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250521.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, May 21, 2025, Vol. 29, No. 140 Headlines 1 SANDPIPER: Seeks Chapter 11 Bankruptcy in North Carolina 120-MP VICTORIA: Gets Interim OK to Use Cash Collateral 154 HIGHLAND: Seeks Chapter 11 Bankruptcy in New York 17FARMHADEN LLC: Voluntary Chapter 11 Case Summary 2315 LOMA VISTA: Section 341(a) Meeting of Creditors on June 3 23ANDME HOLDING: Sells Genetic Testing Division to Regeneron 250 WYNAH LANE: Seeks Chapter 11 Bankruptcy in Illinois 4069 – 4089 MINNESOTA: H. Jason Gold OK'd as Chapter 11 Trustee 520 COLUMBUS: Seeks Chapter 11 Bankruptcy in New York A.T & M.D TRUCKING: Seeks Chapter 11 Bankruptcy in Ohio A.Z.N. REALTY: Seeks Chapter 11 Bankruptcy in New York ACCRO BRANDS: Fitch Lowers IDR to 'BB-', Outlook Negative ACTION FACE: Files Amended Plan; Confirmation Hearing June 18 ADVANCE COMPANIES: Case Summary & 20 Largest Unsecured Creditors AEC PARENT: S&P Lowers ICR to 'CCC+' on Sustained Demand Pressure AFH AIR PROS: Seeks to Extend Plan Exclusivity to Oct. 13 AKOUSTIS TECHNOLOGIES: Gets Extension to Access Cash Collateral ALERA GROUP: Moody's Assigns 'B3' CFR, Outlook Stable AMERICAN 24: Seeks Chapter 11 Bankruptcy in Arizona AMERICAN WARRIOR: To Sell Finney County Property to Gardens City ANCIOM LLC: Gets Interim OK to Use Cash Collateral ARCHROCK INC: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable ART SUPPLY: SSG Served as Investment Banker in Asset Sale AZZ INC: Fitch Alters Outlook on 'BB' LongTerm IDR to Positive BALKAN EXPRESS: Seeks to Sell Hyundai Vehicles BAMBI HEALTH: Updates Restructuring Plan Disclosures BEBCO ENVIRONMENTAL: Unsecureds Will Get 1% of Claims in Plan BEELINE HOLDINGS: CAO Tiffany Milton Holds 491 Direct Shares BEN FACKLER: Seeks Chapter 11 Bankruptcy in Oregon BEST CHEER: Case Summary & 20 Largest Unsecured Creditors BLACKFORD ATM: Founder Faces Fraud Allegations in Investor Lawsuit BLINK CHARGING: Considers Restructuring, to Cut Global Workforce BUFFALO HOUSE: Mark Schlant Named Subchapter V Trustee BUTLER GROUP: Seeks Chapter 11 Bankruptcy in Columbia CAN’T COOK: Hearing on Bid to Use Cash Collateral Set for May 28 CBRM REALTY: Case Summary & 30 Largest Unsecured Creditors CD&R SMOKEY: S&P Lowers ICR to 'B-' on Operating Underperformance CHAR GRILL: Gets Extension to Access Cash Collateral CHICKEN SHACK: Gets OK to Use Cash Collateral CLAROS MORTGAGE: CMTG WF Cuts Facility, Extends Maturity to 2026 CM CUSTOM: Beverly Brister Named Subchapter V Trustee COLONIAL GARDENS: Claims to be Paid From Continued Operations COMMUNITY HEALTH: Morgan Stanley Cuts Stake Below 5% CONN'S INC: Seeks to Extend Plan Exclusivity to June 18 COREWEAVE INC: S&P Assigns 'B+' ICR, Outlook Stable COTY INC: S&P Affirms 'BB+' Issuer Credit Rating, Outlook Stable CROWN SUBSEA: S&P Affirms 'B+' Rating on Senior Secured Debt CRYPTO MARKET: Daniel Etlinger Named Subchapter V Trustee CUCHINA ANTICA: Plan Exclusivity Period Extended to June 11 DB BONNEVILLE: Seeks Chapter 11 Bankruptcy in Iowa DEVILS RIVER DISTILLERY: Subchapter V Trustee Named DEVILS RIVER HOLDINGS: Michael O'Connor Named Subchapter V Trustee DOCUDATA SOLUTIONS: Unsecureds Will Get 40.6% of Claims in Plan EKSO BIONICS: Reports Net Loss of $2.9 Million for Q1 FY25 ELEVATE PFS: Moody's Affirms Caa1 CFR & Alters Outlook to Positive ENVELOPE MART: Case Summary & 20 Largest Unsecured Creditors ERIE KASH: Holly Miller Named Subchapter V Trustee EVANS INVESTMENT: Mark Sharf Named Subchapter V Trustee F.I.A. LLC: Seeks Chapter 11 Bankruptcy in Louisiana FIREFLY NEUROSCIENCE: Acquires Evoke Neuroscience for $6.5-Million FMC CORP: S&P Rates New Unsecured Subordinated Hybrid Notes 'BB' FOOT LOCKER: Moody's Puts 'Ba3' CFR on Review Direction Uncertain FTX TRADING: Ch. 11 Clawback Suit Baseless, Binance Says GENESIS GLOBAL: Sues Digital Currency for Alleged $1-Bil. Transfers GIUSEPPE AND THE LION: Seeks Subchapter V Bankruptcy in Florida GREENFIRE RESOURCES: Moody's Alters Outlook on 'B3' CFR to Negative HIGH WIRE: Sells Series G Convertible Preferred Shares to GHS HIGHLANDS GROUP: To Sell Somerset Property to Jed and Amy Karalfa HYPERSCALE DATA: Prelim Q1 Revenue Hits $25 Million ICAHN ENTERPRISES: Moody's Lowers CFR to 'B1', Outlook Stable J MCCLOUD REALTY: Holly Miller Named Subchapter V Trustee JAGUAR HEALTH: Investors Waive VRT Restriction for New Issuances JSP MANAGEMENT: Section 341(a) Meeting of Creditors on June 23 KEYSTONE PASSIONATE: Seeks Cash Collateral Access KIDDE-FENWAL: Connecticut, Other States Block $540MM Deal KIDZ TYME: Voluntary Chapter 11 Case Summary KRATON CORP: Moody's Withdraws 'B1' Corporate Family Rating LEE FRANCHISE: Court Extends Cash Collateral Access to June 21 LI-CYCLE HOLDINGS: Files Bankruptcy in U.S. and Canada LIGHT & WONDER: S&P Rates $800MM Senior Secured Term Loan A 'BB' LONERO ENGINEERING: Creditors to Get Proceeds From Liquidation LOYALTY VENTURES: Saratoga CLO Marks $2.9 Million Loan at 93% Off LUCENA DAIRY: Seeks to Sell Aguadilla Property LUCENA DAIRY: To Sell Hatillo Property to Steven M. Fenosik LYLES CAPITAL: Seeks Chapter 11 Bankruptcy in Arkansas M.I.S. COMMODITIES: Tarek Kiem Named Subchapter V Trustee MANHATTAN COUNTRY SCHOOL: Seeks Chapter 11 Bankruptcy in New York MCKNIGHTS ACADEMY: Todd Hennings Named Subchapter V Trustee METRO MATTRESS: Seeks to Extend Plan Exclusivity to July 1 MICHAELS COMPANIES: Saratoga CLO Marks $2.9 Million Loan at 19% Off MODIVCARE INC: CFO, CIO to Depart as Part of Biz Model Evolution MPH ACQUISITION: Saratoga CLO Marks $2.6 Million Loan at 16% Off NAOUI LLC: Lender Seeks to Prohibit Cash Collateral Access NETCAPITAL INC: Records $17.9M Impairment on Equity Investments NETCAPITAL INC: Signs $126K Convertible Notes With 1800 Diagonal NEXT LEVEL: Saratoga CLO Marks $2.3 Million Loan at 20% Off OCEAN FIVE: Carol Fox of GlassRatner Named Subchapter V Trustee PARAMOUNT GLOBAL: S&P Corrects Sub Debentures Rating to 'B+' PATHWAY PARTNERS: Saratoga CLO Marks $476,000 Loan at 19% Off PEOPLE POWERED: Seeks Chapter 11 Bankruptcy in New York PFH HOLDINGS: Seeks Chapter 11 Bankruptcy in Tennessee PG&E CORP: Fitch Affirms 'BB+' Rating, Outlook Remains Positive PHOENIX ROSE: Michael Abelow Named Subchapter V Trustee PHYSICIAN PARTNERS: Saratoga CLO Marks $2.9 Mil. Loan at 60% Off PIVOTAL ANALYTICS: Gets Interim OK to Use Cash Collateral PRESCART CORP: Seeks Chapter 11 Bankruptcy in North Carolina PROVIDENTIAL LENDING: Seeks Cash Collateral Access PUERTO RICO: Dechert LLP Updates List of PREPA Bondholders QBD PACKAGING: Dennis Perrey Named Subchapter V Trustee RACKSPACE TECHNOLOGY: Saratoga CLO Marks $2 Million Loan at 43% Off RAINBOW PRODUCTION: Seeks to Extend Plan Exclusivity to July 7 REE AUTOMOTIVE: Raises 'Going Concern' Warning as Shares Slide RENASCENCE INC: Section 341(a) Meeting of Creditors on June 25 RISE MANAGEMENT: Unsecureds to Get 13.61% over 84 Months RITE AID: Enters Sale Deals to Ensure Pharmacy Care Continuity RITE AID: Sells Pharmacy Assets of 1,000 Locations to Rivals ROYAL PAPER: Sofidel Secures Auction Victory for Bankrupt Rival SABRE CORP: S&P Affirms 'B-' Issuer Credit Rating, Outlook Stable SAKS GLOBAL: Majority Creditors Band Together Prior Debt Talks SALEM 46-48: To Sell Salem City Property to Kent 11 for $225K SITEL WORLDWIDE: Saratoga CLO Marks $1.9 Million Loan at 35% Off SKY RADIOLOGY: Jolene Wee Named Subchapter V Trustee SLATE RIVER: Involuntary Chapter 11 Case Summary SMALL FORTUNE: Gets Extension to Access Cash Collateral SOUL WELLNESS: Updates Restructuring Plan Disclosures STAR PUMP: Unsecured Claims Under $25K to Recover 10% in Plan TEKNATOOL USA: Gets Extension to Access Cash Collateral TEVA PHARMACEUTICALS: S&P Rates New $2BB Sr. Unsecured Notes 'BB' TEXAS WHEEL: Unsecureds Will Get 67.59% of Claims over 5 Years TOWN LOUNGE HENDERSON: Voluntary Chapter 11 Case Summary TRAVEL HUB: Cameron McCord Named Subchapter V Trustee TREE LANE: Plan Exclusivity Period Extended to October 23 UNIFIED SCIENCE: Case Summary & 20 Largest Unsecured Creditors VAN DER VALK: Andrew Layden Named Subchapter V Trustee VIVA LIBRE: Mark Sharf Named Subchapter V Trustee VMR CONTRACTORS: Court Extends Cash Collateral Access to July 18 WABASH NATIONAL: S&P Downgrades ICR to 'B+', Outlook Stable WALKER AREA: Mary Sieling Named Subchapter V Trustee WELLPATH HOLDINGS: Shannon Files Supplemental Rule 2019 Statement WEST CENTRO: Unsecured Creditors Will Get 15% of Claims in Plan WST INDUSTRIES: Claims to be Paid From Continued Operations YOUNG MEN'S CHRISTIAN: Emerges from Chapter 11 Bankruptcy [] Researchers Link Bankruptcies to Worse Nursing Home Care ********* 1 SANDPIPER: Seeks Chapter 11 Bankruptcy in North Carolina ---------------------------------------------------------- On May 15, 2025, 1 Sandpiper LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of North Carolina. According to court filing, the Debtor reports $8,836,717 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 1 Sandpiper LLC 1 Sandpiper LLC owns a vacation rental property located at 1 Sandpiper Lane in Marathon, Florida. The property is valued at $3.65 million. 1 Sandpiper LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-01836) on May 15, 2025. In its petition, the Debtor reports total assets of $3,822,330 and total liabilities of $8,836,717. Honorable Bankruptcy Judge Pamela W. Mcafee handles the case. The Debtors are represented by Danny Bradford, Esq. at PAUL D. BRADFORD, PLLC. 120-MP VICTORIA: Gets Interim OK to Use Cash Collateral ------------------------------------------------------- 120-MP Victoria, Ltd. got the green light from the U.S. Bankruptcy Court for the Western District of Texas, Austin Division, to use cash collateral. The order authorized the company's interim use of cash collateral to pay the expenses set forth in its budget for the period from May 6 until the date of the final hearing. First State Bank, Louise claims that it is the holder of security interests, liens and mortgages in all or substantially all of 120-MP Victoria's property. The pre-bankruptcy lender claims it is owed $1,246,549.17 by the company as of the petition date. As protection, First State Bank was granted replacement liens and security interests in all property of the company in which the lender held valid pre-bankruptcy liens and security interests. The next hearing is set for May 29. About 120-MP VICTORIA Ltd. 120-MP VICTORIA, Ltd. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Texas Case No. 25-10658) on May 5, 2025. At the time of the filing, the Debtor disclosed up to $10 million in both assets and liabilities. Ronald Smeberg, Esq., at The Smeberg Law Firm, is the Debtor's bankruptcy counsel. First State Bank Louise, as lender, is represented by: Mitchell Buchman, Esq. Barrett Daffin Frappier Turner & Engel, LLP 1900 St. James Place, Suite 500 Houston, TX 77056 Telephone: (713) 693-2014 Facsimile: (713) 693-2011 mitchelb@bdfgroup.com 154 HIGHLAND: Seeks Chapter 11 Bankruptcy in New York ----------------------------------------------------- On May 14, 2025, 154 Highland Avenue Realty LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York. According to court filing, the Debtor reports $829,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 154 Highland Avenue Realty LLC 154 Highland Avenue Realty LLC owns a two-family residential property located at 154 Highland Street in Port Chester, New York. The property, which is currently tenant-occupied, is estimated to be valued at about $900,000. 154 Highland Avenue Realty LLCsought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.J. Lead Case No. 25-22418) on May 14, 2025. In its petition, the Debtor reports total assets of $905,850 and total Liabilities of $829,000. Honorable Bankruptcy Judge Sean H. Lane handles the case. The Debtors are represented by Anne Penachio, Esq. at PENACHIO MALARA LLP. 17FARMHADEN LLC: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: 17Farmhaden LLC 2423 SW 147th Ave. #547 Miami FL 33185 Business Description: 17Farmhaden LLC is a Florida-based company that owns and leases residential properties, excluding apartment buildings. Chapter 11 Petition Date: May 19, 2025 Court: United States Bankruptcy Court District of Maryland Case No.: 25-14496 Debtor's Counsel: John D. Burns, Esq. THE BURNS LAW FIRM, LLC 6305 Ivy Lane, Ste 340 Greenbelt MD 20770 Tel: 301-441-8780 Email: jburns@burnsbankruptcyfirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Amadou B. Cisse as authorized member. The Debtor did not submit the required list of its 20 largest unsecured creditors when filing the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/B7B5NWQ/17Farmhaden_LLC__mdbke-25-14496__0001.0.pdf?mcid=tGE4TAMA 2315 LOMA VISTA: Section 341(a) Meeting of Creditors on June 3 -------------------------------------------------------------- On May 13, 2025, 2315 Loma Vista LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California. According to court filing, the Debtor reports $716,656 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on June 3, 2025 at 09:15 AM at UST-LA2, TELEPHONIC MEETING. CONFERENCE LINE:1-866-816-0394, PARTICIPANT CODE:5282999. About 2315 Loma Vista LLC 2315 Loma Vista LLC owns a property located at 2315 Loma Vista PL, Los Angeles, CA 90039, with an appraised value of $1.40 million. 2315 Loma Vista LLCsought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-13989) on May 13, 2025. In its petition, the Debtor reports total assets of $1,399,000 and total liabilities of $716,656. Honorable Bankruptcy Judge Julia W. Brand handles the case. The Debtors are represented by Thomas B. Ure, Esq. at URE LAW FIRM. 23ANDME HOLDING: Sells Genetic Testing Division to Regeneron ------------------------------------------------------------ Steven Church and Gerry Smith of Bloomberg News report that the bankrupt genetic-testing firm 23andMe has reached a deal to sell its DNA database -- previously holding samples from about 15 million people -- to pharmaceutical company Regeneron for $256 million. The sale follows heightened scrutiny from customers and government officials calling on 23andMe to protect the genetic data it gathered over the years through saliva samples. Regeneron has agreed to adhere to 23andMe's privacy policy, which allows individuals to request the deletion of their personal data, according to Bloomberg News. About 23andMe 23andMe is a genetics-led consumer healthcare and biotechnology company empowering a healthier future. Through its direct-to-consumer genetic testing, 23andMe offers personalized insights into ancestry, genetic traits, and health risks. The Company has developed a large database of genetic information from over 15 million customers, enabling it to provide health and carrier status reports and collaborate on genetic research for drug development. On the Web: http://www.23andme.com/ On March 23, 2025, 23andMe Holding Co. and 11 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. E.D. Mo. Lead Case No. 25-40976). The Company disclosed $277,422,000 in total assets against $214,702,000 in total liabilities as of Dec. 31, 2024. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis & Bockius LLP are serving as legal counsel to 23andMe and Alvarez & Marsal North America, LLC as restructuring advisor. Moelis & Company LLC is serving as investment banker and Goodwin Procter LLP is serving as legal advisor to the Special Committee of 23andMe's Board of Directors. Reevemark and Scale are serving as communications advisors to the Company. Kroll is the claims agent. Jerry Jensen, Acting U.S. Trustee for Region 13, appointed an official committee to represent unsecured creditors in the Chapter 11 cases of 23andMe Holding Co. and its affiliates. The Committee selected Kelley Drye & Warren LLP as its lead counsel; Stinson LLP as co-counsel; and FTI Consulting Inc. as financial advisor. 250 WYNAH LANE: Seeks Chapter 11 Bankruptcy in Illinois ------------------------------------------------------- On May 14, 2025, 250 Wynah Lane LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Illinois. According to court filing, the Debtor reports between$1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 250 Wynah Lane LLC 250 Wynah Lane LLC is a single-asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). 250 Wynah Lane LLCsought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-07414) on May 14, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Deborah L. Thorne handles the case. The Debtors are represented by Matthew T. Gensburg, Esq. at GENSBURG CALANDRIELLO & KANTER, P.C. 4069 – 4089 MINNESOTA: H. Jason Gold OK'd as Chapter 11 Trustee ----------------------------------------------------------------- Judge Elizabeth Gunn of the U.S. Bankruptcy Court for the District of Columbia approved the appointment of H. Jason Gold as Chapter 11 trustee for 4069-4089 Minnesota Ave, NE, LLC. Mr. Gold was appointed on May 5 by Matthew Cheney, Acting U.S. Trustee for Region 4. Mr. Gold neither holds nor represents any interests adverse to the company, creditors and other parties involved in the company's Chapter 11 case. About 4069 - 4089 Minnesota Ave NE 4069 - 4089 Minnesota Ave, NE, LLC is a debtor with a single real estate asset, as outlined in 11 U.S.C. Section 101(51B). It is based in Washington, DC. 4069 - 4089 Minnesota Ave filed Chapter 11 petition (Bankr. D. Colo. Case No. 25-00070) on Feb. 27, 2025, listing between $10 million and 50 million in both assets and liabilities. Oscar Portillo, managing member, signed the petition. Judge Elizabeth L Gunn oversees the case. The Law Offices of Richard B. Rosenblatt, PC serves as the Debtor's bankruptcy counsel. 520 COLUMBUS: Seeks Chapter 11 Bankruptcy in New York ----------------------------------------------------- On May 16, 2025, 520 Columbus Ave Ltd. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 520 Columbus Ave Ltd. 520 Columbus Ave Ltd. operates a restaurant business located at 520 Columbus Avenue, New York, NY 10024. 520 Columbus Ave Ltd. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11006) on May 16, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge David S. Jones handles the case. The Debtors are represented by Lawrence F. Morrison, Esq. at MORRISON TENENBAUM PLLC. A.T & M.D TRUCKING: Seeks Chapter 11 Bankruptcy in Ohio ------------------------------------------------------- On May 16, 2025, A.T & M.D Trucking LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Ohio. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About A.T & M.D Trucking LLC A.T & M.D Trucking LLC is a trucking contractor based in Columbus, Ohio. The Company provides freight transportation services and is registered with the U.S. Department of Transportation. A.T & M.D Trucking LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ohio Case No. 25-52131) on May 16, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge John E. Hoffman Jrhandles the case. The Debtors are represented by John W. Kennedy, Esq. at STRIP HOPPERS LEITHART MCGRATH & TERLECKY CO., LPA A.Z.N. REALTY: Seeks Chapter 11 Bankruptcy in New York ------------------------------------------------------ On May 13, 2025, A.Z.N. Realty LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of New York. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About A.Z.N. Realty LLC A.Z.N. Realty LLC owns a commercial office building located at 13 East 37th Street in New York, NY. The Property is improved by an eight story building, occupied by a Chinese restaurant on the ground floor, with eight other tenants occupying various spaces and three currently vacant. A.Z.N. Realty LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-42314) on May 13, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Jil Mazer-Marino handles the case. The Debtors are represented by Kevin Nash, Esq. at GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP. ACCRO BRANDS: Fitch Lowers IDR to 'BB-', Outlook Negative --------------------------------------------------------- Fitch Ratings has downgraded ACCO Brands Corporation's ratings, including its Issuer Default Rating (IDR) to 'BB-' from 'BB', its senior secured revolving credit facility (which is co-borrowed by ACCO Brands Australia Holding Pty Limited) and senior secured term loan ratings to 'BB+' with a Rating Recovery of 'RR1' from 'BBB-' / 'RR1', and its senior unsecured notes to 'BB-'/ 'RR4' from 'BB' / 'RR4'. The Rating Outlook is Negative. The downgrade reflects Fitch's expectation that ACCO's leverage will be sustained above 3.5x over the next several years, with EBITDA sustained below $200 million; both of which are worse than Fitch's previous expectations. Fitch's base case projects that ACCO's EBITDA could decline to around $190 million with leverage over 4.0x in 2025. Fitch could stabilize ACCO's Outlook if evidence shows that the company is able stabilize EBITDA around these levels, while reducing debt so that leverage is sustained below 4.0x. Key Rating Drivers Leverage Sustained Above 3.5x: Fitch's base case assumes that ACCO's leverage will remain elevated above 3.5x over the next several years, higher than its previous expectations of leverage declining below 3.5x in 2025. Leverage could be around 4.2x in 2025, an increase from 3.7x in 2024, before declining to the mid-to-high 3.0x range in 2026 and thereafter driven by debt reduction. Further declines in EBITDA, or debt financed acquisitions, could lead to leverage sustained above the 4.0x downgrade sensitivity. EBITDA Below $200 Million: Fitch's base case assumes ACCO's EBITDA will decline to just under $200 million in 2025, down from $230 million in 2024 and a significant decline in scale compared to around $300 million from 2017 to 2019. EBITDA could stabilize in the $190 million range over the horizon, supported by the company's focus on expenditure management and tariff mitigation strategies. Fitch believes the company will likely need to continue finding cost savings to support margins and invest in growth, or make acquisitions, to meaningfully grow EBITDA. Declining Sales in 2025: Fitch expects ACCO's sales to decline by high single digits in 2025, to around $1.5 billion, compared to $1.67 billion in 2024. Downward pressure on sales from secular declines, soft demand and portfolio rationalization are expected by Fitch to be exacerbated by a tariff related pull back in demand and negative consumer sentiment. Sales could stabilize around $1.5 billion in 2026 and thereafter, as consumer sentiment improves and growth in tech accessories and learning & creative mostly offsets low single digit declines in business essentials. Secular Business Pressures: ACCO's exposure to secular declines in the office products category because of the shift toward digital technologies and away from paper is a key challenge to its credit profile. Fitch expects ACCO's core business essentials segment (around 50% of revenues) is likely to keep declining in the low single-digit range, making it challenging to stabilize or organically grow sales. The company will likely need to make acquisitions that successfully shift its business mix toward less-cyclical or higher-growth categories to support meaningful organic growth. Potential to be Acquisitive: Considering the declines in EBITDA over the past several years, ACCO could make acquisitions to regain lost EBITDA scale. The company has stated its interest in being acquisitive, and it took a similar approach to offset declining sales between 2016 and 2020 when it spent around $800 million on acquisitions in higher growth categories and/or geographies. While acquisitions could offset recent declines, they could also divert FCF away from debt reduction leading higher than currently anticipated leverage and increased execution risk. Good FCF, Minimal Refinancing Risk: ACCO should generate FCF margins in the mid-single digit percentage of revenue range, supporting its liquidity profile. The company has no near-term debt maturities after it extended its credit facilities in October 2024. While Fitch expects the company will continue to repay debt, the pace and scale of debt reduction could be tempered by acquisitions or shareholder returns. The company made a $10m acquisition and repurchased million in shares in the first quarter of 2025. Evolving Tariff Landscape: ACCO, like many companies, faces increased cost pressures from current and potential tariffs. ACCO shifted a large portion of manufacturing away from China because of previous tariffs, and the company will continue to pursue supply chain optimization, cost savings and pricing increases to offset the impact of tariffs. Visibility is low, however many of ACCO's products are highly discretionary. Declining consumer sentiment and businesses carefully monitoring spending are expected by Fitch to negatively impact sales. Good Profitability: Fitch expects ACCO's EBITDA margin to be in the mid-to-high 12% range in 2025 through 2027, down from 13.8% in 2024, as margins are pressured by higher costs due to tariffs and from fixed cost deleveraging. The company's expenditure management efforts (around $40 million targeted in 2025) should help it maintain margins over the next several years. Fitch notes that visibility on costs and margins is low due to the evolving tariff landscape. Peer Analysis ACCO's 'BB-' rating reflects its leverage sustained above 3.5x over the next several years, and its significant decline in scale over the past several years driven by secular challenges, balanced by consistent FCF generation and good profitability. The Negative Outlook is driven by concerns the company may not be able to stabilize its operations over the next 12-24 months while maintaining leverage below 4.0x. Other consumer goods peers include Newell, (B+/Stable), Central Garden & Pet Company (CENT; BB/Stable), and Spectrum Brands, Inc. (Spectrum; BB/Stable). ACCO's leverage downgrade sensitivity is tighter than would typically be expected for a consumer goods company, driven by the secular challenges in its core business that will necessitate annual cost savings or acquisitions to stabilize or grow EBITDA. Newell's 'B+' rating reflects the company's operating challenges in recent years, which have led to elevated leverage. Fitch expects EBITDA to be below $900 million in the near term given macroeconomic headwinds, with EBITDA leverage elevated in the mid-to-high 5x. CENT's ratings reflect its strong market positions in the pet, lawn and garden segments and ample liquidity supported by strong cash on the balance sheet and robust FCF. Fitch expects EBITDA leverage to be in the mid-3x range. These strengths are moderated by its limited scale and customer concentration risk. Spectrum's ratings reflect the company's low leverage across the rating horizon, its relatively diversified portfolio, as well as uncertainty around the company's business mix over the next several years. Key Assumptions - Sales decline in high 9% range in 2025, as secular pressures and business rationalization are compounded by deteriorating consumer sentiment and declining discretionary spending. Sales could stabilize around $1.5 billion in 2026 and thereafter, driven by improving consumer sentiment and modest growth in tech accessories and in learning and creative which mostly offsets secular declines in business essentials; - EBITDA declines to around $190 million in 2025 because of lower sales and increased costs related to tariffs. Cost savings initiatives and mitigation efforts support stable margins in the mid-to-high 12% range across the horizon, leading to EBITDA stabilizing around $190 million; - FCF of around $60 million in 2025 (assuming Capex at 1% of sales, dividends similar to 2024 and one-time costs to implement savings) and in the $60 million to $70 million range thereafter. Fitch assumes the company will deploy most of its FCF to debt reduction, with some FCF used for share repurchases in 2025; - Leverage could increase to around 4.2x in 2025 and decline toward the mid-to-high 3.0x range in 2026 and thereafter driven by debt repayment; - Floating interest rates ranging from 3.5% to 4.5%. Recovery Analysis Fitch assigned Recovery Ratings (RRs) to the various debt tranches in accordance with its criteria, which allows for the assignment of RRs for issuers with IDRs in the 'BB' category. RRs in the 'BB' category are not computed by bespoke analysis due to the distance to default. Instead, they serve as a label to reflect an estimate of the risk of these instruments relative to other instruments in the entity's capital structure. Fitch rates ACCO's first-lien secured debt 'BB+'/'RR1', two notches above the IDR, reflecting outstanding recovery prospects in the event of default. ACCO's unsecured debt has average recovery prospects and is rated 'BB-/'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Continued declines in sales or profitability leading to EBITDA approaching $150 million; - EBITDA leverage sustained above 4.0x; - A debt-financed acquisition without a concrete plan to reduce EBITDA leverage to below 4.0x within 12-24 months of the close of the acquisition. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade is unlikely in the near term given the existing business model and industry issues, but an upgrade could be possible if ACCO makes favorable acquisitions that successfully shift its business mix toward less-cyclical or higher-growth categories, supporting stable sales, EBITDA sustained in the mid-to-high $200 million range, and EBITDA leverage below 3.5x; - The Outlook could be stabilized if Fitch gained increased confidence that ACCO was able to stabilize its business and operations over the next 12 months-24 months while sustaining leverage below 4.0x. Liquidity and Debt Structure ACCO's liquidity profile is good, supported by reasonable annual FCF generation that is seasonally skewed to the second half of the year. ACCO had $134.6 million of cash on hand as of March 31, 2025, and availability of around $236 million on its revolver (after deducting $10.2 million in letters of credit). Fitch expects ACCO will generate FCF (after dividends) in the $60 million to $70 million range over the next several years, supporting its ability to repay debt. As of March 31, 2025, ACCO had $936.5 million of debt outstanding, consisting primarily of around US$221 million in revolver drawings, US$131 million on its EUR senior secured term loan A (maturing Oct. 30, 2029), US$575 million of unsecured notes (maturing in March 2029), and around US$9 million in other debt. On Oct. 31, 2025, the company announced an amendment of its credit facilities where it reduced the revolver size to $467.5 million (from $600 million previously) and extended the maturity to either 180 days prior to the maturity of its 4.25% senior notes (maturing March 15, 2029) or Oct. 30, 2029, if the notes are extended beyond the maturity of the credit facility. Issuer Profile ACCO Brands is one of the world's largest designers, marketers and manufacturers of branded academic, consumer and business products. The product portfolio includes well-known brands, including Swingline, Five Star, Mead, AT-A-GLANCE, Kensington, PowerA, GBC, Tilibra, Leitz and Rapid. Summary of Financial Adjustments Historical EBITDA has been adjusted for stock-based compensation, impairment charges, transaction and integration expenses and other items. 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 ----------- ------ -------- ----- ACCO Brands Australia Holding Pty Limited senior secured LT BB+ Downgrade RR1 BBB- ACCO Brands Corporation LT IDR BB- Downgrade BB senior unsecured LT BB- Downgrade RR4 BB senior secured LT BB+ Downgrade RR1 BBB- ACTION FACE: Files Amended Plan; Confirmation Hearing June 18 ------------------------------------------------------------- Action Face, Inc., submitted an Amended Disclosure Statement describing Plan of Reorganization dated May 2, 2025. The Debtor anticipates that the Reorganized Debtor will operate post-confirmation as a marketing consulting firm doing business as Technology2Market, which will primarily provide consulting services to tech companies on their go-to-market strategies. The Debtor anticipates that the principals and equity holders of the Reorganized Debtor will be Kenneth Davis (the current Chief Executive Officer of the Debtor) and Elizabeth Gasper. The Debtor anticipates that Mr. Davis and Ms. Gasper will provide new value contributions in the form of cash to ensure the feasibility of the Plan and will continue to provide equity infusions, as necessary, to operate the Reorganized Debtor's business following confirmation of the Plan. Like in the prior iteration of the Plan, total allowed amount of General Unsecured Claims in Class 2 estimated to be approximately $9,559,915.28. Paid on or before the date that is three months after the Effective Date, in one or both of the following manners: * If the Debtor elects to distribute Infinite Reality Shares directly to creditors, then each Class 1 creditor will receive a pro rata share of Infinite Reality Shares based on the allowed dollar amount of such creditor's claim, after any allowed administrative and priority claims have been paid in accordance with the terms of the Plan; or * In the event that the Debtor has cash remaining after allowed administrative and priority claims have been paid in accordance with the terms of the Plan, the remaining cash shall be distributed to holders of allowed Class 1 claims on a pro rata basis, up to the allowed amounts of such claims. Any cash remaining after payment of allowed Class 1 claims in full shall vest in the Reorganized Debtor. The Plan provides for no distribution to Class 2 equity holders on account of their interests in the Debtor, which will be terminated and extinguished. This Class is deemed to have rejected the Plan. The equity in the Reorganized Debtor shall be acquired by Kenneth Davis and Elizabeth Gasper on account of their New Value Contributions made in connection with the confirmation of this Plan. The sources of money or other assets earmarked to pay creditors and interest-holders include: * The Debtor's cash on hand as of the Effective Date of the Plan, which the Debtor estimates will be approximately $26,000. * "New value" contributions totaling approximately at least $5,000 total from Kenneth Davis and Elizabeth Gasper (the "New Value Contributions"), for the purchase of 100% equity interests in the Reorganized Debtor. The New Value Contributions will be deposited into a client trust account maintained by the Debtor's counsel, LNBYG, prior to the date of the Plan confirmation hearing. * Holders of general unsecured claims will receive pro rata shares of the Infinite Reality Shares (or the cash proceeds of the sale of the Infinite Reality Shares), after allowed administrative and priority claims have been paid in accordance with the terms of the Plan. All existing equity interests will be cancelled and extinguished with no distribution under the Plan. * Carta is the equity management software platform that Infinite Reality utilizes. On or shortly after the Plan Effective Date, the Debtor will mail to creditors forms that must be completed and signed for Infinite Reality to accept new investors onto their capitalization table, including, without limitation, an Accredited Investor Survey and Anti-Money Laundering Requirements, copies of which are attached as Exhibit C hereto (the "Creditor Investor Forms"). The Proponent has reserved June 18, 2025, at 1:30 p.m. in Courtroom 303 located at 21041 Burbank Boulevard, Woodland Hills, California 91367 for a hearing to determine whether the Court will confirm the Plan. Ballots must be received by the Proponent, addressed to Levene, Neale, Bender, Yoo & Golubchik L.L.P., 2818 La Cienega Avenue, Los Angeles, California 90034, Attention: Juliet Y. Oh, by 5:00 p.m. on June 4, 2025. A full-text copy of the Amended Disclosure Statement dated May 2, 2025 is available at https://urlcurt.com/u?l=2rAamf from PacerMonitor.com at no charge. Counsel to the Debtor: Ron Bender, Esq. Monica Y. Kim, Esq. Juliet Y. Oh, Esq. Robert M. Carrasco, Esq. Levene, Neale, Bender, Yoo & Golubchik, LLP 2818 La Cienega Avenue Los Angeles, CA 90034 Tel: (310) 229-1234 Fax: (310) 229-1244 Email: rb@lnbyg.com myk@lnbyg.com jyo@lnbyg.com rmc@lnbyg.com About Action Face Action Face, Inc., is a developer of customized selfie action figures and avatar videos starring the user, intended to capture memorable events in life. The company is based in Woodlands Hills, Calif. Action Face filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-10180) on Feb. 5, 2024, listing $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Kenneth Davis as chief executive officer. Judge Martin R. Barash oversees the case. Levene, Neale, Bender, Yoo & Golubchik, LLP, is the Debtor's legal counsel. ADVANCE COMPANIES: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Advance Companies Inc. 350 73rd Ave NE Ste 15 Fridley, MN 55432 Business Description: Advance Companies Inc. is a family-owned restoration and remodeling contractor based in Fridley, Minnesota. The Company serves the Minneapolis-St. Paul area, specializing in water and fire damage restoration, mold remediation, and remodeling projects. It holds contractor licensing and certifications, offering services including emergency board-up and insurance claim assistance. Chapter 11 Petition Date: May 18, 2025 Court: United States Bankruptcy Court District of Minnesota Case No.: 25-41603 Judge: Hon. William J Fisher Debtor's Counsel: John D. Lamey III, Esq. LAMEY LAW FIRM, P.A. 980 Inwood Ave N Oakdale, MN 55128-7094 Tel: 651-209-3550 E-mail: JLAMEY@LAMEYLAW.COM Total Assets: $98,837 Total Liabilities: $1,515,858 The petition was signed by Roger M. Washbourne 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/3VSW6IY/ADVANCE_COMPANIES_INC__mnbke-25-41603__0001.0.pdf?mcid=tGE4TAMA AEC PARENT: S&P Lowers ICR to 'CCC+' on Sustained Demand Pressure ----------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on Jacksonville, Fla.-based ophthalmic equipment distributor AEC Parent Holdings Inc. (dba Advancing Eyecare) to 'CCC+' from 'B-'. At the same time, S&P lowered its issue-level rating on the company's revolving credit facility and first-lien term loan to 'CCC+' from 'B-'. The recovery rating of '3' indicates its expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default. The negative outlook reflects heightened uncertainty in both the operating environment and AEC's ability to return to organic growth that will reduce or reverse cash flow deficits over the next 12 months. AEC is operating through prolonged weaker customer demand and economic uncertainty that has impaired its EBITDA margins and ability to generate free cash flow. S&P believes the company will sustain free cash flow deficits through 2025, straining liquidity. AEC's revolver is almost entirely drawn, and the company will need its remaining cash to cover fixed charges. S&P said, "Our 'CCC+' rating reflects macroeconomic and policy uncertainty that has led to prolonged demand weakness. AEC's customer base, primarily private vision care practices and national accounts, has exhibited conservative spending in response to myriad factors including higher base interest rates and policy uncertainty. This reduced revenue 12% in 2024, steeper than we anticipated. We now believe the company increasingly relies on improved market conditions to sustain its capital structure and improve its liquidity position. While our base-case scenario for 2025 assumes a modest rebound in revenue growth of 3%-5%, supported by structural end-market demand for high quality vision care, we believe prolonged macroeconomic uncertainty could easily derail this scenario. Higher-for-longer interest rates, inflationary pressure, or broad-based tariffs would likely further delay purchase orders, deepening cash flow deficits. "We expect AEC will sustain free cash flow deficits amid significant margin contraction. The company's S&P Global Ratings-adjusted EBITDA margins declined to 6% in 2024, and we expect modest improvement only to 7%-8% in 2025 given prevailing demand headwinds. Management continues to take steps to align AEC's cost structure with market dynamics. Warehouse consolidation, elimination of discounts on freight costs, and headcount reduction will likely offer some support to margins. Absent improved customer demand, we do not believe these actions alone will allow enough improvement in profitability to support a return to sustainable, positive free cash flow. We expect a cash flow deficit of $10 million-$15 million in 2024. Combined with a mandatory term loan amortization of $2.5 million in 2025, it means the company will likely draw down a substantial portion of its cash balance in 2025. "AEC's liquidity position could weaken further, necessitating additional sponsor equity to cover fixed charges. In the latter half of 2024, the company received an equity injection of $25 million from sponsor Cornell Capital to fund the purchase of ophthalmic equipment distributor Eyefficient and bolster liquidity. We initially believed this would allow AEC to weather near-term weakness in demand and return to break-even free cash flow in 2025. However, AEC has yet to experience an inflection point in demand that would support an expansion of revenue or cash flow. With approximately $20 million cash on hand and no revolver availability, we have accordingly revised our liquidity score to less than adequate to reflect a ratio of sources to uses of cash of less than 1.2x and the inability of the company to withstand either a high-impact, low-probability event or prolonged weakness in demand without the need for external financing. "Although not our base-case assumption, given the sponsor's previous support of the company, its relatively recent acquisition of AEC, and absence of near-term refinancing risk, we believe the company could have additional equity to prevent a covenant breach or payment delinquency. "The negative outlook reflects heightened uncertainty in both the operating environment and AEC's ability to return to organic growth that will reduce or reverse cash flow deficits over the next 12 months." S&P could lower its rating on AEC if S&P expects: -- Sustained free cash flow deficits or significantly reduced total available liquidity such that it cannot manage its debt servicing obligations; or -- An increased risk over the next 12 months of the company needing to consider a debt amendment or exchange transaction that S&P deems as distressed. Although unlikely over the next 12 months, S&P could revise the outlook to stable if AEC returns to sustainable organic growth and positive free cash flow, allowing the company to improve its liquidity position. AFH AIR PROS: Seeks to Extend Plan Exclusivity to Oct. 13 --------------------------------------------------------- AFH Air Pros, LLC, and affiliates asked the U.S. Bankruptcy Court for the Northern District of Georgia to extend their exclusivity periods to file a plan of reorganization and obtain acceptance thereof to October 13 and December 11, 2025, respectively. The Debtors explain that the requested extensions of the Exclusive Periods are necessary and appropriate to enable the companies to finalize their Sale process, close the Sale and pursue a chapter 11 plan framework that will maximize the value of the Debtors' estates for the benefit of all stakeholders, without interruption. Moreover, this is the Debtors' first request for an extension of their Exclusive Periods. Accordingly, application of certain of the relevant factors to the facts of these Chapter 11 Cases demonstrates that ample cause exists to grant the reasonable extension of the Exclusive Periods requested herein. The Debtors claim that the Chapter 11 Cases are sufficiently large and complex to warrant the requested extension of the Exclusive Periods. There are twenty Debtors involved in the Chapter 11 Cases, and the Debtors have over 600 employees and operate nine business units across multiple states. These Chapter 11 Cases are complex because, among other things, the Debtors are implementing a Sale process of the Debtors' nine business units that involves six different stalking horse purchasers. In addition, the scope of the Debtors' operations required securing $20 million in postpetition financing, and negotiating that financing was a lengthy and complicated process essential to allowing the Debtors the ability to operate in the early stages of these Chapter 11 Cases. Accordingly, the size and the complexity of these Chapter 11 Cases, and the breadth of financial and legal issues involved therein, warrant the requested extension of the Exclusive Periods. The Debtors assert that expiration of the Exclusive Periods would result in the Debtors having to immediately and prematurely seek confirmation of a chapter 11 plan or face the prospect of litigation concerning competing plans. Each of these alternatives is inconsistent with the purposes of section 1121 of the Bankruptcy Code, which is to allow the debtor sufficient time and flexibility to negotiate with its creditors without interference from other parties in interest. The Debtors further assert that they are not seeking an extension of the Exclusive Periods as a negotiation tactic, to artificially delay the conclusion of these Chapter 11 Cases, or to hold creditors hostage to an unsatisfactory plan proposal. Rather, the Debtors seek an extension of exclusivity so that they have sufficient time to negotiate with their creditors and formulate a viable chapter 11 plan that is in the best interests of their creditors. Further, an extension of the Exclusive Periods will not prejudice the Debtors' stakeholders. On the contrary, an extension of the Exclusive Periods will enable the Debtors to continue their Sale process without the distraction of a competing chapter 11 plan, which will form the foundation for constructive negotiations with stakeholders over a chapter 11 plan and stakeholder recoveries. The Debtors cite that allowing another party to propose a competing chapter 11 plan at this juncture in the Chapter 11 Cases will only hamper the Debtors' chances of negotiating a value maximizing plan with their stakeholders upon completion of the Sale process. Thus, the Debtors believe that an extension of the Exclusive Periods is in the best interests of the Debtors, their estates and their stakeholders. Counsel for the Debtors: David B. Kurzweil, Esq. Matthew A. Petrie, Esq. Greenberg Traurig, LLP Terminus 200, 3333 Piedmont Road NE, Suite 2500, Atlanta, GA 30305 Tel: (678) 553-2100 About AFH Air Pros Founded in 2017 in Fort Lauderdale, Florida, Air Pros is a professional home services provider specializing in HVAC installation, repair, maintenance, and air quality solutions for residential and commercial clients. Air Pros also offer plumbing, electrical services, and home warranties at certain locations. Air Pros, which began with one vehicle and two employees, now operates over 600 vehicles, employs more than 700 people, and serves customers in eight states: Florida, Georgia, Alabama, Mississippi, Louisiana, Texas, Colorado, and Washington. AFH Air Pros, LLC, and 19 of its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga.) on March 16, 2025, listing estimated assets of $100 million to $500 million, and estimated liabilities of $100 million to $500 million. The petitions were signed by Andrew D.J. Hede as chief restructuring officer. Judge Paul Baisier presides over the cases. The Debtors tapped David B. Kurzweil, Esq. and Matthew A. Petrie, Esq., at Greenberg Traurig LLP, as bankruptcy counsel; Accordion Partners, LLC as financial advisor; and Jefferies, LLC as investment banker. Kurtzman Carson Consultants, LLC and DBA Verita Global serve as the Debtors' notice, claims and balloting agent and administrative advisor. On March 31, 2025, the Office of the United States Trustee appointed a committee of creditors holding unsecured claims. The committee tapped Pachulski Stang Ziehl & Jones LLP as bankruptcy counsel, Small Herrin LLP as local counsel, and Province LLC as financial advisor. AKOUSTIS TECHNOLOGIES: Gets Extension to Access Cash Collateral --------------------------------------------------------------- Akoustis Technologies, Inc. and its affiliates received another extension from the U.S. Bankruptcy Court for the District of Delaware to use cash collateral. The order penned by Judge Laurie Selber Silverstein authorized the Debtors to use cash collateral from May 23 until Aug. 22 or until the occurrence of so-called termination events. Termination events include the dismissal or conversion of the Debtors' Chapter 11 cases; the appointment or election of a trustee, examiner or any other representative with expanded powers; the consummation or effective date of a plan of reorganization for the Debtors; the entry of an order reversing, staying, vacating or otherwise modifying the cash collateral order; and the entry of a final order approving a superseding stipulation entered into by the Debtors and Joseph Collins, the pre-bankruptcy secured creditor. The secured creditor's interest in the pre-bankruptcy collateral is adequately protected and, therefore, he is not entitled to any additional protection. Mr. Collins holds a $3.1 million secured claim against the Debtors. The Debtors need to use cash collateral to finalize two asset sales worth over $35 million and pay expenses to maintain business operations. The Debtors' expenses may exceed the amounts set forth in the budget so long as the total cash in their bank accounts exceeds $15 million, according to the bankruptcy court's order. About Akoustis Technologies Akoustis Technologies, Inc. -- http://www.akoustis.com/-- is a high-tech BAW RF filter solutions company that is pioneering next-generation materials science and MEMS wafer manufacturing to address the market requirements for improved RF filters -- targeting higher bandwidth, higher operating frequencies and higher output power compared to legacy polycrystalline BAW technology. The Company utilizes its proprietary and patented XBAW(R) manufacturing process to produce bulk acoustic wave RF filters for mobile and other wireless markets, which facilitate signal acquisition and accelerate band performance between the antenna and digital back end. Superior performance is driven by the significant advances of poly-crystal, single-crystal, and other high purity piezoelectric materials and the resonator-filter process technology which enables optimal trade-offs between critical power, frequency and bandwidth performance specifications. Akoustis owns and operates a 125,000 sq. ft. ISO-9001:2015 registered commercial wafer-manufacturing facility located in Canandaigua, NY, which includes a class 100 / class 1000 cleanroom facility -- tooled for 150-mm diameter wafers -- for the design, development, fabrication and packaging of RF filters, MEMS and other semiconductor devices. Akoustis is headquartered in the Piedmont technology corridor near Charlotte, North Carolina. Akoustis and three affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 24-12796) on Dec. 16, 2024. Akoustis disclosed $53,371,000 in total assets against $122,586,000 in total debt as of Sept. 30, 2024. The Hon. Laurie Selber Silverstein is the case judge. The Debtors tapped K&L Gates, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel. Raymond James & Associates, Inc. as investment banker; Getzler Henrich & Associates, LLC as financial advisor; and C Street Advisory Group as strategic communications advisor. Stretto is the claims agent and has launched the page https://cases.stretto.com/Akoustis. