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250528.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 28, 2025, Vol. 29, No. 147 Headlines 193 STREET REALTY: Seeks Chapter 11 Bankruptcy in New York 2 WEST 120TH REALTY: Seeks Chapter 11 Bankruptcy in New York 51 PARK PLACE: Voluntary Chapter 11 Case Summary 788 9TH COMMERCIAL: June 17 Public Sale Auction Set 96 WYTHE: Wins Summary Judgment Bid in Adversary Proceeding 98 THATFORD: Seeks Chapter 11 Bankruptcy in New York ADVANCE TRANSIT: Case Summary & 20 Largest Unsecured Creditors AFRO-AMERICAN COMMUNITY: Robert Gainer Named Subchapter V Trustee ALIGNED MEDICAL: Leona Mogavero Named Subchapter V Trustee AMERICAN AUTO: Moody's Affirms B3 CFR & Rates New 1st Lien Debt B3 AMPLIFYBIO LLC: Wins Interim OK to Obtain DIP Loan From Battelle AQUA METALS: Eric West Named Chief Financial Officer ARAS CORP: Monroe Capital Marks $335,000 Secured Loan at 62% Off ARCHDIOCESE OF NEW ORLEANS: Reaches Deal to Sell Christopher Homes AVALON GLOBOCARE: Gets Nasdaq Notice on Equity Shortfall in Q1 AVALON GLOBOCARE: Q1 Loss Widens to $2.48M on Merger Fees Surge BLUE APPLE: Unsecureds to Get $25,000 per Year for 3 Years BOY SCOUTS: G.J. Wins Bid to Deem Proof of Claim as Timely Filed BRIGHTMARK PLASTICS: SSG Served as Investment Banker in Asset Sale BULA DEVELOPMENTS: SBS, et al. Win Bid to Expunge Lis Pendens CAPTURE COLLECTIVE: Case Summary & Two Unsecured Creditors CARTOPIA II: Lender Seeks to Prohibit Cash Collateral Access CATHETER PRECISION: Raises $3M via Sale of Series B Preferred Stock CELSIUS NETWORK: Cloudflare Loses Bid to Dismiss Adversary Case CELSIUS NETWORK: Zuber Loses Bid to Quash Subpoena in Castel Suit CHANDON LTD: Dawn Maguire Named Subchapter V Trustee CIBUS INC: Holders Elect Board, OK 9M Share Issuance at 2025 AGM CINEMARK HOLDINGS: Barclays PLC Holds 5.98% Stake as of March 31 CLASSIC CONSTRUCTION: Case Summary & 20 Top Unsecured Creditors CONAIR HOLDINGS: Moody's Alters Outlook on 'Caa1' CFR to Stable CONTOUR BUCKINGHAM: Wells Fargo Wants Farbman Named as Receiver CREDIT ACCEPTANCE: Moody's Affirms 'Ba3' CFR, Outlook Stable DOTDASH MEREDITH: Moody's Affirms 'B2' CFR, Outlook Stable DOUGLAS HOLDINGS: Monroe Marks $309,000 Secured Loan at 73% Off DRIVEN HOLDINGS: Moody's Alters Outlook on 'B3' CFR to Positive E&J SHOE: Case Summary & Three Unsecured Creditors ECI INC: Seeks Chapter 11 Bankruptcy in Wisconsin ELETSON: Motion to Intervene in Lenova Arbitration Denied in Part EQUINE LUXURY: Court Agrees to Appoint Receiver EXCELL COMMUNICATIONS: Case Summary & 20 Top Unsecured Creditors FAIRFIELD SENTRY: Bank J. Safra Loses Bid to Dismiss Adversary Case FALL CREEK: Court Values Marine FC's Secured Claim at $3,794,314.89 FIRSTBASE.IO: Wins Summary Judgment Bid in Harbor Adversary Case FLUENT INC: Posts $8.3M Q1 Loss as Revenue Falls 16% to $55.2M GARVEY D JONASSAINT: BNY, et al. Win Bid for Automatic Stay Relief GC CHAMPION: Monroe Capital Marks $2MM Secured Loan at 32% Off GENEVER HOLDINGS: Summary Judgment Bid in AIG Suit Granted in Part GIRARD HOUSE: Unsecured Creditors to Get Nothing in Plan H&H COFFEE: Neumann Responds to Renewed Receivership Bid HERMES HIPPIE: Aventura Lending Seeks Appointment of Receiver HOOK ROAD: Case Summary & One Unsecured Creditor HOSPITALITY AT YORK: U.S. Trustee Unable to Appoint Committee INDEPENDENCE BUYER: Monroe Marks $1.4M Secured Loan at 94% Offf INDICOR LLC: Moody's Cuts Rating on Sec. Bank Credit Facility to B2 INH BUYER: Monroe Capital Marks $2-Mil. Secured Loan at 70% Off IQSTEL INC: Begins Trading on NASDAQ Capital Market Under IQST JACKSON HOSPITAL: Seeks to Extend Plan Exclusivity to August 2 JLM COUTURE: Seeks Approval for $700K Private Ch.11 Sale to Founder JOANN INC: To Close Remaining 440+ Stores Permanently on May 31 JW REALTY: Updates Unsecureds & Golden Leaves Claims Pay KL MOON: Monroe Capital Marks $827,000 Secured Loan at 42% Off KRISTIE BUMSTEAD: LPL Not Entitled to Post-Petition Client Fees LEMONS & OLIVES: Yann Geron Named Subchapter V Trustee LIBERTY INTERACTIVE: Moody's Cuts CFR to 'Caa1', Outlook Stable M.I.S. COMMODITIES: Files Emergency Bid to Use Cash Collateral MESEARCH MEDIA: Court Says Second Amended Chapter 11 Plan Confirmab MIRACLE RESTAURANT: Injunction to Facilitate Plan Properly Issued MTE HOLDINGS: 3rd Cir. Affirms in Part Ruling in Royalties Dispute MV RECEIVABLES: Monroe Capital Marks $8.1MM Secured Loan at 49% Off NAS LOGISTICS: Voluntary Chapter 11 Case Summary NATIONAL FENCE: Stephen Darr Named Subchapter V Trustee NATIONSBENEFITS LLC: Monroe Capital Marks $2.2M Loan at 60% Off OKLAHOMA FORGE: Court Approves Sale of Assets to FRG OLSON EQUIPMENT: Seeks Chapter 11 Bankruptcy in Wisconsin ONH AFC: JOSMIC Loses Bid to Stay Fraudulent Conveyance Suit PANDA ACQUISITION: Monroe Capital Marks $4.5M Loan at 16% Off PAWLUS DENTAL: Gets Interim OK to Use Cash Collateral Until June 5 PICCARD PETS: U.S. Trustee Unable to Appoint Committee PINEY POINT: Claims Will be Paid from Property Sale/Refinance PISHPOSH INC: Seeks Chapter 11 Bankruptcy in New Jersey PLANFUL INC: Monroe Marks $1.1 Million Secured Loan at 25% Off PROSPECT MEDICAL: Gets Approval to Cut Hospital Services PROVIDE GROUP II: Fitch Rates $212MM Ser. 2025A Revenue Bonds 'BB+' QVC GROUP: Stockholders OK'd All Key Proposals at Annual Meeting RECYCLED PLASTICS: Monroe Marks $284,000 Secured Loan at 67% Off RELEVATE HEALTH: Monroe Marks $316,000 Secured Loan at 33% Off RENSOL REALTY: Seeks Chapter 11 Bankruptcy in New York RESEARCH EDUCATION: Claims to be Paid From Future Income RITE AID: Closes Store in Central Pennsylvania RITE AID: Computershare Appointed to Creditors' Committee RIVAL COMMERCIAL: Lender Seeks to Prohibit Cash Collateral Access ROCK HOME: Glen Watson Named Subchapter V Trustee ROCKAWAY CONTRACTING: Seeks Subchapter V Bankruptcy in New York SEXTANT STAYS: Case Summary & 20 Largest Unsecured Creditors SHAW SERVICES: Seeks Subchapter V Bankruptcy in Mississippi SIBANYE-STILLWATER: Fitch Affirms 'BB' LongTerm IDR, Outlook Neg. SIGNIA LTD: Male Excel Wins Dismissal of Adversary Case SPORTS OPERATING: Monroe Capital Marks $2.3-Mil. Loan at 21% Off STARCO BRANDS: The Production Board Holds 9.5% Equity Stake STARCOMPLIANCE MIDCO: Monroe Marks $323,000 Secured Loan at 46% Off SUPERIOR INDUSTRIES: Moody's Cuts CFR to 'Caa3', Outlook Negative TELESAT CORP: Moody's Lowers CFR to Caa2, Outlook Remains Stable THASSOS INC: Case Summary & 20 Largest Unsecured Creditors THUNDER INTERNATIONAL: Gets Interim OK to Use Cash Collateral TIGERCONNECT INC: Monroe Marks $376,000 Secured Loan at 28% Off TUNGSTEN CAYCO: Fitch Alters Outlook on B- LongTerm IDR to Negative URBAN ONE: Reports $11.7M Net Loss; Q1 Revenue Down 11.7% V10 ENTERTAINMENT: Monroe Marks $458,000 Secured Loan at 84% Off VALUDOR PRODUCTS: Monroe Marks $548,000 Secured Loan at 73% Off VERRICA PHARMACEUTICALS: Adds 3.67M Shares Under 2018 Equity Plan VIEWBIX INC: MMCAP Reports 7.01% Stake as of March 31 VOYAGER DIGITAL: Fuller Adversary Case Survives Motion to Dismiss WELLPATH: Court Adopts Magistrate Judge's Report in Boyd Lawsuit WENDT COMMUNICATION: Unsecureds to Recover Not Less Than 15% WESTCHESTER COUNTY HEALTH: Moody's Cuts Rev. Bond Ratings to Caa1 WHISTLER PARENT: Monroe Marks $430,000 Secured Loan at 22% Off WHISTLER PARENT: Monroe Marks $847,000 Secured Loan at 39% Off WHITESTAR DISTRIBUTORS: Katharine Clark Named Subchapter V Trustee WILLIAMS LAND: Court Narrows Claims in Apex, et al. Lawsuit WOLF'S LAIR: Case Summary & Three Unsecured Creditors WOODHAVEN MEDICAL: Seeks Chapter 11 Bankruptcy in New York WORK CAT: Louisiana Int'l Wins Trailer Bridge Liens Dispute WT REPAIR: Files Emergency Bid to Use Cash Collateral WYNN RESORTS: Capital World Investors Holds 5.2% Equity Stake [] Andrew W. Cheng Rejoins Gibson Dunn's Restructuring Practice ********* 193 STREET REALTY: Seeks Chapter 11 Bankruptcy in New York ---------------------------------------------------------- On May 21, 2025, 193 Street Realty Co. 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 between $500 million and $1 billlion in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 193 Street Realty Co. LLC 193 Street Realty Co. LLC is a real estate investment and management company that owns and operates property at 671 West 193rd Street in New York. 193 Street Realty Co. LLCsought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11051) on May 21, 2025. In its petition, the Debtor reports estimated assets and liabilities between $500 million and $1 billion each. The Debtors are represented by Gary Holtzer, Esq. at Weil Gotshal & Manges LLP. 2 WEST 120TH REALTY: Seeks Chapter 11 Bankruptcy in New York ------------------------------------------------------------ On May 21, 2025, 2 West 120th Realty Co. 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 between $500 million and $1 billion in debt owed to 1,000 and 5,000 creditors. The petition states funds will be available to unsecured creditors. About 2 West 120th Realty Co. LLC 2 West 120th Realty Co. LLC is a real estate investment business and management company. 2 West 120th Realty Co. LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11052) on May 21, 2025. In its petition, the Debtor reports estimated assets and liabilities between $500 million and $1 billion each. The Debtors are represented by Gary Holtzer, Esq. at Weil Gotshal & Manges LLP. 51 PARK PLACE: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: 51 Park Place Owners LLC 325 Washington Avenue Brooklyn, NY 11205 Business Description: The Debtor is a single-asset real estate entity that owns the property at 51 Park Place in Brooklyn, New York. Chapter 11 Petition Date: April 4, 2025 Court: United States Bankruptcy Court Eastern District of New York Case No.: 25-41680 Judge: Hon. Nancy Hershey Lord Debtor's Counsel: Michael L. Previto, Esq. MICHAEL L. PREVITO ESQ. 150 Motor Parkway Hauppauge, NY 11788 Tel: 631-379-0837 E-mail: mchprev@aol.com Total Assets: $6,000,000 Total Liabilities: $5,700,000 The petition was signed by Lloyd Babb as owner or manager. The Debtor indicated in the petition that no known creditors hold unsecured claims. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/HDIAPRY/51_Park_Place_Owners_LLC__nyebke-25-41680__0012.0.pdf?mcid=tGE4TAMA 788 9TH COMMERCIAL: June 17 Public Sale Auction Set --------------------------------------------------- For default in payment of a debt and performance of obligations owed by 788 9th Commercial LLC ("Debtor") to SIG CRE 2023 Venture LLC ("secured party"), pursuant to Section 9-610 of the Uniform Commercial Code, at 3:30 p.m. (prevailing Eastern Time) on June 17, 2025,, simultaneously via Zoom and in person at the law offices of Reed Smith LLP, 599 Lexington Avenue, 22nd Floor, New York, New York 10022, Secured Party will sell at public auction to the highest qualified bidder for cash the Debtor's interest in the following collateral. The cooperative interests as allocated to 30 cooperative shares of capital stock of Amblunthorp Holding Inc. ("lessor") and an assignment of proprietary lease ("lease") by and between the lessor as landlord and the 788 9th Commercial LLC as tenant covering the commercial cooperative unit known as CU at the building located at 788 9th Avenue, New York, New York 10019, Block 1043, Lot 3 ("premises") and any and all replacements of, additions to, substitutions for or amendments of the lease and shares, together with, in each case, the proceeds thereof. All parties seeking to submit a bid at the sale must deliver a deposit in one of the following two ways (i) by way of a wire payment in immediately available funds at least two business days prior to the sale by delivering to Reed Smith LLC, as escrow agent, a wire in an amount equal to at least 10% of the successful bid amount, or (ii) by displaying to the auctioneer a bank, certified check, or money order in an amount equal to at least 10% of the successful bid amount. No cash will be accepted for any portion of the required deposit. All payments and final settlements by way of check or money order must be made payable to Reed Smith LLP. For further information regarding the sale, contact James Faller, Tel: 212-549-4658; Email: james.faller@reedsmith.com. 96 WYTHE: Wins Summary Judgment Bid in Adversary Proceeding ----------------------------------------------------------- Judge Sean H. Lane of the United States Bankruptcy Court for the Southern District of New York granted the plaintiff's motion for summary judgment in the adversary proceeding captioned as STEPHEN S. GRAY, not individually but solely in his capacity as Chapter 11 Trustee of the estate of 96 Wythe Acquisition, LLC, Plaintiff, vs. THE WILLIAMSBURG HOTEL BK, LLC, TOBY MOSKOVITS, MICHAEL LICHTENSTEIN and HERITAGE EQUITY PARTNERS, Defendants, Adv. Pro. No. 22-07048 (S.D.N.Y.). The dispute in this case is about the ownership of certain intellectual property relating to the Debtor's operation of The Williamsburg Hotel, a 10-story, 147-room independent hotel located at 96 Wythe Avenue, Brooklyn, NY. The Trustee moves for summary judgment: (i) declaring that this intellectual property is owned by the Debtor, and (ii) ordering that Toby Moskovits surrender for cancellation her registrations of the service marks for the intellectual property. The hotel opened to the public in or around January 2017 and has consistently operated under the name and service mark "The Williamsburg Hotel" since that time. The "Sleep With A Local" service mark was used to advertise and promote services offered at the hotel. Moskovits, alongside Defendant Michael Lichtenstein, is a joint owner of three entities: the Debtor; Defendant Williamsburg Hotel BK, LLC; and Defendant Heritage Equity Partners. In the latter half of January 2023, the Court approved the sale of The Williamsburg Hotel and certain related assets by the Trustee to Quadrum Development Corp. Moskovits states that she personally owns both "The Williamsburg Hotel" and "Sleep With A Local" service marks, either by operation of common law or, in the alternative, through registration. The Court concludes the Debtor has satisfied the general presumption that the marks were conveyed in the sale of its business. The Court finds Moskovits has no basis to claim ownership of the marks. The marks passed with the sale of the Debtor's business to Quadrum. A copy of the Court's decision is available at https://urlcurt.com/u?l=dTMcwY from PacerMonitor.com. Special IP Counsel for Plaintiff Stephen S. Gray, the Chapter 11 Trustee of 96 Wythe Acquisition, LLC: Richard S. Mandel, Esq. Joel K. Schmidt, Esq. Jeremy A. Berman, Esq. COWAN, LIEBOWITZ & LATMAN, P.C. 114 West 47th Street New York, NY 10036 E-mail: rsm@cll.com jks@cll.com jab@cll.com Counsel for Plaintiff Stephen S. Gray, the Chapter 11 Trustee of 96 Wythe Acquisition, LLC: Albert Togut, Esq. Frank A. Oswald, Esq. Neil Berger, Esq. TOGUT, SEGAL & SEGAL LLP One Penn Plaza New York, NY 10119 E-mail: altogut@TeamTogut.com frankoswald@teamtogut.com Counsel for Defendants The Williamsburg Hotel BK, LLC, Toby Moskovits, Michael Lichtenstein, and Heritage Equity Partners: Fern Flomenhaft, Esq. FERN FLOMENHAFT PLLC 26 Broadway, 26th Floor New York, NY 10004 About 96 Wythe Acquisition 96 Wythe Acquisition, LLC, operates the Williamsburg Hotel, a hotel located at 96 Wythe Ave., Brooklyn, N.Y. 96 Wythe Acquisition sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-22108) on Feb. 23, 2021, disclosing $79,990,206 in liabilities. CRO David Goldwasser signed the petition. Judge Sean H. Lane oversees the case. The Debtor tapped Backenroth Frankel & Krinsky, LLP and Mayer Brown, LLP as bankruptcy counsels; Fern Flomenhaft, PLLC as insurance counsel; and B. Riley Advisory Services as litigation support consultant. Getzler Henrich & Associates, LLC and Hilco Real Estate, LLC serve as the Debtor's financial advisors. Stephen Gray was appointed as Chapter 11 trustee. The Trustee tapped Togut, Segal & Segal, LLP; Fragomen Del Rey Bernsen & Loewy, LLP; and Bernstein Redo & Savitsky PC as bankruptcy counsel, special counsel, and special liquor license counsel, respectively. Verdolino & Lowey PC is the trustee's tax accountant. 98 THATFORD: Seeks Chapter 11 Bankruptcy in New York ---------------------------------------------------- On May 22, 2025, 98 Thatford 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 98 Thatford LLC 98 Thatford LLC is a limited liability company registered in New York, operating out of Woodside, Queens and established in June 2016. 98 Thatford LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-42479) on May 22, 2025. In its petition, the Debtor reports estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Elizabeth S. Stong handles the case. The Debtors are represented by Roberto Pagan-Lopez, Esq. at PAGAN LOPEZ LAW. ADVANCE TRANSIT: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Advance Transit Mix, Inc. 613 W. Oak Lane Glenolden, PA 19036 Business Description: Advance Transit Mix, Inc. supplies ready- mixed concrete for construction projects in Glenolden, Pennsylvania. The Company operates a fleet of trucks for intrastate transport and serves clients across the region. Chapter 11 Petition Date: May 27, 2025 Court: United States Bankruptcy Court Eastern District of Pennsylvania Case No.: 25-12082 Judge: Hon. Patricia M Mayer Debtor's Counsel: Albert A. Ciardi, III, Esq. CIARDI CIARDI AND ASTIN 1905 Spruce Street Philadelphia, PA 19103 Tel: (215) 557-3550 Email: aciardi@ciardilaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Peter Barsz as court-appointed receiver. A copy of the Debtor's list of 20 largest unsecured creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/IIBSMWY/Advance_Transit_Mix_Inc__paebke-25-12082__0002.0.pdf?mcid=tGE4TAMA The full petition is freely available via PacerMonitor at: https://www.pacermonitor.com/view/IEQFSWA/Advance_Transit_Mix_Inc__paebke-25-12082__0001.0.pdf?mcid=tGE4TAMA AFRO-AMERICAN COMMUNITY: Robert Gainer Named Subchapter V Trustee ----------------------------------------------------------------- The Acting U.S. Trustee for Region 12 appointed Robert Gainer as Subchapter V trustee for Afro-American Community Broadcasting, Inc. Mr. Gainer will be paid an hourly fee of $305 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Gainer declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: CUTLER LAW FIRM, P.C. Robert C. Gainer 1307 50th Street West Des Moines, Iowa 50266 Telephone: 515-223-6600 Facsimile: 515-223-6787 rgainer@cutlerfirm.com About Afro-American Community Afro-American Community Broadcasting, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Iowa Case No. 25-00500) on May 6, 2025, listing between $500,001 and $1 million in assets and between $100,001 and $500,000 in liabilities. Judge Thad J. Collins presides over the case. ALIGNED MEDICAL: Leona Mogavero Named Subchapter V Trustee ---------------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed Leona Mogavero, Esq., at Zarwin Baum as Subchapter V trustee for Aligned Medical Group, P.C. Ms. Mogavero will be paid an hourly fee of $425 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Mogavero declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Leona Mogavero, Esq. Zarwin Baum One Commerce Square 2005 Market Street, 16th Floor Philadelphia, PA 19103 Phone: (267) 765-9630 Email: lmogavero@zarwin.com About Aligned Medical Group Aligned Medical Group, P.C. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Pa. Case No. 25-11769) on May 5, 2025, listing up to $500,000 in assets and up to $1 million in liabilities. Joel Stutzman, D.C., president of Aligned Medical Group, signed the petition. Judge Patricia M. Mayer oversees the case. David B. Smith, Esq., at Smith Kane Holman, LLC, represents the Debtor as legal counsel. AMERICAN AUTO: Moody's Affirms B3 CFR & Rates New 1st Lien Debt B3 ------------------------------------------------------------------ Moody's Ratings affirmed the ratings of American Auto Auction Group, LLC including the B3 corporate family rating and B3-PD probability of default rating. Moody's also affirmed the ratings on the existing senior secured first lien term loan and senior secured revolving credit facility at B2 and the senior secured second lien term loan at Caa2. Moody's assigned a B3 rating to the company's proposed backed senior secured first lien term loan and backed senior secured first lien revolving credit facility. The stable outlook is maintained. Proceeds from the new senior secured first lien term loan will be used to refinance the existing first lien term loan and second lien term loan. Moody's will withdraw the ratings for the existing senior secured first lien revolver, first lien term loan and second lien term loan when the refinancing is complete. The B3 rating on the new credit facility reflects the elimination of the second lien debt. The first lien term loan and revolver represent the preponderance of debt in the pro forma capital structure. RATINGS RATIONALE The ratings reflect American Auto Auction Group's leading position as a provider of business-to-business used car auctions and its established relationships with dealers and financial institutions. The company has a strong EBITA margin which is projected to remain close to 20% and Moody's expects the company to generate modest free cash flow. The ratings also reflect the company's limited scale and high leverage with debt-to-EBITDA forecast to be approximately 7.0x at the end of 2025. Moody's assumes the company will continue to grow largely via acquisitions and to a lesser extent organically. Acquisitions are expected to be largely funded with available cash before new debt is raised. The stable outlook reflects Moody's expectations of moderate revenue growth, a modest improvement in profit margin and positive free cash flow. The outlook also reflects Moody's expectations for leverage to decline. Moody's expects American Auto Auction Group to have adequate liquidity considering its attractive free cash flow, which will benefit from lower interest expense with the new capital structure and an undrawn $100 million revolver expiring in 2030. There will be no near term debt maturities until the revolver expires in 2030. The new term loan will mature in 2032. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if debt-to-EBITDA was sustained under 6.0x with free cash flow to debt of at least 3%. The ratings could also be upgraded if EBITA margin was maintained above 20% while maintaining good liquidity. The ratings could be downgraded if there is a lack of progress in reducing debt-to-EBITDA to under 7.5x or if EBITA margin decreased to below 17.5%. Moody's could also downgrade the ratings if liquidity weakened or free cash flow was lower than expected. The ratings could also be downgraded if revenue was pressured from increased competition, disruption from online trends or other factors. Marketing terms for the new credit facilities (final terms may differ materially) include the following: Incremental pari passu debt capacity up to the sum of the greater of (i) $171.28 million and (ii) an amount equal to 100% of Consolidated EBITDA, plus unlimited amounts subject to a 4.75x First Lien Net Leverage Ratio and compliance with the Financial Covenant (whether or not in effect). There is an inside maturity sublimit up to 25% of closing date EBITDA and 25% of consolidated EBITDA, plus any incremental equivalent debt, permitted ratio debt, and the Incurred Acquisition Debt Basket or Incurred Acquisition Debt. A "blocker" provision restricts the designation of a restricted subsidiary as unrestricted if such subsidiary owns or exclusively licenses material intellectual property. The credit agreement is expected to provide some limitations on up-tiering transactions, requiring affected lender consent for amendments that subordinate the debt or liens unless such lenders can ratably participate in such priming debt. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. Headquartered in Carmel, Indiana, American Auto Auction Group, LLC is a leading business-to-business used car auction company that facilitates transactions between buyers and sellers of used vehicles at physical and digital marketplaces. The company is majority-owned by funds managed by Brightstar Capital Partners. Revenue for the twelve months ended March 31, 2025 was $583 million. AMPLIFYBIO LLC: Wins Interim OK to Obtain DIP Loan From Battelle ---------------------------------------------------------------- Amplifybio, LLC and affiliates received interim approval from the U.S. Bankruptcy Court for the Southern District of Ohio, Eastern Division, to obtain debtor-in-possession (DIP) financing to get through bankruptcy. The interim order penned by Judge Mina Nami Khorrami authorized the Debtors to borrow up to $2.5 million from Battelle Memorial Institute, subject to the approved budget and to entry of the final order. The order also approved the Debtors' interim use of cash collateral to pay the expenses set forth in the budget pending the final hearing. Absent entry of the final order by the court, the Debtors will no longer be authorized to use cash collateral at the expiration of the interim period without the lender's prior written approval. As protection, Battelle was granted replacement liens on all of the Debtors' assets, including assets acquired after the petition date. The lender will also be granted an allowed superpriority administrative expense claim against the Debtors' estates as further protection. The DIP facility is due and payable on the earliest to occur of: (a) the maturity date (August 31, 2025); (b) the effective date or substantial consummation of a reorganization plan that has been confirmed by an order of the bankruptcy court; (c) the closing of an approved Section 363 sale of all or substantially all of the Debtors' assets including their real property; (d) the date of the conversion of the Debtors' Chapter 11 cases to cases under Chapter 7 of the Bankruptcy Code; and (e) the date of the dismissal of the cases. The court will hold a final hearing on June 26. Objections are due by June 19. The Debtors, having faced prolonged financial distress, ceased operations in early April 2025. Recognizing that an orderly liquidation would best preserve and maximize the value of their remaining assets, they filed for Chapter 11 bankruptcy. Battelle supports this process and has agreed to provide essential post-petition financing. Specifically, Battelle will supply a senior secured superpriority debtor-in-possession loan of up to $2.5 million and allow the Debtors to use its cash collateral. This immediate access to liquidity is crucial to fund administrative costs, pay key vendors, and support a fair and transparent asset sale process designed to benefit all stakeholders. As of the bankruptcy filing date, the Debtors owed Battelle approximately $28 million under a pre-bankruptcy loan initially issued by Hercules Capital. This debt is secured by a broad range of collateral, including real estate, intellectual property, and equipment. The Debtors also have additional unsecured obligations to Battelle and its subsidiary, Battelle Services Company Inc., totaling nearly $5 million. About AmplifyBio LLC AmplifyBio, LLC is a preclinical contract research and manufacturing organization based in Ohio that offers integrated services for therapeutic development, including R&D, preclinical testing, and scalable manufacturing for advanced therapies such as cell and gene therapies, mRNA, and non-viral gene editing platforms. Formed as a 2021 spinout from Battelle Memorial Institute, the Company has expanded through acquisitions and facility investments, including a 350,000-square-foot cGMP manufacturing site in New Albany. Its wholly owned subsidiary, ADOC SSF, LLC, is fully integrated into its operations and participates in scientific, operational, and financial activities. AmplifyBio sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ohio Case No. 25-52140) on May 16, 2025, listing between $100 million and $500 million in assets and between $50 million and $100 million in liabilities. Kasey Rosado, chief restructuring officer of $50,000,001 to $100 million, signed the petition. Judge Mina Nami Khorrami oversees the case. The Debtor tapped McDonald Hopkins, LLC as bankruptcy counsel; Hutchison, PLLC as co-counsel; and Epiq Corporate Restructuring, LLC as notice, claims and balloting agent. AQUA METALS: Eric West Named Chief Financial Officer ---------------------------------------------------- Aqua Metals, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the board of directors appointed Eric West to serve as Chief Financial Officer. Mr. West assumed the duties as Chief Financial Officer effective as of May 19, 2025. Mr. West was previously employed by Aqua Metals in various finance and accounting positions from 2019 through November 2024, most recently as Vice President of Finance. Mr. West began his career at Grant Thornton, LLP. He received an Master of Accountancy from the University of Nevada, Reno and is a licensed CPA. In connection with Mr. West's appointment, the Company entered into an employment agreement with Mr. West. Pursuant to the employment agreement, the Company have agreed to compensate Mr. West at the annual rate of $300,000. Mr. West will be eligible to receive short-term and long-term incentive bonuses of up to 75% and 125% of his base salary, respectively, based on performance criteria approved by the compensation committee of board of directors. Mr. West's short-term performance bonuses will be payable in either cash or restricted stock units, or RSUs, as determined by the compensation committee of the board, and his long-term performance bonuses shall be payable in RSUs. The employment agreement entitles Mr. West to reasonable and customary health insurance and other benefits, at our expense, and a severance payment in the event of the Company's termination of his employment without cause or his resignation for good reason, as such terms are defined in the employment agreement. The amount of the severance payment will be 12 months annual salary at the rate then in effect on the date of termination, plus a pro-rata percentage of his short-term and long-term performance bonuses for the year in which the termination occurred, assuming the complete satisfaction of all performance conditions. Mr. West's employment agreement provides for intellectual property assignment and confidentiality provisions that are customary in its industry. In connection with his appointment, we agreed to grant Mr. West RSUs to acquire 100,000 shares of the Company's common stock, with the RSUs vesting over a three-year period from the date of grant. The RSUs will be subject to the terms and conditions of our 2019 Stock Incentive Plan. About Aqua Metals Aqua Metals, Inc. -- www.aquametals.com -- is reinventing metals recycling with its patented AquaRefining technology. The Company is pioneering a sustainable recycling solution for materials strategic to energy storage and electric vehicle manufacturing supply chains. AquaRefining is a low-emissions, closed-loop recycling technology that replaces polluting furnaces and hazardous chemicals with electricity-powered electroplating to recover valuable metals and materials from spent batteries with higher purity, lower emissions, and minimal waste. Aqua Metals is based in Reno, NV and operates the first sustainable lithium battery recycling facility at the Company's Innovation Center in the Tahoe-Reno Industrial Center. In its report dated March 31, 2025, the Company's auditor Forvis Mazars, LLP, issued a "going concern" qualification citing that the Company has incurred substantial operating losses and negative cash flows from operations since inception that raise substantial doubt about its ability to continue as a going concern. As of Dec. 31, 2024, Aqua Metals had $26.37 million in total assets, $10.12 million in total liabilities, and $16.24 million in total stockholders' equity. ARAS CORP: Monroe Capital Marks $335,000 Secured Loan at 62% Off ---------------------------------------------------------------- Monroe Capital Corporation has marked its $335,000 loan extended to Aras Corporation to market at $128,000 or 38% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to Aras Corporation. The loan accrues interest at a rate of 10.55% per annum. The loan matures on April 13, 2029. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Monroe Capital Corporation Theodore L. Koenig 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About Aras Corporation Aras Corporation develops and delivers enterprise open source solutions. ARCHDIOCESE OF NEW ORLEANS: Reaches Deal to Sell Christopher Homes ------------------------------------------------------------------ Erin Lowrey of WDSU News reports that the Archdiocese of New Orleans has agreed to sell several independent living apartment complexes managed by Christopher Homes, as part of its ongoing bankruptcy proceedings related to clergy sex abuse claims. According to the report, the agreement coincides with the archdiocese's proposed $180 million settlement for abuse survivors. Attorney Mark Mintz, representing the archdiocese, called the sale "critical" to advancing the bankruptcy resolution. Although parts of the agreement remain confidential, the sale could help fund payments to victims. Specific details, including the buyer and sale price, have not been disclosed. Christopher Homes manages nine senior housing communities, including Annunciation Inn, Christopher Inn, and St. Bernard Manor. In February 2025, Archbishop Gregory Aymond announced that the archdiocese was in discussions to formally separate from several affiliated entities, including Christopher Homes, according to WDSU News. Attorneys for the archdiocese said that, if the settlement proceeds as planned, survivors could begin receiving payments by January 2026. However, attorneys representing survivors expressed doubts about that projected timeline, the report states. Sources told WDSU that an offer for Christopher Homes was submitted earlier this year. The property is considered one of the archdiocese's most valuable assets, but it is unclear whether the current agreement involves the same bidder. The impact of the sale on current residents and those on waiting lists remains unknown. WDSU reached out to the archdiocese for comment but had not received a response at the time of publication. About Roman Catholic Church of The Archdiocese Of New Orleans The Roman Catholic Church of the Archdiocese of New Orleans -- https://www.nolacatholic.org/ -- is a non-profit religious corporation incorporated under the laws of the State of Louisiana. Created as a diocese in 1793, and established as an archdiocese in 1850, the Archdiocese of New Orleans has educated hundreds of thousands in its schools, provided religious services to its churches and provided charitable assistance to individuals in need,including those affected by hurricanes, floods, natural disasters, war, civil unrest, plagues, epidemics, and illness. Currently, the archdiocese's geographic footprint occupies over 4,200 square miles in southeast Louisiana and includes eight civil parishes: Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist, St. Tammany, and Washington. The Roman Catholic Church for the Archdiocese of New Orleans sought Chapter 11 protection (Bankr. E.D. La. Case No. 20-10846) on May 1, 2020. The archdiocese was estimated to have $100 million to $500 million in assets and liabilities as of the bankruptcy filing. Judge Meredith S. Grabill oversees the case. Jones Walker, LLP and Blank Rome, LLP, serve as the archdiocese's bankruptcy counsel and special counsel, respectively. Donlin, Recano& Company, Inc., is the claims agent. The U.S. Trustee for Region 5 appointed an official committee of unsecured creditors on May 20, 2020. The committee is represented by the law firms of PachulskiStangZiehl& Jones, LLP and Locke Lord, LLP. Berkeley Research Group, LLC is the committee's financial advisor. AVALON GLOBOCARE: Gets Nasdaq Notice on Equity Shortfall in Q1 -------------------------------------------------------------- Avalon GloboCare Corp. detailed in a May 22 SEC filing that the Company received a notification from the Listing Qualifications Department of the Nasdaq Stock Market LLC stating that the Company was not in compliance with the minimum stockholders' equity requirement, after reporting negative equity of $3.9 million as of March 31, 2025. The letter also noted that Avalon failed to meet alternative listing standards related to market value and net income from continuing operations. The filing further stated that the notice does not immediately affect the listing status of the Company's common stock, which will remain listed and traded on the Nasdaq Capital Market, provided the Company continues to meet other ongoing listing requirements. The Company has 45 calendar days from May 22, 2025, or through Monday, July 7, 2025, to submit to Nasdaq a plan to regain compliance with Listing Rule 5550(b)(1). If Nasdaq accepts the Company's plan, Nasdaq may grant an extension of up to 180 calendar days from May 22, 2025, or through Tuesday, Nov. 18, 2025, to regain compliance. If Nasdaq does not accept the Company's plan, the Company will have the right to appeal such decision to a Nasdaq hearings panel. Avalon Globocare plans to submit a compliance plan to Nasdaq within the required timeframe in an effort to address its deficiency under Listing Rule 5550(b)(1), which pertains to minimum stockholders' equity requirements. There is no guarantee that Nasdaq will approve the Company's compliance plan or that the Company will successfully meet Listing Rule 5550(b)(1) or other Nasdaq requirements going forward. About Avalon Globocare Avalon Globocare Corp., based in Freehold, New Jersey, develops and markets precision diagnostic consumer products and cellular therapy intellectual property. The Company currently sells the KetoAir breathalyzer, a U.S. FDA-registered Class I medical device, and plans to expand its diagnostic applications. It also owns and manages commercial real estate at its headquarters. In an audit report dated March 31, 2025, M&K CPAS, PLLC issued a "going concern" qualification citing that the Company has yet to achieve profitable operations, has negative cash flows from operating activities, and is dependent upon future issuances of equity or other financings to fund ongoing operations, all of which raises substantial doubt about its ability to continue as a going concern. Avalon Globocare incurred net losses amounting to approximately $7.9 million and $16.7 million for the years ended Dec. 31, 2024 and 2023, respectively. As of Dec. 31, 2024, the Company had an accumulated deficit of approximately $87.7 million. AVALON GLOBOCARE: Q1 Loss Widens to $2.48M on Merger Fees Surge --------------------------------------------------------------- Avalon Globocare Corp. reported a net loss of $2.48 million for the three months ended March 31, 2025, compared with a net loss of $1.37 million during the same period a year earlier, a $1.11 million increase, or 81.5%, according to its Form 10-Q filing with the Securities and Exchange Commission. The increase in net loss was primarily driven by a $1.25 million surge in professional fees tied to a potential merger with YOOV Group Holding Ltd. Expenses related to consulting, legal services, and fairness opinion charges accounted for nearly all of the rise in general and administrative costs during the quarter. The Company expects that its professional fees will decrease in the near future. For the three months ended March 31, 2025, Avalon Globocare generated real property rental revenue of $349,800, compared to real property rental income of $314,588 during the same period last year, reflecting an increase of $35,212, or 11.2%. This result was primarily driven by a higher number of tenants occupying the building during the period. The Company anticipates that real property rental revenue will remain relatively stable with minimal growth in the near term. As of March 31, 2025, the Company had $10.61 million in total assets, $14.50 million in total liabilities, and a total deficit of $3.89 million. The Company had working capital deficit of approximately $11.66 million at March 31, 2025. At March 31, 2025 and Dec. 31, 2024, the Company had a cash balance of approximately $1.37 million and $2.85 million, respectively. Avalon Globocare, with a limited operating history, stated that its ongoing growth relies on generating rental income from its New Jersey real estate, selling Keto Air products, and obtaining additional financing to fulfill future obligations and cover liabilities arising from regular business activities. Furthermore, the Company's current cash balance is not expected to support operating expenses for the next twelve months from the date of this report. These factors, the Company said, raise substantial doubt about its ability to continue as a going concern. With no other significant sources of working capital, the Company said it must raise substantial additional funds to support its operations and meet its obligations. Its continued operations depend on securing new financing. The Company warned that even if the necessary capital is raised, unexpected expenses or liquidity demands may require further funding. If the Company issues additional equity or debt securities, it could dilute existing shareholders or give preferential terms to new investors. According to the Company, failure to obtain additional capital may limit growth, disrupt operations, or potentially lead to a shutdown, though the Company does not currently view ceasing operations as a likely occurrence. The complete text of the Form 10-Q is available for free at: https://www.sec.gov/Archives/edgar/data/1630212/000121390025042738/ea0241363-10q_avalon.htm About Avalon Globocare Avalon Globocare Corp., based in Freehold, New Jersey, develops and markets precision diagnostic consumer products and cellular therapy intellectual property. The Company currently sells the KetoAir breathalyzer, a U.S. FDA-registered Class I medical device, and plans to expand its diagnostic applications. It also owns and manages commercial real estate at its headquarters. BLUE APPLE: Unsecureds to Get $25,000 per Year for 3 Years ---------------------------------------------------------- Blue Apple Books, LLC and Harriet Ziefert, Inc., filed with the U.S. Bankruptcy Court for the District of New Jersey a Combined Plan of Reorganization and Disclosure Statement for Small Business dated May 6, 2025. The Debtors are children's book publishing companies. Blue Apple is a New Jersey limited liability company. Harriet Ziefert is a New Jersey S Corporation. Harriet Ziefert, Inc owns 88% and Pomum Liber, LLC owns 12% of Blue Apple Books, LLC. The have taken steps to reduce overhead and increase revenue. Debtors have remaindered all inventory of printed books and closed their warehouse account, reducing storage and fulfillment expenses by approximately $20,000 per year. Debtors also terminated their one full-time employee, reducing payroll and related expenses by approximately $93,000 per year. On the revenue side, the reorganization and sale of Debtors' primary customer, Epic Creations, under Chapter 11 should result in the resumption of payments from that customer. The Debtors project excess cash flow of $25,000 per year over the next three years ($75,000 total). Convenience Class claimants are those owed $6,000 or less. The aggregate amount of Convenience Class claims is $30,973.12. The dividend to Convenience Class claimants will be a be a 25% lump sum payment made on the effective date of this Plan. The Debtors will pay unsecured creditors, excluding Convenience Class claimants, pro rata quarterly distributions of $25,000 per year for three years. There are no secured claims. There are no priority tax claims. Debtors do not intend to pursue avoidance actions, because Debtors believe there are none, and pursuing them would not be cost-effective. In addition, Debtors do not believe that pursuing vendors or other third parties with whom the Debtors do business makes sense from a business perspective. Equity holders are not impaired, because they will retain their equity interests. The largest unsecured claim is Pomum Liber, LLC. It has filed claims for $822,822.04. The claims of Pomum Liber, LLC are separately classed because it is an equity security holder and its claims are disputed. Debtors are reviewing the claims and hope to negotiate an amicable resolution. Pomum Liber, LLC will receive its pro rata distribution of the annual excess cash flow. All administrative claims will be paid in full on the effective date of the Plan. However, claims incurred in the ordinary course of business will be paid in the ordinary course. Payments pursuant to the Plan will be paid from the reorganized Debtor's cash flow. On Confirmation of the Plan, all property of the Debtor, tangible and intangible, including, without limitation, licenses, furniture, fixtures and equipment, will revert, free and clear of all Claims and Equitable Interests except as provided in the Plan, to the Debtor. The Debtor expects to have sufficient cash on hand to make the payments required on the Effective Date. $25,000/year will be paid pro rata to all claimants in combined Classes 2 and 3, to be funded from Blue Apple Books, LLC's excess cash flow. A full-text copy of the Combined Plan and Disclosure Statement dated May 6, 2025 is available at https://urlcurt.com/u?l=RQTMEp from PacerMonitor.com at no charge. Counsel to the Debtor: Kenneth A. Rosen, Esq. Ken Rosen Advisors PC 80 Central Park West 3B New York, NY 10023 Telephone: (973) 493-4955 Email: ken@kenrosenadvisors.com About Blue Apple Books Blue Apple Books, LLC filed Chapter 11 petition (Bankr. D.N.J. Case No. 25-11469) on February 13, 2025, listing between $100,001 and $500,000 in assets and between $500,001 and $1 million in liabilities. Judge Stacey L. Meisel presides over the case. Kenneth Alan Rosen, Esq., at Ken Rosen Advisors, PC, is the Debtor's legal counsel. BOY SCOUTS: G.J. Wins Bid to Deem Proof of Claim as Timely Filed ---------------------------------------------------------------- Judge Laurie Selber Silverstein of the United States Bankruptcy Court for the District of Delaware granted G.J.'s motion to deem claims identified as late by the the BSA Settlement Trust as timely filed in the bankruptcy case of Boy Scouts of America and Delaware BSA, LLC. Boy Scouts of America filed its bankruptcy petition on Feb. 18, 2020. The Bar Date for filing proofs of claim was Nov. 16, 2020. The Order confirming the Boy Scouts' Plan was entered on Sept. 8, 2022. G.J. filed his Proof of Claim between the Bar Date and the entry of the Confirmation Order, in October 2021. In his Proof of Claim, G.J. alleges that he was abused by his Scout leader in the 1970s and provides details of that abuse. G.J. asserts that he filed his claim late because he did not know that he was abused until after the Bar Date. Specifically, G.J. states that he had repressed his memories of the abuse but recovered them after the Bar Date. He then contacted counsel and worked with counsel to promptly file his Proof of Claim, which he signed under penalty of perjury. G.J. contends that his failure to timely file a proof of claim due to his repressed memories constitutes excusable neglect and he seeks relief under Bankruptcy Rules 3003(c) and 9006(b)(1) and Pioneer. Trustee argues that G.J. is the holder of a Future Abuse Claim as that term is defined in the Plan. Based upon that, she argues that G.J.'s only path to compensation is if he meets the eligibility requirements for Future Abuse Claims in Article IV.C of the Trust Distribution Procedures. In other words, Trustee contends that G.J. may not seek relief under Pioneer. In the alternative, Trustee argues G.J. has failed to meet his burden of establishing excusable neglect. In this case, G.J. took