's legal counsel. Enterprise Bank & Trust, as secured creditor, is represented by: Patricia J. Ballard, Esq. Preti, Flaherty, Beliveau & Pachios, PLLP P.O. Box 1318 Concord, NH 03302-1318 (603) 410-1500 pballard@preti.com UNIVISION COMMUNICATIONS: Moody's Lowers CFR & Secured Notes to B2 ------------------------------------------------------------------ Moody's Ratings downgraded Univision Communications Inc.'s (d/b/a "TelevisaUnivision," "TU" or the "company") corporate family rating to B2 from B1 and probability of default rating to B3-PD from B2-PD. Concurrently, Moody's downgraded the company's senior secured bank credit facilities and senior secured notes to B2 from B1. The outlook was changed to negative from stable. RATINGS RATIONALE The ratings downgrade reflects governance risks associated with TelevisaUnivision's elevated financial leverage stemming from lower EBITDA and higher gross debt levels relative to Moody's prior expectations coupled with Moody's outlook that deleveraging will be slow. At fiscal year end 2024, total debt to EBITDA was 6.4x, not much different than 6.5x at the end of 2023 (leverage metrics are Moody's adjusted on a two-year average EBITDA basis). Given Moody's expectations for slowing economic growth in the US in 2025 and Moody's recent downward revision for Mexico's GDP growth to 0.7% from 1.3% previously, Moody's expects leverage will remain near the 6.5x range over the rating horizon. Moody's forecasts considers TU's planned cost savings as well as economic uncertainty about US trade policy, which will likely prompt budget reductions from advertisers, especially in verticals that are more consumer-sensitive. While financial leverage is high for the rating, TU's significant scale, strong leadership presence in the Spanish-language media sector and growth potential permits the credit profile to historically tolerate a higher leverage compared to peers. Leverage has steadily declined from roughly 8x in 2022 following the purchase of Grupo Televisa, S.A.B. de C.V.'s ("Televisa") content assets. However, given TU's top-line core revenue pressures and free cash flow (FCF) that is only 2%-3% of total debt (Moody's adjusted), deleveraging has slowed and the ability to de-lever organically going forward will be challenged, especially in a lower growth macroeconomic environment. TU's new management team is in the process of implementing several strategic priorities to reorganize functions across the US and Mexico, better integrate its global operations, shift to a content-centric platform-agnostic approach and enhance its data-driven solutions to act as an access point for advertisers to the Hispanic consumer. Successful and timely execution could lead to higher EBITDA and stronger FCF for deleveraging. Nonetheless, the downgrade also reflects Moody's medium to long-term expectation for continued pressure on subscription and licensing (includes retransmission) revenue growth due to recent loss of a distribution partner and a lower rate contract renewal with another partner in Mexico combined with the increasing pace of subscriber losses arising from secular cord-cutting trends in the US. It also reflects the ongoing weakness in TU's linear TV core advertising growth, particularly in the US. These trends will continue to weigh on the company's future operating performance leading to EBITDA declines (on a two-year average basis) and debt protection measures that are consistent with B2 CFR peers. The negative outlook reflects the structural and secular pressures in TU's business and Moody's views that the company's credit metrics are weakly positioned within the B2 CFR. While 2024's political advertising revenue and profitability fell short of expectations, cost cutting measures will help to minimize future EBITDA pressures and Moody's expects leverage will stay in the mid 6x area over the rating horizon despite the absence of political revenue this year and Moody's forecasts for declines in core advertising and retransmission revenue. Given continuing pressures in the TV broadcast industry against a backdrop of economic uncertainty, which can exacerbate operating challenges and exert even more pressure on core revenue, lower-than-expected EBITDA could lead to downside risk to Moody's leverage forecasts, which is also factored in the negative outlook. TelevisaUnivision's B2 CFR reflects the company's material scale, strong audience shares and position as the leading Spanish-language content and diversified media company. TU's diversification across multiple media platforms (i.e., broadcast, cable, digital, streaming and audio), each with dissimilar demand drivers, offers a unique value proposition compared to its broadcast and media peers, enabling TU to capitalize on its reach throughout Spanish-speaking populations in both Mexico and the US, and align its programming to its audience and advertisers. TU's streaming platform, ViX, launched in 2022, offers free ad-supported video-on-demand (AVOD), limited AVOD and subscription video-on-demand (SVOD) tiers. While ViX continues to grow at above market rates with high sell-throughs, premium pricing and produces positive EBITDA, the contribution to overall EBITDA is still relatively small. The CFR is constrained by TelevisaUnivision's exposure to advertising revenue (roughly 60% of revenue), which is inherently cyclical, as well as the ongoing structural decline in US linear TV core advertising as non-political TV ad budgets continue to erode in favor of digital media. Additionally, TU's retransmission revenue growth will be challenged over the next several years because the rate of traditional subscriber losses is expected to outpace annual escalators in non-contract renewal years, offsetting the material fee increases occurring at the time of contract renewal. TU's exposure to the Hispanic population's demographic trends is somewhat of an offsetting factor that supports the credit profile. Though the Hispanic audience is one of the fastest growing populations within the US, historically it has not received its proportionate share of advertising spend. With access to the US, the number one Spanish speaking population by GDP, and Mexico, the number one Spanish speaking country by population, TU can capitalize on its strong audience share (around 60%). This should position the company to grow its ad market share and potentially mitigate weakness in US linear TV core ad demand over the long-term if TU can successfully extract more value from its US programming through enhanced monetization strategies and diversified sales approaches similar to its achievements in Mexico. Over the next 12-18 months, Moody's expects TU will maintain good liquidity. At year-end 2024, cash and cash equivalents were $330 million, FCF (defined by Moody's as cash flow from operations less capex less dividends) totaled $258 million, and the two-tranche $610 million revolving credit facility (RCF) was undrawn. The company plans to terminate the $88 million tranche when it matures on April 30, 2025 while the $522 million tranche maturing June 2027 will remain in place. Moody's expects that TU will generate positive FCF of around $200 million in 2025 driven by cost savings, ViX profitability and continued capex normalization. The RCF is subject to a first-lien net leverage maintenance financial covenant set at 7.1x, stepping down to 6.75x at December 31, 2025. Moody's expects sufficient headroom relative to the covenant over the coming year. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The rating outlook could be stabilized if TU reduced leverage to the 6x area and Moody's expects leverage to decline further to below 6x (leverage metrics are Moody's adjusted on a two-year average EBITDA basis). Though unlikely near-term, ratings could be upgraded if TU sustained leverage below 5x and FCF to debt above 4% (Moody's adjusted on a two-year average FCF basis). TU would also need to: (i) exhibit organic revenue growth and stable-to-improving EBITDA margins on a two-year average basis; (ii) adhere to conservative financial policies; and (iii) maintain at least good liquidity to be considered for an upgrade. Ratings could be downgraded if Moody's expects that leverage will be sustained above 6x as a result of weak operating performance, more aggressive financial policies or inability to reduce debt levels. A downgrade could also arise if FCF to debt was sustained below 1% (Moody's adjusted on a two-year average FCF basis) or TU experienced deterioration in liquidity or covenant compliance weakness. Headquartered in N.Y., New York, Univision Communications Inc., is a leading Spanish-language multimedia conglomerate with operations in the US (64% of total revenue) and Mexico (36%) serving a global audience offering original in-house content production, the largest owned Spanish-language content library, entertainment, news and sports. TU is privately owned with major investors including Grupo Televisa, ForgeLight, Searchlight Capital, Liberty Global and SoftBank. Revenue totaled around $5.1 billion for the fiscal year ended December 30, 2024. The principal methodology used in these ratings was Media published in June 2021. VAN DER VALK: Seeks Subchapter V Bankruptcy in Florida ------------------------------------------------------ On April 30, 2025, Van Der Valk Construction LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Middle District of Florida. According to court filing, the Debtor reports $1,062,331 in debt owed to 50 and 99 creditors. The petition states funds will be available to unsecured creditors. About Van Der Valk Construction LLC Van Der Valk Construction LLC is a general contracting company that specializes in residential construction, including custom and model homes. Based in Hernando, Florida, the Company also offers real estate and property management services, particularly for short-term rentals in Citrus County. Van Der Valk Construction LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-01382) on April 30, 2025. In its petition, the Debtor reports . Honorable Bankruptcy Judge Jacob A. Brown handles the case. The Debtor is represented by Richard A. Perry, Esq. at RICHARD A. PERRY P.A. VENUS CONCEPT: Orca Capital Holds 8% Equity Stake ------------------------------------------------- Orca Capital AG, disclosed in a Schedule 13G filed with the U.S. Securities and Exchange Commission that as of April 9, 2025, it beneficially owns 83,429 shares of Venus Concept Inc.'s common stock, representing 8.0% of the class of Venus Concept Inc.'s Common Stock, based on a total of 1,037,703 shares outstanding immediately after the completion of the Company's registered offering as described in the Company's Prospectus Supplement filed on April 10, 2025. Orca Capital AG may be reached through: Thomas Konig, Director Sperlring 2, 85276 Hettenshausen, Germany 498441 78644 14 A full-text copy of Orca Capital's SEC report is available at: https://tinyurl.com/4mecpmxt About Venus Concept Toronto, Ontario-based Venus Concept Inc. is an innovative global medical technology company that develops, commercializes, and delivers minimally invasive and non-invasive medical aesthetic and hair restoration technologies and related services. The Company's systems have been designed on cost-effective, proprietary, and flexible platforms that enable the Company to expand beyond the aesthetic industry's traditional markets of dermatology and plastic surgery, and into non-traditional markets, including family medicine and general practitioners and aesthetic medical spas. Mississauga, Canada-based MNP LLP, the Company's auditor since 2019, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has reported recurring net losses and negative cash flows from operations, which raises substantial doubt about its ability to continue as a going concern. As of September 30, 2024, Venus Concept had $72.28 million in total assets, $61.65 million in total liabilities, $520,000 in non-controlling interests, and $10.11 million in total stockholders' equity. VIRIDOS INC: Hires Stretto as Claims and Noticing Agent ------------------------------------------------------- Viridos Inc. seeks approval from the U.S. Bankruptcy Court for the District of Delaware to hire Stretto, Inc. as the claims and noticing agent. Stretto will oversee the distribution of notices and will assist in the maintenance, processing, and docketing of proofs of claim filed in the Chapter 11 cases of the Debtors. The firm will seek reimbursement for expenses incurred. Prior to the Petition Date, the Debtors provided Stretto an advance in the amount of $10,000. Sheryl Betance, a senior managing director at Stretto, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Sheryl Betance Stretto Inc. 410 Exchange, Ste. 100 Irvine, CA 92602 Telephone: (714) 716-1872 Email: sheryl.betance@stretto.com About Viridos Inc. Viridos Inc. (formerly known as Synthetic Genomics, Inc.) develops a scalable microalgae platform to produce low-carbon intensity biofuels for heavy transportation sectors such as aviation and commercial trucking. Backed initially by ExxonMobil and holding over 100 patents, it remains pre-revenue but projects oil yields up to 20 times those of existing crops and an associated 73-88 percent reduction in carbon emissions. Viridos Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10697) on April 14, 2025. In its petition, the Debtor reported estimated assets between $10 million and $50 million and estimated liabilities between $1 million and $10 million. The Honorable Bankruptcy Judge Craig T. Goldblatt handles the case. The Debtor is represented by Womble Bond Dickerson (US) LLP. Rock Creek Advisors, LLC is the Debtor's financial consultant. Stretto is the Debtor's claims and noticing agent. WALKER AREA: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Walker Area Community Center, Inc. 105 Tower Avenue East Walker, MN 56484 Business Description: Walker Area Community Center, Inc. operates a community facility in Walker, Minnesota, located at 105 Tower Ave E. The light industrial property includes a gym, exercise space, seasonal ice arena, locker rooms, meeting rooms, and offices. It supports activities for the Boys & Girls Club, Rotary meetings, hockey and curling leagues, as well as year-round basketball, pickleball, and fitness programs. As of Nov. 18, 2024, the property was appraised at $1.25 million based on comparable sales. Chapter 11 Petition Date: May 2, 2025 Court: United States Bankruptcy Court District of Minnesota Case No.: 25-50310 Judge: Hon. William J Fisher Debtor's Counsel: Steven R. Kinsella, Esq. FREDRICKSON & BYRON, P.A. 60 South 6th Street, Suite 1500 Minneapolis, MN 55402 Tel: 612-492-7000 E-mail: skinsella@fredlaw.com Total Assets: $1,409,049 Total Liabilities: $1,956,152 The petition was signed by Robert I. Burns Jr. as chief restructuring officer. The petition filed by the Debtor states there are no unsecured creditors. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/R6X3ZDY/Walker_Area_Community_Center_Inc__mnbke-25-50310__0001.0.pdf?mcid=tGE4TAMA WELCH & WELCH: Seeks to Sell Farm Equipment ------------------------------------------- Welch & Welch Planting Company Co., LLC seeks permission from the U.S. Bankruptcy Court for the Western District of Tennessee, Easter Division, to sell Assets, free and clear of liens, interests, and encumbrances. The Debtor is engaged in the farming and custom farming business and farm equipment is one of the Debtor's primary assets. Nutrien Ag Solutions, Inc. is the holds a first security interest in all equipment belonging to the Debtor. All proceeds of the sale will be paid to Nutrien Ag Solutions, Inc not to exceed the claim amount plus accrued interest on date of sale. Accurate and reasonable notice was given to all creditors and parties in interest by Debtor. The Debtor has also reserved the right to publish notice of the sale of the farm equipment. About Welch & Welch Planting Co., LLC Welch & Welch Planting Co. LLC is an agricultural company specializing in crop production, utilizing advanced machinery for planting, soil preparation, irrigation, and harvesting. Welch & Welch Planting Co. LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tenn. Case No. 25-10356 on March 13, 2025. In its petition, the Debtor reports total assets of $1,323,500 and total liabilities of $1,055,264. The Debtor is represented by Tom Strawn, Esq., at The Law Office of Tom Strawn. WHIRLPOOL CORP: Moody's Assigns Ba1 CFR, Outlook Remains Negative ----------------------------------------------------------------- Moody's Ratings downgraded Whirlpool Corporation's ("Whirlpool") senior unsecured ratings to Ba1 from Baa3. Concurrently, Moody's assigned Whirlpool a Ba1 Corporate Family Rating, a Ba1-PD Probability of Default rating and a SGL-3 speculative grade liquidity rating. Moody's also downgraded the backed senior unsecured notes ratings for its guaranteed subsidiary borrowers, Whirlpool EMEA Finance S.a r.l. (WEF) and Whirlpool Finance Luxembourg S.a.r.l (WFL) to Ba1 from Baa3. In addition, Moody's downgraded Whirlpool Corporation's commercial paper ratings and its guaranteed subsidiary borrower Whirlpool Europe B.V.'s backed commercial paper rating to Not Prime from Prime-3. The outlook for Whirlpool, WEF and WFL remains negative. The ratings downgrade reflects the persistent operating challenges that Whirlpool continues to face driven by weak consumer demand and a slow US housing market. Whirlpool has been slow to improve its operating profit and margins in an industry with current significant promotional activities that detracts from margin recovery. Although the company benefits from having domestic manufacturing of 80% of products sold in the US, downside risks remain that a prolonged weak environment from tariffs could put additional pressure on consumers and delay recovery. The downgrade also reflects Whirlpool's continued high financial leverage and negative free cash flow as its high dividend continues to consume cash that could otherwise be utilized to reduce high financial leverage. The company's ability to meaningfully reduce within the next few years its very high 6.4x debt to EBITDA leverage as of March 31, 2025 will be difficult in the current challenging appliance industry conditions and with the current dividend. Leverage is elevated due to the October 2022 InSinkerator acquisition, share repurchases and the slowdown in the appliance market. Margin improvement has thus far been muted because consumers in the US remain cautious and home sales remain weak due to high interest rates. These factors are leading to fewer remodeling projects that require appliances,low projected earnings growth and limited free cash flow that is constrained by a very high dividend. Moody's views the company's large dividend as a governance risk that is a key driver of the rating action. RATINGS RATIONALE Whirlpool's Ba1 CFR reflects its significant scale, strong market position in North America and Latin American, well known brand names, and good geographic diversity. The company also benefits from a strong track record of product innovation and execution of initiatives focused on margin expansion through a range of global economic environments. The ratings are constrained by the highly cyclical nature of the consumer appliance business and variability in raw material, labor, energy, and transportation costs that can result in sharply lower earnings and cash flow when demand softens. The cyclicality is only partially dampened by approximately 65% of sales being related to more resilient appliance replacement demand. The rating also reflects the challenges Whirlpool faces to reduce its current very high leverage. The company's stated net debt-to-EBITDA leverage target of 2.0x (4.9x as of March 2025 per company's calculation) indicates a willingness to reduce leverage over time, although the company is currently very far from this goal as it continues to prioritize a large dividend that could otherwise be utilized to repay debt. Moody's anticipates flat organic revenue growth for Whirlpool over the next 12-18 months. Operating earnings should improve modestly due to cost-saving initiatives and a higher EBIT margin after divesting its lower-margin European business in April 2024. However, the promotional environment for home appliances will likely continue through 2025, restraining pricing actions and the extent of margin improvement. Moody's expects that Whirlpool will have a competitive advantage if US tariffs on imports remain in place because approximately 80% of what the the company sells in the US is manufactured in the US. This should narrow the cost gap with foreign manufacturers and provide an opportunity to gain market share. Moody's expects the EBIT margin to rise to around 6.0%-6.25% over the next 12-18 months despite expected supply chain cost increases due to reliance on some imported components. Moody's projects Moody's adjusted debt-to-EBITDA will decline to around 4.5x by the end of 2026 through EBITDA improvement and some debt repayment including from the planned sell down of the company's stake in the India business. Whirlpool benefits from its strong market position, brand recognition, product innovation, and geographic diversity. Whirlpool's adequate liquidity is reflected in the SGL-3 speculative grade liquidity rating with reliance on the revolver to finance significant upcoming maturities if the company does not proactively refinance. Sources of liquidity consist of a $3.5 billion revolver that expires in May 2027 of which approximately $2.9 billion was available as of March 31, 2025 after taking into account the $593 million of commercial paper outstanding. The company also has approximately $186 million of committed credit facilities in Brazil and India, and $1.0 billion of cash on hand as of March 31, 2025. However, approximately 80% of this cash was held by subsidiaries in Brazil and India. These sources of liquidity provide the company with the ability to address upcoming maturities that consist of $350 million of notes due in May 2025 and a $1.5 billion term loan due in October 2025. The company has adequate cushion within the revolver's quarterly EBITDA to interest expense covenant requirement of 3.0x with the ratio at 3.7x as of March 31, 2025. The company has additional levers to potentially increase free cash flow and accelerate debt repayment as it currently pays a large annual dividend to shareholders of approximately $384 million per year. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The negative outlook reflects continued operating risks such as weaker demand conditions or a slower appliance market recovery that could limit the level of remodeling and the company's ability to quickly restore strong and consistently positive free cash flow and reduce financial leverage. Although unlikely in the current environment, Whirlpool's ratings could be upgraded if the company generates consistent organic revenue growth while improving the operating margin and generating consistent and materially higher free cash flow. Additionally, the company would need to sustain Moody's adjusted debt to EBTDA below 4.0x and retained cash flow to net debt above 12.5%. Ratings could be downgraded if Whirlpool's market share declines, earnings do not improve, or factors such as cost increases or pricing pressure weaken the operating margin. Continued weak or negative free cash flow, a deterioration in liquidity, or an inability to make steady progress toward and ultimately sustain debt-to-EBITDA below 4.5x could also lead to a downgrade. LIST OF AFFECTED RATINGS Issuer: Whirlpool Corporation Withdrawals: LT Issuer Rating, Withdrawn Assignments: LT Corporate Family Rating, Assigned Ba1 Probability of Default Rating, Assigned Ba1-PD Speculative Grade Liquidity Rating, Assigned SGL-3 Downgrades: Commercial Paper, Downgraded to Not Prime from P-3 Senior Unsecured, Downgraded to Ba1 from Baa3 Outlook Actions: Outlook, Remains Negative Issuer: Whirlpool EMEA Finance S.a r.l. Downgrades: Backed Senior Unsecured, Downgraded to Ba1 from Baa3 Outlook Actions: Outlook, Remains Negative Issuer: Whirlpool Europe B.V. Downgrades: Backed Commercial Paper, Downgraded to Not Prime from P-3 Issuer: Whirlpool Finance Luxembourg S.a.r.l Downgrades: Backed Senior Unsecured, Downgraded to Ba1 from Baa3 Outlook Actions: Outlook, Remains Negative The principal methodology used in these ratings was Consumer Durables published in September 2021. Headquartered in Benton Harbor, Michigan, Whirlpool Corporation is a publicly-traded company that manufactures and markets a full line of large home appliances and related products including laundry washers and dryers, refrigerators and freezers, dishwashers, cooking, and microwaves. Products are sold under various brands including Whirlpool, Maytag, KitchenAid, Indesit, Insinkerator and Jennair. Revenues were $15.7 billion for last 12 months ending March 31, 2025. WHIRLPOOL CORP: S&P Downgrades ICR to 'BB+', Outlook Stable ----------------------------------------------------------- S&P Global Ratings lowered its long-term issuer credit rating on Whirlpool Corp. to 'BB+' from 'BBB-' and its short-term issuer credit and commercial paper ratings to 'B' from 'A-3'. S&P said, "At the same time, we lowered our issue-level rating on the company's unsecured notes to 'BB+' from 'BBB-' and assigned our '3' recovery rating, which indicates our expectation that lenders would receive meaningful recovery (30%-50%; rounded estimate: 50%) in the event of a payment default. "The stable outlook on Whirlpool reflects our forecast that S&P Global Ratings-adjusted leverage will improve to 4.5x at the end of 2025 and 4.3x at the end of 2026, from 5.2x as of Dec. 31, 2024. While we expect discretionary demand will remain depressed, we anticipate cost reduction initiatives, relatively stable replacement demand, and prioritization of debt reduction will lead to moderate credit ratio improvement. We expect the company will utilize all the proceeds from the Whirlpool India sale to reduce debt. "The rating action reflects our view that industry profits will remain subdued with little potential for a rebound in 2025. While first-quarter 2025 performance largely met our expectations, the company reported that the second quarter will be affected by substantial inventory overhang in the market, as its Asian competitors pulled forward imports ahead of tariffs. Along with this, the company affirmed its full year guidance, placing significant reliance on a second-half recovery; this implies North America MDA segment company-reported EBIT margin improvement of about 150 to 200 basis points (bps) compared to the second half of 2024. Additionally, the company estimates about $400 million of direct tariff headwinds for the rest of 2025, mainly related to components imported from China, and expects to fully offset this, with two-thirds of the relief from additional pricing with the remainder from supply chain actions. While we anticipate Whirlpool's U.S. business will likely be a net beneficiary relative to rivals with respect to tariffs, we believe the large import inventory overhang will result in near-term profit weakness, and industry volumes could tumble due to higher prices and potentially recessionary conditions. "We lowered our base case to reflect the expected weaker second-quarter performance and our view that margin recovery in the second half of 2025 will be subdued, with additional tariff headwinds that the company will not be able to fully offset through pricing. Our view is further solidified by recent earnings revisions and guidance pullbacks from several durables and home goods manufacturers (as well as more stable nondurable issuers), citing increased uncertainty and diminishing U.S. consumer purchasing power. This includes Whirlpool Corp.'s closest peer, AB Electrolux, which recently lowered its outlook for North America from neutral to neutral-to-negative. "We expect North American MDA segment discretionary demand will remain weak. Whirlpool's business in this region continued to be negatively affected by an unfavorable domestic sales mix weighted toward lower-margin replacement demand (up to 65% in first quarter of 2025 from about 55% five years ago) instead of higher-margin discretionary demand, which includes sales to builders and other discretionary purchases (including upgrades related to the sale of existing homes and renovation projects). Our base case assumes Whirlpool's top line will be supported by steady replacement demand, although we note the risk that volumes could weaken if end consumer demand and housing market conditions deteriorate. Further, management is currently quantifying the financial impact of the tornado damage in the company's free-standing range facility based in Tulsa, Okla., While this impact cannot be estimated at this time, we understand that there was a pause in production in March/April that could weigh on short-term cash flow and profit measures. "That said, we continue to believe that Whirlpool is better positioned than its peers with less domestic production, who will likely face greater hardship from the imposition of new tariffs, potentially providing Whirlpool the opportunity to pick up volumes and grow market share in the U.S., while closing the cost gap with its Asia-based competitors, including but not limited to LG, Samsung, Midea, and Haier. "Whirlpool's financial policy actions have not been supportive of maintaining investment-grade ratings. We previously believed Whirlpool might take other creditor-friendly actions beyond what had already been announced, to retain its investment-grade rating, including a dividend cut, especially if weak macroeconomic conditions persisted. This could have improved credit metrics and reduced the company's need for a quick turnaround of operating conditions to maintain its rating. Our base case now assumes Whirlpool will maintain its dividend policy and issue unsecured notes in the upcoming quarters to term-out $1.1 to $1.2 billion of its $1.85 billion 2025 debt maturities. That said, given weaker conditions, we do not expect a dividend cut will lead us to consider a higher rating over the next year. While we expect the company to sell down its stake in the India business and apply proceeds to debt reduction, we had already reflected this benefit in our previous base case." Deleveraging remains a priority; however, the timing of when it would be restored toward target levels remains