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. ALERA GROUP: Moody's Assigns 'B3' CFR, Outlook Stable ----------------------------------------------------- Moody's Ratings has assigned a B3 corporate family rating and B3-PD probability of default rating to Alera Group Intermediate Holdings, Inc. (Alera). The rating agency also assigned the following ratings to credit facilities being issued by Alera subsidiary Alera Group, Inc.: $600 million five-year first lien revolving credit facility at B2, $3.06 billion seven-year first lien term loan at B2, and $1.0 billion eight-year second lien term loan at Caa2. Alera will use proceeds from the term loans to repay all existing borrowings, pay related fees and expenses, and add cash to the balance sheet. The rating outlook for these entities is stable. RATINGS RATIONALE Alera's ratings reflect its growing presence in US middle market insurance brokerage; its good diversification across products, clients, producers and insurance carriers; and its healthy EBITDA margins. Alera ranks among the 15 largest US insurance brokers in terms of revenue according to Business Insurance. Alera offers property & casualty insurance and employee benefits, and to a lesser extent, wealth and retirement plan services, mainly to middle market commercial clients. Established as an employee benefits firm in 2017, Alera has grown rapidly and diversified its product mix through more than 200 acquisitions along with mid-single-digit organic revenue growth. The company has slowed its pace of acquisitions in recent years to work on integrating its operations and enhancing its service offerings across seven geographic regions of the US. Credit challenges for Alera include its high financial leverage and limited interest and free cash flow coverage owing to its history of acquisitions funded mainly with debt. The acquisitions also carry integration risk and give rise to contingent earnout liabilities that consume a substantial portion of free cash flow. The company is also exposed to errors and omissions in the delivery of professional services. Just over half of Alera's equity is held by two private equity sponsors, Genstar and Flexpoint Ford, and just under half of the equity is held by company managers, employees and other investors. Moody's assignments of the new ratings takes into account the company's governance, including financial policy, acquisition strategy and concentrated ownership, as part of Moody's environmental, social and governance considerations. Giving effect to the proposed refinancing, Moody's estimates that Alera will have a pro forma debt-to-EBITDA ratio above 7.5x (per Moody's calculations), (EBITDA - capex) interest coverage of about 1.2x, and slightly positive free cash flow. These metrics incorporate Moody's adjustments for operating leases, contingent earnout liabilities, and run-rate earnings from acquisitions. Moody's expects that Alera will reduce its financial leverage and increase its interest and free cash flow coverage over the next 12-18 months through EBITDA growth, settlement of some contingent earnout liabilities, and a small amount of debt repayment. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Factors that could lead to a rating upgrade for Alera include: (i) debt-to-EBITDA ratio below 6x, (ii) (EBITDA - capex) coverage of interest above 2x, (iii) free-cash-flow-to-debt ratio above 5%, and (iv) further integration of its many acquired businesses. Factors that could lead to a rating downgrade include: (i) debt-to-EBITDA ratio above 7.5x, (ii) (EBITDA - capex) coverage of interest below 1.2x, (iii) free-cash-flow-to-debt ratio below 2%, or (iv) disruptions to existing or newly acquired operations. The principal methodology used in these ratings was Insurance Brokers and Service Companies published in February 2024. Based in Deerfield, Illinois, Alera is a middle market insurance broker offering property & casualty insurance, employee benefits, and wealth and retirement plan services mainly to commercial clients across the US. The company generated revenue of $1.4 billion in 2024. AMERICAN 24: Seeks Chapter 11 Bankruptcy in Arizona --------------------------------------------------- On May 13, 2025, American 24 LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Arizona. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About American 24 LLC American 24 LLC is a limited liability company. American 24 LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-04328) on May 13, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Daniel P. Collins handles the case. The Debtors are represented by Joseph G. Urtuzuastegui III, Esq. at REI LAW FIRM. AMERICAN WARRIOR: To Sell Finney County Property to Gardens City ---------------------------------------------------------------- American Warrior Construction Inc. seeks approval from the U.S. Bankruptcy Court for the District of Kansas, to sell Property, free and clear of liens, interest, and encumbrances. The Debtor's Property is located in Finney County, Kansas that is consists of approximately 4.570 acres located in Garden City, Kansas. The Debtor wants to sell the Property to the City of Garden City, Kansas for the price of $68,550. The Property will be sold in its present, "as is" condition, which no express or implied warranties. The Property will be sold free and clear of all liens and encumbrances of record including Tyson Fresh Meats Inc in the amount of $400,000.00. The Debtor intends use the proceeds of the sale to pay: a. all unpaid real estate taxes and assessments attributable to the real estate, including a prorata share of 2025 real estate taxes; b. Debtor's share of the closing expenses for title insurance, recording fees and other related fees; c. Realtor fee of 5% of gross sales price, or $3,427.50, due Realtor Coldwell Banker/The Real Estate Shoppe; d. Legal fees of Debtor related to sale in the amount of $2,500 plus court filing fee of $199; e. The balance to be paid to Tyson to be applied to its mortgage. If the Debtor's Motion is granted, the sales will be free and clear of all liens and encumbrances. About American Warrior Construction Inc. American Warrior Construction, Inc. is a construction company based in 118 E Laurel Garden City, KS 67846. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Kan. Case No. 24-11168) on November 14, 2024. In the petition signed by by Amro M. Samy, president, the Debtor disclosed estimated assets of up to $50,000 and estimated liabilities of up to $10 million. Judge Mitchell L. Herren presides over the case. Nicholas R. Grillot, Esq., at Hinkle Law Firm LLC represents the Debtor as legal counsel. ANCIOM LLC: Gets Interim OK to Use Cash Collateral -------------------------------------------------- Anciom, LLC got the green light from the U.S. Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division to use cash collateral. The order penned by Judge Peter Russin authorized the company's interim use of cash collateral to pay the expenses set forth in its budget until further order of the bankruptcy court. Water Furnace International Inc., Specialty Capital LLC, CT Corporation System, and Twentythreec, LLC may have a lien on the cash held by Anciom based on their loan agreements. As protection for the use of their cash collateral, the creditors were granted replacement liens to the same extent as their pre-bankruptcy liens. Anciom must pay $1,000 per month and may pay up to $6,400 per month into its counsel's trust account. These funds are for trustee fees and professional services but remain property of the estate. Undisbursed funds may be used to pay administrative claims if the case is converted to Chapter 7 or becomes administratively insolvent. The next hearing is scheduled for June 11. Specialty Capital is represented by: Alan C. Hochheiser, Esq. Maurice Wutscher, LLP 23611 Chagrin Blvd. Suite 207 Beachwood, OH 44122 Telephone: (216) 220-1129 Facsimile: (216) 472-8510 ahochheiser@mauricewutscher.com About Anciom LLC Anciom, LLC filed a petition under Chapter 11, Subchapter V of the 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. Linda Leali, Esq., serves as Subchapter V trustee. Judge Peter D. Russin oversees the case. The Debtor is represented by: Rachamin Cohen, Esq. Cohen Legal Services, P.A. 1801 NE 123rd Street, Suite 314 North Miami, FL 33181 Phone: (305) 570-2326 Email: rocky@lawcls.com ARCHROCK INC: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDR) of Archrock, Inc. (AROC) and Archrock Partners, L.P. (APLP) (collectively, Archrock) at 'BB'. Fitch has also affirmed the instrument rating on the senior unsecured notes co-issued by APLP and Archrock Partners Finance Corp at 'BB' with a Recovery Rating of 'RR4'. A cross-guarantee structure is in place between Archrock, Inc. and Archrock Partners, L.P. The Rating Outlook is Stable. The rating reflects Archrock's relatively stable cash flows, its diverse customer base and large geographic footprint. The company's short weighted-average contract term is a rating concern compared to peers. Fitch considers Archrock's current leverage appropriate for the rating. The Stable Outlook reflects the currently supportive compression market dynamics and Fitch's expectation that Archrock would effectively manage its financial profile should fleet utilization or compression pricing deteriorate in response to weakening production fundamentals. Key Rating Drivers Stable Cash Flows: The vast majority of Archrock's EBITDA is generated from fixed-fee take-or-pay contracts. Fitch views this contract structure favorably as it reduces direct commodity price exposure and volumetric risk, providing reasonable visibility into future cash flows. Archrock's compression units are typically contracted for an initial term between 12 months to 60 months, depending on the unit size and application. After the initial term, contracts continue on a month-to-month basis until terminated by either party. Archrock's weighted-average contract life, while not atypical for contracted compression, is short relative to the broader midstream sector. High Month-to-Month Exposure: A significant portion of Archrock's horsepower (HP) operates on month-to-month contracts. Demand for Archrock's services is closely linked to natural gas and crude oil production, which has resulted in relatively stable revenue and margins across commodity price cycles, especially when compared to Oil Field Service providers. However, if demand for contract compression declines and Archrock is unable to redeploy a substantial share of its HP contracted on a month-to-month basis at similar rates, it could experience meaningful earnings volatility. Strategic Arrangements: Archrock has strategic arrangements in place with several top customers. These bespoke arrangements typically require customers provide Archrock with preferential consideration for their compression needs in exchange for enhanced product availability and favorable pricing. Although these arrangements mitigate the company's re-contracting risk, they do not offer explicit protection against earnings volatility associated with declining utilization, in Fitch's view. About 80% of Archrock's HP operates under a long-term contract or strategic arrangement. Capital Allocation Priorities: Archrock has demonstrated a commitment to adhering to a conservative financial policy focused on maintaining balance sheet strength and financial flexibility. Over the forecast period, Fitch expects Archrock will use its cash flow to self-fund its sizeable growth capex commitments and increase shareholder returns through higher dividends and opportunistic share repurchases. However, Fitch believes Archrock would proactively divert capital towards debt repayment if leverage were expected to be sustained above its public leverage target of 3.0x to 3.5x. Appropriate Leverage: Fitch considers Archrock's leverage appropriate for the current rating. Leverage increased modestly to 3.8x in 2024, according to Fitch's calculation, due to its acquisition of TOPS in 3Q24. However, the company's commitment to maintaining leverage within its target range was evident by the meaningful equity consideration used to finance the acquisition. Fitch expects leverage to fall below 3.5x in 2025 and remain near the upper end of management's target range in 2026. Compression Market Dynamics: Growing natural gas production and strong demand from liquified natural gas export facilities continue to drive robust demand for contract compression. Limited spare capacity across the industry has supported Archrock's fleet utilization, which remained around 95% in 2024. These favorable market dynamics have allowed Archrock to implement price increases across its fleet and extend contract tenors. However, if the recent softness in crude oil prices persists, it could negatively impact production, potentially reducing demand for HP used for gas lift and associated gas related applications. Growing Geographic Concentration: Archrock's compression fleet is active in substantially all producing regions in the United States, providing reasonable protection against regional headwinds. Following Archrock's recent acquisitions, around half of the company's HP is located in the Permian Basin. Fitch expects the share of HP in the Permian will continue growing in the near-term, driven by the high proportion of new build compression being deployed across the basin, increasing concentration risk, albeit in a region Fitch views favorably. Blue Chip Customers: In 2024, Archrock's top 20 customers generated around two-thirds of the company's revenue, with no individual customer contribution more than 10%. Fitch estimates the weighted-average credit quality of these customers to be 'BBB+'. AROC has a strong track record of contract renewals, evidenced by the longstanding relationship it has with its top 10 customers, with an average relationship length exceeding 20 years. Parent Subsidiary Linkage: A parent-subsidiary relationship exists between AROC and APLP. Fitch determines AROC's standalone credit profile (SCP) based on consolidated metrics. Fitch believes the SCPs for AROC and APLP are the same concluding the analysis. However, if Fitch were to assess the SCPs of AROC and APLP as different, a high weighting would be placed on the existing cross-guarantees. Fitch does not typically assign separate IDRs to funding vehicles, exempting Archrock Partners Finance Corp from consideration under the parent-subsidiary framework. Peer Analysis Archrock's closest peers are fellow pure-play compression services companies Kodiak Gas Services, LLC (KGS; BB/Stable) and USA Compression Partners, LP (USAC; BB/Stable). All three companies generate cash flows from fixed-fee, take-or-pay contracts and are similar in terms of size, counterparty exposure and, to a lesser extent, geographic diversity. However, Archrock has a shorter weighted-average contract term than KGS and USAC due to a higher proportion of HP operating on month-to-month contracts. Archrock and KGS have similar leverage targets, with Archrock focused on maintaining leverage between 3.0x to 3.5x through cycles, while KGS aims to reduce leverage to 3.5x by YE 2025. Their capital allocation policies are also similar with both companies having committed to limiting capex and shareholder returns to available FCF. USAC does not have a public leverage target, and Fitch expects the company to borrow on its revolver to maintain distributions and support capex. Archrock's leverage in 2024 was 3.8x, which compares favorably to KGS (4.6x) and USAC (4.5x). Archrock's higher proportion of month-to-month contracts relative to KGS and USAC, is balanced by its lower leverage resulting in all three issuers having the same credit rating. Key Assumptions - Oil and natural prices consistent with Fitch's Price Deck; - Unit pricing and utilization moderate to align with production levels consistent with Fitch's Price Deck; - Total capital expenditure at the high-end of management's revised 2025 guidance; - Declining growth capital expenditure throughout the forecast horizon due to lower utilization of the existing fleet; - Excess FCF directed towards increasing shareholder returns; - Interest rates consistent with Fitch's Global Economic Outlook. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to a Negative Rating Action/Downgrade - EBITDA leverage expected to be above 4.5x on a sustained basis; - An acquisition or capital expenditure project that significantly increases business risk; - A shift in financial policy towards material debt funded shareholder returns. Factors that Could, Individually or Collectively, Lead to a Positive Rating Action/Upgrade - EBITDA leverage sustained below 3.0x; - A meaningful increase in the average contract life in conjunction with a significant increase in the percent of assets operating under term contracts longer than one month. Liquidity and Debt Structure As of March 31, 2025, and pro forma for the NGCS acquisition, Archrock had $4.8 million in cash on hand and $291 million of available borrowing capacity on its $1.1 billion asset-backed revolving credit facility due May 2028. Fitch does not expect the borrowing base to restrict the company's borrowing capacity at any point during the forecast period. Archrock's nearest maturity is April 2027. However, the asset-backed revolving credit facility has a springing maturity if any portion of the APLP 6.875% 2027 note remains outstanding in December 2026, or if any of the APLP 6.25% 2028 note remains outstanding in December 2027. Financial covenants require AROC maintain a minimum interest coverage of 2.50x, maximum senior secured leverage of 3.00x and maximum total leverage of 5.25x. Total leverage may increase to 5.50x temporarily if an acquisition occurs. Archrock was in compliance with these covenants as of March 31, 2025, and Fitch expects the company to remain in compliance over the forecast period. Issuer Profile Archrock, Inc. is a publicly traded company (NYSE: AROC) that provides compression services to upstream and midstream companies in the United States. Archrock specializes in contracting, operating and maintaining large horsepower compression equipment critical to producing, transporting and processing natural gas. 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 ----------- ------ -------- ----- Archrock Partners Finance Corp. senior unsecured LT BB Affirmed RR4 BB Archrock Partners, L.P. LT IDR BB Affirmed BB senior unsecured LT BB Affirmed RR4 BB Archrock, Inc. LT IDR BB Affirmed BB ART SUPPLY: SSG Served as Investment Banker in Asset Sale --------------------------------------------------------- SSG Capital Advisors, LLC, served as the investment banker to Art Supply Enterprises, Inc., d/b/a MacPherson's Art Supply, in the sale of all inventory and intellectual property assets to Blick Art Materials, LLC. The transaction was effectuated pursuant to Article 9 of the Uniform Commercial Code and closed in May 2025. MacPherson's is the largest provider of art and creative materials in North America. The Company offers a broad product suite sourced from hundreds of vendors worldwide. MacPherson's owns several proprietary brands, including Art Alternatives, Fredrix, and Hello, Artist!, and provides premium brand management and product development services. The Company's product suite, service offerings and distribution capabilities have positioned MacPherson's as a preferred partner to vendors, brands, and retailers in the art materials industry for over 40 years. However, the Company has faced challenges in recent years due to rising freight costs, supply chain disruptions, and liquidity constraints that have impacted its ability to invest in new inventory and product lines. SSG was retained by MacPherson's in March 2025 to explore the Company's strategic alternatives. SSG conducted a comprehensive marketing process that attracted interest from both strategic and financial parties, who engaged in a thorough review of the business and proprietary brand portfolio. Blick provided the best solution by acquiring the remaining inventory and select intellectual property assets through a private UCC sale. SSG's experience in the consumer products industry and its ability to manage complex stakeholder dynamics enabled the Company to maximize the value of its assets in an expedited timeframe. Family-owned and serving artists since 1911, Blick Art Materials is the largest provider of art supplies in the United States. The company is headquartered in Highland Park, Illinois, and operates over 60 retail stores nationwide. This strategic acquisition marks Blick's formal entry into the wholesale distribution channel and includes the launch of an independent platform to serve former MacPherson's customers and vendors. Other professionals who worked on the transaction include: * Baker A. Smith, Chief Restructuring Officer of MacPherson's, James Schwarz, Anthony Del Piano, Adam Kaplan and Bowen Smith of BDO USA, LLP, financial advisor to MacPherson's Art Supply; * Rachel E. Albanese, Thomas E. Gaynor, Steve Reil, David M. Riley and Sterling Chan of DLA Piper LLP, counsel to MacPherson's Art Supply; * Alan D. Leib, Aaron L. Hammer, Keith H. Berk and Lauren E. Pierotti of Kilpatrick Townsend & Stockton LLP, counsel to Blick Art Materials; and * Jordan Klein, James Waters, Gregory Gartland and Amila Golic of Winston & Strawn LLP, counsel to the senior secured lender. About SSG Capital Advisors SSG Capital Advisors is an independent boutique investment bank that assists middle-market companies and their stakeholders in completing special situation transactions. It provides its clients with comprehensive investment banking services in the areas of mergers and acquisitions, private placements, financial restructurings, valuations, litigation, and strategic advisory. SSG has a proven track record of closing over 450 transactions in North America and Europe and is a leader in the industry. AZZ INC: Fitch Alters Outlook on 'BB' LongTerm IDR to Positive -------------------------------------------------------------- Fitch Ratings has affirmed AZZ Inc.'s (AZZ) Long-Term Issuer Default Rating (IDR) at 'BB' and revised the Rating Outlook to Positive from Stable. Fitch has also affirmed AZZ's first-lien senior secured term loan and RCF at 'BBB-' with a Recovery Rating of 'RR1'. The ratings reflect AZZ's leading market share in hot-dip galvanizing and coil coating solutions, low exposure to commodity prices, commitment to deleveraging and variable cost structure. The ratings also consider its exposure to cyclical end-markets. Avail Infrastructure Solutions (Avail) is a joint venture of AZZ and Fernweh Group LLC. On May 1, 2025, Avail completed the sale of its electrical enclosures, switchgear, and bus systems businesses to nVent Electric plc. The Positive Outlook reflects the potential for AZZ to significantly deleverage using its share of the sale proceeds. The Outlook could be revised to Stable if Fitch believes EBITDA leverage will be sustained between 2.5x and 3.5x. Key Rating Drivers Improving Capital Structure: Fitch anticipates that AZZ will use a meaningful portion of its share of the proceeds from the Avail sale to accelerate debt paydown, resulting in leverage comfortably within the company's net leverage target range of 1.5x-2.5x. As of Feb. 28, 2025, Fitch calculates EBITDA net leverage at 2.6x. The company anticipates its share of the net proceeds from the sale to be about $200 million. Aluminum Coil Coating Line: Fitch expects the new facility to start generating positive FCF near term. AZZ reports that its remaining capex of about $8 million will be spent by May 31, 2025, there is a long-term contract for 75% of capacity, and the facility has started to ship product. AZZ expects this project to generate annual run-rate sales of approximately $60 million in the fiscal year ending Feb. 28, 2027, with run-rate margins above current Precoat Metals segment margins. Market Leader in Niche Markets: AZZ benefits from its strong position in niche markets and the proximity of its facilities to an established and diversified customer base. It is also the leader in independent hot-dip galvanizing and metal coil coating solutions, with market shares of 28% and 23%, respectively. The company's businesses have some barriers to entry created by its value-added processing capabilities and sticky customer relationships. Fitch believes that strong market share positions in core markets lead to higher and more stable operating margins through-the-cycle. Flexible Operating Profile: AZZ's cost structure is approximately 75% variable. Along with its cost pass-through/tolling model, moderate capital intensity and strong profitability, this reduces earnings downside from weak operating environments, all else being equal. Exposure to Cyclical End-Markets: The company serves the highly cyclical construction (57% of FY25 sales), transportation (9%), and industrial (8%) end-markets as well as the less cyclical consumer and utilities end markets. Fitch believes the range of the company's services and market position allow earnings to be fairly resilient during soft patches. Aggregate adjusted EBITDA for the Metals Coatings and Precoat Metals segments during the pandemic was virtually flat with the prior period. Balanced Approach to Capital Allocation: Fitch expects AZZ's management to pursue small, opportunistic bolt-on merger and acquisitions (M&A), without a durable impact to the company's capital structure. In addition, the company resumed share repurchases pursuant to its $100 million share repurchase program with about $53 million remaining. Fitch expects AZZ to maintain a balanced approach to investing for growth and providing shareholder returns while maintaining balance sheet strength. Peer Analysis AZZ is modestly larger in through-the-cycle EBITDA than Kaiser Aluminum Corporation (BB-/Stable). It has a generally higher margin than specialty metals producers Kaiser Aluminum and Carpenter Technology Corporation (BB+/Stable), both of which have a higher exposure to aerospace. AZZ is more profitable, and its forecast EBITDA is moderately larger than that of metal service center Ryerson Holding Corporation (BB/Stable). AZZ's current EBITDA leverage is higher than 'BB' peers but lower than Kaiser Aluminum. Fitch expects AZZ to continue deleveraging. Key Assumptions - Secured overnight financing rate assumptions: FY26 at 3.95%, FY27 and FY28 at 3.6% and FY29 at 3.7%; - Revenues grow at about 3% per year on average; - New aluminum coil coating plant ramping up for full production by the end of FY26; - EBITDA margins stable at about 21%; - Capex returning to normalized levels in FY27 and thereafter; - One small bolt-on acquisition in FY26 and $60 million spent on bolt-on acquisitions in each of FY27 and FY28 in the metal coatings segment similar to historical levels; - Debt repayment prioritized in FY 26; - Dividends maintained. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage sustained above 3.5x; - Sustained EBITDA margins below 15%; - Increase in EBITDA margin volatility due to increased exposure to cyclical markets. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage sustained below 2.5x; - Sustained EBITDA margins above 20%; - Material increase in size, scale or diversification. Liquidity and Debt Structure As of Feb. 28, 2025, AZZ had approximately $1.5 million of cash on hand, and $354.6 million availability under its $400 million RCF due 2027. Fitch expects the company to generate an average annual FCF of about $180 million over FY26-FY29. Fitch expects AZZ to deploy a significant portion of its FCF and asset sales proceeds towards debt repayment to be well within its net leverage target range of 1.5x-2.5x by the end of FY 2026. The revolver is subject to a maximum net leverage financial covenant of 4.5x. There are no amortizing payments under the term loan following prepayments. Issuer Profile AZZ Inc. is the leading independent provider of hot-dip galvanizing and coil coating solutions to a broad range of end-markets, predominantly in North America. 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 ----------- ------ -------- ----- AZZ Inc. LT IDR BB Affirmed BB senior secured LT BBB- Affirmed RR1 BBB- BALKAN EXPRESS: Seeks to Sell Hyundai Vehicles ---------------------------------------------- Balkan Express, LLC, and its affiliate, Balkan Logistics, LLC, seek permission from the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, to sell Hyundai Vehicles, free and clear of liens, interests, and encumbrances. The Debtors provide trucking, hauling, and logistics services principally in Texas and the Western region of the United States. The Debtors own hundreds of vehicles and trailers that the Debtors use in the ordinary course of their operations. Although a substantial portion of the Debtors' fleet consists of trucks and trailers that the Debtors depend on to operate, with fluctuations in the market and the changes in the demand for the Debtors services, certain of the Debtors' equipment invariably becomes unnecessary for the Debtors' continued operations. Management of the Debtors continually monitors their fleet and has determined that the following vehicles are unnecessary for the Debtors' ongoing operations and, accordingly, seek authorization to sell such vehicles. 2017 Hyundai Dry Van 3H3V532C2HT018050 $13,000 2017 Hyundai Dry Van 3H3V532C3HT018008 $12,000 2018 Hyundai Dry Van 3H3V532C6JT437010 $13,000 2018 Hyundai Dry Van 3H3V532C5JR160041 $13,000 The Debtors have negotiated the sale of the Hyundai Vehicles with Superior Trailer Sales Company as proposed buyer The Debtors believe that selling the Hyundai Vehicles represents a reasonable exercise of sound business judgment and is in the best interests of the Debtors' estates. The Debtors have no need for Hyundai Vehicles and monetizing unnecessary equipment provides the Debtors' with highly beneficial liquidity, and, conversely, maintaining unnecessary equipment is not in the best interest of the Debtors' estates.. The Proposed Buyer is one of the largest trailer dealerships in the US with sales locations across Texas, Oklahoma and Arkansas. The Debtors intend to use any proceeds from the sale of the Hyundai Vehicles to pay down the debt owing to Compass Funding Solutions as Compass is in possession of the titles of each of the Hyundai Vehicles. The Debtors further assert that consummating the sale of the Hyundai Vehicles on a private basis is appropriate in light of the facts and circumstances of the Chapter 11 case and the reality of the robust marketplace for the sale of comparable equipment against which the Debtors and other parties in interest may benchmark the sale processes. About Balkan Express, LLC Balkan Express LLC is a transportation and logistics company based in Fort Worth, Texas, offering full truckload and less-than-truckload freight services across the 48 contiguous U.S. states. The Company operates a fleet of over 150 trucks and 250 trailers and offers 24/7 dispatch support with GPS tracking. Balkan Express LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-41544) on April 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million. The Debtor is represented by Joshua N. Eppich, Esq. at BONDS ELLIS EPPICH SCHAFER JONES LLP. BAMBI HEALTH: Updates Restructuring Plan Disclosures ---------------------------------------------------- Bambi Health, Inc., submitted a Disclosure Statement for First Amended Plan of Reorganization dated May 2, 2025. Under the Plan, all existing Equity Interests will be cancelled, and the Debtor will issue new Equity to its lenders in exchange for a release of the debt held by those lenders. The Debtor will also devote a significant amount of its held assets toward the payment of Creditors. The Plan will be funded with the funds that are not for the payment of expenditures necessary for the continuation, preservation, or operation of the business of the Debtor. The Plan provides for payment of Administrative Expenses and Priority Tax Claims in accordance with the Bankruptcy Code, and projects payment to Allowed General Unsecured Claims. Since the Petition Date, the Debtor has remained cashflow neutral, and has made all postpetition payroll, tax, insurance and other essential vendor payments. The Debtor's sales increase monthly, and the Debtor believes that it will be able to operate cashflow positive soon without the need for additional funding. The Debtor commenced this chapter 11 case to implement the restructuring through the Plan. Like in the prior iteration of the Plan, the Debtor estimates that General Unsecured Claims total approximately $77,585.55. Except to the extent that a Holder of an Allowed General Unsecured Claim agrees to a different treatment, the Debtor proposes to pay $50,000.00 to the holders of Allowed General Unsecured Claims, in cash, on a pro rata basis on the Effective Date or as soon as practicable thereafter. The treatment and consideration to be received by holders of Class 2 Allowed Claims shall be in full settlement, satisfaction, release and discharge of their respective Claims and Liens. Class 3 consists of Holders of Equity Interests. Existing Equity Interests shall be discharged, cancelled, released and extinguished, and holders thereof shall not receive or retain any distribution under the Plan on account of such Equity Interests. Unless otherwise set forth in the Plan, pursuant to section 1123 of the Bankruptcy Code and Bankruptcy Rule 9019, and in consideration for the classification, distributions, releases, and other benefits provided under the Plan, upon the Effective Date, the provisions of the Plan shall constitute a good-faith compromise and settlement of all Claims and Equity Interests and controversies resolved pursuant to the Plan. The entry of the Confirmation Order shall constitute the Bankruptcy Court's approval of the compromise or settlement of all such Claims, Equity Interests, and controversies, as well as a finding by the Bankruptcy Court that such compromise or settlement is in the best interests of the Debtor, its Estate, and Holders of Claims and Equity Interests and is fair, equitable, and is within the range of reasonableness. Except as otherwise provided in the Plan, the Debtor shall continue to exist after the Effective Date as the Reorganized Debtor in accordance with the laws of the State of Delaware and pursuant to the Debtor's internal governance documents, as may be amended, for the purposes of satisfying its obligations under the Plan and the continuation of its business. On or after the Effective Date, the Reorganized Debtor, in its discretion, may take such action as permitted by applicable law and its internal governance documents, as may be amended, as the Reorganized Debtor may determine is reasonable and appropriate. A full-text copy of the Disclosure Statement dated May 2, 2025 is available at https://urlcurt.com/u?l=jkll02 from PacerMonitor.com at no charge. Counsel to the Debtor: Kevin S. Mann, Esq. Cross & Simon, LLC 1105 North Market Street, Suite 901 Wilmington, DE 19801 Tel: (302) 777-4200 Fax: (302) 777-4224 About Bambi Health Bambi Health, Inc., is a Delaware corporation having been incorporated on April 14, 2022. Bambi Health filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case No. 25-10384) on March 4, 2025. At the time of filing, the Debtor estimated $50,001 to $100,000 in assets and $100,001 to $500,000 in liabilities. Judge Laurie Selber Silverstein presides over the case. The Debtor is represented by Kevin S. Mann, Esq., of Cross & Simon, LLC. BEBCO ENVIRONMENTAL: Unsecureds Will Get 1% of Claims in Plan ------------------------------------------------------------- Bebco Environmental Controls Corporation filed with the U.S. Bankruptcy Court for the Southern District of Texas a Second Amended Small Business Plan of Reorganization under Subchapter V dated May 2, 2025. The Debtor was organized on December 12, 2012 and commenced operations in January 2013. Bebco's main business is the manufacturing and installation of a complete range of industrial HVAC, Pressurization & Room Air Filtration systems. Bebco also conducts a separate business under the assumed name, Best Purging Systems Corporation, which manufactures and sells industrial electrical enclosure pressurization and purging units ("Purging Systems Business"). Management of Bebco have decided to sell Bebco's main business to a company located in Houston, Texas known as Custom Controls Company ("CCC"). Management looked for a good acquisition candidate and found CCC after considering several options. However, CCC did not desire to acquire all of the assets of the Debtor. Thus, Debtor decided that an auction of a substantial portion of the remaining assets would be appropriate and in the best interests of the bankruptcy estate and its creditors. On August 31, 2024, the Debtor filed a Motion to (a) Approve Employment of Auctioneer; (b) Approve the Auction of Certain Assets of The Debtor Free and Clear Of Liens, Claims and Encumbrances, and (c) Approve Related Relief ("Auction Sale Motion"). The Auction Sale Motion was approved on September 9, 2024 (the "Auction Sale Order"). The auction occurred on September 25, 2004, and the Auction Sale Assets were sold for $229,385.00, with the Debtor netting $194,649.20 after deductions for costs of the auction as approved by the Bankruptcy Court. On September 5, 2024, the Debtor filed a Motion to (a) Approve Entry into Asset Purchase Agreement, (b) Schedule Hearing to Approve, the Sale of Debtor's Assets, (c) Approve Form and Manner of Notice Thereof, (d) Approve the Sale of Assets Free and Clear of Liens, Claims and Encumbrances, and (e) Approve Related Relief (the "CCC Sale Motion"). The CCC Sale Motion was approved on September 20, 2024, and a closing occurred on October 5, 2024, resulting in net sales proceeds of $364,031.29, of which $114,031.29 was paid at closing and the remaining $250,000.00 will be paid by the end of 2024, when it is expected that CCC will have implemented its computer system that will allow the transfer of the intellectual property. This Plan of Reorganization proposes to pay creditors of Bebco Environmental Controls Corporation (the Debtor) from: (1) net proceeds from the sale of the Auction Sale Assets; (2) net proceeds from the sale of the CCC Sale Assets; (3) net proceeds from the sale of Unauctioned Assets, and (4) net proceeds from the operation of the Debtor's Purging Business. Class 4 consists of certain general, unsecured claims representing certain critical vendors of the continuing business of Best Purging Systems. Holders of Allowed Claims in Class 4 have been paid all of their allowed claims either from the Combined Net Sales Proceeds or by Mike Baucom. To the extent any claims in Class 4 remain unpaid at the Confirmation Date, such allowed claims will be paid all their claims within 15 days of the Confirmation Date. Additionally, all contractually due late charges and interest associated with such Allowed Claims will be paid in full within 15 days of the Confirmation Date. To the extent Mike Baucom paid all, or part, of any Allowed Claim in Class 4 from his personal assets or funds between the Petition Date and the Confirmation Date, he shall be subrogated to such amount of any Allowed Claim in Class 4 upon: (1) the filing of a Claim, with supporting documentation; (2) allowing any Party in Interest a period of 30 days to object to the said Claim; and (3) the entry of a final order by the Bankruptcy Court that resolves any objection to the Claim. Class 5 consists of General Unsecured Claims. Holders of Allowed Claims in Class 5 will be paid pro rata shares of at least $6,079.84 in the 60th month following the confirmation of the Plan. Based upon the treatment of Allowed Claims listed in EXHIBIT C, it is estimated that holders of allowed claims in Class 5 will receive one percent of the value of their Allowed Claims as of the Petition Date. In the event the allowed claims in Classes 1 and 2 are paid prior to the 60th month following the Confirmation Date, the interest payments for the remaining months of the Plan, will be applied to pay allowed claims in Class 5 in pro rata shares. This Class is impaired. Class 6 consists of the equity interests of Mike Baucom, who owns 100% of the common stock of the Debtor. As a result of confirmation of this Plan, no new stock will be issued, and no other equity investment by a third party is anticipated. Mike Baucom will retain that common stock issued to him. Until all Allowed Claims are paid in accordance with this Plan, such common stock held by Mike Baucom as of the Confirmation Date may not be sold, transferred, or redeemed as treasury shares by any person or entity subject to this Plan, and to the extent such stock may be transferred to another person or entity by operation of any federal or state law, such successor shall be bound to the terms of this Plan in the same manner as Mike Baucom as of the Confirmation Date. Until all Allowed Claims are paid in accordance with this Plan, no dividends or other distributions, except as allowed in the treatment of Allowed Claims in Class 4, will be paid to any holder of the Reorganized Debtor's common stock. Class 6 is impaired. By the Confirmation Date, the Debtor will have accumulated $289,000.00 from the Combined Net Sales Proceeds from the sale of the CCC Sale Assets and the sale of the Auction Sale Assets as previously approved by the Court less disbursements for adequate protection payments to the IRS and U.S. Small Business Administration, rent due to the Debtor's former landlord, and payments to creditors in Class 4. As shown in projections in EXHIBIT E, these proceeds will be paid: (1) to creditors with priority claims under Section 507(a)(8) of the Bankruptcy Code so that such priority claims will be paid in full, and (2) the remaining proceeds to holders of Allowed Claims in Classes 1, 2, and 5 in pro rata amounts based upon the total of Allowed Claims in the said classes. The remaining source of funds for distribution will be the projected net income from the remaining business of the Debtor, operating as Best Purging Systems. A full-text copy of the Second Amended Plan dated May 2, 2025 is available at https://urlcurt.com/u?l=5G3xQ9 from PacerMonitor.com at no charge. Counsel for the Debtor: Leonard H. Simon, Esq. William P. Haddock, Esq. Pendergraft & Simon, LLP 2777 Allen Parkway, Suite 800 Houston, TX 77019 Telephone: (713) 528-8555 Facsimile: (713) 868-1267 About Bebco Environmental Controls Bebco Environmental Controls Corporation offers a complete range of industrial HVAC, pressurization & room air filtration solutions for electrical enclosures, shelters & buildings in oil refineries, chemical manufacturing plants, offshore rigs & other facilities with hazardous electrical classified areas & corrosive environments. Bebco Environmental Controls filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-80258) on Aug. 30, 2024. In the petition signed by Michael K. Baucom, president & CEO, the Debtor disclosed up to $100,000 in assets and up to $10 million in liabilities. Leonard H. Simon, Esq., at Pendergraft & Simon, LLP, is the Debtor's bankruptcy counsel. BEELINE HOLDINGS: CAO Tiffany Milton Holds 491 Direct Shares ------------------------------------------------------------ Tiffany Milton, Chief Accounting Officer in Beeline Holdings, Inc., disclosed in a Form 3 filed with the U.S. Securities and Exchange Commission that as of April 25, 2025, she beneficially owned 491 shares of Common Stock directly, 3 shares of Common Stock indirectly through IRA, 5 shares of Common Stock indirectly through Roth IRA, and 10 shares of Common Stock indirectly through her daughter. A full-text copy of Ms. Milton's SEC Report is available at: https://tinyurl.com/4xt6aumh About Beeline Holdings Beeline Holdings f/k/a Eastside Distilling, Inc. is a forward-thinking mortgage lender leveraging cutting-edge technology to simplify and streamline the home financing process. The company is committed to providing a seamless, customer-centric experience while expanding its presence in the mortgage industry. Boca Raton, Florida-based Salberg & Company, P.A., the Company's auditor since 2024, issued a "going concern" qualification in its report dated April 15, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has incurred recurring losses and negative cash flows from operations since its inception, has a significant working capital deficit, and is dependent on debt and equity financing. These matters raise substantial doubt about the Company's ability to continue as a going concern. As of Dec. 31, 2024, the Company had $66.5 million in total assets, $17.5 million in total liabilities, and a total stockholders' equity of $49 million. BEN FACKLER: Seeks Chapter 11 Bankruptcy in Oregon -------------------------------------------------- On May 15, 2025, Ben Fackler Construction Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Oregon. According to court filing, the Debtor reports $5,832,743 in debt owed to 100 and 199 creditors. The petition states funds will be available to unsecured creditors. About Ben Fackler Construction Inc. Ben Fackler Construction Inc., d/b/a Fackler Construction Company, provides commercial and residential construction services in the Portland, Oregon metro area, including McMinnville and nearby communities. The Company offers a range of services from remodeling to custom design -build projects. Founded and led by Ben Fackler for over 25 years, the business operates as a family-run enterprise. Ben Fackler Construction Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Or. Case No. 25-31621) on May 15, 2025. In its petition, the Debtor reports total assets of $641,841 and total liabilities of $5,832,743. Honorable Bankruptcy Judge Peter C. Mckittrick handles the case. The Debtors are represented by Keith Y. Boyd, Esq. at KEITH Y. BOYD, P.C. BEST CHEER: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Best Cheer Stone, Inc. 3190 E. Miraloma Ave. Anaheim, CA 92806 Business Description: Best Cheer Stone, Inc. supplies natural and engineered stone products, including granite, marble, and quartzite, for residential and commercial use. Headquartered in Anaheim, California, the Company operates a vertically integrated business with global quarries and manufacturing facilities. Established in 1994, it also offers prefabricated countertops, cabinets, and related home improvement materials. Chapter 11 Petition Date: May 19, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-11344 Judge: Hon. Scott C Clarkson Debtor's Counsel: Robert P. Goe, Esq. GOE FORSYTHE & HODGES LLP 17701 Cowan Lobby D, Suite 210 Irvine, CA 92614 Tel: (949) 798-2460 E-mail: rgoe@goeforlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Yanlin "Kathy" Xu 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/HZMLFAI/Best_Cheer_Stone_Inc__cacbke-25-11344__0001.0.pdf?mcid=tGE4TAMA BLACKFORD ATM: Founder Faces Fraud Allegations in Investor Lawsuit ------------------------------------------------------------------ Randi Love of Bloomberg Law reports that multiple investment funds have sued the bankrupt founder of an ATM network operator, alleging he misappropriated their investments and acted with malicious intent. In a complaint filed on Thursday, May 15, 2025, in the U.S. Bankruptcy Court for the District of New Jersey, the funds claim that Daryl Fred Heller, CEO of the firm behind Blackford ATM Ventures Fund D LLC, left roughly 2,700 investors across 25 funds with "worthless investments and far fewer ATM assets" than they were promised. About Blackford ATM Ventures Blackford ATM Ventures is an ATM operator based in Pennsylvania. Silverview Credit Partners LP sought involuntary Chapter 7 petition against Blackford under the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10112) on January 21, 2025. Honorable Bankruptcy Judge Mary F. Walrath handles the case. BLINK CHARGING: Considers Restructuring, to Cut Global Workforce ---------------------------------------------------------------- Susanne Barton of Bloomberg News reports that Blink Charging has announced a restructuring initiative that will cut its global workforce by around 20%. The company says the decision is intended to streamline operations, boost flexibility, and better align its resources with strategic goals. The restructuring is projected to deliver more than $11 million in annualized savings. Blink expects to incur related costs of between $1 million and $1.5 million, covering severance payments, employee benefits, and other restructuring expenses, according to Bloomberg News. The workforce reduction is expected to be finalized by the end of the third quarter, the report states. About Blink Charging Based in Miami Beach, Florida, Blink Charging Co. (OTC: CCGID) f/k/a Car Charging Group Inc. -- http://www.CarCharging.com/-- is a manufacturer, owner, operator, and provider of electric vehicle ("EV") charging equipment and networked EV charging services in the rapidly growing U.S. and international markets for EVs. Blink offers residential and commercial EV charging equipment and services, enabling EV drivers to recharge at various locations. Blink's principal line of products and services is its Blink EV charging networks and Blink EV charging equipment, also known as electric vehicle supply equipment ("EVSE"), and other EV-related services. Blink Charging reported a net loss of $203.69 million in 2023, a net loss of $91.56 million in 2022, a net loss of $55.12 million in 2021, a net loss of $17.85 million in 2020, a net loss of $9.65 million in 2019, and a net loss of $3.42 million in 2018. Blink Charging reported a net loss of $37.23 million for the six months ended June 30, 2024. BUFFALO HOUSE: 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 Buffalo House Liquor and Wines, LLC. 