steps to assert his rights -- he filed his Proof of Claim. The question is whether the Court should grant G.J.'s request where he did not take the further step of filing the Motion until after Confirmation. That is an excusable neglect question. In Pioneer, the Supreme Court articulated four non-exclusive factors to consider when evaluating claims of excusable neglect: (1) the danger of prejudice to the debtor, (2) the length of delay and its potential impact on judicial proceedings, (3) the reason for the delay, including whether it was within the reasonable control of the movant, and (4) whether the movant acted in good faith. Trustee asserts that she is prejudiced by the possibility that Future Abuse Claimants could improperly circumvent the specific framework set up for potential Future Abuse Claims in the Plan and TDP. According to the Court, if any such prejudice exists, it is caused by the Plan,. The Court finds Trustee has not presented any opposing argument regarding length of delay. Consistent with my prior decisions on similar motions Judge Silverstein finds that the delay, while substantial, has little, if any, impact given the facts of this case. The reason for delay in this case is simple: G.J. claims to have repressed traumatic memories. Upon recovering his memories he obtained counsel and filed his Proof of Claim with the claims agent. Trustee asserts that G.J. has not provided any evidence of his repressed memory, but that is not correct. G.J.'s statement in his Proof of Claim, made under penalty of perjury and attached to his Motion, is evidence. According to Judge Silverstein, "Although it may be less evidence than the Trustee would prefer, it is the only evidence presented to me. In the absence of any contrary evidence and for this analysis only, the scales tip in favor of G.J." Trustee also asserts that good faith weighs against G.J. Trustee faults him for not providing information about the extent of his repressed memory or any detail regarding when he became aware that he may have a claim. On the evidence presented, G.J. is an abuse survivor who repressed his traumatic memories. Upon regaining his memories, he obtained counsel and submitted a claim against Boy Scouts before Confirmation. Nothing suggests G.J. acted in anything other than good faith, the Court holds. A copy of the Court's decision is available at http://urlcurt.com/u?l=qIl81N About Boy Scouts of America The Boy Scouts of America -- https://www.scouting.org/ -- is a federally chartered non-profit corporation under title 36 of the United States Code. Founded in 1910 and chartered by an act of Congress in 1916, the BSA's mission is to train youth in responsible citizenship, character development, and self-reliance through participation in a wide range of outdoor activities, educational programs, and, at older age levels, career-oriented programs in partnership with community organizations. Its national headquarters is located in Irving, Texas. The Boy Scouts of America and affiliate Delaware BSA, LLC, sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on Feb. 18, 2020, to deal with sexual abuse claims. Boy Scouts of America was estimated to have $1 billion to $10 billion in assets and at least $500 million in liabilities as of the bankruptcy filing. The Debtors have tapped Sidley Austin LLP as their bankruptcy counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel, and Alvarez & Marsal North America, LLC, as financial advisor. Omni Agent Solutions is the claims agent. The U.S. Trustee for Region 3 appointed a tort claimants' committee and an unsecured creditors' committee on March 5, 2020. The tort claimants' committee is represented by Pachulski Stang Ziehl & Jones, LLP, while the unsecured creditors' committee is represented by Kramer Levin Naftalis & Frankel, LLP. The Debtors obtained confirmation of their Third Modified Fifth Amended Chapter 11 Plan of Reorganization (with Technical Modifications) on September 8, 2022. The Order was affirmed on March 28, 2023. The Plan was declared effective on April 19, 2023. The Hon. Barbara J. House (Ret.) has been appointed as trustee of the BSA Settlement Trust. BRIGHTMARK PLASTICS: SSG Served as Investment Banker in Asset Sale ------------------------------------------------------------------ SSG Capital Advisors, LLC served as the investment banker to Brightmark Plastics Renewal LLC and certain affiliates in the sale of substantially all assets to Brightmark Plastics Ashley HoldCo LLC. The sale was effectuated through a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the District of Delaware. The transaction closed in May 2025. Brightmark Indiana owned and operated the Ashley Circularity Center, an advanced pyrolysis polymer conversion facility that transforms hard-to-recycle plastics into pyrolysis oil, which can be refined into new, recycled plastics. In 2019, Brightmark Indiana secured debt financing through the issuance of Indiana municipal bonds, along with a significant equity contribution from its parent company, Brightmark Parent, to build the facility. Although the facility achieved mechanical completion, proven production, and sales to major petrochemical companies, it faced ongoing operational challenges which caused extremely low utilization rates. To reach full-scale production and financial targets, the plant required an additional investment to support ramp-up costs and critical facility enhancements. However, the Company was unable to secure the necessary funding given its substantial secured debt load and Brightmark Indiana elected to file for protection under Chapter 11 of the U.S. Bankruptcy Code on March 16, 2025. Immediately following the Chapter 11 filing, SSG launched an expedited post-petition marketing process that targeted a broad universe of potential strategic and financial buyers. The process generated significant interest and several qualified bids after a compressed 50-day marketing period. Leveraging its deep expertise in virtual auction execution, SSG created a dynamic and competitive environment that facilitated 25 rounds of bidding and drove a 90% increase over the opening bid. While the auction resulted in the secured lender's credit bid being deemed the highest bid, the going-concern cash bid submitted by Brightmark Parent was ultimately approved as the winning bid at the sale hearing. After a full day of testimony, argument, and consideration of competing interests, the Court determined that Brightmark Parent's bid provided superior value through cash consideration, the assumption of liabilities, preservation of jobs, and continued plant operations. Recognizing the practical limitations posed by the secured lender's ~$180 million credit bid rights, the roles of Potter Anderson and SSG were critical in building a robust evidentiary record that enabled the Court to weigh "highest" versus "best" value and ultimately approve the transaction that preserved operations and maximized recovery to all stakeholders. Other professionals who worked on the transaction include: * Jeremy W. Ryan, Brett M. Haywood, R. Stephen McNeill, Michael W. Whittaker, Katelin A. Morales, James R. Risener III, Andrew C. Ehrmann, Ciara E. Sprance and Ethan H. Sulik of Potter Anderson & Corroon LLP, counsel to Brightmark Plastics Renewal LLC; * Craig R. Jalbert of Verdolino & Lowey, P.C., Chief Restructuring Officer of Brightmark Plastics Renewal LLC; * Timothy J. Bernlohr of TJB Management Consulting, LLC, Independent Manager to Brightmark Plastics Renewal LLC; * Andrew I. Silfen, Beth M. Brownstein, Eric Roman, Mark A. Angelov, Tal M. Unrad and James E. Britton of ArentFox Schiff LLP, co-counsel to UMB Bank, N.A. (Indenture Trustee to the bondholders); * Matthew P. Ward of Womble Bond Dickinson (US) LLP, co-counsel to UMB Bank, N.A.; * Andrew Scruton, Kenneth M. Stern, William Ng, Adam Saltzman and Elizabeth Volk of FTI Consulting, Inc., financial advisor to UMB Bank, N.A.; * David A. Stockton, Paul M. Rosenblatt and Catherine E. Zhu of Kilpatrick Townsend & Stockton LLP, co-counsel to Brightmark Plastics Ashley HoldCo LLC; and * Mark L. Desgrosseilliers of Chipman Brown Cicero & Cole, LLP, co-counsel to Brightmark Plastics Ashley HoldCo LLC. About Brightmark Plastics Renewal Brightmark Plastics Renewal LLC utilize proprietary processes and licensed technology to convert hard-to-recycle plastic waste into valuable chemical feedstocks that can be used to make new plastics. This innovative approach helps reduce plastic waste by repurposing hydrocarbons that would otherwise end up in landfills, contributing to a more sustainable environment. Brightmark Plastics Renewal and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10472) on March 16, 2025. In the petitions signed by Craig R. Jalbert, chief restructuring officer, Brightmark Plastics Renewal disclosed up to $500 million in both assets and liabilities. Judge Laurie Selber Silverstein oversees the case. The Debtors tapped Potter Anderson & Corroon, LLP as bankruptcy counsel, SSG Capital Advisors, LLC as investment banker, and Verdolino & Lowey, PC as restructuring advisor. Omni Agent Solutions, Inc. is the claims, noticing and solicitation agent. BULA DEVELOPMENTS: SBS, et al. Win Bid to Expunge Lis Pendens ------------------------------------------------------------- Judge Christopher Klein of the United States Bankruptcy Court for the Eastern District of California granted the motion filed by SBS Trust Deed Network, Black Horse Capital Inc. and Fine Capital Investments to expunge Lis Pendens in the adversary proceeding captioned as NATASHA MORA, CESAR MORA, FAIZAL AWADAN, AND SHAINAZ AWADAN, Plaintiffs, v. SBS TRUST DEED NETWORK, BLACK HORSE CAPITAL INC., FINE CAPITAL, DANIEL BENSHIMON, TODD BERNSTEIN AS TRUSTEE OF TB TRUST DATED MAY 8, 1997, KAREN ALWEIL, AND LOVE GMC HOLDINGS, LLC, Defendants, Adv. Pro. 2025-02008-C (E.D. Cal.). The Notice of Pendency of Action (Lis Pendens) ("NOPA") was recorded with the San Diego County Recorder on February 28, 2025, and on March 10, 2025 was filed and served by Plaintiff Natasha Mora in the U.S. Bankruptcy Court, Eastern District of California, in Adversary Proceeding No. 2025-02008. The NOPA asserts that an action has been commenced and is pending in the U.S. Bankruptcy Court for the Eastern District of California that affects title to real property in San Diego County, described as Lot 86 of Muirlands Crest Unit No. 2, in the City of San Diego, State of California, According to Map Thereof No. 3345, Filed in the office of the County Recorder of San Diego County on December 27, 1955, Assessor's Parcel No. 352-512-03-00, commonly known as 6389 Castejon Drive, La Jolla, CA 92037. The claimants are the four Plaintiffs in Adversary Proceeding No. 2025-02008, Natasha Mora, Cesar Mora, Faizal Awadan, and Shainaz Awadan. The Defendants contend the NOPA should be expunged because the Plaintiffs have no standing to assert claims made on behalf of the bankruptcy estate of Bula Developments, Inc., that there is no subject-matter jurisdiction, and, incorporate their Motion to Dismiss Complaint in support of expungement. The Court finds the NOPA does not comply with Sec. 405.21, which requires that a NOPA, if not signed by an attorney of record (there is so such attorney in this case), must be approved by a judge of the court in which the real property claim is pending. The undersigned judge of the court in which the action is pending did not approve the NOPA. The Court also finds the probable validity is nil. The subject Adversary Proceeding was dismissed by order entered May 1, 2025, granting Defendants' motion. In the now-dismissed action in this Court, the Plaintiffs were making an illegitimate bad-faith collateral attack on a final judgment of the state court of competent jurisdiction and, also in bad faith, were attempting to hijack the rights of the bankruptcy trustee in the chapter 11 case of Bula Developments, Inc. In sum, the claimants have not established by preponderance of evidence the probable validity of their real property claim, the Court concludes. A copy of the Court's decision is available at https://urlcurt.com/u?l=tEDjom from PacerMonitor.com. About Bula Developments Bula Developments, Inc. sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Calif. Case No. 23-24619) on Dec. 26, 2023, listing $10 million to $50 million in assets and $1 million to $10 million in liabilities. Gabriel E. Liberman, Esq. at the Law Offices of Gabriel Liberman, APC represents the Debtor as counsel. CAPTURE COLLECTIVE: Case Summary & Two Unsecured Creditors ---------------------------------------------------------- Debtor: Capture Collective, Inc. 4923 Dierker Rd Columbus OH 43220 Business Description: Capture develops MiRAD, a high-throughput biodosimetry diagnostic test based on microRNA biomarkers to assess individual radiation exposure. The Company employs physiological, biochemical, and molecular techniques to support rapid and accurate biodosimetry in mass casualty situations. Its team includes experienced scientists and radiation experts dedicated to advancing emergency preparedness through innovative diagnostics. Chapter 11 Petition Date: May 27, 2025 Court: United States Bankruptcy Court Southern District of Ohio Case No.: 25-52291 Judge: Hon. John E Hoffman Jr. Debtor's Counsel: Manuel D. Cardona, Esq. DICKINSON WRIGHT, PLLC 180 E. Broad Street, Suite 3400 Columbus OH 43215-3707 Tel: 614-591-5468 E-mail: mcardona@dickinsonwright.com Total Assets: $3,470,581 Total Liabilities: $836,316 The petition was signed by Scott Barnes as CEO and president. A full-text copy of the petition, which includes a list of the Debtor's two unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/MA37UAA/Capture_Collective_Inc__ohsbke-25-52291__0001.0.pdf?mcid=tGE4TAMA CARTOPIA II: Lender Seeks to Prohibit Cash Collateral Access ------------------------------------------------------------ Today's Bank asked the U.S. Bankruptcy Court for the Western District of Arkansas, Fayetteville Division, to prohibit Cartopia II, LLC from using cash collateral. Cartopia II, a Texas LLC operating a vehicle leasing business associated with Car Solutions 4 U, LLC in Rogers, Arkansas, has allegedly continued collecting lease payments totaling approximately $320,000 to $400,000, despite halting most business operations in early 2025. These lease payments constitute cash collateral secured by various loan agreements between the Debtor and Today's Bank, and the Debtor has neither remitted the proceeds nor provided adequate protection for the bank's interests in the rapidly depreciating vehicle assets. The bank holds perfected security interests in nine separate sets of collateral, each linked to a distinct promissory note and secured loan agreement, all of which are in default. These notes range in principal from around $40,000 to over $5.8 million and are secured by motor vehicles and associated lease agreements. The bank's security interests are perfected via lien notations on vehicle titles and a single UCC Financing Statement filed with the Texas Secretary of State. In every case, the Debtor has failed to make scheduled payments since early 2025 and has retained lease payment proceeds, violating the loan terms and defaulting on all nine notes. Additionally, some notes include assignments of rents and leases on the Debtor's property at 1325 W. Walnut Street, Rogers, Arkansas. Today's Bank argued that under 11 U.S.C. Section 363, the Debtor is prohibited from using, selling, or leasing cash collateral without either the bank's consent or court authorization—neither of which has occurred. Since the bank does not consent to such use and the Debtor has failed to provide any adequate protection or segregate and account for the collateral, as required by section 363, court intervention is necessary. The bank emphasized that its collateral—mainly vehicles—is losing value daily due to depreciation and lack of proper maintenance, which poses a serious risk to its secured interests. Today's Bank argued that the Debtor has ceased meaningful business operations, which undermines any argument for the necessity of using cash collateral and raises concerns about the Debtor's intent to delay creditor recovery. About Cartopia II LLC Cartopia II, LLC is an automotive equipment rental and leasing company based in Rogers, Ark. Cartopia II LLCsought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ark. Case No. 25-70802) on May 9, 2025. In its petition, the Debtor reported estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. Judge Bianca M. Rucker handles the case. The Debtor is represented by Stanley V. Bond, Esq., at Bond Law Office. CATHETER PRECISION: Raises $3M via Sale of Series B Preferred Stock ------------------------------------------------------------------- Catheter Precision, 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 three investors pursuant to which it sold an aggregate of 1.5 million shares ($1.5 million stated value) of its newly designated Series B Convertible Preferred Stock and also issued an additional 1.5 million shares ($1.5 million stated value) of its Series B Convertible Preferred Stock as consideration to one of the investors in exchange for existing senior secured Convertible Promissory Notes of QHSLab, Inc. (OTCQB--USAQ). A copy of the Securities Purchase Agreement is available at https://tinyurl.com/2xfv7efr. An aggregate of up to 8,574,000 shares of common stock have been reserved for issuance pursuant to conversion of the Series B Convertible Preferred Stock, with each share of Series B Convertible Preferred Stock potentially converting into approximately 2,858 shares of common stock. The Company also issued Series L warrants to the investors to purchase up to 4,285,716 shares of Company common stock, in the aggregate, which amount was determined based on the amount of their cash investment. The investors are not affiliated with the Company. The names of the investors and the amounts purchased are: * C/M Capital Master Fund, LP 600 shares (Series B Convertible Preferred Stock) 1,714,286 warrants (Series L Warrants) * WVP Emerging Manager Onshore Fund, LLC – C/M Capital Series 400 shares (Series B Convertible Preferred Stock) 1,142,858 warrants (Series L Warrants) * Mercer Street Global Opportunity Fund, LLC 2,000 shares (Series B Convertible Preferred Stock) 1,428,572 warrants (Series L Warrants) The Series L Warrants will not be exercisable unless and until the stockholders of the Company approve the exercise in accordance with Section 713 of the NYSE American Listed Company Manual. The Series B Convertible Preferred Stock will not be convertible unless and until the stockholders of the Company approve the conversion in accordance with Section 713 of the NYSE American Listed Company Manual; provided, however, that the Series B Convertible Preferred Stock will be allowed to convert into up to 2,202,357 shares of common stock (which is 19.99% of the Company's currently outstanding common stock) prior to stockholder approval being obtained to the extent that the NYSE American approves such shares for listing. The Company intends to seek stockholder approval at its Annual Meeting of Stockholders to be held on July 25, 2025. The Series B Convertible Preferred Stock has a fixed conversion price of $0.35 per share of common stock, or approximately 2,858 shares of common stock per $1,000 of stated value, does not have conversion price reset provisions or voting rights, except as to certain specified matters, or pay a dividend. The Series L warrants have a 5 ½ year term from the date of stockholder approval, are exercisable at $0.50 per share and are callable by the Company should the trailing 20-day volume weighted average price of our common stock exceed $1.50. The Series L Warrants can be exercised cashlessly in certain circumstances. Subject to limited exceptions, holders of shares of Series B Convertible Preferred Stock and Series L Warrants do not have the right to convert any portion of their Preferred Stock or exercise their Warrants if the holder, together with its affiliates, would beneficially own in excess of 4.99% (or up to 9.99% at the election of the holder) of the number of shares of the Company's common stock outstanding immediately after giving effect to its conversion or exercise. Holders of Series B Convertible Preferred Stock and Series L Warrants are entitled to receive dividends on shares of Series B Convertible Preferred Stock and Series L Warrants equal to, on an as-if-converted to /exercised to acquire-common-stock basis, and in the same form as, dividends actually paid on shares of the common stock. Except as otherwise required by law, the Series B Convertible Preferred Stock does not have voting rights. However, as long as any shares of Series B Convertible Preferred Stock are outstanding, the Company may not, without the affirmative vote of the holders of a majority of the then outstanding shares of the Series B Convertible Preferred Stock: (a) alter or change adversely the powers, preferences or rights given to the Series B Convertible Preferred Stock, (b) alter or amend the Certificate of Designation for the Series B Convertible Preferred Stock, (c) amend its certificate of incorporation or other charter documents in any manner that adversely affects any rights of the holders of Series B Convertible Preferred Stock, (d) increase the number of authorized shares of Series B Convertible Preferred Stock, or (e) enter into any agreement with respect to any of the foregoing. The Series B Convertible Preferred Stock does not have a preference upon any liquidation, dissolution or winding-up of the Company. The holders of Series B Convertible Preferred Stock and Series L Warrants shall be entitled to receive out of the assets, whether capital or surplus, of the Company the same amount that a holder of common stock would receive as if the Series B Convertible Preferred Stock were fully converted or the Series L Warrants were fully exercised (disregarding for such purposes any conversion or exercise limitations), which amounts will be paid pari passu with all holders of our common stock. The Certificate of Designation of Preferences, Rights and Limitations of the Series B Convertible Preferred Stock was filed with the Secretary of State of Delaware on May 9, 2025, and a copy is available at https://tinyurl.com/u6yyc4vc. The form of Series L Warrants is available at https://tinyurl.com/2kdpn5d2 The QHSLab Notes were acquired from Mercer Street Global Opportunity Fund, LLC in two tranches pursuant to the Securities Purchase Agreement and an Assignment Agreement dated May 12, 2025, a copy of which is available at https://tinyurl.com/ykx2dxzf * The first tranche (the 2021 Note) Original Issue Discount Secured Convertible Promissory Note which was originally issued effective August 10, 2021 has a maturity date of August 10, 2022, and interest rate of 5%, and currently has a default interest rate of 18%, based on information provided to us, and is convertible into shares of QHSLab common stock at the rate of 20 cents per share for portions thereof and a rate of 2.5 cents per share for the remainder. * The second tranche (the 2022 Note), Original Issue Discount Secured Convertible Promissory Note which was originally issued effective July 19, 2022 has a maturity date of July 19, 2023, and interest rate of 5% and currently has a default interest rate of 18%, based on information provided to us, and is convertible into shares of QHSLab common stock at the rate of 20 cents per share. "We believe that the approximate aggregate principal amount, plus all accrued but unpaid, interest, fees and other amounts, owed by QHSLab under both Notes is equal to approximately $1.6 million; however, both Notes are currently in default, there can be no assurance that they will be paid in full or at all, and their valuation is uncertain. Although convertible into QHSLab common stock, the Notes are subject to a 4.99% beneficial ownership limitation." Copies of the Notes are filed available at https://tinyurl.com/2rw3ta6c and https://tinyurl.com/35h5zny5, respectively, hereto. Pursuant to a Registration Rights Agreement dated May 12, 2025, a copy of which is available at https://tinyurl.com/5c63rc5y, the Company has agreed to register the shares of common stock underlying the Series B Convertible Preferred and Series L Warrants for resale under the Securities Act of 1933, as amended. About Catheter Precision Inc. Headquartered in the U.S., Catheter Precision, Inc. is a medical device company focused on improving the treatment of cardiac arrhythmias. The Company, which was reincorporated as Ra Medical Systems, Inc. in Delaware in 2018 and changed its name to Catheter Precision, Inc. on August 17, 2023, develops technology for electrophysiology procedures through collaborations with physicians and continuous product advancements. As of Dec. 31, 2024, the Company had $27.8 million in total assets, $16 million in total liabilities, and a total stockholders' equity of $11.8 million. East Brunswick, New Jersey-based WithumSmith+Brown, PC., the Company's auditor since 2023, issued a "going concern" qualification in its report dated March 28, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has incurred recurring losses from operations and negative cash flows from operations and expects to continue to incur operating losses that raise substantial doubt about its ability to continue as a going concern. CELSIUS NETWORK: Cloudflare Loses Bid to Dismiss Adversary Case --------------------------------------------------------------- Chief Judge Martin Glenn of the United States District Court for the Southern District of New York denied Cloudflare, Inc.'s motion to dismiss all claims asserted against it in the adversary proceeding filed by Mohsin Meghji, in his capacity as litigation administrator of the estates of Celsius Network LLC and its debtor affiliates. The case is captioned as MOHSIN Y. MEGHJI, as Representative for the Post-Effective Date Debtors, Plaintiff, v. CHRISTOPHER SPADAFORA and CLOUDFLARE, INC., Defendants, Adv. Pro. No. 24-03981 (Bankr. S.D.N.Y.). The Complaint asserts two causes of actions against Defendant Cloudflare, Inc.: (i) negligence and (ii) gross negligence, both arising from an alleged failure to maintain adequate cybersecurity protections related to the issuance and management of API keys for the BadgerDAO platform. Celsius asserts that Cloudflare's failure to exercise the degree of care required by industry standards and by a reasonably prudent person under similar circumstances constitutes negligence and caused Celsius to lose more than $50 million in assets stored on the BadgerDAO platform. By failing to remedy the known vulnerability in its systems, Cloudflare created an unreasonable risk of harm to its users, including BadgerDAO, and in turn, to BadgerDAO's users, including Celsius. Cloudflare's failure to act was therefore grossly negligent. Cloudflare's Motion to Dismiss Cloudflare argues that Celsius fails to state both a negligence claim and a gross negligence claim. Cloudflare argues that it owes no legal duty to Celsius, as there was no direct relationship, contract, or special connection between them. This absence of relationship, Cloudflare alleges, is fatal to the negligence claim. Cloudflare claims Celsius failed to allege either form of special relationship as Cloudflare had no contacts or dealings either with the criminal hackers or with Celsius. Cloudflare further contends that Celsius' gross negligence claim fails for the same reasons as its ordinary negligence claim, and additionally lacks the heightened culpability required under New York law. Celsius, however, argues that Cloudflare owed Celsius a duty of care because of a special relationship formed through Cloudflare's role in securing access to the BadgerDAO platform. Celsius asserts that it has adequately pleaded proximate cause since Cloudflare's actions breach a clearly established industry standard and there were no intervening causes to Cloudflare's breach. For the gross negligence claim, the plaintiff claims Cloudflare acted with gross negligence by showing a reckless disregard for the safety of its users. Cloudflare allegedly ignored repeated warnings about a security flaw and failed to implement safeguards in a timely manner. In this case, Celsius alleges that Cloudflare undertook responsibility for securing access to API keys for the BadgerDAO platform and for warning users of known vulnerabilities. Cloudflare's failure to address or disclose the flaw could create a foreseeable risk of harm to Celsius who used BadgerDAO platform to store substantial digital assets. Accordingly, Celsius has plausibly alleged that Cloudflare owed it a duty of care, the Court finds. The Court also finds Celsius has sufficiently alleged that it suffered damages as a proximate result of Cloudflare's alleged negligence. Specifically, Celsius claims that due to Cloudflare's failure to implement adequate verification protocols and to warn of a known vulnerability, a hacker was able to exploit an unverified API key, gain unauthorized access to the BadgerDAO platform, and execute fraudulent fund transfers. As a result, Celsius allegedly lost over $50 million in digital assets stored on the platform. At the pleading stage, these allegations are adequate to plausibly support the element of damages, the Court concludes. Accordingly, Celsius has plausibly alleged that Cloudflare's negligence was a proximate cause of its injury. Thus, Cloudflare's motion to dismiss the negligence claim is denied. In this case, Celsius alleges that Cloudflare, a leading cybersecurity service provider, was repeatedly warned about a critical vulnerability in its API key system that permitted unauthorized access to platforms like BadgerDAO, yet it failed to take corrective action or notify users -- including Celsius -- for an extended period. This alleged failure occurred in the context of heightened risk, where Cloudflare knew or should have known that the compromised API keys could grant access to platforms securing millions in digital assets. Taken together, these facts plausibly support an inference of reckless disregard rather than mere carelessness, and supporting denial of the motion to dismiss the gross negligence claim at this stage, the Court holds. Accordingly, the Cloudflare's motion to dismiss the gross negligence claim is denied. A copy of the Court's decision is available at https://urlcurt.com/u?l=1IjN2x from PacerMonitor.com. Attorneys for Defendant Cloudflare, Inc.: Matthew D. Ingber, Esq. Niketa K. Patel, Esq. Joaquin M. C de Baca, Esq. David Yolkut, Esq. MAYER BROWN LLP 1221 Avenue of the Americas New York, NY 10020 E-mail: mingber@mayerbrown.com npatel@mayerbrown.com jcdebaca@mayerbrown.com Attorneys for Representative of Post-Effective Date Debtors: Joshua D. Weedman, Esq. Samuel P. Hershey, Esq. Renza Demoulin, Esq. WHITE & CASE LLP 1221 Avenue of the Americas New York, NY 10020 E-mail: jweedman@whitecase.com sam.hershey@whitecase.com renza.demoulin@whitecase.com About Celsius Network Celsius Network LLC -- http://www.celsius.network/-- is a financial services company that generates revenue through cryptocurrency trading, lending, and borrowing, as well as by engaging in proprietary trading. Celsius helps over a million customers worldwide to find the path towards financial independence through a compounding yield service and instant low-cost loans accessible via a web and mobile app. Celsius has a blockchain-based fee-free platform where membership provides access to curated financial services that are not available through traditional financial institutions. The Celsius Wallet claims to be one of the only online crypto wallets designed to allow members to use coins as collateral to get a loan in dollars, and in the future, to lend their crypto to earn interest on deposited coins (when they're lent out). Crypto lenders such as Celsius boomed during the COVID-19 pandemic, drawing depositors with high interest rates and easy access to loans rarely offered by traditional banks. But the lenders' business model came under scrutiny after a sharp sell-off in the crypto market spurred by the collapse of major tokens terraUSD and luna in May 2022. New Jersey-based Celsius froze withdrawals in June 2022, citing "extreme" market conditions, cutting off access to savings for individual investors and sending tremors through the crypto market. The list of major crypto firms that have filed for bankruptcy protection in 2022 now includes Celsius Network, Three Arrows Capital and Voyager Digital. Celsius Network, LLC and its subsidiaries sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10964) on July 14, 2022. In the petition filed by CEO Alex Mashinsky, the Debtors estimated assets and liabilities between $1 billion and $10 billion. The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis International, LLP as bankruptcy counsels; Fischer (FBC & Co.) as special counsel; Centerview Partners, LLC as investment banker; and Alvarez & Marsal North America, LLC as financial advisor. Stretto is the claims agent and administrative advisor. On July 27, 2022, the U.S. Trustee appointed an official committee of unsecured creditors. The committee tapped White & Case, LLP as its bankruptcy counsel; Elementus Inc. as its blockchain forensics advisor; M3 Advisory Partners, LP as its financial advisor; and Perella Weinberg Partners, LP as its investment banker. Shoba Pillay, Esq., is the examiner appointed in the Debtors' Chapter 11 cases. Jenner & Block, LLP and Huron Consulting Services, LLC, serve as the examiner's legal counsel and financial advisor, respectively. * * * On November 9, 2023, the Bankruptcy Court entered the Findings of Fact, Conclusions of Law, and Order Confirming the Modified Joint Chapter 11 Plan of Celsius Network LLC and Its Debtor Affiliates. The Effective Date of the Plan occurred January 31, 2024. CELSIUS NETWORK: Zuber Loses Bid to Quash Subpoena in Castel Suit ----------------------------------------------------------------- Chief Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York denied Zuber Lawler LLP's motion to quash subpoena in the adversary proceeding captioned as MOHSIN Y. MEGHJI, as Representative for the Post-Effective Date Debtors, Plaintiff, v. ANTOINE CASTEL. et al., Defendants, Adv. Pro. No. 24-04004 (S.D.N.Y.). The motion of Moshin Y. Meghi, the Litigation Administrator of Celsius Network LLC, to enforce subpoena is granted in part. The Motions relate to a subpoena which was served by the Litigation Administrator upon Zuber Lawler on March 25, 2025, pursuant to this Court's March 12, 2025 Order Permitting Expedited Discovery under Federal Rule of Bankruptcy Procedure 7026. Debtor Celsius Network Limited is a private limited company incorporated under the laws of England and Wales. In late 2019 or early 2020, Celsius began to consider additional investment strategies designed to generate revenue growth, including "staking" and activities involving decentralized finance. Ultimately, CNL entered into an agreement in principle with Jason Stone, a self-described entrepreneur in the staking space, to serve as the CEO of a new CNL subsidiary formed to operate Celsius' staking and DeFi activities. Celsius executives became concerned with Stone and his affiliates' handling of CNL's coins and other assets, and ultimately terminated Stone's authority to continue staking in March 2021. However, the Litigation Administrator claims that Stone and his affiliates continued to transfer away Celsius assets following this revocation of authority. The Litigation Administrator commenced the instant adversary proceeding on July 13, 2024. The Complaint centers on various CNL coins and other assets that Stone and his affiliates are alleged to have misappropriated. The subject assets include 129,605.26 USDT purportedly received by defendant Benjamin Thor Rameau on or around May 13, 2021. Zuber Lawler filed the Motion to Quash on April 9, 2025. It contends that the Subpoena: (1) seeks information protected by the attorney-client privilege, (2) improperly seeks to use the discovery process to obtain privileged information for the purposes of effectuating service; and (3) imposes an undue burden on the firm. Zuber Lawler also seeks an award of reasonable expenses incurred in connection with filing the Motion. Counsel to the Litigation Administrator filed the Motion to Enforce, which simultaneously responds to the Motion to Quash, on April 16, 2025. The Litigation Administrator contends that the Motion to Quash should be denied, and the Motion to Enforce should be granted, because: (1) Rameau's address and other contact information is not entitled to attorney-client privilege or the work product protection; and (2) the Subpoena does not pose an undue burden on Zuber Lawler, is a valid use of the discovery process, and comports with the Court's prior Order. The Plaintiff alternatively argues that, even if Rameau's address and other contact information is subject to the attorney-client privilege, that privilege was waived by Zuber Lawler by virtue of their voluntary provision of partial information regarding Rameau's residence. Finally, the Litigation Administrator asserts a competing demand for costs and attorneys' fees in connection with the efforts expended responding to the Motion to Quash and prosecuting the Motion to Enforce. According to the Court, in this case, there is simply no evidence that the client's address was provided in confidence or that treating the information as confidential is justified because it was related to the legal advice requested. The Court finds that Rameau's address and the other contact information sought by the Subpoena is not protected by the attorney-client privilege. Because the information Zuber Lawler seeks to quash is not protected by the attorney-client privilege, the Court need not consider whether any claimed privilege was waived by Zuber Lawler, as argued in the alternative by the Litigation Administrator. Zuber Lawler's request for costs and fees is denied. The Litigation Administrator seeks an award of attorneys' fees under 28 U.S.C. Sec. 1927, which applies when a party has acted in bad faith, vexatiously, or engaged in dilatory tactics. The Court declines to impose costs and fees in favor of the Plaintiff pursuant to section 1927. While the Litigation Administrator does not appear to be moving for sanctions under Rule 45, it bears observing that movants for an order compelling compliance under that Rule ordinarily may not recover costs and fees incurred due to related motion practice. The Litigation Administrator's request for fees and costs is denied. Accordingly, the Court compels Zuber Lawler to provide information responsive to the following items enumerated in the Subpoena: (1) Rameau's current or last known mailing address(es); (2) Rameau's known email address(es); and (3) Rameau's known phone numbers. The Court at the present time quashes the remainder of the Subpoena, including the Litigation Administrator's request for deposition testimony. A copy of the Court's decision is available at https://urlcurt.com/u?l=2hAhfT from PacerMonitor.com. Attorneys for Zuber Lawler LLP: Mark H. Bloomberg, Esq. ZUBER LAWLER LLP 260 Madison Avenue, Suite 8021 New York, NY 10016 E-mail: mbloomberg@zuberlawler.com Attorneys for Mohsin Y. Meghji, as Representative for the Post-Effective Date Debtors: Mitchell P. Hurley, Esq. Dean L. Chapman Jr., Esq. AKIN GUMP STRAUSS HAUER & FELD LLP One Bryant Park New York, NY 10036 E-mail: mhurley@akingump.com dchapman@akingump.com - and - Elizabeth D. Scott, Esq AKIN GUMP STRAUSS HAUER & FELD LLP 2300 North Field Street, Suite 1800 Dallas, TX 75201 E-mail: edscott@akingump.com About Celsius Network Celsius Network LLC -- http://www.celsius.network/-- is a financial services company that generates revenue through cryptocurrency trading, lending, and borrowing, as well as by engaging in proprietary trading. Celsius helps over a million customers worldwide to find the path towards financial independence through a compounding yield service and instant low-cost loans accessible via a web and mobile app. Celsius has a blockchain-based fee-free platform where membership provides access to curated financial services that are not available through traditional financial institutions. The Celsius Wallet claims to be one of the only online crypto wallets designed to allow members to use coins as collateral to get a loan in dollars, and in the future, to lend their crypto to earn interest on deposited coins (when they're lent out). Crypto lenders such as Celsius boomed during the COVID-19 pandemic, drawing depositors with high interest rates and easy access to loans rarely offered by traditional banks. But the lenders' business model came under scrutiny after a sharp sell-off in the crypto market spurred by the collapse of major tokens terraUSD and luna in May 2022. New Jersey-based Celsius froze withdrawals in June 2022, citing "extreme" market conditions, cutting off access to savings for individual investors and sending tremors through the crypto market. The list of major crypto firms that have filed for bankruptcy protection in 2022 now includes Celsius Network, Three Arrows Capital and Voyager Digital. Celsius Network, LLC and its subsidiaries sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10964) on July 14, 2022. In the petition filed by CEO Alex Mashinsky, the Debtors estimated assets and liabilities between $1 billion and $10 billion. The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis International, LLP as bankruptcy counsels; Fischer (FBC & Co.) as special counsel; Centerview Partners, LLC as investment banker; and Alvarez & Marsal North America, LLC as financial advisor. Stretto is the claims agent and administrative advisor. On July 27, 2022, the U.S. Trustee appointed an official committee of unsecured creditors. The committee tapped White & Case, LLP as its bankruptcy counsel; Elementus Inc. as its blockchain forensics advisor; M3 Advisory Partners, LP as its financial advisor; and Perella Weinberg Partners, LP as its investment banker. Shoba Pillay, Esq., is the examiner appointed in the Debtors' Chapter 11 cases. Jenner & Block, LLP and Huron Consulting Services, LLC, serve as the examiner's legal counsel and financial advisor, respectively. * * * On November 9, 2023, the Bankruptcy Court entered the Findings of Fact, Conclusions of Law, and Order Confirming the Modified Joint Chapter 11 Plan of Celsius Network LLC and Its Debtor Affiliates. The Effective Date of the Plan occurred January 31, 2024. CHANDON LTD: Dawn Maguire Named Subchapter V Trustee ---------------------------------------------------- The U.S. Trustee for Region 14 appointed Dawn Maguire, Esq., at Guttilla Murphy Anderson, as Subchapter V trustee for Chandon Ltd. Ms. Maguire will be paid an hourly fee of $380 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Maguire declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Dawn Maguire, Esq. 10115 E. Bell Rd., Ste. 107 #498 Scottsdale, AZ 85260 Phone: (480) 304-8302 Fax: (480) 304-8301 Email: Trustee@MaguireLawAZ.com About Chandon Ltd. Chandon Ltd. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-04091) on May 7, 2025, listing up to $50,000 in assets and between $500,001 and $1 million in liabilities. Judge Madeleine C. Wanslee presides over the case. Ronald J. Ellett, Esq., at Ellett Law Offices, P.C. represents the Debtor as bankruptcy counsel. CIBUS INC: Holders Elect Board, OK 9M Share Issuance at 2025 AGM ---------------------------------------------------------------- Cibus, Inc. reported in a Form 8-K filing with the Securities and Exchange Commission that stockholders approved seven proposals presented at the 2025 Annual Meeting held on May 22 relating to governance, compensation, and equity issuance. Rory Riggs, Peter Beetham, Mark Finn, Jean-Pierre Lehmann, August Moretti, Gerhard Prante, and Keith Walker were elected to the Board, each to serve until the next annual meeting of stockholders and until his successor has been elected and qualified, or until his earlier death, resignation, or removal. Stockholders also gave advisory approval to executive compensation, ratified the appointment of BDO USA as auditor, and approved the adoption of the Company's new employee stock purchase plan. In addition, the Stockholders authorized several equity actions tied to Nasdaq rules, including the issuance of over 9 million shares related to recent warrant agreements and the repricing of certain warrants held by Riggs. About Cibus Cibus Inc. is an agricultural biotechnology company based in San Diego, California. It develops genetic traits for major food crops using its proprietary gene-editing platform, the Rapid Trait Development System. The Company's technology aims to improve crop productivity and resilience by addressing challenges such as pests, diseases, and environmental stressors. In an audit report dated March 20, 2025, BDO USA, P.C. issued a "going concern" qualification citing that the Company has suffered recurring losses from operations and negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern. The Company has incurred net losses since its inception. As of Dec. 31, 2024, the Company had an accumulated deficit of $731.2 million. The Company's net loss was $282.7 million for the year ended Dec. 31, 2024. Cibus anticipates continuing to incur substantial expenses and operating losses over the next several years, as it advances the development of its productivity trait pipeline and maintains limited commercial operations. Those expenses and losses may fluctuate significantly from quarter-to-quarter and year-to-year. CINEMARK HOLDINGS: Barclays PLC Holds 5.98% Stake as of March 31 ---------------------------------------------------------------- Barclays PLC disclosed in a Schedule 13G filed with the U.S. Securities and Exchange Commission that as of March 31, 2025, it beneficially owned 7,325,742 shares of Cinemark Holdings Inc.'s common stock, representing approximately 5.98% of the outstanding shares. These shares include 7,290,348 shares as sole voting power and dispositive power, and 35,394 shares with shared voting and dispositive power. Barclays PLC may be reached through: Ramya Rao, Director 1 Churchill Place London - E14 5HP, United Kingdom 00442031340952 A full-text copy of Barclays' SEC report is available at: https://tinyurl.com/2je6n832 About Cinemark Holdings Inc. Headquartered in Plano, Texas, Cinemark Holdings, Inc. operates as a movie theater. As of March 31, 2025, Cinemark Holdings had $4.7 billion in total assets, $4.3 billion in total liabilities, and total stockholders' equity of $357.6 million. * * * Egan-Jones Ratings Company on November 11, 2024, upgraded the foreign currency and local currency senior unsecured ratings on debt issued by Cinemark Holdings, Inc. to CCC+ from CCC. CLASSIC CONSTRUCTION: Case Summary & 20 Top Unsecured Creditors --------------------------------------------------------------- Debtor: Classic Construction & Restoration Inc. 406 S. Yale Garland, TX 75042 Business Description: Classic Construction and Restoration, Inc. is a general contractor based in Dallas, Texas, offering services such as water and storm damage restoration, fire damage repair, roofing, and interior and exterior maintenance. The Company serves residential and commercial clients, including homeowner associations, and is recognized for its expertise in structural work, insurance claims, and legal support related to insurance settlements. With over 90 years of service experience, it operates with a full administrative and project management team to manage construction and restoration projects of varying scale. Chapter 11 Petition Date: May 27, 2025 Court: United States Bankruptcy Court Northern District of Texas Case No.: 25-41874 Judge: Hon. Edward L Morris Debtor's Counsel: Robert T DeMarco, Esq. DEMARCO MITCHELL, PLLC 500 N. Central Expressway Suite 500 Plano TX 75074 Tel: (972) 991-5591 E-mail: robert@demarcomitchell.com Total Assets: $394,749 Total Liabilities: $2,291,204 The petition was signed by Aaron Painter 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/NWG2YBI/Classic_Construction__Restoration__txnbke-25-41874__0001.0.pdf?mcid=tGE4TAMA CONAIR HOLDINGS: Moody's Alters Outlook on 'Caa1' CFR to Stable --------------------------------------------------------------- Moody's Ratings affirmed Conair Holdings LLC's Caa1 Corporate Family Rating, Caa1-PD Probability of Default Rating, and Caa1 senior secured first lien debt rating. The rating outlook was changed to stable from negative. The change in outlook to stable reflects Moody's expectations that the recently announced 90 day pause on reciprocal tariffs on goods from China greatly reduces execution risks related to the diversification of the supply chain and will reduce the magnitude of the decline in earnings and free cash flow. Moody's expects Conair will be able take a more measured and balanced approach towards executing on its strategic initiatives to address tariffs including reorientation of its supply chain, reducing costs, pursuing incremental customer volume and raising prices. Execution risk remains but Moody's believes Conair will be able to strategically plan and implement supply chain changes with less immediate pressure to transition and deplete inventories. This pause provides Conair with the opportunity to assess alternative sourcing options and optimize logistics and provides more time to invest and construct facilities and for infrastructure in the targeted countries to more fully develop to service the volume shifts. Furthermore, the temporary tariff relief can help Conair allocate resources more effectively, balancing investment in supply chain diversification with maintaining operational efficiency and product quality. This measured approach is likely to partially mitigate supply chain disruptions and the overall impact to earnings and free cash flow. Nevertheless, Moody's affirmed the CFR because there is execution risk to adapt to a higher cost supply chain, Moody's anticipates earnings and free cash flow will meaningfully decline in 2025 and leverage will increase. Even at current tariff rates, Moody's expects significant increase in operating costs and the diversification of the supply chain will carry, reduced but still considerable, execution risk. Further, it is uncertain as to where final tariffs rates land after ongoing trade negotiations and the expiration of the pauses on reciprocal tariffs. Moody's continues to see Conair's liquidity as sufficient to pay its cash obligations over the next 12 months. Additionally, Moody's continues to anticipate that Conair will be able address the upcoming May 2026 expiration of the asset backed lending facility ("ABL") at terms and an interest rate that do not meaningfully reduce the company's free cash flow. Overall, Moody's sees liquidity as adequate over the next 12-to-18 months largely supported by available capacity on the ABL although with considerable downside risks if tariffs increase. Under the current tariff rates, Moody's expects free cash flow to turn slightly negative in 2025 before improving in 2026. Liquidity is supported by cash and available capacity on the $500 million ABL as of December 2024. Moody's assumes in the CFR that Conair will be able to extend the facility, but liquidity will deteriorate meaningfully if the company does not proactively address the maturity. RATINGS RATIONALE Conair's Caa1 CFR reflects expected deterioration in earnings and operational and execution risk due to the company's decision to diversify its supply chain to minimize the effect of higher tariffs on US imports. The CFR also reflects Conair's very high leverage, weak free cash flow and exposure to cyclical demand for durable consumer goods that was already under some pressure prior to the tariffs, as well as other governance risks stemming from concentrated decision making under private equity ownership and an aggressive financial policy. Conair has historically sourced a significant portion of its goods into the US from China. The tariffs on Chinese imports are prompting Conair to reorganize its supply chain into other countries. Conair's revenue and earnings may drop materially in 2025 as it pursues the supply chain shift, and the company will need to quickly and efficiently move production to restore revenue and earnings to current levels within a few years. Conair is also taking other steps such as cost reductions, pursuing new business and price increases to recover from the volume and earnings decline in 2025. The 90-day pause on reciprocal tariffs from China temporarily alleviates some of these pressures, partially mitigates immediate cost impact, allows Conair to maintain better inventory levels, and provides time for suppliers to invest in necessary infrastructure. Moody's projects Conair's debt-to-EBITDA (incorporating Moody's adjustments) will increase to around 11.0x by year-end 2025 from 7.7x as of December 2024. Conair's portfolio of products is exposed to declines in consumer spending because purchases are periodic and can be deferred in times of stress. The company's diverse mix of personal care and culinary products and the importance to consumer lifestyles provides a partial mitigant to the cyclical risk. Conair benefits from very strong brand recognition and consumer appeal, good innovation, solid scale, and good distribution including strong relationships with leading brick-and-mortar and e-commerce retailers. The CFR also considers actions taken by private equity sponsor American Securities to bolster the company's liquidity position in 2022 including extending an incremental lending facility that expired unused in December 2022. The company also improved balance sheet cash through the mortgaging and sale-leaseback of various distribution facilities. Moody's anticipates continued support from American Securities and for the company to utilize additional levers as needed to backstop its liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Conair demonstrates good and cost-effective execution of the supply chain reorientation that leads to a strong recovery of revenue and earnings from the weaker levels anticipated in 2025. An upgrade would also require Conair to maintain EBITDA less capital spending to interest expense above 1.5x and demonstrated ability to generate positive free cash flow with adequate liquidity. The ratings could be downgraded if Conair is unable to stabilize its operating results due to weaker economic conditions, disruptions related to the supply chain reorientation, volume or market share losses or higher operating costs. The rating could also be downgraded if liquidity deteriorates, the company is unable to sustain positive free cash flow or the probability of a default including a distressed exchange increases. The principal methodology used in these ratings was Consumer Durables published in September 2021. Conair Holdings LLC is a designer, manufacturer and marketer of branded personal care appliances, small kitchen appliances and cookware, commercial foodservice equipment, professional hair care and beauty products, hairbrushes and haircare accessories, cosmetic and organizer bags and travel accessories. The company's leading brands include Cuisinart, Conair, Scunci, Babyliss, and Waring. Conair generated annual revenue of approximately $2.1 billion for the 12 months ended December 31, 2024. Following a leveraged buyout in May 2021, the company is majority owned by private equity firm, American Securities LLC. CONTOUR BUCKINGHAM: Wells Fargo Wants Farbman Named as Receiver --------------------------------------------------------------- In the case styled WELLS FARGO BANK, N.A., Plaintiff v. CONTOUR BUCKINGHAM AL LLC, CONTOUR CALLINGTON AL LLC, and CONTOUR CARLYLE AL LLC, Defendants, Case No. 2:25-cv-00789-JHE (N.D. Ala.), the Plaintiff seeks the appointment of Farbman Group as a receiver to collect the rents assigned to Wells Fargo, manage and preserve collateral, pay operating expenses and taxes, stabilize the properties and, if warranted in the receiver's business judgment, market them for sale under this Court's supervision. Wells Fargo seeks to recover $145,000,000 in secured loans that the Defendants, the Contour Borrowers, have failed to repay. The Contour Borrowers own and operate three multi-family communities situated in the Birmingham area comprised of 1,796 residential apartment units. The subject loans are secured by a first mortgage and assignment of rents covering each of the Facilities, as well as a first lien on all personal property of the Contour Borrowers. In addition to defaulting on their loan repayment obligations, the Contour Borrowers have also failed to pay 2024 ad valorem taxes on the Facilities in excess of $2 million that were due on October 1, 2024, thereby subjecting Lender’s collateral to a priming tax lien and an imminent tax auction if the taxes are not paid before May 6, 2025. Contour Buckingham has also failed to pay federal payroll taxes resulting in the issuance of a recent federal tax levy and Contour Callington has recently become the subject of a state unemployment tax lien against Lender's collateral, which potentially jeopardizes Lender's rights further. Contour Buckingham is a limited liability company organized and existing under the laws of the state of Delaware, whose sole member is Contour Holding Company LLC. Contour Holding Company LLC is a limited liability company organized and existing under the laws of the state of Michigan. The Plaintiff is represented by: N. Chris Glenos, Esq. Macy Walters, Esq. BRADLEY ARANT BOULT CUMMINGS LLP One Federal Place 1819 Fifth Avenue North Birmingham, AL 35203-2104 Telephone: (205) 521-8000 E-mail: cglenos@bradley.com mwalters@bradley.com CREDIT ACCEPTANCE: Moody's Affirms 'Ba3' CFR, Outlook Stable ------------------------------------------------------------ Moody's Ratings has affirmed Credit Acceptance Corporation's (CAC) Ba3 corporate family rating and Ba3 senior unsecured rating. The issuer outlook remains stable. RATINGS RATIONALE CAC's ratings reflect the company's long history as a subprime auto lender, strong profitability, modest leverage and solid liquidity. At the same time, the ratings incorporate certain credit challenges, namely the inherent credit and regulatory risk in lending to consumers with subprime credit profiles, asset quality pressures on some recent loan vintages, and a reliance on market funding. CAC's profitability has remained solid, with net income to average managed assets (NI/AMA) of 3.2% in 2024. However, prior to the coronavirus pandemic, that metric would frequently exceed 8%. The decline has been driven by a number of factors; a significant impact was the implementation of the current expected credit loss (CECL) accounting standard on January 01, 2020, which significantly affected the timing of income recognition. However, Moody's do not view this accounting change as having fundamentally changed the company's economic profitability. CAC's earnings have also been negatively affected by lower profitability on more recent vintages, driven by the high inflation between 2022 and 2023, along with elevated funding costs and operating expenses. Nonetheless, CAC's profitability compares solidly to peers, which have been subject to similar pressures, and CAC's recent performance demonstrates the ability of the company to weather difficult operating environments. The Consumer Financial Protection Bureau (CFPB) also recently announced it would remove itself as a plaintiff from the lawsuit it entered against CAC alongside the New York Attorney General (New York AG) regarding the company's originations and collections practices. Among other things, the lawsuit alleged that the firm's practice of purchasing loans from auto dealers at a discount constituted a hidden finance charge, potentially circumventing state-level usury rates. While the New York AG may continue to pursue the case, the CFPB's withdrawal from the lawsuit is nonetheless credit positive and potentially reduces the negative impact to CACC's business from an adverse result from the lawsuit. The stable outlook reflects Moody's expectations that CAC will maintain strong earnings, modest leverage and strong liquidity over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS CAC's ratings could be upgraded if the company further extends its liquidity runway, maintain its competitive position in the US subprime auto lending market and demonstrate solid asset quality, while maintaining strong profitability and debt to equity at or below 2.5x (on a CECL-adjusted basis). An upgrade would likely be predicated on some resolution of the case brought against the company by the New York AG, resulting in the company being able to retain its current business practices mostly unchanged. CAC's ratings could be downgraded if debt to equity increases above 3.0x (on a CECL-adjusted basis), or if profitability or asset quality deteriorates. CAC's senior unsecured debt ratings could also be downgraded if the proportion of senior unsecured debt relative to recourse secured debt were to decline, increasing the risk of losses for these creditors due to lower protection from reduced debt volume. The ratings could also be downgraded if the company is subject to significantly adverse legal or regulatory rulings. The principal methodology used in these ratings was Finance Companies published in July 2024. DOTDASH MEREDITH: Moody's Affirms 'B2' CFR, Outlook Stable ---------------------------------------------------------- Moody's Ratings affirmed Dotdash Meredith Inc.'s B2 corporate family rating, B2-PD probability of default rating, and B2 rating on the existing senior secured term loan B-1. Moody's assigned a B2 rating to the new senior secured revolving credit facility and senior secured term loan A-1. The outlook is stable. The affirmation of the ratings reflects Dotdash Meredith's reduced leverage profile (5.2x LTM Q1 2025) and continued improvement in operating performance in its digital division, which has more than offset persistent declines in the lower margin print business. Free cash flow (FCF) is also expected to continue to rise with FCF as a percentage of debt in the mid to high single digits in 2025. The new revolver and term loan A facility was used to refinance the previous revolver and term loan A facility and extends the maturity to 2030. The ratings on the previous revolver and term loan A will be withdrawn in the near term. RATINGS RATIONALE Dotdash Meredith Inc.'s B2 CFR reflects the company's decline in leverage levels driven by strength in the Digital segment, which Moody's expects will be the primary driver of performance and lead to higher EBITDA margins as the benefits of the integration of the Meredith brand names onto the digital media platform continue to improve. While Dotdash Meredith has completed the rationalization and restructuring of its print magazine assets, the company remains exposed to secular declines in print publishing, although print represents a modest portion of overall EBITDA. There is also exposure to consumer discretionary end markets and geographic concentration. Additional concerns include possible declines in website traffic due to rapidly changing technology and industry standards, new approaches for content delivery, branding and distribution, and sudden shifts in how consumers engage with media content over time. Modifications to Google's and other search engine's algorithms could also negatively impact Dotdash Meredith's websites placements on search engine results and weigh on customer traffic. Dotdash Meredith derives support from its position as a leading Internet publisher that owns a broad portfolio of well-known consumer lifestyle media brands and digital media assets. High intent online customer traffic that relies on first-party data is also expected to produce greater sales conversions and more meaningful ROI for advertising clients than traditional marketing channels. As the benefits of the Meredith's brands and Dotdash's digital services, including its D/Cipher offering, are realized, free cash flow and profitability will continue to improve in 2025. While the company's parent IAC is not a guarantor to the credit agreement, there is implied support as IAC has historically provided resources to Dotdash Meredith and maintained sizable excess internal liquidity. Over the next 12-18 months, Moody's expects Dotdash Meredith will maintain very good liquidity supported by $243 million of cash on the balance sheet as of Q1 2025 and access to an undrawn $150 million revolving credit facility due 2030. Operating cash flow is likely to continue to expand and drive FCF above $100 million in 2025. Capital expenditures are likely to remain in the high teens range. The term loan A has a mandatory 5% amortization of $17.5 million per annum (stepping up to 10% amortization in 2028 and 15% amortization in 2029). The term loan B is covenant lite, but the revolver and term loan A are subject to a 5.5x Consolidated Net Leverage maintenance covenant (as defined in the credit agreement) that is operative if either the revolver is drawn or the term loan A is outstanding. Moody's expects Dotdash Meredith will maintain significant covenant headroom over the next twelve months. Liquidity is also boosted by IAC's substantial financial resources, which IAC could use to support the company, if needed. IAC had about $917 million of cash and marketable securities (excluding cash at Dotdash Meredith) as of Q1 2025. The credit facilities are rated B2, the same rating as the B2 CFR, and reflect that secured debt comprises the preponderance of the company's capital structure. The credit facilities are secured by a first-priority lien on substantially all tangible as well as intangible assets and carry upstream guarantees from present and future direct and indirect wholly-owned material restricted domestic subsidiaries of the borrower, Dotdash Meredith Inc. Dotdash Meredith Inc. is a wholly-owned indirect subsidiary of IAC Group, LLC, which is a direct wholly-owned subsidiary of IAC. The credit facilities do not benefit from a downstream guarantee from IAC. The stable outlook reflects Moody's expectations for relatively flat revenue performance in 2025 as digital media revenue growth is offset by continuing secular declines in print publication revenue. Dotdash Meredith's digital media business, which accounts for the vast majority of EBITDA, will benefit from first party, high intent data that is likely to drive higher profitability through 2026. Moody's expects Dotdash Meredith's leverage levels to decline modestly to the about 5x in 2025 with additional improvement in 2026 from EBITDA growth and from mandatory debt repayment. Operating performance will also continue to be sensitive to macro-economic conditions given the company's significant exposure to discretionary consumer spending. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade could occur if Dotdash Meredith demonstrates continuing organic revenue growth in line or ahead of the market with expanding EBITDA margins. Financial leverage would need to approach 4.5x total debt to EBITDA (as calculated by Moody's), with free cash flow as a percentage of total debt of at least 5% and adherence to conservative financial policies with respect to potential dividends paid to the parent. The company would also need to maintain a strong liquidity position. The ratings could be downgraded if financial leverage is sustained above 6.5x total debt to EBITDA (as calculated by Moody's) due to operating weakness or leveraging transactions, or a weakened competitive position with a decline in EBITDA margins below 10% for an extended period. A deterioration in Dotdash Meredith's liquidity could also lead to negative rating pressure. With headquarters in New York, NY, Dotdash Meredith Inc. ("Dotdash Meredith") was formed in 2021 via the combination of IAC Inc.'s ("IAC") digital publishing business, Dotdash Media Inc., and Meredith Corp.'s print magazine, digital publishing and brand licensing assets ("MHC") in a transaction valued at approximately $2.7 billion. The merger created a leading internet property and consumer media publisher with over 40 leading brands. Dotdash Meredith is a 100% owned subsidiary of IAC. LTM revenue as of Q1 2025 was $1.8 billion. The principal methodology used in these ratings was Media published in June 2021. DOUGLAS HOLDINGS: Monroe Marks $309,000 Secured Loan at 73% Off --------------------------------------------------------------- Monroe Capital Corporation has marked its $309,000 loan extended to Douglas Holdings, Inc. to market at $335,000 or 27% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to Douglas Holdings, Inc. The loan accrues interest at a rate of 10.05% Cash/0.38% PIK per annum. The loan matures on August 27, 2026. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About Douglas Holdings, Inc. Douglas Holdings, Inc. is one of the leading omnichannel premium beauty destination. DRIVEN HOLDINGS: Moody's Alters Outlook on 'B3' CFR to Positive --------------------------------------------------------------- Moody's Ratings changed Driven Holdings, LLC's outlook to positive from stable. At the same time, Moody's affirmed Driven Holdings' B3 corporate family rating, B3-PD probability of default rating and its backed senior secured term loan B and backed senior secured revolving credit facility ratings at B3. Additionally, the Speculative Grade Liquidity Rating (SGL) remains unchanged at SGL-2. The outlook change to positive reflects the close of the sale of Driven Holdings' US carwash business in April with net proceeds used to pay down approximately $246 million of the company's 2028 senior secured term loan B. There is approximately $81 million remaining outstanding under the 2028 term loan and Moody's expects the company to repay the remaining amount by year-end 2025. Further, the company is committed to continue to reduce leverage and Moody's expects the company to repay the $180 million currently drawn under its $300 million senior secured revolving credit facility over the next 12-18 months using free cash flow. As Driven Holdings repays debt, Moody's expects lease adjusted debt/EBITDA to decline to about 5.0x from 6.3x as of March 29, 2025 and EBITA/interest to exceed 2.5x over the next 12-18 months up from 1.7x as of March 29, 2025. RATINGS RATIONALE Driven Holdings' B3 CFR reflects its significant system-wide revenue scale of over $6 billion, market position as one of the largest automotive service operators with about 4,800 locations, and multiple brands across a wide range of industry segments including paint, collision, glass, oil change, regular maintenance, car wash, and parts supply. The B3 CFR is also supported by the national brand recognition of its portfolio companies including Meineke and Maaco as well as the company's good liquidity profile. The B3 CFR is also supported by the growing and ageing car parq which provides a steady flow of vehicles needing routine maintenance and therefore revenue stability. The CFR is also supported by good liquidity, driven by solid cash balances, Moody's expectations of positive free cash flow, the company's $300 million revolver which expires in February 2030, and alternate liquidity provided by sale-lease back transactions of company-owned stores. Driven Holdings' B3 CFR reflects governance considerations, particularly the company's private equity majority ownership and history of primarily relying on debt to fund rapid company-owned store growth. Rapid growth has exposed execution and integration challenges including in the glass business which the company retains and the US car wash business which it recently sold. Further, although Moody's views the restricted group, Driven Holdings, LLC, as having good liquidity, the restricted group is highly reliant on the distribution of residual earnings and management fees from the whole business securitization (WBS) entities to support its operations and cash flows. Other than the remaining European car wash assets, Automotive Training Institute, and certain company-owned store assets which, together, are not included in the WBS, the WBS (about $2.2 billion in debt outstanding) has priority claim to substantially all revenue-generating assets of Driven Brands including current and future intellectual property for each brand, royalties, all existing and future franchise and development agreements, profits from certain maintenance and paint, collision & glass company-owned locations and related store assets, profits from certain business in Canada, and hard parts and accessories distribution margin in the US. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded with continued deleveraging and sustained organic improvement in operating performance, and continued moderate financial policy that results in sustained strengthening of credit metrics with debt/EBITDA consistently below 6.75x and EBITA/interest sustained above 1.75x. A higher rating would also require at least good liquidity. The ratings could be downgraded if EBITA/interest approaches 1x and/or if Driven Holdings' financial policy choices result in failure to produce positive free cash flow inclusive of sale lease back proceeds and/or if liquidity deteriorates. While not expected given the non-discretionary nature of routine car maintenance demand, the outlook could be revised to stable should tariff-driven cost inflation result in reduced demand, lower than expected earnings and slower deleveraging. The outlook could also return to stable should the company increase leverage in order to finance shareholder distributions or growth capital spending. Driven Holdings, LLC, is the restricted group borrower subsidiary of Charlotte, North Carolina-based Driven Brands Holdings Inc. (Driven Brands). Driven Brands is a large, publicly-traded automotive services company (NASDAQ: DRVN) operating in North America and Europe, catering to a range of consumer and commercial automotive needs, including paint, collision, glass, oil change, regular maintenance, car wash, and parts supply. Revenue for the LTM period ending March 29, 2025 is approximately $2.4 billion while systemwide sales generated by about 4,800 mostly-franchised/independently-operated locations are over $6 billion. Driven Brands is majority-owned and controlled by affiliates of Roark Capital Group, a private equity firm. The principal methodology used in these ratings was Retail and Apparel published in November 2023. E&J SHOE: Case Summary & Three Unsecured Creditors -------------------------------------------------- Debtor: E&J Shoe Wholesale, Inc. 9201 Broad Manor Rd Miami, FL 33147 Business Description: E & J Shoe Wholesale, Inc. is a footwear wholesaler based in Miami, Florida. The Company, established in 1998, supplies affordable shoes to retailers and is known for its broad selection and competitive pricing. Chapter 11 Petition Date: May 27, 2025 Court: United States Bankruptcy Court Southern District of Florida Case No.: 25-15906 Judge: Hon. Robert A Mark Debtor's Counsel: Chad Van Horn, Esq. VAN HORN LAW GROUP, P.A. 500 NE 4th Street, Suite 200 Fort Lauderdale, FL 33301 Tel: (954) 765-3166 E-mail: chad@cvhlawgroup.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Elianie Frederic as president. A full-text copy of the petition, which includes a list of the Debtor's three unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/TNGIPDQ/EJ_Shoe_Wholesale_Inc__flsbke-25-15906__0001.0.pdf?mcid=tGE4TAMA ECI INC: Seeks Chapter 11 Bankruptcy in Wisconsin ------------------------------------------------- On May 21, 2025, ECI Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Wisconsin. 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 ECI Inc. ECI Inc., formerly known as Ecklund Logistics, Inc., a Wisconsin-based logistics and transportation company. ECI Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Wis. Case No. 25-22929) on May 21, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge G Michael Halfenger handles the case. The Debtors are represented by Jerome R. Kerkman, Esq. at Kerkman & Dunn. ELETSON: Motion to Intervene in Lenova Arbitration Denied in Part ----------------------------------------------------------------- Judge Lewis J. Liman of the United States District Court for the Southern District of New York granted in part and denied part the motion of Apargo Limited, Fentalon Limited, and Desimusco Trading Limited for an order permitting them leave to intervene in the action captioned as ELETSON HOLDINGS, INC. and ELETSON CORPORATION, Petitioners, -v- LEVONA HOLDINGS LTD., Respondent, Case No. 23-cv-07331-LJL (S.D.N.Y.), and to file a proposed petition seeking confirmation of an arbitral award. This case arises from the award issued by the Hon. Ariel E. Belen of JAMS on Sept. 29, 2023, resolving a dispute between Levona, a British Virgin Islands special purpose entity, and Eletson Holdings, Inc. and Eletson Corporation over ownership interests in Eletson Gas LLC, a limited liability company that specializes in liquified petroleum gas shipping. In November 2021, Levona invested in Eletson Gas by purchasing preferred shares of the company from Eletson's previous investor and joint venture partner, Blackstone. Eletson Holdings, Inc. held the common shares in Eletson Gas. The JAMS arbitration was initiated by Eletson Holdings, Inc. and Eletson Corporation pursuant to the Third Amended and Restated LLC Agreement, which theh had entered into with Levona. The underlying dispute between the parties also involved a Binding Offer Letter that Levona had entered with Eletson pursuant to which Levona had provided funding to Eletson Gas in exchange for the transfer of two of its ships to Levona. The BOL had an option which permitted Eletson to purchase the preferred shares from Levona by repaying the loan. In broad strokes, Eletson claimed that it had exercised an option to acquire the preferred shares that was embedded in the BOL and that, as a consequence, actions that Levona took subsequent to the option exercise and consistent with Levona's ownership of the preferred shares were tortious. Levona counterclaimed against Eletson, asserting that the option had not been exercised because the loan had not been repaid and that it was entitled to damages. The Arbitrator ruled in favor of Eletson. He determined that Eletson had validly exercised the purchase option contained in the BOL and that Levona was no longer the proper owner of the preferred shares in Eletson Gas. After the presentation of evidence in the arbitration was closed, Eletson Holdings, Inc. (which was then in bankruptcy proceedings) asked the Arbitrator to award the shares and monetary relief not to it but rather to Gas and to the Proposed Intervenors (who allegedly were owned by the then-owners of Holdings). The Arbitrator granted the request, over the objection of Levona. He ruled that the preferred shares were transferred to nominees chosen by Eletson. He awarded compensatory damages to the Proposed Intervenors in the amount of $19,677,743.71 and to Eletson Gas in the amount of $23,777,378.50. He also awarded punitive damages to the Proposed Intervenors in the amount of $19,677,743.71 and to Eletson Gas in the amount of $23,777,378.50, as well as attorneys' fees, expenses, and costs against Levona for the arbitration, involuntary bankruptcy proceedings, and trustee litigation. Proposed Intervenors filed the motion to intervene under Federal Rules of Civil Procedure 24(a)(2) and 24(b). They also filed a memorandum of law and a declaration of counsel in support of the motion with a copy of their proposed petition. The Proposed Petition contains a single count, asking the Court for recognition of the award. The relief sought is limited to an order confirming the award and entering judgment in favor of the Intervenors and against Levona in accordance with the award. Eletson filed a memorandum joining in Levona's opposition to the motion to intervene. Levona argues broadly that Proposed Intervenors do not have statutory standing under the Federal Arbitration Act to pursue confirmation of the award or to oppose vacatur. Proposed Intervenors argue broadly that they have standing both to seek confirmation and to oppose vacatur. The Court concludes that the Proposed Intervenors do not have standing to seek confirmation but that they do have standing to oppose vacatur. According to the Court, Proposed Intervenors had no preexisting right to participate in arbitration, nor have the parties consented to their intervention. They were not parties to the LLCA pursuant to which Eletson, over Levona's objection, initiated the arbitration. That agreement specifically provided that there were no third-party beneficiaries. If they had a claim against Levona, they had no right, absent Levona's consent, to have it resolved through arbitration, the Court notes. In opposing vacatur, Proposed Intervenors do not seek relief under the FAA. Rather, they ask the Court not to award relief. Thus, regardless of whether Levona would have been required to serve Proposed Intervenors with their original motion to vacate, there is nothing in the FAA that would prohibit the Court from permitting the Proposed Intervenors from intervening to protect the award. The Court grants the motion to the extent that Proposed Intervenors seek to defend the award against the cross-petition of Levon to vacate the award. The Court denies the motion to the extent that Proposed Intervenors seek to confirm the award and to file the proposed petition. A copy of the Court's decision is available at https://urlcurt.com/u?l=nfiPhO from PacerMonitor.com. About Eletson Holdings Eletson Holdings Inc. is a family-owned international shipping company, which touts itself as having a global presence with headquarters in Piraeus, Greece as well as offices in Stamford, Connecticut, and London. At one time, Eletson claimed to own and operate one of the world's largest fleets of medium and long-range product tankers and boasted a fleet consisting of 17 double hull tankers with a combined capacity of 1,366,497 dwt, 5 LPG/NH3 carriers with a combined capacity of 174,730 cbm and 9 LEG carriers with capacity of 108,000 cbm. Eletson Holdings, a Liberian company, is Eletson's ultimate parent company and is the direct parent and owner of 100% of the equity interests in the two other debtors, Eletson Finance (US) LLC, and Agathonissos Finance LLC. Eletson and its two affiliates were subject to involuntary Chapter 7 bankruptcy petitions (Bankr. S.D.N.Y. Case No. 23-10322) filed on March 7, 2023 by creditors Pach Shemen LLC, VR Global Partners,L.P. and Alpine Partners (BVI), L.P. The petitioning creditors are represented by Kyle J. Ortiz, Esq., at Togut, Segal & Segal, LLP. On Sept. 25, 2023, the Chapter 7 cases were converted to Chapter 11 cases. The Honorable John P. Mastando, III is the case judge. Derek J. Baker, Esq., represents the Debtors as bankruptcy counsel. The U.S. Trustee for Region 2 appointed an official committee of unsecured creditors. The committee tapped Dechert, LLP as its legal counsel. EQUINE LUXURY: Court Agrees to Appoint Receiver ----------------------------------------------- In the case styled EQUINE LUXURY PROPERTIES, LLC, a Michigan limited liability company, and 138 RIVER STREET, LLC, a Michigan limited liability company, Plaintiffs v. COMMERCIAL CAPITAL BIDCO, INC., a Tennessee corporation, Defendant, Case No. 1:23-cv-01142-HYJ-SJB (W.D. Mich.), the Court granted Defendant/Counter-Plaintiff Commercial Capital BIDCO's request for appointment of a receiver and for ancillary relief to assist the receiver. The Plaintiffs initially brought this action in the Michigan 13th Circuit Court, Grand Traverse County, for declaratory and injunctive relief against Defendant Commercial Capital BIDCO, Inc. seeking to prevent CCB from foreclosing on two properties located in Michigan. CCB removed the action to Western District of Michigan on the basis of diversity jurisdiction. The Court finds that the parties interested in the receivership estate are Equine Luxury Properties, LLC, 138 River Street, LLC, and Next Bridge Funding, LLC. The Court further finds that the proposed receiver John Polderman has sufficient competence, qualifications, and experience to administer the Receivership Estate. The Court further finds that, under MCR 2.622(B)(6) and MCL 554.1017, it is in the best interest of the Receivership Estate to appoint John Polderman as receiver and, to the extent applicable, there is no actual conflict of interest that would otherwise prevent his appointment. Commercial Capital Bidco, Inc., a Tennessee corporation, is a small-balance bridge loan provider. Defendant Commercial Capital Bidco, Inc. is represented by Aaron F. Bayliss, Esq. -- abayliss@trottlaw.com -- at Trott Law, P.C. Plaintiffs Equine Luxury Properties, LLC and 138 River Street, LLC are represented by: Paul L. Nine, Esq. Dean J. Groulx, Esq. PAUL L. NINE & ASSOCIATES, PC Tel: 248-644-5500 E-mail: office@paullninepc.com - and - Christopher K. Cooke, Esq. SECREST WARDLE Tel: 616-285-0143 E-mail: ccooke@secrestwardle.com - and - Mark L. Kowalsky, Esq. TAFT STETTINIUS & HOLLISTER LLP Tel: 248-351-3000 E-mail: mkowalsky@taftlaw.com EXCELL COMMUNICATIONS: Case Summary & 20 Top Unsecured Creditors ---------------------------------------------------------------- Three affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Excell Communications, Inc. (Lead Case) 25-71444 255 Executive Drive, Suite 409 Plainview, New York 11803 Telecable, Inc. 25-71445 E-Fleet Services Corp. 25-71446 Business Description: Excell is a telecommunications infrastructure company that provides network design and construction services, including fiber optic installation, for clients in the wireless, fiber, and utility industries. Founded in 2008 and based in Alabama, the Company operates in over 30 states with a workforce of more than 500 employees. Its major customers include Brightspeed and Hotwire Communications. Chapter 11 Petition Date: April 14, 2025 Court: United States Bankruptcy Court Eastern District of New York Judge: Hon. Louis A Scarcella Debtors' Bankruptcy Counsel: Michael S. Amato, Esq. Sheryl P. Giugliano, Esq. Nicolas A. Florio, Esq. Madison F. Scarfaro, Esq. RUSKIN MOSCOU FALTISCHEK, P.C. 1425 RXR Plaza East Tower, 15th Floor Uniondale, New York 11556 Tel: (516) 663-6600 Email: mamato@rmfpc.com sgiugliano@rmfpc.com nflorio@rmfpc.com mscarfaro@rmfpc.com Debtors' Financial Advisor: LINDENWOOD ASSOCIATES, LLC Debtors' Special Counsel: HARRIS BEACH MURTHA CULLINA PLLC Excell Communications' Total Assets: $20,418,222 Excell Communications' Total Liabilities: $34,918,524 Telecable Inc.'s Total Assets: $1,578,887 Telecable Inc.'s Total Liabilities: $3,876,852 E-Fleet Services' Total Assets: $295,148 E-Fleet Services' Total Liabilities: $7,254,184 List of Excell Communications' 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Internal Revenue Service $4,754,762 Centralized Insolvency Operation PO Box 7346 Philadelphia, PA 19101-7346 2. Digital Works Group DMCC $3,191,579 Attn: Officer, Manager, Authorized Agent DMCC Business Centre Level 5 Unit 422 Jewellery & Gemplex 2 Dubai UAE 3. NY Cabletek LLC $2,992,500 Attn: Officer, Manager, Authorized Agent 27 Lewis St Yonkers, NY 10703-1610 4. Colliers Engineering & Design Inc. $2,500,000 Attn: Officer, Manager, Authorized Agent 101 Crawfords Corner Rd Ste 3000 Holmdel, NJ 07733-1981 5. SpliceX Inc. $2,432,343 Attn: Officer, Manager, Authorized Agent 2940 Ocean Pkwy Apt 6B Brooklyn, NY 11235-8217 6. SmartDev. S.A. $2,401,104 Attn: Officer, Manager, Authorized Agent Rua do Carmo, No 38-3 Dto Esquerdo 9050-019 Funchal Madeira, Portugal 7. Custom Truck One Source, L.P. $2,090,023 Attn: Officer, Manager, Authorized Agent 7701 Independence Ave Kansas City, MO 64125-1300 8. AM Communications, Ltd. $1,828,079 Attn: Officer, Manger, Authorized Agent 5707 State Route 309 Galion, OH 44833 9. State of New Jersey Department $1,763,989 of the Treasury Division of Taxation Attn: Matthew Greco 6 Commerce Dr Ste 300 Cranford, NJ 07016-3515 Tel: (908) 577-9402 10. Deepomatic Inc. $1,218,456 Attn: Officer, Manager, Authorized Person 500 7th Ave New York, NY 10018-4502 11. Telecon Design (USA) Inc. $1,057,397 Attn: Officer, Manager, Authorized Agent 5225 W. Wiley Post Way Ste 250 Salt Lake City, UT 84116-2801 12. Splicer Plus Inc. $642,827 Attn: Officer, Manager, Authorized Agent 867 FM 1138 Royse City, TX 75189-4160 13. Workforce7 Inc. $640,000 Attn: Officer, Manager, Authorized Agent 4226a White Plains Rd #3 Bronx, NY 10466-3016 14. Vertiv Corporation $629,970 Attn: Officer, Manager, Authorized Agent 505 N Cleveland Avenue Westerville, OH 43082 15. Triple-X Connections Corp. $497,234 Attn: Officer, Manager, Authorized Agent 2244 Victoria Dr Davenport, FL 33837-1711 16. Asata Telecom LLC $485,000 Attn: Officer, Manager, Authorized Agent 8 Tice Rd Apt 113 Franklin Lks, NJ 07417-1468 17. Work Zone Contractors LLC $458,652 Attn: Officer, Manager, Authorized Agent 1222 Delsea Dr Unit A Westville, NJ 08093-2227 18. High Point Utilities, L.L.C. $342,944 Attn: Officer, Manager, Authorized Agent 150 Ryerson Ave Wayne, NJ 07470-7214 19. MPEG Communications Corp. $333,333 Attn: Officer, Manager, Authorized Agent 980 N Federal Hwy Ste 100 Boca Raton, FL 33432-2704 20. Phase One Communications, LLC $332,541 Attn: Officer, Manager, Authorized Person 28 W Sandford Blvd Mount Vernon, NY 10550-4416 FAIRFIELD SENTRY: Bank J. Safra Loses Bid to Dismiss Adversary Case ------------------------------------------------------------------- The Honorable John P. Mastando III of the United States Bankruptcy Court for the Southern District of New York denied the motion of Bank J. Safra Sarasin AG, f/k/a Bank Sarasin & Cie ("BJSS" or "Defendant"), to dismiss the fifth amended complaint in the adversary proceeding captioned as FAIRFIELD SENTRY LTD. (In Liquidation), et al., Plaintiffs, v. ABN AMRO SCHWEIZ AG a/k/a AMRO (SWITZERLAND) AG, et al., Defendants, Adv. Pro. No. 10-03636 (Bankr. S.D.N.Y.) for lack of personal jurisdiction. This adversary proceeding was filed on Sept. 21, 2010. Kenneth M. Krys and Greig Mitchell, in their capacities as the duly appointed Liquidators and Foreign Representatives of Fairfield Sentry Limited (In Liquidation), Fairfield Sigma Limited (In Liquidation), and Fairfield Lambda Limited (In Liquidation) filed the Amended Complaint on Aug. 12, 2021. Via the Amended Complaint, the Liquidators seek the imposition of a constructive trust and recovery of over $1.7 billion in redemption payments made by Sentry, Sigma, and Lambda to various entities known as the Citco Subscribers. Of that amount, Defendant allegedly received over $4.6 million through redemption payments from its investment in Sentry and Sigma. The Amended Complaint alleges that investors received payments on account of their shares in the Fairfield Funds based on a highly-inflated Net Asset Value. The Citco Subscribers and the beneficial shareholders were allegedly such investors. This adversary proceeding arises out of the decades-long effort to recover assets of the Bernard L. Madoff Investment Securities LLC Ponzi scheme. The Citco Subscribers allegedly invested, either for their own account or for the account of others, into several funds -- including Sentry, Sigma, and Lambda -- that channeled investments into BLMIS. Fairfield Sentry was a direct feeder fund in that it was established for the purpose of bringing investors into BLMIS, thereby allowing Madoff's scheme to continue. Fairfield Sigma and Lambda, in contrast, were indirect feeder funds, established to facilitate investment in BLMIS through Fairfield Sentry for foreign currencies. BLMIS used investments from feeder funds, like the Fairfield Funds, to satisfy redemption requests from other investors in the scheme. Without new investors, BLMIS would have been unable to make payments to those who chose to withdraw their investments, and the scheme would have fallen apart. BJSS is a corporate entity organized under the laws of Switzerland with a registered address in Basel, Switzerland. BJSS allegedly invested into and redeemed shares of Sentry and Sigma through several companies within the Citco corporate family. It invested in two Fairfield feeder funds -- Sentry and Sigma -- in 2007 via the Citco Subscriber, which is alleged to have facilitated investments in the Fairfield Funds for numerous shareholders in this proceeding. Defendant has moved to dismiss the Amended Complaint for lack of personal jurisdiction, arguing that the Amended Complaint has not sufficiently alleged minimum contacts with the forum to establish personal jurisdiction over Defendant and that exercising personal jurisdiction would be unreasonable. The Liquidators argue that exercising jurisdiction over Defendant would be reasonable and that Defendant's contacts with the United States, through its own actions and those of its purported agent, in knowingly and intentionally investing in Sentry, using U.S. correspondent accounts to invest in and receive payments from Sentry, and conducting other business activities support personal jurisdiction. Defendant's selection and use, through its agent, of U.S. correspondent accounts, due diligence, and communications with FGG concerning investments with BLMIS in New York support the Court's exercise of jurisdiction over the claims for receiving redemption payments from the Fairfield Funds with the knowledge that the NAV was wrong. The contacts are not random, isolated, or fortuitous. The contacts demonstrate BJSS's purposeful activities aimed at New York in order to effectuate transfers from Sentry and Sigma. The Plaintiffs have thus provided allegations and supporting documentation that sufficiently support a prima facie showing of jurisdiction over the Defendant, the Court concludes. The Court finds the Defendant's contacts with the United States, in investing in, in communications with, and redemptions from the Fairfield Funds, form a "sufficiently close link" between the defendant, the forum and the litigation concerning Defendant's activities in the forum. According to the Court, in this case, the Defendant presumes but fails to establish that the Plaintiffs have no legitimate interest in obtaining relief in the United States -- especially considering that this dispute stems from a Chapter 15 proceeding that has intimate connections to the New York-based BLMIS Ponzi scheme. Defendant has not demonstrated how this forum would fail to provide effective relief. The Defendant has not established that the Court's exercise of personal jurisdiction over it would be unreasonable. The Court finds that exercising jurisdiction over the Defendant is reasonable and comports with traditional notions of fair play and substantial justice . A copy of the Court's decision is available at https://urlcurt.com/u?l=1DyZEO from PacerMonitor.com. Attorneys for Defendant, Bank J. Safra Sarasin AG, f/k/a Bank Sarasin & Cie: Andrew J. Finn, Esq. Mark Makar, Esq. Jeffrey T. Scott, Esq. SULLIVAN & CROMWELL LLP 125 Broad Street New York, NY 10004 E-mail: finna@sullcrom.com scottj@sullcrom.com Attorneys for the Plaintiffs, Joint Liquidators: Jeffrey L. Jonas, Esq. David J. Molton, Esq. Marek P. Krzyzowski, Esq. BROWN RUDNICK LLP Seven Times Square New York, NY 10036 E-mail: jjonas@brownrudnick.com mkrzyzowski@brownrudnick.com About Fairfield Sentry Fairfield Sentry Limited is being liquidated under the supervision of the Commercial Division of the High Court of Justice in the British Virgin Islands. It is one of the funds owned by the Fairfield Greenwich Group, an investment firm founded in 1983 in New York. Fairfield Sentry and other Greenwich funds had among the largest exposures to the Bernard L. Madoff fraud. Fairfield Sentry became the subject of a BVI liquidation, and a BVI court appointed Kenneth M. Krys and Greig Mitchell as Liquidators and Foreign Representatives of Fairfield Sentry and Fairfield Sigma under BVI law. The Liquidators then sought recognition of the BVI liquidation as a foreign main proceeding by filing petitions under Chapter 15 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 10-13164) on June 14, 2010 in the Southern District of New York. The Bankruptcy Court entered an order granting recognition of the Fairfield Sentry case on July 22, 2010, enabling the Liquidators to use the U.S. Bankruptcy Court to protect and administer Fairfield Sentry's assets in the U.S. FALL CREEK: Court Values Marine FC's Secured Claim at $3,794,314.89 ------------------------------------------------------------------- Judge Benjamin A. Kahn of the United States Bankruptcy Court for the Middle District of North Carolina entered an order valuing the secured claim of Marine Federal Credit Union in the bankruptcy case of Fall Creek One, LLC at $3,794,314.89. Prepetition, in October 2022, Debtor purchased real property located at 1105 Fall Creek Road, Purlear, North Carolina for $3,000,000.00. To finance this purchase, Debtor executed a promissory note in favor of Creditor in the original principal amount of $1,950,000.00. The promissory note is secured by a deed of trust on the Real Property. In October 2022, Debtor refinanced its obligation to Creditor and entered a promissory note in the original principal amount of $4,438,000.00 to fund the costs of renovating preexisting cabins, constructing ten glamping pods, and constructing treehouses, all of which were to be located on the Real Property and used as short-term rental properties. This promissory note granted Creditor a lien on substantially all of Debtor's now-owned and after acquired personal property. Debtor ceased making loan payments to Creditor in November 2023, and Debtor's chapter 11 filing followed. On Dec. 18, 2024, Creditor filed Claim No. 5, asserting a secured claim in the amount of $4,310,000.00, an unsecured claim in the amount of $598,937.00, and a total claim in the amount of $4,908,937.00. On Jan. 7, 2025, Debtor filed its Plan of Reorganization, proposing to retain the Collateral and treat Creditor's claim as secured in the amount of $2,000,000.00. It contends in the Plan that this amount represents the fair market value of the Collateral as of the effective date of the Plan. On Jan. 14, 2025, Creditor filed the motion, seeking a determination of the value of the Collateral at an amount of at least $4,100,000.00. Creditor's witness appraised the collateral at a value of $4,360,000.00, while Debtor's witness appraised the Collateral at a value of $2,460,000.00. Creditor's appraiser testified that the appropriate twelve-month period to consider for purposes of current valuation was after completion of the improvements and stabilization of income. This testimony was credible, and the Court accepts it. The record indicates that this twelve-month period will begin four months after confirmation, or October 2025. In the Disclosure Statement, Debtor projects that its gross income for the year beginning October 2025 and ending September 2026 will be $799,904.18. Debtor projects that its total expenses for that same period will be $430,015.26. Thus, Debtor's projected net income for this twelve-month period is $369,888.82. Applying the nine percent capitalization rate, to which each expert agreed, to this figure results in a present value of $4,109,876.89. Deducting from this value the costs to complete the Development Plans of $315,562.00, yields a fair market value of the Collateral under the income approach of $3,794,314.89. According to the Court, this conclusion is consistent with the actual price paid by Debtor to obtain the property, giving additional consideration to improvements that have been made. A copy of the Court's decision is available at https://urlcurt.com/u?l=4c06zm from PacerMonitor.com. About Fall Creek One Fall Creek One, LLC, is a North Carolina limited liability company, established to acquire real property located in Purlear, Wilkes County, N.C. The Debtor filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-80221) on Sept. 27, 2024, listing $1 million to $10 million in both assets and liabilities. The petition was signed by Anthony H. Dilweg as manager. Judge Benjamin A. Kahn oversees the case. The Debtor is represented by: Laurie B. Biggs Biggs Law Firm PLLC Tel: 919-375-8040 Email: lbiggs@biggslawnc.com FIRSTBASE.IO: Wins Summary Judgment Bid in Harbor Adversary Case ---------------------------------------------------------------- Judge Lisa G. Beckerman of the United States Bankruptcy Court for the Southern District of New York granted Firstbase.io, Inc.'s motion for summary judgment in the adversary proceeding captioned as FIRSTBASE.IO, INC., Plaintiff, v. HARBOR BUSINESS COMPLIANCE CORPORATION, Defendant, Adv. Proc. No. 24-04043 (Bankr. S.D.N.Y.). On Dec. 12, 2024, debtor and debtor-in-possession Firstbase.io, Inc. filed a complaint seeking avoidance of a judgment lien held by Harbor Business Compliance Corporation as a preference and reclassifying the secured claim asserted by Harbor as an unsecured claim. The motions for summary judgment filed by Firstbase.io and Harbor require the Court to determine if Harbor's lien which it asserts arises under NY CPLR Sec. 5202 is a judicial lien under 11 U.S.C. Sec. 101(36). In its motion for summary judgment, Harbor argues that it has a statutory lien since the lien under NY CPLR Sec. 5202(a) arose automatically, without court intervention, upon delivery of an execution to a sheriff. The Court believes that Harbor's lien is clearly based on judicial action since, under NY CPLR Sec. 105, there must be a money judgment rendered in order for a person to be a judgment creditor. In this case, the monetary judgment was issued by the United States District Court for the Eastern District of Pennsylvania. Therefore, the Court rules that Harbor's lien is a judicial lien and not a statutory lien. Accordingly, it denies Harbor's motion for summary judgment. A copy of the Court's decision is available at https://urlcurt.com/u?l=lPWXyT from PacerMonitor.com. Counsel for Firstbase.io, Inc.: Dawn Kirby, Esq. Dana Patricia Brescia, Esq. KIRBY AISNER & CURLEY LLP 700 Post Road, Suite 237 Scarsdale, NY 10583 E-mail: dkirby@kacllp.com Counsel for Harbor Business Compliance Corporation: Mark F. Skapof, Esq. Matthew Faranda-Dierich, Esq. ROYER COOPER COHEN BRAUNFELD LLC 1120 Avenue of the Americas 4th Floor New York, NY 11102 E-mail: mskapof@rccblaw.com mfd@rccblaw.com About Firstbase.io Inc. Firstbase.io, Inc. is a technology company that provides business formation services. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11647) with $1 million to $10 million in assets and $10 million to $50 million in liabilities. Judge Lisa G. Beckerman oversees the case. The Debtor is represented by Dawn Kirby, Esq., at Kirby Aisner & Curley, LLP. FLUENT INC: Posts $8.3M Q1 Loss as Revenue Falls 16% to $55.2M -------------------------------------------------------------- Fluent Inc. reported in its 10-Q filing with the Securities and Exchange Commission a net loss of $8.27 million for Q1 2025, widening from a $6.28 million loss in the same period last year. The Company's revenue fell 16% to $55.21 million in the quarter. According to Fluent Inc., its performance declined because fewer people used its media platforms, caused by regulations and intermittent difficulties sourcing traffic from social media sites. With its borrowing options limited under the current credit facility, the Company warned that it could face liquidity issues if its business results continue to decline. As of March 31, 2025, the Company had $77.49 million in total assets, $55.46 million in total liabilities, and $22.04 million in total shareholders' equity. As of March 31, 2025, the Company had cash, cash equivalents, and restricted cash of $6.1 million, a decrease of $4.6 million from $10.7 million as of Dec. 31, 2024. Facing persistent profitability challenges, Fluent Inc. cut jobs during the first quarter of 2025 and renegotiated long-term contracts to better match its financial performance and cash flow needs. The Company said it will continue evaluating its business units for potential divestitures and may implement additional cost-cutting measures and resource reallocations to stay within budget and maintain liquidity. Fluent Inc. warned in the report that if current plans are not successful, it may explore strategic alternatives such as debt restructuring, new financing, asset sales, and other strategic transactions. The Company has historically relied on funding from insiders, but noted that continued support is uncertain. Furthermore, the perception that the Company may struggle to remain as a going concern could prompt publishers, vendors, advertisers, and other clients -- both current and prospective -- to reassess their business relationships and terms. The Company said it may implement cost-cutting measures if it fails to secure enough capital to sustain current operations but cautioned there's no assurance such actions would be effective. As a result, management has concluded that there is substantial doubt about the Company's ability to continue as a going concern for one year after the date of issuance of this Quarterly Report on Form 10-Q. "There can be no assurance that other capital will be available when needed or that, if available, it will be obtained on terms favorable to us and our stockholders." the Company stated. "Disruptions in the global equity and credit markets may also limit our ability to access capital. If we are unable to raise additional capital when required or on acceptable terms, we may have to significantly delay, scale back or discontinue certain operations. Any of these events could significantly harm our business and results of operations." The complete text of the Form 10-Q is available for free at: https://www.sec.gov/Archives/edgar/data/1460329/000143774925017449/flnt20250331_10q.htm About Fluent Inc. Fluent, Inc. -- https://www.fluentco.com -- Fluent, Inc. provides commerce media solutions that connect brands with consumers through customer acquisition and digital marketing campaigns. The Company utilizes proprietary machine learning, first-party data, and diverse ad inventory across partner ecosystems and owned sites. Headquartered in the U.S., Fluent has operated in the performance marketing sector since 2010. GARVEY D JONASSAINT: BNY, et al. Win Bid for Automatic Stay Relief ------------------------------------------------------------------ The United States Bankruptcy Court for the Eastern District of Pennsylvania granted the motion of The Bank of New York Mellon FKA The Bank of New York, as Trustee for the certificateholders of the CWALT, Inc., Alternative Loan Trust 2006-OA 10 Mortgage Pass-Through Certificates, Series 2006-OA10 and any successor in interest, for relief from automatic stay in the bankruptcy case of Garvey D. Jonassaint. The automatic stay of all proceedings, as provided under Sec. 362 of the Bankruptcy Code, is modified to allow the movant to proceed with it under state and federal law concerning the property located at 1913 Parkerhill Ln, Chester Springs, PA 19425. A copy of the Court's decision is available at https://urlcurt.com/u?l=GFa6Az from PacerMonitor.com. Garvey D Jonassaint filed for Chapter 11 bankruptcy protection (Bankr. E.D. Pa. Case No. 21-12978) on November 2, 2021, listing under $1 million in both assets and liabilities. The Debtor is represented by Robert Lohr, Esq., at LOHR & ASSOCIATES, LTD. GC CHAMPION: Monroe Capital Marks $2MM Secured Loan at 32% Off -------------------------------------------------------------- Monroe Capital Corporation has marked its $2,082,000 loan extended to GC Champion Acquisition LLC to market at $1,419,000 or 68% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to GC Champion Acquisition LLC. The loan accrues interest at a rate of 9.3% per annum. The loan matures on August 18, 2028. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About GC Champion Acquisition LLC GC Champion Acquisition LLC is engaged in providing financial products and investment to the fire industry in the U.S. GENEVER HOLDINGS: Summary Judgment Bid in AIG Suit Granted in Part ------------------------------------------------------------------ Judge Julie A. Manning of the United States Bankruptcy Court for the District of Connecticut granted in part Genever Holdings LLC's motion for partial summary judgment in the adversary proceeding captioned as GENEVER HOLDINGS LLC, Plaintiff v. AIG PROPERTY CASUALTY COMPANY, Defendant, Adv. P. No. 23-05007 (Bankr. D. Conn.). The motion seeks partial summary judgment on the fourth claim for relief in the amended complaint filed in this adversary proceeding. In particular, it seeks declaratory judgment that defendant AIG has a duty to pay Genever's property losses under the terms of a certain insurance policy in relation to a fire in a certain luxury residential apartment at the Sherry-Netherland Hotel in New York, New York. Genever is a New York limited liability company. When Genever filed its bankruptcy petition, Mr. Ho Wan Kwok was the sole owner of Genever Parent. Genever's sole business purpose is holding the Apartment pursuant to the terms of a proprietary lease entered into between Genever and the Sherry-Netherland, a cooperative housing corporation located at 781 Fifth Avenue, New York, New York 10022. The Apartment is comprised of all apartment space on the 18th floor at the Sherry-Netherland. In accordance with the Proprietary Lease, Mr. Kwok and other members of his family reside at the Apartment. Early on the morning of March 15, 2023, Mr. Kwok was arrested by the Federal Bureau of Investigation at the Apartment in relation to a criminal indictment. Later that day, while the FBI was searching the Apartment, the Fire broke out in the Apartment. At the time of the Fire, AIG insured Genever for the term March 6, 2023, through March 6, 2024, against, among other things, property loss in relation to the Apartment. On May 12, 2023, Genever commenced the adversary proceeding with a complaint alleging, among other things, AIG had improperly canceled the Policy and declined coverage for loss resulting from the Fire. The complaint has been subsequently amended. The amended complaint states five claims for relief: 1. The first claim alleging AIG breached contract by cancelling certain insurance policies, among them the Policy, and seeking monetary damages and injunctive relief; 2. The second claim alleging AIG breached contract by denying coverage under certain insurance policies, among them the Policy, and seeking monetary damages; 3. The third claim seeking declaratory judgment that AIG's stated bases for cancellation are factually and legally deficient and, hence, certain insurance policies, among them the Policy, remain in effect for their stated term; 4. The fourth claim seeking declaratory judgment that AIG has a duty under certain insurance policies, among them the Policy, to cover Genever's losses, including but not limited to property losses, in relation to the Fire; and 5. The fifth claim alleging AIG breached the duty of good faith and fair dealing by cancelling certain insurance policies, among them the Policy, and seeking to delay coverage under certain insurance policies, among them the Policy, to provide time to find a reason to deny coverage or to delay payment of Genever's claim and seeking monetary damages, punitive damages, costs of suit, and reasonable attorneys' fees. As a matter of law, the Court concludes Genever has made its prima facie case upon the undisputed facts for all-risk coverage of the loss to the Apartment, including certain contents of the Apartment, namely, additions, alterations, items of real property, installations or fixtures attached to the Apartment, caused by the Fire. AIG has failed to demonstrate the existence of a genuine dispute of material fact regarding its defenses to such coverage. Accordingly, Genever is entitled to declaratory judgment that the loss to the Apartment, including certain contents of the Apartment, namely, additions, alterations, items of real property, installations or fixtures attached to the Apartment, caused by the Fire is covered by the Policy. Furthermore, as a matter of law, Genever has also established two elements of its prima facie case upon the undisputed facts for all-risk coverage of the loss to the other contents of the Apartment, namely, personal property owned by or in the possession of Genever, caused by the Fire. The Court enters partial summary judgment with respect to Genever's fourth claim asserted in the amended complaint. Under the Property Coverage of the Policy, AIG has a duty to pay Genever's losses to the Apartment, including certain contents of the Apartment, namely, additions, alterations, items of real property, installations or fixtures attached to the Apartment, caused by the Fire. With respect to loss of other contents of the Apartment, namely, personal property owned by or in the possession of Genever, if Genever establishes an insurable interest, the burden will shift to AIG to show the loss of such contents is excluded from coverage. A copy of the Court's decision is available at https://urlcurt.com/u?l=SJ8iJC from PacerMonitor.com. Counsel for Movant Genever Holdings LLC, Plaintiff: Michael T. McCormack, Esq. Timothy P. Jensen, Esq. Amy E. Markim, Esq. O'Sullivan McCormack Jensen & Bliss PC 180 Glastonbury Boulevard, Suite 210 Glastonbury, CT 06033 E-mail: mmccormack@omjblaw.com tjensen@omjblaw.com amarkim@omjblaw.com Counsel for Respondent AIG Property Casualty Company, Defendant: John F. O'Connor, Esq. Steptoe & Johnson LLP 1130 Connecticut Avenue, N.W. Washington, DC 20036 E-mail: joconnor@steptoe.com - and - Michael P. Thompson, Esq. Gordon Rees Scully Mansukhani LLP 95 Glastonbury Boulevard, Suite 206 Glastonbury, CT 06033 E-mail: mpthompson@grsm.com About Ho Wan Kwok Ho Wan Kwok sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Conn. Case No. 22-50073) on Feb. 15, 2022. Judge Julie A. Manning oversees the case. Dylan Kletter, Esq., is the Debtor's legal counsel. Ho Wan Kwok aka Guo Wengui is an exiled Chinese businessman. According to Reuters, Guo was a former real estate magnate who fled China for the U.S. in 2014 ahead of corruption charges. Guo filed for bankruptcy after a New York court ordered him to pay lender Pacific Alliance Asia Opportunity Fund $254 million stemming from a contract dispute. PAX had initially loaned two of Guo's companies $100 million in 2008 for a construction project in Beijing and sued Guo when he failed to pay off the loan. An Official Committee of Unsecured Creditors has been appointed in the case and is represented by Pullman & Comley, LLC. Luc A. Despins was appointed Chapter 11 Trustee in the case. GIRARD HOUSE: Unsecured Creditors to Get Nothing in Plan -------------------------------------------------------- Girard House Cooperative, LCA, submitted an Amended Disclosure Statement for Amended Chapter 11 Plan dated May 6, 2025. The Plan provides for the Debtor to sell its Property to Mi Casa, Inc., with closing on or before June 30, 2025. Proceeds from the sale to Mi Casa will be used to pay the existing first trust lien (Class 3 the Noteholder). Additional funding for Plan obligations will come from the DHCD award. A subordinated loan made by the District of Columbia for acquisition of the Debtor's Property will, by agreement of the District, remain subordinate to new financing obtained by Mi Casa. The Debtor and Mi Casa have entered into a Contract of Purchase and Sale originally dated December 20, 2024. As amended, that contract provides for a gross sales price of $4,500,000. The sale is expected to be accomplished pursuant to the provisions of the Chapter 11 Plan as presently stated and as it may be amended. Bankruptcy law (Section 1146 of the Bankruptcy Code) exempts such sales from transfer taxes, saving roughly $130,500 that would otherwise be due to the District of Columbia upon sale of the Debtor's Property. Bankruptcy sales are likewise exempt from the provisions of the District of Columbia Tenant Opportunity to Purchase Act ("TOPA"). The District of Columbia, acting through its Department of Housing and Community Development ("DHCD"), has a secured claim (Class 3, the "DHCD Loan") for its loan to the Debtor for the acquisition of the Debtor's Property. The DHCD Loan was for $2,027,509 and is secured by a second priority lien against the Debtor's Property. By an intercreditor agreement dated January 31, 2020 originally between DHCD and United Bank, as amended on April 13, 2023 to reflect an increase in the amount of the loan from United Bank to the Debtor, the DHCD Loan is subordinated to the claim now held by 744 WDC. The Debtor's Plan provides that the Class 3 creditor's deed of trust shall remain of record against the Property, but by agreement of DHCD shall be subordinate to new financing to be placed by Mi Casa upon closing on its purchase of the Debtor's Property. Terms for payment of the Class 3 obligation shall remain as in the original promissory note from the Debtor to DHCD, providing for payments to DHCD as cash flow of the Property permits. Class 4 consists of the claims of the District of Columbia Department of Buildings ("DOB") for housing code violations occurring prior to the filing of the Debtor's bankruptcy, as reflected in lien notices filed with the District of Columbia Recorder of Deeds. Inasmuch as the Class 4 claims are subordinate to the secured claims of 744 WDC and DHCD, there is no equity in the Debtor's Property to secure the DOB's claims. The Plan accordingly treats the DOB claims as unsecured. As with other unsecured claims in this case, no payment is proposed on account of these claims. Class 5 consists of the pre-petition unsecured claim of Mi Casa, Inc. for development fees incurred in assisting the Debtor in the acquisition and renovation of its Property. This claim shall not be paid. No other general unsecured creditors are known. Upon the establishment of the Cooperative, in exchange for payment of an initial membership fee some residents became members of the Cooperative. The Plan classifies those member interests as Class 6. It provides that those equity interests of the Debtor's shareholders shall be canceled upon the Effective Date of the Plan. However, for so long as they remain residents in the Debtor's Property, Members will continue to benefit from Mi Casa's commitment to maintain the Property as affordable housing. Funding for the Plan will come primarily from two sources: * The sale by the Debtor to Mi Casa of the Debtor's Property, for $4,500,000. * Funds allocated to the Debtor by DHCD, in the anticipated amount of approximately $1,788,417.00. That funding is in the form of a "recoverable grant," with repayment required if the Debtor's Property is sold (subsequent to a sale to Mi Casa) or refinanced, or when and if the Property achieves 1.15 debt service coverage ratio. A full-text copy of the Amended Disclosure Statement dated May 6, 2025 is available at https://urlcurt.com/u?l=8MbkdR from PacerMonitor.com at no charge. Girard House Cooperative, LCA is represented by: David E. Lynn, Esq. DAVID E. LYNN, P.C. 15245 Shady Grove Road, Suite 465 North Rockville, MD 20850 Phone: (301) 255-0100 Email: davidlynn@verizon.net About Girard House Cooperative Girard House is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Girard House Cooperative, LCA filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.D.C. Case No. 24-00260) on July 19, 2024, listing $1 million to $10 million in both assets and liabilities. The petition was signed by Hilda Ziegler, Board President. Judge Elizabeth L Gunn presides over the case. David E. Lynn, Esq., at DAVID E. LYNN, P.C., is the Debtor's counsel. H&H COFFEE: Neumann Responds to Renewed Receivership Bid -------------------------------------------------------- In the case styled, NEUMANN GRUPPE USA, INC. f/k/a ROTHFOS CORPORATION, a New York Corporation, Plaintiff v. H&H COFFEE INVESTMENTS, LLC, a Florida Limited Liability Company, H&H COFFEE GROUP EXPORT CORP., a Florida Corporation, CACHITA LATINA RADIO CORP., a Florida Corporation, CACHITA UNIVERSAL STUDIOS INC., a Florida Corporation, ENTV USA CR PUBLISHING CORP., a Florida Corporation, and ENTV USA INC., a Florida Corporation, Defendants, Case No. 1:22-cv-24000-JB (S.D. Fla.), the Plaintiff filed a response in support of its renewed motion to appoint a receiver over the mortgaged real property. On May 2, 2025, Plaintiff Neumann Gruppe filed a renewed motion for the appointment of a receiver. On May 16, Defendant H&H Coffee Investments filed its opposition. Since then, not only has H&H failed to submit the overdue, Court-ordered certified rent roll and expense reports dating back to December 2024, but H&H has missed the May 15, 2025 reporting deadline too. Two foreclosure actions brought by senior lien holders remain pending in Florida Circuit Court against the Mortgaged Real Property; default interest continues to accrue in those cases every passing day to Plaintiff's detriment as the junior lien holder. And two new facts have come to light after H&H filed its opposition that further support granting Plaintiff's motion: (1) this Court entered final judgment against all Defendants, including foreclosure on the Mortgaged Real Property, and (2) counsel for the Defendants intend to seek leave to withdraw from their representation because, in their words, they "have lost contact with our client." In sum, the Plaintiff believes this confluence of factors presents an exceptionally compelling case for the imposition of a receiver to "preserve and protect property." The Plaintiff asserts additional factors favor appointing a receiver in this case: 1. For months, H&H has not provided Court-ordered financial information about the Mortgaged Real Property, even though the property is currently actively being used for business purposes. 2. H&H's counsel says that they have "lost contact with our client." As a result, Plaintiff is unlikely to receive the Court-ordered rent roll and expense data, and neither Plaintiff nor the Court has any assurance that H&H -- which will soon have no interest in the property and will receive no equity from the foreclosure sale -- is not committing waste or diverting rents. 3. Two senior lien holders have pending foreclosure actions against the Mortgaged Real Property in which they claim that they are owed default interest as well as costs, which, if permitted by the Florida Circuit Court, will come out of Plaintiff's pocket as the third-position lien holder on the Mortgaged Real Property. Plaintiff contends legal remedies are inadequate because the judgment against Defendant, which is in excess of $31 million, far exceeds the fair market value of the Mortgaged Real Property, which is approximately $16.5 million. H&H Coffee Investments, LLC owns the Mortgaged Real Property and appurtenant personal and intangible property. The Plaintiff is represented by: Jason P. Hernandez, Esq. Jose G. Sepulveda, Esq. Matthew M. Graham, Esq. Ryan M. Wolis, Esq. STEARNS WEAVER MILLER WEISSLER ALHADEFF & SITTERSON, P.A. 150 West Flagler Street Miami, FL 33130 Telephone: (305) 789-3200 E-mail: jhernandez@stearnsweaver.com jsepulveda@stearnsweaver.com mgraham@stearnsweaver.com rwolis@stearnsweaver.com Defendant H&H Coffee Investments, LLC is represented by Luis Eduardo Suarez, Esq. -- lsuarez@hsmpa.com -- at Heise Suarez Melville PA. HERMES HIPPIE: Aventura Lending Seeks Appointment of Receiver ------------------------------------------------------------- In the case styled AVENTURA LENDING LLC, Plaintiff v. THE HERMES HIPPIE LLC; LOLA GUSMAN; THE BOARD OF MANAGERS OF THE ONE GRAND ARMY PLAZA CONDOMINIUM, ON BEHALF OF THE UNIT OWNERS; CITY OF NEW YORK, DEPARTMENT OF FINANCE; "JOHN DOE" and "JANE DOE," the last two names being fictitious, said parties intended being tenants or occupants, if any, having or claiming an interest in, or lien upon, Defendants, Case No. 1:24-cv-02438-ENV-LKE (E.D.N.Y.), the Plaintiff seeks the appointment of a receiver to take control of the property located at 1 Grand Army Plaza, #4, Brooklyn, New York. This is an action brought pursuant to New York Real Property Actions and Proceedings Law, Section 1301 et seq., to foreclose on a mortgage encumbering the property commonly known as 1 Grand Army Plaza. On or about July 12, 2022, Hermes Hippie executed and delivered a note to Lending Assets LLC in the amount of $2,560,000. Pursuant to the terms of the Note, Hermes Hippie promised to pay the Lender, or the subsequent holder of the Note, the principal sum of $2,560,000. The Plaintiff asserts Hermes Hippie failed to comply with the terms and provisions of the mortgage and instruments secured by the Mortgage and is in default thereof, by failing to pay the common charges imposed by One Grand Army Plaza due against the Property pursuant to Section 21 of the Mortgage, and the default continues to date. Additionally, the loan matured on January 1, 2024. Aventura Lending is a single-member limited liability company. Aventura Lending's sole member is Consolidated Industries LLC. Consolidated Industries LLC is a two-member limited liability company. The Hermes Hippie LLC is a single-member limited liability company formed and registered in the State of New York. The Plaintiff is represented by: Danielle Light, Esq. HASBANI & LIGHT, P.C. 450 Seventh Avenue, Ste 1408 New York, NY 10123 Telephone: (212) 643-6677 E-mail: dlight@hasbanilight.com HOOK ROAD: Case Summary & One Unsecured Creditor ------------------------------------------------ Debtor: Hook Road, LLC 20 Hook Road Bedford, NY 10506 Business Description: Hook Road, LLC, a real estate lessor, owns the property at 20 Hook Road in Bedford, New York, which the Debtor estimates to be worth $1.31 million, based on a broker's price opinion. Chapter 11 Petition Date: May 27, 2025 Court: United States Bankruptcy Court Southern District of New York Case No.: 25-22460 Judge: Hon. Sean H Lane Debtor's Counsel: H Bruce Bronson, Esq. BRONSON LAW OFFICES PC 480 Mamaroneck Ave Harrison, NY 10528 Tel: (914) 269-2530 Fax: (888) 908-6906 E-mail: hbbronson@bronsonlaw.net Total Assets: $1,313,000 Estimated Liabilities: $601,000 The petition was signed by Paul Foley as manager. Rodriguez-McCloskey LLC, located at 32 Court Street in Brooklyn, was listed as the sole unsecured creditor in the case, with a claim tied to legal fees and related costs. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/FU33YCI/Hook_Road_LLC__nysbke-25-22460__0001.0.pdf?mcid=tGE4TAMA HOSPITALITY AT YORK: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------------- The U.S. Trustee for Region 3 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Hospitality at York, LLC. About Hospitality at York Hospitality at York, LLC operates the Holiday Inn Express, a hotel located at 18 Cinema Drive, York, Pa. Hospitality at York sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Pa. Case No. 25-00938) on April 7, 2025. In its petition, the Debtor reported total assets of $7,569,000 and total liabilities of $6,744,840. Judge Henry W. Van Eck handles the case. The Debtor is represented by Lawrence V. Young, Esq. at CGA Law Firm. INDEPENDENCE BUYER: Monroe Marks $1.4M Secured Loan at 94% Offf --------------------------------------------------------------- Monroe Capital Corporation has marked its $1,423,000 loan extended to Independence Buyer, Inc. to market at $84,000 or 6% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to Independence Buyer, Inc. The loan accrues interest at a rate of 10.07% per annum. The loan matures on August 3, 2026. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About Independence Buyer, Inc. Independence Buyer, Inc. is a construction company that specializes in various projects, including residential, commercial, and industrial construction in the U.S. INDICOR LLC: Moody's Cuts Rating on Sec. Bank Credit Facility to B2 ------------------------------------------------------------------- Moody's Ratings affirmed the B2 corporate family rating and B2-PD probability of default rating of Indicor, LLC. Moody's also downgraded the company's senior secured bank credit facility rating to B2 from B1. At the same time, Moody's assigned a B2 rating to Indicor's proposed $300 million senior secured revolving credit facility with maturity date in May 2029. Moody's will withdraw the rating on the existing $300 million senior secured revolving credit facility with maturity date in November 2027 once the proposed transaction closes. The outlook remains stable. The actions are taken as Indicor seeks to issue a $475 million-equivalent fungible add-on to its dollar- and euro-denominated senior secured term loans. The company intends to use the proceeds from the fungible add-on to refinance its $475 million second lien term loan. Therefore, the refinancing transaction will not increase its total debt level. The affirmation of the CFR reflects Moody's expectations that Indicor will maintain its good market position and solid operating margin while steadily lowering its high financial leverage. The affirmation also considers the company's good liquidity. The downgrade of the senior secured bank credit facility rating reflects that after the refinancing transaction Indicor's debt capital structure will primarily consist of a senior secured revolving credit facility expiring in 2029 and two senior secured term loans maturing in 2029. The bank credit facility is rated in line with the company's B2 CFR because the bank credit facility comprises the preponderance of debt in the company's capital structure. RATINGS RATIONALE Indicor's B2 CFR reflects its good market position as a provider of preparation and testing equipment, sensors and flow control systems to a wide variety of end markets globally. Indicor has solid margins resulting from an asset-light business model and the critical nature of its products. A majority of sales are tied to products that require value added engineering or customized integration, leading to good customer retention. However, Indicor has exposure to volatile end markets, including oil and gas, that are susceptible to industrial and economic downturns. Its financial leverage is high and the company will be acquisitive as it refines its portfolio. Indicor continues to experience healthy demand in most of the end markets it sells into. As such, Moody's expects organic revenue to grow by 1.5% per year over the next 12-18 months, largely driven by pricing actions and new product launches. Moody's also expects EBITA margin to improve over the next 12-18 months, underpinned by higher pricing and cost and expense control efforts. The stable outlook reflect Moody's expectations that leverage will improve toward 6.0x over the next 12-18 months, driven by steady revenue growth and improved margins. Moody's also expects Indicor to continue to refine its portfolio and reduce its exposure to the more volatile oil and gas sector over time. Liquidity is good supported by Moody's expectations for free cash flow of more than $20 million over the next 12 months. Liquidity is further underpinned by a sizeable cash balance and nearly $300 million of availability on the company's revolving credit facility. The revolver has a maximum springing first lien secured leverage ratio of 9.7x (tested when 40% is drawn at quarter end). Moody's do not anticipate the covenant being tested over the next 12 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded with consistent revenue growth, while sustaining strong margins and Moody's expectations that debt-to-EBITDA will remain below 5.0x. Maintenance of conservative financial policies that support lower leverage would also be needed to support an upgrade. A good liquidity profile would also be expected for higher ratings, including ample revolver availability. The ratings could be downgraded if Indicor is unable to lower debt/EBITDA steadily to less than 6.7x. Additionally, if liquidity deteriorates, including diminishing revolver availability, or the company prioritizes shareholder friendly distributions, especially if funded with debt, or other aggressive financial policies including meaningful debt financed acquisitions, the ratings could be downgraded. The principal methodology used in these ratings was Manufacturing published in September 2021. Indicor, LLC has a good portfolio of brands serving the materials preparation and testing, sensors and flow control applications sectors globally. The company has a diversified portfolio of businesses carved out from the process technologies and the measurement and analytical solutions business lines of Roper Technologies in 2022. Indicor is owned by private equity sponsor Clayton, Dubilier & Rice and Roper Technologies, Inc. INH BUYER: Monroe Capital Marks $2-Mil. Secured Loan at 70% Off --------------------------------------------------------------- Monroe Capital Corporation has marked its $3,026,000 loan extended to INH Buyer, Inc. to market at $906,000 or 30% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to INH Buyer, Inc. The loan accrues interest at a rate of 4.40% Cash/7.00% PIK per annum. The loan matures on June 28, 2028. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About INH Buyer, Inc. Danbury, Conn.-based IMS Health, Inc. provides critical sales and other market intelligence primarily to pharmaceutical and biotech companies. IQSTEL INC: Begins Trading on NASDAQ Capital Market Under IQST -------------------------------------------------------------- IQSTEL Inc. announced it began trading on The NASDAQ Capital Market under the ticker symbol IQST on Wednesday, May 14th, 2025. The Company's common stock will continue to trade on the OTC Markets quotation system on the OTCQX until trading commences on The Nasdaq Capital Market tomorrow. This milestone marks a defining moment in the company's journey--from a telecom operator to a high-tech global enterprise. "We are very proud to be entering the NASDAQ national exchange," said Leandro Iglesias, CEO of IQSTEL. "This uplisting is the result of years of hard work, discipline, and a long-term vision shared by our shareholders, investors, executives, employees, partners, customers, and vendors--many of whom have supported us since our beginning in June 2018 on the OTC Markets." IQSTEL's capital markets journey began with $13.8 million in revenue in 2018. Since then, the company has grown steadily-demonstrating consistent execution, transparency, and scalable performance-with plans now to reach $1 billion in annual revenue by 2027. The NASDAQ listing is not just a culmination of that success -- it represents a new beginning, placing IQSTEL on a globally recognized stage with enhanced investor visibility and access to institutional capital. The move to NASDAQ is expected to catalyze the Company's growth trajectory, aligning its valuation with peers and enhancing its ability to attract long-term investors, execute strategic acquisitions, and drive value creation as it advances toward its goals. About iQSTEL iQSTEL Inc. is a multinational technology company that provides services across telecom, fintech, blockchain, artificial intelligence, and cybersecurity. The Company operates in 21 countries and serves a global customer base. It projects $340 million in revenue for fiscal year 2025. In an auditor's report dated March 31, 2025, Urish Popeck & Co., LLC, issued a "going concern" qualification, citing that the Company has suffered recurring losses from operations, negative working capital, and does not have an established source of revenues sufficient to cover its operating costs, which raise substantial doubt about its ability to continue as a going concern. iQSTEL ended the year on Dec. 31, 2024 with a net loss of $5,180,036, significantly widening from the $219,436 loss reported for the year ended Dec. 31, 2023. The net results of the periods reported are highly impacted by the expenses in the holding entity (IQSTEL), which has a high component of interest and other financial expenses related to the funds borrowed for the acquisition of QXTEL Limited. JACKSON HOSPITAL: Seeks to Extend Plan Exclusivity to August 2 -------------------------------------------------------------- Jackson Hospital & Clinic, Inc., and its affiliated debtors asked the U.S. Bankruptcy Court for the Middle District of Alabama to extend their exclusivity periods to file a plan of reorganization and obtain acceptance thereof to August 2 and October 1, 2025, respectively. Based on the factors and the history of these proceedings, the Debtors submit that sufficient "cause" exists pursuant to section 1121(d) of the Bankruptcy Code to extend the Exclusive Periods. The following relevant factors each weighs in favor of an extension of the Exclusive Periods: * The Debtors' Chapter 11 Cases Are Complex. While the Debtor only consists of two units, this case is still complex given the particular challenges of dealing with a financially distressed hospital and all of the unique issues that come along with a business entity dealing with life and death decisions daily. Additionally, the Debtor maintains a fairly complex corporate and capital structure, a vast network of operations, and a multitude of parties in interest, secured lenders, tort claimants, vendors, and staffing issues, among others. Therefore, this case is unquestionably large and complex. * The Debtors Have Made Good Faith Progress. In the three months since the Petition Date, the Debtors have made significant progress in stabilizing the Debtors' operations and have made progress toward an exit strategy. Moreover, the Debtors filed their Sale Motion, seeking to liquidate some or all of their assets, on April 18, 2025. The Sale Motion contains fairly tight milestones, including a bid deadline of June 16, 2025, an Auction, if needed, of June 19, 2025, a Sale Hearing on July 1, 2025 and an outside Closing Date of July 27, 2025. These tight windows and expedited relief will ensure that this case continues to progress in an efficient and productive manner. * An Extension of the Exclusive Periods Will Not Prejudice Creditors. Continued exclusivity will permit the Debtors to maintain flexibility and optionality so that competing plans do not derail the Debtors' bankruptcy process. Moreover, throughout these Chapter 11 Cases, the Debtors have had ongoing and transparent communications with their major creditor groups, including their secured lenders. Extending the Exclusive Periods will benefit the Debtors' estates, their creditors, and all other key parties in interest. Among other things, the Debtors have actively engaged with the Creditors' Committee concerning their assets and potential paths forward. * The Debtors Have Reasonable Prospects for Filing a Viable Plan. The Debtors own numerous assets that could be part of a going concern sale or reorganization in the future. Once the path forward is finalized, it will provide the roadmap around which a chapter 11 plan can be developed. The Debtors intend to continue these efforts moving forward and negotiate a consensual plan in connection therewith, thus there is a very reasonable prospect of proposing and obtaining creditor consent regarding a sustainable plan if the Exclusive Periods are extended. * An Extension Will Not Pressure Creditors. The Debtors are not seeking an extension of the Exclusive Periods to pressure or prejudice any of their stakeholders. To the contrary, the Debtors are proposing an extension of exclusivity in order to have additional time to finalize their strategy and engage with their prepetition secured lenders and other stakeholders in restructuring negotiations without the distraction, confusion, and unnecessary expense that could be created by multiple competing plans. Counsel for the Debtors: Derek F. Meek, Esq. Marc P. Solomon, Esq. Catherine T. Via, Esq. James H. Haithcock III, Esq. Burr & Forman LLP 420 20th Street North, Suite 3400 Birmingham, Alabama 35203 Telephone: (205) 251-3000 E-mail: dmeek@burr.com msolomon@burr.com jhaithcock@burr.com cvia@burr.com About Jackson Hospital & Clinic Inc. Jackson Hospital & Clinic, Inc. is a non-membership, non-profit corporation based in Alabama. JHC is the direct or indirect parent company of JHC Pharmacy, LLC, an Alabama limited liability company that provides pharmacy services to JHC patients. JHC owns 100% of JHC Pharmacy. Additionally, JHC is a direct or indirect parent company of certain other entities that have not filed for bankruptcy. JHC operates a 344-bed healthcare facility in Montgomery, Ala., with a rich history dating back to 1894. Since its official opening in 1946, JHC has grown into one of the largest hospitals in Alabama, offering specialized services in cardiac care, cancer treatment, neurosciences, orthopedics, women's care, and emergency services. JHC's service area includes 16 counties across central Alabama. JHC and JHC Pharmacy filed Chapter 11 petitions (Bankr. M.D. Ala. Lead Case No. 25-30256) on February 4, 2025. In its petition, JHC reported between $100 million and $500 million in both assets and liabilities. Judge Christopher L. Hawkins handles the cases. The Debtors are represented by Derek F. Meek, Esq. at Burr & Forman, LLP. JLM COUTURE: Seeks Approval for $700K Private Ch.11 Sale to Founder ------------------------------------------------------------------- Vince Sullivan of Law360 Bankruptcy Authority reports that on Thursday, May 22, 2025, bridal dressmaker and retailer JLM Couture filed a proposal in Delaware court for a private sale of its assets, citing dwindling funds to sustain its Chapter 11 case. The company has agreed to sell the business to its founder and CEO for $713,000, the report states. About JLM Couture Inc. JLM Couture Inc., operates a bridal design and manufacturing business in New York. It operates 12 collections, nine of which are bridal lines, one bridesmaid line and one flower girl line. JLM Couture filed its voluntary petition for relief under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Del. Case No. 23-11659) on Oct. 2, 2023, with $2,850,196 in total assets and $2,115,305 in total liabilities. Joseph L. Murphy, president, signed the petition. Judge J. Kate Stickles oversees the case. The Debtor tapped Cross & Simon, LLC, as its legal counsel. JOANN INC: To Close Remaining 440+ Stores Permanently on May 31 --------------------------------------------------------------- Mike Snider and Molly McVety of USA TODAY reports that Joann, the national fabric and craft retailer, will permanently shut down all of its stores by May 31, 2025, officially concluding over 80 years in business. According to the report, the company already closed 255 locations in April 2025 after filing for Chapter 11 bankruptcy for the second time in less than a year. Since the filing, Joann has been running going-out-of-business sales at its stores, with discounts between 70% and 90%, according to its website. Online sales have ended. Stores are also selling off fixtures, furniture, and equipment. The remaining 440+ stores will close by the end of the month, confirmed Jo Anne McCusker, spokesperson for GA Group—the retail liquidator that purchased Joann's assets during a February auction. Headquartered in Hudson, Ohio, Joann filed for bankruptcy again earlier this year and later auctioned its remaining assets. On February 22, 2025, GA Group and the company's term lenders won the bid. A full-store closure announcement followed days later, expanding on an earlier plan to close about 500 of its more than 800 stores nationwide. GA Group has a long-standing relationship with Joann, having supported the company's acquisition of competitor House of Fabrics in the 1990s and assisting in its store expansion between 2006 and 2016, according to GA Group Retail Solutions CEO Scott Carpenter. The following Joann stores in Delaware have either closed or will shut down by May 31: * 283 N. Dupont Highway, Suite F, Dover * 341 W. Main Street, Christiana Christiana Town Center representatives told Delaware Online/The News Journal they are looking for new tenants to fill the former Joann space, though no lease agreements have been finalized. No updates have been provided for the Dover location. About Joann Inc. JOANN operates in the fabric and sewing industry with one of the largest assortments of arts and crafts products. JOANN has transformed itself into a fully-integrated, digitally-connected omni-channel retailer. JOANN reported a net loss of $200.6 million for the year ended Jan. 28, 2023. On March 18, 2024, JOANN Inc. and 9 affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10418). JOANN listed $2,257,700,000 in assets against $2,440,700,000 in liabilities as of Oct. 28, 2023. Judge Craig T. Goldblatt oversees the case. The Debtors tapped Latham & Watkins, LLP as legal counsel; Houlihan Lokey Capital, Inc. as investment banker; and Alvarez & Marsal North America, LLC, as financial advisor. Kroll Restructuring Administration, LLC is the noticing agent. JOANN Inc., on April 30, 2024 successfully emerged from its court-supervised financial restructuring process. 