uncertain. Whirlpool has a publicly stated 2x company-reported net leverage financial policy target, but its capital allocation decisions, combined with weaker demand for its products from a challenging macroeconomic backdrop, have resulted in the metric deteriorating to 5.1x at the end of the first quarter of 2025 (this translates to 5.6x on an S&P Global Ratings-adjusted basis). The company remains committed to repaying $700 million of debt in 2025, supported by a mix of free operating cash flow (FOCF) and proceeds from the sell down of its stake in Whirlpool India. S&P said, "Our revised base case forecasts the company will generate break-even levels of reported discretionary cash flow (FOCF less about $400 million in dividends) in 2025 and 2026. This, combined with the short-term nature of its upcoming debt maturities and uncertainty on the timing of its Whirlpool India sale, means the company will need to rely on its commercial paper program and $3.5 billion revolving credit facility to fund the cash deficits. "The stable outlook on Whirlpool reflects our forecast that adjusted leverage will improve to 4.5x at end of 2025 and 4.3x at end of 2026, from 5.2x as of Dec. 31, 2024. While we expect discretionary demand will remain depressed, we anticipate cost reduction initiatives, relatively stable replacement demand, and prioritization of debt reduction will lead to moderate credit ratio improvement. We expect the company will utilize all the proceeds from the Whirlpool India sale to reduce debt." S&P could lower its ratings if Whirlpool's operating performance falls short of its expectations, resulting in adjusted leverage approaching the high-4x area, and FOCF is weaker than projected. This could be due to: -- A decline in industry demand for large appliances caused by accelerating inflation, lower economic activity, or higher interest rates; -- Whirlpool loses share in its key North American or profitable Latin American markets, potentially due to intense competition from overseas rivals; -- An inability to offset a major portion of expected tariff headwinds with pricing and sourcing actions; -- Delays or the inability to deliver on strategic cost reduction initiatives; or -- The company exhibits more aggressive financial policies. Although unlikely in the next 12 months, S&P could raise its ratings if it projects that Whirlpool will reduce and sustain adjusted leverage below 4x, which could occur if: -- The company grows market share since it will be subject to lower tariffs than rivals, and by introducing new products; -- Housing activity and appliance demand in its key North American market rebounds; -- Whirlpool achieves efficiency gains from simplifying the business following the India, European, and MENA divestitures and realizing planned incremental cost takeouts; and -- The company organically grows its higher-margin SDA global business. WHITESTAR DISTRIBUTORS: Case Summary & Two Unsecured Creditors -------------------------------------------------------------- Debtor: Whitestar Distributors, Inc. 3223 Forest Lane Garland, TX 75042 Chapter 11 Petition Date: May 2, 2025 Court: United States Bankruptcy Court Northern District of Texas Case No.: 25-41573 Judge: Hon. Edward L Morris Debtor's Counsel: Joyce W. Lindauer, Esq. JOYCE W. LINDAUER ATTORNEY, PLLC 1412 Main St. Suite 500 Dallas TX 75202 Tel: (972) 503-4033 E-mail: joyce@joycelindauer.com Estimated Assets: $50,000 to $100,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Mohammad Barmawi as interim general manager. A copy of the Debtor's list of two unsecured creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/3I6A7SI/Whitestar_Distributors_Inc__txnbke-25-41573__0002.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/3OMQ7VA/Whitestar_Distributors_Inc__txnbke-25-41573__0001.0.pdf?mcid=tGE4TAMA WILLIAM H. ZIEGENBALQ: Gets Interim OK to Use Cash Collateral ------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of North Carolina issued its third interim order authorizing William H. Ziegenbalg, V. Agency, LLC to use cash collateral. The third interim order authorized the company to use cash collateral until May 26 to pay its operating expenses. The company's budget projects total operational expenses of $42,396.51 from April 26 to May 26. As protection, Lake Forest Bank & Trust Co. and other secured creditors were granted a replacement lien on and security interest in all assets of the company. In addition, Lake Forest Bank will receive payment of $5,571.51. The next hearing is scheduled for May 22. About William H. Ziegenbalg, V. Agency William H. Ziegenbalg, V. Agency LLC is an insurance agency specializing in the sale and management of Allstate Insurance products under an R3001 Agreement. William H. Ziegenbalg, V. Agency sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-00531) on February 13, 2025. In its petition, the Debtor reported total assets of $597,892 and total liabilities of $2,313,083. Richard P. Cook, Esq., at Richard P. Cook, PLLC is the Debtor's legal counsel. Lake Forest Bank & Trust Co., as secured creditor, is represented by: Brian D. Darer, Esq. Parker Poe Adams & Bernstein LLP 301 Fayetteville Street, Suite 1400 Raleigh, NC 27602 Telephone: (919) 828-0564 briandarer@parkerpoe.com WILSON CREEK: Committee Taps Huron Consulting as Financial Advisor ------------------------------------------------------------------ The official committee of unsecured creditors of Wilson Creek Energy, LLC and its affiliates seeks approval from the U.S. Bankruptcy Court for the Western District of Pennsylvania to employ Huron Consulting Services LLC as its financial advisor. The firm will render these services: a. review of financial disclosures required by the Court, including the Schedules of Assets and Liabilities, the Statement of Financial Affairs and Monthly Operating Reports; b. prepare the analyses required to assess any proposed Debtor-In-Possession financing or use of cash collateral; c. assess and monitor the Debtors' short term cash flow, liquidity, and operating results; d. review and analysis of the Debtors' proposed employee compensation and benefits programs; e. review and analysis of the Debtors' potential disposition or liquidation of both core and non-core assets; f. review of the Debtors' cost/benefit analysis with respect to the affirmation or rejection of various executory contracts and leases; g. assessment of the Debtors' identification of potential cost savings, including overhead and operating expense reductions and efficiency improvements; h. review and monitoring of the asset sale process, including, but not limited to, an assessment of the adequacy of the marketing process, completeness of any buyer lists, and review and quantifications of any bids; i. review and analysis of any tax issues associated with, but not limited to, claims/stock trading, preservation of net operating losses, refunds due to the Debtors, plans of reorganization, and asset sales; j. review and analysis of the claims reconciliation and estimation process; k. review and analysis of other financial information prepared by the Debtors, including, but not limited to, cash flow projections and budgets, business plans, cash receipts and disbursement analysis, asset and liability analysis, and the economic analysis of proposed transactions for which Court approval is sought; l. attendance at meetings and assistance in discussions with the Debtors, potential investors, banks, other secured lenders, the Committee and any other official committees organized in the Chapter 11 Cases, the U.S. Trustee, other parties in interest and professionals hired by the same, as