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 Buffalo House Liquor Buffalo House Liquor and Wines, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code ((Bankr. W.D.N.Y. Case No. 25-10513) on May 5, 2025, with $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Judge Carl L. Bucki oversees the case. Robert B. Gleichenhaus, Esq., at Gleichenhaus, Marchese & Weishaar, P.C. represents the Debtor as legal counsel. BUTLER GROUP: Seeks Chapter 11 Bankruptcy in Columbia ----------------------------------------------------- On May 14, 2025, Butler Group LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Columbia. According to court filing, the Debtor reports $2,163,145 in debt owed to 1 and 49 creditors. The petition states funds will not be available to unsecured creditors. About Butler Group LLC Butler Group LLC owns a real estate property at 1601 North Portal Drive NW, Washington, D.C., with an estimated value of $1.2 million. Butler Group LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.C. Case No. 25-00181) on May 14, 2025. In its petition, the Debtor reports total assets of $1,275,339 and total liabilities of $2,163,145. The Debtors are represented by William C. Johnson, Jr., Esq. at THE JOHNSON LAW GROUP, LLC. CAN’T COOK: Hearing on Bid to Use Cash Collateral Set for May 28 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Florida, Panama City Division is set to hold a final evidentiary hearing on May 28 to consider Can't Cook Right, LLC's motion to use cash collateral. The company previously obtained an order authorizing interim use of cash collateral to pay the expenses set forth in its budget pending a final evidentiary hearing. Can't Cook Right has minimal primary secured obligations which consist of a loan through point-of-sale system Square in an amount of $40,079.08; and a variety of merchant cash advance (MCA) lenders who may attempt to claim a lien on cash collateral despite not having properly filed UCC-1 financing statements. Other lenders including Global Merchant Cash, Inc and an unknown company represented by CT Corporation Systems filed UCC-1 financing statements. Can't Cook Right does not believe these lenders have a lien on the cash collateral. As of the petition date, the company's cash collateral was comprised of cash in the amount of $8,117.242. About Can't Cook Right Can't Cook Right, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-50074) on April 21, 2025, listing up to $50,000 in assets and between $100,001 and $500,000 in liabilities. The Debtor is represented by: Michael Austen Wynn, Esq. Wynn & Associates PLLC Tel: 850-303-7800 Email: michael@wynnlaw-fl.com CBRM REALTY: Case Summary & 30 Largest Unsecured Creditors ---------------------------------------------------------- Lead Debtor: CBRM Realty Inc. 100 Franklin Square Drive, Suite 401 Somerset NJ 08873 Business Description: CBRM Realty is a Somerset, New Jersey-based real estate investment firm. Chapter 11 Petition Date: May 19, 2025 Court: United States Bankruptcy Court District of New Jersey Ten affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- CBRM Realty Inc. (Lead Case) 25-15343 RH Lakewind East LLC 25-15344 RH Windrun LLC 25-15345 RH Copper Creek LLC 25-15346 RH New Orleans Holdings MM LLC 25-15347 RH New Orleans Holdings LLC 25-15348 RH Chenault Creek LLC 25-15349 Kelly Hamilton Apts MM LLC 25-15350 Crown Capital Holdings LLC 25-15351 Kelly Hamilton Apts LLC 25-15352 Judge: Hon. Michael B Kaplan Debtors' Bankruptcy Counsel: Andrew Zatz, Esq. Barrett Lingle, Esq. WHITE & CASE LLP 1221 Avenue of the Americas New York, New York 10020 Tel: (212) 819-8200 Email: azatz@whitecase.com barrett.lingle@whitecase.com - and - Gregory F. Pesce, Esq. Adam Swingle, Esq. WHITE & CASE LLP 111 South Wacker Drive Chicago, Illinois 60606 Tel: (312) 881-5400 E-mail: gregory.pesce@whitecase.com adam.swingle@whitecase.com Debtors' Co-Bankruptcy Counsel: Kenneth A. Rosen, Esq. KEN ROSEN ADVISORS PC 80 Central Park West New York, New York 10023 Tel: (973) 493-4955 E-mail: ken@kenrosenadvisors.com Debtors' Financial Advisor: ISLANDDUNDON LLC Estimated Assets (on a consolidated basis): $100 million to $500 million Estimated Liabilities (on a consolidated basis): $100 million to $500 million The petitions were signed by Elizabeth A. LaPuma independent fiduciary. A full-text copy of the Lead Debtor's petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/65ZYQSY/CBRM_Realty_Inc__njbke-25-15343__0001.0.pdf?mcid=tGE4TAMA Consolidated List of Debtors' 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Customers Bank Unsecured Notes $41,500,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 2. Federated Insurance Unsecured Notes $32,000,000 Companies Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 3. Cincinnati Financial Unsecured Notes $29,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 4. Spano Investor LLC Judgment Creditor $22,360,805 787 7th Avenue, 13th Floor New York, New York 10019 Attn: Adam C. Rogoff Tel: (212) 715-9285 Email: ARogoff@kramerlevin.com 5. Sagicor Life Insurance Unsecured Notes $16,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 6. AQS LLC Unsecured Notes $12,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 7. Adams Bank & Trust Unsecured Notes $12,000,000 Attn: Bruce Morgan Email: bruce@galacticlitigation.com 8. CKD Funding LLC Mortgage $10,927,319 Attn: William A. Goldman Tel: (212) 745-9546 Email: william.goldman@afslaw.com 9. Bar Harbor Bank & Trust Unsecured Notes $9,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 10. CFBank Unsecured Notes $7,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 11. Thompson Investment Unsecured Notes $7,000,000 Management Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 12. NexBank Unsecured Notes $7,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 13. LL Funds Unsecured Notes $4,750,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 14. Cleveland International Fund Mortgage $4,500,000 Attn: Adam Blackman Tel: (216) 245-0609 Email: Blackman@Cleveland internationalfund.com 15. First Dakota Financial Unsecured Notes $3,000,000 Corporation Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 16. NFC Investments Unsecured Notes $3,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 17. Calamos Advisors LLC Unsecured Notes $3,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 18. Citizens State Bank Unsecured Notes $2,500,000 (Ontonagon) Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 19. American Financial Group (AMM) Unsecured Notes $2,500,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 20. Gulf Coast Bank & Trust Company Unsecured Notes $2,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 21. NexAnnuity Unsecured Notes $2,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 22. Strada Education Network Unsecured Notes $1,500,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.co 23. Cattaraugus County Bank Unsecured Notes $1,500,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 24. AmeriServ Financial, Inc. Unsecured Notes $1,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 25. Jacques de Saint Phalle Unsecured Notes $1,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 26. John Beckelman Unsecured Notes $1,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 27. LAGSP LLC Services $821,000 4507 Pond Hill Road San Antonio, Texas 78231 Attn: Justin Utz Tel: (210) 733-6133 Email: JUtz@lynd.com 28. Lynd Management Group Services $544,734 4507 Pond Hill Road San Antonio, Texas 78231 Attn: Justin Utz Tel: (210) 733-6133 Email: JUtz@lynd.com 29. Verimore Bank/First Unsecured Notes $500,000 Missouri Bank Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 30. VR Asset Management Unsecured Notes $500,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com CD&R SMOKEY: S&P Lowers ICR to 'B-' on Operating Underperformance ----------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on Knoxville, Tenn.-based CD&R Smokey Buyer Inc. (PetSafe) to 'B-' from 'B' and its issue-level rating on its senior secured notes to 'B-' from 'B'. S&P's '3' recovery rating on the notes is unchanged, indicating our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default. The stable outlook reflects S&P's expectation that PetSafe will stabilize its EBITDA and cash flow through cost reductions (particularly in marketing) as it implements its operating strategy to restore sales growth. In fiscal year 2024, PetSafe underperformed S&P's expectations, causing its credit metrics to breach its downside triggers. The downgrade reflects the company's deteriorating credit profile, including the spike in its S&P Global Ratings-adjusted leverage to 7.4x and EBITDA interest coverage of 1.7x as of the end of fiscal year 2024, primarily due to its weak operating performance in the second half of the year. PetSafe's sales to its key online and retail customers declined significantly in the fourth quarter due to higher-than-expected inventory de-stocking, coupled with its inability to realize anticipated improvement in its sales growth from the planned increases in its marketing spending. In particular, the company's online sales faced increased competition from new entrants in waste management offering lower-priced products. These factors led to a nearly 10% decline in PetSafe's revenue and an 18% contraction in its S&P Global Ratings-adjusted EBITDA year over year in fiscal year 2024. The company's underperformance has prompted management to explore strategic changes to remedy its sales declines and preserve its EBITDA. These strategic shifts will likely include higher utilization of analytics to increase its focus on underserved categories with market share white space, as well as targeted advertising for optimal marketing spending in geographic areas with low rates of yard fencing to bolster its invisible fence sales. Management is also exploring software to increase the competitiveness of its bids on Amazon. The company's shift toward more-efficient marketing strategies may take time to yield results, which increases the risk of continued underperformance. As such, S&P expects PetSafe's top-line revenue will remain pressured and decline by the low-to-mid-single digit percent range in fiscal year 2025. The company's efforts to improve its marketing efficiency and reduce its operating costs could mitigate EBITDA deterioration but remains uncertain. S&P said, "We expect PetSafe's efforts to increase the effectiveness of its marketing and elevate its focus on profit and loss efficiencies and selling, general, and administrative (SG&A) expense audits could help it stabilize its EBITDA, though we expect its leverage will remain elevated above 7x. The company's plans to reduce its marketing spending to 6% of sales in fiscal year 2025, from 8% of sales in fiscal year 2024, will likely provide it with material savings and aid it in preserving its EBITDA. Furthermore, we forecast the SG&A audits, along with the reduction in its marketing expense, will reduce its SG&A costs by 5%. That said, we believe the risk for a continued underperformance is high, given that it will likely take time for PetSafe's strategy to take hold and lead to a material improvement in its profitability." PetSafe's supply chain is highly outsourced to China and Vietnam, thus the U.S.' recent tariff policies will likely pressure its input costs and slow its recent gross margin performance momentum. S&P said, "We expect the company will execute certain tariff mitigation strategies, including continuing to move production to Vietnam, which is an effort that has been a strategic priority for management for some time. This will likely reduce the impact of tariffs on its performance, given that imports from Vietnam to the U.S. face tariffs of just 10%, which compares with the all-in tariffs of 30% on imports from China. However, the tariffs on imports from Vietnam could increase after the expiration of the 90-day reprieve, which would further weaken PetSafe's operating performance. Moreover, we believe the company will be able to negotiate material tariff cost sharing agreements with its suppliers, which could mitigate some of the tariff impacts (though the risks to its margin remain). We believe the upside for the company's gross margin is currently capped, particularly following the material tailwinds it experienced in 2024 from lower input and freight costs." The company's interest coverage will remain weak following the October 2024 refinancing of its senior secured notes with a 9.5% coupon. S&P said, "We expect PetSafe's interest coverage will remain weak due to the higher interest expense burden from its new capital structure. We believe the company will need to increase its EBITDA relative to its 2024 levels to sustain interest coverage of more than 1.5x. Assuming it can mitigate the expected tariff costs, we anticipate PetSafe would generate modestly positive free operating cash flow (FOCF), which follows the $7 million deficit it generated in fiscal year 2024, due to its planned cost reductions. Under our base-case forecast, we assume the company will generate FOCF of about $5 million in fiscal year 2025, increasing to $12 million in fiscal year 2026. Notwithstanding our expectation for positive FOCF generation, we do not consider PetSafe's weak interest coverage to be consistent with the 'B' rating. Therefore, a further underperformance relative to our base case could prevent the company from generating positive FOCF and compromise its ability to service its debt if it is unable to execute a successful implementation of its strategic plan." S&P said, "The stable outlook reflects our expectation that PetSafe will stabilize its EBITDA and cash flow through cost reductions (particularly in marketing) as it implements its strategy to restore sales growth. We expect it will take time for the company to realize the benefits from its strategic efforts and expect its leverage will remain elevated above 7x as it generates a modest FOCF deficit in fiscal year 2025. That said, the company's liquidity remains adequate, given that it does not face any near-term maturities (following the October 2024 refinancing) or material restrictions on its working capital borrowings, which we believe will provide it with time to implement its new growth strategy." S&P could lower its ratings on PetSafe if it does not perform in-line with its base case such that it sustains EBITDA interest coverage of below 1.5x or generates persistent FOCF deficits. This could occur if: -- Consumer discretionary income remains pressured, leading to a weak point-of-sale (POS) performance, and cheaper competition in the marketplace effectively undercuts PetSafe in its digital business; -- Margins contract due to higher input costs, possibly exacerbated by unfavorable changes to U.S. tariff policy, that it is unable to mitigate; -- Renewed supply chain disruptions and a macroeconomic slowdown lead to a higher-than-expected working capital build, causing it to generate negative FOCF; or -- The company is unable to effectively take costs out of the business to preserve its EBITDA as top-line revenue remains challenged. S&P could raise its ratings on PetSafe if it sustains leverage of below 6.5x and its EBITDA interest coverage approaches 2x. This could occur if: -- The company pays down its high-interest senior secured notes; Industry specific headwinds, such as retailer de-stocking and increased competition, moderate; -- The company successfully preserves its EBITDA and takes costs out of the business through lower marketing spending and elevated SG&A discipline; -- The business impact from U.S. tariffs is muted and the company successfully mitigates its margin compression through tariff cost sharing with its original equipment manufacturer (OEM) partners and the further shifting of its production away from China; and -- The company successfully manages its working capital such that it can return to positive FOCF generation. CHAR GRILL: Gets Extension to Access Cash Collateral ---------------------------------------------------- Char Grill Benson, LLC received another extension from the U.S. Bankruptcy Court for the Eastern District of North Carolina, Raleigh Division, to use cash collateral. The court order authorized the company to use cash collateral in accordance with its budget, with a 10% variance. The budget shows total operational expenses of $126,878.85 for the period from May 2 to June 1. As protection for the use of their cash collateral, secured creditors were granted a lien on the company's revenue and other assets acquired post-petition to the same extent and priority as they had prior to the company's bankruptcy filing. The secured creditors are Northeast Bank, the U.S. Small Business Administration, BayFirst National Bank, Kapitus, LLC, and BoomFunded. The next hearing is scheduled for June 3. About Char Grill Benson Char Grill Benson, LLC is a local fast-food chain in Benson, N.C., serving charcoal-grilled burgers, fries and shakes. Char Grill Benson filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-00459) listing up to $50,000 in assets and between $1 million and $10 million in liabilities. Jennifer K. Bennington serves as Subchapter V trustee. Judge David M. Warren presides over the case. Philip Sasser, Esq., at Sasser Law Firm is the Debtor's bankruptcy counsel. BayFirst National Bank, as secured creditor, is represented by: Phillip M. Fajgenbaum, Esq. Parker Poe Adams & Bernstein, LLP 620 South Tryon Street, Suite 800 Charlotte, NC 28202 Telephone: (704) 372-9000 phillipfajgenbaum@parkerpoe.com CHICKEN SHACK: Gets OK to Use Cash Collateral --------------------------------------------- Chicken Shack, LLC got the green light from the U.S. Bankruptcy Court for the Northern District of Florida, Tallahassee Division to use cash collateral. The order penned by Judge Karen Specie authorized the company's use of cash collateral to pay ordinary monthly expenses and all court-approved fees. As protection, JPMorgan Chase Bank, NA was granted security interest in and lien on all of the company's post-petition personal property, including accounts receivable. In addition, JPMorgan will continue to receive a monthly payment of $1,000 until confirmation of its Chapter 11 plan. The payment started In March. JPMorgan Chase Bank is represented by: Ryan C. Reinert, Esq. Bridget M. Dennis, Esq. Shutts & Bowen LLP 4301 W. Boy Scout Blvd., Suite 300 Tampa, FL 33607 Telephone: (813) 229-8900 rreinert@shutts.com bdennis@shutts.com About Chicken Shack Chicken Shack, LLC is a restaurant business located in Tallahassee, Fla. It operates as Krispy Krunchy Chicken and formerly known as Fresh 2 Go Cafe, LLC. Chicken Shack filed Chapter 11 petition (Bankr. N.D. Fla. Case No. 25-40014) on January 14, 2025, listing up to $50,000 in assets and between $100,000 and $500,000 in liabilities. Judge Karen K. Specie handles the case. The Debtor is represented by Robert C. Bruner, Esq., at Bruner Wright, PA in Tallahassee, Fla. CLAROS MORTGAGE: CMTG WF Cuts Facility, Extends Maturity to 2026 ---------------------------------------------------------------- Claros Mortgage Trust Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that CMTG WF Finance LLC, a subsidiary of the Company, entered into that certain Amendment No. 4 to Master Repurchase and Securities Contract with Wells Fargo Bank, National Association. The amendment, among other things, decreased the maximum facility amount to $500 million, extended the facility maturity date to April 30, 2026, and provided for two one-year options to further extend the facility maturity date to April 30, 2028. A full-text copy of the Amendment No. 4 is available at https://tinyurl.com/3t3ewbvf About Claros Mortgage Trust Inc. Claros Mortgage Trust Inc. -- https://www.clarosmortgage.com/ -- is a real estate investment trust that is focused primarily on originating senior and subordinate loans on transitional commercial real estate assets located in major markets across the U.S. CMTG is externally managed and advised by Claros REIT Management LP, an affiliate of Mack Real Estate Credit Strategies, L.P. * * * In Feb. 2025, S&P Global Ratings lowered its issuer credit rating on Claros Mortgage Trust Inc. (CMTG) to 'CCC+' from 'B-'. The outlook is negative. S&P also lowered its issuer credit rating on CMTG's senior secured debt to 'CCC+' from 'B-'. The downgrade follows the company's increased liquidity pressures and its ongoing asset sales to raise liquidity. CMTG's total available liquidity further declined to $98 million as of Feb. 17, 2024, from $102 million at year-end 2024 and $238 million as of year-end 2023. Additionally, the company modified its minimum cash liquidity covenant related to its secured funding to 3% of total recourse indebtedness (from 5% of total recourse indebtedness) for the first two quarters of 2025. CM CUSTOM: Beverly Brister Named Subchapter V Trustee ----------------------------------------------------- The Acting U.S. Trustee for Region 13 appointed Beverly Brister, Esq., a practicing attorney in Benton, Ark., as Subchapter V trustee for CM Custom Siding, LLC. Ms. Brister will be paid an hourly fee of $360 for her services as Subchapter V trustee. Should travel be required outside of Saline or Pulaski Counties, the Subchapter V trustee will seek a compensation rate of $100 per hour for actual travel time incurred. Ms. Brister declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Beverly I. Brister, Esq. Attorney at Law 212 W. Sevier Benton, AR 72015 Phone: 501-778-2100 Email: bibristerlaw@gmail.com About CM Custom Siding CM Custom Siding, LLC is a construction company based in Traskwood, Ark. CM Custom Siding sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Ark. Case No. 25-11515) on May 2, 2025. In its petition, the Debtor reported up to $50,000 in assets and between $100,000 and $500,000 in liabilities. Judge Bianca M. Rucker handles the case. The Debtor is represented by Vanessa Cash Adams, Esq., at AR Law Partners, PLLC. COLONIAL GARDENS: Claims to be Paid From Continued Operations ------------------------------------------------------------- Colonial Gardens Trenton Proud, LLC and affiliates filed with the U.S. Bankruptcy Court for the District of New Jersey a Disclosure Statement describing Joint Plan of Reorganization dated May 3, 2025. The Debtors own residential apartment buildings located in Trenton, New Jersey. The Edgewood Gardens Property, the Edgewood Manor Property, the Edgewood Commons Property, the Bruce Park Property and the Sanhican Property are collectively referred to herein as the "Edgewood Properties," and together with the Colonial Garden Property are referred herein as the "Properties." The respective Debtors which own the Edgewood Properties are collectively referred to herein as the "Edgewood Debtors." The Debtors are ultimately managed, and substantially owned by, Thomas J. Caleca. Mr. Caleca has continued to manage the Debtors during the bankruptcy proceedings. Mr. Caleca has executed personal guarantees of Edgewood Loan and the Colonial Loan. Class A-2 consists of General Unsecured Claims against Colonial Gardens. The allowed unsecured claims total $225,000. In the event of a refinance of the Axonic Class A-1 Claim on or before September 1, 2026, Class A-2 Claims will receive a pro rata share of the net proceeds of such refinance after satisfaction of such Axonic Claim, subject to the priority scheme of the Bankruptcy Code, until such A-2 Claims are paid in full. In the event such net proceeds are insufficient to satisfy Class A-2 Claims in full, Class A-2 Claims will thereafter receive, on a quarterly basis, a pro rata share of the Debtor's disposable income until the earlier of (a) payment in full, or (b) the 5-year anniversary of the effective date. Class B-3 consists of General Unsecured Claims against Edgewood Gardens. The allowed unsecured claims total $25,000. In the event of a refinance of the Axonic Class B-1 Claim on or before September 1, 2026, Class B-3 Claims will receive a pro rata share of the net proceeds of such refinance after satisfaction of Axonic Claim, subject to the priority scheme of the Bankruptcy Code, until such B-3 Claims are paid in full. In the event such net proceeds are insufficient to satisfy Class B-3 Claims in full, Class B-3 Claims will thereafter receive on a quarterly basis, a pro rata share of the Debtor's disposable income until the earlier of (a) payment in full, or (b) the 5-year anniversary of the effective date. Class C-3 consists of General Unsecured Claims against Edgewood Commons. The allowed unsecured claims total $40,000. In the event of a refinance of the Axonic Class C-1 Claim on or before September 1, 2026, Class C-3 Claims will receive a pro rata share of the net proceeds of such refinance after satisfaction of such Axonic Claim, subject to the priority scheme of the Bankruptcy Code, until such C-3 Claims are paid in full. In the event such net proceeds are insufficient to satisfy Class C-3 Claims in full, Class C-3 Claims will thereafter receive, on a quarterly basis, a pro rata share of the Debtor's disposable income until the earlier of (a) payment in full, or (b) the 5-year anniversary of the effective date. Class D-3 consists of General Unsecured Claims against Edgewood Manor. The allowed unsecured claims total $43,000. In the event of a refinance of the Axonic Class D-1 Claim on or before September 1, 2026, Class D-3 Claims will receive a pro rata share of the net proceeds of such refinance after satisfaction of such Axonic Claim, subject to the priority scheme of the Bankruptcy Code, until such D-3 Claims are paid in full. In the event such net proceeds are insufficient to satisfy Class D-3 Claims in full, Class D-3 Claims will thereafter receive, on a quarterly basis, a pro rata share of the Debtor's disposable income until the earlier of (a) payment in full, or (b) the 5-year anniversary of the effective date. Class E-3 consists of General Unsecured Claims against Bruce Park. The allowed unsecured claims total $40,000. In the event of a refinance of the Axonic Class E-1 Claim on or before September 1, 2026, Class E-3 Claims will receive a pro rata share of the net proceeds of such Axonic Claim, subject to the priority scheme of the Bankruptcy Code, until such E-3 Claims are paid in full. In the event such net proceeds are insufficient to satisfy Class E-3 Claims in full, Class E-3 Claims will thereafter receive, on a quarterly basis, a pro rata share of the Debtor's disposable income until the earlier of (a) payment in full, or (b) the 5-year anniversary of the effective date. Class F-3 consists of General Unsecured Claims against Sanhican. The allowed unsecured claims total $55,000. In the event of a refinance of the Axonic Class F-1 Claim on or before September 1, 2026, Class F-3 Claims will receive a pro rata share of the net proceeds of such refinance after satisfaction of such Axonic Claim, subject to the priority scheme of the Bankruptcy Code, until such F-3 Claims are paid in full. In the event such net proceeds are insufficient to satisfy Class F-3 Claims in full, Class F-3 Claims will thereafter receive, on a quarterly basis, a pro rata share of the Debtor's disposable income until the earlier of (a) payment in full, or (b) the 5-year anniversary of the effective date. The Plan will be funded through each of the Debtors' continued operation of their respective real properties and collection of rents in connection therewith. A full-text copy of the Disclosure Statement dated May 3, 2025 is available at https://urlcurt.com/u?l=5KZGoU from PacerMonitor.com at no charge. Counsel to the Debtors: Douglas J. McGill, Esq. Webber McGill LLC 100 E. Hanover Avenue, Suite 401 Cedar Knolls, NJ 07927 Telephone: (973) 739-9559 Email: dmcgill@webbermcgill.com About Colonial Gardens Trenton Proud Colonial Gardens Trenton Proud LLC is primarily engaged in renting and leasing real estate properties. Colonial Gardens Trenton Proud and its affiliates filed their voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 24-16185) on June 20, 2024. In the petitions signed by Thomas J. Caleca, managing member, Colonial Gardens Trenton Proud disclosed up to $50,000 in assets and up to $10 million in liabilities. Judge Vincent F. Papalia oversees the cases. The Debtors tapped Douglas J. McGill, Esq., at Webber McGill LLC, as counsel and The Meglio Group, PC, as accountant. COMMUNITY HEALTH: Morgan Stanley Cuts Stake Below 5% ---------------------------------------------------- Morgan Stanley disclosed in a Schedule 13G (Amendment No. 1) filed with the U.S. Securities and Exchange Commission that as of March 31, 2025, it beneficially owned 2,783,752 shares of Community Health Systems Inc.'s common stock, representing 2% of the class. These shares include 2,773,641 shares with shared voting power and 2,783,752 shares with shared dispositive power. Morgan Stanley has ceased to be the beneficial owner of more than five percent of the class of securities. Morgan Stanley may be reached through: Christopher O'Hara, Authorized Signatory 1585 Broadway, New York, NY 10036 Tel: 212-761-4000 A full-text copy of Morgan Stanley's SEC report is available at: https://tinyurl.com/58rksj7k About Community Health Systems Inc. Community Health Systems, Inc. -- http://www.chs.net/-- is a publicly traded hospital company and an operator of general acute care hospitals in communities across the country. Its affiliates provide healthcare services, developing and operating healthcare delivery systems in 40 distinct markets across 15 states. As of June 30, 2024, the Company had $14.4 billion in total assets, $15.3 billion in total liabilities, $324 million in redeemable noncontrolling interests in equity of consolidated subsidiaries, and $1.2 billion in total stockholders' deficit. * * * Egan-Jones Ratings Company on January 23, 2025, maintained its 'CCC+' foreign currency and local currency senior unsecured ratings on debt issued by Community Health Systems, Inc. In August 2024, S&P Global Ratings raised its rating on Community Health Systems Inc. to 'CCC+' from 'SD'(selective default). At the same time, S&P also raised its ratings on the senior unsecured notes to 'CCC-'from 'D'. The outlook is negative, reflecting the risk of further distressed exchanges in the intermediate future despite credit metrics potentially improving in 2024. CONN'S INC: Seeks to Extend Plan Exclusivity to June 18 ------------------------------------------------------- Conn's, Inc., and affiliates asked the U.S. Bankruptcy Court for the Southern District of Texas to extend their exclusivity periods to file a plan of reorganization and obtain acceptance thereof to June 18 and August 19, 2025, respectively. The Debtors explain that the relevant factors strongly favor extensions of the Debtors' Exclusivity Periods. The relevant factors strongly weigh in favor of an extension of the Exclusivity Periods: * The Debtors' Chapter 11 Cases Are Large and Complex. These cases met the requirements for and were designated as complex cases. Notice of Designation as Complex Chapter 11 Bankruptcy Case. As of the Petition Date, the Debtors had approximately $530 million of funded debt, along with unsecured obligations to various vendors, contractual counterparties, and, as of the Petition Date, and thousands of employees and independent contractors worldwide. Accordingly, this factor weighs in favor of granting an extension of the Exclusivity Periods. * The Debtors Have Made Good Faith Progress Towards Exiting Chapter 11. The Debtors have progressed their cases substantially since the Petition Date, and are strenuously endeavoring to formulate and solicit a plan in order to exit chapter 11 in the near term. The Debtors have additionally made significant progress in negotiating a consensual resolution among key stakeholders, including through the negotiation and approval of the Dealer Settlement and the Accelerated Payment Procedures, both of which provide for a resolution of certain outstanding administrative expense claims, opening the path towards a feasible, consensual plan. * An Extension Will Not Pressure or Prejudice Creditors. The Debtors are not seeking an extension of the Exclusivity Periods to pressure or prejudice any of their stakeholders. All parties in interest have had an opportunity to actively participate in substantive discussions with the Debtors throughout these chapter 11 cases. Additionally, the extension of exclusivity will ensure that the Accelerated Payment Procedures opt in deadline and the Dealer Settlement opt out deadline both run before the ending of the Exclusive Filing Period. * Relatively Little Time Has Elapsed in These Chapter 11 Cases. A little over nine months has lapsed since the Petition Date, during which substantial progress was made advancing these chapter 11 cases. Accordingly, this factor weighs in favor of granting an extension of the Exclusivity Periods. The Debtors' Counsel: Duston McFaul, Esq. Jeri Leigh Miller, Esq. Maegan Quejada, Esq. SIDLEY AUSTIN LLP 1000 Louisiana Street, Suite 6000 Houston, Texas 77002 Tel: (713) 495-4500 Fax: (713) 495-7799 Email: dmcfaul@sidley.com jeri.miller@sidley.com mquejada@sidley.com - and - William E. Curtin, Esq. Michael Sabino, Esq. 787 Seventh Avenue New York, New York 10019 Tel: (212) 839-5300 Fax: (212) 839-5599 Email: wcurtin@sidley.com msabino@sidley.com About Conn's, Inc. Conn's, Inc., is a retailer of home goods and furniture in The Woodlands, Texas. Conn's and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 24-33357) on July 23, 2024. In its petition, Conn's reported $1 billion to $10 billion in both assets and liabilities. Judge Jeffrey P. Norman oversees the cases. The Debtors tapped Duston K. McFaul, Esq., at Sidley Austin, LLP as legal counsel; Houlihan Lokey, Inc. as investment banker; and BRG Capital Advisors, LLC, as interim management services provider. Epiq Corporate Restructuring, LLC, is the Debtors' notice and claims agent. COREWEAVE INC: S&P Assigns 'B+' ICR, Outlook Stable --------------------------------------------------- S&P Global Ratings assigned its 'B+' issuer credit rating to New Jersey-based provider of generative AI infrastructure, software, and cloud services company CoreWeave Inc. S&P said, "We also assigned our 'B' issue-level rating and '5' recovery rating to the proposed senior unsecured notes indicating our view that lenders will have modest (10%-30%; rounded estimate: 25%) recovery in the event of default. "The stable outlook reflects our expectation that CoreWeave will continue to grow quickly over the next year with good revenue visibility and success-based capital expenditures (capex), and funds from operations (FFO) to debt will improve above 12% in 2026 with cash flow from operations (CFO) to debt of 10%-15%." CoreWeave Inc. is issuing $1.5 billion of senior unsecured notes for general corporate purposes. S&P said, "Our 'B+' issuer credit rating on CoreWeave reflects its solid market position as a key provider of generative AI (GenAI) infrastructure, cloud services, and software. The company's rapid growth and solutions, driven by its purpose-built for AI cloud infrastructure with access to power and the latest generation of Nvidia Corp's graphic processing units (GPUs), are currently in high demand by AI labs, hyperscalers, and large enterprise customers that require significant AI workload processing. Our rating is also supported by the company's good revenue visibility with multiyear contracts, success-based capital capex and financing model, and our expectation that FFO to debt will be sustained above 12% in 2026. Offsetting factors include the highly capital-intensive nature of GenAI infrastructure buildout that results in significant FOCF deficits during periods of high growth, its significant customer and supplier concentration, uncertainty around longer-term contract renewals after industry supply/demand dynamics normalize, and the company's limited history of operating at scale. "We believe the technical differentiation of CoreWeave's platform gives it a meaningful first-mover advantage in the rapidly growing AI infrastructure market. CoreWeave has purpose-built-for AI cloud infrastructure optimized for training and inference tasks, and has significantly higher utilization than traditional general-purpose cloud provider solutions. We also recognize its ability to rapidly deploy the latest GPUs, efficiently manage large-scale infrastructure, and deliver compute at a lower total cost of ownership as a competitive differentiator, making it a preferred partner for compute-intensive AI workloads compared with other neocloud providers. We believe these early advantages helped CoreWeave establish itself as a modernized hyperscaler purposed for AI and a preferred partner with many large users of AI technologies such as Microsoft Corp. and OpenAI Inc. "As AI demand and infrastructure investment grow exponentially, we expect technical differentiation gaps to narrow as competitor offerings improve. New entrants continue to emerge, and major hyperscalers are leveraging their strong balance sheets to rapidly scale AI-dedicated infrastructure while working on proprietary custom silicon designs for AI accelerators and networking chips to power their massive data centers and cloud computing services as well as lower costs. For example, Microsoft and Google LLC plan to spend $80 billion and $75 billion, respectively, on AI infrastructure in 2025. Therefore, we foresee competitive intensity rising, potentially dissipating some of these early advantages." Other longer-term potential risks that are difficult to ascertain but could impede CoreWeave's competitive position include the normalization of GPU supply/demand dynamics, which could reduce the need for some of CoreWeave's top customers to outsource compute capacity. It could pressure demand, pricing, margins, and its strategic relationship with Nvidia. S&P also believes CoreWeave's financing strategy, which has helped the company rapidly scale, may become less economical as it seeks to expand its go-to-market efforts and move downstream to serve a customer base that includes newer AI labs and enterprises, given that these customers may lack the same capacity to make upfront prepayments and may be perceived as a higher credit risk. CoreWeave's take-or-pay contracts provide revenue visibility for the next few years. CoreWeave serves its customers under long-term take-or-pay contracts, which require payment from the end customer regardless of their utilization. These contracts cannot be canceled except for nonperformance. They are priced per dollar per GPU, and the type of infrastructure and revenue conversion typically occurs over a few months to a few quarters. Once live, the guaranteed amounts of the contracts are recognized as revenue on a ratable basis over the duration of the contract. The total value of contracted revenue that a company has yet to realize is recorded as a remaining performance obligation (RPO). This reflects the contracted business, which includes billed and unbilled amounts under existing contracts that will convert into revenue over time. CoreWeave reported approximately $15.1 billion in remaining performance obligations as of the end of 2024 and a revenue backlog of $25.9 billion as of March 31, 2025. This backlog includes an RPO of $14.7 billion, plus $11.2 billion in other committed customer contracts that are subject to the satisfaction of delivery and availability of service requirements. CoreWeave expects to recognize this amount as revenue and another $4 billion contract signed in the second quarter in future periods. This is a particularly meaningful key performance indicator for CoreWeave because it offers visibility into its performance and serves as a mitigant to its high fixed-cost base. CoreWeave's highly capital-intensive business model has not precluded it from rapid growth. CoreWeave operates a capital-intensive model, driven by significant investments in technology infrastructure to scale and remain competitive in the AI and cloud markets. Despite the substantial capital requirements and having a higher cost of capital than its hyperscaler peers, CoreWeave has managed to rapidly scale its business to serve the largest and most influential companies. S&P believes the company's strategic relationship with NVIDIA, supported by strong technical capabilities, has helped ensure a steady allocation of chips and been instrumental in securing large, long-term take-or-pay agreements with tier 1 customers. CoreWeave has leveraged the predictability of these contracted cash flows and the strong credit quality of its customer base to access capital, primarily through asset-backed financing structures collateralized by customer contracts, which enables rapid growth. The company has also successfully managed its high fixed costs and capex requirements by collecting upfront prepayments, which historically range from 15% to 25%, assisting with initial infrastructure buildouts, and by employing a just-in-time equipment funding model, placing orders only after securing contracts rather than speculatively. The company also secures access to data centers through long-term leases, primarily of the power shell, as well as some colocation, rather than building, and it has secured multiyear access to power capacity of approximately 420 megawatts (MW) of active power and approximately 1.6 gigawatts (GW) of contracted power (as of March 31, 2025), a mission-critical component of AI infrastructure. While this approach limits upfront investment, it introduces supply chain and counterparty risks that S&P views as manageable. The company's significant supplier concentration with NVIDIA and customer concentration with Microsoft are beneficial but could pose a risk in three to five years. NVIDIA provides CoreWeave's GPUs, and only three suppliers accounted for over 76% of the company's total purchases. At the same time, its customer base was highly concentrated in 2024, with 62% of revenue coming from Microsoft. Concentration with these well-regarded counterparties has been beneficial to CoreWeave to date. NVIDIA has invested in CoreWeave; it owns about 7% of the company's shares and its high-end GPUs and compute unified device architecture (CUDA) ecosystem are in high demand in the industry. CoreWeave's access to these GPUs helped secure its multibillion-dollar contract with Microsoft and has helped the company prove its value to the industry and win additional business. Still, should CoreWeave fall out of favor with NVIDIA, NVIDIA deprioritizes its GPU allocation to CoreWeave, or GPU offerings from Advanced Micro Devices Inc. (AMD) or Intel Corp. become more competitive, CoreWeave's performance could suffer. And while CoreWeave is GPU agnostic and could technically support any architecture, it has built a reputation due to its relationship with NVIDIA, and S&P believes its competitive advantage may weaken if NVIDIA is not the preferred GPU. Customer concentration, on the other hand, should improve as the company grows. With the company's recent $11.9 billion contract with OpenAI, no company had more than 50% of CoreWeave's revenue backlog as of the end of the first quarter of 2025. S&P expects the company will diversify its customer base with enterprise customer growth within the next few years, but significant concentration from large hyperscalers and AI labs like OpenAI will likely remain due to massive amount of compute needed by these companies and the relative scarcity of industry players building global GenAI platforms. CoreWeave's customer contracts last about four years on average, and there could be a material drop off in revenue if the company cannot renew or replace expiring contracts. While hyperscalers are customers of CoreWeave, they are also competitors that are investing tens of billions of dollars in their own data centers and may not choose to outsource as much compute to CoreWeave in the future if they have their own capacity. S&P said, "We expect new contract wins will fuel strong growth in 2025 and 2026, likely resulting in significant FOCF deficits. The company's operating model is capital intensive following new contract wins as it purchases GPUs and builds out its data center capacity to meet its customers' needs. This process takes three to nine months for large contracts and could be as little as four to six weeks for smaller enterprise customers. While we believe the company could generate FOCF in 2026 absent material multibillion-dollar contract wins, our base case assumes industry demand for compute will drive the company to sign additional high-value contracts in 2025 and 2026 that have not yet been announced. For 2025, we believe this would align with the company's public capex guidance of $20 billion-$23 billion. We expect the company to receive a modest prepayment for new contracts, but the high capex will lead to steep FOCF deficits and require external funding. In addition, due to the lag in profitability and cash flow from the start of the data center buildout before a contract generates revenue, we expect FFO to debt of about 5% in 2025 before improving to the mid-teens percent area in 2026. We believe that FFO to debt offers a more accurate measure of credit performance for capital-intensive businesses like CoreWeave than debt to EBITDA, as it better reflects the intrinsic cash burden of debt service and provides a clearer assessment of liquidity risk. "While its FOCF will fluctuate significantly with the pace of new contract wins, we put less emphasis on FOCF-based credit ratios in our analysis because of the success-based nature of the majority of the company's capex and its ability to tap into asset-based lending markets to support these contracts. Instead, in addition to FFO to debt, we focused on the company's CFO, which captures the increased interest expense from the debt-funded capex and fluctuations in working capital. In our forecast, we expect CFO to debt to be 10%-15%, which supports our financial risk assessment." Potential liquidity risks may stem from the put option rights of certain shareholder. CoreWeave granted put rights to former holders of series C convertible preferred stock--now class A shares following conversion at the initial public offering (IPO)--covering 29,874,066 shares. These rights entitle holders to require the company to repurchase their shares for cash if the stock fails to trade at or above 175% of the $38.95 issue price for any 30 consecutive trading days within two years post-IPO or if these shares are sold or transferred. While the full $1.2 billion repurchase obligation appears unlikely, given current trading levels and 19 months until expiration, the structure introduces a contingent liability that could pressure liquidity. It could also morph into potential refinancing risks in the event the company underperforms market expectations or equity market conditions weaken, considering the company's amended $1.5 billion revolving credit facility, which our forecast assumes the company will utilize, includes a provision that would accelerate the maturity of the facility from May 2, 2028, to Dec. 30, 2026, if the put rights remain outstanding or are not fully cash collateralized by Dec. 30, 2026. S&P said, "We are monitoring CoreWeave's efforts to remediate the material weakness in its internal controls. CoreWeave is working to address and remediate these weaknesses over financial reporting through IT risk assessments, enhanced control frameworks, and an expanded finance and accounting staff. While these actions are sufficient for our scoring of its management and governance modifier assessment, some remediation steps have been completed; efforts will continue through 2026. Failure to remediate could diminish the reliability of financial reporting and jeopardize compliance with debt covenants--potential future risks. "The stable outlook reflects our expectation that CoreWeave will continue to grow quickly over the next year with good revenue visibility and success-based capex spending, and FFO to debt will improve above 12% in 2026 with CFO to debt of 10%-15%." S&P could lower its ratings on CoreWeave if it expects it to sustain FFO to debt below 12% with CFO to debt below 10%, or its liquidity tightens. This could occur if: -- New contract terms are less profitable; -- There is an increase in the time to build out contracted infrastructure before revenue generation; -- The company has difficulty securing financing for new contract wins at reasonable rates; or -- The company's stock price falls well below the value of the put option that certain shareholders can exercise in March 2027, and S&P believes the company does not have the liquidity to pay it. S&P said, "We could also lower the rating if we reassess our view of CoreWeave's business, which could occur if the need for compute capacity and CoreWeave's services lessen, if the capacity and supply of high-end GPUs normalizes and CoreWeave's competitive advantage weakens, or if we believe the company's large customers will not renew or extend their contracts. "We could raise our rating if the company continues to execute profitably on its revenue backlog while diversifying its customer base with new multiyear contracts and maintaining its success-based capex strategy. In this scenario, the longer-term sustainability of the company's operating model as supply constraints ease would be more likely." To consider an upgrade, S&P would also expect: -- Sustained FFO to debt in the high-teens percent area; -- CFO to debt of about 15%; -- Progress in remediation of material weaknesses; and -- Limited risk of a large payout in connection with the put rights of certain shareholders. COTY INC: S&P Affirms 'BB+' Issuer Credit Rating, Outlook Stable ---------------------------------------------------------------- S&P Global Ratings affirmed its issuer credit rating of 'BB+' on Coty Inc. Concurrently, S&P affirmed the issue-level rating on the company's senior secured debt at 'BBB-'. The recovery rating is '2', indicating its expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default. The stable outlook reflects S&P's expectation that over the next 12 months, the company will address its refinancing needs, improve its volume trend, and take pricing actions to offset tariff headwinds. The rating affirmation reflects S&P's expectation that Coty will modestly improve its credit metrics in fiscal 2026 from 4.1x currently. Trends in the global beauty market further softened in the fiscal third quarter of fiscal 2025 from the first half of the year, driven by softer consumer demand. For the most recent quarter ended March 31, 2025, Coty's reported revenue declined 6% and like-for-like revenue declined 3% year over year. In prestige, sales declined 6% on a reported basis or 2.5% on a comparable basis. The decline was attributable to a slowing fragrance market, lapping a very strong innovation year with multiple product launches and depleting elevated inventory at retailers. Growth in the prestige fragrance category further slowed to the mid-single-digit percent area in the fiscal third quarter, compared with the high-single digit percent area in the second quarter of fiscal 2025 and the low-double-digit percent area in fiscal 2024. In consumer beauty, sales declined 9% year over year on a reported basis and 4.8% on a comparable basis. S&P notes the global mass beauty market continued to slow in recent quarters, and the category declined in the low-single-digit percent area in the fiscal third quarter. The company lowered its guidance for fiscal 2025. In addition, during the fiscal third quarter, the company announced a new fixed cost reduction plan and incurred restructuring costs of $76.6 million, which also depressed its EBITDA. As a result, the company's S&P Global Ratings-adjusted leverage for the 12 months ended March 31, 2025, increased to 4.1x from 3.5x as of the end of Dec. 31, 2024. S&P said, "We lowered our forecast for fiscal 2025 and fiscal 2026.We expect Coty's reported revenue to decline 6% in 2025, driven by 2% decline in like-for-like revenue, a 3% foreign exchange headwind, and a 1% negative impact from the divestiture of the Lacoste license. We expect its S&P Global Ratings-adjusted EBITDA to decline about 5% in 2025, reflecting the lower revenue and higher restructuring expenses. "In 2026, we forecast revenue will return to 3% growth from an improved volume trend given a more robust innovation pipeline, as well as further pricing action to offset continued pressure in the China, travel retail, and Consumer Beauty segments. We expect its S&P Global Ratings-adjusted EBITDA to grow about 8% to 9% in 2026, reflecting higher revenue, additional cost savings, and lapping high restructuring charges in fiscal 2025. As a result, we expect the company's S&P Global Ratings-adjusted leverage to modestly improve to the high-3x area by the end of fiscal 2026." Coty is moderately exposed to potential profitability pressure from tariffs in the coming year. Roughly 30% of Coty's sales are in North America. The company's prestige fragrances are manufactured in its Barcelona plant in Europe. For Consumer Beauty, its products are primarily manufactured locally in the U.S. The company's exposure of finished goods sourcing from China is limited, though it sources various component and marketing materials from China, which is subject to higher tariffs. According to the company, the gross impact from the tariff plans proposed originally this year were in the low-$100 million area. S&P believes Coty could mitigate even that elevated impact of tariffs on its performance by a few actions. For prestige fragrance, it has built up inventory on hand in the U.S. that will last until at least the end of fiscal 2025. The company is also contemplating further pricing actions in fiscal 2026 in the relatively price-inelastic prestige beauty market. In addition, it could transfer production to the U.S. if tariff stays in place for the long term. For component sourcing from China, the company could take pricing actions or resource suppliers in other countries. S&P Global Ratings believes there is a high degree of unpredictability around policy implementation by the U.S. administration and possible responses--specifically with regard to tariffs--and the potential effect on economies, supply chains, and credit conditions around the world. S&P said, "As a result, our baseline forecasts carry a significant amount of uncertainty. As situations evolve, we will gauge the macro and credit materiality of potential and actual policy shifts and reassess our guidance accordingly." S&P said, "We expect Coty to remain committed to its financial policy. The company-defined leverage at the end of fiscal third quarter 2025 increased to 3.2x, above the high end of its mid- to long-term leverage target of 2x-3x, which is roughly equivalent to S&P Global Ratings-adjusted leverage in the high-2x to high-3x area. The company is still committed to divesting its Wella assets, though we believe the current macroeconomic environment could delay the monetization timeline. The company intends to use the proceeds from this asset sale for share repurchases or a potential dividend reintroduction. While this approach could slow deleveraging, we believe Coty will remain committed to its current financial policy and will not buy back shares or resume dividends at levels that would compromise its credit ratios. "The stable outlook reflects our expectation that over the next 12 months the company will address its refinancing needs, improve its volume trend, and take pricing actions to offset tariff headwinds." S&P could lower its ratings if growth momentum starts to slow down and it expects Coty to sustain S&P Global Ratings-adjusted leverage above 4x, which could occur due to: -- A worsening macroeconomic environment, lower discretionary spending, heightened competition, or an operational misstep, leading to lower demand for the company's products; -- The company is not able to offset higher costs from tariff on imported goods with mitigating actions; or -- The company pursues a more aggressive financial policy with debt-funded share repurchases and acquisitions. S&P could raise its ratings if the company: -- Achieves sustained organic growth, continues to gain market share, and improves its cost structure, leading to consistent EBITDA margin improvement and a stronger competitive position; or -- Continues to execute its strategy of utilizing all excess cash proceeds from future asset sales, including Wella, for debt reduction and demonstrates a more conservative financial policy such that it sustains S&P Global Ratings-adjusted leverage below 3x. CROWN SUBSEA: S&P Affirms 'B+' Rating on Senior Secured Debt ------------------------------------------------------------ S&P Global Ratings affirmed its 'B+' issue-level rating and '3' recovery rating on U.S.