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250520.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, May 20, 2025, Vol. 29, No. 139 Headlines A.R.M. BAGELS: Gets Interim OK to Use Cash Collateral Until June 11 ACCURADIO LLC: Case Summary & Nine Unsecured Creditors ACCURADIO LLC: Seeks Chapter 11 Bankruptcy in Illinois ACUTE HVACR: Christine Brimm Named Subchapter V Trustee ACUTE HVACR: Gets Interim OK to Use Cash Collateral AFTERSHOCK COMICS: Exits Chapter 11 Bankruptcy ALGOMA STEEL: Fitch Affirms 'B' LongTerm IDR, Outlook Stable ALL AMERICAN: Erik Johanson Files Rule 2019 Statement ALLIANCE RESOURCE: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable AMERI-DENT DENTAL: Kathleen DiSanto Named Subchapter V Trustee AMERICAN TRAILER: Saratoga CLO Marks $1.3 Million Loan at 16% Off ANALABS INC: U.S. Trustee Unable to Appoint Committee ANASTASIA PARENT: Saratoga CLO Marks $935,000 Loan at 18% Off ANCIOM LLC: Linda Leali Named Subchapter V Trustee ANTERO RESOURCES: Moody's Alters Outlook on 'Ba1' CFR to Positive ATLAS MIDCO: S&P Downgrades ICR to 'CCC' on Liquidity Headwinds AVIS BUDGET: Moody's Rates New Senior Unsecured Notes 'B1' BECKER INC: Court Extends Cash Collateral Access to June 17 BENGAL DEBT: Saratoga CLO Marks $1.9 Million Loan at 40% Off BLUEBIRD BIO: Warns of Possible Bankruptcy as Buyout Faces Delay BREWER MACHINE: Case Summary & 20 Largest Unsecured Creditors BRIGHTVIEW LANDSCAPES: S&P Affirms 'B' ICR, Outlook Stable BTG TEXTILES: Gets Court OK to Use TAB Bank's Cash Collateral BURFORD CAPITAL: Moody's Ups CFR to Ba1 & Alters Outlook to Stable CABLE ONE: S&P Downgrades ICR to 'BB-', Outlook Negative CADUCEUS PHYSICIANS: No Patient Care Concern, PCO Report Says CALUMET INC: S&P Affirms 'CCC+' ICR on Near-Term Refinancing Risks CAREERBUILDER LLC: Saratoga CLO Marks $4 Million Loan at 95% Off CAROLINA'S CONTRACTING: Baker Donelson Advises Komatsu & HomeTrust CASTLE US: Moody's Affirms 'Caa2' CFR & Alters Outlook to Stable CASTLE US: Saratoga CLO Marks $1.9 Million Loan at 38% Off CCRR PARENT: Saratoga CLO Marks $962,000 Loan at 60% Off CCRR PARENT: Saratoga CLO Marks $980,000 Loan at 60% Off CCS-CMGC HOLDINGS: Saratoga CLO Marks $1.1-Mil. Loan at 66% Off CEC ENTERTAINMENT: Moody's Alters Outlook on 'B3' CFR to Negative CHANDLER SOLUTIONS: U.S. Trustee Unable to Appoint Committee CHAPMAN CBC: Case Summary & 18 Unsecured Creditors CHARTER COMMUNICATIONS: S&P Affirms 'BB+' ICR, Outlook Stable CLEANOVA HOLDCO 3: Fitch Assigns 'B' LongTerm IDR, Outlook Stable COLUMBINE HEIGHTS: Unsecureds Will Get 100% of Claims in Plan COMMERCIAL FURNITURE: Gets Extension to Access Cash Collateral CONSOLIDATED BURGER: June 23, 2025 Proofs of Claim Deadline Set COSTELLO SR.-ALLEN: Mark Schlant Named Subchapter V Trustee CREATIVEMASS HOLDINGS: William Homony Named Subchapter V Trustee DANIMER SCIENTIFIC: June 9, 2025 Claims Bar Date Set DEL MONTE FOODS II: Moody's Assigns 'Caa2' CFR, Outlook Negative DOVGAL EXPRESS: Cash Collateral Hearing Set for May 21 DRIVEHUB AUTO: Continued Operation to Fund Plan Payments EAST COAST FOODS: 9th Circ. Dismisses Ex-Bankruptcy Trustee's Suit EMILY L. LONGWITH: Unsecureds Will Get 12.17% over 5 Years ENDURE DIGITAL: Saratoga CLO Marks $2.4M Loan at 31% Off ENPRO INDUSTRIES: Moody's Rates New Unsec. Notes Due 2033 'Ba3' EOS US FINCO: Saratoga CLO Marks $950,000 Loan at 58% Off EVEREST LENDING: Updates Restructuring Plan Disclosures FORMING MACHINING: S&P Withdraws 'CCC' Issuer Credit Rating FRANCHISE GROUP: Saratoga CLO Marks $3 Million Loan at 50% Off FRANCHISE GROUP: Saratoga CLO Marks $827,000 Loan at 50% Off GLOBAL INFRASTRUCTURE: S&P Upgrades ICR to 'BB', Outlook Stable GOLDEN WEST: Saratoga CLO Marks $1.7 Million Loan at 19% Off GOOD EARTH: Case Summary & 20 Largest Unsecured Creditors GOTO GROUP: Saratoga CLO Marks $1.7 Million Loan at 19% Off GRANT ANTIQUES: Case Summary & 10 Unsecured Creditors GREEN SAPPHIRE: Case Summary & 10 Unsecured Creditors HAPPYNEST REIT: Assurance Dimensions Raises Going Concern Doubt HARMONY COVE: Tarek Kiem Named Subchapter V Trustee HEALTHCHANNELS INTERMEDIATE: Moody's Withdraws 'Caa3' CFR HRNI HOLDINGS: Fitch Alters Outlook on 'B' LongTerm IDR to Stable INDIVIDUALIZED ABA: Quality of Care Maintained, 3rd PCO Report Says INKED PLAYMATS: Tarek Kiem Named Subchapter V Trustee ISAGENIX INTERNATIONAL: Saratoga CLO Marks $1.3M Loan at 87% Off J.C.C.M. PROPERTIES: Case Summary & Two Unsecured Creditors JP INTERMEDIATE: Saratoga CLO Marks $3.3 Million Loan at 96% Off KEEP IT GYPSY: Case Summary & One Unsecured Creditor KEYSTONE PASSIONATE: Lisa Rynard Named Subchapter V Trustee KOHL'S CORP: Fitch Rates New $360MM Secured Notes Due 2030 'BB+' LAID RIGHT: Joseph Frost Named Subchapter V Trustee LAKELAND TOURS: Saratoga CLO Marks $1.1 Million Loan at 98% Off LBM ACQUISITION: Fitch Affirms 'B' LongTerm IDR, Outlook Stable LEALAND FINANCE: Saratoga CLO Marks $366,000 Loan at 59% Off LIGHTNING POWER: Moody's Alters Outlook on 'Ba3' CFR to Positive MATADOR RESOURCES: Fitch Hikes LongTerm IDR to 'BB', Outlook Stable MCR HEALTH: PCO Reports Staffing Challenges METROPOLITAN OPERA, NY: S&P Lowers 2012 Bond Rating to 'BB+' MIDWEST CHRISTIAN: Implements Alternative Record Retention Policy MIDWEST ENGINEERED: Steven Nosek Named Subchapter V Trustee MISTER CHIMNEY: Christopher Hayes Named Subchapter V Trustee MODE MOBILE: IndigoSpire CPA Raises Going Concern Doubt MOORE MEDICAL: Gets Final OK to Use Cash Collateral MOUNTAINEER MERGER: Moody's Cuts CFR to 'Caa3', Outlook Stable NAKED JUICE: Moody's Puts 'Ca' CFR Under Review for Upgrade NATIONAL FOOD: Case Summary & 20 Largest Unsecured Creditors NAVIENT CORP: Fitch Assigns BB-(EXP) Rating on Sr. Unsecured Notes OUTKAST ELECTRICAL: Court Extends Cash Collateral Access to May 30 P MAIO CONSTRUCTION: Unsecureds Will Get 46% of Claims over 3 Years PARAMOUNT REAL ESTATE: Robert Handler Named Subchapter V Trustee PARTIDA HOLDINGS OF FAYETTEVILLE: Gets OK to Use Cash Collateral PARTIDA HOLDINGS OF LAWTON: Gets Final OK to Use Cash Collateral PARTIDA HOLDINGS OF LITTLE ROCK: Gets OK to Use Cash Collateral PARTIDA HOLDINGS OF TULSA: Gets Final OK to Use Cash Collateral PAWLUS DENTAL: Case Summary & 16 Unsecured Creditors PEPPER PALACE: Saratoga Marks $2.4 Million 1L Loan at 45% Off PETROLEOS DE VENEZUELA: May 28, 2025 Deadline for Topping Bids PR DIAMOND: Gets Interim OK to Use Cash Collateral Until June 10 PRESBYTERIAN VILLAGES: Fitch Affirms 'BB-' IDR, Outlook Negative RAMJAY INC: Angela Shortall of 3Cubed Named Subchapter V Trustee REEF POOLS: Ruediger Mueller of TCMI Named Subchapter V Trustee REGIONS PROPERTY: Carol Fox Named Subchapter V Trustee RITE AID: Faces Proposed Class Action Alleging Unlawful Layoffs RIVE RELEASING: Auction of Collateral Scheduled for May 22 SMITH HEALTH: No Resident Care Concern, 3rd PCO Report Says SPORTIF VENTURES: Edward Burr Named Subchapter V Trustee ST. CHARLES: S&P Raises Long-Term GO Parity Debt Rating to 'BB-' STARR RAIL: Areya Holder Aurzada Named Subchapter V Trustee STO-ROX SCHOOL: Moody's Upgrades Issuer & GOULT Ratings to Ba3 STONEYBROOK FAMILY: Unsecureds to Get Share of Income for 3 Years SUNNOVA ENERGY: Extends Forbearance Deal With Noteholders to May 22 SYNAPTICS INC: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable SYRACUSE INDUSTRIAL: Fitch Affirms CC Rating on Carousel Ctr. Bonds TELUS CORP: DBRS Finalizes BB(high) Rating on Subordinated Notes TEXAS OILWELL: Unsecureds to Get Share of Income for 60 Months THUNDER INTERNATIONAL: Case Summary & 20 Top Unsecured Creditors TOWN LOUNGE: Case Summary & 20 Largest Unsecured Creditors TR WELDING: Gets Final OK to Use Cash Collateral TZADIK SIOUX FALLS III: Case Summary & 19 Unsecured Creditors URBAN ONE: S&P Downgrades ICR to 'SD' on Subpar Debt Repurchase VALPARAISO UNIVERSITY: S&P Rates 2025A-B Revenue Bonds 'BB+' VAN DYKE PUBLIC SCHOOLS, MI: S&P Lowers GO Debt Rating to 'BB+' VEREGY INTERMEDIATE: S&P Withdraws 'B-' Issuer Credit Rating VESTIS CORP: Moody's Lowers CFR to B2 & Alters Outlook to Stable WATCHTOWER FIREARMS: Carrington Represents Equity Security Holders WAVE ASIAN: L. Todd Budgen Named Subchapter V Trustee WAVE SUSHI: L. Todd Budgen Named Subchapter V Trustee WILLIAM CARTER: Moody's Lowers CFR to 'Ba2', Outlook Stable WINTHROP STREET: Voluntary Chapter 11 Case Summary WT REPAIR: Case Summary & 10 Unsecured Creditors ZOLLEGE PBC: Saratoga Marks $1.5 Million 1L Loan at 26% Off ********* A.R.M. BAGELS: Gets Interim OK to Use Cash Collateral Until June 11 ------------------------------------------------------------------- A.R.M. Bagels, Inc. got the green light from the U.S. Bankruptcy Court for the Southern District of New York to use cash collateral. The order penned by Judge Kyu Paek authorized the company's interim use of cash collateral until June 11 to pay the expenses set forth in its budget. As protection, the U.S. Small Business Administration will be granted a replacement lien on the company's assets constituting its pre-bankruptcy collateral and will receive monthly payments of $2,700 starting this month. In case the replacement lien is not enough to protect its interests, SBA will be granted a superpriority administrative claim, subject to a carve-out for certain fees and expenses. The company's authority to use cash collateral will be revoked upon the occurrence of so-called termination events, including noncompliance with the interim order. A final hearing is scheduled for June 10. About A.R.M. Bagels Inc. A.R.M. Bagels owns and operates bagel shop from 415 North Central Park Avenue, Hartsdale, N.Y. A.R.M. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. N.Y. Case No. 25-22194) on March 7, 2025, listing up to $50,000 in assets and up to $1 million in liabilities. Anthony Iaccarino, president of A.R.M., signed the petition. Judge Kyu Young Paek oversees the case. Anne Penachio, Esq., at Penachio Malara LLP, represents the Debtor as legal counsel. ACCURADIO LLC: Case Summary & Nine Unsecured Creditors ------------------------------------------------------ Debtor: AccuRadio, LLC 10 W. Hubbard Street, Suite 2D Chicago, IL 60654 Business Description: AccuRadio is an online music streaming service that offers nearly 1,000 channels curated by human music experts rather than algorithms. Founded in 2000, the platform spans over 50 musical genres and allows users to personalize their listening experience through features like song ratings, blended channels, and custom favorites. The service is entirely free, with unlimited skips and no subscription plans. Chapter 11 Petition Date: May 14, 2025 Court: United States Bankruptcy Court Northern District of Illinois Case No.: 25-07366 Judge: Hon. Michael B Slade Debtor's Counsel: Derek D. Samz, Esq. GOLAN CHRISTIE TAGLIA LLP 70 W. Madison St., Suite 1500 Chicago, IL 60602 Tel: (312) 263-2300 E-mail: ddsamz@gct.law Total Assets: $966,958 Total Liabilities: $10,529,027 Kurt Hanson, serving as manager, signed the petition. A full-text copy of the petition, which includes a list of the Debtor's nine unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/CUEAVEI/AccuRadio_LLC__ilnbke-25-07366__0001.0.pdf?mcid=tGE4TAMA ACCURADIO LLC: Seeks Chapter 11 Bankruptcy in Illinois ------------------------------------------------------ RadioInsight.com reports that streaming service AccuRadio has filed for Chapter 11 bankruptcy protection following a failed effort to resolve royalty disputes with SoundExchange. Founder and CEO Kurt Hanson explained that the filing came after SoundExchange unexpectedly filed a lawsuit in mid-2024, despite what AccuRadio believed were productive negotiations. "We were blindsided by the legal action," Hanson said, the report cited. "We had spent months working with their attorneys to create a fair payment plan and believed we were close to an agreement. Even during litigation, we continued negotiating and thought our most recent proposal would be accepted with only small revisions. But SoundExchange changed course and rejected it. It was a deeply disappointing outcome." Hanson highlighted AccuRadio's record of compliance, noting that the company has paid more than $13.5 million in royalties to SoundExchange over the years and has remained current on recent payments, according to RadioInsight.com. He also criticized the Copyright Royalty Board's rate-setting framework, calling it inaccessible to small and midsize streamers due to the high cost of legal fees, expert witnesses, and discovery. "The system seems unintentionally biased against companies like ours," Hanson said. "We've spent nearly 25 years building an innovative, human-curated music service while managing rising royalty costs that make it difficult for smaller players to survive." Despite the filing, AccuRadio remains operational and independent. "This decision wasn't made lightly," Hanson said. "But with improving revenues and a return to profitability, we believe bankruptcy protection will help us restructure and emerge stronger. Our commitment to delivering great music to our listeners hasn't changed," according to report. About AccuRadio Inc. AccuRadio Inc. offers streaming radio service. Accuradio Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-07366) on May 14, 2025. In its petition, the Debtor reports estimated assets between $500,000 and $1 million and estimated liabilities between $10 million and $50 million. Honorable Bankruptcy Judge Michael B. Slade handles the case. The Debtor is represented by Derek D. Samz, Esq. at Golan Christie Taglia LLP. ACUTE HVACR: Christine Brimm Named Subchapter V Trustee ------------------------------------------------------- The Acting U.S. Trustee for Region 4 appointed Christine Brimm, Esq., as Subchapter V trustee for Acute HVACR, LLC. Ms. Brimm, a practicing attorney in Myrtle Beach, S.C., will be paid an hourly fee of $350 for her services as Subchapter V trustee and an hourly fee of $150 for paralegal services. In addition, the Subchapter V trustee will receive reimbursement for work-related expenses incurred. Ms. Brimm declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Christine E. Brimm P.O. Box 14805 Myrtle Beach, SC 29587 Telephone: 803-256-6582 Email: cbrimm@bartonbrimm.com About Acute HVACR Acute HVACR, LLC is a heating, ventilation, air conditioning, and refrigeration contractor based in Summerville, S.C. Acute HVACR sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.S.C. Case No. 25-01661) on May 1, 2025. In its petition, the Debtor reported up to $50,000 in assets and between $1 million and $10 million in liabilities. Judge Elisabetta Gm Gasparini handles the case. The Debtor is represented by Michael Conrady, Esq., at Campbell Law Firm, PA. ACUTE HVACR: Gets Interim OK to Use Cash Collateral --------------------------------------------------- Acute HVACR, LLC got the green light from the U.S. Bankruptcy Court for the District of South Carolina to use cash collateral. The order penned by Judge Elisabetta Gm Gasparini authorized the company's interim use of cash collateral in accordance with its budget until a final hearing is held. The budget projects total operational expenses of $65,088 for May. Acute HVACR's cash collateral may include receivables and accounts potentially subject to liens by Ready Capital and the U.S. Small Business Administration. As protection, both creditors were granted replacement liens on post-petition cash collateral to the same extent, validity, and priority as their pre-bankruptcy liens. Funds allocated for estate professionals in the budget must be held in escrow and disbursed only after court approval. Acute HVACR must pay the Subchapter V trustee $1,000 within 30 days of the court order and $500 per month thereafter. A final hearing is set for May 29. About Acute HVACR LLC Acute HVACR, LLC is a heating, ventilation, air conditioning, and refrigeration contractor based in Summerville, S.C. Acute HVACR sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.S.C. Case No. 25-01661) on May 1, 2025. In its petition, the Debtor reported up to $50,000 in assets and between $1 million and $10 million in liabilities. Judge Elisabetta Gm Gasparini handles the case. The Debtor is represented by Michael Conrady, Esq., at Campbell Law Firm, PA. AFTERSHOCK COMICS: Exits Chapter 11 Bankruptcy ---------------------------------------------- Brigid Alverson of ICv2 reports that AfterShock Comics is making a comeback following its Chapter 11 bankruptcy filing, with a newly restructured business and a commitment to repaying creators and vendors in full. According to the report, the company also plans to resume publication of stalled series. Both AfterShock and its sister company, Rive Gauche Television, filed for bankruptcy in December 2022. Under the approved reorganization plan, AfterShock will begin issuing partial payments immediately and continue payments over time until all obligations are fully settled. "I'm pleased to share that, after two and a half years of persistent effort, unpredictable market conditions, and extensive negotiations, we are now positioned to honor all financial commitments under our court-approved plan," said CEO Jon Kramer. "We'll soon begin distributing payments to creators and vendors and will continue until everyone is fully compensated. Restarting our publishing operations is key to reaching that goal, and we're incredibly grateful for the continued support from creators, retailers, and distributors." Jon Kramer and his brother Lee Kramer, who serves as President, will continue to lead the company moving forward, according to ICv2. "While we've kept a low profile during this time, we've been actively engaged with our creators on both current and upcoming projects," said Lee Kramer. "We've also been in conversations with potential editorial leaders—experienced professionals who can help expand our legacy in horror, sci-fi, crime, and fantasy. For the few series left unfinished, we fully intend to conclude those stories as creators become available. Additionally, we have several series and film adaptations in deep development, with some expected to move into production by late 2025 or early 2026. Other projects are already in the hands of studios and streaming platforms and will be announced soon." Senior VP of Sales & Marketing Steve Rotterdam added that AfterShock is planning to revive its retailer-facing programs. "The distribution model has changed significantly, and we're ready to adapt so that AfterShock comics remain easily accessible to readers," he said. "Our AfterShock Ambassador retail program set a standard in the industry, and we're exploring new ways to bring it back stronger than ever. We're excited to welcome fans, retailers, and creators back to the brand." Reflecting on the company's challenges, Jon Kramer cited the pandemic and writers' strike as major setbacks. "Our 2020 decision to seek financing to grow the business and retain our team was the right move strategically, but the prolonged economic uncertainty disrupted that momentum," he explained. "Although we knew the restructuring process would be difficult and could strain relationships, it ultimately protected our assets and the work of our talented creators." About AfterShock Comics AfterShock Comics, LLC -- https://Aftershockcomics.com -- is an American comic book publisher launched in 2015. The company is based in Sherman Oaks, Calif. AfterShock Comics and affiliate Rive Gauche Television filed petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Lead Case No. 22-11456) on Dec. 19, 2022. Judge Martin R. Barash oversees the cases. At the time of filing, AfterShock Comics reported $10 million to $50 million in both assets and liabilities while Rive Gauche reported $50 million to $100 million in assets and $10 million to $50 million in liabilities. The Debtors are represented by David L. Neale, Esq., at Levene, Neale, Bender, Yoo & Golubchik L.L.P. The U.S. Trustee for Region 16 appointed two separate committees to represent unsecured creditors in the Chapter 11 cases of AfterShock Comics, LLC and Rive Gauche Television. ALGOMA STEEL: Fitch Affirms 'B' LongTerm IDR, Outlook Stable ------------------------------------------------------------ Fitch Ratings has affirmed Algoma Steel Group Inc.'s and Algoma Steel Inc.'s Long-Term Issuer Default Ratings (IDRs) at 'B'. Fitch has also affirmed Algoma Steel Inc.'s first-lien secured ABL credit facility at 'BB' with a Recovery Rating of 'RR1' and its second-lien senior secured notes, due 2029, at 'BB-'/'RR2'. The Rating Outlook is Stable. Algoma's ratings incorporate its small size, near-term margin weakness, tariffs and an uncertain economic environment negatively impacting earnings and its elevated leverage. The Stable Outlook reflects Fitch's expectation that margins and EBITDA leverage will improve as the company transitions production from its blast furnace to a new electric arc furnace (EAF) facility. Key Rating Drivers EAF Transition Positive: Fitch believes Algoma's transition to an EAF facility from a blast furnace will improve its operating profile. The EAF project increases annual raw steel capacity to 3.7 million tons from 2.8 million tons, results in a lower and more flexible cost structure, lowers capital intensity, and improves its environmental footprint. Algoma is expected to achieve first EAF production in 2Q25 and shut down its blast furnace operations, fully transitioning to EAF production in 2027. The company is about CAD824 million through its project budget of about CAD880 as of March 31, 2025. Fitch believes liquidity is adequate to complete the project and views execution risk minimal as Algoma is more than 90% through its anticipated projected spend, has substantially contracted all remaining project costs, and will operate the blast furnace in parallel as the EAF ramps up production. Algoma also has a joint venture with Triple M Metal LP which will supply scrap requirements for its new EAF as it transitions from its blast furnace operations. Section 232 Tariff Expectations: On March 12, 2025, Section 232 steel tariffs went into effect, imposing a 25% tariff on imports of steel from all countries into the U.S. The tariffs are expected to have a material adverse effect as around 60% of Algoma's revenue typically comes from shipments to the U.S. Fitch believes Algoma's earnings will be negatively impacted by tariffs to the extent U.S.-produced steel is more competitive and Canadian steel demand is not sufficient to be able to moderate the effect of lower shipments to the U.S. The impact of lower margins and shipments to the U.S. may be partially offset by several factors: higher prices, as Canadian steel prices usually correlate with U.S. prices, increased overall shipments compared to 2024 as the EAF begins production, and the potential to shift some shipments to Canada if demand improves. EBITDA Margin Weakness: EBITDA margins declined to negative territory in 2H24 driven primarily by a roughly 10.5% decline in average selling prices. This compares to average EBITDA margins of around 7% in the LTM ended Dec. 31, 2023. CRU Group U.S. hot-rolled coil (HRC) prices have since improved to around $950/ton in April 2025 compared with an average of around $680/ton in 2H24. Fitch expects margins to improve but remain challenged in 2026, trending toward approximately 8% in 2027. This improvement is anticipated due to higher prices and the company's transition to EAF production, which is expected to lower costs. Near-Term Elevated Leverage: Fitch expects Algoma's EBITDA leverage to be elevated in 2025 but trend lower in 2026 and be sustained at or below 4.0x in 2027. Algoma's EBITDA leverage has been at or below 1.0x over the past three years prior to 2024. The company's recent track record and its target net leverage of 1.5x (excluding outstanding asset-backed and government loans) through-the-cycle supports Fitch's view Algoma will prioritize maintaining modest financial leverage. Plate Mill Modernization Positive: Algoma is completing a plate mill modernization project that will increase capacity to 600,000-700,000 tons from 350,000 tons. The CAD135 million project has two phases, with Phase 1 completed in 2022 and Phase 2 expected to be completed in July 2025. The increase in production is positive for the company's business profile as it enhances Algoma's leading market position as the only supplier of discrete plate in Canada. Plate products have also commanded a significant premium to HRC over the past few years, which increases projected cash flow and provides some product diversification. Limited Size/Production Concentration: Algoma is a relatively small steel producer with about 2.8 million tons of annual capacity expected to increase to about 3.7 million tons as the EAF project is completed. Flat-rolled sheet accounted for 86% of total sales in the nine months ended Dec. 31, 2024, with around 60% of shipments to the U.S and 40% to Canada. Algoma's product concentration is partially offset by its plate mill modernization project, which is expected to increase its proportion of plate shipments to around 20%-25%. Peer Analysis Algoma is significantly smaller and has less product diversification, higher operational risk and weaker credit metrics than majority blast furnace flat-rolled steel producers United States Steel Corporation (BB/Stable) and Cleveland-Cliffs Inc. (BB-/Stable). Algoma is also significantly smaller and has weaker credit metrics than long steel EAF steel producer Commercial Metals Company (BB+/Positive). Key Assumptions - Average selling prices improve in 2025, decline toward around CAD1200/ton in 2026, and remain relatively flat thereafter; - Annual shipments average about 2.2-2.3 in 2025-2026, increasing toward 2.8-2.9 million tons in 2027-2028 as Algoma transitions to full EAF production; - Algoma operates its blast furnace and EAF facilities in 2025-2026 as the new EAFs ramp up; - Blast furnace production ceases in 2027; - Capex of CAD300 million in 2025, CAD160 million in 2026, and around CAD120 million thereafter; - ABL drawn as needed; - No share repurchases or acquisitions. Recovery Analysis The recovery analysis assumes that Algoma would be organized as a going concern in a bankruptcy rather than liquidated. Fitch has assumed a 10% administrative claim. Fitch has also assumed a bankruptcy exit going concern EBITDA of CAD200 million. The going concern EBITDA estimate reflects a midcycle sustainable EBITDA level upon which the agency bases the enterprise valuation. A bankruptcy scenario could occur from some combination of a period of sustained low steel prices and/or weak demand which results in low capacity utilization over a sustained period of time and drains FCF. Fitch generally applies EBITDA multiples that range from 4.0x-6.0x for metals and mining issuers, given the cyclical nature of commodity prices. Fitch applied a 5.0x multiple to the going concern EBITDA estimate to calculate a post-reorganization enterprise value of CAD900 million after an assumed 10% administrative claim. The valuation compares with Algoma Steel Inc.'s purchase of substantially all the operating assets and select liabilities of Essar Steel Algoma Inc. for CAD890.7 million. The allocation of value in the liability waterfall results in a recovery rating of 'RR1' for the first-lien secured asset-backed loan credit facility resulting in a 'BB' rating and a recovery rating of 'RR2' for the second-lien secured notes resulting in a 'BB-' rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage sustained above 4.0x; - EBITDA margins sustainably below 8%; - Sustained negative FCF; - Deteriorating liquidity position. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Increase in size resulting in reduced operational risk; - EBITDA leverage sustained below 3.0x; - Sustainably positive FCF. Liquidity and Debt Structure As of March 31, 2025, Algoma had cash and cash equivalents of CAD226.5 million and CAD360.9 million available under its USD300 million asset-backed loan due May 2028, after accounting for CAD70 million outstanding in letters of credit. Issuer Profile Algoma is an integrated blast furnace steel producer of sheet and plate steel, operating a single facility in Sault Ste. Marie, Ontario, Canada. It has an annual capacity of approximately 2.8 million tons and is currently constructing two new EAFs. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Algoma Steel Inc. LT IDR B Affirmed B senior secured LT BB Affirmed RR1 BB Senior Secured 2nd Lien LT BB- Affirmed RR2 BB- Algoma Steel Group Inc. LT IDR B Affirmed B ALL AMERICAN: Erik Johanson Files Rule 2019 Statement ----------------------------------------------------- The law firm of Erik Johanson PLLC ("EJ PLLC") filed a verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure in the Chapter 11 cases of All American Holdings LLC and its affiliates. EJ PLLC represents the following four creditors with respect to the bankruptcy cases: Name Nature of Economic Amount of Interest Claim ---- ------------------- ---------- Christine Sanko Tort claims, $191,689.00 c/o Florin Roebig, P.A. FDUTPA violations, 777 Alderman Road and related causes of Palm Harbor, FL 34686 action Mark Blackson Tort claims, $25,000,000.00 c/o Florin Roebig, P.A. FDUTPA violations, 777 Alderman Road and related causes of Palm Harbor, FL 34686 action Timothy Turner Tort claims, $25,000,000.00 c/o Florin Roebig, P.A. FDUTPA violations, 777 Alderman Road and related causes of Palm Harbor, FL 34686 action Ronald and Mary Venters Tort claims, $25,000,000.00 c/o Florin Roebig, P.A. FDUTPA violations, 777 Alderman Road and related causes of Palm Harbor, FL 34686 action Each of the creditors has engaged EJ PLLC as legal counsel in these bankruptcy cases. The terms of the representation are memorialized in a separate written agreement for legal representation. EJ PLLC has no power to act on behalf of these creditors except as legal counsel in these bankruptcy cases. EJ PLLC has no claims in this case. The law firm can be reached at: Erik Johanson, Esq. Joseph R. Boyd, Esq. ERIK JOHANSON PLLC 3414 W Bay to Bay Blvd Suite 300 Tampa, FL 33629 Tel: (813) 210-9442 Email: erik@johanson.law ecf@johanson.law About All American Holdings LLC All American Holdings LLC is a limited liability company. All American Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-02066) on April 1, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge Catherine Peek McEwen handles the case. The Debtor is represented by Harry E. Riedel, Esq. at STICHTER, RIEDEL, BLAIN & POSTLER, P.A. ALLIANCE RESOURCE: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) of Alliance Resource Partners, L.P. (ARLP), Alliance Operating Partners, L.P. (AROP) and Alliance Coal, LLC at 'BB'. Fitch has also affirmed AROP's senior unsecured debt at 'BB' with a Recovery Rating of 'RR4' and Alliance Coal, LLC's secured RCF and term loan at 'BB+'/'RR2'. The Rating Outlook is Stable. ARLP's ratings reflect Fitch's expectation that shipments and pricing will continue to support capex and modest investments in non-coal businesses and that the company will manage its EBITDA leverage to below 1.0x on a sustained basis. Fitch expects cash flow from operations after capital expenditures to remain sufficient to allow deleveraging should capital market access be limited. Key Rating Drivers Favorable Operating Profile: Fitch believes ARLP is a well-run, mid-sized coal company. It is the second largest coal producer in eastern U.S. The company's earnings benefit from the high heat quality of its coal, a union free history (no other post-employment benefit liabilities) and the proximity of operations to customers and transport hubs. Coal operations are concentrated in underground mining and in ARLP's two largest operations, the River View Complex and the Tunnel Ridge Complex, which accounted for 29% and 19%, respectively, of 2024 production. Operations benefit from stable geology, management's strong and lengthy operating record and a fair amount of flexibility at most mines, including the River View Complex, given the use of continuous miners. Operating and Financial Flexibility: Fitch expects ARLP's cash flow to be more than sufficient to support operations and maintain a conservative financial profile. The company has been able and willing to reduce production and dial-back distributions and capex during weak energy prices, allowing debt repayment. It has also been able to expand when markets are strong without damaging its capital structure. Modest Financial Leverage: Fitch expects EBITDA leverage to be sustained below 1.0x. EBITDA leverage was 0.7x at March 31, 2025, and has not been above 1.5x over the past decade. Debt should be $600 million or below, and Fitch expects annual EBITDA to range between $580 million and $680 million. Coal Vulnerable to Climate Initiatives: Fitch believes steam coal volume is vulnerable to coal power generation capacity closures, although ARLP's coal would be favored in remaining dispatch for its high heat and reliability of supply. While Fitch does not expect volume to be constrained over the medium term, the longer-term risk of coal power generation capacity closures is factored into the ratings. Diversifying into Oil: Fitch views ARLP's increasing exposure to oil and gas mineral royalties as positive for cash flow. Production of mineral interests aggregated 3.4 million barrels of oil equivalent in 2024. The company has no capital commitments associated with these interests. Segment adjusted EBITDA from oil and gas royalties was $117 million, or about 30% of total segment adjusted EBITDA less capex in 2024. Peer Analysis ARLP is larger and more profitable than Indonesian coal peers PT Indika Energy Tbk (B+Stable) and PT Golden Energy Mines Tbk (BB-/Stable). Fitch expects ARLP's EBITDA leverage to be at or below 1.0x, compared to PT Indika Energy's EBITDA leverage of above 3.0x and PT Golden Energy's net cash position. Key Assumptions - Shipments at about 32 million tons per year on average; - EBITDA margins average about 32%; - Average annual capex at about $370 million, weighted towards 2025; - Average distribution coverage ratio at 1.3x; - No sustained borrowing expected under the Alliance Coal, LLC RCF. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA net leverage sustained above 1.5x; - Material deterioration in liquidity evidenced by weakened external funding access, liquidity is less than $200 million and/or failure to refinance upcoming maturities in a timely manner. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/upgrade - An upgrade is unlikely in the near-term as the company's concentration and scale are commensurate with the rating. Liquidity and Debt Structure Cash on hand was $81.3 million at March 31, 2025. Fitch expects ARLP to generate scant FCF on average and for the $75 million securitization facility (to mature in January 2026) and the Alliance Coal, LLC $425 million secured RCF (to mature March 9, 2028) to be used for near-term needs and letters of credit. At March 31, 2025, availability under the revolver and A/R securitization was $433 million (LOC $67 million). The Alliance Coal, LLC credit facility financial covenants include a consolidated debt to consolidated cash flow (substantially debt/EBITDA) maximum of 2.5x, a minimum interest coverage ratio of 3.0x and a CoalCo debt (excludes the AROP notes and any refinancing) to consolidated cash flow maximum of 1.5x. Fitch expects the company will comply with these covenants. The A/R securitization facility has been annually renewed. Issuer Profile ARLP is a major steam coal producer primarily operating in the Illinois Basin. In 2024, 80.3% of tonnage was sold to electric utilities in the U.S., of which, 100% had scrubbers. The company operates seven operating underground mining complexes. The company also owns mineral royalty interests in 70,036 net royalty acres in oil and gas producing regions. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations Alliance Resource Partners, L.P. has an ESG Relevance Score of '4' for GHG Emissions & Air Quality due to its exposure to emissions regulatory risk, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Alliance Resource Operating Partners, L.P. LT IDR BB Affirmed BB senior unsecured LT BB Affirmed RR4 BB Alliance Coal, LLC LT IDR BB Affirmed BB senior secured LT BB+ Affirmed RR2 BB+ Alliance Resource Partners, L.P. LT IDR BB Affirmed BB AMERI-DENT DENTAL: Kathleen DiSanto Named Subchapter V Trustee -------------------------------------------------------------- The U.S. Trustee for Region 21 appointed Kathleen DiSanto, Esq., at Bush Ross, P.A., as Subchapter V trustee for Ameri-Dent Dental Laboratory, LLC. Ms. DiSanto will be paid an hourly fee of $350 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. DiSanto declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Kathleen L. DiSanto, Esq. Bush Ross, P.A. P.O. Box 3913 Tampa, FL 33601-3913 Phone: (813) 224-9255 Fax: (813) 223-9620 Email: disanto.trustee@bushross.com About Ameri-Dent Dental Laboratory Ameri-Dent Dental Laboratory, LLC is a dental laboratory likely specializing in the manufacturing of dental prosthetics, appliances, and customized dental products. Ameri-Dent Dental Laboratory sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-02876) on May 2, 2025. In its petition, the Debtor reported between $10,000 and $50,000 in assets and between $100,000 and $500,000 in liabilities. Judge Catherine Peek McEwen handles the case. The Debtor is represented by James W. Elliott, Esq., at McIntyre Thanasides Bringgold, Elliott. AMERICAN TRAILER: Saratoga CLO Marks $1.3 Million Loan at 16% Off ----------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $1,357,439 loan extended to American Trailer World Corp. to market at $1,140,588 or 84% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Term Loan to American Trailer World Corp. The loan accrues interest at a rate of 1M USD SOFR+ 3.75% per annum. The loan matures on March 3, 2028. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About American Trailer World Corp. American Trailer World Corp., based in Addison, Texas, is a manufacturer of professional grade and consumer grade utility trailers and spare parts in North America. Revenue was approximately $1.2 billion for the twelve months ended September 30, 2024. The company is majority-owned by funds affiliated with Bain Capital. ANALABS INC: U.S. Trustee Unable to Appoint Committee ----------------------------------------------------- The U.S. Trustee for Region 4 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Analabs, Inc. 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 December 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. ANASTASIA PARENT: Saratoga CLO Marks $935,000 Loan at 18% Off ------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $937,500 loan extended to Anastasia Parent LLC to market at $765,084 or 82% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Term Loan to Anastasia Parent LLC. The loan accrues interest at a rate of 3M USD SOFR+ 3.75% per annum. The loan matures on August 11,2025. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About Anastasia Parent LLC Anastasia Parent, LLC is the parent company of Anastasia Beverly Hills, Inc., a prestige cosmetics brand that focuses on eyebrow shaping products. ANCIOM LLC: Linda Leali Named Subchapter V Trustee -------------------------------------------------- The U.S. Trustee for Region 21 appointed Linda Leali, Esq., as Subchapter V trustee for Anciom, LLC. Ms. Leali will be paid an hourly fee of $450 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Leali declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Linda M. Leali Linda M. Leali, P.A. 2525 Ponce De Leon Blvd., Suite 300 Coral Gables, FL 33134 Telephone: (305) 341-0671, ext. 1 Facsimile: (786) 294-6671 Email: leali@lealilaw.com About Anciom LLC Anciom, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-14970) on May 1, 2025, listing between $50,001 and $100,000 in assets and between $500,001 and $1 million in liabilities. Judge Peter D. Russin presides over the case. Rachamin Cohen, Esq., represents the Debtor as legal counsel. ANTERO RESOURCES: Moody's Alters Outlook on 'Ba1' CFR to Positive ----------------------------------------------------------------- Moody's Ratings changed Antero Resources Corporation's rating outlook to positive from stable and concurrently affirmed the company's Ba1 Corporate Family Rating, Ba1-PD Probability of Default Rating and Ba1 senior unsecured notes rating. Antero's SGL-1 Speculative Grade Liquidity rating was unchanged. "The positive outlook reflects Moody's expectations that management will continue to maintain conservative financial policies, generate significant free cash flow and reduce additional debt in 2025 to further strengthen Antero's credit profile," said Sajjad Alam, Moody's Ratings Vice President. RATINGS RATIONALE Antero exhibited good resilience during the 2023-24 US gas market downturn attributable to its reduced debt levels, improved capital efficiency, and growing NGL production. Despite hedging very little in 2024, the company successfully maintained production and generated free cash flow in a year when Henry Hub saw its second lowest average price in the last 25 years. If gas prices average above Moody's assumed $3/MMBtu level in 2025, Antero will generate significantly more free cash flow and achieve its debt reduction goals sooner. Moody's expects US gas prices will remain well-supported by solid domestic and international demand fundamentals. While domestic NGL prices fell in early-2025 owing to tariff and trade related uncertainties, Antero's ability to sell half of its NGLs in higher value export markets and having 90% of NGL volumes sold under firm sales contracts, should mitigate price risks. These supportive fundamental conditions for natural gas offset some of the broader macroeconomic concerns arising from US tariff and trade policy, which combined with management's stated intention to further reduce debt support the positive outlook. Antero's Ba1 CFR reflects its low and declining debt level; enhanced operating and drilling efficiency that should support production with lower levels of capital; and consistently conservative financial policies in recent years, which have improved the company's capacity to endure industry volatility. The ratings are supported by Antero's substantial natural gas production and reserves in the Appalachia region, considerable NGL production that offers commodity diversification and enhances profit margins, and its capability to sell gas in higher value markets through a diversified portfolio of firm-transportation (FT) contracts. The CFR also considers Antero's significant ownership and control of Antero Midstream Partners LP (AM, Ba2 positive), which had a market capitalization of about $8.7 billion as of May 12, 2025. Antero's key credit risks are its singular geographic concentration in Appalachia, shale focused operations that necessitate ongoing investments, exposure to volatile energy prices, and high midstream costs relative to other Appalachian gas producers because of its substantial FT costs and processing fees. The credit profile also considers AM's substantial debt, which Moody's consolidates into Antero's financial metrics for analysis purposes. Although Antero owns 29% of AM, the two companies are highly integrated with nearly all of AM's revenues coming from Antero, and Antero has significant influence over AM's operational and financial decisions. Antero's reduced debt levels and improved capital efficiency have strengthened its ability to manage future carbon transition risks. Global initiatives to limit adverse impacts of climate change will constrain the use of hydrocarbons and accelerate the shift to less environmentally damaging energy sources. Compared to historical experience, Moody's expects future profitability and cash flow across the E&P sector to be more volatile. Consequently, Antero's financial performance will vary through natural gas price cycles. However, Antero benefits from being a natural gas producer, given Moody's expectations that natural gas demand will continue to grow longer than oil, though both commodities will face demand peaks followed by gradual declines over time. The SGL-1 rating indicates Antero's very good liquidity through 2026. Management intends to use a substantial portion of the projected 2025 free cash flow to repay the remaining $300 million revolver debt reported at the end of the first quarter of 2025. As of March 31, 2025, Antero had $1.33 billion available under its $1.65 billion committed revolver, expiring in July 2029. The company can easily comply with the 65% debt to capitalization covenant stipulated in the revolving credit agreement. Management will prioritize further debt reduction before increasing share repurchases under the $2 billion authorized share repurchase program, which had $1 billion in remaining buyback capacity as of March 31, 2025. Antero's senior unsecured notes are rated Ba1, at the Ba1 CFR level, to reflect an unsecured capital structure. Antero's senior notes and revolving credit facility are unsecured, rank pari passu and do not have guarantees from Antero's operating subsidiaries or Antero Midstream. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade could be considered if Antero can attain its near term debt reduction target while maintaining high levels of capital efficiency at mid-cycle prices. Specifically, Moody's would look for the RCF/debt ratio to be sustained above 50% on a consolidated basis (for Antero Midstream), and the leveraged full-cycle ratio above 2x for a potential upgrade. Antero's ratings could be downgraded if the RCF/debt ratio declines below 30%, the LFCR drops below 1.5x, or the company produces negative free cash flow. Antero Resources Corporation is a leading natural gas and natural gas liquids producer in the Marcellus and Utica Shales in West Virginia, Ohio and Pennsylvania. The principal methodology used in these ratings was Independent Exploration and Production published in December 2022. ATLAS MIDCO: S&P Downgrades ICR to 'CCC' on Liquidity Headwinds --------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on Atlanta, Georgia-based provider of contact center and workforce management software solutions Atlas Midco Inc. (dba Alvaria) to 'CCC' from 'CCC+'. S&P said, "We also lowered our issue-level ratings on Atlas Midco subsidiary Alvaria Holdco's first-lien first-out term loan, first-lien second-out term loan, first-lien second-out revolving credit facility, first-lien third-out term loan, and first-lien fourth-out term loan to 'B-', 'CCC', 'CCC', 'CC', and 'CC', respectively. "The negative outlook reflects Atlas Midco's sustained cash flow deficit, which is expected to persist into 2025 and 2026. It also reflects our view of the company's elevated risk of a liquidity crisis in 2026 once full cash service debt payments come into effect." Revenue and bookings have begun showing signs of stabilization, but broader operating performance recovery has lagged initial estimates. Following its security incident in 2023 and resultant customer losses arising from the event, Alvaria has continued to post year-over-year revenue declines, finishing fiscal 2024 with a 15% drop in revenues. While sales activity has come in below S&P's previous forecasts, and a business recovery has taken longer to materialize than originally expected, Alvaria's topline has shown early evidence of stabilization in its most recent print. The company finished 2024 with its first quarter of sequential revenue growth since March of 2023, and new product bookings grew for a second consecutive quarter in the same year as well, supported predominantly by install base expansion. S&P said, "Despite sales execution greenshoots, we expect Alvaria's cash flow deficit to persist this year and next, considerably reducing its liquidity cushion. While the company's debt restructuring provides it with covenant and partial payment-in-kind (PIK) interest relief, revenue losses and still-sizable cash interest requirements drove a larger free operating cash flow (FOCF) deficit than previously forecasted in fiscal 2024, near negative $54 million. This prompted additional revolver draws, and the company ended fiscal 2024 with $16 million of cash and $22 million of availability under its $75 million revolving credit facility. We expect sustained operating performance challenges to drive a subsequent cash flow burn of about $20 million this year, bringing total liquidity by the end of 2025 to $18 million. With full cash interest and covenant testing resuming in 2026, we believe there is a high likelihood that Alvaria will be unable to make its required debt service payments unless operating performance improves significantly, or without external support from its sponsors or additional relief from lenders. "The negative outlook reflects Atlas Midco's sustained cash flow deficit, which we expect will likely persist into 2025 and 2026. It also reflects our view of the company's elevated risk of a liquidity crisis in 2026 once full cash service debt payments come into effect.' S&P could lower its ratings if: -- Earnings deteriorate further as a result of weaker demand across key end markets; -- Free cash flow remains materially negative, and liquidity declines further; -- The company misses an interest payment; or -- It conducts a subsequent debt restructuring transaction, which S&P would likely view as distressed given its current liquidity profile and debt trading levels. S&P could raise its ratings if Alvaria's: -- Revenues and EBITDA increase more than our expectations on successful sales execution or a faster-than-anticipated end-market demand recovery; and -- Liquidity improves significantly on positive free cash flow generation such that it can pay down outstanding revolver balances. AVIS BUDGET: Moody's Rates New Senior Unsecured Notes 'B1' ---------------------------------------------------------- Moody's Ratings assigned a B1 rating to the new backed senior unsecured notes of Avis Budget Car Rental, LLC (Avis) and Avis Budget Finance, Inc. All other ratings of Avis are unaffected, including the Ba3 corporate family rating, the Ba1 backed senior secured rating and the B1 backed senior unsecured rating on the existing notes of Avis. The B1 backed senior unsecured rating on the existing notes of Avis Budget Finance plc are also unaffected. The outlook remains negative. The proceeds from the offering will be used for general corporate purposes, which may include repayment of indebtedness, including repayment of the $500 million floating rate term loan A maturing in 2025 and a portion of Avis' fleet debt. The Ba1 rating on the term loan A will be withdrawn if the facility is repaid in full. RATINGS RATIONALE The Ba3 corporate family rating reflects the competitive position that Avis holds in the car rental industry. Avis' revenue is diversified across on-airport and off-airport operations, leisure and corporate travel, and by geography. Strategically, Avis is intently focused on enhancing customer experience, operational efficiency, fleet discipline and the use of technology to advance its service offerings and operations. Despite its oligopolistic nature, the car rental market is highly competitive and poses several challenges. These challenges include the cyclical nature of the industry, imbalances between industry fleet levels and customer demand, a heavy reliance on capital markets to fund annual fleet purchases and the need to adapt to an evolving transportation landscape. Unfavorable conditions in the car rental market continue weighing on earnings due to lower revenue per day, higher depreciation on more costly vehicles and higher interest expense. Furthermore, prospects for continuing robust travel demand are uncertain amid weakening consumer confidence and a likely slowdown in US economic growth. Avis is accelerating its fleet rotation which caused an asset impairment and other charges of $2.5 billion in the fourth quarter of 2024, primarily to reduce the carrying value of the rental fleet. Moody's estimates that reduced depreciation and lower prices for new vehicles will restore Avis' pre-tax income margin to approximately 2.5% in 2025, recovering from a pre-tax loss in 2024. Debt/EBITDA will remain high at about 4.5 times by year-end 2025. The negative outlook reflects Moody's expectations that the recovery of Avis' margin and the deleveraging of its balance sheet will be protracted. The acceleration of the fleet rotation will lower depreciation expense but the full effect will not be realized until late 2025. Interest expense will remain high, funds available for debt reduction are likely limited and rental rates have yet to stabilize. Weakening travel demand could slow down the improvement in Avis' earnings. Moody's anticipates that liquidity will remain adequate, supported by a cash balance of at least $500 million and approximately $560 million of available borrowing capacity under the revolving credit facility as of March 31, 2025. The available capacity under the $2 billion revolving credit facility is limited by a large amount of letters of credit that provide support to the company's vehicle financing programs. Further, the ability for Avis to issue additional subordinated debt out of its vehicle financing programs narrowed following the issuance of new Class D asset-backed notes in January and December. Avis' ability to dispose used vehicles expeditiously remains critical when demand wanes to raise proceeds that can be deployed for repayment of the company's vehicle debt and other obligations. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The ratings could be upgraded with evidence that Avis manages its assets efficiently while industry fleet capacity and capital allocation remain disciplined. Metrics that would reflect such performance include pre-tax income as a percent of sales of at least 10%, EBITA/average assets of around 10% and debt/EBITDA below 3.25 times. Good liquidity is also a requirement for an upgrade, including prudent management of collateral in the company's vehicle funding programs. The ratings could be downgraded if Avis is unable to manage fleet utilization consistently at approximately 70%, if revenue per vehicle per day drops considerably, if Avis' ability to dispose vehicles becomes constrained or if there is a steep drop in used vehicle prices that would require Avis to increase collateral under its vehicle financing programs. Metrics that would contribute to a rating downgrade include pre-tax income as a percent of sales of less than 7.5%, EBITA/average assets of less than 7% or debt/EBITDA sustained above 4 times. The principal methodology used in this rating was Equipment and Transportation Rental published in December 2024. Avis Budget Car Rental, LLC is one of the world's leading car rental companies, operating under the Avis, Budget, and Zipcar brands in more than 10,000 rental locations worldwide. Revenue in 2024 was $11.8 billion. BECKER INC: Court Extends Cash Collateral Access to June 17 ----------------------------------------------------------- Becker, Inc. received approval from the U.S. Bankruptcy Court for the Western District of Kentucky, Louisville Division, to use cash collateral through June 17 in accordance with its agreement with PNC Bank, NA. The court authorized the company to use cash collateral to fund operating expenses and "adequate protection" payments in accordance with its budget. As protection, PNC Bank and other creditors that may assert interests in the cash collateral will be granted replacement liens on all of the post-petition property of the company that is similar to their pre-bankruptcy collateral. In addition, PNC Bank will receive a monthly payment of $4,395.42 as further protection. About Becker Inc. Becker, Inc. has two convenient superstore locations specializing in University of Louisville & University of Kentucky apparel, gifts, and accessories. Becker sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ky. Case No. 24-31386) on May 29, 2024, with up to $10 million in both assets and liabilities. Becker President John I. Becker signed the petition. Judge Charles R. Merrill oversees the case. The Debtor is represented by Charity S. Bird, Esq., at Kaplan Johnson Abate & Bird, LLP. PNC Bank, NA, as secured creditor, is represented by: Keith J. Larson, Esq. Morgan Pottinger McGarvey 401 South Fourth Street, Suite 1200 Louisville, KY 40202 Telephone: (502) 560-6785 kjl@mpmfirm.com BENGAL DEBT: Saratoga CLO Marks $1.9 Million Loan at 40% Off ------------------------------------------------------------ Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $1,950,000 loan extended to Bengal Debt Merger Sub LLC to market at $1,175,753 or 60% of the outstanding amount, according to Sartoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Term Loan to Bengal Debt Merger Sub LLC. The loan accrues interest at a rate of 3M USD SOFR+ 3.00% per annum. The loan matures on January 24, 2029. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About Bengal Debt Merger Sub LLC Bengal Debt Merger Sub LLC is engaged in the supply and distribution of beverage, food and tobacco in the U.S. BLUEBIRD BIO: Warns of Possible Bankruptcy as Buyout Faces Delay ---------------------------------------------------------------- Angus Liu of Fierce Pharma reports that Bluebird bio warns of Bankruptcy as shareholders stall and buyout deadline pushed again. Bluebird bio is once again urging shareholders to tender their shares as delays threaten the company's proposed sale to Carlyle and SK Capital. Due to insufficient shareholder participation, the buyers have extended their tender offer deadline to the end of May 28 (U.S. EDT), according to a securities filing Tuesday. The offer expired on May 12, 2025. While Carlyle and SK are legally able to extend the deadline as long as disclosure rules are met, Bluebird may not have the financial runway to wait much longer. On Friday, May 9, 2025, Bluebird issued a stark warning: without the acquisition, the company could face bankruptcy or liquidation. It noted that failure to close the deal would place it at significant risk of defaulting on existing loan agreements with Hercules Capital—an event that could lead to a shutdown. In such a scenario, shareholders are “extremely unlikely” to recover any of their investments, the report states. As of Monday, only about 2.5 million shares—roughly 25.6% of Bluebird's nearly 9.8 million outstanding shares—had been tendered. This falls well short of the 50% plus one share required to move forward with the acquisition. Originally announced on February 21, the deal offers $3 per share upfront, with the potential for an additional $6.84 per share through contingent value rights (CVRs) if sales of Bluebird’s three gene therapies—Zynteglo, Lyfgenia, and Skysona—reach $600 million within any 12-month period by the end of 2027. But with just $83.8 million in total revenue in 2024, achieving that milestone appears unlikely. Without the CVRs, the deal is valued at approximately $29 million, according to Fierce Pharma. Under the terms of its financing deal with Hercules Capital, Bluebird must close the acquisition by June 20 to avoid default. That deadline, originally April 25, 2025 may be extended twice under certain conditions. Some investors may be holding out for a better offer. In March, rival bidder Ayrmid floated a preliminary proposal at $4.50 per share. However, after three weeks of talks, Ayrmid failed to provide a binding bid or secure financing. In response, Bluebird's board unanimously reaffirmed its support for the Carlyle-SK deal in April, the report cite. According to its latest annual report, Bluebird expects its available cash—bolstered by cost-cutting efforts and a loan from Hercules—to last into the second quarter, which ends in June 2025, according to report. About bluebird bio, Inc. Headquartered in Somerville, Massachusetts, Founded in 2010, bluebird -- www.bluebirdbio.com -- is a leader in gene therapy, focused on developing treatments for severe genetic diseases, including sickle cell disease, B-thalassemia, and cerebral adrenoleukodystrophy. The Company has pioneered the transition of gene therapies from clinical studies to FDA-approved treatments, and it is scaling its commercial model to provide access to these therapies for patients, providers, and payers. With a deep commitment to patient communities and a strong focus on safety, bluebird bio continues to advance the field of gene therapy through innovative research and real-world application. BREWER MACHINE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Brewer Machine & Parts, LLC 504 Front Street Central City, KY 42330 Business Description: Brewer Machine & Parts, LLC manufactures woodworking and material handling equipment used in industries such as sawmills, pallet production, and cooperage. Based in Central City, Kentucky, the Company serves domestic and international markets including the U.S., Australia, Uruguay, and Saudi Arabia. Established in 1967, it offers both new and refurbished machinery. Chapter 11 Petition Date: May 15, 2025 Court: United States Bankruptcy Court Western District of Kentucky Case No.: 25-40336 Debtor's Counsel: Robert C. Chaudoin, Esq. HARLIN PARKER 519 E. 10th Street P.O. Box 390 Bowling Green, KY 42102-0390 Tel: 270-842-5611 E-mail: chaudoin@harlinparker.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Paul M. Kirtley as member. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/A7O54TA/Brewer_Machine__Parts_LLC__kywbke-25-40336__0001.0.pdf?mcid=tGE4TAMA BRIGHTVIEW LANDSCAPES: S&P Affirms 'B' ICR, Outlook Stable ---------------------------------------------------------- S&P Global Ratings affirmed all its ratings on BrightView Landscapes LLC, including its 'B' issuer credit rating. The stable outlook reflects its expectation that EBITDA margins will improve to the mid-11% area as the company gains from business initiatives. BrightView has sufficient cash flow generation and liquidity to support its capital allocation initiatives. S&P said, "The company recently announced its intention to allocate $100 million to share repurchases, which we expect it to prudently manage within our ratings expectation. We do not expect leverage to go above our downside threshold of 6x. The company also repriced its $738 million term loan in January which resulted in a price decrease of 50 basis points. We view this repricing as a credit positive as it resulted in a modest decrease in the company's interest expense and improved its liquidity position. We anticipate the company will generate about $45 million of free operating cash flow (FOCF) in 2025 and between $70 million to $75 million the next year." Positive cash flows, along with a cash balance of $141 million as of March 31, 2025, and full availability of its $300 million revolver supports its capital allocation initiatives without the need to raise new debt. High leverage and majority sponsor ownership constrains the rating. S&P said, "We expect leverage to remain above 5x in 2025 largely due to the preferred equity we treat as debt that offsets our forecasted profit growth. We do not expect meaningful debt reduction in the next year as we believe the company would use excess cash for business initiatives and shareholder returns. The company is majority owned by KKR Group Ltd and One Rock, which makes it likely that BrightView would return cash to shareholders." S&P said, "We forecast modest revenue growth from continuing operations in 2025, partly offset by lower snowfall revenue. Brightview divested its non-core U.S. lawns business and unwound its BES business, which resulted in about a $60 million revenue decline for first half 2025. We forecast these actions will mute reported revenue in the next year but expect pro forma revenue grows in the low-single-digit percent area in its maintenance segment. We believe revenue growth will continue in 2026 as the company benefits from a heightened focus on client initiatives that we think will lead to revenue increases. However, volatility in snowfall revenue remains a risk (about 8% of the company's revenue in 2024)." Brightview's profitability trends remain stable. S&P forecasts S&P Global Ratings-adjusted EBITDA margins will improve to the mid-11% area as the company benefits from its "One BrightView" initiatives. The company is streamlining operations, modernizing its fleet to increase efficiency, and investing in its employees to reduce turnover. These efforts are expected to improve customer retention, and in turn result in sustainable profitable growth that will increase its market share. The stable outlook reflects S&P's expectation that performance will modestly improve as the company streamlines operations and invests in business growth. S&P could lower its rating on BrightView over the next 12 months if leverage exceeds 6x and FOCF to debt falls to the low-single-digit area on a sustained basis. This would occur if: -- The company is unable to pass on labor and materials cost increases, causing margins to contract; -- BrightView's controlling owners prompt the company to undertake material debt-funded acquisitions, shareholder distributions, or share buybacks; or -- High working capital outflows and elevated capital expenditures (capex) hurt cash flow generation. S&P could consider an upgrade if it believes leverage will improve to and remain below 5x and FOCF to debt improves to the high-single-digit area. This could occur due to higher-than-anticipated demand in landscaping services and benefit from acquisitions. The company would also need to maintain a cushion in its credit metrics for weather- and business-related volatility. BTG TEXTILES: Gets Court OK to Use TAB Bank's Cash Collateral ------------------------------------------------------------- BTG Textiles, Inc. got the green light from the U.S. Bankruptcy Court for the Central District of California to use cash collateral in accordance with its agreement with TAB Bank. The order penned by Judge Vincent Zurzolo authorized the company's interim use of cash collateral until Aug. 31 in accordance with its budget. As protection, TAB Bank will receive a monthly payment of $112,766.68, starting on June 1 in accordance with the agreement. About BTG Textiles Inc. BTG Textiles Inc. is a Montebello, California-based textile manufacturer and distributor. Founded in 1988, the company manufactures and distributes textile products to healthcare facilities, institutional laundries, janitorial services, and hospitality businesses. BTG operates manufacturing facilities in Bangladesh, Portugal, and Pakistan, maintaining its principal place of business at 710 Union Street in Montebello. BTG Textiles Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10548) on January 25, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Judge Vincent P. Zurzolo handles the case. The Debtor is represented by Michael Jay Berger, Esq., at Law Offices of Michael Jay Berger, in Beverly Hills, California. TAB Bank, as secured creditor, is represented by Michele S. Assayag, Esq. and Byron B. Mauss, Esq. at Snell & Wilmer L.L.P. BURFORD CAPITAL: Moody's Ups CFR to Ba1 & Alters Outlook to Stable ------------------------------------------------------------------ Moody's Ratings has upgraded to Ba1 from Ba2 Burford Capital Limited's (Burford) corporate family rating and the backed long-term senior unsecured ratings of subsidiaries Burford Capital Finance LLC, Burford Capital PLC and Burford Capital Global Finance LLC. The outlook for Burford and its subsidiaries was also changed to stable from positive. RATINGS RATIONALE The ratings upgrades are based on Burford's cumulative record of earnings growth and strong profitability, well managed liquidity position and strong capital position considering the wide-ranging returns and equity-like risk characteristics of the company's legal finance investments. Burford has a leading competitive position in legal finance, mainly from providing capital to corporations and law firms to fund commercial litigation costs. Burford also earns income from its management of funds and from other services. Burford's credit challenges include the unique risk and return profile of its capital provision assets, including their illiquidity and uncertain valuations; and the irregular timing of its capital deployments and realizations, resulting in higher earnings and cash flow volatility than most specialty finance companies. Burford reported strong consolidated revenues and net earnings in the first quarter of 2025 of $118.9 million and $36.9 million, respectively, compared to $44 million and ($17.5) million in the first quarter of 2024, illustrating the high performance variability that is typical of the company's business. The company's consolidated capital provision assets totaled $5.3 billion as of March 31, 2025, up slightly from $5.2 billion as of 31 December 2024. Excluding consolidated assets managed for third parties, Burford-only capital provision assets totaled $3.6 billion at March 31, 2025 and earnings totaled $30.9 million, resulting in a strong ratio of annualized net income to average total assets of 2.7%. Considering Burford's overall performance record, Moody's expects that the company will continue to add to its strong cumulative investment returns over time, though periodic performance will reflect the uncertain timing and magnitude of its realizations and cash flows. Burford's capital provision assets produce wide-ranging outcomes, from total loss to returns on invested capital in excess of 500%, though returns this lofty are infrequent. Since its inception in 2009, Burford has accumulated $3.5 billion of realizations (Burford-only) from its deployed capital, representing a strong 83% aggregate return on invested capital and 26% aggregate annualized internal rate of return. Capital provision assets have a weighted average life of 2.6 years, but the actual life of individual assets varies widely across the portfolio and can be difficult to predict, given the multiple possible realization paths and timelines, including for settlement and adjudication. Burford has a material concentration in one investment known as the YPF-related assets, which are two claims relating to the Republic of Argentina's nationalization of YPF S.A., the Argentine energy company. The Burford-only YPF-related assets totaled $1.5 billion at March 31, 2025, representing 42% of total Burford-only capital provision assets and 63% of Burford-only equity, a significant concentration. However, Burford has already received a return of more than double its $106 million deployed costs on these assets as of March 31, 2025 through a sale of interests to third-parties; realization of the YPF-related investments is pending resolution of court appeals. Burford manages its liquidity effectively by maintaining strong cash balances, moderate leverage, and by avoiding large debt maturity concentrations. These liquidity characteristics help to offset the volatility of returns and uncertain return timelines of its capital provision assets. Burford-only cash and marketable securities totaled $548 million at March 31, 2025 and receivables (due from settlements) were $103 million, resulting in a strong liquidity position considering debt maturities of $123 million over the next 12 months (August 2025). Burford-only undrawn legal finance commitments are significant in relation to the company's liquidity sources, totaling $1.5 billion at March 31, 2025, $794 million of which are definitive. However, commitments are funded over a number of years and in the meantime the company is expected to generate cash flow from asset realizations that will mostly fund deployments. In Moody's views, the absence of an unsecured revolving credit facility to both diversify and bolster the company's liquidity is a credit challenge, particularly given the company's growth and less-predictable cash flows. Considering the risk characteristics of its litigation finance investments and its performance history, Burford maintains a strong capital position. The Burford-only ratio of tangible common equity to tangible managed assets was a healthy 51% at March 31, 2025, which is higher than the majority of finance companies. Notably, 54% of the Burford-only capital provision assets as of March 31, 2025 represent unrealized gains, reflecting Burford's own assessment of realizable asset values using proprietary models and historical experience; excluding unrealized gains associated with the YPF-related assets, unrealized gains on the remaining portfolio is about 25%. After considering sensitivity analysis regarding potential outcomes, Moody's believes that Burford's capital position provides material cushion for the variability in the performance and carrying values of its assets. Furthermore, Burford is able to allocate investments to its managed funds to help manage its capital and liquidity. Burford's outlook is stable based on Moody's expectations for continued strong performance, moderate leverage and effective liquidity management. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade Burford's ratings if the company: 1) demonstrates strong management of inherently volatile investment income, including by maintaining a diverse investment portfolio and low investment concentrations; 2) further diversifies funding and liquidity resources while maintaining low leverage, including obtaining an unsecured revolving credit facility; and 3) accumulates a further record of strong earnings and cash flow performance. Moody's could downgrade Burford's ratings if the company: 1) increases risks to earnings and cash flow by increasing investment concentrations or investments in legal matters that pose higher risk of loss; 2) realizes materially weaker returns compared to historical performance; 3) reduces liquidity coverage; or 4) materially increases leverage. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Finance Companies published in July 2024. CABLE ONE: S&P Downgrades ICR to 'BB-', Outlook Negative -------------------------------------------------------- S&P Global Ratings lowered all ratings on U.S. cable operator Cable One Inc. by one notch, including the issuer credit rating to 'BB-' from 'BB'. The negative outlook reflects the potential that S&P will further tighten its thresholds for the company if its earnings trajectory remains significantly negative. Cable One Inc. faces heightened competition from fiber-to-the home (FTTH) and fixed wireless access (FWA) providers, which has pressured its earnings and kept leverage elevated above its downgrade trigger. The downgrade reflects that Cable One's leverage will remain elevated at about 4x through 2026 despite the suspension of its dividend. S&P revised its forecast to account for the company's lower residential broadband earnings, given the 8.5% year-over-year decline in its EBITDA in the first quarter of 2025, which caused its last-quarter annualized debt to EBITDA to remain at 4.3x. Heightened fixed wireless and fiber-based services competition is negatively affecting the cable industry, which -- in Cable One's case -- is being compounded by its high average revenue per unit (ARPU) and lack of mobile services to bundle with its broadband offering. The company had emphasized profitability over market share for many years, which has contributed to residential broadband ARPU that is one of the industry's highest. While the company has shifted its strategy from emphasizing profitability over market share, S&P believes it could be challenging for Cable One to stabilize its ARPU, which declined by about 3% year over year in the first quarter of 2025. In addition, the company lost about 10,000 residential high-speed data (HSD) subscribers during the quarter. Notwithstanding that some of these losses were related to one-time events (billing migration activities and weather-related events), S&P believes elevated FWA competition has limited Cable One's ability to take share from DSL because some customers are opting for cheaper FWA service instead of cable. S&P said, "We now expect the company's earnings will decline by about 5% in 2025, which we revised down from our previous estimate for 1% growth, due to the weakness in its residential revenue driven by 2%-3% declines in broadband and 14%-16% declines in video and voice amid ongoing secular declines. In 2026, we believe Cable One's organic earnings will decrease on a 2%-3% drop in its broadband revenue as its customer additions remain pressured by elevated FWA competition." Cable One's high broadband ARPU will likely limit the expansion of its residential broadband revenue over the near term. While the company's residential broadband ARPU has declined to $78.84, from a high of $85.69 in 2023, it remains elevated relative to that of its cable incumbent peer Charter Communications (ARPU of about $69) and FTTH competitor AT&T (ARPU of about $72), which will make it difficult for it to improve its ARPU over the near term. S&P said, "In addition, we believe the company's FWA competitors now offer their services in all of its markets at lower prices, typically about $50 per month or $35 if bundled with mobile service. Cable One has responded by introducing new low-priced options, such as Flex Connect for $45 per month for 300 Mbps, to increase its customer additions. However, this could potentially offset the ARPU gains from the company's ancillary services, such as SecurePlus (a suite of security-focused products). Furthermore, we believe Cable One's new low-priced offering entails some risk of repricing its existing base, which would lead to further declines in its ARPU and broadband revenue." Cable One's limited product diversity makes it more susceptible to competitive pressures. The company does not offer mobile wireless, which leaves it little room to differentiate itself from its FTTH and FWA competitors. Therefore, we believe Cable One's ability to increase its earnings will be limited over the longer term. S&P believes FTTH competitors, such as AT&T, will take market share because they also offer very fast data speeds, which could increase the company's churn. Furthermore, Cable One is not as well positioned as its larger peers Comcast Corp. and Charter Communications Inc. to effectively defend against FTTH competition, given its scale disadvantage and limited financial flexibility to profitably bundle mobile service (via a mobile virtual network operator [MVNO] agreement) with its in-home broadband product. S&P said, "We believe Cable One can reduce its leverage in 2025. We believe the company will generate free operating cash flow (FOCF) of about $250 million this year, which will likely enable it to deleverage by about 0.1x-0.2x in 2025. Combined with Cable One's previously announced monetization of select investments and suspension of its dividend, we believe that its leverage could reach about 4x this year. Still, the company is obligated to acquire the remaining 55% equity stake in Vyve from GTCR that it does not already own, which will likely cause its leverage to remain in the low- to mid-4x range through 2026. "The negative outlook on Cable One reflects the potential that we could further tighten our thresholds if its earnings trajectory remains significantly negative." S&P could lower its rating on Cable One if: -- Its EBITDA continues to contract by the mid- to high-single digit percent range, which would likely stem from declining ARPU and further residential broadband losses; or -- The company completes a debt-financed acquisition that pushes its leverage above 4.5x on a sustained basis. S&P could revise its outlook on Cable One to stable if: -- It stabilizes its ARPU and broadband subscriber trends such that it limits its earnings declines to the 1%-3% range; and -- Demonstrates that it can accommodate the Vyve acquisition and maintain leverage of below 4.5x on a sustained basis. CADUCEUS PHYSICIANS: No Patient Care Concern, PCO Report Says ------------------------------------------------------------- Stanley Otake, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the Central District of California his third report regarding the quality of patient care provided by Caduceus Physicians Medical Group. On November 8 and December 16, 2024, PCP performed site inspections on the Caduceus Practices. All sites were inspected, and all were compliant with health and safety requirements. Previous concerns regarding expired medications were addressed and none were found on inspections of exam and treatment rooms. The PCO reviewed staff scheduling reports and is satisfied that staffing meets patient volume and acuity requirements. He was informed of the relocation of certain services in the Yorba Linda office and has no concerns regarding impact to patient care by the changes made. The PCO observed that all facilities appeared to have ample supplies and medications. Review and discussions related to negative social media postings were conducted and the PCO is satisfied with the feedback regarding patient complaints. Mr. Otake noted that the sales process identified a potential buyer that recently dropped its purchase offer. The bankruptcy proceedings combined with the uncertainty of future potential employment has made it difficult for Caduceus to recruit and retain staff. While this situation has yet to impact quality of care, the PCO is monitoring this situation to ensure that it does not become more problematic than it is currently. The PCO finds that the care being provided to the patients of Caduceus' practice is within the standard of care in the community. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=nIzvZy from PacerMonitor.com. The ombudsman may be reached at: Stanley Otake 225 N. Deerwood Street Orange, CA 92869 562-225-1934 Email: ucla1000@aol.com About Caduceus Physicians Medical Group Caduceus Physicians Medical Group, a Professional Medical Corporation, d/b/a Caduceus Medical Group, is a physician owned and managed multi-specialty medical group with locations in Yorba Linda, Anaheim, Orange, Irvine, and Laguna Beach. It specializes in primary care, pediatrics, and urgent care. Caduceus Physicians Medical Group and Caduceus Medical Services, LLC, filed Chapter 11 petitions (Bankr. C.D. Cal. Lead Case No. 24-11946) on August 1, 2024. The petitions were signed by CRO Howard Grobstein. At the time of the filing, Caduceus Physicians reported $1 million to $10 million in both assets and liabilities while Caduceus Medical reported up to $50,000 in both assets and liabilities. Judge Theodor Albert presides over the cases. David A. Wood, Esq., at Marshack Hays Wood, LLP, is the Debtors' legal counsel. Stanley Otake is the patient care ombudsman appointed in the Debtor's Chapter 11 case. CALUMET INC: S&P Affirms 'CCC+' ICR on Near-Term Refinancing Risks ------------------------------------------------------------------ S&P Global Ratings affirmed all its ratings on Calumet Inc including its 'CCC+' issuer credit rating (ICR), 'B' issue-level rating on its senior secured debt, and 'CCC+' issue-level rating on its unsecured debt. S&P's recovery ratings of '1' and '3' on the senior secured debt and unsecured debt, respectively, are unchanged. The negative outlook reflects near-term refinancing risks, particularly on its April 2026 notes, and the lack of certainty of a sustained renewable fuels market recovery to support performance improvements at Montana Renewables (MRL). The company's April 2026 notes remain current and result in elevated refinancing risk. The company has recently put out redemption notices for $150 million of its outstanding $354 million unsecured notes due April 2026, but the remaining balance of about $204 million remains current. S&P believes there is a high likelihood the company will need to refinance at least some portion of the remaining balance over the coming quarters as internal liquidity could be stretched. Based on management's latest public statements, the company plans on using internal cash flows, proceeds from a planned monetization of MRL, among other levers, to achieve a meaningful reduction in debt in the medium term. S&P said, "We believe that such avenues could continue to take time to transpire especially due to uncertainties in the renewable fuels market, which would further raise refinancing risks in the near term for the April 2026 notes, January 2027 notes, and its ABL facility that matures in January 2027. Such refinancing risks could be exacerbated if operating performance is weaker than we expect for 2025 as a result of delayed market recovery or if Calumet is ultimately required to meet its renewable identification numbers (RINs) obligations (which we do not assume Calumet will have to meet in our base case)." Persistent weakness in the renewable fuels industry depressed consolidated earnings in 2024, with some expected improvements in 2025 subject to uncertainties in the regulatory environment. S&P said, "Calumet's credit metrics in 2024 deteriorated more than our expectations largely driven by slower economic activity, continued normalization of fuel cracks, and a drastically weaker RIN pricing environment. This was offset by operational cost improvements at the company such that at MRL, operating costs including selling, general, and administrative expenses have reduced to about $0.7/gallon by year end from about $1.3/gallon earlier in the year. An improvement in D4 RIN prices thus far in 2025, coupled with earlier cost improvements, has helped Calumet's margins in the first quarter of 2025 but we still forecast weaker EBITDA in 2025 and 2026 compared to our previous assumptions. On the other hand, Calumet's specialties portfolio has performed better with strength in volumes and relatively stable, albeit moderating from past peaks, margins per barrel. We expect a year-over-year improvement in Calumet's EBITDA in 2025 largely attributable to the MRL business with better pricing from earlier troughs, an improved cost structure and steady throughput levels. At the same time, we note uncertainties in the renewable fuels margin environment with certain matters outside of the company's control such as RIN pricing affected by RVO obligations set by the Environmental Protection Agency (EPA) and outlook for renewable tax credits. We project the company's weighted-average S&P Global Ratings-adjusted debt to EBITDA ratio to trend between 9x-10x and weighted-average funds from operations (FFO) to debt to be between 2%-4%." The Department of Energy (DOE) loan and reduced capital expenditure (capex) estimates positively affect Calumet's free cash flow. MRL recently entered into a loan guarantee agreement (LGA) for a $1.44 billion guaranteed loan facility of 15 years aimed at funding the expansion of MRL's renewable fuels operations, particularly for sustainable aviation fuel (SAF). The loan carries interest at the U.S. treasury 15-year rate plus 0.375%, with servicing of principal and interest deferred until the expansion project is commissioned, which could take four years. The first tranche of $782 million was disbursed in February 2025 and replaced all of MRL's existing, more expensive third-party debt while the second tranche is in the form of a delayed-draw construction facility. The company aims to increase its annual SAF production capabilities from the current 30 million gallons level to 300 million gallons, and roughly half of the project cost will be funded through the second tranche. Despite the stated ultimate target, S&P's base case assumes SAF capacities will reach 150 million gallons by mid-2026 and it will update its assumptions once S&P has more certainty around the project's execution and associated spending requirements for the next phase. S&P said, "Based on management's public statements, we now expect the first step up in SAF capacities to cost significantly less than initial expectations. Coupled with much lower debt servicing requirements following the retirement of MRL's existing third-party debt, we expect these developments to offset a significant portion of our weaker EBITDA expectations and still result in positive free cash flows for Calumet, with FOCF to debt in the low-single-digit percentage area in 2025." The company remains subject to potential RINs obligations, which could lead to a deterioration in credit metrics and liquidity. The company has been exempted from paying RINs in the past because certain of its refineries have been granted small refinery exemptions (SRE) by the EPA under its renewable fuels standard (RFS) program. S&P said, "While we note the EPA's denial for recent prior-year exemption applications, our base case assumes the company will continue to appeal against these decisions and avoid paying them in the near term via litigations and court stays. We also note there have been certain court rulings in favor of the company and against the EPA's denials. However, it is unclear what the ultimate resolutions will be, and in a scenario where Calumet has to settle against its RINs compliance requirements, its liquidity and credit measures could be pressured depending on the amount of obligations and the payout mechanism. We may revisit our rating on the company as a result." As of March 31, 2025, reported obligations amounted to around $363 million. S&P does not currently add these obligations to its adjusted debt balances, although this could change if the likelihood of payments by the company increases. S&P said, "The negative outlook on Calumet reflects risks to our rating on financial, regulatory environment, and operational execution fronts. We note the company has unsecured notes due April 2026 that are current. The company recently announced it will partially redeem the notes, but the path the company takes to address the remaining maturity is unclear despite significant interest cost savings with the DOE loan facility. We also note other near-term maturities in January 2027 for the $325 million unsecured notes and the ABL facility—both of which the company would need to address in due course." While the MRL facility has reached a steady state of throughput and its operating costs per gallon have improved across 2024, very weak pricing compressed its margins and resulted in S&P Global Ratings-adjusted debt-to-EBITDA of about 10.5x. Calumet's margin profile in the near term will likely remain subject to industry supply and demand dynamics and the regulatory policy environment for renewable fuels. With consistent throughput levels and a sequentially better margin profile in 2025, S&P expects Calumet's S&P Global Ratings-adjusted debt to EBITDA to approach 8x by the end of 2025, leading to an overall weighted-average metric of between 9x-10x. A key underpinning assumption at the current rating is that in S&P's base-case scenario, based on past rulings and conversations with the company, it assumes Calumet will not have to pay against its RINs obligations in the next 12 months. S&P could downgrade Calumet in 2025 if: -- The company is unable to refinance its 2026 notes maturity; -- The company executes a debt restructuring or debt exchange transaction which S&P views as distressed; -- The company faces unexpected operational disruptions, or end-market demand or margins are weaker-than expected leading to a deterioration in liquidity, persistent negative free cash flows, or S&P Global Ratings-adjusted debt to EBITDA approaches the mid-teens-digit area on a sustained basis; or -- Due to ongoing litigation, the company is deemed obligated to meet significant RIN obligations by purchasing RINs, thus pressuring the company's liquidity position. S&P said, "We could take a positive rating action on Calumet over the next 12 months if the company addresses its 2026 notes maturity and alleviates the looming maturity risk. This could happen if there is materially stronger free cash flow generation leading up to the maturity, a successful equity sale or initial public offering (IPO) at MRL occurs, or the company raises other external funds. Consistent with our previous assumptions, while the MRL monetization plan is still in process, we do not consider its materialization in our base case over the next 12 months. "In addition to the above, before considering a positive rating action we would expect the company's S&P Global Ratings-adjusted debt-to-EBITDA ratio to approach 8x on a weighted average basis and FOCF to be consistently positive. In such a scenario, we would also expect the company to address the maturities on the $325 million notes and the ABL facility—both of which are scheduled to become current in January 2026—before they become current." CAREERBUILDER LLC: Saratoga CLO Marks $4 Million Loan at 95% Off ---------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $4,089,659 loan extended to CareerBuilder, LLC to market at $204,483 or 5% of the outstanding amount, according to Sartoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Term Loan B3 to CareerBuilder, LLC. The loan accrues interest at a rate of 1M USD SOFR+ 2.50% per annum. The loan matures on July 31, 2026. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About CareerBuilder, LLC Careerbuilder, LLC operates an online job portal. The Company offers job postings, standard job optimization, employment recommendation e-mails, branding, talent and compensation intelligence, and recruitment services. CAROLINA'S CONTRACTING: Baker Donelson Advises Komatsu & HomeTrust ------------------------------------------------------------------ The law firm of Baker, Donelson, Bearman, Caldwell & Berkowitz, PC filed a verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure to disclose that in the Chapter 11 case of Carolina's Contracting, LLC, the firm represents: 1. Komatsu Financial Limited Partnership; and 2. HomeTrust Bank Komatsu is a secured creditor of the Debtor based on certain pre petition obligations secured by equipment used in the Debtor's business operations. HomeTrust is a secured creditor of the Debtor based upon certain pre-petition obligations secured by equipment used in the Debtor's business operations. Komatsu and HomeTrust, and the respective collateral securing the pre-petition obligations of each, have no relationship to one another. No conflicts arise out of Baker Donelson's representation of Komatsu and HomeTrust in this Chapter 11 case. Komatsu and HomeTrust are aware of Baker Donelson's representation of multiple parties in the bankruptcy case. The law firm can be reached at: BAKER, DONELSON, BEARMAN, CALDWELL & BERKOWITZ, PC Jill C. Walters, Esq. 2235 Gateway Access Point Suite 220 Raleigh, North Carolina 27607 Telephone: 984.844.7919 E-mail: jwalters@bakerdonelson.com About Carolina's Contracting Carolina's Contracting LLC is a licensed general contractor based in Davidson, North Carolina, specializing in land development and grading services. Established in 2013, Company offers a range of services including grading, storm drainage, sanitary sewer, waterline installation, culverts, and stone base work. Carolina's Contracting sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. N.C. Case No. 25-50284) on April 28, 2025. In its petition, the Debtor reported total assets of $31,405,291 and total liabilities of $25,942,522. Judge Lena M. James oversees the case. The Debtor is represented by: Dirk W. Siegmund, Esq. Ivey, Mcclellan, Siegmund, Brumbaugh & Mcdonough, LLP Tel: 336-274-4658 dws@iveymcclellan.com CASTLE US: Moody's Affirms 'Caa2' CFR & Alters Outlook to Stable ---------------------------------------------------------------- Moody's Ratings affirmed Castle US Holding Corporation's (dba Cision) Corporate Family Rating at Caa2 following a restructuring debt exchange transaction. Concurrently, Moody's downgraded the Probability of Default Rating to D-PD from Caa2-PD. The PDR will be upgraded to Caa2-PD from D-PD in three business days. In addition, Moody's assigned B1 ratings to the company's newly issued $137 million priority senior secured first-lien first-out revolving bank credit facility, $233 million priority senior secured first-lien first-out term loan, EUR26 million priority senior secured first-lien first-out term loan; Caa2 ratings to the company's new $1,046 million priority senior secured first-lien second-out term loan, $260 million priority senior secured first-lien second-out incremental term loan, EUR432 million priority senior secured first-lien second-out term loan, and Ca ratings to the new $272 million priority senior unsecured first-lien third-out notes. Finally, Moody's affirmed the Ca rating on the remaining $1 million of the company's senior unsecured notes, which did not participate in the exchange. Moody's will withdraw the ratings for Cision's recently exchanged senior secured bank credit facilities. The outlook changed from negative to stable. Cision is a Chicago-based provider of database tools and software to public relations and communications professionals. The rating actions reflect Moody's views that the transaction was a distressed exchange, which is a default under Moody's definition given the substantial economic losses incurred by the lenders. The rating actions also reflect the company's high governance risks, a key ESG consideration, elevated financial leverage, and Moody's views that the risk of default remains high in a potentially unsustainable capital structure. Although the exchange has extended maturities significantly to 2030, and the company has sufficient liquidity to cover operational cash flow deficits for the next 12 - 15 months, there is a high likelihood of another default event. The company continues to experience operational challenges, including revenue declines, and continues to sustain very high debt financial leverage, which Moody's expects will result in negative free cash flow over the next 12-18 months. RATINGS RATIONALE Cision's Caa2 CFR is constrained by the company's high debt/EBITDA at 8.5x as of December 31, 2024 (or roughly 10.0x when accounting for capitalized software), and a weakening liquidity profile. Moody's anticipates that financial leverage will remain high, around 9.0x over the next 12 to 18 months due to softness in top-line growth. The company's credit quality is further strained by its vulnerability to financial market cyclicality and intense competition, given its niche focus on providing software and related services to public relations and communications professionals worldwide. Moody's expects no revenue growth in 2025, driven by lower-than-expected merger, acquisition, and financial transaction activities within PR Newswire, due to economic uncertainty, ongoing softness in the Insights and Brandwatch segments, and a decline in CommsCloud's performance as customers transition to the new CisionOne platform, somewhat offset by pricing initiatives and new client wins. A material improvement in free cash flow and financial leverage remains unlikely, given Cision's elevated interest expense burden, which will persist, especially if interest rates do not fall quickly. The company faces around $200 million in interest expense based on the new capital structure and low interest coverage, calculated as EBITDA minus capital expenditures to interest expense, hovering below 1x. All financial metrics cited reflect Moody's standard adjustments. The ratings are supported by the company's leading market position in the public relations software and database niche markets, and its recurring revenue profile from software-as-a-service subscriptions that limit revenue volatility. Moody's anticipates that profitability will remain solid, though slightly lower than historical levels, with EBITDA margins around 29%. While Moody's expects modest improvements in profitability driven by cost-saving measures and price increases, leverage is projected to remain around 9.0x over the next 12 to 18 months, likely necessitating some reliance on its revolving credit facility during this period. By extending its debt maturities to 2030, Cision gains additional time to implement new strategies aimed at improving its performance, but the company will need to improve top line growth substantially to reduce financial leverage and improve cash flow generation. Moody's expects that Cision will maintain an adequate liquidity profile over the next 12 to 15 months. Liquidity is supported by around $100 million in cash pro forma for the new capital structure as of December 31, 2024, and $110 million available under its new $137 million revolving credit facilities expiring in April 2030. Given the company's substantial floating interest burden of around $200 million, Moody's anticipates negative cash flow in 2025 and 2026. Moody's believes internal sources of liquidity will be insufficient to cover basic cash obligations, including annual amortization of the new debt totaling about $20 million and capital expenditures. As a result, Moody's expects the company to continue to burn cash and rely on its revolver. Under the newly executed credit agreement, Castle is subject to a springing financial maintenance covenant with a first-lien first-out net leverage ratio of 6.0x, in effect when revolver utilization exceeds 40%. This agreement eliminates the previously required minimum liquidity covenant of $40 million. Moody's expects the company to maintain a good cushion against the covenant if tested given only first-out debt is included in the calculation. The B1 ratings on the company's new $137 million first-out revolving credit facility and $262 million first-lien first-out term loan (consisting of a USD$233 term loan and a EUR26 term loan), both expiring in April 2030, are four notches above Cision's Caa2 CFR. This reflects their super priority position in the capital structure, ahead of the new $1.8 billion second-out term loan (consisting of a US$1,046 term loan, a US$260 incremental term loan, and a EUR432 term loan) due in May 2030, which is rated Caa2, consistent with the company's CFR. The new $272 million first-lien third-out notes due in June 2031 and the remaining $1 million senior unsecured notes due in February 2028 (the most subordinated debt instruments due to more senior contractual priorities within Cision's capital structure) are both rated Ca, two notches below the CFR. In addition, the priority facilities are secured by a first-priority lien on all existing collateral and benefit from covenant tightening and liability management protections. The stable outlook reflects Moody's expectations that Cision will maintain very high financial leverage, with no revenue growth but solid EBITDA margins around 29% over the next 12 to 18 months. Moody's also anticipates that cash on the balance sheet and access to the revolving credit facility will offset the cash flow deficit during this period. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Cision demonstrates improvements in operating performance, such as revenue and profit growth, while enhancing cash flow generation and reducing financial leverage. The ratings could be downgraded if Cision experiences sustained operational weakness, increasing free cash flow deficits, deteriorating liquidity, increased refinancing risk, or if Moody's perceives the recovery prospects in the event of default could diminish. The principal methodology used in these ratings was Software published in June 2022. Castle US Holding Corporation (dba Cision), based in Chicago, IL, provides database tools and software to public relations and communications professionals, enabling users to identify and connect with media influencers, manage industry relationships, create and distribute content, monitor media coverage, perform advanced analytics, and measure the effectiveness of their campaigns. The company is controlled by an affiliate of the private equity sponsor Platinum Equity LLC. For the full year 2024, Castle generated revenue of $897 million. CASTLE US: Saratoga CLO Marks $1.9 Million Loan at 38% Off ---------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $1,929,894 loan extended to Castle US Holding Corporation to market at $1,192,520 or 62% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Term Loan B to Castle US Holding Corporation. The loan accrues interest at a rate of 3M USD SOFR+ 3.75% per annum. The loan matures on January 27, 2027. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About Castle US Holding Corporation Castle US Holding Corporation provides database tools and software to public relations and communications professionals. CCRR PARENT: Saratoga CLO Marks $962,000 Loan at 60% Off -------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $962,500 loan extended to CCRR Parent, Inc. to market at $399,438 or 40% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Term Loan B to CCRR Parent, Inc. The loan accrues interest at a rate of 3M USD SOFR+ 4.25% per annum. The loan matures on March 6, 2028. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About CCRR Parent, Inc. CCRR, with operating head offices in Ohio, is a temporary healthcare staffing agency providing nurses on assignments to hospitals and medical centers, including both traditional and fast response staffing, across the US. The company also supplies nurses during strikes and provides interventional cardiologists for rural and remote hospitals. CCRR is majority owned by Cornell and Trilantic Capital Partners. CCRR PARENT: Saratoga CLO Marks $980,000 Loan at 60% Off -------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $980,000 loan extended to CCRR Parent, Inc. to market at $395,263 or 40% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Term Loan to CCRR Parent, Inc. The loan accrues interest at a rate of 3M USD SOFR+ 4.25% per annum. The loan matures on March 6, 2028. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About CCRR Parent, Inc. CCRR, with operating head offices in Ohio, is a temporary healthcare staffing agency providing nurses on assignments to hospitals and medical centers, including both traditional and fast response staffing, across the US. The company also supplies nurses during strikes and provides interventional cardiologists for rural and remote hospitals. CCRR is majority owned by Cornell and Trilantic Capital Partners. CCS-CMGC HOLDINGS: Saratoga CLO Marks $1.1-Mil. Loan at 66% Off --------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $1,140,869 loan extended to CCS-CMGC Holdings, Inc. to market at $386,047 or 34% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Term Loan to CCS-CMGC Holdings, Inc. The loan accrues interest at a rate of 3M USD SOFR+ 5.50% per annum. The loan matures on September 25, 2025. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About CCS-CMGC Holdings, Inc. CCS-CMGC Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, provides health care services. CEC ENTERTAINMENT: Moody's Alters Outlook on 'B3' CFR to Negative ----------------------------------------------------------------- Moody's Ratings changed CEC Entertainment, LLC's outlook to negative from stable. Concurrently, Moody's affirmed the company's B3 corporate family rating, B3-PD probability of default rating, the B3 rating on the $650 million backed senior secured notes due May 2026 and the B3 rating previously assigned to the company's proposed $660 million backed senior secured notes offering. The change in outlook to negative reflects governance considerations particularly that CEC's entire capital structure is due within 12 months including its $650 million senior secured notes due May 2026 and, with the refinancing still incomplete, the revolving credit facility expiration springs to February 2026, 91 days prior to maturity of the senior secured notes. As CEC does not have sufficient cash on hand nor free cash flow to repay the notes in full, Moody's views its liquidity as weak and it is reliant on the capital markets to refinance. RATINGS RATIONALE CEC's ratings are supported by the company's moderately high leverage, generally stable demand for children's entertainment gatherings, its meaningful scale in terms of number of locations and good brand awareness from its 'Chuck E. Cheese' specialty venues. The rating is also supported by CEC's strong margins versus other rated restaurant operators driven by a high mix of entertainment and gaming offerings. The company completed its store remodeling program in 2024 and with the reduction in capital expenditures, Moody's expects positive free cash flow in 2025. The rating also reflects the company's modest Moody's adjusted EBIT/interest coverage, as well as some seasonality in earnings and geographic concentration in a few states. Moody's expects leverage to be moderate at under 5 times and coverage to be around 1x in the next 12 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade is unlikely given the negative outlook. However, the outlook could return to stable should CEC refinance its capital structure on economic terms with more longer dated maturities. An upgrade would also require steady operating performance and financial policy that supports Moody's-adjusted debt/EBITDA maintained below 5.5x and EBIT/interest maintained above 1.5x. An upgrade would also require good liquidity including positive free cash flow. Ratings could be downgraded if the company is unable to refinance in the very short term on economic terms. Other factors include a deterioration in earnings or weakening liquidity, including an inability to generate positive free cash flow. Quantitatively, a downgrade could occur should Moody's adjusted EBIT/interest coverage be sustained below 1.0x. Headquartered in Irving, Texas, CEC Entertainment, LLC owns, operates and franchises 563 Chuck E. Cheese and 109 Peter Piper Pizza locations that provide family-oriented dining and entertainment in 45 states and 17 foreign countries as of January 2025. The company owns and operates 509 venues and 163 are franchised. CEC is owned by a group that includes prepetition debt lenders. Revenue for the twelve-month period ended January 2025 was $870 million. The principal methodology used in these ratings was Restaurants published in August 2021. CHANDLER SOLUTIONS: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------------ The U.S. Trustee for Region 4 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Chandler Solutions, LLC. About Chandler Solutions Chandler Solutions, LLC filed Chapter 11 petition (Bankr. S.D. W.Va. Case No. 25-20075) on April 10, 2025, listing between $50,001 and $100,000 in assets and between $500,001 and $1 million in liabilities. Judge B. Mckay Mignault oversees the case. The Debtor is represented by: Joseph W. Caldwell, Esq. Caldwell & Riffee, PLLC 3818 MacCorkle Ave. S.E. Suite 101 Charleston, WV 25364-4427 (304) 925-2100 jcaldwell@caldwellandriffee.com CHAPMAN CBC: Case Summary & 18 Unsecured Creditors -------------------------------------------------- Debtor: Chapman CBC, LLC Chapman Crafted Chapman Crafted Beer Chapman Crafted Beer Company 123 N Cypress St Orange CA 92866 Business Description: Chapman CBC, LLC operates Chapman Crafted Beer, a brewery based in Old Towne Orange, California. The Company produces craft beer with a focus on flavor and freshness, using high-quality ingredients and traditional brewing methods. It emphasizes community engagement and aims to provide a distinctive local drinking experience. Chapter 11 Petition Date: May 14, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-11286 Judge: Hon. Mark D Houle Debtor's Counsel: Gregory K. Jones, Esq. STRADLING YOCCA CARLSON & RAUTH LLP 10100 N. Santa Monica Blvd., Suite 1450 Los Angeles CA 90067 Tel: (424) 214-7000 E-mail: gjones@stradlinglaw.com Total Assets as of March 31, 2025: $792,051 Total Liabilities as of March 31, 2025: $2,690,047 The petition was signed by Wil Dee as president. A copy of the Debtor's list of 18 unsecured creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/GUXYCHQ/Chapman_CBC_LLC__cacbke-25-11286__0002.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/QSA3UXY/Chapman_CBC_LLC__cacbke-25-11286__0001.0.pdf?mcid=tGE4TAMA CHARTER COMMUNICATIONS: S&P Affirms 'BB+' ICR, Outlook Stable ------------------------------------------------------------- S&P Global Ratings affirmed its 'BB+' issuer credit rating (ICR) on U.S.-based cable operator Charter Communications Inc., because S&P expects its S&P Global Ratings-adjusted debt to EBITDA will remain at, or slightly above, its 4x upgrade trigger for at least the next two years. S&P said, "The stable outlook reflects the company's increased cushion at the current rating, although we view its ratings upside as limited by leverage remaining around 4x inclusive of our adjustments, forecasted free operating cash flow (FOCF) to debt remaining below 10% over the next two years, and our view that shifting industry conditions as creates some uncertainty around its long-term earnings growth trajectory." Charter Communications announced it will acquire Cox Communications Inc. (CCI) for an enterprise value of $34.5 billion, which will cause its pro forma S&P-adjusted debt to EBITDA to remain about 4x. Charter will fund the acquisition in a leverage-neutral manner. The $34.5 billion purchase price (representing a 6.4x EBITDA multiple) includes roughly $12 billion of debt the company will assume from CCI, $4 billion of cash, and $6 billion of Charter preferred stock and common shares (CCI's shareholders will own roughly 23% of Charter on an as-converted, as-exchanged basis following the transaction). Charter's debt to EBITDA was about 4.1x for the 12-months ended March 31, 2025, thus incorporating CCI's roughly $5 billion of earnings will likely result in similar consolidated leverage including incremental $4 billion in assumed debt to fund the cash payment to CCI and preferred equity treated as debt-like. The company's S&P Global Ratings-adjusted debt to EBITDA will be modestly higher than management's calculation. Historically, Charter's S&P Global Ratings-adjusted leverage has closely mirrored its company-defined leverage metric. S&P said, However, the company's mobile business includes equipment installment plan (EIP) financing, which we treat as debt while management does not. As of March 31, 2025, Charter's EIP facility stood at $1.2 billion, which led to an about 0.06x difference between its S&P Global Ratings-adjusted leverage and its company-defined leverage. However, we expect this difference could increase as the company expands its mobile business and more customers buy handsets (many Charter customers brought their own devices initially). Secondly, we will likely treat the company's preferred stock as debt-like, which management does not include in its calculation, which could further the gap between the metrics by up to 0.2x." S&P said, "We expect Charter's S&P Global Ratings-adjusted debt to EBITDA will remain in the low-4x area for the next 2-3 years. Management has indicated that it plans to operate with leverage of between 4.00x and 4.25x for the 18 months prior to the close of the acquisition. Following the close of the transaction, the company will gradually reduce its leverage, though it could take 2-3 years for it to improve its debt to EBITDA to the middle of its new 3.5x-4.0 target range. Depending on our adjustments, this will likely cause Charter's S&P Global Ratings-adjusted leverage to remain slightly above 4.0x through 2027. "We expect FOCF to remain pressured by capital investments in 2025, before gradually improving thereafter. Charter is engaged in a network investment plan that includes line extensions, partly funded by government subsidies under the rural digital opportunity fund (RDOF) as well as network evolution to upgrade the existing plant to allow for multi-gigabit per second (Gbps) download speeds and 1 Gbps upload across its footprint. As a result, we expect Charter's stand-alone capital spending to peak around $12 billion in 2025 (21% of sales) before gradually approaching about $8 billion by 2028 (about 14%-15%). CCI is also investing in network upgrades such that is capex-to-revenue is also in the low-20% area and we envision a similar longer-term path toward mid-teen capex-to-revenue. Longer-term, there could also be moderate capex synergies between the companies. Therefore, we expect that FOCF-to-debt is likely to improve from about 4%-5% in 2025 to around 8%-9% by 2028. "We view the additional scale provided by the acquisition of CCI favorably but also recognize it is acquiring a modestly weaker business. The benefits of scale are important when negotiating with wireless operators, programming partners, and other vendors. The additional scale will also help the company expand its investments and innovation in mobile, video, advertising, and AI tools. "However, CCI has above-average broadband ARPU, which makes it more susceptible to new competition and has experienced greater subscriber losses than Charter. We believe that Charter may be able to offer a more-competitive mobile and video package to new customers in CCI's existing footprint. CCI was slow to launch a mobile service and has a much smaller customer base than Charter, thus we believe Charter could attract customers and improve its retention by scaling its mobile product across CCI's existing footprint. "We believe Charter has a leading strategic position relative to its peers. By applying its strategy to CCI, there is the potential that it can improve CCI's operating performance. Charter company has not raised its broadband prices as much as many of its peers, which better positions it to retain customers when new competition emerges. Furthermore, the company has been a leader in using low-priced mobile offerings to attract and retain broadband subscribers, which has helped improve its brand recognition and reduce its customer churn. Finally, Charter has led the way in negotiating more programming flexibility and streaming rights, which could help it ease its video subscriber loss trends, preserve its existing video profits, and retain broadband customers. The company's go-to-market strategy, coupled with its subsidized rural passings, will likely support industry leading broadband subscriber metrics in 2025. More specifically, we project about 200,000 broadband subscriber losses in 2025 and 2026, which represents slightly less than a 1% decline in its customer base (compared with its peers that average 2%-4% annual declines). "We believe the integration risks related to the transaction are moderate and will mostly stem from its pricing strategy and re-branding. The company's operating synergy expectations are modest at about $500 million (or about 6% of CCI total operating expenses). These synergies primarily relate to procurement and overhead savings, which we believe it will likely be able to achieve in the three years following the close of the acquisition. "The larger risk stems from re-branding CCI to "Spectrum" and unifying its pricing and packaging to be consistent with Charter's national go-to-market strategy. We note that CCI ha significantly higher broadband average revenue per user (ARPU) than Charter. Over time, we expect Charter will operate the combined business much the same as it operates currently. However, this could present a risk because it will have to reprice CCI's existing subscriber base down to better align with its the company's rates. Still, Charter has successfully managed large-scale acquisitions in the past, including the multi-year unification of its pricing and packaging with those of legacy Time Warner and Brighthouse. We believe that Charter will aim to sell more products to CCI customers to strengthen the customer relationship and offset lower product ARPU. "Competitive pressures remain intense industry-wide. Cable operators face challenges in gaining new customers because fixed wireless access (FWA) providers are taking the lion's share of gross new customer additions. FWA is offered at a low price point, is easy to install, and the speeds are fast enough for most consumers. Therefore, we expect continued elevated competition from FWA providers for at least the next two years and project their net customer additions will remain about 3.5 million per year through 2026. We also expect that fiber-to-the-home (FTTH) providers will cover about 65%-70% of Charter's footprint over the next 2-3 years, up from slightly above 50%, which will likely lead to some customer churn and make it more difficult for the company to attract new customers. "We do not expect to revise our recovery ratings on Charter's debt. We will update our recovery analysis when the deal closes, subject to the receipt of final terms and conditions. However, based on our preliminary analysis, it is unlikely we will revise our recovery ratings." This assumes the following: -- Roughly $16 billion of enterprise value (EV) from CCI in a default scenario, consistent with a 45%-50% haircut to its current EBITDA and the 6.5x multiple we use to value Charter. This would bring its total EV at emergence to about $87 billion on a pro forma basis; -- Roughly $12 billion of CCI debt with the same collateral package and guarantees as Charter's existing secured debt. This would increase the company's total secured claims to about $85 billion in a simulated default scenario; -- Recovery on the secured debt would remain between 90%-100%, which is consistent with a '1' recovery rating; and -- Recovery on the unsecured debt would likely remain below 10%, consistent with a '6' recovery rating. The stable outlook on Charter reflects management's willingness to operate with a more-conservate financial policy. This will provide the company with a cushion relative to our thresholds for the current rating to account for its increasingly competitive operating environment. S&P said, "Although unlikely, we could lower our rating on Charter if it increases its debt to EBITDA above 4.5x. We could also tighten our rating thresholds if the company's business conditions deteriorate such that we believe its EBITDA per home passed is on a materially declining long-term trajectory." This would likely entail weaker-than-expected mobile profitability, stalling broadband ARPU growth, or a decline in its high-speed data penetration to the low-40% area. S&P said, "Furthermore, we could lower our rating on Charter if we do not believe it will improve its FOCF to debt above 5% over the long term. "We could raise our rating on Charter if it reduces its S&P Global Ratings-adjusted debt to EBITDA sustainably below 4x, which is unlikely over the next two years. We would also need to see a stabilization in the company's operating environment, such that we believe the threat of ongoing market share losses has declined, before we would raise our rating. More specifically, we would need to be confident that Charter will be able to increase its broadband revenue, with its EBITDA-per-passing remaining stable or rising over the long term. We also require the company to improve its FOCF to debt above 10% before raising the rating." CLEANOVA HOLDCO 3: Fitch Assigns 'B' LongTerm IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has assigned Cleanova Holdco 3 Limited and Cleanova US Holdings LLC (collectively, Cleanova) first time Long-Term Issuer Default Ratings (IDR) of 'B' and senior secured debt, issued by Cleanova US Holdings LLC, ratings of 'B+' with a Recovery Rating of 'RR3'. The Rating Outlook is Stable. Cleanova's 'B' IDR reflects the company's range of engineered air and liquid industrial filtration products with predictable replacement cycles, high proportion of aftermarket sales supported by a large installed base and service capabilities, and diversified, sticky customer base that lead to a good degree of revenue and cash flow stability. The company's rating is constrained by its projected financial profile and potential for debt-funded acquisitions. Fitch forecasts EBITDA leverage around 5x and coverage in the mid-2x range in the medium-term. Fitch projects $20 million-$50 million in annual FCF and (CFO-capex)/debt in the low- to mid-single digits, in addition to potential equity contributions, should help moderate M&A-linked leverage and support deleveraging. Key Rating Drivers Forecasted 5x Leverage, Mid-2x Coverage: Fitch expects PF EBITDA leverage will rise to the high-5x range following the purchase of Micronics, before declining to around 5x as the company achieves over $20 million in identified operational and cost synergies through 2026. Fitch views integration risk as limited and cost synergies as achievable considering the complimentary product lines and management's track record. Fitch expects Cleanova to continue to pursue partially debt-funded bolt-on acquisitions to enhance market share and product breadth leading to average leverage in line with 'B' rating tolerances. Aftermarket Exposure Moderates Variability: Cyclicality inherent in industrial end-markets is mitigated by Cleanova's nearly 90% of sales related to low cost, performance-linked aftermarket filter replacement. Highly consumable aftermarket demand tends to be more stable than original equipment sales due to its installed based and operating cost orientation. Around 70%-80% the company's filters are replaced based on a fixed schedule during planned plant turnarounds, due to regulatory or manufacturer warranty requirements and preventing underperformance or disruption. These factors have led to greater revenue stability during economic cycles relative to industrial peers concentrated in capital spend-linked new equipment sales. Forecasted Positive FCF: Cleanova's limited capex and predictable working capital needs are supportive of FCF margins in the mid- to high-single digit range over the medium term, leading to above-average financial flexibility relative to peers in the 'B' rating category. Fitch expects FCF to be in the $20 million range in the near term due to one-time costs related to acquisitions and restructuring, as well as the timing impact of synergies. While the improving FCF profile provides a good degree of de-leveraging capacity, Fitch expects excess cash flow to be prioritized towards incremental acquisitions with excess FCF used for debt repayment. Engineered, Built-to-Spec Products: 70%+ of products are engineered-to-order or configured-to-order requiring in-house technical expertise to design and manufacture filters to customer specifications. These requirements, in conjunction with Cleanova's services capabilities, heighten switching costs and establish a more solutions-oriented offering, as demonstrated by the length and breadth of customer relationships. Cleanova has established a global manufacturing footprint and diversified material supply chains to ensure proximity to customers, particularly within its core North American and European markets, moderating operational and cost risks. Diversified Geography, End Markets: The acquisition of Micronics will further enhance the revenue profile due to its diversification across filtration products, geographies, and customers. Micronics is predominantly exposed to the Americas and air filtration products, which is complementary to Cleanova's exposure to EMEA and liquid filtration products. Fitch also expects the combined business to serve over 10,000 customers across 8+ industries, with the top 10 customers accounting for around 12% of revenue and top three end markets accounting for 51% of revenue. Peer Analysis Fitch compares Cleanova to peers in the Diversified Industrial and Aerospace and Defense sectors, such as Arxis (B+/Stable), and Signia Aerospace, LLC (B+/Stable). Each of these companies has a high degree of sales attributed to spec, aftermarket products, leading to defensible market positions and revenue stability. Despite Cleanova operating with similar leverage and a higher portion of aftermarket sales relative to Arxis and Signia, it has lower cash flow margins, less revenue visibility relative to A&D platforms, and is much smaller. Key Assumptions - Organic revenue growth is assumed in the low- to mid-single digits through the forecast supported by steady pricing increases and incremental cross-selling opportunities as a result of the transaction; - Pro forma EBITDA margins strengthen over the next few years as the company executes on identified synergies; - Excess cash flow is prioritized towards acquisitions; - Capital expenditures assumed to remain around 1% of revenue per year; - SOFR is assumed at 4.25% in 2025, stabilizing at 3.75% through the forecast. Recovery Analysis The recovery analysis assumes that Cleanova would be reorganized as a going-concern (GC) in bankruptcy rather than liquidated. A 10% administrative claim is assumed in the recovery analysis. The GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the enterprise valuation. The $88 million GC EBITDA reflects a hypothetical scenario in which material, persistent operational issues arise, resulting in the loss of key suppliers and customers, leading to margin deterioration. An enterprise valuation multiple of 5.5x EBITDA is applied to the GC EBITDA to calculate a post-reorganization enterprise value. The multiple considers the company's business model, scale, proportion of sales derived from aftermarket products, and comparable transaction multiples. The credit facility is assumed to be fully drawn. The first lien secured revolving credit facility and term loan are pari passu and receive equal priority in the distribution of value in the recovery waterfall. The recovery rating analysis results in a 'B+'/'RR3' recovery for the secured debt. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA interest coverage around 2.0x; - EBITDA leverage sustained above 6.5x; - Reduction in financial flexibility, such as or CFO-Capex/Debt below 2.5% or revolver availability sustained below 50%; - A deviation in M&A strategy or operational missteps that heightens execution and cash flow risk. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Demonstrated commitment to a financial policy supporting EBITDA leverage maintained below 5x; - EBITDA interest coverage approaching 3.0x; - Improved cash flow profile leading to greater financial flexibility, such as CFO-Capex/Debt in the mid-single-digits; - Continued execution of strategic initiatives to improve the cash flow risk profile, including increased size, scale, and diversification. Liquidity and Debt Structure Cleanova's liquidity is adequate, consisting of $25 million cash on hand and full availability on its $75 million revolver following the refinancing in connection with the Micronics acquisition. FCF is forecast to remain positive, supporting a stable liquidity position over the medium-term. The company expects to finance the acquisition of Micronics and refinance all its existing debt with $630 million term loan to be issued. Post-refinancing, the company's debt structure will consist of a $75 million senior secured revolver (undrawn), and a $630 million senior secured term loan. The term loan will amortize at 1% per annum and mature in 2032. Issuer Profile Cleanova Group designs and manufactures custom filtration assemblies and aftermarket filters. Its products are sold globally across diversified industrial, energy, metal, mining, and other end markets. Date of Relevant Committee May 9, 2025 MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery ----------- ------ -------- Cleanova US Holdings LLC LT IDR B New Rating senior secured LT B+ New Rating RR3 Cleanova Holdco 3 Limited LT IDR B New Rating COLUMBINE HEIGHTS: Unsecureds Will Get 100% of Claims in Plan ------------------------------------------------------------- Columbine Heights, LLC, filed with the U.S. Bankruptcy Court for the District of Colorado an Amended Disclosure Statement describing Amended Plan of Reorganization dated May 1, 2025. On or about April 23, 2018, the Debtor was formed as a limited liability company in the State of Colorado. The Debtor was formed with the specific intent of holding real property interests. To achieve this end, the Debtor entered into to the Contract to Buy and Sell Real Estate (Land) dated January 21, 2022, which was subsequently amended by the Agreement to Amend/Extend Contract dated December 29, 2023 (collectively, the "Contract") with Johnson Farms, LLP. Through the Contract, the Debtor holds an interest in real property known as Weld County Parcel #131132300035, FRE PT SW4 32 2-67 BEG C 1/4 S89D23'W 61' S01D11'E 2534.67' N0D09'E2534.77' TO POB Outlet 1, Johnson Farms/Spindle Hill Energy Minor Subdivision Plat, Town of Frederick, County of Weld, State of Colorado with approximately 142.91 acres (the "Property"); and any and all Water Rights appurtenant to the Property. The Debtor has sought to employ CBRE, Inc. as a broker for the Debtor to sell the Property. It is anticipated that based on the projected final approval of entitlements it is reasonable to expect that the Property will be sold within two years from the Effective Date; although the Debtor believes it can reasonably close by July 31, 2026 as contemplated under the Settlement Agreement due to progress made since the Debtor initially filed its plan in November 2024. The Debtor will continue to develop and market the Property and use proceeds generated from these sales to pay operating expenses and secured creditors. Prior to these sales, the Debtor will fund its development and operating expenses through capital calls from its members. The Debtor's members are willing and able to fund its current and future expenses through the first sale through capital calls. The members have liquid funds available of at least $500,000.00 to fund these expenses. The members have funded the Debtor since its inception with equity contributions and capital calls. Evidence of the members' ability to fund the capital calls will be presented at the Confirmation Hearing, as necessary. The Debtor expects that all creditors and Allowed Claims shall be paid in full over a 2-year Plan term. Class Two shall consist of allowed Unsecured Claims against the Debtor. The unsecured creditors shall receive annual payments pro rata over the Plan term of two years from Net Income in amounts not to exceed allowed claims, beginning one year from the Effective Date. Pursuant to the projections attached as Exhibit A to the Debtor's Plan, projected payments are sufficient to pay all Class Two Allowed Claims in full from the sale of the Property and/or capital calls from the Debtor's members. Thus, the Debtor projects a 100% payment to Allowed Claims. Notwithstanding the foregoing or anything to the contrary herein, the Debtor, in its sole discretion, may pay the claims in Class Two in full at any time prior to the end of the Plan. Class Two is Impaired under the Plan. As defined in the Plan, Net Income means annual net income the Debtor earns from continued business operations for two years, after deducting normal operating expenses, unclassified allowed Chapter 11 Administrative Expenses, and allowed unsecured priority claims. Class Three consists of the equitable interests of Members as follows: Azcore, LLC (49%), Monroe Associates (24.5%), Excel Business Services, LLC (24.5%), and Scott Burrows (2%), each a holder of the Debtor's ownership interests as stated herein. The holders of Class Three interests will receive no money under the Plan on the Effective Date. They will retain their interests to the same extent that they held such interests prior to the filing of the Bankruptcy. The Debtor will otherwise continue to operate its business, including proceeding with entitlement process and marketing the plats for sale. To achieve this end, the Debtor has sought to employ CBRE, Inc. as a broker for the Debtor to sell the Property. It is anticipated that based on the projected final approval of entitlements it is reasonable to expect that the Property will be sold within two years from the Effective Date. Through the first sale, Johnson Farms shall be paid in full in accordance with the Settlement Agreement. The Debtor shall sell the Property and pay Class One's Allowed Claim within two years of the Effective Date. Afterwards, the Debtor's Net Income shall be used to pay holders of Allowed Unsecured Claims and all Administrative Expenses. A full-text copy of the Amended Disclosure Statement dated May 1, 2025 is available at https://urlcurt.com/u?l=9OyaxR from PacerMonitor.com at no charge. Counsel to the Debtor: Jeffrey A. Weinman, Esq. Patrick Vellone, Esq., Katharine S. Sender, Esq. Allen Vellone Wolf Helfrich & Factor P.C. 1600 Stout Street, Suite 1900 Denver, CO 80202 Tel: (303) 534-4499 Email: JWeinman@allen-vellone.com KSender@allen-vellone.com About Columbine Heights LLC Columbine Heights has equitable interest in real property located in Weld County, State of Colorado valued at $16 million. Columbine Heights LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Col. Case No. 24-15117) on Aug. 30, 2024, listing $16,000,000 in assets and $2,150,391 in liabilities. The petition was signed by Michael Blumenthal as manager. Judge Kimberley H. Tyson presides over the case. Jeffrey A. Weinman, Esq., at Allen Vellone Wolf Helfrich & Factor PC, is the Debtor's counsel. COMMERCIAL FURNITURE: Gets Extension to Access Cash Collateral -------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Tennessee, Southern Division granted Commercial Furniture Services, LLC interim authority to continue using cash collateral. The interim order authorized the company to use cash collateral consistent with its 30-day budget, which shows total monthly expenses of $200,299.94. Commercial Furniture Services must not exceed the expenditures in the budget by more than 15% without approval from the court or its lender, Southeast Bank. In addition to the items set forth in the budget, Commercial Furniture Services was authorized to pay the fees and administrative expense claims of the Subchapter V trustee, with such payments to be held by the trustee subject to a separate court order. As protection, Southeast Bank was granted replacement liens on the collateral to the same extent and with the same validity and priority as its pre-bankruptcy liens. A final hearing is scheduled for June 12. About Commercial Furniture Services Commercial Furniture Services, LLC, a company in Chattanooga, Tenn., offers office furniture installation, asset management (safe storage) and logistics services. Commercial Furniture Services filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. Tenn. Case No. 24-12642) on Oct. 18, 2024, with $100,001 to $500,000 in assets and $1 million to $10 million in liabilities. Brenda Brooks of Moore & Brooks serves as Subchapter V trustee. Judge Nicholas W. Whittenburg oversees the case. Wright, Cortesi & Gilbreath serves as the Debtor's legal counsel. Southeast Bank, as lender, is represented by: Harry R. Cash, Esq. John P. Konvalinka, Esq. Grant, Konvalinka & Harrison, P.C. 633 Chestnut Street, Suite 900 Chattanooga, TN 37450-0900 423-756-8400 (Phone) 423-756-0643 (Fax) hcash@gkhpc.com jkonvalinka@gkhpc.com CONSOLIDATED BURGER: June 23, 2025 Proofs of Claim Deadline Set --------------------------------------------------------------- The deadline for all creditors of Consolidated Burger Holdings, LLC and its affiliates to file a proof of claim (except governmental units) is June 23, 2025 (5:00 PM EDT). The deadline for governmental units to file a proof of claim is October 14, 2025 (5:00 PM EDT) A proof of claim is a signed statement describing a creditor's claim. A proof of claim form may be obtained at www.flnb.uscourts.gov, any bankruptcy clerk's office or on the case website at https://omniagentsolutions.com/CBH Your claim will be allowed in the amount scheduled unless: * your claim is designated as disputed, contingent, or unliquidated; * you file a proof of claim in a different amount; or * you receive another notice. If your claim is not scheduled or if your claim is designated as disputed, contingent, or unliquidated, you must file a proof of claim or you might not be paid on your claim and you might be unable to vote on a plan. You may file a proof of claim even if your claim is scheduled. You may review the schedules at the bankruptcy clerk's office or online at pacer.uscourts.gov or at the case website https://omniagentsolutions.com/CBH. Secured creditors retain rights in their collateral regardless of whether they file a proof of claim. Filing a proof of claim submits the creditor to the jurisdiction of the bankruptcy court, with consequences a lawyer can explain. For example, a secured creditor who files a proof of claim may surrender important nonmonetary rights, including the right to a jury trial. The deadline for filing objections to claims will be established pursuant to Local Rule 3007−1(B)(1). The deadlines for filing proofs of claim in this notice apply to all creditors. If you are a creditor receiving a notice mailed to a foreign address, you may file a motion asking the court to extend the deadline to file a proof of claim. Claims may be delivered or mailed to: By First Class Mail, Hand Delivery or Overnight Mail: Consolidated Burger Holdings, LLC Claims Processing c/o Omni Agent Solutions, Inc. 5955 De Soto Avenue, Ste. 100 Woodland Hills, CA 91367 Proofs of Claim may also be filed electronically via the case website: https://omniagentsolutions.com/CBH Exception to Discharge Deadline The bankruptcy clerk's office must receive a complaint and any required filing fee by the following deadline. Writing a letter to the court or judge is not sufficient. About Consolidated Burger Holdings Consolidated Burger Holdings LLC and affiliates are among the largest franchisees of Burger King, the world's second-largest fast food hamburger chain. As of the Petition Date, they operated 57 Burger King restaurants across prime markets in Florida and Southern Georgia. These restaurants are informally grouped into three geographic clusters: (i) Tallahassee and Southern Georgia, comprising 18 locations; (ii) South Florida, with 19 locations; and (iii) the Florida Panhandle, with 20 locations. Debtor Consolidated Holdings is the sole member and 100% equity owner of both Consolidated A and Consolidated B. Consolidated Burger Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-40162) on April 14, 2025. In its petition, the Debtor reports estimated assets and liabilities between $50 million and $100 million each. Honorable Bankruptcy Judge Karen K. Specie handles the case. The Debtor is represented by Paul Steven Singerman, Esq., Jordi Guso, Esq., Christopher Andrew Jarvinen, Esq., and Brian G. Rich, Esq. at BERGER SINGERMAN LLP. DEVELOPMENT SPECIALISTS, INC. is the Debtors' Restructuring Advisor. PEAK FRANCHISE CAPITAL LLC is the Debtors' Investment Banker. OMNI AGENT SOLUTIONS, INC. is the Debtors' Notice & Claims Agent. COSTELLO SR.-ALLEN: Mark Schlant Named Subchapter V Trustee ----------------------------------------------------------- The U.S. Trustee for Region 2 appointed Mark Schlant, Esq., at Zdarsky, Sawicki & Agostinelli, LLP as Subchapter V trustee for Costello Sr.-Allen Optometrists, PLLC. Mr. Schlant will be paid an hourly fee of $320 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Schlant declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Mark J. Schlant, Esq. Zdarsky, Sawicki & Agostinelli, LLP 1600 Main Place Tower 350 Main St. Buffalo, NY 14202 Phone: (716) 855-3200 Email: mschlant@zsalawfirm.com About Costello Sr.-Allen Optometrists Costello Sr.-Allen Optometrists, PLLC, doing business as Allen Eye Associates, is an optometry practice based in Oneida, N.Y. The clinic provides comprehensive eye care services including routine eye exams, contact lens fittings, dry eye therapy, and disease management. Costello Sr.-Allen Optometrists sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 25-60379) on May 1, 2025. In its petition, the Debtor reported total assets of $583,120 and total liabilities of $2,622,871. The Debtor tapped Peter A. Orville, Esq., at Orville & McDonald Law, P.C. and Gregory F. Wilt CPA, PC as tax and payroll accountant. CREATIVEMASS HOLDINGS: William Homony Named Subchapter V Trustee ---------------------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed William Homony of Miller Coffey Tate, LLP as Subchapter V trustee for Creativemass Holdings Inc. Mr. Homony 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. Homony declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: William A. Homony, CIRA Miller Coffey Tate, LLP 1628 John F. Kennedy Boulevard, Suite 950 Philadelphia, PA 19103 Telephone: (215) 561-0950 ext. 26 Fax: (215) 561-0330 Email: bhomony@mctllp.com About Creativemass Holdings Creativemass Holdings Inc. founded in June 2020 as a Delaware holding company, managed five subsidiaries across Australia, Japan, the UK, and the US. The group's operations were primarily driven by Creativemass Enterprises Pty Ltd., an Australian firm incorporated in 2017 and led by Michael Rouse, who also headed the parent company. Its core offering was WealthConnect, a subscription-based wealth management platform developed between 2017 and 2019, which anchored the group's broader push to deliver fintech solutions to the financial services sector. Creativemass Holdings and its affiliate, Creativemass Enterprises US, LLC, filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 25-10695) on April 14, 2025. At the time of the filing, Creativemass Holdings reported between $1 million and $10 million in both assets and liabilities while Creativemass Enterprises reported up to $50,000 in assets and between $50,001 and $100,000 in liabilities. Judge Mary F. Walrath handles the cases. The Debtors tapped Pashman Stein Walder Hayden, P.C. as legal counsel and Novo Advisors, LLC as financial advisor. Stretto is the claims and noticing agent. DANIMER SCIENTIFIC: June 9, 2025 Claims Bar Date Set ---------------------------------------------------- On May 5, 2025, the United States Bankruptcy Court for the District of Delaware entered an order in the chapter 11 cases of Danimer Scientific, Inc. and its debtor-affiliates establishing certain claims bar dates. Pursuant to the Bar Date Order, the Court has established June 9, 2025, at 5:00 p.m. (Eastern Time) as the general bar date for filing prepetition claims in the Debtors' Chapter 11 Cases. Proofs of claim of governmental units must be filed by Sept. 15, 2025, at 5:00 p.m. (Eastern Time). The Bar Date Order establishes the following bar dates for filing claims in these Chapter 11 Cases: The General Bar Date. Pursuant to the Bar Date Order, except as described below, all entities holding claims, whether secured, unsecured priority (including Section 503(b)(9) Claims) or unsecured nonpriority, against the Debtors that arose prior to March 18, 2025 (the "Petition Date") must file proofs of claim by the General Bar Date (i.e., by June 9, 2025, at 5:00 p.m. (Eastern Time)). With respect to Section 503(b)(9) Claims, the filing of a proof of claim shall be deemed to satisfy the procedural requirements for the assertion of such administrative claims. The Governmental Bar Date. Pursuant to the Bar Date Order, except as described below, all governmental units holding claims against the Debtors (whether secured, unsecured priority or unsecured nonpriority) that arose before the Petition Date must file proofs of claim by the Governmental Bar Date (i.e., by September 15, 2025, at 5:00 p.m. (Eastern Time)). The Rejection Bar Date. Any entity whose claims arise out of the rejection of an executory contract or unexpired lease pursuant to a Court order or by operation of section 365(d)(4) of the Bankruptcy Code, including secured claims, unsecured priority claims and unsecured nonpriority claims that arose or are deemed to have arisen prior to the Petition Date, must file a proof of claim on or before the later of (a) the General Bar Date and (b) 5:00 p.m., Eastern Time, on the date that is 30 days after service of the Rejection Order. The Amended Schedules Bar Date. If the Debtors amend or supplement their schedules of assets and liabilities to reduce the undisputed, noncontingent and liquidated amount of a claim against the Debtors, to change the nature or classification of a claim against the Debtors or to add a new claim to the Schedules, any affected entities that dispute such changes must file a proof of claim or amend any previously filed proof of claim in respect of the amended scheduled claim on or before the later of: (a) the General Bar Date; and (b) 5:00 p.m., Eastern Time, on the date that is 30 days after the date that notice of the applicable amendment to the Schedules is served on the entity. FILING CLAIMS 1. WHO MUST FILE Subject to the terms set forth in the Bar Date Order and described above for holders of claims subject to the Governmental Bar Date, Rejection Bar Date and the Amended Schedules Bar Date, the following entities must file proofs of claim on or before the General Bar Date: (a) any entity (i) whose prepetition claim against the Debtors is not listed in the Debtors' Schedules or is listed as disputed, contingent or unliquidated and (ii) that desires to participate in these Chapter 11 Cases or share in any distributions in these Chapter 11 Cases; and (b) any entity that believes that its prepetition claim is improperly classified in the Schedules or is listed in an incorrect amount and that desires to have its claim allowed in a classification or amount different from the classification or amount identified in the Schedules. 2. WHAT TO FILE Parties asserting claims against the Debtors that arose before the Petition Date must use the copy of the proof of claim form (the "Proof of Claim Form") included with this notice. The Debtors have populated each Proof of Claim Form provided to each known potential claimant with the following information: (a) the claimant's name and (b) whether the claimant's claim is listed in the Schedules and, if so, (i) the Debtor against which the claimant's claim is scheduled; (ii) whether the claimant's claim is listed as disputed, contingent, or unliquidated; (iii) whether the claimant's claim is listed as secured, unsecured, or priority unsecured; and (iv) if listed in a liquidated amount that is not disputed or contingent, the dollar amount of the claim (as listed in the Schedules). Any entity that relies on any information set forth on the Proof of Claim Form provided to such entity will bear responsibility for determining that such information is accurate. Additional copies of the Proof of Claim Forms may be obtained on Debtors' case website hosted by Stretto, Inc. at https://cases.stretto.com/danimerscientific. 3. WHEN AND WHERE TO FILE Entities must (i) deliver the Proof of Claim Form in person or by courier service, hand delivery or mail so it is received on or before the applicable Bar Date at the following address: Danimer Scientific, Inc., et al. Claims Processing, c/o Stretto, 410 Exchange, Suite 100, Irvine, CA 92602, or (ii) deliver it electronically using the interface available on Stretto's website at https://cases.stretto.com/danimerscientific on or before the applicable Bar Date. Forms will be deemed filed when actually received by the Debtors' claims agent, Stretto. Forms may not be delivered via facsimile or electronic mail transmission. Any facsimile or electronic mail submissions will not be accepted and will not be deemed filed until a claim is submitted by one of the methods described above. Forms will be collected, docketed and maintained by Stretto. If you want to receive acknowledgement of Stretto's receipt of a form, you must submit by the applicable Bar Dates and concurrently with submitting your original form (a) a copy of the original form and (b) a selfaddressed, postage prepaid return envelope. Additionally, if you submit a Proof of Claim Form through Stretto's website interface, you will receive an email confirmation of your submission. All forms must be signed by the claimant or, if the claimant is not an individual, by an authorized agent of the claimant. The form must be written in English, be denominated in United States currency and conform substantially with the Proof of Claim Form. The Proof of Claim Form must set forth with specificity the legal and factual basis for the alleged claim. You must attach to your completed form any documents on which the claim is based (or, if such documents are voluminous, attach a summary) or an explanation as to why the documents are not available. Any entity asserting claims against multiple Debtors must file a separate form with respect to each Debtor. In addition, any entity filing a claim must identify on its form the particular Debtor against which the entity asserts its claim. Any claim filed under the joint administration case, Danimer Scientific, Inc., Case No. 25-10518 (MFW), or that otherwise fails to identify a Debtor shall be deemed as filed only against Debtor Danimer Scientific, Inc., Case No. 25-10518 (MFW). If an entity lists more than one Debtor on any one form, the relevant claims shall be treated as filed only against the first listed Debtor. CONSEQUENCES OF FAILURE TO FILE A CLAIM Any entity that is required to file a Proof of Claim Form pursuant to the Bar Date Order, but fails to properly do so by the applicable Bar Date, shall not be treated as a creditor or claimant (as applicable) with respect to such claim for the purposes of voting and distribution in the above-captioned cases and shall be forever barred, estopped and enjoined from asserting any such claim against the Debtors or their estates or property. ADDITIONAL INFORMATION If you require additional information, you may contact Stretto (i) by telephone at (855) 469-1503 (toll-free) or 1-657-232-7988 (international), (ii) by email at teamdanimerscientific@stretto.com, or (iii) by submitting an inquiry on Stretto's website at https://cases.stretto.com/danimerscientific. Copies of the Bar Date Order and other information regarding the Debtors' Chapter 11 Cases are available for inspection free of charge on Stretto's website at https://cases.stretto.com/danimerscientific.com. A HOLDER OF A POSSIBLE CLAIM AGAINST THE DEBTORS SHOULD CONSULT AN ATTORNEY REGARDING ANY MATTERS NOT COVERED BY THIS NOTICE, INCLUDING WHETHER THE HOLDER SHOULD FILE A PROOF OF CLAIM FORM. 