requested; m. review and preparation of information and analysis necessary for the confirmation of a plan and related disclosure statement in the Chapter 11 Cases; n. evaluate and analyse avoidance actions, including fraudulent conveyances and preferential transfers; o. assist the prosecution of Committee responses/objections to the Debtors' motions, including attendance at depositions and provision of expert reports/testimony on case issues as required by the Committee; and p. provide any other general business consulting or such other assistance as the Committee or its counsel may deem necessary that are consistent with the role of a financial advisor and not duplicative of services provided by other professionals in this proceeding. The firm will be paid at these hourly rates: Managing Director $1,075 to $1,400 Senior Director $975 Director $825 Manager $675 Associate $550 Analyst $475 The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. In addition, the firm will seek reimbursement for its out-of-pocket expenses. Ryan Bouley, a partner at Huron Consulting Services LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Ryan Bouley Huron Consulting Services LLC 350 West Cedar Street, Suite 200 Pensacola, FL 32502 Tel: (850) 439-5839 Fax: (850) 439-5768 About Wilson Creek Energy, LLC Through their U.S.-based operating subsidiaries, Wilson Creek Energy, LLC and its affiliates supply premium-quality metallurgical coal, an essential ingredient in steel production. The Debtors' core business involves the mining, production and supply of premium-quality metallurgical coal, which is sold to both domestic and international steel and coke producers. The sources of the Debtors' metallurgical coal include (i) coal that the Debtors produce, and (ii) coal that the Debtors purchase from third parties, which they then enhance through value-added services such as storing, washing, blending, and loading, making the coal suitable for sale. The Debtors' headquarter is located in Friedens, Somerset County, Pa. All the Debtors' physical assets, mining operations and employees are based in Somerset County, Pa., and Garrett County, Md. Wilson Creek Energy and 10 affiliates filed Chapter 11 petitions (Bankr. W.D. Pa. Lead Case No. 25-70001) on January 6, 2025. At the time of the filing, Wilson Creek Energy reported $50 million to $100 million in assets and $10 million to $50 million in liabilities. Judge Jeffery A. Deller presides over the cases. The Debtors tapped Raines Feldman Littrell, LLP as bankruptcy counsel; Stikeman Elliott, LLP as Canadian insolvency counsel; BDO USA as financial advisor and consultant; and PricewaterhouseCoopers, LLP as Canadian information officer. Omni Agent Solutions, Inc. serves as the Debtors' claims and noticing agent. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. WOODMAN INVESTMENT: Case Summary & Three Unsecured Creditors ------------------------------------------------------------ Debtor: Woodman Investment Group LLC 6801 - 6817 Woodman Avenue Van Nuys, CA 91405 Business Description: Woodman Investment Group owns the retail shopping center at 6801–6817 Woodman Avenue in Van Nuys, California. The property is valued at $12 million, based on comparable sales in the area. Chapter 11 Petition Date: May 2, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-10775 Judge: Hon. Martin R Barash Debtor's Counsel: Michael Jay Berger, Esq. LAW OFFICES OF MICHAEL JAY BERGER 9454 Wilshire Boulevard, 6th Floor Beverly Hills, CA 90212 Tel: (310) 271-6223 Fax: (310) 271-9805 Email: michael.berger@bankruptcypower.com Total Assets: $12,338,987 Total Liabilities: $27,605,068 The petition was signed by Eli Sasson as managing member. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/6BQAOZI/Woodman_Investment_Group_LLC__cacbke-25-10775__0001.0.pdf?mcid=tGE4TAMA List of Debtor's Three Unsecured Creditors: Entity Nature of Claim Claim Amount 1. LA Buyer, LLC $15,575,399 current beneficiary 134 W 25th Street New York, NY 10001 2. LADWP Utility Bill $5,651 PO Box 30808 Los Angeles, CA 90030 3. Los Angeles County $24,018 Treasurer and Tax Collector 225 N. Hill Street POB 512102 Los Angeles, CA 90051 XHR LP: Moody's Affirms 'B1' CFR, Outlook Remains Stable -------------------------------------------------------- Moody's Ratings affirmed the B1 corporate family rating and backed senior unsecured notes rating of XHR LP, the main operating subsidiary of Xenia Hotels & Resorts, Inc. (collectively "Xenia" or "the REIT"). The Speculative Grade Liquidity (SGL) rating is unchanged at SGL-2. The outlook remains stable. The affirmation of the B1 corporate family rating reflects Xenia's high quality and well-diversified, albeit modestly sized lodging portfolio. The affirmation also reflects Moody's expectations that leverage will trend lower because of growth in EBITDA from recently completed capital projects and steady lodging demand. Moody's also believes that the company's portfolio of properties and current credit metrics provide cushion to absorb the effects on lodging demand should macroeconomic conditions weaken as a result of the US administrations' current trade and fiscal policies. RATINGS RATIONALE Xenia's B1 CFR reflects its high-quality, well-diversified portfolio of luxury and upper-upscale premium-branded hotel properties. These properties are strategically located in prime US markets with high barriers to entry, attracting demand from business, group, and leisure travelers. The rating also reflects the company's moderate leverage metrics, with net debt/EBITDA unchanged year-over-year at 5.7x as of December 31, 2024. Moody's expects leverage to decline closer to 5x in 2025 on low-single-digit revenue per available room (RevPAR) growth and incremental EBITDA from recently renovated properties over the last two years, unless macroeconomic conditions weaken. Steady demand across both leisure and transient business in Xenia's core markets will be important for the company to sustain improvements going forward. The durability of business travel demand in the current and upcoming economic environment is a key watch item. Similar to other lodging companies, Xenia faces significant earnings volatility compared to other REITs, stemming from the inherent cyclicality of the sector, high fixed costs and operating expenses and short-term hotel stays. A deterioration of the broader macroeconomic environment could weaken consumer discretionary spending, reduce business travel and slow the recovery of the lodging sector. Nevertheless, Xenia continues to demonstrate strong operating performance, with same-store RevPAR increasing over 3% in 2024, driven by continued growth in business transient and group travel demand. The stable outlook reflects Moody's expectations that continued growth in earnings and operating cash flows will help maintain leverage below 6x over the next 12 to 18 months. The SGL-2 speculative grade liquidity rating reflects the REIT's good liquidity as of year-end 2024, supported by $78 million of cash on hand and full availability under its $500 million unsecured revolving credit facility that expires in 2027. Near-term maturities are minimal, with $53 million of non-recourse mortgage debt due in 2026 and $106 million due in January 2027. Additional capital needs are primarily related to the REIT's projected capital expenditures (over $50 million for 2025) for reinvestment and renovation projects. Ongoing reinvestment through large-scale capital renovation projects is essential to preserve asset quality and stay competitive in the higher-end lodging segment. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded with continued growth in size on a leverage neutral basis as well as maintenance of good liquidity through industry and economic cycles. Stronger credit metrics on a sustained basis including net debt/EBITDA near 5.0x and fixed charge coverage above 3.5x could lead to a ratings upgrade. The ratings could be downgraded with weakened operating performance or inadequate liquidity. Net debt/EBITDA above 7.0x or fixed charge coverage below 2.5x could lead to a downgrade as could a significant increase in secured debt. XHR LP is a direct subsidiary of Xenia Hotels & Resorts, Inc., a publicly traded lodging REIT headquartered in Orlando, Florida that invests in luxury and upper-upscale hotels and resorts. The company owns 30 premium branded hotel assets and focuses on the top 25 US lodging markets as well as key leisure destinations. The principal methodology used in these ratings was REITs and Other Commercial Real Estate Firms published in February 2024. YOUSSEF CORP: Unsecureds Will Get 1% of Claims in Subchapter V Plan ------------------------------------------------------------------- Youssef Corporation filed with the U.S. Bankruptcy Court for the Eastern District of California a Plan of Reorganization under Subchapter V dated March 31, 2025. The Debtor is a California Corporation operating as Rick's Dessert Diner in midtown Sacramento, California. Randy Sutton is the current Chief Executive Officer of the Debtor. The Debtor has both secured and unsecured debt. As of Petition Date, the Debtor had approximately $1,445,305 in secured debt obligations and $513,674 in unsecured claims. The Debtor has three secured claims:1 (1) Umpqua Bank holds a senior secured claim in the amount of $1,227,330 secured by business equipment, furniture, fixtures, cash and accounts. The Umpqua Bank loan is a Small Business Administration loan and is guaranteed by Debtor's principal Randy Sutton; (2) JP Morgan Chase has a junior secured claim secured by accounts, inventory and equipment in the amount of $152,108.71; (3) WSFS Bank holds a Business Equipment Lease/Purchase agreement secured by purchase money security interest in a Sweeper. Debtors remaining debt is unsecured, some of which is personally guaranteed by Randy Sutton. By the Plan, the Debtor proposes to (a) pay Umpqua Bank the value of Umpqua Bank's collateral as of the effective date of the Plan, with monthly payments as described below; (b) pay JP Morgan Chase the value of JP Morgan Chase's collateral as of the effective date of the Plan; (c) pay WSFS Bank the remaining payments due under the lease/purchase agreement; and (d) pay general unsecured claims, including the unsecured portion of partially secured creditors pro rata 1 percent of their allowed claims over the life of the Plan. Equity Interests will be reinstated, provided, however, that the Debtor may not make any payments on account of Equity Interests until the completion of the Plan. Mr. Sutton, the principal, may continue to be employed as a salaried employee. Class 4 consists of General Unsecured Claim. Holders of General Unsecured Claims including the holders of the unsecured portion of secured claims shall receive quarterly payments of their pro rata share of payments totaling one percent of all allowed general unsecured claims. Debtor, acting as disbursing agent may, at Debtor’s discretion, may hold claims entitled to less than $15.00 for later distribution. Class 4 is impaired. Class 5 consists of Equity Interests. All Equity Interests will be reinstated as they were prior to the Petition Date, provided, however, that the Debtor may not make any payments on account of Equity Interests until the completion of the Plan. Any provisions of any Equity Interest or agreements with holders of Equity Interests requiring mandatory payments of profits will be permanently rejected. The Debtor will make no distributions to holders of Equity Interests unless and until all payments required under this Plan have been paid in full. On the Effective Date, all assets of the Debtor's estate, including all real and personal property, all Causes of Action, interests, claims, choses in action, and rights under any contracts (executory or otherwise), against any person will re vest and be transferred to the post-Effective Date Debtor. The Debtor will remain in possession of all other assets, including its business and will continue to sell its products through its existing marketing channels while seeking to incrementally increase its sales through a measured growth model that emphasizes profitability. The Debtor will use the cash generated from operation of its business to make payments directly to holders of Allowed Claims and meet its responsibilities on its assumed executory contracts and leases on the terms and conditions provided in this Plan. The Debtor will keep a ledger showing the balance of each Allowed Secured Claim as well as the payments to the General Unsecured Claims Plan payments are completed. A full-text copy of the Plan of Reorganization dated March 31, 2025 is available at https://urlcurt.com/u?l=oJXH1k from PacerMonitor.com at no charge. Counsel to the Debtor: Stephen M. Reynplds, Esq. Reynolds Law Corporation PO Box 733799 Davis, CA 95617 Tel: (530) 297-5030 Email: sreynolds@lr-law.net Linda Deos, Esq. Deos Law, PC 428 J Street, 4th Floor Sacramento, CA 95814 Tel: (916) 442-4442 Fax: (916) 583-7693 E-mail: Linda@deoslaw.com About Youssef Corporation Youssef Corporation, doing business as Rick's Dessert Diner, a Sacramento-based dessert shop operating since 1986. Youssef Corporation sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. 24-25864) on Dec. 31, 2024. In its petition, the Debtor estimated assets between $50,000 and $100,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Christopher D. Jaime handles the case. Linda D. Deos, Esq., of Deos Law PC is the Debtor's counsel. ZDK COMPANY: Gets Interim OK to Use Cash Collateral --------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division granted ZDK Company authorization to use cash collateral on an interim basis. The interim order signed by Judge Roberta A Colton authorized the company to use cash collateral to pay the amounts expressly authorized by the court, including payments to the U.S. trustee for quarterly fees; the expenses set forth in the budget, plus an amount not to exceed 10% for each line item; and additional amounts expressly approved in writing by secured creditor, the Bank. Each creditor with a security interest in cash collateral will have a perfected post-petition lien on the cash collateral to the same extent and with the same validity and priority as its pre-bankruptcy lien. As additional protection, ZDK Company was ordered by the court to keep its property insured. The next hearing is scheduled for May 15. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/r7PVe from PacerMonitor.com. About ZDK Company ZDK Company operates two retail franchise Hobby Town stores. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06368) on October 29, 2024, with up to $50,000 in assets and up to $1 million in liabilities. Judge Roberta A. Colton presides over the case. Katelyn M. Vinson, Esq. at Jennis Morse represents the Debtor as legal counsel. ZENITH PROPERTY: Section 341(a) Meeting of Creditors on May 22 -------------------------------------------------------------- On April 25, 2025, Zenith Property Mgmt. Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on May 22, 2025 at 02:30 PM at Office of UST (TELECONFERENCE ONLY). About Zenith Property Mgmt. Inc. Zenith Property Mgmt. Inc. is a Bronx-based property management company that owns a residential property at 1118 Lydig Street in the Bronx, New York. Zenith Property Mgmt. Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10821) on April 25, 2025. In its petition, the Debtor reports estimated assets and liabilities between $500,000 and $1 million each. Honorable Bankruptcy Judge Martin Glenn handles the case. [] Bankruptcies, Layoffs Affect Several Sectors in April 2025 ------------------------------------------------------------- Steve Barrett of FreightWaves reports that multiple companies across the freight and logistics sector filed for bankruptcy or announced layoffs in April, as mounting tariff concerns and economic headwinds continue to disrupt supply chain operations. Truck & Trailer Leasing, based in Joliet, Illinois, filed for Chapter 11 bankruptcy on April 16 in the Northern District of Illinois. The company listed both assets and liabilities between $10 million and $50 million and noted it would have funds to pay unsecured creditors. Its largest debts include approximately $818,000 owed to Bank Midwest and $623,000 to De Lage Landen Financial Services. This is the company's second bankruptcy filing in just over a year. Efforts to reach company leadership or legal counsel were unsuccessful, the report states. Starr Rail, located in Cooper, Texas, filed for Chapter 11 on April 11. The company, which offers transloading, warehousing, and last-mile trucking services, reported assets and liabilities between $1 million and $10 million. The filing noted that unsecured creditors—including CPKC Railroad ($220,000) and Kiamichi Railroad ($133,000)—will not be repaid after administrative costs. Calls to the company went unanswered, according to FreightWaves. LML Logistics of Ocala, Florida, filed for bankruptcy in the Middle District of Florida on April 26. The company reported assets between $100,000 and $500,000 and liabilities between $1 million and $10 million. It said funds will be available for unsecured creditors, including Farm Credit of Florida ($794,000) and the SBA's Economic Injury Disaster Loan program ($107,000). LML operates 10 power units and employs 16 drivers. The company could not be reached for comment, FreightWaves reports. Accelerate360 Distribution announced the closure of its Dakota Merchandising Work unit in Sioux Falls, South Dakota, through a WARN Act notice filed April 26. The move will result in 324 permanent layoffs, including 22 workers based in Missouri. The company cited outsourcing as the reason for the job cuts. "These roles were primarily part-time and will be transitioned to another provider," said Jannine Clemons, VP of Human Resources. Kadam Logistics Corp. of Chicago filed for Chapter 11 on April 4. The company reported assets and liabilities between $100,000 and $500,000, with plans to repay unsecured creditors. Major claims include $98,000 owed to First Federal Bank & Trust and $84,000 to Transportation Alliance Bank. Revenue has dropped sharply—from $1.5 million in 2023 to less than $1.1 million in 2024, and just $360,000 to date in 2025. The company and its attorneys did not respond to requests for comment. Sweet Trucking Co., based in Knoxville, Tennessee, filed for Chapter 11 on April 21. The company reported both assets and liabilities in the $1 million to $10 million range and expects to repay unsecured creditors. Its largest debts include $75,000 to the IRS, $67,300 to Thompson Truck Leasing, and $51,500 to Truist Bank. Sweet Trucking's revenue has declined for three consecutive years—from $2.7 million in 2022 to $2.1 million in 2024. The company, which runs 10 power units and employs 12 drivers, has not responded to inquiries, the report relys. [] U.S. Bankruptcy Filings Increased 10% in the 1st Qtr. of 2025 ---------------------------------------------------------------- Alex Wolf of Bloomberg Law reports that bankruptcy filings across all chapters increased by nearly 10% in the first quarter of 2025 compared to the same period in 2024, as financial pressures continued to affect both consumers and businesses. According to data released Thursday, May 1, 2025, by the Administrative Office of the U.S. Courts, total bankruptcy filings have continued their upward trend, which began in mid-2022. Non-business filings saw a notable jump, rising to 128,415 from 116,877 in the first quarter of last year. Business filings -- mainly under Chapters 7 and 11 of the U.S. Bankruptcy Code -- also experienced a modest increase over the same period, the report states. [^] T&W Unveils Outstanding Young Restructuring Lawyers of 2025 --------------------------------------------------------------- Turnarounds & Workouts is pleased to announce the 2025 Outstanding Young Restructuring Lawyers in its latest issue, recognizing 12 exceptional attorneys under the age of 40 who have demonstrated extraordinary talent, leadership, and dedication in their profession. Congratulations to the industry's rising stars (in alphabetical order): JAMES BURBAGE, Willkie Farr & Gallagher LLP CLIFFORD CARLSON, Weil, Gotshal & Manges LLP GERARD T. CICERO, Brown Rudnick LLP MATTHEW FAGEN, Kirkland & Ellis LLP JACKSON GARVEY, Sidley Austin LLP ANDRIANA GEORGALLAS, Weil, Gotshal & Manges LLP LINDSAY HENRIKSON, Paul Hastings LLP NATASHA S. HWANGPO, Ropes & Gray LLP THOMAS KESSLER, Cleary Gottlieb Steen & Hamilton LLP ZACHARY LANIER, Akin Gump Strauss Hauer & Feld LLP JONAH A. PEPPIATT, Davis Polk & Wardwell LLP STEPHEN SILVERMAN, Gibson, Dunn & Crutcher LLP Selected through a competitive nomination and evaluation process, the 2025 Outstanding Young Restructuring Lawyers represent the future of the industry, with their innovative approaches and commitment to excellence. In a lead or major role, the 2025 Outstanding Young Restructuring Lawyers successfully navigated the intricacies of each corporate restructuring transaction to help clients achieve an optimal outcome. Turnarounds & Workouts wishes everyone who participated as well as their organization continued success. An awards ceremony to honor the 2025 Outstanding Young Restructuring Lawyers will be held at the cocktail reception following the 32nd Annual Distressed Investing Conference hosted by Beard Group, Inc., on Dec. 3, 2025, in Midtown Manhattan. For more information or to RSVP for the awards ceremony, please visit https://www.distressedinvestingconference.com/ or contact the conference producer, Will Etchison at 305-707-7493 or will@beardgroup.com The latest Turnarounds & Workouts issue is available at https://urlcurt.com/u?l=FTRKm6 (subscription required). Turnarounds & Workouts is a news magazine for corporate restructuring professionals such as bankruptcy attorneys, financial advisers, turnaround managers, investment bankers, distressed investors, claims traders, trustees, academics and business journalists. Sign up for a free trial at http://bankrupt.com/periodicals/pptcp.form.html Turnarounds & Workouts is published by Beard Group, Inc., serving corporate restructuring professionals since 1987. Beard Group publishes Troubled Company Reporter seven days a week and Troubled Company Prospector every Monday morning. Beard Group also hosts the annual Distressed Investing Conference in Midtown Manhattan and distributes more than 300 book titles at BeardBooks.com related to law and business. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA. Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The single-user TCR subscription rate is $1,400 for six months or $2,350 for twelve months, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each per half-year or $50 annually. For subscription information, contact Peter A. Chapman at 215-945-7000. *** End of Transmission ***