-based subsea fiber optic cable services provider Crown Subsea Communications Holding Inc.'s (d/b/a/ SubCom) senior secured debt following the proposed $275 million first-lien term loan add-on. The '3' recovery rating indicates its expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a default. S&P revised its rounded recovery expectations to 50% from 55% reflecting the higher quantum of senior secured debt. S&P said, "We expect proceeds from the incremental term loan add-on will be used to fund transaction fees and pay a dividend to the company's financial sponsor, Cerberus Capital Management. Subcom's credit measures remain in line with expectations for the rating. Our 'B+' issuer credit rating and stable outlook on SubCom are unchanged. Despite the releveraging nature of the transaction, we expect S&P Global Ratings-adjusted debt to EBITDA will remain in the low-4x area in fiscal years 2025 and 2026 due to project execution. Demand for infrastructure updates remains robust and demand from internet content providers continues to support growth, as evidenced by the backlog improving to $4.7 billion in April compared to $3.5 billion at fiscal year-end 2024." Issue Ratings--Recovery Analysis Key analytical factors -- S&P revised its recovery analysis to reflect the proposed $275 million first-lien term loan add-on due 2031. -- S&P affirmed its 'B+' issue-level rating and '3' recovery rating (rounded estimate: 50%) on SubCom's senior secured debt. -- S&P said, "Our simulated default scenario considers a default in 2029 stemming from a protracted downturn in the capital spending budgets of SubCom's customers that lead to declining demand for subsea fiber optic cable and overall projects in the industry." -- S&P said, "Because our default scenario does not include a cost overrun on a project, we do not assume any surety bonds or former parent guarantees would be drawn. Therefore, we do not assume any (unsecured) nondebt claims from the guarantee or surety facilities in our default scenario." -- S&P believes that if SubCom were to default, it would continue to have a viable business model because of its strong market share in a niche industry and the highly specialized engineering and manufacturing capabilities required to complete its projects. -- S&P valued the company on a going-concern basis using a 5x multiple of its projected emergence EBITDA, which is in line with the multiples it uses for its engineering and construction peers. -- S&P assumes 85% of the revolver is drawn in a default scenario. Simulated default assumptions -- Year of default: 2029 -- EBITDA at emergence: $193 million -- EBITDA multiple: 5.0x Simplified waterfall -- Net enterprise value (after 5% administrative costs): $918 million -- Valuation split (obligors/nonobligors): 97%/3% -- Collateral value available to first-lien creditors: $890 million -- Total first-lien debt: $1.8 billion --Recovery expectations: 50%-70% (rounded estimate: 50%) Note: All debt amounts include six months of prepetition interest. CRYPTO MARKET: Daniel Etlinger Named Subchapter V Trustee --------------------------------------------------------- The U.S. Trustee for Region 21 appointed Daniel Etlinger of Underwood Murray, P.A. as Subchapter V trustee for Crypto Market Real Investment Group, Inc. Mr. Etlinger 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. Etlinger declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Daniel E. Etlinger Underwood Murray, P.A. 100 N. Tampa Street, Suite 2325 Tampa Florida 33602 (813) 540-8401 Email: detlinger@underwoodmurray.com About Crypto Market Real Investment Group Crypto Market Real Investment Group, Inc. is a company likely involved in cryptocurrency investments based in Navarre, Fla. Crypto Market Real Investment Group sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-30252) on March 25, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. Judge Jerry C. Oldshue, Jr. handles the case. The Debtor is represented by Byron W. Wright III, Esq., at Bruner Wright, PA. CUCHINA ANTICA: Plan Exclusivity Period Extended to June 11 ----------------------------------------------------------- The Bankruptcy Court Judge extended Cucina Antica Foods, Corp.'s exclusive periods to file a plan of reorganization and obtain acceptance thereof to June 11 and July 14, 2025, respectively. As shared by Troubled Company Reporter, the Debtor explains that cause exists for the Court to grant the Debtor a short extension of the Exclusivity Period and Confirmation Deadline. The Debtor has made substantial progress towards confirmation of a plan having just recently closed on the sale of substantially all its assets which has generated significant proceeds to be paid to creditors. However, the Debtor has no staff, and its principal has had to focus her attention on ensuring an orderly transition and performing transition services as required by the Transition Services Agreement. As the sale terms include a Royalty to be paid to the Debtor's estate, a smooth transition ultimately benefits creditors. The Debtor claims that it has proceeded in good faith to make significant progress in the few months since the case commenced. An extension of the Exclusivity Period and Confirmation Deadline by sixty days will not harm the interests of creditors. In fact, it will benefit the estate by potentially avoiding a conversion to chapter 7 and allow the Debtor a meaningful opportunity to maximize creditor recovery within the shortest reasonable time. Cucina Antica Foods Corp. is represented by: Frances A. Smith, Esq. Jonathan Gitlin, Esq. Ross Smith & Binford, PC 700 North Pearl Street, Suite 1610 Dallas, TX 75201 Tel: (214) 377-7879 Fax: (214) 377-9409 Email: frances.smith@ross-and-smith.com Email: jonathan.gitlin@ross-and-smith.com About Cucina Antica Foods Cucina Antica Foods Corp. is a manufacturer of pasta sauces and ketchup. Cucina Antica Foods sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-34058) on Dec. 13, 2024. In the petition filed by Suzanne Fusco, as authorized representative, the Debtor estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. The Debtor is represented by Frances A. Smith, Es., at Ross, Smith & Binford, PC. DB BONNEVILLE: Seeks Chapter 11 Bankruptcy in Iowa -------------------------------------------------- On May 13, 2025, DB Booneville Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Iowa. According to court filing, the Debtor reports between $10 million and $50 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About DB Booneville Inc. DB Booneville Inc., also known as the Village at Sugar Creek, is a real estate company based in Urbandale, Iowa. The Company operates in property development and ownership, including residential properties. It has been involved in various developments, such as the Village at Sugar Creek, a mixed-use project offering multifamily housing, retail, office spaces, and townhomes in West Des Moines. DB Booneville Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Iowa Case No. 25-00817) on May 13, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $10 million and $50 million. Honorable Bankruptcy Judge Lee M. Jackwig handles the case. The Debtors are represented by Samuel Z. Marks, Esq. at MARKS LAW FIRM. DEVILS RIVER DISTILLERY: Subchapter V Trustee Named --------------------------------------------------- The U.S. Trustee for Region 7 appointed Michael O'Connor as Subchapter V trustee for Devils River Distillery, LLC. Mr. O'Connor will charge an hourly fee of $375 for his services as Subchapter V trustee, and $125 for support staff working under his direct supervision. In addition, the Subchapter V trustee will be reimbursed for work-related expenses incurred. Mr. O'Connor declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Michael J. O'Connor The Spectrum Building 613 Northwest Loop 410, Ste. 840 San Antonio, TX 78216 E-mail: subvtrusteesat@gmail.com Telephone: (210) 729-6009 About Devils River Distillery Devils River Distillery, LLC is a well-known whiskey brand based in San Antonio, Texas, that offers a variety of bourbons and a rye whiskey. Devils River Distillery sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Texas Case No. 25-50960) on May 1, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. The Debtor is represented by Michael G. Colvard, Esq., at Martin & Drought, PC. DEVILS RIVER HOLDINGS: Michael O'Connor Named Subchapter V Trustee ------------------------------------------------------------------ The U.S. Trustee for Region 7 appointed Michael O'Connor as Subchapter V trustee for Devils River Holdings, LLC. Mr. O'Connor will charge an hourly fee of $375 for his services as Subchapter V trustee, and $125 for support staff working under his direct supervision. In addition, the Subchapter V trustee will be reimbursed for work-related expenses incurred. Mr. O'Connor declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Michael J. O'Connor The Spectrum Building 613 Northwest Loop 410, Ste. 840 San Antonio, TX 78216 E-mail: subvtrusteesat@gmail.com Telephone: (210) 729-6009 About Devils River Holdings Devils River Holdings, LLC produces premium small-batch whiskeys under the Devils River Whiskey brand. Based in San Antonio, Texas, the Company sources limestone-filtered water from the Devils River to craft its Bourbon, Rye, and flavored whiskey offerings. Devils River Holdings filed Chapter 11 petition (Bankr. W.D. Texas Case No. 25-50959) on May 1, 2025, listing up to $10 million in both assets and liabilities. Michael P. Cameron, chief executive officer and president, signed the petition. Martin & Drought, P.C. is the Debtor's legal counsel. DOCUDATA SOLUTIONS: Unsecureds Will Get 40.6% of Claims in Plan --------------------------------------------------------------- Docudata Solutions, LC, and its debtor affiliates filed with the U.S. Bankruptcy Court for the Southern District of Texas a Disclosure Statement for the Joint Plan of Reorganization dated May 3, 2025. The Company is a global leader in business process automation and uses its international reach and proprietary technology to provide high-quality payments processing and digital transformation solutions to its clients throughout the Americas and Asia that improve efficiency and reduce operating costs. Specifically, the Company combines data and user-friendly software and platforms which, together with the services offered by its employees, enable customers to improve the efficiency of their operations. The Company has adopted a global delivery model and hosts solutions in its data centers, on the cloud, or directly from customers' premises. The Company's location-agnostic solutions, coupled with its flexible hosting capabilities and global work force, enables the Company to provide its services across numerous industries, including banking, healthcare, insurance, and manufacturing. The Plan contemplates the following Restructuring and treatment of Claims: Restructuring Generally. The Plan provides for the equitization of all Allowed July 2026 Notes Claims and Allowed April 2026 Notes Claims (collectively, "Allowed Notes Claims") through a series of steps resulting in the Holders of Allowed Notes Claims receiving their Pro Rata Shares of a portion of the equity of the Debtors' publicly-traded affiliate, XBP Europe Holdings, Inc. Subject to the Definitive Documents and as will be described in more detail in the Restructuring Steps Exhibit to be filed with the Plan Supplement, these steps will result in XBP becoming the ultimate parent of Debtors Exela Technologies BPA, LLC, and Neon Acquisition, LLC (and their respective subsidiaries), with the holders of Allowed Notes Claims exchanging their entitlements to equity in those Debtors for newly-issued equity in XBP pursuant to an agreed-upon exchange ratio (the "XBP Transaction"). In addition, Debtor XCV-EMEA, LLC will cause the equity it owns in XBP (as its current indirect parent) to be distributed to the holders of Allowed Notes Claims, in light of XCV-EMEA’s guarantee of certain Notes Obligations. Certain backstop and funding fees notionally payable in the equity of the Debtors will also be satisfied with newly-issued XBP equity (the equity to be issued pursuant to the Plan other than the equity to be distributed by XCV-EMEA is referred to herein and in the Plan as the "Exchanged New Parent Interests"). Holders of Allowed General Unsecured Claims will receive cash consideration through either pro rata participation in the General Unsecured Claims cash recovery or election to participate in the Convenience Class recovery, all as described herein. All other Claims are either unimpaired or receive no recovery, as set forth herein. DIP Financing. The Chapter 11 Cases are being financed by $185 million in post-petition loans and advances to the Debtors, comprising $80 million of New Money Loans and $105 million of Roll-Up Loans (the "DIP Facility"), with backstop participation and funding of the DIP Facility pursuant to the Interim DIP Order open to all April 2026 Noteholders, and participation in the funding of the DIP Facility pursuant to the Final DIP Order open to all April 2026 Noteholders and July 2026 Noteholders, on the terms and conditions set forth in the Final DIP Order and DIP Documents. Exit Financing: * On the Effective Date, the Reorganized Debtors will enter into the Exit Facility (as defined in the Plan Support Agreement) on the terms set forth in the Plan Term Sheet and Exit Facility Documents (each as defined in the Plan Support Agreement), pursuant to which all DIP Obligations shall be converted into Rollover Exit Notes on a cashless basis, except as otherwise provided for a portion of the Sub-Group DIP Lenders' DIP Obligations. * On the Effective Date, the Reorganized Debtors will also enter into a supplemental exit facility to replace or refinance the Debtors' senior secured prepetition term loan facility dated as of July 11, 2023 (the "Blue Torch Facility"), with either (a) the New Blue Torch Facility or (b) the Gates Exit Facility; provided that if the Debtors enter into the Gates Exit Facility, the Blue Torch Facility, including any related guarantees, will be repaid with the proceeds of the Gates Exit Facility. * On the Effective Date, XBP will provide the XBP Funding in an amount of $18 million; in the event the XBP Funding fails to become committed by the deadline for objections established by the Court to confirmation of the Plan or fails to occur on or prior to the Effective Date, and if the Consenting ETI Parties do not instead provide XBP Alternative Funding in the same amount, the Consenting ETI Parties’ equity will be reduced. * On the Effective Date, the Consenting ETI Parties shall be bound by a commitment to pay (a) the first $15 million of Transaction Tax Liability and (b) any Transaction Tax Liability in excess of $25 million, with any amounts of the Transaction Tax Liability between $15 million and $25 million the obligation of the Reorganized Debtors. * Securitization Program: The Reorganized Debtors will continue or replace their existing securitization programs. Recoveries: * Each Holder of an Allowed April 2026 Notes Claim shall receive either (i) if such Holder is not ETI or an ETI Holder, its Noteholder Pro Rata Share of the Non-ETI Equity Distribution (72.5% of Exchanged New Parent Interests issued in exchange for Allowed Notes Claims, subject to reduction by the July 2026 Notes recovery and dilution by all premiums and backstop fees payable in equity), or (ii) if such Holder is ETI or an ETI Holder, its ETI Pro Rata Share of the ETI Equity Distribution (27.5% of Exchanged New Parent Interests issued in exchange for Allowed Notes Claims, subject to reduction by the July 2026 Notes recovery and dilution by all premiums and backstop fees payable in equity) and the New Parent Warrants; provided that the ETI Equity Distribution will be reduced from 27.5% to 12.5% in the event the XBP Funding is not timely committed or funded and is not replaced by the XBP Alternative Funding, in which case the 15% shall be reallocated to Non-ETI Equity Distribution; * Pursuant and subject to the terms of the Committee Settlement, each Holder of an Allowed July 2026 Notes Claims shall receive its Pro Rata Share of a percentage of all Exchanged New Parent Interests issued in exchange for Notes Claims sufficient to ensure Holders of Allowed July 2026 Notes Claims receive the same percentage recovery on their Claims as Non-ETI Holders of Allowed April 2026 Notes Claims; * Pursuant and subject to the terms of the Committee Settlement, Holders of Allowed General Unsecured Claims shall receive their Pro Rata Share of the Unsecured Cash Pool, with such amount being paid out according to a schedule as set forth in the Plan; * Pursuant and subject to the terms of the Committee Settlement, Allowed General Unsecured Convenience Class Claims of an amount equal to or less than $25,000 shall be paid in cash from the proceeds of the Exit Facility in an amount equal to no less than 70% of their Allowed General Unsecured Convenience Class Claim amount; provided that Holders of Allowed General Unsecured Claims of an amount greater than $25,000 may elect to convert their claims to Allowed General Unsecured Convenience Class Claims by reducing the amount of their Allowed General Unsecured Claim to $25,000; and * Other Secured Claims and Prepetition Term Loan Claims are Unimpaired; Intercompany Claims are either reinstated, converted to equity, or otherwise set off, settled, distributed, contributed, cancelled, or released, in each case, in accordance with the Plan; Intercompany Interests will be reinstated for administrative convenience; all Subordinated Claims will be cancelled, released, discharged, and extinguished, and Holders of Subordinated Claims will not receive any distribution on account of such Subordinated Claims; Existing BPA Interests will be canceled, released, discharged, and extinguished; and Other Existing Equity Interests shall be either (i) treated in accordance with the Definitive Documents or (ii) canceled, released, discharged, and extinguished, and shall be of no further force or effect. Class 6 consists of General Unsecured Claims. Except to the extent that a Holder of an Allowed General Unsecured Claim agrees to a less favorable treatment of such Claim, each such Holder shall receive, in full and final satisfaction, settlement, release, and discharge of such Claim, on the Effective Date, as a carve out of collateral (or the value of such collateral) securing the April 2026 Notes Claims, its Pro Rata share of the Unsecured Cash Pool, with such amount being paid out over the following schedule: (i) 1/3 paid within nine months of the Effective Date; (ii) 1/3 paid within eighteen months of the Effective Date; and (iii) 1/3 paid within twenty-seven months of the Effective Date. Holders of Allowed General Unsecured Claims shall be entitled to interest (which interest shall be treated for all purposes as an incremental distribution on account of such Allowed General Unsecured Claim) on unpaid portions of such Holder's Pro Rata share of the Unsecured Cash Pool, accruing at 4% per annum, paid in-kind, commencing on the Effective Date, and such payment obligations shall be secured by collateral reasonably acceptable to the Debtors, the Required Consenting Creditors, and the Committee. The allowed unsecured claims total $11.7 million. This Class will receive a distribution of 40.6% of their allowed claims. The Plan provides that the Debtors will fund Cash distributions under the Plan with Cash on hand, including Cash from operations, and the proceeds of the DIP Facility, Exit Facilities, and the Exit Securitization Programs. The Debtors will make non-Cash distributions as required under the Plan in the form of Exit Debt and Plan Securities. Cash payments to be made pursuant to the Plan will be made by the Reorganized Debtors. The Plan further provides that, from and after the Effective Date, the Reorganized Debtors, subject to any applicable limitations set forth in any post-Effective Date agreement (including the New Organizational Documents, the Exit Facilities Documents, and the Exit Securitization Programs Documents), will have the right and authority without further order of the Bankruptcy Court to raise additional capital and obtain additional financing in accordance with, and subject to, applicable law. A full-text copy of the Disclosure Statement dated May 3, 2025 is available at https://urlcurt.com/u?l=wgda0w from Omni Agent Solutions, Inc., claims agent. Co-Counsel for the Debtors: Timothy A. Davidson II, Esq. Ashley L. Harper, Esq. Philip M. Guffy, Esq. HUNTON ANDREWS KURTH LLP 600 Travis Street, Suite 4200 Houston TX 77002 Tel: (713) 220-4200 Email: taddavidson@hunton.com ashleyharper@hunton.com pguffy@hunton.com -and- Ray C. Schrock, Esq. Alexander W. Welch, Esq. Hugh Murtagh, Esq. Adam S. Ravin, Esq. Jonathan J. Weichselbaum, Esq. LATHAM & WATKINS LLP 1271 Avenue of the Americas New York, NY 10020 Tel: (212) 906-1200 Email: ray.schrock@lw.com alex.welch@lw.com hugh.murtagh@lw.com adam.ravin@lw.com jon.weichselbaum@lw.com About Docudata Solutions Docudata Solutions, LC, together with their Debtors and non-Debtor affiliates (the Company), are a global leader in business process automation. Leveraging their worldwide presence and proprietary technology, the Company offers high-quality payment processing and digital transformation solutions across the Americas and Asia, helping clients enhance efficiency and lower operational costs. The Company has worked with over 60% of the Fortune 100 companies. They provide essential services to top global banks, financial institutions, healthcare payers and providers, and major global brands. These services include finance and accounting solutions, payment technologies, healthcare payer and revenue cycle management, hyper-automation and remote work solutions, enterprise information management, integrated communications and marketing automation, as well as digital solutions for large enterprises. Docudata Solutions and its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Case No. 25-90023) on March 3, 2025. In the petitions signed by Matt Brown, interim chief financial officer, the Debtors disclosed $500 million to $1 billion in estimated assets and $1 billion to $10 billion in estimated liabilities. Judge Christopher M. Lopez oversees the cases. The Debtors tapped Hunton Andrews Kurth LLP and Latham & Watkins LLP, Houlihan Lokey, Financial Advisors, Inc. as investment banker, AlixPartners, LLP as financial advisor. Omni Agent Solutions, Inc. is the Debtors' claims, noticing and solicitation agent. The U.S. Trustee for Region 7 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. EKSO BIONICS: Reports Net Loss of $2.9 Million for Q1 FY25 ---------------------------------------------------------- Ekso Bionics Holdings, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $2.9 million on $3.4 million of revenue for the three months ended March 31, 2025, compared with a net loss of $3.4 million on $3.8 million of revenue for the three months ended March 31, 2024. As of March 31, 2025, the Company had $27.3 million in total assets, $14.6 million in total liabilities, and total stockholders' equity of $12.7 million. Recent Highlights and Accomplishments: * Strengthened financial position by improving operating cash burn by 43% combined with $3.8 million in net proceeds from the exercise of warrants * Named National Seating & Mobility as its exclusive Ekso Indego Personal device distributor within the U.S. complex rehabilitation technology industry * Named Bionic Prosthetics & Orthotics Group as its first Ekso Indego Personal device distributor within the orthotics and prosthetics industry "Over the past few weeks, we have significantly expanded access to Ekso Indego Personal via potentially transformative partnerships with two key leaders within their respective industries," said Scott Davis, the Company's Chief Executive Officer. "NSM, which operates in the CRT industry, brings a network of over 180 locations and more than 2,400 team members, who support more than 250,000 mobility solutions each year. While Bionic P&O, a leading national provider of prosthetic and orthotic solutions, is an ABC accredited independent clinical practice group that now operates across 12 states. Both partnerships represent Ekso Bionics' first entrances into these large and growing markets, and we believe that will start to see increased contribution from our Personal Health products in 2025 as a result." A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/4zhmf6ta About Ekso Bionics Holdings San Rafael, Calif.-based Ekso Bionics Holdings, Inc. designs, develops, and markets exoskeleton products to augment human strength, endurance, and mobility. San Francisco, Calif.-based WithumSmith+Brown PC, the Company's auditor since 2010, issued a 'going concern' qualification in its report dated March 3, 2025, citing that the Company has an accumulated deficit on December 31, 2024 and, since inception, has suffered significant operating losses and negative cash flows from operations. The Company expects to generate operating losses and negative operating cash flows in the future and will require additional funding to support the Company's planned operations which raises substantial doubt about its ability to continue as a going concern. ELEVATE PFS: Moody's Affirms Caa1 CFR & Alters Outlook to Positive ------------------------------------------------------------------ Moody's Ratings affirmed Elevate PFS Parent Holdings, Inc.'s (Elevate) Caa1 corporate family rating and Caa1-PD probability of default rating. Concurrently, Moody's affirmed Elevate PFS Holdings, Inc.'s backed senior secured first lien bank credit facilities ratings at Caa1, which consists of a $30 million revolver due 2028 and a $295 million term loan due 2028. The outlooks for both entities were changed to positive from stable. The change in outlook to positive reflects Moody's expectations of revenue growth in the high single-digits and continued improvement in debt/EBITDA leverage, aided by normalized demand for the company's eligibility RCM services after the expiration of the PHE period in 2023, as well as low but positive free cash flow generation over the next 12-18 months. RATINGS RATIONALE Elevate's Caa1 CFR reflects the company's small scale, high customer concentration, and elevated debt/EBITDA leverage of roughly 6x as of the year ended December 31, 2024 (including Moody's adjustments and pro forma for the company's February acquisition of Mint). Elevate has a narrow operating scope providing technology-enabled revenue cycle management (RCM) services. The company employs about 2,700 employees, including skilled advocates focused on patient eligibility, complex payment review and patient engagement, mostly on behalf of hospitals. The company earns most of its revenue on a contingency basis by enrolling patients that are eligible for Medicaid and other coverage plans and retaining a portion of the payments that it helps its customers collect. The credit profile also reflects the company's adequate liquidity position, concentrated ownership and aggressive financial policies, which can include debt funded acquisitions or distributions to the financial sponsor. Elevate's credit profile is supported by the company's national footprint, long-standing customer base, high retention rates, and Moody's expectations of continued demand for RCM services given the increasing complexity of the payment system. The company's main segment, Eligibility (approximately 60% of total revenue), suffered in 2022 and the first half of 2023 given the longer than expected COVID-19 declaration of a Public Health Emergency (PHE), which extended Medicaid enrollment and reduced re-eligibility volumes. Following the end of the PHE, Elevate's financials metrics have rebounded as eligibility volumes returned, aided by the company's cloud migration and cost cutting initiatives that contributed to margin improvement during 2024. Going forward, Moody's expects revenue growth to be supported by new bookings, cross selling to existing customers, contribution from recent acquisitions, and some possible positive industry tailwinds. Moody's considers Elevate's liquidity profile as adequate, underpinned by Moody's expectations of low cash balances, heavy reliance on its revolver and low but positive free cash flow. As of December 31, 2024, and pro forma for the company's February acquisition of Mint, the company had roughly $7 million cash of on hand and $3 million drawn on the revolver. The revolver balance is sometimes used for earnout payments or for payroll and can fluctuate between quarters depending on timing. Moody's expects Elevate to generate low but positive free cash flow going forward given the return of volumes from eligibility redetermination. The company is subject to a 7.25x net leverage covenant ratio, which was in compliance as of December 31, 2024 with a covenant calculation of 3.17x, leaving ample cushion. Moody's expects the company to be in compliance during the next 12 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be upgraded if revenue growth is sustained along with improved profitability margins and debt/EBITDA leverage remains below 7.0x Expectations of an improvement in liquidity, which includes positive free cash flow and ample revolver availability would also be required for an upgrade. Due to the positive outlook, a ratings downgrade is unlikely over the next 12-18 months. However, ratings could be downgraded if revenue growth and profitability declined and debt/EBITDA leverage increased to over 8.0x, or a deterioration in its liquidity position could also lead to a downgrade. The Caa1 ratings assigned to Elevate's senior secured credit facilities reflect both the Caa1-PD PDR and Moody's Loss Given Default assessment. The senior secured credit facilities are secured by the assets of the issuer and benefit from secured guarantees from its direct parent and from all existing and subsequently acquired wholly-owned domestic subsidiaries. As there is no other material debt in the capital structure, the facilities are rated in line with the Caa1 CFR. Elevate, controlled by affiliates of Frazier Healthcare Partners and Edgewater Funds, is a provider of RCM services, mostly to US hospitals. The company operates in three segments: Eligibility, Patient Responsibility, and AR Services. Revenues during the year ended December 31, 2024 were approximately $270 million. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. ENVELOPE MART: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Envelope Mart of Northeast Ohio, Inc. d/b/a Envelope Mart Print Group d/b/a EM Print Group 1540 Lowell Street Elyria, OH 44035 Business Description: Envelope Mart of Northeast Ohio, Inc., doing business as Envelope Mart Print Group, is a wholesale printing company that produces envelopes, sheet printing, and other print services exclusively for print distributors. Founded in 1975, the family-owned business operates in Northeast Ohio and handles high- volume print orders, including stationery management, instruction sheet programs, and warehousing. Chapter 11 Petition Date: May 18, 2025 Court: United States Bankruptcy Court Northern District of Ohio Case No.: 25-12125 Judge: Hon. Suzana Krstevski Koch Debtor's Counsel: Michael A Steel, Esq. MICHAEL STEEL 2950 West Market Street Suite G Fairlawn, OH 44333 E-mail: msteel@steelcolaw.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million Bradley Thompson, in his role as president, signed the petition. 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/KMATFGI/Envelope_Mart_of_Northeast_Ohio__ohnbke-25-12125__0001.0.pdf?mcid=tGE4TAMA ERIE KASH: Holly Miller Named Subchapter V Trustee -------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed Holly Miller, Esq., at Gellert Scali Busenkell & Brown, LLC as Subchapter V trustee for Erie Kash Out Properties, LLC. Ms. Miller will be paid an hourly fee of $450 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Miller declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Holly S. Miller, Esq. Gellert Scali Busenkell & Brown, LLC 1628 John F. Kennedy Boulevard, Suite 1901 Philadelphia, PA 19103 Telephone: (215) 238-0012 Facsimile: (215) 238-0016 Email: hsmiller@gsbblaw.com About Erie Kash Out Properties Erie Kash Out Properties, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. Pa. Case No. 25-11729) on May 2, 2025, listing $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Judge Ashely M Chan presides over the case. Brad J. Sadek, Esq., at Sadek Law Offices, LLC represents the Debtor as bankruptcy counsel. EVANS INVESTMENT: Mark Sharf Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 17 appointed Mark Sharf, Esq., a practicing attorney in Los Angeles, as Subchapter V trustee for Evans Investment Partners, LLC. Mr. Sharf will charge $660 per hour for his services as Subchapter V trustee and will seek reimbursement for work-related expenses incurred. Mr. Sharf declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Mark Sharf, Esq. 6080 Center Drive, 6th Floor Los Angeles, CA 90045 Telephone: (323) 612-0202 Email: mark@sharflaw.com About Evans Investment Partners Evans Investment Partners, LLC is a limited liability company based in San Francisco, Calif. Evans Investment Partners sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 25-30342) on April 30, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. The Debtor is represented by E. Vincent Wood, Esq., at Shepherd & Wood, LLP. F.I.A. LLC: Seeks Chapter 11 Bankruptcy in Louisiana ---------------------------------------------------- On May 13, 2025, F.I.A. LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Louisiana. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About F.I.A. LLC F.I.A. LLC is a real estate lessor based in Louisiana, with its principal assets located at 564 Hwy. 171 Bypass, Many, LA 71449. F.I.A. LLCsought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. La. Case No. 25-80288) on May 13, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Stephen D. Wheelis handles the case. The Debtors are represented by Conner L. Dillon, Esq. at GOLD, WEEMS, BRUSER, SUES & RUNDELL, A PLC. FIREFLY NEUROSCIENCE: Acquires Evoke Neuroscience for $6.5-Million ------------------------------------------------------------------ Firefly Neuroscience Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on April 30, 2025, the Company entered into a Securities Purchase Agreement with Evoke Neuroscience, Inc. and stockholders of Evoke, where the Sellers sold and the Company purchased all the issued and outstanding shares of Evoke, for a total purchase price consisting of: (i) $3,000,000 in cash; (ii) shares of the Company's common stock having an aggregate value of $3,000,000 priced at $3.50 per share; and (iii) an earn-out payment in the form of additional shares of the Company's common stock with an aggregate value of $500,000, contingent upon the achievement of specified revenue targets during a 36-month earn-out period, all as further described in the Securities Purchase Agreement. Each Seller agreed not to sell, transfer, or otherwise dispose of any Shares, or engage in any transaction that would transfer the economic benefits of the Shares during the Lock-Up Period without the prior written consent of the Company. The Lock-Up Period began on the closing date and will end on the earlier of: (a) six months after the closing date or (b) the effective date of a registration statement filed by the Company with the SEC covering the resale of the Shares. In addition, if the estimated working capital is below $90,000, the Purchase Price shall be reduced by the shortfall, though no increase would occur if the working capital exceeds the Minimum Working Capital Threshold. Additionally, $150,000 of the Cash Purchase Price were wired directly to evoke to fund post-closing operational expenses, and the Operational Expense Amount shall be excluded from calculating the Closing Working Capital (as defined in the Securities Purchase Agreement), the Minimum Working Capital Threshold, and the Final Closing Statement. Within 90 days after closing, the Company will provide a final closing statement with the actual figures prepared in good faith. The transactions contemplated under the Securities Purchase Agreement were closed on May 1, 2025, which were subject to customary closing conditions, including, without limitation, the completion of mutually satisfactory due diligence; compliance with applicable regulatory requirements; the Company entering into a satisfactory consulting agreement with David W. Hagedorn; Evoke having no outstanding debt or liabilities in default; the receipt of any required shareholder approvals; and the delivery of evidence of debt payoff from the Company's loan holders. As a result of the acquisition, Firefly's assets and business now include: * The largest known proprietary database of >180,000 standardized, EEG/ERP assessment records * 27 granted patents * > 60 current commercial users These increases in propriety brain scans, patents and commercial sites represent greater than two-fold, three-fold and 10-fold expansions, respectively, as a result of the acquisition. Purchase terms include: * $6 million, to be paid 50% in cash and 50% in Firefly's common stock priced at $3.50 per share. * Eligibility for Evoke's investors to receive a $500,000 earn-out to be paid in cash upon Evoke's acquired business achieving at least $3 million in annualized revenues within the next three years. "Over the past 16 years, we have generated approximately $30 million in total revenues while also amassing the largest known collection of EEG/ERP electrophysiology data via our proprietary hardware and software developed to aid in the diagnosis of brain disorders and disease," said David Hagedorn Ph.D., BCN, Evoke's CEO and CSO. "Given the obvious technological, clinical and commercial synergies between Evoke and Firefly, we believe this transaction represents a natural and important evolutionary step for both companies as we work together to establish a strong and growing business for all of our shareholders." "These are exciting times as Firefly enters into a period of anticipated rapid growth and potentially game-changing innovation," said Greg Lipschitz, CEO of Firefly. "As our already unparalleled BNA™ database continues to grow with each new clinical study and/or clinical assessment in which our respective technologies are used, and armed with vital access to NVIDIA's advanced software development resources, industry-leading frameworks and software development kits, we believe this acquisition of Evoke represents a key step toward Firefly fulfilling its goal of building the world's first EEG /ERP-based foundation model of the human brain." About Firefly Firefly (NASDAQ: AIFF) (formerly WaveDancer, Inc.) is an Artificial Intelligence company developing innovative solutions that improve brain health outcomes for patients with neurological and mental disorders. The FDA-510(k)-cleared Brain Network Analytics (BNA) software platform is designed to advance diagnostic and treatment approaches for individuals with mental illnesses and cognitive disorders, such as depression, dementia, anxiety, concussions, and attention-deficit/hyperactivity disorder (ADHD). Toronto, ON, Canada-based Marcum Canada LLP, the Company's auditor since 2012, issued a "going concern" qualification in its report dated Apr. 2, 2025, attached on the Company's Annual Report on Form 10-K for the year ended Dec. 30, 2024, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of Dec. 31, 2024, the Company had $4,601,000 in total assets, $4,976,000 in total liabilities, and a total stockholders'deficit of $375,000. FMC CORP: S&P Rates New Unsecured Subordinated Hybrid Notes 'BB' ---------------------------------------------------------------- S&P Global Ratings assigned its 'BB' issue rating to the proposed unsecured subordinated hybrid notes due in 2055 to be issued by global agricultural sciences company FMC Corp. (BBB-/Negative/A-3). S&P said, "The rating is two notches lower than our 'BBB-' long-term issuer credit rating on FMC. One notch reflects the notes' subordination, and we deduct an additional notch for payment flexibility because the option to defer interest stands with the issuer. The rating on the proposed hybrid is two notches below the ratings on FMC's senior unsecured notes. "We assess the proposed notes as having intermediate equity content. The instrument can absorb losses by allowing interest deferral, is subordinate to all senior debt obligations, and has characteristics of permanence. In addition, to reflect our view of the intermediate equity content of the proposed notes, we treat 50% of the related payments as interest and 50% as equivalent to a common dividend. This also applies to our adjustment of debt. We note that the notes are redeemable at 102% of principal plus interest within 120 days of a defined rating agency event, when a rating agency that publishes ratings on FMC amends its criteria or methodology for assigning equity content to similar hybrid issuances, diluting the time or amount of equity credit afforded to the instrument. "We expect FMC to use the proceeds to repay its $500 million of senior notes due in May 2026 and the remainder for general corporate purposes. This may include repayment of commercial paper. The company's credit measures are stretched for the ratings, with an adjusted debt to EBITDA ratio of over 5x as of March 31, 2025. However, with this transaction, we expect deleveraging this year to 4.1x and, through operational improvement and continued deleveraging, next year to 3.5x." FOOT LOCKER: Moody's Puts 'Ba3' CFR on Review Direction Uncertain ----------------------------------------------------------------- Moody's Ratings placed all Foot Locker, Inc.'s (Foot Locker) ratings on review with direction uncertain. This includes its Ba3 corporate family rating, Ba3-PD probability of default rating and B1 senior unsecured notes rating. The outlook was changed to ratings on review from stable. The speculative grade liquidity (SGL) rating remains unchanged at SGL-2. The review with direction uncertain follows the announcement [1] that Dick's Sporting Goods, Inc. (Dick's, Baa2 RUR-Down) has entered into a definitive agreement to acquire Foot Locker for an enterprise value of approximately $2.5 billion. The transaction is subject to regulatory and Foot Locker shareholder approvals and is expected to close in the second half of 2025. The review direction uncertain reflects Moody's expectations that if the transaction closes, Foot Locker's ratings are likely to be upgraded. However, it also reflects that if the transaction does not close, Foot Locker's ratings could be downgraded given Moody's expectations that revenue and earnings will weaken in 2025 as a result of higher expected product costs due to tariffs and weak discretionary spending particularly among Foot Locker's core demographic, which has below average household income. "Foot Locker's transformation efforts continue to face challenges from increasing strains on its core customers," said Moody's Vice President Raya Sokolyanska. "While the company is making progress with its Reimagine store format, investing in technology, and strengthening the NIKE relationship while expanding with other sportswear brands, revenues have continued to decline and operating margin remains low." RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The review will focus on the likelihood and timing of the transaction, as well as Dick's plans for the existing debt at Foot Locker, including whether Foot Locker's notes will be repaid, guaranteed or legally assumed by Dick's. The review will also consider Foot Locker's financial performance and ability to mitigate revenue and cost pressures in an uncertain retail environment. Moody's could upgrade Foot Locker's ratings if the acquisition by Dick's closes, based on the acquirer's higher creditworthiness. Absent the acquisition, the ratings could be upgraded if the company demonstrates significant earnings recovery and strong positive free cash flow generation. An upgrade would also require continued progress in the implementation of the company's Lace Up plan and a return to growth with its key vendor NIKE. Quantitatively, the ratings could be upgraded if Moody's-adjusted EBIT/interest expense is maintained above 2.75x. In the absence of the expected transaction, the ratings could be downgraded if Foot Locker's comparable sales and operating income do not improve or if liquidity weakens for any reason, including negative free cash flow or a reduced cash balance. More aggressive financial strategies including a return to dividend distributions before material improvement in earnings could also lead to a downgrade. A reduction in Foot Locker's access to key traffic-driving products from major vendors, persistent underperformance relative to industry peers or a material lasting shift in consumer preference away from premium athletic shoes could also result in a downgrade. Quantitatively, the ratings could be downgraded should Moody's-adjusted EBIT/interest expense be sustained below 2.0x. Headquartered in New York, NY, Foot Locker, Inc. is a specialty retailer that sells primarily athletic footwear, apparel, and accessories through over 2,400 stores globally, as well as its websites and mobile apps. Banners include Foot Locker, Kids Foot Locker, Champs Sports, WSS and atmos. Revenue for the fiscal year ended February 01, 2025 was around $8.0 billion. Headquartered in Coraopolis, PA, Dick's Sporting Goods is a specialty retailer of sporting goods and athletic apparel. The company operates 856 stores in 47 states and online under the DICK's Sporting Goods, House of Sport, Golf Galaxy, Gamechanger and Public Lands nameplates. Revenue was $13.4 billion for the fiscal year ended February 01, 2025. Dick's is a public controlled company with majority ownership by Mr. Edward Stack. The principal methodology used in these ratings was Retail and Apparel published in November 2023. FTX TRADING: Ch. 11 Clawback Suit Baseless, Binance Says -------------------------------------------------------- Ben Zigterman of Law360 reports that Binance has requested a Delaware bankruptcy judge to throw out FTX's lawsuit seeking to reclaim $1.76 billion transferred to Binance, accusing FTX's estate of trying to deflect responsibility for the company's November 2022 collapse. About FTX Trading Ltd. FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 million in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10 showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The official committee of unsecured creditors tapped Paul Hastings as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as Delaware and conflicts counsel; FTI Consulting, Inc. as financial advisor; and Jefferies, LLC as investment banker. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. GENESIS GLOBAL: Sues Digital Currency for Alleged $1-Bil. Transfers ------------------------------------------------------------------- Angelica Serrano-Roman of Bloomberg Law reports that Genesis Global Capital has sued its parent company, Digital Currency Group (DCG), aiming to recover over $1 billion in transfers made in the year prior to its bankruptcy filing. In a complaint filed Monday, May 19, 2025, in the U.S. Bankruptcy Court for the Southern District of New York, Genesis claims that DCG, its founder Barry Silbert, and related affiliates exchanged funds among themselves while the firm was insolvent. The crypto lender is seeking to void the transactions as preferential transfers under bankruptcy law and reclaim their value. About Genesis Global Genesis Global Holdco, LLC, through its subsidiaries, and Global Trading, Inc., provide lending and borrowing, spot trading, derivatives and custody services for digital assets and fiat currency. Genesis Global Capital, LLC (GGC) and Genesis Asia Pacific PTE. LTD. (GAP) provide lending and borrowing, spot trading, derivatives and custody services for digital assets and fiat currency. Genesis Global Holdco, LLC owns 100% of GGC and GAP. Genesis Global Holdco, LLC, GGC and GAP each filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 23-10063) on Jan. 19, 2023. The cases are pending before the Honorable Sean H. Lane. At the time of the filing, Genesis Holdco reported $100 million to $500 million in both assets and liabilities. Genesis Holdco is a sister company of Genesis Global Trading, Inc. ("GGT") and 100% owned by Digital Currency Group, Inc. ("DCG"). GGT, DCG and certain of the Holdco subsidiaries are not included in the Chapter 11 filings. The non-debtor subsidiaries include Genesis UK Holdco Limited, Genesis Global Assets, LLC, Genesis Asia (Hong Kong) Limited, Genesis Bermuda Holdco Limited, Genesis Custody Limited ("GCL"), GGC International Limited ("GGCI"), GGA International Limited, Genesis Global markets Limited, GSB 2022 II LLC, GSB 2022 III LLC and GSB 2022 I LLC. The Debtors tapped Cleary Gottlieb Steen & Hamilton, LLP as bankruptcy counsel; Morrison Cohen, LLP as special counsel; Alvarez & Marsal Holdings, LLC as financial advisor; and Moelis & Company, LLC as investment banker. Kroll Restructuring Administration, LLC, is the Debtors' claims and noticing agent and administrative advisor. The ad hoc group of creditors is represented by Kirkland & Ellis, LLP and Kirkland & Ellis International, LLP. The ad hoc group of Genesis lenders is represented by Proskauer Rose, LLP. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee tapped White & Case, LLP as bankruptcy counsel; Houlihan Lokey Capital, Inc., as investment banker; Berkeley Research Group, LLC as financial advisor; and Kroll as information agent. GIUSEPPE AND THE LION: Seeks Subchapter V Bankruptcy in Florida --------------------------------------------------------------- On May 5, 2025, Giuseppe And The Lion Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Middle District of Florida. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Giuseppe And The Lion Inc. Giuseppe And The Lion Inc. operates an Italian and sushi restaurant in Naples, Florida, offering live entertainment alongside its dining experience. Established in 1991, the restaurant blends Italian and Japanese cuisines, serving signature dishes such as Chicken and Artichoke Hearts Pasta and Pasta Bayou. It has become a popular destination for both locals and visitors. Giuseppe And The Lion Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00871) on May 5, 2025. In its petition, the Debtor reports estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Caryl E. Delano handles the case. The Debtors are represented by Michael Dal Lago, Esq. at DAL LAGO LAW GREENFIRE RESOURCES: Moody's Alters Outlook on 'B3' CFR to Negative ------------------------------------------------------------------- Moody's Ratings changed Greenfire Resources Ltd.'s outlook to negative from stable. At the same time, Moody's affirmed Greenfire's B3 corporate family rating, B3-PD probability of default rating, and B3 senior secured notes rating. The speculative grade liquidity rating was downgraded to SGL-3 from SGL-2. The ratings outlook was changed to negative from stable. "The negative outlook reflects Greenfire's inconsistent operational track record and Moody's expectations for significantly lower production levels than Moody's previously expected for 2025," said Whitney Leavens, Moody's Ratings analyst. "The affirmation incorporates Moody's expectations that Greenfire will improve its execution, achieve some growth in production in 2026 and sustain adequate liquidity in the near term supported by significant cash balances, as well as hedging, currently narrow WCS differentials and the ability to cut capital spending to conserve cash if needed," she added. RATINGS RATIONALE Greenfire's B3 CFR is constrained by: (1) a short and inconsistent operational track record and high execution risks around sustaining and growing production; (2) a small and declining production and proved developed reserves base; (3) sole exposure to bitumen and high asset concentration exposing the company to regional risks and limiting operational flexibility. The company's credit profile is supported by: (1) a reserve base characterized by low capital costs to sustain production; (2) majority ownership by Waterous Energy Fund (WEF) since late 2024, with crossover experience of developing other Canadian oil and gas assets. Following a period of underperformance, WEF has appointed a new management team that is conducting a comprehensive review of the company's operations and strategy. Greenfire's liquidity is adequate (SGL-3). Sources total around C$120 million, including about C$70 million in cash as of Q1-25 and full availability under the C$50 million reserve based lending facility. Moody's liquidity assessment assumes the facility will be extended by the end of May 2025; otherwise, the facility will no longer be available on a revolving basis and term out, with any borrowings due May 2026. Uses of liquidity over the next twelve months through Q1-26 total nearly C$35 million, including Moody's estimates of negative free cash flow of around C$20 million (assuming average WTI oil price of $60/bbl in 2025-26 and $15/bbl WCS/WTI differential), and close to C$12 million in mandatory debt repayments. Greenfire does not have financial covenants. Greenfire's senior secured notes mature in 2028. The B3 rating on the company's senior secured notes is in line with the B3 CFR, reflecting that the notes constitute the preponderance of Greenfire's capital structure. The negative outlook reflects Greenfire's high execution risks related to free cash flow generation and to growing production. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if the company generates sustained negative free cash flow, or if its liquidity weakens, or if the company is not be able to grow its production in the near term. The ratings could be upgraded if Greenfire is able to establish a consistent operational track record and significantly increase its proved developed (PD) reserves and production, reduce debt and strengthen its leverage metrics and maintain an adequate liquidity profile. The principal methodology used in these ratings was Independent Exploration and Production published in December 2022. Greenfire is an Alberta based steam-assisted-gravity-drainage (SAGD) oil sands developer and operator in the Athabasca Oil Sands region in Northern Alberta. HIGH WIRE: Sells Series G Convertible Preferred Shares to GHS ------------------------------------------------------------- High Wire Networks, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company entered into a Securities Purchase Agreement with an institutional investor, GHS Investments, LLC, pursuant to which the Company issued 250 shares of a newly created Series G Convertible Preferred Stock, which is convertible into common stock, par value $0.00001 per share, of the Company. The material features of the Preferred Stock, as set forth in the Certificate of Designation for the Preferred Stock, include the following: (i) the Preferred Stock is convertible into shares of the Company's common stock at a price equal to 90% of the lowest traded price of the Common Stock during the 10 trading days immediately preceding any conversion; (ii) conversions are limited so that no conversion may be made to the extent that, following a conversion, the beneficial ownership of the Investor and its affiliates would be more than 4.99% of the Company's outstanding shares of common stock; (iii) the Preferred Stock is entitled to receive dividends at an annual rate of 12% on the stated value thereof, payable quarterly in arrears, in cash or by the issuance of additional shares of Preferred Stock; (iv) on the earlier of the (1) 90th calendar day following the issuance date and (2) the date the Common Stock is listed on a national exchange, the Company has the obligation to redeem the Preferred Stock for an amount equal to 110% of the outstanding Stated Value of the Preferred Stock, plus any accrued but unpaid dividends, plus all other amounts due to the Investor pursuant to the Certificate of Designation; and (v) the Preferred Stock will vote together with the Company's common stock on an as-converted basis on all matters submitted to a vote of its shareholders, but not in excess of the 4.99% conversion limitation. Under additional covenants set forth in the COD, holders of the Preferred Stock enjoy certain other rights, including: (i) upon the consummation of an underwritten offering by the Company resulting in net proceeds of at least $3,000,000, occurring prior to the one year anniversary of the issue date, the Investor shall have the option to convert their Preferred Stock, along with any other preferred stock of the Company then held by them, into the securities issued in such underwritten offering, at a 35% discount to the public offering price at which the securities in such offering are issued; (ii) the Investor has the right to have the conversion price adjusted downward to match the conversion price of any newly-issued variable price convertible security with a conversion price more favorable than that set forth in the COD; (iii) Investor has the right to participate in up to 20% of any future financings we may conduct. The Company relied on the exemption from registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended and Regulation D promulgated thereunder in connection with the issuance and sale of the Preferred Stock and Conversion Shares. The offer and sale of the Preferred Stock and Conversion Shares have not been registered under the Securities Act and may not be offered or sold in the United States in the absence of an effective registration statement or exemption from the registration requirements of the Securities Act, and in each case in compliance with applicable state securities laws. Full text copies of the SPA and the COD are filed as Exhibits to the Form 8-K, available at https://tinyurl.com/y62bbtry About High Wire High Wire Network, Inc., incorporated on Jan. 20, 2017, is a global provider of managed cybersecurity, managed networks, and tech-enabled professional services delivered exclusively through a channel sales model. The Company's Overwatch managed security platform-as-a-service offers organizations end-to-end protection for networks, data, endpoints, and users via multiyear recurring revenue contracts in this fast-growing technology segment. HWN has continuously operated under the High Wire Networks brand for 23 years. Draper, Utah-based Sadler, Gibb & Associates, LLC, the Company's auditor since 2014, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has incurred losses since inception, has negative cash flows from operations, and has negative working capital, which creates substantial doubt about its ability to continue as a going concern As of Dec. 31, 2024, the Company had $5,786,771 in total assets, $7,635,930 in total liabilities, and a total stockholders' deficit of $1,849,159. HIGHLANDS GROUP: To Sell Somerset Property to Jed and Amy Karalfa ----------------------------------------------------------------- The Highlands Group LLC seeks permission from the U.S. Bankruptcy Court for the Western District of Pennsylvania, to sell Property, free and clear of liens, interests, and encumbrances. The Debtor's Property are two vacant lots which are part of the real property identified on the Debtor's schedules as 424 Country Club Road, Johnstown, PA 15905 in Somerset County, PA and are approximately one acre each. The Debtor operates its golf course complex on the overall acreage on which the vacant lots are situated. The Debtor receives a purchase offer in the amount of $45,000.00 from Jed and Amy Karalfa for acreage as described in the Standard Agreement for Sale of Vacant Land as follows: Saylor School Road Lots 1 & 2 Municipality of Conemaugh Twp. S-12 School District of Conemaugh Twp Somerset County Tax ID S12-03-56 PART OF PARCEL Part of Identification #2747/838 The Real Property is encumbered by the following known liens: a) First mortgage lien held by 1st Summit Bank with and approximate amount owed of $222,000.00; b) Mortgage lien held by Jari Growth Fund, Inc. with claimed amount owed of $23,598.92; c) Mortgage lien held by Johnstown Regional Industries, Inc. with claimed amount owed of $18,291.51; d) Mortgage lien held by Pennsylvania Industrial Development Authority with claimed amount owed of $178,960.15; The Debtor employs Robert Colvin and Remax Team Realtors as Realtor. The Realtors have procured the sale offer for the Debtor and the estate and would receive a commission of 6% of the total sale price or $3,500.00, whichever is greater, plus $450.00 subject to court approval. The Buyer's offer is a cash offer and is not subject to any mortgage contingency. The sale will be advertised according to local and national rules and will request higher or better offers at hearing on sale. About The Highlands Group LLC The Highlands Group LLC in Johnstown, PA, filed its voluntary petition for Chapter 11 protection (Bankr. W.D. Pa. Case No. 24-70160) on April 22, 2024, listing as much as $1 million to $10 million in both assets and liabilities. Brian C. Durham as member, signed the petition. Judge Jeffery A. Deller presides over the case. STEIDL & STEINBERG, P.C., serves as the Debtor's legal counsel. HYPERSCALE DATA: Prelim Q1 Revenue Hits $25 Million --------------------------------------------------- Hyperscale Data, Inc., announced preliminary financial results for the first quarter of 2025, which ended March 31, 2025, with revenue surpassing $25 million. The Company also issued guidance for the full fiscal year 2025, projecting revenue between $115 million and $125 million. The Company notes year-over-year growth at its subsidiaries, Ault Global Real Estate Equities, Inc., Circle 8 Crane Services, LLC and TurnOnGreen, Inc. In the first quarter, Hyperscale Data recognized a significant one-time gain of approximately $9.7 million due to the deconsolidation of Avalanche International, Corp. Additionally, the Company is continuing to transition its Michigan data center into a cutting-edge artificial intelligence ("AI") data center, positioning itself at the forefront of AI infrastructure and service growth. "2025 is off to a strong start with growth across several of our core businesses," said William B. Horne, Chief Executive Officer of Hyperscale Data. "Our transition of the Michigan facility to an AI data center and partial divestment of non-core assets are key milestones as we position Hyperscale Data for long-term success." The Company's strategic transition and focus on high-growth sectors are designed to ensure that Hyperscale Data is prepared to capture emerging opportunities and deliver sustained value to its stockholders. The Company encourages stockholders to read the About Hyperscale Data, Inc. section for information regarding the upcoming divestiture of certain Company assets. For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data's public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov. About Hyperscale Data Headquartered in Las Vegas, NV, Hyperscale Data, Inc., formerly known as Ault Alliance, Inc., is transitioning from a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact to becoming solely an owner and operator of data centers to support high performance computing services. Through its wholly and majority-owned subsidiaries and strategic investments, Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries. It also provides, through its wholly owned subsidiary, Ault Capital Group, Inc., mission-critical products that support a diverse range of industries, including an artificial intelligence software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, Hyperscale Data is actively engaged in private credit and structured finance through a licensed lending subsidiary. New York, New York-based Marcum LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated Apr. 15, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. ICAHN ENTERPRISES: Moody's Lowers CFR to 'B1', Outlook Stable ------------------------------------------------------------- Moody's Ratings has downgraded Icahn Enterprises L.P.'s (IEP) corporate family rating and backed senior secured debt ratings to B1 from Ba3. Its probability of default rating has also been downgraded to B1-PD from Ba3-PD. The outlook has been changed to stable from negative. RATINGS RATIONALE The downgrade reflects the weak operating performance of IEP's core subsidiaries, lackluster investment results, and financial policies that Moody's believes favor depositary unitholders over creditors. As of March 31, 2025, IEP's net asset value totaled $3 billion, down about 39% from a year ago. This decline has deteriorated its market value-based leverage and weakened coverage of upcoming debt maturities, aligning IEP's credit profile more closely with B-rated investment holding companies. The rating action also reflects the diminished creditworthiness of IEP's largest dividend-paying subsidiary, CVR Energy, Inc. (B2 negative). Slowing economic growth keeps crack spreads volatile and weigh on the segment's cash flow generation. Additionally, the energy segment's continued dividend suspension pressures IEP's already weak interest coverage ratio, which stood at 1.35x for the twelve months ending March 31, 2025. Although IEP's real estate segment has provided significant distributions, averaging around $40 million annually over the past three years, these cash flows on their own are insufficient to cover the holding company's roughly $332 million in annual interest expenses. While cash flow and earnings generation has deteriorated, IEP's liquid resources remain strong with $1,318 million in cash at the holding company, and $2,479 million in liquid investments as of March 31, 2025. While IEP's operating companies have modest direct exposure to US trade policy, they are procyclical. The firm's choice to use available cash flows for unitholder distributions, despite uncertain economic conditions, reflects a high financial risk tolerance. Currently, IEP's distribution policy results in annualized cash outflows of about $100 million for depositary units not held by insiders. When combined with the unpredictable cash election decision of its majority unitholder, Mr. Carl Icahn, raises the liquidity demands on the firm. IEP's B1 CFR reflects its substantial liquidity reserves and track record of activist investing, though these strengths are tempered by the firm's high market value-based leverage, low interest coverage, and the key person risks associated with its reliance on its chairman and majority depositary unitholder. The stable outlook reflects IEP's substantial cash and liquidity resources which, given the sensitivity of its operating subsidiaries to the macroeconomic environment, will help it navigate increasing market volatility or a prolonged downturn. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS IEP's ratings could be upgraded if: 1) the Energy segment's profitability improves such that its regular dividends are restored to levels commensurate with its historical targets, or IEP's other operating subsidiaries contribute meaningful and regular distributions that diversify its funds from operations; 2) there is a sustained improvement in the Investment Funds' performance; or 3) the firm adopts financial policies that maintain the strength of its liquidity profile and lowers market value-based leverage below 40% on a sustained basis. Conversely, IEP's ratings could be downgraded if: 1) market value-based leverage increases significantly, hampering the firm's ability to execute its activist agenda; or 2) the holding company's available cash and liquidity resources are significantly depleted including due to an increase in unitholder distributions without a corresponding improvement to core operating performance; or 3) there is further reduction in the creditworthiness or valuations of the firm's principal operating subsidiaries. The principal methodology used in these ratings was Investment Holding Companies and Conglomerates published in April 2023. J MCCLOUD REALTY: Holly Miller Named Subchapter V Trustee --------------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed Holly Miller, Esq., at Gellert Scali Busenkell & Brown, LLC as Subchapter V trustee for J McCloud Realty, LLC. Ms. Miller will be paid an hourly fee of $450 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Miller declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Holly S. Miller, Esq. Gellert Scali Busenkell & Brown, LLC 1628 John F. Kennedy Boulevard, Suite 1901 Philadelphia, PA 19103 Telephone: (215) 238-0012 Facsimile: (215) 238-0016 Email: hsmiller@gsbblaw.com About J McCloud Realty J McCloud Realty, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. Pa. Case No. 25-11778) on May 6, 2025, listing between $500,001 and $1 million in assets and between $500,001 and $1 million in liabilities. Judge Ashely M. Chan presides over the case. Michael I. Assad, Esq. and Brad J. Sadek, Esq. at Sadek Law Offices, LLC represents the Debtor as legal counsel. JAGUAR HEALTH: Investors Waive VRT Restriction for New Issuances ---------------------------------------------------------------- As previously reported, on March 26, 2025, Jaguar Health, Inc. entered into securities purchase agreements with certain accredited investors, pursuant to which the Company agreed to sell to the Investors, and the Investors agreed to purchase from the Company, approximately $3.4 million aggregate principal amount of 6% convertible promissory notes and warrants to purchase shares of common stock of the Company in a private placement. Pursuant to each Securities Purchase Agreement, for a period of one year from the date on which the registration statement registering the resale of the shares of Company's common stock underlying the Securities is declared effective by the United States Securities and Exchange Commission, the Company agreed not to issue certain securities if the issuance would constitute a Variable Rate Transaction. On May 5, 2025, Investors holding a majority of the Securities executed limited waivers that permit the Company, from time to time, to issue certain additional securities as specified in the Limited Waiver. The full text of such Limited Waiver is available at https://tinyurl.com/z5cubkdf About Jaguar Health Jaguar Health, Inc. -- http://www.jaguar.health-- is a commercial-stage pharmaceuticals company focused on developing novel, plant-based, sustainably derived prescription medicines for people and animals with gastrointestinal ("GI") distress, including chronic, debilitating diarrhea. Jaguar Health's wholly owned subsidiary, Napo Pharmaceuticals, Inc., focuses on developing and commercializing proprietary plant-based human pharmaceuticals from plants harvested responsibly from rainforest areas. The Company's crofelemer drug product candidate is the subject of the OnTarget study, a pivotal Phase 3 clinical trial for prophylaxis of diarrhea in adult cancer patients receiving targeted therapy. Larkspur, California-based RBSM, LLP, the Company's auditor since 2022, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has an accumulated deficit, recurring losses, and expects continuing future losses. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company, since its inception, has incurred recurring operating losses and negative cash flows from operations and has an accumulated deficit of $346.5 million as of December 31, 2024. As of Dec. 31, 2024, the Company had $53.4 million in total assets, $44.4 million in total liabilities, $2.5 million in commitments and contingencies and a total stockholders'equity of $6.5 million. JSP MANAGEMENT: Section 341(a) Meeting of Creditors on June 23 -------------------------------------------------------------- On May 16, 2025, JSP Management Company LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Florida. According to court filing, the Debtor reports $1,563,883 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be Held on June 23,2025 at 01:00 PM at by U.S. Trustee TELECONFERENCE. To participate call 866-915-4419 passcode 6071331. About JSP Management Company LLC JSP Management Company LLC owns property located at 1029 NE 104 Street in Miami Shores, Florida. The property's estimated value is $2.28 million, according to Zillow. JSP Management Company LLCsought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-15486) on May 16, 2025. In its petition, the Debtor reports total assets of $2,277,602 and total liabilities of $1,563,883. Honorable Bankruptcy Judge Robert A. Mark handles the case. The Debtors are represented by Rachamin "Rocky" Cohen, Esq. at COHEN LEGAL SERVICES, PA. KEYSTONE PASSIONATE: Seeks Cash Collateral Access ------------------------------------------------- Keystone Passionate Care, LLC asked the U.S. Bankruptcy Court for the Middle District of Pennsylvania for authority to use cash collateral. The Debtor owes approximately $201,000 to secured lenders Truist Bank, Key Bank and United Consumer Financial Services, which hold security interests in its personal property, including inventory and accounts receivable. The Debtor has minimal cash, about $190,000 in receivables, and $3,000 in equipment. To maintain operations and avoid harm to its estate and creditors, the Debtor needs to use its cash collateral to cover payroll for 101 employees, utilities, insurance, and other essential expenses. As protection for the secured lenders, the Debtor proposed granting them replacement liens on post-petition cash collateral and other assets, to the extent of any diminution in their pre-bankruptcy collateral. If replacement liens are insufficient, the lenders would receive administrative claims with priority over all other administrative expenses—except for professional fees and U.S. Trustee fees. About Keystone Passionate Care Keystone Passionate Care, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Pa. Case No. 1:25-bk-01004-HWV) on April 11, 2025. In the petition signed by Deandre Nordt, president, the Debtor disclosed up to $500,000 in both assets and liabilities. Judge Henry W. Van Eck oversees the case. Robert E. Chernicoff, Esq., at Cunningham, Chernicoff & Warshawsky PC, represents the Debtor as legal counsel. KIDDE-FENWAL: Connecticut, Other States Block $540MM Deal --------------------------------------------------------- Lauren Berg of Law360 reports that Connecticut and other states on Monday, May 19, 2025, opposed Carrier Global Corp.'s proposed $540 million settlement that would shield it from liability in lawsuits over "forever chemicals" linked to its bankrupt subsidiary, Kidde-Fenwal Inc. The states cited a recent U.S. Supreme Court decision that struck down a comparable deal in Purdue Pharma LP's bankruptcy case. About Kidde-Fenwal Inc. Kidde-Fenwal Inc. -- https://www.kidde-fenwal.com/ -- manufactures fire protection systems. It offers products such as fire control systems, explosion aircraft protection, laser-based smoke detection devices, electronic gas ignitions, and fire suppressions. Kidde-Fenwal markets its products to mining, manufacturing, education, and commercial sectors. Kidde-Fenwal sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 23-10638) on May 14, 2023. In the petition filed by its chief transformation officer, James Mesterharm, the Debtor reported assets between $100 million and $500 million and estimated liabilities between$1 billion and $10 billion. The Debtor tapped Sullivan & Cromwell, LLP and Morris Nichols Arsht & Tunnell, LLP as legal counsels; and Guggenheim Securities, LLC as investment banker. Stretto, Inc. is the claims and noticing agent and administrative advisor. KIDZ TYME: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: Kidz Tyme Foundation Incorporated 4332 NW 17 Avenue Miami FL 34747 Business Description: Kidz Tyme Foundation Incorporated operates as a lessor of residential properties in Miami, Florida. The organization manages and leases residential buildings, providing housing solutions within the local community. Chapter 11 Petition Date: May 19, 2025 Court: United States Bankruptcy Court Southern District of Florida Case No.: 25-15578 Judge: Hon. Corali Lopez-Castro Debtor's Counsel: Christopher Hixson, Esq. HIXSON LAW GROUP 18167 U.S. Highway 19 N, Suite 250 Clearwater FL 33764 Tel: 833-203-5294 Email: chris@hixlawgroup.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Tanisha Curry as president. The Debtor failed to attach a list of its 20 largest unsecured creditors to the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/NNYG75I/Kidz_Tyme_Foundation_Incorporated__flsbke-25-15578__0001.0.pdf?mcid=tGE4TAMA KRATON CORP: Moody's Withdraws 'B1' Corporate Family Rating ----------------------------------------------------------- Moody's Ratings has withdrawn Kraton Corporation's (Kraton) B1 Corporate Family Rating and B1-PD Probability of Default Rating. The rating outlook has been changed to no outlook from negative. There is no change to the company's backed senior unsecured notes guaranteed by Korea Development Bank (KDB, Aa2/P-1 stable). RATINGS RATIONALE Moody's have decided to withdraw the rating(s) because of inadequate information to monitor the rating(s), due to the issuer's decision to cease participation in the rating process. The Aa2 rating on Kraton's backed senior unsecured notes remains unchanged and reflects KDB's Aa2(cr) long-term Counterparty Risk (CR) Assessment, because KDB provides an unconditional and irrevocable guarantee for the notes. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. COMPANY PROFILE Kraton Corporation, headquartered in Houston, Texas, is a major global producer of styrenic block copolymers (SBCs) and specialty chemicals derived from pine wood pulping co-products. Major end uses for Kraton's products include paving, roofing, personal care products, adhesives, sealants, coatings, packaging and films, medical applications, tires and compounds. The company generated revenues of about $2 billion in the trailing twelve months ended September 2024. Korea Development Bank (KDB) was established in 1954 as a government-owned financial institution, pursuant to the KDB Act. It is Korea's largest policy bank, with reported consolidated assets of KRW372.6 trillion (US$253.1 billion) as of December 31, 2024. LEE FRANCHISE: Court Extends Cash Collateral Access to June 21 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of North Carolina issued a fourth interim order authorizing Lee Franchise Holdings, Inc. to use cash collateral until June 21. The fourth interim order authorized the company to use cash collateral to pay the expenses set forth in its budget, with a 10% variance allowed. Lee Franchise projects total operational expenses of $59,391.35 from May 21 to June 21. Secured creditors including Dogwood State Bank, Cashable, LLC, Millstone Funding, Inc., Alpine Advance 5, LLC, and Pipe Advance, LLC were granted post-petition liens and security interests in their collateral, with the same priority as their respective pre-bankruptcy liens and security interests. Lee Franchise was ordered to pay $2,500 to Dogwood as partial protection for using the cash collateral. The company's authority to use cash collateral terminates upon the occurrence of so-called events of default, including failure to comply with the terms of the order; use of cash collateral other than as agreed; dismissal or conversion of its Chapter 11 case to a proceeding under Chapter 7; and failure to pay post-petition tax liabilities. The next hearing is scheduled for June 17. About Lee Franchise Holdings Lee Franchise Holdings, Inc. operates a commercial window cleaning and pressure washing company in Craven County, N.C., with its principal office at 257 Belltown Road, Havelock, N.C. Lee Franchise Holdings filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-00617) on February 21, 2025, listing up to $500,000 in assets and up to $1 million in liabilities. Bradley M. Lee, president of Lee Franchise Holdings, signed the petition. Judge Pamela W. McAfee oversees the case. David J. Haidt, Esq., at Ayers & Haidt, P.A. is the Debtor's legal counsel. Secured creditor Dogwood State Bank is represented by: William Walt Pettit, Esq. 6230 Fairview Rd, Suite 315 Charlotte, NC 28210 (704) 362-9255 walt.pettit@hutchenslawfirm.com LI-CYCLE HOLDINGS: Files Bankruptcy in U.S. and Canada ------------------------------------------------------ Li-Cycle Holdings Corp., a leading global lithium-ion battery resource recovery company, announced on May 14, 2025, that the Company and its subsidiaries in North America have sought and obtained from the Ontario Superior Court of Justice an order providing them with creditor protection pursuant to Canada's Companies' Creditors Arrangement Act. As part of the Initial Order, the Court ordered, among other things, a stay of proceedings in favor of the Li-Cycle Group for an initial period to and including May 22, 2025 and the appointment of Alvarez & Marsal Canada Inc. as monitor of the Li-Cycle Group during the CCAA proceedings to assist the Company with its restructuring efforts and to report to the Court. The Company's U.S. subsidiaries (including Li-Cycle Inc., which owns the Company's Spokes in Arizona, Alabama and New York, and Li-Cycle North America Hub, Inc., which owns the Company's Rochester Hub project) have commenced proceedings before the United States Bankruptcy Court for the Southern District of New York under Chapter 15 of the U.S. Bankruptcy Code for recognition of the CCAA proceedings as a "foreign main proceeding." The U.S. Bankruptcy Court has imposed a broad stay, for the benefit of the Company's U.S. subsidiaries, barring the commencement of legal action, the enforcement of remedies, any act to obtain possession of their property in the United States or to exercise control over such property, and other similar conduct. As part of the CCAA proceedings, the Li-Cycle Group expects to conduct a court-supervised sale and investment solicitation process, which will be a continuation of its previously disclosed efforts to seek buyers for its business or its assets. The Li-Cycle Group has entered into a term sheet with an affiliate of Glencore Canada Corporation, the Company's largest secured creditor, for a DIP Facility. The DIP Facility consists of a credit facility of up to a maximum principal amount of $10.5 million which is expected to be used to finance Li-Cycle's working capital requirements, including for the continued operation of its Germany Spoke, and to implement the restructuring contemplated in the CCAA proceedings, such as the pursuit of the SISP. The DIP Facility remains subject to approval by the CCAA Court. Additionally, the Li-Cycle Group has entered into an equity and asset "stalking horse" purchase agreement with Glencore. Glencore has agreed to a "stalking horse" credit bid for at least $40 million for certain of Li-Cycle's subsidiaries and assets, including its Arizona Spoke, Alabama Spoke, New York Spoke, Germany Spoke, Rochester Hub project, and its intellectual property, as well as assumption of certain of its liabilities. The Stalking Horse Agreement remains subject to approval by the CCAA Court. The Company's Germany Spoke is expected to have sufficient working capital (including through the DIP Facility) to continue operating during the CCAA proceedings. Li-Cycle is undertaking efforts to wind down certain of its European subsidiaries, with the exception of its operating businesses in Switzerland and Germany. The Company will also be winding down its subsidiaries in Asia. As a result of the CCAA Proceedings, an event of default has occurred under Li-Cycle's loan agreement with the U.S. Department of Energy. Li-Cycle has not drawn down any funds under the DOE loan facility, as the Company has not satisfied the conditions precedent for the first advance. The CCAA Proceedings have also caused an event of default under the Company's convertible notes, which are held by Glencore and Wood River Capital, LLC. Wood River Capital now would have, in the absence of the stay of proceedings, the right to require the redemption of its convertible notes. The event of default under the Company's convertible notes held by Glencore has resulted in an automatic acceleration such that the principal, interest and any make-whole premium due thereunder have become immediately due and payable. As previously disclosed, the Company has been actively reducing its cost structure and seeking financing and strategic alternatives to fund its business. However, following a thorough review and after careful consideration of all available alternatives and in consultation with legal and financial advisors, the Company's Board of Directors, following receipt of the recommendation of the Company's Special Committee of independent directors, determined that it was in the best interests of the Company to commence the CCAA proceedings, with a view to pursuing the SISP and implementing one or more transactions with respect to its business and assets. The Company's Board of Directors and management will remain responsible for the day-to-day operations of the Company under the general oversight of the Monitor during the CCAA proceedings. The Initial Order provides the Company with, among other things, relief from certain reporting obligations under securities legislation. As a result of the commencement of Chapter 15 Proceedings, the Company will no longer qualify to trade on the OTCQX(R) Best Market and will be moved to the OTC Pink Markets effective May 15, 2025. At the "comeback" hearing before the CCAA Court on May 22, 2025, the Li-Cycle Group intends to seek, among other things, approval of the DIP Facility, the SISP and the Stalking Horse Agreement as a "stalking horse" credit bid in the SISP and an extension of the Stay Period until a subsequent date to be determined. Additional information regarding the CCAA proceedings is available on the Monitor's website at https://www.alvarezandmarsal.com/LiCycle, or by calling Alvarez & Marsal at 1-844-864-9548, or by emailing at LiCycle@alvarezandmarsal.com. Documents relating to the restructuring process such as the Initial Order, the Monitor's reports to the Court, as well as other Court orders and documents shall also be published and made available on the Monitor's website. About Li-Cycle Holdings Corp. Li-Cycle Holdings Corp. is a Canada-based global lithium-ion battery resource recovery company and pure-play lithium-ion battery recycler. LIGHT & WONDER: S&P Rates $800MM Senior Secured Term Loan A 'BB' ---------------------------------------------------------------- S&P Global Ratings assigned its 'BB' issue-level rating and '2' recovery rating to Light & Wonder, Inc.'s (together with its subsidiaries, "Light & Wonder") $800 million senior secured term loan A due 2028. The '2' recovery rating indicates S&P's expectation for substantial (70%-90%; rounded estimate: 75%) recovery for lenders in the event of a payment default. Subsidiary Light & Wonder International, Inc. will be the borrower under the new term loan. The company will use proceeds from the proposed term loan, along with revolver borrowings and cash on hand, to fund its previously announced acquisition of the charitable business assets of Grover Gaming Inc. ("Grover Gaming"). The higher level of secured debt assumed to be outstanding at default given the term loan issuance modestly lowers recovery prospects, but not enough to change our recovery ratings on Light & Wonder's secured and unsecured debt. This is because we now assume a higher level of EBITDA at emergence and enterprise valuation than in our previous analysis to incorporate acquired EBITDA from Grover Gaming. All S&P's other ratings on the company are unchanged. Issue Ratings--Recovery Analysis Key analytical factors -- S&P assigned its 'BB' issue-level rating and '2' recovery rating to Light & Wonder's $800 million term loan A due 2028. The '2' recovery rating indicates its expectation for substantial (70%-90%; rounded estimate: 75%) recovery for lenders in a payment default. -- S&P's 'BB' issue-level rating on Light & Wonder's $1 billion revolver and $2.2 billion term loan and '2' recovery rating are unchanged. -- S&P's 'B+' issue-level rating and '5' recovery rating on Light & Wonder's senior unsecured notes are unchanged. The '5' recovery rating indicates its expectation for modest (10%-30%; rounded estimate: 10%) recovery for noteholders in a payment default. Simulated default assumptions -- In S&P's simulated default, it contemplates a default occurring in 2029 due to a prolonged economic downturn that reduces consumer spending on gaming, decreases the company's installed base, extends the gaming equipment replacement cycle, and significantly cuts spending on new equipment. -- S&P said, "We assume Light & Wonder will reorganize under a distressed scenario, and we use a 6x multiple to value the company, which is modestly lower than the average multiple we use for the leisure industry. The lower multiple reflects the highly volatile nature of the company's product sales (due to its reliance on new casino openings and the strength or weakness of the replacement cycle), the sensitivity of consumer discretionary spending in casinos to economic conditions, and the revenue mix shift to digital gaming, which we view as more volatile and highly competitive." -- S&P assumes the $1 billion revolving credit facility is 85% drawn at the time of default. -- S&P said, "In our analysis, we assume Light & Wonder's domestic operating subsidiaries, which are guarantors of the credit facility, generate about 67% of its total revenue and that foreign subsidiaries generate about 33%. As a result, we attributed 67% ($2.1 billion) of the net available recovery value to domestic operating entities and 33% ($1 billion) to foreign operating entities." -- Under S&P's analysis, the senior secured debtholders have a priority claim against substantially all the available domestic value ($2.1 billion) and a priority claim against 65% ($0.7 billion) of the foreign value ($1 billion), which represents the value it has attributed to the foreign stock pledge. -- Total value attributable to senior secured claims is $2.8 billion. S&P estimated total first-lien senior secured claims of $3.7 billion at default, leaving a first-lien unsecured deficiency claim of about $0.9 billion. The first-lien senior credit facilities' unsecured deficiency claim and the senior unsecured notes' claim (which it estimates at about $1.8 billion at default) would constitute pari passu unsecured claims against the remaining $0.4 billion of recovery value, which represents the value S&P attributes to the 35% unpledged foreign equity. Simplified waterfall -- Emergence EBITDA: $557 million -- EBITDA multiple: 6.0x -- Gross recovery value: $3.3 billion -- Net recovery value (after 5% administrative expenses): $3.1 billion -- Valuation split (obligor/nonobligor): 67%/33% -- Estimated secured debt claims at default: $3.7 billion -- Total value available to secured debt, including its pro rata share of value available to unsecured claims: $2.9 billion --Recovery expectations: 70%-90% (rounded estimate: 75%) -- Estimated senior unsecured claims and pari passu secured deficiency claims: $2.7 billion -- Value available to unsecured claims: $0.4 billion --Recovery expectations: 10%-30% (rounded estimate: 10%) Note: All debt amounts include six months of prepetition interest. LONERO ENGINEERING: Creditors to Get Proceeds From Liquidation -------------------------------------------------------------- Lonero Engineering Co., Inc., filed with the U.S. Bankruptcy Court for the Eastern District of Michigan a Combined Plan of Liquidation and Disclosure Statement dated May 2, 2025. The Debtor was established in 1951 to provide, among other things, precision machining solutions for complex close-tolerance applications. This includes patented tooling for deep rolling automotive crankshafts for internal combustion engines. Beginning with the so-called electric vehicle ("EV") mandates, auto manufacturers began shifting production from gasoline vehicles to EVs. Additionally, the Debtor went out of formula with Bridge, who is the Debtor's senior secured creditor; and, as a result, Bridge declared a default under its loan documents. Thereafter, the Debtor and Bridge entered into a forbearance agreement, which expired on November 30, 2024, and required the appointment of a receiver in the event of a further default. In or about December 2024, the Receiver advised Debtor and its employees that he had made the decision to cease all operations of the Debtor and to liquidate its assets. Liquidation of the assets without also realizing on the going concern value of the Debtor would likely have resulting in approximately $2.2 million in proceeds, which would only have been paid to Bridge leaving all other creditors, including the SBA, wholly unpaid. When the Debtor learned that the Receiver intended to liquidate and close the Debtor's business, rather than sell the Debtor's business as a going concern, the Debtor filed this Case. The Debtor seeks to liquidate its assets in this Chapter 11 proceeding pursuant to the procedures set forth in the Plan and is not continuing in business. Class IV consists of the Allowed Claims of all Unsecured Creditors. The Creditors Trust shall be established for the benefit of Group I, Group, II, Group III, and Class IV Creditors. The Creditors Trust shall be effective as of the later of (i) the Effective Date or (ii) the date on which a fully executed copy of the Creditors Trust is filed with the Court. The corpus of the Creditors Trust shall be composed of the following: * Any and all assets, not otherwise sold or transferred in accordance with the Sale Order, of the Debtor and the Debtor-in Possession including without limitation all Cash (after payment of all senior Claims, Administrative Claims, and Priority Claims) and Causes of Action, which shall be subject to any lien provided under Article 2.2.7. * After payment of all unpaid Group I, II, or III Claims, the Creditors Trust shall distribute such Pro-Rata to Holders of Allowed Class IV Claims less any costs for administration of the Creditors Trust in accordance with the terms of the Creditors Trust. Class V consists of all Allowed Interests. Vince Lonero, Pam Cudney, and John Sgalia are the members of Class V. The members of Class V shall not receive any distribution whatsoever and the Interests shall be cancelled on the Effective Date of the Plan. The Holders of Class V shall have the obligation to prepare and timely file the Debtor's final tax return(s) at their sold cost and expense. Upon the Effective Date and subject only to the terms of this Plan, all assets of the Debtor, Debtor-in-Possession, and the Estate, not otherwise sold or transferred in the Bankruptcy Case by the Sale Order or other Final Order of the Court, wherever situated, shall be transferred to, and vest in, the Creditors Trust, free and clear of all liens, claims, encumbrances and interests. The Liquidating Agent and the Debtor shall execute the Creditors Trust. Under no circumstances shall any of the Debtor's officers, directors, shareholders, or other governing authorities be entitled to any compensation from the Debtor or the Creditors Trust for services provided after the Effective Date, unless such individuals are subsequently employed pursuant to a written agreement by the Creditors Trust to assist in the consummation of the Plan or in the administration of the Creditors Trust. A full-text copy of the Combined Plan and Disclosure Statement dated May 2, 2025 is available at https://urlcurt.com/u?l=YusUtm from PacerMonitor.com at no charge. Counsel to the Debtor: Michael E. Baum, Esq. John J. Stockdale, Jr., Esq. Schafer and Weiner, PLLC 40950 Woodward Avenue, Suite 100 Bloomfield Hills, MI 48304 Tel: (248) 540-3340 Email: jstockdale@schaferandweiner.com About Lonero Engineering Co. Lonero Engineering Co., Inc. is a company based in Troy, Mich., which operates as a specialized machine shop providing precision machining services for complex, close-tolerance applications. Lonero sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-40041) on Jan. 3, 2025. In its petition, the Debtor reported up to $50,000 in assets and up to $500,000 in liabilities. Judge Lisa S. Gretchko handles the case. The Debtor is represented by Michael E. Baum, Esq., and John J. Stockdale, Jr., Esq., at Schafer and Weiner, PLLC. Bridge Business Credit, LLC, as lender, is represented by: Ronald A. Spinner, Esq. Miller, Canfield, Paddock and Stone, PLC 150 West Jefferson, Suite 2500 Detroit, MI 48226 Telephone: (313) 496-7829 Facsimile: (313) 496-7500 Email: spinner@millercanfield.com LOYALTY VENTURES: Saratoga CLO Marks $2.9 Million Loan at 93% Off ----------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $2,913,525 loan extended to Loyalty Ventures Inc. to market at $211,231 or 7% 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 Loyalty Ventures Inc. The loan accrues interest at a rate of Prime 5.50% per annum. The loan matures on November 3, 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 Loyalty Ventures Inc. Loyalty Ventures Inc. provides tech-enabled, data-driven consumer loyalty solutions. LUCENA DAIRY: Seeks to Sell Aguadilla Property ---------------------------------------------- Lucena Dairy Inc. and its affiliate, Luna Dairy Inc., seek approval from the U.S. Bankruptcy Court for the District of Puerto Rico, to sell Property, free and clear of liens, interests, and encumbrances. The Debtors finally were able to reach an agreement with secured creditor Condado 4 LLC which put an end to multiple controversies. and agreed to the treatment provided under the Debtors' Amended Plan. The Debtors have filed a Second Amended Consolidated Joint Plat of Reorganization and provides. The Plan provides for the sale of two lots of land, at Aguadilla Puerto Rico, Lot Nos. 99 and 4,344, which are part of Condado's collateral. The parties have agreed to sell two lots of land for $1,300,000. The Property has an appraisal value of approximately $1,010,000. Pursuant to the Stipulation, Condado will carve out $200,000 to be provided to the Debtors' for the purchase of additional cattle or for operational needs to preserve the operations of the Debtors. The Properties were owned by Mr. and Mrs. Jorge Lucena, debtors' shareholders, who transferred to the title to Lucena Dairy. The Debtors believe that the sale of the Properties, will be of substantial benefit to the estate and creditors. About Lucena Dairy Inc. Lucena Dairy Inc. is engaged in the production of cows' milk and other dairy products and in raising dairy heifer replacements. Lucena Dairy sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. P.R. Case No. 23-02835) on September 8, 2023. Its affiliate, Luna Dairy Inc., filed Chapter 11 petition (Bankr. D. P.R. Case No. 23-02837) on September 9, 2023. Jorge Lucena Betancourt, president, signed both petitions. At the time of the filing, Lucena Dairy reported $1,905,560 in assets and $11,464,130 in liabilities while Luna Dairy reported $4,102,639 in assets and $11,316,130 in liabilities. Judge Edward A. Godoy oversees the cases. Carmen D. Conde Torres, Esq., at C. Conde & Associates, represents the Debtors as legal counsel. LUCENA DAIRY: To Sell Hatillo Property to Steven M. Fenosik ----------------------------------------------------------- Lucena Dairy Inc. and its affiliate, Luna Dairy Inc., seek approval from the U.S. Bankruptcy Court for the District of Puerto Rico, to sell Property, free and clear of liens, interests, and encumbrances. The Debtors' Property is the Lot No. 2393 located in Hatillo, Puerto Rico, with the purchase value of $75,000,000. The Debtor and Condado 4 LLC filed a Stipulation for treatment of Condado's Amended Claim wherein the parties have agreed for the treatment to be provided to Condado. The proceeds from the sale will be turned over to Condado since the Property serves as collateral to Condado's claim. The Debtors have been able to market the Property to Steven M. Fenosik and Sylka I Lucena Retirement Plan Trust and have been able to obtain a purchase offer of $5,000. The Debtors believe that the sale of the Property will be of substantial benefit to the estate and creditors since the sale would provide a payment to Condado. In the instant case, the Purchaser is willing to pay more than the appraisal value of the real estate. About Lucena Dairy Inc. Lucena Dairy Inc. is engaged in the production of cows' milk and other dairy products and in raising dairy heifer replacements. Lucena Dairy sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. P.R. Case No. 23-02835) on September 8, 2023. Its affiliate, Luna Dairy Inc., filed Chapter 11 petition (Bankr. D. P.R. Case No. 23-02837) on September 9, 2023. Jorge Lucena Betancourt, president, signed both petitions. At the time of the filing, Lucena Dairy reported $1,905,560 in assets and $11,464,130 in liabilities while Luna Dairy reported $4,102,639 in assets and $11,316,130 in liabilities. Judge Edward A. Godoy oversees the cases. Carmen D. Conde Torres, Esq., at C. Conde & Associates, represents the Debtors as legal counsel. LYLES CAPITAL: Seeks Chapter 11 Bankruptcy in Arkansas ------------------------------------------------------ On May 14, 2025, Lyles Capital Management LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Arkansas. According to court filing, the Debtor reports $1,448,142 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Lyles Capital Management LLC Lyles Capital Management LLC is a real estate company based in Jonesboro, Arkansas. It owns and manages multi-unit residential properties, including several addresses on Melrose and State Streets in Jonesboro. Lyles Capital Management LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Ark. Case No. 25-11634) on May 14, 2025. In its petition, the Debtor reports total assets of $2,075,773 and total liabilities of $1,448,142. Honorable Bankruptcy Judge Phyllis M. Jones handles the case. The Debtors are represented by Joel G. Hargis, Esq. at CADDELL REYNOLDS LAW FIRM. M.I.S. COMMODITIES: 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 M.I.S. Commodities, Inc. 