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250714.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, July 14, 2025, Vol. 29, No. 194 Headlines 106 LIVONIA: Seeks Subchapter V Bankruptcy in New York 11 7 TAMBAYAN: Gets Interim OK to Use Cash Collateral Until Aug. 4 1522 C STREET: Case Summary & Two Unsecured Creditors 1ST CAPITAL INVESTMENT: Seek Chapter 11 Bankruptcy in Arizona 2 MONKEY: 5th Cir. Says Benshot's Jury Award Non-Dischargeable 23ANDME HOLDING: Trustee Objects to WilmerHale Retention in Ch. 11 26 CAPITAL ACQUISITION: Seeks Chapter 11 Bankruptcy in Delaware 3590 WASHINGTON PIKE: Seeks Chapter 11 Bankruptcy in Texas 3970 HIGH PINE: Section 341(a) Meeting of Creditors on August 13 400 MCKINLEY AVENUE: Seeks Chapter 11 Bankruptcy in Texas 5524 15TH AVE: Seeks Chapter 11 Bankruptcy in Washington 6 SUNSET LANE: Claims to be Paid from Property Sale Proceeds 8 BUILDINGS: Seeks Chapter 11 Bankruptcy in Colorado 88-18 JAMAICA AVENUE: Seeks Chapter 11 Bankruptcy in New York 8818 JAMAICA: Seeks Chapter 11 Bankruptcy in New York 91 COUNTRY VILLAGE: Seeks Chapter 11 Bankruptcy in Texas 9415 107 STREET: Seeks Chapter 11 Bankruptcy in New York A PLACE ALL MY OWN: PCO Reports No Change in Patient Care Quality A.I. BUILDERS: Seeks to Sell Equipment at Auction ACADIANA MANAGEMENT: Class Suit over US Trustee Fees Tossed ADC AND T LLC: Seeks Chapter 11 Bankruptcy in Texas ADH HOLDINGS: Section 341(a) Meeting of Creditors on August 13 ADH HOLDINGS: Voluntary Chapter 11 Case Summary ADVANCED TRENCHLESS: Has Deal on Cash Collateral Access AFFINITY INTEGRATED: Court Extends Cash Collateral Access to Aug. 8 AFFORDABLE KAR: Seeks Subchapter V Bankruptcy in Texas AIRX LLC: Case Summary & 20 Largest Unsecured Creditors AIRX LLC: Seeks Subchapter V Bankruptcy in Washington AKIN MEARS: To Sell Personal Seat License to Kevin Steinberg ALIEN TECHNOLOGIES: L. Todd Budgen Named Subchapter V Trustee ALL PROPERTIES: Case Summary & One Unsecured Creditor ALTAR PDX: Gets Interim OK to Use $17K in Cash Collateral AMC ENTERTAINMENT: Moody's Affirms 'Caa2' CFR, Outlook Stable AMERIGO METAL: Gets Interim OK to Use Cash Collateral AMYNTA AGENCY: Moody's Affirms 'B3' CFR, Outlook Stable APPTECH PAYMENTS: Issues $360K Convertible Note at 20% OID ARAGON PARENT: Term Loan Repricing No Impact on Moody's 'B2' CFR ARBOR REALTY: Fitch Assigns 'BB' Final Rating on Sr. Unsec Notes ARC-V INC: Seeks Chapter 11 Bankruptcy in California ARMELLINO ITALIAN: Files Emergency Bid to Use Cash Collateral ASSURED ACQUISITIONS: Seeks to Hire David A. Riggi as Attorney ATLAS CC: Fitch Lowers LongTerm IDR to 'CCC-' & Puts on Watch Neg. AUSTIN WATERJET: Gets Interim OK to Use Cash Collateral AVDHESH MANAGEMENT: Seeks Subchapter V Bankruptcy in New York AWS HOSPITALITY: Ira Bodenstein Named Subchapter V Trustee BALKAN EXPRESS: Truck Terminal Sale to CanTex for $4MM OK'd BASIC WHOLESALE: Deborah Fish Named Subchapter V Trustee BEL TEMPO: Hires Dennis L. Winans as Financial Consultant BEL TEMPO: Seeks to Hire Rusing Lopez & Lizardi as Attorney BEYOND AIR: Stockholders Approve Reverse Stock Split Up to 1-for-50 BIEN-AIME CONFIANCE: Seeks Chapter 11 Bankruptcy in Florida BIG STORM BREWERY: Gets Extension to Access Cash Collateral BIOLARGO INC: All Proposals OK'd at 2025 Annual Meeting BLACKBERRY LIMITED: Key Proposals OK'd at 2025 Meeting BLUE STAR: FY24 Net Loss Widens to $12.5M from $4.5M in FY23 BOXLIGHT CORP: CFO Greg Wiggins Steps Down Effective July 18 BOXLIGHT CORP: Director Elliott Resigns to Aid Nasdaq Compliance BRITTANY'S VILLA: Seeks Chapter 11 Bankruptcy in New York BURFORD CAPITAL: Moody's Rates New $400MM Unsecured Notes 'Ba1' BYJU'S ALPHA: Court Says Founder Failed to Turn Over Docs CAMERON THE SANDMAN: Cash Collateral Hearing Set for July 23 CAMERON THE SANDMAN: Charles Mouranie Named Subchapter V Trustee CAPSTONE GREEN: Christopher Close Appointed to Board CBRM REALTY: Seeks to Sell Kelly Hamilton Property at Auction CELSIUS NETWORK: Voelker Can't File Adversary Case, Court Rules CHARTER SCHOOL: Gets Court Approval for July 18 Auction CHIARELLA HOLDINGS: Case Summary & One Unsecured Creditor CHIARELLA HOLDINGS: Seeks Chapter 11 Bankruptcy in California CHICAGO SPORTS: Janice Seyedin Named Subchapter V Trustee CINEMEX HOLDINGS: Gets Court OK for $2.6MM to Fund 2nd Ch. 11 Case CK BUILDERS: Gets Interim OK to Use Cash Collateral CLASSIC RECREATIONS: Seeks Chapter 11 Bankruptcy in Texas CLASSIC RECREATIONS: To Sell Auto Restoration Biz to CR Turnaround CNT HOLDINGS: $250MM Term Loan Add-on No Impact on Moody's B2 CFR COMSTOCK RESOURCES: Fitch Affirms & Then Withdraws 'B' IDR COOPER EQUIPMENT: DBRS Confirms BB LongTerm Issuer Rating CORVIAS CAMPUS: Seeks Appointment of Mediator in Bankruptcy Case COZY HARBOR: Hearing to Use Cash Collateral Set for July 18 CPI CG: Moody's Lowers Rating on Senior Secured Notes to B3 CROSSKIX LLC: Seeks Chapter 11 Bankruptcy in Florida CUSTOM CONCRETE: Seeks Subchapter V Bankruptcy in Nebraska CX REINSURANCE: Seeks U.S. Court Approval of UK Scheme DARE BIOSCIENCE: Nasdaq Panel OKs Revised Compliance Plan DATAVAULT AI: Registers 3.2M Shares Under 2018 Equity Plan DEF HOLDING: Voluntary Chapter 11 Case Summary DENVER BOULDERING: Gets OK to Use Cash Collateral Until Oct. 31 DETCO INC: Unsecured Creditors Will Get 41% of Claims in Plan DIACARTA INC: Case Summary & 20 Largest Unsecured Creditors DUKE BIOMED: Section 341(a) Meeting of Creditors on August 12 DUNCAN RENTAL: Seeks Subchapter V Bankruptcy in Florida DYNASTY SONG: Christopher Hayes Named Subchapter V Trustee DYNASTY TANG: Christopher Hayes Named Subchapter V Trustee ECUO REAL HOLDINGS: Seeks Chapter 11 Bankruptcy in New York ECUO REAL: Case Summary & 13 Unsecured Creditors ELK HOME: Shuts Down, Liquidates w/ No Bankruptcy ELMA TRANSPORT: Gets OK to Obtain DIP Financing From TBK Bank ENDO INT'L: Plan Administrator's Bid to Reclassify Claims Okayed ENERGY FOCUS: CEO Buys $200K Worth of Shares in Private Placement EPIC MEDICAL: Seeks Chapter 11 Bankruptcy in Texas ERIE KASH: Gets Court OK to Use Cash Collateral ES PARTNERS: Court Extends Cash Collateral Access to Aug. 12 ESSENTIAL MINERALS: Seeks to Sell Chemical Mfg Business at Auction EXTON OPERATING: Court Extends Cash Collateral Access to Aug. 10 EYENOVIA INC: Appoints Hyunsu Jung as CIO, Reconstitutes Board EYENOVIA INC: Closes $50M Private Placement for HYPE Token EYENOVIA INC: Designates 6% Series A Preferred Stock EYENOVIA INC: Extends Maturity of Loan With Avenue Capital to 2028 FELTRIM BALMORAL: To Sell Florida Properties to Bellavista Dev't FIRST AMERICAN: Orlando Property Sale to Watson Real Estate OK'd FOREST GOOD: Court Extends Cash Collateral Access to July 31 FORTRESS HOLDINGS: Ch. 11 Plan Disclosures Get Tentative Approval FREE SPEECH: Conn. Court to Rehear Norm Pattis' Ethics Case FRESH ACQUISITIONS: Judge Skeptical on Litigation Funding GAMESTOP CORP: Raises $450-Mil. From Convertible Senior Notes GENESIS HEALTHCARE: Gets $30MM DIP Financing Interim Court Approval GENESIS HEALTHCARE: Wins Interim OK of $30MM New Money DIP Loans GLOBAL TECH: Sept. 15, 2025 Claims Filing Deadline Set GRAY MEDIA: Moody's Rates New $750MM Secured 2nd Lien Notes 'B3' GRAY MEDIA: S&P Raises Sr. Secured First-Lien Debt Rating to 'B+' GREEN TERRACE: Trustee Gets OK to Use Cash Collateral Until Aug. 31 GUARDIAN ELDER: No Resident Complaints, 5th PCO Report Says HALL OF FAME: Expands Loan Facility With CH Capital by $2 Million HARTWICK COLLEGE: Moody's Affirms Caa1 Issuer & Revenue Bond Rating HEALTHY SPOT: To Sell Pet Care Business to Multiple Buyers HELIUS MEDICAL: Believes to Meet Continued Listing Standards HERITAGE GRILLE: Court Extends Cash Collateral Access to July 31 HOLDEN I LLC: Immovable Property Sale to Pinnacle for $1.1MM OK'd HORSEY DENISON: Seeks to Hire Bergey & Company as Accountant ILLUMINATE PROPERTIES: Seeks to Hire Lewis Phon as Attorney INDIVIDUALIZED ABA: Unsecureds to Get $494 per Month for 60 Months INSPIRED ENTERTAINMENT: Fitch Affirms 'B-' IDR, Outlook Stable INTEGRATED VENTURES: Changes Name to MedwellAI, Ticker to MWAI IQSTEL INC: CEO, CFO Convert $631K Salary into Series B Stock IQSTEL INC: Hits $101.5M YTD Revenue, Reaffirms $340M 2025 Outlook IROKOS GROUP: David Madoff Named Subchapter V Trustee IWC OIL & REFINERY: Gets Interim OK to Use Cash Collateral JAGUAR HEALTH: Extends Maturity of Convertible Notes to 2026 JERK PIT: Court Extends Cash Collateral Access to July 23 JJJ CONVOY: Christopher Quinn Named Subchapter V Trustee JOANN INC: Court Confirms Chapter 11 Wind-Down Plan JOE'S PIZZA: Gregory Jones Named Subchapter V Trustee JOHNSON PHARMACY: Kimberly Ross Clayson Named Subchapter V Trustee JONES REAL: Seeks Cash Collateral Access K&W LEGACY: Seeks Chapter 11 Bankruptcy in Tennessee KARYOPHARM THERAPEUTICS: Pursues Financing Options, Cuts Workforce KENSINGTON VILLAGE: Hearing to Use Cash Collateral Set for July 15 L.D. LYTLE: Gets Interim OK to Use Cash Collateral LAFLEUR NURSERIES: Gets OK to Use Cash Collateral Until Aug. 5 LAKE CLINCH: Lender Seeks to Prohibit Cash Collateral Access LAVIE CARE: PCO Reports Resident Care Complaints LEEWARD RENEWABLE: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable LINQTO INC: Ch. 11 No Effect on Pre-IPO Markets, Says EquityZen LOUISIANA PELLETS: Raymond James, et al. Lose Summary Judgment Bid MAGNATE CORP: Claims to be Paid from Continued Operations MARIN SOFTWARE: Files Chapter 11 Plan With Kaxxa $5.5M Funding MARIN SOFTWARE: Gets Interim OK for DIP Loan From YYYYY LLC MCCALL DISTRIBUTION: Seeks Chapter 11 Bankruptcy in Texas MCR HEALTH: To Sell Huntington Health Practice to Ace Health MEDEX LLC: State Court Must Hear RedMed Dispute, Bankr. Judge Says MERIT STREET: Gets Interim OK to Obtain DIP Loan From Peteski MICHAELS COS: S&P Affirms 'B-' Issuer Credit Rating, Outlook Neg. MIDWEST MOBILE: Unsecureds to Split $30K over 60 Months MORTON GROVE: Wockhardt Seeks Chapter 7 Bankruptcy for Subsidiary MOSAIC COMPANIES: Sells Walker Zanger, Anthology in Chapter 11 MOSAIC COS: Gets Court Okay to Tap $9MM Chapter 11 Funding MUSTANG STONE: Seeks Chapter 11 Bankruptcy in Delaware NASSAU COMPANIES: Fitch Rates $425MM 7.85% Unsecured Notes 'BB+' NETCAPITAL INC: Adds $975K in Shares to ATM Offering NEW EARTH: Andrew Layden Named Subchapter V Trustee NEW TROPICAL DELI: Seeks Chapter 11 Bankruptcy in New York NINJA MOUNTAIN: Case Summary & 19 Unsecured Creditors NONA GOURMET: Section 341(a) Meeting of Creditors on August 13 NORTHERN DYNASTY: Shareholders OK All AGM Proposals NORTIA LOGISTICS: Court OKs DIP Financing From RTS Financial NOVA LIFESTYLE: CEO Xiaohua Lu Joins Board of Directors OCULAR DEVELOPMENT: Francis Brennan Named Subchapter V Trustee ODS INC: Gets Interim OK to Use Cash Collateral Until Sept. 30 OFFSHORE SAILING: Court OKs Sailboat Sale to Bonefish Boats OFFSHORE SAILING: Sailboats Sale to Community Sailing OK'd ONDAS HOLDINGS: Board Removes Interim Title, Names Neil Laird CFO OSAIC HOLDINGS: S&P Affirms 'B' ICR on Acquisition and Refinancing OUTER AISLE GOURMET: Specialty Food Manufacturer Seeks Chapter 11 OUTER AISLE: Case Summary & 20 Largest Unsecured Creditors OUTFRONT MEDIA: Cuts 6% of Workforce in Restructuring Plan PARADOX ENTERPRISES: Cash Collateral Access Extended to Aug. 29 PARKERVISION INC: Registers More Shares Under 2019 Equity Plan PAVMED INC: Veris Raises $2.5M in Private Offering PEARL RESOURCES: Ruling in Buckingham Adversary Case Upheld PELICAN PROS: Section 341(a) Meeting of Creditors on August 11 PLANO HOLDCO: Fitch Assigns 'B+' First-Time IDR, Outlook Stable PMHB LLC: Seeks to Hire Crexi Technologies as Real Estate Agent POWIN LLC: Seeks to Hire Gerard Uzzi of Uzzi & Lall as CRO POWIN LLC: To Sell Energy Storage Integrator Business to FlexGen PREMIER GROUP: Seeks Subchapter V Bankruptcy in Washington PREMIER GROUP: Voluntary Chapter 11 Case Summary PRIMARY PRODUCTS: Fitch Alters Outlook on 'BB' LongTerm IDR to Neg. PRIORITY HOLDINGS: Moody's Rates New Secured First Lien Loans 'B1' PROJECT PIZZA: Gets Interim OK to Use Cash Collateral PROS HOLDINGS: Issues $235M Convertible Notes Due 2030 PROSPECT MEDICAL: Gets Court OK to Tap $50MM Emergency Loan PUERTO RICO: Restarts Power Auction After Court Halts Previous Deal PUPEEZ INC: Case Summary & Five Unsecured Creditors PUPEEZ INC: Seeks Subchapter V Bankruptcy in Nevada QUANTUM HEALTH: Moody's Rates $100MM Incremental Term Loan 'B3' R3CYCLE INDUSTRIES: Gets Interim OK to Use Cash Collateral REBORN COFFEE: Arena Entities Hold 9.5% Equity Stake RELIABLE GENERAL: Unsecured Creditors to Split $45K over 60 Months RETO ECO-SOLUTIONS: Inks $10M Pre-Paid SPA With Streeterville RETO ECO-SOLUTIONS: Streeterville Holds 9.9% Equity Stake RETSEL CORP: Lawsuit vs Native Americans Tossed RF CAPITAL: DBRS Confirms Pfd-4 (high) Credit Ratings RINCHEM CO: Transfers Assets Beyond Creditor Access RINGCENTRAL INC: Fitch Hikes LongTerm IDR to BB+, Outlook Positive RIVERSIDE EXPRESS: Case Summary & Two Unsecured Creditors RIVERSIDE EXPRESS: Seeks Chapter 11 Bankruptcy in California ROCKY MOUNTAIN: Regains Nasdaq Compliance After 10-K Filing ROOSEVELT TROPICAL: Seeks Chapter 11 Bankruptcy in New York RX ASHLAND: Trigild Named as Receiver for Ashland, Va. Property S&W SEED: CFO Vanessa Baughman Assumes Interim CEO Role S&W SEED: Faces Default Risk on $25M Loan; Cross-Default Triggered S&W SEED: Gets $1.08M in New Loans Under Mountain Ridge Deal S&W SEED: Reduces Workforce to 7, Warns of Potential Bankruptcy SALT LAKE CITY DISTILLERY: Seeks Chapter 11 Bankruptcy in Utah SALT LAKE: Voluntary Chapter 11 Case Summary SAUK PRAIRIE: Moody's Affirms 'Ba2' Rating on Revenue Bonds SCILEX HOLDING: Defers Preferred Dividend Record Date SCILEX HOLDING: Elects 2 Directors at 2025 Meeting SEABIRDS KITCHEN: Unsecureds Will Get 13% Dividend in Plan SERENADE NEWPORT: Seeks Chapter 11 Bankruptcy in California SGH LLC: S&P Places 'CCC+' Long-Term ICR on CreditWatch Positive SHARPLINK GAMING: Commences Options Trading on Nasdaq SHARPLINK GAMING: Grows ETH Treasury, Raises $27.7M via ATM SHENTON AIRCRAFT I: Fitch Affirms 'B-sf' Rating on Class C Notes SHERMAN/GRAYSON: PCO Reports No Change in Patient Care Quality SHILO INN BEND: Gets Extension to Access Cash Collateral SILVERROCK DEVELOPMENT: Seeks to Sell La Quinta Property at Auction SMITH MICRO: Receives Nasdaq Deficiency Notice for Bid Price SOLEPLY LLC: Unsecureds Will Get 10% of Claims over 36 Months SPHERE 3D: Registers 4.6M Shares Under 2025 Incentive Plan STOLI GROUP: Gets Extension to Access Cash Collateral SUNNOVA ENERGY: Omnidian Sets $7M Stalking Horse Bid for ServiceCo SUNNOVA ENERGY: Special Committee Backs Loan Release to KKR SYSOREX GOVERNMENT: Trustee Objects to Chapter 11 Counsel Pick TEHUM CARE: Court Stays Libertus Case v. Skaggs, Crouch TELUS CORP: DBRS Finalizes BB(high) Credit Rating THRASIO HOLDINGS: S&P Raises ICR to 'CCC', Outlook Negative THRASIO LLC: Moody's Appends 'LD' Designation to 'Ca-PD' PDR TJ TRUCKING: Seeks Subchapter V Bankruptcy in Ohio TOGETHERMENT MANAGEMENT: Seeks Chapter 11 Bankruptcy in Arizona TOGETHERMENT MANAGEMENT: Voluntary Chapter 11 Case Summary TOP MOBILITY: Gets Interim OK to Use Cash Collateral TRUDELL DOCTOR: Gets Final OK to Use Cash Collateral TYSONS CONCEPTS: Hires John P. Forest as Bankruptcy Counsel URBAN ONE: All Proposals OK'd at 2025 Meeting US NUCLEAR: Reports $1.7 Million Net Loss for FY 2024 VARSOBIA HOME: Seeks Subchapter V Bankruptcy in California VEGAS CUSTOM GLASS: Seeks Subchapter V Bankruptcy in Nevada VEGAS TREASURES: Edward Burr Named Subchapter V Trustee VILLAGES HEALTH: Gets Interim OK to Obtain DIP Loan From PMA VIPER ENERGY: Moody's Rates New Senior Unsecured Notes 'Ba1' VIVA LIBRE: Seeks to Use Cash Collateral WALKER & ZANGER: Seeks Chapter 11 Bankruptcy in Delaware WAMALA GENERAL: Seeks to Hire Riggi Law Firm as Bankruptcy Counsel WATCHTOWER FIREARMS: Plan Exclusivity Period Extended to Sept. 25 WATCHTOWER FIREARMS: Wins Final OK for DIP in Chapter 11 Case WATER ENERGY: To Sell Stanton Property to 4 Arrows for $275K WEC 98D-16: Trigild Named as Receiver for Louisville, Ky. Property WEC 98D-17: Trigild Named as Receiver for Fremont, Mich. Property WELLPATH HOLDINGS: Court Lifts Stay in Dailey Lawsuit WELLPATH HOLDINGS: Court Lifts Stay in Maldonado Lawsuit WELLPATH HOLDINGS: Court Lifts Stay in Rodriguez Lawsuit WELLPATH HOLDINGS: Court Lifts Stay in T.O., et al. Lawsuit WELLPATH HOLDINGS: Court Tosses Quarles Prisoner Civil Rights Case WELLPATH HOLDINGS: Henderson Prisoner Civil Rights Case Tossed WELTY SERVICES: Case Summary & 20 Largest Unsecured Creditors WEST BRAZOS STEWART: Seeks Chapter 11 Bankruptcy in Texas WHITESTONE CROSSING: Seeks to Extend Cash Collateral Access WOLFSPEED INC: Common Stock Transfer Protocol Approved WOODCREST CONDOMINIUMS: Case Summary & Six Unsecured Creditors WOODMAN INVESTMENT: Deal to Use LA Buyer's Cash Collateral OK'd WORKSPORT LTD: Posts Record Sales for Second Straight Month WW INTERNATIONAL: Exits Chapter 11 With New $465M Loan X4 PHARMACEUTICALS: Inks $40M Purchase Deal With Lincoln Park ZILLA ELECTRIC: Seeks Subchapter V Bankruptcy in Maryland [] Corporate Bankruptcies Shift to Reorg. Over Liquidation in 2025 [] Greenberg Traurig's Shapiro Honored for Bankruptcy Leadership [] J.S. Held Expands Bankruptcy Team With MorrisAnderson [] Judge Sets Jackson Walker Fee Fight Mediation Deadline [] Morrison Foerster Adds Bryan Kotliar to Restructuring Team [] Rubin and Rudman Partners Named Top Bankruptcy Lawyers ********* 106 LIVONIA: Seeks Subchapter V Bankruptcy in New York ------------------------------------------------------ On July 11, 2025, 106 Livonia 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 106 Livonia LLC 106 Livonia LLC is a Brooklyn-based real estate company that owns property at 106 Livonia Avenue in Brooklyn. 106 Livonia LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-43334) on July 11, 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. 11 7 TAMBAYAN: Gets Interim OK to Use Cash Collateral Until Aug. 4 ------------------------------------------------------------------ 11 7 Tambayan, Inc. got the green light from the U.S. Bankruptcy Court for the District of Nevada to use cash collateral. The court's order authorized the Debtor's interim use of cash collateral until August 4 in amounts not to exceed 125% of each line item set forth in its budget. The Debtor currently has cash on hand of approximately $8,600 and no accounts receivable as of the petition date. This cash collateral may be subject to security interests claimed by three merchant cash advance lenders: National Funding dba Quick Bridge, Spartan Business Solutions, and IMS Fund LLC. The Debtor acknowledges debts of approximately $58,172 to QB, $48,475 to SBS, and $21,900 to IMS. Each of these creditors has filed UCC-1 financing statements asserting security interests in the Debtor's accounts receivable, with QB holding the first priority position. As adequate protection for the use of its cash collateral, the Debtor will continue operating its business to preserve or enhance the value of the creditors' collateral. About 11 7 Tambayan Inc. 11 7 Tambayan Inc. operates a Filipino restaurant and grocery store in Reno, Nevada. The Debtor sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev.Case No. 25-50581) on June 25, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $100,000 and $500,000. Judge Hilary L. Barnes handles the case. The Debtor is represented by Kevin A. Darby, Esq. at Darby Law Practice, Ltd. 1522 C STREET: Case Summary & Two Unsecured Creditors ----------------------------------------------------- Debtor: 1522 C Street, LLC 13927 Bishops Bequest Road Upper Marboro, MD 20772 Business Description: 1522 C Street, LLC is a real estate lessor that owns multiple condominium units and a residential property in Washington, DC. Its holdings include four units at 244 60th Street NW and a property at 1522 C Street NE. The portfolio has an estimated total value of $1.46 million, based on online real estate appraisal data. Chapter 11 Petition Date: July 9, 2025 Court: United States Bankruptcy Court District of Columbia Case No.: 25-00264 Judge: Hon. Elizabeth L Gunn Debtor's Counsel: Brett Weiss, Esq. THE WEISS LAW GROUP 8843 Greenbelt Road 299 Greenbelt MD 20770 Tel: (301) 924-4400 E-mail: brett@BankruptcyLawMaryland.com Total Assets: $1,461,989 Total Liabilities: $1,071,543 The petition was signed by Anthony Whitehead as managing member. 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/JAFNYCI/1522_C_Street_LLC__dcbke-25-00264__0001.0.pdf?mcid=tGE4TAMA 1ST CAPITAL INVESTMENT: Seek Chapter 11 Bankruptcy in Arizona ------------------------------------------------------------- On July 9, 2025, 1st Capital Investment Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Arizona According to court filing, the Debtor reports between $100,000 and $500,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 1st Capital Investment Inc. 1st Capital Investment Inc. also operates as Eagle Express. 1st Capital Investment Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-06226) on July 9, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge Paul Sala handles the case. 2 MONKEY: 5th Cir. Says Benshot's Jury Award Non-Dischargeable -------------------------------------------------------------- In the appeal styled BENSHOT, LLC, Plaintiff-Appellant, versus 2 MONKEY TRADING, LLC, LUCKY SHOT USA, LLC, Defendants-Appellees, No. 23-12342 (11th Cir.), Judges Barbara Lagoa, Elizabeth L. Branch and Robert J. Luck of the United States Court of Appeals for the Eleventh Circuit reversed the judgment of the United States Bankruptcy Court for the Middle District of Florida that discharged Benshot, LLC's jury award from a pre-bankruptcy litigation. The case is remanded for further proceedings. BenShot, LLC is a family-owned business that sells a unique drinking glass design that it invented -- a bullet "penetrating" the side via an indentation in the glass. These glasses are made in the United States. Debtors 2 Monkey Trading, LLC and Lucky Shot USA, LLC sell drinking glasses with a similar design, but they import the glasses from China and falsely advertise them as "Made in the United States." BenShot sued the Debtors for violations under the Lanham Act and Wisconsin common law in federal court in the Eastern District of Wisconsin. A jury found for BenShot on all claims and awarded BenShot punitive damages. Shortly thereafter, the Debtors filed for bankruptcy under Subchapter V of Chapter 11. But in the bankruptcy and debt-discharge process, BenShot brought a complaint against the Debtors, arguing that its jury award from the Wisconsin trial was a non-dischargeable debt for willful and malicious injury under 11 U.S.C. Secs. 523(a)(6) and 1192(2). The Debtors moved to dismiss the complaint for failure to state a claim because Sec. 523(a)(6) only applied to individual debtors, not corporate debtors like themselves. The bankruptcy court sided with the Debtors and dismissed the complaint. The bankruptcy court noted that several bankruptcy courts around the country have interpreted Sec. 523(a)'s discharge exceptions to exclude corporate debtors, including a recent decision by the same court: In re Hall, 651 B.R. 62 (Bankr. M.D. Fla. 2023). The bankruptcy court found In re Hall's analysis persuasive and rejected the Fourth Circuit's holding in In re Cleary Packaging, LLC, 36 F.4th 509 (4th Cir. 2022) that came to the opposite conclusion. A timely appeal followed. According to the Eleventh Circuit panel, this appeal presents a difficult statutory interpretation question related to two provisions within the Bankruptcy Code. In 2019, Congress passed Subchapter V amending Chapter 11 of the Bankruptcy Code to relieve small business debtors of the requirements of the absolute priority rule. As relevant to this appeal, Subchapter V allows these debtors to discharge their debts "except any debt of the kind specified in section 523(a)." The dispute in this case is how to best interpret the interplay between Sec. 1192(2) and Sec. 523(a) -- does Sec. 1192's discharge provision, which references Sec. 523(a), apply to individual and corporate debtors? BenShot argues that Subchapter V applies to both individual and corporate debtors, so neither group can discharge debts listed under Sec. 523(a). BenShot contends that, even though the Debtors submitted a non-consensual plan, they cannot discharge the jury award because it is a debt of the kind specified in section 523(a). And Sec. 523(a) lists a range of non-dischargeable debts including those for willful and malicious injury by the debtor to another entity or to the property of another entity. According to BenShot, that is the exact kind of debt incurred by the Debtors as a result of the jury award in its favor. Appellees-Debtors, however, argue that Sec. 523(a) limits the scope of the exception to just individual debtors, so corporate debtors, like themselves, can discharge those kinds of debts. According to the Circuit Judges, "The argument is unconvincing for two reasons. First, as the Fourth Circuit stated, 'while Sec. 523(a) does provide that discharges under various sections, including Sec. 1192 discharges, do not ‘discharge an individual debtor from any debt' of the kind listed, Sec. 1192(2)'s cross-reference to Sec. 523(a) does not refer to any kind of debtor addressed by Sec. 523(a) but rather to a kind of debt listed in Sec. 523(a).' Put otherwise, the Debtors conflate the noun specified in Sec. 1192(2) -- 'debt' -- with 'debtor.' And 'debt' does not discriminate between individual or corporate debtors. Second, Sec. 523(a)'s preamble, read plainly, only states that an individual debtor cannot discharge the listed types of debt; it says nothing about what a corporate debtor can or cannot discharge." They conclude, "We acknowledge that this question is a close call because of the interplay between Sec. 1192's language and Sec. 523(a)'s preamble. But we believe that our textual and contextual analyses provide a definitive answer that the plain language of Sec. 1192 excepts both individual and corporate debtors from discharging any debt 'of the kind' specified in Sec. 523(a). We cannot ignore the plain text of Sec. 1192 which applies to individual and corporate debtors and the reference to 'debt,' which is agnostic as to who the holder is. Accordingly, we reverse the bankruptcy court's order and remand the case for further proceedings consistent with this opinion." A copy of the Court's Opinion dated July 9, 2025, is available at https://urlcurt.com/u?l=dYwpxV About 2 Monkey Trading 2 Monkey and Lucky Shot were established in 2006 in Orlando, Florida, and are family-owned business that design, craft and market hand-made and made-to-order military memorabilia and Americana. 2 Monkey Trading, LLC and Lucky Shot USA, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Lead Case No. 22-04099) on Nov. 17, 2022. In the petitions signed by Douglas Ingalls, manager, 2 Monkey Trading disclosed up to $500,000 in assets and up to $10 million in liabilities. Judge Tiffany P. Geyer oversees the cases. Michael A. Nardella, Esq., at Nardella and Nardella, PLLC, is the Debtors' counsel. 23ANDME HOLDING: Trustee Objects to WilmerHale Retention in Ch. 11 ------------------------------------------------------------------ Emlyn Cameron of Law360 reports that on Thursday, July 10, 2025, the U.S. Trustee's Office objected to the consumer privacy ombudsman's proposed retention of WilmerHale in 23andMe's Chapter 11 case, citing possible conflicts of interest. WilmerHale rejected the concerns, and the presiding bankruptcy judge in Missouri indicated a ruling would be made soon, the report states. About 23andMe 23andMe Holding Co. is a genetics-led consumer healthcare and biotechnology company in San Francisco, Calif. Through its direct-to-consumer genetic testing, 23andMe offers personalized insights into ancestry, genetic traits, and health risks. The company has developed a large database of genetic information from over 15 million customers, enabling it to provide health and carrier status reports and collaborate on genetic research for drug development. On the Web: http://www.23andme.com/ On March 23, 2025, 23andMe and 11 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mo. Lead Case No. 25-40976). 23andMe disclosed $277,422,000 in total assets against $214,702,000 in total liabilities as of Dec. 31, 2024. Paul, Weiss, Rifkind, Wharton & Garrison, LLP, Morgan, Lewis & Bockius, LLP and Carmody MacDonald, PC serve as legal counsel to the Debtors while Alvarez & Marsal North America, LLC serve as the restructuring advisor. The Debtors tapped Reevemark, LLC and Scale Strategy Operations, LLC as communications advisors and Kroll Restructuring Administration Services, LLC as claims agent. Lewis Rice LLC, Moelis & Company LLC, and Goodwin Procter LLP serve as special local counsel, investment banker, and legal advisor to the Special Committee of 23andMe's Board of Directors, respectively. Jerry Jensen, Acting U.S. Trustee for Region 13, appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee tapped Kelley Drye & Warren, LLP and Stinson, LLP as legal counsel and FTI Consulting, Inc. as financial advisor. 26 CAPITAL ACQUISITION: Seeks Chapter 11 Bankruptcy in Delaware --------------------------------------------------------------- On July 11, 2025, 26 Capital Acquisition Corp. filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware. 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 26 Capital Acquisition Corp. 26 Capital Acquisition Corp. is a special purpose acquisition company (SPAC). 26 Capital Acquisition Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11323) on July 11, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $10 million and $50 million. Honorable Bankruptcy Judge Karen B. Owens handles the case. The Debtors are represented by Kevin Scott Mann, Esq. at Cross & Simon, LLC. 3590 WASHINGTON PIKE: Seeks Chapter 11 Bankruptcy in Texas ---------------------------------------------------------- On July 9, 2025, 3590 Washington Pike Operations LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas. According to court filing, the Debtor reports between $1 billion and $10 billion in debt owed to 10,000 and 25,000 creditors. The petition states funds will be available to unsecured creditors. About 3590 Washington Pike Operations LLC 3590 Washington Pike Operations LLC operates the Bridgeville Rehabilitation & Care Center, a healthcare facility in Pennsylvania that provides nursing care and rehabilitation services to patients. 3590 Washington Pike Operations LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-80218) on July 9, 2025. In its petition, the Debtor reports estimated assets between $100 million and $500 million and estimated liabilities between $1 billion and $10 billion. Honorable Bankruptcy Judge Stacey G. Jernigan handles the case. The Debtors are represented by Marcus Alan Helt, Esq. at Mcdermott Will & Emery LLP. 3970 HIGH PINE: Section 341(a) Meeting of Creditors on August 13 ---------------------------------------------------------------- On July 10, 2025, 3970 High Pine LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Middle District of Florida. According to court filing, the Debtor reports between $100,000 and $500,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on August 13, 2025 at 09:00 AM. U.S. Trustee (Jax) will hold the meeting telephonically. Call in Number: 888-330-1716. Passcode: 1501240#. About 3970 High Pine LLC 3970 High Pine LLC is a single-asset real estate company that owns a residential property in Jacksonville, Florida. 3970 High Pine LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. M.D. Fla. Case No. 25-02310) on July 10, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100,000 and $500,000 each. Honorable Bankruptcy Judge Jason A. Burgess handles the case. 400 MCKINLEY AVENUE: Seeks Chapter 11 Bankruptcy in Texas --------------------------------------------------------- On July 9, 2025, 400 McKinley Avenue Operations LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas. According to court filing, the Debtor reports between $1 billion and $10 billion in debt owed to 10,000 and 25,000 creditors. The petition states funds will be available to unsecured creditors. About 400 McKinley Avenue Operations LLC 400 McKinley Avenue Operations LLC, operating as Pine View Center, is a nursing care facility located in Harrisville, West Virginia. 400 McKinley Avenue Operations LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-80263) on July 9, 2025. In its petition, the Debtor reports estimated assets between $100 million and $500 million and estimated liabilities between $1 billion and $10 billion. Honorable Bankruptcy Judge Stacey G. Jernigan handles the case. The Debtors are represented by Marcus Alan Helt, Esq. at Mcdermott Will & Emery LLP. 5524 15TH AVE: Seeks Chapter 11 Bankruptcy in Washington -------------------------------------------------------- On July 10, 2025, 5524 15th Ave Seattle WA LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Washington. According to court filing, the Debtor reports between $50,000 and $100,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 5524 15th Ave Seattle WA LLC 5524 15th Ave Seattle WA LLC is a single asset real estate company that owns property at 5524 15th Ave S in Seattle, Washington. 5524 15th Ave Seattle WA LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 25-11891) on July 10, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $50,000 and $100,000. Honorable Bankruptcy Judge Christopher M. Alston handles the case. 6 SUNSET LANE: Claims to be Paid from Property Sale Proceeds ------------------------------------------------------------ 6 Sunset Lane, LLC, filed with the U.S. Bankruptcy Court for the District of New Jersey a First Amended Disclosure Statement describing Chapter 11 Plan of Liquidation dated June 20, 2025. The Debtor owns residential real property improved by a single family home in Monmouth Beach, Monmouth County, New Jersey located at 6 Sunset Drive, LLC, Monmouth Beach, New Jersey (the "Property"). This is Debtor's only asset and was acquired in December, 2021 for the sum of $1,350,000.00. The Property is currently encumbered by four liens totaling approximately $1,585,528.25 including a tax sale certificate and three mortgages. The Property is insured and the real taxes are current for the quarters following the filing of the Chapter 11 proceeding. In an effort to remedy the problems that led to the bankruptcy filing, Debtor was in contact with multiple local real estate professionals, including but not limited to O'Brien Realty, to determine the market conditions and fair market value of the Property. Since then, Debtor has entered into an agreement to sell the Property to Paul Rachmuth for the sale price of $1,750,000, and the sale will be effectuated on or before the Effective Date of the Plan. If the sale of the Property to Paul Rachmuth is not effectuated on or before the Effective Date of the Plan, the Debtor will retain O'Brien Realty to immediately market the Property for public sale. As of the Petition Date, the Debtor's assets consist solely of the Property. The estimated value of Debtor's asset is $1,750,000. This is a liquidation plan, wherein the Proponent seeks to accomplish payments under the Plan by liquidating its assets to satisfy its liabilities under Chapter 11. The Effective Date of the proposed Plan is the thirty days following the date on which the order of confirmation is signed by the United States Bankruptcy Court. The Debtor is not aware of any creditors asserting priority claims. The Debtor is not aware of any creditors asserting unsecured non-priority claims. Interest holder Frank Rubba (100%) will retain membership interest. The Debtor will seek the Court's approval to sell the Property with creditors to be paid from the proceeds. A full-text copy of the First Amended Disclosure Statement dated June 20, 2025 is available at https://urlcurt.com/u?l=oIcqkQ from PacerMonitor.com at no charge. Counsel to the Debtor: Andrew J. Kelly, Esq. The Kelly Firm, P.C. 1011 Highway 71, Suite 200 Spring Lake, NJ 07762 Tel: (732) 449-0525 Email: akelly@kbtlaw.com About 6 Sunset Lane LLC 6 Sunset Lane LLC is the fee simple owner of the real property located at 6 Sunset Lane, Monmouth Beach, NJ 07705, which is currently valued at $1.7 million. 6 Sunset Lane LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-11005) on Jan. 31, 2025. In its petition, the Debtor reports estimated total assets of $1,700,000 and estimated liabilities of $1,427,073. The Debtor is represented by Andrew J. Kelly, Esq. at THE KELLY FIRM, P.C. 8 BUILDINGS: Seeks Chapter 11 Bankruptcy in Colorado ---------------------------------------------------- On July 8, 2025, 8 Buildings LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Colorado. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 8 Buildings LLC 8 Buildings LLC is a single-asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). 8 Buildings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Col. Case No. 25-14224) on July 8, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Joseph G. Rosania Jr. handles the case. The Debtors are represented by Jeffrey A. Weinman, Esq. at ALLEN VELLONE WOLF HELFRICH & FACTOR, P.C. 88-18 JAMAICA AVENUE: Seeks Chapter 11 Bankruptcy in New York ------------------------------------------------------------- On July 10, 2025, 88-18 Jamaica Avenue Realty Corp. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of New York According to court filing, the Debtor reports up to $50,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 88-18 Jamaica Avenue Realty Corp. 88-18 Jamaica Avenue Realty Corp. is a real estate holding company that owns commercial property in Woodhaven, Queens. 88-18 Jamaica Avenue Realty Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-43316) on July 10, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities up to $50,000. Honorable Bankruptcy Judge Elizabeth S. Stong handles the case. The Debtors are represented by E. DuBois Raynor, Jr. at Civil Rights Consortium, Inc. 8818 JAMAICA: Seeks Chapter 11 Bankruptcy in New York ----------------------------------------------------- On July 10, 2025, 8818 Jamaica 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 up to $50,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 8818 Jamaica Inc. 8818 Jamaica Inc. is a real estate company based in Woodhaven, New York. 8818 Jamaica Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-43310) on July 10, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities up to $50,000. Honorable Bankruptcy Judge Nancy Hershey Lord handles the case. The Debtors are represented by E. DuBois Raynor, Jr. at Civil Rights Consortium, Inc. 91 COUNTRY VILLAGE: Seeks Chapter 11 Bankruptcy in Texas -------------------------------------------------------- On July 10, 2025, 91 Country Village Road Operations LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas. According to court filing, the Debtor reports between $1 billion and $10 billion in debt owed to 10,000 and 25,000 creditors. The petition states funds will be available to unsecured creditors. About 91 Country Village Road Operations LLC 91 Country Village Road Operations LLC operates a skilled nursing and healthcare facility located in Lancaster, New Hampshire, providing elder care, rehabilitation services, and skilled nursing services. 91 Country Village Road Operations LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex.Case No. 25-80477) on July 10, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 billion and $10 billion each. Honorable Bankruptcy Judge Stacey G. Jernigan handles the case. The Debtors are represented by Marcus Alan Helt, Esq. at Mcdermott Will & Emery LLP. 9415 107 STREET: Seeks Chapter 11 Bankruptcy in New York -------------------------------------------------------- On July 11, 2025, 9415 107 Street 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 $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 9415 107 Street LLC 9415 107 Street LLC is a a Single Asset Real Estate entity operating in Ozone Park, Queens. 9415 107 Street LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-43320) on July 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100,000 and $500,000 each. Honorable Bankruptcy Judge Elizabeth S. Stong handles the case. The Debtors are represented by Vivian M. Williams, Esq. at Vmw Law PC. A PLACE ALL MY OWN: PCO Reports No Change in Patient Care Quality ----------------------------------------------------------------- Julia Kyte, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the District of Colorado her second report regarding the quality of patient care provided by A Place All My Own Healthcare, LLC. The Ombudsman chose the 505 W Roma Ave. Home facility to start the in-person inspections and was located in a well-kept residential area. She met the Director of Nursing ("DON"), Haley Buggle, RN, who has been with the Debtor for 4 years. All of the staff indicated that in the last eight or nine months, nothing had changed as to the care of the patients; the patients felt the care provided was good. Ms. Kyte found out that the needs of the residents at 928 E. Blackhawk Dr. Home facility were very high with vent/trach care being provided, and when she arrived, she observed an Occupational Therapist working with one of the younger male residents at bedside. The staff at this facility said that patient care had only gone up in the last eight months or so and they had been given what they needed to ensure the patients were taken care of. The Ombudsman observed only three residents and each needed vent/trach care at the Terracina Home facility. Here, the Director of Nursing was Lori Phillips, and she has been with the company for 5 years. Also present was Connie Wright, a CNA, and again, it was confirmed at this facility when asking the staff, whether patient care had gone up, stayed the same, or gone down in the last 8 months, that patient care had gone up in the last eight months or so. The Ombudsman also visited the The Paradise Lane Home facility located in Glendale, which was about 30 minutes from the other facilities. In this home, there was a main area with the laundry and garage facilities through a door off to the side of the front area. There was a posted daily activity schedule as well as a monthly activity board, and each food sensitivity was posted on the front of the fridge as these individuals primarily eat by mouth at this facility, and one of the residents has a specific menu as outlined by his dietician. The ombudsman may be reached at: CLYDE SNOW & SESSIONS Julia D. Kyte One Utah Center, 22nd Floor 201 South Main Street Salt Lake City, Utah 84111 (801) 322-2516 telephone Email: jdk@clydesnow.com About A Place All My Own Healthcare A Place All My Own Healthcare, LLC provides medical services to children and young adults with developmental disabilities. A Place All My Own Healthcare filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Colo. Case No. 24-16999) on Nov. 22, 2024. In the petition signed by Patrick Babcock, co-manager, the Debtor disclosed up to $50,000 in assets and up to $10 million in liabilities. Judge Joseph G. Rosania, Jr. oversees the case. Keri L. Riley, Esq., at Kutner Brinen Dickey Riley, PC serves as the Debtor's counsel. A.I. BUILDERS: Seeks to Sell Equipment at Auction ------------------------------------------------- A.I. Builders LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina, Raleigh Division, to sell Property at auction, free and clear of liens, claims, and encumbrances. The Debtor owns certain equipment, trailers and tools that include 2 Skyjack 3219 Scissor lifts, Lull 644 Telehandler, Homesteader enclosed trailer VIN 5HABE0811MN100547, and miscellaneous small hand and power tools, which Debtor seeks approval to sell. The Debtor owns all of these properties outright, and none are subject of purchase money or other liens. The Debtor believes the value of the Property to be at least $33,000.00 and believes that the highest value that the estate will receive from the sale of the Property is through public auction. The Debtor has filed an application to approve the hire and compensation of Country Boys Auction & Realty, Inc., which it desires to use for the purpose of liquidating the Property. All net proceeds from the sale shall be deposited into the Debtor's counsel's IOLTA Trust Account to hold for distribution pursuant to the Debtor’s Liquidating Plan or as otherwise directed by the Court through subsequent order. The Debtor prays the Court for an order authorizing the sale of the Property under the terms identified. About A.I. Builders, LLC A.I. Builders, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-02368) on June 23, 2025, listing under $1 million in both assets and liabilities. Honorable Bankruptcy Judge David M. Warren handles the case. The Debtor tapped Bradford Law Offices as counsel. ACADIANA MANAGEMENT: Class Suit over US Trustee Fees Tossed ----------------------------------------------------------- Judge Stephen S. Schwartz of the United States Court of Federal Claims granted the United States government's motion to dismiss the consolidated case captioned as ACADIANA MANAGEMENT GROUP, LLC, et al., Plaintiffs, v. THE UNITED STATES, Defendant, Case No. 19-496C (Fed. Cl.). Plaintiff Acadiana Management Group, LLC and its co-plaintiffs in No. 19-496C are a group of debtors who seek reimbursement of quarterly fees paid as part of the Chapter 11 bankruptcy process. They assert that their bankruptcy fees were set in a way that violated the uniformity requirement of the Bankruptcy Clause. Acadiana Management Group and its co-plaintiffs also moved for certification of a class comprising similarly situated individuals and entities. Johns Manville Corp., Plaintiff in No. 24-402C, has raised an identical claim. The government has likewise moved to dismiss. The parties' arguments for and against dismissal are identical to those in the Acadiana Management Group case. The two cases were consolidated for argument. The two cases are consolidated for further proceedings, with Acadiana Management Group, LLC v. United States (No. 19-496C) designated as the lead case. The Chapter 11 bankruptcy process requires debtors to pay quarterly fees. For a few years, though, debtors in U.S. Trustee districts paid more than debtors in Bankruptcy Administrator districts. The Bankruptcy Judgeship Act of 2017, Pub. L. No. 115-72, Div. B, 131 Stat. 1229, led to a fee increase in the U.S. Trustee districts starting in 2018. The Supreme Court unanimously held in Siegel v. Fitzgerald, 596 U.S. 464 (2022), that the temporary collection of nonuniform fees violated the Bankruptcy Clause of the United States Constitution, which requires that laws governing bankruptcy be "uniform." But the Siegel Court expressly reserved the question of remedy. In Office of United States Trustee v. John Q. Hammons Fall 2006, LLC -- brought by debtors who paid higher fees in a U.S. Trustee district -- the Supreme Court addressed the appropriate remedy. The Supreme Court identified three options reserved in Siegel: (1) refund fees for those charged more in U. S. Trustee districts, (2) retroactively extract higher fees from those charged less in Bankruptcy Administrator districts, or (3) require only prospective parity The Supreme Court concluded that the third option -- which was already in place at the time of Siegel after Congress's equalization of fees in 2021 -- was most appropriate. It observed that a complete monetary refund would be impossible because many debtors that paid higher fees had ceased to exist. It concluded that prospective parity cures the constitutional violation, and due process does not require another result. Unlike the Hammons plaintiffs, who pursued their refund claims through the bankruptcy process, the Plaintiffs in the present cases sought a refund in this Court under a Tucker Act illegal exaction theory. The government argues that although Hammons does not mention the Tucker Act, its reasoning implicitly forecloses that avenue of monetary recovery as well. The Federal Claims Court says its jurisdiction under the Tucker Act extends to claims seeking refunds of illegal exactions. The premise of an illegal exaction claim is that when the government has the citizen's money in its pocket, the Tucker Act permits suit to recover the money exacted. The obvious problem for Plaintiffs is the Supreme Court's holding in Hammons that the constitutional wrong of nonuniformity was fully remedied by prospective equality. The Court finds although Plaintiffs aim to distinguish that holding in various ways, it forecloses their claims. Plaintiffs' main argument is that although Hammons precludes monetary recovery directly from bankruptcy proceedings, it does not apply to recovery in this Court under an illegal exaction theory. But although Hammons does not mention this Court, illegal exactions, or the Tucker Act, it covers Plaintiffs' exaction claim by negating one of its elements. According to Judge Schwartz, "Hammons conclusively established that no further relief beyond prospective parity was warranted for violation of the uniformity requirement of the Bankruptcy Clause. No refund was needed for debtors who paid higher fees. That holding rules out a remedy under the Tucker Act too. Thus, Plaintiffs' complaints should be dismissed because the facts asserted do not entitle them to a legal remedy." Because Plaintiffs' claim is foreclosed by binding precedent, the government's motions to dismiss, are granted. Acadiana Management Group's motion to certify a class, is denied as moot. A copy of the Court's Opinion and Order dated July 9, 2025, is available at https://urlcurt.com/u?l=dYwpxV Counsel for Plaintiffs Acadiana Management Group, LLC, et al.: Bradley L. Drell, Esq. Heather M. Matthews, Esq. GOLD, WEEMS, BRUSER, SUES & RUNDELL, APLC 2001 MacArthur Dr. Alexandria, LA 71307-6118 Tel: (318) 445-6471 E-mail: bdrell@goldweems.com hmathews@goldweems.com Counsel for Plaintiff Johns Manville Corporation: Shane Ramsey, Esq. NELSON MULLINS RILEY & SCARBOROUGH LLP 1222 Demonbreun Street, Suite 1700 Nashville, TN 37203 Tel: (615) 664-5355 E-mail: shane.ramsey@nelsonmullins.com About Acadiana Management Acadiana Management and several affiliates sought Chapter 11 bankruptcy protection (Bankr. W.D. La. Lead Case No. 17-50799) on June 23, 2017. The petitions were signed by August J. Rantz, IV, president. Acadiana Management estimated assets of less than $50,000 and debt at $50 million and $100 million. Judge Robert Summerhays presides over the cases. Gold, Weems, Bruser, Sues & Rundell, serves as the Debtors' bankruptcy counsel. On July 28, 2017, the Office of the U.S. Trustee appointed an official committee of unsecured creditors. Susan Goodman was appointed as patient care ombudsman. ADC AND T LLC: Seeks Chapter 11 Bankruptcy in Texas --------------------------------------------------- On July 9, 2025, ADC and T LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will not be available to unsecured creditors. About ADC and T LLC ADC and T LLC, doing business as BIG Game, provides transportation and logistics services, including hauling operations involving trucks, trailers, and heavy equipment. The Company operates in Texas and serves sectors such as construction, aggregates, or oilfield services. ADC and T LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-32569) on July 9, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtors are represented by Joyce Lindauer, Esq. at JOYCE W. LINDAUER ATTORNEY, PLLC. ADH HOLDINGS: Section 341(a) Meeting of Creditors on August 13 -------------------------------------------------------------- On July 10, 2025, ADH Holdings FL LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Middle District of Florida. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on August 13, 2025 at 10:00 AM. U.S. Trustee (Jax) will hold the meeting telephonically. Call in Number: 888-330-1716. Passcode: 1501240#. About ADH Holdings FL LLC ADH Holdings FL LLC is a Jacksonville-based real estate holding company. ADH Holdings FL LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-02306) on July 10, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Jacob A. Brown handles the case. ADH HOLDINGS: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: ADH Holdings FL, LLC 6034 Chester Ave, Ste 104C Jacksonville, FL 32217 Business Description: ADH Holdings FL, LLC is primarily engaged in real estate services, including property acquisition and management. Chapter 11 Petition Date: July 10, 2025 Court: United States Bankruptcy Court Middle District of Florida Case No.: 25-02306 Judge: Hon.Jacob A Brown Debtor's Counsel: Gerald Stewart, Esq. 24 N Market St Jacksonville FL 32202 Tel: 904-353-8876 Email: stewartlaw7272@gmail.com Total Assets: $1,230,000 Total Debts: $985,000 The petition was signed by Alphonso Hemmeain as manager/member. The petition was filed without the Debtor's list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/ZBOIHWI/ADH_Holdings_FL_LLC__flmbke-25-02306__0001.0.pdf?mcid=tGE4TAMA ADVANCED TRENCHLESS: Has Deal on Cash Collateral Access ------------------------------------------------------- Advanced Trenchless, Inc. asked the U.S. Bankruptcy Court for the Northern District of California, Oakland Division, for authority to use cash collateral and provide adequate protection in accordance with its agreement with Comerica Bank. The Debtor filed for Chapter 11 bankruptcy protection on July 1 to restructure its debts and remain viable in a competitive market. To continue operating its business post-petition without delay and to avoid unnecessary litigation costs, the Debtor entered into a stipulation agreement with Comerica Bank, its principal secured creditor. The bank had previously extended a loan to the Debtor under a revolving/installment note dated July 11, 2018, in the original principal amount of $250,000. As of June 13, 2025, the Debtor owed the bank at least $144,101, excluding interest, fees, and costs. The loan is secured by all of the Debtor's personal property through a Security Agreement and a UCC-1 Financing Statement filed on July 16, 2018, which perfects the bank's first-priority lien on inventory, accounts, deposit accounts, equipment, and general intangibles, whether now owned or after acquired. Given that virtually all of the Debtor's income post-petition qualifies as the bank's cash collateral, the Debtor needed the bank's consent to use those funds for operating expenses, including payroll, routine business costs, and reorganization efforts. The bank agreed, and the parties signed a stipulation that sets forth the conditions under which the Debtor may use the cash collateral. Key terms of the stipulation include: (1) a monthly budget not exceeding $342,060, with a 5% variance allowance; (2) monthly adequate protection payments of $5,000 beginning July 1; (3) a replacement lien in favor of the bank on all of the Debtor's post-petition assets, including cash, receivables, inventory, equipment, and general intangibles; and (4) a term lasting until either default, plan confirmation, or court disapproval of the stipulation. The Debtor maintains that the value of its collateral is equal to or exceeds the amount owed to the bank, though the bank does not concede that point without further valuation. Without approval of the stipulation, the Debtor would be unable to access critical funds, threatening the ongoing operation of its business and the preservation of estate assets. A hearing on the matter is set for July 25. About Advanced Trenchless Inc. Advanced Trenchless, Inc. provides trenchless sewer, plumbing, and drain services across Northern California. The company specializes in hydro jetting, sewer and drain repairs, trenchless replacements, and camera inspections. Founded in 1978, it has decades of experience addressing sewer infrastructure issues with a focus on non-commission-based, full-service solutions. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-41165) on July 1, 2025. In the petition signed by Ryan Charles, president, the Debtor disclosed $536,960 in assets and $4,644,613 in liabilities. Judge Charles Novack oversees the case. David A. Arietta, Esq., at the Law Offices of David A. Arietta, represents the Debtor as legal counsel. AFFINITY INTEGRATED: Court Extends Cash Collateral Access to Aug. 8 ------------------------------------------------------------------- Affinity Integrated Healthcare S.C. received another extension from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, to use cash collateral. The interim order signed by Judge Donald Cassling extended the Debtor's authority to use cash collateral through August 8 in order to pay the expenses set forth in its budget. Any creditor with an interest in the cash collateral, including the U.S. Small Business Administration was granted security interests in property acquired by the Debtor after its Chapter 11 filing, to the same extent and with the same priority as its pre-bankruptcy lien. In 2020, SBA extended a $150,000 loan to the Debtor that purports to be secured by a consensual lien on all tangible and intangible personal property of the Debtor, including all accounts receivables and deposit accounts. The next hearing is set for August 5. About Affinity Integrated Healthcare Affinity Integrated Healthcare S.C. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-09010) on June 19, 2024, listing up to $50,000 in assets and up to $500,000 in liabilities. Judge Donald R. Cassling presides over the case. The Debtor is represented by: Blair R. Zanzig, Esq. Leibowitz Hiltz & Zanzig Tel: 312-566-9008 Email: bzanzig@lakelaw.com AFFORDABLE KAR: Seeks Subchapter V Bankruptcy in Texas ------------------------------------------------------ On July 12, 2025, Affordable Kar Kare Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas. According to court filing, the Debtor reports between $100,000 and $500,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Affordable Kar Kare Inc. Affordable Kar Kare Inc. is an automotive repair shop based in Mesquite, Texas. It provides car maintenance and repair services from its location at 222 S. Galloway in Mesquite. Affordable Kar Kare Inc.sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-42536) on July 12, 2025. In its petition, the Debtor reports estimated assets between $500,000 and $1 million and estimated liabilities between $100,000 and $500,000. The Debtors are represented by Robert T. DeMarco, Esq. at DeMarco Mitchell, PLLC. AIRX LLC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: AirX LLC 6115 NE 88th St. Vancouver WA 98665 Business Description: AirX LLC provides commercial HVAC design and installation services in the Vancouver, Washington area. The Company specializes in systems for new buildings and remodels, including retrofits and upgrades in existing commercial properties. Chapter 11 Petition Date: July 10, 2025 Court: United States Bankruptcy Court Western District of Washington Case No.: 25-41640 Judge: Hon. Mary Jo Heston Debtor's Counsel: Stephen Raher, Esq. TABOR LAW GROUP 4110 SE Hawthorne Blvd. PMB #506 Portland OR 97214-5246 Tel: 971-634-0190 E-mail: sraher@pdx-law.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Alex Kemppainen as owner and managing member. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/A35BSNA/AirX_LLC__wawbke-25-41640__0001.0.pdf?mcid=tGE4TAMA AIRX LLC: Seeks Subchapter V Bankruptcy in Washington ----------------------------------------------------- On July 10, 2025, AirX LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Washington. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About AirX LLC AirX LLC, is a mechanical contractor specializing in HVAC systems and building equipment installation based in Vancouver, Washington. AirX LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 25-41640) on July 10, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Mary Jo Heston handles the case. The Debtors are represented by Stephen A. Raher, Esq. at Tabor Law Group. AKIN MEARS: To Sell Personal Seat License to Kevin Steinberg ------------------------------------------------------------ Allison D. Byman, Chapter 7 Trustee of the estate of Akin Mears LLP, seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, to return funds to prior purchaser and resell Houston Texans Personal Seat Licenses and remaining 2025 Season Tickets to Kevin Steinberg. Among the disclosed assets of the estate are six Houston Texans Personal Seat Licenses (PSLs) located at NRG Stadium, along with the remaining 2025 regular season home game tickets associated with those seats. On May 28, 2025, the Trustee filed an Amended Emergency Motion to Sell the Assets to Jeff Newman for $52,500.00. On May 28, 2025, the Court entered an Order Granting the Original Motion to Sell. Following entry of the Sale Order and receipt of the $52,500.00 purchase price, the Trustee attempted to transfer the Assets to Mr. Newman. However, the NFL declined to process the transfer on the basis that Mr. Newman is a ticket broker. Mr. Newman has since requested a refund of the $52,500.00 purchase price from the Trustee. He also informed the Trustee that his colleague, Kevin Steinberg, is willing to purchase the Assets for the same price of $52,500.00. Mr. Steinberg has verified that he is not a ticket broker. The Trustee seeks authority to enter into the Return of Funds and Release Agreement with Mr. Steinberg. The proposed sale is on an "as is, where is" basis, with no warranties or representations, except as explicitly set forth in the Sale Agreement. The Trustee requests authority to refund the full $52,500.00 purchase price to Mr. Newman and to sign the attached release. The Trustee further requests approval of the Sale Agreement with Mr. Steinberg for the purchase of the Assets for $52,500.00. The Trustee believes that the proposed sale price of $52,500.00 represents fair and reasonable value for the Assets and is in the best interest of the estate and its creditors. Steinberg has agreed to buy the Assets for the same price as the prior purchaser. Steinberg will submit payment for the Assets within seven days of entry of an order approving the sale. The Trustee notes that comparable PSLs located near the 50-yard line have recently sold for approximately $10,000 per license, and the current offer, approximately $8,600 per license, is within a commercially reasonable range given the time-sensitive nature of the sale and the risk of forfeiture. About Akin Mears LLP Akin Mears LLP is a national law firm that handles claims for injured individuals and families from all 50 states, U.S. Territories, Canada and other foreign countries. Akin Mears sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-30358) on January 23, 2025. Marvin Isgur presides over the case. Miriam T. Goott of Walker & Patterson PC represents the Debtor as legal counsel. ALIEN TECHNOLOGIES: L. Todd Budgen Named Subchapter V Trustee ------------------------------------------------------------- The U.S. Trustee for Region 21 appointed L. Todd Budgen, Esq., a practicing attorney in Longwood, Fla., as Subchapter V trustee for Alien Technologies Corporation. Mr. Budgen will be paid an hourly fee of $400 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Budgen declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: L. Todd Budgen, Esq. P.O. Box 520546 Longwood, FL 32752 Tel: (407) 232-9118 Email: Todd@C11Trustee.com About Alien Technologies Corporation Alien Technologies Corporation designs and sells hardtop removal tools and accessories for Jeep Wrangler and Ford Bronco vehicles under the TopLift Pros brand. Alien Technologies Corporation sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-03827) on June 20, 2025. In its petition, the Debtor reported estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Judge Grace E. Robson handles the case. The Debtor is represented by Jesus Lozano, Esq., at Nardella & Nardella, PLLC. ALL PROPERTIES: Case Summary & One Unsecured Creditor ----------------------------------------------------- Debtor: All Properties, LLC 13601 Arrington Rd. Grandview MO 64030 Business Description: All Properties, LLC is a real estate company that leases various types of real property not classified under standard categories such as apartments, offices, or shopping centers. The Company operates in Grandview, Missouri, and focuses on specialized leasing arrangements that may include land, facilities, or other unique property types. Chapter 11 Petition Date: July 10, 2025 Court: United States Bankruptcy Court Eastern District of Missouri Case No.: 25-41048 Debtor's Counsel: Robert Baran, Esq. CONROY BARAN 1316 Saint Louis Avenue 2nd FL Kansas City MO 64101 Tel: 816-616-5009 E-mail: rbaran@conroybaran.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Luke Ungashick as president. The Debtor identified Jackson County, Missouri, as its sole unsecured creditor, listing a $35,597 claim tied to an address at 415 E. 12th Street, Kansas City, MO 64106. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/GKZXL5Q/All_Properties_LLC__mowbke-25-41048__0001.0.pdf?mcid=tGE4TAMA ALTAR PDX: Gets Interim OK to Use $17K in Cash Collateral --------------------------------------------------------- The U.S. Bankruptcy Court for the District of Oregon issued an interim order authorizing ALTAR PDX, LLC to use $17,105.48 in cash collateral from July 1 to 30. The Debtor's authority to use cash collateral is limited to the uses set forth in the budget, together with a 10% aggregate variance. The Debtor needs immediate access to cash collateral to pay its expenses in order to continue its operations. The U.S. Small Business Administration is the only known secured creditor, with a $266,102 claim secured by all personal property of the Debtor. As protection for the Debtor's use of its cash collateral, SBA will be granted a replacement lien on assets acquired by the Debtor after its Chapter 11 filing that are similar to its pre-bankruptcy collateral. About Altar PDX, LLC Altar PDX, LLC manufactures and sells clothing online. Altar PDX sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ore. Case No. 25-32203) on June 27, 2025, listing up to $50,000 in assets and up to $500,000 in liabilities. Cassandra Ridgway, owner and member of Altar PDX, signed the petition. Judge Peter C. McKittrick oversees the case. Nicholas J. Henderson, Esq., at Elevate Law Group, represents the Debtor as bankruptcy counsel. AMC ENTERTAINMENT: Moody's Affirms 'Caa2' CFR, Outlook Stable ------------------------------------------------------------- Moody's Ratings affirmed AMC Entertainment Holdings, Inc.'s ("AMC" or the "company") Caa2 Corporate Family Rating (and Caa2-PD Probability of Default Rating. Moody's also affirmed all instrument ratings including the B3 Senior Secured First-Lien Term Loan at AMC Entertainment Holdings, Inc. (AMC) which is co-borrower with Muvico, LLC (Muvico), B3 Senior Secured First-Lien Notes at Odeon Finco PLC (Odeon), Muvico's Caa2 Senior Secured Second-Lien Notes, AMC's Caa3 Guaranteed Senior Secured First-Lien and Second-lien Notes, and Ca Senior Subordinated Notes. AMC's Speculative Grade Liquidity rating was downgraded to SGL-4, from SGL-3. The outlook on all entities is stable. On July 01 the company announced [1] that it entered into a Transaction Support Agreement with key creditor groups, including certain holders of its 7.5% Senior Secured Notes due 2029, certain holders of Muvico, LLC's 6.00%/8.00% Senior Secured Exchangeable Notes due 2030, and certain lenders representing AMC's term loans outstanding under its existing credit agreement. The agreement provides for a debt for equity exchange of a portion of the debt outstanding, and resolves outstanding litigation with certain holders of AMC's 7.5% Senior Secured Notes due 2029. Highlights of the agreement include: -- The Consenting 7.5% Noteholders will provide approximately $223.0 million of incremental new money financing and will exchange $590.0 million of existing 7.5% Notes due 2029 for a total of $824.4 million aggregate principal amount of new Senior Secured Notes due 2029; -- The immediate conversion of at least $143.0 million of 6.00%/8.00% Senior Secured Exchangeable Notes due 2030 for equity (Class A Common Stock), with the potential to equitize up to a total of $337 million of such notes over time; -- Term Loan Lenders have agreed to support amendments to their existing debt agreements to facilitate the transactions; Moody's expects the transaction to reduce debt by at least $260 million, primarily sourced from the new money financing, which will be used to repay maturities due through the end of 2026 and which pushes the nearest maturity out to 2027. However, the transaction will increase total interest expense (based on Moody's estimated weighted average cost of reported debt) by an incremental annual cost near $35-40 million due primarily to the increase in the interest rate on the 2029 notes to 15% for participating lenders, from 7.5%, but with step-downs based on net leverage which could lower the rate to a minimum of 11.5% when the ratio is below 6.5x. As a result of the transaction, Moody's believes the pro forma priority of claims will be largely the same except for two key changes (1) the non-participating 7.5% lenders (with pro forma debt obligation totaling approximately $360 million) will retain the existing terms and conditions of the notes (e.g. notably, a 7.5% interest rate and no lien on Muvico assets) and thus sit behind the lenders that participate in the exchange of the 7.5% notes at AMC which gain a 1.5 lien on Muvico assets, and (2) the improved collateral package for the lenders participating in the 7.5% note exchange (the Senior Secured First-Lien note holders at AMC) given the new 1.5 lien on the collateral assets at Muvico which effectively gives these lenders a third claim priority behind the Second-Lien Exchangeable Notes at Muvico which will now have a 1.25 lien claim on the Muvico assets. Moody's expects the debt exchanges including the 7.5% Senior Secured Notes due 2029 and Muvico, LLC's 6.00%/8.00% Senior Secured Exchangeable Notes due 2030 to be considered limited defaults under Moody's definition. As a result, Moody's expects to append the PDR with an "LD" limited default designation at the close of the transaction. The LD will be removed a few days thereafter. Moody's ratings are subject to change based on final documentation, assuming no material changes to any terms or conditions of the transaction. RATINGS RATIONALE AMC's Caa2 CFR reflects the company's declining but still high leverage (Moody's adjusted), sub-scale position relative to significant fixed costs including capex, rent, and borrowing costs which constraints operating leverage and results in recurring annual negative free cash flow. Liquidity is also weak, constrained by reduced cash balances and no revolver capacity. A history and continued high risk of debt restructurings and distressed exchanges to manage debt obligations and maturities and resulting complexity in the organizational and capital structure are risks reflected in the CIS-5 Credit Impact Score and G-5 Issuer Profile Score. The company is also challenged by a number of unfavorable industry dynamics including (i) a slow and uneven recovery from the 2020 pandemic with the US box office well below pre-pandemic levels, (ii) 2023 industry strikes which substantially weakened the slate in 2024 and into 2025, (iii) a structural shift to a much shorter theatrical window, (iv) the shift to streaming movies direct-to-consumer (DTC), and (v) inherent volatility and unpredictability of box office attendance / success. Offsetting these weaknesses is the company's moderate geographic diversity and position as the world's largest movie exhibitor with a stabilized low 20% share of the US box office. The relatively low cost of out-of-home movie entertainment, consistent rise in ticket prices, and very high gross margins in admissions and in particular, food and beverage, are also supportive. The stable outlook reflects Moody's views of an improving box office, a strong and stable market share, sustained and very strong gross profit margins, and growth in revenue and earnings over the next 12-18 months. Despite and offsetting these supporting factors, Moody's also understands AMC will continue to manage its debt maturities and debt service costs with various forms of financing including a potential mix of debt and or equity restructuring which Moody's could view as distressed exchanges. Moody's also expects the company's liquidity to remain weak and under pressure with significant negative annual free cash flow due to low operating leverage given the current sub-scale of the company relative to its high fixed-costs. Liquidity is weak, reflected in the SGL-4. The company had $379 million in cash at the end of the last quarter and no revolving credit facility. Negative annualized free cash flows over the next 12-15 months are likely which will weaken liquidity, requiring continued reliance on the capital markets to raise additional sources of liquidity. The company's debt agreements do not contain financial maintenance covenants. Moody's believes there is limited alternate liquidity given the secured capital structure. STRUCTURAL CONSIDERATIONS Moody's rates the Senior Secured First-Lien Term Loan (TL) at AMC B3 (Muvico as co-borrower), the Senior Secured First-Lien Notes at Odeon Finco PLC (Odeon) B3, the Guaranteed Senior Secured Second-Lien (referred to as 1.25 lien) Notes at Muvico Caa2, and obligations at AMC Entertainment Holdings, Inc. including the Guaranteed First-Lien and Second-Lien Senior Secured Notes Caa3, and the Senior Subordinated Notes Ca. The B3 rated TL due 2029 at AMC (Muvico as co-borrower) benefits from a first lien claim on the assets of AMC (excluding certain international assets) which it shares with the AMC secured lenders and a first priority claim on the assets of Muvico (which Moody's believes contains a significant portion of the assets of the consolidated entity). The B3 rated TL is also supported by the loss absorption in a default scenario provided by the substantial amount of junior claims at AMC and Muvico. The Caa2 exchangeable notes due 2030 at Muvico effectively have a second lien (referred to as 1.25 lien) behind the first-lien TL on the Muvico assets, and therefore a junior claim to it, but benefits from loss absorption of a substantial portion of junior claims at AMC. The Muvico creditors do not have a lien on Odeon assets. They are also subject to turnover provisions with respect to the recoveries of Term Loan lenders in the collateral at AMC (e.g. they share in the AMC assets, on a first lien basis, with the Term Loan Lenders and AMC first-lien, but rank junior to both if the assets are insufficient to satisfy the claims of the first-lien lenders). The B3 notes due 2027 at Odeon benefit from a first lien claim on the entity's asset collateral which includes certain international assets, which Moody's estimates are very significant relative to the outstanding debt and therefore view these lenders as in a similar relative recovery position as the first-lien TL lenders at Muvico. The First-Lien Senior Secured Notes due 2029 at AMC (rated Caa3) that participate in the planned 7.5% note exchange will gain 1.5 liens on Muvico assets, effectively third priority claim of assets at Muvico, but have no lien on Odeon assets. The ratings benefit from the more junior claims at AMC including unsecured subordinate notes, lease rejection claims and trade payables. The non-participating First-Lien Senior Secured Notes holders in the planned exchange are also rated Caa3. While they retain existing terms and conditions and will therefore not receive a lien on the assets at Muvico, putting them in a weaker position than the participating lenders, the positioning still benefits from the same junior claims as participating lenders. The Second Lien Senior Secured notes are also rated Caa3. They do not have a lien on Muvico or Odeon assets and rank behind the First-Lien 7.5% non-participating lenders which share in a first lien on AMC's assets. Despite the differences in collateral, all of these debt instruments are rated Caa3 given their position in the capital structure behind a significant amount of higher priority debt and ahead of lower priority debt. The Ca senior subordinated notes at AMC are the most junior claims as they lack security, and have last priority. Moody's instruments ratings reflect both the probability of default, as reflected in the Caa2-PD probability of default rating, and an average expected family recovery rate of 50% at default. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be upgraded if Moody's expects a lower risk of debt restructuring and distressed exchanges with well-managed debt maturities, improved liquidity supported by free cash flow trending nearer break-even, sustained growth in revenue and earnings, and stable or better profitability margins. Ratings could be downgraded if Moody's believes the risk of insolvency or bankruptcy is increasing, evidenced by weak operating performance or declining liquidity. Headquartered in Leawood, Kansas, AMC Entertainment Holdings, Inc. is the largest movie exhibitor in the US and globally, owning, operating or with interests in 865 movie theatres with around 9,725 screens in 11 countries across the US and Europe. Revenue totaled approximately $4.6 billion for the twelve months ended March 31, 2025. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. AMC's Caa2 corporate family rating is three notches below the scorecard-indicated outcome of B2. The difference primarily reflects the high risk of a continued distressed exchanges given the company's weak liquidity and history of using these transactions to manage debt obligations. AMERIGO METAL: Gets Interim OK to Use Cash Collateral ----------------------------------------------------- Amerigo Metal Recycling, LLC got the green light from the U.S. Bankruptcy Court for the Northern District of Georgia, Atlanta Division, to use cash collateral. The court's order authorized the Debtor's interim use of cash collateral from July 3 to August 7 in accordance with its budget. The Debtor believes its revenues constitute cash collateral and intends to use those funds for ordinary operating and administrative expenses. Several lenders including the U.S. Small Business Administration, BizFund, LLC, First Horizon Bank, and Rapid Finance assert pre-bankruptcy liens on the Debtor's cash collateral, with SBA believed to be in first priority based on UCC-1 filings. The lenders will be granted a valid and properly perfected post-petition replacement lien on property acquired by the Debtor after its Chapter 11 filing that is similar to their pre-bankruptcy collateral. The replacement lien does not apply to the proceeds of any Chapter 5 avoidance actions. The final hearing is set for August 7. First Horizon Bank, as lender, is represented by: Siena Berrios Gaddy, Esq. Baker Donelson 1500 Monarch Plaza 3414 Peachtree Road, N.E. Atlanta, GA 30326 Tel: (404) 577-6000 sgaddy@bakerdonelson.com About Amerigo Metal Recycling Amerigo Metal Recycling, LLC operates a metal recycling business. Amerigo sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-57425) on July 1, 2025, listing up to $50,000 in assets and up to $50 million in liabilities. Jeffrey H. Cammllarie, manager, signed the petition. William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC, represents the Debtor as legal counsel. AMYNTA AGENCY: Moody's Affirms 'B3' CFR, Outlook Stable ------------------------------------------------------- Moody's Ratings has affirmed the B3 corporate family rating and B3-PD probability of default rating of Amynta Agency Borrower, Inc. (Amynta). At the same time, Moody's assigned a Caa2 rating to Amynta's new $350 million of senior unsecured notes due 2033. Proceeds from the notes issuance are expected to be used to repay the company's first-lien revolving credit facility, fund a one-time dividend to its shareholders of approximately $220 million, pay fees related to the transaction and for general corporate purposes including potential acquisitions. Moody's upgraded Amynta's senior secured first-lien term loan and revolving credit facility ratings to B2 from B3 as a result of the change in the funding mix. The rating outlook for Amynta is stable. RATINGS RATIONALE According to Moody's, Amynta's ratings reflect its growing managing general agency business and specialty risk services operations, as well as its good market presence in US warranty products, particularly vehicle service contracts. The company has increased revenue both organically and through acquisitions over the past several years, while improving EBITDA margins. Amynta continues to focus on controlling costs, streamlining systems and enhancing data and analytics capabilities. The company provides a wide range of coverages and services to the insurance and warranty markets. These strengths are offset by the company's high debt load and modest interest coverage and free-cash-flow-to-debt ratio. Other credit challenges include the company's limited size and the still significant, but declining, concentration of its insurance placements with AmTrust Financial Services, Inc. Amynta's warranty business continues to face a challenging operating environment given prevailing high interest rates and economic uncertainty in the US, although this is partially offset by stronger growth prospects in the group's MGA segment, which represents approximately three-fourths of the group's net revenues. Giving effect to the proposed issuance of the senior unsecured notes, Moody's estimates that Amynta's pro forma debt-to-EBITDA ratio is around 7.5x, with (EBITDA - capex) coverage of interest of approximately 1.5x and a free-cash-flow-to-debt ratio in the low-single digits. These metrics incorporate Moody's standard accounting adjustments for operating leases, run-rate EBITDA from acquisitions, and certain non-recurring costs and other items. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The following factors could lead to an upgrade of Amynta's ratings: debt-to-EBITDA ratio below 6.5x; (EBITDA - capex) coverage of interest exceeding 2x; free-cash-flow-to-debt ratio exceeding 5%; and ability to place business with a range of carriers. The following factors could lead to a downgrade of Amynta's ratings: debt-to-EBITDA ratio above 7.5x; (EBITDA - capex) coverage of interest below 1.2x; or free-cash-flow-to-debt ratio below 2%. The principal methodology used in these ratings was Insurance Brokers and Service Companies published in February 2024. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. Based in New York City, Amynta is an insurance services company operating through two businesses including managing general agencies and warranty including coverages for autos and other consumer products. Amynta serves leading insurance carriers, wholesalers, retail agencies, auto dealers and other parties throughout the US and Canada. The company generated total GAAP revenue of approximately $1.4 billion during the 12 months through March 31, 2025. APPTECH PAYMENTS: Issues $360K Convertible Note at 20% OID ---------------------------------------------------------- AppTech Payments Corp. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that it entered into a Securities Purchase Agreement with an accredited investor, pursuant to which the Company issued and sold to the Purchaser a 20% original issue discount convertible promissory note in the aggregate principal amount of $360,000 for a purchase price of $300,000. The transaction closed on June 18, 2025. In connection with the Offering, a non-accountable fee of $7,500 was withheld from the Purchase Price by the Purchaser to cover its accounting fees, legal fees, and other transactional costs incurred in connection with the transactions contemplated by the Purchase Agreement. The Company also paid certain placement fees and legal fees. The Note matures six months from its date of issuance and bears interest at a rate of 10% per annum, payable on the maturity date. The Note is convertible, at the option of the holder, at any time, into such number of shares of common stock of the Company equal to the principal amount of the Note plus all accrued and unpaid interest at a conversion price equal to $2.00, subject to adjustment for any stock splits, stock dividends, recapitalizations and similar events. The Note is redeemable by the Company at a redemption price equal to 100% of the sum of the principal amount to be redeemed plus accrued interest, if any. In no event will the holder be entitled to convert any portion of the Note in excess of that portion which would result in beneficial ownership by the holder and its affiliates of more than 4.99% of the outstanding shares of common stock, unless the holder delivers to the Company written notice at least 61 days prior to the effective date of such notice that the provision be adjusted to 9.99%. Upon the occurrence of certain events of default specified in the Note, such as a failure to honor a conversion request, failure to maintain the Company's listing, the Company's failure to comply with its obligations under Securities Exchange Act of 1934, or as amended, a breach of the Company's representations or covenants, as amended, all amounts owed to holder under the Note, together with default interest at 18% per annum if any, shall then become due and payable. The number of shares of the Company's common stock that may be issued upon conversion of the Note is subject to reserved shares, and 3,600,000 shares have been reserved with the Transfer Agent. The Reserved Shares are subject to adjustment for any default, reorganization, recapitalization, non-cash dividend, stock split (including forward and reverse), or other similar transactions. The Purchase Agreement contains customary representations, warranties, agreements, and conditions for completing future sale transactions, as well as indemnification rights and obligations of the parties. Among other things, the Purchaser represented to the Company, that it is an "accredited investor" (as such term is defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended), and the Company sold the securities in reliance upon an exemption from registration contained in Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder. The Note and Purchase Agreement are filed as Exhibits 4.1 and 10.1, respectively, to the Form 8-K available at https://tinyurl.com/4cb99dnt. This summary is qualified in its entirety by reference to the full text of those agreements. About AppTech Payments Corp. Headquartered in Carlsbad, California, AppTech Payments Corp. -- www.apptechcorp.com -- provides digital financial services for financial institutions, corporations, small and midsized enterprises, and consumers through the Company's scalable cloud-based platform architecture and infrastructure, coupled with its Specialty Payments development and delivery model. AppTech maintains exclusive licensing and partnership agreements in addition to a full suite of patented technology capabilities. San Diego, California-based DBBMcKennon, the Company's auditor since 2014, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has limited revenues and has suffered recurring losses from operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of Dec. 31, 2024, the Company had $8.99 million in total assets, $3.52 million in total liabilities, and a total stockholders' equity of $5.47 million. ARAGON PARENT: Term Loan Repricing No Impact on Moody's 'B2' CFR ---------------------------------------------------------------- Moody's Ratings said that Aragorn Parent Corporation's (dba OverDrive) proposed repricing of the existing outstanding $720 million (as of June 2025) backed senior secured first lien term loan due December 2028 will not impact the company's ratings, including the B2 Corporate Family Rating, B2-PD Probability of Default Rating and the B2 backed senior secured first lien bank credit facilities ratings. The outlook remains unchanged at stable. On July 08, 2024, OverDrive announced that it has launched a repricing of its outstanding $720 million senior secured first lien term loan due December 2028. This repricing will not change the debt amount or the key terms and conditions of the credit agreement. Moody's views the proposed repricing as modestly credit positive due to marginal interest expense savings and free cash flow improvement. Moody's estimates annual interest savings of approximately $6 million assuming that all lenders consent to the proposed repricing, which lowers the interest rate from the current SOFR+425bps. The transaction will not impact OverDrive's adjusted debt to cash EBITDA (adding back amortization of product development costs and deducting cash paid on product development costs) of 6.1x (5.7x based on Moody's adjusted debt to EBITDA) as of the last twelve months ending March 2025. OverDrive's B2 CFR reflects moderate operating scale, narrow product focus, and elevated financial leverage. Public libraries account for over 80% of total revenue and uncertainty around public libraries' funding could potentially weigh on operating performance. The company benefits from its solid market position in global business-to-business digital content distribution, large customer network of public libraries and schools, and broad content catalog of ebooks, audiobooks, and videos from various publishers and imprints. Over the next 12 to 18 months, Moody's expects mid-single digit revenue growth and improving EBITDA margins to drive debt to EBITDA to below 6x. The ratings could be upgraded if OverDrive is able to diversify its client segments to mitigate the significant reliance on the public library end market and deliver consistent revenue and EBITDA growth resulting in Moody's adjusted debt to cash EBITDA sustained below 4.0x and free cash flow to debt above 10%. Also, the company would need to maintain a good liquidity position and exhibit prudent financial policies. The ratings could be downgraded if the company fails to achieve expected revenue and EBITDA growth such that debt to cash EBITDA is sustained above 6.0x. Any additional debt-funded acquisitions or dividend recapitalization that could delay deleveraging or deteriorate liquidity could also pressure the ratings. Aragorn Parent Corporation's (dba OverDrive) is a digital content distribution platform primarily used by public libraries, schools and corporations. The platform enables customers to provide ebooks, audiobooks, streaming video, magazines and other digital content to their patrons, students and employees through the company's applications, including Libby, Sora, TeachingBooks and Kanopy. Revenue was $620 million for the last twelve months ending March 2025. The company is majority-owned by affiliates of Kohlberg Kravis Roberts & Co LP (KKR). ARBOR REALTY: Fitch Assigns 'BB' Final Rating on Sr. Unsec Notes ---------------------------------------------------------------- Fitch Ratings has assigned a final rating of 'BB' to Arbor Realty SR, Inc.'s (ARS) $500 million of 7.875% senior unsecured notes due July 2030. ARS is a wholly owned, debt issuing subsidiary of Arbor Realty Trust, Inc. (together, Arbor). The assignment of the final rating follows the receipt of documentation conforming to information already received and the completion of the debt issue, the proceeds of which are being used to repay their outstanding 7.5% senior unsecured convertible note due August 2025 and for general corporate purposes. The final ratings are the same as the expected ratings assigned on June 30, 2025. Key Rating Drivers Franchise Strengths: Arbor's ratings reflect its established platform and market position as a direct commercial real estate (CRE) lender and agency originator, seller and servicer. The ratings also reflect the relative diversity of its business model, limited valuation risk associated with mortgage servicing rights (MSRs), due to the presence of prepayment protections, strong asset quality, consistent operating performance, appropriate leverage, well-laddered funding profile, and experienced management team. Challenging Sector Conditions: Rating constraints include Arbor's largely secured funding profile, reliance on wholesale funding sources, and distribution requirements associated with the firm's real estate investment trust (REIT) status, which limits its ability to retain capital. Rating constraints applicable to CRE-focused lenders more broadly, include operating challenges because of adverse economic conditions, elevated rates, declining real estate values, and increased delinquencies, loan modifications and foreclosures. Diversified Business Model: Arbor is one of the largest commercial mortgage REITs in the U.S., with $13.4 billion of assets as of March 31, 2025. Fitch believes the firm benefits from a diverse product line, including direct lending in the multifamily and single-family rental markets, and acting as an originator, seller and servicer of agency multifamily finance products. This enables the company to reallocate capital to segments offering more attractive risk-adjusted returns in different market environments. Low Net Charge-Offs: Historically, Arbor has reported relatively strong asset quality compared to peers due to solid collateral coverage and effective asset management. The company has a proven track record of operating and selling assets at gains relative to carrying value, which has resulted in low net charge-offs historically. However, the impaired loans ratio increased to 6% at 1Q25, up from 4% a year ago and compared with a 2.7% average from YE 2021-YE 2024. This was within Fitch's 'bb' asset quality benchmark range of 4%-10% for balance sheet intensive finance and leasing companies with a sector risk operating environment (SROE) score in the 'bbb' category. The uptick resulted from an increase in real estate owned assets, which grew to $302.2 million at 1Q25, up from $176.5 million at YE 2024. Elevated rates, which are driving higher delinquencies, could incrementally increase impairments in the near term. However, these risks are partially mitigated by the meaningful reserves against existing impaired loans, and the firm's asset management capabilities. Fitch does not anticipate these factors to drive material net charge-offs over time. Earnings to Stabilize: For the trailing twelve months (TTM) ended March 31, 2025, the firm generated a pretax ROAA of 2.0%, which is below the average 2.7% from 2021-2024. Fitch also considers distributable earnings (DE) to average assets, adjusted for noncash items recorded in net income in its assessment of profitability. On this basis, Arbor reported a DE to average assets ratio of 2.4% for TTM 1Q25, down from 2.8% a year ago and below the average of 2.6% from 2021-2024. Profitability metrics fall within Fitch's 'bb' category earnings benchmark range of 2% to 6% for finance and leasing companies with high balance sheet usage and a SROE score in the 'bbb' category. Fitch expects earnings to remain near current levels, as higher rates have driven lower origination volumes and the company addresses its problem loans. Appropriate Leverage: Arbor's leverage, calculated as gross debt to tangible equity, including off-balance sheet, non-recourse funding, and giving 50% equity credit to junior subordinated debt and preferred shares, was 3.6x at March 31, 2025. This is within Fitch's 'bbb' category benchmark range of 0.75x-4x for balance sheet intensive finance and leasing companies with a SROE score in the 'bbb' category. At 1Q25, Arbor had $3.3 billion of nonrecourse CLO debt outstanding. Fitch considers CLO debt a core funding source for one of the firm's primary businesses and, therefore, primarily evaluates Arbor's leverage including CLO borrowings. Arbor has historically managed leverage at, or around, 4x on a debt-to-equity basis. Leverage was 3.0x on this measure at 1Q25. As such, Fitch expects Arbor to deploy excess capital and liquidity over the medium term as lending or investing opportunities arise. Largely Secured Funding Profile: At 1Q25, approximately 15.1% of Arbor's debt was unsecured, or 17% proforma for the $500 million senior unsecured note issuance. This percentage was at the lower end of Fitch's 'bb' category benchmark range of 10%-35% for finance & leasing companies with an SROE score in the 'bbb' category. Fitch believes this modest level of unsecured funding constrains the firm's rating and would view an increase in the unsecured funding mix favorably, as it would enhance its financial flexibility, particularly in times of stress. Fitch believes Arbor's secured funding is diverse, comprised of repurchase and credit facilities, CLOs and securitizations, and it maintains a well-laddered maturity profile. Proceeds from the debt issuance, will be used to repay $287.5 million of convertible notes due in August 2025. Beyond that, there are no debt maturities until March 2026 when $95 million of unsecured notes come due. As of 1Q25, 61% of debt facilities do not permit valuation adjustments based on capital markets events. Instead, margin calls on these facilities are limited to collateral-specific credit marks, which is expected to limit liquidity risks even during periods of market stress due to the firm's strong underwriting track record and focus on agency lending. Sufficient Liquidity: Fitch believes Arbor's liquidity profile is sufficient, with $343.8 million of cash and undrawn capacity on committed credit facilities at March 31, 2025. This provided 1.2x coverage of near-term debt maturities. Fitch expects Arbor to maintain sufficient liquidity to address operational funding needs and debt repayment over time. Arbor's liquidity position remains constrained by its REIT tax election, as it must distribute a least 90% of its taxable net income, excluding capital gains, to shareholders each year. Coverage of its dividend has been solid historically, averaging 130% from 2021-2024 and 90% in 1Q25. Stable Outlook: The Stable Outlook reflects Fitch's view that Arbor's leverage will be managed in a manner consistent with the risk profile of the portfolio, credit losses will remain manageable, and earnings will remain sufficient to cover its dividend. Fitch also expects the company to appropriately manage its debt maturity profile and maintain sufficient liquidity. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A sustained reduction in the proportion of unsecured debt funding to below 10%; - A sustained increase in Fitch-calculated leverage above 5x and/or a sustained increase in company-calculated leverage above 4x; - Material deterioration in credit performance resulting in write-offs above long-term historical levels; - An inability to maintain sufficient liquidity relative to near-term debt maturities, unfunded commitments and margin call potential; - A reduction in business line diversity due to a material change in strategy; - A reduction in core earnings and earnings coverage of the dividend. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A sustained increase in the proportion of unsecured debt approaching 25% of total debt; - The maintenance of leverage at or below 3.5x on a Fitch-calculated basis, including non-recourse debt; - The maintenance of strong asset quality performance; - Consistent core earnings generation; - The maintenance of a solid liquidity profile and strong dividend coverage. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The senior unsecured debt rating is equalized with ARS and Arbor's 'BB' Long-Term Issuer Default Rating (IDRs), reflecting the availability of unencumbered assets and average recovery prospects for creditors under a stress scenario. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The unsecured debt rating is primarily sensitive to changes in Arbor and ARS's Long-Term IDRs and are expected to move in tandem. SUBSIDIARY AND AFFILIATE RATINGS: KEY RATING DRIVERS ARS is a wholly owned, debt issuing entity of Arbor. Therefore, the Long-Term IDR is equalized with that of its parent. SUBSIDIARY AND AFFILIATE RATINGS: RATING SENSITIVITIES ARS's rating is sensitive to any change in Arbor's ratings and would be expected to move in tandem. ADJUSTMENTS - The Standalone Credit Profile (SCP) has been assigned below the implied SCP due to the following adjustment reason: Weakest link - Funding, Liquidity & Coverage (negative). - The Business Profile score has been assigned below the implied score due to the following adjustment reason: Business model (negative). - The Asset Quality score has been assigned below the implied score due to the following adjustment reason: Concentrations; asset performance (negative). - The Capitalization & Leverage score has been assigned below the implied score due to the following adjustment reason: Risk profile and business model (negative). Date of Relevant Committee 17-Jun-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 Prior ----------- ------ ----- Arbor Realty SR, Inc. senior unsecured LT BB New Rating BB(EXP) ARC-V INC: Seeks Chapter 11 Bankruptcy in California ---------------------------------------------------- On July 1, 2025, ARC-V Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 100 and 199 creditors. The petition states funds will be available to unsecured creditors. About ARC-V Inc. ARC-V Inc. is a healthcare company likely specializing in orthopedic products and prosthetics based in Sherman Oaks, California. ARC-V Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11216) on July 1, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Martin R. Barash handles the case. The Debtors are represented by Michael Jay Berger, Esq. ARMELLINO ITALIAN: Files Emergency Bid to Use Cash Collateral ------------------------------------------------------------- Armellino Italian Ices Corp asked the U.S. Bankruptcy Court for the Northern District of Alabama for authority to use cash collateral. The Debtor, which owns a Rita’s Italian Ice and PJ's Coffee franchise near the University of Alabama, cited significant financial strain due to COVID-19 impacts, seasonal fluctuations in revenue, competition, and obligations tied to a Small Business Administration loan. The SBA loan was used to fund property buildout and was personally guaranteed by the Debtor's principal, including a lien on personal property in New York. At the time of filing on July 1, the Debtor held approximately $9,300 in cash, had no accounts receivable, and projected $40,000 in average monthly income. The Debtor emphasized the urgent need to use its cash collateral to maintain operations and preserve the business as a going concern. Without access to these funds, it argued that it would suffer immediate and irreparable harm, undermining its reorganization efforts. The Debtor acknowledged that the SBA may hold a security interest in the cash collateral and proposed providing adequate protection through replacement liens on post-petition receivables and future positive cash flow. It also requested that banks be authorized to honor checks and fund transfers made in the ordinary course of business. A court hearing is scheduled for July 22. About Armellino Italian Ices Corp. Armellino Italian Ices Corp. which operates Rita's Italian Ice and PJ's Coffee franchises in Tuscaloosa, Alabama, specializes in selling Italian ice, frozen custard, and specialty coffee products through its two branded retail locations on University Boulevard. Armellino Italian Ices Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ala. Case No. 25-70864) on July 1, 2025. In its petition, the Debtor reported estimated assets between $100,000 and $500,000 and estimated liabilities between $500,000 and $1 million. The Debtors are represented by Anthony Brian Bush, Esq. at The Bush Law Firm. ASSURED ACQUISITIONS: Seeks to Hire David A. Riggi as Attorney -------------------------------------------------------------- Assured Acquisitions LLC seeks approval from the U.S. Bankruptcy Court for the District of Nevada to hire the Law Office of David A. Riggi, as attorney to the Debtor. The Debtor requires David A. Riggi to: a. institute, prosecute, or defend any contested matters arising out of the bankruptcy proceeding in which the Debtor may be a party; b. assist in the recovery and obtaining necessary Court approval for recovery and liquidation of estate assets, and to assist in protecting and preserving the same where necessary; c. assist in determining the priorities and status of claims and in filing objections thereto where necessary; d. assist in preparation of a disclosure statement and Chapter 11 plan; and e. advise the Debtor and perform all other legal services for the Debtor necessary in the bankruptcy proceeding. David A. Riggi will be paid at these hourly rates: Attorney $500 Associates $195 David A. Riggi will be paid a retainer in the amount of $4,000. David A. Riggi will also be reimbursed for reasonable out-of-pocket expenses incurred. David A. Riggi, principal of the Law Office of David A. Riggi, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. David A. Riggi can be reached at: David A. Riggi, Esq. LAW OFFICE OF DAVID A. RIGGI 5550 Painted Mirage Rd. Suite 120 Las Vegas, NV 89149 Tel: (702) 463-7777 Fax: (888) 306-7157 E-mail: RiggiLaw@gmail.com About Assured Acquisitions Assured Acquisitions, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-13042) on May 29, 2025, listing between $500,001 and $1 million in assets and between $100,001 and $500,000 in liabilities. David A. Riggi, Esq., at Riggi Law Firm represents the Debtor as bankruptcy counsel. ATLAS CC: Fitch Lowers LongTerm IDR to 'CCC-' & Puts on Watch Neg. ------------------------------------------------------------------ Fitch Ratings has downgraded Cubic Corporation's and Atlas CC Acquisition Corp's Long-Term Issuer Default Ratings (IDRs) to 'CCC-' from 'B-' and placed them on Rating Watch Negative (RWN). These actions follow the company's announced exchange transaction, where its credit facilities (revolver and term loans) will be exchanged into superpriority first-out, second-out, and third-out facilities. Fitch views this transaction as a distressed debt exchange (DDE) under its "Corporate Rating Criteria." Additionally, Fitch has downgraded Atlas's legacy senior secured instruments to 'CCC+' with a Recovery Rating of 'RR2' from 'B+'/'RR2'. According to Fitch criteria, Fitch typically downgrades a company's IDR to 'C' once investors agree to a DDE and set an exchange date. The IDR remains at 'C' until execution when Fitch downgrades it to 'RD' or, depending on the exchange timeline, the IDR may be downgraded directly to 'RD' upon execution and are then re-rated to reflect the post-DDE credit profile. Key Rating Drivers Exchange Alleviates Liquidity and Refinancing Risks: The announced exchange transaction, which includes a $170 million cash equity injection from the sponsor and the exchange of first-lien credit facilities into a new superpriority structure, is expected to enhance Cubic's liquidity position and extend all major debt maturities to May 2029 (springing to May 2028 under certain conditions). Upon completion, the transaction will provide over $275 million in new liquidity at closing and reduce annual cash interest by $66 million, supporting operational flexibility. The transaction is also estimated to result in a $300 million reduction in Fitch-calculated gross debt. Fitch expects that following transaction completion, Cubic's cash flow profile will improve due to lower cash interest and amortization. While free cash flow is expected to remain pressured in the near term, projected liquidity is expected to remain adequate, with pro forma cash of about $54 million and revolver availability of $138 million post-transaction. Cubic's ability to improve free cash flow generation will be a key consideration for the post-DDE rating. De-Risking Hinges on Execution: The ratings reflect Fitch's expectation that Cubic's largest transportation systems (CTS) programs surpass the development phase and enter the O&M stage in the next several quarters. Modest incremental contributions are expected from recent and future contract wins in CTS and Cubic's defense segment, alongside incremental cost savings from restructuring and footprint rationalization efforts. Fitch expects improvement to come from revenue growth, margin improvement, and debt reduction in fiscal 2026 as FCF turns positive. Revenue Visibility: Cubic has moderate revenue visibility, which Fitch believes supports its rating. Many of its transportation and defense contracts are multi-year and sole-sourced, with less than 5% of variable revenue based on transportation traffic volume. This provides stability to the company's business profile, while certain indefinite delivery, indefinite quantity contracts can lead to additional upside. Innovative and Diversified Portfolio: Cubic has a diversified and complex product portfolio, which supports its credit profile. The company innovates through R&D to provide unique offerings backed by intellectual property. In some cases, Cubic partners with customers to become embedded in the decision loop and better meet customers' objectives. Additionally, a high percentage of the company's portfolio comprises sole-sourced contracts lasting several years, which creates an inherent barrier to entry for potential competitors. Demand Tailwinds: Fitch believes several factors could contribute to top-line growth above its forecasts. Cubic's CTS segment should benefit from the macro trend of urbanization and the increased use and scope of mass transit. Further digitization of those systems, coupled with the implementation of Internet of Things technologies and support from infrastructure spending at state and federal levels, will benefit Cubic. Cubic's defense portfolio should capture increased spending on data-driven training and communication platforms. Supply Chain Challenges: Cubic experienced supply-chain challenges in 2022 delayed project execution and cash outflows related to working capital. Overall conditions have stabilized since late 2022, limiting further disruption risks. Cubic is not expected to return to normal cash flow dynamics until fiscal 2027. Fitch forecasts working capital, excluding joint ventures and VIEs, will be a source of cash over the next two fiscal years. However, 2027 and beyond will likely depend on potential new contract award wins and the product versus service mix of revenue. Peer Analysis Cubic's current credit metrics are considerably weaker compared to peers in the 'B' rating category within the aerospace and defense sector and more in-line with Peraton Inc. (CCC+/Negative). Fitch projects Cubic's cash flow and profitability could align with higher-rated companies if it successfully transitions major transportation contracts to the O&M phase and executes on its planned cost saving measures. Cubic's product portfolio is strong and well-diversified by contract and customer, with a high degree of revenue visibility and long-dated contracts. These factors partially offset the company's weaker leverage. Key Assumptions - Cubic completes a DDE in line with current expectations. This includes a large liquidity injection at the time of close and debt service savings over the next few years; - In fiscal years 2025 and 2026, revenue grows 8% to 10% annually as major CTS programs transition to O&M, along with modest contributions from recent wins; - EBITDA margins improve to around 10% in fiscal 2025 and reach the high-teen percentages in fiscal 2026 as the company continues to execute additional run-rate cost reductions; - Capex spending of 2.0% to 2.5% of revenues over the forecast period; - FCF of negative $25 million-$75 million in fiscal 2025 before turning positive in fiscal 2026; - Preferred shares are not considered debt; - Term loan C is backed by segregated cash collateral and is excluded from Fitch's leverage calculations; - Non-recourse debt obligations related to JVs and VIEs are included in Fitch's calculations for debt and leverage. Recovery Analysis The recovery analysis assumes that Cubic would be considered a going concern in a hypothetical bankruptcy and the company would be reorganized rather than liquidated. A 10% administrative claim is assumed in the recovery analysis. Fitch assumes that Cubic will receive a going-concern recovery multiple of 7.0x EBITDA in this scenario. This multiple is toward the upper range of recovery multiples assigned to companies in the aerospace and defense sector. Fitch's recovery assumptions are based on Cubic's moderate and improving cash flow and margins, long-dated and highly visible contracts, along with strong intellectual property and technology portfolio. Fitch also considered the company's contract diversification in determining a higher recovery multiple. Fitch's going-concern EBITDA assumption envisions a downside scenario where bankruptcy results from significantly low contract renewal rates coupled with modest contract losses due to reputational damage or heightened competition. Fitch's bankruptcy case includes a scenario in which the company may fail to recover lost EBITDA through new contract awards upon emergence. Fitch's recovery assumptions account for more than 90% of enterprise value from subsidiaries guaranteeing the first lien debt. Fitch's analysis allocates this value on a priority basis to the first lien holders, with the remaining amount distributed on a pro rata basis to the first and second lien debt holders. Most of defaulters in the aerospace and defense sector analyzed by Fitch in recent bankruptcy case studies were significantly smaller in scale, had less diversified product lines or customer bases and operated with highly leveraged capital structures. In its recovery analyses, Fitch assumes a fully drawn first-lien revolver, as credit revolvers are typically utilized when companies are under distress. The current, pre-exchange first-lien revolver and term loan B are evaluated based on Fitch's recovery analysis under a going-concern scenario, resulting in a corresponding 'CCC+' rating and a Recovery Rating of 'RR2', which indicates superior recovery prospects. Fitch excluded the current, pre-exchange term loan C from its recovery waterfall analysis, assuming that in a bankruptcy scenario, the cash collateral segregated for this facility would be used to repay its outstanding debt. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Fitch expects to lower the IDR as the situation progresses and the DDE is executed. Following any downgrade to 'RD', the IDR will be reassessed based on the final capital structure; - Payment default occurs. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Positive rating action is not expected to occur until after the IDR is downgraded to 'RD' when the DDE is executed. Liquidity and Debt Structure As of March 31, 2025, Cubic had about $40 million of unrestricted cash on the balance sheet and $155 million of borrowings outstanding under the existing $225 million RCF. Post-transaction, Fitch expects cash of about $54 million and revolver availability of $138 million. Fitch does not treat Cubic's current, pre-exchange term loan C as debt as it is collateralized on a one-to-one basis by cash held in a restricted account. These funds are used solely to cash collateralize the term loan C and associated letters of credit and are not accessible to Cubic for other purposes. Issuer Profile Cubic Corporation is a technology driven, market leading provider of integrated solutions that increase situational awareness for transportation, defense C4ISR and training customers worldwide to decrease urban congestion and improve the militaries' effectiveness and operational readiness. Summary of Financial Adjustments Fitch considers current, pre-exchange cash related to VIEs and cash segregated as collateral for letters of credit to be restricted. This includes the current, pre-exchange $300 million tied to Term loan C, which is not included in its debt calculation. 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 ----------- ------ -------- ----- Atlas CC Acquisition Corp. LT IDR CCC- Downgrade B- senior secured LT CCC+ Downgrade RR2 B+ Cubic Corporation LT IDR CCC- Downgrade B- AUSTIN WATERJET: Gets Interim OK to Use Cash Collateral ------------------------------------------------------- Austin Waterjet, Inc. received interim approval from the U.S. Bankruptcy Court for the Western District of Texas, Austin Division, to use cash collateral. The Debtor intends to use the cash collateral to fund payroll, purchase materials, and cover operational expenses to maintain its business operations and generate revenue. As protection for the Debtor's use of its cash collateral, Comerica Bank will be granted an automatic perfected first-priority replacement lien on all property of the Debtor including cash collateral; and superpriority administrative claims with priority over all other administrative costs and expenses. In addition, Comerica Bank will receive monthly payments of $10,000 from July to October. Unless extended, the Debtor's authority to use cash collateral terminates on August 15, the confirmation of a Chapter 11 plan, or upon occurrence of so-called termination events, whichever comes first. Termination events include violation by the Debtor of the interim order; vacating or modifying the order; an event of default; dismissal of its Chapter 11 case; and termination of the automatic stay for any creditor other than lender asserting a lien on the collateral. A final hearing is set for July 31. The deadline for filing objections is on July 24. The Debtor entered into a loan agreement with Comerica Bank on August 25, 2021, in the original principal amount of $2.934 million. As of July 1, approximately $2.33 million remains outstanding. This debt is secured by a blanket lien on substantially all of the Debtor's personal property, including accounts receivable, inventory, equipment, software, general intangibles, investment property, and deposit accounts. Comerica perfected its lien by filing UCC-1 financing statements and maintaining control of the Debtor's deposit accounts. About Austin Waterjet Inc. Austin Waterjet, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-11027) on July 2, 2025, listing up to $1 million in assets and up to $10 million in liabilities. David Squires, vice president and secretary of Austin Waterjet, signed the petition. Judge Shad Robinson oversees the case. Jacob J. King, Esq., at Munsch Hardt Kopf & Harr, PC, is the Debtor's legal counsel. Comerica Bank, as secured creditor, is represented by: Annmarie Chiarello, Esq. Winstead PC 500 Winstead Building 2728 N. Harwood Street Dallas, TX 75201 Telephone: (214) 745-5400 Facsimile: (214) 745-5390 achiarello@winstead.com AVDHESH MANAGEMENT: Seeks Subchapter V Bankruptcy in New York ------------------------------------------------------------- On July 11, 2025, Avdhesh Management Portland Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of New York. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Avdhesh Management Portland Inc. Avdhesh Management Portland Inc. is a restaurant operator in the food service industry based in Rochester, New York. Avdhesh Management Portland Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D.N.Y. Case No. 25-20519) on July 11, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $500,000 and $1 million. The Debtors are represented by David H. Ealy, Esq. at Cristo Law Group Llc D/b/a Trevett Cristo. AWS HOSPITALITY: Ira Bodenstein Named Subchapter V Trustee ---------------------------------------------------------- The U.S. Trustee for Region 11 appointed Ira Bodenstein as Subchapter V trustee for AWS Hospitality Group Inc. Mr. Bodenstein will be paid an hourly fee of $500 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Bodenstein declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. About AWS Hospitality Group Inc. AWS Hospitality Group Inc., operates S2 Express Grill, is a restaurant chain offering comfort food and globally inspired dishes through casual and bar-and-grill formats. Founded in 2019, the business evolved from a nightlife venue in Calumet Park, Illinois, and now operates multiple locations across the Chicago metropolitan area, including Richton Park, Orland Park, and downtown Chicago. The Company focuses on underserved communities, aiming to revitalize neighborhoods while creating local employment opportunities. AWS Hospitality Group sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-09341) on June 19, 2025. In its petition, the Debtor reports estimated assets between $50,000 and $100,000 and estimated liabilities between $1 million and $10 million. Judge Michael B. Slade handles the case. The Debtor is represented by Scott R. Clar, Esq., at Crane, Simon, Clar & Goodman. BALKAN EXPRESS: Truck Terminal Sale to CanTex for $4MM OK'd ----------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, has approved Balkan Express LLC and its affiliate, Balkan Logistics, LLC, to sell Property, free and clear of liens, claims, and encumbrances. The Debtors provide trucking, hauling, and logistics services principally in Texas and the Western region of the United States. The Debtors operate their business from a central truck terminal and office space located at 2560 E Long Ave, Fort Worth, Texas 76137 (Truck Terminal). The Truck Terminal serves as the corporate headquarters for the Debtors' operations, and also provides a service and operational hub for a portion of the Debtors' trucking fleet. The Court ordered that the Debtors are authorized, but not directed, to enter into the Truck Terminal Sale Agreement and consummate the Sale Transaction with CanTex Re Holdings LLC as a Stalking Horse Bidder, in the amount of $4,000,000. The Debtors are authorized, but not directed, to enter into a definitive lease agreement consistent with the terms specified in the Truck Terminal Sale Agreement and consummate the Leaseback Transaction. The Overbid Requirements set forth below are hereby approved: a. Timing. Each Overbid must be submitted no later than July 18, 2025. b. Purchase Price. Each Overbid must clearly identify the purchase price to be paid and specify the aggregate amount of cash and other consideration being offered. c. Deposit: Each Overbid must include delivery of a cash deposit to the client trust account of Debtors' counsel in an amount equal to the Stalking Horse Protections plus 15% of the Potential Bidder's proposed purchase price. d. Unconditional Offer / Contingencies. A statement that the Overbid is formal, binding, and unconditional, is not subject to any further due diligence or financing contingency, and is irrevocable until the Debtors notify the Potential Bidder that such Bid is not a Successful Bid or a BackUp Bid, or until the first business day after the closing of the Sale Transaction. e. Proof of Financial Ability to Perform. Each Overbid must contain such financial and other information that allows the Debtors to make a reasonable determination as to the Potential Bidder's financial and other capabilities to consummate the Sale Transaction including, without limitation, ability to post replacement letters of credit, as applicable. Without limiting the foregoing, such information must include current financial statements or similar financial information certified to be true and correct as of the date thereof, proof of financing commitments if needed to consummate the transaction (not subject to, in the Debtors' reasonable business judgment, any unreasonable conditions), contact information for verification of such information, including any financing sources, and any other information reasonably requested by the Debtors. f. Required Approvals. Each Overbid must contain a statement or evidence (i) that the Potential Bidder has not conditioned its Overbid on (a) obtaining financing, (b) any internal approval, (c) the outcome or review of unperformed due diligence, or (d) regulatory contingencies. The Court has determined that the procedures and requirements set forth in the Overbid Requirements are fair, reasonable and appropriate, and are designed to maximize recoveries for the benefit of the Debtors' estates, creditors, and all parties in interest. In the event an Overbid is received and closed on by a party other than the Stalking Horse Bidder, the Stalking Horse Bidder shall be entitled to a break-up fee in the amount of 5% of the purchase price. The Debtors are authorized to take all reasonable actions necessary or appropriate to implement the provisions of the Order in accordance with the terms of this Order and the Overbid Requirements. The Stalking Horse Bidder is entitled to all of the protections afforded under section 363(m) of the Bankruptcy Code, including in the event this Order or any portion thereof is reversed or modified on appeal. Any liens against the Truck Terminal shall attach to and be automatically perfected as to the proceeds from the sale. The Court further ordered that the Debtors are authorized to take all actions necessary or appropriate to carry out the relief granted in the Order. About Balkan Express, LLC Balkan Express LLC is a transportation and logistics company based in Fort Worth, Texas, offering full truckload and less-than-truckload freight services across the 48 contiguous U.S. states. The Company operates a fleet of over 150 trucks and 250 trailers and offers 24/7 dispatch support with GPS tracking. Balkan Express LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-41544) on April 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million. The Debtor is represented by Joshua N. Eppich, Esq. at BONDS ELLIS EPPICH SCHAFER JONES LLP. BASIC WHOLESALE: Deborah Fish Named Subchapter V Trustee -------------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed Deborah Fish, Esq., managing partner at Allard & Fish, P.C., as Subchapter V trustee for Basic Wholesale Floral Distributors, LLC. Ms. Fish will be paid an hourly fee of $400 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Fish declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Deborah L. Fish, Esq. Allard & Fish, P.C. 1001 Woodward Ave., Ste. 850 Detroit, MI 48226 Phone: (313) 961-6141 Email: dfish@allardfishpc.com About Basic Wholesale Floral Basic Wholesale Floral Distributors, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-46352) on June 22, 2025, with up to $50,000 in assets and between $500,001 and $1 million in liabilities. Judge Mark A. Randon presides over the case. Kurt Thornbladh, Esq., at Thornbladh Legal Group, PLLC represents the Debtor as bankruptcy counsel. BEL TEMPO: Hires Dennis L. Winans as Financial Consultant --------------------------------------------------------- Bel Tempo LLC seeks approval from the U.S. Bankruptcy Court for the District of Arizona to employ Dennis L. Winans, CPA, as a financial consultant and expert witness. Mr. Winans will provide these services: a. analyze and review the Debtor's financials, schedules, and statement of financial affairs; b. prepare expert report related to Debtor's use of cash collateral; c. provide expertise in reorganization planning and structure; and d. provide expert testimony for potential contested confirmation. Mr. Winans will be paid at the rate of $350 per hour, and a retainer of 10,000. Mr. Winans will also be reimbursed for reasonable out-of-pocket expenses incurred. As disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Dennis L. Winans, CPA 10908 E. Monument Estates Circle Tucson, AZ 85748 Tel: (520) 907-2889 Email: dwinans3@cox.net About Bel Tempo LLC Bel Tempo LLC is a real estate holding company whose principal asset is a commercial property located at 5701 South 12th Avenue in Tucson, Arizona. Bel Tempo LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-06002) on June 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtors are represented by John C. Smith, Esq. at RUSING, LOPEZ & LIZARDI, PLLC. BEL TEMPO: Seeks to Hire Rusing Lopez & Lizardi as Attorney ----------------------------------------------------------- Bel Tempo LLC seeks approval from the U.S. Bankruptcy Court for the District of Arizona to employ Rusing, Lopez & Lizardi, PLLC as attorneys. The firm will render these services: a. advise with respect to the powers and duties of the Debtor; b. represent the Debtor in connection with all appearances; c. prepare on behalf of the Debtor of necessary applications, motions, answers, objections, orders, reports, and other documents; d. prepare a plan and disclosure statement and handling all matters and court hearings related thereto; e. represent the Debtor in discussions with the United States Trustee's office; f. represent the Debtor in connection with negotiations involving creditors, parties-in-interest, and possible purchasers; and g. provide all other legal services for the Debtor which may be necessary. John C. Smith, Esq., the Rusing Lopez & Lizardi attorney primarily responsible for this matter will bill at an hourly rate of $600, the firm's hourly billing rates for paralegals currently range from $275 to $300. Rusing Lopez & Lizardi received a retainer in the amount of $100,000. Rusing Lopez & Lizardi does not hold or represent an interest adverse to the Debtor's estate and is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to the court filings. The firm can be reached at: John C. Smith, Esq. Rusing Lopez & Lizardi, PLLC 6363 N Swan Rd #151 Tucson, AZ 85718 Phone: (520) 792-4800 About Bel Tempo LLC Bel Tempo LLC is a real estate holding company whose principal asset is a commercial property located at 5701 South 12th Avenue in Tucson, Arizona. Bel Tempo LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-06002) on June 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtors are represented by John C. Smith, Esq. at RUSING, LOPEZ & LIZARDI, PLLC. BEYOND AIR: Stockholders Approve Reverse Stock Split Up to 1-for-50 ------------------------------------------------------------------- Beyond Air, Inc. held a special meeting of stockholders to consider matters related to its Reverse Stock Split Proposal. On April 23, 2025, the record date for stockholders entitled to notice of, and to vote at, the Special Meeting, 86,369,869 shares of the Company's common stock were outstanding. The holders of 48,476,717 shares of Common Stock were present at the Special Meeting, either in person or represented by proxy, constituting a quorum. Proposal 1. Reverse Stock Split Proposal The Company's stockholders granted the board of directors authority, in its sole discretion, prior to the one-year anniversary of the Special Meeting, to effect a reverse stock split of the outstanding shares of the Company's Common Stock, at a reverse split ratio of between 1-for-10 and 1-for-50 as determined by the Board, whereby every 10 to 50 shares of the authorized, issued and outstanding Common Stock shall be combined into one share of authorized, issued and outstanding Common Stock. The voting results were as follows: * For: 41,924,612 * Against: 6,382,862 * Abstain: 169,243 * Broker Non-Vote: 0 The Reverse Stock Split proposal was approved by the Company's stockholders. The results reported above are final voting results. No other matters were considered or voted upon at the meeting, except a proposal to adjourn the Special Meeting of Stockholders to a later date, if necessary, to permit further solicitation and vote proxies in the event there were not sufficient votes in favor of the Reverse Stock Split Proposal. Based upon the voting results, the latter was not applicable. About Beyond Air Headquartered in Garden City, N.Y., Beyond Air, Inc. -- www.beyondair.net -- is a commercial-stage medical device and biopharmaceutical company developing a platform of nitric oxide generators and delivery systems (the "LungFit platform") capable of generating NO from ambient air. The Company's first device, LungFit PH, received premarket approval from the FDA in June 2022. The NO generated by the LungFit PH system is indicated to improve oxygenation and reduce the need for extracorporeal membrane oxygenation in term and near term (34 weeks gestation) neonates with hypoxic respiratory failure associated with clinical or echocardiographic evidence of pulmonary hypertension in conjunction with ventilatory support and other appropriate agents. East Hanover, New Jersey-based Marcum LLP, the Company's auditor since 2019, issued a "going concern" qualification in its report dated June 24, 2024, citing that the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of December 31, 2024, Beyond Air had $34.1 million in total assets, $15.8 million in total liabilities, and $18.4 million in total equity. BIEN-AIME CONFIANCE: Seeks Chapter 11 Bankruptcy in Florida ----------------------------------------------------------- On July 11, 2025, Bien-Aime Confiance LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Middle District of Florida. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Bien-Aime Confiance LLC Bien-Aime Confiance LLC is a single asset real estate company operating in the Isleworth Country Club community of Windermere, Florida. Bien-Aime Confiance LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04315) on July 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Grace E. Robson handles the case. The Debtors are represented by Jeffrey Ainsworth, Esq. and Robert B. Branson,Esq. at Bransonlaw PLLC. BIG STORM BREWERY: Gets Extension to Access Cash Collateral ----------------------------------------------------------- Big Storm Brewery, LLC received another extension from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division to use cash collateral. The second interim order signed by Judge Roberta Colton on July 10 authorized the Debtor to use cash collateral to pay the amounts expressly authorized by the court, including payments to the U.S. trustee for quarterly fees; the expenses set forth in the budget, plus an amount not to exceed 10% for each line item; and additional amounts subject to approval by secured creditors, including Briar Capital Real Estate Fund, LLC, the U.S. Small Business Administration, and The Center for Special Needs Trust Administration, Inc. This authorization will continue until further order of the court. Each creditor with a security interest in cash collateral will have a perfected post-petition lien on the cash collateral to the same extent and with the same validity and priority as its pre-bankruptcy lien. As further protection, the Debtor was ordered to keep its property insured in accordance with its loan agreements with the secured creditors. The next hearing is scheduled for July 24. Briar, a secured creditor, claims a lien on the real property located in N. Clearwater, Fla., while SBA asserts a security interest in the Debtor's assets. Meanwhile, the Center for Special Needs Trust Administration, through its Chapter 11 trustee, has a final judgment entered against the Debtor's affiliate in the amount of $8,943,755.08. The judgment arose from proceedings supplementary filed by the bankruptcy trustee. As of the petition date, the Debtor had $97,429.79 in its bank account. Briar is represented by: Zachary J. Bancroft, Esq. Baker, Donelson, Bearman, Caldwell & Berkowitz, PC 200 South Orange Avenue, Suite 2050 Orlando, FL 32801 Telephone: (407) 422-6600 zbancroft@bakerdonelson.com achentnik@bakerdonelson.com bkcts@bakerdonelson.com About Big Storm Brewery Big Storm Brewery, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04026) on June 16, 2025, listing up to $50,000 in assets and between $1 million and $10 million in liabilities. Judge Roberta A. Colton oversees the case. Jake C. Blanchard, Esq., at Blanchard Law, P.A. is the Debtor's bankruptcy counsel. BIOLARGO INC: All Proposals OK'd at 2025 Annual Meeting ------------------------------------------------------- BioLargo, Inc. held its 2025 annual stockholder meeting. The following proposals were each submitted to a vote of stockholders through the solicitation of proxies or otherwise: 1. A proposal to elect the following seven individuals to the Company's Board of Directors: Dennis P. Calvert, Kenneth R. Code, Dennis E. Marshall, Joseph L. Provenzano, Jack B. Strommen, Linda Park, and Christina Bray; 2. A proposal to approve, on an advisory basis, the compensation of the Company's named executive officers; 3. A proposal to ratify the appointment of Hacker Johnson & Smith PA as the Company's independent registered public accounting firm for the year ending December 31, 2025; and 4. A proposal to grant our Board of Directors the authority and discretion to effect a reverse stock split of our common stock by a ratio of not less than 1-for-4 and not more than 1-for-10 by amending our Certificate of Incorporation; whether to implement a reverse split, and the timing of such reverse split, to be determined in the discretion of our Board of Directors. A quorum was present in person or by proxy. There were no director nominees other than as set forth. Each director was elected to the Company's Board of Directors, and each of proposals 2, 3 and 4 were approved, in accordance with Delaware law and the Company's bylaws. The final voting results are as follows: Proposal One: 1. Dennis P. Calvert * Votes For: 112,898,532 * Votes Withheld: 5,589,318 * Broker Non-Vote: 71,345,958 2. Kenneth R. Code * Votes For: 114,744,543 * Votes Withheld: 3,743,307 * Broker Non-Vote: 71,345,958 3. Dennis E. Marshall * Votes For: 115,118,223 * Votes Withheld: 3,369,627 * Broker Non-Vote: 71,345,958 4. Joseph L. Provenzano * Votes For: 115,476,242 * Votes Withheld: 3,011,608 * Broker Non-Vote: 71,345,958 5. Jack B. Strommen * Votes For: 115,507,522 * Votes Withheld: 2,980,328 * Broker Non-Vote: 71,345,958 6. Linda Park * Votes For: 115,427,722 * Votes Withheld: 3,060,128 * Broker Non-Vote: 71,345,958 7. Christina Bray * Votes For: 115,427,722 * Votes Withheld: 3,060,128 * Broker Non-Vote: 71,345,958 Proposals 2 - 3: Proposal 2 - (Exec Comp) * Votes For: 103,880,414 * Votes Against: 7,883,192 * Votes to Abstain: 6,719,295 * Broker Non-Vote: 71,345,958 * Percentage For: 54.7% Proposal 3 - (Auditors) * Votes For: 188,425,819 * Votes Against: 988,124 * Votes to Abstain: 419,864 * Broker Non-Vote: – * Percentage For: 99.3% Proposal – 4 (reverse split) * Votes For: 156,326,053 * Votes Against: 29,794,797 * Votes to Abstain: 3,708,006 * Broker Non-Vote: – * Percentage For: 51.8% Under Delaware law and the company's bylaws, the percentage "for" proposals 2 and 3 are based on the votes present at the meeting in person or by proxy (189,833,808). The percentage "for" proposal 4 (the reverse stock split) are based on the total issued and outstanding shares as of the record date (301,775,373). For the proposals to approve, on an advisory basis, the compensation of the Company's named executive officers, prior year final votes are as follows: Year: 2020: * Votes For: 72,180,828 * Votes Against: 2,950,599 * Votes to Abstain: 1,752,675 * Broker Non-Vote: 47,142,003 2021: * Votes For: 87,066,389 * Votes Against: 3,646,737 * Votes to Abstain: 2,462,756 * Broker Non-Vote: 43,453,003 2022: * Votes For: 84,305,241 * Votes Against: 9,841,157 * Votes to Abstain: 2,175,747 * Broker Non-Vote: 57,328,090 2023: * Votes For: 76,470,107 * Votes Against: 5,477,240 * Votes to Abstain: 2,816,330 * Broker Non-Vote: 74,462,248 2024: * Votes For: 94,165,357 * Votes Against: 3,453,224 * Votes to Abstain: 885,913 * Broker Non-Vote: 75,196,191 About BioLargo Inc. Headquartered in Westminster, Calif., BioLargo, Inc. -- www.BioLargo.com -- is a cleantech and life sciences innovator and engineering services solution provider. The Company's core products address PFAS contamination, achieve advanced water and wastewater treatment, control odor and VOCs, improve air quality, enable energy-efficiency and safe on-site energy storage, and control infections and infectious disease. Its approach is to invent or acquire novel technologies, develop them into product offerings, and extend their commercial reach through licensing and channel partnerships to maximize their impact. In its report dated March 31, 2025, the Company's auditor Hacker, Johnson & Smith PA, issued a "going concern" qualification citing that the Company has suffered recurring losses from operations, has negative cash flow from operations and has a significant accumulated deficit. These matters raise substantial doubt about the Company's ability to continue as a going concern. BLACKBERRY LIMITED: Key Proposals OK'd at 2025 Meeting ------------------------------------------------------ BlackBerry Limited held its Annual and Special Meeting of Shareholders. There were 363,366,813 shares of common stock represented at the Meeting. At the Meeting, the Company's shareholders voted as follows on these matters: A. Election of Directors. All seven of the directors named in the management proxy circular were elected to serve as directors of the Company, to hold office in each case until the next annual meeting of shareholders or until his or her successor is duly elected or appointed, based upon the following votes: 1. Lisa Bahash * For: 282,771,497 * Withheld: 3,958,571 * Broker Non-Votes: 76,636,745 2. Philip Brace * For: 280,461,668 * Withheld: 6,268,400 * Broker Non-Votes: 76,636,745 3. Lisa Disbrow * For: 273,335,782 * Withheld: 13,394,286 * Broker Non-Votes: 76,636,745 4. John J. Giamatteo * For: 273,552,579 * Withheld: 13,177,488 * Broker Non-Votes: 76,636,746 5. Richard Lynch * For: 233,869,866 * Withheld: 52,860,202 * Broker Non-Votes: 76,636,745 6. Lori O'Neill * For: 282,808,166 * Withheld: 3,921,902 * Broker Non-Votes: 76,636,745 7. Wayne Wouters * For: 273,256,600 * Withheld: 13,473,470 * Broker Non-Votes: 76,636,743 B. Re-appointment of Independent Auditors. The re-appointment of PricewaterhouseCoopers LLP as the independent auditors of the Company as described in the management proxy circular was approved, based upon the following votes: * For: 356,860,193 * Withheld: 6,506,618 * Broker Non-Votes: 2 C. Approval of Unallocated Entitlements under the Equity Incentive Plan. The resolution on unallocated entitlements under the Company's Equity Incentive Plan as described in the management proxy circular was approved, based upon the following votes: * For: 264,168,023 * Against: 21,509,699 * Abstain: 1,052,340 * Broker Non-Votes: 76,636,751 D. Advisory Vote on Executive Compensation. The advisory resolution on executive compensation as described in the management proxy circular was approved, based on the following votes: * For: 230,947,782 * Against: 54,745,245 * Abstain: 1,037,037 * Broker Non-Votes: 76,636,749 E. Shareholder Proposal. The resolution on a shareholder proposal seeking to amend By-Law No. A3 of the Company was rejected, based upon the following votes: * For: 18,071,523 * Against: 266,550,111 * Abstain: 2,108,431 * Broker Non-Votes: 76,636,748 About BlackBerry Headquartered in Waterloo, Canada, BlackBerry Limited provides intelligent security software solutions. Egan-Jones Ratings Company on May 30, 2025, maintained its 'CCC' foreign currency and local currency senior unsecured ratings on debt issued by BlackBerry Limited. BLUE STAR: FY24 Net Loss Widens to $12.5M from $4.5M in FY23 ------------------------------------------------------------ Blue Star Foods Corp. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $12,478,487 on $3,593,881 of net revenue for the year ended December 31, 2024, compared to a net loss of $4,471,612 on $6,124,529 of net revenue for the year ended December 31, 2023. The Company has an accumulated deficit of $46,289,219 and working capital deficit of $411,225. As of December 31, 2024, the Company had $2,554,599 in total assets, $2,746,296 in total liabilities, and total stockholders' equity of -$191,697. Houston, Texas-based MaloneBailey, LLP, the Company's auditor since 2014, issued a "going concern" qualification in its report dated June 20, 2025, attached to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon the Company's ability to increase revenues, execute on its business plan to acquire complimentary companies, raise capital, and to continue to sustain adequate working capital to finance its operations. The failure to achieve the necessary levels of profitability and cash flows would be detrimental to the Company. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/asewupax About Blue Star Foods Corp. Blue Star Foods Corp., headquartered in Miami, Florida, is an international seafood company that imports, packages, and sells refrigerated pasteurized crab meat and other premium seafood products. The Company's current source of revenue is from importing blue and red swimming crab meat primarily from Indonesia, the Philippines, and China, and distributing it in the United States and Canada under several brand names such as Blue Star, Oceanica, Pacifika, Crab & Go, First Choice, Good Stuff, and Coastal Pride Fresh. The Company also distributes steelhead salmon and rainbow trout fingerlings produced under the brand name Little Cedar Farms for distribution in Canada. The Company sells primarily to food service distributors, wholesalers, retail establishments, and seafood distributors. BOXLIGHT CORP: CFO Greg Wiggins Steps Down Effective July 18 ------------------------------------------------------------ Boxlight Corporation disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that Chief Financial Officer Greg Wiggins, provided notice of his decision to resign from the Company to pursue another opportunity. Mr. Wiggins's resignation did not result from a disagreement with the Company on any matter relating to the Company's operations, policies or practices. Mr. Wiggins's resignation will be effective as of July 18, 2025, and he will continue to serve in his role through that date. About Boxlight Corporation Boxlight Corporation, based in Duluth, Georgia, is a technology company that develops, sells, and services interactive solutions primarily for the global education market, as well as for corporate and government sectors. The Company offers a range of products, including interactive and non-interactive flat-panel displays, LED video walls, media players, classroom audio systems, cameras, and STEM solutions like 3D printing and robotics. These products are integrated into a classroom software suite for learning, assessment, and collaboration. Boxlight also provides professional training services to U.S. educational customers. In its report dated Mar. 28, 2025, the Company's auditor, Forvis Mazars, LLP, issued a "going concern" qualification, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, highlighting that the Company has identified certain conditions relating to its outstanding debt and Series B and C Preferred Stock that are outside the control of the Company. In addition, the Company has generated recent losses. These factors, among others, raise substantial doubt regarding the Company's ability to continue as a going concern. For the years ended Dec. 31, 2024 and 2023, Boxlight Corporation incurred net losses attributable to common stockholders of $29.6 million and $40.4 million, respectively. As of Dec. 31, 2024, Boxlight Corporation had $115.31 million in total assets, $99.69 million in total liabilities, $28.51 million in total mezzanine equity, and a total stockholders' deficit of $12.90 million. BOXLIGHT CORP: Director Elliott Resigns to Aid Nasdaq Compliance ---------------------------------------------------------------- Boxlight Corporation disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that James Mark Elliott, 72, resigned as a non-executive director, in an effort to help the Company begin to address its non-compliance with Nasdaq Rule 5605(b)(1), which requires that a majority of the Board of Directors of the Company be comprised of independent directors as defined in Nasdaq listing standards. Accordingly, Mr. Elliott's resignation did not result from a disagreement with the Company on any matter relating to the Company's operations, policies or practices. The Company currently intends to retain Mr. Elliott as an advisor to the Board and re-elect Mr. Elliott as a board member once the Company has regained compliance with the Nasdaq listing standards regarding independent directors. About Boxlight Corporation Boxlight Corporation, based in Duluth, Georgia, is a technology company that develops, sells, and services interactive solutions primarily for the global education market, as well as for corporate and government sectors. The Company offers a range of products, including interactive and non-interactive flat-panel displays, LED video walls, media players, classroom audio systems, cameras, and STEM solutions like 3D printing and robotics. These products are integrated into a classroom software suite for learning, assessment, and collaboration. Boxlight also provides professional training services to U.S. educational customers. In its report dated Mar. 28, 2025, the Company's auditor, Forvis Mazars, LLP, issued a "going concern" qualification, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, highlighting that the Company has identified certain conditions relating to its outstanding debt and Series B and C Preferred Stock that are outside the control of the Company. In addition, the Company has generated recent losses. These factors, among others, raise substantial doubt regarding the Company's ability to continue as a going concern. For the years ended Dec. 31, 2024 and 2023, Boxlight Corporation incurred net losses attributable to common stockholders of $29.6 million and $40.4 million, respectively. As of Dec. 31, 2024, Boxlight Corporation had $115.31 million in total assets, $99.69 million in total liabilities, $28.51 million in total mezzanine equity, and a total stockholders' deficit of $12.90 million. BRITTANY'S VILLA: Seeks Chapter 11 Bankruptcy in New York --------------------------------------------------------- On July 11, 2025, Brittany's Villa Corp. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of New York. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Brittany's Villa Corp. Brittany's Villa Corp. is a real estate company. Brittany's Villa Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-43321) on July 11, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Elizabeth S. Stong handles the case. BURFORD CAPITAL: Moody's Rates New $400MM Unsecured Notes 'Ba1' --------------------------------------------------------------- Moody's Ratings has assigned a Ba1 rating to Burford Capital Global Finance LLC's proposed $400 million backed senior unsecured notes due in 2033. The transaction has no effect on Burford Capital Limited's (Burford) Ba1 corporate family rating or the existing Ba1 backed long-term senior unsecured ratings of subsidiaries Burford Capital Finance LLC, Burford Capital PLC and Burford Capital Global Finance LLC. The outlook for Burford and its subsidiaries is stable. RATINGS RATIONALE The Ba1 rating on the backed senior unsecured notes issued by Burford Capital Global Finance LLC reflects their senior priority in Burford's overall capital structure, which incorporates the unconditional guarantees of ultimate parent Burford and affiliates Burford Capital Finance LLC and Burford Capital PLC on a senior unsecured basis. Burford intends to use the net proceeds to repay the Burford Capital Finance LLC's existing 2025 senior unsecured notes and for general corporate purposes, including the potential future repayment or retirement of Burford Capital PLC's 2026 senior unsecured notes. Burford's Ba1 CFR reflects the company's cumulative record of earnings growth and strong profitability, well managed liquidity position and strong capital position considering the wide-ranging returns and equity-like risk characteristics of the company's legal finance investments. The CFR also considers credit challenges that include the unique risk and return profile of its capital provision assets, including their illiquidity and uncertain valuations; and the irregular timing of its capital deployments and realizations, resulting in higher earnings and cash flow volatility than most specialty finance companies. Burford's outlook is stable based on Moody's expectations for continued strong performance, moderate leverage and effective liquidity management. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Moody's could upgrade Burford's ratings if the company: 1) demonstrates strong management of inherently volatile investment income, including by maintaining a diverse investment portfolio and low investment concentrations; 2) further diversifies funding and liquidity resources while maintaining low leverage, including obtaining an unsecured revolving credit facility; and 3) accumulates a further record of strong earnings and cash flow performance. Moody's could downgrade Burford's ratings if the company: 1) increases risks to earnings and cash flow by increasing investment concentrations or investments in legal matters that pose higher risk of loss; 2) realizes materially weaker returns compared to historical performance; 3) reduces liquidity coverage; or 4) materially increases leverage. The principal methodology used in this rating was Finance Companies published in July 2024. BYJU'S ALPHA: Court Says Founder Failed to Turn Over Docs --------------------------------------------------------- Jessica Rajan of The Economic Times reports that Byju Raveendran, founder of edtech company Byju's, has been found in civil contempt by a U.S. bankruptcy court for failing to comply with orders to turn over documents in the company's ongoing Chapter 11 case. According to the report, the U.S. Bankruptcy Court for the District of Delaware ruled that Raveendran must comply with previously issued limited expedited discovery orders and imposed a $10,000 daily fine for each day he remains in contempt. The court also confirmed it has personal jurisdiction over him, according to an order reviewed by The Economic Times. Limited expedited discovery is a process where parties are required to exchange evidence quickly under court-defined parameters. The judge noted Raveendran had missed all related deadlines, failed to appear in court, and withheld key documents. "I've handled many cases, but I have not seen such a consistent and deliberate refusal to answer basic and relevant questions for more than a year," the judge reportedly stated during the hearing. Raveendran's attorney, J. Michael McNutt of Lazareff Le Bars Eurl, responded that the ruling applies solely to requests made by opposing parties and emphasized that Raveendran contests the court's jurisdiction. "He will respond to the order in due time and reserves all rights," McNutt said. The contempt order adds to the mounting legal and financial troubles facing Byju's. As previously reported by ET, the company has been selling its U.S. assets at significantly reduced prices as it scrambles to repay creditors, according to The Economic Times. In April 2025, lenders filed a lawsuit in the U.S. against Raveendran, his wife Divya Gokulnath, and former executive Anita Kishore, alleging they conspired to hide and misappropriate $533 million from a loan issued to Byju's Alpha, a U.S.-based special-purpose vehicle. Earlier rulings in the case pointed to fraudulent transfers and misuse of funds. The court also found that Riju Ravindran, Raveendran's brother and a director at Byju's Alpha, breached his fiduciary duties. Back in India, the Raveendran brothers have petitioned the National Company Law Tribunal to halt actions by the Committee of Creditors (CoC) for Think & Learn, Byju's parent company, and to remove the CoC-appointed resolution professional. The filing followed the professional's move to withdraw certain legal actions in a New York court, according to report. The resolution professional has also requested that Raveendran be removed from the board of Aakash Institute, in which Think & Learn holds a minority stake. Meanwhile, Glas Trust, representing Byju's U.S. lenders, has filed to prevent Aakash from amending its articles of association, arguing the changes would negatively impact minority shareholders, the report states. About BYJU's Alpha BYJU's Alpha, Inc., designs and develops education software solutions. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 24-10140) on Feb. 1, 2024. In the petition signed by Timothy R. Pohl, chief executive officer, the Debtor disclosed up to $1 billion in assets and up to $10 billion in liabilities. Judge John T. Dorsey oversees the case. Young Conaway Stargatt & Taylor, LLP and Quinn Emanuel Urquhart & Sullivan, LLP serve as the Debtor's legal counsel. GLAS Trust Company LLC, as DIP Agent and Prepetition Agent, is represented in the Debtor's case by Kirkland & Ellis LLP, Pachulski Stang Ziehl & Jones, and Reed Smith. CAMERON THE SANDMAN: Cash Collateral Hearing Set for July 23 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of Michigan is set to hold a hearing on July 23 to consider another extension of Cameron the Sandman Inc.'s authority to use cash collateral. The Debtor's authority to use cash collateral pursuant to the court's July 3 interim order expires on July 15. The interim order authorized the Debtor to use up to $12,770 in cash collateral for the interim period to pay operating expenses, including taxes, payroll and utilities. The interim order granted the Debtor's secured creditors, PNC Bank, N.A. and the U.S. Small Business Administration replacement liens on their collateral. It also approved the monthly payment of $1,000 to PNC Bank, starting July 15. The Debtor's right to use cash collateral ends upon default; dismissal or conversion of the Debtor's Chapter 11 case to one under Chapter 7; appointment of a trustee; or cessation of the Debtor's operations. About Cameron the Sandman Inc. Cameron the Sandman, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-46278-tjt) on June 19, 2025. In the petition signed by Greg Cameron, sole shareholder, the Debtor disclosed up to $50,000 in assets and up to $1 million in liabilities. Judge Thomas J. Tucker oversees the case. George E. Jacobs, Esq., at Bankruptcy Law Offices, is the Debtor's bankruptcy counsel. PNC Bank, National Association, as secured creditor, is represented by: Kelly J. Shefferly, Esq. Plunkett Cooney 38505 Woodward Avenue, Suite 100 Bloomfield Hills, MI 48304 (248) 594-6309 kshefferly@plunkettcooney.com CAMERON THE SANDMAN: Charles Mouranie Named Subchapter V Trustee ---------------------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed Charles Mouranie of CMM & Associates as Subchapter V trustee for Cameron the Sandman, Inc. Mr. Mouranie will be paid an hourly fee of $350 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Mouranie declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Charles M. Mouranie CTP CMM & Associates 43313 Woodward Ave., Ste. 1189 Phone: 248.767.9492 Email: cmouranie@cmmengllc.com About Cameron the Sandman Inc. Cameron the Sandman, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-46278) on June 19, 2025. In the petition signed by Greg Cameron, sole shareholder, the Debtor disclosed up to $50,000 in assets and up to $1 million in liabilities. Judge Thomas J. Tucker oversees the case. George E. Jacobs, Esq., at Bankruptcy Law Offices, is the Debtor's bankruptcy counsel. PNC Bank, National Association, as secured creditor, is represented by: Kelly J. Shefferly, Esq. Plunkett Cooney 38505 Woodward Avenue, Suite 100 Bloomfield Hills, MI 48304 (248) 594-6309 kshefferly@plunkettcooney.com CAPSTONE GREEN: Christopher Close Appointed to Board ---------------------------------------------------- Capstone Green Energy Holdings, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Board of Directors appointed Christopher J. Close to serve as a director of the Company, effective. It is also expected that Mr. Close will be appointed to the Board's Audit Committee. In connection with the appointment of Mr. Close, the Board expanded the size of the Board to seven members. "We are very excited to welcome Chris to the Capstone Board," said Bob Flexon, Chairman of the Board of Directors of Capstone. "His extensive financial expertise and business acumen will bring a valuable perspective to our journey toward financial health with sustainable excellence as we focus on discipline and long-term value creation that will fuel our growth. Chris's experience will help accelerate Capstone's efforts to drive strategic momentum as we enter our next phase of meaningful transformation of the Company." Mr. Close (59) has more than 35 years of experience in financial and business management, with experience serving as Chief Financial Officer and in financial planning and analysis, investor relations, M&A, treasury, accounting, HR and IT, with a particular focus in the energy industry. He has served as President of Close Consulting LLC since September 2017, where he has served in interim CFO roles and provides consulting services to business owners of various companies across various industries, including environmental technology, marina management, sports marketing, private philanthropic investment, hospitality technology, and residential solar. Prior to forming Close Consulting, he served as Chief Financial Officer of Noramco, Inc., a global, multi-site manufacturer of opioids and other drug compounds, from 2016 to 2017. He served as Chief Financial Officer at Preferred Sands, Inc., a multi-site manufacturer and distributor of frac sand, from 2012 to 2016. Mr. Close's career includes experience as an auditor at PricewaterhouseCoopers before progressing into corporate and business unit roles at companies such as ARCO Chemical, Airgas, Exelon Corporation and Constellation Energy. He became a Certified Public Accountant (license inactive) in the State of Pennsylvania and currently holds Federal and State securities licenses (Series 7 & 66) as a registered advisor. Mr. Close holds a Bachelor of Science in Accounting from the University of Delaware, and a Master of Business Administration from Villanova University. "I'm honored to join Capstone's Board at such a pivotal point in the Company's journey," said Chris Close, Capstone's newest Board Member. "Capstone's core values and vision closely align with my own, particularly the focus on financial discipline, operational excellence, and sustainable growth. I look forward to working with the leadership team and my fellow directors to help accelerate the Company's strategic growth and deliver meaningful value for stockholders." "We're pleased to welcome Chris to the Board," added Robert Powelson, Chair of the Governance & Sustainability Committee. "Following a thorough selection process, we identified Chris as a strong fit based on his financial background, operational leadership, and strategic insight. His addition strengthens the Board's capabilities as we work to enhance execution and build a more resilient and focused organization." There are no arrangements or understandings between Mr. Close and any other persons pursuant to which he was named as a director of the Company. He does not have any family relationship with any of the Company's directors or executive officers or any person nominated or chosen by the Company to be a director or executive officer, nor does he have any direct or indirect material interest in any transaction or proposed transaction required to be reported under Item 404(a) of Regulation S-K. Mr. Close will be compensated for his service as director consistent with the compensation of the Company's other non-executive directors. In connection with his appointment, Mr. Close was granted restricted stock units with a value of $2,5000 under the Company's 2023 Equity Incentive Plan, which vest one year from the date of grant. About Capstone Green Energy Capstone Green Energy builds microturbine energy systems and battery storage systems that allow customers to produce power on-site in parallel with the electric grid or stand-alone when no utility grid is available. Capstone Green offers microturbines designed for commercial, oil and gas, and other industrial applications. Los Angeles, Calif.-based Marcum LLP, the Company's auditor since 2017, issued a "going concern" qualification in its report dated September 26, 2024, citing that the Company has a significant working capital deficiency, has incurred significant operating losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of December 31, 2024, the Company had $78.4 million in total assets, $86 million in total liabilities, $13.9 million in redeemable noncontrolling interests and $21.5 million in total stockholders' deficiency. CBRM REALTY: Seeks to Sell Kelly Hamilton Property at Auction ------------------------------------------------------------- CBRM Realty Inc. and its affiliates, seek approval from the U.S. Bankruptcy Court for the District of New Jersey, to sell Property, free and clear of liens, claims, and encumbrances. The Debtors' Property is a multi-family housing assets known as the Kelly Hamilton Property, owned by Kelly Hamilton Apts LLC. The proposed Sale Transaction will provide extensive benefits to the Debtors and their estates, including the elimination of the obligations under the Kelly Hamilton DIP Facility, preservation of the Kelly Hamilton Property as a multifamily housing going concern in a historic area of Pittsburgh, and funding to consummate the Plan. The Debtors seek approval to authorize the Debtors to, subject to the outcome of the auction process, enter into the asset purchase agreement with the Stalking Horse Bidder pursuant to the Plan, establish a timeline to solicit bids, approve the Debtors' selection of the Stalking Horse Bidder, and approve certain limited bid protections in favor of the Stalking Horse Bidder in light of the benefits that the proposed sale provides to the Debtors' estates. The Debtors will use the committed bid from the Kelly Hamilton DIP Lender as a floor in the Debtors' ongoing sale process in accordance with the timeline set forth to secure the highest and best bid for the Kelly Hamilton Property. The Debtors engaged with Lynd Management and its financing partner, 3650 REIT, regarding the Kelly Hamilton DIP Facility. Lynd Management and 3650 REIT formed 3650 SS1 Pittsburgh LLC to provide the $9.7 million Kelly Hamilton DIP Facility which was finalized in connection with these chapter 11 cases. The Kelly Hamilton DIP Facility and Stalking Horse Agreement provide for, among other things, a credit bid of all obligations outstanding under the Kelly Hamilton DIP Facility and the Manager Administrative Expense Claim, the potential assumption of certain liabilities, and the payment of cure amounts for assigned executory contracts (Stalking Horse Bid). The Debtors' discussions with the Kelly Hamilton DIP Lender have resulted in a definitive agreement for 3650 SS1 Pittsburgh LLC or a nominee under common control with the Stalking Horse Bidder designated in accordance with the Stalking Horse Agreement to serve as the Stalking Horse Bidder for the Kelly Hamilton Property, the sale of which would be consummated under the Plan. The Kelly Hamilton Debtor and the Kelly Hamilton DIP Lender entered into the Stalking Horse Agreement. The Stalking Horse Agreement contemplates that the Kelly Hamilton Property will be sold free and clear, except as set forth in the Stalking Horse Agreement, pursuant to a chapter 11 plan. Moreover, in May 2025, the Debtors retained IslandDundon LLC as their financial advisor and investment banker. The Debtors request that the Court approve the following dates in connection with the Bidding Procedures and the proposed sale timeline: -- Entry of the Bidding Procedures Order and Conditional Approval of the Disclosure Statement: July 24, 2025 -- Assumption and Assignment Service Deadline: Seven Days After Entry of the Bidding Procedures Order -- Cure Objection Deadline: Fourteen Days After Service of the Assumption Notice -- Bid Deadline: August 14, 2025 at 4:00 p.m. (prevailing Eastern Time) -- Deadline for Debtors to Designate Qualifying Bids August 15, 2025 --Auction Date (if any): August 18, 2025 at 10:00 a.m. (prevailing Eastern Time) -- Deadline to File Notice of Successful Bidder and Back-Up Bidder: August 19, 2025 -- Deadline to Object to Confirmation and the Sale, and the Voting Deadline: August 22, 2025 at 4:00 p.m. (prevailing Eastern Time) -- Reply in Support of Confirmation: August 27, 2025 -- Confirmation and Sale Hearing: September 4, 2025 at 11:30 a.m. (prevailing Eastern Time) -- Consummation of Sale Transaction: Ten Business Days Following Entry of the Confirmation and Sale Order The Debtors believe that the sale process and related timeline are reasonable in time and scope and afford parties and creditors with sufficient time to gather information necessary to formulate a competitive bid that should maximize the value of the Kelly Hamilton Property for the benefit of the Debtors’ estates and their stakeholders. The Stalking Horse Agreement was executed by and between Debtor Kelly Hamilton Apts LLC and 3650 SS1 Pittsburgh LLC or a nominee designated in accordance with the Stalking Horse Agreement. A $250,000 break-up fee to be paid in accordance with the terms and conditions set forth in the Stalking Horse Agreement. The Kelly Hamilton DIP Lender shall purchase from the Debtors the Kelly Hamilton Property, free and clear of all liens, in exchange for (i) a credit bid in the amount equal to the sum of the Kelly Hamilton DIP Facility Obligations and the Manager Administrative Expense Claim, (ii) assumption of the Assumed Liabilities as of the Closing Date, (iii) payment of the Cure Payment, and (iv) to the extent that any sums shall be required to pay the obligations of the Stalking Horse Bidder as described in clause (ii) above, or pay closing costs for which the Stalking Horse Bidder is responsible hereunder, the Stalking Horse Bidder shall also deliver such a cash payment to the Escrow Agent as may be required for purposes of paying such sums (Purchase Price). The Debtors submit that the timeline set forth in the Bidding Procedures, and the Bidding Procedures themselves, are reasonable and necessary under the circumstances of the chapter 11 cases. Following the Auction (if any), on August 19, 2025, the Debtors will promptly file with the Court a notice that will identify, among other things, the Successful Bidder and Back-Up Bidder. About CBRM Realty Inc. CBRM Realty Inc. is a Somerset, New Jersey-based real estate investment firm. CBRM Realty Inc. and affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Lead Case No. 25-15343) on May 19, 2025. In its petition, the Debtor reports estimated assets and liabilities (on a consolidated basis) between $100 million to $500 million each. Honorable Bankruptcy Judge Michael B. Kaplan handles the case. The Debtors tapped White & Case LLP and Ken Rosen Advisors PC as counsel, Islanddundon LLC as financial advisor, and Kurtzman Carson Consultants, LLC, doing business as Verita Global, as claims, noticing, and solicitation agent. CELSIUS NETWORK: Voelker Can't File Adversary Case, Court Rules --------------------------------------------------------------- Judge Lewis J. Liman of the United States District Court for the Southern District of New York granted the motion of Mohsin Y. Meghi, as litigation administrator of Celsius Network LLC et al., and Ionic Digital Inc., to dismiss the appeal styled JASON VOELKER, Appellant, -v- MOHSIN Y. MEGHJI, as Litigation Administrator, et al., Appellees, Case No. 24-cv-04057-LJL (S.D.N.Y.). Voelker is a shareholder of iCapital, which was a creditor in the Debtors' bankruptcy. On Aug. 15, 2022, iCapital filed a proof of claim based on its allegation that Celsius held assets in trust for it. Voelker himself did not file a proof of claim in the chapter 11 cases. On Nov. 9, 2023, the Bankruptcy Court entered an order confirming the Debtors' plan of reorganization. iCapital was deemed to be holding an Account Holder Claim. With respect to such claims, the Plan effectuated a Class Claim Settlement which provided that Account Holders who did not opt out of the Class Claims Settlement would receive, in lieu of any scheduled Claim or Filed Proof of Claim, an Allowed Claim in an amount that is 105% of the scheduled amount of such Claim. The Plan provided that proofs of claim filed by holders of Account Holder Claims that did not opt out of the Class Claims Settlement would be expunged from the Claims Register and shall be of no further force and effect. The Confirmation Order became final and non-appealable on Nov. 23, 2023. The Plan became effective on Jan. 31, 2024. Pursuant to the Plan and Confirmation Order, the Post-Effective Debtors have expunged the iCapital Claim in exchange for release full and final satisfaction of its claims against the Debtors, including the 5% premium to its scheduled claim as part of the Class Claims Settlement. On April 21, 2024, Voelker, purportedly on behalf of iCapital, moved for leave to file a late adversary proceeding against the Post-Effective Date Debtors for the return of certain cryptocurrency assets allegedly belonging to iCapital. Voelker asserted that iCapital entrusted certain cryptocurrency assets pursuant to a pledge agreement and that Celsius violated its obligations to iCapital and recklessly endangered its assets. The proposed adversary complaint sought the return of iCapital's pledged digital assets, which Voelker alleged were mistakenly transferred to the Celsius bankruptcy estate. On May 8, 2024, the Bankruptcy Court, per the Honorable Martin Glenn, issued a Memorandum Opinion and Order denying Voelker's motion to file the adversary complaint. Judge Glenn concluded that iCapital (and therefore Voelker) was enjoined from initiating the proposed adversary proceeding, that Voelker lacked standing to bring the proceeding, and that the alternative relief that Voelker sought, an order of nondischargeability and limited relief from discharge for iCapital to pursue the immediate return of the pledged digital assets, could not be granted because the iCapital Claim had already been fully addressed and resolved under the Plan. Voelker argues on appeal that because iCapital's digital assets were held in bailment, they were not property of the bankruptcy estate and were not subject to the jurisdiction of the bankruptcy court. He contends that the assets were not subject to the injunction under the Plan. The Litigation Administrator et al. argue that the Court should dismiss the appeal under the doctrine of equitable mootness. In the alternative, they assert that the Court should affirm the bankruptcy court order on the grounds that Voelker lacks standing and that the bankruptcy court correctly denied the motion for leave. As of Aug. 26, 2024, the Post-Effective Date Debtors had distributed $2.53 billion worth of liquid cryptocurrency and cash in initial distributions, representing approximately 94% of the value of eligible cryptocurrency distributions and 93% of total value eligible for distributions. As of March 21, 2025, the Post-Effective Date Debtors have made multiple rounds of distributions to creditors and 98% of cryptocurrency claims have been distributed. The appeal is presumed to be equitably moot. iCapital's claim in bankruptcy, filed on Aug. 15, 2022, stated that it was based on cryptocurrency assets held in trust by Celsius for iCapital management. This is the exact claim Voelker seeks to press now, which iCapital understood was based on assets held in trust. iCapital nevertheless did not opt out of the Class Claim Settlement, thereby agreeing to the expungement of the claim in exchange for 105% of the scheduled amount and becoming subject to the injunction preventing the commencement or prosecution by any Person or Entity whether directly, derivatively, or otherwise, of any Causes of Action released pursuant to the Plan. According to Judge Liman, "The Plan's ability to bind iCapital and Voelker is not premised on a holding that the relevant assets were or were not part of the bankruptcy estate. It is premised on iCapital agreeing to give up litigation of that question in return for 105% of the scheduled amount." Even if Voelker's appeal were not equitably moot, the Court would affirm the bankruptcy court's holding on the merits on the grounds that Voelker was enjoined from commencing the adversary proceeding. A copy of the Court's Memorandum and Order dated June 23, 2025, is available at https://urlcurt.com/u?l=wS8Tr3 from PacerMonitor.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. CHARTER SCHOOL: Gets Court Approval for July 18 Auction ------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approved bidding procedures for the sale of substantially all or a portion of the assets of Charter School Capital Inc., and authorized the Debtor to designate a stalking horse bidder and provide bid protections in accordance with the stalking horse designation procedures. The deadline to submit bid for the Debtor's assets is July 6, 2025, at 5:00 p.m. (ET). Any party interested in submitting a bid for any of the Debtor’s Assets should contact the Debtor's sales agent: Rock Creek Advisors, LLC Brian Ayers, email: bayers@rockcreekfa.com; Jim Gansman, email: jgansman@rockcreekfa.com; and Tim Peach, email: tpeach@rockcreekfa.com. Each qualified bid must be accompanied by a good faith deposit each in the form of cash in an amount equal to ten percent (10%) of the proposed purchase price for the assets. The good faith deposit will be deposited no later than the bid deadline with an escrow agent selected by the Debtor and held in escrow until ten (10) business days after the conclusion of the auction, except for the Good Faith Deposit of any bidder who is selected at the auction as a successful bidder or as a backup bidder, and thereafter returned to the respective qualified bidders in accordance with these bidding procedures. An auction will take place on July 18, 2025, at 10:00 a.m. (ET) at the offices of Goodwin Procter LLP, The New York Times Building, 620 8th Avenue, New York, NY 10018 or virtually, followed by a sale hearing scheduled for July 25, 2025, at 3:00 p.m. (ET) before the Honorable Craig T. Goldblatt, United States Bankruptcy Judge, in the United States Bankruptcy Court for the District of Delaware, located at 824 N. Market Street, Wilmington, Delaware 19801. Deadline to consummate the sale is July 29, 2025. If the Debtor determines not to hold an auction, the Debtor will file with the Court, and cause to be served and published on the website maintained by the Debtor's claims and noticing agent in this chapter 11 case, located at https://dm.epiq11.com/CharterSchoolCapital. Objection to the sale of the Debtor's assets, if any, must be filed no later than 5:00 p.m. (ET) on July 23, 2025. About Charter School Capital Charter School Capital Inc. is a provider of funding to charter schools across the U.S. Charter School Capital Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11016) on June 8, 2025. In its petition, the Debtor reported between $10 billion and $50 billion in assets and liabilities. Judge Craig T. Goldblatt oversees the case. The Debtor is represented by James R. Risener, III, Esq., Ethan H. Sulik, Esq., Brett Michael Haywood, Esq., and Aaron H. Stulman, Esq., at Potter Anderson & Corroon, LLP. 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 Charter School Capital, Inc. CHIARELLA HOLDINGS: Case Summary & One Unsecured Creditor --------------------------------------------------------- Debtor: Chiarella Holdings LLC 5291 Sunset Lane Yorba Linda, CA 92886 Business Description: Chiarella Holdings LLC is a single-asset real estate entity that owns a residential property at 5291 Sunset Lane in Yorba Linda, California, with a comparable market value of approximately $1.53 million. Chapter 11 Petition Date: July 11, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-11901 Judge: Hon. Scott C Clarkson Debtor's Counsel: Krystina T. Tran, Esq. LAW OFFICES OF KRYSTINA T TRAN 17011 Beach Blvd, Suite 830 Huntington Beach, CA 92647 Tel: (949) 797-9090 Fax: (949) 393-3999 E-mail: ktran@ktranlaw.com Total Assets: $1,528,863 Total Liabilities: $1,140,000 The petition was signed by Giovanni Chiarella as president. The Debtor listed the County of Orange County Service Center as its sole unsecured creditor, citing a $77,000 claim for property tax arrears. The creditor is located at 601 N Ross Street, Santa Ana, California. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/ZLYTPKI/Chiarella_Holdings_LLC__cacbke-25-11901__0001.0.pdf?mcid=tGE4TAMA CHIARELLA HOLDINGS: Seeks Chapter 11 Bankruptcy in California ------------------------------------------------------------- On July 11, 2025, Chiarella Holdings LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Chiarella Holdings LLC Chiarella Holdings LLC is a single asset real estate company based in Yorba Linda, California. Chiarella Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11901) on July 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Scott C. Clarkson handles the case. The Debtors are represented by Krystina T. Tran, Esq. at Law Offices Of Krystina T Tran. CHICAGO SPORTS: Janice Seyedin Named Subchapter V Trustee --------------------------------------------------------- The U.S. Trustee for Region 11 appointed Janice Seyedin as Subchapter V trustee for Chicago Sports and Entertainment Group, Inc. Ms. Seyedin will be paid an hourly fee of $295 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Seyedin declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. About Chicago Sports and Entertainment Chicago Sports and Entertainment Group, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-09337) on June 19, 2025, with up to $50,000 in assets and between $500,001 and $1 million in liabilities. Judge Jacqueline P. Cox presides over the case. John H. Redfield, Esq. at Crane, Simon, Clar & Goodman represents the Debtor as legal counsel. CINEMEX HOLDINGS: Gets Court OK for $2.6MM to Fund 2nd Ch. 11 Case ------------------------------------------------------------------ David Minsky of Law360 Bankruptcy Authority reports that on Thursday, July 10, 2025, a Florida bankruptcy judge authorized more than $2.6 million in funding to support the company's operations during its second Chapter 11 case, allowing the money to be used for key vendor payments and goodwill expenses as it pursues a new reorganization plan. About Cinemex Holdings USA Cinemex Holdings USA, Inc. is a holding company for cinema operations including CMX Cinema. Cinemex Holdings sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-17559) on June 30, 2025. In its petition, the Debtor reports estimated assets between $100,001 and $500,000, with liabilities under $50,000. Honorable Bankruptcy Judge Corali Lopez-Castro handles the case. The Debtor is represented by Jeffrey P. Bast, Esq. at Bast Amron LLP. CK BUILDERS: Gets Interim OK to Use Cash Collateral --------------------------------------------------- CK Builders, LLC got the green light from the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division, to use cash collateral. At the hearing held on July 7, the court granted the Debtor's bid to use cash collateral on an interim basis and set a final hearing for August 4. The cash collateral consists of rental income from residential properties the Debtor owns and operates in Bexar County, Texas. The Debtor said the income is necessary to maintain the properties (covering expenses such as maintenance, insurance, and taxes) and to support its owner, Cynthia Schwarz, and her husband, who also pay property-related bills. Citizens State Bank holds liens on the properties, including rental income, through recorded Deeds of Trust. To ensure the bank remains protected, the Debtor offered to grant a replacement lien and assured the court that the properties are worth significantly more than the estimated $550,000 owed to the bank. The owners are personally selling a property, with a scheduled closing in mid-August 2025, and plan to use the proceeds to fully repay Citizens State Bank. Pending further court orders, any surplus cash will remain in the Debtor's bank account, according to court filings. About CK Builders LLC CK Builders, LLC provides home improvement and general contracting services in the Pipe Creek and San Antonio areas of Texas. It holds a home improvement contractor license and has completed various residential remodeling and repair projects. CK Builders sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-51458) on June 30, 2025. In its petition, the Debtor reported estimated assets between $1 million and $10 million and estimated liabilities up to $50,000. Judge Craig A. Gargotta handles the case. The Debtor is represented by William R. Davis, Jr., Esq., at Langley & Banack, Inc. CLASSIC RECREATIONS: Seeks Chapter 11 Bankruptcy in Texas --------------------------------------------------------- On July 9, 2025, Classic Recreations - Texas LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Classic Recreations - Texas LLC Classic Recreations - Texas LLC is a company specializing in building licensed classic car recreations and restorations. Classic Recreations - Texas LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-32572) on July 9, 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 Munsch Hardt Kopf & Harr, P.C. CLASSIC RECREATIONS: To Sell Auto Restoration Biz to CR Turnaround ------------------------------------------------------------------ Classic Recreations – Texas, LLC, seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, to sell substantially all Assets, free and clear of liens, claims, and encumbrances. In 2024, the Debtor has experienced difficulty in obtaining a broad refinancing of its obligations and injection of capital and was unable to attract any interest from banks or other traditional lending institutions causing the Debtor to turn to investors and other sources of capital. The Debtor hired an investment and advisory group to help raise capital and marketed the Debtor for equity investments at a $30 million valuation to parties interested in fractional ownership of the Debtor. However, due to the volatility in the investment market in 2024, which impacted manufacturing significantly, investors were unwilling to invest in the Debtor. The Debtor retained AMPT as a turnaround and investment strategist. AMPT designed a financial turnaround strategy aimed at giving the Debtor instant liquidity through convertible promissory notes, and capping the fundraising with a large investment which would rebalance the Debtor's balance sheet, eliminate debt, and put the Debtor on a better financial path. Despite the changes to the Debtor's strategy, the Debtor was only able to secure three investors and did not provide the Debtor with sufficient liquidity to achieve a full turnaround. In April of 2025, the Debtor began exploring a sale of its business. Following robust negotiations, the Debtor and CR Turnaround LLC (Purchaser or Stalking Horse Bidder) entered into certain Asset Purchase Agreement. Summary of CR Turnaround LLC Sale: Consideration: $1,200,000–$1,400,000 consisting of the Purchaser's provision of (i) up to $300,000 in debtor-in-possession financing credited against the Closing Payment on a dollar-for-dollar basis, (ii) a $1,200,000 Closing Payment, less any amounts advanced under the DIP Loan and DIP Agreement, and (iii) a contingent $200,000 Funding Shortfall to protect the Debtor against a liquidity crisis during the Bankruptcy Case. Acquired Assets: Substantially all of the Debtor's property, including, but not limited to, all equipment, inventory, business personal property, parts, partially built vehicles, carbon fiber molds, all work-in-progress, accounts, machinery, equipment, inventories, tenant improvements, goodwill, software and computer programs, hardware, intellectual property, company names, product names, trade names, prepaid expenses (other than prepaid insurance) and deposits, books and records, any policies and procedures relating to the Business, telephone and facsimile. Excluded Assets: (i) cash, (ii) cash equivalents (excluding receivables and the proceeds thereof), (iii) income tax receivables, (iv) deferred tax assets, (v) employee advances, (vi) prepaid insurance including prepaid professional liability insurance, (vii) any and all Contracts (as defined below), (viii) the Purchase Price (as defined below) and all rights of Seller under this Agreement, (ix) any rights, claims or causes of action under Chapter 5 of the Bankruptcy Code. Closing: No later than five (5) calendar days after the entry of a final, non-appealable Sale Order in a form reasonably acceptable to Purchaser. The Debtor seeks to sell the Property free and clear of liens, claims, interests, and encumbrances. About Classic Recreations – Texas, LLC Classic Recreations – Texas, LLC is an auto restoration service in Flower Mound, Texas. It has hand-built some of the most visionary custom built cars for the demanding market of classic American muscle. Classic Recreations sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.Tx. Case No. 25-32572-mvl11V) Judge Michelle V. Larson presides over the case. Thomas Daniel Berghman at Munsch Hardt Kopf & Harr PC serves as the Debtor's legal counsel. CNT HOLDINGS: $250MM Term Loan Add-on No Impact on Moody's B2 CFR ----------------------------------------------------------------- Moody's Ratings said CNT Holdings I Corp (dba "1-800 Contacts") ratings were not impacted by the $250 million add-on to the backed senior secured first lien term loan, increasing the term loan's size to approximately $1.75 billion from the current approximately $1.5 billion. The company's B2 corporate family rating, B2-PD probability of default rating and B2 ratings on the backed senior secured first lien bank credit facilities (inclusive of the upsize) remain unchanged. The outlook remains unchanged at stable. Proceeds from the $250 million incremental backed senior secured first lien term loan along with about $95 million of cash will be used to fund an approximately $340 million shareholder distribution and to pay for fees and expenses. Pro forma for the $250 million term loan add-on, debt/EBITDA increases about a turn to about 6.4x from about 5.45x and EBITA/interest coverage weakens to about 1.95x from about 2.25x (using annualized interest expense expectations, including the impact of the company's January 2025 reprice). However, both metrics remain within Moody's downgrade triggers which are debt/EBITDA above 6.5x and EBITA/interest below 1.75x. In addition, 1-800 Contacts has a history of reducing leverage and Moody's projects leverage and coverage to improve to about 5.5x and 2.3x by year-end 2025 driven by a continuation of the strong EBITDA generation that the company has been demonstrating. 1-800 Contacts' B2 Corporate Family Rating (CFR) reflects its high financial leverage and governance considerations specifically its aggressive financial policy under private equity ownership including regular debt financed shareholder distributions. Most recently, 1-800 Contacts paid a $250 million debt financed dividend in Q3 2025 which was on top of a $250 million debt-financed dividend in Q1 2024. Nonetheless, solid financial performance following its 2020 LBO led to improved financial leverage with debt/EBITDA of about 5.45x at March 31, 2025 down from a high of 8.7x in 2020. Even with the most recent debt-financed dividend (which Moody's expects will increase leverage to about 6.4x), Moody's anticipates continued improved operating performance to support leverage decreasing to between 5.0x – 5.5x over the next 12-18 months with EBITA/Interest between 2.3x-2.5x. The company's credit profile also reflects its small scale relative to retail industry peers and the highly competitive and commoditized nature of the contact lens retail business. Partially offsetting these challenges are the company's good brand name recognition, leading position as an online player and continued investment in innovation. Moody's also recognizes the recession resilient nature of demand for contact lenses, as well as the growing e-commerce penetration and premiumization within the category. 1-800 Contacts has very good liquidity including positive free cash flow, full revolver availability and a lack of near-term maturities. CNT Holdings I Corp ("CNT" or "1-800 Contacts") is an online retailer and distributor of contact lenses in the US. The company is controlled by affiliates of Kohlberg Kravis Roberts & Co L.P. and generates roughly $1.6 billion in annual revenue. COMSTOCK RESOURCES: Fitch Affirms & Then Withdraws 'B' IDR ---------------------------------------------------------- Fitch Ratings has affirmed Comstock Resources Inc.'s Long-Term Issuer Default Rating (IDR) at 'B'. The Rating Outlook is Stable. Fitch has also affirmed Comstock's unsecured ratings at 'B' with a Recovery Rating of 'RR4'. The IDR and unsecured ratings have subsequently been withdrawn for commercial reasons. Comstock's ratings reflect its position as one of the largest producers of natural gas in the Haynesville shale basin, its solid operating cost structure, and its relatively low differentials due to its proximity to the Henry Hub. These factors are offset by Comstock's difficulty generating consistent positive free cash flow (FCF) using Fitch's base case price deck and elevated leverage. The IDR and unsecured ratings are being withdrawn for commercial reasons. Key Rating Drivers Challenged FCF Generation: Although Comstock generates modest positive FCF under Fitch's base case pricing, it recorded negative FCF in 2023 and 2024. In the base case, FCF remains negative until 2026 but declines to near FCF neutral at mid-cycle pricing. Production increased nearly 5% in 2023 due to elevated capital spending, while remaining flat in 2024 following a 31% reduction in capital spending. Comstock expects 22% higher capital spending in 2025, with an anticipated 8% production decline. A nine- to 12-month lag in the recovery of shale production growth after significant capex cuts is not unusual. Production is expected to return to growth in 2026. At strip pricing, the company returns to positive FCF in 2025 and should be able to repay revolver borrowings by the end of 2026. Fitch-rated peers in the 'B+' category can generate more consistent positive FCF at base case pricing. Elevated Leverage: Comstock's leverage remains within Fitch's leverage sensitivity band throughout the forecast period. The company improved liquidity with the $400 million add-on to the senior notes in 2024. However, the expected negative FCF limits in 2025 limits Comstock's ability to repay revolver borrowings and improve leverage metrics. Using strip pricing allows leverage to get below the positive leverage sensitivity during the forecast but leaves the company exposed to large maturities in 2029 and 2030. Low-Cost Operator: Comstock's operating cost structure supports the credit rating. The company has one of the lowest operating cost structures among its natural gas peers due to its low lease operating costs and gathering and transportation costs. Fitch estimates Comstock's 2024 total cash costs per unit of production, including interest, at $1.17/thousand cubic feet of natural gas equivalent (mcfe), which is lower than other Haynesville peers. Haynesville Drilling Costs: High drilling costs in the Haynesville shale basin weigh on Comstock's ratings. The reserves in Haynesville are hotter, deeper and under higher pressure than other competing natural gas basins. This increases the cost of drilling wells in the basin and makes it more expensive to maintain production. The high cost of drilling and the focus on developing its Western Haynesville acreage has contributed to Comstock's negative FCF. The Western Haynesville acreage has the potential to be a large contributor to reserves, production and cash flow, but requires significant spending over the next few years to delineate and develop the play. Haynesville Scale: Comstock is one of the largest producers in the Haynesville shale basin with strong positions in both the eastern and western parts of the play. The eastern provides strong current production and the western provides access to a more prospective part of the play that has shown strong initial results and may provide substantial production growth in the future. The basin's proximity to Gulf Coast natural gas liquefaction and export terminals is beneficial. Improved Hedging Volumes: Comstock's return to hedging approximately 50%-60% of its forward 12-month gas production is a credit positive. Relatively low hedging in 2023 had a negative impact on performance. The company currently has around 50% of 2025 expected production hedged at $3.48 per thousand cubic feet (mcf) and around 60% of Fitch forecast 2026 production hedged at $3.50/mcf. Peer Analysis Fitch estimates Comstock's EBITDA leverage at 3.6x as of March 31, 2025 and is forecast to remain above 2.5x. This leverage is higher than that of peers rated 'B' and above its negative leverage sensitivity. Comstock is larger than other 'B' rated peers with 2024 production of 1,442 million cubic feet of natural gas equivalent per day (mmcfe/d) and reserves totaling 3.7 trillion cubic feet of natural gas equivalent. Comstock's 2024 Fitch-calculated unhedged levered netback of $0.81/mcfe was lower than its peers. Comstock's 1Q25 Fitch-calculated unhedged levered netback was higher than its peers. Comstock has exhibited the lowest FCF margins among its peers over the past several years. Key Assumptions - Floating interest rates based on three-month SOFR curve; - West Texas Intermediate oil prices of $65/bbl in 2025, $60/bbl in 2026 and 2027, and $57/bbl thereafter; - Henry Hub natural gas prices of $3.60/mcf in 2025, $3.50/mcf in 2026, $3/mcf in 2027 and $2.75/mcf thereafter; - High-single-digit production decline in 2025, followed by mid-teens production growth in 2026, then modest single-digit growth; - Capex of between $750 million and $1.2 billion throughout the forecast; - Midstream capex funding from its JV partner of $140 million in 2025 and $110 million in 2026; - No incremental acquisitions, divestitures or equity issuance. Recovery Analysis The recovery analysis assumes that Comstock would be reorganized as a going concern (GC) in bankruptcy rather than liquidated. Fitch has assumed a 10% administrative claim. Comstock's GC EBITDA assumptions incorporate Fitch's projections under a stressed case price deck, which assumes Henry Hub natural gas prices of $3.00 in 2025, $2.50 in 2026 and $2.25 thereafter. The GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the enterprise valuation (EV). The GC EBITDA assumption is $675 million, which reflects the decline from current pricing levels to stressed levels and then a partial recovery coming out of a troughed pricing environment. The model was adjusted for reduced production and varying differentials given the material decline in the prices from the previous price deck. The $675 million represents a 4% decrease from the previous GC EBITDA due to changes in its stress case model. An EV multiple of 4.0x EBITDA is applied to the GC EBITDA to calculate a post-reorganization EV. The choice of the multiple considered the following factors: - The historical case study exit multiples for peer companies ranged from 2.8x-7.0x, with an average of 5.2x and median of 5.4x; - Comstock's $2.2 billion acquisition of Covey Energy Partners, LP in 2019 had an approximate EBITDA multiple of 4.0x. Southwestern acquired Indigo Energy Partners, LLC, a Haynesville operator at an approximate multiple of 3.8x. Indigo is smaller than Comstock in terms of reserves and production. The liquidation estimate reflects Fitch's view of the value of balance sheet assets that can be realized in sale or liquidation processes conducted during a bankruptcy or insolvency proceeding and distributed to creditors. Fitch considers valuations such as SEC PV-10 and M&A transactions for each basin including multiples for production per flowing barrel, proved reserves valuation, value per acre and value per drilling location. The senior secured revolver is expected to be 90% drawn from the $1.5 billion commitment. This reflects the expectation that in a stressed pricing environment the borrowing base will be reduced. The allocation of value in the liability waterfall results in recovery corresponding to 'RR1' for the secured revolver and 'RR4' for the senior unsecured notes. RATING SENSITIVITIES Rating sensitivities are no longer relevant as the ratings are being withdrawn. Liquidity and Debt Structure Comstock had $33 million of cash on hand and $990 million of availability under its $1.5 billion revolver with a $2 billion borrowing base and $1.5 billion commitment, as of March 31, 2025. Under Fitch's base case, FCF generation is negative in 2025. Utilizing strip pricing, there is more consistent positive FCF generation and Fitch forecasts repayment of revolver borrowings by 2026. Comstock's next maturity is its revolver in 2027, followed by the $1.62 billion unsecured notes due in 2029 and the $965 million unsecured notes due in 2030. The revolver has two financial covenants: a leverage ratio of less than 4.0x, which falls to 3.75x on June 30, 2025 and 3.5x on Sept. 30, 2025 and a current ratio of at least 1.0. The leverage covenant was amended in 2024 to avoid a covenant breach. The company complied with both as of March 31, 2025. Issuer Profile Comstock Resources, an independent E&P company operating in the Haynesville Basin, had 3.8 Tcfe of proved reserves (PV-10 value of $1.6 billion) as of Dec. 31, 2024. Production for 2023 was 1,442 mmcfe/d (99.9% gas and 0.1% oil). 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 Comstock Resources Inc. has an ESG Relevance Score of '4' for Governance Structure due to the consolidated ownership of 71% of the outstanding shares by one shareholder, 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 ----------- ------ -------- ----- Comstock Resources Inc. LT IDR B Affirmed B LT IDR WD Withdrawn senior unsecured LT B Affirmed RR4 B senior unsecured LT WD Withdrawn COOPER EQUIPMENT: DBRS Confirms BB LongTerm Issuer Rating --------------------------------------------------------- DBRS Limited changed the trends on all credit ratings of Cooper Equipment Rentals Limited (Cooper or the Company) to Negative from Stable and confirmed all credit ratings, including the Company's Long-Term Issuer Rating at BB and Long-Term Senior Debt credit rating at BB (low). This one-notch differential reflects Cooper's substantial balance sheet encumbrance, as the vast majority of assets are pledged under the Company's asset-based credit facility (the ABL Facility). The Company's Intrinsic Assessment (IA) is BB, and its Support Assessment is SA3, which reflects no expectation of timely external support and results in the Long-Term Issuer Rating being equalized to the IA. KEY CREDIT RATING CONSIDERATIONS The trend change to Negative from Stable reflects the significant increase in Cooper's already-high cash flow leverage, reflecting higher debt levels and weaker-than-expected financial performance amid a challenging operating environment. Moreover, the Negative trend also considers that 2025 will be another difficult year for earnings as pricing pressure and macroeconomic uncertainty persists. Cooper's credit ratings are supported by its franchise as one of the largest equipment rental businesses in Canada, as well as an experienced senior management team with a high degree of industry knowledge. Additionally, the Company has a sound risk profile including modest credit risk, with asset risk and operational risk considered to be well managed. Morningstar DBRS views the Company's funding and liquidity profile as weak, with significant reliance on the ABL Facility, although it did somewhat diversify its funding mix through the issuance of senior unsecured notes in 2024. CREDIT RATING DRIVERS Given the Negative trend, a credit rating upgrade is unlikely. Morningstar DBRS would return the trend to Stable if Cooper demonstrates a notable improvement in cash flow leverage. The Long-Term Senior Debt credit rating would be equalized with the Long-Term Issuer Rating if asset encumbrance levels were reduced substantially. Morningstar DBRS would downgrade the credit ratings if cash flow leverage remains elevated. CREDIT RATING RATIONALE Franchise Building Block Assessment: Good/Moderate Founded in 1972, the Company has a well-established franchise in the Canadian equipment rental industry with a footprint of over 80 branches, up from 70 in the prior year, primarily located in Canada's largest provinces. Cooper has an estimated top-five market share within a mostly fragmented industry. With a customer base across a broad range of industries, the Company rents over 58,000 pieces of equipment, including skid-steer loaders, compact track loaders, boom lifts, scissor lifts, telehandlers, forklifts, excavators, wheel loaders, rollers, dozers, articulated dump trucks, air compressors, generators, pumps, compaction, lighting, trench shoring, and a broad range of other general rental equipment and tools. Cooper is majority-owned by SeaFort Capital Inc. (SeaFort), a Halifax-based investment company whose founding investors include two of Canada's wealthiest families. Earnings Building Block Assessment: Moderate Cooper's core earnings performance was relatively resilient in 2024 as adjusted EBITDA declined 3% year over year (YOY) to $163.2 million. This decline was driven by higher expenses and lower-than-expected revenue growth, which slowed significantly from prior years amid a challenging operating environment, including reduced construction activity, increased competition, and pricing pressures. Operating expenses excluding amortization and depreciation increased 17% YOY, below prior years but still above revenue growth of 9%, with increases across all expense categories, reflecting increased headcount, branches, and rental volume. Amortization and depreciation increased 22% from 2023, reflecting a 21% increase in average original equipment cost of the Company's rental fleet, while interest expense increased 32% to $53.2 million because of higher debt outstanding. As a result, Cooper reported an adjusted net loss of $27.4 million ($28.6 million net loss on an unadjusted basis), compared with a $15.2 million adjusted net income in 2023 ($15.7 million net loss on an unadjusted basis). Additionally, Cooper reported a net loss of $23.7 million in Q1 2025, compared with a net loss of $19.0 million in Q1 2024, while adjusted quarterly EBITDA was flat YOY at about $26 million. Morningstar DBRS expects that 2025 will be another difficult year for earnings as pricing pressure and macroeconomic uncertainty persists. Risk Building Block Assessment: Moderate Cooper maintains a sound risk profile, reflecting a moderate degree of credit risk, with asset risk and operational risk considered to be more relevant risks. Asset risk is well managed, as equipment is largely sourced from high-quality vendors and the Company employs a conservative depreciation approach, resulting in a fleet fair market value materially above net book value. While operational risk is moderated by the extensive industry experience of senior management and initiatives including a crisis management plan, various insurance policies, and telematics fleet coverage, Morningstar DBRS notes there is no formal risk management framework in place. Morningstar DBRS views the Company's levels of receivables written off as manageable, despite an increase in 2024 to $1.6 million, compared with $0.4 million in the prior year. Funding and Liquidity Building Block Assessment: Weak Morningstar DBRS views Cooper's funding and liquidity profile as weak. Funding remains relatively narrow in scope with a high reliance on the ABL Facility, although the Company somewhat diversified its funding mix in 2024 with a $250 million issuance of five-year senior unsecured notes. These funding sources are supplemented by capital leases and nominal vendor take-back loans. Liquidity is also highly reliant on the ABL Facility, with no additional credit facilities available; there is approximately $150 million in excess availability on the ABL Facility (taking into account borrowing base requirements). Net cash inflows from operating activities totaled $81.0 million in 2024, compared with $70.5 million in the prior year. The Company does not hold a cash balance as all cash collections are used to pay down the ABL Facility on a daily basis. Capitalization Building Block Assessment: Weak Adjusted cash flow leverage (i.e., debt/EBITDA) increased to 4.9x at December 31, 2024 and 5.0x at March 31, 2025, as calculated by Morningstar DBRS, up from 4.0x in 2023 because of the senior unsecured notes issuance and lower EBITDA. Leverage as reported by Cooper, which includes pro forma EBITDA for acquisitions, was 4.8x at year-end 2024 and Q1 2025, up from 3.8x at year-end 2023. This leverage level is well above Cooper's long-term target range of 3.0x to 3.5x, and the Company has very little cushion to its ABL Facility covenants. Additionally, the tangible common equity ratio was a very low 1.0% at year-end 2024, down from 8.7% in 2023, and fell further to negative 2.6% in Q1 2025, primarily driven by net losses and dividend payments which have reduced retained earnings, as well as a $20 million return of capital in 2024. Notes: All figures are in Canadian dollars unless otherwise noted. CORVIAS CAMPUS: Seeks Appointment of Mediator in Bankruptcy Case ---------------------------------------------------------------- Randi Love of Bloomberg Law reports that Corvias Campus Living – USG LLC, a student housing provider, has requested the appointment of a mediator in its Chapter 11 case to help settle disputes with the University System of Georgia's Board of Regents and holders of more than $526 million in secured notes. In a filing Wednesday, July 9, 2025, in the U.S. Bankruptcy Court for the District of Delaware, the company said out-of-court talks with both the board and noteholders have stalled. Corvias also clarified that its parent company, Corvias Group LLC, is not involved in the bankruptcy. About Corvias Campus Living - USG, LLC Corvias Campus Living is a campus housing operator that manages student living facilities for universities within the University System of Georgia. Corvias Campus Living sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11214) on June 25, 2025. In the petition signed by Thelma Edgell as president, the Debtor reported estimated assets of $10 million to $50,000 and estimated liabilities of $500 million to $1 billion. The Hon. Thomas M. Horan presides over the case. The Debtor is represented by Morris, Nichols, Arsht & Tunnell LLP. Cohnreznick Advisory LLC is the Debtor's financial advisor and Holland & Knight LLP is the Debtor's special counsel. Donlin, Recano & Company LLC is the Debtor's claims and noticing agent. COZY HARBOR: Hearing to Use Cash Collateral Set for July 18 ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Maine is set to hold a hearing on July 18 to consider granting another extension to Cozy Harbor Seafood, Inc. and its affiliates to use cash collateral. The Debtors need continued access to cash collateral to avoid operational disruption to their seafood processing and distribution businesses in Portland, Maine. The Debtors previously received interim approval to use the cash collateral of Keybank National Association, a pre-bankruptcy lienholder, to pay the expenses set forth in their budget. The interim order issued on July 3 provided adequate protection to Keybank in the form of automatically perfected liens on the Debtors' equipment and vehicles, with the same priority as its pre-bankruptcy liens. The interim order also granted the lienholder replacement liens on cash, inventory and accounts receivable that were created or in which the Debtors acquired an interest after the petition date. KeyBank, the only known secured lender of the Debtors, holds a pre-bankruptcy claim estimated at $4.9 million and has a security interest in the Debtors' assets, including cash. About Cozy Harbor Seafood Inc. Cozy Harbor Seafood, Inc. is the oldest and most experienced processor of lobster in the United States. It is a primary processor with its main processing plant in Portland, Maine. In business since 1980, Cozy Harbor has established itself in the U.S. and world markets as the most respected source of high-quality seafood products from Maine. Cozy Harbor Seafood sought Chapter 11 protection (Bankr. D. Maine Case No. 25-20160) on July 1, 2025, listing between $1 million and $10 million in both assets and liabilities. Judge Michael A. Fagone oversees the case. D. Sam Anderson, Esq., at Bernstein Shur Sawyer & Nelson is the Debtor's legal counsel. CPI CG: Moody's Lowers Rating on Senior Secured Notes to B3 ----------------------------------------------------------- Moody's Ratings downgraded CPI CG Inc.'s (the debt-issuing subsidiary of CPI Card Group Inc.) backed senior secured notes to B3 from B2. All other ratings, including CPI Card Group Inc.'s (CPI) B2 corporate family rating and B2-PD probability of default rating remain unchanged. The speculative grade liquidity (SGL) rating under CPI remains unchanged at SGL-2. The outlook for both entities remain stable. The downgrade of the senior secured notes follows CPI's recent upsize of the ABL revolver to $100 million from $75 million and retirement of $20 million of the senior notes. This transaction results in the senior secured notes making up less of the total capital structure, and a larger revolving debt subordinating the rated senior secured notes. These factors lead to a one notch difference between the CFR and the senior secured notes. Moody's views this transaction as credit positive given the improved liquidity profile following the revolver upsize and modestly reduced leverage following the retirement of a portion of the senior notes. RATINGS RATIONALE CPI's B2 CFR reflects the company's small scale, high product and customer concentration, limited pricing leverage with its largest customers, and the threat of disintermediation by new technologies. CPI benefits from its solid position in the US as a provider of financial payment cards and services to small, medium and large sized financial institutions. CPI's credit profile is supported by the recurring demand for payment cards based on reissuance volume and continued conversion to contactless smart cards in the US. Moody's projects mid-single digit annual organic revenue growth, supported by continued growth in the debit and credit segment, and modest EBITDA growth through 2026. The Speculative Grade Liquidity (SGL) Rating of SGL-2 reflects good liquidity over the next 12-18 months. CPI's liquidity position is supported by $32 million in cash (as of March 31, 2025), access to a $100 million ABL revolver facility, and Moody's expectations for moderately positive free cash flow. The ABL is subject to a springing fixed charge coverage ratio that is triggered when the availability on the ABL is less than $7.5 million. Moody's do not expect the covenant to be triggered as CPI will likely maintain considerable cushion. The stable outlook reflects Moody's expectations that CPI will generate mid-single digit annual organic revenue growth while maintaining leverage in the mid-to-high 3x range over the next 12 to 18 months. Near term growth in sales and EBITDA will continue to see slight benefit from the alleviation of prior constraining factors such as elevated inventory stocking and regional banking crises. General growth in cards in circulation and continued penetration of contactless and eco cards (particularly to small and mid sized issuers) will support growth. Moody's anticipates that CPI will adhere to a conservative financial policy when making capital allocation decisions. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The ratings could be upgraded if CPI were to achieve greater scale and customer diversification, with strong free cash flow and good liquidity. Leverage sustained below 3x debt/EBITDA would also be required for an upgrade. The ratings could be downgraded if the company experiences revenue decline or margin deterioration such that leverage increases above 5x debt/EBITDA or liquidity materially weakens. Ratings could also be downgraded if the company experiences material market share loss. CPI Card Group Inc. is a provider in payment card production and related services, offering a single source for credit, debit and prepaid debit cards including EMV chip and dual-interface, personalization, instant issuance, fulfillment and digital solutions. The company generated revenues of $491 million in the LTM period ended March 2025. The principal methodology used in this rating was Business and Consumer Services published in November 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. CROSSKIX LLC: Seeks Chapter 11 Bankruptcy in Florida ---------------------------------------------------- On July 11, 2025, Crosskix LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Middle District of Florida. According to court filing, the Debtor reports $100,000 and $500,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Crosskix LLC Crosskix LLC is an Ocoee, Florida-based company. Crosskix LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04309) on July 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge Lori V. Vaughan handles the case. The Debtors are represented by Daniel A. Velasquez, Esq. at Latham, Luna, Eden & Beaudine, LLP. CUSTOM CONCRETE: Seeks Subchapter V Bankruptcy in Nebraska ---------------------------------------------------------- On July 11, 2025, Custom Concrete Designs Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Nebraska. 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 Custom Concrete Designs Inc. Custom Concrete Designs Inc., operating as CCD Enterprises, is an Omaha, Nebraska-based concrete contractor specializing in custom concrete design and installation services. The company provides specialized concrete solutions for residential and commercial projects from its headquarters at 1804 Paul Street in Omaha. Custom Concrete Designs Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Neb. Case No. 25-80700) on July 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. The Debtors are represented by Bruce C. Barnhart, Esq. CX REINSURANCE: Seeks U.S. Court Approval of UK Scheme ------------------------------------------------------ Richard Barker and Simon Edel, in their capacities as foreign representatives ("Foreign Representative") in the Chapter 11 case in respect of CX Reinsurance Company Limited (in Administration) filed the (i) final report of the foreign representatives ("Final Report") and (ii) motion for entry of an order (a) recognizing and enforcing order of The English High Court Sanctioning the Direct Scheme, granting related relief under Chapter 15 of The Bankruptcy Code and (b) Closing the Chapter 15 Case. Any response or objection to the motion must be filed in accordance with the Bankruptcy Code, the Local Rules of the United States Bankruptcy Court for the Southern District of New York, and the Federal Rules of Bankruptcy Procedure, in a writing that sets forth the bases therefor with specificity and the nature and extent of the respondent's claims against the Company. Such Response must be (a) filed electronically with the Court on the Court’s electronic case filing system in accordance with and except as provided in General Order M-399 and the Court's Procedures for the Filing, Signing and Verification of Documents by Electronic Means; (b) delivered to the Chambers of the Honorable Martin Glenn, United States Bankruptcy Judge, One Bowling Green, New York, New York 10004-1408; and (c) served upon (i) Fried, Frank, Harris, Shriver and Jacobson LLP, One New York Plaza, New York, New York 10004 (Attn: Jennifer L. Rodburg and Andrew Minear), (ii) all other parties that request notice in the Chapter 15 Case prior to the date of such service, and (iii) all other parties that the Bankruptcy Court may direct, in each case so as to be actually received by each of them no later than 4:00 p.m. (prevailing Eastern time) on July 24, 2025. On Sept. 14, 2020, the Foreign Representatives commenced this Chapter 15 Case to preserve the Company's assets in the US, to obtain the protections afforded to foreign debtors under chapter 15 of the Bankruptcy Code and, more specifically, to obtain recognition of the Administration Proceeding and relief under sections 1520 and 1521 of the Bankruptcy Code in order to ensure orderly and consistent administration of the Company's affairs by the Foreign Representatives in the US and the UK. On Sept. 5, 2024, and Sept, 6, 2024, after receiving the support of the creditor's committee on the details of the direct scheme, the Company announced its intention to propose a scheme of arrangement pursuant to part 26 of the companies act 2006 through the distribution of the practice statement letter to all known direct scheme creditors and other interested parties. the practice statement letter explained the scheme of arrangement process to the direct scheme creditors and set out an overview of the key terms of the direct scheme. Following the distribution of the practice statement letter, the Company applied to the English Court for permission to convene a Scheme Meeting to consider and vote on the Direct Scheme. The Convening Hearing took place on Oct. 3, 2024, and the English Court subsequently granted the Company’s request to convene the Scheme Meeting, by entry of the Convening Order on Oct, 4, 2024. Thereafter, the Company distributed notice of the Scheme Meeting and copies of the Direct Scheme Documents to all known Direct Scheme Creditors for which they had current address details in compliance with the Convening Order. The Scheme Meeting was held on Dec. 12, 2024, and the Direct Scheme Creditors approved Direct Scheme by an affirmative vote of 100% of the Direct Scheme Creditors present, in person or by proxy. A hearing to sanction the Direct Scheme was held on Jan. 17, 2025. By an order that same date, the English Court sanctioned the Direct Scheme. A copy of the Practice Statement Letter is available at https://www.ey.com/en_uk/administrations/cxreinsurancecompanydirectscheme Copies of the Petitions and all documents filed in the Chapter 15 Case are available to parties in interest on the Court's Electronic Case Filing System, which can be accessed from the Court’s website at http://www.nysb.uscourts.gov(a PACER login and password are required to retrieve a document) or upon written request to the Foreign Representatives’ counsel (including by e-mail) addressed to: Fried, Frank, Harris, Shriver & Jacobson LLP Attn: Jennifer L. Rodburg, Esq. Andrew Minear, Esq. One New York Plaza New York, New York 10004 Tel: (212) 859-8000 Fax: (212) 859-4000 Email: Jennifer.Rodburg@friedfrank.com Andrew.Minear@friedfrank.com CX Reinsurance Company Limited is an insurance company organized under the laws of England and Wales. CX Reinsurance Company Limited filed a Chapter 15 bankruptcy petition (Bankr. S.D.N.Y. Case No. 20-12156) on Sept. 14, 2020, to seek U.S. recognition of its proceedings in the United Kingdom. The Debtor's U.S. counsel: Jennifer L. Rodburg Fried Frank Harris Shriver & Jacobson 212-859-8520 jennifer.rodburg@friedfrank.com - and - Andrew M. Minear Fried Frank LLP 212-859-8000 andrew.minear@friedfrank.com DARE BIOSCIENCE: Nasdaq Panel OKs Revised Compliance Plan --------------------------------------------------------- Dare Bioscience, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that it received a letter from The Nasdaq Stock Market LLC informing that the Nasdaq Hearings Panel has amended its decision in the delisting appeal it previously submitted and approved the Company's further modified multi-step plan to demonstrate compliance with either Nasdaq Listing Rule 5550(b)(1) or 5550(b)(2). The Panel's amended decision and approval of the Company's Plan does not change the end date of the conditional continued listing period previously granted by the Panel, which is August 12, 2025. As previously reported, the Company has not been in compliance with Nasdaq Listing Rule 5550(b) since August 2024. Nasdaq Listing Rule 5550(b)(1) requires a company to maintain stockholders' equity of at least $2.5 million, which is referred to as the "Stockholders' Equity Rule," and Nasdaq Listing Rule 5550(b)(2) requires a company to maintain a minimum market value of listed securities of $35.0 million, which is referred to as the "Minimum MVLS Rule." A company will satisfy the continued listing requirement under Nasdaq Listing Rule 5550(b) if it meets either the Stockholders' Equity Rule or the Minimum MVLS Rule. The Company stated: "Our Plan includes demonstrating compliance with either the Stockholders' Equity Rule or the Minimum MVLS Rule on or before July 31, 2025, and, if we demonstrate compliance with the Minimum MVLS Rule, publicly disclosing transactions we undertook to increase our stockholders' equity and an indication of our stockholders' equity following such transactions, as well as providing the Panel with updates and information on our fundraising plans and updated income projections for the next 12 months. No assurances can be given that we will be successful in executing against our Plan or that we will satisfy either the Stockholders' Equity Rule or the Minimum MVLS Rule by July 31 or August 12, 2025. If we fail to execute on our Plan to the Panel's satisfaction and remain non-compliant with the Stockholders' Equity Rule and the Minimum MVLS Rule, the Panel may issue a decision to delist our common stock and suspend trading in our common stock on Nasdaq before August 12, 2025, even though the Panel granted us conditional continued listing until August 12, 2025. As is customary, the Panel also reserved the right to reconsider the terms of the extension it granted based on any event, condition or circumstance that exists or develops that would, in the opinion of the Panel, make continued listing of our common stock inadvisable or unwarranted. See the risk factor titled, "If we fail to regain and maintain compliance with the continued listing requirements of The Nasdaq Capital Market, our common stock could be suspended and delisted, which could, among other things, limit demand for our common stock, substantially impair our ability to raise additional capital and have an adverse effect on the market price of, and the efficiency of the trading market for, our common stock," in Item 1A of Part II our quarterly report on Form 10-Q filed with the Securities and Exchange Commission on May 13, 2025, and our risk factors in Item 1A of Part I of our annual report on Form 10-K filed with the SEC on March 31, 2025." About Dare Bioscience Dare Bioscience, Inc. is a biopharmaceutical company committed to advancing innovative products for women's health. The Company's mission is to identify, develop, and bring to market a diverse portfolio of differentiated therapies that prioritize women's health and well-being, expand treatment options, and improve outcomes, primarily in the areas of contraception, vaginal health, reproductive health, menopause, sexual health, and fertility. Irvine, California-based Haskell & White LLP, the Company's auditor since 2023, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has recurring losses from operations and is dependent on additional financing to fund operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. DATAVAULT AI: Registers 3.2M Shares Under 2018 Equity Plan ---------------------------------------------------------- Datavault AI Inc. filed a Registration Statement on Form S-8 with the U.S. Securities and Exchange Commission for the purpose of registering an aggregate of 3,239,602 shares of common stock, par value $0.0001 per share, issuable under the Company's 2018 Long-Term Stock Incentive Plan, pursuant to its "evergreen" provision set forth in Section 5.A. thereof. A full text copy of the Registration Statement is available at https://tinyurl.com/44sa2dne About Datavault AI Datavault AI Inc. (f/k/a WiSA Technologies, Inc.) -- www.wisatechnologies.com -- develops and markets spatial audio wireless technology for smart devices and home entertainment systems. The Company's WiSA Association collaborates with consumer electronics companies, technology providers, retailers, and industry partners to promote high-quality spatial audio experiences. WiSA E is the Company's proprietary technology for seamless integration across platforms and devices. San Jose, California-based BPM LLP, the Company's auditor since 2016, issued a â€œgoing concernâ€ qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company's recurring losses from operations, a net capital deficiency, available cash and cash used in operations raise substantial doubt about its ability to continue as a going concern. The Company has incurred net operating losses each year since inception. As of December 31, 2024, the Company had cash and cash equivalents of $3.3 million and reported net cash used in operations of $17.5 million during the year ended December 31, 2024. The Company expects operating losses to continue in the foreseeable future because of additional costs and expenses related to research and development activities, plans to expand its product portfolio, and increase its market share. The Company's ability to transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support its cost structure. DEF HOLDING: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: DEF Holding LLC 10014 SE 246th Pl Kent, WA 98030 Business Description: DEF Holding LLC is a holding company that owns a single real estate asset located at 24710 104th Avenue SE in Kent, Washington. The property is valued at approximately $3.7 million. Chapter 11 Petition Date: July 10, 2025 Court: United States Bankruptcy Court Western District of Washington Case No.: 25-11893 Judge: Hon. Timothy W Dore Debtor's Counsel: Joseph Creed, Esq. LAW OFFICES OF JOSEPH W. CREED 11120 NE 2nd St. Ste 100 Bellevue, WA 98004 Tel: (800) 679-4202 E-mail: jcreed@cefirm.com Total Assets: $3,700,000 Total Liabilities: $1,600,000 The petition was signed by Amarjeet Singh as managing member. The Debtor declared in the petition that there are no unsecured creditors. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/WEXWK5A/DEF_Holding_LLC__wawbke-25-11893__0001.0.pdf?mcid=tGE4TAMA DENVER BOULDERING: Gets OK to Use Cash Collateral Until Oct. 31 --------------------------------------------------------------- Denver Bouldering Club, LLC got the green light from the U.S. Bankruptcy Court for the District of Colorado to use cash collateral. The court's order authorized the Debtor to utilize cash collateral from July 3 to October 31 in accordance with its budget. The Debtor needs immediate access to cash collateral to maintain operations, pay payroll and vendors, and continue generating revenue. Without access, it risks ceasing operations, which would harm both the business and its creditors. The cash collateral consists of proceeds from pre-bankruptcy assets generated after the Debtor's Chapter 11 filing. The U.S. Small Business Administration appears to hold a secured interest in the Debtor's assets, including potential cash collateral, based on a UCC-1 filing from May 5, 2020. As protection for the Debtor's use of its cash collateral, SBA will be provided with adequate protection in the form of a replacement lien on the proceeds of the Debtor's post-petition accounts; a monthly payment of $2,437; and insurance coverage on its personal property. The Debtor's bankruptcy filing was prompted by an underperforming location, an unfavorable lease, and a decline in memberships, all of which caused cash flow problems. The Debtor believes that Chapter 11 reorganization will provide a better return to creditors than liquidation and plans to restructure operations and reject burdensome contracts. About Denver Bouldering Club LLC Denver Bouldering Club, LLC operates multiple climbing gyms in the Denver area, offering memberships, coaching, and outdoor education. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 25-14161-TBM) on July 3, 2025. In the petition signed by Thomas Betterton, managing member, the Debtor disclosed up to $100,000 in assets and up to $1 million in liabilities. Judge Thomas B. McNamara oversees the case. David J. Warner, Esq., at Wadsworth Garber Warner Conrardy, P.C., represents the Debtor as legal counsel. DETCO INC: Unsecured Creditors Will Get 41% of Claims in Plan ------------------------------------------------------------- Detco, Inc., filed with the U.S. Bankruptcy Court for the Eastern District of Arkansas a Combined Disclosure Statement and Plan dated June 20, 2025. The Debtor is a business performed by Dave and Lisa Detlefsen. Dave and Lisa Detlefsen have operated Detco, Inc. since August of 2001. The Debtor is owned by Dave & Lisa Detlefsen. Dave owns 49.9% and Lisa owns 50.1% of the issued and outstanding capital stock of the Debtor. Lisa Detlefsen is the President and oversee operation of the gas station's business and finances. Slow sales led Detco to get behind on its mortgage with WBL SPO I, LLC and WBL filed case 28CV-24-153 in Green County, Arkansas seeking to foreclose Detco's real estate in April of 2024. In order to prevent the real estate from being sold at foreclosure sale, Detco filed this bankruptcy August 26, 2024. Debtor was also behind on paying its merchant cash advance obligations with secured creditor Kapitus Servicing Inc. The Debtor had seen a decline in business over the last 3 or 4 years and was facing a foreclosure on its real estate in 2024. Debtor has now re-focused and intends on selling its assets in 2025 making the Plan feasible. The Debtor's Plan proposes to pay creditors using cash flow from operations and/or future income and the sale of its assets. The Plan provides for 1 class of priority claims, 2 classes of secured claims; 1 class of general unsecured claims; and 1 class of equity security holders. General non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately approximately 250,861.76 or 41%, This Plan also provides for the payment of certain administrative expenses. Class 4 consists solely of Debtor's unsecured, non-priority debts in the approximate amount of $610,729.31, as reflected on POC #2 of the IRS. Payments and distributions under the Plan will be funded by the net monthly and/or annual cash flow from business operations of the Debtor and from the sale of Debtor's assets estimated at a total of $2,675,000.00. The IRS will be paid the balance of the proceeds expected from the sale of its assets after paying Debtor's secured claims and the IRS’s priority claim. Currently that amount is estimated at $250,861.76. Class 12 consists of Equity Security Holders of the Debtor: Lisa Detlefsen and Dave Detlefsen. Equity security holders shall retain their full interest in the Debtor and any proceeds from the contemplated lawsuit against Jordan's Quickstep, Inc. and/or Jordan's Fuel Sells, LLC. Payments and distributions under the Plan will be funded by the net monthly and/or annual cash flow from business operations of the Debtor and from the sale of Debtor's assets estimated at a total of $2,675,000.00. A full-text copy of the Combined Disclosure Statement and Plan dated June 20, 2025 is available at https://urlcurt.com/u?l=Q48z1m from PacerMonitor.com at no charge. About Detco Inc. Detco Inc. owns a 207,781 sq. ft. building located on 4.77 acres located in Greene County at 1810 U.S. 49, Paragould, AR 72450. This commercial property, on which the Debtor's convenience store & service station are located, has an appraised value of $2.1 million. Detco Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Ark. Case No. 24-12775) on Aug. 26, 2024. In the petition signed by David Detlefsen, chairman, the Debtor disclosed $2,766,656 in assets and $1,615,389 in liabilities. Judge Phyllis M. Jones presides over the case. Dilks Law Firm serves as the Debtor's counsel. The firm can be reached through: Frank H. Falkner, Esq. Lyndsey D. Dilks, Esq. Dilks Law Firm P.O. Box 34157 Little Rock, AR 72203 Telephone: (501) 244-9770 Facsimile: (888) 689-7626 Email: frank@dilkslawfirm.com ldilks@dilkslawfirm.com DIACARTA INC: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: DiaCarta, Inc. 3857 Breakwater Avenue Hayward, CA 94545 Business Description: DiaCarta, Inc. is a precision diagnostics company that develops and provides molecular testing solutions for cancer and infectious diseases. The Company offers products such as RadTox, ColoScape, and Oncuria, leveraging proprietary XNA and isobDNA technologies to enable sensitive detection of genetic alterations. DiaCarta serves healthcare providers and patients globally through its suite of clinical diagnostic tests and services. Chapter 11 Petition Date: July 10, 2025 Court: United States Bankruptcy Court Northern District of California Case No.: 25-41215 Debtor's Counsel: Michael Jay Berger, Esq. LAW OFFICES OF MICHAEL JAY BERGER 9454 Wilshire Boulevard, 6th Floor Beverly Hills, CA 90212 Tel: (310) 271-6223 E-mail: michael.berger@bankruptcypower.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Aiguo Zhang as chief executive officer. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/ATAJRXA/DiaCarta_Inc__canbke-25-41215__0001.0.pdf?mcid=tGE4TAMA DUKE BIOMED: Section 341(a) Meeting of Creditors on August 12 ------------------------------------------------------------- On July 9, 2025, Duke Biomed 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. A meeting of creditors under Section 341(a), filed by William J. Birmingham, to be held on August 12, 2025 at 10:00 AM at USA Toll-Free (888) 330-1716, USA Caller Paid/International Toll (713) 353-7024, Access Code 7219992. About Duke Biomed LLC Duke Biomed LLC is a premier medical supplier that specializes in Safety Syringes, Prevents needle-stick injury, Sterile Hypodermic Needles, and Low cost compared to other retractable syringes. Duke Biomed LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-72657) on July 9, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Alan S. Trust handles the case. DUNCAN RENTAL: Seeks Subchapter V Bankruptcy in Florida ------------------------------------------------------- On July 11, 2025, Duncan Rental Company LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Middle District of Florida. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 50 and 99 creditors. The petition states funds will be available to unsecured creditors. About Duncan Rental Company LLC Duncan Rental Company LLC is a Florida-based equipment rental company specializing in construction and heavy equipment. Duncan Rental Company LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04733-RCT) on July 11, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Roberta A. Colton handles the case. The Debtors are represented by Buddy D. Ford, Esq. at Ford & Semach, P.A. DYNASTY SONG: Christopher Hayes Named Subchapter V Trustee ---------------------------------------------------------- The U.S. Trustee for Region 17 appointed Christopher Hayes as Subchapter V trustee for Dynasty Song, LLC. Mr. Hayes will be paid an hourly fee of $470 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Hayes declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Christopher Hayes 23 Railroad Avenue, #1238 Danville, CA 94526 Phone: (925) 725-4323 Email: chayestrustee@gmail.com About Dynasty Song LLC Dynasty Song, LLC operates apartment buildings in San Mateo County, California. The company is associated with a multifamily residential property located at 260 San Marco Avenue in San Bruno. Dynasty Song sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-30482) on June 18, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and liabilities. The Debtor is represented by Arasto Farsad, Esq., at Farsad Law Office, P.C. DYNASTY TANG: Christopher Hayes Named Subchapter V Trustee ---------------------------------------------------------- The U.S. Trustee for Region 17 appointed Christopher Hayes as Subchapter V trustee for Dynasty Tang, LLC. Mr. Hayes will be paid an hourly fee of $470 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Hayes declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Christopher Hayes 23 Railroad Avenue, #1238 Danville, CA 94526 Phone: (925) 725-4323 Email: chayestrustee@gmail.com About Dynasty Tang LLC Dynasty Tang, LLC operates and manages multi-unit residential rental properties. Dynasty Tang sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-30481) on June 18, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and liabilities. The Debtor is represented by Arasto Farsad, Esq., at Farsad Law Office, P.C. ECUO REAL HOLDINGS: Seeks Chapter 11 Bankruptcy in New York ----------------------------------------------------------- On July 10, 2025, ECUO Real Holdings 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 ECUO Real Holdings Inc. ECUO Real Holdings Inc. is a real estate holding company based in Woodhaven, New York. ECUO Real Holdings Inc.sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-43309) on July 10, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Elizabeth S. Stong handles the case. The Debtors are represented by E. DuBois Raynor, Jr. at Civil Rights Consortium, Inc. ECUO REAL: Case Summary & 13 Unsecured Creditors ------------------------------------------------ Six affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- ECUO Real Holdings Inc. 25-43309 88-18 Jamaica Avenue Woodhaven, New York 11421 8818 Jamaica Inc. 25-43310 88-18 Jamaica Avenue Woodhaven, New York 11421 The New Tropical Deli 2, Inc. 25-43311 88-18 Jamaica Avenue Woodhaven, New York 11421 8818 Tropical Restaurante, Corp. 25-43313 88-18 Jamaica Avenue Woodhaven, New York 11421 Roosevelt Tropical Corp. 25-43315 88-18 Jamaica Avenue Woodhaven, New York 11421 88-18 Jamaica Avenue Realty, Corp 25-43316 88-18 Jamaica Avenue Woodhaven, New York 11421 Business Description: ECUO Real Holdings Inc., 8818 Jamaica, and 88-18 Jamaica Avenue Realty, Corp. are engaged in activities related to real estate, which may include property management, appraisal services, or other support functions within the real estate sector. The New Tropical Deli 2, Inc., 8818 Tropical Restaurante, Corp., and Roosevelt Tropical Corp., doing business as Tropical Restaurant, operate a chain of Latin cuisine restaurants in Queens, New York, offering indoor and outdoor dining, takeaway, and delivery services. Founded in 1996 in Woodhaven, Queens, the group specializes in Ecuadorian dishes rooted in traditional Latin flavors and has since expanded to multiple locations across the borough. A motion has been filed to reopen the previously dismissed Chapter 11 case of ECUO Foods, Inc. (Case No. 25-40252 (NHL)) and designate it as the lead case for joint administration of six affiliated debtors that filed on July 10, 2025. The original case was dismissed on or about June 11, 2025, due to the Debtor's failure to file required financial documents. Since then, ECUO Foods has completed the necessary filings in support of reorganization and the restoration of a related adversary proceeding. Chapter 11 Petition Date: July 10, 2025 Court: United States Bankruptcy Court Eastern District of New York Judges: Hon. Elizabeth S Stong (25-44309, 25-43313, and 25-43316) Hon. Nancy Hershey Lord (25-44310, 25-43311, and 25-43315) Debtors' Bankruptcy Counsel: Damond Carter, Esq. P.I. LEGAL GROUP, INC. BY INTERIM OF-COUNSEL 411 Theodore Fremd Ave Rye NY 10580 Tel: (888) 949-5572 Email: carter@pi-legal-group.com Debtors' Financial, Restructuring Advisor, and Accountant: Yuriy Payziyez YURIY & ASSOCIATES ECUO Real' Estimated Assets: $1 million to $10 million ECUO Real' Estimated Liabilities: $__ 8818 Jamaica Inc.'s Estimated Assets: $1 million to $10 million 8818 Jamaica Inc.'s Estimated Liabilities: $__ The New Tropical's Estimated Assets: $1 million to $10 million The New Tropical's Estimated Liabilities: $__ 8818 Tropical's Estimated Assets: $1 million to $10 million 8818 Tropical's Estimated Liabilities: $__ 88-18 Jamaica's Estimated Assets: $1 million to $10 million 88-18 Jamaica's Estimated Liabilities: $__ Laurie Michelle Illescas signed the petitions as CEO and president. Full-text copies of the petitions are available for free on PacerMonitor at: https://www.pacermonitor.com/view/PHKHF6Y/ECUO_Real_Holdings_Inc__nyebke-25-43309__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/PNU4N4Q/8818_Jamaica_Inc__nyebke-25-43310__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/PVUILUI/The_New_Tropical_Deli_2_Inc__nyebke-25-43311__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/P42XFXY/8818_Tropical_Restaurante_Corp__nyebke-25-43313__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/MGH7WFI/Roosevelt_Tropical_Corp__nyebke-25-43315__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/MP5MW3I/88-18_Jamaica_Avenue_Realty_Corp__nyebke-25-43316__0001.0.pdf?mcid=tGE4TAMA List of Debtors' 13 Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Mike Alonzo Rodriguez Labor Claim $500,000 c/o Pechman Law Group 488 Madison Avenue New York, NY 10022 Phone: (212) 583-9500 Email: pechman@pechmanlaw.com 2. Ruben Chavez Labor Claim $500,000 c/o Joseph Norinsberg, LLC 110 E. 59th St., Ste. 3200 New York, NY 10022 Phone: (212) 227-5700 Email: diego@norinsberglaw.com 3. City of New York Municipal $250,000 c/o Wilson Elser Moskowitz Assessment 1133 Westchester Ave White Plains, NY 10604 Phone: (914) 872-7335 Email: joel.vago@wilsonelser.com 4. Bank of New York Mellon Lien $201,242 c/o Seyfarth Shaw 620 Eighth Avenue New York, New York 10018 Phone: (212) 218-5563 Email: gakerman@seyfarth.com 5. Bank of New York Mellon Lien Unliquidated c/o Bronster, LLP 156 W. 56th Street, Ste. 902 New York, New York 10019 Phone: (212) 558-9300 Email: lkrechmer@bronsterllp.com 6. Bank of New York Mellon Lien $275,000 c/o Seyfarth Shaw 620 Eighth Avenue New York, New York 10018 Phone: (212) 218-5563 Email: gakerman@seyfarth.com 7. Alfredo Andrade Solis Labor Claim $500,000 c/o Levin-Epstein & Assocs. 60 E. 42nd St., Ste. 4700 New York, NY 10165 Phone: (212) 792-0046 Email joshua@levinepstein.com 8. Lenin Galindo Labor Claim $75,000 c/o CSM Legal 60 E. 42nd St., Ste. 4510 New York, NY 10165 Phone: (212) 317-1200 Email: catalina@csm-legal.com Catalina Sojo, Esq 9. NYS Dep't of Labor Labor Claim $4,000,000 Harriman State Ofc. Campus Bldg. 12, Rm. 508 Albany, New York 12240 Phone: (518) 485-2191 Email: chris.white@labor.ny.gov 10. Juan Lynch Lien $159,725 c/o Raskin Kremins 160 Broadway, 4th FL New York, NY 10038 Phone: (212) 587-3434 Email: wchang@raskrem.com 11. Julio Alberto Gualpa Labor Claim $100,000 c/o Helen Dalton & Assocs. 80-02 Kew Gardens Rd. Ste. 601, Kew Gardens, NY 11375 Phone: (718)263-9591 Email: HelenDaltonPC@HelenDalton.com 12. Arely Llerena Labor Claim $500,000 c/o David Stein, Esq. Samuel & Stein 1441 Broadway, Ste. 6085 NY, NY 10018 Samuel & Stein 1441 Broadway Ste. 6085 NY, NY 10018 Phone: (212) 563-9884 13. Ohlert-Ruggiere, Inc., Lien Unliquidated 88-11 Jamaica Avenue Woodhaven, NY 11421 ELK HOME: Shuts Down, Liquidates w/ No Bankruptcy ------------------------------------------------- Kirk O'Neil of The Street reports that Elk Home, a prominent supplier of furniture and interior lighting to major retailers, is shutting down operations and liquidating all of its assets and inventory. As of the latest update, the company has not filed for bankruptcy. On July 7, 2025, the Nesquehoning, Pennsylvania-based company announced it had retained GA Group, a firm specializing in asset disposition, appraisals, and real estate services, to manage the complete sell-off. The closure brings an end to Elk Home's more than four decades in the industry. About Elk Home Elk Home is a renowned supplier of furniture and interior lighting to major retailers. ELMA TRANSPORT: Gets OK to Obtain DIP Financing From TBK Bank ------------------------------------------------------------- Elma Transport Inc. received interim approval from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, to use cash collateral and obtain credit through a factoring agreement with TBK Bank, SSB. The interim order signed by Judge Janet Baer authorized the Debtor to continue to operate under the factoring agreement, as supplemented by a post-petition agreement it entered into with TBK Bank, doing business as Triumph. This authorization expires on July 30. The factoring agreement is a pre-bankruptcy agreement entered into by the Debtor and TBK Bank in 2023, which entitled the secured creditor to, among other things, purchase the Debtor's accounts arising from the sales of goods or transportation services provided to its customers. Pursuant to the factoring agreement, TBK Bank will make advances and provide other financial accommodations to the Debtor in exchange for purchasing its accounts. As security for the Debtor's post-petition obligations under the factoring agreement, TBK Bank will be granted a perfected first and senior ownership interest in all purchased accounts. In addition, the secured creditor will be granted a first and senior priority security interest in and lien on certain assets acquired by the Debtor after its Chapter 11 filing. Meanwhile, as protection for the Debtor's pre-bankruptcy obligations and for any diminution in the value of its interests in the Debtor's pre-bankruptcy assets, TBK Bank will be granted a perfected first and senior security interest in and liens on the Debtor's post-petition assets including cash collateral, with the same validity, priority and extent as the bank's pre-bankruptcy liens. As of the petition date, the Debtor owed $768,276.16 to TBK Bank, which amount excludes certain fees and costs that the bank is entitled to recover under the factoring agreement. A final hearing will be held on July 30. About Elma Transport Inc. Elma Transport, Inc. is an Illinois-based trucking company. Elma Transport sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-09866) on June 27, 2025. In its petition, the Debtor reported assets between $100,001 and $500,000 and liabilities between $500,001 and $1 million. Judge Janet S. Baer handles the case. The Debtor is represented by Saulius Modestas, Esq., at Modestas Law Offices, P.C. TBK Bank, SSB, as secured creditor, is represented by: Jeffrey P. Monberg, Esq. Quarles & Brady, LLP 155 N. Wacker Drive, Suite 3200 Chicago, IL 60606 Tel: (312) 715-5162 jeff.monberg@quarles.com ENDO INT'L: Plan Administrator's Bid to Reclassify Claims Okayed ---------------------------------------------------------------- The Honorable James L. Garrity, Jr. of the United States Bankruptcy Court for the Southern District of New York sustains the Fifth Omnibus Objection of Patrick J. Bartels to certain claims in the Chapter 11 cases. Bartels is the Plan Administrator of the remaining debtors of Endo International plc and its debtor-affiliates. The Plan Administrator is seeking the entry of an order pursuant to sections 105(a), 502, and 558 of the Bankruptcy Code, and Rule 3007 of the Federal Rules of Bankruptcy Procedure, reclassifying certain secured claims to a specified Trust Channeled Claim as listed on Exhibits 1-5 to the Proposed Order. The Plan Administrator submitted the declaration of Erin McKeighan in support of the Objection. The Plan Administrator has identified Claims that assert a priority claim status that is not supported by the asserted Proof of Claim or supporting documentation under either the Bankruptcy Code or the Plan. They are listed on Exhibits 1-5 of the Proposed Order. He argues none of these Claims is entitled to the status as filed and that these Claims should be reclassified as set forth on Exhibits 1-5 to the Proposed Order, whether liquidated or unliquidated. He seeks to have these claims modified under section 502(b)(1) of the Bankruptcy Code and Bankruptcy Rule 3007-1. The Plan Administrator confirms that the relevant Claimant retains a Claim that incorporates the entire liability asserted by such Claimant, subject to compliance with the Fourth Amended Plan and/or the applicable trust distribution procedures. This Objection simply reclassifies such Claim to its appropriate status under the Bankruptcy Code as set forth in the Proposed Order. The Plan Administrator seeks reclassification of five groups of claims: * The Reclassified Ranitidine Claims, as identified on Exhibit 1 to the Proposed Order. * Reclassified Generics Price Fixing Claims as identified on Exhibit 2 to the Proposed Order. * Reclassified PI Opioid Claims as identified on Exhibit 3 to the Proposed Order. * Reclassified Other General Unsecured Claims as identified on Exhibit 4 to the Proposed Order. * Reclassified Settling Co-Defendant Claims as identified on Exhibit 5 to the Proposed Order The Court finds the Plan Administrator has refuted the prima facie validity and/or classification of the Claims. A copy of the Court's Memorandum Decision dated June 24, 2025, is available at https://urlcurt.com/u?l=8QJhhS from PacerMonitor.com. Counsel to the Plan Administrator Patrick J. Bartels: Brian P. Maloney, Esq. Catherine V. LoTempio, Esq. SEWARD & KISSEL LLP One Battery Park Plaza New York, NY 10004 E-mail: maloney@sewkis.com lotempio@sewkis.com About Endo International PLC Endo International plc (OTC: ENDPQ) is a generics and branded pharmaceutical company. It develops, manufactures, and sells branded and generic products to customers in a wide range of medical fields, including endocrinology, orthopedics, urology, oncology, neurology, and other specialty areas. On the Web: http://www.endo.com/ Endo International and certain of its subsidiaries initiated voluntary prearranged Chapter 11 proceedings (Bankr. S.D.N.Y. Lead Case No. 22-22549) on Aug. 16, 2022. On May 25, 2023, Operand Pharmaceuticals Holdco II Limited and Operand Pharmaceuticals Holdco III Limited each filed a voluntary Chapter 11 petition also in the U.S. Bankruptcy Court for the Southern District of New York. On May 31, 2023, Operand Pharmaceuticals II Limited and Operand Pharmaceutical III Limited each filed a voluntary Chapter 11 petition also in the Southern District of New York. The Company's cases are jointly administered before the Honorable James L. Garrity, Jr. Endo initiated the financial restructuring process after reaching an agreement with a group of its senior debtholders on a transaction that would substantially reduce outstanding debt, address remaining opioid and other litigation-related claims, and best position Endo for the future. This would allow the Company to advance its ongoing business transformation from a strengthened financial position to create compelling value for its stakeholders over the long term. Endo's India-based entities are not part of the Chapter 11 proceedings. The Company has filed recognition proceedings in Canada and expects to file similar proceedings in the United Kingdom and Australia. The Debtors tapped Skadden, Arps, Slate, Meagher & Flom, LLP as legal counsel; PJT Partners, LP as investment banker; and Alvarez & Marsal North America, LLC as financial advisor. Kroll Restructuring Administration, LLC, is the claims agent and administrative advisor. A Website dedicated to the restructuring is at http://www.endotomorrow.com/ Roger Frankel, the legal representative for future claimants in the Chapter 11 cases, tapped Frankel Wyron LLP and Young Conaway Stargatt & Taylor, LLP, as legal counsels, and Ducera Partners, LLC, as investment banker. ENERGY FOCUS: CEO Buys $200K Worth of Shares in Private Placement ----------------------------------------------------------------- Energy Focus, 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 its Chief Executive Officer and Chief Financial Officer, Mr. Chiao Chieh (Jay) Huang, pursuant to which the Company agreed to issue and sell in a private placement an aggregate of 110,497 shares of the Company's common stock, par value $0.0001 per share, for a purchase price per share of $1.81, totaling $200,000. The Private Placement was priced higher than the closing price of the Common Stock on The Nasdaq Stock Market LLC on the day of immediately prior to the signing of the Purchase Agreement. The issuance and sale of the Shares pursuant to the Purchase Agreement are not being registered under the Securities Act of 1933, as amended, and were made pursuant to certain exemptions from registration, including Section 4(a)(2) of the Securities Act, in reliance on the representations and covenants of the Purchaser under the Purchase Agreement. About Energy Focus Solon, Ohio-based Energy Focus -- http://www.energyfocus.com-- engages primarily in the design, development, manufacturing, marketing, and sale of energy-efficient lighting systems and controls. The Company develops, markets, and sells high-quality light-emitting diode ("LED") lighting and controls products in the commercial market and military maritime market. Columbus, Ohio-based GBQ Partners, LLC, the Company's auditor since 2019, issued a "going concern" qualification in its report dated March 25, 2025, attached in the Company's Annual Report on Form 10-K for the year ended Dec. 25, 2024, 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. EPIC MEDICAL: Seeks Chapter 11 Bankruptcy in Texas -------------------------------------------------- On July 12, 2025, Epic Medical Services AZ LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Epic Medical Services AZ LLC Epic Medical Services AZ LLC is a healthcare services provider operating under NAICS code 6211 (Offices of Physicians). Epic Medical Services AZ LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-42537) on July 12, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtors are represented by Vartabedian Hester & Haynes LLP. ERIE KASH: Gets Court OK to Use Cash Collateral ----------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Pennsylvania issued an order authorizing Erie Kash Out Properties, LLC to use the cash collateral of its secured creditors. The court order authorized the Debtor to utilize the cash collateral of U.S. Bank Trust, N.A. and the U.S. Small Business Administration in accordance with its monthly budget. Both creditors consented to the use of their cash collateral. As protection, the Debtor was ordered to make monthly mortgage payments to U.S. Bank Trust, plus $250 per month due with each mortgage payment; and a monthly payment of $529 to SBA. The Debtor is a real estate holding company that derives its income from rental payments made by tenants of its property. The rents received by the Debtor constitute cash collateral. SBA asserts a lien on the Debtor's post-petition rents pursuant to a UCC-1 financing statement, securing a loan with an outstanding balance of $118,265 as of May 2. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/LhkfB from PacerMonitor.com. About Erie Kash Out Properties Erie Kash Out Properties, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. Pa. Case No. 25-11729) on May 2, 2025, listing $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Judge Ashely M Chan presides over the case. Brad J. Sadek, Esq., at Sadek Law Offices, LLC represents the Debtor as bankruptcy counsel. ES PARTNERS: Court Extends Cash Collateral Access to Aug. 12 ------------------------------------------------------------ ES Partners, Inc. received third interim approval from the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach Division, to use cash collateral. The third interim order penned by Judge Mindy Mora authorized the Debtor to use cash collateral until August 12 to pay the expenses set forth in its budget, with a 10% variance allowed. The budget projects monthly expenses of $349,991.71. Truist Bank, Fox Funding Group, LLC and ODK Capital will be granted a replacement lien on property acquired by the Debtor after its bankruptcy filing similar to their pre-bankruptcy collateral. In case the replacement liens are not enough to protect Truist Bank's interest, the bank will receive a superpriority administrative expense claim. As further protection, Truist will continue to receive monthly payments of $8,000. The payments started in May. The next hearing is set for August 12. Of the three creditors claiming a security interest in the Debtor's assets, Truist is in first priority and has a lien on all of the Debtor's assets. The bank was owed approximately $1.209 million as of the petition date. The estimated value of the secured assets at the time of the filing of the case was approximately $821,000. About ES Partners Inc. ES Partners, Inc. operates a pharmacy delivery company. It operates out of a leased warehouse in Pompano Beach, Fla. ES Partners sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-14211) on April 17, 2025, listing up to $1 million in assets and up to $10 million in liabilities. Steven M. Easton, chief executive officer of ES Partners, signed the bankruptcy petition. Judge Mindy A. Mora oversees the case. Brian K. McMahon, Esq., at Brian K. McMahon, PA, represents the Debtor as legal counsel. Truist Bank, as lender, is represented by: Jay B. Verona, Esq. Shumaker, Loop & Kendrick, LLP 101 E. Kennedy Blvd., Suite 2800 Tampa, FL 33602 Phone (813) 229-7600 Fax (813) 229-1660 jverona@shumaker.com ESSENTIAL MINERALS: Seeks to Sell Chemical Mfg Business at Auction ------------------------------------------------------------------ Essential Minerals, LLC, seeks approval from the U.S. Bankruptcy Court for the District of Delaware, to sell substantially all Assets, free and clear of liens, interests, and encumbrances. David Klauder was appointed as the Subchapter V Trustee in the case. The Debtor is a limited liability company organized under the laws of the state of Delaware. The Debtor's corporate headquarters is located at 901 Lambson Ln, Suite A/B, New Castle, Delaware 19720. The Debtor was founded in October 2017. The Debtor's primary business is crafting, manufacturing, and refining naturally pure minerals, including calcium carbonate, calcium oxide, and calcium hydroxide, for the food and pharmaceutical sectors calcium carbonate. In late 2024, the Debtor's experienced a catastrophic failure of its roller mill, which is vital to the main production process of calcium carbonate. As a result, the Debtor had no choice but to halt manufacturing while the roller mill was repaired. The shut down has caused significant strain on the company and although the roller mill has since been repaired, the Debtor has been unable to restart its operations. In addition to the catastrophic failure and the delay in insurance payments, the Debtor's ability to restart operations has also been stymied by the actions of one of its creditors, Global Merchant Cash Inc., who has frozen the Debtor's bank accounts as part of its collection attempts. The Debtor aims to sell all Assets to Successful Bidder, after the Auction, if necessary, free and clear of liens, claims, interests, and encumbrances. The Debtor also seeks to authority of the assumption and assignment of certain executory contracts to the Successful Bidder. The Debtor believes a prompt Sale of the Assets represents the best alternative available for all stakeholders in this case. The Debtor requests that the Court approve the following general timeline: a. Contract Assumption Notice Deadline: Within five (5) business days of entry of an order approving the Bid Procedures. b. Contract Cure Objection Deadline: 4:00 p.m. (ET) fourteen (14) calendar days from service of the Contract Notice (as defined below), as the deadline to object to the cure amounts listed in the Contract Notice; c. Stalking Horse Bid Deadline: on or before 4:00 p.m. (ET), on the date that is the 7th day after entry of an order approving the Bid Procedures, as the deadline by which all Stalking Horse Bids must be received; d. Sale Objection Deadline: 4:00 p.m. (ET), on the date that is the 30th day after entry of an order approving the Bid Procedures, as the deadline to object to the Sale; e. Bid Deadline: on or before 12:00 p.m. (ET), on the date that is the 30th day after entry of an order approving the Bid Procedures, as the deadline by which bids for the Assets (as well as the deposit and all other documentation required under the Bid Procedures for Qualified Bidders (as defined in the Bid Procedures)) must be actually received (Bid Deadline); f. Auction: 10:00 a.m. (ET) on the second business day after the Bid Deadline, as the date and time the Auction, if needed, will be held at the offices of Gellert Seitz Busenkell & Brown, LLC, 1201 N. Orange St., 3rd Floor, Wilmington, DE 19801; g. Sale Hearing: on or before the third business day after the conclusion of the Auction, subject to the Court's availability, as the date and time for the Sale Hearing. In order to optimally and expeditiously solicit, receive, and evaluate bids in a fair and accessible manner, the Debtor has developed and proposed the Bid Procedures -- Each Bid must be a bid to purchase the Assets, or any subset thereof, and must clearly state which liabilities of the Debtor the Acceptable Bidder agrees to assume. -- Each Bid must be accompanied by a cash deposit in the amount equal to ten percent (10%) of the aggregate cash purchase price of the Bid to be held in an interest bearing escrow account to be identified and established by the Debtor. -- Each Bid must include duly executed, non-contingent transaction documents necessary to effectuate the transactions contemplated in the Bid, which shall include a schedule of assumed contracts to the extent applicable to the Bid, and a copy of the Purchase Agreement clearly marked to show all changes requested by the Acceptable Bidder (including those related to the Purchase Price and Assets to be acquired by such Acceptable Bidder), as well as all other material documents integral to such Bid. -- The Bid must identify the structure proposed for undertaking the Sale, including the specific Assets of the Debtor, the proposed steps to accomplish such acquisition, and any financial, legal, or tax considerations upon which the Bid's proposed structure relies. -- The Bid must specify whether it is intended to be structured in a tax-free manner or if any incremental tax liabilities will be incurred by the Debtor under the Bid. -- Any Stalking Horse Bid must be transmitted via email (in .pdf or similar format) or other means so as to be actually received by the Debtor, counsel to the Debtor, and the Debtor's advisors, on or before the date that is the 7th day after entry of an order approving the Bid Procedures at 4:00 p.m. (ET). -- Each bid must be transmitted via email (in .pdf or similar format) or other means so as to be actually received by the Debtor, counsel to the Debtor, and the Debtor's Auctioneer, on or before the date that is the 30th day after entry of an order approving the Bid Procedures at 4:00 p.m. (ET) -- If the Debtor does not receive at least two Qualified Bids, the Debtor will not conduct the Auction. -- The Debtor reserves its rights to modify the Bid Procedures in its reasonable business judgment in any manner that will best promote the goals of the bidding process. On or within five calendar days after entry of the Bid Procedures Order, the Debtor will cause the Sale Notice to be served on the following parties or their respective counsel, if known: (a) the United States Trustee for the District of Delaware (US Trustee); (b) the Subchapter V Trustee; (c) counterparties to the Contracts (Contract Counterparties); (d) all parties who have expressed a written interest in some or all of the Assets; (e) all parties who are known or reasonably believed, after reasonable inquiry, to have asserted any lien, encumbrance, claim, or interest in the Assets; (f) the Internal Revenue Service; (g) all applicable state and local taxing authorities; (h) all of the Debtor’s other creditors; (i) each governmental agency that is an interested party with respect to the Sale and transactions proposed thereunder; and (j) all parties that have requested or that are required to receive notice pursuant to Bankruptcy Rule 2002. The Debtor believes that the proposed Bid Procedures will promote active bidding from seriously interested parties and will elicit the highest or otherwise best offers available for the Assets. The proposed Bid Procedures will allow the Debtor to conduct the Sale in a controlled, fair, and open fashion that will encourage participation by financially capable bidders who will offer the best value for the Assets and who can demonstrate the ability to close a transaction. About Essential Minerals, LLC Established in 2017, Essential Minerals, LLC specializes in the production of naturally pure calcium products for the food and pharmaceutical industries. It is based in New Castle, Del. Essential Minerals filed Chapter 11 petition (Bankr. D. Del. Case No. 25-10430) on March 10, 2025, listing total assets of $5,983,878 and total liabilities of $11,962,729. Judge Thomas M. Horan handles the case. Gellert Seitz Busenkell & Brown, LLC serves as the Debtor's counsel. EXTON OPERATING: Court Extends Cash Collateral Access to Aug. 10 ---------------------------------------------------------------- Exton Operating Group, Inc. received fourth interim approval from the U.S. Bankruptcy Court for the Eastern District of Pennsylvania to use cash collateral of the U.S. Small Business Administration and Performance Food Group, Inc. The fourth interim order authorized the Debtor to use the secured creditors' cash collateral through August 10 to pay the expenses set forth in its budget. The budget shows total operational expenses of $3,200 for the week ending July 13; $13,305.73 for the week ending July 20; $3,300 for the week ending July 27; and $14,116.67 for the week ending August 3. As protection for the Debtor's use of their cash collateral, both secured creditors were granted a replacement lien on the Debtor's post-petition collateral to the same extent and with the same validity and priority as their pre-bankruptcy lien. In addition, SBA will receive $800 in payments during the interim period as further protection. In case these protections are insufficient, the creditors will have superpriority claims under Section 507(b) of the Bankruptcy Code. The next hearing is scheduled for July 23. Performance Food Group has a UCC-1 against the Debtor and a lien on its assets, including cash. It is owed approximately $55,000. Meanwhile, SBA made a loan to the Debtor, which is secured by a lien on all of the Debtor's assets. As of the petition date, the Debtor owes approximately $150,000 on account of this loan. About Exton Operating Group Inc. Exton Operating Group, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Pa. Case No. 25-11126) on March 24, 2025, listing up to $500,000 in both assets and liabilities. Emad Elgeddawy, president of Exton Operating Group, signed the petition. Judge Ashely M. Chan oversees the case. The Debtor is represented by Daniel S. Stedman, Esq., and Albert Anthony Ciardi, III, Esq., at Ciardi Ciardi & Astin. EYENOVIA INC: Appoints Hyunsu Jung as CIO, Reconstitutes Board -------------------------------------------------------------- Eyenovia, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Board of Directors appointed Hyunsu Jung to the position of Chief Investment Officer and to serve on the Board, effective immediately. Mr. Jung will serve as a director until the Company's 2025 annual meeting of stockholders and thereafter until his successor has been elected and qualified or until his earlier death, resignation or removal. Hyunsu Jung, age 29, has served as the Company's Chief Investment Officer and as a director since June 2025. Prior to that, from June 2021 to June 2025, he was a Portfolio Manager at DARMA Capital, an $1B+ asset manager registered with the CFTC and NFA. Previously, he was a Consultant at EY-Parthenon from October 2018 to June 2021, where he drove Finance and Digital Transformation for major enterprise M&A deals. Mr. Jung earned his B.A. from Vassar College in 2018. Mr. Jung was appointed to his positions pursuant to the terms of the Purchase Agreement. The Purchase Agreement provides that to the extent that at any time during the 36 months following the Closing Date (assuming Hyperion DeFi Holdings, LLC ("Hyperion") continues to hold at least 50% of the shares of Common Stock underlying the Preferred Shares and the Purchaser Warrants originally issued pursuant to the Purchase Agreement), Mr. Jung no longer serves as a director or the Company's Chief Investment Officer, Hyperion shall have the right to nominate a replacement to fill either or both of those roles and the Company shall use its commercially reasonable efforts to have the replacement(s) appointed as soon as reasonably practicable. In addition, the Purchase Agreement provides that Hyperion shall have the ability to nominate a director to serve as the Chair of the Board. There is no family relationship between Mr. Jung and any other director or executive officer of the Company. In connection with his appointment as Chief Investment Officer, Mr. Jung entered into an Executive Employment Agreement with the Company, pursuant to which the Company will pay Mr. Jung an initial salary of $250,000. Mr. Jung received an inducement equity award consisting of 500,000 shares of Common Stock, which were granted in accordance with Nasdaq Listing Rule 5635(c)(4). Mr. Jung also received an aggregate of 1,000,000 restricted stock units, to vest in two equal installments subject to certain milestones being achieved and any necessary approvals by the Board or the Company's stockholders. Mr. Jung's term of employment will extend four years or until earlier termination under the Jung Employment Agreement. If Mr. Jung's employment is terminated by the Company for cause, by the Company without cause within the first six months of his employment, by Mr. Jung without good reason or because of Mr. Jung's disability or death, Mr. Jung is entitled to receive Accrued Obligations. If Mr. Jung's employment is terminated by the Company without cause or by Mr. Jung for good reason after the first six months of his employment, he is entitled to receive: (i) Accrued Obligations, (ii) 12 months of his then-current annual base salary, less applicable withholdings and (iii) continuation of up to 12 months of group health insurance benefits. In the event of a qualifying termination within 12 months following any change in control of the Company, Mr. Jung would be eligible for similar benefits. Director Resignations: On June 17, 2025, Sean Ianchulev, M.D., Charles Mather IV (Chair) and Ram Palanki, Pharm. D., resigned from the Board and their respective positions on the committees of the Board. These resignations occurred by agreement with the Purchasers in connection with the Private Placement, pursuant to which the Company agreed to reconstitute its Board with five members, including Mr. Jung and Mr. Rowe. Ellen Strahlman, M.D., Michael Geltzeiler, and Rachel Jacobson have remained on the Board and will comprise the members of the Company's audit committee, compensation committee and nominating and governance committee going forward. Amendment to Employment Agreement: Effective June 17, 2025, the Company and Michael Rowe entered into an Amended and Restated Employment Agreement (the "Rowe Employment Agreement"). The Rowe Employment Agreement provides Mr. Rowe with the option to retire from his positions as Director, President and Chief Executive Officer of the Company after November 1, 2025 and still retain severance benefits under Section 4(c) of the Rowe Employment Agreement. The other material terms of the Rowe Employment Agreement remain unchanged. About Eyenovia New York, N.Y.-based Eyenovia, Inc. is an ophthalmic technology company commercializing Mydcombi (tropicamide and phenylephrine HCL ophthalmic spray) for inducing mydriasis for routine diagnostic procedures and in conditions where short-term pupil dilation is desired, preparing for the commercialization of clobetasol propionate ophthalmic suspension 0.05% ("clobetasol propionate"), for the treatment of post-operative inflammation and pain following ocular surgery, and developing the Optejet delivery system both for use in combination with its own drug-device therapeutic programs and for out-licensing for use in combination with therapeutics for additional indications. The Company's aim is to improve the delivery of topical ophthalmic medication through the ergonomic design of the Optejet, which facilitates ease-of-use and delivery of a more physiologically appropriate medication volume, with the goal to reduce side effects and improve tolerability and introduce digital health technology to improve therapy compliance and ultimately medical outcomes. New York, N.Y.-based Marcum LLP, the Company's auditor since 2020, issued a "going concern" qualification in its report dated April 15, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of Dec. 31, 2024, the Company had $3.7 million in total assets, $16.8 million in total liabilities, and a total stockholders' deficit of $13.1 million. EYENOVIA INC: Closes $50M Private Placement for HYPE Token ---------------------------------------------------------- Eyenovia, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that it entered into a Securities Purchase Agreement for a private placement with institutional accredited investors. The closing of the Private Placement occurred on June 20, 2025. The Company intends to use the net proceeds from the Private Placement to build a reserve of a token called HYPE, which is native to the decentralized digital asset exchange and Layer-1 blockchain, Hyperliquid. As part of its new cryptocurrency treasury strategy, the Company intends to implement a HYPE staking program. In parallel, the Company intends to continue to focus on its existing business, including development of the Gen-2 Optejet User Filled Device. Pursuant to the Purchase Agreement, the Purchasers bought an aggregate of 5,128,205 shares of the Company's Series A Non-Voting Preferred Stock, par value $0.0001 per share and warrants to purchase 200% of the number of shares of the Company's common stock, par value $0.0001 per share issuable upon full conversion of the Preferred Shares, for an aggregate purchase price of approximately $50,000,000. Each Preferred Share is convertible into three shares of Common Stock. The powers, preferences, rights, qualifications, limitations and restrictions applicable to the Preferred Shares are set forth in the Certificate of Designation. The Purchaser Warrants will be exercisable following the day that is six months and one day after the date of issuance and may be exercised for five years from the initial exercise date at an exercise price of $3.25 per share. The exercise price and number of shares of Common Stock issuable upon exercise of the Purchaser Warrants will be subject to adjustment in the event of stock dividends, stock splits, recapitalization or similar events affecting the Common Stock. A holder may not exercise any portion of such holder's Purchaser Warrants to the extent that the holder would own more than 4.99% of the Company's outstanding Common Stock immediately after exercise, which percentage may be increased by the holder to a maximum of 19.99%. The Purchase Agreement contained customary representations and warranties of the Company, on the one hand, and the Purchasers, on the other hand. Also on June 17, 2025, the Company entered into a Registration Rights Agreement with the Purchasers, which provides that the Company will register the resale of the shares of Common Stock issuable upon conversion of the Preferred Shares and exercise of the Purchaser Warrants. The Company is required to prepare and file a registration statement with the Securities and Exchange Commission no later than 20 business days following the date of the Registration Rights Agreement and to use its commercially reasonable efforts to have the registration statement declared effective as soon as practicable after it is filed, subject to certain exceptions. The Company has also agreed to, among other things, indemnify each Purchaser, its officers, directors, agents and each person who controls such Purchaser under the registration statement from certain liabilities and pay all reasonable expenses (excluding any underwriting discounts and commissions) incident to the Company's obligations under the Registration Rights Agreement. Chardan Capital Markets LLC acted as placement agent to the Company in connection with the Private Placement. As compensation for its services, the Company issued to Chardan 307,692 shares of Series A Preferred Stock and warrants to purchase 1,846,153 shares of Common Stock at an exercise price of $3.25 per share. The securities issued and sold to the Purchasers under the Purchase Agreement, and the securities issued to Chardan in connection with its services as placement agent, were not registered under the Securities Act of 1933, as amended in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D promulgated thereunder, or under any state securities laws. The Company relied on this exemption from registration based in part on representations made by the Purchasers or Chardan, as applicable. The securities (including the Common Stock underlying such securities) may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Following the closing of the Private Placement, the Company has 5,104,355 shares of Common Stock issued and outstanding and 54,027,429 shares of Common Stock issued and outstanding on a pro forma basis, which gives effect to the full conversion of the 5,435,898 outstanding shares of Series A Preferred Stock and the exercise of the Purchaser Warrants and the Placement Agent Warrants as of the Closing Date, without regard to beneficial ownership limitations that may limit the ability of certain holders of Series A Preferred Stock to convert such shares to Common Stock or the ability of certain holders of Purchaser Warrants or Placement Agent Warrants to exercise such warrants at such time. About Eyenovia New York, N.Y.