2nd Attempt Joann Inc. sought voluntary Chapter 11 petition for the second time under U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25 10068) on Jan. 15, 2025. Kirkland & Ellis is serving as legal counsel to JOANN, with Centerview Partners LLC serving as financial advisor and Alvarez & Marsal North America, LLC serving as restructuring advisor. JW REALTY: Updates Unsecureds & Golden Leaves Claims Pay -------------------------------------------------------- JW Realty Holdings LLC submitted a First Amended Disclosure Statement describing First Amended Plan of Reorganization dated May 6, 2025. The Debtor owns a vacant parcel of land located at and known as 253 County Rt 105, Woodbury New York, block 1, lots 26.13 and 26.14 (the "Property"). The Debtor is operated by Yitzchok Weiner who has been the only member of the Debtor since its inception. The genesis of the Debtor's financial difficulties coincided with a dispute (the "Golden Leaves Dispute") that arose with its lender, Golden Leaves Management NY LLC. Thereafter, on December 15, 2022, Golden Leaves commenced a foreclosure action against the Debtor in New York State Supreme Court, Orange County (the "State Court") under Index No. EF007195 2022 (the "Foreclosure Action"). By Order dated August 23, 2023, the State Court granted Golden Leaves' Motion for Summary Judgment and an Order of Reference (the "Order"). On September 20, 2023, the Debtor appealed the underlying decision and order. On September 24, 2023, the Debtor filed a motion for leave to renew and reargue the Order. The Debtor also filed an Order to Show Cause at the Appellate Division, Second Department, under Docket No. 2023-11518, seeking to stay enforcement of the Foreclosure Court's Order pending a determination of the appeal. The Order to Show Cause was denied by Decision and Order dated May 31, 2024. The State Court issued a Judgment of Foreclosure and Sale, dated May 15, 2024 ("Judgment") in the amount of $280,000 plus interest, costs, and fees. Thereafter, Golden Leaves scheduled a foreclosure sale (the "Foreclosure Sale") of the Property for July 18, 2024. The Debtor commenced this Chapter 11 Case on July 14, 2024. The Debtor's appeal is fully perfected and awaiting decision in the Second Department Appellate Division. The Plan will be funded with the net proceeds from the sale or refinance of the Property. The sale or refinance of the Property, as applicable, following Confirmation of the Plan, shall not be subject to any stamp or similar transfer or mortgage recording tax pursuant to section 1146(a) of the Code because they be refinanced or sold under the Plan and after the Effective Date. Class 2 consists of the Disputed Golden Leaves Claim. The Disputed Golden Leaves Claim is subject to ongoing litigation. The Disputed Golden Leaves Claim in the approximate amount of $300,000, together with accrued interest at the applicable statutory or other rate as may be determined by the Bankruptcy Court, to the extent Allowed, shall be paid in full, in Cash from the Distribution Fund upon the refinance of the Property or the Sale Closing Date, whichever is sooner. Class 2 is Impaired, and Holders of the Disputed Golden Leaves Claim are entitled to vote to accept or reject the Plan. Class 3 consists of General Unsecured Claims. General Unsecured Claims are Allowed in the amount reflected in Debtor's Schedules Filed with the Bankruptcy Court, estimated to be $850,000, unless the Claims were scheduled by the Debtor as disputed, contingent, or unliquidated. If the Debtor scheduled a General Unsecured Claim as disputed, contingent, or unliquidated, and the Holder of such Claim did not file a Proof of Claim by the General Bar Date, then such General Unsecured Claim is hereby Disallowed. If a Proof of Claim was Filed by the Holder of a General Unsecured Claim prior to the General Bar Date, the Debtor shall have ninety days after the Effective Date to File an objection to such General Unsecured Claim. If the Debtor does not File an objection within this time period, such General Unsecured Claim shall: (i) be Allowed in the amount reflected in the Proof of Claim, together with any unpaid statutory late fees, penalties, interest, costs, and reasonable attorneys' fees accrued thereon, and (ii) be paid up to 100%, in Cash from the Distribution Fund upon the refinance of the Property or the Sale Closing Date, whichever is sooner. If the Debtor does File an objection within such time period, then such General Unsecured Claim shall only be Allowed if the Bankruptcy Court determines the Allowed Amount of such Claim or the Debtor and the Holder of such Claim reach an agreement on the Allowed Amount of such Claim. Class 3 is Impaired, and Holders of General Unsecured Claims are entitled to vote to accept or reject Plan. This Plan shall be funded with the net proceeds of: (a) the sale of the Property, or (b) the refinance of the Property, as applicable. All distributions shall be made by the Disbursing Agent in accordance with Articles II and III, except that to the extent that a Claim becomes an Allowed Claim after the Effective Date, within ten days after the order allowing such Claim becomes a Final Order. A full-text copy of the First Amended Disclosure Statement dated May 6, 2025 is available at https://urlcurt.com/u?l=Fv7n4C from PacerMonitor.com at no charge. About JW Realty Holdings JW Realty Holdings LLC is a single-asset company, is the fee simple owner of the property located at 253 County Rte 105, Highland Mills, NY 10930, which is valued at $1.35 million. JW Realty Holdings sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-35180) on Feb. 20, 2025. In its petition, the Debtor reports total assets of $1,350,000 and total liabilities of $1,155,000. Bankruptcy Judge Kyu Young Paek handles the case. The Debtor is represented by: Jonathan S. Pasternak, Esq DAVIDOFF HUTCHER & CITRON LLP 605 Third Avenue, 34th Floor New York, NY 10158 Tel: 212-557-7200 Fax: 212 286 1884 KL MOON: Monroe Capital Marks $827,000 Secured Loan at 42% Off -------------------------------------------------------------- Monroe Capital Corporation has marked its $827,000 loan extended to KL Moon Acquisition, LLC to market at $482,000 or 58% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to KL Moon Acquisition, LLC. The loan accrues interest at a rate of 9.29% Cash/ 2.75% PIK per annum. The loan matures on February 1, 2029. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About KL Moon Acquisition, LLC KL Moon Acquisition, LLC is engaged in the health care and pharmaceutical supply and distribution in the U.S. KRISTIE BUMSTEAD: LPL Not Entitled to Post-Petition Client Fees --------------------------------------------------------------- In the appeal styled as LPL Financial LLC, Appellant, v. Kristie Edna Bumstead, Appellee, Case No. 24-cv-05341-BHS (W.D. Wash.), Judge Benjamin H. Settle of the United States District Court for the Western District of Washington affirmed the ruling of the United States Bankruptcy Court for the Western District of Washington that LPL Financial LLC does not have a security interest in post-bankruptcy petition payments owed to debtor Kristie Bumstead. Matthew Bumstead is Kristie Bumstead's spouse. He is a licensed investment advisor and was previously employed at LPL as an independent securities broker. In 2019, Matthew borrowed $2.35 million from LPL to build a securities practice on its platform. In 2022, LPL terminated Matthew and he defaulted on the loan, with approximately $2.34 million in principal outstanding. It initiated a Financial Industry Regulatory Authority arbitration against Matthew to recover its money. Kristie filed for Chapter 11 bankruptcy, and the FINRA arbitration was indefinitely stayed. Meanwhile, in 2023, Matthew began working as an independent contractor at another financial services firm, SB Advisory, where he remains employed. Most of his clients followed him from LPL to the new firm. When Kristie filed for bankruptcy, the Bumsteads had a balance of $1,230.61 across all their bank accounts and Bumstead was owed $7,226.18 in SB Advisory client fees. Accordingly, LPL had a secured lien on $8,456.79 in cash. LPL argued in the bankruptcy court that it was also entitled to ongoing advisory fees generated from Matthew's prepetition investment advisory agreements with SB Advisory clients because they were they were proceeds of LPL's collateral. The bankruptcy court disagreed, ruling that the fact that Matthew signs the investment advisory agreement does not make it an account which the LPL security agreement applies to. It concluded the client fees were not proceeds of funds owed to Matthew pre-petition under the Bankruptcy Code. LPL held the total collateral was only $8,456.79, which it collected. LPL appealed to the District Court. It maintains that it has a security interest in advisory fees generated from agreements executed before Kristie filed for bankruptcy. Matthew responds that the SB Advisory client accounts are not LPL's collateral to begin with. According to the District Court, LPL's security interest in Matthew's LPL advisory accounts ended when Matthew stopped working there. By encumbering the "accounts" generally, the agreement gave LPL a security interest in Matthew's rights to monetary payment for any rendered services. But that security interest was cut off as soon as Kristie filed for bankruptcy, the District Court notes. Judge Settle holds, "To the extent that LPL has any interest in those fees because its clients followed [Matthew] to SB Advisory, they are now commingled with [Matthew's] post-petition earnings. LPL must therefore prove, by an approved tracing method, that the money currently in [Matthew's] account corresponds to its collateral. LPL has not done so. The mere assertion that the client fees are directly and indisputably traceable to the original collateral is not enough." The District Court concludes the bankruptcy court did not err in concluding that LPL's security interest does not extend to post-petition client fees owed to Matthew. A copy of the Court's decision dated May 9, 2025, is available at https://urlcurt.com/u?l=YLYAap from PacerMonitor.com. Kristie Edna Bumstead filed for Chapter 11 bankruptcy protection (Bankr. W.D. Wash. Case No. 24-40245) on February 6, 2024, listing under $1 million in both assets and liabilities. LEMONS & OLIVES: Yann Geron Named Subchapter V Trustee ------------------------------------------------------ The U.S. Trustee for Region 2 appointed Yann Geron, Esq., at Geron Legal Advisors, LLC as Subchapter V trustee for Lemons & Olives, Inc. Mr. Geron will be paid an hourly fee of $895 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Geron declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Yann Geron, Esq. Geron Legal Advisors, LLC 370 Lexington Avenue, Suite 1101 New York, NY 10017 Phone: (646) 560-3224 Email: ygeron@geronlegaladvisors.com About Lemons & Olives Inc. Lemons & Olives, Inc. is a catering company based in Brooklyn, N.Y., offering farm-to-table cuisine and event catering services. The company also provides mobile kitchen services, including food trucks and a mobile pizza oven. It is a certified Women-Owned Business Enterprise and has partnered with community organizations to support local initiatives. Lemons & Olives sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-42197) on May 6, 2025. In its petition, the Debtor reported total assets of $370,102 and total liabilities of $2,597,729. Judge Elizabeth S. Stong handles the case. The Debtor is represented by Jonathan S. Pasternak, Esq., at Davidoff Hutcher & Citron, LLP. LIBERTY INTERACTIVE: Moody's Cuts CFR to 'Caa1', Outlook Stable --------------------------------------------------------------- Moody's Ratings downgraded Liberty Interactive LLC's corporate family rating to Caa1 from B3, its probability of default rating to Caa1-PD from B3-PD, and its senior unsecured ratings to Caa3 from Caa2. The speculative grade liquidity score (SGL) was changed to SGL-3 from SGL-2. Moody's also downgraded the senior ratings of the secured notes issued by QVC, Inc. to Caa1 from B2. The outlook remains stable. The downgrades reflect governance considerations including the company's large debt load and the refinancing risk associated with its $3.25 billion revolver which currently has $1.85 billion drawn and is due October 2026. The downgrades also reflect the significant deterioration in Liberty Interactive's operating performance in 1Q'25 caused by accelerating cable cord-cutting, falling customer count and lower customer engagement. Moody's expects these trends to continue as the company contends with an uncertain demand environment for discretionary products coupled with an expectation for elevated costs associated with changing tariffs. Liberty Interactive's businesses are highly dependent on imported product including a material level of imports from China. Moody's expects interest coverage to weaken to about 1.6x at year-end 2025 from 2.0x at year-end 2024 and for further erosion in 2026 as any refinance of its capital structure will likely be at materially higher interest rates. RATINGS RATIONALE Liberty Interactive's Caa1 corporate family rating reflects the difficulties it is facing as it seeks to stabilize its revenue and EBITDA levels in an uncertain demand environment for discretionary products and faces cost pressures associated with tariffs. Liberty Interactive, through its parent QVC Group, Inc. ("QVCG") is also contending with secular pressures that include a growing number of consumers who are canceling their cable subscriptions which is weighing on customer count, increased price transparency and shorter product life cycles. The company also has refinance risk associated with its October 2026 revolver maturity as it currently has $1.85 billion drawn as it has relied in part on the revolver to refinance maturing debt. QVCG continues to have a substantial position within online shopping and is continuing to focus on increasing streaming to increase its customer reach. The ratings are also supported by QVCG's adequate liquidity including sufficient revolver availability and cash balances and the expectation for positive free cash flow generation over the next 12 months. The stable outlook reflects Moody's expectations for positive free cash flow generation and maintenance of adequate liquidity over the next 12 months. The outlook also reflects Moody's expectations that the instrument ratings adequately reflect recovery prospects. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded following a consistent improvement in sales and EBITDA along with a stabilization of customer count and maintenance of good liquidity, including refinancing the company's revolver in a timely and economic fashion. An upgrade would also require consistent positive free cash flow generation and a balanced financial strategy. Quantitatively, ratings could be upgraded if Debt/EBITDA is sustained below 4.75x and EBITA/interest sustained above 1.5x. The ratings could be downgraded if liquidity deteriorates for any reason or if recovery prospects worsen. The ratings could also be downgraded should probability of default increase for any reason including the inability to stem revenue, EBITDA and customer count declines or inability to refinance debt. Headquartered in Englewood, Colorado, Liberty Interactive LLC, is a wholly owned subsidiary of its parent QVC Group, Inc. ("QVCG"), formerly named Qurate Retail, Inc. QVCG operates the QVC, HSN and Cornerstone Brands. Moody's credit analysis considers the consolidated QVC Group organization and all credit metrics quoted are at the QVC Group level. QVC, Inc. was founded in 1986 and has operations in the US, UK, Germany, Japan and Italy. Annual revenue at QVC Group, Inc. was about $9.8 billion for LTM period ended March 31, 2025. The principal methodology used in these ratings was Retail and Apparel published in November 2023. M.I.S. COMMODITIES: Files Emergency Bid to Use Cash Collateral -------------------------------------------------------------- M.I.S. Commodities, Inc. asked the U.S. Bankruptcy Court for the Southern District of Florida, Palm Beach Division, for authority to use cash collateral on an emergency basis. The Debtor pays payroll biweekly, with the next payroll due May 31, and also needs to cover essential business expenses. Without access to funds, it cannot function or reorganize under Chapter 11 and risks liquidation. Lenders that may hold liens on the Debtor's assets, include the U.S. Small Business Administration, Bizfund.com, FinTap, Ondeck, Merk Funding, and Swift Funding Source. The Debtor intends to use cash collateral in accordance with a proposed budget, allowing a 10% variance per line item, and begin using funds immediately rather than waiting the typical 15 days post-service. The Debtor has not reached agreements with the secured lenders. It believes that operating under court-supervised use of cash collateral is its best option to preserve value and repay creditors in an orderly fashion. About M.I.S. Commodities Inc. M.I.S. Commodities Inc. is a commodity broker based in Delray Beach, Fla. M.I.S. Commodities sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-15027) on May 5, 2025. In its petition, the Debtor reported estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. Judge Erik P. Kimball handles the case. The Debtor is represented by Adam I. Skolnik, Esq. MESEARCH MEDIA: Court Says Second Amended Chapter 11 Plan Confirmab ------------------------------------------------------------------- John C. Melaragno of the United States Bankruptcy Court for the Western District of Pennsylvania finds the Second Amended Chapter 11 Plan of Reorganization of MeSearch Media Technologies Limited filed by Creditor Game Creek Holdings, LLC dated March 26, 2025 meets the standards set forth in 11 U.S.C. Sec. 1129 and is confirmable. To establish that the requirements of Sec. 1129 have been met, Game Creek filed the Declaration of Joseph Lawrence in Support of the Second Amended Chapter 11 Plan of Reorganization of MeSearch Media Technologies Limited filed by Creditor Game Creek Holdings, LLC dated March 26, 2025. The two objections to the Second Amended Plan include the Amended Objection of Crivella Holdings Limited and Arthur Crivella to the Confirmation of the First Amended Chapter 11 Plan of Reorganization of MeSearch Media Technologies Filed by Game Creek Holdings, LLC and Cross-Motion to Designate the Votes of Trib Total Media, LLC, RMS Funding, LLC and Game Creek Holdings, LLC filed by Crivella Holdings Limited and Arthur Crivella and the Objection and Reservation of Rights of the United States Trustee to First Amended Chapter 11 Plan of Reorganization of MeSearch Media Technologies Limited filed by Creditor Game Creek Holdings, LLC Dated January 17, 2025 filed by the Office of the United States Trustee. The initial confirmation hearing was held on March 27, 2025, and an evidentiary hearing on whether the Second Amended Plan was filed in good faith, as requested by Crivella at the March 27th hearing, was held on April 23, 2025. The U.S. Trustee argued since the Second Amended Plan relies on the assumption and assignment of the Software License Agreement to the Reorganized Debtor that was the subject of the Motion of Crivella Holdings, Limited for Relief from the Automatic Stay or, in the alternative, for Adequate Protection Pursuant to Section 362(d) of the United States Bankruptcy Code, the Second Amended Plan should not be confirmed while the appeal to the District Court is pending. It further argued that this pending appeal means the plan is not feasible since it is dependent on the outcome of future litigation. Game Creek countered these arguments at the Confirmation Hearing by asserting that there is currently $6.5 million available for plan funding on the effective date of the Second Amended Plan, and it intends to consummate the Second Amended Plan on the effective date regardless of the pending appeal. It further maintained that upon confirmation of the Second Amended Plan, the appeal would become moot since confirmation nullifies the automatic stay, and the terms of the confirmed Second Amended Plan control. The Court agrees with Game Creek that the Second Amended Plan is not speculative since Game Creek is willing to proceed with payments to creditors on the effective date despite the pending appeal. Therefore, based upon the foregoing, the Objection to Confirmation of the Second Amended Plan filed by the Office of the United States Trustee is overruled. In the Crivella Objection, Crivella objects to confirmation of the Second Amended Plan based on its allegations that: (i) the Second Amended Plan has not been proposed in good faith under 11 U.S.C. Sec. 1129(a)(3), (ii) the Second Amended Plan is not in the best interest of equity holders since, in Crivella's opinion, the Second Amended Plan does not meet the Chapter 7 liquidation test, and (iii) the Second Amended Plan is not feasible. Game Creek stressed that the Second Amended Plan is feasible since all claims will be paid on the effective date, and the future operations of the Reorganized Debtor are irrelevant since funding of the Second Amended Plan is not dependent on the future success of the Debtor but is instead being funded immediately on the effective date. To counter the allegations in the Crivella Objection that the Second Amended Plan was not filed in good faith, Game Creek argued Sec. 1129(a)(3) requires the Court to find that the process of plan development was in good faith rather than the content of the plan. In support of this contention, Game Creek asserted that the Second Amended Plan was negotiated with the Chapter 11 Trustee who fully supports the plan. Crivella alleged that the Second Amended Plan was not filed in good faith since it will, according to Crivella, not pay creditors in full, and the same individuals will be running the Debtor post-confirmation while divesting Crivella's equity interests in the MeSearch Software License Agreement and diverting corporate opportunities outside the Debtor. The Court finds that Crivella has failed to provide any evidence that any Debtor assets have been transferred. According to the Court, no evidence was also presented that would support the position that any party diverted corporate opportunities of the Debtor to another entity. The Court finds the plan confirmation process proceeded in accordance with the Consent Order on Plan Procedures. Crivella has been a party to the plan process throughout the entirety of this case. According to the Court, the record is devoid of any evidence that support's Crivella's argument that the Second Amended Plan was not proposed with honesty, good intentions, and with a basis for expecting reorganization to occur. To the contrary, Crivella's consent to the Consent Motion on Plan Procedures indicates that the plan solicitation process was fair, reasonable, honest and agreeable to all parties. The Court finds that it is disingenuous for Crivella to now argue that that process was unfair and not in good faith when Crivella participated in and consented to it. Further, the Court finds there is nothing objectionable about the process in which this plan was presented to the parties and to the Court. There is sufficient evidence to conclude that the Second Amended Plan is not speculative and that the proposed purchaser has sufficient funding in place to meet all proposed payments to creditors on the effective date. The Court finds that the Second Amended Plan proposes to pay all allowed claims on the effective date, was advertised as a sale pursuant to the Court's Local Rules, was solicited in accordance with the Consent Order on Plan Procedures, fosters a result consistent with the Bankruptcy Code's objectives, and was proposed in good faith and with honest intentions. The Court also agrees with the plan proponent in finding that the Second Amended Plan is in the best interest of creditors under Sec. 1129(b)(2)(C). Based on the Declaration as well as the testimony of Joseph Lawrence at both the Confirmation Hearing and the Evidentiary Hearing, the Court holds that the Second Amended Plan was proposed in good faith in accordance with Sec. 1129(a)(3). The Second Amended Plan maximizes the value to the Estate, will pay all allowed claims in full on the effective date, will allow the Debtor to reorganize and continue operations and has the full support of the Chapter 11 Trustee, the Court concludes. A copy of the Court's decision is available at https://urlcurt.com/u?l=hjZNpJ from PacerMonitor.com. About MeSearch Media Technologies RMS Funding Company, LLC, Game Creek Holdings, LLC and Trib Total Media, LLC filed involuntary Chapter 11 petition against MeSearch Media Technologies Limited (Bankr. W.D. Pa. Case No. 24-21982) on August 13, 2024. Kirk B. Burkley, Esq., at Bernstein-Burkley, P.C. represents the petitioning creditors in MeSearch's bankruptcy case. Judge John C. Melaragno oversees the case. David L. Fuchs, Esq., at Fuchs Law Office, LLC serves as the Debtor's counsel. MIRACLE RESTAURANT: Injunction to Facilitate Plan Properly Issued ----------------------------------------------------------------- Judge Meredith S. Grabill of the United States Bankruptcy Court for the Eastern District of Louisiana holds that the temporary injunction to facilitate the successful implementation of Miracle Restaurant Group, LLC's Plan of Reorganization Under Subchapter V Dated September 18, 2024 is properly issued pursuant to 11 U.S.C. Secs. 105(a) and 1123(b)(6). Over the course of the Debtor's bankruptcy case, the Debtor closed six restaurants, rejected unexpired leases and franchise agreements associated with those restaurants, and attempted to market and sell other of its restaurant franchises without success. The Debtor was able to renegotiate leases and obtain lease concessions from landlords at nine locations and plans to continue to operate its franchises at those locations, which will generate income to fund a plan of reorganization. On April 23, 2025, the Court held an evidentiary hearing to consider confirmation of the Plan. Of the classes of creditors that voted, all voted to accept the Plan but for Woodvine Partners, LLC, an unsecured creditor of the Debtor, which voted to reject the Plan. As of the confirmation hearing, the Debtor had resolved the vast majority of the objections and those objections were withdrawn. For the reasons stated on the record, upon review of the evidence, the Court found that the Debtor's Plan satisfied all of the confirmation requirements of Sec. 1129(a) of the Bankruptcy Code, as incorporated by Sec. 1191. The Court continued the confirmation hearing to April 30, 2025, to consider the final remaining objection to the Plan lodged by the Office of the United States Trustee, Iris Associates, L.P., and Woodvine. No party in interest objected on the basis of unfair discrimination or asserted that the Plan was not fair and equitable as to any class of creditors. Woodvine, the only creditor in Class 3, holds an allowed unsecured claim of $787,916.66 for amounts due under a promissory note. Under the Plan, Woodvine's Class 3 claim will be amortized over seven years at 5.0% interest, and Woodvine will receive monthly payments in the amount of $11,136.34 with a balloon payment of $486,573 at the end of the three-year Plan term. The Court finds that the Plan satisfies the requirements of 11 U.S.C. Secs. 1191(b) and (c) as the Plan does not discriminate unfairly and is fair and equitable with respect to Woodvine. The Plan proposes temporary, non-debtor injunctions to facilitate the successful implementation of the Plan. Citing the U.S. Supreme Court's holding in Harrington v. Purdue Pharma L.P. (In re Purdue Pharma), 603 U.S. 204, 227 (2024), and the Fifth Circuit's recent opinion in Highland Capital Management Fund Advisors, L.P. v. Highland Capital Management, L.P. (In re Highland Capital Management, L.P.), 132 F.4th 353 (5th Cir. 2025) (Highland II), the UST and Woodvine object to the Debtor's Plan solely on the assertion that Purdue Pharma and Highland II prohibit the inclusion of temporary, non-consensual, non-debtor injunctions in a confirmed plan of reorganization. The Court overrules the objections of Woodvine and the UST to the Debtor's Plan to the extent they assert that the holdings in Purdue Pharma or Highland II ban outright temporary, non-consensual, non-debtor injunctions issued entered at confirmation to facilitate the successful implementation of a plan. Given the fact that each of the Insiders has guaranteed payment of the prepetition debts of the Debtor, the Court finds that the Insiders and the Debtor enjoy an identity of interest such that a suit against any of the Insiders is essentially a suit against the Debtor. Therefore, the Court finds that the Debtor has satisfied the Zale Corp. "unusual circumstances" test warranting the issuance of a temporary, non-debtor injunction to facilitate the successful implementation of the Plan. The Court finds the four-prong preliminary injunction test is also satisfied. Those factors are: (1) a substantial likelihood of success on the merits, (2) a substantial threat of irreparable injury if the injunction is not issued, (3) the threatened injury if the injunction is denied outweighs the threatened harm the injunction may cause to the party opposing the injunction, and (4) the issuance of an injunction will not disserve the public interest. No party in interest objected to feasibility of the Plan. The record shows that the Debtor has downsized its corporate footprint, has provided for reasonable contingencies including a working capital reserve, and presented realistic and attainable business projections. The Court already determined at the confirmation hearing that the Plan -- including the expectation that the Debtor will refinance its outstanding debt with the help of the Insiders at Month 36 -- is feasible. That finding supports a conclusion that the Plan is substantially likely to succeed, the Courtnotes. According to the Court, the record also reflects that the opportunity for the Debtor to successfully reorganize is seriously jeopardized if Woodvine is not temporarily restrained from its efforts to collect the amounts that it will be paid under the Plan from any of the Insiders pursuant to their guaranties. Thus, the Debtor faces a substantial threat of irreparable injury without the issuance of the temporary injunction, the Court concludes. A copy of the Court's decision is available at https://urlcurt.com/u?l=5hflmx from PacerMonitor.com. About Miracle Restaurant Group Miracle Restaurant Group, LLC owns and operates a fast-food restaurant in Covington, La. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 24-11158) on June 20, 2024, with $1 million to $10 million in both assets and liabilities. Dwayne Murray, Esq., at Murray & Murray, LLC, serves as Subchapter V trustee. Judge Meredith S. Grabill presides over the case. The Debtor is represented by Douglas S. Draper, Esq., and Michael E. Landis, Esq., at Heller, Draper & Horn, LLC. First Franchise Capital Corp., as secured creditor, is represented by: Jeffrey M. Hendricks, Esq. Bricker Graydon, LLP 312 Walnut Street, Suite 1800 Cincinnati, OH 45202 Telephone:(513) 629-2786 Facsimile: (513) 651-3836 Email: jhendricks@brickergraydon.com MTE HOLDINGS: 3rd Cir. Affirms in Part Ruling in Royalties Dispute ------------------------------------------------------------------ In the appeal styled as CHENAULT-VAUGHAN FAMILY PARTNERSHIP, LTD, Appellant v. MDC REEVES ENERGY, LLC; CENTENNIAL RESOURCE DEVELOPMENT, INC.; CENTENNIAL RESOURCE PRODUCTION, LLC, Appellees, No. 23-1916 (3rd Cir.), Judges Stephanos Bibas, Arianna J. Freeman and Jane R. Roth of the United States Court of Appeals for the Third Circuit will affirm in part and vacate in part the order of Magistrate Judge Sherry R. Fallon of the United States District Court for the District of Delaware awarding summary judgment to Centennial Resources Operating, LLC. Chenault owns a one-sixth mineral interest in a certain tract of Texas land. It conveyed a working interest to a company called 84 Exploration Partners through an oil and gas lease. In exchange, 84 Exploration promised to pay Chenault a royalty: one-fourth of the minerals or the value of the minerals that 84 Exploration produced. MDC Reeves Energy, LLC owned about 80% of the working interest, while a company called Luxe owned 20%. MDC is a debtor in the jointly administered bankruptcy cases to which this adversary proceeding relates. Because Chenault retained its royalty interest, MDC and Luxe each owed Chenault a one-fourth royalty for their respective shares. In 2017 and 2019, Centennial created two pooled units that contained MDC's and Luxe's working interests, Iron Eagle Unit A and Unit B. Centennial signed a joint operating agreement for Unit A with MDC and Luxe, under which Centennial became the operator of the Luxe and MDC shares of the Lease. The Unit A JOA provided that Centennial would pay expenses for development, including the royalties that MDC and Luxe owed to Chenault, and would charge each party its proportionate share of those expenses. Centennial and Luxe signed a similar joint operating agreement for Unit B, and they anticipated that MDC would sign it as well, but MDC never did. Nonetheless, Centennial paid royalties to Chenault for both MDC's and Luxe's Unit B shares from March 2019 until February 2020. The Bankruptcy Court found that Centennial paid $137,276.73 in royalties on MDC's behalf based on the mistaken assumption that MDC had become party to the Unit B JOA. On Nov. 8, 2019, MDC filed for Chapter 11 bankruptcy. On Nov. 19, 2019, Centennial rescinded a well proposal for Unit B on the basis that MDC had not signed the Unit B JOA, but it continued to pay MDC's share of Unit B royalties to Chenault until February 2020. In November 2020, Chenault filed a complaint in the United States Bankruptcy Court for the District of Delaware against MDC, Centennial, and Centennial's parent company. It brought several claims arising from Centennial's alleged underpayment or failure to pay Unit B royalties. In January 2021, the Bankruptcy Court presiding over the Chapter 11 proceeding permitted debtor MDC to abandon the Unit B Lease. In the Adversary Proceeding, Chenault and Centennial both moved for summary judgment. In December 2021, the Bankruptcy Court granted partial summary judgment in favor of Centennial. It held that, based on Centennial's mistaken belief that MDC signed the Unit B JOA, Centennial was entitled to deduct $137,276.73 in pre-abandonment Unit B royalties from pre-abandonment royalties owed on Unit A. The Bankruptcy Court granted full summary judgment to Centennial one month later. Chenault timely appealed the Bankruptcy Court's summary-judgment decision to the District Court. The parties consented to proceed before Magistrate Judge Sherry R. Fallon for all proceedings, including the entry of final judgment. The District Court then referred the case to Magistrate Judge Fallon pursuant to 28 U.S.C. Sec. 636(c) and Rule 73 of the Federal Rules of Civil Procedure. Chenault's appeal concerns the Bankruptcy Court's summary judgment on two claims: its trespass to try title claim (Count I) and its claim for royalties under Texas Natural Resources Code Sec. 91 (Count II). Chenault filed the Adversary Proceeding in the Bankruptcy Court that was presiding over MDC's then-pending Chapter 11 case, and it named MDC as a defendant. It also invoked the Bankruptcy Court's related-to jurisdiction, and alleged that Centennial or, alternatively, MDC is obligated to royalties to Chenault. Thus, it was plain at the time of filing that Chenault's lawsuit could conceivably have affected MDC's bankruptcy estate. The Third Circuit finds Centennial did not unlawfully enter the land and dispossess Chenault. Even after MDC abandoned the Lease, Luxe was still Chenault's cotenant with a right to extract the minerals. Luxe was also entitled to permit Centennial, its operator, to enter the land and drill on it. Because the costs of development and production were not yet recovered, Centennial did not trespass on Chenault's mineral interests by withholding payment post-abandonment, the Third Circuit concludes. In its TNRC claim, Chenault asserts that it had a payor-payee relationship with Centennial that required Centennial to pay Unit B royalties to Chenault. In support of Centennial being its payor, Chenault points to the Unit B JOA, the undisputed fact that Centennial paid Chenault pre-abandonment royalties for Unit B, and a division order for "Iron Eagle Unit B U21H" that Chenault signed in July 2019 and addressed to Centennial. The Division Order lists Centennial as the "Operator" of the listed property. It also appears to designate Centennial as "Payor" to Chenault for royalties on sales of oil, gas and related liquid hydrocarbons since the date those minerals were first produced on the property. And the same property description on the Division Order is listed on the accounting statement reflecting the royalties Centennial paid to Chenault. Centennial argues that it has not obligated itself to be Chenault's payor for Unit B royalties. It also argues there is no evidence that it intended to be bound to pay Unit B royalties to Chenault. It also asserts that it only paid pre-abandonment Unit B royalties to Chenault based on its mistaken belief that MDC had signed the Unit B JOA. The Third Circuit finds there is a genuine dispute as to whether Centennial knew MDC had not signed the Unit B JOA when Centennial made royalty payments to Chenault from March 2019 through February 2020. Moreover, notwithstanding any questions about the Unit B JOA, a reasonable jury could find that the Division Order bound Centennial to pay Unit B royalties to Chenault. Under Texas law, division orders are generally binding until revoked. Material facts regarding the Division Order remain in dispute. These disputes of fact preclude summary judgment for Centennial on Chenault's TNRC claim. The Circuit Judges hold, "We will affirm the Magistrate Judge's order in part and vacate it in part. We will affirm the order insofar as it affirms the summary judgment for Centennial on Chenault's trespass-to-try-title claim. However, we will reverse the order insofar as it affirms the summary judgment for Centennial on Chenault's Texas Natural Resource Code claim. We will remand to the Magistrate Judge with instructions to remand to the Bankruptcy Court for further proceedings on the TNRC claim." A copy of the Court's decision dated May 7, 2025, is available at https://urlcurt.com/u?l=5PkOFX About MTE Holdings MTE Holdings LLC is a privately held company in the oil and gas extraction business. MTE sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 19-12269) on Oct. 22, 2019. In the petition signed by its authorized representative, Mark A. Siffin, the Debtor disclosed assets of less than $50 billion and debts of $500 million. Judge Karen B. Owens was originally assigned to the case before Judge Christopher S. Sontchi took over. The Debtor tapped Kasowitz Benson Torres LLP as its bankruptcy counsel; Morris, Nichols, Arsht & Tunnell, LLP as its local counsel; Greenhill & Co., LLC, as financial advisor and investment banker; Ankura Consulting LLC, as a chief restructuring officer; and Stretto as its claims and noticing agent. MV RECEIVABLES: Monroe Capital Marks $8.1MM Secured Loan at 49% Off ------------------------------------------------------------------- Monroe Capital Corporation has marked its $8,100,000 loan extended to MV Receivables II, LLC to market at $4,155,000 or 51% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to MV Receivables II, LLC. The loan accrues interest at a rate of 14.07% per annum. The loan matures on July 29, 2026. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About MV Receivables II, LLC MV Receivables II, LLC is engaged in providing banking solutions and services in the U.S. NAS LOGISTICS: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: NAS Logistics LLC 821 Greenview Drive Grand Prairie TX 75050 Business Description: NAS Logistics LLC is a freight transportation company based in Grand Prairie, Texas. It operates as an interstate carrier authorized for hire, primarily hauling general freight. Chapter 11 Petition Date: May 27, 2025 Court: United States Bankruptcy Court Northern District of Texas Case No.: 25-41886 Debtor's Counsel: Michael Wiss, Esq. MICHAEL WISS & ASSOCIATES 7920 Beltline Rd, Suite 650 Dallas, TX 75254 Tel: 214-971-2445 E-mail: a_nichols_law@protonmail.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Nahla Hamed as president. 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/MH4KHSI/NAS_Logistics_LLC__txnbke-25-41886__0001.0.pdf?mcid=tGE4TAMA NATIONAL FENCE: Stephen Darr Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 1 appointed Stephen Darr of Huron Consulting Group as Subchapter V trustee for National Fence and Supply Co. Mr. Darr will be paid an hourly fee of $825 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Darr declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Stephen Darr Huron Consulting Group 265 Franklin Street, Suite 402 Boston MA 02110 Phone: (617) 226-5593 Email: sdarr@hcg.com About National Fence and Supply National Fence and Supply Co. is a specialized contractor operating in the fencing industry that provides fence installation services and supplies various fencing materials and related products to residential and commercial customers throughout the region. National Fence and Supply sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-10914) on May 1, 2025. In its petition, the Debtor reported estimated assets between $50,000 and $100,000 and estimated liabilities between $1 million and $10 million. The Debtor is represented by Hilmy Ismail, Esq., at the Law Office of Hilmy Ismail. NATIONSBENEFITS LLC: Monroe Capital Marks $2.2M Loan at 60% Off --------------------------------------------------------------- Monroe Capital Corporation has marked its $2,222,000 loan extended to NationsBenefits, LLC to market at $889,000 or 40% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to NationsBenefits, LLC. The loan accrues interest at a rate of 9.92% per annum. The loan matures on August 26, 2027. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About NationsBenefits, LLC NationsBenefits -- https://www.nationsbenefits.com/ -- is a supplemental benefits company that provides managed care organizations. OKLAHOMA FORGE: Court Approves Sale of Assets to FRG ---------------------------------------------------- Chief Judge Paul R. Thomas of the United States Bankruptcy Court for the Northern District of Oklahoma granted Oklahoma Forge, LLC's motion to approve the the sale of its assets to Forge Resources Group LLC. Debtor is an independent operator of a metal forge facility that was founded in September of 2004. Debtor owns equipment and other assets necessary to operate the metal forge business. STORE presently owns the real property upon which Debtor's operating facility is located. The STORE Real Property is currently leased to Debtor for $37,410.83 per month under a long-term lease. This matter comes before the Court pursuant to: Debtor's Motion for an Order (1) Authorizing Sale of Substantially all of the Debtor's Assets Free and Clear of all Liens, Claims, Encumbrances and other Interests, (2) Approving Distribution of Sale Proceeds, and (3) Granting Related Relief (the "Third Sale Motion"), filed by Oklahoma Forge, LLC; a Statement and Reservation of Rights, filed by the Official Committee of Unsecured Creditors; an Objection, filed by Ellwood National Steel Company, Ellwood Quality Steels Company, Ellwood Group, Inc., and TSK Partners LLC d/b/a McInnes Rolled Rings; and a Reply, filed by Store Master Funding XIV, LLC, an affiliate of STORE Capital, LLC. The Court held an evidentiary hearing in this matter on April 30, 2025. The final bid submitted by TSK includes cash consideration in the amount of $6,850,000, expense reimbursements in the amount of up to $215,000, a waiver of the Ellwood Companies' alleged administrative expense claim in the amount of $184,092.72 (for a "substantial contribution" claim), and subordination of the Ellwood Companies' unsecured claim in the amount of $152,428.59. The $215,000 expense reimbursement is comprised of payments for April, May, and June rent; utilities; insurance; security; and $25,000 for the Debtor's legal fees to litigate the STORE issues. The final bid submitted by FRG includes cash consideration in the amount of $6,575,000, without FRG receiving credit for or deducting the Termination Fee of $137,500 from the cash consideration. The closing will take place within two weeks after the date of the entry of a sale order. FRG also agrees to delete the "Tangible Personal Property" and "Title to Personal Property" representations and warranties in sections 3.05 and 4.05 of its Asset Purchase Agreement, the "Indemnification by the Debtor" in sections 5.09 and 5.10 of its Asset Purchase Agreement, and the "Indemnity Holdback Amount" in the amount of $200,000 in section 1.04 of its Asset Purchase Agreement. On April 11, 2025, Debtor filed a Second Designation Notice identifying FRG as the Winning Bidder and Winning Bid. It also filed the Third Sale Motion, asking the Court to approve the sale of the Purchased Assets to FRG. From the beginning, the competing bids of TSK and FRG have presented a challenge because they included radically different non-monetary terms and conditions, which made them difficult to compare in an apples-to-apples type way. At the same time, Debtor has made it clear that it planned to condition the sale of its assets on the simultaneous resolution of its conflicts with its landlord, STORE. FRG chose to meet that condition by purchasing the STORE Real Property in conjunction with its purchase of Debtor's assets. TSK took a different approach. TSK believes STORE has a weak claim against Debtor's assets, and believes Debtor would prevail in any litigation against STORE. While TSK offered to provide financial resources to fund Debtor's litigation against STORE, it has been unwilling to accept all of the risk involved in such litigation. On its face, after payment of the Termination Fee, the TSK bid appears to bring $137,500 more to the estate, making it the "highest" monetary bid. TSK believes this amount is more than enough to cover Debtor's litigation and execution risks related to STORE's claim. Debtor disagrees. While it has not provided a dollar amount that it would be willing to accept to offset those risks, Debtor has determined that $137,500 is not enough. Despite no longer offering a competing bid for the Purchased Assets, the Ellwood Companies stand on their objections to the Third Sale Motion. Those objections include: i. issues with the FRG final bid; ii. Debtor is not entitled to the benefit of a business judgment presumption; iii. Debtor is not acting in good faith; iv. the alleged litigation risk with STORE in the event TSK is selected the winning bid is manufactured; v. the alleged execution risk in the event TSK is selected the winning bid is a red herring; vi. the Third Sale Motion is a Rule 9019 Motion disguised as a sale motion; and vii. the proposed sale is fundamentally unfair. No other creditors voiced objection to the sale. Ellwood specifically accuses Debtor of not acting in good faith because the sale ultimately benefits Debtor's insiders. They argue Debtor's position that the winning bidder must eliminate all risk associated with the STORE Lease, is both unfair and unreasonable. According to the Court, the fact that Debtor's parent or affiliates also benefit from the sale of the assets to FRG does not necessarily indicate that the sale was conducted in bad faith, or that the sale it does not maximize value to the estate. Debtor's choice of FRG as the winning bidder is based on a reasonable evaluation that its bid minimizes risk to the estate. The Court finds it reasonable for Debtor to conclude that the additional risk of litigating with STORE contained in the TSK bid exceeds the benefit of an additional $137,500 to the estate. Regardless of whether insiders may also benefit from the sale to FRG, the Court concludes that its designation by Debtor is a reasonable exercise of business judgment to maximize the value generated for the estate, even under a heightened standard. In this case, Debtor has selected a lower monetary bid with less perceived risk and fewer contingencies as the "highest and best" bid. The Court finds Debtor has exercised its duties to the creditors in good faith, and its selection of FRG as the winning bidder is both reasonable and fair. The Court finds approval of the Third Sale Motion to FRG is in the best interests of creditors and the estate and should be approved. The objection filed by the Ellwood Companies is overruled. A copy of the Court's decision is available at http://urlcurt.com/u?l=xsHi5Mfrom PacerMonitor.com. About Oklahoma Forge LLC An involuntary petition was filed against Oklahoma Forge, LLC (Bankr. N.D. Okla. Case No. 24-11060) on August 16, 2024 by Ellwood Quality Steels Company, Ellwood National Steel Company, and Lehigh Specialty Melting Inc. Stephen J. Moriarty, Esq., at Fellers, Snider, Blankenship, Bailey and Tippens, PC, represents the Debtor as legal counsel. OLSON EQUIPMENT: Seeks Chapter 11 Bankruptcy in Wisconsin --------------------------------------------------------- On May 21, 2025, Olson Equipment Leasing LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Wisconsin. 