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 M.I.S. Commodities M.I.S. Commodities, Inc. is an international marketer of food and agricultural products, connecting farmers and consumers through its trading and logistics expertise. The company specializes in soft commodities, pulses, and select energy services and equipment. With headquarters in Geneva and offices in Bach and Stamford, Connecticut, M.I.S. Commodities operates globally. M.I.S. Commodities sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-15027) on May 5, 2025, listing between $500,000 and $1 million in assets and between $1 million and $10 million in liabilities. Aitor Deurquiza, president of M.I.S. Commodities, signed the petition. Judge Erik P. Kimball presides over the case. Adam I. Skolnik, Esq., at the Law Office of Adam I. Skolnik, PA represents the Debtor as bankruptcy counsel. MANHATTAN COUNTRY SCHOOL: Seeks Chapter 11 Bankruptcy in New York ----------------------------------------------------------------- Jonathan Randles and Erin Hudson of Bloomberg News report that Manhattan Country School, a private Upper West Side institution known for its progressive curriculum and commitment to social justice, has filed for Chapter 11 bankruptcy as it faces potential foreclosure. The school submitted its petition on Friday, May 16, 2025, reporting assets and liabilities each between $10 million and $50 million. With a sliding-scale tuition model based on families' ability to pay, the school said it incurred financial losses during the Covid-19 pandemic after reducing tuition to support struggling parents. The school's maximum annual tuition is $59,000. About Manhattan Country School Manhattan Country School is a private Upper West Side institution known for its progressive curriculum and commitment to social justice. Manhattan Country School sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11009) on May 16, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Honorable Bankruptcy Judge David S. Jones handles the case. The Debtor is represented by Roy J. Lester, Esq. at Lester Korinman Kamran & Masini, P.C. MCKNIGHTS ACADEMY: Todd Hennings Named Subchapter V Trustee ----------------------------------------------------------- The U.S. Trustee for Region 21 appointed Todd Hennings, Esq., at Macey, Wilensky & Hennings, LLP as Subchapter V trustee for McKnights Academy of Excellence, LLC. Mr. Hennings 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. Hennings declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Todd E. Hennings, Esq. Macey, Wilensky & Hennings, LLP 5500 Interstate North Parkway, Suite 435 Sandy Springs, GA 30328 Phone: (404) 584-1222 Email: info@joneswalden.com About McKnights Academy of Excellence McKnights Academy of Excellence, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-55076) on May 6, 2025, listing between $100,001 and $500,000 in assets and up to $50,000 in liabilities. Brad Fallon, Esq., at Fallon Law, PC represents the Debtor as bankruptcy counsel. METRO MATTRESS: Seeks to Extend Plan Exclusivity to July 1 ---------------------------------------------------------- Metro Mattress Corp. asked the U.S. Bankruptcy Court for the Northern District of New York to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to July 1 and September 2, 2025, respectively. Since the commencement of this case, the Debtor has accomplished a significant step in right sizing its business and moving along the path toward reorganization. The Court authorized the Debtor to conduct store closing sales at its New England stores and to reject the Debtor's leases of non-residential real property located in the New England market. The Debtor explains that it has retained (the retention application was filed with the Court on December 23, 2024) Ronald Teplitsky and Next Point, LLC to assist in preparation and analysis of financial reports, projections and restructuring options. With Next Point's assistance, the Debtor has initiated a number of cost saving measures and has worked to improve its revenue through targeted marketing and strategic inventory purchases. Thus, while the Debtor has taken a number of necessary steps to improve its financial condition, it has also solicited interest in the purchase of its business. The Debtor has contacted a number of potential purchasers and has received expressions of interest from at least two groups (both of which are also potentially interested in acquiring the business of nondebtor affiliated entities). The Debtor expects to receive one or more written letters of intent or formal purchase offers within the next two to three weeks. The Debtor claims that upon receipt of those expressions of interest, the company (and possibly non-debtor entities) will engage in discussions with multiple stake holders, including secured creditors (one of which has pervasive liens on the assets of the Debtor and non-debtor entities), contract and lease counterparties, and the Committee. Thus, the Debtor requests a further extension of approximately 60 days of the day period described in Section 1121(b) of the Bankruptcy Code. The Debtor asserts that terminating the exclusivity periods before the company has an adequate opportunity to resolve key issues affecting any proposed plan of reorganization will frustrate the purpose of Bankruptcy Code Section 1121. The Debtor intends to file a proposed plan of reorganization as soon as practicable. Under the circumstances of these cases, however, the Debtor submits that the initial exclusivity period, and even as extended, has not permitted a sufficient amount of time to permit them to achieve this objective. Metro Mattress Corp. is represented by: Jeffrey A. Dove, Esq. Barclay Damon LLP Barclay Damon Tower 125 East Jefferson Street Syracuse, NY 13202 Telephone: (315) 413-7112 E-mail: jdove@barclaydamon.com About Metro Mattress Corp. Metro Mattress Corp. is specialty retailer of mattresses serving New York, Connecticut, New Hampshire, Massachusetts, and Rhode Island customers. Metro Mattress Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 24-30773) on Sept. 4, 2024. In the petition filed by Dino Cifelli, chief executive officer, the Debtor estimated assets between $1 million and $10 million and liabilities between $10 million and $50 million. Judge Wendy A. Kinsella oversees the case. The Debtor tapped Barclay Damon LLP as bankruptcy counsel, Mackenzie Hughes LLP as special labor and employment counsel, and NextPoint LLC as financial advisor. MICHAELS COMPANIES: Saratoga CLO Marks $2.9 Million Loan at 19% Off ------------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $2,417,349 loan extended to Michaels Companies Inc. to market at $1,957,038 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 B to Michaels Companies Inc. The loan accrues interest at a rate of 3M USD SOFR+ 4.25% per annum. The loan matures on April 8, 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 Michaels Companies Inc. Michaels Companies, Inc., is a dedicated arts and crafts specialty retailer. The company primarily sells general and children's crafts, home decor and seasonal items, framing and scrapbooking products. The company was taken private by Apollo Global Management Inc. in a transaction valued at about $5.5 billion in April 2021. MODIVCARE INC: CFO, CIO to Depart as Part of Biz Model Evolution ---------------------------------------------------------------- ModivCare Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that each of Barbara Gutierrez, Chief Financial Officer, and Jessica Kral, Chief Information Officer, was notified that her employment with the Company would be ending effective May 31, 2025. Mses. Gutierrez's and Kral's departures are not the result of any dispute or disagreement with the Company, the Company's management or the Board of Directors of the Company on any matter relating to the Company's operations, policies or practices. Their departures come as Modivcare evolves its organizational structure in an effort to support the next phase of its modernization strategy--built on the financial and technology foundations they helped establish during their time with the company. Each of Ms. Gutierrez and Ms. Kral will be entitled to severance compensation pursuant to the terms of the Company's executive severance policy and their respective offer letters with the Company, each as previously disclosed by the Company, in exchange for entering into a separation agreement and general release of claims with the Company. Effective upon Ms. Gutierrez's departure on May 31, 2025, L. Heath Sampson, the Company's Chief Executive Officer, will assume the role of the Company's principal financial officer. "We are grateful to Barb and Jessica for their leadership, dedication, and contributions to Modivcare," said Heath Sampson, Chief Executive Officer of Modivcare. "Barb played a critical role in strengthening our financial strategy and capital structure amidst ongoing macroeconomic uncertainty, while Jessica's leadership has been instrumental in the continuing modernization of the technology infrastructure that serves as the backbone of our operations. Both Barb and Jessica leave behind strong teams and we believe their efforts will have a lasting impact on the company." As Modivcare strives to advance its cost reduction and technology-driven integration efforts, the company has determined that it will not be replacing the CFO or CIO roles at this time. The company is confident that the experienced and capable teams already in place under both functions are well-positioned to support the next phase of Modivcare's growth and modernization strategy. "These decisions are part of a broader, structural shift in how we operate," added Sampson. "We are working to flatten the organization and unlock greater speed and accountability as we embed automation, intelligent systems, and financial discipline across the business. We thank Barb and Jessica for their service and wish them continued success in their future endeavors." About ModivCare ModivCare Inc. is a technology-enabled healthcare services company that provides a suite of integrated supportive care solutions for public and private payors and their members. At December 31, 2024, ModivCare had 1,654,332,000 in total assets, 1,692,806,000 in total liabilities, and 38,474,000 in total stockholders'deficit. * * * As reported by the Troubled Company Reporter in March 2025, S&P Global Ratings lowered its issuer credit rating on ModivCare Inc. to 'CCC+' from 'B-'. The outlook is negative. MPH ACQUISITION: Saratoga CLO Marks $2.6 Million Loan at 16% Off ---------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $2,616,207 loan extended to MPH Acquisition Holdings LLC to market at $2,198,556 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 Second-Out Term Loan to MPH Acquisition Holdings LLC. The loan accrues interest at a rate of 3M USD SOFR+ 4.60% per annum. The loan matures on December 31, 2030. 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 MPH Acquisition Holdings LLC MPH Acquisition Holdings LLC, doing business as MultiPlan, provides health care solutions. The Company offers payment integrity, network, and analytics based solutions. MultiPlan serves customers in the United States. NAOUI LLC: Lender Seeks to Prohibit Cash Collateral Access ---------------------------------------------------------- Wilmington Savings Fund Society, FSB, as trustee for Ibis Holdings A Trust, asked the U.S. Bankruptcy Court for the District of Maryland, Baltimore Division, to prohibit Naoui, LLC from using cash collateral, specifically, rental income from multiple real estate properties secured by promissory notes and deeds of trust. Wilmington, through its loan servicer Selene Finance, argued that the Debtor has not complied with necessary bankruptcy procedures, including the filing of required financial schedules and statements, and has failed to request court authorization to use the rental income. This income, according to Wilmington, is subject to its security interest under the deeds of trust and cannot legally be used without its consent or court approval. The creditor argued that the Debtor has continued to use this income while remaining delinquent on its loan obligations and without providing transparency or adequate protection for the creditor's financial interests. Wilmington asked the court to issue an order prohibiting any further use of the rental income, requiring the Debtor to make contractual adequate protection payments, and compelling the Debtor to account for all rental income received since the bankruptcy filing. The creditor also requested copies of all leases or rental agreements related to the properties and that any income generated be placed in a segregated debtor-in-possession account. A court hearing is set for June 6. About Naoui LLC Naoui, LLC is engaged in the leasing and management of residential, commercial, and industrial real estate properties. Naoui sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 25-12871) on April 2, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. Judge Nancy V. Alquist oversees the case. The Debtor is represented by Duane R. Demers, Esq., at the Law Offices of Ali K, LLC. Wilmington Savings Fund Society, FSB, as trustee for Ibis Holdings A Trust, is represented by: Thomas Gartner, Esq. De Cubas & Lewis, PA P.O. Box 5026 Fort Lauderdale, FL 33310 (954) 453-0365 Email: thomas.gartner@decubaslewis.com NETCAPITAL INC: Records $17.9M Impairment on Equity Investments --------------------------------------------------------------- Netcapital Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company conducted its quarterly evaluation of equity investments under Accounting Standards Codification (ASC) Topic 321, Investments - Equity Securities. Based on this review, the Company identified multiple investments that were impaired and recognized a total impairment expense of $17,935,476. StockText LLC: Netcapital Inc. holds 2,440,000 units of StockText LLC. The key personnel have resigned from the business because of significant adverse changes in the regulatory environment. StockText LLC discontinued its fundraising efforts on April 30, 2025, and its escrow bank was instructed to return all investor funds. Due to the resignation of management, cessation of operations, and the refund of funds, Netcapital Inc. determined that the fair value of its investment was impaired and recognized an impairment expense of $1,220,000. CupCrew LLC: Netcapital Inc. holds 2,853,659 units of CupCrew LLC. The key personnel have resigned from the business because of significant adverse changes in the regulatory environment. CupCrew LLC discontinued its fundraising efforts on April 30, 2025, and its escrow bank was instructed to return all investor funds. Based on these developments, Netcapital Inc. determined that its investment was fully impaired and recorded an impairment expense of $1,170,000. CountSharp LLC: Netcapital Inc. holds 2,853,659 units of CountSharp LLC. The key personnel have resigned from the business because of significant adverse changes in the regulatory environment. CountSharp LLC discontinued its fundraising efforts on April 30, 2025, and its escrow bank was instructed to return all investor funds. Based on these indicators, Netcapital Inc. determined that its investment was fully impaired and recorded an impairment expense of $1,170,000. HeadFarm LLC: Netcapital Inc. holds 2,853,659 units of HeadFarm LLC. The key personnel have resigned from the business because of significant adverse changes in the regulatory environment. HeadFarm LLC discontinued its fundraising efforts on April 30, 2025, and its escrow bank was instructed to return all investor funds. Netcapital Inc. concluded that its investment in HeadFarm LLC was fully impaired and recorded an impairment expense of $1,170,000. RealWorld LLC: Netcapital Inc. holds 2,853,659 units of RealWorld LLC. The key personnel have resigned from the business because of significant adverse changes in the regulatory environment. RealWorld LLC discontinued its fundraising efforts on April 30, 2025, and its escrow bank was instructed to return all investor funds. Based on these circumstances, Netcapital Inc. determined that its investment was fully impaired and recorded an impairment expense of $1,170,000. AceHedge LLC: Netcapital Inc. holds 2,816,154 units of AceHedge LLC. The key personnel have resigned from the business because of significant adverse changes in the regulatory environment. AceHedge LLC discontinued its fundraising efforts on April 30, 2025, and its escrow bank was instructed to return all investor funds. These events led Netcapital Inc. to determine that the investment was fully impaired and recognized an impairment expense of $1,110,000. Dark LLC: Netcapital Inc. holds 2,100,000 units of Dark LLC. Dark LLC failed to file its annual report with the State of Massachusetts, its registered agent resigned, and all key executives departed. Based on these adverse developments, Netcapital Inc. determined that the investment in Dark LLC was fully impaired and recorded an impairment expense of $2,100,000. Fantize LLC: Netcapital Inc. holds 2,816,154 units of Fantize LLC. The key personnel have resigned from the business because of significant adverse changes in the regulatory environment. Fantize LLC discontinued its fundraising efforts on April 30, 2025, and its escrow bank was instructed to return all investor funds. Netcapital Inc. determined that its investment was fully impaired and recorded an impairment expense of $1,110,000. Caesar Media Group Inc: Netcapital Inc. holds 400 shares of Caesar Media Group Inc. Caesar Media Group Inc. failed to file its annual report, did not pay franchise taxes, and has not responded to communication attempts. As a result of these failures and the absence of any knowledge of ongoing operations, Netcapital Inc. determined that its investment was fully impaired and recognized an impairment expense of $1,999,128. ChipBrain LLC: Netcapital Inc. holds 710,200 units of ChipBrain LLC. The President of ChipBrain LLC reported that advances in generative artificial intelligence had rendered the company's software easily replicable, eliminating its competitive advantage. This represents a significant adverse change in the technological environment and industry in which ChipBrain LLC operates. In addition, ChipBrain LLC failed to file its annual report and pay the required franchise taxes. Based on these combined factors, Netcapital Inc. determined that its investment was fully impaired and recognized an impairment expense of $3,366,348. Deuce Drone LLC: Netcapital Inc. holds 2,350,000 units of Deuce Drone LLC. According to public records, Deuce Drone LLC is listed as inactive with the State of Delaware. The company failed to file its annual report, and its registered agent and key management have resigned. Based on these indicators of discontinued operations, Netcapital Inc. determined that its investment was fully impaired and recognized an impairment expense of $2,350,000. Each impairment determination was made pursuant to ASC 321-10-35-3, based on qualitative indicators that the fair value of each investment was more likely than not below its carrying value and that the decline was other-than-temporary The Company does not expect to recover any value from these investments. About Netcapital Inc. Headquartered in Boston, Mass., Netcapital Inc. -- www.netcapital.com -- is a fintech company with a scalable technology platform that allows private companies to raise capital online and provides private equity investment opportunities to investors. The Company's consulting group, Netcapital Advisors, provides marketing and strategic advice and takes equity positions in select companies. The Company's funding portal, Netcapital Funding Portal, Inc. is registered with the U.S. Securities & Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA), a registered national securities association. Spokane, Washington-based Fruci & Associates II, PLLC, the Company's auditor since 2017, issued a "going concern" qualification in its report dated July 29, 2024, citing that the Company has negative working capital, net operating losses, and negative cash flows from operations. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. As of January 31, 2025, the Company had $39,900,677 in total assets, $4,930,412 in total liabilities, and total stockholders'equity of $34,970,265. NETCAPITAL INC: Signs $126K Convertible Notes With 1800 Diagonal ---------------------------------------------------------------- Netcapital Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company entered into two separate Securities Purchase Agreements with 1800 Diagonal Lending LLC, a Virginia limited liability company, under which it issued the following convertible promissory notes: * A Convertible Promissory Note in the principal amount of $61,360, for a purchase price of $52,000, reflecting an original issue discount of $9,360. The note carries a one-time interest charge of 12% and is repayable in ten (10) monthly payments of $6,872.30 beginning May 30, 2025. It matures on February 28, 2026 and is convertible into shares of common stock following an event of default, subject to a 25% discount to the then-current market price, subject to Nasdaq shareholder approval limits. * A second Convertible Bridge Note in the principal amount of $64,960, for a purchase price of $56,000, with an original issue discount of $8,960. The note also carries a 12% one-time interest charge and is repayable in five (5) monthly payments beginning October 30, 2025. It shares the same maturity date and default-based conversion rights as the first note. Upon the occurrence and during the continuation of any Event of Default (as defined in either note), the note shall become immediately due and payable, and we are required to pay Lender, in full satisfaction of its obligations hereunder, an amount equal to 150% times the sum of (w) the then outstanding principal amount of the notes plus (x) accrued and unpaid interest on the unpaid principal amount of the notes to the date of payment plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Lender pursuant to Article IV of the notes (the then outstanding principal amount of the notes to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the "Default Amount") and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Lender shall be entitled to exercise all other rights and remedies available at law or in equity. Notwithstanding anything to the contrary contained herein, in the event that following an Event of Default (other than Section 3.2), a default pursuant to Section 3.2 of the notes related to Conversion and the Shares occurs, the Default Percentage shall be immediately adjusted to 200%. Following an event of default, the notes become convertible into shares of our common stock at the then existing conversion price, a discount to the trading price, subject to limitations. During the period beginning on the issuance date of the notes and ending on the date which is 180 days following the issuance date of this Note, the Note Conversion Price will be $1.00; and following the Initial Period, the Note Conversion Price shall mean 75% multiplied by the Market Price (representing a discount rate of 25%). "Market Price" means the lowest trading price for our common stock during the 10 trading day period ending on the latest complete trading day prior to the conversion date. The notes include customary default provisions, including non-payment, failure to deliver shares upon conversion, and cessation of operations. On April 29, 2025, the Company also adopted a standard form of promissory note to be used in private financing transactions with certain accredited investors. Under the form, the Company issued two unsecured, non-convertible promissory notes in the total principal amount of $600,000, for gross proceeds of $300,000, reflecting a 50% original issue discount. The notes bear interest at 8% per annum, mature in three months, and are prepayable at any time without penalty. Upon default, interest accrues at 20% per annum. The Company expects to issue additional notes using this form in future private placements. The Company used the proceeds of the notes for general working capital purposes. The Company issued the convertible notes described above in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933 and Rule 506 of Regulation D thereunder. The notes were offered and sold to an accredited investor, 1800 Diagonal Lending LLC, for investment purposes without general solicitation. The non-convertible notes were also issued pursuant to Section 4(a)(2), in private placements to accredited investors. No underwriters were involved, and no commissions were paid in connection with the issuances. The foregoing descriptions of the security purchase agreements, the convertible promissory notes, and the standard form of promissory note are qualified in their entirety by reference to the full text of the agreements, which are filed as Exhibits 10.1, 10.2, 4.1, 4.2, and 4.3 to the 8-K Report, available at https://tinyurl.com/y2wcwfzn About Netcapital Inc. Headquartered in Boston, Mass., Netcapital Inc. -- www.netcapital.com -- is a fintech company with a scalable technology platform that allows private companies to raise capital online and provides private equity investment opportunities to investors. The Company’s consulting group, Netcapital Advisors, provides marketing and strategic advice and takes equity positions in select companies. The Company’s funding portal, Netcapital Funding Portal, Inc. is registered with the U.S. Securities & Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA), a registered national securities association. Spokane, Washington-based Fruci & Associates II, PLLC, the Company’s auditor since 2017, issued a "going concern" qualification in its report dated July 29, 2024, citing that the Company has negative working capital, net operating losses, and negative cash flows from operations. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. As of January 31, 2025, the Company had $39,900,677 in total assets, $4,930,412 in total liabilities, and total stockholders' equity of $34,970,265. NEXT LEVEL: Saratoga CLO Marks $2.3 Million Loan at 20% Off ----------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. has marked its $2,382,698 loan extended to Next Level Apparel, Inc. to market at $1,894,245 or 80% 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 Next Level Apparel, Inc. The loan accrues interest at a rate of 3M USD SOFR+ 7.50% per annum. The loan matures on August 9, 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 Next Level Apparel, Inc. Designer and manufacturer of clothing line intended for customization. The company offers fabric blends and a range of tops, enabling promotional product companies and decorators to create comfortable apparel for their clients. OCEAN FIVE: Carol Fox of GlassRatner Named Subchapter V Trustee --------------------------------------------------------------- The U.S. Trustee for Region 21 appointed Carol Fox of GlassRatner as Subchapter V trustee for Ocean Five Condominium Association, 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 Fox GlassRatner 200 East Broward Blvd., Suite 1010 Fort Lauderdale, FL 33301 Tel: 954.859.5075 Email: cfox@brileyfin.com About Ocean Five Condominium Association Ocean Five Condominium Association, Inc. is a real estate leasing company based in Victoria, Texas, specializing in owning and leasing commercial properties, providing spaces for retail and office use. Ocean Five Condominium Association sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-15015) on May 2, 2025. In its petition, the Debtor reported between $100,000 and $500,000 in assets and between $500,000 and $1 million in liabilities. Judge Laurel M. Isicoff handles the case. The Debtor is represented by Robert C. Meyer, Esq. PARAMOUNT GLOBAL: S&P Corrects Sub Debentures Rating to 'B+' ------------------------------------------------------------ S&P Global Ratings corrected its issue-level ratings on Paramount Global's two hybrid debt issuances, the 6.25% junior subordinated debentures due February 2057 and the 6.375% junior subordinated debentures due 2062, to 'B+' from 'BB-'. Due to an error in the application of its hybrid criteria, it mistakenly lowered its issue-level rating on the notes to 'BB-' (rather than 'B+') when S&P lowered its issuer credit rating on Paramount to 'BB+' from 'BBB-' on March 27, 2024. Based on its hybrid criteria, S&P assigns issue-level ratings to hybrid capital instruments by notching down from the issuer credit rating. For speculative-grade issuers of subordinated debt, such as Paramount's junior subordinated debentures, S&P notches down twice for subordination and apply a third notch for the risk of loss absorption or cash conservation. Based on its 'BB+' issuer credit rating on the issuer, the correct issue-level rating for the junior subordinated notes is 'B+'. PATHWAY PARTNERS: Saratoga CLO Marks $476,000 Loan at 19% Off ------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $476,580 loan extended to Pathway Partners Vet Management Company LLC to market at $387,545 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 Pathway Partners Vet Management Company LLC. The loan accrues interest at a rate of 3M USD SOFR+ 3.75% per annum. The loan matures on March 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 Pathway Partners Vet Management Company LLC Pathway Partners Vet Management Company LLC provides veterinary services. PEOPLE POWERED: Seeks Chapter 11 Bankruptcy in New York ------------------------------------------------------- On May 16, 2025, People Powered LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of New York. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About People Powered LLC People Powered LLC, also known as People Powered Nursing (PPN), provides workforce management solutions for healthcare facilities. The Company offers customized systems for labor oversight, time tracking, scheduling, payroll administration, and agency contract management. It focuses on optimizing staffing operations and controlling labor costs through technology and operational support. People Powered LLCsought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-42368) on May 16, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Jil Mazer-Marino handles the case. The Debtors are represented by Matthew B. Stein, Esq. at KASOWITZ BENSON TORRES LLP. PFH HOLDINGS: Seeks Chapter 11 Bankruptcy in Tennessee ------------------------------------------------------ On May 13, 2025, PFH Holdings Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Tennessee. According to court filing, the Debtor reports $10 million and $50 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About PFH Holdings Inc. PFH Holdings Inc. is a holding company that oversees real estate assets related to funeral home operations through its subsidiary, Poole Funeral Home Real Estate, LLC. The Company focuses on managing and controlling properties tied to its funeral service businesses. PFH Holdings Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Tenn. Case No. 25-11197) on May 13, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Honorable Bankruptcy Judge Nicholas W. Whittenburg handles the case. The Debtors are represented by Roy Michael Roman, Esq. at RMR LEGAL PLLC. PG&E CORP: Fitch Affirms 'BB+' Rating, Outlook Remains Positive --------------------------------------------------------------- Fitch Ratings has affirmed PG&E Corporation's (PCG) and Pacific Gas and Electric Company's (PG&E) ratings at 'BB+'. The Rating Outlook remains Positive. The ratings reflect persistent wildfire risk and the potential for Southern California Edison Company (SCE; BBB/Negative Watch) to draw from the Assembly Bill (AB) 1054 Wildfire Fund (Fund) to address potential Eaton Fire (Eaton) liabilities. SCE withdrawals are likely to deplete the Fund's capacity to protect PG&E from wildfire liabilities, increasing business risk. A substantially reduced Fund is a significant adverse credit development for PCG and PG&E, underscoring intractable California wildfire risk. Legislative action bolstering investor-owned utility (IOU) financial resilience (e.g., a replenished Fund or limitations on liabilities) could result in an upgrade of PCG and PG&E if accompanied by no significant wildfire activity involving PG&E equipment, or if SCE equipment is determined not to have been involved in the ignition of Eaton. Key Rating Drivers Eaton Fire Impact: Fitch believes the recent Eaton Fire in Southern California is a significant an adverse development for PCG and PG&E. If SCE's equipment is associated with the ignition of Eaton, liability payments are expected to meaningfully reduce protection provided to PG&E and the other two participating utilities in the Fund. The destructive force and magnitude of Eaton reinforces the persistent threat of wildfire to the financial health of PG&E and other California IOUs. Eaton introduces considerable uncertainty to the Fund and its availability to provide liquidity for future wildfires, presenting a significant credit concern. Exhaustion of the Fund would also remove the liability cap if an IOU were found to have acted imprudently during a fire event involving utility equipment. FFO Leverage Supports Outlook: In 2024, PCG's FFO leverage improved to 4.6x from 6.9x in 2023, and Fitch estimates FFO leverage of 4.8x and 4.6x for 2025 and 2026, respectively. PG&E's FFO leverage is expected to be somewhat stronger than PCG's, with both anticipated to surpass their FFO leverage upgrade sensitivities, supporting Positive Rating Outlooks. However, the improvement in leverage is offset by the persistent wildfire activity in California, underscored by Eaton, increased exposure to future wildfire liabilities due to the anticipated Fund drawdown by SCE, and consequently higher business risk at PG&E. Legislative Changes: It is unclear whether the legislature will act decisively to shield the IOUs from wildfire risk or if a legislative fix would require significant, incremental funding from the IOUs that could pressure PCG and PG&E's creditworthiness. A significantly diminished AB 1054 Fund and continued, high wildfire risk would challenge PG&E's credit quality. Heightened Operating Risk: Edison International (EIX) recently disclosed SCE's equipment could have been involved in the ignition of Eaton and that it is probable it will incur material losses, which are not estimable at this time. This disclosure underscores the persistent nature of catastrophic wildfires in California and heightened operating risk, despite ongoing efforts by PG&E and other California based IOUs to mitigate wildfire risk. Investigations of the fire are ongoing at the Los Angeles County Fire Department, the California Department of Forestry and Fire Protection (Cal Fire) and SCE. Fund Drawdown A Concern: Eaton liability payments may exhaust the Fund in the coming years. Fitch views Eaton as a set-back following significantly lower destruction from utility-involved wildfires during 2019-2024 compared to 2017-2018. In 2019-2024, two billion-dollar or greater liability fires occurred involving IOU equipment, both in PG&E's service territory: the 2019 Kincade Fire and 2021 Dixie Fire. Dixie Fund Drawdowns Underway: Based on PG&E's estimated Dixie-related third-party liabilities, eligible PG&E Fund claims by the utility would be about $925 million. Through the end of 1Q25, PG&E collected $350 million from the Fund. Future increases to the $1.9 billion reserve booked by PG&E for the Dixie Fire are possible and would increase the utility's drawdown from the Fund. Fund drawdowns are also possible for the Kincade Fire. PG&E has booked a $1.25 billion liability as of 1Q25 for anticipated claims from that fire. California Regulatory Compact: Fitch believes California regulation is generally balanced and credit supportive. However, PG&E and other IOUs are subject to an active legislature and prone to a relatively high degree of political risk, dating back to the 2001-2002 energy crisis. In Fitch's view, legislative actions and rate regulation in recent years have generally been credit supportive. Regulatory/legislative initiatives to protect PG&E and the other state IOUs from potential wildfire liabilities will be a critical determinant of future PG&E credit quality. PG&E filed its 2027-2030 general rate case May 25, 2025. Parent-Subsidiary Rating Linkage: Fitch analyzed the parent-subsidiary relationship for PG&E and PCG. Their IDRs are the same, based on the companies' Standalone Credit Profiles (SCPs). If the companies' SCPs diverge, Fitch would likely apply a strong subsidiary approach under its "Parent-Subsidiary Linkage (PSL) Rating Criteria." In that case, legal ring fencing would be deemed porous and access and control open, resulting in a maximum two-notch differential in parent-subsidiary IDRs. Peer Analysis PG&E Corporation PCG and peer utility holding company Edison International (EIX; BBB/Negative Watch) are similarly positioned single utility holding companies operating in California. Sempra (SRE; BBB+/Stable) and Xcel Energy (Xcel; BBB+/Negative) are more diverse, multi-state utilities of similar size. PCG, EIX, SRE and Xcel recorded 2024 EBITDA of $8.2 billion, $5.7 billion, $5.2 billion and $5.3 billion, respectively. PCG peer Sempra owns utility assets in California and Texas as well as non-utility operations. Unlike PCG and EIX, which derive virtually all their EBITDA from regulated operations, approximately 20% of Sempra's consolidated EBITDA is derived from unregulated companies. Xcel's four utility subsidiaries account for nearly all its consolidated EBITDA. Xcel is more diverse than PCG and EIX, with utility operations spanning Colorado Minnesota, New Mexico, Texas and Wisconsin. Like PCG and EIX, Xcel has experienced significant wildfire challenges, although exposure is likely to be smaller and more manageable for Xcel compared to the 2017-2018 fires that impacted PCG and EIX. Fitch revised Xcel's Outlook to Negative from Stable driven by tightened leverage sensitivities to reflect wildfire risk in Texas and Colorado. Xcel's two Texas and Colorado operating subsidiaries account for more than 50% of Xcel's consolidated EBITDA. Average FFO leverage of 4.8x and 4.6x for PCG in 2025 and 2026, respectively, is comparable with its higher-rated peers. Fitch estimates leverage of 4.9x on average for EIX during 2025-2028, approximately 4.2x for SRE over the coming five-year period and 4.9x for Xcel 2025-2028. Pacific Gas and Electric Company PG&E is one of the nation's largest electric and gas utilities. SCE, Public Service Company of Colorado (PSR; A-/Stable) and Southwestern Public Service Company (SPS; BBB/Stable) have been impacted to varying degrees by wildfires. Fitch expects potential liabilities associated with fires in Texas and Colorado to be more manageable for SPS and PSR than PG&E and SCE experienced in 2017-2018. The two California-based utilities experienced a drastic surge in catastrophic wildfire activity, with the Camp Fire alone destroying more than 18,000 structures. PSR's Marshall Fire destroyed 1,000 structures. Catastrophic wildfire activity remains a significant credit risk for PG&E and SCE. The Eaton Fire could be linked to SCE equipment despite considerable investment and effort to reduce wildfire risk, which, along with the potential drawdown of the Fund due to Eaton, is a concern for both utilities. A final determination that SCE equipment was involved in the ignition of Eaton would be an adverse credit development. SPS and PSR are smaller than PG&E and SCE based on 2024 EBITDA. Fitch believes the regulatory environment in California has been credit supportive in recent years. Similarly, rate regulation is generally credit supportive in Colorado for PSR. For SPS, rate regulation is more challenging in Texas and New Mexico but has improved in recent years. FFO leverage of 4.4x and 4.2x for PG&E in 2025 and 2026, respectively, is comparable to SCE's 4.5x and 4.2x. Fitch estimates leverage of about 3.9x, on average, for SPS 2025-2028 and 4.3x for PSR 2025-2028. Key Assumptions - Continued supportive legislative and regulatory environment; - No wildfire imprudence disallowance is assumed in Fitch's forecast; - Reflects the CPUC's final decision in PG&E's 2023 general rate case; - Timely access to the Fund to recover wildfire costs over $1 billion; - Incorporates CPUC-authorized capital structure waiver and a hypothetical 52% equity ratio for regulatory purposes; - FERC jurisdictional transmission wildfire costs are fully recovered; - Rate base CAGR of 10% 2023-2028; - Full recovery of deferred wildfire-related restoration and prevention costs; - Continued operation of the Diablo Canyon nuclear plant through 2030. RATING SENSITIVITIES PG&E Corporation Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of PG&E due to the utility sensitivities listed below including an increase in catastrophic wildfires in PG&E's service territory; - An unexpected, significant increase in parent-only debt; - PCG FFO-leverage of worse than 5.5x on a sustained basis. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of PG&E due to the utility sensitivities listed below; - Continued reduction in catastrophic wildfire risk, and improvement in the company's safety culture with consolidated PCG FFO-leverage better than 5.0x on a sustained basis. Pacific Gas and Electric Company Factors That Could, Individually Or Collectively, Lead To Negative Rating Action/Downgrade - Substantial depletion of the AB 1054 Fund and continuation of catastrophic wildfire activity, resulting in large third-party liabilities at PG&E; - No legislative/regulatory support to provide meaningful relief from wildfire risk to PG&E and the other large California IOUs if the Fund is substantially drawn or depleted; - Deterioration of the regulatory/legislative environment in California; - Delay in disbursement of claims from the Fund or subsequent disallowance of withdrawals from the Fund, resulting in reimbursements to the Fund; - These or other factors resulting in FFO leverage worse than 5.5x on a sustained basis. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A determination that SCE equipment was not involved in the ignition of the Eaton Fire; - Robust Fund levels relative to utility claims; - Legislative action to provide meaningful relief from wildfire risk to PG&E and the two other large California IOUs. - Continued reduction in the size and scale of prospective utility-linked wildfires in PG&E's service territory and their impact on utility financials and customers; - Improvement in FFO leverage to better than 5.0x. Liquidity and Debt Structure Fitch believes PCG's consolidated liquidity is solid. As of March 31, 2025, PCG had access to revolving credit facilities (RCFs) with total consolidated borrowing capacity of $4.9 billion, comprised of a $4.4 billion RCF at the utility and a $500 million RCF at PCG. Additional liquidity is provided by the utility's $1.5 billion receivables securitization program, which was fully available as of March 31, 2025. Roughly $4.0 billion was available under PG&E's credit facility as of March 31, 2025, net of $427 million of letters of credit outstanding. The utility had no borrowings outstanding under its RCF as of March 31, 2025. PG&E had cash and cash equivalents of $2.1 billion on its balance sheet at the end of 1Q25. Like most utilities, PG&E is expected to be FCF negative based on Fitch's assumptions and its large capex program. Negative FCF is a function of high capex driven by spending to mitigate catastrophic wildfire activity and to meet California's GHG-reduction goals, which are among the most aggressive in the nation. Fitch expects cash shortfalls to be funded with a balanced mix of debt and equity, with equity provided as appropriate by PCG. Fitch believes PCG's debt maturities are manageable. Issuer Profile PG&E, PCG's primary subsidiary, generates nearly all PCG's earnings and cash flow. As one of the largest U.S. utilities, PG&E serves about 5.6 million electric and 4.6 million natural gas customers across a 70,000 square mile service territory in central and northern California. Summary of Financial Adjustments Fitch adjusts PCG's and PG&E's financials to remove securitization-related revenue, interest and amortization expense and debt. In addition, Fitch applies 50% equity credit to PG&E's $258 million of outstanding preferred securities at the utility and 50% equity credit to $1.5 billion of recently issued junior subordinated debt by PCG. 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 PCG and PG&E have ESG Relevance Scores of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security, '4' for Exposure to Environmental Impacts, and '4' for Exposure to Social Impacts. This is due to the impact of wildfire activity on customers and other constituents, which negatively affects the credit profile and is relevant to the rating alongside other factors. The ESG Relevance Scores reflect Fitch's assessment of wildfire risks to creditworthiness as being manageable within PG&E's current rating category largely due to the companies' efforts to reduce physical risk associated wildfire activity, supported by significant anti-wildfire legislation enacted in recent years. 