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, Ga. Danimer Scientific and its affiliates filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 25-10518) on March 18, 2025. In its petition, Danimer Scientific reported assets between $500 million and $1 billion and liabilities between $100 million and $500 million. Judge Mary F. Walrath handles the cases. The Debtor tapped Vinson & Elkins, LLP as general bankruptcy counsel; Richards, Layton & Finger, P.A., as Delaware local counsel; and AlixPartners, LLP, as financial advisor. Stretto, Inc. is the Debtor's notice, claims and solicitation agent. DEL MONTE FOODS II: Moody's Assigns 'Caa2' CFR, Outlook Negative ---------------------------------------------------------------- Moody's Ratings assigned a Caa2 Corporate Family Rating and Caa2-PD Probability of Default Rating to Del Monte Foods Corporation II Inc. ("Del Monte" or "DMFC II"). Concurrently, Moody's assigned a Caa2 rating to DMFC II's newly issued $122 million incremental backed senior secured first lien first-out ("FLFO") term loan. Moody's also affirmed the Caa2 ratings on DMFC II's existing backed senior secured FLFO term loans, the Caa3 rating on the backed senior secured first lien second-out ("FLSO") term loan, and the Ca rating on the backed senior secured first lien third-out ("FLTO") term loan. Moody's withdrew Del Monte Foods, Inc.'s ("DMFI") Caa2 CFR, Caa2-PD PDR, negative outlook, and the Ca rating on the backed senior secured first lien term loan issued by DMFI ("DMFI term loan"), following the repayment of all outstanding rated debt at DMFI. The outlook at DMFC II is negative. Del Monte issued a $122 million new incremental FLFO term loan in April 2025 to fund the settlement of outstanding litigation with Black Diamond and select other lenders that contested the August 2024 debt exchange transaction. Del Monte used proceeds from the new issuance to repay the existing DMFI term loan lenders that were part of the litigation and a remaining stub portion. DMFC II amended the super priority credit agreement to raise $110 million of new money with the $122 million principal balance including fees through the issuance of the incremental FLFO term loan. DMFC II also amended the Asset Backed Lending ("ABL") credit agreement to reduce the size of the facility to $550 million from $625 million. ABL lenders are secured by the ABL priority collateral, which includes liquid assets such as accounts receivable and inventory. The incremental FLFO term loan is pari-passu to the existing FLFO with exception that it had a priority claim to proceeds from a new parent contribution of $45 million which had to be used to repay debt outstanding on the incremental FLFO by May 5, 2025. The new parent contribution could come in the form of a fourth out term loan tranche on the DMFC II credit agreement or as equity from Del Monte Pacific Ltd ("DMPL"). The contribution was not made. As a result, Del Monte Foods Holdings Limited ("DMFHL") is required to have least six lender-appointed directors on its board of directors and a majority of directors on the Boards of Directors of each of DMFHL's subsidiaries lender-appointed. Moody's are moving the CFR and PDR to DMFC II and withdrawing the ratings at DMFI because there is no longer any debt outstanding at DMFI following the repayment of the term loan. The Caa2 CFR at DMFC II and negative outlook remain the same as the prior CFR and outlook at DMFI because the transaction does not materially affect the high leverage or negative free cash flow. The transaction favorably resolves the outstanding litigation but the company's liquidity remains weak. Operating conditions are challenging and there is considerable execution risk surrounding Del Monte's ability to maintain sufficient liquidity to address its cash needs while also improve volumes and profitability sufficiently over the next 12-18 months to meaningfully reduce leverage and improve free cash flow. RATINGS RATIONALE Del Monte's Caa2 CFR reflects the company's weak liquidity and high leverage. Debt/EBITDA leverage was significantly above 10x for the fiscal year ended April 2024, and is projected to remain above 10x through the fiscal year ended April 2025. The company's weak financial position is largely a result of elevated inventories in light of weaker than anticipated consumer demand. Del Monte's liquidity is weak given these headwinds, and cash needs are currently high as the company is approaching its pack season (July-October). The Hanford facility sale in March 2025 provided incremental cash, but the company is heavily reliant on its ABL revolver to manage through the pack season, and funding operating needs including accounts payable. Moody's projects debt-to-EBITDA leverage to decline to roughly 9x by the end of fiscal 2026 primarily because of Del Monte's plan to reduce its inventory and pay down the ABL balance. Deleveraging will also be supported by cost reduction initiatives, projected margin improvement in fiscal 2026 as inventory balances normalize. However, there is risk that volume pressure persists if consumers continue to change purchasing habits to mitigate the effect of high grocery prices. Increased promotions may be necessary to reduce high inventory and this could pressure profits and margins further. The ratings also reflect high seasonal cash needs and weak long-term category fundamentals in US canned fruit and vegetables with consumers gravitating to fresh produce and other alternatives. Del Monte is attempting to offset this negative trend by focusing on innovation outside of the can, such as fruit cups, aseptic broth and ready to drink beverages. Better innovation requires continual investment but also strengthens the Del Monte brand if the company executes well. The company's ratings are supported by the strength of the Del Monte™ brand, which holds leading shares in core shelf stable fruits and vegetables, and good execution on recent strategic initiatives that have reduced the cost structure and expanded distribution into new channels. The ratings are also supported by a history of significant liquidity support provided by the parent company, DMPL. Moody's expects such support will continue in periods of earnings weakness, when feasible. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The negative outlook reflects the risk related to maintaining sufficient liquidity given highly seasonal cash needs and weak operating performance. The negative outlook also reflects the execution risk related to Del Monte's ability to stabilize volumes, reduce costs, improve profitability, reduce leverage and restore sustainably positive free cash flow over the next 12-18 months given a challenging demand landscape. A rating upgrade could occur if Del Monte is able to improve operating performance including generating positive organic revenue growth and a significantly higher EBITDA margin with good execution of inventory reduction and cost savings initiatives. Del Monte would also need to improve liquidity including higher ABL availability and positive free cash flow, and meaningfully reduce leverage. A rating downgrade could occur if Del Monte's liquidity deteriorates, free cash flow remains weak, or if the company faces setbacks related to cost savings initiatives or revenue stabilization. Ratings could also be downgraded if recovery prospects weaken or the capital structure limits the company's reinvestment capacity. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Consumer Packaged Goods published in June 2022. COMPANY PROFILE Del Monte Foods, Inc., headquartered in Walnut Creek, California, is a manufacturer and marketer of branded and private label food products, primarily in the United States. Brands include Del Monte(TM) in shelf stable fruits, vegetables and tomatoes; Contadina(TM) in tomato-based products; College Inn(TM) and Kitchen Basics(TM) in broth and stock products; and S&W(TM) in shelf stable fruit, vegetable and tomato products. The company generated sales of $1.7 billion in the LTM period ended January 26, 2025. Del Monte Foods, Inc. is a wholly owned subsidiary of Del Monte Foods Holdings Limited, which is in turn approximately 94% owned by Del Monte Pacific Ltd ("DMPL"). Del Monte Foods Corporation II Inc. is an indirect wholly owned subsidiary of Del Monte Foods, Inc. DMPL is publicly traded on the Philippine and Singapore stock exchanges. DMPL is 71%-owned by NutriAsia Pacific Ltd and Bluebell Group Holdings Limited, which are beneficially-owned by the Campos family of the Philippines. Public investors and Lee Pineapple Group (a pineapple supplier in Malaysia) hold the remaining 29% stake. DOVGAL EXPRESS: Cash Collateral Hearing Set for May 21 ------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Illinois is set to hold a hearing on May 21 to consider another extension of Dovgal Express, Inc.'s authority to use cash collateral. The company's authority to use cash collateral pursuant to the court's May 8 interim order expires on May 23. The May 8 order approved the payment of the company's expenses from the cash collateral in accordance with the budget it filed with the court. The order granted the company's lenders replacement liens on their collateral and authorized the payments to such lenders in accordance with the budget. The lenders asserting interests in the cash collateral are 777 Equipment Finance LLC, Alliance Funding Group as servicer for Amur Equipment Finance Inc., Commercial Credit Group, Inc., Daimler Truck Financial Services, Equify Financial, M & T Equipment Finance Corp., Siemens Financial Services, Inc, Stride Bank, Trans Lease Inc, Transportation Alliance Bank, Inc., Webster Capital Finance, and Wells Fargo Equipment Finance, Inc. About Dovgal Express Inc. Dovgal Express, Inc. is a transportation services provider specializing in dry van truckload, less-than-truckload, and refrigerated shipments. Dovgal Express sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-18991) on Dec. 20, 2024, with $1 million to $10 million in assets and $10 million to $50 million in liabilities. Oleksandr Dovgal, president of Dovgal Express, signed the petition. Judge Timothy A. Barnes handles the case. The Debtor is represented by: O Allan Fridman Law Office Of O. Allan Fridman Tel: 847-412-0788 Email: allanfridman@gmail.com DRIVEHUB AUTO: Continued Operation to Fund Plan Payments -------------------------------------------------------- DriveHub Auto Inc., a/k/a Ryan & Ryan, Inc., filed with the U.S. Bankruptcy Court for the Middle District of Florida a Subchapter V Plan of Reorganization dated May 1, 2025. DriveHub was originally formed as a California for-profit corporation in 2014 where it was authorized to conduct business until its registration with the State of Florida in 2020. The Debtor operates a used car dealership located at: 1117 Tucker Avenue, Orlando, Florida 32807, which operation includes a repair facility component, sales office and vehicle lot. The Debtor anticipates continuing operations at its current location during the Plan Term. Over the past several years, Debtor utilized merchant cash advance loans to fund operational expenses following a slowdown in car sales and mounting debts associated with ongoing litigation. After falling behind on payments to its lenders, Debtor struggled to maintain profitable operations and soon found itself in receipt of default notices, garnishment writs and demand letters from its creditors. Rather than litigate with its creditors in several different forums, Debtor elected to utilize the Chapter 11 process to recover funds on hold, restructure its balance sheet, dispute claims, and pursue causes of action for the benefit of its business, creditors and estate. After the Petition Date, Debtor quickly entered into arrangements with its floorplan lenders to facilitate the continued sale of its inventory without interruption. DriveHub anticipates that recent tariffs imposed by the U.S. Government will positively impact demand and sale prices for used vehicles enabling it to fulfill its obligations under the Plan. Class 7 consists of all Allowed General Unsecured Claims against the Debtor. The Debtor's projected Disposable Income shall be set forth in a Feasibility Analysis filed contemporaneously with the Plan and served on all interested parties. In full satisfaction of the Allowed Class 7 General Unsecured Claims, Holders of Class 7 Claims shall receive a pro rata share of Distributions equivalent to the Debtor's Disposable Income, which payments shall commence on the 14th day following the Effective Date. In a liquidation scenario, the value received by holders of Allowed Class 7 Claims would be $0.00 as demonstrated by Exhibit "A" attached hereto as Debtor's vehicle inventory and personal property is fully encumbered. The maximum Distribution to Class 7 Claimholders shall be equal to the total amount of all Allowed Class 7 General Unsecured Claims. Class 7 is Impaired. Class 8 consists of all Allowed General Unsecured Claim of Felipe Mattos. In exchange for the full value of his Allowed Class 8 Claim, shall receive 100% of the Equity Interests in the Debtor and shall continue managerial responsibilities of the Debtor's operation during the Plan Term. Entry of the Confirmation Order shall effectuate the transfer Interests as contemplated herein without the need for Mr. Mattos to file or execute any other formal agreement or documents except those necessary to confirm such transfer with the State of Florida as applicable. Class 8 is Impaired. Class 9 consists of all equity interests in DriveHub Auto, Inc. On the Effective Date, the Class 9 Interest Holder (i.e., Mr. Yevgen Arnaut who currently holds 100% of the Interest in the Debtor) shall relinquish his Interests to Mr. Mattos. Class 9 is Impaired. The Plan contemplates the Debtor will continue to manage and operate its business in the ordinary course, but with restructured debt obligations. It is anticipated the Debtor's postconfirmation business will mainly involve continued operation of its used car dealership, the income from which will be committed to make the Plan Payments to the extent necessary. Commencing on the Effective Date, the Debtor's operation will be managed by Mr. Mattos, who currently serves as the Debtor's co manager and is familiar with all material aspects of the Debtor's operation and its Chapter 11 case. Mr. Mattos has agreed to receive 100% of the Interests in the Debtor in exchange for his Allowed Class 8 Claim, which exchange: (i) lowers the aggregate amount of Class 7 Claims; (ii) resolves a significant Claim without use of the Debtor's cash on hand or Disposable Income; and (iii) facilitates the Debtor's reorganization effort. Funds generated from the Debtor's operations through the Effective Date and any receipts from Causes of Action will be used for Plan Payments; however, the Debtor's cash on hand as of Confirmation will be available for payment of Administrative Expenses. A full-text copy of the Subchapter V Plan dated May 1, 2025 is available at https://urlcurt.com/u?l=YqeVxv from PacerMonitor.com at no charge. Counsel to the Debtor: Daniel A. Velasquez, Esq. Latham, Luna, Eden & Beaudine, LLP 201 S. Orange Ave., Suite 1400 Orlando, FL 32801 Telephone: (407) 481-5800 Facsimile: (407) 481-5801 About DriveHub Auto Inc. DriveHub Auto Inc. is a used car dealership located in Orlando, Fla., offering pre-owned vehicles to customers. DriveHub Auto filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 25-00594) on Jan. 27, 2025, listing between $1 million and $10 million in both assets and liabilities. Judge Grace E. Robson handles the case. The Debtor is represented by Daniel A. Velasquez, Esq., at Latham, Luna, Eden & Beaudine, LLP. Secured creditor XL Funding, LLC is represented by: Eric B. Zwiebel, Esq. Emanuel & Zwiebel, PLLC 7900 Peters Road Building B, Suite 100 Plantation, FL 33324 eric.zwiebel@emzwlaw.com EAST COAST FOODS: 9th Circ. Dismisses Ex-Bankruptcy Trustee's Suit ------------------------------------------------------------------ Angelica Serrano-Roman of Bloomberg Law reports that the U.S. Court of Appeals for the Ninth Circuit ruled Friday, May 16, 2024, that East Coast Foods, Inc. does not have standing to bring a lawsuit against its former Chapter 11 trustee for actions taken during its bankruptcy proceedings. The court upheld a prior decision by the bankruptcy appellate panel, which had agreed with a California bankruptcy court's dismissal of the case on the grounds that the company lacked standing to sue, according to Bloomberg Law. East Coast Foods, which manages several Roscoe's House of Chicken & Waffles restaurants, filed for Chapter 11 bankruptcy in 2016. As part of its reorganization plan, a litigation trust was established, with a designated trustee responsible for pursuing legal claims, the report states. About East Coast Foods East Coast Foods Inc., a California corporation, is the owner and operator of four Roscoe' Chicken N' Waffles restaurants in Los Angeles area. East Coast Foods sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 16-13852) on March 25, 2016. In the petition signed by Herbert Hudson, president, the Debtor estimated assets of $0 to $50,000 and debts of $10 million to $50 million. The Debtor is represented by Vakhe Khodzhayan, Esq., at KG Law, APC. The case is assigned to Judge Sheri Bluebond. The Office of the U.S. Trustee on April 29, 2016, appointed five creditors to serve on an official committee of unsecured creditors. The Committee tapped Smiley Wang-Ekvall, LLP, as legal counsel. Bradley D. Sharp was appointed Chapter 11 trustee of the Debtor's estate on Sept. 28, 2016. The Trustee tapped Danning, Gill, Diamond & Kollitz LLP as legal counsel. EMILY L. LONGWITH: Unsecureds Will Get 12.17% over 5 Years ---------------------------------------------------------- Emily L. Longwith, DDS, MSD, PLLC and affiliates submitted a Third Amended Plan of Reorganization dated May 1, 2025. The Debtors' Plan of Reorganization provides for the continued operations of the Debtors to make payments to its creditors as set forth in this Plan. The Debtors propose to pay allowed unsecured based on the liquidation analysis and cash available. Debtors anticipate having enough business and cash available to fund the plan and pay the creditors pursuant to the proposed plan. It is anticipated that after confirmation, the Debtors will continue in business. Based upon the projections, the Debtors believes it can service the debt to the creditors. The Debtors will continue operating its business. The Debtors' Plan will break the existing claims into six classes of Claimants. These claimants will receive cash repayments over a period of time beginning on or after the Effective Date. Class 5 consists of Allowed Unsecured Claims. All allowed unsecured creditors shall receive a pro rata distribution at zero percent per annum over the next five years according to the projections in Exhibit A. Creditors shall receive quarterly disbursements based on the projection distributions of each 12-month period with the first quarterly payment shall be due 90 days after the Effective Date. Debtors will distribute $83,061.35 to the general allowed unsecured creditor pool over the 5-year term of the plan, including the under-secured claim portions. The Debtors' General Allowed Unsecured Claimants will receive 12.17% of their allowed claims under this plan. Any potential rejection damage claims from executory contracts that are rejected in this Plan will be added to the Class 5 unsecured creditor pool and will be paid on a pro-rata basis. The allowed unsecured claims total $682,354.61. Class 6 Equity Interest Holders. The current owners will receive no payments under the Plan; however, they will be allowed to retain ownership in the Debtors. Class 6 Claimants are not impaired under the Plan. The Debtors anticipate the continued operations of the business to fund the Plan. The projections of the future business operations are attached hereto as Exhibit "A". The Debtors believes that the projections are accurate based upon the accounts receivable and the work currently on the books. The Debtor's projections over the last 90 days have been trending upwards and reflective the projected operations. The projections were revised to reflect current trends of increased patient numbers and thus the projected increase in revenue. A full-text copy of the Third Amended Plan dated May 1, 2025 is available at https://urlcurt.com/u?l=ZlXZvT from PacerMonitor.com at no charge. Counsel to the Debtor: Robert C. Lane, Esq. Lane Law Firm, PLLC 6200 Savoy, Suite 1150 Houston, TX 77036 Tel: (713) 595-8200 Fax: (713) 595-8201 Email: notifications@lanelaw.com About Emily L. Longwith, DDS, MSD, PLLC Emily L. Longwith, DDS, MSD, PLLC is a dental practice specializing in orthodontics, led by Dr. Emily L. Longwith. The practice focuses on providing comprehensive orthodontic care, including traditional braces, clear aligners, and other dental treatments to improve patients' oral health and smiles. Emily L. Longwith, DDS, MSD, PLLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Tex. Case No. 24-33979) on Aug. 29, 2024. The Debtor hired Lane Law Firm PLLC as counsel. ENDURE DIGITAL: Saratoga CLO Marks $2.4M Loan at 31% Off -------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $2,412,500 loan extended to Endure Digital, Inc. to market at $1,668,654 or 69% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Term Loan B to Endure Digital, Inc. The loan accrues interest at a rate of 1M USD SOFR+ 3.50% per annum. The loan matures on February 10, 2028. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About Endure Digital, Inc. Endure Digital (Web.com and Endurance), is a leading provider of internet domain name registrations, web hosting and website building tools to small businesses. The combined company will have an expanded portfolio of leading web services brands, which include Bluehost, Network Solutions, and Web.com as well as other regional and complimentary brands. Moody's projects pro forma revenue in excess of $1 billion in 2020. Clearlake and Siris will be majority shareholders of the combined company. ENPRO INDUSTRIES: Moody's Rates New Unsec. Notes Due 2033 'Ba3' --------------------------------------------------------------- Moody's Ratings assigned a Ba3 senior unsecured rating to EnPro Industries, Inc.'s (EnPro) new senior unsecured notes due 2033. There was no change to EnPro's Ba2 corporate family rating, Ba2-PD probability of default rating, speculative grade liquidity rating of SGL-1, or the stable outlook. EnPro will utilize proceeds from the $450 million of senior unsecured notes to repay its existing $350 million senior unsecured notes due 2026 and reduce borrowings under its recently amended $800 million revolving credit facility expiring 2030. EnPro's revolving credit facility was recently utilized to pay down its existing term loan borrowings. RATINGS RATIONALE The Ba2 CFR reflects EnPro's good revenue scale, brand strength, and diversified end-markets, which include general industrial, semiconductors, food & pharmaceuticals, heavy duty trucking, automotive and aerospace and energy. Over half of the company's business is aftermarket-related, which provides revenue stability and helps mitigate some of the company's more cyclical end markets, such as semiconductors, heavy duty trucking, and automotive. Moody's expects EnPro to maintain strong credit metrics – debt/EBITDA was 2.7x at the end of March 2025 -- and good cash generation with FCF/debt at least in the mid single-digits through 2025. Moody's expects EnPro to maintain an active acquisition strategy with a focus on high growth technology-related businesses. Acquisitions may result in periodic increases in leverage, although Moody's expects the company to prioritize debt repayment to restore metrics after any leveraging transaction, such that debt/EBITDA reverts to around 3x. Moody's recognizes EnPro's efforts to reshape its portfolio through a series of divestitures and acquisitions. Over the last few years, the company's shift from higher-capex, slower-growth businesses has resulted in a marked improvement in profitability, with its adjusted EBITDA margin having grown from the mid-to-high teens to around 25% as of March 2025. Tempering considerations include the company's vulnerability to supply chain and inflationary cost headwinds. Credit risks also include EnPro's modest size and scale and on-going portfolio reshaping that involves costs. The cyclical nature of the semiconductor market is also a ratings consideration. The stable outlook reflects Moody's expectations that EnPro will maintain a well-balanced financial policy, with debt/EBITDA of around 3.0x. Moody's also expects that the company will maintain a healthy EBITDA margin of around 25% and good liquidity. The SGL-1 rating denotes Moody's expectations for very good liquidity over the next 12-18 months. The company held $240 million of cash at March 31, 2025. Moody's expects good free cash generation in 2025 with FCF/debt at least in the mid single-digits. External liquidity is provided by Enpro's $800 million revolving credit facility that expires in April 2030. Moody's estimates approximately $200 million to be drawn after refinancing the notes. The revolver contains two maintenance-based financial covenants, including a maximum net leverage ratio of 4.0x and a minimum consolidated interest coverage of 2.5x. Moody's expects EnPro to maintain ample cushion with respect to these covenants. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded following a material increase in the company's size with debt/EBITDA approaching 2.5x and FCF/debt sustained in the high single-digits. The ratings could be downgraded if the company adopts a more aggressive financial policy such that debt/EBITDA is sustained near 4.0x. Weakening liquidity, including FCF/debt sustained in the low single-digits or negative free cash flow or a sustained material reliance on the revolver could also result in a downgrade. Charlotte, North Carolina based EnPro Industries, Inc. (EnPro) manufactures and markets a variety of proprietary engineered products, including sealing products, specialized optical filters and thin-film coatings for various end markets including the semiconductor, industrial technology, and life sciences end markets. The company also manufactures and markets heavy duty truck wheel-end component systems; self-lubricating non-rolling bearing products; and other engineered products for use in critical applications by industries worldwide. Revenue for the twelve months ended March 2025 was around $1.1 billion. The principal methodology used in these ratings was Manufacturing published in September 2021. EOS US FINCO: Saratoga CLO Marks $950,000 Loan at 58% Off --------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $950,000 loan extended to EOS U.S. FINCO LLC to market at $397,813 or 42% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Term Loan to EOS U.S. FINCO LLC. The loan accrues interest at a rate of 6M USD SOFR+ 6.00% per annum. The loan matures on October 9, 2029. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About EOS U.S. FINCO LLC EOS U.S. FINCO LLC is focused on providing transportation and cargo services. EVEREST LENDING: Updates Restructuring Plan Disclosures ------------------------------------------------------- Everest Lending Group, LLC, submitted a Disclosure Statement to accompany Amended Plan dated May 2, 2025. The Plan is to be implemented by the reorganized Debtor through future income based on projected growth of revenue from mortgage loans. Like in the prior iteration of the Plan, Class 2 Unsecured alleged litigation claims of Rocket Mortgage and Princeton Mortgage shall be paid $50,000.00 with 60 monthly payments of $833.33. The claim of Princeton Mortgage Corporation in the amount of $16,955.00 shall be paid over 60 months at $282.58 per month. This Class is impaired. Class 4 consists of General Unsecured De Minimis Claims Not in Excess of $500.00. Unsecured Claim of PA Department of Revenue in the amount of $115.82 shall be paid in full within 30 days of confirmation of Plan. Source of funds for plan payments will be derived from Debtor's Income. Owner will make up any shortfall in plan funding. A full-text copy of the Disclosure Statement dated May 2, 2025 is available at https://urlcurt.com/u?l=MRQF28 from PacerMonitor.com at no charge. Everest Lending Group, LLC, is represented by; Brian C. Thompson, Esq. Thompson Law Group, PC 125 Warrendale Bayne Road, Suite 200 Warrendale, PA 15086 Tel: (724) 799-8404 Fax: (724) 799-8409 Email: bthompson@thompsonattorney.com About Everest Lending Group Everest Lending Group, LLC, is a business engaged in lending funds for residential real estate. The Debtor filed a Chapter 11 bankruptcy petition (Bankr. W.D. Pa. Case No. 24-21018) on April 26, 2024, disclosing under $1 million in both assets and liabilities. The Debtor is represented by THOMPSON LAW GROUP, P.C. FORMING MACHINING: S&P Withdraws 'CCC' Issuer Credit Rating ----------------------------------------------------------- S&P Global Ratings withdrew all of its ratings on Forming Machining Industries Holdco LLC (FMI), including the 'CCC' issuer credit rating, at the request of the issuer. At the time of withdrawal, a group of investors acquired the company's senior secured debt. S&P's outlook on the company was negative at the time it withdrew the ratings. FRANCHISE GROUP: Saratoga CLO Marks $3 Million Loan at 50% Off -------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $3,041,686 loan extended to Franchise Group, Inc. to market at $1,517,041 or 50% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Term Loan B to Franchise Group, Inc. The loan accrues interest at a rate of 3M USD SOFR+ 4.75% per annum. The loan matures on March 10, 2026. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About Franchise Group, Inc. Franchise Group, Inc., through its subsidiaries, operates franchised and franchisable businesses including The Vitamin Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More, American Freight, Buddy's Home Furnishings and Sylvan Learning Systems, Inc. FRANCHISE GROUP: Saratoga CLO Marks $827,000 Loan at 50% Off ------------------------------------------------------------ Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $827,674 loan extended to Franchise Group, Inc. to market at $412,802 or 50% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a First Out Term Loan to Franchise Group, Inc. The loan accrues interest at a rate of 6M USD SOFR+ 4.75% per annum. The loan matures on March 10, 2026. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About Franchise Group, Inc. Franchise Group, Inc., through its subsidiaries, operates franchised and franchisable businesses including The Vitamin Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More, American Freight, Buddy's Home Furnishings and Sylvan Learning Systems, Inc. GLOBAL INFRASTRUCTURE: S&P Upgrades ICR to 'BB', Outlook Stable --------------------------------------------------------------- S&P Global Ratings raised its issuer credit rating on Global Infrastructure Solutions Inc. (GISI) to 'BB' from 'BB-'. The outlook is stable. S&P said, "The stable outlook reflects our expectation that GISI will continue to show steady organic growth, margin stability, and solid cash flows. We anticipate this will allow the company to maintain debt to EBITDA in the 1.5x-2.0x range over the next couple of years. "We expect GISI's business strategy will support sustained revenue growth and steady profit margins. Over the past few years, GISI has shown a steady operating performance with organic revenue growth of near 10% on average for the past five years. The company's strategic expansion into health care, data centers and infrastructure markets are key growth drivers and enhance its end-market diversification. We expect that GISI's $24.8 billion backlog diversified across high-growth end markets will allow it to maintain mid- to high-single-digit percent revenue growth reaching about $15 billion in 2025." GISI's business is a combination of construction services primarily in the U.S. and consulting services in the U.S. and in several international markets. GISI generates the majority of its revenue from construction services (85%), for which the company relies on a fully outsourced labor force through a large network of subcontractors. S&P said, "Although we consider the highly competitive environment as a key risk to growth and margin expansion, we see GISI's scale and cost structure as a credit positive given its ability to flex labor cost (its largest cost) as needed, exhibiting historically low volatility. Under our base case, we expect GISI will exhibit sustained revenue growth through our forecast period. We believe its cost structure flexibility is a credit positive particularly under economic downturns that could result in project delays or cancellations." S&P said, "We expect GISI's growth strategy to increasingly focus on its higher-value and high-margin consulting services business (15%), but we expect revenue mix will shift only modestly over the next couple of years. As a result, we expect S&P Global Ratings-adjusted EBITDA margins at 2.9% in 2025 and 3% in 2026. Additional margin upside will depend upon the consulting services' growth pace. The consulting services backlog has grown consistently since 2020 and now accounts for near 20% of total backlog. However, we anticipate incremental G&A (General & Administrative) expenses to support the segment's growth, will partially offset gross profit gains over the next two years. "We see GISI's reliance on subcontractors as a constraint to margin expansion and we expect EBITDA margins will remain thinner relative to our broader engineering and construction (E&C) rated universe (6%-11% range). However, we expect these will continue to exhibit low volatility, as risks for cost overruns are transferred to the subcontractor and customers and mitigated through subcontractor default insurance, while many are repeat subcontractors with whom the company maintains long-standing relationships. The company has a track record of managing risk effectively with only a few projects at loss position of more than $1 million. GISI's bonding capacity was recently expanded to $5 billion, which we consider speaks to the company's track record to deliver projects on-time and on-budget and to its financial flexibility. "GISI's employee-owned structure and subcontractor approach results in sound cash conversion and supports stability of credit metrics. We estimate GISI's sound cash conversion will support the company's ability to fund growth initiatives with internally generated cash flows. At year-end 2024 GISI generated S&P Global Ratings-adjusted free operating cash flow (FOCF) of $275 million. We see the company's track record of cash conversion (65% on average over the past five years) as sustainable in the next few years supported by its nearly matched collections and payables, as per its subcontractor structure. At the same time, GISI runs on a light asset base model and has minimal capital expenditure (capex) needs. As a result, the company's EBITDA conversion to FOCF is sound and stood at 68% at year-end 2024." The company distributes the majority of its free cash flows to shareholders through a modest dividend payout and regular share repurchases. Distributions have increased as a proportion of FOCF over time as the company and its consulting services employee base has scaled, and we expect this trend to continue. Total distributions increased from 23% in 2020 to 140% in 2024 (inclusive of a one-time large repurchase previously anticipated) while employee base increased from 4,000to 15,700 over the same period. As per its employee-ownership structure GISI issues equity that partially offsets distributions and allows it to maintain ample liquidity. As a result, S&P does not anticipate the company will incur incremental debt (other than draws from its revolving line) over the next couple of years and we estimate S&P Global Ratings-adjusted debt to EBITDA will remain in the 1.5x-2x through 2026 and discretionary cash flows defits (inclusive of shareholder distributions) in the low-to-mid-single digit percents. The upgrade incorporates an upward revision to its business risk profile and S&P's view that cash is available to repay debt Over the past few years GISI solidified its market position and expanded its addressable market as suggested by its increased revenue base (doubled in the 2020 to 2025 period) and enhanced diversification into more resilient and high-growth end markets including healthcare, mission critical and infrastructure (36% of 2024 revenue) and shifting away from its overweight to corporate interiors (22% of 2024 revenue, down from 59% in 2020). S&P said, "In addition, we see GISI's broadened service offering with an expanded platform of its value-added and higher-margin consulting services business, as a credit positive. Through this platform, the company added a number of international markets (12% of 2024 revenue, up from 6% in 2020) and public sector customers while supporting margin expansion (S&P Global Ratings' adj. EBITDA margins at 2.9% in 2024, up from 2.5% in 2020). We revised our business risk profile assessment on GISI to Fair from Weak and we believe its accessible cash is available to repay debt. As a result, we now calculate debt on a net of cash basis leading to improved leverage metrics by 1.5x." The stable outlook reflects S&P's expectation that GISI platform will continue to show steady organic growth, margin stability, and solid cash flows. We anticipate this will allow the company to maintain debt to EBITDA in the 1.5x-2.0x range over the next couple of years. S&P could lower its ratings on GISI if: -- It increases its shareholder distributions such that it requires to incur incremental debt resulting in weaker credit protection measures; -- S&P Global Ratings adjusted debt to EBITDA increases to above 3x and S&P expects it will be sustained at that level for more than 12-months with FOCF to debt declining below 15%; or -- Operating performance weakens pressuring margins, perhaps because of G&A outpacing growth expectations for the consulting business and adding volatility to profitability measures. S&P could raise its ratings on GISI if: -- The company executes its growth strategy and is able to grow margins towards the mid-single-digit percent area, closer to that of peers' averages achieving higher earnings; and -- S&P Global Ratings-adjusted discretionary cash flow to debt improves to and is sustained above 10% while debt to EBITDA and FOCF to debt remain below 2x and about 20%, respectively. GOLDEN WEST: Saratoga CLO Marks $1.7 Million Loan at 19% Off ------------------------------------------------------------ Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $1,775,000 loan extended to Golden West Packaging Group LLC. to market at $1,434,786 or 81% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Term Loan to Golden West Packaging Group LLC. The loan accrues interest at a rate of 6M USD SOFR+ 5.25% per annum. The loan matures on December 1, 2027. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About Golden West Packaging Group LLC City of Industry, California-based Golden West Packaging Group LLC is an independent converter of corrugated packaging, serving various end-markets. The company has been formed by private equity firm Lindsay Goldberg in 2017 through the combination of four packaging companies and their captive sheet feeder. GOOD EARTH: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Good Earth Staging LLC 5530 Newpark Mall Newark CA 94560 Case No.: 25-40844 Business Description: Good Earth Staging LLC is a home staging and interior design company based in Newark, California. It provides services including full and partial home staging, interior design, moving and storage solutions, as well as cleaning and professional photography. The Company serves homeowners, realtors, investors, and developers across the San Francisco Bay Area. Chapter 11 Petition Date: May 15, 2025 Court: United States Bankruptcy Court Northern District of California Judge: Hon. Charles Novack Debtor's Counsel: Gopal Krishan, Esq. ALLIED LEGAL PC 627 E Calaveras Blvd, Suite 1015 Milpitas CA 95035 Tel: 510-600-3083 Email: Gopal@alliedlegal.us Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Deepak Shah as managing member. A copy of the Debtor's list of 20 largest unsecured creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/NPSLYUQ/Good_Earth_Staging_LLC__canbke-25-40844__0003.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/YEM2YAQ/Good_Earth_Staging_LLC__canbke-25-40844__0001.0.pdf?mcid=tGE4TAMA GOTO GROUP: Saratoga CLO Marks $1.7 Million Loan at 19% Off ----------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $1,719,812 loan extended to Goto Group Inc. to market at $832,389 or 81% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Second Out Term Loan to Goto Group Inc. The loan accrues interest at a rate of 63M USD SOFR+ 4.75% per annum. The loan matures on April 30, 2028. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About Goto Group Inc. GoTo, formerly LogMeIn Inc., is a flexible-work provider of software as a service and cloud-based remote work tools for collaboration and IT management. GRANT ANTIQUES: Case Summary & 10 Unsecured Creditors ----------------------------------------------------- Debtor: Grant Antiques, Inc. 5900 B South US Hwy 1 Grant, FL 32949 Business Description: Grant Antiques Inc. operates as an antique mall offering a wide range of antiques, collectibles, and vintage items. The Company is based in Grant, Florida, with additional presence in Fort Pierce, Florida. It is registered as a Florida corporation and serves antique enthusiasts through its multiple dealer booths and consignment sales. Chapter 11 Petition Date: May 15, 2025 Court: United States Bankruptcy Court Middle District of Florida Case No.: 25-02931 Judge: Hon. Grace E Robson Debtor's Counsel: Brian K. McMahon, Esq. BRIAN K. MCMAHON, PA 1401 Forum Way Suite 730 West Palm Beach, FL 33401 Tel: 561-478-2500 E-mail: briankmcmahon@gmail.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Elizabeth Mendez as president. 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/KESPDXY/Grant_Antiques_Inc__flmbke-25-02931__0001.0.pdf?mcid=tGE4TAMA GREEN SAPPHIRE: Case Summary & 10 Unsecured Creditors ----------------------------------------------------- Debtor: Green Sapphire Holdings, Inc. f/d/b/a Organic Fuels Holdings, Inc. 18 West 140 Butterfield Road, Suite 1500 Oakbrook Terrace, IL 60181 Business Description: The Company provides specialized financial investment services, including portfolio management and investment advisory, operating within the broader financial sector. Chapter 11 Petition Date: May 14, 2025 Court: United States Bankruptcy Court Northern District of Illinois Case No.: 25-07412 Judge: Hon. Jacqueline P Cox Debtor's Counsel: Steven B. Chaiken, Esq. ADELMAN & GETTLEMAN, LTD. 53 West Jackson Boulevard Suite 1050 Chicago, IL 60604 Tel: 312-435-1050 Email: sbc@ag-ltd.com Estimated Assets: $50 million to $100 million Estimated Liabilities: $50 million to $100 million The petition was signed by Garrett Vail as authorized representative of the Debtor. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/APFAO7I/Green_Sapphire_Holdings_Inc__ilnbke-25-07412__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 10 Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Access Management, Civil Litigation Unknown S.A.S., Inc. c/o Cayman Mgt. Ltd., Governors Square, 2nd Fl., 23 Lime Tree Bay Ave., P.O. Box 1569, Grand Cayman KY-1110 Cayman Islands 2. Avocat Lecocqassociate Legal Fees $72,160 Avenue de la Gare-des-Eaux-Vives 28 CH-1208 Geneva Switzerland Dominique Lecocq Tel: +971-4242-784 Email: drl@lecocqassociate.com 3. Citrin Cooperman Professional Unknown 123 N. Wacker Dr. Services Suite 1400 Chicago, IL 60606 Gregg Wirtschoreck Tel: 312-726-8353 Email: gwirtschoreck@citrincooperman.com 4. Dominion Bank Guarantee Unknown 17304 Preston Rd. Obligation Suite 1100 Dallas, TX 75252 Stephanie Velasquez Tel: 469-501-5980 Email: svelasquez@dominionbanking.com 5. Global Capital Civil Litigation Unknown Partners, LLC c/o Cayman Mgt. Ltd., Governors Square, 2nd Fl., 23 Lime Tree Bay Ave., P.O. Box 1569, Grand Cayman KY-1110 Cayman Islands 6. Halloran, Farkas & Kittila LLP Legal Fees $235,891 5722 Kennett Pike Wilmington, DE 19807 Theodora Kittila Tel: 302-257-2025 Email: tk@hft-law.com 7. Paul Cottin Legal Fees Unknown Cottin Avocat Les Galeries du Commerce, BP-1379, Saint-Jean 97133 Saint Barthelemy +590 (0)5 90 27 75 71 +590 (0)6 90 52 86 96 Email: cottinavocats@gmail.com 8. Regus Rent Unknown One Lincoln Centre 18 West 140 Butterfield Road Suite 1500 Oak Brook, IL 60181 Tel: +1 845-466-1022 9. Ryan Cicoski Alleged Unknown 2167 Pikeland Road Promissory Malvern, PA 19355 Note Ryan Cicoski Tel: 331-218-5719 Email: rcicoski@hotmail. com 10. Selas CHV Law Firm Legal Fees Unknown Attn: Charles-Hubert V Centre La Savane, Lieudit Saint-Jean, 97133 Saint-Barthelemy Charles-Hubert Vanoverberghe Tel: +33-6-87-48-4100 Email: contact@chv-lawfirm.com HAPPYNEST REIT: Assurance Dimensions Raises Going Concern Doubt --------------------------------------------------------------- HappyNest REIT, Inc. disclosed in a Form 1-K Report filed with the U.S. Securities and Exchange Commission for the fiscal year ended December 31, 2024, that its auditor expressed substantial doubt about the Company's ability to continue as a going concern. Margate, Florida-based Assurance Dimensions, the Company's auditor, issued a "going concern" qualification in its report dated April 30, 2024, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that for the year ended December 31, 2024, the Company generated negative cash flows from operations of $127,442, has a net loss of $214,312, and has an accumulated deficit of $820,816. These conditions raise substantial doubt about the Company's ability to continue as a going concern. HappyNest said, "We require capital to fund our investment activities and operating expenses. Our capital sources may include net proceeds from the Offering, cash flow from operations and borrowings under loans and credit facilities." "As of December 31, 2024, the Company had operating capital of $42,520 resulting from current assets of $2,850,518 less non-operating current assets of $2,807,998. For the foreseeable future we will be dependent upon our ability to finance our operations from the sale of equity or other financing alternatives. Our principal demands for funds will be to purchase real estate properties and make other real estate investments, for the payment of operating expenses and distributions, and for the payment of principal and interest on any indebtedness we incur. Although we depend upon the net proceeds from the sale of our shares of common stock to conduct substantially all of our operations, we may fund our capital requirements from a variety of other sources." "As of December 31, 2024, our indebtedness primarily consisted of expenses reimbursable to our affiliates for the costs incurred by us in connection with our organization and our Offering, fees payable to our affiliates that we incurred in connection with the acquisitions of our investment properties, as well as stock-based compensation expenses and redemptions payable." "The continuation of the Company as a going concern is dependent upon successful financing through equity investors and profitable investment opportunities expected to have long-term benefits." "Once we have acquired a substantial portion of our real estate portfolio with the proceeds from our Offering, we expect that our debt ratio will not exceed 50% (before deducting depreciation or other non-cash reserves). Although our borrowing policy is not to exceed 50% of the portfolio's net assets (equivalent to 50% of the cost of our assets), we have imposed no limitation on the amount we may borrow for the purchase of individual assets. For example, HappyNest may take on a property level loan at 65% loan-to-cost (LTC) so long as our total portfolio's debt ratio, including all debt financings and other liabilities, does not exceed our limitations. Any debt financing for investments that will render our debt ratio in excess of 50% must be approved by a majority of our independent directors, or our Conflicts Committee, and disclosed to our stockholders in any subsequent public reports." "In order to qualify as a REIT for income tax purposes we are required to pay minimum annual distributions to our stockholders of at least 90% of HappyNest's taxable income (computed without regard to the dividends paid deduction and excluding net capital gain). We intend for our investments to provide sufficient available cash flow from operations to pay distributions. Our Advisor may deem, from time to time, our then-current financial condition capable of supporting distributions in excess of the minimum distribution amount. In the event we are required to pay dividends prior to having invested a substantial portion of the net proceeds from our Offering, our Sponsor or Advisor may choose, at their sole discretion, to defer reimbursements and fees due to them in order to increase the capital available for distributions to stockholders. The amount and frequency of fee reimbursements to our Sponsor and Advisor may adversely impact our ability to make future distributions and requires approval of the majority of our independent directors or our Conflicts Committee prior to payment. As of December 31, 2024, our Sponsor has deferred its right to payment in reimbursement for the costs incurred by it or its affiliates in connection with our organization and our Offering." "Although we depend upon the net proceeds from the sale of our shares of common stock to conduct substantially all of our operations, we may fund our capital requirements from a variety of other sources," the Company concluded. A full-text copy of the Company's Form 1-K is available at: https://tinyurl.com/bdcj8df5 About HappyNest REIT Annapolis, Maryland-based HappyNest REIT, Inc. is a real estate investment trust that focuses primarily on acquiring a diverse portfolio of commercial real estate properties through direct ownership structures and limited partnerships with existing operators. As of December 31, 2024, the Company had $2,850,518 in total assets, $672,958 in total liabilities, and $2,177,560 in total stockholders' equity. HARMONY COVE: Tarek Kiem Named Subchapter V Trustee --------------------------------------------------- The U.S. Trustee for Region 21 appointed Tarek Kiem, Esq., at Kiem Law, PLLC as Subchapter V trustee for Harmony Cove, LLC. Mr. Kiem will be paid an hourly fee of $300 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Kiem declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Tarek Kiem, Esq. Kiem Law, PLLC 8461 Lake Worth Road, Suite 114 Lake Worth, FL 33467 Tel: (561) 600-0406 Email: tarek@kiemlaw.com About Harmony Cove Harmony Cove, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-14846) on April 30, 2025, with $10,000,001 to $50 million in assets and $1,000,001 to $10 million in liabilities. Judge Scott M. Grossman presides over the case. HEALTHCHANNELS INTERMEDIATE: Moody's Withdraws 'Caa3' CFR --------------------------------------------------------- Moody's Ratings withdrew the ratings for HealthChannels Intermediate Holdco, LLC, including the company's Caa3 corporate family rating, Caa3-PD probability of default rating, Caa3 instrument-level rating on the senior secured first lien bank credit facility, and the stable outlook. RATINGS RATIONALE Moody's have decided to withdraw the rating(s) because Moody's believes Moody's have insufficient or otherwise inadequate information to support the maintenance of the rating(s). The company's term loan, which comprised its entire capital structure, matured on April 3rd, 2025, and Moody's have not been able to confirm the status of the loan. Headquartered in Fort Lauderdale, FL, HealthChannels provides medical scribing services to hospitals and physician staffing companies. HealthChannels is majority-owned by private equity firm Vesey Street Capital Partners, LLC. The company generates annual revenues of approximately $250 million. HRNI HOLDINGS: Fitch Alters Outlook on 'B' LongTerm IDR to Stable ----------------------------------------------------------------- Fitch Ratings has revised HRNI Holdings, LLC's (HRNI) Rating Outlook to Stable from Positive. Fitch has also affirmed HRNI's Long-Term Issuer Default Rating (IDR) at 'B' and the senior secured term loan B at 'BB-' with a Recovery Rating of 'RR2'. The Stable Outlook reflects its expectation that HRNI will face operational softness over the near term as it moves to a one-gaming-license structure, resulting in higher taxes, and challenges at its single-site property from the ramp up of PCI's recently opened Wind Creek Chicago Southland casino nearby, keeping EBITDA leverage elevated at about 5.0x until 2026. However, Fitch believes HRNI can defend its strong market