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 Olson Equipment Leasing LLC Olson Equipment Leasing LLC is a Wisconsin-based equipment leasing company headquartered in Wausau. The company specializes in equipment leasing services, with operations based at its 500 N. 3rd St location in Wausau. Olson Equipment Leasing LLCsought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Wis. Case No. 25-22923) on May 21, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Honorable Bankruptcy Judge G Michael Halfenger handles the case. The Debtors are represented byJ erome R. Kerkman, Esq. at Kerkman & Dunn. ONH AFC: JOSMIC Loses Bid to Stay Fraudulent Conveyance Suit ------------------------------------------------------------ Judge Craig T. Goldblatt of the United States Bankruptcy Court for the District of Delaware will deny the defendants' motion to stay the adversary proceeding captioned as ANNA PHILLIPS, in her capacity as Liquidating Trustee of the ONH Liquidating Trust, Plaintiff, v. JOSMIC 2 LLC and JOSMIC HOLDINGS LLC, Defendants, Adv. Proc. No. 24-50085-CTG (Bankr. D. Del.). The defendants' motion to dismiss will be granted in part and denied in part. Elchonon Schwartz formed ONH AFC CS Investors LLC in 2022 to invest in commercial real estate. ONH AFC raised equity to fund the purchase of the Atlanta Financial Center. ONH AFC raised roughly $44 million from 654 CrowdStreet investors. CrowdStreet investors were informed that all proceeds from the ONH AFC offering were to be used for the purchase, lease, reposition, and renovation of the Atlanta Financial Center. All funds raised were to be held in segregated accounts until the closing of the purchase. If the deal failed to close, the funds were to be returned to investors. In substance, under the contemplated transaction a "Prop. Co." -- a non-debtor entity named ONH AFC LLC -- was to acquire the underlying Atlanta Financial Center assets. Prop. Co. would in turn be acquired by AFC Mezz.17 And AFC Mezz would be held by the debtor ONH AFC. The complaint, filed by Anna Phillips in her present capacity as the trustee of the post-confirmation liquidating trust established in the bankruptcy case ONH AFC CS Investors LLC, alleges that although funds were raised from investors, the contemplated transaction did not close. It asserts that both ONH AFC and Schwartz made untrue statements of fact and/or omitted statements of material facts to investors in connection with the AFC Offering including with respect to Schwartz's intended use of the funds from the Offering. And, upon her pre-petition appointment by investors as the independent manager of ONH AFC, Phillips discovered that the funds raised from investors had been withdrawn and dissipated. Debtor ONH AFC, together with debtor ONH 1601, another of Schwartz's failed real estate investment ventures, filed for bankruptcy in July 2023. The debtors' joint plan was confirmed and the ONH liquidating trust was granted the authority to pursue estate claims and actions. It is alleged that, back when Schwartz was running the debtors' businesses, ONH AFC made five transfers that are now challenged as fraudulent conveyances. The largest of those transfers was a $5 million payment made in June 2022 to Josmic. It is alleged that this payment paid off a personal loan that Josmic had previously made to Schwartz. The complaint also alleges that Schwartz caused the rights to the Atlanta Financial Center purchase agreement (which were presumably held by Prop. Co., a non-debtor) to be transferred to Josmic. In addition, the complaint alleges that ONH AFC made four other transfers totaling $2 million: * A $500,000 transfer in June 2022 to Riverside Abstract as escrow agent (for the benefit of Josmic); * A $500,000 transfer in July 2022 to Riverside Abstract as escrow agent (for the benefit of Josmic); * A $750,000 transfer in September 2022 to Riverside Abstract as escrow agent (for the benefit of Josmic); and * A $250,000 transfer in September 2022 to Josmic Holdings.26 The complaint contains very little detail about the reasons for, or the nature of, these alleged transfers. Defendants moved to dismiss the complaint for failure to state a claim. They also asked, in the alternative, for the case to be stayed pending the outcome of the plaintiff's efforts to recover against Schwartz. The gist of the defendants' argument for a stay is that under the rationale of DSI Renal, fraudulent conveyance claims may only be asserted where the beneficiaries of those claims will be creditors. And the defendants argued that it appeared, based on various publicly filed materials, that the trustee was close to having recovered sufficient funds from others to permit the payment of creditors in full. The Court will deny the motion to stay these proceedings. According to the Court, there are persuasive reasons, including those set forth in DSI Renal, to believe that the remedy of fraudulent conveyance should not be available for the benefit of equity holders. Judge Goldblatt explains, "If it is true that the investors were induced to invest based on false representations, then outside of bankruptcy, those defrauded investors were creditors who would have held fraud claims against the debtor. In order to recover on those claims, the investors would have been able to pursue state law fraudulent conveyance actions. And while it is true that, in bankruptcy, their claims are subordinated under Sec. 510(b), fairly understood, that subordination does not operate to strip the trustee in bankruptcy of the ability to bring a fraudulent conveyance action for their benefit." While the complaint contains six counts, the claims fall into three broad categories: (1) claims for the avoidance and recovery of actual fraudulent transfers from ONH AFC to defendants pursuant to Sec. 548(a)(1)(A), Sec. 544(b)(1), and New York state law, (2) avoidance and recovery of constructive fraudulent transfers from ONH AFC to defendants pursuant to Sec. 548(a)(1)(B), Sec. 544(b)(1), and New York state law; and (3) a claim for unjust enrichment in the amount of $5,000,000. The motion to dismiss claims for actual fraudulent transfer will be granted in part and denied in part. The Court finds the allegations of fraudulent intent are sufficient with respect to the alleged $5 million repayment of the loan owed by Schwartz but insufficient as to the other alleged transfers. The remaining allegations of actual fraudulent conveyance, involving transfers that total $2 million, are insufficient. According to the Court, while the complaint alleges in conclusory fashion that the transfers were fraudulent, the complaint does not set forth facts that suggest the presence of badges of fraud or otherwise would permit a reader to draw a commonsense inference that the transfers were made with the intent to hinder, delay, or defraud creditors. The complaint also does not adequately tie the remaining challenged transfers to any underlying transaction or obligation, the Court adds. The motion to dismiss the actual fraudulent conveyance claims will accordingly be granted with respect to those transfers. The Court concludes because the complaint does not allege either insolvency or unreasonably small capital, the constructive fraudulent conveyance claims must fail. The motion to dismiss the claims of constructive fraudulent transfer will be granted. The Court finds the trustee has not alleged facts sufficient to support a claim for unjust enrichment. The motion to dismiss the trustee's unjust enrichment claim will be granted. A copy of the Court's decision is available at https://urlcurt.com/u?l=zS2oJH from PacerMonitor.com. About ONH AFC CS Investors LLC ONH AFC CS Investors, LLC and ONH 1601 CS Investors, LLC filed their petitions under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10931) on July 14, 2023. At the time of the filing, ONH AFC reported $100,001 to $500,000 in both assets and liabilities while ONH 1601 reported up to $50,000 in assets and $100,001 to $500,000 in liabilities. Judge Craig T. Goldblatt oversees the cases. The Debtors tapped Jorian L. Rose, Esq., at Baker & Hostetler, LLP and Matthew B. McGuire, Esq., at Landis Rath & Cobb, LLP as legal counsel. GlassRatner Advisory & Capital Group, LLC, doing business as B. Riley Advisory Services, is the Debtors' restructuring advisor. PANDA ACQUISITION: Monroe Capital Marks $4.5M Loan at 16% Off ------------------------------------------------------------- Monroe Capital Corporation has marked its $4,595,000 loan extended to Panda Acquisition, LLC to market at $3,837,000 or 84% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to Panda Acquisition, LLC. The loan accrues interest at a rate of 6.44% Cash/7.13% PIK per annum. The loan matures on October 18, 2028. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About Panda Acquisition, LLC Panda Acquisition LLC is a company engaged in the industrial sector. PAWLUS DENTAL: Gets Interim OK to Use Cash Collateral Until June 5 ------------------------------------------------------------------ Pawlus Dental, Inc. got the green light from the U.S. Bankruptcy Court for the Southern District of Indiana, Indianapolis Division, to use cash collateral. The order penned by Judge James Carr authorized the Debtor's interim use of cash collateral from May 14 to June 5 in accordance with its budget. The Debtor has identified several secured creditors, including German American Bank, Bizfund, LLC and Channel Partners Capital. German American Bank holds a first lien position, having been a lender since 2016. As protection, secured creditors will be granted replacement liens on the cash collateral and other property acquired by the Debtor after the petition date. As further protection, German American Bank will receive a monthly payment of $6,547.14, starting on June 20. A final hearing is set for June 5. Objections are due by June 3. Due to previous financial strain, the Debtor obtained multiple high-interest merchant cash advance loans. As these lenders issued default notices, many of the account debtors -- mainly insurance companies -- ceased payments, which significantly restricted cash flow. The Debtor estimates it is owed around $600,000 in receivables, much of which it has held off submitting due to concerns that funds would be diverted to MCA creditors. With bankruptcy protection now in place, the court's approval to use cash collateral will allow those funds to begin flowing back to the Debtor, enabling continued operations and a path to reorganization. About Pawlus Dental Inc. Pawlus Dental, Inc. provides comprehensive dental services in Columbus, Ind., focusing on preserving natural teeth and enhancing smile aesthetics. The practice offers treatments including dental implants, sleep apnea management, clear aligners, periodontal and cosmetic care, preventive and restorative dentistry, wisdom teeth extraction, root canal therapy, and sedation dentistry. Pawlus Dental sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 25-02780) on May 14, 2025, listing $890,156 in total assets and $1,119,328 in total liabilities. John G. Pawlus, president and owner of Pawlus Dental, signed the petition. Judge James M. Carr oversees the case. John Allman, Esq., at Hester Baker Krebs, LLC is the Debtor's bankruptcy counsel. German American Bank, as lender, is represented by: Bruce A. Smith, Esq. Rhonda S. Miller, Esq. Smith & Miller, LLP P.O. Box 387 Bargersville, IN 46106 Phone: (812) 802-0222 bsmith@smithmillerlaw.com rmiller@smithmillerlaw.com PICCARD PETS: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------ The U.S. Trustee for Region 21 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Piccard Pets Supplies Corp. About Piccard Pets Supplies Piccard Pets Supplies Corp., a company in Jacksonville, Fla., offers pet supplies and medications. Piccard Pets Supplies sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02434) on Aug. 15, 2024, with total assets of $927,465 and total liabilities of $5,323,839. Marlon Martinez, chief executive officer, signed the petition. Judge Henry W. Van Eck oversees the case. The Debtor is represented by Thomas Adam, Esq., at Adam Law Group, PA. PINEY POINT: Claims Will be Paid from Property Sale/Refinance ------------------------------------------------------------- Piney Point 2023, LLC filed with the U.S. Bankruptcy Court for the Southern District of Texas a Combined Plan and Disclosure Statement dated May 6, 2025. The Debtor owns a 1,094 unit apartment complex. The apartment complex is operating and substantially occupied by tenants. The Debtor commenced this bankruptcy proceeding because of the pending foreclosure sale and the Debtor's belief that millions of dollars in equity exists in the apartment complex. Pre-petition, the complex suffered significant damage from certain Houston area storm events resulting in significant reduction of revenue based upon non-occupancy of the damaged units. During the bankruptcy proceeding the Debtor has completed the repair of the damages units and the units are substantially now occupied by tenants. Moreover, certain units suffered severe damage as a result of arson. The Debtor during the Chapter 11 has been repairing this units and such units will soon return into service. Class 1 consists of the Claim of JLL Real Estate Capital, LLC, as a Fannie Mae backed loan. The Debtor will sell (or refinance) the Apartment Complex on or before June 30, 2026, paying all allowed secured creditors from the proceeds of the sale (or refinance) on all amounts then outstanding in full. The Debtor agrees that if it is unable to sell or refinance by June 30, 2026, it will not commence a subsequent bankruptcy proceeding. Fannie Mae, if not paid in full by June 1, 2026 may notice a July 2026 foreclosure sale. Fannie Mae may conduct the July 2026 foreclosure sale if it is not paid in full by June 30, 2026. Fannie May upon Material Default under this Plan by the Debtor may foreclose sooner than July of 2026. At all times during this Plan the requisite insurance required under the secured creditor's loan documents with the Debtor must be maintained. The Debtor asserts that creditors in Class 1 are oversecured creditors, in that the pre-petition appraised value of the apartment complex is approximately $132,000,000.00. Creditors in Class 1 may not repossess or dispose of their collateral or otherwise proceed against the Debtor, its collateral and any guarantors, so long as Debtor is not in Material Default under the Plan. Class 1 Allowed Secured claims are impaired. Class 2(a) consists of Allowed General Unsecured Claims. Allowed claims of general unsecured creditors (including allowed claims of creditors whose executory contracts or unexpired leases are being rejected under this Plan) shall be paid in full according to terms. Creditors in this class may not take any collection action against Debtor so long as Debtor is not in Material Default under the Plan. This class is not impaired and is not entitled to vote on confirmation of the Plan. Certain purported creditors are scheduled by the Debtor as Disputed General Unsecured Claims, as such purported claims are contingent, disputed and/or unliquidated. If, or once a Disputed General Unsecured Claim becomes an Allowed General Unsecured Claim, it shall no longer be a Disputed General Unsecured Claim and shall be treated in accordance with Class 2 General Unsecured Claims. Kalkan Capital USA LLC, a Texas limited liability company is the sole Member of the Debtor. Dr. Fercan E. Kalkan is the sole member and manager of Kalkan Capital USA, LLC, a Texas limited liability company. Kalkan Capital USA LLC, a Texas limited liability company, shall retain its interest in the Debtor; however no distributions shall be made until all Allowed Claims have been paid in full. Texas Excel Property Management Services Corp. shall continue to manage the apartment complex at a reduced rate, which is an insider of the Debtor. Kalkan Capital USA LLC, a Texas limited liability company shall remain the Debtor's Sole Member and shall serve without salary from the Debtor until all Plan payments have been made. On the Effective Date, all property of the estate and interests of the Debtor, that is property of the estate as of the date of Plan confirmation, will vest in the reorganized Debtor pursuant to Section 1141(b) of the Bankruptcy Code free and clear of all lien, claims, interests and encumbrances except as otherwise provided in this Plan. The obligations to creditors that Debtor undertakes in the confirmed Plan replace those obligations to creditors that existed prior to the Effective Date of the Plan. Debtor's obligations under the confirmed Plan constitute binding contractual promises that, if not satisfied through performance of the Plan, create a basis for an action for breach of contract under Texas law. To the extent a creditor retains a lien under the Plan, that creditor retains all rights provided by such lien under applicable non Bankruptcy law. A full-text copy of the Combined Plan and Disclosure Statement dated May 6, 2025 is available at https://urlcurt.com/u?l=ymvJwb from PacerMonitor.com at no charge. About Piney Point 2023 Piney Point 2023, LLC is a single asset real estate company headquartered in Spring, Texas. Piney Point 2023 sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 25-30128) on January 7, 2025. In its petition, the Debtor reports estimated assets between $100 million and $500 million and estimated liabilities between $50 million and $100 million. Honorable Bankruptcy Judge Jeffrey P. Norman handles the case. The Debtor is represented by: Steven Douglas Shurn, Esq. Hughes Watters Askanase Total Energies Tower 1201 Louisiana, 28th Floor Houston TX 77002 Tel: (713) 590-4200 Email: sshurn@hwa.com PISHPOSH INC: Seeks Chapter 11 Bankruptcy in New Jersey ------------------------------------------------------- On May 21, 2025, PishPosh Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of New Jersey. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 50 and 99 creditors. The petition states funds will not be available to unsecured creditors. About PishPosh Inc. PishPosh Inc. is an online retailer focused on premium baby products such as strollers, car seats, feeding devices, bedding, and nursery items. Based in Lakewood, New Jersey, the Company operates a flagship boutique in the state and distributes products through its e-commerce site as well as third-party platforms like Amazon. PishPosh Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. N.J. Case No. 25-15424) on May 21, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. The Debtors are represented by Sari B. Placona, Esq. at MCMANIMON, SCOTLAND & BAUMANN, LLC. PLANFUL INC: Monroe Marks $1.1 Million Secured Loan at 25% Off -------------------------------------------------------------- Monroe Capital Corporation has marked its $1,105,000 loan extended to Planful, Inc. to market at $826,000 or 75% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to Planful, Inc. The loan accrues interest at a rate of 10.57% per annum. The loan matures on December 28, 2026. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Monroe Capital Corporation Theodore L. Koenig 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About Planful, Inc Planful, Inc. is engaged in providing financial management software and solutions to help customers achieve peak performance and drive prosperity for their shareholders, employees, and the community. PROSPECT MEDICAL: Gets Approval to Cut Hospital Services -------------------------------------------------------- Katy Golvala of ct mirror reports that Connecticut officials have finalized a settlement with Prospect Medical Holdings, allowing the company to permanently scale back services at Rockville General Hospital in Vernon. According to the report, under the May 23, 2025 agreement, only emergency and behavioral health services will continue at the facility. Rockville General is one of three Connecticut hospitals owned by Los Angeles-based Prospect Medical, which filed for bankruptcy in January 2025. The settlement concludes a state investigation into the hospital's unauthorized service closures, which began in October 2023. Prospect agreed to a $300,000 claim for the state as part of the bankruptcy proceedings, pending court approval. The company is required to maintain emergency services at Rockville for at least three years and continue inpatient behavioral health services either on-site or within 30 miles. However, Prospect is not obligated to reinstate any of the previously discontinued services, ct mirror reports. The state's Office of Health Strategy (OHS) also approved Prospect’s request to change Rockville’s designation from a full-service acute care hospital to a satellite campus of Manchester Memorial Hospital, located about 20 minutes away. Further approval is required from the Department of Public Health, which oversees hospital licensing. OHS Commissioner Deidre Gifford stated the agreement helps safeguard essential care for the community. Still, concerns remain after a March report from a court-appointed ombudsman revealed that Rockville’s surgical, ICU, and medical-surgical units had been closed since March 2020 without state authorization. Under Connecticut law, shutting down hospital services for more than 180 days without approval constitutes a formal termination and may result in penalties of up to $1,000 per day. The closures were initially uncovered in a 2023 Connecticut Mirror investigation. Despite assurances earlier this year that all three hospitals would stay open during bankruptcy, Rockville will no longer function as a stand-alone acute care facility. Governor Ned Lamont had previously stated that the hospitals remained "very successful." His office did not comment on the latest agreement. State Rep. Tammy Nuccio, R-Tolland, whose district includes Rockville, criticized the outcome, saying rural communities were being neglected. "Profit over people," she said. "That's what I think we've come to expect from OHS and the state when it comes to health care outside large cities." The agreement will apply to any future buyer of Prospect's Connecticut hospitals. Yale New Haven Health had agreed to purchase the three facilities in 2022 for $435 million, but the deal has faced ongoing delays and complications, including lawsuits and the bankruptcy filing. Yale declared the deal unworkable earlier in 2025. The hospitals are now scheduled to be auctioned through bankruptcy court. OHS noted that the sale process is still underway. While a hearing was tentatively set for June 5, 2025, no official notice has been posted, and Prospect has not responded to requests for updates, the report states. The settlement also requires Prospect to notify the public of Rockville's consolidation, create an interim strategic plan, and hold a community forum within 60 days to gather public input and share its plans, according to report. Neither Prospect Medical Holdings nor Eastern Connecticut Health Network—owner of Rockville and Manchester Memorial—responded to requests for comment. About Prospect Medical Holdings Prospect Medical Holdings owns Roger Williams Medical Center, Our Lady of Fatima Hospital, and several other healthcare facilities. Prospect Medical sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80002) on Jan. 11, 2025. In the petition filed by Paul Rundell, as chief restructuring officer, the Debtor estimated assets and liabilities between $1 billion and $10 billion each. Bankruptcy Judge Stacey G. Jernigan handles the case. The Debtors' General Bankruptcy Counsel is Thomas R. Califano, Esq., and Rakhee V. Patel, Esq., at Sidley Austin LLP, in Dallas, Texas, and William E. Curtin, Esq., Patrick Venter, Esq., and Anne G. Wallice, Esq., at Sidley Austin LLP, in New York. The Debtors' Financial Advisor is ALVAREZ & MARSAL NORTH AMERICA, LLC. The Debtors' Investment Banker is HOULIHAN LIKEY, INC. The Debtors' Claims, Noticing & Solicitation Agent is OMNI AGENT SOLUTIONS, INC. PROVIDE GROUP II: Fitch Rates $212MM Ser. 2025A Revenue Bonds 'BB+' ------------------------------------------------------------------- Fitch Ratings has assigned a 'BB+' rating to Provident Group - PBAU Properties II LLC's $212.7 million series 2025A senior revenue bonds. The Rating Outlook is Stable. RATING RATIONALE The rating reflects the single asset nature of the project, which has a minority on-campus market share for all student housing. This includes 990 beds out of a projected 2,217 at Palm Beach Atlantic University (PBAU, Issuer Default Rating BBB+/Stable). The project has a long debt tenor, and Fitch expects narrow senior lien coverage levels near the minimum rate covenant requirement under its rating case. The entire project, which includes housing, dining, a wellness center and a parking garage, will be mainly funded by issuing senior and subordinate lien bonds. Once completed, these facilities will play a key role in on-campus student life activities. but high utilization will depend on continued favorable enrollment trends. With rising debt service and operating cost payment profiles, it will be challenging for the project to meet covenant requirements even with solid occupancy levels considering the benefit of student housing fees and annual university lease receipts. Fitch's rating case 10-year average senior lien debt service coverage ratio is slightly below 1.30x. Including the subordinate bonds, total coverage levels are approximately 1.1x, leaving an overall narrow cashflow cushion to cover all expected costs. The 40-year term of the bonds results in prolonged exposure to costs associated with facility maintenance and conditions. KEY RATING DRIVERS Completion Risk - Stronger Low Construction Complexity: Fitch does not view completion risk as a rating constraint due to the project's complexity, scope, and duration as well as its performance security package. Construction complexity is relatively low and will be managed by an experienced contractor with a record of executing similar student housing projects. With strong construction development in the area, there are many potential replacement contractors and subcontractors that can handle the scope of work, if needed. Cost and delay risks are reasonably mitigated. The project has several levels of contingencies, performance and payment bonds, and retainage. Additionally, there is a prefunded capitalized interest period for debt service extending six months beyond the substantial completion date. Revenue Risk - Volume - Midrange On-Campus Single Asset Facility with Initial Growth Dependency: The project's volume assessment is constrained by dependence on PBAU reaching or surpassing its high enrollment goals, primarily with full-time, in-person undergraduate students. The university has recently benefitted from increased applications and student deposits for housing, resulting in insufficient on-campus housing supply relative to demand. The university is also raising the age for mandatory on-campus residence to 21 from 20 and limiting exemptions, which will result in more students living on campus. The addition of 990 beds for the proposed project will materially expand the university's housing supply. It will be priced at the upper end of student housing options, posing significant risk from competition from lower priced options. University payments, representing over 20% of annual pledged cashflows, provides some downside protections to year-to-year volatility in occupancy levels. Revenue Risk - Price - Midrange Unrestricted Pricing Control; Established University Payments: There are no contractual restrictions on student housing pricing under the transaction documents. Oversight is provided by an operating committee governed jointly by PBAU and Provident Group. Both parties have a historical operating relationship from an existing on-campus in-use housing project. A premises sublease agreement establishes annual payments to the project over the final maturity of all debt intended to cover a share of capital costs associated with the dining, parking, and wellness facility for the life of the bonds. These payments provide cashflows not linked to demand risks but cannot be adjusted from the initial schedule regardless of project performance or long-term costs. Infrastructure Dev. & Renewal - Stronger New Facility, Flexible Maintenance Reserve Funding: The project includes a new 990-bed student housing facility, along with a new dining facility, wellness facility, and a nine-story parking facility with 704 spaces. A renewal and replacement fund is set at a robust level of $375 per bed to support both annual renovations and future periods of lifecycle capital. The project is obligated to prepare an annual capital plan. It additionally requires a condition facility report to be completed every five years to assess 10-year forward-looking maintenance needs and funding adequacy. Debt Structure - 1 - Stronger Conservative Debt Structure: The senior bonds incorporate a conservative, fully amortizing debt structure with a fixed rate of interest, although there is an increasing debt service payment profile through fiscal 2039, and annual payments are levelized annual thereafter. The debt tenor is relatively long for student housing. Project liquidity is supported by multiple reserves including operating (20% of budged operating costs), a replacement reserve ($375 per bed, plus annual escalations), and a debt service reserve sized to the maximum annual debt service. Senior bonds include comprehensive covenants, with 1.25x coverage required under the rate covenant, additional bonds test, and surplus funds distributions to PBAU. Financial Profile Fitch views the project's financial metrics as relatively weak, highlighted by narrow overall coverage levels and elevated leverage to fund project costs. Under Fitch's rating case, coverage levels at the senior lien are marginally above the 1.25x rate covenant requirement over the first 10-year period, and bed rates could require increases above inflationary levels to support this level of coverage cushion. While occupancy levels are assumed to be 93%, the university payments do provide for a relatively strong occupancy break-even level at 78% to cover all annual operating and debt costs. With only modest university equity funding to support the 2025 project coupled with annual surplus distributions back to the university, starting leverage is elevated at 15x and remains high for extended periods over the debt term. PEER GROUP A comparable publicly rated student housing credit includes SFP Tampa (BB+/Negative). This project is a newly built single site, off-campus building, which represents a small percentage of available university-wide housing stock. SFP's rating is constrained by its financial metrics with average lifetime Fitch calculated senior DSCR of 1.6x (1.3x over the next 10 years). Fitch rates several other comparable public and private student housing projects with investment grade ratings given a combination of existing operations, superior franchise strength being on-campus, more diversified across several assets/universities, and/or representing a greater proportion of housing stock, and more robust financial profiles and capital reserves. These transactions typically have much stronger lifetime DSCR profiles with minimums of around 1.4x or greater. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Setbacks during the project delivery phase that result in late completion; - Weaker occupancy levels or operating costs, causing Fitch rating case senior coverage to fall below 1.20x on a sustained basis; - Material weakening of PBAU's credit profile that is relevant to both the stability of project operations and the sublease payments. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Successful project completion on time and within budget followed by a stabilized operating history; - Strong and sustainable occupancy levels that raise senior DSCRs to or above 1.30x under the Fitch rating case. TRANSACTION SUMMARY Palm Beach County, Florida (on behalf of Provident Group - PBAU Properties II LLC) plans to issue $212.7 million of series 2025A senior revenue bonds and $23.1 million of series 2025B subordinate revenue bonds (the latter not rated by Fitch). The proceeds will be used to finance approximately $185.0 million for the design, development, construction and equipping of an approximately 990-bed student housing facility and the design, development, construction, and equipping of an approximately 28,000 square foot dining facility, approximately 14,000 square foot healthcare and wellness facility and an adjacent nine-story approximately 704 space parking facility. The university will be providing $9 million of upfront equity as a supplemental funding source for project costs. The senior bonds will have a 40-year debt tenor, maturing in 2065. Date of Relevant Committee 15 May 2025 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 ----------- ------ Provident Group – PBAU Properties II LLC Provident Group – PBAU Properties II LLC/Housing Revenues - Senior Lien/1 LT LT BB+ New Rating QVC GROUP: Stockholders OK'd All Key Proposals at Annual Meeting ---------------------------------------------------------------- At QVC Group, Inc.'s annual meeting of stockholders, the following proposals were considered and acted upon by the stockholders of the Company: (1) A proposal to elect Richard N. Barton and M. Ian G. Gilchrist to continue serving as Class III members of the Company's board of directors until the 2028 annual meeting of stockholders or their earlier resignation or removal; (2) A proposal to approve the adoption of an amendment to the Company's Restated Certificate of Incorporation to effect a reverse stock split of its Series A common stock, par value $0.01 per share, and its Series B common stock, par value $0.01 per share, at a ratio of at least 1-for-2 and up to 1-for-50, with the exact ratio within the foregoing range to be determined by the Company's board of directors (or a committee thereof) and publicly disclosed prior to the effectiveness of the reverse stock split (the "reverse stock split proposal"); (3) A proposal to ratify the selection of KPMG LLP as the Company's independent auditors for the fiscal year ending December 31, 2025 (the "auditors ratification proposal"); and (4) A proposal to approve, on an advisory basis, the compensation of the Company's named executive officers as described in the definitive proxy statement relating to the Annual Meeting under the heading "Executive Compensation" (the "say-on-pay proposal"). The number of votes cast for, against or withheld, as well as the number of abstentions and broker non-votes as to each proposal are as follows: 1. Election of the following Nominees to the Company's Board of Directors: * Richard N. Barton Votes For: 206,399,108 Votes Withheld: 112,858,980 Broker Non-Votes: 79,420,242 * M. Ian G. Gilchrist Votes For: 285,741,233 Votes Withheld: 33,516,855 Broker Non-Votes: 79,420,242 Accordingly, the nominees were re-elected to the Company's board of directors. 2. The Reverse Stock Split Proposal: Votes For: 387,456,389 Votes Against: 10,279,594 Abstentions: 942,347 Broker Non-Votes: - Accordingly, the reverse stock split proposal was approved. 3. The Auditors Ratification Proposal: Votes For: 389,861,607 Votes Against: 7,819,474 Abstentions: 997,249 Broker Non-Votes: – Accordingly, the auditors ratification proposal was approved. 4. The Say-On-Pay Proposal: Votes For: 269,705,162 Votes Against: 45,059,549 Abstentions: 4,493,377 Broker Non-Votes: 79,420,242 Accordingly, the say-on-pay proposal was approved. About QVC Group QVC Group, Inc., formerly known as Qurate Retail, Inc. -- https://www.qvcgrp.com/ -- owns interests in subsidiaries and other companies which are primarily engaged in the video and online commerce industries. Through our subsidiaries and affiliates, we operate in North America, Europe and Asia. Its principal businesses and assets include our consolidated subsidiaries QVC, Inc., Cornerstone Brands, Inc., and other cost method investments. As of Dec. 31, 2024, QVC Group had $9.24 billion in total assets, $10.13 billion in total liabilities, and $885 million in total stockholders' equity. * * * As reported by TCR on April 22, 2024, S&P Global Ratings revised its outlook to stable from negative and affirmed all its ratings on U.S.-based video commerce and online retailer Qurate Retail Inc., including its 'CCC+' Company credit rating. The stable outlook reflects S&P's expectation that Qurate will maintain sufficient liquidity over the next 12 months despite its view that its capital structure remains unsustainable, as further cost reductions offset sales weakness and support profit recovery. RECYCLED PLASTICS: Monroe Marks $284,000 Secured Loan at 67% Off ---------------------------------------------------------------- Monroe Capital Corporation has marked its $284,000 loan extended to Recycled Plastics Industries, LLC to market at $94,000 or 33% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to Recycled Plastics Industries, LLC. The loan accrues interest at a rate of 11.16% Cash/0.50% PIK per annum. The loan matures on August 4, 2026. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About Recycled Plastics Industries, LLC Recycled Plastics Industries, LLC has been providing thoughtful, customized lumber solutions for a wide range of partner application in the U.S. RELEVATE HEALTH: Monroe Marks $316,000 Secured Loan at 33% Off -------------------------------------------------------------- Monroe Capital Corporation has marked its $316,000 loan extended to Relevate Health Group, LLC to market at $211,000 or 67% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to Relevate Health Group, LLC. The loan accrues interest at a rate of 10.67% per annum. The loan matures on December 31, 2026. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About Relevate Health Group, LLC Relevate Health Group, LLC is an omni know-how expert – delivering data-driven engagement and omnichannel activation for targeted health care audiences. RENSOL REALTY: Seeks Chapter 11 Bankruptcy in New York ------------------------------------------------------ On May 22, 2025, Rensol Realty Ltd. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of New York. According to court filing, the Debtor reports $950,665 in debt owed to 1 and 49 creditors. The petition states funds will not be available to unsecured creditors. About Rensol Realty Ltd. Rensol Realty Ltd. is a single-asset real estate company that owns a property located at 232A Putnam Avenue in Brooklyn, New York. The property is valued at approximately $2.1 million. Rensol Realty Ltd. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-42512) on May 22, 2025. In its petition, the Debtor reports total assets of $2,100,000 and total liabilities of $950,665. Honorable Bankruptcy Judge Nancy Hershey Lord handles the case. The Debtors are represented by Thomas A. Farinella, Esq. at LAW OFFICE OF THOMAS A. FARINELLA, PC. RESEARCH EDUCATION: Claims to be Paid From Future Income -------------------------------------------------------- Research Education and Access for Community Health ("REACH") filed with the U.S. Bankruptcy Court for the District of Nevada a Plan of Reorganization for Small Business dated May 6, 2025. The Debtor is a Nevada 501(c)(3) non-profit organization established on February 4, 2011. Ms. Rebeca Aceves is the President and Chief Executive Officer of REACH, and, in this role, she manages all aspects of the Debtor's day-to-day operations, as well as being responsible for its overall strategic plan. The Debtor's main source of revenue is from grants received from various charitable organizations, with additional revenue coming in the form of donations received from private individuals. If the Debtor were to utilize a significant portion of the funds for other than the required charitable purpose, it is a virtual certainty that all future grants and donations would cease. Through this Plan of Reorganization, the Debtor will restructure and address certain legacy debts associated with the failed Clinic discussed above. Confirmation of the Plan will allow the Debtor to refocus on and continue the core of its important charitable mission, as it existed prior to the Clinic's opening. The Plan Proponent's financial projections show that the Debtor will have projected disposable income of $67,783.00 for the period of three years. The Debtor anticipates making its first quarterly plan payment on or about August 15, 2025, assuming the Plan is confirmed and goes effective by July 30, 2025. Thereafter, the Debtor will make payments quarterly, with such payments being made on January 15, April 15, July 15, and October 15 of each respective year. The final Plan payment is expected to be paid in April of 2028, assuming the Plan is confirmed and goes effective by the date specified. The Plan proposes to pay creditors of Research Education and Access for Community Health from cash flow from operations and future income of the Debtor. Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately $0.16 cents on the dollar. This Plan also provides for the payment of administrative claims. The Debtor is unaware of and priority claims or secured claims. Because the Debtor is a non-profit entity, there are no equity security holders of the Debtor. Class 1 consists of Non-priority unsecured creditors. Each holder of an Allowed Class 1 general unsecured claim, shall receive its pro rata share of the Debtor's disposable income as set forth in Exhibit 2 to the Plan, to commence as to each holder following the Effective Date of the Plan or the date on which such claim is allowed by a final nonappealable order, whichever shall first occur, which payments will be in full satisfaction of all Allowed general unsecured claims in Class 1. Class 1 is impaired and is entitled to vote to accept or reject the Plan. The Plan will be funded through cash flow generated by the future operations of the Debtor. A full-text copy of the Plan of Reorganization dated May 6, 2025 is available at https://urlcurt.com/u?l=kNrEOJ from PacerMonitor.com at no charge. Counsel to the Debtor: Ryan A. Andersen, Esq. ANDERSEN BEEDE WEISENMILLER 3199 E Warm Springs Rd, Ste 400 Las Vegas, NV 89120 Telephone: (702) 522-1992 Facsimile: (702) 825-2824 Email: ryan@aandblaw.com About Research Education and Access for Community Research Education and Access for Community Health sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-10689) on Feb. 6, 2025, listing between $100,001 and $500,000 in assets and between $500,001 and $1 million in liabilities. Judge Mike K. Nakagawa presides over the case. Ryan A. Andersen, Esq., at Andersen Beede Weisenmiller, is the Debtor's legal counsel. RITE AID: Closes Store in Central Pennsylvania ---------------------------------------------- Daniel Urie of Penn Live reports that Rite Aid will shut down its store at 1430 Baltimore Street in Penn Township, near Hanover, as part of a new round of closures outlined in a bankruptcy filing on Friday, May 23, 2025. The store is one of 151 additional locations being closed, on top of the 210 already announced. According to the report, the company filed for bankruptcy earlier in May 2025 for the second time, seeking to carry out a "strategic and value-maximizing sale process for substantially all of its assets." The majority of Rite Aid's 1,200+ stores are expected to close, including several hundred in Pennsylvania. Now based in Philadelphia and formerly headquartered in Cumberland County, Rite Aid has a significant footprint in the state, operating more than 300 locations. The company also plans to cut around 1,100 corporate jobs tied to offices in York County and Philadelphia, according to Penn Live. Rite Aid has reached agreements to sell pharmacy assets from over 1,000 stores across the U.S. to major chains including CVS Pharmacy, Walgreens, Albertsons, Kroger, and Giant Eagle, the report states. CVS will acquire prescription records from 625 Rite Aid pharmacies in 15 states and will take over 64 store locations in Idaho, Oregon, and Washington. The U.S. Bankruptcy Court approved these deals last week, according to Reuters. About Rite Aid Rite Aid is a full-service pharmacy committed to improving health outcomes. Rite Aid is defining the modern pharmacy by meeting customer needs with a wide range of solutions that offer convenience, including retail and delivery pharmacy, as well as services offered through the Company's wholly owned subsidiary Bartell Drugs. On the Web: http://www.riteaid.com/ Rite Aid and certain of its subsidiaries previously filed for chapter 11 bankruptcy in October 2023 and emerged from bankruptcy in August 2024. On May 5, 2025, New Rite Aid, LLC and its subsidiaries, including Rite Aid Corporation, commenced voluntary Chapter 11 proceedings (Bankr. D.N.J. Lead Case No. 25-14861). As of the 2025 bankruptcy filing date, Rite Aid operates 1,277 stores and 3 distribution centers in 15 states and employs approximately 24,500 people. Rite Aid is using the Chapter 11 process to pursue a sale of its prescriptions, pharmacy and front-end inventory, and other assets. The cases are being administered by the Honorable Michael B. Kaplan. 