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 ----------- ------ -------- ----- PG&E Corporation LT IDR BB+ Affirmed BB+ senior secured LT BB+ Affirmed RR4 BB+ junior subordinated LT BB- Affirmed RR6 BB- Pacific Gas and Electric Company LT IDR BB+ Affirmed BB+ preferred LT BB+ Affirmed RR5 BB+ senior secured LT BBB Affirmed RR2 BBB PHOENIX ROSE: Michael Abelow Named Subchapter V Trustee ------------------------------------------------------- The Acting U.S. Trustee for Region 8 appointed Michael Abelow, Esq., at Sherrard Roe Voigt & Harbison, PLC, as Subchapter V trustee for Phoenix Rose, LLC. Mr. Abelow will be paid an hourly fee of $425 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Abelow declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Michael G. Abelow, Esq. Sherrard Roe Voigt & Harbison, PLC 150 3rd Ave. South, Suite 1100 Nashville TN 37201 Phone: (615) 742-4532 Email: mabelow@srvhlaw.com About Phoenix Rose LLC Phoenix Rose, LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Tenn. Case No. 25-01893) 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 Nancy B. King handles the case. The Debtor is represented by Jay Lefkovitz, Esq. PHYSICIAN PARTNERS: Saratoga CLO Marks $2.9 Mil. Loan at 60% Off ---------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $2,928,567 loan extended to Physician Partners LLC to market at $1,156,784 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 Physician Partners LLC. The loan accrues interest at a rate of 3M USD SOFR+ 4.00% per annum. The loan matures on December 22, 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 Physician Partners LLC Physician Partners LLC (dba Better Health Group) is a value-based primary care physician group and managed service organization network that services over 250,000 members, with over 1,000 providers and 111 owned centers. Private equity firm, Kinderhook Industries, is an investor in Better Health Midco, LLC with LTM revenue as of June 30, 2023 of approximately $1.1 billion. PIVOTAL ANALYTICS: Gets Interim OK to Use Cash Collateral --------------------------------------------------------- Pivotal Analytics, Inc. got the green light from the U.S. Bankruptcy Court for the Middle District of Florida, Fort Myers Division to use cash collateral. The order penned by Judge Caryl Delano authorized the company's interim use of cash collateral until June 11 to pay the amounts expressly authorized by the court, including payments to the U.S. trustee for quarterly fees; the expenses set forth in the budget, plus an amount not to exceed 10% for each line item; and additional amounts expressly approved in writing by senior lender, UDLR Capital, LLC. As protection, UDLR was granted replacement liens on the company's real and personal property, with the same validity, extent and priority as its pre-bankruptcy liens. Other creditors may receive conditional replacement liens if their interest in the cash collateral is later determined by the court to be superior in priority to the senior lender's. The next hearing is scheduled for June 11. A copy of the court's order and the budget is available at https://shorturl.at/mQC19 from PacerMonitor.com. About Pivotal Analytics Inc. Pivotal Analytics Inc. is a data analytics and insights company seeking to redefine how healthcare systems and their partners identify growth opportunities and optimize real estate investment decisions in a value-based care market. The Company offers a range of services, including market evaluation, competitive analysis, and assessments of consumer demand, provider supply, and productivity. These insights help optimize healthcare assets and services. Pivotal Analytics sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00608) on April 7, 2025. In its petition, the Debtor reported total assets of $760,589 and total liabilities of $5,105,176. Judge Caryl E. Delano handles the case. Michael Dal Lago, Esq., at Dal Lago Law is the Debtor's bankruptcy counsel. UDLR Capital, LLC, as senior lender, is represented by: Benjamin B. Brown, Esq. Quarles & Brady LLP 1395 Panther Lane, Suite 300 Naples, FL 34109 239-659-5026 Benjamin.Brown@quarles.com PRESCART CORP: Seeks Chapter 11 Bankruptcy in North Carolina ------------------------------------------------------------ On May 16, 2025, PresCart Corp. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of North Carolina. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About PresCart Corp. PresCart Corp., d/b/a The Lash Lounge, provides eyelash and eyebrow services through personalized treatments such as lash extensions, lash lifts, tinting, and threading. Operating with a focus on customization and detail, the Company offers multiple lash extension styles including classic, volume, hybrid, and mega volume. Each service is performed by trained stylists aiming to enhance clients' appearance without the need for daily makeup. PresCart Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D.N.C. Case No. 25-30503) on May 16, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Ashley Austin Edwards handles the case. The Debtors are represented by Richard S. Wright, Esq. at MOON WRIGHT & HOUSTON, PLLC. PROVIDENTIAL LENDING: Seeks Cash Collateral Access -------------------------------------------------- Providential Lending Services, LLC asked the U.S. Bankruptcy Court for the District of Arizona for authority to use cash collateral. The Debtor, which operates a rental property business in Mesa, Ariz., aims to use rental income (recognized as cash collateral) solely to maintain and manage the properties securing the creditors' loans. The properties had experienced vacancies but are now being re-leased, with projected monthly income between $41,500 and $42,000. The creditors are PHH Mortgage and Kerry and Leslee Leonard. To protect PHH and the Leonards' interests under bankruptcy law, the Debtor proposed granting them replacement liens on the same properties and related proceeds, ensuring their claims are secured despite the use of collateral income. These liens would be automatically perfected without additional filings and would only be subordinate to any future liens granted under 11 U.S.C. Section 364(c). The Debtor argued that using the rental income to pay for essential expenses such as taxes, insurance, and maintenance will preserve the properties' value, prevent further deterioration, and support its reorganization efforts. A court hearing is set for June 5. About Providential Lending Services Providential Lending Services, LLC is a company based in Mesa, Ariz., primarily engaged in renting and leasing properties to residential or commercial tenants. Providential Lending Services sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-04020) on May 5, 2025, listing up to $10 million in assets and up to $500,000 in liabilities. John Conover, manager of Providential Lending Services, signed the petition. Judge Brenda K. Martin oversees the case. Joseph G. Urtuzuastegui III, Esq., at The Real Estate Investor Law Firm, LLC, represents the Debtor as bankruptcy counsel. PUERTO RICO: Dechert LLP Updates List of PREPA Bondholders ---------------------------------------------------------- The law firm of Dechert LLP filed an eighth verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure to disclose that in the Chapter 11 case of Puerto Rico Electric Power Authority ("PREPA"), the firm represents PREPA Ad Hoc Group. Dechert submits this Eighth Verified Statement to update the PREPA Ad Hoc Group's holdings of Bonds and disclosable economic interests currently held by its Members, as of May 13, 2025. Dechert notes that it does not represent the PREPA Ad Hoc Group as a committee (as such term is used in the Bankruptcy Code and Bankruptcy Rules) and does not undertake to, and does not, represent the interest of, and is not a fiduciary for, any creditor, party in interests, or entity other than the PREPA Ad Hoc Group and Invesco. Dechert has been advised by the Members of the PREPA Ad Hoc Group that its Members either hold, or manage funds and/or accounts that hold, collectively, approximately $2.3 billion in aggregate principal amount of uninsured Bonds, in addition to approximately $448 million in aggregate principal amount of insured Bonds. The members of the PREPA Ad Hoc Group and their bond holdings in PREPA are: Member Uninsured Bonds Insured Bonds ------- --------------- ------------- AllianceBernstein L.P. $170,415,000 $56,305,000 1345 Avenue of the Americas, New York, NY 10105 Aristeia Capital, L.L.C. $41,710,000 $0 One Greenwich Plaza, Suite 300, Greenwich, CT 06830 BNY Mellon Funds Trust $14,500,000 $0 201 Washington Street, 8th Floor, Boston, MA 02108 Capital Research and Management Co. $287,780,000 $51,305,000 333 South Hope Street, 54th Floor Los Angeles, CA 90404 Columbia Management Investment Advisers, LLC $56,975,000 $0 290 Congress Street, Boston, MA 02210 Delaware Management Company a series of Macquarie Investment Management Business Trust $161,190,000 $0 610 Market Street, Philadelphia PA 19106 Ellington Management Group, L.L.C. $23,255,000 $0 711 Third Avenue, New York, NY 10017 Goldman Sachs Asset Management LP $323,127,000 $148,607,000 200 West Street, New York, NY 10282 Invesco Advisers, Inc. $232,598,000 $124,290,000 225 Liberty Street New York, NY 10281 MacKay Shields LLC $608,545,000 $26,045,000 1345 Avenue of the Americas New York, NY 10105 Massachusetts Financial Services Company $145,060,000 $37,320,000 111 Huntington Avenue, Boston, MA 02199 One William Street $74,338,000 $0 Capital Management, L.P., on behalf of certain funds it manages or advises 299 Park Ave., Fl. 25, New York, NY 10171 RUSSELL INVESTMENT COMPANY $26,640,000 $3,980,000 1301 Second Avenue, 18th Floor Seattle, WA 98101 SIG Structured Products, LLC $3,250,000 $0 401 E. City Avenue, Suite 220 Bala Cynwyd, PA 19004 T. Rowe Price $151,120,000 $130,000 100 E. Pratt Street, BA 0754 Baltimore, MD 21202 Tower Bay Asset Management LP $23,460,000 $0 700 Canal Street, Ste 12E Stamford, CT 06902 PREPA Ad Hoc Group is represented by: MONSERRATE SIMONET & GIERBOLINI, LLC Dora L. Monserrate-Peñagarícano, Esq. Fernando J. Gierbolini-González, Esq. Richard J. Schell, Esq. 101 San Patricio Ave., Suite 1120 Guaynabo, PR 00968 Phone: (787) 620-5300 Facsimile: (787) 620-5305 Email: dmonserrate@msglawpr.com fgierbolini@msglawpr.com rschell@msglawpr.com - and - DECHERT LLP G. Eric Brunstad Jr., Esq. Stephen D. Zide, Esq. David A. Herman, Esq. 1095 Avenue of the Americas New York, NY 10036 Phone: (212) 698-3500 Facsimile: (212) 698-3599 Email: eric.brunstad@dechert.com stephen.zide@dechert.com david.herman@dechert.com About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico' PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies -- Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) -- commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. QBD PACKAGING: Dennis Perrey Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 10 appointed Dennis Perrey as Subchapter V trustee for QBD Packaging, LLC. Mr. Perrey will be paid an hourly fee of $375 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Perrey declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Dennis J. Perrey P.O. Box 451 Chandler, IN 47610-0451 812.630.5823 Email: dennis.perrey@yahoo.com About QBD Packaging LLC QBD Packaging, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Ind. Case No. 25-90538) on May 5, 2025. In the petition signed by Nnodum Iheme, the Debtor disclosed up to $10 million in assets and up to $1 million in liabilities. Judge Andrea K. McCord oversees the case. Jeffrey Hester, Esq., at Hester Baker Krebs LLC, represents the Debtor as legal counsel. RACKSPACE TECHNOLOGY: Saratoga CLO Marks $2 Million Loan at 43% Off ------------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $2,040,103 loan extended to Rackspace Technology Global, Inc. to market at $1,165,409 or 57% 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 Rackspace Technology Global, Inc. The loan accrues interest at a rate of 1M USD SOFR+ 2.75% per annum. The loan matures on May 15, 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 Rackspace Technology Global, Inc. Rackspace Technology Global, Inc., supports and manages cloud platforms, as well as offers managed hosting, colocation, security, data processing, and enterprise application development. RAINBOW PRODUCTION: Seeks to Extend Plan Exclusivity to July 7 -------------------------------------------------------------- Rainbow Production Services, LLC and affiliates asked the U.S. Bankruptcy Court for the District of Delaware to extend their exclusivity periods to file a plan of reorganization and obtain acceptance thereof to July 7 and September 5, 2025, respectively. The Debtors explain that these chapter 11 Cases have presented various complex and time-consuming matters, including, the sale process the Debtors undertook, which resulted in Court approval of a sale of the Debtors' assets to the Buyer, which the Debtors have successfully closed. The sale process and closing process required the full focus of the Debtors and their professionals since the Petition Date. The Debtors claim that it obtained Court approval of a sale process, implemented and completed the sale process, and obtained Court approval of the sale of assets in the relatively short duration of these Cases. The Debtors also closed the sale and are working on various post-sale matters and the winddown of these estates. The Debtors have chosen an exit mechanism (dismissal) which is pending Court approval. The extension sought herein are designed to avoid potentially unnecessary, and premature, plan preparations. The Debtors cite that although these chapter 11 Cases are approximately six months old, they have quickly progressed towards an orderly and comprehensive conclusion. As set forth above, the Debtors have already made significant steps towards obtaining a resolution in these Cases. In light of the relatively short duration of these Cases, the Debtors submit that the requested extension is reasonable and appropriate. The Debtors assert that termination of the Exclusive Periods would adversely impact the progress of these chapter 11 Cases and potentially cause unnecessary delays, confusion and expense. Not extending, and thus terminating, exclusivity would permit any party in interest to propose a plan and frustrate the efforts of the Debtors and their principal stakeholders. This would foster a chaotic environment with no central focus and threaten the Debtors' chapter 11 exit efforts. Accordingly, the Debtors submit that extending the Exclusive Periods is in the best interests of the Debtors, their estates, and their creditors. Moreover, the Exclusive Periods should be extended for a duration sufficient to ensure that if confirmation of a plan should be denied for any reason, the parties will have sufficient time thereafter to reassess and pursue all alternative options with respect to these Cases. Counsel to the Debtors: Ericka F. Johnson, Esq. Steven D. Adler, Esq. Bayard, P.A. 600 N. King Street, Suite 400 P.O. Box 25130 Wilmington, DE 19899 Tel: (302) 429-4275 Fax: (302) 658-6395 Email: ejohnson@bayardlaw.com -and- David L. Neale, Esq. Krikor J. Meshefejian, Esq. LEVENE, NEALE, BENDER, YOO & GOLUBCHIK L.L.P. 2818 La Cienega Avenue Los Angeles, CA 90034 Telephone: (310) 229-1234 Email: DLN@lnbyg.com KJM@lnbyg.com About Rainbow Production Services Rainbow Production Services, LLC and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 24-12564) on Nov. 4, 2024. At the time of the filing, Rainbow Production Services reported $10 million to $50 million in both assets and liabilities. Judge Karen B. Owens oversees the cases. The Debtors tapped Bayard, PA and Levene, Neale, Bender, Yoo & Golubchik, LLP as legal counsel. Donlin, Recano & Company, Inc., is the claims and noticing agent. REE AUTOMOTIVE: Raises 'Going Concern' Warning as Shares Slide -------------------------------------------------------------- Dean Seal of The Wall Street Journal reports that Ree Automotive's shares dropped sharply after the company raised serious doubts about its ability to continue operating, citing challenges from the recent tariff war and economic volatility impacting its business. The electric vehicle manufacturer announced Thursday, May 15, 2025, that shifting global economic conditions and ongoing tariff issues have disrupted its plans to launch the P7 model and limited its access to debt financing, which negatively affected its revenue projections. As a result, Ree plans to halt production and implement significant cost-cutting measures, including job reductions, according to report. "We will share more details soon, but for now, investors should expect a substantial reduction in operating expenses alongside the production pause," the company stated. Following the announcement, the stock fell 15% to $2.80 in premarket trading. The shares had already declined 63% year-to-date as of the market close on Wednesday, May 14, 2025, the report states. About Ree Automotive Ree Automotive is a manufacturer of electric vehicles. RENASCENCE INC: Section 341(a) Meeting of Creditors on June 25 -------------------------------------------------------------- On May 12, 2025, Renascence Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of North Carolina. According to court filing, the Debtor reports $1,480,810 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on June 25, 2025 at 10:00 AM at Greenville 341 Meeting Room. About Renascence Inc. Renascence Inc., d/b/a PIP Printing, operates a commercial printing business based in Greenville, Pitt County, North Carolina. Founded in 1997, the Company runs under a franchise agreement with Postal Instant Press, Inc. (PIP Printing), offering services such as copying, publishing, mailing, embroidery, and signage. It also sells office supplies and serves both individual and business customers in Pitt County and nearby areas. Renascence Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-01764) on May 12, 2025. In its petition, the Debtor reports total assets of $111,445 and total liabilities of $1,480,810. Honorable Bankruptcy Judge Pamela W. Mcafee handles the case. The Debtors are represented by Christopher Scott Kirk, Esq. at C. Scott Kirk, Attorney At Law, PLLC. RISE MANAGEMENT: Unsecureds to Get 13.61% over 84 Months -------------------------------------------------------- Rise Management, LLC, filed with the U.S. Bankruptcy Court for the Eastern District of Louisiana a Combined Plan and Disclosure Statement dated May 2, 2025. The Debtor was founded in 2012. Its primary assets are three retail/office/restaurant buildings and related improvements located in New Orleans, Louisiana (hereinafter, collectively referred to as the "Properties") which sit on three separate lots, with all utilities, services, and parking separated per lot. The three parcels, two with buildings and one with raw land, were acquired in December 2014 for the amount of $1,200,000. Since acquiring the Properties, the Debtor restructured its lease agreement to have all passthrough triple net ("NNN") fees, which protect Creditors and ownership, for variable expenses outside their control pass directly through to tenant operators. Prior to the change of lease terms, the Debtor's leases were gross-rent leases, which left the Debtor liable for unexpected expenses associated with the Property. The Debtor's cashflow is derived from the collection of rents of the units on the Property, building and designing units, management fees, leasing fees, and property maintenance. The new LED lighting, signage, large store front wrap around glass, landscaping, and re-designed parking layout, are proven successes and attractive to operators and tenants. The Debtor's primary asset is real property located at 3301, 3321, & 3361 General DeGaulle, New Orleans, Louisiana. The Debtor estimates the current value of the Property is $1,700,000.00. An appraisal of the Property prepared by Cook Moore in 2022, valued the Property at 1,800,000.00. Due to a decrease in tenants, the Property value was decreased. The Plan contemplates payments to all Holders of Allowed Claims against the Debtor based upon the cash flow created through the business operations of the Debtor or, alternatively, Liquidation of the Debtor's assets. The Holders of Equity Interests will not receive any Distribution until all other Allowed Claims have been paid in accordance with the Plan. Class 5 consists of General Unsecured Claims. Each Holder of an Allowed General Unsecured Claim shall receive quarterly cash payments equal to its Pro Rata share of $195,000.00, to be paid over a period of eighty-four months. Payments shall commence on the first day of the fifteenth month after the Distribution Date. Class 5 will also receive fifty percent of the Litigation Funds, after payment of all Allowed Administrative Expense Claims, Priority Claims, and Priority Tax Claims. Any distributions of Litigation Funds will not be applied towards the quarterly payment amounts. The total estimate of the Class 4 Claims is $1,432,534.02. This Class will receive a distribution of 13.61% of their allowed claims. This Class is impaired. Class 6 consists of Equity Interests. Although the Holders of Existing Equity Interests shall retain those interests after Confirmation, no distributions may be made to the Holders of such Equity Interests by virtue of same unless the following conditions have been met: (a) all Unclassified Claims except for Priority Claims have been paid in full; and, (b) the Debtor is current on all payments to the Holders of Priority Claims and the Class 2, 3, 4 and 5 Claims as required by this Plan. Payments by Holders of Existing Equity Interests to fund repairs and renovations to the Property and provide infusions of capital will be deemed new value contributions by Equity. The financial forecast of the Debtor is based upon the funds generated from operation of the Debtor's business and assumes an occupancy rate of 100%. Cash distributions will come from current operations, Litigation Proceeds, and, if necessary, Equity infusions of capital. The Debtor's financial projections are based on rentals increasing during 2025, reaching a 100% occupancy rate by November 2025. Existing Equity Holders have contributed $25,000.00 to fund all remaining repairs and renovations to the Property. Historically, the Debtors negotiate with leaseholders to complete all their own interior work or build out for spaces leased. Here the debtor has ensured the reorganization plan has funding required if not taken on by the potential leaseholder. JBIT, a member of the Debtor, will guarantee, along with the trustee personally guaranteeing necessary repairs and renovations to the Property. JBIT, a member of the Debtor, will guaranty $200,000.00 of obligations to BOA during the term of this Plan. A full-text copy of the Combined Plan and Disclosure Statement dated May 2, 2025 is available at https://urlcurt.com/u?l=jhPwAU from PacerMonitor.com at no charge. Counsel to the Debtor: Patrick S. Garrity, Esq. Derbes Law Firm, LLC 3027 Ridgelake Drive Metairie, LA 70002 Telephone: (504) 207-0920 Facsimile: (504) 832-0322 E-mail: pgarrity@derbeslaw.com About Rise Management Rise Management LLC is primarily engaged in renting and leasing real estate properties. The Debtor owns three properties located in New Orleans having a total current value of $1.3 million. Rise Management LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 24-11535) on Aug. 7, 2024. In the petition filed by Cullan Maumas of MagNola Ventures, LLC, the Debtor's manager, the Debtor reported total assets of $2,628,537 and total liabilities of $2,952,920. The Honorable Bankruptcy Judge Meredith S. Grabill oversees the case. The Debtor is represented by Patrick Garrity, Esq. at THE DERBES LAW FIRM, LLC. RITE AID: Enters Sale Deals to Ensure Pharmacy Care Continuity -------------------------------------------------------------- Rite Aid Corporation announced on May 15, 2025, that it has successfully entered into a series of sale agreements and pharmacy services transition agreements. This includes the rolling transition of pharmacy assets from more than 1,000 store locations across the U.S. to operators including CVS Pharmacy, Walgreens, Albertsons, Kroger, and Giant Eagle, among others, as well as the sale and operation by CVS Pharmacy of many Rite Aid and Bartell Drugs stores located in Washington, Oregon, and Idaho. Importantly, during the transition, Rite Aid stores will remain open, and customers can continue to access their pharmacy services, including prescription refills and immunizations, without interruption. Matt Schroeder, Chief Executive Officer of Rite Aid, said, "A key priority for Rite Aid is to ensure that as many of our loyal customers as possible continue to receive the pharmacy services and care they require without interruption. These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members." The sale transactions are subject to approval by the U.S. Bankruptcy Court for the District of New Jersey. The Court is currently scheduled to conduct a hearing to approve the sales on May 21, 2025. Upon approval from the Court, the sales will remain subject to certain regulatory notices and approvals, and other customary closing conditions. Additional Information Regarding the Court-Supervised Process Filings and other information related to the court-supervised proceedings are available at https://restructuring.ra.kroll.com/RiteAid2025, by calling the Company's claims agent, Kroll, toll-free at (888) 575-9318, or +1 (646) 930-4577 for calls originating outside of the U.S. or Canada, or by emailing Kroll at RiteAid2025Info@ra.kroll.com. Information for landlords is available by contacting A&G Realty Partners at http://www.agrep.com/index.php/active-projects. Advisors Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal advisor, Guggenheim Securities, LLC is serving as investment banker, and Alvarez & Marsal is serving as financial advisor to the Company. Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor to the Company. 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. RITE AID: Sells Pharmacy Assets of 1,000 Locations to Rivals ------------------------------------------------------------ Jordan Valinsky of CNN reports thatRite Aid has agreed to sell the pharmacy operations of more than 1,000 of its U.S. locations to several competitors, the company announced Thursday as part of its ongoing bankruptcy proceedings. CVS Pharmacy, Walgreens, Albertsons, and Kroger are among the buyers acquiring prescription files and services. CVS is the largest purchaser, obtaining records from over 600 Rite Aid stores across 15 states and agreeing to buy 64 physical locations in Idaho, Oregon, and Washington. The deals are still pending approval from the bankruptcy court. The sale follows Rite Aid's second Chapter 11 bankruptcy filing earlier this month, just seven months after it emerged from its previous restructuring as a private company. The company’s original filing in October 2023 was driven by nearly $4 billion in debt, costly litigation over allegedly dispensing unlawful opioid prescriptions, and intensified competition from larger chains, according to CNN. Rite Aid remains the third-largest standalone pharmacy chain in the country and the seventh-largest overall when including big-box retailers. Its store count has fallen to approximately 1,240—half the number it operated two years ago, CNN reports. "These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members," said Rite Aid CEO Matt Schroeder. He noted that the move will allow customers to continue receiving pharmacy services without disruption. The company confirmed that stores will remain open and pharmacy operations will continue as usual during the Chapter 11 proceedings, 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. ROYAL PAPER: Sofidel Secures Auction Victory for Bankrupt Rival --------------------------------------------------------------- Alex Wolf of Bloomberg Law reports that Sofidel America Corp., the U.S. arm of Italian tissue paper maker Sofidel, emerged as the winning bidder for the assets of bankrupt rival Royal Paper, increasing its offer to a final price of $180 million. Royal Interco LLC, the debtor, stated in a May 16 filing with the U.S. Bankruptcy Court for the District of Delaware that Sofidel surpassed Kimberly-Clark Corp. in the auction. Kimberly-Clark will serve as the backup bidder until the Chapter 11 sale to Sofidel is completed, according to Bloomberg Law. About Royal Paper Founded in 1992 in Phoenix, AZ, Royal is a manufacturer and national supplier of high-quality paper products. The Company began as a family-owned business that operated a single converting line, supplying napkins and bath tissues to local retailers in Phoenix, Arizona. Since 1992, the Company has continuously evolved its production capacity to produce additional products in a broad range of configurations to a growing customer base. Today, the Company provides a full range of paper products like paper towels, bath tissues, facial tissues and napkins--across the value spectrum (from premium to value products), with manufacturing across the United States tailored to meet the specifications and standards of their customers. Royal Paper sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10676) on April 8, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million each. Honorable Bankruptcy Judge Thomas M. Horan handles the case. The Debtor is represented by Robert J. Dehney, Esq. at Morris, Nichols, Arsht & Tunnell. SABRE CORP: S&P Affirms 'B-' Issuer Credit Rating, Outlook Stable ----------------------------------------------------------------- S&P Global Ratings affirmed all its ratings on global distribution system (GDS) provider Sabre Corp., including the 'B-' issuer credit rating. S&P said, "At the same time, we assigned our 'B-' issue-level rating and '3' recovery rating to Sabre's proposed senior secured notes. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery for the secured lenders in the event of a payment default. We also revised our recovery rating on the company's existing senior secured debt to '3' from '4'. "The stable outlook reflects our view that continued growth from cost efficiencies and ramp up of new commercial wins, partially offset by a decline in industry air travel bookings, will lead to leverage declining to the 7x area, free operating cash flow (FOCF) to debt approaching 5%, and EBITDA interest coverage of about 1.1x in 2025." Sabre Corp. announced it is issuing $975 million of new senior secured notes due 2030 to refinance its existing senior secured paid-in-kind (PIK) term loan due 2028 (not rated). Sabre continues to proactively address its leverage and maturity profile. S&P expects the company's leverage to materially improve to the 7x area by the end of this year. Nevertheless, Sabre's cost of capital remains very high because the company has been refinancing its debt at significantly higher interest rates since the pandemic. S&P forecasts the company's S&P Global Ratings EBITDA interest coverage will be around 1x at the end of 2025. Furthermore, increased recessionary risk and tariffs, which could create some capital market uncertainty for its remaining near-term maturities, could pressure global travel. Sabre's EBITDA cash interest coverage remains thin despite a series of credit-positive transactions. Since 2023, the company has executed several refinancings to improve its high debt load, reduce interest expense, and extend its upcoming maturity walls. Most recently, Sabre entered into a definitive agreement to sell its Hospitality Solutions business SynXis for $1.1 billion. S&P said, "Of the $960 million net cash proceeds, we expect the company to repay $825 million of its term loans with the remaining $135 million portion going toward cash on the balance sheet to invest in growth strategies. We believe this transaction improves the company's leverage by about 1x and provides roughly $65 million of cash interest savings on an annualized basis. Furthermore, the proposed issuance of $975 million senior secured notes due 2030 to refinance its existing PIK term loan due 2028 removes a growing liability (PIK rates up to 19%) and what would eventually have been a significant drag on cash generation and cash interest coverage metrics of the company. For example, interest payments on the PIK term loan toggle to cash-pay only from PIK at the end of 2025 with an all-in cash interest in the range of 11.5% to 17.5%. We expect the fixed coupon rate on the proposed notes to be lower than the all-in interest rate floor of 11.5% under the PIK term loan, providing substantial cash interest savings. The proposed transaction also effectively extends the maturity to 2030 from 2028 and allows the company to more efficiently manage its cash flow with fixed payments instead of a variable reference rate on the PIK term loan." Nonetheless, Sabre's high cost of capital and somewhat still suppressed profits leads to weak credit metrics. S&P said, "For example, we forecast Sabre's EBITDA cash interest coverage to only improve to 1.1x in 2025 from 0.8x in 2024, which remains thin relative to 'B' rated peers. Based on our forecast, we don't expect the company's coverage metric will increase to the mid-1x area over the next two years. We believe weak credit metrics limits the company's financial flexibility. Following the proposed transaction and assuming the mandatory debt paydown from the SynXis asset sale closes in the third quarter of 2025, the company will have roughly $1.2 billion of debt maturing in 2027." S&P said, "We expect the company's EBITDA to improve by about 25% in 2025. We believe it will benefit from cost savings related to its technology transformation program, workforce reduction and growth initiatives from commercial new wins, partially offset by GDS industry travel volume declines and the sale of its hospitality business. Since implementing its multi-year tech transformation initiative in 2019, the company has modernized its technology stack by partnering with Google to migrate almost 100% of its computing capacity to the cloud. We expect this modernized open cloud-based tech stack to drive further operating leverage as Sabre delivers more critical SaaS capabilities such as seamless integration, better performance and scalability, high availability, and enhanced security to its customers. We understand all upfront costs to achieve these initiatives were actioned and completed by 2024. We also expect SG&A costs to remain roughly flat in 2025 after reducing its workforce in 2023. Furthermore, we expect the implementation of new agency wins, hotel B2B distribution growth, and the launch of SabreMosaic to result in some market share gains, with double-digit booking growth largely weighted to the second half of the year. As such, we expect EBITDA margins to substantially improve by about 400 basis points (bps) in 2025, driving leverage to the 7x area in 2025 from 10.9x in 2024. We also expect the company to remain disciplined with its capital expenditure (capex) spend such that FOCF to debt approaches 5% in 2025 from negative 1.3% the year prior." Risks to business travel and air traffic recovery include heightened recessionary risk, inflationary pressures, and the negative effects of escalating tariffs. S&P said, "Global air passenger traffic has been relatively resilient in recessions preceding the COVID-19 pandemic, but we believe demand for air travel could modestly decline as companies would likely scale back nonessential business travel in a recessionary environment to cut costs. While our base-case forecast incorporates good revenue and EBITDA growth this year, we believe our expectation of a shallow recession in 2025 could create risk to the company's deleveraging path and cash generation depending on the length and severity of a recession. Furthermore, persisting risks regarding disintermediation, corporate travel recovery, and environmental considerations will keep the company's performance well below pre-pandemic levels in the foreseeable future. In 2025, we forecast roughly $2.9 billion and $500 million of revenue and EBITDA, respectively, which compares 2018 levels of about $3.9 billion and $800 million of EBITDA, respectively." S&P said, "The stable outlook reflects our view that continued growth from cost efficiencies and ramp up of new commercial wins, partially offset by a decline in industry air travel bookings, will lead to leverage declining to the 7x area, FOCF to debt approaching 5%, and EBITDA interest coverage of about 1.1x in 2025." S&P could lower its rating on Sabre within the next 12 months if: -- Its liquidity deteriorates and business travel conditions do not improve to the extent necessary for it to cover its fixed charges; or -- S&P views future transactions to refinance its debt maturities as distressed rather than opportunistic depending on the time to maturity and pace of operational recovery. S&P said, "We could raise the rating if we believe the company can decline its leverage to below 7x and improve its FOCF to debt above 5% on a sustained basis, despite tough macroeconomic conditions. We would also expect the company to improve its EBITDA cash interest coverage ratio to about 1.5x, likely by refinancing its capital structure at favorable interest rates, additional debt paydown, or better-than-expected operating performance." SAKS GLOBAL: Majority Creditors Band Together Prior Debt Talks -------------------------------------------------------------- Reshmi Basu, Eliza Ronalds-Hannon, and Jill R. Shah of Bloomberg News reports that the creditors representing more than half of Saks Global Enterprises' $2.2 billion bond maturing in 2029 have formed a group and are gearing up for potential negotiations with the company over its financing options, according to people familiar with the situation. The group has enlisted Lazard Inc. as financial adviser and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel, the sources said, speaking on condition of anonymity as the information is not public. Saks and Lazard declined to comment, while Paul Weiss did not respond to requests for comment. About Saks Global Enterprises Saks Global Enterprises operates as an investment and wealth management company. The Company invests in a set of stocks that are associated with historically high dividend payments to their shareholders. Saks Global Enterprises serves clients worldwide. SALEM 46-48: To Sell Salem City Property to Kent 11 for $225K ------------------------------------------------------------- Salem 46-48 Market LLC seeks permission from the U.S. Bankruptcy Court for the District of New Jersey, to sell Property, free and clear of liens, interests, and encumbrances. The Debtor's Property is located at 118 Seventh Street, Salem City, New Jersey. The Debtor wants to sell the Property to Kent 11 LLC with the purchase price of $225,000. The Buyer will pay all the closing title costs minus any unpaid taxes, mortgages or liens. Property taxes, insurance and rents will be prorated as of the date of closing. All security deposits shall be transferred to buyer at closing, and any shortage in accounts will be charged to seller at closing. The sale transaction will be closed before or around May 27, 2025. About Salem 46-48 Market LLC Salem 46-48 Market, LLC filed its voluntary Chapter 11 petition (Bankr. D.N.J. Case No. 25-13445) on April 1, 2025, listing under $1 million in both assets and liabilities. Judge Mark Edward Hall presides over the case. The Debtor tapped Robert C. Nisenson LLC as counsel. SITEL WORLDWIDE: Saratoga CLO Marks $1.9 Million Loan at 35% Off ---------------------------------------------------------------- Saratoga Investment Corp. CLO 2013-1, Ltd. (Saratoga CLO) has marked its $1,935,000 loan extended to Sitel Worldwide Corporation to market at $1,248,733 or 65% 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 USD Term Loan to Sitel Worldwide Corporation. The loan accrues interest at a rate of 3M USD SOFR+ 3.75% per annum. The loan matures on August 28, 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 Sitel Worldwide Corporation Provider of business process outsourcing services designed for customer care. The company's business process outsourcing services includes customer acquisition, back-office processing, collections, and technical support, enabling their clients to meet their sales management needs. SKY RADIOLOGY: Jolene Wee Named Subchapter V Trustee ---------------------------------------------------- The U.S. Trustee for Region 2 appointed Jolene Wee of JW Infinity Consulting, LLC as Subchapter V trustee for Sky Radiology, P.C. Ms. Wee will be compensated at $640 per hour for work performed in 2025. In addition, the Subchapter V trustee will receive reimbursement for work-related expenses incurred. Ms. Wee declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Jolene E. Wee JW Infinity Consulting, LLC 447 Broadway 2nd Fl #502 New York, NY 10013 Telephone: (929) 502-7715 Facsimile: (646) 810-3989 Email: jwee@jw-infinity.com About Sky Radiology P.C. Sky Radiology P.C. operates a diagnostic imaging center specializing in magnetic resonance imaging (MRI) services. Based in Bayside, N.Y., the clinic serves patients in the surrounding area. Sky Radiology sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-42147) on May 2, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. Judge Elizabeth S. Stong handles the case. The Debtor is represented by James Mermigis, Esq., at The Mermigis Law Group, P.C. SLATE RIVER: Involuntary Chapter 11 Case Summary ------------------------------------------------ Alleged Debtor: Slate River Systems, Inc. 2040 E. Continental Blvd. Suite 4 Southlake TX 76092 Business Description: Slate River Systems, Inc. is a material handling systems integrator based in Southlake, Texas. The Company specializes in automation and warehouse information systems, offering turnkey solutions such as automated storage and retrieval systems, conveyor systems, and warehouse management software. Its services aim to optimize inventory flow, order processing, and labor efficiency across various industries. Involuntary Chapter 11 Petition Date: May 19, 2025 Court: United States Bankruptcy Court Northern District of Texas Case No.: 25-41807 Petitioners' Counsel: Lenard M. Parkins, Esq. PARKINS & RUBIO LLP 708 Main St., Fl 10 Houston TX 77002 Tel: (713) 715-1666 Email: lparkins@parkinsrubio.com A full-text copy of the Involuntary Petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/FJOSBXY/Slate_River_Systems_Inc__txnbke-25-41807__0001.0.pdf?mcid=tGE4TAMA Alleged creditors who signed the petition: Petitioner Nature of Claim Claim Amount Frazier Industrial Company Materials Supplied $3,285,598 91 Fairview Avenue Long Valley NJ 07853 LogiTech, Inc. Goods/Services $465,041 6423 Seeds Road Provided Grove City OH 43123 Millenium Material Handling, LLC Goods/Services $906,120 115 Oak Street Provided Monroe GA 30655 SMALL FORTUNE: Gets Extension to Access Cash Collateral ------------------------------------------------------- Small Fortune Hunter, LLC received second interim approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina to use cash collateral. The order penned by Judge David Warren authorized the company's interim use of cash collateral to pay the expenses set forth in its 30-day budget, which covers the period May 1 to 31. The budget projects total operational expenses of $81,124.43 for May. BayFirst National Bank, BriteCap, WebBank and The LCF Group are the company's creditors that may assert a lien on the cash collateral. As protection, secured creditors will be granted a lien on post-petition revenue and other assets of the company to the same extent and with the same priority as their pre-bankruptcy lien. The next hearing is set for June 3. About Small Fortune Hunter Small Fortune Hunter, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-01203) on April 1, 2025, listing up to $50,000 in assets and up to $500,000 in liabilities. Michael Seighman, member-manager of Small Fortune Hunter, signed the petition. Judge David M. Warren oversees the case. The Debtor is Represented By: Philip Sasser, Esq. Sasser Law Firm Tel: 919-319-7400 Email: philip@sasserbankruptcy.com SOUL WELLNESS: Updates Restructuring Plan Disclosures ----------------------------------------------------- Soul Wellness, LLC, submitted an Amended Plan of Reorganization dated May 2, 2025. The Plan Proponent's financial projections show that the Debtor will have sufficient projected disposable income to make all payments under the Plan. The final Plan payment is expected to be paid on or before the expiration of 60 months from the Effective Date and will be funded primarily from pass through rent payments from the Debtor's affiliate which occupies the premises and loans or capital from the Debtor's principal, Daniel Lopez-Callejas. The Debtor reserves the right to amend this Plan to the extent necessary. This Plan proposes to pay Allowed Claims no less than the value of Soul Wellness's projected Net Disposable Income for a period of no less than 36 months. The Plan provides for 4 Classes of creditor claims (including priority, secured, and unsecured) and one Class of Equity interests. The Amended Plan does not alter the proposed treatment for unsecured creditors and the equity holder: * Class 3 consists of Allowed General Unsecured Claims. The Reorganized Debtor will make a pro rata distribution in amount of $500.00 per year starting in the second year of the Plan (for a total payment to Class 3 in the amount of $2,000.00. Class 3 is Impaired and entitled to vote. * Class 4 consists of membership interests of Daniel Lopez Calleja and Sean Velas in Soul Wellness. On the Effective Date, the Equity Interests will be retained in the same amounts and character as they were held prior to the Petition Date. Class 4 is deemed to accept and not entitled to vote. On the Effective Date, all property of the Debtor not otherwise disposed of under the Plan, shall vest with the Reorganized Debtor pursuant to Section 1186 of the Bankruptcy Code. The Plan proposes to pay Allowed Claims to be paid under the Plan from the Debtor's projected net disposable income. Additionally, Mr. LopezCallejas has provided loans to the Debtor postpetition. Mr. Lopez-Callejas has agreed to subordinate repayment of what could otherwise be considered a superpriority administrative claim. The Reorganized Debtor may have insufficient revenue to fund the Plan. As such, in addition to subordination of his loan repayment as described in the preceding paragraph, Mr. Lopez-Callejas has committed to contributing such sums as required under the Plan to fund cash shortfalls. The net proceeds of said financing (after allocation of costs and taxes) will be used to make a distribution to Allowed Claimholders as shown in the projections. A full-text copy of the Amended Plan dated May 2, 2025 is available at https://urlcurt.com/u?l=MBYXYT from PacerMonitor.com at no charge. About Soul Wellness Soul Wellness, LLC operates a wellness and fitness gym, with a concentration on CrossFit, Olympic weightlifting and power lifting. It also offers classes in yoga, Pilates, run fitness, and jujitsu gym. In addition to the general gym offerings, Soul Wellness operates a youth specific fitness program for high school students, and offers discounted programs for public school teachers and personalized training for disabled children. Soul Wellness filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-23368) on December 20, 2024, listing up to $50,000 in assets and up to $1 million in liabilities. Tarek Kiem, Esq., at Kiem Law, PLLC serves as Subchapter V trustee. Judge Laurel M. Isicoff oversees the case. The Debtor is represented by: Jacqueline Calderin, Esq. Agentis PLLC 45 Almeria Avenue Coral Gables, FL 33134 Telephone: (305) 722-2002 Email: jc@agentislaw.com STAR PUMP: Unsecured Claims Under $25K to Recover 10% in Plan ------------------------------------------------------------- Star Pump Down Services, LLC, submitted a Disclosure Statement describing Amended Plan of Reorganization dated May 2, 2025. The Debtor's Plan is premised upon continuing to operate its business. The Debtor has two lines of business. One consists of leasing out its equipment to third parties. The second consists of directly providing services to customers. The Debtor has limited its business to leasing activities during the Chapter 11 proceeding but intends to resume directly providing services as soon as this is feasible. The Plan proposes to operate its business to generate funds to pay creditors over a five-year period. Class 5 shall consist of the holders of Allowed General Unsecured Claims totaling less than $25,000 who do not timely submit ballots containing an election to be treated as members of Class 6. The allowed unsecured claims total $82,877.64. Members of this Class will be paid 10% of their claim amounts on the effective date. The Debtor estimates that payments to this class will total $8,287.76. Creditors in this class will receive a higher percentage if they elect to participate in Class 6. However, they will have to accept payments over a longer period of time. Class 5 is impaired. Class 6 shall consist of the holders of Allowed General Unsecured Claims who are not members of Class 5. The allowed unsecured claims total $4,219,560.23. Members of Class 6 will receive their pro rata shares of the following payments to be made by the Debtor on account of Class 6 Claims: $10,000 per month during the two-year period after the effective date; followed by $25,000 per month during the subsequent four-year period. Class 6 shall receive total payments in the amount of $1,440,000. This will result in a distribution of approximately 34% without interest. Class 6 is impaired. The Plan will be funded from the revenues generated from the Debtor's future business operations. A full-text copy of the Disclosure Statement dated May 2, 2025 is available at https://urlcurt.com/u?l=AfyNIN from PacerMonitor.com at no charge. Counsel to the Debtor: Stephen Sather, Esq. Barron & Newburger P.C. 7320 N. Mopac Expressway, Ste. 400 Austin, TX 78731 Telephone: (512) 476-9103 Email: ssather@bn-lawyers.com About Star Pump Down Service Star Pump Down Service LLC is dedicated to providing services in the pump down industry. Star Pump Down Service LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-11506) on November 29, 2024. In the petition signed by Chad Elliott, president, the Debtor reports total assets of $5,146,614 and total liabilities of $7,061,694. Honorable Bankruptcy Judge Shad Robinson handles the case. Stephen Sather, Esq., at Barron & Newburger PC, serves as the Debtor's counsel. TEKNATOOL USA: Gets Extension to Access Cash Collateral ------------------------------------------------------- Teknatool USA, Inc. received another extension from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division to use cash collateral. The interim order signed by Judge Catherine Peek McEwen authorized the company to use cash collateral to pay the amounts expressly authorized by the court, including payments to the U.S. trustee for quarterly fees; the expenses set forth in the budget; and additional amounts expressly approved in writing by secured creditor, Pathward, National Association. This authorization will continue until further order of the court. As protection for the use of its cash collateral, Pathward was granted a post-petition lien on its collateral to the same extent and with the same validity and priority as its pre-bankruptcy lien. During the interim period, Teknatool is not required to make payments to Pathward on the revolving loan. The company, however, agreed to a monthly payment of $10,000 on the SBA 7a loan. The next hearing is scheduled for June 12. A copy of the court's order and the budget is available at https://shorturl.at/sRxSB from PacerMonitor.com. About Teknatool USA Inc. Teknatool USA Inc., a company in Seminole, Fla., offers a wide array of woodturning tools and accessories, including lathes and chucks, catering to both hobbyists and professionals in the woodworking community. Teknatool USA filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 25-01248) on March 1, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. Judge Catherine Peek McEwen handles the case. Joel Aresty, Esq., at Joel M. Aresty, PA is the Debtor's legal counsel. Pathward N.A., as secured creditor, is represented by: James J. Webb, Esq. Mitrani, Rynor, Adamsky & Toland, P.A. 301 Arthur Godfrey Road, PH Miami Beach, FL 33140 Tel: (305) 358-0500 Fax: (305) 358-0550 jwebb@mitrani.com TEVA PHARMACEUTICALS: S&P Rates New $2BB Sr. Unsecured Notes 'BB' ----------------------------------------------------------------- S&P Global Ratings assigned its 'BB' issue-level rating and '3' recovery rating to $2 billion in euro- and U.S.