position in the greater Chicagoland market over the longer term, while generating FCF in the low single digits. HRNI's IDR reflects its 'b-' Standalone Credit Profile (SCP) with a one-notch uplift due to its relationship with Seminole Hard Rock Entertainment, Inc. (BBB/Stable). Key Rating Drivers Moderate Leverage to Increase: HRNI's EBITDA leverage decreased to 4.2x in 2024 from 4.7x the prior year, due to mandatory amortization under its term loan. Fitch anticipates leverage to increase to about 5.0x in 2025, attributed to the transition from a two-license to a one-license structure midyear, which will increase gaming taxes under Indiana's progressive tax system. In addition, competition from PCI's Wind Creek Chicago Southland casino, which opened last November and is located a short drive from HRNI, will likely affect HRNI's customer base as PCI expands its marketing efforts. Some weakness in the regional markets is also expected to compress EBITDA. In 2026, leverage is projected to remain stable as the full-year impact of increased gaming taxes influences HRNI, though it will be counterbalanced by the required term loan amortization. Subsequently, Fitch expects leverage to sequentially taper to about 4.5x as the steady annual 5% ($20.8 million) debt repayment under the term loan normalizes leverage to some extent. Competitive Pressure: HRNI will face some competition from new properties. The recent opening of PCI's Wind Creek facility near the Illinois-Indiana border directly competes with HRNI's strong presence. In addition, Bally's permanent casino, while farther away, could drive some softness eventually. The remaining 14 Illinoisan casino license holders are situated further away and do not pose much of a threat. Fitch's base case does not contemplate a large increase to the Illinois market, thereby assuming some cannibalization. In the Chicagoland region, HRNI's nearest competitors are Ameristar and Horseshoe Hammond, both in Lake County (Illinois), and to some extent the smaller Blue Chip in LaPorte County (Indiana), all of which have donated market share since HRNI's opening in mid-2021. The two casinos in Illinois' Joliet County (Hollywood and Harrah's) have also lost market share over the past two years, with the former experiencing a larger contraction. Lack of Diversification: HRNI operates a single property in Indiana's competitive market, but it is subject to new supply risk, limiting rating upside as future cash flow generation can be challenged. Most single-site operators are rated in the single 'B' category unless there are unique end-market dynamics. These include monopolistic positions, being a clear market leader, or having a conservative balance sheet. HRNI's geographic concentration offsets decent leverage and credit metrics. Strong Market Position: HRNI has taken market share from nearby participants such as Ameristar and Horseshoe Hammond since its opening in May 2021. It benefits from its proximity to the highway, brand recognition, and quality of offerings, resulting in win-per-day metrics above area averages. Bally's temporary casino in Medinah Temple has had only a marginal impact on HRNI, and while its $1.7 billion permanent integrated resort project, likely opening in 2027, could have some effect, it will not be substantial. The new casino may grow the market slightly but its location in downtown Chicago will likely not incentivize suburban dwellers to consistently return to the city during weekends. Tepid Regional Gaming Outlook: Fitch anticipates regional gaming to moderate sequentially in 2025, relatively in line with a low-single-digit decline in 2024, following the highs of the prior two years. This moderation is due to softness in the lower-end segment of the consumer database (both visitation and spend) as discretionary income tightens for value-oriented guests. Indiana is also expected to continue facing competition from sportsbooks in cross-border gaming venues such as Ohio and Kentucky, which legalized sports betting in 2023 and compete with its land-based sports betting offering. SHRE Relationship Positive: Fitch applies its stronger parent/weaker subsidiary path under its "Parent and Subsidiary Linkage Rating Criteria" to HRNI. The association with Seminole Hard Rock Entertainment, Inc. (SHRE) warrants a one-notch uplift from HRNI's SCP and offers a stronger parent. SHRE's 'BBB' IDR is attributed to the guarantee of its debt by Seminole Tribe of Florida (BBB/Stable). SHRE has weak legal and strategic incentives to support HRNI, as there is no downstream guarantee and HRNI's financial contribution is low relative to SHRE's. HRNI shares common executive management with SHRE, which owns 76% of HRNI and controls most of its board. Peer Analysis HRNI's SCP is consistent with most other single-site gaming operators, including Empire Resorts Inc. (B-/Rating Watch Negative; SCP: CCC). HRNI's market dynamics are similar to Empire's, including competitive operating environments with new supply risk, single-site properties and similar cash flow generation. HRNI is exposed to new competition through the recently opened Wind Creek Chicago Southland and the pending Bally's permanent casino resort in Chicago in 2027. HRNI is considered stronger than its larger, more geographically diversified regional gaming peers such as Bally's Corporation (B-/Negative), due to the latter's relatively high EBITDAR leverage of about 7.0x, which is expected to increase in the 8.0x-9.0x range over the near term, execution risk in the development of its Chicago project as well as other potential development opportunities and a stable international Interactive business. However, PCI Gaming Authority (BBB-/Negative), an unincorporated instrumentality of The Poarch Band of Creek Indians, is rated higher than HRNI. This rating reflects PCI's conservative financial policy, with EBITDA leverage of about 2.0x, and its geographic diversification. PCI owns and operates three tribal casinos in Alabama, where it enjoys a favorable operating environment, as well as two commercial casinos (one each in Pennsylvania and Florida) and two in the Caribbean. Key Assumptions - Total revenues are volatile over the forecast period, with 2025 results declining in the mid-single digits due to competition from the newly opened PCI's Wind Creek Chicago Southland facility in November 2024, followed by nominal growth in 2026. A 2027 sales decline in the mid-single digits due to the opening of Bally's permanent casino and resort is expected to be followed by marginal growth thereafter; - EBITDA margin declines to about 16% in 2025 due to increased gaming taxes and settles around 15% over the rating horizon; - Annual capex as a percentage of revenue hovers in the 3.5%-4% range, largely driven by maintenance capex; - Debt remains tied to the revolver and term loan B, with debt repayments assumed to be associated with mandatory amortization under the term loan; - No shareholder distributions or acquisitions assumed; - Base interest rates assumptions reflect the current SOFR curve. Recovery Analysis The recovery analysis assumes HRNI would be reorganized as a going concern in bankruptcy rather than be liquidated. Fitch has assumed a 10% administrative claim and full draw on the $35 million priority revolver. A going concern EBITDA of $50 million, down from its previous estimate of $55 million, reflects the permanent impact of competitiveness stemming from new openings and a sustainable level of operating performance following a restructuring scenario. Its going concern EBITDA assumes a level of win per unit per day of slots and tables, which is well below the current average in the Chicagoland market and below where the casino is currently trending: about $500 and $5,000 for slots and tables, respectively. Fitch expects non-gaming revenue to remain at about 10% of total property revenue. Fitch applies a 6.0x enterprise value/EBITDA multiple, which reflects the competitiveness of the Chicagoland market and new supply risk as well as the property's limited operating record. It also reflects the single-site limitations of the credit. The quality of the property and its performance help to offset these concerns. The 6.0x multiple is aligned with Fitch's 5.0x-7.0x recovery multiples band for the U.S. gaming industry. Fitch forecasts a post-reorganization enterprise value of $300 million. After adjusting for administrative claims, the remaining value is allocated first to the revolver, which has stated priority over the term loan B, resulting in an 'RR1' recovery, and then to the term loan, which results in an 'RR2' recovery. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - FCF approaching breakeven; - Decrease in rating linkage with SHRE or weakening of SHRE's SCP; - EBITDA leverage sustained above 6.0x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Greater degree of confidence that EBITDA leverage will remain below 5.0x and the FCF margin will approach 10% amid the competitive pressures in the greater Chicago area; - An increase in rating linkage with SHRE; - Geographical diversification away from the Chicagoland market. Liquidity and Debt Structure At Dec. 31, 2024, HRNI had $48.3 million in cash and $27 million available under its $35 million revolver due December 2026. Fitch expects HRNI to generate sufficient cash flow to pay its scheduled annual debt amortization of 5% under its term loan B and nominal capex requirements. Fitch expects the FCF margin to be in the low single digits over the forecast horizon in part due to tax headwinds as HRNI transitions from a two-license to a one-license structure. In addition, Indiana's tiered gaming tax regime will fully take effect, and competitive challenges are anticipated. Issuer Profile HRNI Holdings, LLC (formerly known as Spectacle Gary Holdings, LLC) is the owner and operator of the Hard Rock Casino Northern Indiana, a casino development located in Gary, IN, that caters to the greater Chicagoland and northern Indiana gaming markets. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- HRNI Holdings, LLC LT IDR B Affirmed B senior secured LT BB- Affirmed RR2 BB- INDIVIDUALIZED ABA: Quality of Care Maintained, 3rd PCO Report Says ------------------------------------------------------------------- Jacob Nathan Rubin, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the Northern District of California his third report regarding the quality of patient care provided by Individualized ABA Services for Families, LLC. The third report consists of the PCO's further evaluation of the company's adherence to, and compliance with the applicable medical standard of patient care as defined by the Institute of Medicine (IOM) (Medicare & Lohr), during the bankruptcy proceedings. The PCO explained that since the submission of the third report, it was clarified that no new company had been created. Instead, the company adopted a "Doing Business As" (DBA), "Unity ABA," under the existing legal entity. The DBA was implemented, according to the company's principal, to better reflect the company's mission and growth, but there were no changes to the company's legal structure, tax ID, ownership, or operations. The PCO found that the company now operates exclusively via telehealth and no longer provides in-person services. Despite this shift, all remaining patients continue to receive uninterrupted, high-quality ABA therapy. The PCO verified that all standards of care remain in compliance with professional guidelines. Mr. Rubin observed that across all three reports, patient safety and quality of care have remained stable and consistent. The transition to a DBA was administrative in nature and did not affect the delivery of care. The PCO has confirmed, through direct evaluation and communication with the company's principal, that patients are receiving appropriate and uninterrupted services in a fully telehealth-based model. He has confirmed that the company is meeting the standard of care. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=aK2D0j from PacerMonitor.com. The ombudsman may be reached at: J. Nathan Rubin, M.D. 4955 Van Nuys Blvd., #308, Sherman Oaks, CA 91403 Telephone: (818) 501-1455 Email: jnrubinmd@yahoo.com About Individualized ABA Services for Families Individualized ABA Services for Families, LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-41559) on October 2, 2024, with total assets of $193,244 and total liabilities of $1,635,914. Raajna Naidu, chief executive officer, signed the petition. Judge William J. Lafferty oversees the case. The Debtor is represented by Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger. Jacob Nathan Rubin is the patient care ombudsman appointed in the case. INKED PLAYMATS: Tarek Kiem Named Subchapter V Trustee ----------------------------------------------------- The U.S. Trustee for Region 21 appointed Tarek Kiem, Esq., at Kiem Law, PLLC as Subchapter V trustee for Inked Playmats Corp. Mr. Kiem will be paid an hourly fee of $300 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Kiem declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Tarek Kiem, Esq. Kiem Law, PLLC 8461 Lake Worth Road, Suite 114 Lake Worth, FL 33467 Tel: (561) 600-0406 Email: tarek@kiemlaw.com About Inked Playmats Corp. Inked Playmats Corp. is a direct-to-consumer e-commerce business specializing in custom gaming accessories. Inked Playmats filed Chapter 11 petition (Bankr. S.D. Fla. Case No. 25-14046) on April 14, 2025, listing up to $500,000 in assets and up to $10 million in liabilities. Thomas Pool, president of Inked Playmats, signed the petition. Judge Mindy A. Mora oversees the case. Philip J. Landau, Esq., at Landau Law, PLLC, represents the Debtor as bankruptcy counsel. ISAGENIX INTERNATIONAL: Saratoga CLO Marks $1.3M Loan at 87% Off ---------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $1,378,403 loan extended to Isagenix International, LLC to market at $186,084 or 13% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Term Loan to Isagenix International, LLC. The loan accrues interest at a rate of 6M USD SOFR+ 2.50% per annum. The loan matures on April 13, 2028. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About Isagenix International, LLC Isagenix International LLC is a privately held multi-level marketing company that sells dietary supplements and personal care products. The company, based in Gilbert, Arizona, was founded in 2002 by John Anderson, Jim Cover, and Kathy Cover. J.C.C.M. PROPERTIES: Case Summary & Two Unsecured Creditors ----------------------------------------------------------- Debtor: J.C.C.M. Properties, Inc. 106 Crojack Lane Wilmington NC 28409 Business Description: J.C.C.M. Properties, Inc. leases real estate, with its main assets situated at 1585 Crater Lake in Kennesaw, Georgia. Chapter 11 Petition Date: May 14, 2025 Court: United States Bankruptcy Court Northern District of Georgia Case No.: 25-55412 Debtor's Counsel: Will Geer, Esq. ROUNTREE, LEITMAN, KLEIN & GEER, LLC 2987 Clairmont Road, Suite 350 Atlanta, GA 30329 Tel: 404-584-1238 Email: wgeer@rlkglaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $50 million to $100 million The petition was signed by Constantine Michael Psilos as vice president. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/HXSODUY/JCCM_Properties_Inc__ganbke-25-55412__0001.0.pdf?mcid=tGE4TAMA List of Two Unsecured Creditor: Entity Nature of Claim Claim Amount 1. Gail McLelland Judgment Liens $34,870,346 c/o Andrew S. Ashby, Esq. 445 Franklin Gateway SE Marietta, GA, 30067 2. Jennifer Alsup Judgment Liens $34,870,346 c/o Andrew S. Ashby, Esq. 445 Franklin Gateway SE Marietta, GA, 30067 JP INTERMEDIATE: Saratoga CLO Marks $3.3 Million Loan at 96% Off ---------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $3,370,462 loan extended to JP Intermediate B, LLC to market at $134,818 or 4% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Term Loan to JP Intermediate B, LLC. The loan accrues interest at a rate of Prime 6.50% per annum. The loan matures on November 20, 2027. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About JP Intermediate B, LLC JP Intermediate B, LLC retails vitamins and nutritional supplements. KEEP IT GYPSY: Case Summary & One Unsecured Creditor ---------------------------------------------------- Debtor: Keep it Gypsy, Inc 3219 Old Greenwood Road Fort Smith, AR 72903 Business Description: Keep It Gypsy, Inc. is a retailer and wholesaler based in Fort Smith, Arkansas, that offers handcrafted leather goods, jewelry, and graphic tees. The Company operates retail locations and maintains a presence in wholesale markets such as the Dallas World Trade Center and Atlanta apparel trade shows. Chapter 11 Petition Date: May 15, 2025 Court: United States Bankruptcy Court Western District of Arkansas Case No.: 25-70837 Judge: Hon. Bianca M. Rucker Debtor's Counsel: Stanley V. Bond, Esq. BOND LAW OFFICE 525 S. School Ave. Suite 100 Fayetteville, AR 72701 Tel: 479-444-0255 Fax: 479-235-2827 E-mail: attybond@me.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Carmen Geoates as president. The debtor has listed Louis Vuitton Malletier, S.A.S as its sole unsecured creditor, with an estimated $1.5 million claim stemming from a lawsuit. The claim is being handled through attorney Dawn Estes of Estes Thorne Ewing & Payne PLLC, based in Dallas, Texas. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/5ABGXEI/Keep_it_Gypsy_Inc__arwbke-25-70837__0001.0.pdf?mcid=tGE4TAMA KEYSTONE PASSIONATE: Lisa Rynard Named Subchapter V Trustee ----------------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed Lisa Rynard, Esq., at the Law Office of Lisa A. Rynard as Subchapter V trustee for Keystone Passionate Care, LLC. Ms. Rynard will be paid an hourly fee of $325 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Rynard declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Lisa A. Rynard, Esq. Law Office of Lisa A. Rynard 240 Broad Street Montoursville, PA 17754 Phone: (570) 505-3289 Email: larynard@larynardlaw.com About Keystone Passionate Care Keystone Passionate Care, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Pa. Case No. 25-01004) on April 11, 2025, with $100,001 to $500,000 in both assets and liabilities. Judge Henry W. Van Eck presides over the case. Robert E. Chernicoff, Esq., at Cunningham and Chernicoff PC represents the Debtor as legal counsel. KOHL'S CORP: Fitch Rates New $360MM Secured Notes Due 2030 'BB+' ---------------------------------------------------------------- Fitch Ratings has assigned a 'BB+' rating with a Recovery Rating of 'RR2' to Kohl's Corporation's proposed $360 million secured notes due 2030. Proceeds will be used to repay a similar amount of unsecured notes due July 2025. Fitch has also affirmed Kohl's existing ratings, including its Long-Term Issuer Default Rating (IDR) at 'BB-'. The Rating Outlook remains Negative. Kohl's rating and Outlook reflects its ongoing operational challenges. The company is adjusting its operating strategy, but its ability to stabilize market share, particularly in apparel, is uncertain. The rating recognizes Kohl's tools in executing its turnaround, including a reasonable asset base and ability to invest $400 million in capital expenditures. Fitch projects 2025 EBITDA could decline 15% to 20% toward $800 million, with mid-single-digit revenue declines, yielding low-4x EBITDAR leverage. Fitch could revise the Outlook with evidence that Kohl's can improve its topline trajectory and stabilize EBITDA around $800 million. Key Rating Drivers Weakening Performance: Kohl's results have been weak, with 2024 revenue and EBITDA declining 20% and 50% from 2019 levels, respectively, despite growth in newer categories like beauty through Sephora. The company's market share declines in core categories like apparel appear worse than those of peers in the challenged department store industry, suggesting company-specific execution challenges. Recent events, including weak 2025 guidance implying another year of revenue and EBITDA declines, CEO changes, the announced closure of 27 stores, or about 2% of the base, and a 75% dividend reduction, underscore Kohl's near-term challenges. The company's near-term focus is to sharpen the merchandise assortment, improve the company's value messaging, and optimize its omnichannel model to provide a frictionless shopping experience. Fitch believes these are reasonable focus areas but given the company's recent history, magnified by secular challenges in the department store industry and near-term headwinds for discretionary goods, the timing and level of operating stabilization remains uncertain. Operating Challenges: Kohl's weak operating trajectory and evolving strategies to stabilize performance highlight the difficulties in effectively executing department store operations. Department stores will continue to face longer-term secular obstructions, including consumers spending less time in malls (which has less impact on Kohl's, given its off-mall positioning), changes in apparel buying behavior, and increasing competition from newer channels, including value-oriented and online players. Nearer-term challenges also include somewhat waning consumer sentiment and potential impacts from tariffs on consumer inflation and operational complexity. Fitch historically viewed Kohl's as able to navigate industry challenges and defend or even gain share. The company has a reasonable store base with limited indoor mall exposure, good omnichannel capabilities, and cash flow generation to materially invest in topline strategies, along with productive relationships with merchandise vendors and key partners. Following recent performance, Fitch believes the company's medium-term turnaround prospects are limited, with revenue and EBITDA stabilizing around $15 billion and $800 million, respectively, as a best-case scenario. Near-Term Volatility: Fitch expects the U.S. retail sector to face near-term challenges, including declines in consumer sentiment, business disruption and rising costs related to evolving U.S. tariff policies. Discretionary categories could see revenue down as much as mid-single digits with outsized EBITDA declines given tariff-related cost pressure. Kohl's could see EBITDA decline up to 20% in 2025, although the company should generate positive FCF and has reasonable liquidity to withstand near-term volatility assuming it successfully completes its current notes offering. Leverage Around Low-4x: Kohl's EBITDAR leverage could be about 4.5x in 2025 and in the low-4x range beginning in 2026, with EBITDAR fixed charge coverage in the high-1x range. The company would need to demonstrate stabilizing operations to support its existing rating, with leverage remaining below 4.5x. Pro forma for this issuance, the company's debt structure would include $1.2 billion in unsecured notes and the new secured notes. The secured notes would be Kohl's next maturity in 2030. Positive Cash Flow Generation: Kohl's strong cash generation is an asset, allowing the company some flexibility to invest in topline initiatives. The company plans to invest about $400 million, or mid-2% of revenue, in 2025 capex. These capex investments could support the company's omnichannel model, including enhancements to ecommerce and supply chain infrastructure, as well as store refreshes. Following the company's 75% dividend cut, Fitch projects FCF after dividends, with non-cash finance lease amortization added back, to be around $250 million in 2025. Peer Analysis Other Fitch-rated U.S. department store peers include national competitors Macy's, Inc. (BBB-/Stable) and Nordstrom, Inc. (BB/Stable), as well as regional player Dillard's, Inc. (BBB-/Positive). Each is contending with the industry's secular headwinds and is continuously refining strategies to defend market share. Their initiatives include investments in omnichannel models, reshaping portfolios to reduce exposure to weaker indoor malls, and efforts to strengthen merchandise assortments and service levels. These initiatives have had varying levels of success in recent years, with Dillard's showing the best operating trajectory. Nordstrom and Kohl's have produced the weakest results in terms of topline and profitability. Macy's results have been somewhat mixed, with topline declines mitigated by good inventory and expense management with limited EBITDA contraction. Structurally, the three national players should be best positioned to accelerate investment and transformation efforts, given their greater relative scale and cash flow generation. In particular, Kohl's should benefit from its off-mall real estate positioning, while Nordstrom should benefit from its exposure to the off-price subsector and the higher-end merchandise positioning of its full price locations. However, neither has demonstrated the ability to capitalize on these fundamental advantages, which Fitch believes is likely due to execution challenges. Dillard's has modest leverage due to its limited debt levels. Fitch projects Macy's EBITDAR leverage to trend in the high-2x range, while Nordstrom's EBITDAR leverage could trend near the 3x range. Fitch expects Kohl's leverage to trend in the low-4x range, assuming it can stabilize EBITDA around $800 million. Key Assumptions Fitch projects Kohl's 2025 revenue to decline by about 7%, reaching $15 billion from $16.2 billion in 2024, and well below the $20 billion recorded in 2019. Declines in 2025 are forecast to be driven by comparable store sales decreases, particularly in the apparel and accessories categories. Revenue could stabilize around $15 billion, assuming the company can continue to grow newer categories like beauty while implementing strategies to stabilize the declining apparel business. Fitch projects Kohl's comparable store sales to remain flattish to slightly negative through the medium term. EBITDA, which was about $1 billion in 2024 compared to $2 billion in 2019, could moderate to about $800 million in 2025, given revenue declines and some topline investments. EBITDA could stabilize around $800 million if revenue stabilizes around $15 billion, with margins trending in the mid-5% range, compared to about 10% in 2019. Annual FCF (after dividends and adding back non-cash finance lease amortization) is projected to trend around $250 million over the medium term, given its EBITDA assumptions, neutral working capital, about $400 million of annual capex, and annual dividends in the $55 million range. FCF could be directed toward debt reduction, share buybacks or additional business reinvestment. The company ended 2024 with $290 million outstanding on its ABL. EBITDAR leverage (capitalizing leases at 8x), which was 3.9x in 2024 compared to the low-2x range between 2018 and 2021 (excluding pandemic-affected 2020) due to lower EBITDA, could sustain below 4.5x over the medium term, given Fitch's EBITDA projections. Achieving the above projections, including stabilizing revenue and EBITDA, which supports Fitch's confidence in the company's ability to defend its market share over time, could result in a revision of Kohl's Rating Outlook. Kohl's capital structure primarily consists of fixed-rate debt. Pricing for the company's ABL is based on the secured overnight financing rate (SOFR), with rates forecast to be in the 4% to 5% range over the medium term, given the higher interest rate environment. Recovery Analysis Fitch does not employ a waterfall recovery analysis for issuers assigned ratings in the 'BB' category. As a rating moves further up the speculative grade continuum, the notching becomes more compressed. Fitch rates Kohl's ABL 'BB+'/'RR1', notched up two ratings from the IDR given its security package. The company's proposed secured notes are also notched up two ratings from the IDR to 'BB+'/'RR2', while its unsecured notes are rated 'BB-'/'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade could result from EBITDAR leverage sustained above 4.5x, due to either weaker-than-expected operating performance or financial policy decisions; - EBITDAR fixed charge coverage sustained near 1.5x would also be a rating concern. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An Outlook revision could result from evidence of revenue and EBITDA stabilization, yielding EBITDAR leverage sustained below 4.5x and EBITDAR fixed charge coverage close to 2x; - An upgrade to 'BB' would result from a combination of better-than-expected operating performance and debt reduction, which drives EBITDAR leverage below 4.0x and EBITDAR fixed charge coverage toward 2.5x. Liquidity and Debt Structure As of Feb. 1, 2025, Kohl's had $134 million in cash and $290 million borrowed on its $1.5 billion asset-based lending (ABL) credit facility, which matures in January 2028. The ABL is governed by a borrowing base of inventory and receivables. As of Feb. 1, 2025, Kohl's debt included $1.5 billion of unsecured notes and $290 million in borrowings on its ABL facility. The company plans to issue $360 million in new five-year notes to repay a similar amount of notes due July 2025. The proposed debt, to be issued by Kohl's, will be secured by seven distribution centers and four ecommerce fulfillment centers, which together are valued at about $750 million. Fitch projects the notes will have a coupon near 10%. Post issuance, the new debt will be Kohl's next notes maturity. Fitch applies the 8x rent methodology to calculate Kohl's lease-adjusted debt. The company has reset the useful life of many of its leased properties following capital investments to support the Sephora rollout, which has caused Kohl's implied lease multiple to increase from the 8x-9x range to over 10x. Given the accounting reset, Fitch views its historical 8x methodology as a more appropriate measurement of Kohl's lease obligations. Issuer Profile Kohl's is the second largest department store operator in the U.S. with approximately $16 billion in revenue across its digital presence and around 1,170 stores, largely in off-mall centers. Summary of Financial Adjustments Financial statement adjustments that depart materially from those contained in the published financial statements of the relevant rated entity or obligor are disclosed below: - EBITDA adjusted for stock-based compensation; - Operating lease expense capitalized by 8x for historical and projected adjusted debt. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Kohl's Corporation LT IDR BB- Affirmed BB- senior secured LT BB+ New Rating RR2 senior unsecured LT BB- Affirmed RR4 BB- senior secured LT BB+ Affirmed RR1 BB+ LAID RIGHT: Joseph Frost Named Subchapter V Trustee --------------------------------------------------- The U.S. Bankruptcy Administrator for the Eastern District of North Carolina appointed Joseph Frost, Esq., as Subchapter V trustee for Laid Right Site Development, Inc. Mr. Frost, a member of the law firm of Buckmiller, Boyette & Frost, PLLC, will be paid an hourly fee of $350 for his services as Subchapter V trustee. About Laid Right Site Development Laid Right Site Development, Inc. is a site development contractor specializing in grading and utility services. It operates in North Carolina, with locations in Jefferson and Sanford. Its services support infrastructure and construction projects across the region. Laid Right Site Development 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 reported between $1 million and $10 million in assets and up to $50,000 in liabilities. The Debtor is represented by JM Cook, Esq. at J.M. Cook, P.A. LAKELAND TOURS: Saratoga CLO Marks $1.1 Million Loan at 98% Off --------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $1,127,568 loan extended to Lakeland Tours, LLC to market at $28,189 or 2% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Holdco Fixed Term Loan to Lakeland Tours, LLC. The loan accrues interest at a rate of fixed per annum. The loan matures on September 27, 2027. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About Lakeland Tours, LLC Lakeland Tours LLC provides educational student travel programs. The Company offers history, science, discoveries, onstage, sports, and career-focused travel opportunities. LBM ACQUISITION: Fitch Affirms 'B' LongTerm IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) of LBM Acquisition, LLC (LBM) at 'B' and BCPE Ulysses Intermediate, Inc. (BCPE) at 'B-'. Fitch has also affirmed the 'BB' issue rating with a Recovery Rating of 'RR1' on the LBM's ABL facility, 'B'/'RR4' issue rating on the senior secured term loan B and 'CCC+'/'RR6' issue rating on the unsecured notes and the 'CCC'/'RR6' issue rating on the Holdco PIK note issued by BCPE. The Rating Outlook is Stable. LBM's IDR reflects its strong market position within the building products distribution sector and positive operating cashflow, partially offset by a weaker competitive position and operating margins relative to higher-rated products manufacturers. Long-term risk factors include high leverage, high cyclicality of its end markets and the sponsor's aggressive capital allocation strategy. BCPE is the parent holding company of LBM. Fitch expects leverage to return within the rating sensitivities as demand normalizes, which supports the Stable Rating Outlook. Key Rating Drivers Elevated Leverage: Fitch-calculated consolidated EBITDA leverage was 6.6x (including BCPE PIK notes) for the YE 2024, while Opco leverage (excluding BCPE PIK notes) was 6.1x. Fitch expects consolidated leverage to be around 7.0x in 2025, with Opco leverage at about 6.6x. Fitch projects EBITDA leverage to be below 6.5x by YE 2026, driven by margin improvement and acquisition-related EBITDA growth. The company is expected to temporarily operate outside of negative rating sensitivities throughout 2025, with EBITDA leverage above 6.5x, due to the subdued demand environment and competitive pressures. Aggressive Capital Allocation Strategy: Fitch expects ownership under Bain Capital and Platinum Equity to manage LBM's balance sheet aggressively through further debt-financed M&A activity and occasional shareholder distributions. Fitch expects the company to continue consolidating the building products distribution sector during the rating horizon. Fitch believes ownership has a high leverage tolerance, including debt-financed acquisitions. The company previously made $650 million in shareholder distributions in 2022 and $500 million in 2023. However, the company has not made any distributions in 2024, and Fitch does not expect meaningful distributions in 2025. Highly Cyclical End Markets: The majority of LBM's sales are to highly cyclical end markets, and its substantial exposure to new construction negatively weighs on the credit profile. LBM estimates that about 68% of 2024 sales were to new home construction and 12% to commercial new construction and other end markets. The remaining 20% of sales were to the repair and remodel end markets, which Fitch views as less cyclical than new construction. Fitch expects the company's high exposure to the new residential construction and lumber sales to result in more volatile earnings and credit metrics. Subdued Demand Environment: Fitch expects demand weakness as new residential construction, and commercial construction activity remain challenging amid uncertain tariff policies and higher interest rates. Potential inflationary pressures from tariffs and immigration policies could further impact construction activity but depend on scope and timing. Fitch's rating case assumes a slight decrease in sales volume in 2025 and lumber prices averaging $400-$450 per thousand board feet, resulting in low single-digit organic revenues decline this year. The forecast projects organic revenues to rise 1%-3% in 2026 as construction activity improves. Relatively Low but Resilient Margins: Fitch expects EBITDA margins to settle between 8%-9% in 2025 and 2026, compared to 8.8% in 2024, despite lower operating leverage due to lower volumes. LBM's profitability metrics are commensurate with 'B'-category building products issuers and are roughly in line with large distributor peers. The company's high variable cost structure and ability to reduce working capital should help preserve positive FCF and liquidity through a modest construction downturn. However, significant declines in EBITDA margins or a sharp, sustained drop in lumber prices could lead to unsustainable leverage levels. Commodity Deflation, Earnings Decline: LBM's revenues and EBITDA margins have exposure to lumber prices, as wood products account for 25% of sales and contribute lower gross margins compared to specialty products. Revenues from wood products are sensitive to lumber prices fluctuations, with period of deflation leading to lower overall gross profit, while period of inflation provide opportunity for higher overall gross profit. Broad Product Offering: LBM offers a comprehensive range of products including, structural, interior and exterior products. LBM also offers installation services and light manufacturing, positioning itself as a one-stop shop for residential and commercial construction needs. This broad product breadth provides LBM a competitive advantage over smaller distributors and diversifies its supplier base. Competitive Position: LBM has strengthened its competitive position in the pro building products sector in recent years. Fitch estimates LBM is among the largest pro building products distributors in the U.S. by revenue. However, LBM's competitive position is weaker than investment-grade building product manufacturer peers, due to the highly fragmented nature of the distribution industry and its exposure to commoditized product offerings. Parent and Subsidiary Linkage: Fitch considers LBM's to have a stronger credit profile than its parent BCPE, due to LBM's unrestricted access to operating cash flows. BCPE, the issuer of the financial statements, has no operations and has qualified access to cash flows. By following the 'Stronger Subsidiary Path', Fitch categorizes 'legal ring fencing' and 'access & control' as 'porous'. Fitch assesses LBM's standalone and consolidated credit profiles at a 'b' rating level. BCPE is rated one notch lower than the consolidated credit profile to reflect the risk that the parent's access to subsidiary cash flow could be constrained by covenants on LBM's debt. Peer Analysis LBM's scale is a credit strength relative to other 'B' category building products distributor and manufacturer peers, such as Park River Holdings, Inc. (B-/Stable), Doman Building Materials Group Ltd. (Doman; B+/Stable) and Chariot Buyer LLC (dba Chamberlain Group; B-/Stable). LBM has meaningfully weaker profitability metrics than Chamberlain Group but has lower leverage. LBM's margins are slightly lower than Park River but with similar leverage. Doman has lower margins but significantly lower leverage than LBM. LBM is more exposed cyclical new construction market relative to these peers. Overall financial flexibility among these peers is comparable, with no material debt maturities in the near- to intermediate-term. Key Assumptions - Organic revenues to decrease low-single digits in 2025 and increase low single digits in 2026; - EBITDA margins of 8.0%-9.0% in 2025 and 2026; - EBITDA leverage of 6.5x-7.5x in 2025 and 6.0x-7.0x in 2026; - Capex to be 1.5%-2.0% of revenues; - FCF margin of 1.5%-2.5% in both 2025 and 2026; - $250 million-$300 million in acquisitions anticipated annually, funded in part by debt, with no shareholder distributions in 2025; - Average SOFR of 4.25% in 2025 and 3.75% in 2026. Recovery Analysis Recovery Assumptions: The recovery analysis assumes that LBM would be considered a going concern (GC) in bankruptcy rather than liquidated. Fitch has assumed a 10% administrative claim and a 3% concession payment from the LBM's secured lenders to the LBM's unsecured bondholders in the analysis. Fitch's GC EBITDA estimate of $500 million estimates a post-restructuring sustainable EBITDA. The GC EBITDA is based on Fitch's assumption that distress would arise from weakening in the housing market combined with sustained competitive pressures and poor operating performance. Fitch estimates annual revenues to be about 15% below pro forma 2024 levels, and a Fitch-adjusted EBITDA margins around 7.5%-8.0% would capture the lower revenue base of the company after emerging from a housing downturn, plus a sustainable margin profile after right sizing. This results in Fitch's $500 million GC EBITDA assumption. Fitch assumes a 6.0x GC EBITDA multiple to calculate the enterprise value (EV) in a recovery scenario. The 6.0x multiple is comparable to the multiple used for Park River Holdings, Inc., which has higher margins but is considerably smaller than LBM. The 6.0x multiple is higher than the 5.5x multiple utilized for New AMI I (B/Stable) and Doman Building Products Group (B+/Stable). These peers are smaller in scale and have narrower product offerings than LBM. LBM's GC EBITDA multiple is lower than Chamberlain Group's at 6.5x due to Chamberlain's leading market position and meaningfully stronger profitability metrics through the cycle when compared to LBM. Fitch assumes that in a recovery scenario, the borrowing base under the company's $1.75 billion ABL revolver would shrink as inventory and receivable balances decline with lower revenue and EBITDA. Fitch assumes the ABL revolver would have $1.2 billion outstanding at recovery, considering potential reductions in the borrowing base due to deflating lumber prices and contracting volumes and would have prior-ranking claims to the senior secured term loan B in the recovery analysis. The analysis results in a recovery corresponding to an 'RR1' for the $1.75 billion ABL and 'RR4' for LBM's $3.3 billion senior secured term loan B. LBM's and BCPE's unsecured debt receive recoveries corresponding to an 'RR6'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade LBM - Fitch's expectation that standalone EBITDA leverage (opco leverage) will be sustained above 6.5x; - CFO-Capex/debt consistently below 4%; - Escalation of shareholder friendly activity; this may include additional debt at the holdco, such that Fitch deems the probability of default materially increasing at LBM, or dividends decisions at LBM aimed at supporting the holdco; - EBITDA interest coverage falls below 2.0x; - Fitch's expectation that FCF will approach neutral to negative. BCPE - Deterioration in the consolidated credit profile of the group, as evidenced by total consolidated EBITDA leverage (consolidated leverage) sustaining above 6.5x (which includes holdo PIK toggle notes as debt). Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade LBM - Fitch's expectation that standalone EBITDA leverage (opco leverage) will be sustained below 5.0x; - CFO - capex/debt consistently above 7%; - The company lowers its end-market exposure to the new home construction market to less than 50% of sales in order to reduce earnings cyclicality and credit metric volatility through the housing cycle; - LBM maintains a strong liquidity position, with no material short-term debt obligations. BCPE - Improvement in the consolidated credit profile of the group, as evidenced by total consolidated EBITDA leverage (consolidated leverage) sustaining below 5.0x (which includes holdco PIK toggle notes as debt). Liquidity and Debt Structure LBM had $2.1 million of cash as of Dec. 31, 2024 and about $919.3 million of borrowing availability under its $1.75 billion ABL facility with a $100 million tranche maturing in May 2027 and the remaining balance in June 2029. The company's near-term debt maturities are limited to 1% term loan amortization per year until its $1.1 billion term loan B matures in December 2027, with the remaining balance due in December 2031. The BCPE toggle notes mature in April 2027. Fitch expects the company to refinance these maturities ahead of their due dates. The company's interest rate hedging allows it to manage EBITDA interest coverage levels over the intermediate-term, which Fitch anticipates being an elevated interest rate environment. Fitch expects EBITDA interest coverage will be sustained between 2.0x-3.0x over the intermediate-term. Issuer Profile LBM is one of the largest U.S. pro building products distributors by annual revenues in the highly fragmented distribution industry. The company offers a broad suite of product offerings to homebuilders, commercial construction customers, and repair and remodel professionals. Summary of Financial Adjustments Fitch adds back nonrecurring transaction expenses, stock-based compensation and inventory step-up charges to Fitch adjusted EBITDA. Fitch does not consider the holdco PIK toggle notes as debt of LBM. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- LBM Acquisition, LLC LT IDR B Affirmed B senior unsecured LT CCC+ Affirmed RR6 CCC+ senior secured LT BB Affirmed RR1 BB senior secured LT B Affirmed RR4 B BCPE Ulysses Intermediate, Inc. LT IDR B- Affirmed B- senior unsecured LT CCC Affirmed RR6 CCC LEALAND FINANCE: Saratoga CLO Marks $366,000 Loan at 59% Off ------------------------------------------------------------ Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $366,724 loan extended to Lealand Finance Company B.V. to market at $149,257 or 41% of the outstanding amount, according to Saratoga CLO's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga CLO is a participant in a Exit Term Loan to Lealand Finance Company B.V. The loan accrues interest at a rate of 1M USD SOFR+ 1.00% per annum. The loan matures on December 31, 2027. Saratoga CLO is one of the portfolio companies of Saratoga Investment Corp. The Company owns 100% of the subordinated notes of Saratoga CLO. The additional financial information regarding Saratoga CLO does not directly impact the Saratoga's financial position, results of operations or cash flows. Saratoga CLO is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp. CLO 2013-1, Ltd. 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About Lealand Finance Company B.V. Lealand Finance is an affiliate of CB&I Holdings B.V. and Chicago Bridge & Iron Company B.V. The Company's country of domicile is the Netherlands. LIGHTNING POWER: Moody's Alters Outlook on 'Ba3' CFR to Positive ---------------------------------------------------------------- Moody's Ratings affirmed the ratings of Lightning Power, LLC, including its Ba3 corporate family rating, Ba3 senior secured notes and Ba3 senior secured revolving credit facility and term loan ratings. Lightning's SGL-2 speculative grade liquidity rating is unchanged. The outlook of Lightning was changed to positive, from stable, following the announcement that NRG Energy, Inc. (Ba1 CFR, stable) and LS Power Equity Advisors, LLC – the owner of Lightning – have entered into a definitive agreement under which NRG will acquire Lightning in a cash and common stock transaction valued at approximately $12.0 billion enterprise value (including roughly $3.25 billion of Lightning's long debt outstanding at December 31, 2024). Ownership by NRG would enhance governance at the recently created Lightning organization, given NRG's strategic corporate experience and long established position in the unregulated power sector. RATINGS RATIONALE "Lightning is poised to benefit from being part of a large energy services company in NRG, which also has higher credit quality and more diversified operations" said Ryan Wobbrock – Vice President, Senior Credit Officer. "NRG's ownership could also benefit Lightning through various cost synergies and applied best practices, including financial policies, hedging and access to liquidity" added Wobbrock. Lightning's credit profile is supported by its 10.8 gigawatt asset base of natural gas-fired power generation assets, which benefit from growing power demand and higher capacity prices in PJM, its largest market, and the critical nature of its Ravenswood asset in New York. These assets are expected to produce cash flow to debt ratios in the mid-to-high teen's percent range over the next 12-18 months. The primary credit challenges for Lightning relate to its merchant power generation business model, which exposes the company to market-driven commodity risks, competitive revenue streams and capacity pricing determined by system operator constructs. In addition, about a third of the company's projected revenue come from energy margins and peaking facilities, which can be subject to market volatility. Rating Outlook Lightning's positive outlook is premised on the NRG acquisition, which would benefit Lightning through enhanced corporate size, diversity and financial policies. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Factors that Could Lead to an Upgrade The consummated acquisition by NRG, including the implementation of more supportive financial policies, could result in an upgrade of Lightning's ratings. In addition, a sustained financial performance that results in CFO pre-WC to debt ratios above 18%, along with continued stable and consistent operations across its fleet, could result in a positive rating action. Factors that Could Lead to a Downgrade A negative ratings action could result from operational challenges, such as unplanned outages, ineffective hedging policies leading to more volatile cash flow or CFO pre-WC to debt ratios consistently below 13%. Corporate Profile Lightning is an independent power producer with around 10.8 GW of natural gas-fired generation located in three regional power markets, covering six states in the northeastern US. The company is owned by LS Power, a private equity firm focused on the development, investment and operations of infrastructure assets in the North American power and energy sector. Issuer: Lightning Power, LLC Affirmations: LT Corporate Family Rating, Affirmed Ba3 Probability of Default Rating, Affirmed Ba3-PD Senior Secured Bank Credit Facility, Affirmed Ba3 Senior Secured Regular Bond/Debenture, Affirmed Ba3 Outlook Actions: Outlook, Changed To Positive From Stable The principal methodology used in these ratings was Unregulated Utilities and Unregulated Power Companies published in December 2023. MATADOR RESOURCES: Fitch Hikes LongTerm IDR to 'BB', Outlook Stable ------------------------------------------------------------------- Fitch Ratings has upgraded the Long-Term Issuer Default Ratings (IDRs) of Matador Resources Company and MRC Energy Company (collectively, Matador) to 'BB' from 'BB-'. Fitch has also upgraded Matador Resources Company's senior unsecured notes to 'BB' with a Recovery Rating of 'RR4' from 'BB-'/'RR4' and MRC's senior secured reserve-based credit facility (RBL) to 'BBB-'/'RR1' from 'BB+'/'RR1'. The Rating Outlook is Stable. The upgrade reflects management's execution on post-acquisition debt reduction initiatives, the company's large, oil-focused Delaware asset base, Fitch's expectation of positive FCF generation through the forecast period, sub-1.5x midcycle EBITDA leverage and ample liquidity. The Stable Outlook reflects Fitch's expectation of low single-digit production growth and continued FCF generation while maintaining low leverage. Key Rating Drivers Post-Acquisition Debt Reduction: Fitch views Matador's execution on post-acquisition debt reduction favorably and forecasts EBITDA leverage to remain durably below 1.5x throughout the forecast period. The company has reduced gross debt by more than USD700 million following the close of the Ameredev transaction in 3Q24 and has decreased its RBL borrowing to USD405 million as of 1Q25. Fitch believes the company is positioned for further RBL reduction in 2025, given positive FCF expectations, and expects management to maintain ample financial flexibility in the near and medium term. Eight-Rig Drilling Program: Fitch believes Matador's eight-rig drilling program will generate low single-digit growth in the near term and lead to production of approximately 200,000 barrels of oil equivalent per day (mboed) in 2025. In April, management announced a reduction in its rig count to eight rigs from nine by mid-2025. This adjustment is expected to lower capital expenditures by about USD100 million in 2025, resulting in only a 2.5% reduction from the company's originally guided full-year production announced in February, which Fitch views favorably. Delaware-Focused Asset Base: As of 1Q25, Matador's asset profile consists of approximately 198,700 net acres in the core of the Delaware Basin split between Eddy and Lea counties, in addition to smaller non-core acreage positions in the Haynesville and Cotton Valley (17,300 net acres). The company's Delaware acreage has high oil exposure of approximately 58%, is largely held by production and supports two-mile laterals or longer across most drilling locations. Fitch believes the high-quality asset profile supports the company's FCF-focused strategy and should lead to continued improvements in drilling and completions costs per foot and efficiency gains. Positive FCF Generation, Measured Distributions: Fitch forecasts post-dividend FCF of approximately $300 million to $400 million in 2025 at Fitch's price deck under the eight-rig drilling program starting mid-2025. Fitch expects the company to maintain its $1.25/share fixed dividend, with potential for measured increases in the near and medium term. Fitch believes excess cash will be allocated among further debt reduction, modest dividend increases, share repurchases, and potential bolt-on M&A activity. Supportive Midstream Assets: Matador's midstream joint venture assets at San Mateo provide operational benefits through overall reduced transportation costs, flow assurance and lower marketing fees in addition to performance incentives from partner Five Point Energy LLC. The San Mateo assets consist of approximately 590 miles of three-stream pipelines, 520 MMcf/d of gas processing capacity, and 475 Mbbl/d of water disposal capacity and oil gathering and transportation systems, which covers nearly all of Matador's Delaware acreage. Enhanced Hedging Profile: During 1Q25, management bolstered its 2H25 hedge book through the addition of oil collars, which Fitch views positively. The company is now hedging approximately 55% of its 2H25 oil production via collars with a weighted average floor price and ceiling price of $52/bbl and $77.20/bbl, respectively. Oil hedge coverage does drop off in 2026, but Fitch expects the company will remain proactive and add hedges to support the dividend and offer downside price protection. Peer Analysis Matador's 1Q25 production averaged 199 mboed (58% oil) which is similar to SM Energy Company (BB/Stable; 197 mboed), but smaller than Crescent Energy Company (BB-/Stable; 258 mboed), Civitas Resources, Inc. (BB+/Stable; 311 mboed) and Permian Resources, Corp. (BB+/Stable; 373 mboed). The company's continued cost reduction efforts and high oil mix have led to peer-leading Fitch-calculated unhedged netbacks of $35.4/boe in full-year 2024. This compares favorably to SM Energy ($28.7/boe) and is higher than Civitas ($25.7/boe) and Permian Resources ($26.5/boe) in 2024. Key Assumptions - West Texas Intermediate oil prices of $60/bbl in 2025, 2026 and 2027 and $57/bbl in 2028 and thereafter; - Henry Hub natural gas prices of $3.25/mcf in 2025, $3.00/mcf in 2026 and $2.75/mcf in 2027 and thereafter; - 2025 production of 200 mboed with a low single-digit increase thereafter; - 2025 total capex of $1.5 billion and relatively flat thereafter; - Prioritization of FCF toward reduction of RBL; - Measured increases in the fixed dividend; - No material M&A activity. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Change in financial policy that reduces financial flexibility and/or overly debt-funded M&A; - Inability to extend economic inventory life that leads to expectations for weakened unit economics; - Midcycle EBITDA leverage sustained above 2.5x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Increased size and scale evidenced by average daily production approaching 250 mboed with similar oil mix; - Maintenance of economic inventory life while maintaining competitive unit economics; - Midcycle EBITDA leverage sustained below 2.0x. Liquidity and Debt Structure At 1Q25, Matador had $15 million of cash on hand and $1,792 million of availability under its $2.25 billion RBL credit facility, net of $53 million of outstanding letters of credit. Matador repaid approximately $191 million of its RBL borrowings during 1Q25, and Fitch expects further reduction this year given its projection of $300 million to $400 million of post-dividend FCF generation in 2025. The company's maturity schedule is clear, with the next maturity being the RBL in 2029. Issuer Profile Matador Resources Company is an independent exploration and production company focused on the Delaware Basin in Southwest New Mexico and West Texas. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Matador Resources Company LT IDR BB Upgrade BB- senior unsecured LT BB Upgrade RR4 BB- MRC Energy Company LT IDR BB Upgrade BB- senior secured LT BBB- Upgrade RR1 BB+ MCR HEALTH: PCO Reports Staffing Challenges ------------------------------------------- Joseph Tomaino, the duly appointed patient care ombudsman, filed with the U.S. Bankruptcy Court for the Middle District of Florida his second report regarding the quality of patient care provided at MCR Health, Inc. The PCO conducted site visits at a sample of major locations of MCR Health. These site visits include a walking tour of the facilities to observe general conditions and operability, as well as incidental interviews with staff and patients to inquire about staffing, supplies, and service availability with a focus on whether or not the filing and related reorganizational activity has resulted in any significant impact. During a site visit on March 26, patients at East Manatee facility continue to complain that call center was outsourced, and they are now having challenges getting in touch with staff. The PCO received a complaint from a patient's parent related to not being able to obtain medical records related to their child. While this was unrelated to the bankruptcy, the PCO worked with the Office of the Chief Medical Officer to achieve a resolution. MCR Health is categorized into a low, medium or high-risk level based on data collected and interviews with management, patients, and staff when evaluating a healthcare business in bankruptcy. Based on the observations made and outlined in the interim report, the current risk level for this case is determined to be low level. This level is based on the transparency of reporting and cooperation on site visits, and the progress to plan submission. The PCO will continue regular site visits to centers to interview patients and staff and evaluate the accessibility of services. The issue of medical records access of material controlled by Medical Risk Solutions will be monitored. Moreover, a monitoring plan will be developed with the interim transition of Huntington Behavioral Health. The issue identified of reported reduced availability of staff by outside callers will be followed up with management. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=PyaYt9 from PacerMonitor.com. About MCR Health Inc. MCR Health, Inc. and AllCare Options, LLC filed Chapter 11 petitions (Bankr. M.D. Fla. Lead Case No. 24-06604) on November 8, 2024. At the time of the filing, MCR Health reported $10 million to $50 million in assets and liabilities while AllCare Options reported as much as $50,000 in assets and liabilities. Judge Roberta A. Colton oversees the cases. Steven M. Berman, Esq., at Shumaker, Loop & Kendrick, LLP, represents the Debtors as legal counsel. Joseph J. Tomaino is the patient care ombudsman appointed in the Debtors' cases. METROPOLITAN OPERA, NY: S&P Lowers 2012 Bond Rating to 'BB+' ------------------------------------------------------------ S&P Global Ratings lowered its long term rating on The Metropolitan Opera (The Met Opera; The Met), N.Y.'s series 2012 taxable bonds to 'BB+' from 'BBB-'. The outlook is negative. The downgrade reflects the extraordinary endowment draws of $40 million in fiscal 2024 and authorized borrowing of up to $50 million in fiscal 2025, which continue to erode financial resources, coupled with increasing debt levels which further weaken debt ratios. S&P said, "We analyzed the Met Opera's environmental, social, and governance credit factors pertaining to its market position, management and governance, and financial performance. Because it's in New York City, our view of its environmental risk to some extent mirrors that of the city. We believe environmental risk is somewhat elevated because of storm exposure on the Atlantic coastline. We view social and governance risk as a neutral factor in our credit rating analysis. "The negative outlook reflects our view that debt has continued to increase, and liquidity may be pressured within the one-year outlook. Financial covenants may pressure the balance sheet further. "We could consider a lower rating if financial resources decline from current levels and liquidity levels fall. Shortfalls in fundraising such that the Met Opera incurs large cash losses that further deplete financial resources would also be viewed negatively. Violation of covenants that could trigger immediate acceleration of the outstanding line of credit balance may significantly deplete financial resources and result in a lower rating, as would additional debt beyond current levels without growth in financial resources. "We could consider an outlook revision to stable if financial resources were maintained at current levels, and no additional debt were issued. Less reliance on fundraising and increases in revenue to offset growing expenses would also be viewed favorably." MIDWEST CHRISTIAN: Implements Alternative Record Retention Policy ----------------------------------------------------------------- Midwest Christian Villages, Inc. and its debtor-affiliates filed a Motion for Entry of Order Authorizing Debtors to: (1) Implement a Records Retention Policy that Includes Disposal of Certain Business and Other Records and (2) Obtain Related Relief, which the United states Bankruptcy Court Eastern District of Missouri granted on April 1, 2025. Pursuant to the Order, the Debtors are now implementing the Alternative Record Retention Policy (as defined in the Motion) for certain business and other records, including patient and non-patient records, in both paper and electronic form, pursuant to Secs. 105(a) 351, 363(C), and 554 (a) of the United States Bankruptcy Code. Specifically, as part of the Alternative Records Retention Policy, the Debtors are authorized to shred or otherwise destroy those certain documents identified in Exhibit 1 attached to the Motion on or as reasonably practicable after the date that is immediately following the date that is 365 days from the date of publication of this notice, to the extent that such Records remain in the possession and/ or control of the Debtors after the Waiting Period. Those with rights to certain of the Records, including those patients discharged within the last ten (10) years whose patient records may be at issue, who wish to retrieve such Records must make arrangements with the Debtors to retrieve them prior to close of the Waiting Period. Shawn O'Conner as the Chief Restructuring Officer as the Debtors' representative may be reached by email at soconner@ hcmpllc.com, A copy of the Motion and Order including Exhibit 1 thereto are available upon written email request to Mr. 0'Conner. A copy of the Motion and Order can be found at www.veritaglobal.net/MCV, the website established by the Debtors' claims and noticing agent, Kurtzman Carson Consultants, LLC d/b/a/ Verita Global for the Debtors' chapter 11 cases. "Patient Records" are defined in the Bankruptcy Code as "any record relating to a patient, including a written document or a record recorded in a magnetic, optical, or other form of electronic medium." About Midwest Christian Villages Midwest Christian Villages Inc. operates a mix of independent, assisted and skilled nursing campuses in 10 locations across the Midwest, serving over 1,000 residents. Midwest Christian Villages and its affiliates filed their voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mo. Lead Case No. 24-42473) on July 16, 2024, listing $1 million to $10 million in assets and $10 million to $50 million in liabilities. The petitions were signed by Kate Bertram, chief operating officer. Judge Kathy Surratt-States oversees the cases. The Debtors tapped Stephen O'Brien, Esq., at Dentons US, LLP and Summers Compton Wells, LLC as bankruptcy counsels; B.C. Ziegler and Company as investment banker; and Plante Moran as auditor and tax consultant. Kurtzman Carson Consultants, LLC, doing business as Verita Global, is the claims and noticing agent. The U.S. Trustee for Region 13 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee tapped Cullen and Dykman, LLP as general counsel; Sandberg Phoenix & von Gontard P.C. and Schmidt Basch, LLC as local counsel; and Province, LLC as financial advisor. MIDWEST ENGINEERED: Steven Nosek Named Subchapter V Trustee ----------------------------------------------------------- The Acting U.S. Trustee for Region 12 appointed Steven Nosek as Subchapter V trustee for Midwest Engineered Components Inc. Mr. Nosek 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. Nosek declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Steven B. Nosek 10285 Yellow Circle Drive Hopkins, MN 55343 Email: snosek@noseklawfirm.com About Midwest Engineered Components Midwest Engineered Components Inc. is a professional services company based in Burnsville, Minn. Midwest Engineered Components sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Minn. Case No. 25-31318) on April 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100,000 and $500,000. The Debtor is represented by John D. Lamey, III, Esq. at Lamey Law Firm, P.A. MISTER CHIMNEY: Christopher Hayes Named Subchapter V Trustee ------------------------------------------------------------ The U.S. Trustee for Region 17 appointed Christopher Hayes as Subchapter V trustee for Mister Chimney Cleaning and Repairs, Inc. Mr. Hayes will be paid an hourly fee of $470 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Hayes declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Christopher Hayes 23 Railroad Avenue, #1238 Danville, CA 94526 Phone: (925) 725-4323 Email: chayestrustee@gmail.com About Mister Chimney Cleaning Mister Chimney Cleaning and Repairs, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 25-30283) on April 10, 2025, listing up to $50,000 in assets and between $100,001 and $500,000 in liabilities. Judge Dennis Montali presides over the case. Ryan C. Wood, Esq. at the Law Offices of Ryan C. Wood, Inc. represents the Debtor as bankruptcy counsel. MODE MOBILE: IndigoSpire CPA Raises Going Concern Doubt ------------------------------------------------------- Mode Mobile, Inc. disclosed in a Form 1-K Report filed with the U.S. Securities and Exchange Commission for the fiscal year ended December 31, 2024, that its auditor expressed substantial doubt about the Company's ability to continue as a going concern. San Jose, Calif. -based IndigoSpire CPA, PC, the Company's auditor, issued a "going concern" qualification in its report dated April 22, 2024, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. The Company realized a net loss of $3,257,982 for the fiscal year ending December 31, 2024, which is a 2.99% decrease in net loss compared to a net loss of $3,358,533 during the fiscal year ending December 31, 2023. The Company has net cash used in operating activities of $854,646 and $3,147,054 for the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024, the Company had an accumulated deficit of $7,576,463. The Company's ability to continue as a going concern for the next 12 months is dependent upon its ability to generate sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and/or to obtain additional capital financing. No assurance can be given that the Company will be successful in these efforts. A full-text copy of the Company's Form 1-K is available at: https://tinyurl.com/3drt2w8z About Mode Mobile Mode Mobile, Inc. is a technology company that operates the Mode EarnOS enabling users the ability to earn rewards on a single platform for interacting with digital content on their smartphones. The Company also offers the Mode EarnPhone, a smartphone embedded with the Company's EarnOS software for a more integrated and enhanced earnings experience. As of December 31, 2024, the Company had $15,121,751 in total assets, $4,517,329 in total liabilities, and $10,604,422 in total stockholders' equity. MOORE MEDICAL: Gets Final OK to Use Cash Collateral --------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Orlando division, granted Moore Medical Group, Inc.'s motion to use cash collateral on a final basis. The court had previously authorized interim use under multiple orders, all of which are now deemed final. About Moore Medical Group Moore Medical Group, Inc., a company in Lake Mary, Fla., filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05162) on Sept. 24, 2024, listing $481,336 in assets and $2,762,511 in liabilities. L. Todd Budgen, Esq., a practicing attorney in Longwood, Fla., serves as Subchapter V trustee. Judge Grace E. Robson oversees the case. The Debtor is represented by: Katelyn M. Vinson, Esq. Jennis Morse Tel: 813-229-2800 Email: kvinson@jennislaw.com MOUNTAINEER MERGER: Moody's Cuts CFR to 'Caa3', Outlook Stable -------------------------------------------------------------- Moody's Ratings downgraded Mountaineer Merger Corporation's, parent of Gabriel Brothers, Inc. (dba "Gabe's") corporate family rating to Caa3 from Caa1 and its probability of default rating to D-PD from Caa1-PD. Concurrently, Moody's downgraded the company's senior secured first lien term loan rating to Ca from Caa2. The outlook was changed to stable from negative. The downgrade of the PDR to D-PD reflects that Gabe's did not make its scheduled principal and interest payments on its senior secured term loan when due or within the stipulated grace period. Moody's views the missed payments as a default and a governance consideration. The company entered into a forbearance agreement with both its asset based revolving credit facility ("ABL") lenders (not rated) and first lien term loan lenders on its missed term loan interest and principal payments. Although the missed payment pertains to the term loan, the ABL is included in the forbearance agreement because of cross default provisions. The first lien term loan agreement allowed for a five business days grace period on the payment. The downgrades of the CFR and senior secured bank credit facility rating reflect Moody's expectations for weakened recovery prospects. Gabe's credit metrics remain much weaker than expected following the Old Time Pottery acquisition. The company has weak liquidity, as demonstrated by its weak cash flow and modest availability under its $175M ABL expiring October 2027. The D-PD PDR designation will remain in place until a resolution of the interest payment default. RATINGS RATIONALE Mountaineer Merger Corporation's Caa3 CFR reflects high funded debt and weak interest coverage. Moody's expects EBIT/interest will remain less than 1.0x for the next 12 months with minimal reduction in the company's debt burden. Although Moody's expects improvement in EBITDA in FY 2025 as the company continues to convert Old Time Pottery (OTP) stores into fresher and updated Gabe's stores while optimizing inventory offerings, liquidity will still remain strained. The company's liquidity is weak reflecting weak free cash flow generation and modest revolver availability that leaves no cushion to absorb any further underperformance. The rating also considers the company's small scale in a highly competitive business environment with very large and well capitalized competitors. Therefore, even small declines in EBITDA can impact credits metrics significantly. Other rating considerations include the somewhat discretionary nature of the company's products and macroeconomic headwinds that could cause constrained consumers to pull back purchases of discretionary items. The 2023 acquisition of Old Time Pottery, a value home decor retailer, has been accretive to earnings and has increased the company's scale but also increases its exposure to home categories. However, approximately 90% of Gabe's inventory purchases are opportunistic and its inventory purchasing cycle is shorter than its competitors which allows the company to quickly change assortments depending on consumer preferences. The company's off-price retail business model, a segment which has historically grown faster than other retail sub-sectors and has performed relatively well during economic downturns, further supports its rating. Gabe's is owned by private equity firm Warburg Pincus and risk of future aggressive financial strategies is also reflected in the rating. The stable outlook reflects that Moody's believes the current ratings appropriately reflect the company's expected performance and estimated recovery rate. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be upgraded if there is a sustained improvement in operating performance and liquidity or if the expected recovery rate improves. Additionally, the probability of default rating could be upgraded on a successful resolution of the non-payment of interest outside of bankruptcy. The ratings could be downgraded if recovery expectations deteriorate further. Mountaineer Merger Corporation is the parent of off-price retailer Gabriel Brothers, Inc., dba "Gabe's" with 166 stores across 20 states. The company is owned by Warburg Pincus International LLC and generated about $970 million in revenue for the LTM period ended November 2, 2024. The principal methodology used in these ratings was Retail and Apparel published in November 2023. NAKED JUICE: Moody's Puts 'Ca' CFR Under Review for Upgrade ----------------------------------------------------------- Moody's Ratings has appended a limited default (/LD) designation to Naked Juice LLC's Probability of Default Rating, revising it to Ca-PD/LD from Ca-PD. Moody's will remove the /LD designation in approximately three business days. Moody's also placed the company's Ca Corporate Family Rating and the PDR on review for upgrade. Moody's took no action on the Ca ratings on the company's existing $1.82 billion original principal amount senior secured term loan or $105 million original principal senior secured delayed draw term loan, or the C rating on the $450 million original principal second lien term loan. Moody's withdrew the Ca ratings on the $350 million revolver due January 2027 and $87 million senior secured term loan due September 2025. Previously, the outlook was stable. The /LD designation and review for upgrade follows the completion of debt exchanges stemming from an announcement on April 9, 2025 that Naked Juice entered into a Super Priority Credit Agreement to exchange certain existing first and second lien terms loans into new super priority term loans and also entered into a new revolving credit facility. As part of this transaction and to shore up its liquidity, the company put in place a $519 million super priority First Lien First Out Term Loan (FL1O-TL) maturing January 2029 which consists of $400 million of "new money" and $119 million of exchanged debt. The company also entered into a new $350 million Revolving Credit Facility expiring December 2028 (new RCF) which is partially FL1O and First Lien Second Out (FL2O). The new RCF replaced the company's existing $350 million revolving credit facility that was to expire in January 2027 and that was terminated as part of the transaction with the revolver balance substantially paid down from the proceeds of the new FL1O-TL. As a result, Moody's are withdrawing the prior revolver rating. The company also confirmed that subsequent exchanges closed on April 21, 2025 and May 9, 2025. As part of the transactions, the bulk of the prior first lien and second lien term loans were exchanged into the new FL1O-TL maturing January 2029, a new FL2O-TL maturing January 2029 and a new First Lien Third Out Term Loan maturing January 2030 (FL3O-TL). In conjunction with the transactions, various term loans provided by the equity sponsor PAI Partners and PepsiCo were converted into the new FL3O-TL. Accordingly, Moody's are withdrawing the Ca rating on the $87 million senior secured term loan due September 2025 that was provided by PAI and PepsiCo. The company also indicated that amendments to the prior first lien and second lien agreements subordinated the remaining obligations under those agreements to the term loans under the new Super Priority Credit Agreement. Moody's views the closing of the debt exchanges at significant discounts and the subordination of the existing term loans to the new debt as a distressed exchange of the prior term loan and revolver. As a result, Moody's are appending a /LD to the Ca-PD/LD PDR. The review for upgrade reflects the improvement in liquidity resulting from the transactions including the meaningful revolver paydown, addition of cash to the balance sheet and maturity extension for the PAI Partners and PepsiCo term loans. Moody's are taking no action on the remaining rated instrument ratings at this time because the final CFR following the review will affect the instrument ratings. The rating on the prior first lien term loan will likely be moved below the CFR due to the subordination to the material amount of new super priority debt. In the review, Moody's will assess: 1) the final capital structure in place and forward credit metrics; 2) earnings and cash flow outlook of the business and the company's ability to return to sustainable growth; and 3) available liquidity as the company continues to manage through a weaker demand environment and increasing input costs as a result of US tariffs. Moody's are also in discussions with the company to rate the new tranches and expect to assign ratings when Moody's concludes the business update and review, at which point Moody's expects to make any adjustments necessary to the existing instrument ratings. Moody's expects that Naked Juice will continue to experience pressure on volume and will experience challenges fully recouping cost increases as consumer demand is hurt more broadly by higher prices on a range of goods. Naked Juice sources more than 60% of its orange juice from Brazil. Although Naked Juice did increase prices during the 1Q 2025, Moody's expects that it will be difficult for the company to fully pass along the higher procurement with additional pricing at a cost of further volume declines. Moody's expects Naked Juice's debt-to-EBITDA will remain very high at above 9.0x over the next 12 to 18 months and free cash flow to remain negative. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. RATINGS RATIONALE Naked Juice's existing Ca CFR reflects the very high leverage and negative free cash flow. The ratings also reflect the company's mature product category and increasing input costs related to sourcing of orange juice and tariffs. The company must also navigate through declining consumption of juice and a slow growth environment as consumers continue to be negatively impacted by inflation and may trade down to lower priced private label juices or out of the category. Naked Juice's very high debt-to-EBITDA leverage exceeded 10x as December 2024 is likely to stay elevated and negative free cash flow makes it challenging to repay debt and invest in growth opportunities. Naked Juice's sizable revenue base supported by well-known brands in key juice categories such as Tropicana, Naked and KeVita, only partially mitigate these risks. Naked Juice also has a leading market position within the fresh juice category with well-known brands and increased focus on product and packaging innovation. The retention by PepsiCo of a 39% stake in Naked Juice is beneficial on multiple fronts, including maintenance of pre-existing contracts and distribution arrangements. Moody's views the bulk of the company's products as mature and low growth that can make it challenging to rapidly de-leverage, and Naked Juice will need to invest in product development, marketing, and distribution to generate consistent organic revenue and earnings growth. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be downgraded further if earnings and free cash flow do not improve, liquidity deteriorates or should Moody's views of the level of family and instrument recovery declines. Ratings could be upgraded if Naked Juice's improved liquidity creates sufficient capacity to fund anticipated cash needs and provides additional time and investment flexibility to execute its strategies to restore revenue growth, improve earnings, increase cash flow generation, and reduce leverage. COMPANY PROFILE Naked Juice LLC, headquartered in Chicago, Illinois, sells fresh juices, teas, sparkling water and iced coffees. The company owns the Tropicana, Naked Juice, KeVita and other select juice brands. The company also sells products under licensed brands including Dole, TAZO and Starbucks. The company was spun off from PepsiCo in January 2022, with PAI Partners owning 61% and PepsiCo retaining a 39% stake. Revenue for the 12 months ended December 28, 2024 is approximately $2.7 billion. The principal methodology used in these ratings was Soft Beverages published in September 2022. NATIONAL FOOD: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: National Food & Beverage Foundation d/b/a Southern Food and Beverage Museum 1504 O.C. Haley Blvd. New Orleans, LA 70113 Business Description: The National Food & Beverage Foundation, based in New Orleans, is a nonprofit organization focused on the study and celebration of food, drink, and related cultural traditions in America and globally. Its Southern Food and Beverage Museum houses multiple entities, including the Museum of the American Cocktail, SoFAB Research Center, and Deelightful Roux School of Cooking, among others, and serves as a versatile event venue. Chapter 11 Petition Date: May 14, 2025 Court: United States Bankruptcy Court Eastern District of Louisiana Case No.: 25-10974 Judge: Hon. Meredith S Grabill Debtor's Counsel: Leo D. Congeni, Esq. CONGENI LAW FIRM, LLC 650 Poydras St., Ste. 2750 New Orleans, LA 70130 Tel: (504) 522-4848 E-mail: leo@congenilawfirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Constance Jackson as president. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/MDBVODI/National_Food__Beverage_Foundation__laebke-25-10974__0001.0.pdf?mcid=tGE4TAMA NAVIENT CORP: Fitch Assigns BB-(EXP) Rating on Sr. Unsecured Notes ------------------------------------------------------------------ Fitch Ratings expects to rate Navient Corporation's upcoming long-term senior unsecured notes issuance 'BB-(EXP)'. The notes are expected to mature in 2032. Proceeds from the issuance are expected to be used for general corporate purposes, including the repurchase of outstanding unsecured debt. Key Rating Drivers The unsecured debt is expected to rank pari passu with Navient's existing senior unsecured debt, and therefore the expected rating is equalized with its outstanding senior unsecured debt and Long-Term Issuer Default Rating (IDR). The equalization reflects average recovery prospects under a stress scenario given the availability of unencumbered assets. Fitch does not expect the debt issuance to have a meaningful impact on the company's leverage profile as proceeds are primarily expected to repurchase outstanding debt ahead of upcoming maturities. Navient's leverage, calculated as debt to tangible equity excluding debt and capital associated with the guaranteed Federal Family Education Loan Program (FFELP) assets and the mark-to-market gains/losses on derivatives, was 9.0x at 1Q25, unchanged from YE24. Navient's ratings reflect its sizable but shrinking scale and position as one of the largest nongovernment owners of student loan assets, its demonstrated track record (including as part of its predecessor organization) in managing its loan portfolios, its adequate liquidity profile, and the low credit risk and predictable cash flow associated with its FFELP loan assets. Rating constraints include Navient's monoline business model focused on student lending, higher leverage relative to finance and leasing company peers, a reliance on secured, wholesale funding, high levels of asset encumbrance, and uncertainty related to its longer-term strategic direction and growth prospects. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Shifts in strategy resulting in a degradation of Navient's franchise and scale that materially weakens operating results, access to funding and/or available liquidity; - A sustained increase in Navient's debt-to-tangible equity ratio (excluding FFELP and the mark-to-market on floor income hedges) to over 12x; - A decrease in the unsecured debt mix, representing less than 10% of the company's non-FFELP funding; - Significant deterioration in credit performance of the PSL portfolio leading to materially weaker operating results; - An increase in shareholder distributions above Navient's core earnings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustainable growth in core earnings from successful execution on new loan originations or other product offerings; - Strong credit performance of the private education loan refi portfolio through periods of economic stress; - A sustained reduction in leverage below 8.0x; - Continued ability to access the unsecured debt market on economic terms. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The senior unsecured debt rating is equalized with Navient's IDR. The equalization reflects average recovery prospects under a stress scenario given the availability of unencumbered assets. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The unsecured debt rating is expected to move in tandem with the IDR. However, a meaningful increase in the proportion of secured funding or a reduction of the unencumbered asset pool could result in the unsecured debt rating being notched below the IDR. ADJUSTMENTS The Standalone Credit Profile (SCP) has been assigned in line with the implied SCP. The Business Profile score has been assigned below the implied score due to the following adjustment reason: Business model (negative). The Asset Quality score has been assigned above the implied score due to the following adjustment reason: Collateral and reserves (positive). The Capitalization and Leverage score has been assigned above the implied score due to the following adjustment reason: Risk profile and business model (positive). Date of Relevant Committee February 14, 2025 ESG Considerations Navient has an ESG Relevance Score of '4' for Exposure to Social Impacts due to its exposure to shifts in social or consumer preferences as a result of an institution's social positions, or social and/or political disapproval of core activities, which has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. Navient has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy, and Data Security due to its exposure to compliance risks including fair lending practices, debt collection practices and consumer data protection, which has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating ----------- ------ Navient Corporation senior unsecured LT BB-(EXP) Expected Rating OUTKAST ELECTRICAL: Court Extends Cash Collateral Access to May 30 ------------------------------------------------------------------ David Madoff, the Subchapter V operating trustee for Outkast Electrical Contractors, Inc., received another extension from the U.S. Bankruptcy Court for the District of Massachusetts to use cash collateral. The court issued a proceeding memorandum and order authorizing the trustee to use until May 30 the funds advanced by Dimeo Construction Company to the extent such funds constitute cash collateral, with a 10% aggregate variance allowed. The court also approved a related funding agreement with Dimeo Construction Company, authorizing use of those funds per a separate order. As protection, BDC, Mill Cities Community Investments and the U.S. Small Business Administration will be granted replacement liens on post-petition assets as protection for the use of the cash collateral. These liens will have the same priority as their pre-bankruptcy liens. If the joint Chapter 11 Subchapter V plan of reorganization for Outkast does not become effective by May 30, the trustee may seek further extension. About Outkast Electrical Contractors Outkast Electrical Contractors, Inc. provides full-service commercial electrical construction and renovation services throughout the greater Boston area. The company is based in Dorchester Center, Mass. Outkast filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Mass. Case No. 24-10272) on February 13, 2024, with $500,000 to $1 million in assets and $1 million to $10 million in liabilities. David Madoff, Esq., a partner at Madoff & Khoury, LLP, serves as Subchapter V trustee. Judge Janet E. Bostwick oversees the case. John Sommerstein, Esq., at John F. Sommerstein represents the Debtor as legal counsel. P MAIO CONSTRUCTION: Unsecureds Will Get 46% of Claims over 3 Years ------------------------------------------------------------------- P Maio Construction, LLC, submitted a First Amended Plan of Reorganization for Small Business dated May 1, 2025. The Debtor is seeking to reorganize its business operations in an effort to substantially improve its balance sheet and achieve financial stability. In an effort to return to profitability, the Debtor has addressed overhead expenses, reduced employee head count and has/is negotiating surrenders of unnecessary vehicles/equipment. The reduction in workforce and fleet of vehicles and equipment has led to reductions in insurance costs, payroll and critical expenses including fuel and other materials/supplies. The Plan provides for payments to creditors from the Debtor's ongoing business operations and the Debtor is seeking to emerge for Chapter 11 at the optimal time period to capitalize on seasonal projects. The Debtor intends to pay its creditors which asserted a security interest in specific collateral as follows: (a) for the collateral necessary for reorganization, the Debtor shall continue to make monthly payments as applicable under the financing agreements with any arrears paid quarterly in equal installments during the first year of the Plan; (b) for the collateral to be surrendered, any deficiency claims following the disposition of the specific collateral shall be treated as a general unsecured claim subject to pro rata distribution. All liens on financed collateral shall remain unaltered by the Plan, unless otherwise provided for herein. The Debtor proposes to pay its priority claims in full on the Effective Date of the Plan or on their allowance, whichever is later in time. The Debtor proposes to pay general unsecured creditors their pro rata share, in the total amount of $131,000.00, in 8 quarterly payments aggregating dividends of $54,000.00 in the second year of the Plan and $77,000.00 in the third year of the Plan following the Effective Date. The amounts the Debtor is proposing to be paid under the Plan constitute all of the Debtor's projected excess disposable income. Class Eleven are holders of Allowed General Unsecured Claims, including allowed deficiency claims of creditors in prior classes and claims of creditors not otherwise classified under the Plan. The estimated amount of unsecured claims is approximately $429,934.95, subject to objection and reconciliation as provided under the Plan and without all deficiency claims being asserted by secured creditors from surrendered collateral. In accordance with the Debtor's Cash Flow Analysis, following the satisfaction of higher priority Classes, the Debtor has a projected Net Disposable Income over 3 years of $198,193.00 (as defined in Section 1325(b)(2) and 707(b)(2)(A) of the Bankruptcy Code), all of which will be paid as follows: * Commencing on the first quarter in Year 2 following the Effective Date of the Plan, the Debtor shall make 8 quarterly payments in an amount equal to the annual projected net disposable income of the Debtor. The Debtor shall distribute the funds to the holders of liquidated, noncontingent claims as scheduled or filed, subject to timely objection to the validity or extent of each claim (the "General Unsecured Claims") on a pro-rata basis quarterly beginning in Year 2 following the Effective Date and thereafter during the term of the 3-year Plan. This Class will receive a distribution of 46% of their allowed claims. The Plan will be funded from a combination of (i) funds on hand in the estate at the time of Confirmation; and (ii) future income generated through sale of the Debtor's services and collection of amounts due as receivables. The Cash Flow Analysis illustrates the amount of income received from business earnings and the resulting Disposable Income. A full-text copy of the First Amended Plan dated May 1, 2025 is available at https://urlcurt.com/u?l=DLdFMp from PacerMonitor.com at no charge. Counsel to the Debtor: Mark J. Politan, Esq. POLITAN LAW, LLC 88 East Main Street, #502 Mendham, New Jersey 07945 Phone: (973) 768-6072 Email: mpolitan@politanlaw.com About P Maio Construction P Maio Construction, LLC, is a small business engaged in light construction, masonry, and hauling business. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. N.J. Case No. 24-20885) on Nov. 1, 2024, with $100,001 to $500,000 in both assets and liabilities. Mark Politan, Esq., at Politan Law, LLC, is the Debtor's bankruptcy counsel. PARAMOUNT REAL ESTATE: Robert Handler Named Subchapter V Trustee ---------------------------------------------------------------- The U.S. Trustee for Region 11 appointed Robert Handler of Commercial Recovery Associates, LLC as Subchapter V trustee for Paramount Real Estate Investment, Inc. Mr. Handler will be paid an hourly fee of $450 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Handler declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Robert P. Handler Commercial Recovery Associates, LLC 205 West Wacker Drive, Suite 918 Chicago, IL 60606 Tel: (312) 845-5001 x221 Email: rhandler@com-rec.com About Paramount Real Estate Investment Paramount Real Estate Investment Inc. is a Chicago-based real estate investment company. Paramount Real Estate Investment sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-06788) on May 1, 2025. In its petition, the Debtor reported between $100,000 and $500,000 in both assets and liabilities. Judge Michael B. Slade handles the case. The Debtor is represented by Joel A. Schechter, Esq., at Law Offices of Joel Schechter. PARTIDA HOLDINGS OF FAYETTEVILLE: Gets OK to Use Cash Collateral ---------------------------------------------------------------- Partida Holdings of Fayetteville, LLC received final approval from the U.S. Bankruptcy Court for the Western District of Oklahoma to use cash collateral. The court authorized the company to use cash collateral, including accounts receivable, to pay operating expenses in accordance with its 13-week budget, subject to a 10% variance per line item during any rolling four-week period. The budget projects total operational expenses of $211,434. The court noted that merchant cash advance (MCA) creditors may hold secured claims but acknowledged the company disputes the validity of those liens. The order preserves all parties' rights to challenge or defend lien validity. The MCA creditors are entitled to a first-priority lien on the company's post-petition collateral, subject to existing superior liens on the collateral held by other creditors, if any, and the carve-out. In the event of any diminution in the value of their collateral, the MCA creditors are entitled to superpriority claims, subordinate only to the carve-out. The final order remains effective during the pendency of the company's bankruptcy case and until further order of the court. About Partida Holdings of Fayettville Partida Holdings of Fayettville, LLC sells and services generators under a franchise agreement with Generator Supercenter Franchising, LLC. The Debtor filed Chapter 11 petition (Bankr. W.D. Okla. Case No. 25-11045) on April 10, 2025, listing up to $50,000 in assets and up to $10 million in liabilities. Austin Partida, chief executive officer, signed the petition. Judge Sarah A. Hall oversees the case. Amanda R. Blackwood, Esq., at Blackwood Law Firm, PLLC, represents the Debtor as bankruptcy counsel. PARTIDA HOLDINGS OF LAWTON: Gets Final OK to Use Cash Collateral ---------------------------------------------------------------- Partida Holdings of Lawton, LLC received final approval from the U.S. Bankruptcy Court for the Western District of Oklahoma to use cash collateral. The final order authorized the company to use cash collateral, including accounts receivable, to fund operations in accordance with its 13-week budget, subject to a 10% variance per line-item. The budget projects total operational expenses of $169,695. Merchant cash advance creditors (MCA creditors) may hold pre-bankruptcy liens, which are disputed by the company. The final order granted these creditors first-priority post-petition liens, subject to existing superior liens on the collateral held by other creditors, and potential superpriority claims in case of any diminution in the value of their collateral. The final order remains effective during the pendency of the company's bankruptcy case and until further order of the court. About Partida Holdings of Lawton Partida Holdings of Lawton, LLC sells and services generators under a franchise agreement with Generator Supercenter Franchising, LLC. The Debtor filed Chapter 11 petition (Bankr. W.D. Okla. Case No. 225-11043) on April 10, 2025, listing up to $50,000 in assets and up to $10 million in liabilities. Austin Partida, chief executive officer, signed the petition. Judge Sarah A. Hall oversees the case. Amanda R. Blackwood, Esq., at Blackwood Law Firm, PLLC, represents the Debtor as bankruptcy counsel. PARTIDA HOLDINGS OF LITTLE ROCK: Gets OK to Use Cash Collateral --------------------------------------------------------------- The U.S. Bankruptcy Court Western District of Oklahoma issued a final order granting Partida Holdings of Little Rock, LLC authority to use cash collateral. The final order authorized the company to use cash collateral, including accounts receivable to fund operations pursuant to its 13-week budget, subject to a 10% variance per line-item. The budget projects total operational expenses of $259,872. Merchant cash advance creditors (MCA creditors) may hold pre-bankruptcy liens, which are disputed by the company. The final order granted these creditors first-priority post-petition liens, subject to existing superior liens on the collateral held by other creditors, and potential superpriority claims in case of any diminution in the value of their collateral. The final order remains effective during the pendency of the company's bankruptcy case and until further order of the court. About Partida Holdings of Little Rock Partida Holdings of Little Rock, LLC sells and services generators under a franchise agreement with Generator Supercenter Franchising, LLC. The Debtor filed Chapter 11 petition (Bankr. W.D. Okla. Case No. 25-11041) on April 10, 2025, listing up to $50,000 in assets and up to $10 million in liabilities. Austin Partida, chief executive officer, signed the petition. Judge Sarah A. Hall oversees the case. Amanda R. Blackwood, Esq., at Blackwood Law Firm, PLLC, represents the Debtor as bankruptcy counsel. PARTIDA HOLDINGS OF TULSA: Gets Final OK to Use Cash Collateral --------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Oklahoma issued a final order authorizing Partida Holdings of Tulsa, LLC to use cash collateral. The final order authorized the company to use cash collateral, including accounts receivable, to pay operating expenses in accordance with its 13-week budget, subject to a 10% variance per line item during any rolling four-week period. Merchant cash advance creditors may hold pre-bankruptcy liens, which are disputed by the company. The final order granted these creditors first-priority post-petition liens, subject to existing superior liens on the collateral held by other creditors, and potential superpriority claims in case of any diminution in the value of their collateral. The final order remains effective during the pendency of the company's bankruptcy case and until further order of the court. About Partida Holdings of Tulsa Partida Holdings of Tulsa, LLC sells and services generators under a franchise agreement with Generator Supercenter Franchising, LLC. The Debtor filed Chapter 11 petition (Bankr. W.D. Okla. Case No. 25-11038) on April 10, 2025, listing up to $50,000 in assets and up to $10 million in liabilities. Austin Partida, chief executive officer, signed the petition. Judge Sarah A. Hall oversees the case. Amanda R. Blackwood, Esq., at Blackwood Law Firm, PLLC, represents the Debtor as bankruptcy counsel. PAWLUS DENTAL: Case Summary & 16 Unsecured Creditors ---------------------------------------------------- Debtor: Pawlus Dental, Inc. 4001 W. Goeller Blvd., Suite C Columbus IN 47201 Business Description: Pawlus Dental, Inc. provides comprehensive dental services in Columbus, Indiana, focusing on preserving natural teeth and enhancing smile aesthetics. The practice offers treatments including dental implants, sleep apnea management, clear aligners, periodontal and cosmetic care, preventive and restorative dentistry, wisdom teeth extraction, root canal therapy, and sedation dentistry. Chapter 11 Petition Date: May 14, 2025 Court: United States Bankruptcy Court Southern District of Indiana Case No.: 25-02780 Judge: Hon. James M Carr Debtor's Counsel: John Allman, Esq. HESTER BAKER KREBS LLC One Indiana Sq Suite 1330 Indianapolis, IN 46204 Tel: 317-833-3030 E-mail: jallman@hbkfirm.com Total Assets: $890,156 Total Liabilities: $1,119,328 The petition was signed by John G. Pawlus as president/owner. A full-text copy of the petition, which includes a list of the Debtor's 16 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/Y2TBL4Q/Pawlus_Dental_Inc__insbke-25-02780__0001.0.pdf?mcid=tGE4TAMA PEPPER PALACE: Saratoga Marks $2.4 Million 1L Loan at 45% Off ------------------------------------------------------------- Saratoga Investment Corp. has marked its $2,400,000 loan extended to Pepper Palace, Inc. to market at $1,326,000 or 55% of the outstanding amount, according to Saratoga's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga is a participant in a First Lien Term Loan to Pepper Palace, Inc. The loan accrues interest at a rate of 4.42% payment in kind per annum. The loan matures on December 31, 2028. Saratoga is a non-diversified closed end management investment company incorporated in Maryland that has elected to be treated and is regulated as a business development company under the Investment Company Act of 1940, as amended. The Company commenced operations on March 23, 2007 as GSC Investment Corp. and completed the initial public offering on March 28, 2007. The Company has elected, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Saratoga is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About Pepper Palace, Inc. Pepper Palace, Inc. is a specialty food retailer. PETROLEOS DE VENEZUELA: May 28, 2025 Deadline for Topping Bids -------------------------------------------------------------- On January 14, 2021, the United States District Court for the District of Delaware issued an opinion and corresponding order setting forth certain contours for the sale of the shares of PDV Holding, Inc., owned