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. Kroll is the claims agent and maintains the page https://restructuring.ra.kroll.com/RiteAid2025 Bank of America, N.A., as DIP Agent, is represented by lawyers at Greenberg Traurig, LLP; and Choate Hall & Stewart LLP. RITE AID: Computershare Appointed to Creditors' Committee --------------------------------------------------------- The U.S. Trustee for Regions 3 and 9 disclosed in a notice that he appointed Computershare Trust Company, NA as additional member of the official committee of unsecured creditors in the Chapter 11 cases of New Rite Aid, LLC and its affiliates. Meanwhile, U.S. Bank Trust Company, N.A. was previously identified as member of the creditors committee. Its name no longer appears in the new notice. The committee is now composed of: 1. RAD Sub-Trust A c/o Emmet, Marvin & Martin LLP 120 Broadway, 32nd Floor New York, NY 10271 Attn: Thomas A. Pitta, Trustee 212-238-2148 tpitta@emmetmarvin.com 2. RAD Sub-Trust B c/o Halperin Battaglia Benzija, LLP 40 Wall St., 37th Fl. New York, NY 10005 Attn: Alan D. Halperin, Trustee 212-765-9100 ahalperin@halperinlaw.net 3. AmerisourceBergen Drug Corporation 1 West First Street Conshohocken, PA 19428 Attn: L. Brian Abbot 610-727-7000 brian.abbott@cencora.com 4. Pension Benefit Guaranty Corporation 445 12th Street SW Washington, DC 20024 Attn: Carl Charlotin 202-229-6611 charlotin.carl@pbgc.gov 5. Realty Income Corporation 11995 El Camino Real San Diego, CA 92130 Attn: Kyle Campbell 858-284-5215 kcampbell@realtyincome.com 6. United Food and Commercial Workers International Union 1775 K Street NW Washington, DC 20006 Attn: Brian Wynn 202-728-1801 bwynn@ufcw.org 7. Iron Mountain Information Management, LLC 1101 Enterprise Drive Royersford, PA 19468 Attn: Barry Hytinen 215-301-1872 barry.hytinen@ironmountain.com 8. Evergreen-Partners, LLC d/b/a Evergreen Trading 233 Spring St., 5th Fl. New York, NY 10013 Attn: Viktoria Glincman 917-379-4891 vglincman@evergreentrading.com 9. Computershare Trust Company, NA 1505 Energy Park Drive St. Paul, MN 55108 Attn: Rachel Atkin 862-341-9552 rachel.atkin@computershare.com About Rite Aid Rite Aid is a full-service pharmacy committed to improving health outcomes. Rite Aid is defining the modern pharmacy by meeting customer needs with a wide range of solutions that offer convenience, including retail and delivery pharmacy, as well as services offered through the Company's wholly owned subsidiary Bartell Drugs. On the Web: http://www.riteaid.com/ Rite Aid and certain of its subsidiaries previously filed for Chapter 11 bankruptcy in October 2023 and emerged from bankruptcy in August 2024. On May 5, 2025, New Rite Aid, LLC and its subsidiaries, including Rite Aid Corporation, commenced voluntary Chapter 11 proceedings (Bankr. D.N.J. Lead Case No. 25-14861). As of the 2025 bankruptcy filing date, Rite Aid operates 1,277 stores and 3 distribution centers in 15 states and employs approximately 24,500 people. Rite Aid is using the Chapter 11 process to pursue a sale of its prescriptions, pharmacy and front-end inventory, and other assets. The cases are being administered by the Honorable Michael B. Kaplan. 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. Kroll is the claims agent and maintains the page https://restructuring.ra.kroll.com/RiteAid2025 Bank of America, N.A., as DIP Agent, is represented by lawyers at Greenberg Traurig, LLP; and Choate Hall & Stewart LLP. The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. RIVAL COMMERCIAL: Lender Seeks to Prohibit Cash Collateral Access ----------------------------------------------------------------- Grand Savings Bank asked the U.S. Bankruptcy Court for the Western District of Arkansas, Fort Smith Division, to prohibit Rival Commercial RE, LLC from using cash collateral. Grand is a secured lender, holding first-priority mortgages and assignments of rents and leases on real property located in Sebastian County, Arkansas. Rival is indebted to Grand under nine promissory notes secured by real estate and cross-collateralized, each with outstanding balances and accruing daily interest. The loans range in principal amounts from $90,000 to over $1.2 million, totaling several million dollars. In each case, Rival executed a promissory note and a corresponding mortgage to secure repayment, all of which were properly recorded. Grand argued that it holds a secured interest in both the real property and the rents, leases, and construction materials associated with these properties, which constitute cash collateral under 11 U.S.C. section 363. The lender alleged that certain construction materials have already been removed from the properties but it has not received any post-petition payments or protection for its interests. The lender argued that the Debtor has used or may be using the cash collateral without its consent or court authorization, which is prohibited by law. A court hearing is scheduled for June 25. About Rival Commercial RE Rival Commercial RE, LLC, operating under the trade name Rival Construction LLC, is a commercial real estate development firm based in Fort Smith, Ark. It is notably recognized for its work on The Barracks at Chaffee, a mixed-use retail and residential development situated in the Chaffee Crossing Entertainment District. Rival Commercial RE sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ark. Case No. 25-70623) on April 11, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. Judge Bianca M. Rucker handles the case. The Debtor is represented by Stanley V. Bond, Esq., at Bond Law Office. Grand Savings Bank, as lender, is represented by: Jay B. Williams, Esq. Williams Law Firm of Arkansas 100 W. Main Gentry, AR 72734 Fax: (479) 736-8800 | 736-3170 jay@williamslawfirm.net ROCK HOME: Glen Watson Named Subchapter V Trustee ------------------------------------------------- The Acting U.S. Trustee for Region 8 appointed Glen Watson, Esq., at Watson Law Group, PLLC as Subchapter V trustee for Rock Home, LLC. Mr. Watson 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. Watson declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Glen Watson, Esq., Watson Law Group, PLLC 1114 17th Av. S., Suite 201 P.O. Box 121950 Nashville, TN 37212 Telephone: (615) 823-4680 Email: glen@watsonpllc.com About Rock Home LLC Rock Home, LLC is a privately held company with principal real estate assets located in Nashville, Tenn. Rock Home sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Tenn. Case No. 25-01934) on May 5, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. Judge Nancy B. King handles the case. The Debtor is represented by Denis Graham Waldron, Esq., at Dunham Hildebrand Payne Waldron, PLLC. ROCKAWAY CONTRACTING: Seeks Subchapter V Bankruptcy in New York --------------------------------------------------------------- On May 26, 2025, Rockaway Contracting Corp. 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 50 and 99 creditors. The petition states funds will be available to unsecured creditors. About Rockaway Contracting Corp. Rockaway Contracting Corp. is a construction firm based in Syosset, New York. The Company specializes in commercial and residential projects and has handled multiple large-scale developments. Rockaway Contracting Corp. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11167) on May 26, 2025. In its petition, the Debtor reports estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. The Debtors are represented by Lawrence F. Morrison, Esq. at MORRISON TENENBAUM PLLC. SEXTANT STAYS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Sextant Stays, Inc. d/b/a Roami 296 NE 67th Street Miami, FL 33138 Business Description: Sextant Stays, Inc., dba Roami, is a hospitality company that offers urban group travel accommodations in cities such as Miami and New Orleans. Founded in 2016, the Company manages entire buildings to provide consistent, design-forward spaces aimed at delivering memorable and connected travel experiences. Roami's approach bridges the gap between traditional hotels and inconsistent vacation rentals, catering to modern travelers seeking comfort, reliability, and style. Chapter 11 Petition Date: May 27, 2025 Court: United States Bankruptcy Court Southern District of Florida Case No.: 25-15908 Judge: Hon. Robert A Mark Debtor's Counsel: Brett Lieberman, Esq. EDELBOIM LIEBERMAN PLLC 2875 NE 191st Street, Penthouse One Suite 905 Miami, FL 33180 E-mail: brett@elrolaw.com Total Assets: $5,033,274 Total Liabilities: $15,895,759 Andreas King-Geovanis signed the petition as CEO. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/XS4SI3I/Sextant_Stays_Inc_dba_Roami__flsbke-25-15908__0001.0.pdf?mcid=tGE4TAMA SHAW SERVICES: Seeks Subchapter V Bankruptcy in Mississippi ----------------------------------------------------------- On May 22, 2025, Shaw Services LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Mississippi. 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 Shaw Services LLC Shaw Services LLC is a family-owned commercial construction company specializing in concrete and site work across Mississippi, Alabama, and Tennessee. Founded in 1997, the firm is licensed and bonded, and also offers pressure washing and roof coating services. Shaw Services LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Miss. Case No. 25-11621) on May 22, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtors are represented by J. Walter Newman, IV, Esq. at NEWMAN & NEWMAN. SIBANYE-STILLWATER: Fitch Affirms 'BB' LongTerm IDR, Outlook Neg. ----------------------------------------------------------------- Fitch Ratings has affirmed Sibanye-Stillwater Limited's (Sibanye) Long-Term Issuer Default Rating (IDR) at 'BB'. The Outlook remains Negative. Fitch has also affirmed the senior unsecured rating on the bonds issued by Stillwater Mining Company and guaranteed by Sibanye at 'BB'. The Recovery Rating is 'RR4'. The Negative Outlook reflects continuous weakness in the precious group metals (PGM; platinum, palladium and rhodium), coupled with high costs across major assets at a time of growth investment in battery materials. Fitch expects free cash flow (FCF) to remain negative due to large project-related capex, while EBITDA net leverage will be above its negative rating sensitivity of 1.5x, as Fitch expects EBITDA to reduce materially when gold prices normalise from the current high levels. The company has implemented broad restructuring and cost-cutting initiatives, alongside financial profile enhancement measures, in the face of high costs relative to weak PGM prices. Key Rating Drivers Mid-Cycle High Leverage: Fitch expects 2025 EBITDA to rise to ZAR21.8 billion on high gold prices, lifting contribution from this metal to 68% to the company's EBITDA, from 46% in 2024. However, Fitch expects its share to fall back towards 38% in 2027, with EBITDA of ZAR14 billion as gold prices normalise. Fitch expects EBITDA net leverage to remain at 1.3x in 2025, before increasing to 1.7x in 2027, exceeding its negative leverage sensitivity, which is reflected in the Negative Outlook. This is despite the positive contribution from Keliber, which Fitch expects to become operational in 2026. Fitch expects management to take decisive actions to maintain net debt/EBITDA within its stated target of 1.0x when commodity prices moderate from their peak. Material Business Plan Execution Risk: Sibanye has embarked on a broad restructuring programme across its South African and US operations to tackle weak profitability over the past two years. In South Africa, the company has closed or put on care and maintenance some loss-making shafts and reduced its cost base with estimated cost savings of ZAR3.5 billion a year. In the US, annual production of palladium and platinum was reduced by 200,000 oz a year, alongside headcount optimisation. Nevertheless, costs remain high at several PGM mines, especially in the US, and gold assets remain firmly in the fourth quartile of the global cost curve. PGM Prices Remain Subdued: Prices for platinum and palladium have remained subdued over the last two years. Major PGM producers have announced efficiency measures and scaled back growth capex but have yet to implement meaningful production cuts. In response, platinum and palladium prices remain around USD1,000 per ounce. Global trade tensions continue to affect investor sentiment, increasing uncertainty about the longer-term prices of platinum and palladium. CRU expects the platinum market to remain in short supply until 2027. However, it projects supply will outpace demand in the medium term, leading to a surplus. Limited Impact from Tariffs: Exports of gold and platinum from South Africa are outside the current US tariffs framework, while the company also has PGM operations in the US, limiting the direct impact of US tariffs. However, Fitch sees a risk that tariffs may slow economic activity and automotive production, in turn affecting demand for PGMs. Meantime, the US Section 45X tax credits, which will cover for 10% of mining and recycling costs, translating into about USD100 million-200 million initial cash inflows from 2026, will support the EBITDA of its US operations, which have been generating negative free cash flow (FCF). FCF in Focus: Sibanye has been restructuring its operations and has reduced its cash outflows, in response to persistently soft metals prices. No dividend was paid in 2024. Management plans to resume shareholder distribution only when FCF turns sustainably positive and leverage reduces towards its net debt/EBITDA target of below 1x, which should help support its financial profile. Nevertheless, its forecast assumes that leverage will remain above this threshold to 2028. Battery Metals Diversification: Sibanye is progressing with Keliber, an EUR759 million lithium greenfield project in Finland, to diversify its earnings base beyond PGMs. Euro-denominated debt funding was secured for the project last year. Production will start in 2026, with a positive FCF contribution expected from 2027. The company also considered the Rhyolite Ridge lithium project in the US but has decided not to proceed with it. Lithium Comes Off Market Peak: Lithium supply has expanded ahead of demand, and the market should be well supplied over the medium term. Fitch expects prices to remain at moderate levels up to 2028. Over the longer term, the market should tighten as the energy transition gathers pace. Fitch expects Keliber will add ZAR2 billion to the company's EBITDA based on mid-cycle prices. This is after considering an expected cash cost of USD7,500 per tonne and its lithium price assumptions. South African Country Ceiling Applied: Fitch anticipates that all-in sustaining costs of US operations will remain high compared with realised 'basket' prices for PGMs. This suggests that cash flow generation from the US is unlikely to consistently cover hard-currency gross interest expense over the coming years. As a result, Fitch uses South Africa's Country Ceiling of 'BB', which does not constrain Sibanye's Long-Term 'BB' IDR. Fitch might reconsiders the Country Ceiling of Finland once Keliber is fully operational, which may generate sufficient earnings to cover the company's interest expense. Peer Analysis Endeavour Mining plc (BB/Stable) is a gold miner across Cote d'Ivoire, Senegal and Burkina Faso, resulting in the highest country risk among peers. French-based Eramet S.A. (BB/Negative) produces manganese ore, mineral sands and nickel in Indonesia, Gabon and is about to start production at its lithium project in Argentina. The cost positions of Endeavour and Eramet are more favourable, with first to second quartile positions on their respective metals' cost curves. This compares with Sibanye's gold mining located in the fourth quartile and its PGM assets spread between the first and the fourth quartiles. Endeavour's reserve life is shorter than that of Sibanye and Eramet but is in line with the median for gold producers. Both Sibanye and Eramet experienced sharp declines in the prices of their respective key commodities since 2023. This resulted in leverage metrics above their negative rating sensitivities. Fitch anticipates that Sibanye's leverage will remain within 'BB' sensitivities based on its mid-cycle gold and PGMs price assumptions. Fitch expects that Eramet's leverage will decrease below its negative leverage sensitivity in 2026 as prices normalise and its lithium project commences. Endeavour has the most conservative financial policy among its peers with a public commitment to maintaining net debt/EBITDA below 0.5x, but it may exceed this target during capital-intensive growth. Key Assumptions - Price assumptions for platinum, palladium, rhodium, gold and lithium carbonate in line with Fitch's price deck - South African rand to the US dollar at 18.3 over 2025-2028 - Tax credits to be received in the US in cash at around USD200 million in 2026 and around USD100 million a year from 2027 - No dividends to be declared over the medium term - Capex of ZAR20 billion in 2025, reducing towards ZAR10 billion a year by 2028 - Convertible bond to be settled via equity issuance at maturity in 2028 - Closure of some loss-making PGM shafts at Fitch's mid-cycle price assumptions RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA net leverage above 1.5x and EBITDA gross leverage above 2.0x on a sustained basis - EBITDA interest coverage consistently below 6.0x - Persistently negative FCF due to high capex, dividends or share buybacks - Political risks, labour disputes or power-supply disruptions in South Africa negatively affecting cash flow generation for an extended period - Payment of dividends to common shareholders/share buybacks, or any corporate activity that is funded from Sibanye's balance sheet, while forecast credit metrics exceed negative sensitivities and negative FCF continues to add to net debt Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade As the Outlook is Negative, Fitch does not expect an upgrade at least in the short term. The following, however, could lead to the Outlook being revised to Stable: - Positive FCF on a sustained basis - Reduction in gross debt (Fitch adjusted) towards ZAR40 billion by end-2026 - EBITDA net leverage below 1.5x and EBITDA gross leverage below 2.0x on a sustained basis - EBITDA interest coverage above 6.0x on a sustained basis - Improvement in cost position, leading to stronger EBITDA margins Liquidity and Debt Structure At end-2024, Sibanye had around USD855 million of cash, a USD1 billion undrawn revolving credit facility (RCF) with maturity in April 2028 and a ZAR6.5 billion three-year RCF, compared with ZAR562 million short-term maturities (USD30 million). Fitch forecasts FCF at negative ZAR2.3 billion in 2025. The company's USD675 million notes mature in November 2026 and it plans to refinance the notes in 1H26. Sibanye will draw down around ZAR3.5 billion from the Keliber facility to fund capex and use the remaining portion of its stream facility this year. This leaves sufficient available liquidity at least for the next 24 months. Issuer Profile Sibanye is a leading international precious metals mining company, with a diverse portfolio of PGM operations in South Africa and the US, and gold operations and projects in South Africa. Issuer Appeal In accordance with Fitch's policies, the issuer appealed and provided additional information to Fitch that resulted in a rating action that is different to the original rating committee outcome. 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 Sibanye has an ESG Relevance Score of '4' for Employee Wellbeing due to ongoing safety-related incidents, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Stillwater Mining Company Guaranteed LT BB Affirmed RR4 BB Sibanye-Stillwater Limited LT IDR BB Affirmed BB SIGNIA LTD: Male Excel Wins Dismissal of Adversary Case ------------------------------------------------------- Judge Thomas B. McNamara of the United States Bankruptcy Court for the District of Colorado granted the motion of Male Excel Medical, P.A. and Male Excel, Inc. to dismiss the amended complaint in the adversary proceeding captioned as SIGNIA, LTD., Plaintiff, v. MALE EXCEL MEDICAL, P.A. and MALE EXCEL, INC., Defendants, Adv. Pro. No. 24-1214-TBM (Bankr. D. Colo.). The dispute before the Bankruptcy Court is the latest chapter in the long saga of litigation between the Debtor, Signia, Ltd. , and it principal creditors, Male Excel Medical, P.A. and Male Excel, Inc.. About five years ago, Male Excel sued the Debtor (which had been providing sales and marketing services to Male Excel) in Nevada State Court. In 2023, the Nevada State Court entered a Judgment in favor of Male Excel and against the Debtor in the amount of $2,051,745, plus attorneys' fees, costs, and interest. Male Excel asserts that the amount of debt owed by the Debtor under the Judgment has ballooned to about $5,376,730. The Debtor appealed. Meanwhile, Male Excel has been trying to collect on the Judgment. The Debtor filed two petitions for bankruptcy protection under Chapter 11 of the Bankruptcy Code to stop collection by Male Excel and attempt to reorganize. A few days after dismissal of its first bankruptcy case, the Debtor filed the current bankruptcy case: In re Signia, Ltd., 24-13438 TBM (Bankr. D. Colo.). During the pendency of the Second Bankruptcy Case, on Sept. 16, 2024, Male Excel commenced a lawsuit in the United States District Court for the District of Colorado captioned: Male Excel Medical, P.A. et al. v. Alfred Trexler et al., Case No. 1:24-cv-02539 KAS (D. Colo.). In the Federal Court Action, Male Excel asserted alter ego claims against the corporate parents of the Debtor as well as certain other related entities and individuals -- but not the Debtor -- to try to collect on the Judgment. The Federal Court Action is pending. On Sept. 17, 2024, the Debtor filed a Settlement Agreement in the Second Bankruptcy Case purporting to settle the same type of alter ego claims asserted by Male Excel in the Federal Court Action with its own insider corporate parents and related entities and individuals. Then, the next day, the Debtor filed this Adversary Proceeding. In this Adversary Proceeding, the Debtor claims that the alter ego claims advanced by Male Excel in the Federal Court Action are "property of the estate" under Sections 541(a)(1) and/or 544(a) within the exclusive control of the Debtor. The Debtor then asserts that Male Excel is violating the Section 362(a) automatic stay by prosecuting the Federal Court Action and should be enjoined from doing so as well as punished with damages. Male Excel submitted a Motion to Dismiss Amended Complaint for (A) Declaratory and Injunctive Relief and (B) Damages. It argues that this Adversary Proceeding should be dismissed for failure of the Debtor to state a claim upon which can be granted pursuant to Fed. R. Civ. P. 12(b)(6), as incorporated by Fed. R. Bankr. P. 7012. The Debtor opposed the Motion to Dismiss. Long-standing precedent from the United States Bankruptcy Court for the District of Colorado and the United States District Court for the District of Colorado -- applying Colorado law -- dictates that the Alter Ego Claims asserted by Male Excel in the Federal Court Action are not "property of the estate" within the meaning of Section 541(a)(1). The Debtor has not advanced any argument otherwise or cited any Colorado law supporting its ownership of the Alter Ego Claims under Section 541(a)(1) as "property of the estate." Accordingly, the Bankruptcy Court determines as a matter of law based on the Amended Complaint (supplemented by the Federal Court Complaint), that the Debtor has failed to state a claim that Male Excel's Alter Ego Claims are "property of the estate" within the meaning of Section 541(a)(1) such that Male Excel's prosecution of the Federal Court Complaint constitutes a violation of Section 362(a)(3). The Debtor has been unable to identify any reported decision from the Tenth Circuit, the United States District Court for the District of Colorado or the United States Bankruptcy Court for the District of Colorado which stands for the proposition that a debtor-in-possession has the exclusive right to pursue traditional alter ego claims against its own parents such that any similar actions brought outside of bankruptcy court by creditors violate the Section 362(a)(3) automatic stay. The Debtor cannot prevail and has not established a plausible violation of the Section 362(a) automatic stay by Male Excel. Accordingly, the Motion to Dismiss is granted and the Amended Complaint is dismissed. A copy of the Court's decision is available at http://urlcurt.com/u?l=8nOnjlfrom PacerMonitor.com. SPORTS OPERATING: Monroe Capital Marks $2.3-Mil. Loan at 21% Off ---------------------------------------------------------------- Monroe Capital Corporation has marked its $2,385,000 loan extended to Sports Operating Holdings II, LLC to market at $1,884,000 or 79% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to Sports Operating Holdings II, LLC. The loan accrues interest at a rate of 10.17% per annum. The loan matures on November 3, 2027. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About Sports Operating Holdings II, LLC Sports Operating Holdings II, LLC is engaged in diversified and production of media content in the U.S. STARCO BRANDS: The Production Board Holds 9.5% Equity Stake ----------------------------------------------------------- The Production Board, LLC, disclosed in a Schedule 13G filed with the U.S. Securities and Exchange Commission that as of February 14, 2023, it beneficially owned 61,696,700 shares of Starco Brands, Inc.'s Class A Common Stock, representing 9.5% of the 647,431,696 shares outstanding as of April 16, 2025, as reported in the Company's most recent Annual Report on Form 10-K. The Production Board may be reached through: David Friedberg, Chief Executive Officer 548 Market Street, San Francisco, CA 94104 Tel: 415-854-7074 A full-text copy of The Production Board's SEC report is available at: https://tinyurl.com/ycu3ee2v About Starco Brands Santa Monica, Calif.-based Starco Brands (OTCQB: STCB) -- starcobrands.com -- invents consumer products with behavior-changing technologies that spark excitement. Starco Brands identifies whitespaces across consumer product categories. Starco Brands publicly trades on the OTCQB stock exchange so that retail investors can invest in STCB alongside accredited individuals and institutions. Irvine, Calif.-based Macias, Gini, and O'Connell LLP, the Company's auditor since 2022, issued a "going concern" qualification in its report dated April 18, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has a working capital deficit of approximately $10M and an accumulated deficit of approximately $81 million at December 31, 2024, including the impact of its net loss of approximately $17 million for the year ended December 31, 2024. The Company's ability to raise additional capital through the future issuances of common stock and/or debt financing is unknown. The obtainment of additional financing and the successful development of the Company's contemplated plan of operations, to the attainment of profitable operations are necessary for the Company to continue operations. STARCOMPLIANCE MIDCO: Monroe Marks $323,000 Secured Loan at 46% Off ------------------------------------------------------------------- Monroe Capital Corporation has marked its $323,000 loan extended to StarCompliance MidCo, LLC to market at $174,000 or 54% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to StarCompliance MidCo, LLC. The loan accrues interest at a rate of 10.4% per annum. The loan matures on January 12, 2027. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About StarCompliance MidCo, LLC StarCompliance is a leading provider of employee compliance software that protects the world’s most reputable companies against risk and costly conflicts of interest. SUPERIOR INDUSTRIES: Moody's Cuts CFR to 'Caa3', Outlook Negative ----------------------------------------------------------------- Moody's Ratings downgraded Superior Industries International, Inc.'s (Superior) corporate family rating to Caa3 from B3 and the probability of default rating to Caa3-PD from B3-PD. Moody's also downgraded the company's priority senior secured revolving credit facility rating to B2 from Ba3 and the senior secured term loan rating to Caa3 from B3. The outlook was changed to negative from stable. Finally, the speculative grade liquidity rating was downgraded to SGL-4 from SGL-3. The downgrades reflect Moody's expectations that a distressed exchange is highly likely in the near term given the significant loss of volumes from key North American customers and subsequent liquidity concerns due to sharply weaker financial results. Superior is in discussions with its lenders and preferred equity shareholder to materially reduce financial leverage through a debt-for-equity exchange, with management targeting net leverage of 2.5x or less. Accordingly, Moody's anticipates an exchange to result in sizable loss to term loan holders, which Moody's would consider a limited default. Governance considerations were a factor in this rating action as the high likelihood of a distressed exchange will result in creditor losses. As a result, Moody's changed Superior's governance score to G-5 from G-4 and the Credit Impact Score (CIS) to CIS-5 from CIS-4. RATINGS RATIONALE The Caa3 CFR reflects Superior's high likelihood of a distressed exchange and expectation for significantly weaker results following notification in April that several key customers would source wheels from other suppliers. The company estimates the loss of purchase orders at approximately 33% of its projected 2025 revenue. To shore up short-term liquidity needs, Superior has secured a commitment from its term loan lenders to provide up to $70 million of additional term loan funds under the existing credit agreement, subject to satisfaction of certain conditions. Further, the company does not expect to meet its minimum liquidity and leverage covenants for Q2 2025 and is also seeking covenant relief. Superior's SGL-4 reflects Moody's expectations that free cash flow will be significantly negative in 2025, placing stress on an already modest cash position (approximately $55 million at March 31, 2025). The $60 million revolving credit facility was undrawn at March 31, 2025, but with the loss of business, was tapped for $42.5 million in early April which exhausted all available capacity after considering outstanding letters of credit. Additionally, in May 2025 the financial institutions that are the counterparties to Superior's factoring arrangements suspended its use of these programs. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if a recapitalization sufficiently right-sizes the balance sheet to allow for operating flexibility while replacing the lost volumes. Restoration of liquidity, namely progress toward generating breakeven free cash flow, would also be important to a ratings upgrade. The ratings could be downgraded if recoveries for lenders are expected to be lower than Moody's current estimates. Superior Industries International, Inc. designs and manufactures aluminum wheels for automotive original equipment manufacturers in North America and Europe and to the aftermarket in Europe. The company is one of the world's largest suppliers of cast aluminum wheels. Revenue for the twelve months ended March 31, 2025 was nearly $1.3 billion. The principal methodology used in these ratings was Automotive Suppliers published in December 2024. TELESAT CORP: Moody's Lowers CFR to Caa2, Outlook Remains Stable ---------------------------------------------------------------- Moody's Ratings downgraded Telesat Corporation's corporate family rating to Caa2 from Caa1 and affirmed the company's Caa2-PD probability of default rating. The company's speculative grade liquidity rating (SGL) was also downgraded to SGL-4 from SGL-1. The outlook remains stable. At the same time, Moody's downgraded the senior secured bank credit facility and senior secured notes ratings of Telesat's main operating subsidiary, Telesat Canada, to Caa2 from B3 and the senior unsecured notes rating to Ca from Caa3. The outlook for Telesat Canada also remains stable. "The downgrade reflects elevated refinancing risk for the company's 2026 debt maturities", said Peter Adu, Moody's Ratings Vice President and Senior Credit Officer. RATINGS RATIONALE Telesat's Caa2 CFR is constrained by: (1) risk of continued discounted debt repurchases with weak debt trading prices and elevated likelihood of a debt restructuring; (2) high business risk characterized by ongoing revenue and EBITDA declines in its geosynchronous (GEO) satellite business due to technological change and competition; (3) debt/EBITDA that will likely remain above 10x until its low earth orbit (LEO) satellite constellation (Telesat Lightspeed) is operational and contributing meaningfully to EBITDA; (4) high customer concentration, which pressures contract renewals; and (5) smaller scale relative to peers. The rating benefits from: (1) support from the Canadian government, which has allowed its Telesat Lightspeed project to commence and will ensure its long term survival; and (2) strong margins relative to peers. Telesat Canada has two classes of debt: (1) $1.9 billion (face value) term loan B due in December 2026 ($1.32 billion or C$1.9 billion outstanding), $500 million (face value) secured notes due in December 2026 ($225 million or C$323.7 million outstanding), and $400 million (face value) secured notes due in June 2027 ($387 million or C$556.8 million outstanding) - all rated Caa2; and (2) Ca-rated $550 million (face value) senior unsecured notes due in October 2027 ($221 million or C$318.3 million outstanding). Moody's rate the secured credit facility and secured notes Caa2 because they benefit from preferential access to realization proceeds and make up the bulk of the debt in the capital structure. In turn, Moody's rate the unsecured notes Ca because of the substantial amount of secured debt ranking above them in the capital structure. Telesat has weak liquidity (SGL-4) through December 31, 2026, with sources approximating C$3 billion versus uses of about C$3.4 billion. Sources of liquidity consist of cash of C$797 million at March 31, 2025 and residual government funding of about C$2.2 billion. The company has no revolving credit facility as its prior $200 million revolving credit facility expired in December 2024 and was not renewed. Uses of liquidity consist of about C$2.2 billion of debt coming due in December 2026 and Moody's consumptive free cash flow estimate of about C$1.2 billion in this time frame, driven by Telesat Lightspeed capital expenditures. Telesat can sell non-core assets including excess transponder capacity to augment liquidity. The stable outlook captures the commencement of Telesat Lightspeed, which will ensure a brighter future for the company together with Moody's expectations that the project will be completed on time and on budget. The stable outlook also assumes that if the company engages in a debt restructuring, recoveries for lenders will be in line with Moody's current estimates as reflected in the ratings. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company puts in place a sustainable capital structure with a flexible debt maturity profile. The ratings could be downgraded if the company defaults on its debt or if Moody's determines that recoveries for lenders in a debt restructuring will be lower than Moody's current estimates. The principal methodology used in these ratings was Communications Infrastructure published in February 2022. Telesat, headquartered in Ottawa, Ontario, Canada, is a fixed satellite services company with a fleet consisting of 14 GEO satellites, one LEO satellite and the Canadian payload on ViaSat-1. The company is building a 156 LEO satellite constellation with launches anticipated to start in 2026 and services to begin in 2027. THASSOS INC: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Thassos, Inc. 1 Walker Ave. Clarendon Hills, IL 60514 Business Description: Thassos, Inc. operates a Greek restaurant in Clarendon Hills, Illinois. The establishment specializes in authentic Greek cuisine and offers dine-in, catering, and online ordering services. Chapter 11 Petition Date: May 27, 2025 Court: United States Bankruptcy Court Northern District of Illinois Case No.: 25-08021 Judge: Hon. Janet S Baer Debtor's Counsel: Konstantine Sparagis, Esq. LAW OFFICES OF KONSTANTINE SPARAGIS 900 W. Jackson Blvd. Ste. 4E Chicago, IL 60607 Tel: 312-753-6956 Fax: 866-333-1840 Email: gus@atbankruptcy.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Nikolaos Fatouros 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/VM5M6QI/Thassos_Inc__ilnbke-25-08021__0001.0.pdf?mcid=tGE4TAMA THUNDER INTERNATIONAL: Gets Interim OK to Use Cash Collateral ------------------------------------------------------------- Thunder International Group, Inc. and affiliates got the green light from the U.S. Bankruptcy Court for the District of New Jersey to use cash collateral. The order penned by Judge John Sherwood authorized the Debtors' interim use of cash collateral to pay the expenses set forth in their 13-week budget. This authorization will terminate upon the dismissal or conversion of the Debtors' Chapter 11 cases, the appointment of a bankruptcy trustee or the Debtors' failure to perform their obligations under the order. The Debtors intend to use funds generated from their accounts receivable and business income, which constitute the cash collateral of East West Bank, the U.S. Small Business Administration and merchant cash advance creditors. As protection for the use of their cash collateral, these secured creditors will be granted replacement liens on the Debtors' personal property to the same extent and priority as their pre-bankruptcy liens. The next hearing is scheduled for June 17, with objections due by June 10. About Thunder International Group Inc. Thunder International Group, Inc. is a fifth-party logistics (5PL) provider specializing in omni-channel logistics solutions for commerce and e-commerce sellers. It operates nine warehouses across six U.S. states, offering services including nationwide fulfillment, drop shipping, air and ocean freight, global shipping, industrial inspection and maintenance, bonded zones, reverse logistics, and cross-border e-commerce branding. Thunder International Group sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. N.J. Lead Case No. 25-15229) on May 15, 2025, listing up to $10 million in both assets and liabilities. Mingming Wang, secretary, signed the petition. Judge John K. Sherwood oversees the case. White and Williams, LLP represents the Debtor as legal counsel. TIGERCONNECT INC: Monroe Marks $376,000 Secured Loan at 28% Off --------------------------------------------------------------- Monroe Capital Corporation has marked its $376,000 loan extended to TigerConnect, Inc. to market at $272,000 or 72% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to TigerConnect, Inc. The loan accrues interest at a rate of 11.19% per annum. The loan matures on February 16, 2028. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About TigerConnect, Inc. TigerConnect, Inc is an American software communications company based in Los Angeles. The company is best known for its instant messaging application of the same name. TUNGSTEN CAYCO: Fitch Alters Outlook on B- LongTerm IDR to Negative ------------------------------------------------------------------- Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) for Tungsten CayCo, Ltd. and its subsidiary, Project Leopard Holdings, Inc. (collectively referred to as Tungsten) at 'B-'. The Rating Outlook has been revised to Negative from Stable. Fitch has also affirmed the first-lien term loan and RCF at 'B+' with a Recovery Rating of 'RR2' and the second-lien term loan at 'CCC'/'RR6'. The Negative Outlook reflects Tungsten's weakening liquidity profile. The company is increasingly reliant on its RCF, and ongoing pressure on cash flow generation has exceeded its initial assessment. However, management's cost-cutting efforts have supported margin levels, and the company maintains a strong position in the Intelligent Automation industry with high recurring revenues. Key Rating Drivers Weakening Liquidity Profile: Tungsten's liquidity position has contracted since its previous review. At Dec. 31, 2024, Tungsten had drawn $98 million out of its $150 million revolver, decreasing availability to $52 million. Given its negative FCF generation, the company remains heavily reliant on this revolver access. Furthermore, while the first lien term loan matures in 2029 and the second lien loan in 2030, the revolver is now approaching its July 2027 maturity in almost two years. This timeline, coupled with the accelerated draw rate, will increasingly pressure the company's liquidity cushion, though immediate refinancing risk remains limited. Elevated Financial Leverage: Fitch forecasts Tungsten's EBITDA leverage (Fitch adjusted) will remain above 8.0x in the near term and increase in 2025 from the prior year's levels due to revolver draws and lower EBITDA generation. Beyond 2025, Fitch forecasts a modestly deleveraging trajectory, supported by projected EBITDA growth and mandatory debt amortization requirements. Given the scale and the private equity ownership of the company, Fitch believes Tungsten is likely to optimize return on equity (ROE) while maintaining some financial leverage. FCF Remains Negative: Tungsten is experiencing a period of negative FCF generation as it shifts from a perpetual license to a recurring revenue model, leading to temporary revenue and EBITDA headwinds. Increased interest rates have further raised expenses, placing additional strain on Tungsten's FCF. Fitch calculates the EBITDA interest coverage for the company at 1.3x in 2024 and expects it to dip slightly in 2025 and hover around 1.25x in 2026 and beyond. FCF is likely to remain negative in 2025 as the company continues to face a high interest burden. Recurring Revenue Provides Visibility: Fitch views Tungsten's higher proportion of recurring revenue as credit positive. Recurring revenues accounted for 87% of revenues in 2024 versus 83% in the prior year period as its perpetual license revenues continue to decline. This is a result of the 2021 pivot away from perpetual licenses. In 2024, annual recurring revenue grew by 8%. These factors, along with the company's strong retention rate and the sticky nature of its products, support its credit profile. In 2024, Tungsten reported a gross retention rate of 96% and net rate of 104%. Diverse Customers and Markets: The company offers its products to many customers globally, and its markets are diverse. Tungsten has secured several global banks as clients, as well as Fortune 100 and some Forbes Global 2000 companies. It has a leading Intelligent Automation (IA) platform that allows its customers to automate high volume manual processes, allowing companies to greatly improve efficiencies. In 2024, IA accounted for more than 70% of revenues, with the remaining derived from document automation and security. Its largest markets include financial institutions, manufacturing, retail, healthcare and government organizations. Peer Analysis Fitch assesses Tungsten's rating relative to other technology companies that provide a range of similar software offerings. Compared to other players, which offer IA products, such as OpenText (BB+/Stable), Tungsten operates at a smaller scale and has a higher leverage position. Fitch expects Tungsten to maintain some level of financial leverage as a private equity owned company, as equity owners optimize capital structure to maximize returns on equity. Its market position, revenue scale and visibility, as well as its leverage profile, are consistent with the 'B-' rating category. The IDRs for Tungsten and Project Leopard Holding are consolidated, using the weak parent and strong subsidiary approach. The companies are assessed as having 'open' Legal Ring-Fencing and Access and Control factors. Key Assumptions - Revenue is forecasted to slightly decline in 2025 and grow in the low single digits thereafter. Revenue declines forn perpetual licenses in 2024 were $20 million. They are forecasted to decline at a slower pace in 2025 and then flatten out. - Fitch adjusted EBITDA margins are projected to remain over 37% throughout the forecast horizon. - Capex intensity is forecasted at about 1% of revenue. - To calculate interest expense, Fitch assumes that the average floating rate in 2025 and in each of the following years is as follows: 4.25%, 3.5%, 3.5%, and 3.5%. - FCF projected to be negative in 2025 and turning positive thereafter. - Fitch assumes the revolver maturity will get extended in 2027. - No dividend payments are projected through 2028. Recovery Analysis The recovery analysis assumes that Tungsten would be reorganized as a going concern in bankruptcy rather than liquidated. Fitch assumes a 10% administrative claim. Going Concern Approach - Fitch assumes Tungsten enters a distressed scenario as a result of the company's loss of market share due to intensified competition. In this case, Fitch assumes revenues will drop by 10% from 2024 levels and an EBITDA margin at 38% as the company continues spending on sales and marketing to regain lost market share. This would lead to a going concern EBITDA of $196 million. Fitch assumes that the company's going concern EBITDA is unchanged from its last Rating Recovery analysis. An enterprise valuation multiple of 7x EBITDA is applied to the going concern EBITDA to calculate a post-reorganization enterprise value. The choice of this multiple considered the following factors: - In the 2024 "Telecom, Media and Technology Bankruptcy Enterprise Values and Creditor Recoveries" case study, Fitch noted the median TMT multiple of reorganization EV/EBITDA is around 5.9x. Among the companies covered in this study, five were in the software subsector: SunGard Availability Services Capital, Inc. (4.6x), Aspect Software, Inc. (5.5x), Allen Systems Group, Inc. (8.4x), Avaya, Inc. (8.1x in 2017, 7.5x in 2023) and Riverbed Technology Software (8.3x). - Tungsten's rising and resilient recurring sales, mission critical nature of the product, brand recognition, leadership position in revenue operations management, and cash generative qualities supports the 7.0x recovery multiple. - Fitch assumes a full draw on the $150 million revolver and the resulting recovery for the first lien debt is 'RR2', which notches the instrument rating up two from the IDR to 'B+'. For the second lien loan, the recovery rating is 'RR6', which results in the instrument being notched down two from the IDR to 'CCC'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to an Outlook Revision to Stable - The Outlook could be revised back to Stable if the company addresses its refinancing needs and liquidity concerns. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Insufficient liquidity to sustain operations for next 12-24 months. - (CFO-capex)/debt trending toward 0% or negative on a sustained basis. - EBITDA interest coverage below 1.25x on a sustained basis. - Organic revenue growth sustaining near or below 0%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage below 7.5x on a sustained basis. - (Cash flow from operations (CFO)-capex)/debt above 2.5% on a sustained basis. - EBITDA interest coverage above 1.5x on a sustained basis. Liquidity and Debt Structure As of Dec. 31, 2024, Tungsten had cash on the balance sheet of $35 million, up from $22 million at the end of 2023. At the end of 2024, $98 million was drawn on the $150 million revolver. In 2023 and 2024, FCF was negative and is expected to be negative in 2025 before turning positive again. Tungsten issued a $1.346 billion first lien term loan due 2029 and then it issued an incremental $50 million loan in March 2023 to repay revolver borrowings of $40 million. In addition, the company has a $348 million secured second lien loan due 2030. The $150 million first lien revolver is due in 2027. Issuer Profile Tungsten is a privately held company that offers its customers Intelligent Automation (IA) solutions which allow them to automate high volume manual processes, allowing companies to significantly improve efficiencies. In addition, it also offers document automation and security solutions. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Tungsten CayCo, Ltd. LT IDR B- Affirmed B- Project Leopard Holdings, Inc. LT IDR B- Affirmed B- senior secured LT B+ Affirmed RR2 B+ Senior Secured 2nd Lien LT CCC Affirmed RR6 CCC URBAN ONE: Reports $11.7M Net Loss; Q1 Revenue Down 11.7% --------------------------------------------------------- Urban One, Inc. reported its results for the three months ended March 31, 2025. For the three months ended March 31, 2025, net revenue was approximately $92.2 million, a decrease of 11.7% from the same period in 2024. The Company reported operating income of approximately $2.1 million for the three months ended March 31, 2025, compared to operating income of approximately $12.9 million for the three months ended March 31, 2024. Broadcast and digital operating income1 was approximately $23.0 million, a decrease of 28.1% from the same period in 2024. Net loss was approximately $11.7 million or $(0.26) per share (basic) for the three months ended March 31, 2025 compared to net income of $7.5 million or $0.15 per share (basic) for the same period in 2024. Adjusted EBITDA2 was approximately $12.9 million for the three months ended March 31, 2025, compared to approximately $22.3 million for the same period in 2024. Alfred C. Liggins, III, Urban One's CEO and President stated, "First quarter results were broadly in line with expectations: core radio advertising finished at (12.4)% excluding digital, and Cable TV advertising was (6.3)%. Our cable TV ratings stabilized significantly in the first quarter of 2025 and are performing in line with our 2025 budget. Second quarter core radio advertising pacings have weakened over the past several weeks, and are now (8.7)%. Our first quarter 2025 digital revenues were down (16.1)% driven by expected weakness in streaming and podcasting revenues. Based on our year-to-date performance, we reaffirm our full year guidance of $75 million in Adjusted EBITDA2. Our cumulative debt repurchases so far in 2025 are $88.6 million at an average price of 53.9%, resulting in reduced gross debt of $495.9 million, and we currently have approximately $79.8 million of cash on hand. In a challenging marketplace, our focus remains on controlling costs, managing leverage and retaining a strong liquidity position." A full-text copy of the Company's report filed on Form 8-K with the Securities and Exchange Commission is available at https://tinyurl.com/35u9edh8 About Urban One Urban One, Inc., formerly known as Radio One, Inc., headquartered in Silver Spring, Md., is an urban-oriented multimedia company that operates or owns interests in radio broadcasting stations (32% of revenue as of LTM Q4 2022) generated by 66 stations in 13 markets, cable television networks (43% of revenue), an 80% ownership in Reach Media (9% of revenue), and ownership of Interactive One, its digital platform, as well as other internet-based properties (16% of revenue), largely targeting an African-American and urban audience. The Chairperson, Catherine L. Hughes, and President, Alfred C. Liggins III (Chairperson's son), maintain voting control and hold a significant ownership position. The Company reported consolidated revenue of $485 million as of LTM Q4 2022. * * * In May 2025, S&P Global Ratings lowered its Company credit rating on Urban One Inc. to 'SD' (selective default) from 'CCC+'. S&P also lowered the issue-level rating on the company's senior secured notes to 'D'. V10 ENTERTAINMENT: Monroe Marks $458,000 Secured Loan at 84% Off ---------------------------------------------------------------- Monroe Capital Corporation has marked its $458,000 loan extended to V10 Entertainment, Inc. to market at $73,000 or 16% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to V10 Entertainment, Inc. The loan accrues interest at a rate of 11.42% per annum. The loan matures on January 12, 2028. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About V10 Entertainment, Inc. V10 Entertainment, Inc. is a private equity backed media company focused on investment across a wide range of entertainment properties. VALUDOR PRODUCTS: Monroe Marks $548,000 Secured Loan at 73% Off --------------------------------------------------------------- Monroe Capital Corporation has marked its $548, 000 loan extended to Valudor Products LLC to market at $149,000 or 27% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to Valudor Products LLC . The loan accrues interest at a rate of 11.94% per annum. The loan matures on December 31, 2026. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About Valudor Products LLC Valudor Products LLC specializes in delivering premium chemicals and ingredients across diverse industries, including agriculture, animal feed, and oil & gas. VERRICA PHARMACEUTICALS: Adds 3.67M Shares Under 2018 Equity Plan ----------------------------------------------------------------- Verrica Pharmaceuticals Inc. filed a Registration Statement with the Securities and Exchange Commission, pursuant to General Instruction E of Form S-8, to register 3,671,199 additional shares of Common Stock under the 2018 Equity Incentive Plan, pursuant to the provisions of the 2018 Plan providing for an automatic increase in the number of shares of Common Stock reserved and available for issuance under the 2018 Plan on January 1, 2025. A full-text copy of the Registration Statement is available at: https://tinyurl.com/mt69te87 About Verrica Pharmaceuticals West Chester, Pa.-based Verrica Pharmaceuticals Inc. is a dermatology therapeutics company developing and selling medications for skin diseases requiring medical intervention. Philadelphia, Pennsylvania-based KPMG LLP, the Company's auditor since 2008, issued a "going concern" qualification in its report dated March 11, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has incurred substantial operating losses since inception and has negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern. As of December 31, 2024, the Company had $54.1 million in total assets, $63.9 million in total liabilities, and total stockholders' deficit of $9.9 million. VIEWBIX INC: MMCAP Reports 7.01% Stake as of March 31 ----------------------------------------------------- MMCAP International Inc. SPC and MM Asset Management Inc., disclosed in a Schedule 13G (Amendment No. 4) filed with the U.S. Securities and Exchange Commission that as of March 31, 2025, they beneficially owned 463,980 shares of Viewbix Inc.'s common stock, with shared voting and dispositive power over all such shares. These shares represent 7.01% of the class, based on 6,619,959 shares outstanding as reported in the Company's Form S-1 filed on March 24, 2025. MMCAP International Inc. SPC may be reached through: Ulla Vestergaard, Director c/o Mourant Governance Services (Cayman) Limited 94 Solaris Avenue, Camana Bay, P.O. Box 1348 Grand Cayman, KY1-1108, Cayman Islands Tel: 416-408-0997 MM Asset Management Inc. may be reached through: Hillel Meltz, President 161 Bay Street, TD Canada Trust Tower, Suite 2240 Toronto, ON M5J 2S1, Canada A full-text copy of MMCAP's SEC report is available at: https://tinyurl.com/4k4nw954 About Viewbix Headquartered in Ramat Gan, Israel, Viewbix and its subsidiaries, Gix Media and Cortex Media Group Ltd., operate in the field of digital advertising. The Group has two main activities that are reported as separate operating segments: the search segment and the digital content segment. The search segment develops a variety of technological software solutions, which perform automation, optimization, and monetization of internet campaigns, for the purposes of obtaining and routing internet user traffic to its customers. The search segment activity is conducted by Gix Media. The digital content segment is engaged in the creation and editing of content, in different languages, for different target audiences, for the purposes of generating revenues from leading advertising platforms, including Google, Facebook, Yahoo and Apple, by utilizing such content to obtain and route internet user traffic for its customers. The digital content segment activity is conducted by Cortex. Tel Aviv, Israel-based Brightman Almagor Zohar & Co., the Company's auditor since 2012, issued a "going concern" qualification in its report dated March 21, 2025, citing that the decrease in revenues and cash flows from operations may result in the Company's inability to repay its debt obligations during the 12-month period following the issuance date of these financial statements. These conditions raise a substantial doubt about the Company's ability to continue as a going concern. VOYAGER DIGITAL: Fuller Adversary Case Survives Motion to Dismiss ----------------------------------------------------------------- The Honorable Michael E. Wiles of the United States Bankruptcy Court for the Southern District of New York denied Mark Richard Fuller's motion to dismiss the adversary proceeding captioned as MICHAEL WYSE, as Plan Administrator for the Voyager Wind-Down Debtor, Plaintiff, v. MARK RICHARD FULLER, Defendant, Adv. Pro. No. 24-01454 (Bankr. S.D.N.Y.). Defendant Mark Richard Fuller has moved to dismiss the adversary complaint that was filed against him by the Plan Administrator under the confirmed plan of reorganization in these cases. The complaint alleges that Mr. Fuller received $1,235,096.44 of preferential transfers during the 90 days that preceded the filing of the Voyager bankruptcy cases. The Plan Administrator alleges that the transfers are voidable under 11 U.S.C. Sec. 547, and he seeks to recover the value of the voided transfers under 11 U.S.C. Sec. 550 and to disallow the Defendant's claims under 11 U.S.C. Sec. 502(d). Mr. Fuller argues that during the fall of 2022 Voyager made statements about the validity of "ordinary course of business" defenses to preference claims that should be treated as binding admissions of fact and/or that should bind the Plan Administrator by reason of judicial estoppel, and that as a result the complaint against him should be dismissed. The Plan Administrator does not dispute that the Debtors made the prior statements, but he disputes that the statements are judicial admissions or that the elements of judicial estoppel are present and contends that the prior statements are not binding on the Plan Administrator. The Court finds the Debtors' broad-brush statements in the November 2022 draft disclosure statement, and in their response to a disclosure statement objection, cannot fairly be regarded as admissions about the "facts" that are relevant to the preference claim against Mr. Fuller or to his potential assertion of an "ordinary course of business" defense. Judge Wiles explains, "There is no reference in the Debtors' prior statements to the motives with which Mr. Fuller or other customers made withdrawals, or as to the histories of their prior transactions with Voyager, or any of the other 'facts' that would be relevant to a preference claim. Nor is there any representation that the Debtors had even analyzed such matters. Instead of being statements or concessions of specific 'facts,' the Debtors' prior statements were conclusory predictions about the likely outcomes of applying a legal standard to a broad category of potential claims. There was no admission of any 'fact' that would be relevant to any individual claim or defense." A copy of the Court's decision is available at https://urlcurt.com/u?l=XyXmaz from PacerMonitor.com. Counsel to Michael Wyse, as the Plan Administrator for the Voyager Wind-Down Debtor: Darren T. Azman, Esq. John J. Calandra, Esq. Joseph B. Evans, Esq. Charles R. Gibbs, Esq. Grayson Williams, Esq. Gregg Steinman, Esq. McDERMOTT WILL & EMERY LLP One Vanderbilt Avenue New York, NY 10017-3852 E-mail: dazman@mwe.com jcalandra@mwe.com. jbevans@mwe.com - and - Marianna Udem, Esq. Brigette G. McGrath, Esq. Kara E. Casteel, Esq. ASK LLP 60 E 42nd St, 46th Floor New York, NY 10165 E-mail: mudem@askllp.com Counsel to Defendant Mark Richard Fuller: Edward L. Schnitze, Esq. WOMBLE BOND DICKINSON (US) LLP 950 Third Avenue, Suite 2400 New York, NY, US 10022 E-mail: edward.schnitzer@wbd-us.com - and - Brian J. Koenig, Esq. KOLEY JESSEN PC, LLO 1125 South 103rd Street, Suite 800 Omaha, NE 68124 E-mail: brian.koenig@koleyjessen.com About Voyager Digital Holdings Based in Toronto, Canada, Voyager Digital Holdings Inc. -- https://www.investvoyager.com/ -- ran a cryptocurrency platform. Voyager claimed to offer a secure way to trade over 100 different crypto assets using its easy-to-use mobile application. Through its subsidiary Coinify ApS, Voyager provided crypto payment solutions for both consumers and merchants around the globe. Voyager Digital Holdings Inc. and two affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10943) on July 5, 2022. In the petition filed by Stephen Ehrlich, chief executive officer, the Debtors estimated assets and liabilities between $1 billion and $10 billion. Judge Michael E. Wiles oversees the cases. The Debtors tapped Kirkland & Ellis, LLP as general bankruptcy counsel; Berkeley Research Group, LLC, as financial advisor; Moelis & Company as investment banker; Consello Group as strategic financial advisor; Deloitte Tax, LLP as tax services provider; and Deloitte & Touche, LLP, as accounting advisor. Stretto, Inc., is the claims agent. On July 19, 2022, the U.S. Trustee for Region 2 appointed an official committee of unsecured creditors in the Chapter 11 cases. The committee tapped McDermott Will & Emery, LLP as bankruptcy counsel; FTI Consulting, Inc., as financial advisor; Cassels Brock & Blackwell, LLP as Canadian counsel; and Epiq Corporate Restructuring, LLC, as noticing and information agent. The committee also tapped the services of Harney Westwood & Riegels, LP, in connection with Three Arrows Capital Ltd.'s liquidation proceedings in British Virgin Islands. On July 6, 2022, the Debtors filed a joint Chapter 11 plan of reorganization. * * * Following an auction process, the Debtors in September 2022 selected the bid submitted by FTX US' West Realm Shires Inc. as the winning bid for the assets. But after a series of events, FTX collapsed in November 2022, before the sale could be completed. After reopening bidding, Voyager Digital selected the offer from U.S. exchange BAM Trading Services Inc. (doing business as "Binance.US") as the highest and best bid for its assets. Binance's bid is valued at $1.022 billion. In April 2023, Binance.US called off its deal to buy assets of bankrupt crypto lender Voyager Digital, citing a "hostile and uncertain regulatory climate." WELLPATH: Court Adopts Magistrate Judge's Report in Boyd Lawsuit ---------------------------------------------------------------- The Honorable J. Randall Hall of the United States District Court for the Southern District of Georgia adopted the Magistrate Judge's Report and Recommendation in the case captioned as KEVIN BOYD, Plaintiff, v. WARDEN BRIAN ADAMS; MR. MCFARLEN; MS. WILLESHA WARREN; MS. JERALD; SGT. ROACH; CO IILUPO; SMITH STATE MEDICAL UNIT; MEDICAL DEPARTMENT; and NURSE PHILLIPS, Defendants, Case No. 24-cv-00050 (S.D. Ga.). The Magistrate Judge recommended Defendants McFarlen, Warren, Jerald, Lupo, Smith State Medical Unit, and Medical Department be dismissed for failure to state a claim upon which relief may be granted. Plaintiff objects to dismissing the individual defendants, and in so doing asserts new factual allegations. The Court declines to consider Plaintiffs new allegations. His objections are unavailing, and these Defendants should be dismissed. After the Report and Recommendation issued, Plaintiff submitted a second motion for entry of default, dated Jan. 31, 2025, repeating the arguments raised in his first such motion, which the Magistrate Judge recommended be denied. For the reasons explained by the Magistrate Judge, the Court denies the second motion for entry of default. Additionally, Defendant Phillips, a former Wellpath employee, filed a Suggestion of Bankruptcy on April 18, 2025, concerning Wellpath's ongoing bankruptcy proceedings. The stay in that bankruptcy expired April 30, 2025. The Court orders Defendant Phillips to answer, move, or otherwise respond to Plaintiffs complaint by May 29, 2025. A copy of the Court's decision is available at https://urlcurt.com/u?l=uH70HJ from PacerMonitor.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. WENDT COMMUNICATION: Unsecureds to Recover Not Less Than 15% ------------------------------------------------------------ Wendt Communication Partners, LLC, submitted an Amended Subchapter V Plan of Reorganization dated May 6, 2025. As of the Petition Date, WCP's tangible assets were comprised of operating capital, accounts receivables and miscellaneous furniture and equipment, and various unliquidated causes of action with total estimated value of $221,001.56. WCP believes that its value as a going concern and the relationships and loyalty that it has established with past and current clients are the company's most valuable assets. WCP further believes that the best way of monetizing the value of the company is to stabilize the financial affairs of the company and liquidate the assets. This Plan provides for the sale of the company assets not earlier than twelve months from the Effective Date, and distributions to: three administrative convenience classes (Class 1.1; Class 1.2; and Class 1.3); one class of secured creditors (Class 2.1); one Class of claimants that holds claims against the company's Future Receivables (Class 3.2); and one class of general unsecured claims (Class 4), which is comprised of nonpriority general unsecured claims: (a) that were scheduled in Debtor's petition, and/or filed as a proof of claim, and not scheduled as disputed, contingent, or unliquidated in Debtor's schedules; and (b) in an amount equal to the sum of the unsecured portion of any Class 2 Claims. Class 4 is comprised of nonpriority general unsecured claims: (a) that were scheduled in Debtor's petition, and/or filed as a proof of claim, and not scheduled as disputed, contingent, or unliquidated in Debtor's schedules; and (b) in an amount equal to the unsecured portion of any Class 2 and 3 Claims (Collectively "Class 4 Claims"). Without waving any rights to object to any Class 4 Claim, and for the purpose of developing conservative projections, Debtor assumes that $1,615,848.66 in Class 4 Claims shall be allowable pursuant to Section 502(a) of the Code, if not objected. Holders of allowed Class 4 Claims shall be entitled to receive not less than 15% of their allowed claims ("Minimum Distributions"), in the form of: (i) quarterly prorata distributions of Debtor's disposable income, and (ii) prorata distributions of the proceeds from the sale of the business ("Sale Proceeds"), which shall not occur before the 12th month of the Plan. Distributions of Sale Proceeds shall be made in the order of priority. Class 4 is impaired. To implement its Plan, Debtor intends to: (a) retain property of the estate; (b) operate the business for a period of not less than twelve months; and (c) subject to all required court approvals, to sell all or substantially all of the company assets free and clear of any liens not before twelve months from the Effective Date of the Plan. The reorganized debtor intends to finance the cost of the reorganization with post-confirmation income and proceeds from the sale of the company assets. The Plan will be funded through the reorganized debtor's operating income, recoveries or awards obtained through litigation or compromises, and the sale of the company assets and its value as a going concern. A full-text copy of the Amended Subchapter V Plan dated May 6, 2025 is available at https://urlcurt.com/u?l=Tqr8IY from PacerMonitor.com at no charge. The Debtor's Counsel: J. Christian Dennery, Esq. DENNERY PLLC 7310 Turfway Rd, Suite 550 Florence, KY 41042 Tel: 859-445-5495 Fax: 859-286-6726 Email: jcdenery@dennerypllc.com About Wendt Communication Partners Wendt Communication Partners, LLC, a company in Mechanicsburg, Pa., offers tailored solutions for companies across the business-to-business marketplace. Wendt Communication Partners filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Pa. Case No. 24-02511) on October 1, 2024, with $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. William Douglas Wendt, chief executive officer and corporate representative, signed the petition. Judge Henry W. Van Eck handles the case. The Debtor is represented by J. Christian Dennery, Esq., at Dennery, PLLC. WESTCHESTER COUNTY HEALTH: Moody's Cuts Rev. Bond Ratings to Caa1 ----------------------------------------------------------------- Moody's Ratings has downgraded the revenue bond ratings for Westchester County Health Care Corporation (WCHCC) (NY) and Charity Health System (CHS) (NY) to Caa1 from B1. The outlooks are negative. WCHCC had $1.1 billion and CHS had $193 million of debt at fiscal year end 2024. The downgrade of WCHCC's bond rating to Caa1 from B1 is due to very weak liquidity that is increasingly reliant on short-term bank lines and loans. The action reflects high risks related to refinancing CHS's November 2025 bullet maturity, renewing bank lines, and further liquidity drain to complete a large project. These factors increase the likelihood of payment default unless significant near-term support is provided by New York State or Westchester County. RATINGS RATIONALE The Caa1 rating additionally reflects the likelihood that material losses at CHS and the HealthAlliance will continue offsetting some improvements from turnaround efforts at the flagship. Also, potential federal cuts in Medicaid funding would disproportionately affect the system due to its high reliance on Medicaid. WCHCC's strong market position as the sole tertiary and quaternary provider between New York City and Albany, along with the opening next year of a new tower, will support significant volume growth at the main campus. However, despite the system's essential role and a board appointed by New York State and Westchester County, substantial near-term financial support from these entities remains uncertain given limited support in the past. The downgrade of CHS's bond rating to Caa1 from B1 is based on WCHCC's legal guarantee to pay debt service on CHS's bonds. RATING OUTLOOK The negative outlook reflects the risk of further declines in already very weak liquidity from operating stress and capital spending or an inability to refinance CHS's bullet or renew bank lines. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Material growth in liquidity -- Sustained higher operating cashflow margins for the consolidated system including CHS -- Demonstrated and significant financial support from Westchester County or New York State -- For Charity Health System, upgrade of Westchester County Health Care Corp. FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Reduction in availability of or inability to renew bank lines of credit or inability to refinance CHS's November 2025 bullet maturity -- Decline in system cash on hand and cash-to-debt to below 25 days and 15%, resp. -- Increased risk of covenant breach -- For Charity Health System, downgrade of Westchester County Health Care Corp. PROFILE The Westchester County Health Care Corporation (WCHCC), a New York Public Benefit Corporation, operates the Westchester Medical Center including operations at the Valhalla campus and the MidHudson Regional Hospital in Poughkeepsie, New York. WCHCC is also the majority corporate member (60%) of Bon Secours Charity Health System with hospitals in Rockland and Orange Counties, and the sole member of HealthAlliance with hospitals in Ulster and Delaware Counties. The Valhalla campus is leased from Westchester County, although WCHCC has not been required to pay rent under the conditions of the lease agreement. METHODOLOGY The principal methodology used in rating Westchester County Health Care Corporation, NY was Not-for-profit Healthcare published in October 2024. WHISTLER PARENT: Monroe Marks $430,000 Secured Loan at 22% Off -------------------------------------------------------------- Monroe Capital Corporation has marked its $430,000 loan extended to Whistler Parent Holdings III, Inc. to market at $335,000 or 78% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to Whistler Parent Holdings III, Inc. The loan accrues interest at a rate of 5.42% Cash/ 5.75% PIK per annum. The loan matures on June 2, 2028. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About Whistler Parent Holdings III, Inc. Whistler Parent Holdings III, Inc. is engaged in the distribution of health care and pharmaceutical products in the U.S. WHISTLER PARENT: Monroe Marks $847,000 Secured Loan at 39% Off -------------------------------------------------------------- Monroe Capital Corporation has marked its $847,000 loan extended to Whistler Parent Holdings III, Inc. to market at $520,000 or 61% of the outstanding amount, according to Monroe's Form 10-Q for the fiscal year ended March 31, 2025, filed with the U.S. Securities and Exchange Commission. Monroe is a participant in a Senior Secured Loan to Whistler Parent Holdings III, Inc. The loan accrues interest at a rate of 5.42% Cash/ 5.75% PIK per annum. The loan matures on June 2, 2028. Monroe Capital Corporation is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured debt and, to a lesser extent, unsecured subordinated debt and equity co-investments in preferred and common stock and warrants. Monroe is managed by Monroe Capital BDC Advisors, LLC, a registered investment adviser under the Investment Advisers Act of 1940, as amended. Monroe is led by Theodore L. Koenig as Chairman, Chief Executive Officer and Director, and Lewis W. Solimene, Jr. as Chief Financial Officer and Chief Investment Officer. The Company can be reach through: Theodore L. Koenig Monroe Capital Corporation 311 South Wacker Drive, Suite 6400 Chicago, IL 60606 Telephone: (312) 258-8300 About Whistler Parent Holdings III, Inc. Whistler Parent Holdings III, Inc. is engaged in the distribution of health care and pharmaceutical products in the U.S. WHITESTAR DISTRIBUTORS: Katharine Clark Named Subchapter V Trustee ------------------------------------------------------------------ The U.S. Trustee for Region 6 appointed Katharine Battaia Clark of Thompson Coburn, LLP as Subchapter V trustee for Whitestar Distributors, Inc. Ms. Clark will be paid an hourly fee of $525 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Clark declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Katharine Battaia Clark Thompson Coburn, LLP 2100 Ross Avenue, Ste. 3200 Dallas, TX 75201 Office: 972-629-7100 Mobile: 214-557-9180 Fax: 972-629-7171 Email: kclark@thompsoncoburn.com About Whitestar Distributors Inc. Whitestar Distributors Inc. is a Texas-based distribution company headquartered in Garland. Whitestar Distributors sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-41573) on May 2, 2025. In its petition, the Debtor reported assets between $50,000 and $100,000 and liabilities between $1 million and $10 million. Judge Edward L. Morris handles the case. The Debtor is represented by Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC. WILLIAMS LAND: Court Narrows Claims in Apex, et al. Lawsuit ----------------------------------------------------------- Judge Pamela W. McAfee of the United States Bankruptcy Court for the Eastern District of North Carolina granted in part and denied in part the motions for partial summary judgment filed by the Intervenor Plaintiff, Commercial Funding, Inc. and the motions for summary judgment filed by the Defendants and Intervenor Defendants, Apex Funding Source LLC and Yehuda Klein a/k/a Jay Klein in the adversary proceeding captioned as Williams Land Clearing, Grading, and Timber Logger, LLC, Plaintiff, v. Apex Funding Source LLC and Yehuda Klein a/k/a Jay Klein, Defendants, Adversary Proceeding No. 23-00024-5-PWM (E.D.N.C.). Williams Land filed the complaint in this adversary proceeding on April 26, 2023, asserting the following claims against Apex and Mr. Klein: Avoidance of Fraudulent Transfers of Receivables pursuant to 11 U.S.C. Sec. 548 (both Defendants); Objection to Claim (Apex); Unfair and Deceptive Trade Practices pursuant to chapter 75 of the North Carolina General Statutes (Apex); in the alternative, Avoidance of Preference Payments pursuant to 11 U.S.C. Sec. 547 (both Defendants); and, Recovery of Avoided Transfers pursuant to 11 U.S.C. Sec. 550 (both Defendants). Apex and Mr. Klein filed a motion to dismiss the complaint pursuant to Rules 12(b)(1) and 12(b)(6) of the Federal Rules of Civil Procedure, made applicable in this adversary proceeding by Rule 7012(b) of the Federal Rules of Bankruptcy Procedure, on June 26, 2023. On July 21, 2023, Williams Land filed an Amended Complaint, asserting the same claims as the original complaint and adding a claim for equitable subordination. Apex and Mr. Klein filed a motion to dismiss the Amended Complaint on Aug. 28, 2023. The Court conducted a hearing on the motion to dismiss the Amended Complaint on Dec. 14, 2023, and denied the motion by written order on Feb. 8, 2024. Apex and Mr. Klein filed an interlocutory appeal and motion for leave to appeal that order, which was denied by the United States District Court for the Eastern District of North Carolina on Aug. 5, 2024. In the interim, on July 7, 2023, CFI filed its Motion to Intervene, asserting that as the senior secured creditor, it was entitled to payment of any funds recovered in the adversary proceeding, and also advancing claims against Apex and Mr. Klein for conversion of its collateral and tortious interference with contract. Williams Land filed a limited response, not opposing the Motion to Intervene but reserving the right to oppose CFI's claim for direct payment of any proceeds of the litigation. Apex and Mr. Klein opposed the Motion to Intervene. The Court holds as follows: Mr. Klein's motions for summary judgment on all claims in the Amended Complaint and the Intervenor Complaint are allowed; Apex's motion for summary judgment on Williams Land's claim to avoid fraudulent transfers pursuant to 11 U.S.C. Sec. 548 is allowed; Apex's motion for summary judgment on Williams Land's objection to its claim is denied; Apex's motion for summary judgment on Williams Land's claim for unfair and deceptive trade practices pursuant to chapter 75 of the North Carolina General Statutes is denied in part and allowed in part; Apex's motion for summary judgment on Williams Land's claim to avoid preferential payments pursuant to 11 U.S.C. Sec. 547 is denied and summary judgment will be entered in favor of Williams Land on this claim; Apex's motion for summary judgment on Williams Land's claim to recover avoided transfers pursuant to 11 U.S.C. Sec. 550 is denied and summary judgment will be entered in favor of Williams Land on this claim; Apex's motion for summary judgment on Williams Land's claim for equitable subordination is denied; CFI's motion for summary judgment seeking a declaratory judgment that any transfers should be avoided for its benefit and not the benefit of the estate is denied, and summary judgment will be entered in favor of Williams Land on this claim; CFI's motion for summary judgment on its claim for conversion against Apex is denied, and Apex's motion for summary judgment on CFI's claim for conversion against it is allowed; and Apex's motion for summary judgment on CFI's claim for tortious interference with contract is allowed. A copy of the Court's decision is available at https://urlcurt.com/u?l=jvCbyO from PacerMonitor.com. About Williams Land Clearing, Grading and Timber Logger Williams Land Clearing, Grading, and Timber Logger, LLC is a land development company that logs timber in addition to offering lot and site clearing, land leveling, drainage solutions, and related services. Prior to forming Williams Land in 2016, the company's sole member, Lamont Williams, had been in the logging business since 2001, and added clearing and grading to his business in about 2006. Williams Land sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 22-02094) on Sept. 16, 2022, with $10 million to $50 million in assets and $1 million to $10 million in liabilities. Lamonte Williams, manager, signed the petition. Judge Pamela W. McAfee oversees the case. The Debtor tapped William P. Janvier, Esq., at Stevens Martin Vaughn and Tadych, PLLC is the Debtor's legal counsel, and Caleb Thomas, Esq., as chief restructuring officer. WOLF'S LAIR: Case Summary & Three Unsecured Creditors ----------------------------------------------------- Debtor: Wolf's Lair Ranch, LLC 19321 Stuebner Airline Spring, TX 77379 Business Description: Wolf's Lair Ranch, LLC owns six separate land tracts in Kimble County, Texas, with a combined value of $3.19 million, according to a court document citing valuations by the Kimble County Appraisal District. The holdings include parcels from surveys such as M R Braggins Survey #36 and T W & N G R R Co Surveys #25 and #61, totaling several hundred acres across the county. Chapter 11 Petition Date: May 27, 2025 Court: United States Bankruptcy Court Southern District of Texas Case No.: 25-32890 Judge: Hon. Eduardo V Rodriguez Debtor's Counsel: Julie M. Koenig, Esq. COOPER & SCULLY, P.C. 26310 Oak Ridge Drive 34 Spring TX 77380 E-mail: Julie.Koenig@cooperscully.com Total Assets: $3,188,280 Total Liabilities: $4,778,519 The petition was signed by Wade Schindewolf as owner. A full-text copy of the petition, which includes a list of the Debtor's three unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/HTIIN2I/Wolfs_Lair_Ranch_LLC__txsbke-25-32890__0001.0.pdf?mcid=tGE4TAMA WOODHAVEN MEDICAL: Seeks Chapter 11 Bankruptcy in New York ---------------------------------------------------------- On May 5, 2025, Woodhaven Medical Realty Group Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of New York. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Woodhaven Medical Realty Group Inc. Woodhaven Medical Realty Group Inc. is a single-asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). Woodhaven Medical Realty Group Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-42519) 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 Elizabeth S. Stong handles the case. The Debtors are represented by Peter M. Zirbes, Esq. at PETER M. ZIRBES, ESQ., P.C. WORK CAT: Louisiana Int'l Wins Trailer Bridge Liens Dispute ----------------------------------------------------------- Chief Judge Nannette Jolivette Brown of the United States District Court for the Eastern District of Louisiana entered judgment in favor of Louisiana International Marine, LLC in the case captioned as TRAILER BRIDGE, INC. VERSUS LOUISIANA INTERNATIONAL MARINE, LLC, CASE NO. 22-5358 (E.D. La.). Plaintiff Trailer Bridge, Inc. filed this action challenging the validity of Defendant Louisiana International Marine, LLC's maritime liens for towage and related necessaries against two barges owned by Plaintiff, namely the ATLANTA BRIDGE and MEMPHIS BRIDGE, in rem, for the principal amount of $1,917,785.72. The substantive law applicable to this case is the Commercial Instruments and Maritime Liens Act, 46 U.S.C. Sec. 31301, et seq. Defendant filed an answer and counterclaim against Plaintiff seeking recognition of the liens and judgment in rem against the barges. On Aug. 4, 2020, Plaintiff and Work Cat Florida, LLC executed a BIMCO Standard Barge Charter Party Agreement for the time charter of the barges to Work Cat. The charter agreement allegedly contained a no-lien and indemnity provision. On Nov. 12, 2020, Work Cat and Defendant entered into two identical BIMCO Supplytime 2005-time charter party agreements for certain offshore service vessels, namely the LA COMMANDER and the LA INVADER owned by Defendant. Beginning in January 2021, Work Cat, pursuant to the LIM/Work Cat charter agreements, utilized the services of the LA COMMANDER and the LA INVADER to perform various services including towage of the chartered barges owned by Plaintiff. According to the Complaint, Plaintiff was not a part of, did not consent to, and lacked knowledge of these arrangements. Defendant regularly invoiced Work Cat for payment for the services rendered from Jan. 16, 2021 through June 18, 2021. On May 18, 2021, Work Cat filed for Chapter 11 Bankruptcy in the United States Bankruptcy Court for the Middle District of Florida – Tampa Division. On June 22, 2021, Work Cat converted its bankruptcy proceedings from Chapter 11 to Chapter 7. On May 25, 2021, Defendant filed a proof of claim in the Work Cat bankruptcy proceedings for the unpaid invoices to Work Cat totaling $1,364,214.17. Defendant alleged that this amount was for "towage services and supplies" rendered to Work Cat for the use of the LA COMMANDER and LA INVADER. On June 4, 2021, Defendant filed two claims of lien with the National Vessel Documentation Center against the ATLANTA BRIDGE for $1,264,214.16 and against the MEMPHIS BRIDGE for $1,362,214.16.16 Both claims of lien allege a maritime lien for necessaries for towage against the respective barges. On Aug. 1, 2022 and Nov. 28, 2022, Plaintiff entered into Purchase and Sale Agreements to sell the MEMPHIS BRIDGE and the ATLANTA BRIDGE. Both agreements require Plaintiff to indemnify and defend the purchasers. On Nov. 30, 2022, Defendant sent a Notice of Lien and Demand for Payment to the purchaser of the MEMPHIS BRIDGE. On Dec. 16, 2022, the purchaser made demand to Plaintiff seeking defense and indemnity against the claim asserted by Defendant. The Court finds that Plaintiff has not met its burden of showing that LIM had actual knowledge of the no-lien clause contained in the Work Cat/Trailer Bridge charter agreement. The Court also finds that Plaintiff has not met its burden of showing that LIM purposefully intended to forego the lien. Plaintiff failed to present evidence that LIM solely relied on the credit of Work Cat. Thus, the Court finds that LIM is entitled to a maritime lien against the MEMPHIS BRIDGE and the ATLANTA BRIDGE under the CIMLA. Plaintiff brings a claim against LIM for conversion. The Court finds that Plaintiff has failed to show a prima facie case for conversion. Because the Court has found that LIM is entitled to a maritime lien against the ATLANTA BRIDGE and MEMPHIS BRIDGE under the CIMLA, LIM's exercise of dominion, ownership or control was not unlawful. For these reasons, the Court dismisses Plaintiff's conversion claim. The Court entered judgment in favor of Defendant and against the MEMPHIS BRIDGE, in rem, in the amount of $863,162.50, plus court costs and reasonable attorney's fees. The Court entered judgment in favor of Defendant and against the ATLANTA BRIDGE, in rem, in the amount of $630,402.10, plus court costs and reasonable attorney's fees. Defendant is also awarded pre-judgment interest in accordance with Louisiana Revised Statute Sec. 13:4202 from June 18, 2021 to the date of judgment, and post-judgment interest in accordance with 28 U.S.C. Sec. 1961. A copy of the Court's decision is available at https://urlcurt.com/u?l=7CA5Z3 About Work Cat Florida Work Cat Florida LLC, formerly known as Work Cat Trans Gulf, LLC, has been in business since August 2020 as a short sea shipping operation that provides trans-Gulf of Mexico container and roll on/roll off freight transportation services utilizing its own proprietary vessel design known as the "Work Cat." Work Cat Florida filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 21-02588) on May 18, 2021, disclosing $696,377 in total assets and $6,940,094 in total liabilities. Chris Raley, chief executive officer, signed the petition. Genovese Joblove & Battista, P.A. is the Debtor's legal counsel. The case was converted to Chapter 7 on June 22, 2021. WT REPAIR: Files Emergency Bid to Use Cash Collateral ----------------------------------------------------- WT Repair, LLC asked the U.S. Bankruptcy Court for the District of Kansas for authority to use cash collateral through Sept. 30 or until a Chapter 11 reorganization plan is confirmed. Due to minimal bank balances, receivables, and inventory at the time of filing, the Debtor must use its available cash -- classified as "cash collateral" under 11 U.S.C. Section 363 -- to continue operations. The Debtor believes that one or more creditors, including First National Bank and Trust, NextGear Capital, CNH Industrial Capital, Deere & Company, MacDon Inc., Farmway Credit Union, and another unnamed leasing lender, hold perfected security interests in its accounts receivable, inventory, and cash. To protect the interests of secured creditors, the Debtor proposed granting them replacement liens on post-petition assets of the same type and priority as their pre-bankruptcy collateral, limited to the extent of any decrease in collateral value. The Debtor also proposed making monthly adequate protection payments of $3,000 to First National Bank and Trust, beginning June 28. A copy of the motion is available at https://urlcurt.com/u?l=uXBAS3 from PacerMonitor.com. About WT Repair LLC WT Repair, LLC is an independently owned used equipment dealer and service shop based in Beloit, Kansas. It specializes in buying, selling and servicing farm machinery, including tractors, harvesters, and used trucks. WT Repair is also a full-line dealer for Bush Hog, Farm King, MacDon, Geringhoff, Quicke, Kelly Ryan, and HyGrade. WT Repair sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Kan. Case No. 25-20636) on May 15, 2025, listing $3,084,713 in assets and $3,196,953 in liabilities. Wesley Thompson, managing member, signed the petition. Judge Dale L. Somers oversees the case. Colin Gotham, Esq., at Evans & Mullinix, P.A., represents the Debtor as legal counsel. WYNN RESORTS: Capital World Investors Holds 5.2% Equity Stake ------------------------------------------------------------- Capital World Investors, disclosed in a Schedule 13G filed with the U.S. Securities and Exchange Commission that as of March 31, 2025, it beneficially owned 5,548,315 shares of Wynn Resorts, Ltd.'s common stock, representing 5.2% of the 106,167,328 shares believed to be outstanding. Capital World Investors is a division of Capital Research and Management Company, as well as its investment management subsidiaries and affiliates Capital Bank and Trust Company, Capital International, Inc., Capital International Limited, Capital International Sarl, Capital International K.K., Capital Group Private Client Services, Inc., and Capital Group Investment Management Private Limited. CWI's divisions of each of the investment management entities collectively provide investment management services under the name "Capital World Investors." CWI may be reached through: Jae Won Chung, Vice President and Senior Counsel II, Capital Research and Management Company 333 South Hope Street, 55th Floor Los Angeles, California 90071 Tel: 213-486-9200 A full-text copy of CWI's SEC report is available at: https://tinyurl.com/j98p4w69 About Wynn Resorts Ltd. Headquartered in Las Vegas, Nevada, Wynn Resorts, Limited owns and operates hotels and casino resorts. As of December 31, 2024, Wynn Resorts had $12.98 billion in total assets, $13.95 billion in total liabilities, and a total stockholders' deficit of $968.60 million. * * * Egan-Jones Ratings Company on January 14, 2025, maintained its 'CCC+' foreign currency and local currency senior unsecured ratings on debt issued by Wynn Resorts. [] Andrew W. Cheng Rejoins Gibson Dunn's Restructuring Practice --------------------------------------------------------------- Gibson Dunn announced that Andrew W. Cheng has rejoined the firm's Los Angeles office as a partner in the Business Restructuring and Reorganization Practice Group and the Liability Management and Special Situations Practice Group. "We are excited to welcome Andrew back to our team," said Scott J. Greenberg, Global Chair of Gibson Dunn's Business Restructuring and Reorganization Practice Group. "With restructurings and distressed financings on the rise, our market-leading platform is experiencing incredible client demand globally. Andrew is a versatile finance lawyer with extensive experience leading financing transactions in the rescue and distressed space. He will be instrumental in deepening our bench and helping clients navigate the increasingly dynamic credit environment." "I'm thrilled to come home to Gibson Dunn," said Andrew. "I've been impressed watching the Gibson Dunn team transform the restructuring practice into a global powerhouse. I look forward to working alongside this incredible, collaborative team as it continues to lead clients through complex restructurings and provide innovative, market-moving financing solutions." Steven Domanowski, Chair of the firm's Liability Management and Special Situations Practice Group, added, "Andrew will serve as an invaluable resource for our clients in a highly active distressed finance environment. He intimately understands the needs our clients are facing and how to craft resolutions to complex problems." The firm's Business Restructuring and Reorganization Practice Group has expanded its global offering over the past few years, with Andrew being the most recent addition to the team. In March, senior restructuring partners Chris Howard and Presley Warner joined in London. The group's additions also include partners Lisa Stevens (London), AnnElyse Scarlett Gains (Washington, D.C.), Caith Kushner (New York), and Ryan Kim (New York), as well as the promotions of Stephen D. Silverman (New York) and Melissa L. Barshop (Century City) to partner. The Gibson Dunn Business Restructuring and Reorganization Practice Group advises on the largest and most complex restructurings globally, dominating the market in the U.S. and Europe. It was named Lead Counsel in Debtwire's Restructuring Advisory Mandates Report for North America in both 2023 and 2024. Within the practice, the Liability Management and Special Situations team has emerged as a pioneer in liability management focused on devising and executing tailored solutions for ad hoc groups of debt holders and other debt investors. About Andrew Cheng Mr. Cheng practice focuses on distressed-related financings, including rescue and DIP financings, representing lenders in liability management transactions, restructuring of syndicated secured credit facilities, and sponsor-side acquisition financings. Prior to rejoining Gibson Dunn, Mr. Cheng served as a partner at another international law firm. Previously, he was a partner at Gibson Dunn. He earned his law degree from Harvard Law School in 2000. About Gibson Dunn Gibson, Dunn & Crutcher LLP is an international law firm. It has more than 2,000 lawyers, and 21 offices, in Abu Dhabi, Beijing, Brussels, Century City, Dallas, Denver, Dubai, Frankfurt, Hong Kong, Houston, London, Los Angeles, Munich, New York, Orange County, Palo Alto, Paris, Riyadh, San Francisco, Singapore, and Washington, D.C. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. 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Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The single-user TCR subscription rate is $1,400 for six months or $2,350 for twelve months, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each per half-year or $50 annually. For subscription information, contact Peter A. Chapman at 215-945-7000. *** End of Transmission ***