-dollar-denominated senior unsecured notes offered by Teva Pharmaceutical Industries Ltd.'s finance subsidiaries Teva Pharmaceutical Finance Netherlands II B.V., Teva Pharmaceutical Finance Netherlands III B.V., and Teva Pharmaceutical Finance Netherlands IV B.V. The notes carry an unconditional guarantee by the parent, the same as for its other outstanding senior unsecured debt. The '3' recovery rating reflects S&P's expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default. Teva intends to use the proceeds to refinance maturing debt and for general corporate purposes. S&P views the transaction as essentially neutral to net leverage, but it improves the company's financial flexibility and liquidity by partially addressing large approaching debt maturities. The 'BB' long-term issuer credit rating on parent Teva and positive outlook are unchanged. The rating reflects the company's good scale ($16.5 billion of 2024 revenue), leading position (about 10% market share) in the global generic drug market, and good diversity across products, therapeutic areas, geographies, customers, payers, and manufacturing sites. It also reflects S&P Global Ratings-adjusted leverage of approximately 4.6x at the end of the first quarter (ended March 2025). The positive outlook reflects the potential for an upgrade within a year, given Teva's strong commitment to prioritizing debt reduction with its approximately $2 billion in annual free cash flow and the proximity of leverage of 4.6x to the upgrade threshold of 4.25x. S&P said, "We expect Teva's branded drug business, which accounted for 18% of 2024 revenues, will benefit from strong growth from its top three branded products, Austedo, Ajovy, and Uzedy, collectively contributing about $450 million of revenue growth in 2025. We also expect material advances in its pipeline of products under development in the coming year. Further, we see merit in Teva's strategy of directing more attention and investment toward the higher-margin branded business and a more focused strategy of investment in the generics business, given the intensely competitive, lower-margin, and less predictable nature of the latter (67% of 2024 revenue). "Teva anticipates the shift in mix toward higher-margin products and operational efficiency initiatives will significantly enhance EBITDA margins by 2027. Our base case assumes only modest improvement in margins, as we see downside risk to management's medium-term guidance, especially given headwinds from broader competition to generic Revlimid in 2026 and the uncertain impact from the Medicare negotiation on Austedo starting in January 2027. "Nevertheless, we expect the company to continue to prioritize debt reduction (including outstanding legal liabilities that we include in our measure of debt). More specifically, we estimate Teva can reduce leverage by about 0.4x-0.5x per year, from last-12-months leverage of 4.6x, potentially supporting a higher rating within 12 months once it declines below 4.25x." TEXAS WHEEL: Unsecureds Will Get 67.59% of Claims over 5 Years -------------------------------------------------------------- Texas Wheel Repair Express 360 LLC filed with the U.S. Bankruptcy Court for the Northern District of Texas a Plan of Reorganization dated May 2, 2025. The Debtor was formed on July 20, 2016. Debtor operates a repair and refinish of alloy wheels for new car dealers, used car dealers, body shops, tire stores, and mechanic shops business. The Debtor is currently owned 100% by Billy Walton Jr. Mr. Walton will remain managing member and retain his 100% ownership interest going forward. The Debtor manages and operates a repair and refinish of alloy wheels for new car dealers, used car dealers, body shops, tire stores, and mechanic shops business. Debtor's assets include its accounts receivables, cash on hand, office furniture, equipment, and van. There is one fully secured creditor as to this property based on the liquidation analysis and UCC filings. All allegedly secured creditors not treated in this Plan as fully secured are under secured. The Debtor will continue operating its business. The Debtor's 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, except for Debtor's landlord, shall receive a pro rata distribution at zero percent per annum over the next five years beginning not later than the 1st day of the first full calendar month following 30 days after the effective date of the plan and continuing every year thereafter on a monthly basis at 0.00% per annum. Not including Debtor's lease cure payment, Debtor will distribute $312,925.00 to the general allowed unsecured creditor pool over the 5-year year term of the plan, includes the under-secured claim portions. The Debtor's General Allowed Unsecured Claimants will receive 67.59% of their allowed claims under this plan. The allowed unsecured claims total $462,997.82. This Class is impaired. ICP 2524 Farrington LP, Debtor's landlord, shall be paid its full pre-petition claim of $26,000.00 in the first year, pursuant to Debtor's assumption of the commercial lease. The above totals do not include this $26,000.00 claim. Class 6 consists of Equity Interest Holder. Billy Walton, Jr. is the sole equity interest holder. He will receive no payments under the Plan; however, he will be allowed to retain ownership of the Debtor. Class 6 is not impaired under the Plan. The Debtor anticipates the continued operations of the business to fund the Plan. A full-text copy of the Plan of Reorganization dated May 2, 2025 is available at https://urlcurt.com/u?l=UpO4gb from PacerMonitor.com at no charge. Counsel to the Debtor: Robert C. Lane, Esq. The Lane Law Firm, PLLC 6200 Savoy, Suite 1150 Houston, TX 77036 Telephone: (713) 595-8200 Facsimile: (713) 595-8201 Email: notifications@lanelaw.com About Texas Wheel Repair Express 360 Texas Wheel Repair Express 360 LLC specializes in the straightening, repair, replacement, and refinishing of aluminum and alloy wheels. Texas Wheel Repair Express 360 filed Chapter 11 petition (Bankr. N.D. Texas Case No. 25-30409) on February 3, 2025, listing total assets of $338,188 and total debts of $1,101,411. Frances Smith, Esq., at Ross, Smith & Binford, PC, serves as Subchapter V trustee. Judge Scott W. Everett handles the case. The Debtor is represented by Robert Lane, Esq., at The Lane Law Firm, PLLC. TOWN LOUNGE HENDERSON: Voluntary Chapter 11 Case Summary -------------------------------------------------------- Debtor: Town Lounge Henderson LLC Born and Raised Henderson 10050 S. Eastern Avenue Suite 170 Henderson NV 89052 Business Description: Town Lounge Henderson LLC operates Born and Raised Henderson, a 24/7 sports bar and lounge located in Henderson, Nevada. The establishment offers a full bar, food service, and multiple televisions for sports viewing. It caters to local patrons and visitors seeking a casual dining and entertainment experience. Chapter 11 Petition Date: May 19, 2025 Court: United States Bankruptcy Court District of Nevada Case No.: 25-12888 Debtor's Counsel: Mitchell Stipp, Esq. LAW OFFICE OF MITCHELL STIPP, P.C. 1180 N. Town Center Drive, Suite 100 Las Vegas, Nevada 89144 Tel: 702-602-1242 Email: mstipp@stipplaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Scottie Godino, Jr., as managing member. A list of the Debtor's 20 largest unsecured creditors was not provided alongside the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/PXHAO7I/Town_Lounge_Henderson_LLC__nvbke-25-12888__0001.0.pdf?mcid=tGE4TAMA TRAVEL HUB: Cameron McCord Named Subchapter V Trustee ----------------------------------------------------- The U.S. Trustee for Region 21 appointed Cameron McCord, Esq., at Jones & Walden, LLC, as Subchapter V trustee for Travel Hub, LLC. Ms. McCord will be paid an hourly fee of $500 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. McCord declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Cameron McCord, Esq. Jones & Walden, LLC 699 Piedmont Avenue, NE Atlanta, GA 30308 Phone: (404) 564-9300 Fax: (404) 564-9301 Email: cmccord@joneswalden.com About Travel Hub Travel Hub, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-55030) on May 5, 2025. At the time of the filing, the Debtor listed between $500,001 and $1 million in both assets and liabilities. TREE LANE: Plan Exclusivity Period Extended to October 23 --------------------------------------------------------- Judge Sheri Bluebond of the U.S. Bankruptcy Court for the Central District of California extended Tree Lane LLC's exclusive periods to file a plan of reorganization and obtain acceptance thereof to October 23 and December 23, 2025, respectively. As shared by Troubled Company Reporter, the Debtor filed this Chapter 11 on April 25, 2024, and the Debtor has been working diligently to move it forward. Since the Petition, the Debtor has worked diligently toward reorganization and has reached a settlement with its largest creditor, Skylark. The Settlement Agreement provides the blueprint for reorganizing as it provides for the marketing and selling of the Property and resolves the claims of the largest secured creditor. Since entering into the Settlement Agreement, the Debtor has experienced complications and delays in selling the Property due to the improper lot line adjustments instigated by Vella which among other things transferred the 1.39 Acre Parcel from the Debtor to Vella. The Debtor asserts that it is not seeking an extension to pressure creditors to accede to its reorganization proposals. Rather, the additional time requested is necessary to ensure that the Debtor is able to present a comprehensive and feasible plan of reorganization. Tree Lane LLC is represented by: Robyn B. Sokol, Esq. Sandford L. Frey, Esq. Leech Tishman Fuscaldo & Lampl, Inc. 1100 Glendon Avenue, 15th Floor Los Angeles, CA 90024 Tel: (626) 796-4000 About Tree Lane Tree Lane LLC, filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 24-13201) on April 25, 2024. The Debtor hired Leech Tishman Fuscaldo & Lampl, Inc., as counsel. UNIFIED SCIENCE: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Unified Science, LLC d/b/a United Science 500 Simmon Dr Osceola, WI 54020 Business Description: Unified Science, LLC provides services, consulting, and manufacturing for the pharmaceutical and nutraceutical industries. The Company offers product development, process engineering, analytical development, and compliance services. It positions itself as a scientific partner supporting clients from development through to product launch. Chapter 11 Petition Date: May 19, 2025 Court: United States Bankruptcy Court Western District of Wisconsin Case No.: 25-11162 Judge: Hon. Catherine J Furay Debtor's Counsel: Evan M. Swenson, Esq. SWENSON LAW GROUP, LLC 118 E. Grand Avenue Eau Claire, WI 54701 Tel: 715-835-7779 Fax: 715-835-2573 E-mail: evan@swensonlawgroup.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $10 million to $50 million The petition was signed by Jon Thompson as principal/managing 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/DSPECWQ/Unified_Science_LLC__wiwbke-25-11162__0001.0.pdf?mcid=tGE4TAMA VAN DER VALK: Andrew Layden Named Subchapter V Trustee ------------------------------------------------------ The U.S. Trustee for Region 21 appointed Andrew Layden as Subchapter V trustee for Van Der Valk Construction, LLC. Mr. Layden 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. Layden declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Andrew Layden 200 S. Orange Avenue, Suite 2300 Orlando, FL 32801 Telephone: 407-649-4000 Email: alayden@bakerlaw.com About Van Der Valk Construction Van Der Valk Construction, LLC is a general contracting company that specializes in residential construction, including custom and model homes. Based in Hernando, Florida, the company also offers real estate and property management services, particularly for short-term rentals in Citrus County. Van Der Valk Construction sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-01382) on April 30, 2025, listing between $50,001 and $100,000 in assets and between $1 million and $10 million in liabilities. Judge Jacob A. Brown handles the case. The Debtor is represented by Richard A. Perry, Esq., at Richard A. Perry, P.A. VIVA LIBRE: Mark Sharf Named Subchapter V Trustee ------------------------------------------------- The U.S. Trustee for Region 17 appointed Mark Sharf, Esq., a practicing attorney in Los Angeles, as Subchapter V trustee for Viva Libre Restaurant Concepts, Inc. Mr. Sharf will charge $660 per hour for his services as Subchapter V trustee and $150 per hour for his trustee administrator's services. In addition, the Subchapter V trustee will seek reimbursement for work-related expenses incurred. Mr. Sharf declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Mark Sharf, Esq. 6080 Center Drive, 6th Floor Los Angeles, CA 90045 Telephone: (323) 612-0202 Email: mark@sharflaw.com About Viva Libre Restaurant Concepts Viva Libre Restaurant Concepts Inc. operates Blue Agave Southwest Grill, a Mexican and Southwestern fusion restaurant based in Yorba Linda, California. The restaurant offers dishes like Mahi Mahi, Mazatlan Mango Wrap and Montego Bay Coconut Shrimp. Viva Libre filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-11186) on May 1, 2025. In its petition, the Debtor reported between $500,000 and $1 million in assets and between $1 million and $10 million in liabilities. Judge Theodor Albert handles the case. The Debtor is represented by Christopher James Langley, Esq., at Shioda Langley & Chang, LLP. VMR CONTRACTORS: Court Extends Cash Collateral Access to July 18 ---------------------------------------------------------------- VMR Contractors Inc. received another extension from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division to use cash collateral. The order authorized the company to use cash collateral through July 18 in accordance with its budget and the terms of the order entered on March 1, 2023. The budget shows total expenses of $549,000 for the period ending June 8. These expenses include payroll, payroll taxes, steel purchases, office supplies, union benefits, and other expenses. The next hearing is scheduled for July 14. About VMR Contractors VMR Contractors, Inc. is in the business of supplying and installing rebar for road construction projects. VMR Contractors sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-14211) on Dec. 8, 2022, with $500,001 to $1 million in assets and $1 million to $10 million in liabilities. Vincent Roberson, president of VMR Contractors, signed the petition. Judge Benjamin Goldgar oversees the case. The Debtor is represented by William J. Factor, Esq., at The Law Office of William J. Factor, Ltd. WABASH NATIONAL: S&P Downgrades ICR to 'B+', Outlook Stable ----------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on Wabash National Corp. to 'B+' from 'BB-' and its issue-level rating on Wabash's senior unsecured notes to 'B' from 'B+'. The '5' recovery rating is unchanged, indicating its expectation for a modest recovery (10%-30%; rounded estimate: 20%) in the event of a default. The stable outlook reflects S&P's expectation that the company's S&P Global Ratings-adjusted debt to EBITDA could improve to 4x and S&P Global Ratings-adjusted free operating cash flow (FOCF) to debt could strengthen to the high-single-digit area percent area in 2026 as freight demand improves. Wabash's credit measures will worsen below expectations for the rating in 2025 as trailer deliveries have declined from freight carriers delaying capital expenditure (capex). S&P said, "The timing for a recovery and the magnitude of a potential rebound is uncertain, and we see significant risk to the forecast; however, our base case reflects the assumption that trailer deliveries will improve somewhat in 2026, which could improve the company's credit measures. "Wabash's credit metrics will deteriorate beyond our previous expectation for 2025, and the recovery in 2026 is uncertain. We now expect S&P Global Ratings adjusted debt to EBITDA will be 8.9x and FOCF to debt will be 0.5% in 2025 (previously, we assumed 3.6x and 8.2%, respectively), inclusive of the Missouri litigation liability (which we include in our debt calculation due to our assumption that Wabash would fund the liability with debt). We expect leverage could approach 4x, along with FOCF to debt of about 8.8% by the end of 2026 should trailer demand improve. Accordingly, we believe credit measures will be commensurate with the lower rating for a sustained period of time. "Wabash has appealed the Williams et al. v. Wabash lawsuit. This follows a judge's decision to reduce punitive damages to $108 million from the $450 million jury verdict earlier in the year (compensatory damages remained nearly $12 million). The timing for resolution and the outcome are uncertain. We continue to expect Wabash to fund any adverse decisions with debt. We could lower the rating if it funds the liability with debt and trailer demand improvement is delayed further from its current near trough levels. "Trailer and truck body deliveries continue to underperform our near-term expectations as freight carriers delay capex. Elevated uncertainty in the broader economy has exacerbated already lower trailer demand from the weaker freight demand environment as carriers pause (or further delay) capex spend. We revised our revenue growth expectations to -15% to -10% (previously -5% to break-even) in 2025. This revision largely reflects weaker demand in the transportation solutions segment (in which we now expect revenue decline of 14.5%), partially offset by growth in the parts and services segment (revenue growth of 10%). We now expect trailer and truck body deliveries of about 27,500 and 12,800 in 2025, respectively, (previously 30,800 and 14,700 in 2025, respectively), improving to about 34,500 and 13,000 in 2026, respectively. We assume average sale price (ASP) of $41,000 and $29,000 for trailers and truck bodies, respectively, in 2025 and 2026 (unchanged from our previous expectations). "Given the cyclical nature of freight transportation and demand for trailers from freight carriers therein, we generally expect total North American trailer production of 250,000-325,000. Dry van makes up the majority of trailer volume produced, and demand is more volatile compared with more specialized products such as tank trailers. We expect total North American trailer production will be in the low-200,000 area in 2025. Production has not been as low since the COVID-19 pandemic, and prior to that production had not been as low since the 2008 recession and the two years thereafter. We believe North American trailer production could improve to 240,000-250,000 in 2026. In a scenario where the industry only produces trailers at replacement levels, we would expect production of 220,00-230,000. We assume Wabash could deliver about 28,000-32,000 trailers. "Wabash's EBITDA margin and reported FOCF are likely to improve modestly through the remainder of 2025, with more material improvement in 2026. Wabash started rightsizing its cost structure in the first quarter. This includes reducing headcount in production facilities in line with lower demand. Excluding the $342 million gain from the reversal of the charge related to Missouri litigation, we expect Wabash will improve earnings relative to the first quarter in the remainder of the year as trailer demand remains weak. Its S&P Global Ratings-adjusted EBITDA margin was about -1.5% in the first quarter. We expect full-year EBITDA margin will improve to positive 2.5%-3.5% in 2025 (our previous assumption was 8.0%-8.5%). Should trailer production improve in line with our forecast, we would expect EBITDA margin to step up to 7%-8% in 2026. "Its reported FOCF (inclusive of capital spend to support trailers as a service [TaaS]) was negative $29.1 million in the first quarter. Its cash flows were weaker due to lower earnings. We expect reported FOCF between negative $10 million and break-even (we previously assumed positive $30 million-$40 million) in 2025, improving to $30 million-$40 million in 2026. We believe Wabash will balance its investment in its TaaS offering along and use of capital toward share repurchases with the timing of trailer demand recovery. While we forecast reported FOCF of $35 million-$45 million in 2026, working capital could reduce this further depending on the timing of a potential recovery. "There is a high degree of uncertainty in the forecast over the next few years due to evolving tariff policies and its impact on the economy. Our base case assumes trailer demand will improve in 2026. We believe the current economic uncertainty is causing freight carriers to delay capital spending they would have otherwise deployed. Accordingly, should policy evolve such that there is greater certainty, we would expect capital spending would return more quickly. That said, it is likely that any combination of supply chain disruption, higher input prices that are not absorbed by carriers, or greater recession risk would result in a negative rating action. "The stable outlook reflects our expectation that Wabash's credit metrics will be appropriate for the rating as trailer and truck body demand recovers from current trough levels. We expect Wabash's debt to EBITDA and FOCF to debt will improve below 5x and above 5%, respectively, in 2026." S&P could lower its rating on Wabash if it believes its S&P Global Ratings-adjusted debt to EBITDA will remain above 5x or FOCF to debt will remain below 5% for a sustained period. This could occur if: -- S&P does not expect Wabash to improve trailer deliveries; or -- The likelihood that Wabash will raise debt to fund litigation-related liabilities increases as trailer demand is weak. S&P could raise the rating on Wabash if its S&P Global Ratings-adjusted debt to EBITDA improves below 4x and FOCF to debt improves toward 15%. This could occur if it expects an increase in trailer deliveries can be sustained or if the company pulls back on capital spending as its TaaS offering matures. WALKER AREA: Mary Sieling Named Subchapter V Trustee ---------------------------------------------------- The Acting U.S. Trustee for Region 12 appointed Mary Sieling as Subchapter V trustee for Walker Area Community Center, Inc. Ms. Sieling will be paid an hourly fee of $330 for her services as Subchapter V trustee and an hourly fee of $200 for paralegal time. In addition, the Subchapter V trustee will receive reimbursement for work-related expenses incurred. Ms. Sieling declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Mary F. Sieling 150 South Fifth Street, Suite 3125 Minneapolis, MN 55402 Email: mary@mantylaw.com About Walker Area Community Center Walker Area Community Center Inc. operates a community facility in Walker, Minn., which includes a gym, exercise space, seasonal ice arena, locker rooms, meeting rooms, and offices. It supports activities for the Boys & Girls Club, Rotary meetings, hockey and curling leagues, as well as year-round basketball, pickleball, and fitness programs. As of Nov. 18, 2024, the property was appraised at $1.25 million based on comparable sales. Walker Area Community Center sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Minn. Case No. 25-50310) on May 2, 2025. In its petition, the Debtor reported total assets of $1,409,049 and total liabilities of $1,956,152. Judge William J. Fisher handles the case. The Debtor is represented by Steven R. Kinsella, Esq., at Fredrickson & Byron, P.A. WELLPATH HOLDINGS: Shannon Files Supplemental Rule 2019 Statement ----------------------------------------------------------------- The law firm of Shannon & Lee LLP ("S&L") filed a supplemental verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure to disclose that in the Chapter 11 case of Wellpath Holdings, Inc., and affiliates, the firm represents Parties in their capacities as creditors. Neither S&L nor its attorneys hold any disclosable economic interests (as that term is defined in Bankruptcy Rule 2019(a)(1)) in relation to the Debtors. The Parties' names and addresses, together with the nature of the claim are: 1. Jaclyn Mohrbacher c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 2. Erin Ellis c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 3. Jaime Johnston c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 4. Jazzmin Barboza c/o Yolanda Huang 528 Grand Avenu Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 5. Leanna Zamora c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 6. Domonique Swain c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 7. Dominique Jackson c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 8. Tikisha Upshaw c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 9. Frankie Porcher c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 10. Sydney Whalen c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 11. Dayna Alexander c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 12. Gabriela Defranco c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 13. Marcaysha Alexander c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 14. Andanna Ibe c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 15. Andrania Yancy c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 16. Sandra Griffin c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 17. Diamond Cooper c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 18. Mary Mapa c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 19. Rose Perez c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 20. Annette Kozlowsk c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 21. Denise Rohrbach c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 22. Alexis Wah c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 23. Kelsey Erwin c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 24. Shani Jones c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 25. Dawn Dedrick c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 26. Jamila Longmire c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 27. Natalie Garrido c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 28. Jazmine Tate c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 29. Monica Nunes c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 30. Martina Gomez c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 31. Christina Zepeda c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 32. Estate of Jesus Eric Magana c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 33. Daniel Gonzalez c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 34. Lawrence Gerrans c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 35. Cedric Henry c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 36. Michael Lockhart c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 37. Randy Harris c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 38. Eric Rivera c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 39. David Misch c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 40. Tikisha Upshaw c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 41. Donald Corsetti c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 42. Tiara Arnold c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 43. James Mallet c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 44. Darryl Geyer c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 45. Timothy Phillips c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 46. Rasheed Tucker c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 47. Eric Wayne c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 48. James Mallett c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 49. Rasheed Tucker c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 50. Darryl Geyer c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 51. Timothy Phillips c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 52. Tiara Arnold c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 53. Donald Corsetti c/o Yolanda Huang 528 Grand Avenue Oakland, CA 94610 * Tort resulting in personal injury or wrongful death 54. K.C. c/o T. Kennedy Helm, IV 644 40th Street, Suite 305 Oakland, CA 94609 * Tort resulting in personal injury or wrongful death 55. Terri Williams Park c/o T. Kennedy Helm, IV 644 40th Street, Suite 305 Oakland, CA 94609 * Tort resulting in personal injury or wrongful death 56. Daryl Leon Pugh, SR c/o T. Kennedy Helm, IV 644 40th Street, Suite 305 Oakland, CA 94609 * Tort resulting in personal injury or wrongful death 57. Sherri Reynolds c/o T. Kennedy Helm, IV 644 40th Street, Suite 305 Oakland, CA 94609 * Tort resulting in personal injury or wrongful death 58. Lynn Segebart c/o T. Kennedy Helm, IV 644 40th Street, Suite 305 Oakland, CA 94609 * Tort resulting in personal injury or wrongful death 59. Chue Doa Yang c/o T. Kennedy Helm, IV 644 40th Street, Suite 305 Oakland, CA 94609 * Tort resulting in personal injury or wrongful death 60. Mai Thao Yang c/o T. Kennedy Helm, IV 644 40th Street, Suite 305 Oakland, CA 94609 * Tort resulting in personal injury or wrongful death 61. Doug Fahrni c/o T. Kennedy Helm, IV 644 40th Street, Suite 305 Oakland, CA 94609 * Tort resulting in personal injury or wrongful death 62. Tiffany Fahrni c/o T. Kennedy Helm, IV 644 40th Street, Suite 305 Oakland, CA 94609 * Tort resulting in personal injury or wrongful death 63. R.R. c/o Sanjay S. Schmid 1388 Sutter Street, Suite 810 San Francisco, CA 94109 * Tort resulting in personal injury or wrongful death 64. A.L. c/o Sanjay S. Schmidt 1388 Sutter Street, Suite 810 San Francisco, CA 94109 * Tort resulting in personal injury or wrongful death 65. Gabriel Roberts c/o Sanjay S. Schmidt 1388 Sutter Street, Suite 810 San Francisco, CA 94109 * Tort resulting in personal injury or wrongful death 66. Teil Gallo Ramirez c/o Sanjay S. Schmidt 1388 Sutter Street, Suite 810 San Francisco, CA 94109 * Tort resulting in personal injury or wrongful death 67. Desiree Dionne c/o Sanjay S. Schmidt 1388 Sutter Street, Suite 810 San Francisco, CA 94109 * Tort resulting in personal injury or wrongful death 68. R.D., Jr. c/o Sanjay S. Schmidt 1388 Sutter Street, Suite 810 San Francisco, CA 94109 * Tort resulting in personal injury or wrongful death 69. Bonnee Young c/o Sanjay S. Schmidt 1388 Sutter Street, Suite 810 San Francisco, CA 94109 * Tort resulting in personal injury or wrongful death 70. J.S. c/o Sanjay S. Schmidt 1388 Sutter Street, Suite 810 San Francisco, CA 94109 * Tort resulting in personal injury or wrongful death 71. J.T. c/o Sanjay S. Schmidt 1388 Sutter Street, Suite 810 San Francisco, CA 94109 * Tort resulting in personal injury or wrongful death 72. Teresa Slaven c/o Sanjay S. Schmidt 1388 Sutter Street, Suite 810 San Francisco, CA 94109 * Tort resulting in personal injury or wrongful death 73. Robert Slaven c/o Sanjay S. Schmidt 1388 Sutter Street, Suite 810 San Francisco, CA 94109 * Tort resulting in personal injury or wrongful death 74. Chue Doa Yang c/o Sanjay S. Schmidt 1388 Sutter Street, Suite 810 San Francisco, CA 94109 * Tort resulting in personal injury or wrongful death 75. Mai Thao Yang c/o Sanjay S. Schmidt 1388 Sutter Street, Suite 810 San Francisco, CA 94109 * Tort resulting in personal injury or wrongful death 76. Maxine Johnson c/o James Cook Airport Corporate Centre 7677 Oakport Street, Suite 1120 Oakland, CA 94621 * Tort resulting in personal injury or wrongful death 77. C.M. c/o James Cook Airport Corporate Centre 7677 Oakport Street, Suite 1120 Oakland, CA 94621 * Tort resulting in personal injury or wrongful death 78. Laura Madrid c/o James Cook Airport Corporate Centre 7677 Oakport Street, Suite 1120 Oakland, CA 94621 * Tort resulting in personal injury or wrongful death 79. Michael Madrid c/o James Cook Airport Corporate Centre 7677 Oakport Street, Suite 1120 Oakland, CA 94621 * Tort resulting in personal injury or wrongful death 80. Barbara Doss c/o James Cook Airport Corporate Centre 7677 Oakport Street, Suite 1120 Oakland, CA 94621 * Tort resulting in personal injury or wrongful death 81. B.A. c/o James Cook Airport Corporate Centre 7677 Oakport Street, Suite 1120 Oakland, CA 94621 * Tort resulting in personal injury or wrongful death 82. J.L.J.A. c/o James Cook Airport Corporate Centre 7677 Oakport Street, Suite 1120 Oakland, CA 94621 * Tort resulting in personal injury or wrongful death 83. O.A. c/o James Cook Airport Corporate Centre 7677 Oakport Street, Suite 1120 Oakland, CA 94621 * Tort resulting in personal injury or wrongful death 84. Charles Ronald Anderson c/o Kennedy Helm 644 40th Street, Suite 305 Oakland, CA 94609 * Tort resulting in personal injury or wrongful death 85. Liza Pizarro c/o Katherine Rosenfeld Emery Celli Brinkerhoff Abady Ward & Maazel LLP 600 Fifth Avenue, 10th Floor New York, NY 10020 * Tort resulting in personal injury or wrongful death 86. Henrietta Smith c/o Wingo Smith Spears & Filipovits, LLC 315 W. Ponce de Leon Ave., STE 865 Decatur, GA 30030 * Tort resulting in personal injury or wrongful death 87. Nickeil Bethea-Smith c/o Wingo Smith Spears & Filipovits, LLC 315 W. Ponce de Leon Ave., STE 865 Decatur, GA 30030 * Tort resulting in personal injury or wrongful death 88. Esparza v. Wellpath et al. c/o Grace Jun 501 West Broadway, STE 1480 San Diego, CA 92101 * Tort resulting in personal injury or wrongful death The law firm can be reached at: SHANNON & LEE LLP R. J. Shannon, Esq. 2100 Travis Street, Suite 1525 Houston, Texas 77002 Tel. (713) 714-5770 Email: rshannon@shannonleellp.com About Wellpath Holdings Wellpath Holdings, Inc., formerly known as CCS-CMGC Holdings, Inc., is a provider of medical and mental healthcare in jails, prisons, and inpatient and residential treatment facilities. Wellpath Holdings and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 24-90533) on Nov. 11, 2024. Timothy Dragelin, chief restructuring officer and chief financial officer, signed the petitions. At the time of the filing, the Debtors reported $1 billion to $10 billion in assets and liabilities. Judge Alfredo R. Perez oversees the cases. The Debtors tapped Marcus A. Helt, Esq. at McDermott Will & Emery, LLP, as bankruptcy counsel; FTI Consulting, Inc., as financial advisor; and Lazard Freres & Co., LLC and MTS Partners, LP as investment banker. WEST CENTRO: Unsecured Creditors Will Get 15% of Claims in Plan --------------------------------------------------------------- West Centro, LLC, filed with the U.S. Bankruptcy Court for the Eastern District of Louisiana a Combined Plan and Disclosure Statement. The Debtor was founded in 2013. Its primary asset is a retail center and related redevelopment of an outdated and poorly designed 1970's shopping center with municipal addresses of 2100 Franklin Avenue, Gretna, Louisiana (hereinafter, referred to as the "Property"). The Property is located on two parcels of property and was purchased by the Debtor in July 2013 for approximately $1,200,000.00. The value of the Property is primarily derived from cash-flow and cap rate. Using a conservative cap rate of 8.5% in its 2022 appraisal, BOA valued the Property in excess of $3,200,000.00. That value as well as the Debtor's successful operation over many years is what led to BOA financing the Property and later renewing the loan in 2022. A proactive remediation plan to resolve prior roof and HVAC issues, which had led to water intrusion, is in progress. The Debtor has hired Nola Construction, LLC to perform all work requiring a licensed contractor. Roof repairs will be performed by Conforto Roofing, and Liquid Thinking, LLC will provide sheetrock, paint, and general carpentry services. Furthermore, the Debtor restructured its lease agreement to have all pass-through triple net ("NNN") fees, which protect creditors and ownership, for variable expenses outside their control pass directly through to tenant operators. The Plan contemplates payments to all Holders of Allowed Claims against the Debtor based upon the cash flow created through the business operations of the Debtor or, alternatively, Liquidation of the Debtor's assets. The Holders of Equity Interests will not receive any Distribution until all other Allowed Claims have been paid in accordance with the Plan. Class 5 consists of Unsecured Claims. Class 5 consists of the Allowed General Unsecured Claims in the approximate amount of $1,300,000.00. Each Holder of an Allowed General Unsecured Claim shall receive quarterly cash payments equal to its Pro Rata share of $195,000.00, to be paid over a period of eighty-four months. Payments shall commence on the first day of the fifteenth month after the Distribution Date. Class 5 will also receive fifty percent of the Litigation Funds, after payment of all Allowed Administrative Expense Claims, Priority Claims, Priority Tax Claims. Any distributions of Litigation Funds will not be applied towards the quarterly payment amounts. This Class will receive a distribution of 15% of their allowed claims. This Class is impaired. Class 6 consists of Equity Interests. Although the Holders of Existing Equity Interests shall retain those interests after Confirmation, no distributions may be made to the Holders of such Equity Interests by virtue of same unless the following conditions have been met: (a) all Unclassified Claims except for Priority Claims have been paid in full; and, (b) the Debtor is current on all payments to the Holders of Priority Claims and the Class 2, 3, 4 and 5 Claims as required by this Plan. Payments by Holders of Existing Equity Interests to fund repairs and renovations to the Property and provide infusions of capital will be deemed new value contributions by Equity. On and after the Effective Date, all Assets of the Debtor and its estate shall vest in the Reorganized Debtor free and clear of all Liens, encumbrances, and claims except for the Liens securing the Class 2, 3 and 4 Claims. On and after the Effective Date, the Reorganized Debtor may operate its business, may use, acquire and dispose of property, may retain, compensate and pay any professionals or advisors, and compromise or settle any causes of action, claims or interests without supervision of or approval by the Bankruptcy Court and free and clear of any restrictions of the Bankruptcy Code or the Bankruptcy Rules other than restrictions expressly imposed by the Plan and the Confirmation Order. All payments due on or after the Effective Date shall be made from the Debtor's cash on hand and from the future revenues derived from the Reorganized Debtor's operation of the apartment complex owned by the Debtor. JBIT a member of the Debtor, will guaranty $200,000.00 of obligations to BOA during the term of this Plan. The funds to guaranty payment will be a capital contribution from JBIT through Capital Advisors. A dedicated account has been established by Capital Advisors with a current balance in excess of $200,000.00. The Debtor will not be responsible for repayment of any funds provided by JBIT pursuant to this guaranty, nor will any property of the Debtor be used as collateral for the guaranty. A full-text copy of the Combined Plan and Disclosure Statement dated May 3, 2025 is available at https://urlcurt.com/u?l=orX3Jj from PacerMonitor.com at no charge. Attorneys for the Debtor: Patrick S. Garrity, Esq. Albert J. Derbes, IV, Esq. Derbes Law Firm, L.L.C. 3027 Ridgelake Drive Metairie, LA 70002 Tel: (504) 837-1230 Fax: (504) 832-0322 Email: pgarrity@derbeslaw.com About West Centro West Centro, LLC, is primarily engaged in renting and leasing real estate properties. It owns the real property located at 2100-2108 Franklin St., Gretna, La., valued at $2.4 million. West Centro filed Chapter 11 petition (Bankr. E.D. La. Case No. 24-11536) on Aug. 7, 2024, with total assets of $3,362,535 and total liabilities of $3,478,874. Judge Meredith S. Grabill oversees the case. The Debtor is represented by Patrick Garrity, Esq., at The Derbes Law Firm, LLC. WST INDUSTRIES: Claims to be Paid From Continued Operations ----------------------------------------------------------- WST Industries, LLC, filed with the U.S. Bankruptcy Court for the Eastern District of North Carolina a Disclosure Statement describing Plan of Reorganization dated May 2, 2025. The Debtor was formed on May 1, 2006 and started as a commercial construction business. In 2009, WST added a manufacturing business to supplement revenue. The Debtor's struggles arose in the 3rd quarter of 2023 when a management level employee on the construction side misquoted multiple projects out of the former Greenville, North Carolina, location which was shut down in the 2nd quarter of 2024. The manager was terminated and the Debtor tried to honor finishing the project but the costs continued to rise. This, combined with the nominal margins on the construction side, forced the Debtor to declare Chapter 11 in order to save its manufacturing business and the jobs of 20+ employees. The Plan calls for the payment to the Debtor's creditors through continued operations and the potential liquidation of certain personal property, which may have significant tax consequences to the Debtor and its members. The Debtor does not believe that Confirmation of the Plan will result in any significant adverse tax consequences to its creditors. Class 6 consists of General Unsecured Claims. This Class shall receive pro rata share of Minimum Unsecured Dividend of $275,000. General unsecured creditors shall also receive 75% of net proceeds of ERTC claim and funds from bankruptcy causes of action. This Class is impaired. The Debtor anticipates a continuation of operations by way of this proposed reorganization. The Debtor's primary source of income is through continued manufacturing business operations and the cash proceeds generated. As the Debtor winds down its construction business, it intends to sell excess personal property, primarily vehicles. A full-text copy of the Disclosure Statement dated May 2, 2025 is available at https://urlcurt.com/u?l=JtFZyO from PacerMonitor.com at no charge. Counsel to the Debtor: William H. Kroll, Esq. Everett Gaskins Hancock Tuttle Hash, LLP 220 Fayetteville Street, Suite 300 Raleigh, NC 27602 Tel: (919) 755-0025 Fax: (919) 755-0009 Email: bill@eghlaw.com About WST Industries WST Industries LLC specializes in providing custom metal parts and assemblies for industries such as automation, life sciences, pharmaceuticals, and automotive. The Company offers services like laser cutting, machining, welding, and metal reshaping, with capabilities for both prototype and mass production. WST Industries operates from a 31,000 sq. ft. facility equipped with advanced technology to meet diverse customer needs. WST Industries LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 25-01123) on March 28, 2025. In its petition, the Debtor reports total assets of $492,708 and total liabilities of $2,290,784. Honorable Bankruptcy Judge Pamela W. McAfee handles the case. The Debtor is represented by William Kroll, Esq. at EVERETT GASKINS HANCOCK TUTTLE HASH LLP. YOUNG MEN'S CHRISTIAN: Emerges from Chapter 11 Bankruptcy --------------------------------------------------------- Jonathan Shelley of Fox54 reports that the Heart of the Valley YMCA has reached a critical turning point in its financial recovery, receiving court approval for its reorganization plan aimed at restoring long-term stability while continuing to serve the greater Huntsville community. On May 12, 2025, U.S. Bankruptcy Judge Clifton R. Jessup, Jr. confirmed the organization's revised plan following a May 7. 2025 hearing in the Northern District of Alabama Bankruptcy Court. The approval comes nine months after the nonprofit filed for Chapter 11 bankruptcy protection. Central to the plan is a refinancing agreement with Redstone Federal Credit Union, the YMCA's primary creditor. The nonprofit will make a payment of more than $2 million—funded through the earlier sale of Camp Cha La Kee—to reduce its current debt before entering into new loan terms with Redstone, according to Fox54. As part of the refinancing, several YMCA-owned properties will be pledged as collateral, including the Madison branch at 130 Park Square Lane, the Huntsville location at 1000 Weatherly Road Southeast, and a third site referred to in court filings as the "Hazel Green Property," Fox54 reports The bankruptcy filing in August 2024 allowed the YMCA to continue operations while developing a viable long-term plan. The court ruled that the plan is "fair and equitable," offering the best outcome for creditors and stakeholders. Judge Jessup also noted that the proposal is unlikely to result in further liquidation or future financial reorganization, signaling a vote of confidence in the nonprofit's sustainability, the report relays. Despite financial challenges, the YMCA has remained operational throughout the process, continuing to offer fitness programs, youth activities, swim instruction, and community services. Recently, the organization announced plans to close its Downtown Express location on Church Street and is actively exploring a new location. The bankruptcy case will remain under court supervision until the reorganization plan is substantially implemented, according to report. About The Young Men's Christian Association The Young Men's Christian Association of Metropolitan Huntsville, Alabama is a non-profit organization that offers programs to support the needs of a growing and diverse communities including childcare, health & fitness, teen programs and community programs. YMCA filed Chapter 11 petition (Bankr. N.D. Ala. Case No, 24-81638) on August 23, 2024, with $10 million to $50 million in both assets and liabilities. Jeff Collen, interim chief executive officer of YMCA, signed the petition. Judge Clifton R Jessup Jr. presides over the case. Kevin D. Heard, Esq., at Heard, Ary & Dauro, LLC, is the Debtor's legal counsel. [] Researchers Link Bankruptcies to Worse Nursing Home Care ----------------------------------------------------------- U.S. healthcare organizations are filing for bankruptcy at record rates as they increasingly rely on risky debt, leading to increases in staff turnover and harm to patients -- particularly elderly ones living in nursing homes. $200 billion A new study by heath economist Adrienne Sabety indicates the residents of those bankrupt long-term care facilities are more likely to be hospitalized 30 days after having been admitted to the home, and are more likely to have been physically constrained and to have suffered from bedsores due to less experienced nurses and staff. "New workers are less familiar with the patients and facility, which adversely impacts patient outcomes," said Sabety. Sabety and her fellow researchers provide what they believe is the first empirical examination of healthcare provider bankruptcies and how these defaults impact patient care. They chose to concentrate on nursing homes because they are the most important part of senior living, which accounts for one-fourth of all healthcare bankruptcies in the United States. "We focused on the $200 billion nursing home industry for its size, heavy reliance on public financing through Medicare and Medicaid--and the vulnerability of its patients," said Sabety, an assistant professor of health policy and faculty fellow at the Stanford Institute for Economic Policy Research (SIEPR.) She added that nursing home regulators--the federal Centers for Medicare & Medicaid Services and corresponding state agencies--gather extensive data on the industry. This includes payroll records for every worker and health assessments for nearly every patient, providing them with a rich source of data. There are more than 15,000 skilled nursing facilities in the United States, employing some 1.4 million staff who serve more than 1.3 million residents each day. "Residents are highly vulnerable, older, and suffer from physical ailments and cognitive impairments," said Sabety, a faculty research fellow at the National Bureau of Economic Research, which published the study. "Quality is shockingly low: one in-three nursing homes patients on Medicare experience harm or death as a result of low-quality care." The other authors of the study are Samuel Antill and Jessica Bai of Harvard University and Ashvin Ghandi of UCLA. Bankruptcies Exacerbate Nursing Home Harms: The researchers noted that the total debt in the U.S. healthcare sector doubled between 2019 and 2024. "As their debts grow, many healthcare firms struggle to keep up with their debt obligations," they wrote. "As a result, Moody's rates 80% of debt issued by healthcare firms as speculative grade." Through several Freedom of Information Act (FOIA) requests, the researchers used three linked administrative datasets from the Centers for Medicare & Medicaid Services. They also used a randomized survey of current and former nursing home staff to confirm that bankruptcy filings increase voluntary departures of those staff, and that those replacement workers cause more harm to patients than their more seasoned predecessors. They found that if a patient receives care from a facility that recently filed for bankruptcy, their chances of being hospitalized increases by 1.44 percentage points. And these bankruptcies increase the use of physical restraints and bedsores by 77% and 14% of the mean, respectively. Implications for Regulators and Policymakers: The research team recommended that Medicare and other healthcare regulators reduce or eliminate subsidies for healthcare debt to make debt financing less appealing. "Our findings suggest that regulators should closely monitor all healthcare provider bankruptcies, not only liquidations and closures," Sabey said. "Regulators also have several means to reduce the frequency of bankruptcies, like cutting existing debt subsidies and excluding interest payments from consideration in determining reimbursement rates." In the extreme, she said, regulators could temporarily take control of bankrupt providers, like the FDIC does for failed banks. ********* 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. 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