by Petroleos de Venezuela, S.A (the "PDVSA") in connection with the proceeding captioned CRYSTALLEX INTERNATIONAL CORPORATION, Plaintiff v. BOLIVARIAN REPUSLIC OF VENEZUELA, Defendant, Misc. No. 17-151-LPS. PDVH is the sole shareholder and direct parent of CITGO Holding, Inc. which in turn is the sole stakeholder and direct parent of CITGO Petroleum Corporation. In furtherance of the Court's order, the Court appointed Robert B. Pincus as special master on April 13,2021 to assist the Court with the sale of the PDVH Shares. The Special Master is advised by Well, Gotshal & Manges LLP as transaction counsel, and Evercore Group LLC, as investment banker. On October 11, 2022, the Court entered an order (i) approving bidding procedures, substantially in the form attached to the Sale Procedures Order as Exhibit 1; (ii) authorizing and approving the Notice Procedures for the Sale Hearing, and (iii) granting related relief. On December 31,2024, the Court entered an order that set a revised timeline and procedures for the sale of the PDVH Shares, including (i) setting forth the procedures for approval of (a) Bidder Protections that will be made available to any Stalking Horse approved by the Court, (b) material terms of a Stock Purchase Agreement and, subsequently, a long-form Stock Purchase Agreement and (c) Evaluation Criteria for Stalking Horse Bids, Base Bids, and Successful Bids; (iii) setting forth procedures for amendments to the Sale Procedures Order and Bidding Procedures; (iii) setting deadlines for the submission of bids, the Special Master's recommendations, and objections thereto; (iv) scheduling a Sale Hearing; and (v) granting related relief. On January 27, 2025, the Court entered an order adopting certain bidder protections and material terms to be included in the Stock Purchase Agreement. On April 21, 2025, the Court entered an order designating Red Tree Investments, LLC as the Stalking Horse and providing additional guidance as to the Court's expectations for the Topping Period, among other things. On April 25, 2025, the Court entered an order that set a timeline, as set forth below, for the completion of the Topping Period and briefing related thereto, among other things. Assets to be Sold: PDVH Shares Interested parties may submit bids for the purchase and sale of some or all of the PDVH Shares in accordance with the terms and conditions set forth in the Bidding Procedures as may be amended pursuant to the December 31 Order. To avoid any ambiguity, parties may submit bids for less than 100% of the PDVH Shares so long as such bid satisfies the Attached Judgments. Important Dates and Deadlines * April 28,2025 - Launch of the Topping Period. * May 28, 2025 - Deadline for bidders to submit topping bids * June 11,2025 - Deadline for Special Master to submit his Final Recommendation. * June 20,2025 - Deadline for the filing of any objections to the Special Master's Final Recommendation. * June 27, 2025 - Deadline for the filing of responses to objections to the Special Master's Final Recommendation. * July 3,2025 - Deadline for the filing of replies regarding any objections the Special Master's Final Recommendation. * July 10,2025 - Deadline for Special Master to submit joint status report, in coordination with all parties-in-interest, setting forth the parameters of the Sale Hearing. * July 17,2025 - Conclusion of the discovery period. * July 22, 2025 - Commencement of Sale Hearing to be held in Wilmington, Delware. Additional information Any party interested in submitting a bid should contact the Special Master's investment banker, Evercore at Project-Horizon@evercore.com,as soon as possible. The modified Sale Procedures Order, modifed Bidding Procedures, including Bidder Protections and Evaluation Criteria, and a Stock Purchase Agreement will be made available as soon as they are finalized and may be requested free of charge by email to the Special Master's counsel Weil Gotshal & Manges LLP at Project.Horizon.Weil@weil.com. FAILURE TO ABIDE BY THE BIDDING PROCEDURES, THE SALE PROCEDURES ORDER, THE DECEMBER 31 ORDER, THE STALKNG HORSE ORDER, THE SCHEDULING ORDER, OR ANY OTHER ORDER OF THE COURT MAY RESULT IN THE RECJECTION OF YOUR BID. About PDVSA Founded in 1976, Petroleos de Venezuela, S.A. (PDVSA) is the Venezuelan state-owned oil and natural gas company, which engages in exploration, production, refining and exporting oil as well as exploration and production of natural gas. It employs around 70,000 people and reported $48 billion in revenues in 2016. In May 2019, Moody's Investors Service withdrew all the ratings of Petroleos de Venezuela, S.A. including the senior unsecured and senior secured ratings due to insufficient information. At the time of withdrawal, the ratings were C and the outlook was stable. Citgo Petroleum Corporation (CITGO) is Venezuela's main foreign asset. CITGO is majority-owned by PDVSA. CITGO is a United States-based refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. However, CITGO formally cut ties with PDVSA at about February 2019 after U.S. sanctions were imposed on PDVSA. The sanctions are designed to curb oil revenues to the administration of President Nicolas Maduro and support for the Juan Guaido-headed party. PR DIAMOND: Gets Interim OK to Use Cash Collateral Until June 10 ---------------------------------------------------------------- PR Diamond Products, Inc. got the green light from the U.S. Bankruptcy Court for the District of Nevada to use cash collateral. The order penned by Judge Natalie Cox authorized the company's interim use of cash collateral for the period from April 25 until the final hearing in accordance with its budget. The final hearing is set for June 10. Clark County Credit Union, a secured creditor, will be provided with protection in the form of replacement lien on the company's assets; monthly payment of $2,200; and superpriority claim. Clark County Credit Union is represented by: Zachary T. Ball, Esq. The Ball Law Group 1935 Village Center Circle, Ste. 120 Las Vegas, NV 89134 Telephone: (702) 303-8600 zball@balllawgroup.com About PR Diamond Products PR Diamond Products Inc., operating as Brand X Blades, is a Las Vegas-based manufacturer and distributor of diamond cutting tools and blades for construction and industrial applications. PR Diamond Products 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 reported between $1 million and $10 million in both assets and liabilities. Judge Natalie M. Cox handles the case. The Debtor is represented by Matthew C. Zirzow, Esq., at Larson & Zirzow, LLC. PRESBYTERIAN VILLAGES: Fitch Affirms 'BB-' IDR, Outlook Negative ---------------------------------------------------------------- Fitch Ratings has affirmed the Issuer Default Rating (IDR) for the Presbyterian Villages of Michigan Obligated Group (PVM OG) at 'BB-'. Fitch has also affirmed the following PVM OG bonds at 'BB-': - $17.8 million series 2020A revenue bonds issued by the Public Finance Authority (Wisconsin); - $28.2 million of series 2015 revenue bonds issued by the Michigan Finance Authority. The Rating Outlook is Negative. Entity/Debt Rating Prior ----------- ------ ----- Presbyterian Villages of Michigan Obligated Group (MI) LT IDR BB- Affirmed BB- Presbyterian Villages of Michigan Obligated Group (MI) /General Revenues/1 LT LT BB- Affirmed BB- The affirmation is based on balance sheet improvement. In early May of 2025, PVM received approximately 10 million in proceeds from the divesture of its stake in PACE Central Michigan. The affirmation also assumes PVM will receive approximately $3 million in ERC funds in 2025 and receive approximately $3 million in proceeds from two additional divestitures in 2026. This cash infusion has improved proforma cash to adjusted debt from 21% at unaudited FYE 2024 to 36%, which is consistent with the lower-end of the 'bb' financial profile. The Negative Outlook reflects execution risk involved in PVM's ability to continue implementing cost containment strategies which will allow it to preserve the net proceeds from the PACE sale, and successfully divest other targeted assets. SECURITY The bonds are secured by a pledge of unrestricted receivables, a mortgage on certain properties and a debt service reserve fund. KEY RATING DRIVERS Revenue Defensibility - bbb Mixed Market Assessments The 'bbb' assessment is supported by a relatively steady level of occupancy across the OG, more recently bolstered by continued fill at the East Harbor campus' rental ILU expansion. The PVM OG includes two contrasting campuses: East Harbor and Westland. Westland primarily targets middle to low-income residents due to its socioeconomically challenged primary service area. Management has been pursuing plans to convert approximately half or less of the Westland campus to low-income housing and remove the units from the OG. Conversely, East Harbor is in a stronger market area with more favorable demographic characteristics, helping to anchor the 'bbb' assessment. While competitors are present in the broader area, competition is somewhat limited in the communities immediately surrounding Westland and East Harbor. Both East Harbor and Westland are similar in unit size, but East Harbor contributes significantly more in revenue and margin to the overall PVM enterprise. Combined overall occupancy for the OG, including the Harbor Inn expansion units was adequate at 89% on March 31, 2024. Occupancy for the 96 rental ILU expansion on the East Harbor campus, Harbor Inn has slowly climbed to 85% at the end of Q1 '25 from 64% in Q2 23. The protracted ILU expansion fill at the Harbor Inn campus has contributed to ongoing cost containment pressure. PVM OG mostly offers rental contracts, limiting exposure to local housing market volatility. Operating Risk - bb Cost Containment Strategies Underway Fitch's 'bb' assessment of PVM OG's operating risk reflects its nominal historical operating performance and mainly rental contract mix. From FY 2019 through 2021, cost containment was soft with an average operating ratio, net operating margin (NOM) and NOM-adjusted margin of 100.6%, negative 1.1% and negative 0.8% respectively. Increased labor costs pressured these ratios further with an operating ratio and NOM- adjusted margin for 2023 of 118%, and negative 13% respectively. To address the DSCR covenant violations of 2023 and 2024, PVM implemented several cost containment strategies. These resulted in improved, though still very weak, OR of 107.1%. Fitch expects this metric to improve to levels at or below 105% over the next several years as PVM continues to control expenses. PVM OG has a history of good capital investment, balanced against a somewhat elevated average age of plant of about 17 years. PVM OG reported it has no additional debt or major capex plans.; rather it is considering restructuring its assets and business model through the divestiture of non-performing assets to best preserve future viability. Recent years of elevated spending should support some easing of capital outlays as PVM executes on its strategic efforts, and its capital-related metrics from should remain consistent and sufficient to absorb routine capital needs in the context of its current operating plans. PVM no longer subsidizes routine operations outside the Obligated Group, though it may advance funds for urgent health and safety items subject to HUD/MSHDA reimbursement. Fitch expects this to help stabilize future cash flow. PVM carries an additional asymmetric risk consideration reflecting the high relative level of Medicaid revenue, underscores the 'bb' operating risk assessment and is integral to its assessment of execution risk. Financial Profile - bb Weak Financial Profile PVM's financial profile exhibits some strain related to an erosion in balance sheet strength, though there are no additional debt plans to elevate concerns. The stress of filling the Harbor Inn expansion along with continued labor and inflationary pressures eroded PVM's balance sheet liquidity to approximately $9.7 million at FYE 2024, or 21% cash-to-adjusted debt. The $10 million of divestiture proceeds improves this to 36% cash to adjusted debt, though it remains below $23 million and 44% cash to adjusted debt in 2021. Much of PVM's balance sheet erosion reflects cash burn from increased labor costs, subsidies to non-obligated group members, and elevated corporate expenses. Implementation of the Plante Moran consultant report has addressed and abated these pressures. Fitch expects continued austerity measures will enable PVM to preserve its improved balance sheet and maintain its 'BB-' rating. Fitch calculated MADS coverage, which includes unrealized PACE revenue and has been consistent with the weak assessment, averaging approximately 1.1x over the past five years. Management reported 65 DCOH for 2024, which is below the 90 DCOH covenant required minimum for which PVM is seeking a waiver or forbearance from its bondholders. With the divestiture proceeds, Fitch calculates 154 days of proforma DCOH for 2024, indicating PVM is likely to exceed the DCOH minimum requirement on the next testing date of June 30, 2025. As PVM's DCOH remains below Fitch's 200 DCOH threshold to assess relative liquidity, Fitch incorporates an asymmetrically 'weaker' consideration in its 'bb assessment of PVM's financial profile. Management reported a DSCR of .17x for 2024. The shortfall was primarily driven by operating losses from low occupancy, poor PACE performance, agency usage and high corporate overhead. Approximately 35% of PVM's $67 million in debt is held by Huntington bank. The missed DSCRs for 2023 and 2024 are considered an Event of Default, for which PVM is currently seeking forbearance. Fitch expects this will successfully enable the "unqualified" release of the fiscal 2023 and 2024 audited financial statements. Asymmetric Additional Risk Considerations PVM's operating risk profile incorporates a weaker asymmetric consideration. This is due to a payor mix that is heavily dependent on governmental reimbursement with Medicaid revenue generally exceeding 25% of net revenues over the past several years. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Failure to secure a waiver or forbearance agreement from creditors for covenant violations; - Cash-to-adjusted debt sustained below 30%; - MADS coverage below 1x; - Operating ratios consistently above 105%; - Deterioration in combined ILU occupancy below 70%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Waiver or forbearance agreement with expected cash-to-adjusted debt stabilizing above 45%; - Improved and sustained operating performance, with an operating ratio at or below 105%; - MADS coverage consistently above 1.2x; - Occupancy at the Harbor Inn expansion sustained above 86%. PROFILE PVM OG is an aging services network and is headquartered in Southfield, MI. It consists of PVM Corporate, the PVM Foundation, life plan communities in Westland and Chesterfield (East Harbor), Weinberg Green Houses and Presbyterian Village North (which owns 13 acres of undeveloped land and a general partner and limited partner interest in two Low Income Housing Tax Credit non-OG entities). The two PVM OG campuses total 385 independent rental units (including Harbor Inn), 116 assisted living units (ALU) and 102 skilled nursing (SNF) beds. With the issuance of the series 2020 bonds, PVM OG added the following entities: - Harry and Jeanette Weinberg Green Houses (WGH) at Rivertown located in Detroit. PVM is the sole member of WGH. WGH was completed in 2017 and consists of 21 studio apartments; - Harbor Inn, Chesterfield Township, Michigan. Presbyterian Village East is the sole member of Harbor Inn. The capital project that the bonds will primarily fund will support Harbor Inn which added 96 independent living apartments and ranch homes on the Village of East Harbor campus. PVM OG also has an ownership interest in approximately 2,021 ILUs and ALUs through nonobligated entities and an equity interest in a Program of All-Inclusive Care for the Elderly (PACE), PACE Southeast Michigan. PVM manages 486 ILUs and ALUs for which it does not have an ownership interest. All PVM owned and managed properties are in Michigan. PVM OG recorded $41 million in operating revenue in fiscal 2024 (Dec. 31 year-end). Sources of Information In addition to the sources of information identified in Fitch's applicable criteria specified below, this action was informed by data from Lumesis. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. RAMJAY INC: Angela Shortall of 3Cubed Named Subchapter V Trustee ---------------------------------------------------------------- The Acting U.S. Trustee for Region 4 appointed Angela Shortall of 3Cubed Advisory Services, LLC, as Subchapter V trustee for Ramjay, Inc. Ms. Shortall will be paid an hourly fee of $525 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Shortall declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Angela L. Shortall 3Cubed Advisory Services, LLC 111 S. Calvert St., Suite 1400 Baltimore, MD 21202 Phone: 410-783-6385 About Ramjay Inc. Ramjay, Inc. is an Alexandria, Va.-based company that operates in taxi and limousine service industry. Ramjay sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No. 21-10809) on May 4, 2021, disclosing up to $1 million in assets and up to $10 million in liabilities. Judge Brian F. Kenney oversees the case. The Debtor tapped the Law Office of John P. Forest, II as legal counsel and Miara Rasamoelina of Miara CPA Inc. as accountant. Kutak Rock, LLP represents Newtek Small Business Finance, LLC, creditor. REEF POOLS: Ruediger Mueller of TCMI Named Subchapter V Trustee --------------------------------------------------------------- The U.S. Trustee for Region 21 appointed Ruediger Mueller of TCMI, Inc. as Subchapter V trustee for Reef Pools, LLC. Mr. Mueller will be paid an hourly fee of $350 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Mueller declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Ruediger Mueller TCMI, Inc. 1112 Watson Court Reunion, FL 34747 Telephone: (678) 863-0473 Facsimile: (407) 540-9306 Email: truste@tcmius.com About Reef Pools LLC Reef Pools, LLC is a company involved in swimming pool construction, installation, or maintenance based in Bradenton, Fla. Reef Pools sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-02852) on April 30, 2025. In its petition, the Debtor reported assets between $50,000 and $100,000 and liabilities between $100,000 and $500,000. Judge Catherine Peek Mcewen handles the case. The Debtor is represented by Kevin Comer, Esq., at Comer Law Firm. REGIONS PROPERTY: Carol Fox Named Subchapter V Trustee ------------------------------------------------------ The U.S. Trustee for Region 21 appointed Carol Lynn Fox of GlassRatner as Subchapter V trustee for Regions Property Management & Construction Inc. Ms. Fox will be paid an hourly fee of $450 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Fox declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Carol Lynn Fox GlassRatner 200 East Broward Blvd., Suite 1010 Fort Lauderdale, FL 33301 Tel: 954.859.5075 Email: cfox@brileyfin.com About Regions Property Management & Construction 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 reported between $100,000 and $500,000 in assets and between $1 million and $10 million in liabilities. The Debtor is represented by Brian K. McMahon, Esq., at Brian K. McMahon, PA. RITE AID: Faces Proposed Class Action Alleging Unlawful Layoffs --------------------------------------------------------------- James Nani of Bloomberg Law reports that A former Rite Aid employee has filed a proposed class action claiming the company violated federal law by failing to provide sufficient advance notice before conducting mass layoffs during its bankruptcy proceedings. Martin C. Gordon II, a former worker at New Rite Aid LLC, filed the complaint in the U.S. Bankruptcy Court for the District of New Jersey on Friday. He seeks to represent a group of at least 300 former employees who he says were let go in violation of the federal Worker Adjustment and Retraining Notification (WARN) Act, according to Bloomberg Law. Gordon is pursuing compensation equal to 60 days’ pay and benefits for the impacted workers, the report states. About Rite Aid Corp. Rite Aid -- http://www.riteaid.com-- is a full-service pharmacy that improves health outcomes. Rite Aid is defining the modern pharmacy by meeting customer needs with a wide range of vehicles that offer convenience, including retail and delivery pharmacy, as well as services offered through our wholly owned subsidiaries, Elixir, Bartell Drugs and Health Dialog. Elixir, Rite Aid's pharmacy benefits and services company, consists of accredited mail and specialty pharmacies, prescription discount programs and an industry leading adjudication platform to offer superior member experience and cost savings. Health Dialog provides healthcare coaching and disease management services via live online and phone health services. Regional chain Bartell Drugs has supported the health and wellness needs in the Seattle area for more than 130 years. Rite Aid employs more than 6,100 pharmacists and operates more than 2,100 retail pharmacy locations across 17 states. The Debtors sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 23-18993) on Oct. 15, 2023. In the petition signed by Jeffrey S. Stein, chief executive officer and chief restructuring officer, Rite Aid disclosed $7,650,418,000 in total assets and $8,597,866,000 in total liabilities. Judge Michael B. Kaplan oversees the cases. The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis International LLP as general bankruptcy counsel, Cole Schotz, P.C., as local bankruptcy counsel, Guggenheim Partners as investment banker, Alvarez & Marsal North America, LLC as financial, tax and restructuring advisor, and Kroll Restructuring Administration as claims and noticing agent. 2nd Attempt Rite Aid Corp. and subsidiaries sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Lead Case No. 25-14861) on May 5, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 billion and $10 billion each. Honorable Bankruptcy Judge Michael B. Kaplan oversees the case. The Debtor is represented by Michael D. Sirota, Esq., Warren A. Usatine, Esq., Felice R. Yudkin, Esq., and Seth Van Aalten, Esq. at COLE SCHOTZ P.C. and Andrew N. Rosenberg, Esq., Alice Belisle Eaton, Esq., Christopher Hopkins, Esq., and Sean A. Mitchell, Esq. at PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP. Advisors to the Company include Paul, Weiss, Rifkind, Wharton & Garrison LLP (legal), Guggenheim Securities, LLC (investment banking), Alvarez & Marsal (financial), and Joele Frank, Wilkinson Brimmer Katcher (strategic communications). A&G REALTY PARTNERS, LLC is the Debtor's Real Estate Advisory Services Provider and KROLL RESTRUCTURING ADMINISTRATION LLC as Claims & Noticing Agent. RIVE RELEASING: Auction of Collateral Scheduled for May 22 ---------------------------------------------------------- Raven Asset-Based Credit Fund I LP is the administrative agent for the lenders {in such capacities, the "Secured Party") under that certain Loan and Security Agreement, dated as of July 20, 2020 (as amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"). Pursuant to the Credit Agreement, RIVE Releasing, LLC (the "Debtor") granted the Secured Party a Security interest in all of its Collateral (as defined in the Credit Agreement). The Debtor is in default of its obligations under the Credit Agreement. This notice is being published pursuant to Sections 9-610 and 9-611 of the Uniform Commercial Code, as enacted and applicable with the State of New York (the "UCC"). The Secured Party intends to sell (the "Sale") some or all of the Collateral described on Exhibit A hereto (the "Sale Collateral") in public as follows (as such date, time and location maybe continued, postponed or otherwise delayed, modified or adjusted in the discretion of the Secured Party from time to time): Day and Date: May 22, 2025 Time: 10:00 a.m. (Pacific Time) Place: Paul Hastings LLP 1999 Avenue of the Stars, 27th Floor, Century City, CA 90067 The Public Auction will also be available by teleconference. Remote access details can be requested from Dov Goodman at Paul Hastings LLP at 310-620-5736 or dovgoodman@paulhastings.com. Persons interested in participating in the Public Auction should contact Mr. Goodman no later than five (5) days prior to the Sale Date. The purchase price for the Sale Collateral shall be payable by wire transfer drawn on US banks in same-day funds or by certified or bank check drawn upon a US bank as follows: (i) a one million dollar ($1,000,000) deposit "Good Faith Deposit") is required to be delivered at least one (1) business day prior to the Sale Date, which deposit shall be delivered pursuant to wire instructions available upon request by a prospective bidder to Mr. Goodman, (ii) within one (1) business day following the Sale Date, the winning bidder shall if necessary, deposit additional cash with the Secured Party in order to, when aggregated with the Good Faith Deposit, ensure that the Secured Party has received cash in an amount not less than 20% of the winning purchase price amount and (iii) the balance of the purchase price shall be payable within fifteen (15) days following such successful bid. All Good Faith Deposits shall be non-refundable once submitted; provided, that, if a bidder who has delivered a Good Faith Deposit is not selected as the winning bidder, they shall be entitled to the return of their Good Faith Deposit within five (5) business days after the Sale Date. If a winning bidder fails to timely consummate the purchase of the Sale Collateral due to a breach or failure to perform on the part of such winning, such defaulting winning bidder's Good Faith Deposit shall be forfeited to the Secured Party and the Secured Party reserves the right to seek all available damages from such defaulting winning bidder. The bids made at the auction must be accompanied by evidence satisfactory to the Secured Party, in its sole and absolute discretion, of the bidder's ability to make payment in cash in full of the purchase price as and when required by the terms of the Sale. The Sale shall be subject to the further conditions set forth in the terms of sale which are available upon request fram Mr. Goodman and such revisions thereto as may be announced prior to or at the start of the auction. Copies of documentation available to the Secured Party concerning the Sale Collateral will be made available to qualified bidders who have entered into a confidentiality acceptable to the Secured Party. The Secured Party reserves the right to bid, to become purchaser at the Sale, without deposit, to credit against the purchase price all sums related to the Obligations under the Credit Agreement and to adjourn, delay or terminate the Sale at any time. The Sale Collateral will be sold "as is" and "where is" and without any implied of express representation, warranty or covenant, including without limitation any warranty relating to title, possession, quiet enjoyment, or the like, in the disposition of any or all of the Sale Collateral. The Sale Collateral may be sold as a block, although the Secured Party reserves the right to consider proposals to only acquire certain assets. Among other requirements, the purchaser at the Sale will be required to represent that any Sale Collateral consisting of securities is being acquired for the purchaser's own account and not with a view to the sale or distribution thereof and that such Sale Collateral will not be resold unless pursuant to an effective registration statement under the Securities Act of 1983 (the "Act") and any applicable state securities laws or under a valid exemption from the registration requirements of the Act and such laws. The purchaser will also be required to provide the Secured Party with an investment letter. EXHIBIT A (Description of Sale Collateral) All of the Debtor's right, title and interest (of every kind and nature) in and to all equipment, personal property (including things in action), copyrights, trademarks, patents, intellectual property, documents, goods, inventory, investment property (including all preferred equity interests issued by AMBI Exclusive Acquisition Co, LLC owned by the Debtor), letter of credit rights, supporting obligations, accounts receivable, deposit accounts including the Collection Account (as defined in the Existing Credit Agreement), contract rights and general intangibles, chattel paper, negotiable instruments and other negotiable collateral and all other personal property of the Debtor and all products and proceeds. SMITH HEALTH: No Resident Care Concern, 3rd PCO Report Says ----------------------------------------------------------- Margaret Barajas, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the Middle District of Pennsylvania her third report regarding the quality of patient care provided by Smith Health Care, LTD. The ombudsman observed that an activities calendar is posted with appropriate activities. Snacks are available to residents. The facility and resident rooms appear clean. No concerns were received regarding call bells. During the site visit on May 1, the staff was observed preparing the outside courtyard for resident use. The ombudsman observed that the current occupancy rates indicate a decrease of one resident since the previous report. Local ombudsman records indicate that this census, based on the number of available beds, is similar to other personal-care facilities in the area. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=teUNv8 from PacerMonitor.com. About Smith Health Care Ltd. Smith Health Care Ltd., formerly known as Smith Nursing and Convalescent Home of Mountain Top, Inc., provides inpatient nursing and rehabilitative services to patients who require continuous health care. It is based in Mountain Top, Pa. Smith Health Care filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Pa. Case No. 24-02892) on November 7, 2024, with $1 million to $10 million in both assets and liabilities. Donna Strittmatter, president of Smith Health Care, signed the petition. Judge Mark J. Conway handles the case. The Debtor is represented by Robert E. Chernicoff, Esq., at Cunningham, Chernicoff & Warshawsky, PC. Margaret Barajas is the patient care ombudsman appointed in the Debtor's case. SPORTIF VENTURES: Edward Burr Named Subchapter V Trustee -------------------------------------------------------- The U.S. Trustee for Region 17 appointed Edward Burr of Mac Restructuring Advisors, LLC as Subchapter V trustee for Sportif Ventures, LLC. Mr. Burr will be paid an hourly fee of $450 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Burr declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Edward Burr Mac Restructuring Advisors, LLC 10191 E. Shangri La Road Scottsdale, AZ 85260 Phone: (602) 418-2906 Email: Ted@macrestructuring.com About Sportif Ventures Sportif Ventures, LLC, operating as Biloxi Bicycle Works and GovVelo, is a bicycle retailer based in Biloxi, Miss. Sportif Ventures filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No. 25-03763) on April 29, 2025. In its petition, the Debtor reported between $100,000 and $500,000 in assets and between $500,000 and $1 million in liabilities. The Debtor is represented by Grant L. Cartwright, Esq., at May, Potenza, Baran & Gillespie, P.C. ST. CHARLES: S&P Raises Long-Term GO Parity Debt Rating to 'BB-' ---------------------------------------------------------------- S&P Global Ratings raised its long-term rating on St. Charles Parish Hospital District No. 1 (St. Charles), La.'s previously issued general obligation (GO) parity debt to 'BB-' from 'B+'. The outlook is stable. S&P said, "The upgrade reflects our view of St. Charles' markedly improved unrestricted reserves and continued solid performance, largely supported by Ochsner's management agreement, with slowly improving debt-related ratios. "We view St. Charles' overall physical environmental risks as elevated given its location in markets that are historically prone to severe weather-related events, particularly hurricanes and flooding. St. Charles, together with Ochsner, has organization-wide policies and procedures in place to implement in the event of a pending hurricane, and this helps minimize disruption to overall operations. That said, we believe these physical events create some uncertainty as to the organization's credit profile, although to date this has not had a material credit influence. As an example, when Hurricane Ida came through the parish in fall 2021, management experienced some volume fluctuations and temporary cessation of services, but Ochsner's generators and operational strategies provided support, so disruption was very limited. In addition, with the support of Ochsner, St. Charles was able to collect FEMA funds in fiscal 2023 and 2024." St. Charles' social risks are elevated given its location in a limited service area with a small population and a payer mix that is reliant on governmental payers. S&P said, "Our view of St. Charles' governance factors is neutral. While the district's board of directors is not self-perpetuating, which we consider best practice, we note that this structure has not hampered St. Charles' ability to execute on strategies and is not uncommon among district providers. We view positively the board's decision for Ochsner to manage St. Charles, as this has helped stabilize financial results and support the hospital's ability to meet appropriate patient demand. "The stable outlook reflects our view of St. Charles' healthy reserves, positive performance and stable ad valorem tax support. The outlook also reflects our view of the successful management service agreement with Ochsner that we expect will be maintained to support stability in the organization's business and financial position over the outlook period. "We could consider a lower rating should performance metrics tighten or if reserves diminish materially. We could also do so if operations, the Ochsner management agreement, or the tax base face challenges. While we believe there is some room for additional debt at the current rating, a significant issuance could pressure the rating. "Over time, we could raise the rating if St. Charles maintains its relationship with Ochsner and continues to operate effectively, translating to a meaningful decline in leverage, while continuing to maintain reserve-related ratios and demonstrate that its financial profile is less dependent on Ochsner's managerial support. In addition, we would take a favorable view if St. Charles reduced its debt burden and maintained its enterprise profile at minimum." STARR RAIL: Areya Holder Aurzada Named Subchapter V Trustee ----------------------------------------------------------- The U.S. Trustee for Region 6 appointed Areya Holder Aurzada, Esq., at Holder Law as Subchapter V trustee for Starr Rail, LLC. Ms. Aurzada will be paid an hourly fee of $575 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Aurzada declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Areya Holder Aurzada, Esq. Holder Law 901 Main Street, Ste. 5320 Dallas, TX 75202 Office: 972-438-8800 Mobile: 817-907-4140 About Starr Rail LLC Starr Rail, LLC operates as a rail logistics and transloading provider. Founded in 2018, the company focuses on first- and last-mile rail solutions, offering services such as transloading, storage, and bulk material packaging. Its operations accommodate a range of freight, including lumber, steel, aluminum, aggregates, plastic pellets, diesel, and propane. Starr Rail filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Texas Case No. 25-41307) on April 11, 2025. In its petition, the Debtor reported total assets of $2,763,979 and total liabilities of $2,476,623. Judge Mark X. Mullin handles the case. The Debtor is represented by Robert T. DeMarco, Esq., at DeMarco Mitchell, PLLC. STO-ROX SCHOOL: Moody's Upgrades Issuer & GOULT Ratings to Ba3 -------------------------------------------------------------- Moody's Ratings has upgraded Sto-Rox School District, PA's issuer and general obligation unlimited tax (GOULT) ratings to Ba3 from B2. At the end of fiscal 2024, the district had approximately $7.2 million in debt outstanding. The upgrade to Ba3 reflects the expectation that reserves will continue to improve despite notable charter school competition due to ongoing support from the Pennsylvania Department of Education under its Financial Recovery program. RATINGS RATIONALE The Ba3 issuer rating reflects the district's substantially improved financial position, which will continue to exhibit strength in the near term due to the ongoing receipt of state empowerment grants and mandatory property tax millage increases as part of the state's Financial Recovery program. Due to ongoing support, the district's available fund balance grew to a historically high 31% of revenue at the end of fiscal 2024 from -6% two years ago, and is expected to further strengthen in fiscal 2025. The district has also begun to build a capital reserve fund to cover deferred maintenance needs. The rating also reflects the district's highly manageable leverage - which amounted to a mere 73% of revenue at the end of fiscal 2024 - and its absence of borrowing plans. That said, the district's economic base remains pressured with an adjusted household income that equates to 55% of the national median and a full value per capita of $30,000. Additionally, enrollment will continue to decline at a relatively rapid pace while the district continues to face staunch competition from charter and cyber schools. The lack of distinction between the district's issuer rating and the Ba3 rating on the district's GOULT debt is based on the district's general obligation full faith and credit pledge. RATING OUTLOOK Moody's do not assign outlooks to local government credits with this amount of debt outstanding. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Maintenance of reserves and liquidity of greater than 20% of revenue -- Slowing of enrollment loss (loss of less than 5% on a compound average annual basis) FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Return to structurally imbalanced financial operations -- Any weakening of economic indicators PROFILE Sto-Rox School District is located in Allegheny County, about 6 miles northwest of Pittsburgh. The district served 998 students through one primary center, one upper elementary school and one junior/senior high school as of the 2023-2024 school year. METHODOLOGY The principal methodology used in these ratings was US K-12 Public School Districts published in July 2024. STONEYBROOK FAMILY: Unsecureds to Get Share of Income for 3 Years ----------------------------------------------------------------- Stoneybrook Family Dentistry, P.A. d/b/a Wholistic Dental, Stoneybrook Dental, filed with the U.S. Bankruptcy Court for the Middle District of Florida a Plan of Reorganization under Subchapter V dated May 1, 2025. Stoneybrook was established in 2007 by Dr. Wendi K. Wardlaw and is a private dental practice serving patients in Winter Garden, Florida. Stoneybrook delivers traditional dental care in addition to holistic care that includes sleep apnea therapy. In 2022 the Debtor began construction of a new location to further expand its operations. The Debtor undertook significant debt for its expansion. Despite securing the advice of consultants and engaging seeming reputable contractors, the construction project proceeded with much difficulty and ultimately resulted in a space that was suboptimal for the Debtor's historical business composition. These issues impacted Stoneybrook's business and revenues, and the Debtor was unable to pay all of its debts. Stoneybrook undertook measures to adjust its business composition to enable it to derive the revenues necessary to reorganize its existing space. However, in order to preserve its business, reorganize its debts, and preserve its jobs, DPW filed this Chapter 11. Class 5 consists of General Unsecured Claims. Subject to the requirements of the Plan, the Bankruptcy Code, or a Final Order, Holders of General Unsecured Claims shall receive approximately a Pro Rata Share of the net sum of the Projected Disposable Income over a three-year plan period beginning on the Effective Date, after making payment of Allowed Administrative Expense Claims, Fee Claims, and Priority Tax Claims in accordance with the terms of the Plan. Quarterly Plan payments shall commence on the fifteenth day of the month, on the first calendar quarter after the Effective Date, and shall continue quarterly thereafter until the end of the three-year plan period, in an amount equal to one-quarter of the Projected Disposable Income for the respective plan year. Holders of Class 2 claims shall be paid directly by the Debtor. If the Debtor remains in possession, plan payments shall include the Subchapter V Trustee's administrative fee which will be billed hourly at the Subchapter V Trustee 's then current allowable blended rate. The Plan contemplates that the Reorganized Debtor will continue to operate the business of the Debtor. The Reorganized Debtor believes that the continued earnings through the operation of the Debtor will be sufficient to fund the payments required to be made under the Plan. Prior to the Effective Date, and subject to the Bankruptcy Code, Final Orders of the Bankruptcy Court, and other applicable law, the Debtor shall use funds generated during the pendency of the bankruptcy case to pay amounts due in the ordinary course and to fund payments due under the Plan on and after the Effective Date. Except as explicitly required by the Plan, the Reorganized Debtor shall have the sole and absolute discretion to use funds generated after the Effective Date without further notice or approval. The Debtor may prepay any Plan payments. A full-text copy of the Subchapter V Plan dated May 1, 2025 is available at https://urlcurt.com/u?l=vw36e3 from PacerMonitor.com at no charge. About Stoneybrook Family Dentistry Stoneybrook Family Dentistry, P.A., specializes in cosmetic dentistry, Invisalign, dental implants, pediatric dentistry, root canal therapy, and smile makeovers. Stoneybrook filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 25-bk-00604) on Jan. 8, 2024, listing up to $500,000 in assets and up to $10 million in liabilities. Wendi K. Wardlaw, president of Stoneybrook, signed the petition. Judge Tiffany P. Geyer oversees the case. The Debtor is represented by: Paul N. Mascia, Esq. Nardella & Nardella, PLLC Tel: 407-966-2680 Email: pmascia@nardellalaw.com SUNNOVA ENERGY: Extends Forbearance Deal With Noteholders to May 22 ------------------------------------------------------------------- Sunnova Energy International Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on May 15, 2025, the Company and the other parties to the Forbearance Agreement agreed by email correspondence to an extension of that certain Forbearance Agreement, dated as of May 2, 2025, by and among the Company, Sunnova Energy Corporation ("SEC"), Sunnova Intermediate Holdings, LLC and certain beneficial holders or investment managers or advisors for such beneficial holders of SEC's 11.750% Senior Notes due 2028 and SEC's 5.875% Senior Notes due 2026, relating to the Notes. As previously announced, the Company elected to defer making an interest payment on the 11.750% Notes of approximately $23.5 million due on April 1, 2025, and enter the 30-day grace period under the indenture governing the 11.750% Notes, which expired on May 1, 2025. Pursuant to the 11.750% Notes Indenture, a failure to make the interest payment by the expiration of the grace period constitutes an "Event of Default" under such indenture, which would entitle the trustee under the 11.750% Notes Indenture or the holders of at least 30% in aggregate principal amount of the outstanding 11.750% Notes to accelerate the maturity thereof. An Event of Default under the 11.750% Notes Indenture causes a cross-default under the indenture governing the 5.875% Notes, which would entitle the trustee under such indenture or the holders of at least 30% in aggregate principal amount of the outstanding 5.875% Notes to accelerate the maturity thereof. As previously disclosed in the Current Report on Form 8-K filed on May 2, 2025, the Forbearance Agreement provided that, from May 2, 2025 until May 8, 2025, or the occurrence of another Event of Termination, the Supporting Holders would: (i) forbear from exercising any of their rights and remedies, including with respect to an acceleration, under 5.875% Notes Indenture or 11.750% Notes Indenture, as applicable, or applicable law with respect to the Specified Default and the Cross-Default and (ii) in the event that the applicable trustee or any holder or group of holders declares the Notes to be due and payable immediately during the Forbearance Period, to deliver written notice to the applicable trustee to rescind such Acceleration and its consequences and take all other action in their power to cause such Acceleration to be rescinded and annulled. In addition, during the Forbearance Period, each Supporting Holder (severally and not jointly) agreed that it (individually or collectively) will not deliver any notice or instruction to the applicable trustee directing the applicable trustee to exercise during the Forbearance Period any of the rights and remedies under 5.875% Notes Indenture or 11.750% Notes Indenture, as applicable, or applicable law with respect to the Specified Default and the Cross-Default. During the Forbearance Period, each of the Supporting Holders is prohibited from transferring the 5.875% Notes or 11.750% Notes, as applicable, except to a party who is already a Supporting Holder or who, prior to such transfer, agrees to be bound by all of the terms of the Forbearance Agreement. Further, as previously disclosed in the Current Report on Form 8-K filed on May 8, 2025, the Company and the other parties to the Forbearance Agreement extended the Forbearance Period until the earlier of: (i) May 15, 2025 and (ii) the occurrence of another Event of Termination. The Amendment further extends the Forbearance Period until the earlier of: (i) May 22, 2025 and (ii) the occurrence of another Event of Termination. 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 May 2025, Fitch Ratings has downgraded Sunnova Energy International Inc.'s (Sunnova) and Sunnova Energy Corporation's (SEC) Long-Term Issuer Default Ratings (IDRs) to 'RD' from 'C'. Fitch has affirmed SEC's senior unsecured debt rating at 'C' with a Recovery Rating of RR4'. The downgrade reflects the uncured missed interest payment on Sunnova's $400 million senior notes maturing in 2028, which was due on April 1, 2025, and the expiration of the 30-day grace period. Sunnova has entered into a forbearance agreement that extends from May 2, 2025, to May 8, 2025, or until any other defined termination event occurs. Sunnova's ratings also reflect the structural subordination of corporate debt to nonrecourse securitization debt, a primary funding source for the company. SYNAPTICS INC: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed Synaptics Incorporated's Long-Term Issuer Default Rating (IDR) at 'BB', as well as its senior unsecured notes at 'BB' with a Recovery Rating of 'RR4'. The Rating Outlook is Stable. Synaptics' ratings and Stable Outlook reflect its estimated FCF profile, expected EBITDA leverage improvement to below 3x during the forecast period, and end-market growth opportunities in its core Internet of Things (IoT) segment. It also considers Synaptics' revenue volatility, decreased cash position, and potential macroeconomic and tariff-related impacts on end-market demand. Key Rating Drivers Progressing Through a Deleveraging Period: Fitch forecasts Synaptics' EBITDA leverage will decrease to 4.3x by the end of its fiscal year in June 2025, down from 6.4x in 2024. By fiscal 2027, it is expected to trend below the 3.0x downgrade sensitivity threshold. Synaptics' improved leverage results from the effective replacement of its term loan with a smaller convertible note in November 2024, completion of the January 2025 Broadcom agreement with cash, and an increase in year-over-year EBITDA. Fitch forecasts EBITDA growth will primarily drive deleveraging during the forecast period. Demand Volatility Offsets Profitability: Synaptics is exposed to the cyclical nature of consumer electronics markets, where component suppliers often face volatility due to changing consumer spending patterns, short product lead times, and annual product updates. The company also contends with intermittent supply and demand imbalances and changing enterprise spending timing. This volatility within Synaptics' credit profile dampens the benefits of its strong profitability. Even with a historically lower-than-normal EBITDA margin of 19% forecast for fiscal 2025, this level of margin remains beneficial for the 'BB' rating category. Low Direct Tariff Exposure: Synaptics doesn't have direct U.S. tariff exposure as its products are a part of systems or subsystems that are ultimately shipped into the U.S. The geographical distribution of its sales mirrors the location of its customers' facilities. Synaptics' tariff exposure primarily arises from potential impacts on end-market demand if higher costs reduce volumes in affected regions, as well as the risk of margin compression pressures if tariff-related costs cannot be passed on to consumers. To date, tariff policies have had no clear impact on Synaptics' financials. Conservative Leverage Target: Synaptics targets gross leverage of 1.5x, which is considered strong for the 'BB' rating category regardless of business profile factors. In 2024, Synaptics did not repurchase any shares, opting to prioritize financial flexibility. YTD through 3Q25, Synaptics repurchased approximately $113 million in shares, indicating a more balanced prioritization of FCF uses as leverage decreases. At its current leverage level, there is limited capacity for a leveraging M&A transaction while maintaining a 'BB' rating. Structural Market Growth Opportunities: Synaptics is well positioned to capitalize on growth in end markets and product applications within its core IoT segment, which accounted for 23.8% of 2024 YE sales. A significant increase in the core IoT segment's sales mix could reduce operating volatility, diversify the customer base and contribute meaningfully to free cash flow (FCF). Through the Cycle FCF Generation: Fitch forecasts positive annual FCF generation between fiscal 2025 and 2028, cumulatively exceeding $0.7 billion. FCF generation benefits from a low capital expenditure business model that outsources manufacturing and generally ships directly from manufacturers, along with flexible shareholder distributions via buybacks. Synaptics' consistent FCF strengthens its balance sheet and, at more typical leverage levels, enhances its capacity for opportunistic M&A to supplement organic growth. In addition, it provides improved visibility on the company's ability to reduce leverage through discretionary debt repayments. Product Leadership: Synaptics boasts a broad product portfolio with a history of leadership in multiple markets, holding leading positions in areas such as PC fingerprint sensors and touchpads, video interfaces in laptop docking stations, and video adaptors. However, opportunities for product leadership through significant pricing power are limited by the sector's competitive nature. Long-term competitive advantages are constrained by low switching costs, the risk of OEM customers pursuing in-house designs, technology risks from evolving device interfaces and intense competition for design slots. Customer Concentration: Growth in less concentrated end markets and emerging product areas enhances customer diversification. In fiscal 2024, 12% of its revenue came from one customer. While customer concentration is likely to persist due to the scale of its OEM customers in PC, mobile and automotive markets, this effect is expected to decrease as the core IoT segment grows as a percentage of sales mix and as go-to-market initiatives gain traction. Convertible Notes Treatment: Fitch assigns no equity credit to Synaptics' $450 million in convertible senior unsecured notes. According to Fitch's "Corporate Hybrid Treatment and Notching Criteria," these convertibles are characterized this way because they are optionally convertible rather than mandatorily convertible and are not subordinated to senior debt. Peer Analysis Synaptics' profitability, as measured by its EBITDA margin, remains a strength of its credit profile. Fitch forecasts that the EBITDA margin will be 18.5% at the end of fiscal 2025, which is lower than the pre-2024 levels that exceeded 30%. Synaptics' margins are below those of Entegris, Inc. (BB/Stable; 29%) and MKS Instruments, Inc. (BB/Stable; 26%), but above TTM Technologies, Inc. (BB/Positive; 15%) for the same period. Each of these 'BB' rated peers has some level of cyclicality, with Synaptics having the most pronounced. Except for 2024 and fiscal 2025, historically, Synaptics has led these peer companies in FCF generation. Synaptics' FCF margins are forecast to increase to the high-mid teens by fiscal YE2027, approaching its historic levels. This is in contrast to the peer group, which is expected to have FCF margins ranging between 5% and 12%. Higher-rated semiconductor market-related peers Microchip Technology Inc. (Microchip, BBB/Stable) and NXP Semiconductors N.V. (BBB+/Stable) are significantly larger than Synaptics. They generated FCF of $1.7 billion and $0.9 billion, respectively, in their most recent fiscal years. Microchip and NXP also have higher profitability, with EBITDA margins of 47.4% and 39.1%, respectively, for their most recent year ends. Like Synaptics, Microchip has historically shown a willingness to exceed leverage targets for acquisitions, maintaining a net leverage target of 1.5x, which is above Synaptics' 1.5x gross leverage target, but is supported by Microchip's stronger market position and larger scale. Key Assumptions - Enterprise and consumer spending improves from 2024 lows, growing organically in the high single digits through the forecast with accelerating sales in the core IoT segment, resulting in segment contributions near 30% of sales mix by fiscal 2028. Higher revenue growth is tempered by macroeconomic and tariff risks affecting end-market demand; - EBITDA margins in 2025 informed by YTD performance of approximately 19%. Margins improve toward mid-20% though the forecast period as operating leverage improves and sales mix contributions from the lower gross margin mobile segment decrease. Macro-driven margin pressures temper recovery to EBITDA margins in excess of 30% experienced prior to fiscal 2024; - Capex normalized between 2.5% and 3.0% of revenue, in line with historic performance and the practice of outsourcing manufacturing during the remainder of forecast period; - Share repurchases of $150 million-$200 million annually during forecast period with the existing share repurchase program extended past 2025. No common or special dividends paid; - Partially debt-funded acquisitions within the core IoT segment closing in fiscal 2028 with total consideration of $500 million, completed at 3.5x enterprise value/revenue; - Base rates above SOFR applicable to the revolving credit facility reflects the forward curve declining from 4.3% to 3.1% in fiscal 2027, before increasing to 3.4% in 2028. The revolving facility is not expected to be drawn during the forecast period. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage sustained above 3.0x; - Consistent flat or declining revenue yoy; - FCF margins sustained below 10%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage sustained below 2.5x; - Core IoT sales mix trending to over 30%, leading to greater customer diversity and consistent top-line growth; - FCF margins sustained above 20%. Liquidity and Debt Structure Historically, Synaptics has held a large cash balance compared to its operational needs. This balance, inclusive of certificates of deposit, declined over fiscal 2025 from $877 million to $421 million ($360 million cash, $61 million certificates of deposit) at fiscal 3Q25 (March 29, 2025). The YTD decline comes after funding the Broadcom agreement, as well as repaying its term loan with the convertible issue proceeds including capped call costs, which reduced its overall debt during the period. Liquidity is further supported by Synaptics' $350 million revolving credit facility, which was undrawn at fiscal 3Q25. Forecast FCF, benefiting from a low capital intensity business structure, reduces medium-term refinancing risk for Synaptics' undrawn credit facility maturing in 2029. Synaptics' next outstanding debt maturity is its $400 million senior unsecured notes in 2029, followed by its convertible notes maturing in 2031. Issuer Profile Synaptics develops semiconductor solutions that enable people to interact with electronic devices. Its product offerings include connectivity, audio, high-definition video, touch controllers, display drivers, fingerprint sensors and touchpad solutions. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Synaptics Incorporated LT IDR BB Affirmed BB senior unsecured LT BB Affirmed RR4 BB SYRACUSE INDUSTRIAL: Fitch Affirms CC Rating on Carousel Ctr. Bonds ------------------------------------------------------------------- Fitch Ratings has affirmed the following Syracuse Industrial Development Agency, New York (SIDA) bonds at 'CC': - $198.7 million payments in lieu of taxes (PILOT) revenue refunding bonds, series 2016A (Carousel Center Project); - $10.6 million PILOT revenue refunding bonds, taxable series 2016B (Carousel Center Project); - $38.8 million PILOT revenue bonds, taxable series 2007B (Carousel Center Project). Entity/Debt Rating Prior ----------- ------ ----- Syracuse Industrial Development Agency (NY) [Carousel Center PILOT] Syracuse Industrial Development Agency (NY) /Property Assessment – PILOT/1 LT LT CC Affirmed CC The 'CC' rating reflects Fitch's assessment that an eventual default is probable, although not imminent. While PILOT payments have been timely so far, the payor of the PILOTs, Carousel Center Company L.P., owner of the Carousel Center mall owner, has subordinate mortgage loan obligations that are not being fully met. This situation could potentially interrupt future PILOT payments if Carousel faces receivership or bankruptcy. The subordinate commercial mortgage pass-through certificates (CMBS) associated with the mall were subject to a forbearance and modification agreement with Wells Fargo, the p previous loan special servicer. This agreement required Carousel to meet annual net operating income (NOI) thresholds to extend the forbearance period. Carousel failed to meet the June 6, 2024 NOI threshold and is currently in negotiations with the lender, Wilmington Trust, N.A., to determine future requirements for reinstating the forbearance period. Fitch believes that the servicer will continue to pay the PILOT bond debt service from property taxes in the near term, even if the forbearance period is not extended to preserve its property rights. The mall's NOI has been sufficient to cover current PILOT payments. Fitch estimates that the NOI from the Carousel and Destiny expansion portion of the mall at the end of 2024 provided 1.06x coverage of maximum annual debt service occurring in 2035 on the PILOT revenue bonds. Fitch anticipates ongoing pressure on NOI due to the ascending schedule of annual PILOT payments and the potential decline in the mall's performance, attributed to slower revenue growth from a loss of retail tenants and rising operating expenses. This situation is exacerbated by declining consumer demand in the retail sector, inflationary costs, and a slowdown in consumer spending, which is anticipated to further impact weaker malls. Retailers are expected to adjust their space requirements, with some closing stores and others expanding, resulting in minimal net change in total occupancy. The mall total occupancy was reported at 72%, including specialty stores, as of Dec. 31, 2024, down from 80% as of the prior year end. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A decline in the mall operator's NOI and inability to cover debt service on the PILOT revenue bonds; - Loss of the loan servicer impacting the advancement of PILOT payments in the event of a NOI deficiency; - Receivership of the property or bankruptcy filing by the mall operator. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The ongoing recovery of the mall, which may be reflected in an improving NOI and increased MADS coverage on the bonds. Dedicated Tax Security The bonds are secured by PILOTs on the original or 'legacy' Carousel Center mall payable to SIDA by the Carousel Center Company LP (the Carousel Owner) pursuant to a PILOT agreement as well as by interest earnings on debt service reserves. The debt service reserve funds total 125% of average annual debt service. Dedicated Tax Key Rating Drivers Mall operations have weakened over the last ten years, which is evidenced by a reduction in annual net operating income compared to 2014 levels. Combined NOI in 2024 from Carousel and Destiny, based on issuer provided cash flow statements, covers the maximum annual PILOT debt service by around 1.06x and covers annual debt service by around 1.57x. The NOI of Carousel alone covers annual debt service 1.24x and MADS by 0.8x. Fitch believes that MADs coverage from combined properties could fall below 1.0 coverage in the near term given the flat to declining NOI trend and ascending annual PILOT schedule. SIDA has no material exposure to mall's operating risks. As such, Fitch has not assigned an Issuer Default Rating (IDR), and there is no related cap on the PILOT bond rating. PROFILE Destiny USA is a roughly two million square foot regional shopping center in Syracuse, NY. The mall opened in 1990 as the Carousel Center. It is owned by the Carousel Center Company L.P., a subsidiary of Pyramid Company of Onondaga, which is part of the Pyramid Companies established in 1969. Pyramid, the mall operator, has a senior obligation to pay PILOTs equal to debt service on the PILOT revenue bonds. Mall tenants are obligated to pay their share of PILOTs to Pyramid, an obligation that is absolute and unconditional. Pyramid's PILOT payment is secured by PILOT mortgages granted by both Pyramid and the SIDA on the original mall (the PILOT mortgages do not extend to the mall expansion project completed in 2012). The lien provided by the PILOT mortgages is similar to those by taxing authorities, offering foreclosure as a remedy. The senior obligation of the PILOTs is on par with property taxes and ensures that proceeds from foreclosure will be allocated first to the PILOTs before the excess is utilized for underlying mortgage claims. The Carousel Center carries a $328 million mortgage loan and a $142 million mortgage on the Destiny expansion project, inclusive of deferred interest, securitized as CMBS. The special servicer of the CMBS is CWCapital. The presence of a CMBS servicer remains an important rating consideration, given its role in advancing the PILOT payments in the event of a NOI deficiency, and the PILOT's strong lien position in the mall's debt structure. Pyramid entered into a standstill agreement that included a moratorium on monthly debt service payments and an extension of the loan until June 6, 2022. Before the expiry, the borrower secured two one-year loan extensions and the lender agreed to forbear from exercising certain rights and remedies arising from defaults through June 6, 2024, with options for further forbearance extensions through June 6, 2027. Each loan extension and continuation of forbearance is subject to achieving certain financial hurdles, including required NOI thresholds, which, pursuant to the agreement, were scheduled to increase each year through 2027. As indicated above, the June 6, 2024 NOI threshold was not met. Sources of Information In addition to sources of information identified in Fitch's applicable criteria specified below, this action was informed by data from DIVER by Solve. ESG Considerations Fitch does not provide ESG relevance scores for Syracuse Industrial Development Agency (NY) Carousel Center PILOT. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, program, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. TELUS CORP: DBRS Finalizes BB(high) Rating on Subordinated Notes ---------------------------------------------------------------- DBRS Limited finalized its provisional credit rating BB (high), with a Stable trend, on TELUS Corporation's (TELUS or the Company) $1,100 million 6.250% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAR due July 21, 2055 and $500 million 6.750% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAS due July 21, 2055 (collectively the Notes). There is no change to either the Company's Issuer Rating or senior unsecured debt rating, which are rated BBB with Stable trends. The Notes are unsecured subordinated obligations of the Company, are subordinated in right of payment to all existing and future senior indebtedness and are effectively subordinated to all indebtedness and obligations of, or guaranteed by, the Company's subsidiaries. Morningstar DBRS expects the net proceeds of the Notes issuance will be used for the repayment of outstanding indebtedness, including the repayment of commercial paper (incurred for general working capital purposes), the reduction of cash amounts outstanding under the Receivables Trust (incurred for general working capital purposes), the repayment of TELUS Corporation credit facility amounts outstanding, and for other general corporate purposes. TELUS' credit ratings reflect its position as a national wireline and wireless network provider, its diverse and national customer base, high quality network and diverse operating platform that includes TELUS Digital, TELUS Health, and TELUS Agriculture and Consumer Goods. The credit ratings also acknowledge the intensely competitive Canadian telecommunications landscape, the secular decline in legacy services, the high capital intensity of the industry and the risks associated with regulatory changes. Notes: All figures are in Canadian dollars unless otherwise noted. TEXAS OILWELL: Unsecureds to Get Share of Income for 60 Months -------------------------------------------------------------- Texas Oilwell Partners, LLC, filed with the U.S. Bankruptcy Court for the Southern District of Texas a Chapter 11 Plan of Reorganization dated May 2, 2025. Founded in 2017, the Debtor is a proprietary tool company specializing in new advanced technology in the extended reach, fishing and gas separation in the coiled tubing / workover rig applications. The Debtor operates its business from its office location located at 21621 Rhodes Rd., Spring, TX 77388. The Debtor employs four individuals, including the Debtor's owner, Jason Swinford. In summary, the Plan provides for the Debtor to restructure its debts by reducing its monthly payments to the amount of the Debtor's Disposable Income. The Debtor believes that the Plan will ensure Holders of Allowed Claims will receive greater distributions under the Plan than they would if the Debtor's Chapter 11 Case was converted to Chapter 7 and the Debtor's Assets liquidated by a Chapter 7 Trustee. Class 6 consists of Allowed Unsecured Claims. In the event the Plan is a consensual plan pursuant to Sections 1191(a) and 1129(a), the Debtor shall make sixty (consecutive monthly payments commencing thirty days after the Effective Date in the amount of $1,447.00 (the "Monthly Payment"), which amount equals the Debtor's Disposable Income identified on the Debtor's Projections. The Holders of Allowed Unsecured Claims shall receive their pro rata share of the Monthly Payment. This Class is impaired. In the event the Plan is a nonconsensual plan under Section 1191(b), the Debtor shall make sixty consecutive monthly payments commencing thirty days after the Effective Date in the amount of the Monthly Payment, which amount equals the Debtor's Disposable Income identified on the Debtor's Projections. The Holders of Allowed Unsecured Claims shall receive their pro rata share of the Monthly Payment. Class 7 consists of Current Owner. The Equity Interest of the Debtor shall remain vested with Jason Swinford. The Class 7 Claimant is deemed to have accepted the Plan and is not entitled to vote. From and after the Effective Date, the Debtor will continue to exist as a Reorganized Debtor. By reducing the Debtor's monthly obligations to creditors to the Reorganized Debtor's Disposable Income, the Reorganized Debtor will have sufficient cash to maintain operations and will allow the Reorganized Debtor to successfully operate following the Effective Date of the Plan. During the period from the Confirmation Date through and until the Effective Date, the Debtor shall continue to operate its business as a debtor-in-possession, subject to the oversight of the Bankruptcy Court as provided in the Bankruptcy Code, the Bankruptcy Rules, and all orders of the Bankruptcy Court that are then in full force and effect. In addition, the Debtor may take all actions as may be necessary or appropriate to implement the terms and conditions of the Plan. Upon Confirmation of the Plan, all actions required of the Debtor to effectuate the Plan shall be deemed authorized and approved in all respects. A full-text copy of the Plan of Reorganization dated May 2, 2025 is available at https://urlcurt.com/u?l=r9TJJ4 from PacerMonitor.com at no charge. About Texas Oilwell Partners Established in 2017, Texas Oilwell Partners, LLC is a privately-held company that specializes in cutting-edge technology for extended reach, fishing, and gas separation within coiled tubing and workover rig applications. Texas Oilwell Partners filed Chapter 11 petition (Bankr. S.D. Texas Case No. 25-30750) on February 7, 2025, listing up to $50,000 in assets and between $1 million and $10 million in liabilities. The petition was signed by Jason Swinford as member. Judge Eduardo V. Rodriguez oversees the case. The Debtor is represented by: Brandon John Tittle, Esq. Tittle Law Group, PLLC 1125 Legacy Dr., Ste. 230 Frisco, TX 75034 Tel: 972-213-2316 Email: btittle@tittlelawgroup.com THUNDER INTERNATIONAL: Case Summary & 20 Top Unsecured Creditors ---------------------------------------------------------------- Three affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Thunder International Group Inc. (Lead Case) 25-15229 a/k/a Thunder Express 19485 E Walnut Dr N City of Industry, CA 91789 Thunder International Group, Inc. 25-15228 a/k/a Thunder Express 99 Caven Point Road Jersey City, NJ 07305 Thunder International Group Inc. 25-15236 a/k/a Thunder Express 14125 NE Airport Way Portland, OR 97230 Business Description: Thunder International Group is a fifth-party logistics (5PL) provider specializing in omni-channel logistics solutions for commerce and e-commerce sellers. The Company operates nine warehouses across six U.S. states, offering services including nationwide fulfillment, drop shipping, air and ocean freight, global shipping, industrial inspection and maintenance, bonded zones, reverse logistics, and cross- border e-commerce branding. Chapter 11 Petition Date: May 15, 2025 Court: United States Bankruptcy Court District of New Jersey Judge: Hon. John K Sherwood Debtors' Bankruptcy Counsel: James C. Vandermark, Esq. Jeremiah J. Vandermark, Esq. WHITE AND WILLIAMS LLP 810 Seventh Ave, Suite 500 New York, NY 10019 Tel: (212) 244-9500 E-mail: vandermarkj@whiteandwilliams.com vandermarkjj@whiteandwilliams.com Lead Debtor's Estimated Assets: $1 million to $10 million Lead Debtor's Estimated Liabilities: $1 million to $10 million Mingming Wang, serving as secretary, signed the petitions. Full-text copies of the petitions are available for free on PacerMonitor at: https://www.pacermonitor.com/view/WBFN5PQ/Thunder_International_Group_Inc__njbke-25-15229__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/M3C2RSI/Thunder_International_Group_Inc__njbke-25-15228__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/VOZHCZI/Thunder_International_Group_Inc__njbke-25-15236__0001.0.pdf?mcid=tGE4TAMA A copy of the Lead Debtor's 20 Largest Unsecured Creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/WPZJGXI/Thunder_International_Group_Inc__njbke-25-15229__0001.1.pdf?mcid=tGE4TAMA TOWN LOUNGE: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Town Lounge Centennial LLC Born and Raised Centennial (fictitious firm name) 6470 Kevin Way Suite 100 Las Vegas, Nevada 89149 Business Description: Town Lounge Centennial LLC operates the Born and Raised Centennial bar and grill located in Las Vegas, Nevada. The establishment offers American cuisine and a full-service bar, featuring dishes like sliders, burgers, and Tex-Mex specialties. Chapter 11 Petition Date: May 14, 2025 Court: United States Bankruptcy Court District of Nevada Case No.: 25-12758 Debtor's Counsel: Mitchell Stipp, Esq. LAW OFFICE OF MITCHELL STIPP, P.C. 1180 N. Town Center Drive, Suite 100 Las Vegas, NV 89144 Tel: 702-602-1242 E-mail: mstipp@stipplaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million Scottie Godino, Jr. signed the petition as managing member. The petition was filed without the Debtor's list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/KALWPZI/Town_Lounge_Centennial_LLC__nvbke-25-12758__0001.0.pdf?mcid=tGE4TAMA TR WELDING: Gets Final OK to Use Cash Collateral ------------------------------------------------ TR Welding, Inc. received final approval from the U.S. Bankruptcy Court for the District of Idaho to use cash collateral. The final order authorized the company to use cash collateral to pay the expenses set forth in its budget until Dec. 31, 2026, the confirmation of its Chapter 11 plan, or the dismissal or conversion of its bankruptcy case, whichever comes first. Using funds on charitable donations is not allowed. As protection, D.L. Evans Bank was granted a replacement lien on cash collateral generated after the petition date to the same extent, validity and priority as its pre-bankruptcy lien. D.L. Evans Bank, a secured creditor, holds multiple loans with a total debt of approximately $359,000 and claims a blanket lien on the company's assets. The bank's collateral includes $10,000 in cash, $243,215 in receivables, $135,146 in inventory, and $235,230 in equipment, totaling over $488,000. About TR Welding Inc. TR Welding, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Idaho Case No. 25-40224-NGH) on April 11, 2025. In the petition signed by Todd Robinson, owner, the Debtor disclosed up to $1 million in both assets and liabilities. Judge Noah G. Hillen oversees the case. Patrick J. Geile, Esq., at Foley Freeman, PLLC, represents the Debtor as legal counsel. D.L. Evans Bank, as secured creditor, is represented by: Holly Roark, Esq. Roark Law Offices 950 W. Bannock St. Ste. 1100 Boise, ID 83702 Phone: (208) 536-3638 Fax: (310) 553-2601 holly@roarklawboise.com TZADIK SIOUX FALLS III: Case Summary & 19 Unsecured Creditors ------------------------------------------------------------- Debtor: Tzadik Sioux Falls Portfolio III, LLC 2450 Hollywood Blvd Ste 503 Hollywood, FL 33020 Business Description: Tzadik Sioux Falls Portfolio III, LLC owns and manages multifamily residential properties. The Company operates under Tzadik Management, which focuses on apartment buildings, primarily in Sioux Falls and Rapid City, South Dakota. Chapter 11 Petition Date: May 14, 2025 Court: United States Bankruptcy Court Southern District of Florida Case No.: 25-15387 Judge: Hon. Scott M. Grossman Debtor's Counsel: Brett Liberman, Esq. EDELBOIM LIEBERMAN PLLC 2875 NE 191st Street, Penthouse One Suite 905 Miami, FL 33180 Tel: 309-768-9909 Email: brett@elrolaw.com Total Assets: $28,200,000 Total Liabilities: $13,794,805 The petition was signed by Adam Hendry as authorized representative of the Debtor. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/BDWULAQ/Tzadik_Sioux_Falls_Portfolio_III__flsbke-25-15387__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 19 Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Aire Master of the Plains Trade Debt $7,017 615 S. Lyons Sioux Falls, SD 57106 2. Breit & Boomsma, P.C. Trade Debt $44,158 606 E. Tan Tara Circle Sioux Falls, SD 57108 3. Brooks Construction Trade Debt $5,810 Services, Inc 27081 Sundowner Ave Sioux Falls, SD 57106 4. City Glass & Glazing, Inc. Trade Debt $3,920 5003 W. 12th Street Sioux Falls, SD 57106 5. Conservice LLC Trade Debt $17,491 P.O. Box 1500 Hemet, CA 92546 6. Cressman Sanitation - UM Trade Debt $2,966 101 W Mickleson Rd Hartford, SD 57033 7. Elmers Auto Glass, Inc Trade Debt $4,092 dba Glass Doctor of Sioux Falls 2420 N. Bakker Lndg Tea, SD 57064 8. Express Services, Inc. Trade Debt $3,585 434 S. Kiwanis Ave. | Suite 2 | 57104 9. Home Depot U.S.A., Trade Debt $5,697 Inc d/b/a The Home De 2455 Paces Ferry Road Atlanta, GA 30339 10. Johnstone Supply Trade Debt $2,139 335 N Weber Ave Sioux Falls, SD 57103 11. Merchants Bank $13,650,000 12. MidAmerican Energy Trade Debt $13,593 Company - UM PO Box 8020 Davenport, IA 52808 13. Nybergs Ace Hardware, Inc. Trade Debt $1,557 330 W. 41st Street Sioux Falls, SD 57105 14. Plunkett's Pest Trade Debt $3,994 Control, Inc. 40 52nd Way Northeast Minneapolis, MN 55421 15. Pro Tree Service, Inc. Trade Debt $4,579 PO Box 90346 Sioux Falls, SD 57109 16. Sioux Falls Utilities - UM Business $14,705 224 West 9th Street Operations Sioux Falls, SD 57117 17. Snow Pro Trade Debt $1,763 2716 S Lincoln Ave Sioux Falls, SD 57105 18. Xcel Energy - UM $3,878 PO Box 9477 Minneapolis, MN 55484 19. Xtreme Cleaning Services Trade Debt $3,851 311 E Norton Ave Salem, SD 57058 URBAN ONE: S&P Downgrades ICR to 'SD' on Subpar Debt Repurchase --------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on Urban One Inc. to 'SD' (selective default) from 'CCC+'. S&P also lowered the issue-level rating on the company's senior secured notes to 'D'. S&P said, "We view the note repurchases as distressed and tantamount to a default. Urban One recently announced that, year to date, it has repurchased $88.6 million of its 7.375% senior secured notes due in 2028 (more than 10% of the original note issuance amount of $825 million). While the notes were repurchased in the open market, we still view the buyback as a restructuring because a significant portion of the debt issue was repurchased. We view the note repurchases as distressed and tantamount to a default given lenders received less than originally promised at an average price of 53.9%, a steep discount to par. "Absent a transaction, we believe there was a realistic possibility of a conventional default over the next couple of years. Urban One ended 2024 with S&P Global Ratings-adjusted gross leverage of about 6x, and we expect EBITDA will erode over the next few years given both cyclical and secular challenges facing broadcast radio and cable television, which we believe will make it difficult to materially improve credit metrics ahead of the company's note maturity in February 2028. "We plan to raise our ratings back to 'CCC+' in the coming days. We believe Urban One remains dependent on favorable business, financial, and economic conditions to meet its financial obligations, despite the recent reduction in debt. We expect broadcast radio revenue and cable TV revenue will continue to decline given secular challenges that will be exacerbated by weakening economic conditions. The majority of the company's business comes from national advertising, which we expect will continue to underperform local advertising because brand advertising is more expendable than direct response advertising. The company's digital businesses have also been facing headwinds given client attrition, the renegotiation of certain contracts, and higher traffic acquisition costs. We believe it will become increasingly difficult for debt repayment to fully offset EBITDA declines. "In addition, we believe the company will likely seek additional opportunities to buy back debt at a discount, which we would likely view as distressed and tantamount to a default (depending on the buyback amount and discount to par) given its challenged operating and financial performance and uncertainty around future cash flows." VALPARAISO UNIVERSITY: S&P Rates 2025A-B Revenue Bonds 'BB+' ------------------------------------------------------------ S&P Global Ratings assigned its 'BB+' long-term rating to the City of Valparaiso, Ind.'s series 2025A and 2025B revenue bonds, issued for Valparaiso University (Valpo, or the university). The outlook is stable. S&P said, "We analyzed the university's environmental, social, and governance factors related to its market position and financial performance. We believe that Valpo is subject to demographic pressure, which we view as a social capital risk. We view environmental and governance risks as neutral in our credit rating analysis. "The stable outlook reflects our view that the university's enrollment and demand profile will remain pressured within the one-year outlook period as management implements new enrollment strategies. While significant operational deficits are expected in the near term, the university has implemented a plan to improve operations in the medium term. We expect that balance sheet resources will be maintained at or near current levels. "We could consider a negative rating action if enrollment or net tuition revenue continues to decrease materially, leading to further operational deficits beyond management's forecast. We would also view a sustained weakening in the demand profile, deteriorated financial resources metrics or liquidity, or continued elevated endowment draws negatively. "We could consider a positive rating action if enrollment increases, demand metrics improve, operations improve on a sustained basis without significant supplementary endowment draws, and balance-sheet metrics are maintained." VAN DYKE PUBLIC SCHOOLS, MI: S&P Lowers GO Debt Rating to 'BB+' --------------------------------------------------------------- S&P Global Ratings lowered its underlying rating to 'BB+' from 'BBB+' on Van Dyke Public Schools, Mich.'s existing general obligation (GO) bonds. At the same time, S&P removed the rating from CreditWatch, where it had been placed with negative implications on March 6, 2025. The outlook is stable. At the same time, S&P Global Ratings assigned its 'AA' long-term rating (based on credit enhancement) and 'BB+' underlying rating to the district's $26.025 million unlimited-tax GO school building and site bonds, series I. The downgrade reflects the district's significant structural imbalance, reliance on short-term deficit borrowing to finance operations, negative reserve position that is expected to weaken through at least fiscal 2026, and S&P's view of poor management practices. It additionally reflects the uncertainty as to both the size and timing of management's proposed budget cuts and the risks regarding the district's ability to continue to address its structural imbalance and access necessary short-term liquidity. S&P said, "We view Van Dyke Public Schools' social risks as elevated given the demographic challenges and longer-term trend of negative enrollment trends, despite a recent uptick, which exacerbate risks of structural imbalance from declining state aid. We view the district's governance risks as elevated considering the lack of budgetary oversight and proactive measures to prevent the emerged imbalance. We view environmental risk factors as neutral within our analysis. "The stable outlook reflects our understanding that the district is taking necessary steps, including significant expenditure reductions, to return operations to balance. Despite the pressured financial position, we believe it will retain sufficient access to external liquidity. Finally, the state's current involvement with the district provides additional financial monitoring and stability. "We could lower the rating should the district face difficulty accessing short-term liquidity to meet operating needs or the district fail to meet the targets outlined in the DEP, extending its path toward curing the imbalance. Finally, we could lower the rating should the expenditure reductions--considering its size--impair school operations, leading to further budgetary stress. "We could raise the rating should the district demonstrate a track record of meeting the DEP targets and reduce its reliance on short-term deficit borrowing without additional state intervention." VEREGY INTERMEDIATE: S&P Withdraws 'B-' Issuer Credit Rating ------------------------------------------------------------ S&P Global Ratings withdrew its 'B-' issuer credit rating on Veregy Intermediate Inc., following the company's private refinancing, which repaid its outstanding debt facilities. S&P said, "At the same time, we discontinued our 'B-' issue-level rating and '3' recovery rating on Veregy's first-lien debt because it repaid all of its rated debt facilities. "At the time of withdrawal, our rating on Veregy had a positive outlook due to consistent EBITDA growth and deleveraging. The company's performance was trending toward our ratings upgrade thresholds of leverage sustained under 5x and FOCF to debt above 5%." VESTIS CORP: Moody's Lowers CFR to B2 & Alters Outlook to Stable ---------------------------------------------------------------- Moody's Ratings downgraded Vestis Corporation's ("Vestis") corporate family rating to B2 from Ba3, and its probability of default rating to B2-PD from Ba3-PD. At the same time, Moody's downgraded the company's senior secured bank credit facilities to B2 from Ba3. The outlook was changed to stable from negative. Vestis is a provider of uniform rental and workplace supplies in the US and Canada. The ratings downgrades are attributed to Moody's materially lower revenue and earnings expectations for Vestis in 2025 and 2026. The company is facing net customer losses and pricing pressure largely from service quality issues and competitive pressure since its spin-off in 2023. There is increasing uncertainty in Vestis' long-term revenue growth and profitability until the company remediates the competitive issues. Vestis' current financial net leverage target of under 3x is higher than the 1.5x – 2.5x range and the company has shifted to providing quarterly earnings guidance rather than annual guidance. Moody's expects that revenue will decline by around 2% during the next 12 months and debt/EBITDA will remain elevated at around 6x through the fiscal year ended September 2026. Moody's expects profitability to deteriorate in fiscal 2025 due to negative operating leverage, as declining revenues are likely to compress the EBITA margin to around 5% versus Moody's prior expectations of 8%. The stable outlook indicates Moody's views that revenue declines should ease over the next 12 months from new accounts and that the company's good liquidity provides some flexibility to execute its strategies to improve earnings. ESG considerations, specifically governance associated with management credibility and track record and financial strategy and risk management, were key drivers in the rating actions given the company's inconsistency with meeting financial guidance targets, recent high rate of turnover in senior management, including the CEO and CFO, and the change in its net financial leverage target and earnings guidance. RATINGS RATIONALE Vestis' B2 CFR reflects the company's high financial leverage with debt/EBITDA of 6x for the 12 months ended March 28, 2025 that Moody's expects will remain around 6x during the next 12 months. The company is facing significant EBITDA declines due to service quality issues and net customer losses, which have led to a loss of sales leverage, a decrease in net volumes, and moderated pricing strategies that include customer credits. Moody's believes that the off-cycle pricing increases initiated in 2023 and 2024, coupled with high employee turnover during the spin-off, contributed to higher attrition rates by creating gaps in service quality. The company is working to mitigate net volume losses with service quality improvements to mitigate customer attrition, but it is uncertain how long it could take to return to sustained revenue and earnings growth. Moody's uncertainty in the company's ability to balance pricing increases without increasing attrition is a product of its short operating history as a stand-alone company and the highly competitive nature of the uniform and workplace supply industry in North America. All financial metrics cited reflect Moody's standard adjustments. While Moody's anticipates that Vestis will uphold balanced financial policies regarding financial leverage, the company has a public leverage target of under 3x. The company has indicated that it will restrict its quarterly cash dividend and share purchases through at least October 2026. Moody's expects that the company will similarly limit acquisitions over this period. Vestis' liquidity is good as reflected in the SGL-2 Speculative Grade Liquidity (SGL) rating. Cash was $28.8 million as of March 28, 2025. Moody's expects annual free cash flow of around $65 million over the next 12 months including the suspension of the $18 million annual cash dividend. The company has $264.3 million of availability on a $300 million revolving credit facility expiring in 2028. Moody's do not anticipate the revolver will be needed over the next 12 to 18 months given the company's growth strategy does not include acquisitions or significant one-time capital expenditures. The company has no mandatory debt quarterly amortization payments remaining following voluntary pre-payments. The company entered into a $250 million accounts receivable securitization facility expiring in 2027 that had $222 million of receivables sold to as of March 28, 2025. The secured credit facility agreement includes two financial covenants under the term loan A and revolver, including a maximum net leverage (as defined in the agreement) of 5.25x (with step-downs to 4.5x) and a minimum interest coverage of 2.0x. In May 2025, the company amended the credit agreement to extend the net leverage target step down to begin in March 2026 from March 2025. Moody's expects Vestis will maintain a comfortable cushion for both covenants. The B2 rating on the senior secured credit facilities is the same as the B2 CFR given the single class of first lien secured debt and reflects the overall loss given default assumption of 50%, driving the B2-PD PDR. The credit facility has a first priority security interest in substantially all assets of the borrower and domestic subsidiaries that guarantee the facility. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The stable outlook reflects Moody's expectations that Vestis will experience a modest contraction in its revenue before stabilizing in 2026. Moody's also anticipates in the stable outlook that the company will maintain debt to EBITDA below 6.5x through 2026, the incoming CEO will develop a strategy to stabilize the business and that good liquidity provides flexibility to execute the company's growth strategies. The ratings could be upgraded if Vestis demonstrates sustained revenue and earnings growth such that Moody's expects debt to EBITDA to be sustained below 5.0x, the EBITA margin to be sustained around 6%, and free cash flow to debt to exceed 5%. The ratings could be downgraded if the company's revenue and profitability continue to decline, debt to EBITDA is sustained above 6.5x, liquidity deteriorates including reliance on revolver borrowings, or the company adopts more aggressive financial policies including additional leveraging acquisitions, dividends or share repurchases prior to debt reduction. Vestis Corporation ("Vestis") is a large provider of uniform rental and workplace supplies in the US and Canada. The company provides uniforms, mats, towels, linens, restroom products, first-aid supplies, and cleaning services. The company also provides direct sales of branded promotional products to business customers. Moody's expects the company to generate $2.7 billion in revenue for fiscal year 2025 (ends September 30). The principal methodology used in these ratings was Business and Consumer Services published in November 2021. WATCHTOWER FIREARMS: Carrington Represents Equity Security Holders ------------------------------------------------------------------ The law firm of Carrington, Coleman, Sloman & Blumenthal, L.L.P. filed a verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure to disclose that in the Chapter 11 case of Watchtower Firearms LLC, the firm represents: 1. The TLV 2021 Lifetime Revocable Trust; 2. Field-Lahiri Properties, LP; 3. Catina Smart; and 4. TIJAKR Ventures, LLC The TLV 2021 Lifetime Revocable Trust is an equity security holder as a 1.2% member in the Debtor, with an address of 2 Hammock Dunes Place, Spring, Texas 77389. Field-Lahiri Properties, LP is an equity security holder as a 1.2% member in the Debtor, with an address of 11 Maple Loft Place, The Woodlands, Texas 77381. Catina Smart is an equity security holder as a 1.2% member in the Debtor, with an address of 4419 Katie's Creek Drive, Mont Belvieu, Texas 77523. TIJAKR Ventures, LLC is an equity security holder as a 1.2% member in the Debtor, with an address of 142 Gateway Place Park, The Woodlands, Texas 77380. Counsel was employed effective April 3, 2025. After due inquiry, Counsel has no disclosable economic interest itself in relation to the Debtor. The law firm can be reached at: CARRINGTON, COLEMAN, SLOMAN & BLUMENTHAL, L.L.P. Mark A. Castillo, Esq. Robert C. Rowe, Esq. Victor G. Solyanik, Esq. 901 Main St., Suite 5500 Dallas, TX 75202 Telephone: 214-855-3000 Facsimile: 214-580-2641 Email: markcastillo@ccsb.com Email: rrowe@ccsb.com Email: vsolyanik@ccsb.com About Watchtower Firearms LLC Watchtower Firearms LLC is a veteran-owned company offering a diverse range of firearms, including custom rifles, special edition rifles, and handguns. The Company serves military, law enforcement, hunting, and personal use markets. In addition to firearms, it provides suppressors, components, and specialized gear tailored to meet the needs of its customers. Watchtower Firearms LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40684) on February 27, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Joseph Acosta, Esq. at CONDON TOBIN represents the Debtor as counsel. WAVE ASIAN: L. Todd Budgen Named Subchapter V Trustee ----------------------------------------------------- The U.S. Trustee for Region 21 appointed L. Todd Budgen, Esq., a practicing attorney in Longwood, Fla., as Subchapter V trustee for Wave Asian Bistro, LLC. Mr. Budgen 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. Budgen declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: L. Todd Budgen, Esq. P.O. Box 520546 Longwood, FL 32752 Tel: (407) 232-9118 Email: Todd@C11Trustee.com About Wave Asian Bistro Wave Asian Bistro, LLC filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 25-02112) on April 11, 2025, listing up to $50,000 in assets and between $500,001 and $1 million in liabilities. Judge Tiffany P. Geyer oversees the case. The Debtor is represented by: Jeffrey Ainsworth, Esq. Bransonlaw, PLLC Tel: 407-894-6834 Email: jeff@bransonlaw.com WAVE SUSHI: L. Todd Budgen Named Subchapter V Trustee ----------------------------------------------------- The U.S. Trustee for Region 21 appointed L. Todd Budgen, Esq., a practicing attorney in Longwood, Fla., as Subchapter V trustee for Wave Sushi Maitland, LLC. Mr. Budgen 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. Budgen declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: L. Todd Budgen, Esq. P.O. Box 520546 Longwood, FL 32752 Tel: (407) 232-9118 Email: Todd@C11Trustee.com About Wave Sushi Maitland Wave Sushi Maitland, LLC filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 25-02113) on April 11, 2025, listing up to $50,000 in assets and between $500,001 and $1 million in liabilities. Judge Tiffany P. Geyer oversees the case. The Debtor is represented by: Jeffrey Ainsworth, Esq. Bransonlaw, PLLC Tel: 407-894-6834 Email: jeff@bransonlaw.com WILLIAM CARTER: Moody's Lowers CFR to 'Ba2', Outlook Stable ----------------------------------------------------------- Moody's Ratings downgraded The William Carter Company's ("Carter's") corporate family rating to Ba2 from Ba1 and its probability of default rating to Ba2-PD from Ba1-PD. Concurrently, Moody's downgraded its senior unsecured notes rating to Ba3 from Ba2. The speculative grade liquidity rating remains unchanged at SGL-1. The ratings outlook is stable. The downgrades reflect an expected decline in Carter's operating income and pressure on free cash flow generation as it navigates a difficult consumer environment, works to continue to improve its value offering and market position and faces 10% reciprocal tariffs currently in place on its largest sourcing countries. As consumers remain focused on value, Moody's believes it will be challenging for Carter to take price increases to offset higher tariff costs. In addition, Carter's faces declining birth rates. Although Carter's has low funded debt and balanced financial strategies, Moody's expects EBITA/Interest to weaken to between 2.5x-3.0x over the next 12-18 months. RATINGS RATIONALE Carter's Ba2 CFR reflects its leading market position and the replenishment nature of Carter's competitively priced baby and toddler offering that poses limited fashion risk. The company continues to contend with a value oriented customer as higher costs from tariffs will need to be mitigated by price increases or absorption by its vendors. Although funded debt levels are expected to remain low, interest coverage and free cash flow continues to weaken as profitability declines. Debt/EBITDA is projected in a range of 2.7x to 3.5x, assuming reciprocal tariffs remain at 10% over the next 12-18 months. Its recent reinvestments in pricing are now met with higher tariff costs which will make it more difficult to provide consumers lower prices. Its largest sourcing exposures are to Vietnam, Bangladesh, Cambodia and India with limited sourcing in China. The Carter's brand (including its exclusive brands) continues to have a leading market position with about a 10% market share in baby and young children's market (age zero to 10 years) as of December 2024. The company has historically maintained moderate leverage and balanced financial strategies, including a sizable dividend of approximately $116 million annually which provides flexibility to maintaining its very good liquidity profile. Carter's has a narrow product focus primarily in infant and toddler apparel, customer concentration, geographic focus mainly in the US. The stable outlook reflects the expectation that Carter's will continue work to maintain or improve its market position while remaining free cash flow positive. Operating margins are expected to support credit metrics reflective of the Ba2 rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade would require sustained market share and solid operating performance in key segments. Quantitatively, an upgrade would require lease-adjusted debt/EBITDA to be maintained below 3.75 times, EBITA/interest expense above 4.0 times and double digit EBITA margins. The ratings could also be downgraded if financial policies become more aggressive or liquidity erodes. Quantitatively, the ratings could be downgraded if debt/EBITDA is sustained above 4.5 times or EBITA/Interest below 3.0x. The principal methodology used in these ratings was Retail and Apparel published in November 2023. Headquartered in Atlanta, Georgia, The William Carter Company ("Carter's") owns the "Carter's," "OshKosh B'gosh," "Skip Hop" and "Little Planet" brands, which are distributed through company-operated stores, e-commerce operations, as well as national chains, department stores, specialty retailers and e-commerce platforms domestically and internationally. Revenue for the LTM period ended March 30, 2025 was approximately $2.8 billion. The company's parent entity Carters, Inc. is publicly traded under the stock symbol "CRI". WINTHROP STREET: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Winthrop Street - Morra Solar, LLC 297 Winthrop St. Rehoboth, MA 02769 Chapter 11 Petition Date: May 18, 2025 Court: United States Bankruptcy Court District of Massachusetts Case No.: 25-11014 Judge: Hon. Christopher J. Panos Debtor's Counsel: D. Ethan Jeffery, Esq. MURPHY & KING, PROFESSIONAL CORPORATION 28 State Street, Suite 3101 Boston, MA 02109 Tel: (617) 423-0400 Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Gary M. Kassem as manager. 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/BGDPSKQ/Winthrop_Street_-_Morra_Solar__mabke-25-11014__0001.0.pdf?mcid=tGE4TAMA WT REPAIR: Case Summary & 10 Unsecured Creditors ------------------------------------------------ Debtor: WT Repair, LLC 3201 N Road Beloit, KS 67420 Business Description: WT Repair, LLC is an independently owned used equipment dealer and service shop based in Beloit, Kansas. The Company specializes in buying, selling, and servicing farm machinery, including tractors, harvesters, and used trucks. WT Repair is also a full- line dealer for Bush Hog, Farm King, MacDon, Geringhoff, Quicke, Kelly Ryan, and HyGrade. Chapter 11 Petition Date: May 15, 2025 Court: United States Bankruptcy Court District of Kansas Case No.: 25-20636 Judge: Hon. Dale L. Somers Debtor's Counsel: Colin Gotham, Esq. EVANS & MULLINIX, P.A. 7225 Renner Road, Suite 200 Shawnee, KS 66217 Tel: (913) 962-8700 Fax: (913) 962-8701 E-mail: cgotham@emlawkc.com Total Assets: $3,084,713 Total Liabilities: $3,196,953 Wesley Thompson, serving as managing member, signed the petition. 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/UOFRVCA/WT_Repair_LLC__ksbke-25-20636__0001.0.pdf?mcid=tGE4TAMA ZOLLEGE PBC: Saratoga Marks $1.5 Million 1L Loan at 26% Off ----------------------------------------------------------- Saratoga Investment Corp. has marked its $1,461,250 loan extended to Zollege PBC to market at $1,085,855 or 74% of the outstanding amount, according to Saratoga's Form 10-K for the fiscal year ended February 28, 2025, filed with the U.S. Securities and Exchange Commission. Saratoga is a participant in a First Lien Term Loan to Zollege PBC. The loan accrues interest at a rate of 4.84% payment in kind per annum. The loan matures on August 9, 2027. Saratoga is a non-diversified closed end management investment company incorporated in Maryland that has elected to be treated and is regulated as a business development company under the Investment Company Act of 1940, as amended. The Company commenced operations on March 23, 2007 as GSC Investment Corp. and completed the initial public offering on March 28, 2007. The Company has elected, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Saratoga is led by Christian L. Oberbeck, Founder, Chief Executive Officer; and Henri J. Steenkamp, Chief Financial Officer and Chief Compliance Officer. The Fund can be reach through: Christian L. Oberbeck Saratoga Investment Corp 535 Madison Avenue New York, NY 10022 Tel. No.: (212) 906-7800 About Zollege PBC Zollege PBC operates as a tech-enabled apprenticeship and education company that offers vocational training programs such as dental assistant, medical assistant, nurse, software developer, and cybersecurity specialist programs. ********* 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. 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