-based Eyenovia, Inc. is an ophthalmic technology company commercializing Mydcombi (tropicamide and phenylephrine HCL ophthalmic spray) for inducing mydriasis for routine diagnostic procedures and in conditions where short-term pupil dilation is desired, preparing for the commercialization of clobetasol propionate ophthalmic suspension 0.05% ("clobetasol propionate"), for the treatment of post-operative inflammation and pain following ocular surgery, and developing the Optejet delivery system both for use in combination with its own drug-device therapeutic programs and for out-licensing for use in combination with therapeutics for additional indications. The Company's aim is to improve the delivery of topical ophthalmic medication through the ergonomic design of the Optejet, which facilitates ease-of-use and delivery of a more physiologically appropriate medication volume, with the goal to reduce side effects and improve tolerability and introduce digital health technology to improve therapy compliance and ultimately medical outcomes. New York, N.Y.-based Marcum LLP, the Company's auditor since 2020, issued a "going concern" qualification in its report dated April 15, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of Dec. 31, 2024, the Company had $3.7 million in total assets, $16.8 million in total liabilities, and a total stockholders' deficit of $13.1 million. EYENOVIA INC: Designates 6% Series A Preferred Stock ---------------------------------------------------- Eyenovia, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that it filed a Certificate of Designation of Preferences, Rights and Limitations with the Secretary of State of the State of Delaware to provide for the designation of shares of the Series A Preferred Stock, which became effective upon filing. Holders of shares of Series A Preferred Stock are entitled to receive dividends on shares of Series A Preferred Stock equal to an annual rate of 6%, payable quarterly in arrears in cash or, at the Company's option, shares of Common Stock. Except as otherwise required by law, the Series A Preferred Stock does not have voting rights. However, as long as any shares of Series A Preferred Stock are outstanding, the Company will not, without the affirmative vote of the holders of a majority of the then outstanding shares of the Series A Preferred Stock: (a) agree to a any consolidation or merger, consolidation, amalgamation or arrangement to which the Company is a party, or to any sale or transfer of all or substantially all of the assets of the Company, (b) alter or change adversely the powers, preferences or rights given to the Series A Preferred Stock, (c) alter or amend the Certificate of Designation, (d) amend its certificate of incorporation or other charter documents in any manner that adversely affects any rights of the holders of Series A Preferred Stock, (e) increase or decrease the size of the Board, or (f) incur additional indebtedness other than presently outstanding indebtedness. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary that is not a Fundamental Transaction (as defined in the Certificate of Designation), the holders of shares of Series A Preferred Stock will be entitled to receive out of the assets, whether capital or surplus, of the Company, before any payment shall be made to the holders of Common Stock by reason of their ownership thereof, an amount per share equal to the greater of (i) the applicable purchase price per share of Series A Preferred Stock originally paid by the Holder, plus any dividends declared but unpaid thereon, and (ii) the same amount that a holder of Common Stock would receive if the Series A Preferred Stock were fully converted to Common Stock (disregarding for such purpose any beneficial ownership limitations). Each share of Series A Preferred Stock will be convertible at any time and from time to time, at the option of the holder, into a number of shares of Common Stock equal to the Conversion Ratio (as defined in the Certificate of Designation), subject to certain limitations, including that a holder of Series A Preferred Stock is prohibited from converting shares of Series A Preferred Stock into shares of Common Stock if, as a result of such conversion, such holder, together with its affiliates, would beneficially own more than 4.99% of the total number of shares of Common Stock issued and outstanding immediately after giving effect to such conversion. About Eyenovia New York, N.Y.-based Eyenovia, Inc. is an ophthalmic technology company commercializing Mydcombi (tropicamide and phenylephrine HCL ophthalmic spray) for inducing mydriasis for routine diagnostic procedures and in conditions where short-term pupil dilation is desired, preparing for the commercialization of clobetasol propionate ophthalmic suspension 0.05% ("clobetasol propionate"), for the treatment of post-operative inflammation and pain following ocular surgery, and developing the Optejet delivery system both for use in combination with its own drug-device therapeutic programs and for out-licensing for use in combination with therapeutics for additional indications. The Company's aim is to improve the delivery of topical ophthalmic medication through the ergonomic design of the Optejet, which facilitates ease-of-use and delivery of a more physiologically appropriate medication volume, with the goal to reduce side effects and improve tolerability and introduce digital health technology to improve therapy compliance and ultimately medical outcomes. New York, N.Y.-based Marcum LLP, the Company's auditor since 2020, issued a "going concern" qualification in its report dated April 15, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of Dec. 31, 2024, the Company had $3.7 million in total assets, $16.8 million in total liabilities, and a total stockholders' deficit of $13.1 million. EYENOVIA INC: Extends Maturity of Loan With Avenue Capital to 2028 ------------------------------------------------------------------ Eyenovia, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that it entered into the Fourth Amendment to the Supplement to that certain Loan and Security Agreement, dated November 22, 2022 with Avenue Capital Management II, L.P., as administrative agent and collateral agent, Avenue Venture Opportunities Fund, L.P., and Avenue Venture Opportunities Fund II, L.P. (together with Avenue 1, the "Lenders"). As previously disclosed, the Loan and Security Agreement, as supplemented by the Supplement, provides for term loans in an aggregate principal amount of up to $15 million to be delivered in multiple tranches. The Fourth Amendment, among other things, extends the maturity date of the loans to July 1, 2028; provides for an interest-only period from July 1, 2025 until January 31, 2027; reduces the interest rate from 12.0% to 8.0%, payable half in cash and half in kind; eliminates the option of the Lenders to convert an aggregate amount of up to $10 million of the loans outstanding into shares of Common Stock; and provides the Company with the option to prepay debt owed under the Loan and Security Agreement in part, subject to certain limitations. In connection with the Fourth Amendment, the Company issued to the Lenders warrants to purchase an aggregate of 350,000 shares of Common Stock at an exercise price of $4.00 per share. The issuance of the Lender Warrants was not registered under the Securities Act in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act or under any state securities laws. The Company relied on this exemption from registration based in part on representations made by the Lenders. The securities (including the Common Stock underlying such securities) may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. About Eyenovia New York, N.Y.-based Eyenovia, Inc. is an ophthalmic technology company commercializing Mydcombi (tropicamide and phenylephrine HCL ophthalmic spray) for inducing mydriasis for routine diagnostic procedures and in conditions where short-term pupil dilation is desired, preparing for the commercialization of clobetasol propionate ophthalmic suspension 0.05% ("clobetasol propionate"), for the treatment of post-operative inflammation and pain following ocular surgery, and developing the Optejet delivery system both for use in combination with its own drug-device therapeutic programs and for out-licensing for use in combination with therapeutics for additional indications. The Company's aim is to improve the delivery of topical ophthalmic medication through the ergonomic design of the Optejet, which facilitates ease-of-use and delivery of a more physiologically appropriate medication volume, with the goal to reduce side effects and improve tolerability and introduce digital health technology to improve therapy compliance and ultimately medical outcomes. New York, N.Y.-based Marcum LLP, the Company's auditor since 2020, issued a "going concern" qualification in its report dated April 15, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of Dec. 31, 2024, the Company had $3.7 million in total assets, $16.8 million in total liabilities, and a total stockholders' deficit of $13.1 million. FELTRIM BALMORAL: To Sell Florida Properties to Bellavista Dev't ---------------------------------------------------------------- Enclave at Balmoral, LLC, and its affiliates The Enclave at Balmoral LLC and Balmoral Estates LP, along with Applicable Debtor, The Enclave at Balmoral LLC, seek approval from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to sell Property, free and clear of all liens, claims, and encumbrances. The Enclave owns several parcels of real estate which the buyer proposes to develop into Parcel 1 – senior living apartments and cottages (former soccer field), Parcel 2 – senior living units (6 vacant platted lots) and Parcel 3 – vacant land. The Real Property is not currently income producing. For additional visualization of the Real Property, a sample video of the complex can be found accessing the following link: https://www.youtube.com/watch?v=BH2f9wK7NbQ and sample video of a representative home can be found accessing the following link: https://www.youtube.com/watch?v=BH2f9wK7NbQ The Debtor's primary creditor is Seacoast National Bank in connection with two cross collateralized mortgages against The Enclave and co-Debtor, Feltrim Balmoral Estates, LLC, in the approximate amount of $7,195,264.00. Co-Debtor, Balmoral Estates, LP guaranteed the Seacoast Loan on behalf of The Enclave and FBE. As a result, the Seacoast Loan is secured as to The Enclave and FBE, and, unsecured as to BELP. Non-debtor, Garrett Kenny, also guaranteed the Seacoast Loan. Seacoast is the successor to the Seacoast Loan from Freedom Bank. As security for these loans, Seacoast asserts a mortgage interest and security interest in all assets of The Enclave and FBE. The United States Department of Agriculture (USDA) sponsored the Seacoast Loan and has provided the customary governmental guaranties under the USDA’s Rural Development program. The Debtor has been engaged in and continues to be engaged in efforts to market the Assets and has determined that the proposed purchase price offered by the buyer is reasonable, represents fair market value, and the proposed sale is in the best interest of the estate. The sale of the Assets can be summarized as follows: -- Buyer: Bellavista Development Group, LLC-a Florida LLC -- Purchase Price: $4,000,000.00 -- Escrow Agent: Greenspoon Marder, LLP -- Deposit: $50,000.00 -- Due Diligence Period: 90 Days from Effective Date 3.2 -- Closing 30 Days after DD Period -- Effective Date: Approval by the Court As part of the closing, the Debtor seeks authority to pay any customary closing costs and fees associated with the sale. In addition, the Debtor will pay secured lenders to the Assets in the same priority order as their recorded instruments. The lenders are summarized as follows: Fully Secured: i. The Polk County Tax Collector in the approximate amount of $68,181.33 (fully secured). ii. RTLF-AI, LLC in the approximate amount of $13,700.34 (fully secured). iii. RAM Tax Lien Fund II in the approximate amount of $12,981.72 (fully secured). iv. Keys Funding, LLC in the approximate amount of $37,376.81 (fully secured). Unsecured: v. Seacoast National Bank in the approximate amount of $7,195,263.84 (undersecured as to this particular Real Property). vi. 4H Plumbing, Inc. in the approximate amount of $5,910.50 (unsecured). vii. Bellavista Building Group, Inc. in the approximate amount of $775,512.64 (unsecured). viii. Cemex Construction Materials of Florida, LLC in the approximate amount of $7,816.01 (unsecured). ix. ILC Construction, Inc. in the approximate amount of $62,216.08 (unsecured). x. Trekker Distributor in the approximate amount of $53,705.70 (unsecured). About Feltrim Balmoral Estates Feltrim Balmoral Estates, LLC owns a clubhouse located at 124 Kenny Blvd., Haines City, Fla., having a fair value of $3 million. Feltrim Balmoral Estates and its affiliates filed their voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02122) on April 17, 2024. The case is jointly administered in Case No. 24-02122. In the petitions signed by Garrett Kenny, owner and manager, Feltrim Balmoral Estates disclosed $4,657,697 in assets and $16,239,519 in liabilities; The Enclave At Balmoral, LLC disclosed $5,091,844 in assets and $10,565,256 in liabilities; and Balmoral Estates, LP listed $14,327,306 in assets and $25,909,466 in liabilities. Judge Catherine Peek McEwen oversees the case. Alberto F. Gomez Jr., Esq., at Johnson Pope Bokor Ruppel & Burns LLP, is the Debtors' counsel. FIRST AMERICAN: Orlando Property Sale to Watson Real Estate OK'd ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, has approved First American Capital Corporation to sell property, free and clear of liens, claims, and encumbrances. The Debtor is a Florida corporation that was formed in December 1984. The Debtor owns real property located at 219 Pasadena Place, Orlando, Florida 32803. The Real Property is a commercial office building that is approximately 1,500 square feet. The Real Property is leased to Watson Real Estate & Management, Inc. The Court has authorized the Debtor to sell the Property to Watson Real Estate & Management, Inc. or such higher bidder as outlined and detailed below in The Publication Auction Procedures for a purchase price of an amount sufficient to satisfy the first mortgage held by Creditor, Constitution Credit, LLC, in full, and any applicable outstanding taxes encumbering the Property. The purchase price of the Property shall be $434,000. The Debtor is authorized to close, consummate, and comply with the Sale Agreement for the sale and transfer of the Real Property, as set forth in the Sale Agreement. The Real Property shall be purchased "as is" and free and clear of, liens, claims, and interest, security interests of any kind. The Net Sale Proceeds shall be held in the Debtor's DIP account or the undersigned counsel’s Trust Account pending further Order from this Court. The liens of the Orange County Tax Collector, Constitution Credit, LLC, and LRE Orlando LLC shall attach to the Net Sale Proceeds in the same order, priority, validity and extent as existed in the Property as of the Petition Date. The only credit permitted at closing shall be for any returned or unearned premium from the cancellation of Constitution Credit, LLC.’s forced place hazard insurance policy. No other credit or deductions will apply. The Debtor shall provide a copy of the closing statement from the sale of the property to the office of the United States Trustee within seven days of consummation of the sale. About First American Capital Corporation First American Capital Corporation is a Single Asset Real Estate (as defined in 11 U.S.C. Sec. 101(51B)). First American Capital Corporation sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05372) on Oct. 2, 2024. In the petition filed by Barry Watson, as president, the Debtor estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. The Honorable Bankruptcy Judge Tiffany P. Geyer handles the case. The Debtor is represented by Kenneth D Herron, Jr, Esq., at Herron Hill Law Group, PLLC, represents the Debtor as legal counsel. FOREST GOOD: Court Extends Cash Collateral Access to July 31 ------------------------------------------------------------ Forest Good Eats, LLC received second interim approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina, Raleigh Division, to use cash collateral from July 1 to 31. The court's order authorized the Debtor's interim use of cash collateral to pay its operating expenses in accordance with its budget. The Debtor's budget shows total operating expenses of $375,789.33 for the interim period. Several creditors potentially holding secured interests in the Debtor's cash or receivables include Gulf Coast Bank & Trust Company, Optimal Living, LLC, Rewards Network and the U.S. Small Business Administration. Each of these creditors will have a continuing post-petition lien on and security interest in all property of the Debtor and the proceeds thereof, with the same priority as its pre-bankruptcy lien. As further protection, the secured creditors may seek administrative claims in case their interests are inadequately protected. The interim order will remain effective until it is modified or terminated by further order; a trustee or examiner is appointed; the Debtor's Chapter 11 case is dismissed or converted; a notice of default is filed; or a subsequent order approving use of cash collateral is entered by the court. The next hearing is scheduled for July 22. The Debtor's sole sources of revenue and income consist of cash on hand and on deposit in its bank accounts and the revenue generated from the sale and distribution of its food and beverages at its restaurants. The funds held by the Debtor, which were generated from business operations as well as the proceeds generated from the collection of any outstanding accounts receivable and other post-petition operations may constitute the cash collateral of the secured creditors. About Forest Good Eats Forest Good Eats, LLC operates Real McCoy's, a restaurant and sports bar in Wake Forest, North Carolina. The establishment offers American cuisine and craft beer in a casual setting. Forest Good Eats sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-02018) on May 30, 2025. In its petition, the Debtor reported estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Judge David M. Warren handles the case. Joseph Zachary Frost, Esq., at Buckmiller & Frost, PLLC is the Debtor's legal counsel. Gulf Coast Bank & Trust Company, as secured creditor, is represented by: Lisa P. Sumner, Esq. Maynard Nexsen, PC 4141 Parklake Avenue, Suite 200 Raleigh, NC 27612 Telephone: (919) 573-7423 Facsimile: (919) 573-7454 LSumner@maynardnexsen.com FORTRESS HOLDINGS: Ch. 11 Plan Disclosures Get Tentative Approval ----------------------------------------------------------------- Ben Zigterman of Law360 Bankruptcy Authority reports that on Thursday, July 10, 2025, a New Jersey bankruptcy judge said he would approve the disclosure statement for The Chariot, a restaurant and event venue operator, pending the completion of certain modifications. About Fortress Holdings LLC Fortress Holdings LLC, d/b/a The Chariot, is set to open a premier catering and event venue in Totowa, New Jersey, specializing in weddings and other special occasions. The venue will feature seven floors, a Kosher kitchen, and a rooftop restaurant, offering stunning views of New York City. With a capacity of over 600 people, the facility caters to large-scale events and upscale dining experiences. Fortress Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-10977) on January 30, 2025. In its petition, the Debtor reports total assets of $42,030,291 and total liabilities of $26,158,690. Honorable Bankruptcy Judge Vincent F. Papalia handles the case. The Debtor is represented by Richard D. Trenk, Esq., at TRENK ISABEL SIDDIQI & SHAHDANIAN P.C., in Livingston, New Jersey. The Debtor's accountant is VESTCORP LLC. FREE SPEECH: Conn. Court to Rehear Norm Pattis' Ethics Case ----------------------------------------------------------- Christine DeRosa of Law360 reports that the Connecticut Appellate Court will consider a second appeal from Norm Pattis, former attorney for Alex Jones, challenging his reduced two-week suspension for permitting a former associate to transmit confidential Sandy Hook medical records to attorneys not covered by a court-ordered confidentiality agreement. About Free Speech Systems Free Speech Systems LLC is a broadcast media production and distribution company that provides broadcasting aural programs by radio to the public. Free Speech Systems is a family-run business founded by Alex Jones. FSS is presently engaged in the business of producing and syndicating Jones' radio and video talk shows and selling products targeted to Jones' loyal fan base via the Internet. Today, FSS produces Alex Jones' syndicated news/talk show (The Alex Jones Show) from Austin, Texas, which airs via the Genesis Communications Network on over 100 radio stations across the United States and via the internet through websites including Infowars.com. Due to the content of Alex Jones' shows, Jones and FSS have faced an all-out ban of Infowars from mainstream online spaces. Shunning from financial institutions and banning Jones and FSS from major tech companies began in 2018. Conspiracy theorist Alex Jones has been sued by victims' family members over Jones' lies that the 2012 Sandy Hook Elementary School shooting was a hoax. Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet TV, LLC, filed petitions under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April 18, 2022. FRESH ACQUISITIONS: Judge Skeptical on Litigation Funding --------------------------------------------------------- David Gonzales, the liquidating trustee of bankrupt restaurant operator Fresh Acquisitions LLC filed an unsealed and unredacted version of a litigation funding agreement after Judge Stacey G.C. Jernigan of the United States Bankruptcy Court for the Northern District of Texas in Dallas questioned the trustee’s authority to unilaterally enter into such an agreement. Judge Jernigan had ordered the Trustee to appear on July 30, 2025 at 1:30 p.m. before the bankruptcy court and show cause as to whether his entry into a litigation funding agreement was legally proper and also whether it was entered into in the exercise of reasonable business judgment. Mr. Gonzalez initially asked the Court to reconsider its decision until the Trustee and Litchfield Ventures, LLC, the Funder, have had the opportunity to brief the issues raised in the court’s show cause order and present evidence at the July 30 hearing. However, less than 24 hours after asking the Court to reconsider its prior order, Mr. Gonzalez opted to file the unredacted copy of the Funding Agreement—even before the Court had seen his Motion for Reconsideration. As a result, Judge Jernigan declared the Trustee’s Motion for Reconsideration moot and denied it. She also concluded that the Motion for Reconsideration raises “no good cause to reconsider or vacate the complained-of Order.” Mr. Gonzales of Caliber Advisors, LLC in Scottsdale, Arizona, was appointed as Trustee to oversee the Liquidating Trust established under the confirmed First Amended Joint Chapter 11 Plan of Liquidation that was proposed by an Official Committee of Unsecured Creditors. According to Judge Jernigan, the Court can find nothing in the Disclosure Statement, the Plan, the Confirmation Order, or the Trust Agreement that hinted at the possibility of a Litigation Funding Agreement or gave the Liquidating Trustee authority to enter into one post-confirmation. While the Liquidating Trustee has authority to hire lawyers and consultants and other professionals, the Court can find no references to post-confirmation borrowing by the Trust to fund litigation. The Court has reviewed, in camera, the LFA, which was supplied by the Liquidating Trustee on June 16, 2025. The pricing for the funding is not crystal clear. But it appears that there is a guaranteed funding commitment of $2,325,000 (with a substantial amount funded up front). It also appears that the promised "return" to the Funder is three multiplied by whatever the Funder funds, plus a 12% return (increased in the Funding Amendment from the original 8%). If there is a default, the "Default Rate" of interest to be charged is 20% per annum compounded monthly. The Liquidating Trustee gave the Funder a security interest in the litigation proceeds and the claims themselves. According to Judge Jernigan, "The creditors in this case were warned that ultimate recovery was uncertain. But they were advised in the Disclosure Statement that projected professional fees would run from $150,000 to $350,000 per year, and they were never told that the [Litigation Trustee] might pledge their recoveries in favor of pricey financing if things did not go according to plan. When the [Litigation Trustee] pivoted to the pricey Litigation Funding, it was done with little to no transparency." This unfolding of events now provides the public a peak into the terms of litigation funding, which are normally kept under wraps. And some insights from the judge herself! A full-text copy of the report is available at Turnarounds & Workouts at https://www.turnaroundsworkouts.com/product/turnarounds-workouts-june-2025/ (subscription req.) * * * Responses to the Show Cause Order have been filed by: -- Defendant Dayspring Operating Company, LLC; -- Defendants Allen Jackie Jones, Lawrence Farrell Harris, Richard Kemp, Rachael Harris, Alamo Furr's LLC, Alamo Dynamic, LLC d/b/a Dynamic Foods, TXFMP Management, LLC, and VitaNova Brands, LLC; and -- Litchfield Ventures, LLC. Dayspring insists the Trust Agreement does not give the Trustee the authority to incur debt on behalf of the Trust. Nor does it give Gonzales the authority to pay himself, his company, or his lawyers using borrowed funds. Dayspring calls for the Trustee's removal and voiding of the Funding Agreement "because entering into the LFA was a breach of Gonzales's fiduciary duties that he owes to creditors." Attorneys for Defendant Dayspring Operating Company, LLC: Jerry C. Alexander, Esq. D. Hunter Polvi, Esq. PASSMAN & JONES, P.C. 1201 Elm Street, Suite 2500 Dallas, TX 75270-2500 Tel: (214) 742-2121 Fax: (214) 748-7949 E-mail: alexanderj@passmanjones.com polvih@passmanjones.com Allen Jackie Jones et al. tell the Court they always have been and remain interested in settlement. They point out, "In fact, over the last year or so, Defendants engaged in good faith in multiple settlement discussions, both directly with the Trustee and indirectly through mediation with Judge Hale. While ordinarily Defendants would not discuss settlement negotiations, the Trustee accused the Defendants of refusing to offer any meaningful settlement in his recently-filed 'emergency motion.' The accusation is patently false." Jones et al. join Dayspring in seeking to invalidate the Funding Agreement. In the alternative, Jones et al. request the Court to compel the Trustee, a representative of the litigation funder and a representative of Dickinson Wright to appear at mediation with mediator John DeGroote on August 29, 2025, in person in Dallas, with authority to settle their respective stakes in this litigation. "In the absence of the relief Defendants request, settlement is all but impossible," Jones et al. contend. Counsel for Defendants Jones et al.: Jillian J. Keith, Esq. JILLIAN KEITH ADR, PLLC 15101 Surveyor Boulevard Addison, TX 75001 Tel: (214) 906-2204 E-mail: jillian@jilliankeithadr.com - and - D. Craig Brinker, Esq. WILSON ELSER MOSKOWITZ EDELMAN & DICKER, LLP 1601 Elm Street, Suite 2600 Dallas, TX 75201 Tel: (214) 698-8000 Fax: (214) 698-1101 E-mail: Craig.brinker@wilsonelser.com Litchfield Ventures tells the Court factual questions will be addressed at the July 30 hearing. In the meantime, Litchfield submits the Defendants have driven up the litigation costs to try to run the Trustee out of money. "This strategy was successful, and it left the Trustee with limited options. He could (i) hope for a meager settlement that was not sufficient to cover outstanding litigation costs, (ii) attempt to retain new counsel willing to take the case on a full contingency arrangement in exchange for 40%-45% or possibly more of any potential recovery, or (iii) obtain commercial litigation funding to move the case forward," according to the litigation funder. Litchfield expects that the testimony at the hearing will establish that the Trustee's decision to obtain commercial litigation funding, including agreeing to the LFA, was reasonable and necessary as an exercise of his good faith business judgment. The Trustee asserts various claims against the Defendants and seeks a total recovery of nearly $100 million. Litchfield also contends the amounts payable by the Trustee under the Funding Agreement "is less than the amount that would be paid to contingency counsel if the Trustee had retained quality counsel on a 40%-45% contingency ($12-$13.5 million), and the Trustee would likely still need to fund out-of-pocket expenses (i.e., expert witness costs and travel costs), which may not have been possible." Counsel for Litchfield Ventures, LLC: Jeff Prostok, Esq. Suzanne K. Rosen, Esq. VARTABEDIAN, HESTER & HAYNES, LLP 301 Commerce Sreet, Suite 3635 Fort Worth, TX 76012 Tel: 817-214-4990 Email: jeff.prostok@vhh.law E-mail: suki.rosen@vhh.law About Fresh Acquisitions Fresh Acquisitions LLC and Buffets, LLC, operate independent restaurant brands and are based in San Antonio, Texas. Prior to the COVID-19 pandemic, the Debtors were a significant operator of buffet-style restaurants in the United States with approximately 90 stores operating in 27 states. The Debtors' concepts include six buffet restaurant chains and a full service steakhouse, operating under the names Furr's Fresh Buffet, Old Country Buffet, Country Buffet, HomeTown Buffet, Ryan's, Fire Mountain, and Tahoe Joe's Famous Steakhouse, respectively. Buffets Holdings, Inc., filed for Chapter 11 relief in January 2008 and won confirmation of a reorganization plan in April 2009. In January 2012, Buffets again sought Chapter 11 protection and emerged from bankruptcy in July 2012. On Aug. 19, 2015, Alamo Ovation, LLC, acquired Buffets Restaurants Holdings, Inc., and as a result of the merger, Buffets operated over 300 restaurants in 35 states. Down to 150 restaurants in 25 states after closing unprofitable locations, Buffets LLC and its affiliated entities sought Chapter 11 protection (Bankr. W.D. Tex. Case No. Lead Case No. 16-50557) in San Antonio, Texas, on March 7, 2016. On April 27, 2017, the Court confirmed the Debtors' Second Amended Joint Plan of Reorganization. The Effective Date of the Plan was May 18, 2017. Fresh Acquisitions, LLC and 14 affiliates, including Buffets LLC (a/k/a Ovation Brands), sought Chapter 11 protection (Bankr. N.D. Tex. Lead Case No. 21-30721) on April 20, 2021. Fresh Acquisitions was estimated to have $1 million to $10 million in assets and $10 million to $50 million in liabilities. The Hon. Harlin Dewayne Hale is the case judge. In the recent cases, the Debtors tapped GRAY REED as counsel; and B. RILEY ADVISORY SERVICES as financial advisor. KATTEN MUCHIN ROSENMAN LLP is special counsel. BMC GROUP, INC., is the claims and noticing agent. HILCO REAL ESTATE, LLC, is the real estate consultant. GAMESTOP CORP: Raises $450-Mil. From Convertible Senior Notes ------------------------------------------------------------- As previously reported on June 17, 2025, GameStop Corp. issued and sold in a private offering $2.25 billion aggregate principal amount of 0.00% Convertible Senior Notes due 2032. The Company also granted the initial purchaser of the Notes a 13-day option to purchase up to an additional $450 million aggregate principal amount of Notes. On June 23, 2025, the initial purchaser elected to exercise in full such option (the "Greenshoe Exercise"), and on June 24, 2025, the Company issued $450 million aggregate principal amount of Additional Notes. In connection with the Greenshoe Exercise, the Company received gross proceeds of $450 million and net proceeds, after deducting the initial purchaser's discount but before deducting estimated fees and expenses, of approximately $446.6 million. The Company intends to use the net proceeds from the Greenshoe Exercise for general corporate purposes, including making investments in a manner consistent with the Company's Investment Policy and potential acquisitions. The conversion rate for the Additional Notes is the same as the conversion rate for the Notes: it will initially be 34.5872 shares of the Company's Class A common stock, par value $.001 per share per $1,000 principal amount of Additional Notes, which is equivalent to an initial conversion price of approximately $28.91 per share of Common Stock. The initial conversion price of the Additional Notes represents a premium of approximately 32.5% over the U.S. composite volume weighted average price of the Common Stock from 1:00 p.m. through 4:00 p.m. Eastern Daylight Time on The New York Stock Exchange on June 12, 2025, the date of the Purchase Agreement. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the Indenture, dated June 17, 2025, but will not be adjusted for any accrued and unpaid special interest. In addition, following certain corporate events that occur prior to the maturity date or if the Company delivers a notice of redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Notes in connection with such a corporate event or convert its Additional Notes called (or deemed called) for redemption during the related redemption period (as defined in the Indenture), as the case may be. The Company offered and sold the Additional Notes to the initial purchaser in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and for resale by the initial purchaser to persons reasonably believed to be qualified institutional buyers pursuant to the exemption from registration provided by Rule 144A under the Securities Act. The Company relied on these exemptions from registration based in part on representations made by the initial purchaser in the purchase agreement, dated June 12, 2025, between the Company and the initial purchaser named therein. The Additional Notes and the shares of Common Stock issuable upon conversion of the Additional Notes, if any, have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. To the extent that any shares of Common Stock are issued upon conversion of the Additional Notes, they will be issued in transactions anticipated to be exempt from registration under the Securities Act by virtue of Section 3(a)(9) thereof, because no commission or other remuneration is expected to be paid in connection with conversion of the Additional Notes, and any resulting issuance of shares of Common Stock. A maximum of 20,325,195 shares of Common Stock may be issued upon conversion of the Additional Notes based on the initial maximum conversion rate of 45.1671 shares of Common Stock per $1,000 principal amount of the Notes, which is subject to customary anti-dilution adjustment provisions. About GameStop Grapevine, Texas-based GameStop Corp. is a specialty retailer offering games and entertainment products through its E-Commerce platforms and thousands of stores. As of August 3, 2024, GameStop had $5.5 billion in total assets, $1.2 billion in total liabilities, and $4.4 billion in total stockholders' equity. * * * Egan-Jones Ratings Company on January 15, 2025, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by GameStop Corporation to CCC- from CC. GENESIS HEALTHCARE: Gets $30MM DIP Financing Interim Court Approval ------------------------------------------------------------------- Ben Zigterman of Law360 Bankruptcy Authority reports that on Friday, July 11, 2025, a Texas judge authorized Genesis Healthcare Inc. to access $12 million of its proposed $30 million Chapter 11 financing package. The ruling came over the objection of a first-lien creditor. Genesis operates rehabilitation centers and nursing homes in 18 states, the report states. About Genesis Healthcare Inc. Genesis Healthcare Inc. is a Medical Group, based in Culver City, CA. The medical group, which has also operated under the names Daehan Prospect Medical Group and Prospect Genesis Healthcare, provides physician services in Southern California. Genesis Healthcare Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case 25-80185) on July 9, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 billion and $10 billion each. Honorable Bankruptcy Judge Stacey G. Jernigan handles the case. The Debtor is represented by Marcus Alan Helt, Esq. at Mcdermott Will & Emery LLP. GENESIS HEALTHCARE: Wins Interim OK of $30MM New Money DIP Loans ---------------------------------------------------------------- Genesis HealthCare, Inc., and its debtor-affiliates on Friday obtained interim bankruptcy court approval to borrow up to $12 million of the $30 million in new money DIP loans provided by: -- Markglen, Inc., the Welltower DIP Lender; -- OHI Mezz Lender LLC, the Omega DIP Lender; -- CPE 88988 LLC, the WAX DIP Lender; and -- Welltower OP LLC, the administrative and collateral agent. The DIP financing is on a secured junior basis. Genesis also obtained the Court's authorization to use cash collateral. Genesis says the DIP Facility provides the Debtors with access to much needed liquidity that will enable them to, among other things, honor employee wages and benefits, procure goods and services, fund general and corporate operating needs and the administration of these Chapter 11 Cases, and, most importantly, continue to provide quality care at the Debtors' facilities, in each case in accordance with the Approved DIP Budget agreed upon by the Debtors and the DIP Lenders. Genesis also notes the nature of the Debtors' business requires the Debtors to have immediate use of Cash Collateral. Without it, the Debtors would be unable to operate their business and administer their estates, which would immediately and irreparably harm their stakeholders. With access to Cash Collateral, the Debtors will be able to continue their operations and preserve value for the benefit of their estates and stakeholders. According to their eight-week budget forecast, from the week ended July 11 to the week ended Aug. 29, the Debtors project $382.9 million in operating disbursements and $26 million in restructuring disbursements against $411.7 million in operating receipts, leaving the Debtors with $2.9 million in net cash flows by the end of eight weeks. Road to Bankruptcy Nursing homes operator Genesis Healthcare, Inc., and 298 of its affiliates filed for Chapter 11 bankruptcy protection with a deal to sell the business to investor ReGen Healthcare, LLC, absent higher and better offers. Headquartered in Kennett Square, Pennsylvania, Genesis Healthcare is one of the largest post-acute care providers in the United States, currently operating 175 facilities across 18 states, with more than 27,000 employees. In 1985, founders Michael Walker and Richard Howard acquired nine facilities, laying the foundation for what would ultimately become Genesis Healthcare. Through most of its 40 years of existence, Genesis Healthcare sought to expand, believing (like most operators in the skilled nursing industry) that operating more facilities would result in increased efficiency and economies of scale. At the height of its expansion in 2016, Genesis Healthcare became the largest skilled nursing operator in the United States, with over 500 facilities and over 60,000 licensed beds in over 30 states. "But as the Company continued to grow in size and scale, those growth metrics did not translate into increasing profitability. Rather, through these expansion efforts, the Company's operations became increasingly more difficult to manage, subject to significantly disparate state landscapes, and mired in corporate inefficiencies that followed numerous mergers and acquisitions. In an effort to stay competitive, the Company shifted from its growth trajectory in 2017 and began divesting certain of its unprofitable facilities, decreasing its portfolio from approximately 500 to fewer than 400 facilities by the beginning of 2020," says Ankura Consulting Group, LLC's Louis E. Robichaux IV, Co-CRO of the Debtors. The Company faced a rapid and substantial liquidity shortfall following the COVID-19 pandemic, but due to a capital infusion by a private investment entity, ReGen Healthcare, LLC ("ReGen"), and a restructuring of its master lease with its largest landlord, Welltower, the Company was able to narrowly avoid a bankruptcy filing in March of 2021. "But legacy liabilities dating back to the Company's expansion efforts in the mid-2010's continued to weigh heavily on the Company’s liquidity. In particular, as the Company rationalized its lease portfolio to the approximately 175 facilities that it operates today, it remained responsible for liabilities associated with a much larger footprint. Despite the Company's successful operational turnaround over the past several years, ReGen's capital infusions (totaling $100 million) proved insufficient to overcome this overhang. This includes, among other things, funding of approximately $8 million per month in settlement and defense costs arising from alleged personal injury and wrongful death claims, most of which date back many years. Replete with corporate guarantees, cross-collateralization, and an insurmountable quantum of legacy liabilities dating back decades, it became clear that, without a more holistic solution, the Company would be unable to continue delivering high quality care and appropriately invest in its facilities and equipment," Mr. Robichaux adds. To this end, during the first half of 2025, the Company and its restructuring advisors engaged with key holders of the Company's funded debt to negotiate the terms of a comprehensive solution. Following extensive, arm's-length negotiations, the Company says it now enters chapter 11 with a clear and defined exit path. Specifically, the Company negotiated a $30 million committed DIP financing facility, funded on a junior basis by the Company's existing term loan lenders, coupled with a binding bid set forth in a stalking horse term sheet, sponsored by affiliates of ReGen, that contemplates the purchase of substantially all of the Company's assets. With the assistance of Jefferies and their other restructuring advisors, the Debtors are commencing a comprehensive and robust post-petition marketing process and intend to seek Court approval of related bid procedures to solicit higher or otherwise better offers to purchase the Debtors' assets. Stalking Horse Deal In the weeks and months prior to the Petition Date, the Company engaged directly with affiliates of ReGen -- with the support of the Prepetition Term Loan Lenders -- on potential sale transaction structures and ultimately agreed on the current structure embodied in the binding Stalking Horse Term Sheet, pursuant to which CPE 88988 LLC (the "Stalking Horse Bidder") would be the purchaser of substantially all of the Debtors' assets (subject to higher and better bids). The Debtors believe that the selection of the Stalking Horse Bid will lead to a more efficient and cost-effective marketing process during the Chapter 11 cases. $30 Million Financing As of the bankruptcy filing date, all of the Debtors' assets are pledged to secure debts held by multiple parties, including: (a) affiliates of White Oak Healthcare Finance, LLC under the White Oak Prepetition ABL Facilities; (b) affiliates of Welltower and Omega Healthcare Investors, Inc. -- both publicly traded real estate investment trusts -- as well as other co-lenders under the Prepetition Term Loan Credit Facility; (c) certain HUD lenders under HUD Operator Security Agreements to secure certain Facilities encumbered by HUD loans; (d) the Rochester Manor HUD Lender under the Rochester Manor HUD Mortgage; and (e) the Internal Revenue Service, who filed numerous tax liens against Company entities for outstanding deferred payroll tax claims. The Debtors' prepetition secured debt and estimated amount outstanding: White Oak Prepetition ABL Revolving Credit Facilities (Maturity 3/9/27) ------------------------------------------ $223,600,000 White Oak Prepetition Non-HUD ABL Credit Facility $55,700,000 White Oak Prepetition HUD ABL Credit Facility Prepetition Term Loan Credit Facility ------------------------------------- 2016 Term Loan Credit Facility (Maturity 6/30/26) $72,600,000 Welltower Term Loan ($120M) $97,700,000 Omega Term Loan ($120M) $69,800,000 WAX Term Loan ($120M) $13,700,000 MAO Term Loan ($120M) 2018 Term Loan Credit Facility (Maturity 6/30/26) $39,900,000 Welltower Term Loan ($40M) $23,100,000 Omega Term Loan ($40M) $1,000,000 MAO Term Loan ($40M) Other Secured Debt ------------------ $0 HUD Operator Agreements (Maturity Date: Various) $8,300,000 Rochester Manor – HUD Loan (Maturity Date: 1/1/52) $103,100,000 Internal Revenue Service Statutory Rate Given the fact that substantially all of the Debtors' assets are encumbered with prepetition liens, the Debtors approached the Prepetition Term Loan Lenders to request potential debtor-in-possession financing. The lenders agreed to provide funds necessary to finance the Chapter 11 Cases and continue to prioritize patient and resident care in the form of a $30 million junior debtor-in-possession financing facility, of which $12 million will be made available following entry of the Interim Order. The DIP financing provides for an upfront fee, payable-in-kind equal to 2% of the DIP Commitment, and a payable-in-cash exit fee equal to 4% of the initial DIP Commitment. The DIP facility sets key milestones, including approval of the bid procedures within 35 days after the Petition Date, and an auction within 95 days after the Petition Date. No later than 100 days after the Petition Date, the Bankruptcy Court must have entered an order approving the Transaction by approving the sale of substantially all the Debtors' assets. No later than 210 days after the Petition Date, the Transaction must have been consummated. The DIP Agent or its designee (at the written direction of the DIP Lenders), on behalf of the DIP Secured Parties, have the right to credit bid on the DIP Collateral up to the full amount of the DIP Facility Obligations. The Prepetition ABL Agents or their designee (at the written direction of the Prepetition ABL Lenders), on behalf of the Prepetition ABL Secured Parties, also have the right to credit bid on the ABL Senior Collateral, in accordance with the Prepetition ABL Documents, up to the full amount of the Prepetition ABL Obligations. The Prepetition Term Loan Agent or its designee (at the written direction of the Prepetition Term Loan Lenders), on behalf of the Prepetition Term Loan Secured Parties, also have the right to credit bid on the Prepetition Term Loan Collateral, in accordance with the Prepetition Term Loan Documents, up to the full amount of the Prepetition Term Loan Obligations. All DIP Obligations will be due and payable in full in cash unless otherwise agreed to in writing (email being sufficient) by each of the DIP Lenders on the earliest of: (i) the date that is 210 calendar days after the Petition Date (or such later date as agreed to by each of the DIP Lenders), (ii) if the Final DIP Order has not been entered, 35 calendar days after the Petition Date (or such later date as agreed to by each of the DIP Lenders), (iii) the acceleration of the DIP Loans and the termination of the DIP Commitments upon the occurrence of an event, (iv) the effective date of any chapter 11 plan of reorganization or liquidation of the Borrower or any other Loan Parties, (v) the date the Bankruptcy Court converts any of the Chapter 11 Cases to a case under chapter 7 of the Bankruptcy Code, (vi) the date the Bankruptcy Court dismisses any of the Chapter 11 Cases, (vii) the closing of any sale of assets under section 363 of the U.S. Bankruptcy Code, which when taken together with all other sales of assets since the Closing Date, constitutes a sale of all or substantially all of the assets of the Loan Parties, (viii) the date an order is entered in any Bankruptcy Case appointing a chapter 11 trustee or examiner with enlarge, (ix) the date on which the Debtors consent to the standing of any party, including a Committee to pursue any claim or cause of action belonging to the Debtors or their estates, including, without limitation, any Challenge, and (x) the date on which a Challenge Proceeding is commenced by any party, including the Debtors or a Committee. Principal of, and accrued interest on, the DIP Loans and all other amounts owing to the DIP Lenders under the DIP Facility shall be due and payable in cash on the DIP Termination Date. Subject to the senior rights of the ABL Lenders in Prepetition ABL Collateral, the Prepetition Term Loan Lenders in Prepetition Term Loan Collateral, the WELL/OHI Master Lease Secured Parties in WELL/OHI Master Lease Collateral, and the Other Landlords in Other Landlord Collateral, these amounts shall be indefeasibly paid in cash in satisfaction of the DIP Obligations within two business days of receipt, except as such amounts are set forth in the Budget and are necessary to satisfy the expenditures set forth in the Budget: i. 100% of the net proceeds of asset sales. ii. 100% of the net proceeds of insurance and condemnation awards. iii. 100% of the net proceeds of any debt issuance or equity issuance. iv. 100% of proceeds of claims and causes of action. As of the Petition Date, these secured parties have an interest in Cash Collateral: * Prepetition ABL Secured Parties * Prepetition Term Loan Secured Parties * Rochester Manor HUD Lender * Internal Revenue Service * HUD The Debtors grant the DIP Lenders DIP liens, including first priority lien on unencumbered property; and priming liens and liens junior to certain other liens. The Debtors' obligations under the DIP Facility are subject to a Carve Out for: (i) all fees required to be paid to the Clerk of the Bankruptcy Court and to the Office of the United States Trustee under 28 U.S.C. Sec. 1930(a) plus interest under 31 U.S.C. Sec. 3717; (ii) all reasonable fees and expenses incurred by a trustee under section 726(b) of the Bankruptcy Code in an aggregate amount not to exceed $50,000; (iii) -- to the extent permitted by the Budget (subject to an allowed variance of 15% of the amount budgeted for each respective Estate Professional) and allowed by the Bankruptcy Court at any time, whether by Interim DIP Order, procedural order, final order or otherwise -- all accrued and unpaid fees, disbursements, costs and expenses incurred by persons or firms retained by the Debtors under section 327, 328 or 363 (the Debtor Professionals) and all accrued unpaid fees, disbursements, costs and expenses incurred by the Committee (if any) under section 328 and 1103 (the Committee Professionals); and (iv) Allowed Professional Fees of Estate Professionals in an aggregate amount not to exceed $750,000 incurred after the first business day following delivery by the DIP Lenders of a Carve Out Trigger Notice. A Final Hearing to consider entry of the Final Order and final approval of the DIP Facility is scheduled for [August 5], 2025 at [9:30 a].m. (prevailing Central Time), before the Hon. Bankruptcy Judge Stacey G. Jernigan. About Genesis Healthcare Genesis Healthcare, Inc. (OTC Expert Market: GENN) is a holding company with subsidiaries that, on a combined basis, comprise one of the nation's largest post-acute care providers with nearly 200 skilled nursing centers and senior living communities in 17 states nationwide. Genesis subsidiaries also supply rehabilitation therapy to approximately 1,500 locations in 43 states and the District of Columbia. On July 9, 2025, Genesis Healthcare, Inc. and 298 of its affiliates and subsidiaries each filed voluntary petitions in Dallas, Texas, seeking relief under chapter 11 of the United States Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80185). The Debtors listed at least $1 billion in assets and liabilities as of the bankruptcy filing. As of the Petition Date, the Debtors had secured debt of $708.5 million and unsecured obligations totaling $1.568 billion. The Debtors tapped McDermott Will & Emery LLP as bankruptcy counsel, and Jefferies, LLC, as investment banker. Ankura Consulting Group, LLC, provides the services of senior managing directors Russell A. Perry and Louis E. Robichaux IV as CRO of the Debtors. EPIQ CORPORATE RESTRUCTURING, LLC, is the claims agent. Counsel to Welltower: John T. Cox III, Esq. Gibson, Dunn & Crutcher LLP 2001 Ross Avenue, Suite 2100 Dallas, TX 75201 E-mail: tcox@gibsondunn.com - and - Jeffrey C. Krause, Esq. Michael G. Farag, Esq. Gibson, Dunn & Crutcher LLP 333 South Grand Avenue Los Angeles, CA 90071 E-mail: jkrause@gibsondunn.com mfarag@gibsondunn.com Counsel to Omega: Robert J. Lemons, Esq. Goodwin Proctor LLP The New York Times Building 620 Eighth Avenue New York, NY 10018 E-mail: rlemons@goodwinlaw.com - and - Leighton Aiken, Esq. Ferguson Braswell Fraser Kubasta PC 2500 Dallas Parkway, Suite 600 Plano, TX 75093 E-mail: laiken@fbfk.law Counsel to the Debtors' Prepetition ABL Secured Parties: Kenneth J. Ottaviano, Esq. Blank Rome LLP 444 West Lake Street, Suite 1650 Chicago, IL 60606 E-mail: ken.ottaviano@blankrome.com Counsel to the Debtors' DIP Lenders: James Muenker, Esq. DLA Piper LLP 1900 N. Pearl St., Suite 2200 Dallas, TX 75201 E-mail: james.muenker@us.dlapiper.com GLOBAL TECH: Sept. 15, 2025 Claims Filing Deadline Set ------------------------------------------------------ The Honorable Timothy C. Williams of the Eighth Judicial District Court in and for Clark County Nevada set Sept. 15, 2025, as deadline for persons or entity to file proofs of claim against Global Tech Industries Group Inc. In order to be eligible to be considered for a distribution from the receivership assets for a claim, you must complete and return a proof of claim form and provide the requested documentation, so that it is received on or before Sept. 15, 2025, to: Paul Strickland Receiver 120 State Avenue NE, Suite 1014 Olympia, WA 98501. The proper filing of this completed claim form may entitle you to receive a distribution from the Receivership. altered forms will not be accepted. Judge Williams entered order appointing receiver appointing Paul Strickland as equity receiver of Global Tech Industries Group Inc. ("GTII") and to marshal the assets of GTII for the GTII receivership estate ("Receivership Estate") for the benefit of creditors, shareholders and other parties in interest. The Receivership Order may be reviewed on the internet at https://www.gtii-us.com. A copy of a proof of claim may also be obtained from: Garman Turner Gordon LLP 7251 Amigo Street, Suite 210 Las Vegas, NV 89119 About Global Tech Industries Global Tech Industries Group, Inc., operates an online cryptocurrency trading platform in the United States. It operates Beyond Blockchain, a cryptocurrency trading platform, which allows multi-currency clearing and direct settlements in Bitcoin, Ethereum, Tether, Bitcoin Cash, Litecoin, Bitcoin SV, Aave, Compound, Uniswap, Chainlink, and Yearn Finance. The company was formerly known as Tree Top Industries, Inc. and changed its name to Global Tech Industries Group, Inc. in July 2016. Global Tech Industries Group was incorporated in 1980 and is based in New York. GRAY MEDIA: Moody's Rates New $750MM Secured 2nd Lien Notes 'B3' ---------------------------------------------------------------- Moody's Ratings assigned a B3 rating to Gray Media, Inc.'s proposed $750 million senior secured second-lien notes due 2032. In connection with this rating action, Moody's also assigned a Ba3 rating to the company's new $750 million senior secured first-lien revolving credit facility (RCF) due December 2028. Gray's B2 corporate family rating, Ba3 senior secured debt ratings (comprising the existing bank credit facilities and secured notes), Caa1 senior unsecured notes ratings, and stable outlook remain unchanged. Net proceeds from the new second-lien notes will be used to fully repay the $528 million outstanding 7% senior unsecured notes due May 2027 (the "2027 Notes"). Gray will also draw $100 million under the proposed RCF and use the remaining net proceeds to pay down roughly $300 million of the $493 million outstanding senior secured first-lien term loan F due June 2029. Gray has issued a conditional call notice to inform noteholders that the company intends to redeem the 2027 Notes before the maturity date. Gray also plans to upsize its existing $700 million undrawn RCF due December 2027 (the "2027 RCF") to a $750 million facility and extend the maturity to December 2028. Upon transaction closing and full extinguishment of the 2027 Notes and 2027 RCF, Moody's will withdraw their ratings. The assigned ratings are subject to review of final documentation and no material change in the size, terms and conditions of the transaction as advised to us. A comprehensive review of all credit ratings for Gray has been conducted during a rating committee. RATINGS RATIONALE The transaction is credit neutral given that pro forma financial leverage will remain unchanged at 5.5x (leverage metrics are Moody's adjusted on a two-year average EBITDA basis at LTM March 31, 2025). However, leverage is currently at the downgrade threshold, which means Gray's financial flexibility within the B2 CFR will be constrained until EBITDA expands and/or debt is repaid. Moody's expects Gray will continue to proactively focus on reducing leverage over the rating horizon to a target ratio of 4x on an as-reported net leverage basis, equivalent to around 4.5x Moody's adjusted. The B2 CFR reflects Gray's ongoing commitment to deleverage the balance sheet by repaying/repurchasing debt with excess cash flow and proceeds from asset divestitures, as well as focusing on reducing operating expenses and improving cash flow. In 2024, the company reduced principal balances by $520 million followed by $40 million debt repaid/repurchased YTD through Q2 2025. The B2 CFR also considers Moody's expectations that Gray's strong market position as the second-largest television broadcast group in the US, well-diversified network affiliates, lead rankings in a large majority of its markets and strong audience share will allow it to remain a partner of choice to pay-TV distributors. In addition, Moody's expects Gray will continue to attract solid advertiser demand and deliver somewhat better core ad revenue performance than its peers despite industry pressures in core linear TV advertising and retransmission revenue. Given Gray's good execution on stabilizing its credit profile against a challenging industry backdrop and Moody's expectations for relatively steady leverage, these considerations collectively support Moody's views that the company's credit metrics are currently appropriately positioned within the B2 rating. However, Gray must continue to focus on debt repayment and effectively implement cost reductions, both of which are key to offsetting the structural challenges and revenue growth headwinds on a two-year average basis, as well as maintaining the B2 rating and stable outlook. Gray's B2 CFR is supported by the company's quasi-national footprint and scale across its network of broadcast stations, as well as their significant reach and strong market positions. Gray is one of the largest US broadcasters with 170 owned and operated network affiliated TV stations across 113 markets of which roughly 70% are large or mid-sized markets. Gray has a very strong portfolio of stations and is the largest owner of number-one ranked television stations: with #1 ranked television stations in 78 designated market areas (DMAs) and #1 or #2 ranked stations in 99 or 88% of its DMAs. The company's revenue model benefits from a mix of recurring retransmission fees that historically helped to offset the inherent volatility of traditional advertising revenue. Over the next several years, however, Moody's expects retransmission revenue will continue to experience pressure as the rate of traditional subscriber losses outpaces annual fee increases, which constrains the rating. In even numbered years, revenue benefits from material political advertising spend, especially during presidential election years, which can mask pressure in retransmission revenue, but also boosts EBITDA. During election years, Gray generates solid free cash flow (FCF), which declines during non-political years. The B2 CFR is constrained by the ongoing structural decline in linear TV core advertising as non-political TV advertising budgets continue to erode in favor of digital media. Moody's expects Gray's linear TV core ad revenue will continue to be pressured over the rating horizon, which could worsen during periods of weak CPM (cost per thousand impressions) pricing, depressed TV ratings, deteriorating macroeconomic conditions and/or displacement during election years. To offset these challenges and diversify its operations, Gray has invested in new technologies, businesses (e.g., Assembly Atlanta, a media production "studio city" in Georgia) and over-the-top (OTT) distribution; however these investments can burden cash flows given their lower margin profile and create operational risk in the short-term until they become profitable. The stable outlook reflects Moody's expectations that Gray will focus on reducing leverage to the 4.5x-5.5x area over the next 12-24 months. Given that the company's core advertising and retransmission revenues continue to experience pressure, Moody's expects Gray to continue allocating excess cash to voluntary debt repayments above mandatory amortization. The Ba3 ratings on the company's senior secured credit facilities reflect their first-priority claim on the collateral pool aheaed of the company's new senior secured second-lien notes, rated B3, which will have a second-priority claim, followed by the unsecured notes, rated Caa1, which do not benefit from any collateral. Over the next 12-18 months, Moody's expects Gray will maintain good liquidity as reflected in the SGL-2 Speculative Grade Liquidity rating. At LTM March 31, 2025, FCF (defined by us as cash flow from operations less capex less dividends) totaled $507 million (Moody's adjusted) and cash and cash equivalents were around $210 million. Moody's forecasts FCF of around $50 to $70 million in FY 2025 (non-election year). Moody's anticipates that the bulk of FCF and asset sales proceeds will be used for debt repayments/repurchases. If Gray were to draw on the proposed $750 million RCF, the company would have to comply with a first-lien senior secured net leverage ratio covenant of 4.25x. At March 31, 2025, $692 million was available under the existing RCF and Gray was in compliance with all required covenants under its debt obligations. Moody's expects Gray to maintain ample covenant headroom under the new RCF over the next twelve months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS While unlikely near-term given the structural and secular industry pressures, over the longer-term ratings could be upgraded if Gray sustains leverage comfortably well below 4.5x (Moody's adjusted on a two-year average EBTIDA basis) and FCF to debt above 6% (Moody's adjusted on a two-year average FCF basis). Gray would also need to: (i) exhibit organic revenue growth and stable-to-improving EBITDA margins on a two-year average basis; (ii) adhere to conservative financial policies; and (iii) maintain at least good liquidity to be considered for an upgrade. Ratings could be downgraded if Gray's leverage was sustained above 5.5x (Moody's adjusted on a two-year average EBITDA basis) as a result of weak operating performance or more aggressive financial policies. A downgrade could also arise if FCF to debt was sustained below 3% (Moody's adjusted on a two-year average FCF basis) or Gray experienced deterioration in liquidity or covenant compliance weakness. Headquartered in Atlanta, GA, Gray Media, Inc. is a multimedia broadcast company that currently owns and operates television stations across 113 markets reaching around 37% of US households (25% including the 50% UHF discount). In roughly 88% of its markets, the company operates the #1 or #2 ranked station. Gray is publicly traded with the Howell-Robinson family and affiliates of the late J. Mack Robinson collectively owning around 11% of combined classes of common stock. The dual class equity structure provides these affiliated entities with around 46% voting share. Revenue for the twelve months ended March 31, 2025 totaled around $3.6 billion. The principal methodology used in these ratings was Media published in June 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. GRAY MEDIA: S&P Raises Sr. Secured First-Lien Debt Rating to 'B+' ----------------------------------------------------------------- S&P Global Ratings raised the issue-level rating on Gray Media Inc.'s senior secured first-lien debt to 'B+' from 'B' and revised the recovery rating to '1' from '2'. The '1' recovery rating indicates its expectation for very high (90%-100%; rounded estimate: 90%) recovery for lenders in the event of a payment default. Gray upsized its recently proposed senior secured second-lien notes by $150 million to $900 million and plans to use the incremental proceeds to further repay its senior secured first-lien term loan F. The additional reduction in senior secured first-lien debt improves the estimated recovery prospects for first-lien debtholders to about 90% from about 85%. The 'CCC' issue-level rating and '6' recovery rating on Gray's senior secured second-lien debt and senior unsecured debt are unchanged. The 'B-' issuer credit rating and stable outlook on Gray are also unchanged. The stable outlook reflects S&P's view that the company will maintain net leverage in the high-6x area in 2025 as well as positive free operating cash flow and EBITDA interest coverage above 1.5x for the next 12 months. ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors -- Pro forma for the transactions, Gray Media Inc. will be the borrower of a $750 million senior secured first-lien revolving credit facility maturing in 2028 (approximately $50 million to be drawn), $1.4 billion senior secured first-lien term loan D maturing in 2028, approximately $90 million senior secured first-lien term loan F due in 2029, $1.25 billion senior secured first-lien notes due in 2029, and $900 million of senior secured second-lien notes due in 2032. It also is the borrower of various tranches of senior unsecured notes ($2 million outstanding, 5.875% notes due in 2026; $790 million, 4.75% notes due in 2030; and $1.2 billion, 5.375% notes due in 2031) and a $400 million accounts receivable securitization facility due in 2028. -- The senior secured debt is guaranteed by the company's material domestic subsidiaries and secured by substantially all of its assets and those of its guarantors. Simulated default assumptions -- S&P's simulated default scenario considers a default in 2027 due to advertising revenue declines stemming from economic weakness and increased competition from alternative media, declines in retransmission revenue from elevated subscriber declines, and pressure from affiliated networks to remit a significant portion of its retransmission fees. -- Other assumptions include an 85% draw on the revolving credit facility, 100% draw on the accounts receivable securitization facility, the spread on the revolving credit facility rising to 5% as Gray obtains covenant amendments, and all debt including six months of prepetition interest. -- S&P values Gray on a going-concern basis using a 6x multiple of its projected emergence EBITDA, in line with that for other similar size local TV broadcasters that S&P rates. Simplified waterfall -- EBITDA at emergence: $623 million -- EBITDA multiple: 6x -- Gross enterprise value: $3.7 billion -- Net enterprise value (after 5% administrative costs): $3.6 billion -- Estimated priority debt claims (accounts receivable securitization facility): $408 million -- Value available for senior secured first-lien debt: $3.1 billion -- Estimated senior secured first-lien debt claims: $3.5 billion --Recovery expectations: 90%-100% (rounded estimate: 90%) -- Value available for senior secured second-lien debt: $0 -- Estimated senior secured second-lien debt claims: $943 million --Recovery expectations: 0%-10% (rounded estimate: 0%) -- Value available for senior unsecured debt: $0 -- Estimated senior unsecured debt claims (including $1.3 billion of pari passu senior secured deficiency claims): $3.3 billion --Recovery expectations: 0%-10% (rounded estimate: 0%) GREEN TERRACE: Trustee Gets OK to Use Cash Collateral Until Aug. 31 ------------------------------------------------------------------- Daniel Stermer, the Chapter 11 trustee for Green Terrace Condominium Association, Inc., got the green light from the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach Division, to use cash collateral. The court's order authorized the trustee to use cash collateral from June 18 to August 31 in accordance with the budget. The trustee may use the cash on hand to pay the expenses of operating the Debtor's business as set forth in the budget, with a variance of up to 10% of the total expenditures. The next hearing is set for August 19. The trustee argued that continued operation of the Debtor is in the best interests of the estate and its creditors. On June 4, 2025, the court partially granted the Debtor's emergency motion to appoint a Chapter 11 trustee rather than dismissing the Debtor's Chapter 11 case. Mr. Stermer was officially appointed on June 18. One secured creditor, Boken Lending II, claims a lien on the Debtor's cash collateral in the amount of $1.5 million, and no other parties have asserted similar claims. Boken previously filed a motion opposing unauthorized use of the funds but has now consented to limited interim use of the cash collateral. The trustee offered granting Boken replacement liens on post-petition assets as adequate protection, consistent with the requirements of the Bankruptcy Code. About Green Terrace Condominium Association Green Terrace Condominium Association, Inc. is a not-for-profit corporation established in 1973 that manages Green Terrace Condominiums, a two-story residential complex in West Palm Beach, Florida. The association oversees amenities including a community pool, clubhouse, and parking, and permits rentals under specific restrictions. Green Terrace Condominium Association sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-14568) on April 25, 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 Mindy A. Mora handles the case. The Debtor is represented by Michael J. Niles, Esq., at Berger Singerman, LLP. Boken Lending II, LLC, as lender, is represented by Matthew S. Kish, Esq. at Shapiro, Blasi, Wasserman & Hermann, P.A. GUARDIAN ELDER: No Resident Complaints, 5th PCO Report Says ----------------------------------------------------------- Margaret Barajas, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the Western District of Pennsylvania her fifth report regarding the quality of patient care provided by Guardian Elder Care at Johnstown, LLC and affiliates. The Ombudsman conducted monitoring visits on May 22 and June 18. During these visits, the ombudsmen spoke with as many residents who were willing and able to communicate. No new issues or problems were reported, and no cases were opened since the submission of the prior report on April 25. Ms. Barajas noted that Administration reported no new issues with staffing. The long-tenured dietary manager retired Friday May 23. An internal candidate was selected as her replacement. Interviews with both long-standing and newly hired staff yielded no bankruptcy related staffing concerns. No residents reported any new staffing-related concerns. The Ombudsman observed that resident medical records are maintained electronically. Confidentiality of records appears well maintained. Medical, linen, kitchen, and emergency supplies are well stocked. Various staff, including but not limited to, nurses, aides, maintenance and kitchen staff, were interviewed. All report having adequate supplies to perform their duties. Meal service was observed. The ombudsman noted that FRHC offers patient trust account management for its residents. There are no reported issues with any patient trust account and the required bond is current. All patient trust accounts transitioned to Champion Healthcare Consulting's account system on May 1 without incident. In general, FRHC's physical plant, equipment and property appears clean and well-maintained. Residents appear clean and cared for. No residents and staff report significant concerns. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=hbX3Wq from Omni Agent Solutions, Inc., claims agent. About Guardian Elder Care at Johnstown Guardian Elder Care at Johnstown, LLC (doing business as Richland Healthcare and Rehabilitation Center), its affiliates, and their non-debtor affiliates are a private, family-owned organization that has provided inpatient and outpatient services to predominately small and/or rural communities through a network of skilled nursing facilities and personal care homes since 1995. Guardian Healthcare maintains 19 skilled nursing facilities, with one facility in West Virginia and the remaining facilities located in Pennsylvania. Through its facilities, Guardian Healthcare maintains more than 1,700 skilled nursing, personal care, and independent living beds, providing long-term care and rehabilitation services. Guardian Elder Care at Johnstown and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Lead Case No. 24-70299) on July 29, 2024. In the petitions signed by Allen Wilen, chief restructuring officer, Guardian Elder Care at Johnstown disclosed up to $10 million in assets and up to $50 million in liabilities. Judge Jeffery A. Deller oversees the cases. The Debtors tapped Saul Ewing, LLP as legal counsel, Eisner Advisory Group, LLC as financial advisor, and Omni Agent Solutions, Inc. as claims and noticing agent. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. Margaret Barajas is the patient care ombudsman appointed in the Debtors' Chapter 11 cases. HALL OF FAME: Expands Loan Facility With CH Capital by $2 Million ----------------------------------------------------------------- Hall of Fame Resort & Entertainment Co. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company and its subsidiaries HOF Village Newco, LLC, HOF Village Retail I, LLC, and HOF Village Retail II, LLC, entered into an Eighth Amendment to Note and Security Agreement, with CH Capital Lending, LLC, a Delaware limited liability company. CHCL is an affiliate of Stuart Lichter, a director of the Company. The Eighth Amendment modifies the definition of "Facility Amount" in Section 1 of the original note and security agreement (as amended prior to the Eighth Amendment) to increase the facility amount from $12,000,000 to $14,000,000 allowing the Borrowers to request an additional $2,000,000 for general corporate purposes, subject to certain restrictions. Full text of Eighth Amendment to Note & Security Agreement: https://tinyurl.com/2ar6sbj2 About Hall of Fame Resort Hall of Fame Resort & Entertainment Co. is a resort and entertainment company leveraging the power and popularity of professional football and its legendary players in partnership with the National Football Museum, Inc., doing business as the Pro Football Hall of Fame. Headquartered in Canton, Ohio, the Company owns the DoubleTree by Hilton located in downtown Canton and the Hall of Fame Village, which is a multi-use sports, entertainment, and media destination centered around the PFHOF's campus. Cleveland, Ohio-based Grant Thornton LLP, the Company's auditor since 2023, issued a "going concern" qualification in its report dated March 26, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has sustained recurring losses through December 31, 2024 and utilized cash from operations of $10.9 million during the year ended December 31, 2024. The Company has $109.5 million of debt due through December 31, 2025, and will need to raise additional financing to accomplish its development plans and fund its working capital. These conditions, along with other matters, raise substantial doubt about the Company's ability to continue as a going concern. HARTWICK COLLEGE: Moody's Affirms Caa1 Issuer & Revenue Bond Rating ------------------------------------------------------------------- Moody's Ratings has affirmed the Caa1 issuer rating and revenue bond rating of Hartwick College (NY). The outlook is stable. The college reported $35 million in debt outstanding as of June 30, 2024. RATINGS RATIONALE The affirmation of the Caa1 issuer rating reflects the college's structurally imbalanced financial operations, challenging student market conditions and very thin liquidity profile. A high concentration of competitors and weak regional demographics have led to sizable operating deficits over a multi-year period. A reliance on elevated endowment distributions to support operations will continue to erode the college's wealth and liquidity. While management has implemented measures to enhance the college's competitive profile, these strategies carry financial and execution risks and remain unproven. The risks associated with the college's financial strategy and heightened student market conditions, a governance and social consideration respectively under Moody's ESG framework, were drivers for this rating action. Favorably, donor engagement remains supportive. Sustaining supportive philanthropic engagement becomes increasingly critical to meet the funding needs of the college's strategies to increase enrollment. The Caa1 revenue bond ratings incorporate the issuer rating and general obligation characteristics of the bond. While the bonds have a lien on unrestricted gross revenues, this provides limited additional security due to the college's fundamental operating difficulties. RATING OUTLOOK The stable outlook reflects Moody's expectations that the college's financial resources and moderate scope of operations will support the current rating level as the college continues to work through its fiscal challenges. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Improved brand and strategic positioning, reflected in student demand and revenue growth -- Significant and sustained improvement in operating performance leading to debt service coverage above 1x -- Marked growth in unrestricted liquidity translating to above 60 monthly days cash on hand FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Material erosion of financial resources reflected in below 1x total cash and investments to total adjusted debt -- Further decline in monthly liquidity or evidence of operating cash flow challenges -- Failure to make meaningful progress toward improved operations by fiscal 2026 -- Failure to achieve incoming first- year enrollment targets in fall 2025 PROFILE Hartwick College is a small, tuition-dependent private liberal arts and sciences college with fall 2024 enrollment of 1,070 full-time equivalent students and fiscal 2024 operating revenue of $43.5 million. The college is in Oneonta, New York, located between Binghamton and Albany in the northern foothills of the Catskill Mountains. METHODOLOGY The principal methodology used in the issuer and underlying rating was Higher Education published in July 2024. HEALTHY SPOT: To Sell Pet Care Business to Multiple Buyers ---------------------------------------------------------- Healthy Spot Operating, LLC, seeks approval from the United States Bankruptcy Court for the Central District of California, Los Angeles Division, to sell all Assets, free and clear of liens, claims, and encumbrances. The Debtor proposes to sell substantially all of its assets to Pet Pros LLC and NPM Franchising, LLC, both Washington limited liability companies (Stalking Horse Purchaser), subject to higher or better offers. The Debtor is a comprehensive pet care retail business which, as of the Petition Date, had a network of 20 retail stores in premier locations across Southern and Northern California, as well as a growing e-commerce channel. Debtor's focus is on fostering healthy pet lifestyles. Each of Debtor's stores provides a suite of best-in-class services, including pet grooming, daycare, nutrition consulting, dental cleaning and dog training classes, aiming to cater to the complete spectrum of client needs in pet care. Debtor specializes in a curated offering of pet care products, including an extensive selection of wholesome and organic food options, environmentally-friendly toys, treats, training aids, grooming supplies, and its private label offering, Mind Body Bowl. The Debtor's bankruptcy case was precipitated by the acts of one or more purported secured creditors that caused a nearly complete cessation of Debtor's cash flows and devastating the Debtor's operations as in excess of 95% of its operating revenues come from its credit card sales. Therefore, Debtor was placed in the difficult position of having to file an emergency bankruptcy petition. Nonetheless, the Debtor maintained its focus on options for successfully emerging from the chapter 11 case. Since the Petition Date, Debtor implemented various strategies to increase sales and improve operating efficiencies. The Debtor has consulted with Investment bankers Critical Point Partners to help determine which interested parties were the most realistic for a post-petition bankruptcy sale. The Debtor reached out to the Stalking Horse Purchaser, Skyline, Corbel Capital, and approximately five other private equity and/or strategic buyers, all of whom had expressed significant interest at or near the Petition Date. However, by the end of February/early March 2025, everyone except the Stalking Horse Buyer and Skyline had passed on a purchase of assets or equity investment. The Debtor believes that the main reason parties have lost interest over the last several months is the Debtor's cash burn rate and declining sales volumes, as well a general decline in interest in brick-and-mortar retailers with "employee-heavy businesses." Based on the ongoing negative cash flows of Debtor, Debtor will not realistically be able to continue as a going concern. Due to Debtor's negative cash flows, Debtor will be shortly unable to continue as a going concern, nor pay essential operating expenses such as payroll, employee benefits, rent, insurance or utilities. As a result, Debtor is seeking the relief requested on an expedited basis. The Assets to be sold and the terms of the sale are set forth fully in the Stalking Horse Purchase Agreement can be found at: Schedule A and B attachments. Debtor's assets are encumbered by the secured claims of Instafunding LLC a/k/a TVT SPVL and ACH Capital West, LLC, whose filed secured claims exceed $3.0 million. The Stalking Horse Purchase Agreement provides substantial economic benefit to the estate that would not exist without the proposed sale and is overwhelmingly in the best interests of the Debtor's bankruptcy estate. The terms of the Stalking Horse Purchase Agreement can be summarized as follows: 1. Stalking Horse Purchaser shall acquire the Assets, free and clear of all liens, claims, encumbrances and other interests (except as provided in the Stalking Horse Purchase Agreement); 2. Debtor shall assume and assign certain executory contracts and unexpired leases to the Stalking Horse Purchaser. The purchase price for the Assets and assignment of the Assigned Contracts to the Stalking Horse Purchase Agreement is $6,315,158.00, and shall consist of: i. payment of cash consideration to Debtor in the sum of $950,000; ii. assumption of the Assumed Liabilities a credit bid of the amount of the Stalking Horse Purchaser's secured claims of $2,876,344.20;1 and iv. all amounts paid in connection with the assumption and assignment of the Assigned Contracts. The Stalking Horse Purchaser is a major provider of pet food products and services with a national presence. Beginning with a single store in Westminster California in 1977, the Stalking Horse Purchaser now boasts a network of over 200 locations nationwide including corporate owned and franchised pet nutrition stores and pet wellness spas. The Debtor believes that the sale of the Assets is in the best interests of the estate, and respectfully submits that the Court should approve the sale. About Healthy Spot Operating, LLC Healthy Spot Operating, LLC is a pet care retail company in Torrance, Calif., which offers dog grooming, dog daycare and community experiences. Healthy Spot Operating filed Chapter 11 petition (Bankr. C.D. Cal. Case No. 24-20065) on December 10, 2024, with assets between $10 million and $50 million and liabilities between $1 million and $10 million. Mark Boonnark, chief executive officer of Healthy Spot Operating, signed the petition. Judge Deborah J. Saltzman oversees the case. The Debtor is represented by: David L. Neale, Esq. Levene, Neale, Bender, Yoo & Golubchik L.L.P. 2818 La Cienega Ave. Los Angeles, CA 90034 Tel: (310) 229-1234 Email: dln@lnbyg.com HELIUS MEDICAL: Believes to Meet Continued Listing Standards ------------------------------------------------------------ As previously disclosed, on March 31, 2025, Helius Medical Technologies, Inc. received written notice Staff stating that the Company no longer complied with the minimum stockholders' equity requirement under Nasdaq Listing Rule 5550(b)(1) for continued listing on The Nasdaq Stock Market LLC because the Company's stockholders' equity, as reported in the Company's Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2024, had fallen below $2.5 million. The notice also indicates that the Company did not meet the alternative compliance standards. On April 1, 2025, the Company received an additional letter from Nasdaq notifying the Company that, following the hearing process, Nasdaq had granted the Company an extension, until June 30, 2025 to regain compliance with the Nasdaq Listing Rules, including the Stockholders' Equity Requirement. Also, as previously disclosed, on June 6, 2025, the Company completed a public offering for net proceeds of approximately $8.1 million. To demonstrate compliance with the Continued Listing Standards, the Company is furnished its unaudited interim consolidated balance sheet as of June 17, 2025 which gives effect to the public offering, a copy of which is attached in the Company's Form 8-K Report filed with the U.S. Securities and Exchange Commission, and available at: https://tinyurl.com/829a9d3y As reflected in the unaudited balance sheet, the Company has stockholders' equity of at least $2.5 million and therefore believes it satisfies Stockholders' Equity Requirement. The Company awaits Nasdaq's formal confirmation that the Company has evidenced compliance with the Stockholders' Equity Rule and all other applicable criteria for continued listing on The Nasdaq Capital Market. About Helius Medical Headquartered in Newtown, Pennsylvania, Helius Medical Technologies, Inc. (www.heliusmedical.com) is a neurotechnology company dedicated to neurological wellness. The Company's mission is to develop, license, or acquire non-implantable technologies aimed at reducing the symptoms of neurological disease or trauma. Its flagship product, the Portable Neuromodulation Stimulator (PoNS), is an innovative, non-implantable medical device consisting of a controller and a mouthpiece that delivers mild electrical stimulation to the surface of the tongue, offering treatment for gait deficits and chronic balance deficits. In its report dated March 25, 2025, the Company's auditor since 2022, Baker Tilly US, LLP, issued a "going concern" qualification, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has recurring losses from operations and an accumulated deficit, expects to incur losses for the foreseeable future, and requires additional working capital. These factors raise substantial doubt about their ability to continue as a going concern. As of March 31, 2025, Helius Medical Technologies had $3.5 million in total assets, $2.2 million in total liabilities, and total stockholders' equity of $1.3 million. HERITAGE GRILLE: Court Extends Cash Collateral Access to July 31 ---------------------------------------------------------------- The Heritage Grille, LLC received second interim approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina, Raleigh Division, to use cash collateral. The second interim order authorized the Debtor to utilize cash collateral to pay its operating expenses from July 1 to 31. Cash collateral use must conform to the budget, with a 10% variance allowed on individual items. The Debtor projects total operational expenses of $375,789.33 for the interim period. Several creditors including Gulf Coast Bank & Trust and the U.S. Small Business Administration hold potential interests in the cash collateral. These creditors will have a continuing post-petition lien on and security interest in all property of the Debtor and the proceeds thereof, with the same priority as their pre-bankruptcy lien. As further protection, the secured creditors may seek administrative claims in case their interests are inadequately protected. The next hearing is set for July 22. About Heritage Grille & Wine Bar Heritage Grille & Wine Bar, LLC, doing business as The Heritage Grille & Wine Barrel, is a fine dining restaurant based in Wake Forest, North Carolina. It serves French-inspired cuisine and offers a curated wine selection. The establishment includes a formal dining room, a speakeasy-style bar, and a bottle shop. Heritage Grille & Wine Bar sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-02019) on June 2, 2025. In its petition, the Debtor reported estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Judge David M. Warren handles the case. The Debtor is represented by Joseph Zachary Frost, Esq., at Buckmiller & Frost, PLLC. HOLDEN I LLC: Immovable Property Sale to Pinnacle for $1.1MM OK'd ----------------------------------------------------------------- Holden I LLC seeks permission from the U.S. Bankruptcy Court for the Eastern District of Louisiana, to assume purchase agreement as executory contract and sell immovable property, free and clear of all liens, claims, interests, and encumbrances. Ryan J. Richmond was appointed to serve as the subchapter V trustee in the case. The Debtor owns three pieces of immovable property in downtown Mobile, Alabama, more specifically described as follows: a. 68 St. Francis Street (Property) – an unoccupied office building; and b. 67 St. Michael Street (St. Michael) – an empty, shell of a building with no roof; c. Lots 3, 4 and 5 on St. Joseph Street St. Joseph) – greenspace across the street from the downtown Mobile post office. Prior to the filing of the Bankruptcy Petition, the Debtor entered into a Purchase Agreement to sell the Property to Pinnacle, LLC for $1,125,000.00, with the Purchaser to pay all closing fees. The Property is subject to a mortgage in favor of Renasant Bank, successor by merger of The First Bank, N.A. The pay-off to Renasant Bank is believed to be approximately $725,000.00. The Court has authorized the Debtor to assume purchase agreement as executory contract and sell immovable property located in Mobile, Alabama to Pinnacle, LLC for $1,125,000.00. About Holden I LLC Holden I LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 25-11125) on June 2, 2025, listing between $1 million and $10 million in assets and liabilities. Judge Meredith S. Grabill presides over the case. Robin R. DeLeo, Esq., represents the Debtor as legal counsel. HORSEY DENISON: Seeks to Hire Bergey & Company as Accountant ------------------------------------------------------------ Horsey Denison Landscaping LLC and its affiliates, seek approval from the U.S. Bankruptcy Court for the District of Maryland to hire Bergey & Company, P.A. as accountant. The firm will render these services: (a) review of financial documents; (b) review of previous tax returns; (c) review of payroll filings; (d) review of personal property tax filings; and (e) provide expert testimony and other items needed for reorganization. The work to be performed in this case by Bergey & Co. shall be performed by James R. Bergey Jr., whose current hourly rate is $325, and Kimberly C. Roemer, whose currently hourly rate is $275. The firm received an initial retainer of $30,000. Bergey & Co. is a disinterested person under Bankruptcy Code Sec. 101(14), according to court filings. The firm can be reached through: James R. Bergey Jr. Bergey & Company, P.A. 8938 Worcester Highway Berlin, MD 21811 Phone: (410) 641-1101 Fax: (410) 641-2012 About Horsey Denison Landscaping LLC Horsey Denison Landscaping LLC is a landscaping company based in Fort Washington, Maryland. It provides design and build services such as landscape installation, hardscaping, low-voltage lighting, and irrigation. Horsey Denison fully owns Denison Farms LLC, also formed in 2021, and Denison Landscaping Inc., a corporation established in 1990. The Company is affiliated with Horsey Denison Properties LLC, a Delaware-based entity co-owned equally by Robert E. Horsey and David W. Horsey. Horsey Denison Landscaping LLC and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No.25-14103) on May 6, 2025. In its petition, Horsey Denison Landscaping reports estimated assets and liabilities between $1 million and $10 million each. The Debtors are represented by Paul Sweeney, Esq., at YVS LAW, LLC. ILLUMINATE PROPERTIES: Seeks to Hire Lewis Phon as Attorney ----------------------------------------------------------- Illuminate Properties & Investments Capital Group seeks approval from the U.S. Bankruptcy Court for the Northern District of California to hire Law Office of Lewis Phon as attorney. The firm will provide these services: a. assist with the preparation of its Chapter 11 Petition; b. preparation of its schedules; c. provide with advice and counseling as to bankruptcy proceedings; d. respond to court documents and pleadings; e. prepare a Chapter 11 plan and disclosure statement; f. attend court hearings on its behalf, and to prepare final decree. The firm will be paid at $375 per hour. The firm will be paid a retainer in the amount of $12,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Lewis Phon, Esq., a partner at Law Office of Lewis Phon, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Lewis Phon, Esq. Law Office of Lewis Phon 4040 Heaton Court Antioch, CA 94509 Telephone: (925) 470-8551 Facsimile: (925) 706-7600 About Illuminate Properties & Investments Capital Group Illuminate Properties & Investments Capital Group leases real estate assets, including buildings, dwellings, and other types of properties. Illuminate Properties & Investments Capital Group sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-41103) on June 23, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $500,000 and $1 million. The Debtor is represented by Lewis Phon, Esq. at LAW OFFICE OF LEWIS PHON. INDIVIDUALIZED ABA: Unsecureds to Get $494 per Month for 60 Months ------------------------------------------------------------------ Individualized ABA Services for Families, LLC, submitted an Amended Plan of Reorganization for Small Business dated June 20, 2025. The final Plan payment is expected to be paid on July 1, 2030 which is anticipated to be 59 months after the effective date. This Amended Plan of Reorganization proposes to pay creditors of the Debtor 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 Amended Plan has valued at approximately 4 cents on the dollar. This Second Amended Plan also provides for the payment of administrative and priority claims. Class 3 consists of Non-priority unsecured creditors. The total amount of the allowed general unsecured claims if $740,581.71, and includes the fully undersecured claims of Kapitus Servicing, Inc. and Funding by Samson. Based on the liquidation analysis and the income valuation of the Debtor's assets, the holders of allowed general unsecured claims will be receiving an estimated 4% pro-rata distribution through the Amended Plan. The distributions to allowed general unsecured claims will be made monthly, with the first payment of $493.71 due on the effective date, followed by 59 consecutive payments, each in the amount of $493.71, to be paid pro-rata to each holder of allowed general unsecured claim. This Class is impaired. The Debtor's proposed 5-year projections itemize the Debtor's revenue sources and the expenses for the next 5-years. The Debtor intends to fund its Amended Plan from the continued operation on its business, the funds in its bank account, and potential preference recovery. Debtor's projections were prepared by carefully analyzing the historical income and expenses, the Debtor's performance during the present case, and the prospective income and expenses, with the changes made to its business operation since the filing of the bankruptcy case. A full-text copy of the Amended Plan dated June 20, 2025 is available at https://urlcurt.com/u?l=GB33MT from PacerMonitor.com at no charge. Counsel to the Debtor: Michael Jay Berger, Esq. Law Offices of Michael Jay Berger 9454 Wilshire Blvd., 6th Floor Beverly Hills, California 90212-2929 Telephone: (310) 271-3223 Facsimile: (310) 271-9805 E-mail: michael.berger@bankmptcypower.com About Individualized ABA Services for Families Individualized ABA Services for Families, LLC, sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-41559) on Oct. 2, 2024, with total assets of $193,244 and total liabilities of $1,635,914. Raajna Naidu, chief executive officer, signed the petition. Judge William J. Lafferty oversees the case. The Debtor is represented by Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger. INSPIRED ENTERTAINMENT: Fitch Affirms 'B-' IDR, Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed Inspired Entertainment, Inc.'s Long-Term Issuer Default Rating (IDR) at 'B-' and removed it from Rating Watch Negative. The Rating Outlook is Stable. The resolution of the Rating Watch follows the long-term refinancing of Inspired's capital structure, with a new five-year privately placed credit facility used to repay outstanding senior secured notes and the RCF balance. Inspired's 'B-' IDR reflects its business profile characteristics, with niche and geographically concentrated core business positioning, balanced by a solid financial profile for its current rating, with strong profitability translating into FCF generation capacity. Key Rating Drivers Refinancing Risks Addressed: The recent private debt placement of Inspired pushed back the maturities to 2030, alleviating refinancing risks. The company's liquidity also improved as a result of the repayment of the RCF balance and the establishment of a new RCF. With slightly higher debt quantum pro forma for the transaction, Inspired's leverage remains comfortable for its 'B-' IDR. Mixed Performance Across Segments: Inspired's revenues in 2024 have declined 8%, with an EBITDAR margin 300 bps below 2022 levels. Weak performance of its virtual segment was partially offset by strong growth in the interactive segment, leading to broadly flat EBITDAR in absolute terms. These two high-margin segments have contributed to over 50% of Inspired's EBITDA since 2022. These segments compensated for the decline in gaming and leisure segment in 2024 that was affected by its exit from low-margin contracts, in line with the U.K. retail gaming market. Fitch views consistent growth and stable profitability within the virtual and interactive segments as key to its business profile improvement. Challenges to Consistent FCF Generation: Inspired's business-to-business (B2B) business model allows it to generate higher profitability than most B2B operators in the gaming industry. However, high capital intensity, coupled with volatile working capital, has kept FCF negative since 2020. Fitch forecasts a flat FCF margin in 2025, as Fitch expects Inspired to contain working capital-related outflows. Weak FCF conversion adds vulnerability, but faster growth in the more capital-efficient virtual and interactive segments, along with a reduced focus on the more capital-intensive segments such as leisure parks, should support improvement in FCF margins over the long term. Moderate Leverage for Rating: Inspired's has a conservative financial policy. The lack of EBITDA growth was balanced by broadly stable debt, expect for the RCF drawings. Its EBITDAR leverage was at 3.8x at YE 2024. Fitch expects it to increase slightly to 4.6x in 2025, which remains below the negative leverage sensitivity of 5.0x. Fitch anticipates gradual organic deleveraging toward 4.0x by 2027. Geographic Concentration Remains High: Inspired's geographic revenue concentration remains high within the U.K. gaming and leisure segments, which generated around 70% of revenues in 2024. The company has increased its geographic diversification by expanding its virtual and interactive businesses as well as the gaming segment in North America. Sales of video lottery terminal machines in the region support this growth. Although expansion helps reduce dependence on the highly regulated U.K. market, very high concentration on two core markets results in geographic revenue diversification materially below that of most of its peers. Moderate Exposure to Regulatory Risks: About 50% of Inspired's revenue comes from gaming, despite some diversification into non-regulated leisure and less regulated virtual sports segments. Although Inspired is not directly exposed to many regulatory restrictions, stricter contract terms with its business to consumer (B2C) gaming customers can affect the company. In the short to medium term, this risk is mostly relevant to the interactive segment, which generates around 13% of revenue. Fitch expects iGaming to be the primary target of responsible gaming regulation and fiscal pressure by the governments. Peer Analysis Inspired is a medium-sized B2B gaming technology company, with similar EBITDA scale but higher visibility into revenues compared with Intralot S.A. (CCC+/Rating Watch Positive), another gaming company with a high B2B focus. Intralot's business profile will likely improve pro forma the recently announced acquisition of Bally's Interactive and thereafter become less comparable with Inspired. Inspired compares well in leverage and geographic diversification to Meuse Bidco SA (B+/Stable), the Belgian gaming operator of the Gaming1 brand, although the latter is larger, enjoys more supportive regulation in its core market, and has lower capex intensity and a more comfortable debt maturity headroom. Inspired is considerably smaller and has weaker FCF than its global peers such as International Game Technology plc (BB+/Stable) and Light & Wonder, Inc. (BB/Stable). This, along with limited financial flexibility, constrains Inspired's ability to compete if these larger groups resort to an aggressive marketing and pricing strategy. This is mitigated by Inspired's strong presence in the fast-growing gaming software market across many countries. Key Assumptions - Revenue annual growth of 1% in 2026-2027, excluding low-margin hardware sales; - Organic revenue flat in 2025, before annually growing by 5% in 2026-2027; - Negative FX impact of around 3% on 2025 sales; - EBITDA margin recovering gradually to 31% by 2026 from 29% in 2024; - Annual capex of about USD35 million on average over 2024-2027; - No dividends or acquisitions over the next four years RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - Weaker-than expected profitability due to loss of contracts or weaker terms of contracts, a more negative impact from US tariffs, or lack of cost control, leading to EBITDAR leverage above 5.0x and EBITDAR fixed-charge coverage below 1.8x; - Lack of liquidity headroom, with RCF consistently drawn along with negative FCF. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Consistent growth in scale and EBITDA, while maintaining EBITDAR fixed-charge coverage above 2.5x and FCF margins in the high-single digits; - EBITDAR leverage below 4.0x on a sustained basis. Liquidity and Debt Structure The refinancing of Inspired's 2026 maturities and RCF outstanding balances improved its liquidity, with the new RCF being undrawn at the date of notes repayment. The long term evolution of liquidity will depend on Inspired's ability to return to positive FCF generation. All debt now is maturing in 2030, and Fitch expects Inspired to need to fully refinance its capital structure in the future. Issuer Profile Inspired is a global B2B gaming technology company providing content, platform, and other services to online and land-based regulated lottery, betting and gaming operators. It is involved across the gaming machine value chain, from manufacturing to distribution and management. 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 Inspired Entertainment, Inc. has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security due to increasing regulatory scrutiny on the sector, amid a greater awareness around social implications of gaming addiction and an increasing focus on responsible gaming. This has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. Inspired Entertainment, Inc. has an ESG Relevance Score of '4' for Financial Transparency due to its record of delayed publication of quarterly and annual accounts and restatements made to 2022 and 2023 accounts related to expense capitalization methods. This 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 Prior ----------- ------ ----- Inspired Entertainment, Inc. LT IDR B- Affirmed B- INTEGRATED VENTURES: Changes Name to MedwellAI, Ticker to MWAI -------------------------------------------------------------- Integrated Ventures, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on May 30, 2025, it received confirmation from the Secretary of State of the State of Nevada of the filing of the Amendment to Articles of Incorporation, which effected the change of the Company's name to "MedwellAI, Inc.". On June 17, 2025, the Financial Industry Regulatory Authority (FINRA) announced that the Name Change was effected in the marketplace on June 18, 2025, together with the change of the Company's stock symbol to "MWAI". About Integrated Ventures Headquartered in Tioga, PA, Integrated Ventures Inc. -- http://integratedventuresinc.com/-- specializes in acquiring, launching, and operating businesses in the digital asset sector, with a focus on mining and sales of branded mining rigs, while expanding into the health and wellness sector starting in mid-2024. The Woodlands, TX-based M&K CPAS, PLLC, the Company's auditor since 2018, issued a "going concern" qualification in its report dated Sept. 30, 2024, citing that the Company has incurred recurring losses from operations and had not yet achieved profitable operations as of June 30, 2024 which raises substantial doubt about its ability to continue as a going concern. The Company reported a net loss of $11,524,357 in the year ended June 30, 2024, compared to a net loss of $25,459,967 in the year ended June 30, 2023. IQSTEL INC: CEO, CFO Convert $631K Salary into Series B Stock ------------------------------------------------------------- iQSTEL Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the board of directors approved amended employment agreements in favor of Chief Executive Officer, Leandro Iglesias, and Chief Financial Officer, Alvaro Quintana Cardona. In case the monthly remuneration is not set in full on time, the amended agreements provide that Messrs. Iglesias and Quintana may convert their accrued salary/bonus into shares of the Company's common stock or Series B Preferred Stock. * For common stock, the number of shares issuable is determined by considering the average price per share of our common stock on the Nasdaq Capital Market during the last 10 days and applying a discount of 25% and then dividing the accrued salary by the average price per share. * For Series B Preferred stock, the number of shares issuable is determined by considering the discounted average price per share of our common stock on the Nasdaq Capital Market during the last 10 days, dividing the accrued salary by the discounted average price per share, and then dividing that number of shares by 12.5. On June 24, 2025, as provided in their amended employment agreements, Messrs. Iglesias and Quintana elected to convert their accrued and unpaid salaries amounting to $631,500 into a total of 6,571 shares of our Series B Preferred Stock. 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. IQSTEL INC: Hits $101.5M YTD Revenue, Reaffirms $340M 2025 Outlook ------------------------------------------------------------------ IQSTEL Inc. announced preliminary accounting revenue of $101.5 million for the period January through May 2025, reaffirming the company is on track to meet its full-year revenue forecast of $340 million. Historically, the second half of the year outperforms the first, and IQSTEL's business momentum is now accelerating significantly. The company reported $23.7 million in net revenue for May alone, with projections to reach $33 million in monthly net revenue by year-end--or earlier--driven by both organic growth and strategic integration. Based on current performance trends and pipeline visibility, IQSTEL expects to reach a $400 million annualized revenue run rate by the end of 2025. A key catalyst in this growth trajectory is the upcoming integration of GlobeTopper, a fintech platform expected to join the IQSTEL family within the next week. GlobeTopper is anticipated to contribute millions of dollars in revenue and will also add positive EBITDA, further strengthening the company's fintech division and bottom line. IQSTEL's recent uplisting to NASDAQ has been met with strong market interest, reflected in millions of dollars in daily trading volume. Management views this as a strong validation of IQSTEL's long-term value proposition. The company's vision to become a $1 billion revenue company by 2027 is becoming increasingly tangible. "We are now entering the stage where adjusted EBITDA in the millions is beginning to take shape," said Leandro Iglesias, CEO of IQSTEL. "This is a major step toward unlocking real shareholder value, and we're confident the momentum we're building will carry us to that goal." "Our growth engine is gaining speed," Iglesias added. "With strong momentum, new high-margin business units coming online, and a supportive public market behind us, we believe the second half of 2025 will mark a historic milestone for our company. We remain committed to keeping our shareholders informed as we continue to scale." 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. IROKOS GROUP: David Madoff Named Subchapter V Trustee ----------------------------------------------------- The U.S. Trustee for Region 1 appointed David Madoff, Esq., a partner at Madoff & Khoury, LLP, as Subchapter V trustee for Irokos Group, LLC. Mr. Madoff will be compensated at $450 per hour for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. In court filings, Mr. Madoff declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: David B. Madoff Madoff & Khoury, LLP 124 Washington Street, Suite 202 Foxborough, MA 02035 Phone: (508) 543-0040 Email: madoff@mandkllp.com About Irokos Group Irokos Group, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-11270) on June 23, 2025, with $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Judge Christopher J. Panos presides over the case. Marques C. Lipton, Esq. at Lipton Law Group represents the Debtor as legal counsel. IWC OIL & REFINERY: Gets Interim OK to Use Cash Collateral ----------------------------------------------------------- IWC Oil & Refinery, LLC got the green light from the U.S. Bankruptcy Court for the Western District of Texas to use cash collateral. At the hearing held on July 9, the court granted the Debtor's motion to use cash collateral on an interim basis and set a further hearing on the motion for July 31. The cash collateral consists of cash, bank funds, and accounts receivable—most of which is derived from oil and gasoline sales. The use of these funds is essential for continuing business operations, including paying employees, utilities, rent, insurance, professionals, and expenses necessary to fund a reorganization plan. The Debtor estimated having approximately $6 million in cash collateral and offered granting creditors a lien on post-petition receivables as adequate protection. The Debtor identifies several creditors who may claim an interest in the cash collateral, based on UCC financing statements filed in Texas, with the earliest filed by the U.S. Small Business Administration on June 12, 2020. Other filings were made by Bravo Capital (believed paid), CT Corporation (two filings), TransMontaigne Operating Company, and Financial Agent Services. About IWC Oil & Refinery LLC IWC Oil & Refinery LLC is an energy supplier that trades, markets, and sells petroleum products. The Company operates a vertically integrated network that includes shipping, storage infrastructure, and transportation logistics such as marine, rail, and trucking services. It also provides product sourcing, supply, and consulting solutions. IWC Oil & Refinery sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-51378) on June 23, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $10 million and $50 million. Judge Craig A. Gargotta handles the case. The Debtor is represented by Steven G. Cennamo, Esq., at the Law Office of Cennamo & Werner. JAGUAR HEALTH: Extends Maturity of Convertible Notes to 2026 ------------------------------------------------------------ Jaguar Health, Inc. disclosed in a Form 8-K filed with the U.S. Securities and Exchange Commission that, as previously disclosed on March 31, 2025, it issued and sold to selected accredited investors (the "Original Investors"): (i) approximately $3.4 million aggregate principal amount of 6% convertible promissory notes (the "Original Notes"), and (ii) warrants (the "March Warrants") to purchase shares of common stock, par value $0.0001 per share, of the Company in a private placement, pursuant to the securities purchase agreements dated March 26, 2025, between the Company and the Original Investors (the "Purchase Agreements"). On June 24, 2025, the Company entered into note exchange and warrant purchase agreements with certain of the Original Investors (the "Participating Investors"), pursuant to which the Company agreed to: (a) issue and sell: (i) approximately $2.57 million aggregate principal amount of new 6% convertible promissory notes (the "Replacement Notes"), in exchange for the cancellation of the Original Notes held by the Participating Investors, and (ii) warrants to purchase shares of Common Stock (the "New Warrants") to such Participating Investors, in a private placement closed on June 24, 2025 (the "Exchange Transaction"); and (b) file a registration statement for the resale of the Conversion Shares and the New Warrant Shares within 30 calendar days of the date of the Exchange Agreements and to use commercially reasonable efforts to cause such registration statement to be declared effective no later than three business days after the date that the Company is notified by the Securities and Exchange Commission that such registration statement will not be reviewed or will not be subject to further review. Replacement Notes: The Replacement Notes bear interest at the rate of 6% per annum and will mature on January 30, 2026. The Replacement Notes will be convertible, at each holder's option, in part or in full, into an aggregate of up to 481,150 shares of the Company's Common Stock (assuming no payment of the principal amounts or any accrued interest), at a conversion price of $5.535 per share for Participating Investors who are not an officer, director, employee or consultant of the Company (collectively, an "Insider"), and $5.555 per share for Participating Investors who are Insiders, subject to adjustment for customary stock dividend, stock split, stock combination or other similar transactions; provided, however, that: (a) no Conversion Shares may be issued to a noteholder who is an Insider unless the stockholder approval is obtained by the Company in accordance with Nasdaq Listing Rules 5635(c) and 5635(d), and (b) the total cumulative number of Conversion Shares that may be issued to a noteholder who is not an Insider, together with any shares of Common Stock issued to: (i) such noteholder upon exercise of the New Warrants issued to such noteholder and (ii) the other Participating Investors in the same series of transactions as the Replacement Notes, may not exceed the requirements of The Nasdaq Capital Market (including the rules related to the aggregation of offerings under Nasdaq Listing Rule 5635(d), if applicable), unless the stockholder approval is obtained by the Company to issue more than the Issuance Cap. Under the Replacement Notes, the Company is subject to certain restrictive covenants, including a covenant restricting the Company's right to pay dividends or otherwise make any payment or distribution in respect of the Company's capital stock, subject to certain limited exceptions, without the prior written consent of the holders of the Replacement Notes. In addition, the Company is required to use the net proceeds in excess of $8,000,000 from (a) any equity or debt financing received by the Company or (b) any licensing or business development transaction received by the Company or Napo Pharmaceuticals, Inc. for repayment of the Replacement Notes. The terms of the Replacement Notes are otherwise substantially the same as the terms of the Original Notes. New Warrants: As an inducement to enter into the Exchange Agreements, the Participating Investors received New Warrants to purchase up to an aggregate of 928,582 shares of Common Stock (the "New Warrant Shares") with an initial exercise price equal to $2.70, subject to adjustment for reclassification of the Common Stock, non-cash dividend, stock split, reverse stock split or other similar transaction. The New Warrants will be exercisable immediately upon the Initial Exercise Date and will expire on the earlier of: (i) 18 months from the date of issuance, (ii) the consummation of a fundamental transaction and (iii) the consummation of a liquidation event; provided, however, that no New Warrant Shares may be issued to a holder unless the stockholder approval is obtained by the Company in accordance with Nasdaq Listing Rules 5635(c) and/or 5635(d), as applicable. Certain Insiders, including the Company's Chief Executive Officer and certain members of the Company's board of directors and officers, participated in the Exchange Transaction. These Insiders acquired $492,012 aggregate principal amount of the Replacement Notes, which will be convertible into up to 91,784 Conversion Shares, and received New Warrants to purchase up to 177,138 New Warrant Shares. The Company makes certain customary representations and warranties and has agreed to customary covenants and obligations. The Exchange Agreements and the Replacement Notes contain customary events of default upon the occurrence and during the continuance of which the Replacement Notes shall, at the option of the holders by written notice to the Company, become immediately due and payable and the Company shall pay to the holders an amount equal to the then outstanding balance of the Replacement Notes and accrued and unpaid interest thereon, plus Default Interest (as defined in the Replacement Notes), if any. "We're very pleased with each of the participants in this bridge financing that agreed to the extension of the maturity date," said Lisa Conte, Jaguar's Founder and CEO. "Each of these investors is committed to helping provide the resources needed to support Jaguar's goal of forging corporate partnerships to bring in non-dilutive funding for the Company's three core development programs for crofelemer, our novel plant-based prescription medicine: our orphan disease intestinal failure program; our ongoing efforts to make crofelemer available for treatment of cancer therapy-related diarrhea (CTD) in patients with metastatic breast cancer receiving selected targeted therapies; and our ongoing development program to expand access for Canalevia (crofelemer delayed-release tablets) in dogs from the conditional approval in chemotherapy-induced diarrhea to a potential global approval for acute general diarrhea." The forms of the Replacement Note, New Warrant, and Exchange Agreement are filed as Exhibits 4.1, 4.2, and 10.1, respectively, to the Form 8-K available at https://tinyurl.com/4myfvtf9. About Jaguar Health Jaguar Health, Inc. -- http://www.jaguar.health-- is a commercial-stage pharmaceuticals company focused on developing novel, plant-based, sustainably derived prescription medicines for people and animals with gastrointestinal ("GI") distress, including chronic, debilitating diarrhea. Jaguar Health's wholly owned subsidiary, Napo Pharmaceuticals, Inc., focuses on developing and commercializing proprietary plant-based human pharmaceuticals from plants harvested responsibly from rainforest areas. The Company's crofelemer drug product candidate is the subject of the OnTarget study, a pivotal Phase 3 clinical trial for prophylaxis of diarrhea in adult cancer patients receiving targeted therapy. Larkspur, California-based RBSM, LLP, the Company's auditor since 2022, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has an accumulated deficit, recurring losses, and expects continuing future losses. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company, since its inception, has incurred recurring operating losses and negative cash flows from operations and has an accumulated deficit of $346.5 million as of December 31, 2024. As of Dec. 31, 2024, the Company had $53.4 million in total assets, $44.4 million in total liabilities, $2.5 million in commitments and contingencies and a total stockholders' equity of $6.5 million. JERK PIT: Court Extends Cash Collateral Access to July 23 --------------------------------------------------------- The Jerk Pit, LLC received second interim approval from the U.S. Bankruptcy Court for the District of Columbia to use cash collateral to fund its operations. The second interim authorized the Debtor to utilize the cash collateral of its secured lenders, including the U.S. Small Business Administration, Washington Area Community Investment Fund, Celtic Bank and WebBank, and merchant cash advance lenders. The lenders' cash collateral includes bank accounts and cash, much of which consists of the proceeds of receivables from various transaction processors. These receivables arise in the ordinary course of business from in-store and online transactions, and have been pledged or sold, at least in part, to the lenders. SBA has a senior lien on most of the pre-bankruptcy assets of the Debtor, including pre-bankruptcy receivables. Its claim is likely to be undersecured such that it is entitled to adequate protection against diminution in the value of its collateral. As adequate protection, the lenders will be granted a valid, perfected security interest in all receipts and receivables that arise from the Debtor's business on or after the petition date and any traceable proceeds of post-petition receivables. As further protection, the lenders will be granted an allowed administrative claim against the Debtor, with priority over all other administrative claims. Meanwhile, the Debtor was ordered to continue its monthly payments of $1,562.50 to SBA. To the extent that any person has a valid, perfected pre-bankruptcy security interest or other property interest in the lenders' collateral, the "adequate protection" liens will be junior in priority to such interest. The Debtor's authorization to use cash collateral terminates upon entry of a final cash collateral order or the conversion of the Debtor's Chapter 11 case to one under Chapter 7. A final hearing is scheduled for July 23. About The Jerk Pit The Jerk Pit, LLC is a Caribbean restaurant business operating in College Park, Maryland. The Jerk Pit sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.C. Case No. 25-00201) on May 28, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and liabilities. Judge Elizabeth L. Gunn handles the case. The Debtor is represented by: John Gordon Colan, Jr Sinoberg Raft Tel: 804-513-1566 Email: john.colan@sinobergraft.com JJJ CONVOY: Christopher Quinn Named Subchapter V Trustee -------------------------------------------------------- The U.S. Trustee for Region 7 appointed Christopher Quinn as Subchapter V trustee for JJJ Convoy LLC. Mr. Quinn will be paid an hourly fee of $400 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Quinn declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Christopher Quinn 26414 Cottage Cypress Lane Cypress, TX 77433 Phone: 713-498-8500 Email: chris.quinn2021@outlook.com About JJJ Convoy LLC JJJ Convoy LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 25-20187) on June 20, 2025, with $100,001 to $500,000 in assets and liabilities. Judge Marvin Isgur presides over the case. JOANN INC: Court Confirms Chapter 11 Wind-Down Plan --------------------------------------------------- Vince Sullivan of Law360 reports that Joann Inc.'s Chapter 11 wind-down plan was given the green light by a Delaware bankruptcy court on Thursday, July 10, 2025, with no parties raising objections. 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. JOE'S PIZZA: Gregory Jones Named Subchapter V Trustee ----------------------------------------------------- The U.S. Trustee for Region 16 appointed Gregory Jones, Esq., at Stradling Yocca Carlson & Rauth, PC as Subchapter V trustee for Joe's Pizza Santa Monica Inc. Mr. Jones will be paid an hourly fee of $600 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Jones declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Gregory K. Jones, Esq. Stradling Yocca Carlson & Rauth, PC 10100 N. Santa Monica Boulevard, Suite 1400 Los Angeles, CA 90067 Telephone: (424) 214-7000 Facsimile: (424) 214-7010 Email: gjones@stradlinglaw.com About Joe's Pizza Santa Monica Inc. Joe's Pizza Santa Monica Inc. operates a pizza restaurant in Santa Monica, California. The Company offers dine-in and takeaway services and serves a variety of pizzas, salads, appetizers, and beverages at its Broadway location. Joe's Pizza Santa Monica Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-15242) on June 23, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Vincent P. Zurzolo handles the case. The Debtors are represented by Bradley E. Brook, Esq. at LAW OFFICES OF BRADLEY E. BROOK, APC. JOHNSON PHARMACY: Kimberly Ross Clayson Named Subchapter V Trustee ------------------------------------------------------------------ The U.S. Trustee for Regions 3 and 9 appointed Kimberly Ross Clayson, Esq., as Subchapter V trustee for Johnson Pharmacy, LLC. Ms. Clayson, an attorney at Taft Stettinius & Hollister, LLP, will be paid an hourly fee of $350 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Clayson declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Kimberly Ross Clayson, Esq. Taft Stettinius & Hollister, LLP 27777 Franklin Rd., Ste. 2500 Southfield, MI 48034 Phone: (248) 727.1635 Email: kclayson@taftlaw.com About Johnson Pharmacy LLC Johnson Pharmacy, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-31298) on June 18, 2025. listing between $100,001 and $500,000 in assets and between $500,001 and $1 million in liabilities. Mark Johnson, president of Johnson Pharmacy, signed the petition. Judge Joel D. Applebaum oversees the case. George E. Jacobs, Esq., at Bankruptcy Law Offices, represent the Debtor as legal counsel. United Community Bank, as secured creditor, is represented by: Lisa A. Hall, Esq. Plunkett Cooney 333 Bridge St. NW, Ste. 530 Grand Rapids, MI 49504 (616) 752-4615 lhall@plunkettcooney.com JONES REAL: Seeks Cash Collateral Access ---------------------------------------- Jones Real Estate Properties, LLC asked the U.S. Bankruptcy Court for the Northern District of New York for authority to use cash collateral. Managed by its sole member Joshua Jones, the Debtor owns two rental properties and has no employees. It defaulted on a mortgage with Savannah Bank after experiencing rental income disruption during the COVID-19 pandemic and was unable to evict non-paying tenants due to legal restrictions. The bank initiated foreclosure, prompting the bankruptcy filing. The Debtor argued that the bank's lien, which includes an assignment of rents and a UCC-1 filing with Onondaga County, may entitle it to all rental income as cash collateral. The Debtor sought court approval to use this cash collateral for ongoing operations and has proposed a budget that includes $400 per month for the Subchapter V Trustee and $800 per month in adequate protection payments to Savannah Bank. The Debtor asserted that the bank is over-secured based on the estimated property value of $208,174, against $23,000 in tax arrears and $165,000 owed to the bank. The Debtor proposed reinstating the bank's loan with modified terms as part of its Chapter 11 plan. It requested interim approval to use cash collateral to maintain business operations, prevent irreparable harm, and preserve the going-concern value of its properties, arguing that continued operations benefit all stakeholders including the bank. The Debtor also sought a final hearing within 15 days, pending court availability, and committed to using funds strictly according to the monthly budget. Notably, the Debtor reserves the right to challenge the validity and perfection of the bank's lien. About Jones Real Estate Properties Jones Real Estate Properties, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 25-30378) on May 12, 2025, listing under $1 million in both assets and liabilities. Judge Wendy A. Kinsella oversees the case. Peter A. Orville, Esq., at Orville & McDonald Law PC serves as the Debtor's counsel. Savannah Bank, as lender, is represented by: Robert N. Gregor, Esq. Klausner Cook, PLLC 179 Graham Road Ithaca, NY 14853 Tel: (518) 222-1535 rob@klausnercook.com K&W LEGACY: Seeks Chapter 11 Bankruptcy in Tennessee ---------------------------------------------------- On July 9, 2025, K&W Legacy LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Tennessee. According to court filing, the Debtor reports up to $50,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About K&W Legacy LLC K&W Legacy LLC is a small business debtor based in Millington, Tennessee. K&W Legacy LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tenn. Case No. 25-23389) on July 9, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities up to $50,000. The Debtor is represented by Ted I. Jones at JONES & GARRETT LAW FIRM. KARYOPHARM THERAPEUTICS: Pursues Financing Options, Cuts Workforce ------------------------------------------------------------------ Georgi Azar of Bloomberg Law reports that Karyopharm Therapeutics is exploring financing options or potential strategic alternatives as it moves to cut approximately 20% of its workforce. The company has been in discussions with potential investors, but no agreements have been reached so far. Strategic alternatives under consideration include mergers and acquisitions, corporate restructuring, and debt refinancing, according to Bloomberg Law. The board is continuing to assess possible transactions, while the company noted that costs associated with the workforce reduction are expected to be immaterial, the report relays. About Karyopharm Therapeutics Karyopharm Therapeutics Inc. operates as an oncology-focused pharmaceutical company. The Company offers combination with dexamethasone as a treatment for patients with pretreated multiple myeloma, as well as provides single-agent and combination activity against a variety of human cancers. Karyopharm Therapeutics serves patients in the United States, Germany, and Israel. KENSINGTON VILLAGE: Hearing to Use Cash Collateral Set for July 15 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Georgia, Atlanta Division, is set to hold a hearing on July 15 to consider final approval of the motion by Kensington Village Apts, LLC and its affiliates to use cash collateral. The Debtors' authority to use cash collateral pursuant to the court's fourth interim order issued on July 3 expires on July 15. The fourth interim order approved the payment of the Debtors' expenses from the cash collateral in accordance with the budget they filed with the court. The Debtor projects total operational expenses of $358,002 for July; $359,502 for August; $1,413,906 for September; and $402,452 for October. The interim order granted the Debtors' lender, CAF Bridge Borrower AX, LLC, a valid and properly perfected replacement lien on the Debtors' property including rents, with the same validity and priority as the lender's pre-bankruptcy lien. About Kensington Village Apts Kensington Village Apts, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-53099) on March 21, 2025, listing up to $50,000 in assets and up to $100 million in liabilities. Samuel Pollak, managing member of Kensington Village Apts, signed the petition. Judge Lisa Ritchey Craig oversees the case. William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC, represents the Debtor as legal counsel L.D. LYTLE: Gets Interim OK to Use Cash Collateral -------------------------------------------------- L.D. Lytle, Inc. got the green light from the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division to use cash collateral. The court's order authorized the Debtor's interim use of cash collateral through July 22 to pay the expenses set forth in its budget, with a 15% variance allowed per line item and overall. The Debtor projects total monthly operational expenses of $87,868.93. The U.S. Small Business Administration, Texas Capital Bank, Purple Tree Funding, and Global Merchant Cash, Inc. are the secured lenders claiming liens on the Debtor's personal property including accounts. As protection for any diminution in the value of their pre-bankruptcy collateral, the secured lenders will be granted valid, binding, enforceable, and perfected liens co-extensive with their pre-bankruptcy liens on all assets of the Debtor. The Debtor said it needs to use cash collateral to continue operating its child-care business. It owns three daycare facilities, two of which are currently operational in Ennis and Ferris, Texas, while the third is completed but not yet open. The final hearing is scheduled for July 22. About L.D. Lytle Inc. L.D. Lytle Inc., doing business as Sunshine Kids Academy, operates early childhood education and daycare centers in Texas. It provides childcare services at locations in Ennis, Ferris, and Red Oak. L.D. Lytle sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-32454) on June 30, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and liabilities. Judge Michelle V. Larson handles the case. The Debtor is represented by: Joyce W. Lindauer, Esq. Joyce W. Lindauer Attorney, PLLC Tel: 972-503-4033 joyce@joycelindauer.com LAFLEUR NURSERIES: Gets OK to Use Cash Collateral Until Aug. 5 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, issued a preliminary order authorizing Lafleur Nurseries and Garden Center, LLC's interim use of cash collateral through August 5. The interim order signed by Judge Lori Vaughan authorized the Debtor to use cash collateral to pay the amounts expressly authorized by the court, including payments to the U.S. trustee for quarterly fees; the expenses set forth in the budget, plus an amount not to exceed 10% for each line item; and additional amounts subject to approval by BankUnited, N.A., a senior creditor. The Debtor projects total operational expenses of $483,300 for the period from June to August. As protection, BankUnited and other creditors with a lien or security interest in the cash collateral will be granted a perfected post-petition replacement lien on the cash collateral to the same extent and with the same priority and validity as their pre-bankruptcy liens. In addition, the Debtor was ordered to keep its property insured in accordance with its loan agreements with secured creditors. The next hearing is scheduled for August 5. As of the petition date, the Debtor has approximately $12,956.13 in deposit accounts with BankUnited. About Lafleur Nurseries and Garden Center LLC Lafleur Nurseries and Garden Center, LLC operates a retail garden center in Sanford, Florida. It offers a wide selection of plants, trees, and landscaping materials, and provides related services such as landscape design, installation, and irrigation system support. Lafleur sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-03734) on June 17, 2025. In its petition, the Debtor reported total assets of $568,637 and total liabilities of $3,283,410. Judge Lori V. Vaughan handles the case. The Debtor is represented by Jeffrey S. Ainsworth, Esq., at BransonLaw, PLLC. LAKE CLINCH: Lender Seeks to Prohibit Cash Collateral Access ------------------------------------------------------------ Norman Harris Services, Inc. asked the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to prohibit Lake Clinch Resort, LLC from using cash collateral. NHS argued the Debtor, which filed for Chapter 11 bankruptcy on January 16, has been improperly using cash collateral without NHS's consent or court authorization. NHS initially loaned the debtor $580,000 in March 2023, secured by real and personal property, including manufactured homes and rental income from a property in Frostproof, Florida. The loan was later amended in March 2024 to $850,000, with updated loan documents. NHS holds perfected liens on the Debtor's real estate, personal property, and all rental income. The Debtor defaulted before filing for bankruptcy by missing payments, failing to pay property taxes, and not providing required insurance. Since the petition date, the Debtor has used cash collateral without permission, breaching fiduciary duties and using funds for improper insider payments and personal expenses, such as Uber rides, video streaming, food, and prescriptions, according to NHS. NHS argued that its interest is not adequately protected, as the Debtor has not accumulated cash, made any adequate protection payments, or provided appraisals or a business plan to demonstrate viability. NHS also pointed out that the Debtor has not filed recent monthly operating reports or tax returns. Citing relevant case law, NHS emphasized that equity cushions alone do not justify unauthorized use of cash collateral, especially in cases where Debtor conduct undermines creditor protection. About Lake Clinch Resort Lake Clinch Resort, LLC is a single asset real estate company operating in Frostproof, Fla. Lake Clinch Resort filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 25-00268) on January 16, 2025, listing between $1 million and $10 million in assets and up to $50,000 in liabilities. Judge Grace E. Robson handles the case. The Debtor is represented by Haynes Edward Brinson, Esq., at Brinson and Brinson. Norman Harris Services, Inc., as lender, is represented by: Patti W. Halloran, Esq. Gibbons │ Neuman 3321 Henderson Boulevard Tampa, FL 33609 Telephone: (813) 877-9222 Facsimile: (813) 877-9290 phalloran@gibblaw.com LAVIE CARE: PCO Reports Resident Care Complaints ------------------------------------------------ Margaret Barajas, the patient care ombudsman, filed her sixth report regarding the quality of patient care provided at the Pennsylvania nursing facilities operated by LaVie Care Centers, LLC's affiliates. The sale of six facilities to Avardis Health was completed on June 1. In a facility visit of May 1, several residents at Pennknoll Village had complaints of their call bell being away from them, or on the floor. And they have waited for more than 15 minutes upon pressing their bell. When the ombudsman shared the call bell concern with direct care staff, they were dismissive of the concern. The Director of Nursing requested that she be informed of future complaints. During the Luther Ridge at Seiders Hill facility visit of June 3, the administrator informed the local ombudsman that a Plan of Correction had been submitted following the last full survey. Fifteen violations were noted in the last survey, including: * An inoperable elevator. As of a May 22 facility visit, the local ombudsman reported that both of the facility's elevators were non-functional. As of a risk management meeting with a representative of the Department of Human Services on June 12, the elevator issues were ongoing. The local ombudsman ensured that the representative was aware of the issue. * A lack of resident rights training for staff. * Cigarette butts on the ground near the employee smoking area. * Old resident records found in a closet used to store PPE. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=neS5uG from Kurtzman Carson Consultants, LLC, claims agent. About Lavie Care Centers LaVie Care Centers, LLC, is the parent company of skilled nursing facility operators and providers, with facilities primarily located in Mississippi, North Carolina, Pennsylvania and Virginia. The company operates 43 licensed facilities, with 4,300 beds, providing short-term rehabilitation, comprehensive post-acute care, and long-term care to its residents. On June 2 and 3, 2024, LaVie Care Centers and 281 affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Lead Case No. 24-55507), before Judge Paul Baisier in Atlanta. The Debtors tapped McDermott Will & Emery, LLP as legal counsel; Stout Capital, LLC as investment banker; and Ankura Consulting as financial advisor. M. Benjamin Jones, senior managing director at Ankura, serves as the Debtors' chief restructuring officer. Kurtzman Carson Consultants, LLC is the claims agent, and maintains the page http://www.kccllc.com/LaVie The U.S. Trustee for Region 21 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The U.S. Trustee also appointed Joani Latimer as patient care ombudsman for patients at the Debtors' Virginia facilities; Victor Orija for North Carolina facilities; Lisa Smith for the Mississippi facilities; Margaret Barajas for the Pennsylvania facilities; and Terri Cantrell for the Florida facility. Margaret Barajas is the patient care ombudsman appointed in the Debtors' cases. LEEWARD RENEWABLE: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed Leeward Renewable Energy Operations, LLC's (LREO) Long-Term Issuer Default Rating (IDR) at 'BB-'. Fitch has also affirmed LREO's senior unsecured rating at 'BB-' with a Recovery Rating of 'RR4'. The Rating Outlook is Stable. LREO's rating reflects its long-term contracted cash flows from a diverse portfolio of U.S. wind and solar projects. Fitch calculates LREO's credit metrics on a deconsolidated basis, as non-recourse project debt and tax equity finance its assets. FFO leverage rose to 5.3x in 2024 due to a delay in expected project contributions into LREO, which were partially completed in 2025. Fitch expects FFO leverage to improve, averaging 3.4x from 2025 to 2028 as additional projects contribute to LREO. Key Rating Drivers Long-Term Contracted Portfolio: As of June 30, 2025, LREO owned and operated a long-term contracted portfolio of 20 wind projects and six solar projects totaling 3,072 MW gross capacity. LREO projects are located across 11 states, predominantly in the Midwest, West and Texas markets. LREO's portfolio was roughly 91% contracted, with long-term power purchase agreements. LREO cashflows are largely contracted with investment-grade offtakers, with a weighted average rating of A-. The weighted average remaining contract life is around 10 years, up from the prior year due to project contributions and is expected to be supported by future project contributions in the near term. Projects under development that are expected to be contributed into LREO between 2025 and 2027 have a weighted average contract life of 17.7 years, which will serve to further support and improve the average remaining contract life of the portfolio. Improving Portfolio Diversification: In 1H25, the company's development entity contributed five solar and one wind facility totaling 955 MW, decreasing LREO's portfolio concentration in wind. As of June 30, 2025, wind assets provided 71% of gross capacity and solar provided the remaining 29%, a positive credit development. LREO's portfolio has historically been nearly 100% concentrated in wind, which exposes LREO to higher resource variabilities as wind resources are more volatile than solar. Geographic diversification reduces the risk from weak wind resources in any one region. LREO's project distributions are less diversified than industry peers, with the top five contributing about 69% of distributions in 2024. Fitch expects some improvement in distribution diversification in the long term. Leverage Metrics Expected to Improve: 2024 FFO leverage was 5.3x, above its negative rating sensitivity, due to lower 2024 portfolio distributions of $87.4 million compared to $90.1 million in 2023. No projects were contributed to LREO during 2024, and Caprock Wind was assigned to the Leeward Renewable Energy Development LLC (Leeward Development) repowering. YTD 2025, six projects have been contributed, increasing forecasted portfolio distributions by around $10 million. FFO leverage is expected to average 3.4x over the 2025-2028 period, with new project contributions providing additional portfolio distributions. Robust Development Pipeline: In 2024, Leeward took steps to safe harbor its near-term development pipeline and preserve tax credit eligibility. This included a 5% total project cost investment in solar modules and physical onsite and offsite work. Leeward Development has a large development pipeline of 22 GW that largely consists of solar and BESS projects, accounting for 88% of the projects in the queue. There are 11 projects totaling 1.8 GW being developed across four states, with COD in 2025 - 2027. Leeward Development is separated from LREO, as LREO holds assets that are in commercial operation. The separation removes most of the construction risks from LREO. Clear Financial Policy: Management's target leverage ratio for LREO, corporate debt to cash flow available for debt service (CFADS), is between 3.5x to 4.0x, which closely follows Fitch's metric of holdco-only FFO leverage. In recent years LREO has been outside of its stated policy, however with the expected 2025 project drop-ins, Fitch expects a return to stated policy levels. Management monitors Debt/CFADS on a monthly basis and monitored by board on a quarterly basis. After LREO satisfies its financial covenants and credit metrics target, it contributes all excess cash to its parent, Leeward Renewable Energy, LLC (LRE), to reinvest in development activities at Leeward Development. Parent Subsidiary Linkage: Fitch rates LREO on a standalone basis. Consistent with Fitch's approach, it views OMERS Administration Corporation (OMERS; AAA/Stable) as financial investors and does not apply the Parent-Subsidiary Linkage. OMERS is one of the largest Canadian pension funds and acquired Leeward in 2018. LREO has its own credit facilities and does not depend on Leeward and affiliates for liquidity. There is no explicit rating linkage, but Fitch views LREO's relationship with OMERS as supportive of its credit quality. Peer Analysis LREO compares slightly weaker to its peers, given its smaller size and somewhat lower portfolio diversification. Fitch notes portfolio asset diversification is improving with continuing asset contributions into LREO, decreasing wind project concentration. LREO's generation capacity as of June 30, 2025, was around 3.1 GW, similar to Terraform Power Operating LLC. (TERPO; BB-/Stable) and Pattern Energy Operations LP's (PEO; BB-/Stable), but much smaller than XPLR Infrastructure, LP (XPLR; BB+/Stable). LREO continues to have a higher concentration in wind assets with wind providing 71% of gross capacity and 29% from solar. Similarly, PEO has a high concentration in wind with 95%. TERP's portfolio consists of 49% solar and 51% wind projects, and XPLR's portfolio consists of 32% solar, 65% wind and 3% other. LREO's long-term contracted fleet has an average remaining contract life of around 10 years, the same as TERPO, and lower than PEO's at around 11 years and XPLR's at around 13 years. Fitch projects LREO's credit metrics to be stronger than PEO, XPLR, and TERPO beyond 2025. Fitch forecasts LREO's Holdco-only FFO leverage to be 4.1x in 2025 and average below 3.5x between 2026 and 2028, compared with low 4.0x in 2025 for PEO, around 4.9x for XPLR, and mid-5.0x range for TERPO. Key Assumptions - Assumes contribution of 1.8 GW of assets from Leeward Development by 2028; All projects back-levered by non-recourse project debt and tax equity and contributed, with no expected cash outlay by LREO; - Assumes all remaining cash post HoldCo debt service is upstreamed to Leeward; - No overhead or SG&A assumed at rated entity as they are allocated at the project level and project distributions are after those allocations; - Assumes no additional debt is issued at the Holdco level over the forecast period and outstanding revolver averages around $25 million; - P90 forecast as its base case. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Holding company FFO leverage ratio exceeding 4.5x on a sustained basis; - Underperformance in the underlying assets that lends material variability or shortfall to expected project distributions on a sustained basis; - Change or deviation from the stated financial policies. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Holding company FFO leverage below 3.5x on a sustained basis; - A record of adhering to financial policies under OMERS's ownership; - Improved diversification by generation sources and project's distribution. Liquidity and Debt Structure Fitch views LREO's liquidity position as adequate with around $34.5 million readily available cash at consolidated level as of March 31, 2025. In July 2025 the company amended its RCF and now has a $300 million RCF that consists of a $200 million cash sublimit and $150 million letter of credit facility and matures in May 2028. LREO also has a $450 million letter of credit facility (EDC Facility), which has a guarantee from Export Development Canada that is renewed annually. As of March 31, 2025, LREO had $50.0 million in cash borrowings and issued $86.9 million of letters of credit under its RCF, and there were no drawings on the letters of credit. Additionally, there were $383.6 million of letters of credit issued under the EDC Facility and there were no drawings on the letters of credit. Debt maturities are manageable as there are no material maturities until 2029 when its $375 million unsecured notes are due. Issuer Profile LREO is a renewable energy company and owns a portfolio of renewable energy facilities across 11 states in U.S., with around 3.1 GW of installed capacity as of June 30, 2025. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Leeward Renewable Energy Operations, LLC LT IDR BB- Affirmed BB- senior unsecured LT BB- Affirmed RR4 BB- LINQTO INC: Ch. 11 No Effect on Pre-IPO Markets, Says EquityZen --------------------------------------------------------------- Helen Partz of Coin Telegraph reports that Linqto's Chapter 11 bankruptcy, despite the company holding 4.7 million secondary shares of Ripple, will not affect the broader pre-IPO market, according to EquityZen. The filing, made Monday, July 8, 2025, sparked investor concerns about the health of private market investments. Linqto had allowed users to invest in private companies like Ripple ahead of potential IPOs, according to Coin Telegraph. EquityZen, a major secondary marketplace for private shares, said the bankruptcy has no impact on other pre-IPO businesses or its own platform, the report states. "Linqto's bankruptcy has absolutely no effect on EquityZen's operations or clients," said Atish Davda, EquityZen's co-founder and CEO, in a statement to Cointelegraph. "We can confidently state that investments through EquityZen have no connection to Linqto." About Linqto Inc. Linqto Inc. is a San Jose-based financial technology company operating in the alternative investment space. Linqto Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90187) on July 7, 2025. In its petition, the Debtor reports estimated assets and liabilities between $500 million and $1 billion. The Debtor is represented by Gabrielle A. Hamm, Esq. at Schwartz, PLLC. Breakpoint Partners LLC is the Debtor's restructuring advisor. Epiq Corporate Restructuring, LLC is the Debtor's claims agent. ThroughCo Communications, LLC is the Debtor's public relations agent. LOUISIANA PELLETS: Raymond James, et al. Lose Summary Judgment Bid ------------------------------------------------------------------ Judge Jerry Edwards, Jr. of the United States District Court for the Western District of Louisiana denied the motion for summary judgment filed by Raymond James & Associates, Inc., George Longo, and Danyal Sattar in the case captioned as CRAIG JALBERT VERSUS RAYMOND JAMES & ASSOCIATES INC ET AL, Case No. 23-cv-00505-JE-JPM (W.D. La.). On June 19, 2019, Craig Jalbert, in his capacity as Chapter 11 Liquidating Trustee for German Pellets Louisiana, LLC and Louisiana Pellets, Inc., added Raymond James et al. as parties to an existing lawsuit and set forth new claims alleging that Defendants violated state securities law. Defendants maintain that summary judgment is appropriate because the undisputed material facts establish that Plaintiff's claims prescribed before Defendants were added to this suit. This case concerns alleged misrepresentations surrounding the financing and failure of a wood pellet manufacturing facility in Urania, Louisiana. The Urania Facility was owned by Louisiana Pellets and operated by German Pellets -- entities formed by Peter Leibold, his wife Anna Kathrin Leibold, and their son Michael Leibold. Peter and Anna Kathrin Leibold controlled IPBG Pellets Beteiligungs GmbH -- LP Parent -- which owned all the outstanding common stock in Louisiana Pellets. The ultimate parent of LP Parent is the Pele Foundation, another entity controlled by the Leibolds. They also owned German Pellets' ultimate European parent company, German Pellets GmbH -- GP Parent. To finance the Project, the Louisiana Public Facilities Authority issued five series of bonds— Series 2013A, Series 2013B-C, Series 2014A-B, Series 2015, and Series 2015A. In total, the five-bond series raised over $395 million in financing for the Project. Raymond James acted as the initial purchaser and project advisor for each bond issuance. Raymond James employees, including defendants Longo and Sattar, worked directly on the Project. The Bonds were resold by Raymond James to sophisticated institutional investors. Each bond issuance was accompanied by a Limited Offering Memorandum -- LOM -- containing representations regarding the Project and its financing. Raymond James, including Longo and Sattar, assisted in preparing the LOMs and assured the investors that it had performed adequate due diligence. Despite the capital raised, the Project experienced significant delays and only began limited production in July of 2015. Operations permanently ceased four months later in November 2015 after GP and LP failed to pay utility bills. The Bonds defaulted shortly thereafter in early 2016. UMB Bank became the post-default bond trustee. In his Second Amended Petition, Plaintiff claims that the LOMs accompanying the Bonds contained material misrepresentations, either because the equity was never contributed or because any contributed funds were immediately looted. According to Plaintiff, these missing equity contributions were concealed from the Bondholders through two primary means. LP -- allegedly with Raymond James' assistance -- altered its disclosure obligations to avoid revealing 2014 audit results that would have revealed the missing equity. The Leibolds allegedly orchestrated a series of circular transactions designed to simulate the $37.26 million equity contribution. This Equity Contribution Cover-Up allegedly involved the transfer of exactly $37,262,449 from GP Parent to the Pele Foundation, to LP Parent, to Louisiana Pellets, to German Pellets, and back to GP Parent, all within the same Germany-based bank, on the same day. Plaintiff contends that Defendants violated the Louisiana Securities Act because they either knew or should have known of these misrepresentations and failed to disclose them. Plaintiff, as the assignee of claims held by certain Bondholders, filed the present claim against Defendants on June 19, 2019, in his First Amended and Restated Petition for Damages and Injunctive Relief. Plaintiff subsequently filed his Second Amended and Restated Petition for Damages and Injunctive Relief on January 29, 2021. Defendants moved for summary judgment, reasserting the peremptory exception of prescription as it had done before the state court. After its August 2021 hearing on the issue of prescription, the state court found that the Bondholders were not necessarily on inquiry notice of misrepresentations regarding equity contributions and denied the motion as to the equity-related claims. Plaintiff alleges that the LOMs contained untrue statements of material fact, or omissions of statements of material fact necessary to make those statements not misleading, regarding equity contributions that were either never made or, if made, were looted. Specifically, Plaintiff alleges that the LOMs misrepresented, inter alia, that: LP Parent contributed $37.26 million in equity prior to December 5, 2013; LP Parent contributed $20 million including a payment of $7.5 million to GP made on or around December 5, 2013, intended to fund working capital for the Urania Facility; LP Parent contributed $4 million of additional equity on or around August 4, 2014; GP Parent and LP Parent contributed additional equity of $9.57 million on or around May 20, 2025; and an additional $1.16 million of equity was contributed on or around July 20, 2015. Defendants maintain that the Bondholders had actual knowledge that equity contributions had not been made in 2016. In support of a finding of actual knowledge by 2016, Defendants rely on three key pieces of record evidence. On July 14, 2016, Norman Dittmar, financial controller for Louisiana Pellets and German Pellets sent Mintz Levin a spreadsheet detailing transactions between German Pellets and GP Parent. The Spreadsheet reflects transfers from German Pellets to GP Parent for $37.26 million on June 19, 2015, $12.8 million on December 10, 2013, and $7.67 million on January 10, 2014. Defendant claims that the Bondholders had actual knowledge of two of the transfers in the Equity Contribution Cover-up from the Statement of Financial Affairs filed in the bankruptcy proceeding on May 4, 2016. Defendants also point to a claim that German Pellets filed against GP Parent in a German insolvency proceeding in September of 2016, seeking to recover funds for the Project that had allegedly been looted. Defendants allege that the Bondholder's awareness of these transfers, which make up part of Plaintiff's Equity Contribution Cover-Up theory, and of German Pellets' looting claim, alerted them to the alleged corporate looting, which in turn informed them of the missing equity contributions and thus constituted actual knowledge of the misrepresentations in the LOMs. Plaintiff maintains that these transfers and any knowledge of post-bond issuance looting did not indicate that equity had not been contributed to the Project or reveal the misrepresentations because (1) transfers between German Pellets and GP Parent in 2015 do not bear on contributions represented to be made two years earlier by LP Parent to Louisiana Pellets, and (2) the Spreadsheet and SOFA only reflect two of the five transfers that complete the Equity Contribution Cover-Up. The Court finds that the Bondholder's knowledge of intra-company transfers is not equivalent to actual knowledge that the equity contributions were not made. Judge Edwards explains, "Even if the Equity Contribution Cover-Up theory ultimately connects these transactions to a broader scheme to conceal the lack of equity, knowledge of post-issuance intra-company transfers does not, in and of itself, constitute notice that the specific equity representations in the LOMs were false. The same is true of German Pellets' looting claims in the German insolvency proceedings. The fact that certain transfers may now be interpreted as part of a cover-up does not mean that Plaintiff or its agents understood them as such at the time. Therefore, the evidence presented does not demonstrate that Plaintiff had actual knowledge of the falsity of the equity contribution representations as of July 14, 2016. According to the Court, given the competing inferences that can be drawn from the Spreadsheet and the surrounding communications, there exists a genuine dispute of material fact as to whether the Bondholders, through their agents, had actual knowledge of the alleged misrepresentations before June 19, 2017. Summary judgment is therefore inappropriate on this ground. Defendants argue, in the alternative, that Plaintiff had constructive knowledge of the alleged equity misrepresentations no later than July 19, 2017. This, Defendants contend, shows that the Bondholders were already aware of the alleged misconduct at issue in this case and establishes that they were, at a minimum, on inquiry notice of potential claims against Defendants as far back as 2016. Plaintiff asserts that the Bondholders were reasonably investigating potential claims in 2016 but had not uncovered facts sufficient to support these claims. Testimony from the Bondholders confirms ongoing efforts to understand the Project's failure and that their investigation pointed to market conditions and operational delays, not misrepresentations in the LOMs. The Court agrees with Plaintiff. Speculative discussion of "underwriter liability" does not constitute constructive knowledge of the specific equity misrepresentations alleged in this case. Because Bondholders' discussions of underwriter liability did not lead them to discover the facts supporting their claims asserted in this suit, Defendants have not established the absence of a genuine fact dispute that that the prescriptive period began on or about a certain day as a matter of law, the Court concludes. A copy of the Court's Memorandum Ruling & Order dated June 30, 2025, is available at https://urlcurt.com/u?l=3Gr7fs from PacerMonitor.com. About Louisiana Pellets Louisiana Pellets, Inc., and German Pellets Louisiana, LLC, are members of the "German Pellets" family of companies, which is a family of related companies centered in Wismar, Germany, operating in the wood pellets industry. LPI owns a wood pellet production facility located on 334 acres of land in Urania, Louisiana. The Facility is still under construction and is not yet fully complete or operational. GPLA is the general contractor for construction of the Facility. A contract is in place with E.ON UK PLC (a United Kingdom utility company) to purchase the wood pellet production from the Facility. LPI and PLA sought Chapter 11 protection (Bankr. W.D. La. Lead Case No. 16-80162) on Feb. 18, 2016, due to cost overruns and delays in the course of construction of their still-to-be-completed wood pellet production facility. The petitions were signed by Anna-Kathrin Leibold, president and chief executive officer. The Hon. John W. Kolwe presides over the case. Louisiana Pellets estimated assets and debts at $100 million to $500 million. German Pellets estimated assets and debts at $50 million to $100 million. The Debtors tapped Locke Lord LLP as counsel. Henry Hobbs, Jr., acting U.S. Trustee for Region 5, appointed on March 15, 2016, five creditors of Louisiana Pellets Inc. and German Pellets Louisiana LLC to serve on the official committee of unsecured creditors. The Committee retained Jones Walker LLP as counsel and Cooley LLP as co-counsel. MAGNATE CORP: Claims to be Paid from Continued Operations --------------------------------------------------------- Magnate Corp., LLC filed with the U.S. Bankruptcy Court for the Middle District of Florida a Plan of Reorganization dated June 20, 2025. The Debtor is a certified building contractor located at 98 Devon Drive, Clearwater Beach, Florida. Jason Batten is the qualifying agent for the business. The company was formed on August 29, 2017. The Plan under Chapter 11 of the Bankruptcy Code proposes to pay creditors of the Debtor from the Debtor=s current and future earnings. This Plan provides for one class of priority claims; one class of secured claims; two classes of general unsecured claims; and one class of equity security holders. Unsecured creditors holding allowed claims will receive a pro rata distribution of their allowed claims. This Plan also provides for the payment of administrative and priority claims under the terms to the extent permitted by the Code or by agreement between the Debtor and the claimant. Class 3 consists of All General Unsecured Claims except for the General Unsecured Claim of Joshua Anderson and Brooke Anderson. Claimants in this class will be paid the Debtor's projected disposable income over sixteen quarters without interest, with payments of $7,500 commencing on the start of the calendar quarter immediately following the one-year anniversary of the Effective Date of the Plan and continuing quarterly thereafter. In the event that this quarter starts less than thirty days after the entry of the Confirmation Order, payment shall not commence until the following quarter. Promissory notes will be issued to each creditor in this class with allowed claims to evidence payments, which promissory notes shall be enforceable in any court of competent jurisdiction. The amount of the distribution will be considered final and binding thirty days after the filing of the Certificate of Substantial Consummation by the Debtor. Class 4 consists of the General Unsecured Claim of Joshua Anderson and Brooke Anderson. Claimants filed a claim (Claim 3) in the unliquidated amount of $1,008,427.82. The Debtor disputes this claim. Notwithstanding the foregoing, Claimants will have an allowed claim equal to any settlement claimants are able to reach with Clear Blue Insurance Company, the Debtor's insurance carrier, when the Debtor's alleged negligence occurred. Claimants will be entitled to no further distribution from the Debtor or the Bankruptcy Estate. The Debtor and Bankruptcy Estate will waive any claims which they may have against claimants. Class 5 consists of Equity Security Holders of the Debtor. Current equity will retain ownership in the Debtor post-confirmation. No distributions will be made to equity until such time as all payments in Class 3 have been made. Chrissy Tellis and Jason Batten will continue to manage the Debtor postconfirmation. The Plan will be funded by the continued operations of the Debtor. A full-text copy of the Plan of Reorganization dated June 20, 2025 is available at https://urlcurt.com/u?l=iZgis2 from PacerMonitor.com at no charge. About Magnate Corp. LLC Magnate Corp., LLC, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-01709) on March 21, 2025, listing up to $500,000 in assets and up to $1 million in liabilities. Jason Batten, authorized member, signed the petition. Judge Catherine Peek McEwen oversees the case. The Debtor is represented by: Buddy D. Ford, Esq. Buddy D. Ford, P.A. Tel: 813-877-4669 Email: buddy@tampaesq.com MARIN SOFTWARE: Files Chapter 11 Plan With Kaxxa $5.5M Funding -------------------------------------------------------------- Marin Software Incorporated announced on July 10, 2025, that it will implement a proposed financial reorganization transaction that is expected to bolster its financial position, better serve its customers around the world and effectively position the Company for long-term success in the AI age. Marin remains fully operational during the reorganization process and expects there will be no impact to its installed customer base or the innovative platforms the customers rely on to support and optimize their advertising spend. The Transaction is between Marin and Kaxxa Holdings, Inc., a strategic investor. Upon consummation of the restructuring, Kaxxa will provide $5.5 million in funding to the Company to allow it to pay off all known creditors in full and provide a distribution to stockholders. To effectuate the Transaction, Marin has voluntarily initiated a "pre-negotiated" chapter 11 case in the United States Bankruptcy Court for the District of Delaware. The Company expects to move through this process swiftly, with the goal of emerging from the court-supervised reorganization process in approximately 60 days. "For over 15 years, Marin has empowered its customers to optimize and automate their pay-per-click (PPC) programs across ad platforms, enabling them to maximize the return on their performance marketing investment with AI-driven budget allocation and insights through its selection of products, including Marin Connect, Marin Ascend, and Marin One," said Chris Lien, CEO of Marin. "As the conversation increasingly shifts to AI we are pleased to be able to position ourselves for success into the future." Marin's noticing agent, Donlin Recano, has launched a dedicated web page for its stakeholders to get more information about the court-supervised restructuring process at https://www.donlinrecano.com/Clients/mrin/Dockets. Additional Information about the Court-Supervised Process The Company has filed and received approval of a series of customary motions with the Court that will allow it to maintain its business as usual and operate in the ordinary course, including financing of up to $1.2 million from YYYYY, LLC ("5Y"), $500,000 of which is to be provided on an interim basis, to enable the Company to meet its commitments to employees, and make timely payments to vendors. As a result, the Company expects to have the financial liquidity to execute these proceedings and continue business in the ordinary course. Upon closing the Transaction, which remains subject to approval by the Court, the Company anticipates full recoveries to all of its known creditors and providing a distribution to stockholders in return for the cancellation and retirement of all existing equity, with Kaxxa and potentially 5Y acquiring 100% of the new equity of the reorganized company. The Company will continue to enable customers to analyze, create, and optimize their marketing strategy and manage their digital advertising spend effectively during this process. About Marin Software Incorporated Marin Software Incorporated provides a software-as-a-service platform for managing digital advertising across search, social, and eCommerce channels. Its platform offers analytics, workflow, and optimization tools designed to help performance marketers and agencies improve returns on advertising spend. Marin Software Incorporated sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11263) on July 1, 2025. In its petition, the Debtor reports total assets of $5,656,853 and total debts of $2,767,237. The Debtor's bankruptcy counsel is James E. O'Neill, Esq. at PACHULSKI STANG ZIEHL & JONES LLP. The Debtor's Corporate Counsel is FENWICK & WEST LLP. ARMANINO ADVISORY LLC is the Debtor's Financial Advisor and DONLIN, RECANO & COMPANY, LLC is the Debtor's Claims, Noticing & Solicitation Agent and Administrative Advisor. MARIN SOFTWARE: Gets Interim OK for DIP Loan From YYYYY LLC ----------------------------------------------------------- Marin Software Incorporated received interim approval from the U.S. Bankruptcy Court for the District of Delaware to use cash collateral and obtain debtor-in-possession financing to get through bankruptcy. The interim order authorized the Debtor to obtain an initial $500,000 from its lender, YYYYY, LLC, which has committed to provide up to $1.2 million in DIP financing. YYYYY is also the Debtor's pre-bankruptcy lender to whom the Debtor owes $300,000 under a secured promissory note dated June 6, 2025. That pre-bankruptcy loan is secured by a first-priority lien on the Debtor's intellectual property assets. This DIP loan from YYYYY is necessary to fund ongoing operations, pay administrative expenses, and support the confirmation of a Chapter 11 reorganization plan, according to the Debtor. The interest rate on the DIP loan is 10% per annum, payable in-kind, with a default rate of 13%. The DIP loan matures on the earlier of the effective date of a confirmed Chapter 11 plan, September 30, or the termination date. In connection with the DIP financing, the Debtor must satisfy key Chapter 11 milestones. These milestones include final approval of the financing by July 25; a general bar date of August 22; approval of the disclosure statement and Chapter 11 plan by September 5; and the Debtor's bankruptcy exit by September 30. As part of the DIP arrangement, YYYYY will receive protection in the form of (i) a first priority senior security interest in and lien on all property of the Debtor; (ii) liens senior to other liens. In addition, the lender will be granted allowed superpriority administrative expense claims. The liens and claims of or granted to YYYYY are subject and subordinate to the carveout for fees and claims, which include fees required to be paid to the Clerk of the Court and to the Office of the U.S. Trustee. A final hearing is scheduled for July 30. The deadline for filing objections is on July 23. The Debtor explained that it explored other financing options but was unable to find alternative sources of DIP financing, largely due to the lender's senior position in collateral and unwillingness to allow a third party to prime its lien. The Debtor believes the DIP terms were reached through arm's-length negotiations, are reasonable and are in the best interests of the estate. A copy of the DIP order is available at: http://bankrupt.com/misc/MarinSoftware_InterimDIPOrder.pdf About Marin Software Incorporated Marin Software Incorporated provides a software-as-a-service platform for managing digital advertising across search, social, and eCommerce channels. Its platform offers analytics, workflow, and optimization tools designed to help performance marketers and agencies improve returns on advertising spend. Marin Software Incorporated sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11263) on July 1, 2025. In its petition, the Debtor reports total assets of $5,656,853 and total debts of $2,767,237. The Debtor's bankruptcy counsel is James E. O'Neill, Esq. at PACHULSKI STANG ZIEHL & JONES LLP. The Debtor's Corporate Counsel is FENWICK & WEST LLP. ARMANINO ADVISORY LLC is the Debtor's Financial Advisor and DONLIN, RECANO & COMPANY, LLC is the Debtor's Claims, Noticing & Solicitation Agent and Administrative Advisor. YYYYY, LLC, as lender is represented by: Mark E. Felger, Esq. Marla S. Benedek, Esq. Cozen O'Connor 1201 N. Market Street, Suite 1001 Wilmington, DE 19801 Telephone: (302) 295-2024 Facsimile: (302) 250-4498 mfelger@cozen.com mbenedek@cozen.com MCCALL DISTRIBUTION: Seeks Chapter 11 Bankruptcy in Texas --------------------------------------------------------- On July 3, 2025, McCall Distribution Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas. According to court filing, the Debtor reports between $100 million and $500 million in debt owed to 1,000 and 5,000 creditors. The petition states funds will be available to unsecured creditors. About McCall Distribution Inc. McCall Distribution Inc. is a Pennsylvania-based distributor operating in the miscellaneous manufacturing sector. McCall Distribution Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90177) on July 3, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million each. The Debtors are represented by Caroline A. Reckler, Esq. at Latham & Watkins LLP. MCR HEALTH: To Sell Huntington Health Practice to Ace Health ------------------------------------------------------------ MCR Health, Inc. and its affiliate, AllCare Options, LLC, seek approval from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to sell behavioral health practice, free and clear of liens, interests, and encumbrances. To stem its losses arising from the Debtor's operation of Huntingdon Behavioral Health practice, the Debtor determined that it would be in the best interests of the estate to take steps to explore a potential sale of Huntingdon to Ace Health Consultant, LLC. The Debtor, as a reorganized debtor in the above-captioned Chapter 11 case, is a nonprofit organization, incorporated as a not-for-profit corporation (501(c)(3)) in the State of Florida and operates as a Federally Qualified Health Center which provides health care services, including medical, behavioral, dental and vision, to all patients, including, the underserved and underinsured communities of southwest Florida. Additionally, the Debtor provides behavioral health services to skilled nursing facilities and assisted living facilities throughout the state of Florida. The Debtors have agreed to a sale by MCR to Ace for all of MCR's claim, title, interest or right in the Huntingdon assets and have memorialized the terms of the proposal of Huntingdon Sale to Ace. Ace will pay the Debtor approximately $2,500,000.00 as purchase price for Huntingdon payable earn-out over 5 years. The following is a summary of the terms of the Proposal between MCR and Ace, with the full terms being set forth more fully in the Agreement: a. The Targeted Purchase Price is $2,500,000.00; i. Annual payments for five years 1. 15% of Earnings Before Interest, Taxes, Depreciation, and Amortization at the end of every 12 months; 2. $500,000.00 annual cap; 3. No rollover; b. Repayment of initial shortfall Feb-June 2025 (capped at $500,00.00); i. Shortfall to be paid if/when EBITDA surpasses $4,000,000.00 in any given year out of the 5 observed; c. Up to 180-day Transition Services Agreement (TSA), during which billing continues under MCR TIN while Ace assumes ALL financial risks and responsibilities and begins payer credentialing; d. The Debtor's Huntingdon employees become Ace employees immediately; i. All employees and IC contracts to be rejected by the Debtor in Bankruptcy Court ii. Ace to sign new contracts with employees and IC's e. MCR and Ace agree that: i. EBITDA to be considered for HBH service line only and not for other ACE business entities or service lines; ii. Agreement terminates if Ace/HBH fails (needs to add "change in control" language in case service line gets sold) The Debtor proposes that the Huntingdon assets will be sold free and clear of all liens, claims, interests, and encumbrances, with all valid liens, claims, interests, and encumbrances. About MCR Health, Inc. MCR Health, Inc. and AllCare Options, LLC filed Chapter 11 petitions (Bankr. M.D. Fla. Lead Case No. 24-06604) on November 8, 2024. At the time of the filing, MCR Health reported $10 million to $50 million in assets and liabilities while AllCare Options reported as much as $50,000 in assets and liabilities. Judge Roberta A. Colton oversees the cases. Steven M. Berman, Esq., at Shumaker, Loop & Kendrick, LLP, represents the Debtors as legal counsel. Joseph J. Tomaino is the patient care ombudsman appointed in the Debtors' cases. MEDEX LLC: State Court Must Hear RedMed Dispute, Bankr. Judge Says ------------------------------------------------------------------ In the adversary proceeding captioned as MEDEX, LLC v. REDMED, LLC, ADV. PRO. NO.: 24-01035-SDM (Bankr. N.D. Miss.), Judge Selene D. Maddox of the United States Bankruptcy Court for the Northern District of Mississippi granted in part and denied in part RedMed, LLC's motion to abstain under 28 U.S.C. Sec. 1334(c) or, alternatively, motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6). Specifically, the Court held that the motion to dismiss is denied without prejudice. The adversary proceeding is stayed pending final adjudication of the related Lafayette County Circuit Court litigation. The adversary proceeding arises from an ongoing dispute between MedEx and RedMed dating back to 2019. The dispute initially began with litigation filed in the Circuit Court of Lafayette County, Mississippi. At the center of this litigation was an alleged breach by John Logan, principal of MedEx, of a covenant not to compete with RedMed and related entities. This action involved multiple parties: MedEx, John Logan, Samantha Logan, M2 Billing Company, and MedPlus Urgent Care, LLC against RedMed, Covenant Investments Series II, Inc., and other related defendants. Central to the parties' dispute is the Fulton Clinic, a medical facility located in Fulton, Itawamba County, Mississippi, operated by MedPlus Fulton, LLC. MedPlus, a distinct entity from MedEx, was a member of MedPlus Fulton, while MedEx itself was not an owner or direct member. Instead, MedEx maintained a contractual relationship with MedPlus Fulton under a Management Services and Compensation Agreement, which permitted MedEx to provide administrative and management services to the Fulton Clinic. In July 2021, during mediation of the Lafayette Action, the parties purportedly reached a settlement. The key terms reportedly required John Logan to transfer his membership interest in MedPlus Fulton to its other members, cease all management and billing activities, and agree to a five-year, five-mile non-compete covenant regarding the Fulton Clinic. In return, Logan was to receive 50% of the clinic's accounts receivable billed up to a specified date, and all related litigation was to be dismissed. A dispute soon emerged over whether all parties had agreed to all essential terms of the settlement. Despite objections from the Logan Parties, the Lafayette County Circuit Court entered an order enforcing the settlement agreement. The Logan Parties appealed the enforcement order to the Mississippi Supreme Court. On Jan. 11, 2024, the Supreme Court reversed the Lafayette County Circuit Court, ruling that the parties had not reached a binding agreement on all material terms, and remanded the case for further proceedings, including unwinding the enforced settlement and proceeding to trial on the original covenant-not-to-compete claims. On Dec. 30, 2024, MedEx commenced this adversary proceeding against RedMed, seeking turnover under 11 U.S.C. Sec. 542 and injunctive relief to regain control and management rights over the Fulton Clinic. It argues that its management services contract constitutes property of its bankruptcy estate, and that the Mississippi Supreme Court's reversal mandates restoring the clinic's management to MedEx as the status quo ante. RedMed filed this abstention motion under 28 U.S.C. Sec. 1334(c), or alternatively to dismiss under Fed. R. Civ. P. 12(b)(6). It asserts that mandatory or discretionary abstention applies, arguing this adversary proceeding is merely a state-law property dispute labeled improperly as a turnover action. It further contends that MedEx lacks an ownership or possessory interest sufficient to invoke turnover provisions and has engaged in improper claim-splitting and forum shopping by seeking to litigate in bankruptcy court what should be decided in state court. MedEx disputes RedMed's arguments, asserting that this adversary proceeding is appropriately before the bankruptcy court as a legitimate and core turnover action under 11 U.S.C. Sec. 542. It argues it possesses clear and enforceable management rights over the Fulton Clinic under a valid executory contract, rights that constitute valuable property of its bankruptcy estate. MedEx maintains that neither mandatory nor discretionary abstention is proper because the proceeding involves enforcement of bankruptcy-specific rights, particularly related to assumption or rejection of executory contracts -- issues uniquely within the jurisdiction of this Court. Further, it rejects claims of forum shopping and claim-splitting, explaining its actions are necessary steps to protect critical estate interests following the Mississippi Supreme Court's reversal of the state-court enforced settlement. The Court finds that mandatory abstention under 28 U.S.C. Sec. 1334(c)(2) applies because MedEx's turnover claims involve substantial disputes regarding property rights, rendering this proceeding non-core under applicable law. Abstaining preserves state-court jurisdiction, respects principles of comity, and appropriately allows the Lafayette County Circuit Court to first conclusively resolve the underlying state-law disputes. Rather than dismissing this adversary proceeding outright, the Court will stay this action pending the state court's resolution. If, following the state court's final determination, MedEx obtains a favorable ruling clearly establishing its managerial rights, the bankruptcy court retains jurisdiction to promptly adjudicate any remaining turnover issues under 11 U.S.C. Sec. 542. This approach is consistent with the parties' briefs and relevant statutory and case law and addresses RedMed's concerns regarding claim splitting by explicitly deferring to the state-court litigation. A copy of the Court's Opinion and Order dated July 3, 2025, is available at https://urlcurt.com/u?l=xTISFj from PacerMonitor.com. About Medex LLC MedEx, LLC, a company in Saltillo, Miss., filed its voluntary petition for Chapter 11 protection (Bankr. N.D. Miss. Case No. 24-11781) on June 21, 2024, listing as much as $1 million to $10 million in both assets and liabilities. John Logan, managing member, signed the petition. The Law Offices of Craig M. GenoENO, PLLC serve as the Debtor's bankruptcy counsel. MERIT STREET: Gets Interim OK to Obtain DIP Loan From Peteski ------------------------------------------------------------- Merit Street Media, Inc. received interim approval from the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, to use cash collateral and obtain post-petition financing. The Debtor filed for Chapter 11 relief on July 2, 2025, citing operational challenges and active legal disputes, primarily with TBN and Professional Bull Riders, LLC, which have significantly impacted its financial stability. The Debtor aims to use the bankruptcy process to engage in good-faith negotiations with key stakeholders, centralize litigation in one forum, and avoid a disorganized scramble by creditors to enforce claims, all while preserving and maximizing the value of its assets. To achieve these goals, the Debtor has negotiated a DIP financing package with Peteski Productions, Inc. totaling approximately $21.4 million. This includes $13.4 million in new money and a $7.9 million "roll-up" of pre-petition bridge loans. Of the new money, $4.1 million will be made available immediately upon interim court approval, with the remainder contingent upon a favorable court ruling in an adversary proceeding initiated by the Debtor. The adversary proceeding challenges the validity of a security interest granted to TCT in the CrossSeed Convertible Note, asserting that the lien was perfected within 90 days before the bankruptcy filing and therefore constitutes an avoidable preference under 11 U.S.C. section 547(b). The outcome of this litigation is critical to unlocking the remaining DIP funds and moving forward with a potential asset sale or restructuring. The DIP facility is due and payable on the earliest to occur of (i) the date that is six months after the closing of the DIP Facilityand (ii) the effective date of a chapter 11 plan. The Debtor is required to comply with these milestones: (i) The Debtor must have filed an adversary proceeding against TCT Ministries, Inc., with respect to the granting of security or perfection of liens under that certain Convertible Promissory Note, dated as of September 9, 2024 made by the DIP Borrower in favor of the CrossSeed, Inc., as modified by that Allonge to Convertible Promissory Note, dated as of March 5, 2025 made by the Initial Holder in favor of TCT and that certain Borrower’s Consent to Assignment, dated as of March 5, 2025 made by the DIP Borrower by no later than one day after the Petition Date; (ii) The Debtor must have filed the motion seeking approval of bidding procedures by no later than five days after the Petition Date; (iii) The Bankruptcy Court must have entered the order approving the Bidding Procedures Motion by no later than 35 days after the Petition Date; and (iv) The Bankruptcy Court must have entered the Final Order by no later than 35 days after the Petition Date. The Debtor's pre-petition capital structure includes approximately $25 million under the CrossSeed Convertible Note (now held by TCT), $5 million in unsecured convertible notes from the Ribman Trust, approximately $25.4 million in convertible notes from Peteski, and a $6.97 million secured bridge loan from Peteski. The DIP facility, including the roll-up of the bridge loan, was the result of arm’s-length negotiations and is viewed by the Debtor and its advisors as the only viable financing available. Without it, the Debtor would lack the liquidity necessary to maintain operations, prosecute key litigation, and pursue a value-maximizing restructuring or sale process. About Merit Street Media erit Street Media is a television and media content production and distribution company based in Fort Worth, Texas. It appears to focus on creating, producing, and distributing television content, maintaining business relationships with major cable providers including DIRECTV and DISH Network, as well as numerous television stations and production companies. Merit Street Media sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-80156) on July 2, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million. The Debtor is represented by Sidley Austin LLP. Peteski Productions, Inc., as DIP lender, is represented by: Carl C. Butzer, Esq. Vienna F. Anaya, Esq. William T. Farmer, Esq. JACKSON WALKER L.L.P. 2323 Ross Avenue, Suite 600 Dallas, TX 75201 Telephone: (214) 953-6000 cbutzer@jw.com vanaya@jw.com wfarmer@jw.com -- and -- Charles L. Babcock, Esq. Bruce Ruzinsky, Esq. Matthew D. Cavenaugh, Esq. Emily Meraia, Esq. JACKSON WALKER L.L.P. 1401 McKinney Street, Suite 1900 Houston, Texas 77010 Telephone: (713) 752-4200 cbabcock@jw.com bruzinsky@jw.com mcavenaugh@jw.com emeraia@jw.com MICHAELS COS: S&P Affirms 'B-' Issuer Credit Rating, Outlook Neg. ----------------------------------------------------------------- S&P Global Ratings affirmed all its ratings on U.S.-based arts and crafts specialty retailer The Michaels Cos. Inc., including its 'B-' issuer credit rating, and removed them from CreditWatch, where they were placed with negative implications on April 22, 2025. S&P said, "The stable outlook reflects our expectation that the company will maintain adequate liquidity, generate modestly positive reported FOCF, and keep S&P Global Ratings-adjusted leverage in the in the low- to mid-5x area over the next 12 months. "We believe the risk that The Michaels Cos. Inc.'s profitability and cash flow will materially weaken this year has diminished because announced trade deals with China and Vietnam have reduced inventory and cost uncertainty. Additionally, Michaels' sales trends year to date have been stronger than we initially believed, and we expect it will continue to benefit this year from the bankruptcies and market exit of key competitors. "The ratings affirmation reflects Michael's improving operating performance and our expectations that it will maintain adequate liquidity and consistent credit metrics over the next 12 months. Despite ongoing trade tensions and related cost pressures, Michaels is proactively mitigating these challenges through vendor negotiations, supply chain diversification, and strategic pricing adjustments. We also anticipate sales growth in 2025, after three years of declining sales, driven by new store openings and competitor closures that support comparable store sales trends. While Michaels maintains a highly leveraged capital structure, we believe its financial obligations remain manageable over the next 12 months because we project modest FOCF generation. "We expect Michaels' operating strategies will support relatively stable profitability despite ongoing trade tensions that we believe will increase product costs. Michaels relies heavily on imported merchandise and has significant sourcing exposure to China. While the risk of further trade tension and ongoing macroeconomic uncertainty remain, recent trade deals with China and Vietnam provide greater visibility than in April, when we placed our ratings on CreditWatch negative. Michaels has adapted to the evolving challenges by implementing initiatives including accelerating product shipments when tariff rates on China were lowered from 145%, negotiating with vendors, and adjusting product pricing to manage profitability. Additionally, Michaels has broadened its vendor base to diversify its supply chain. While we expect tariff headwinds will impair margins, we believe the combined effect of mitigating actions, market share gains, and efficiency efforts will limit S&P Global Ratings-adjusted EBITDA margin erosion this year by about 100 basis points (bps) to 20%. "Michaels' strategic initiatives and competitor bankruptcies will support sales growth in 2025. We expect sales to increase 4.3% this year because of new store openings, a modest increase in core product turnover, and new customers from competitors like Joann and Party City. Revenue grew 3.9% during the first quarter of fiscal 2025, led by a 2.3% increase in comparable store sales. The company's expansion into products like fabrics, balloons, and party supplies contributed to an increase in customer transactions. Moreover, the company expects comparable store sales to expand in the high-single-digit percent area in the second quarter. We expect Michaels will continue to benefit from the closures of peers but anticipate sales gains will moderate later in the year as the consumer environment remains difficult. Moreover, Michaels' expansion plans, including the addition of up to 20 new stores annually, will further bolster sales. While the uncertain economic environment may cause consumers to pull back on discretionary purchases, Michaels' strategic investments in its product assortment should help maintain low-single-digit percent growth in sales over the next couple of years. "We project Michaels' S&P Global Ratings-adjusted leverage will remain in the mid-5x area over the next 12 months. Its S&P Global Ratings-adjusted leverage increased to 5.7x as of May 3, 2025, from 5.4x in the year-ago period, due to modestly lower profitability (we note last year's first quarter benefitted from a one-time gain). Our adjusted debt calculation includes $3.7 billion in funded debt and more than $1.6 billion in operating leases. Our projections also assume no sustained borrowings under the asset-backed lending (ABL) facility. We still expect seasonal borrowings under the ABL revolver, noting $169.1 million in borrowings as of the end of the first quarter of 2025. "At the same time, Michaels' reported leverage is higher than our adjusted calculation and is elevated, in our view, for a discretionary specialty retailer that has struggled to generate sales growth in recent years. Michaels has significant debt maturities approaching in a few years, with its $1.9 billion term loan due in April 2028, its $850 million senior secured notes due in May 2028, and its $1.1 billion unsecured notes due in May 2029. "We expect Michaels to maintain adequate liquidity over the next 12 months. Our assessment incorporates expectations for modest FOCF generation, including $65 million this year, and availability under its $1 billion ABL facility. Our FOCF projection compares to $105 million generated in 2024. Michaels utilizes its ABL revolver throughout the year to support operations and seasonal inventory purchases, with cash generation peaking during the holiday season in the fourth quarter. This peak cash flow typically funds corporate purposes and the repayment of any ABL borrowings. At the same time, it has used excess cash to opportunistically repurchase debt in open market transactions. Michaels' decision to accelerate inventory purchases in the second quarter this year, along with investments in product assortment to capture sales opportunities from the exit of Joann and Party City, will lead to greater working capital needs and cause inventory levels to increase year over year. Despite a highly leveraged capital structure, we believe Michaels' liquidity will remain sufficient to support operations over the next 12 months. However, this capital structure limits its financial flexibility to weather performance setbacks. "As a specialty craft retailer, most of Michaels' products are highly discretionary, potentially elevating the risks associated with consumer spending, economic growth, and inflation. We also believe Michaels remains significantly exposed to Chinese imports despite management working to reduce its reliance on vendors in that region. At the same time, the company generates most of its earnings and cash flow in the fourth quarter of the year. This high level of seasonality also heightens the potential risks with the sustainability of recent trends and management's ability to adequately execute on its initiatives. Therefore, we continue to apply a negative comparable ratings analysis modifier. "The stable outlook reflects our expectations that Michaels will generate modestly positive reported FOCF and sustain S&P Global Ratings-adjusted leverage in the mid-5x area along with interest coverage of about 2x over the next 12 months. "We could lower our rating on Michaels if we believe its capital structure is potentially unsustainable. This could occur if the company's operating performance weakens and FOCF becomes strained. This would likely coincide with tightening liquidity and a deterioration in credit metrics, including interest coverage meaningfully below 2x." S&P could raise its rating on Michaels if: -- The company demonstrates a sustained improvement in its operating performance, including increasing comparable store sales and rising EBITDA; and -- Credit metrics strengthen, including S&P Global Ratings-adjusted leverage of about 5x or lower, significant positive FOCF, and interest coverage in the mid-2x area. MIDWEST MOBILE: Unsecureds to Split $30K over 60 Months ------------------------------------------------------- Midwest Mobile Imaging, LLC filed with the U.S. Bankruptcy Court for the Western District of Missouri a Plan of Reorganization dated June 20, 2025. The Debtor provides mobile medical services and specializes in mobile imaging like X-ray and ultrasound. These services are usually provided in a group living situation like a nursing home. The Debtor was incorporated in 2013 and operated successfully. The Debtor sought to expand its business, and an affiliate entity was opened in 2019 that was known as MMI Laboratory Services, LLC. Although it was a separate legal entity, the businesses were operated out of the same office. MMI Laboratory Services, LLC proved unprofitable and closed in October 2023. Because of the affiliation and the similar names, the Debtor lost numerous customers who believed that the Debtor was also closing. The Debtor proposes to pay the priority claim of the Internal Revenue Service over 60 months. The Debtor estimates that claim to be approximately $15,000.00. The Debtor will also pay the priority claims of the Missouri Department of Revenue over 60 months. There are fifteen classes of secured claims that are detailed herein. The Debtor is proposing a distribution of $30,000 for prorated distribution to the unsecured nonpriority class. Class 18 consists of General Unsecured Claims. Total payments shall be $30,000 with monthly payment of $500.00 from October 01, 2025 to September 01, 2030 to be disbursed pro rata. However, the Debtor reserves the right to make annual payments to certain creditors if the creditor's pro-rata payments total $15.00 or less annually. No interest to be paid. This Class is impaired. The Debtor's Ch. 11 Plan will be implemented from ongoing business operations, collection against third parties, collection on insurance company, and contributions from the equity interest holder of the Debtor. Subject to the Plan or the order confirming the Plan, 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. A full-text copy of the Plan of Reorganization dated June 20, 2025 is available at https://urlcurt.com/u?l=Q9dCh0 from PacerMonitor.com at no charge. Counsel to the Debtor: Colin N. Gotham, Esq. Evans & Mullinix, P.A., 7225 Renner Road, Suite 200 Shawnee, KS 66217 Tel: (913) 926-8700 Fax: (913) 962-8701 Email: cgotham@emlawkc.com About Midwest Mobile Imaging Midwest Mobile Imaging, LLC, is a full-service mobile diagnostic x-ray services provider in Springfield, Mo. Midwest Mobile Imaging sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Mo. Case No. 25-60002) on January 3, 2025, with up to $500,000 in assets and up to $10 million in liabilities. Dan Taylor, member of Midwest Mobile Imaging, signed the petition. Judge Brian T. Fenimore oversees the case. Colin N. Gotham, Esq., at Evans & Mullinix, PA, represents the Debtor as legal counsel. MORTON GROVE: Wockhardt Seeks Chapter 7 Bankruptcy for Subsidiary ----------------------------------------------------------------- George Matthew of The Indian Express reports that Indian drugmaker Wockhardt Ltd announced Friday, July 11, 2025, it is exiting the U.S. generic pharmaceuticals market, citing ongoing trade tariff challenges and persistent financial losses in the segment. The move will allow the company to concentrate on its advanced product pipeline and innovation-led strategy. According to the report, Wockhardt's U.S. generics business has been unprofitable for several years, with losses reaching nearly $8 million in fiscal year 2025 alone. "After a comprehensive strategic review, the company has determined that remaining in the U.S. generics space would undermine its broader innovation agenda," it said in a stock exchange filing. As part of the exit, Wockhardt has filed for voluntary liquidation under Chapter 7 of the U.S. Bankruptcy Code for two Delaware-based subsidiaries - Morton Grove Pharmaceuticals Inc. and Wockhardt USA LLC -- both fully owned by Wockhardt Bio AG. The filings, effective July 11, 2025, will enable a structured exit from the legacy business and free up capital and management resources for higher-impact areas, the company said. The company emphasized this move is part of a broader strategic realignment of its U.S. operations to support its long-term vision of becoming an innovation-focused pharmaceutical enterprise. According to report, Wockhardt's future strategy will center on two key areas: * New antibiotic drug discovery, where it claims global leadership and a robust pipeline of differentiated products. * Biologicals, particularly insulin, leveraging advanced technologies to address critical needs in diabetes care. "By exiting the commoditized generics sector, Wockhardt is positioning itself to drive long-term value through innovation, scientific excellence, and sustainable growth," it stated. The company reaffirmed its commitment to pharmaceutical operations in India, the UK, Ireland, and other regions where performance remains strong. This transition, it added, marks a decisive shift toward a more focused, resilient, and innovation -- driven Wockhardt, better equipped to serve patients, partners, and shareholders, the report states. About Morton Grove Pharmaceuticals Inc. Morton Grove Pharmaceuticals Inc. manufactures pharmaceutical products. The Company provides liquid generic pharmaceuticals, including complex suspensions, syrup, oral and topical solutions, inhalation, and nasal spray drug products. Morton Grove Pharmaceuticals operates in the United States. Wockhardt Ltd. sought relief for its subsidiary, Morton Grove Pharmaceuticals, under Chapter 7 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No.25-17288) on July 11, 2025. The Debtor is represented by Morris S. Bauer, Esq. at Duane Morris LLP. MOSAIC COMPANIES: Sells Walker Zanger, Anthology in Chapter 11 -------------------------------------------------------------- Artivo Surfaces, the parent company of Virginia Tile and Galleher Duffy, backed by Transom Capital, announced on July 8, 2025, that it has entered into a definitive agreement to acquire the Walker Zanger and Anthology brands from Mosaic Companies. This strategic acquisition reinforces Artivo's mission to expand its portfolio of premium surface offerings, solidifying its position as a leader in flooring and surface solutions for both residential and commercial markets. Walker Zanger and Anthology have long been admired for their design excellence, craftsmanship, and commitment to quality. Walker Zanger is synonymous with timeless luxury and innovative materials, while Anthology has become a standout for its trend-forward collections and customer-first approach. Both brands will retain their distinct identities after the transaction closes, operating as dedicated divisions within Artivo. They will also benefit from Artivo's operational expertise, expanded scale and market reach. "This acquisition is a transformative step in Artivo's journey to deliver unparalleled design-driven solutions," said Sunil Palakodati, CEO of Artivo Surfaces. "We are honored to welcome the talented teams of Walker Zanger and Anthology into the Artivo family and are committed to building on their legacies of excellence and innovation. Together, we will further elevate our ability to serve architects, designers, and homeowners with premium surface solutions that inspire and endure." This transaction marks the latest milestone in Artivo's growth strategy under Transom's ownership. Following the October 2024 combination of Virginia Tile and Galleher under Artivo, and the formation of Galleher Duffy from Galleher and the Tom Duffy Company, the company continues to grow its multi-regional platform. Artivo has significantly expanded its geographic footprint and capabilities. The addition of Walker Zanger and Anthology further positions Artivo as a one-stop destination for premium surfaces, offering an unmatched combination of design, quality, and service. "This is a defining moment for Artivo as we continue to strengthen our portfolio and enhance our leadership in the premium surfaces industry," said Steve Kim, Managing Director at Transom. "Walker Zanger and Anthology bring exceptional design heritage and craftsmanship that perfectly complement Artivo's existing offerings. By integrating these iconic brands, we are unlocking new opportunities for growth, market expansion, and innovation. We are proud to support Artivo in realizing its vision to set a new standard for excellence in the surfaces industry." The acquisition is subject to customary closing conditions, including court approval as Mosaic Companies moves through a Chapter 11 bankruptcy process to facilitate the sale and address its liabilities. The acquisition does not include the Perpetua Quartz brand or other Mosaic-related company assets. Kirkland & Ellis served as legal advisor to Transom. About Artivo Surfaces Artivo Surfaces, a Transom-backed company, is the parent company to Virginia Tile, and the newly formed Galleher Duffy company. The company's network covers 64 locations in over 18 states, and they provide a comprehensive range of flooring solutions from coast to coast. Its extensive portfolio features a diverse selection of ceramic, porcelain, natural stone, hardwood, luxury vinyl, and all necessary installation materials. Combining a century of expertise with innovative design and premium products, serving both residential and commercial markets. Artivo's scale enables it to deliver industry-leading products and solutions while preserving the personalized, high-touch service its customers depend on. For more information, please visit: https://artivosurfaces.com. About Transom Capital Transom is a leading operationally focused private equity firm that thrives in complexity, specializing in identifying and unlocking value in the middle market. Founded in 2008 and headquartered in Los Angeles, Transom has established a top-quartile track record through a variety of economic cycles by employing a proven, operationally intensive strategy to drive transformative outcomes. Transom's expertise spans corporate carve-outs, lender-owned businesses, and other complex situations requiring speed, certainty and precision. Supported by one of the largest in-house operations teams among its peers, Transom delivers tailored solutions backed with functional expertise to help companies unlock their full potential. Transom's sector-flexible approach is grounded in pattern recognition, value creation, and disciplined execution. The firm provides not only capital, but also the tools, insights, and operational capabilities necessary to accelerate performance and create long-term value. For more information, visit www.transomcap.com. About Mosaic Companies Mosaic Companies, LLC is a nationally recognized leader in the specialty wall and mosaic tile, floor tile and natural stone slab categories. Our world-class luxury brands are featured in an expanding footprint of immersive showrooms that deliver a one-of-kind design experience, offering superior products of extraordinary quality and unparalleled selection. Founded as a family business more than 30 years ago, Mosaic has grown into a sophisticated portfolio of brands and products with dual headquarters in Miami and Atlanta and an expansive distribution network throughout the United States. We are committed to remaining at the forefront of innovation, continuously setting the highest standards of excellence through our exceptional product offerings and dedication to customer service. MOSAIC COS: Gets Court Okay to Tap $9MM Chapter 11 Funding ---------------------------------------------------------- Vince Sullivan of Law360 Bankruptcy Authority reports that on July 10, 2025, a Delaware bankruptcy judge approved bankrupt tile and stone seller Mosaic Cos.' request to access $9 million in Chapter 11 financing as the company advances its court-supervised sale of a major retail unit. About Mosaic Cos. LLC Mosaic Companies, LLC is a specialty surfaces distributor operating multiple brands in the high-end tile, stone, and ceramic products sector. Mosaic Companies sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11296) on July 8, 2025. In its petition, the Debtor reports estimated assets between $10 million and $50 million and estimated liabilities between $100 million and $500 million. Honorable Bankruptcy Judge Craig T. Goldblatt handles the case. The Debtor is represented by Sophie Rogers Churchill, Esq. and Matthew B. Harvey, Esq. at Morris Nichols Arsht & Tunnell, LLP. MUSTANG STONE: Seeks Chapter 11 Bankruptcy in Delaware ------------------------------------------------------ On July 8, 2025, Mustang Stone Quarries LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware. According to court filing, the Debtor reports up to $50,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Mustang Stone Quarries LLC Mustang Stone Quarries LLC is a company specializing in stone quarrying and distribution operations for the construction and design industries. Mustang Stone Quarries LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11305) on July 1, 2025. In its petition, the Debtor reports estimated assets between $50,000 and $100,000 and estimated liabilities up to $50,000. Honorable Bankruptcy Judge Craig T. Goldblatt handles the case. The Debtors are represented by Matthew B. Harvey,Esq. at Morris Nichols Arsht & Tunnell, LLP. NASSAU COMPANIES: Fitch Rates $425MM 7.85% Unsecured Notes 'BB+' ---------------------------------------------------------------- Fitch Ratings has assigned a final rating of 'BB+' to The Nassau Companies of New York (NCNY) $425 million, 7.875% senior unsecured notes due 2030. The net proceeds will be used for general corporate purposes and to repay in full outstanding borrowings on the company's existing term loan credit facility. The final rating is in line with the expected rating that Fitch assigned to the proposed debt on July 7, 2025. Please see "Fitch Publishes Nassau Financial Group, L.P. and Subsidiaries' Ratings'". Key Rating Drivers NCNY is a subsidiary of Nassau Financial Group L.P. (NFG; Long-Term Issuer Default Rating [IDR], BBB-/Stable). The 'BB+' rating on the notes reflects standard notching of one notch below NCNY's IDR based upon Fitch's baseline recovery assumption of 'Below Average' for the notes. NFG's financial leverage was 21% as of 1Q25. Pro-forma for the issuance, Fitch expects financial leverage to modestly exceed the company's target range of 25%-30%. However, Fitch expects financial leverage to decline to within the company's target range over the near-term. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Debt rating downgrades would be dependent on downgrades of NCNY's IDR. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Debt rating upgrades would be dependent on upgrades of NCNY's IDR. Date of Relevant Committee 30 June 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 Prior ----------- ------ ----- The Nassau Companies of New York senior unsecured LT BB+ New Rating BB+(EXP) NETCAPITAL INC: Adds $975K in Shares to ATM Offering ---------------------------------------------------- Netcapital Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on August 23, 2024, the Company entered into an At The Market Offering Agreement with H.C. Wainwright & Co., LLC, to sell shares of its common stock, par value $0.001 per share, having an aggregate sales price of up to $2,100,000, from time to time, through an "at the market offering" program under which Wainwright acts as sales agent. Prior to June 23, 2025, the Company sold shares of common stock having an aggregate sales price of approximately $2,099,667 under the Sales Agreement. On June 23, 2025, the Company filed a prospectus supplement under the Sales Agreement for an aggregate of $975,000 of additional shares of Common Stock. A copy of the legal opinion as to the legality of the $975,000 of shares of Common Stock issuable under the Sales Agreement and covered by the Current Prospectus Supplement available at https://tinyurl.com/5n73f4yu About Netcapital Inc. Headquartered in Boston, Mass., Netcapital Inc. -- www.netcapital.com -- is a fintech company with a scalable technology platform that allows private companies to raise capital online and provides private equity investment opportunities to investors. The Company's consulting group, Netcapital Advisors, provides marketing and strategic advice and takes equity positions in select companies. The Company's funding portal, Netcapital Funding Portal, Inc. is registered with the U.S. Securities & Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA), a registered national securities association. Spokane, Washington-based Fruci & Associates II, PLLC, the Company's auditor since 2017, issued a "going concern" qualification in its report dated July 29, 2024, citing that the Company has negative working capital, net operating losses, and negative cash flows from operations. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. As of January 31, 2025, the Company had $39,900,677 in total assets, $4,930,412 in total liabilities, and total stockholders' equity of $34,970,265. NEW EARTH: Andrew Layden Named Subchapter V Trustee --------------------------------------------------- The U.S. Trustee for Region 21 appointed Andrew Layden as Subchapter V trustee for New Earth Yoga, LLC. Mr. Layden will be paid an hourly fee of $400 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Layden declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Andrew Layden 200 S. Orange Avenue, Suite 2300 Orlando, FL 32801 Telephone: 407-649-4000 Email: alayden@bakerlaw.com About New Earth Yoga LLC New Earth Yoga, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-03782) on June 18, 2025. In its petition, the Debtor disclosed up to $50,000 in assets and up to $1 million in liabilities. Judge Lori V. Vaughan oversees the case. L. Todd Budgen, Esq., at Budgen Law, is the Debtor's bankruptcy counsel. Five Star Bank, as secured creditor, is represented by: George L. Zinkler, III, Esq. Lorium Law 101 Northeast Third Avenue, Suite 1800 Fort Lauderdale, FL 33301 Telephone: (954) 462-8000 Facsimile: (954) 462-4300 gzinkler@loriumlaw.com NEW TROPICAL DELI: Seeks Chapter 11 Bankruptcy in New York ---------------------------------------------------------- On July 10, 2025, The New Tropical Deli 2 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 up to $50,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About The New Tropical Deli 2 Inc. The New Tropical Deli 2 Inc. is a food service establishment operating in Woodhaven, Queens. The New Tropical Deli 2 Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-43311) on July 10, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Nancy Hershey Lord handles the case. The Debtors are represented by E. DuBois Raynor, Jr., Esq. at Civil Rights Consortium, Inc. NINJA MOUNTAIN: Case Summary & 19 Unsecured Creditors ----------------------------------------------------- Debtor: Ninja Mountain Bike Performance, LLC 3747 Washburn Way Klamath Falls, OR 97603 Business Description: Ninja Mountain Bike Performance, LLC provides mountain bike skills clinics and camps across the United States. The Company offers training programs for riders of all levels, taught by certified instructors, and sells related products including portable jump ramps, protective gear, and apparel. It supports riders in building confidence and improving skills through progressive instruction and nationwide events. Chapter 11 Petition Date: July 10, 2025 Court: United States Bankruptcy Court District of Oregon Case No.: 25-61937 Judge: Hon. Thomas M Renn Debtor's Counsel: Keith Y Boyd, Esq. KEITH Y. BODY, PC 724 S Central Ave 106 Medford, OR 97501 Tel: (541) 973-2422 E-mail: keith@boydlegal.net Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Richard La China as member. A full-text copy of the petition, which includes a list of the Debtor's 19 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/CQYIM4Q/Ninja_Mountain_Bike_Performance__orbke-25-61937__0001.0.pdf?mcid=tGE4TAMA NONA GOURMET: Section 341(a) Meeting of Creditors on August 13 -------------------------------------------------------------- On July 10, 2025, Nona Gourmet LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California. According to court filing, the Debtor reports between $50,000 and $100,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on August 13, 2025 at 01:30 PM at UST-SVND1, TELEPHONIC MEETING. CONFERENCE LINE:1-888-330-1716, PARTICIPANT CODE:5961145. About Nona Gourmet LLC Nona Gourmet LLC, operating as La Crème Café, a restaurant business located in Sherman Oaks, California. Nona Gourmet LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11222) on July 10, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and $100,000. Honorable Bankruptcy Judge Martin R. Barash handles the case. The Debtors are represented by Nina P. Aritonova, Esq. at The Law Office Of Nina Aritonova. NORTHERN DYNASTY: Shareholders OK All AGM Proposals --------------------------------------------------- Northern Dynasty Minerals Ltd. held its annual general meeting oin Vancouver, British Columbia, during which: At the Meeting, a total of 231,701,768 common shares were voted, representing 43% of the votes attached to all outstanding common shares as of the record date. A. The following directors were elected at the Meeting, with the following voting results for each nominee: 1. Ronald W. Thiessen * Votes For: 120,671,698 (97.38%) * Votes Withheld: 3,243,376 (2.62%) 2. Robert A. Dickinson * Votes For: 120,175,298 (96.98%) * Votes Withheld: 3,739,776 (3.02%) 3. Desmond M. Balakrishnan * Votes For: 83,674,010 (67.53%) * Votes Withheld: 40,241,064 (32.47%) 4. Christian Milau * Votes For: 119,770,884 (96.66%) * Votes Withheld: 4,144,190 (3.34%) 5. Kenneth W. Pickering * Votes For: 119,914,638 (96.77%) * Votes Withheld: 4,000,436 (3.23%) 6. Wayne Kirk * Votes For: 119,282,880 (96.26%) * Votes Withheld: 4,632,194 (3.74%) 7. Siri C. Genik * Votes For: 120,203,624 (97.00%) * Votes Withheld: 3,711,450 (3.00%) 8. Isabel Satra * Votes For: 120,156,407 (96.97%) * Votes Withheld: 3,758,667 (3.03%) 9. Josie Hickel * Votes For: 120,550,554 (97.28%) * Votes Withheld: 3,364,520 (2.72%) B. Deloitte, Chartered Professional Accountants, were appointed auditor of the Company. Shares voted in person and by proxies received represented 229,447,472 (99.03%) votes FOR and 2,254,296 (0.97%) votes WITHHELD. C. The ordinary resolution to approve the Amended and Restated Option Plan dated for reference May 2, 2025, was passed. Shares voted in person and proxies received represented 86,245,550 (69.60%) votes FOR and 37,669,524 (30.40%) votes AGAINST. D. The ordinary resolution to approve Amended and Restated Non-Employee Directors Deferred Share Unit Plan was passed. Shares voted in person and proxies received represented 114,714,986 (92.58%) votes FOR and 9,200,088 (7.42%) votes AGAINST. E. The ordinary resolution to approve the Shareholder Rights Plan Agreement between the Company and Computershare Trust Company of Canada, dated as of May 10, 2016 and as amended and extended June 19, 2025 for a further three years was passed. 117,785,972 (95.05%) votes FOR and 6,129,102 (4.95%) votes AGAINST. There were non-votes recorded (but not voted) on each resolution as follows: 107,786,694 non-votes on the resolutions to elect each director, the approval of the Amended and Restated Share Option Plan, approval of the Amended Deferred Share Unit Plan and the Renewal of the Shareholder Rights Plan, respectively. Non-votes are discretionary votes given to a broker by a US beneficial holder not allowed under Canadian Securities Regulations. About Northern Dynasty Minerals Ltd. Northern Dynasty Minerals Ltd. is a mineral exploration and development company based in Vancouver, Canada. Northern Dynasty's principal asset, owned through its wholly owned Alaska-based U.S. subsidiary, Pebble Limited Partnership, is a 100% interest in a contiguous block of 1,840 mineral claims in Southwest Alaska, including the Pebble deposit, located 200 miles from Anchorage and 125 miles from Bristol Bay. The Pebble Partnership is the proponent of the Pebble Project. In its report dated March 27, 2025, Deloitte LLP, the Company's auditor in Vancouver, Canada, issued a "going concern" qualification, stating that the Company incurred a consolidated net loss of $33 million for the year ended Dec. 31, 2024, and had a consolidated deficit of $729 million as of that date. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Northern Dynasty reported a net loss of C$36.15 million for the year ending Dec. 31, 2024, compared to a net loss of C$21 million for the year ending Dec. 31, 2023. As of Dec. 31, 2024, the Company reported total assets of C$137.16 million, total liabilities of C$39.96 million, and total equity of C$97.20 million. NORTIA LOGISTICS: Court OKs DIP Financing From RTS Financial ------------------------------------------------------------ Nortia Logistics Inc. received interim approval from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, to use cash collateral and obtain post-petition financing through a factoring agreement with RTS Financial Service, Inc. The Factoring Agreement, dated June 30, 2025, would allow the Debtor to sell its accounts receivable to RTS in exchange for immediate cash advances of 98.5% of the receivables' face value, with a 3% reserve. The interim order signed by Judge Timothy Barnes on July 11 required RTS to release 50% of the reserves, which is $24,000 within three days of the entry of the order. The remaining funds will be released at a later date, subject to court approval of a future cash collateral order. As security for the factoring obligations, RTS will be granted first-priority priming liens on the collateral, including the Debtor's real and personal property and accounts, subject and subordinate in priority only to valid, perfected, and unavoidable pre-bankruptcy liens. Moreover, RTS will be granted an allowed superpriority administrative expense claim against the Debtor with respect to the Debtor's obligations under the Factoring Agreement and the diminution, if any, in the value of RTS' interest in cash collateral. Each of the following constitutes a termination event under the Factoring Agreement, unless waived in writing by RTS: (a) the occurrence of any material breach, default, or non-compliance with the terms of the interim order; (b) the dismissal or conversion of the Debtor's Chapter 11 case; (c) the appointment of a trustee in the case except for the U.S. trustee; (d) any unauthorized expenditure by the Debtor; (e) the entry of an order granting relief from the automatic stay as to the collateral; (f) the Debtor's failure to timely make any payment required under the Factoring Agreement; or (g) any default under the Factoring Agreement. If RTS asserts a right to further protection or makes a claim for failure of adequate protection, and the court orders further protection or other payment which is not timely paid by the Debtor, then the Debtor's right to use cash collateral derived from the Factoring Agreement will automatically terminate. The order regarding cash collateral will remain in effect until August 1. A further hearing on the use of cash collateral will take place on July 29. About Nortia Logistics Inc. Nortia Logistics Inc. is a privately held, asset-based logistics provider founded in 2012 and headquartered in Franklin Park, IL. It specializes in multimodal freight transportation covering full-truckload (FTL), less-than-truckload (LTL), and intermodal services as well as warehousing, with operations across the U.S. and Canada. Nortia Logistics sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-08699) on June 2, 2025. In its petition, the Debtor reported estimated assets of $1,357,500 and total liabilities of $5,793,218. Judge Timothy A. Barnes handles the case. The Debtor is represented by David Freydin, Esq., at the Law Offices of David Freydin. RTS Financial Service, Inc., as lender, is represented by: Bryan E. Minier, Esq. Lathrop GPM, LLP 155 N. Wacker Drive, Suite 3800 Chicago, IL 60606 Tel: 312-920-3328 bryan.minier@lathropgpm.com NOVA LIFESTYLE: CEO Xiaohua Lu Joins Board of Directors ------------------------------------------------------- Nova LifeStyle, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Board of Directors received a resignation letter from Ms. Min (Mindy) Su to resign from her position as a director of the Board, effective immediately. Ms. Su will remain as the Corporate Secretary of the Company. Ms. Su indicated that her resignation is not because of any disagreement with the Company, its management or its directors. On June 23, 2025, the Board appointed Mr. Xiaohua Lu, the Chief Executive Officer of the Company, as the new director of the Board. Mr. Xiaohua Lu, age 46, has served as the Chief Executive Officer of the Company since April 21, 2025. Mr. Lu was the General Manager of Drem Consulting Pte Ltd from January 2024 to April 2025 and was an independent financial advisor for Promiseland Financial Advisory Pte Ltd. from February 2022 to April 2025. Mr. Lu served as a director of Wiselink Global Pte Ltd from January 2019 to December 2022 and as Chief Executive Officer of Blackamber Investment Limited (New Zealand) from October 2012 to December 2018. Mr. Lu received a Bachelor's degree in Vehicle Engineering and Commercial Business English from Jilin University, China in July 2001. About Nova Lifestyle Headquartered in Commerce, Calif., Nova LifeStyle, Inc. is a distributor of contemporary styled residential and commercial furniture incorporated into a dynamic marketing and sales platform offering retail as well as online selection and global purchase fulfillment. The Company monitors popular trends and products to create design elements that are then integrated into the Company's product lines that can be used as both stand-alone or whole room and home furnishing solutions. Through its global network of retailers, e-commerce platforms, stagers, and hospitality providers, Nova LifeStyle also sells (through an exclusive third-party manufacturing partner) a managed variety of high-quality bedding foundation components. Singapore-based Enrome LLP, the Company's auditor since 2024, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, citing that the Company incurred a net loss and operating cash outflow of $5,561,705 and $1,391,779 respectively for the year ended December 31, 2024 and accumulated deficit of $49,991,515 for the year ended December 31, 2024. These factors, raise substantial doubt about its ability to continue as going concern. OCULAR DEVELOPMENT: Francis Brennan Named Subchapter V Trustee -------------------------------------------------------------- The U.S. Trustee for Region 2 appointed Francis Brennan, Esq., at Whiteman Osterman & Hanna, LLP as Subchapter V trustee for Ocular Development, LLC. Mr. Brennan will be paid an hourly fee of $480 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Brennan declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Francis Brennan, Esq. Whiteman Osterman & Hanna LLP 80 State Street, 11th Floor Albany, NY 12207 Phone: (518) 487-7600 Email: fbrennan@woh.com About Ocular Development Ocular Development, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 25-10716) on June 23, 2025, with $500,001 to $1 million in assets and $100,001 to $500,000 in liabilities. Judge Patrick G. Radel presides over the case. Michael Leo Boyle, Esq. at Boyle Legal, LLC represents the Debtor as legal counsel. ODS INC: Gets Interim OK to Use Cash Collateral Until Sept. 30 -------------------------------------------------------------- ODS, Inc. got the green light from the U.S. Bankruptcy Court for the District of New Jersey to use cash collateral through September 30. The court's order authorized the Debtor's interim use of cash collateral nunc pro tunc to the petition date to pay its expenses in accordance with its budget The funds will be used for business operations such as payroll, insurance, purchases and maintenance of assets. Newtek Small Business Finance, LLC, the Debtor's secured creditor, holds a valid and perfected lien on the Debtor's accounts receivable, securing a pre-bankruptcy debt of $484,388. As protection for the use of its collateral, Newtek will be granted a perfected replacement security interest in the Debtor's post-petition assets and the proceeds thereof. To the extent this protection proves insufficient, the bank will have a superpriority administrative expense claim senior to any claim against the Debtor. As further protection, Newtek will receive a monthly payment of $23,000 beginning on July 15 and for the duration of the interim order. About ODS Inc. ODS, Inc. sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 25-16371) on June 16, 2025, listing up to $50,000 in assets and $1,000,001 to $10 million in liabilities. Judge Jerrold N Poslusny Jr presides over the case. E. Richard Dressel, Esq. at Lex Nova Law, LLC is the Debtor's bankruptcy counsel. Newtek Small Business Finance, LLC, as secured creditor, is represented by: David Fornal, Esq. Maselli, Mills & Fornal, P.C. 400 Alexander Road, Suite 101 Princeton, NJ 08540 (609) 452-8411 dfornal@masellilaw.com OFFSHORE SAILING: Court OKs Sailboat Sale to Bonefish Boats ----------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Ft. Myers Division, has approved Offshore Sailing School Ltd. Inc. to sell sailboat, free and clear of liens, claims, and encumbrances. The Debtor is a Florida limited liability company which previously owned and operated a sailing school. The School is no longer operating, and the Debtor intends to file a liquidating plan. In order to fund the Debtor's proposed liquidating plan, the Debtor intends to liquidate the Debtor's assets, which consist in large part of sailboats, but also consist of a certain powerboat, a 2016 Grady White Fisherman 180 with Yamaha 150 HP outboard engine, Florida title ID number NTLJW527A616t (Grady White). The Agreement provides for payment of the Purchase Price in cash or immediately available funds at closing. There is no broker or other entity entitled to a commission on the sale contemplated by the Agreement. The Grady White is unencumbered. The Court has authorized the Debtor to sell Grady White in accordance with the Agreement for Sale of Watercraft (Boat) to Bonefish Boats and Trailers, LLC for $25,500.00. The net proceeds of the sale shall be held in the Debtor's debtor-in-possession account and may be used for post-petition operating costs. The Court found that the Buyer is purchasing the Property in good faith, therefore, unless the sale of the Property is stayed pending appeal, the reversal or modification of the Order on appeal shall not affect the validity of the sale of the Property to the Buyer. About Offshore Sailing School Ltd. Offshore Sailing School Ltd. Inc. is a provider of sailing and powerboating instruction in the U.S., offering certification courses in cruising, passage making, and racing. It also conducts team-building sailing activities and organizes flotilla vacations for certified sailors. With over 60 years of experience, the school operates in Florida and the British Virgin Islands under the leadership of Steve and Doris Colgate. Offshore Sailing School Ltd. Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00921) on May 21, 2025. In its petition, the Debtor reports total assets as of Feb. 28, 2025 amounting to $611,760 and total liabilities as of Feb. 28, 2025 totaling $2,277,797. The Debtors are represented by Leon Williamson, Esq. at WILLIAMSON LAW FIRM. OFFSHORE SAILING: Sailboats Sale to Community Sailing OK'd ---------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Ft. Myers Division, has approved Offshore Sailing School Ltd. Inc. to sell sailboats, free and clear of liens, claims, and encumbrances. The Debtor is a Florida limited liability company which previously owned and operated a sailing school. The School is no longer operating, and the Debtor intends to file a liquidating plan. In order to fund the Debtor's proposed liquidating plan, the Debtor intends to liquidate the Debtor's assets, which consist in large part of sailboats, including 8 Colgate 26 sailboats, which are itemized as follows: a. Colgate 26 Sailboat - 2013-Hull ID OSN263338313 b. Colgate 26 sailboat - 2015-Hull ID OSN26352E516 c. Colgate 26 Sailboat - 2007 with asymmetrical spinnaker - 2007- Hull ID OSN26281.A707 d. Colgate 26 Sailboat - 2007-Hull ID OSN26288E707 e. Colgate 26 Sailboat with asymmetrical spinnaker - 2012 Hull ID OSN263288212 f. Colgate 26 Sailboat with asymmetrical spinnaker - 2004 Hull ID OSN26208A404 g. Colgate 26 Sailboat with asymmetrical spinnaker - 2017 Hull ID OSN26370K617 h. Colgate 26 Sailboat with asymmetrical spinnaker - 2016 Hull ID OSN26353F516 The Court has authorized the Debtor to sell the Sailboats in accordance with the Asset Purchase Agreement to Community Sailing New Orleans, a Louisiana corporation for the total cash price of $126,750.00, free and clear of liens, claims, and interests. The net proceeds of the sale shall be held in the trust account of the Debtor's counsel until such time as the funds are deposited into a newly formed debtor-in-possession account that requires the signature of counsel for the Debtor until further order of the Court. The Court finds that the Buyer is purchasing the Property in good faith, therefore, unless the sale of the Property is stayed pending appeal, the reversal or modification of the Order on appeal shall not affect the validity of the sale of the Property to the Buyer. About Offshore Sailing School Ltd. Inc. Offshore Sailing School Ltd. Inc. is a provider of sailing and powerboating instruction in the U.S., offering certification courses in cruising, passage making, and racing. It also conducts team-building sailing activities and organizes flotilla vacations for certified sailors. With over 60 years of experience, the school operates in Florida and the British Virgin Islands under the leadership of Steve and Doris Colgate. Offshore Sailing School Ltd. Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00921) on May 21, 2025. In its petition, the Debtor reports total assets as of Feb. 28, 2025 amounting to $611,760 and total liabilities as of Feb. 28, 2025 totaling $2,277,797. The Debtors are represented by Leon Williamson, Esq. at WILLIAMSON LAW FIRM. ONDAS HOLDINGS: Board Removes Interim Title, Names Neil Laird CFO ----------------------------------------------------------------- As previously reported on Ondas Holdings Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 21, 2024, the Board of Directors appointed Neil Laird, Interim Chief Financial Officer (principal financial and accounting officer), Treasurer and Secretary of the Company, effective June 21, 2024. On June 20, 2025, the Board removed interim from Mr. Laird's title and appointed Mr. Laird Chief Financial Officer (principal financial and accounting officer), Treasurer and Secretary of the Company, effective June 22, 2025. Employment Agreement with Chief Financial Officer, Treasurer and Secretary On June 23, 2025, the Company entered into an employment agreement with Mr. Laird in connection with his appointment as Chief Financial Officer, Treasurer and Secretary of the Company, effective June 22, 2025. Pursuant to the Employment Agreement, Mr. Laird will be paid an annual base salary of $300,000 and will be eligible to participate in the benefits plan established for Company employees. Mr. Laird will also be: (i) paid a one-time discretionary bonus of $50,000 to be paid on July 1, 2025, (ii) granted 100,000 shares of the Company's common stock underlying time-based restricted stock units, which shall vest in eight successive equal quarterly installments, and (iii) granted non-qualified stock options to purchase 100,000 shares of the Company's common stock, which shall become exercisable in eight successive equal quarterly installments. Pursuant to the Employment Agreement, Mr. Laird will be an at will employee of the Company. If: (i) Mr. Laird is terminated by the Company without Cause (as defined in the Employment Agreement), (ii) Mr. Laird terminates his employment due to Constructive Termination (as defined in the Employment Agreement), or (iii) Mr. Laird's employment terminates as a result of his disability, the Company will provide Mr. Laird the following compensation: (a) Accrued Obligations (as defined in the Employment Agreement) through the date of termination and (b) reimbursement for all COBRA premium continuation payments for Mr. Laird and his eligible dependents for every benefit for which COBRA is applicable, for a period of six months following the date of termination. Additionally, if Mr. Laird is terminated in connection with a Change in Control (as defined in the Employment Agreement), the Company will provide Mr. Laird the following compensation: (i) Accrued Obligations (as defined in the Employment Agreement) through the date of termination, (ii) continued payment of base salary and plan benefits on a monthly basis for a period of six months, following the date of termination, including reimbursement for all COBRA premium continuation payments for Mr. Laird and his eligible dependents for every benefit for which COBRA is applicable, for a period of six months following the date of termination, and (iii) immediately accelerate vesting for all outstanding restricted stock units and stock options. The payment of the severance payments described above are conditioned on Mr. Laird's continued compliance with the terms of the Employment Agreement and the IP Agreement (as defined in the Employment Agreement), and Mr. Laird executing, delivering to the Company and not revoking a general release and non-disparagement agreement. The Employment Agreement contains standard non-compete and non-solicitation provisions. About Ondas Holdings Marlborough, Mass.-based Ondas Holdings Inc. provides private wireless data solutions through its subsidiary, Ondas Networks Inc., and commercial drone solutions through Ondas Autonomous Systems Inc. (OAS), which includes wholly owned subsidiaries American Robotics, Inc. and Airobotics LTD. OAS focuses on the design, development, and marketing of autonomous drone solutions, while Ondas Networks specializes in proprietary, software-based wireless broadband technology for both established and emerging commercial and government markets. Together, Ondas Networks, American Robotics, and Airobotics deliver enhanced connectivity, situational awareness, and data collection capabilities to users in defense, homeland security, public safety, and other critical industrial and government sectors. In an audit report dated March 12, 2025, the Company's auditor, Rosenberg Rich Baker Berman, P.A., issued a "going concern" qualification, citing that the Company has experienced recurring losses from operations, negative cash flows from operations and a working capital deficit as of Dec. 31, 2024. As of Dec. 31, 2024, Ondas Holdings had $109.62 million in total assets, $73.68 million in total liabilities, $19.36 million in redeemable noncontrolling interest, and $16.58 million in total stockholders' equity. OSAIC HOLDINGS: S&P Affirms 'B' ICR on Acquisition and Refinancing ------------------------------------------------------------------ S&P Global Ratings affirmed its 'B long-term issuer credit and issue ratings on Osaic Holdings Inc. and its senior secured debt. S&P also affirmed its 'CCC+' issue rating on the company's senior unsecured debt. The outlook on the issuer credit rating is stable. S&P said, "The affirmation reflects that despite the transactions we expect Osaic's debt to run-rate S&P Global Ratings-adjusted EBITDA and debt service coverage to remain supportive of the current ratings, at 5.6x and 2.3x respectively. While the transactions increased debt leverage slightly from 5.5x, debt service coverage actually improved from about 2.1x because of the replacement of some older high-cost debt." Osaic is acquiring CW Advisors, an independent registered investment advisor (RIA), for $850 million. To help finance the acquisition, Osaic is upsizing its term loan by $700 million to $3 billion, while also issuing $520 million in senior secured notes and $400 million in senior unsecured notes to repay a similar amount of higher-cost debt. S&P said, "We view positively the expansion of Osaic's capabilities that comes with the CW acquisition. CW Advisors brings not only its $14 billion in client assets and 60 financial advisors, but a platform for Osaic to expand in the higher margin RIA business. CW Advisors will become Osaic's new fourth channel RIA platform for employee financial advisors, supporting further growth in this channel. This builds on Osaic's already solid franchise as one of the largest independent brokers in the U.S. While Osaic is much smaller than the largest retail brokerage and investment management companies (such as Charles Schwab or Morgan Stanley), it is the third-largest independent brokerage firm (behind LPL and Ameriprise). Pro forma the CW acquisition, Osaic will have $700 billion in total client assets, cementing its place as one of the largest independent brokers in the U.S. "Our ratings on Osaic remain constrained by its private-equity ownership and aggressive financial management. This includes an acquisitive growth strategy, high debt burden, modest debt service coverage, and negative tangible equity. Positively though, Osaic has limited credit and market risk exposure and appetite. This is because the firm does not hold securities and does not self-clear its brokerage activity. Osaic also has good liquidity with a substantial cushion to its covenants, no near-term debt maturities, and an undrawn $1 billion term revolver. "The stable outlook reflects our expectation that Osaic's S&P Global Ratings-adjusted debt to EBITDA will remain at about 5.5x and debt service coverage just over 2x, even as the company's aggressive financial management and private-equity ownership constrain our view on capitalization and the rating. "Over the next 12 months, we could lower the rating if we expect Osaic's interest coverage to approach 2x, or S&P Global Ratings-adjusted debt to EBITDA to substantially increase above 6.0x. "An upgrade is unlikely in the next 12 months because of the private-equity ownership. Over the longer term, we could upgrade Osaic if we expect it to sustain leverage well below 4x across interest rate and market cycles because of a demonstrated commitment to a reduced debt appetite." OUTER AISLE GOURMET: Specialty Food Manufacturer Seeks Chapter 11 ----------------------------------------------------------------- rkc.llc. reports that Outer Aisle Gourmet, LLC, a specialty food producer based in Ventura, California, has filed for Chapter 11 bankruptcy in the Central District of California. The July 10, 2025, filing shows the company has between $100,000 and $500,000 in assets, while liabilities range from $10 million to $50 million. According to the report, the company's bankruptcy filing highlights substantial debt, largely owed to private investors and noteholders. Among its largest unsecured creditors are Robert Montgomery Trustee ($1.06 million), Albert Foley ($645,000), Bluewater Investors ($606,000), and David Glenwinkel ($546,000). Outer Aisle also owes trade debts to suppliers like Worldwide Produce and Food Source LLC, reflecting pressures in its supply chain, according to rkc.llc. The petition lists between 200 and 999 creditors and indicates that funds will be available to pay unsecured creditors after administrative costs are covered. The company is represented by Garrick A. Hollander of Winthrop Golubow Hollander, LLP, the report states. About Outer Aisle Gourmet LLC Outer Aisle Gourmet LLC is a Ventura-based specialty food manufacturer Outer Aisle Gourmet LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10915-RC) on July 9, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $10 million and $50 million. The Debtor is represented by Garrick A. Hollander at Winthrop Golubow Hollander, LLP. OUTER AISLE: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Outer Aisle Gourmet, LLC 2879 Seaborg Ave., Suite 102 Ventura, CA 93003 Business Description: Outer Aisle Gourmet, LLC produces grain-free bread alternatives made primarily from cauliflower, including sandwich thins and pizza crusts. The Company operates out of Ventura, California, and distributes its products through retail and online channels across the United States. Chapter 11 Petition Date: July 10, 2025 Court: United States Bankruptcy Court Central District of Oklahoma Case No.: 25-10915 Judge: Hon. Ronald A Clifford III Debtor's Counsel: Garrick A. Hollander, Esq. WINTHROP GOLUBOW HOLLANDER, LLP 1301 Dove Street, Suite 500 Newport Beach, CA 92660 Tel: 949-720-4100 Fax: 949-720-4111 E-mail: ghollander@wghlawyers.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $10 million to $50 million The petition was signed by Charles Sweat as Chairman of the Board of Managers. 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/2TC4E3Y/Outer_Aisle_Gourmet_LLC__cacbke-25-10915__0001.0.pdf?mcid=tGE4TAMA OUTFRONT MEDIA: Cuts 6% of Workforce in Restructuring Plan ---------------------------------------------------------- OUTFRONT Media Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission of a restructuring and reduction in force plan intended to achieve the Company's strategic goals of increasing sales demand, enhancing customer experience, optimizing internal cost efficiencies, and realigning its organization. The Plan provides for a reduction of the Company's workforce by approximately 120 employees, or 6% of the Company's total number of employees. The Company expects the reduction in force associated with the Plan to be completed by the end of the second quarter of 2025. The Company estimates that it will incur approximately $18.6 million in total restructuring charges in connection with the Plan, consisting of severance payments, employee benefits and related costs and professional fees. The Company expects to incur these charges in the second quarter of 2025. These charges consist of approximately $16.4 million of future cash expenditures, the majority of which will be made over the next twelve months, and approximately $2.2 million in non-cash charges for stock-based compensation. The Company intends to exclude the charges associated with the Plan from its non-GAAP financial measures. The charges and cash expenditures that the Company expects to incur in connection with the Plan are subject to a number of assumptions, and actual results may differ materially. The Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur in connection with the implementation of the Plan. The Company expects projected cost savings on an annualized basis of approximately $18.0 million to $20 million in connection with the Plan, with the estimated fiscal year 2025 projected cost savings associated with the Plan contemplated in the 2025 financial guidance the Company provided on May 8, 2025. About OUTFRONT Media Inc. Headquartered in New York, OUTFRONT Media Inc. leases advertising space on out-of-home advertising structures and sites. * * * Egan-Jones Ratings Company, on September 10, 2024, maintained its 'CCC' foreign currency and local currency senior unsecured ratings on debt issued by OUTFRONT Media Inc. PARADOX ENTERPRISES: Cash Collateral Access Extended to Aug. 29 --------------------------------------------------------------- Paradox Enterprises, LLC received interim approval from the U.S. Bankruptcy Court for the Eastern District of Tennessee, Winchester Division to use cash collateral until August 29, marking the 12th extension since its Chapter 11 filing. The 12th interim order authorized the Debtor to use cash collateral to pay the expenses set forth in its budget and fund payments to Legalist DIP Fund I, LP and Legalist DIP SPV II, LP. The Debtor's budget shows total disbursements of $29,890 for July and $30,450 for August. Legalist DIP Fund I and Legalist DIP SPV will be granted a replacement lien to the extent that the use of cash collateral results in a decrease in the value of their collateral. The secured creditors will receive a weekly payment of $2,500 as further protection and another weekly payment of $1,500 to make up for the Debtor's failure to pay $16,000 under the court's 11th interim order. A final hearing is scheduled for August 27. About Paradox Enterprises Paradox Enterprises, LLC owns various properties valued at $6.1 million. Paradox Enterprises sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Tenn. Case No. 24-10826) on April 5, 2024, with $6,174,373 in assets and $13,012,125 in liabilities. Eric Shelley, managing member, signed the petition. Judge Nicholas W. Whittenburg oversees the case. Denis Graham Waldron, Esq., at Dunham Hildebrand, PLLC is the Debtor's legal counsel. Secured creditors Legalist DIP Fund and Legalist DIP SPV are represented by: Gregory C. Logue, Esq. Woolf, McClane, Bright, Allen & Carpenter, PLLC P.O. Box 900 Knoxville, TN 37901 Phone: (865)215-1000 Fax: (865)215-1001 logueg@wmbac.com PARKERVISION INC: Registers More Shares Under 2019 Equity Plan -------------------------------------------------------------- ParkerVision, Inc. filed a Registration Statement on Form S-8 with the U.S. Securities and Exchange Commission to register additional securities issuable pursuant to the Company's 2019 Long-Term Incentive Plan and consists of only those items required by General Instruction E to Form S-8. The Company incorporated by reference into the Registration Statement the contents of the prior registration statements on Form S-8 relating to the 2019 Plan, filed with the Securities and Exchange Commissions on April 21, 2020 (File No. 333-237761), November 19, 2021 (File No. 333-261231), and June 7, 2023 (File No. 333-272485). Full text copy of the Registration Statement is available at https://tinyurl.com/47r7p2nw About ParkerVision Jacksonville, Fla.-based ParkerVision, Inc., and its wholly-owned German subsidiary, ParkerVision GmbH is in the business of innovating fundamental wireless hardware technologies and products. The Company has designed and developed proprietary RF technologies and integrated circuits based on those technologies, and the Company licenses its technologies to others for use in wireless communication products. Atlanta, Ga.-based Frazier & Deeter, LLC, the Company's auditor since 2024, issued a "going concern" qualification in its report dated March 24, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company's current resources are not sufficient to meet their liquidity needs for the next 12 months, the Company has losses from operations, negative operating cash flows and an accumulated deficit. These factors raise substantial doubt about the Company's ability to continue as a going concern. Parkervision disclosed $5,879,000 in total assets, $52,291,000 in total liabilities, and $46,412,000 in total shareholders' deficit at December 31, 2024. PAVMED INC: Veris Raises $2.5M in Private Offering -------------------------------------------------- PAVmed Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that Veris Health Inc., a majority owned subsidiary of the Company, entered into subscription agreements with certain accredited investors, pursuant to which Veris agreed to sell and the Investors agreed to purchase 1,785,714 shares of common stock, par value $0.001 per share, of Veris and warrants to purchase 1,785,714 shares of Veris Common Stock, at a purchase price of $1.40 per share of Veris Common Stock. On June 23, 2025, Veris consummated the Offering, generating gross proceeds to Veris of approximately $2.5 million. The proceeds of the offering will be used to continue development activities related to Veris' implantable physiological monitor and for general working capital purposes. After the Offering, the Company owns 75.3% of the Veris Common Stock on a fully-diluted basis. The Subscription Agreement contains customary representations, warranties, covenants and indemnities of Veris and the Investors, as well as a covenant by Veris to provide the Investors with protection against subsequent equity raises by Veris at a lower valuation (solely to the extent the Investors continue to hold the shares issued in the Offering), with such protection to be effected through the issuance of additional shares of Veris Common Stock. In addition, Veris granted certain of the Investors a 100% participation right in future offerings of equity securities by Veris, subject to existing participation rights of the Company's debt holder, and agreed not to incur any indebtedness until December 23, 2026, subject to certain exceptions. In accordance with the Subscription Agreement, Veris also entered into a registration rights agreement (the "Registration Rights Agreement") with the Investors, pursuant to which Veris granted the Investors customary demand and piggyback registration rights. The Investors may exercise the demand registration rights only if Veris consummates a going public transaction. The Veris Warrants become exercisable six months after issuance and expire on the earlier of: (i) the five-year anniversary of the initial exercise date and (ii) the 60th day following receipt by Veris of FDA approval of its implantable physiological monitor. The Veris Warrants have an exercise price of $1.40 per share, subject to adjustment as described below. The Veris Warrants may be exercised only for cash. The exercise price and number and type of securities or other property issuable on exercise of the Veris Warrants may be adjusted in certain circumstances, including in the event of a stock split or combination, stock dividend, or a recapitalization, reorganization, merger or similar transaction. In addition, if Veris completes a subsequent equity raises at a lower valuation, the exercise price of the Veris Warrants will be reduced to such lower valuation and the number of shares issuable on exercise of the Veris Warrants will be increased so that the aggregate exercise price remains the same. In addition, a holder of the Veris Warrants will be entitled to participate in rights offerings or pro rata distributions by Veris. The offer and sale of Veris Common Stock and Veris Warrants, and the offer and sale of the shares of Veris Common Stock issuable upon exercise of the Veris Warrants, are exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated thereunder, because, among other things, the transaction did not involve a public offering, the investors are accredited investors, the investors are taking the securities for investment and not resale, and Veris took appropriate measures to restrict the transfer of the securities. The securities have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an exemption from registration. About PAVmed Headquartered in New York, NY, PAVmed Inc. -- http://www.pavmed.com -- is a commercial-stage medical technology company operating across the medical device, diagnostics, and digital health sectors. Its subsidiaries include Lucid Diagnostics Inc., which offers tools for early detection of esophageal precancer, and Veris Health Inc., which focuses on remote cancer care monitoring using implantable sensors and connected health devices. In its report dated March 24, 2025, Marcum LLP, the Company's auditor since 2019, issued a "going concern" qualification, citing that the Company has a significant working capital deficiency, has incurred significant operating losses, and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's aiblity to continue as a going concern. PavMed reported a net income attributable to common stockholders of $31.97 million for the year ending Dec. 31, 2024, compared to a net loss attributable to common stockholders of $66.27 million for the year ending Dec. 31, 2023. PavMed has reported in its 2024 Annual Report that it has incurred net losses since its inception in June 2014, primarily funding operations through the issuance of common and preferred stock, warrants, and debt. The Company noted that its ability to generate sufficient revenue from products in development and achieve profitability depends on factors beyond its control. Despite efforts to reduce operating expenses, PavMed expects to continue incurring losses as it maintains its commercial infrastructure, develops products, and faces public company-related costs. PEARL RESOURCES: Ruling in Buckingham Adversary Case Upheld ----------------------------------------------------------- Chief Judge Eduardo V. Rodriguez of the United States Bankruptcy Court for the Southern District of Texas denied the motion of Pearl Resources LLC and Pearl Resources Operating Co. to reconsider the Court's Feb. 28, 2025 Memorandum Opinion in the adversary proceeding captioned as DAWN BUCKINGHAM, MD, Plaintiff, VS. PEARL RESOURCES LLC and PEARL RESOURCES OPERATING CO. LLC, Defendants, ADVERSARY NO. 20-3169 (Bankr. S.D. Tex.). On March 3, 2020, Pearl Resources LLC and Pearl Resources Operating Co. filed for relief under Chapter 11 of the United States Bankruptcy Code. On May 28, 2020, George P. Bush, Commissioner of the Texas General Land Office, by and through the Office of the Texas Attorney General, filed the Complaint for Declaratory Judgment against Pearl Resources LLC and Pearl Resources Operating Co. On Feb. 28, 2025, this Court issued its Memorandum Opinion and Judgment. Pearl seeks for the Court to reconsider its determinations as to: (1) sovereign immunity, and (2) awarding of attorney's fees to the General Land Office pursuant to Texas Civil Practice and Remedies Code Sec. 38.001. Pearl asserts that a manifest error of law exists as to this Court's consideration of sovereign immunity as to the General Land Office. As this Court noted in its Memorandum Opinion, the General Land Office waived immunity from suit to the extent required for the lawsuit's complete determination, which includes the adjudication of Pearl's applicable counterclaims. Instead, Pearl disputes whether the General Land Office waived immunity from liability. The Fifth Circuit, in Carty v. State Office of Risk Mgmt., teaches that the question of waiver of sovereign immunity from liability is governed by state law. It has also explained that under established Texas law, sovereign immunity from liability is treated as an affirmative defense to liability. The sovereign immunity must be pleaded or else it is waived. The Court finds that not once has the General Land Office ever expressly pled sovereign immunity as an affirmative defense. Nor has the General Land Office pointed to any such pleading. As such, pursuant to the Fifth Circuit's holding in Carty, the Court grants Pearl's Motion to Reconsider in part and finds that the General Land Office waived sovereign immunity as to liability. Accordingly, Pearl's recovery of $40,577,031 that was previously barred by sovereign immunity, is now recoverable from the General Land Office. Pearl asserts that a manifest error of law exists, as it contends the General Land Office is not entitled to attorneys' fees under Texas Civil Practice and Remedies Code Sec. 38.001(b). Specifically, Pearl notes that the version of the Texas Civil Practice and Remedies Code Sec. 38.001(b) in effect at the lawsuit's inception did not permit recovery of attorney's fees against Limited Liability Companies, such as Pearl. The Debtor also asserts that it is manifest error for the Court to indicate that the General Land Office may obtain attorneys' fees beyond an offset only. The Court finds no manifest error of law exists as to the issue, as the General Land Office has consistently maintained its position that its recovery of attorneys' fees was based on a contract, pursuant to Texas Civil Practice and Remedies Code Sec. 38.001(b). The Court also finds that no manifest error exists which prohibits the General Land Office from recovering its attorneys' fees. Accordingly, the General Land Office's Objection to Reconsideration is sustained. Pearl's Motion to Reconsider is denied. Application for Fees Pursuant to the Court's Feb. 28, 2025, Memorandum Opinion and Judgment, the General Land Office filed its Application for Fees, seeking a total of $632,887 in fees and expenses for a total of 1,579.1 professional hours in the adversary proceeding. General Land Office acknowledges two payments made by Pearl to date in connection to previous awards in the amount of $23,216.14 and $26,417. Accordingly, the General Land Office asserts that it is contractually entitled to a full total of $583,254. Pearl's Objection to Fees asserts that the General Land Office cannot recover attorneys' fees because: (1) the State Leases do not permit recovery; (2) because Texas Civil Practices and Remedies Code Sec. 38.001 does not apply to Pearl Resources, an LLC; (3) the General Land Office failed to satisfy Texas Civil Practices and Remedies Code Sec. 38.002's presentment requirements; (4) the General Land Office failed to establish that the fees were reasonable and necessary; (5) the time entries are impermissibly vague; (6) there was failure to segregate fees; (7) success was not achieved relative to the loss; and (8) the fees are not substantiated. The Court held that Pearl's Objection to Fees is sustained in part, and the Office of Attorney General Fees are reduced by 30% from $292,812 to $204,968. Pearl's Objection to Fees is sustained in part and the General Land Office's requested expenses are reduced by 30% from $8,643.81 to $6,050.67. Pearl's Objection to Fees is sustained in part, the overall fees requested in the Application for Fees will be reduced by an additional 20% to account for the results obtained. The Court shall reduce all fees by an additional 20% after all line-item reductions are deducted, resulting in a fee award of $163,975.00 in OAG Fees, and $279,170.40 in the Ross & Smith Fees. Pearl has made two payments in the amount of $23,216.14 and $26,417.19 which are deducted from the Final Award of $447,985.94, resulting in a total recovery of $398,352.61. However, because the Court determined that Pearl may recover $40,577,031 that was previously barred by sovereign immunity, the Final Award of $398,352.61 will be deducted from this recovery. Accordingly, Pearl may recover $40,178,678.40 from the General Land Office. A copy of the Court's Memorandum Opinion dated June 27, 2025, is available at https://urlcurt.com/u?l=VJVcar from PacerMonitor.com. About Pearl Resources Pearl Resources, LLC is a privately held company in the oil and gas extraction industry. Pearl Resources and Pearl Resources Operating Co., LLC filed their voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-31585) on March 3, 2020. The petitions were signed by Myra Dria, manager and sole member of Pearl Resources Operating and manager of Pearl Resources. At the time of the filing, each Debtor disclosed assets of between $10 million and $50 million and liabilities of the same range. The Debtors tapped Walter J. Cicack, Esq., at Hawash Cicack & Gaston, LLP, as legal counsel and David G. Gullickson as accountant. PELICAN PROS: Section 341(a) Meeting of Creditors on August 11 -------------------------------------------------------------- On July 10, 2025, Pelican Pros LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Louisiana. According to court filing, the Debtor reports up to $50,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on August 11, 2025 at 11:00 AM by Telephone Conference Line: 888-330-1716. Participant Passcode: 8461305. About Pelican Pros LLC Pelican Pros LLC is a New Orleans-based company. Pelican Pros LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 25-11446) on July 10, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities up to $50,000. Honorable Bankruptcy Judge Meredith S. Grabill handles the case. The Debtors are represented by Edwin M. Shorty, Jr., Esq. PLANO HOLDCO: Fitch Assigns 'B+' First-Time IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has assigned Plano Holdco, Inc. (dba Perficient) a Long-Term Issuer Default Rating (IDR) of 'B+'. Fitch has also affirmed the senior secured revolving credit facility (RCF) and term loan at 'BB-' with a Recovery Rating of 'RR3'. The Rating Outlook is Stable. Perficient's revenue declined over the past 12-18 months, resulting in EBITDA lower than Fitch's expectations and pushing the corresponding EBITDA leverage above its negative sensitivity of 5.0x. However, the ratings are supported by the FCF metrics, which are strong for the single-B category. Low capital intensity, adequate liquidity, and no near-term maturities provide financial flexibility, supporting the credit profile. Fitch has withdrawn Perficient, Inc's Long-Term IDR due to the reorganization of the take-private transaction. Plano Holdco is the financial filer, and Perficient's secured RCF and term loan will be moved to Plano Holdco. Key Rating Drivers Revenue Weakness: Perficient's revenue fell almost 6% in 2024 with no clear recovery timeline. Although economic uncertainty has led some clients to delay projects, the weak topline results raise concerns around Perficient's technical talent mix and service offerings. As technical budgets shift toward machine learning and AI projects, and total IT spend continues to grow, Perficient's ability to capture this market expansion will drive its revenue trajectory. High Leverage: EBITDA leverage was 5.2x at YE 2024, which is high for the rating. Fitch projects slight leverage reduction in 2025, though topline results will ultimately impact other metrics. The company's stable cash flows and relatively strong profitability offset the high leverage. Fitch does not expect any voluntary debt reduction, which means leverage will only fall through improved operating performance. Strong Cash Flow, Low Interest Coverage: Perficient had typically maintained its FCF margin above 10% before the take-private transaction. However, FCF margin fell below 5% last year, partially due to the transaction and working capital needs. Fitch expects FCF to recover in 2025. However, rising interest expense will reduce FCF margin to the high single digits. Fitch expects EBITDA interest coverage to remain below 4.0x for the next several years, which is low for the rating. Strong Profitability: The company's EBITDA margins have been 21%-22% over the past three years, outperforming comparable tech services companies. This demonstrates good utilization rates and solid execution by management. Perficient maintained a steady 21% margin in 2024 despite revenue declines, supported by the successful execution of its cost savings plan. Fitch expects the company to maintain its EBITDA margins in the range of 21% to 22%. Good Financial Flexibility: Perficient has good financial flexibility, which is supported by an undrawn revolver. Increased interest expense as the result of the LBO erodes this flexibility to some extent, and interest coverage is low for the rating. The term loan does not mature until 2031, and good FCF potential should provide additional flexibility. Fitch does not expect the sponsor to reduce debt voluntarily, but it may do so if FCF rebounds as expected. Increasing Demand for Tech Services: Perficient offerings essential services such as system integrations of third-party software integration (Sitecore, Salesforce, Adobe). Digital transformation projects that involve improving customer and user experiences, digital marketing, data analytics, and preparation for AI projects are also a focus. Fitch expects the overall market for these services to grow in the coming years, which is likely a credit positive for Perficient. However, it is not yet clear if there is a structural change in the demand for these services or if the demand is only delayed. Peer Analysis The 'B+' IDR is reflective of Perficient's elevated leverage relative to other B-category issuers, offset by its strong profitability, FCF generation, and liquidity. Other services firms with leverage above 5.0x are VT Topco, Inc. ('B'/Stable) and Boost Parent, LP ('B'/Stable), but Fitch expects these firms' leverage will remain higher than Perficient's for longer. CAA Holdings ('B+'/Stable) has a similar leverage profile, but its revenue and EBITDA are double those of Perficient. Investment-grade technology services firms rated by Fitch dwarf Perficient by most metrics. Perficient competes in a fragmented market for digital transformation projects, system integrations, customer and user experience design work, and digital marketing initiatives. Key Assumptions - Revenue growth of 0.5% in 2025, and 1% growth in 2026; - EBITDA margin maintained at 2024 levels for the next several years; - Capital intensity of about 1% of revenue; - No incremental debt issuance. Recovery Analysis For entities rated 'B+' and below, where default is closer and recovery prospects are more meaningful to investors, Fitch undertakes a tailored, or bespoke, analysis of recovery upon default for each issuance. The resulting debt instrument rating includes a Recovery Rating or published 'RR' (graded from RR1 to RR6) and is notched from the IDR accordingly. In this analysis, there are three steps: (i) estimating the distressed enterprise value (EV); (ii) estimating creditor claims; and (iii) distribution of value. - The recovery analysis assumes the company would be reorganized as a going-concern in bankruptcy rather than liquidated; - Fitch has assumed a 10% administrative claim. Fitch envisions a hypothetical situation which might include missteps following an acquisition or failure to deliver significant projects that result in the loss of a large client or the revenue associated with the recently acquired firm. This results in dramatic drop in EBITDA at a time with limited liquidity, forcing the company to negotiate with its creditors. - Fitch estimates going-concern (GC) EBITDA of $140 million - Fitch assumes a 6.0x multiple, which is in line with the agency's assessment of historical trading multiples in the data and analytics industry, sector M&A, and historic bankruptcy emergence multiples Fitch has observed in the technology, media and telecom (TMT) sectors. The recovery analysis results in 'BB-'/'RR3' issue and Recovery Ratings for the first lien credit facilities. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade - Continued erosion of operating performance, evidenced by declines in total revenue or EBITDA; - Leverage sustained above 5.0x; - (CFO minus capex)/debt sustained below 2.5%; - Adoption of a more aggressive capital allocation policy, which could be indicated by debt-funded acquisitions or dividends. Factors that could, individually or collectively, lead to positive rating action/upgrade - Leverage sustained below 4.5x; - Interest coverage sustained above 4.5x; - (CFO minus capex)/debt sustained above 5%. Liquidity and Debt Structure The company had adequate liquidity with $54 million in cash at YE 2024 and undrawn $280 million RCF. Perficient's strong margin profile and FCF generation potential strengthen its liquidity and provide management with additional financial flexibility. The $935 million term loan is first lien, floating rate (SOFR +350) and matures in 2031. Issuer Profile Perficient is a global digital consultancy delivering technology projects for a medium to large enterprises. The company has more than 40 global locations and thousands of strategists and technologists. 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. PMHB LLC: Seeks to Hire Crexi Technologies as Real Estate Agent --------------------------------------------------------------- PMHB, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of North Carolina to employ Crexi Technologies, LLC as real estate agent. The firm will market and sell the Debtor's personal and real property of the Hyatt Place by Hyatt Asheville Airport -- Arden, NC located at 329 Rockwood Road, Arden, North Carolina, 28704. Crexi will receive a marketing fee of $495,000 upon the consummation of a final sale. Crexi Technologies is a "disinterested person" within the meaning of 11 U.S.C. 101(14), according to court filings. The firm can be reached through: Sonya Bokano Crexi Technologies, LLC 9 Executive Circle, Suite 225 Irvine, CA Email: support@crexi.com Phone: (888) 273-0423 About PMHB, LLC PMHB, LLC is a hotel development company based in Asheville, N.C. PMHB sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. N.C. Case No. 25-10038) on March 2, 2025. In its petition, the Debtor reported between $10 million and $50 million in both assets and liabilities. Judge George R. Hodges handles the case. The Debtor is represented by Dennis O'Dea, Esq., at SFS Law Group. An official committee of unsecured creditors has been appointed in the Debtor's Chapter 11 case. POWIN LLC: Seeks to Hire Gerard Uzzi of Uzzi & Lall as CRO ---------------------------------------------------------- Powin LLC seeks approval from the U.S. Bankruptcy Code in the District of New Jersey to hire CBMN Advisors LLC d/b/a Uzzi & Lall to provide additional staff and designate Gerard Uzzi as chief restructuring officer. The firm's services include: a. assisting with the management of all aspects of the Debtors' operations, including all initiatives related to managing financial operations; b. evaluating cash and liquidity requirements, including assisting the Debtors in preparing and reporting on appropriate cash and liquidity forecasts, such as a rolling 13-week cash flow forecast; c. working with the Debtors' management to preserve and maximize cash availability while preserving value in the business; d. assisting with the evaluation of strategic alternatives, including evaluating the sale or wind-down of the Debtors' assets; e. assisting with the preparation of reports required by the Bankruptcy Code and Bankruptcy Rules, including, statements of financial affairs, schedules of assets and liabilities, and monthly operating reports; f. assisting the Debtors' management in responding to requests from, and negotiation with, investors, lenders, creditors, any official committees, and other stakeholders as requested by the Company; g. assisting in the Debtors' strategic communications with employees, vendors and other stakeholders, as needed; h. directing the efforts of external professionals, consultants, and advisors in connection with liquidation initiatives, including the negotiation of any agreements with asset purchasers, potential investors, or funding sources; and i. performing such other services as may be reasonably requested by the Debtors, and are customary in this type of engagement. Uzzi & Lall's current hourly rates are: Partner $1,500 Managing Director $1,200 Senior Director $1,000 Director $900 Vice President $700 Associate $500 Analyst $400 As disclosed in the court filings, Uzzi & Lall does not hold any interest adverse to the Debtors' estates, and is a "disinterested person" as defined within Section 101(14) of the Bankruptcy Code. The firm can be reached through: Gerard (Jerry) Uzzi Uzzi & Lall One Liberty Plaza 165 Broadway 23rd Floor New York, NY 10006 Email: guzzi@uzzilall.com About Powin, LLC Powin LLC is a U.S.-based global energy storage integrator on a mission to become the world's most trusted energy storage provider, enabling clean and reliable energy. With data-driven software controls, proven hardware, and experienced end-to-end project execution, Powin delivers scalable systems tailored to meet the needs of modern energy demand. Supported by a globally diversified, ethically sourced supply chain, Powin bolsters energy distribution to alleviate grid congestion, reduce costs, and strengthen aging infrastructure. Relentlessly focused on innovation and lasting value, Powin optimizes energy management, mitigates risk, and ensures predictable energy throughout the lifetime of its projects. On June 9, 2025 and June 10, 2025, Powin, LLC, and affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D.N.J. Lead Case No. 25-16137). The cases are pending before the Honorable Michael B. Kaplan. Powin is advised in this matter by Dentons as legal counsel, Uzzi & Lall as financial and restructuring advisor, and Huron as investment banker. Verita Global is the claims agent and maintains the page https://www.veritaglobal.net/powin. POWIN LLC: To Sell Energy Storage Integrator Business to FlexGen ---------------------------------------------------------------- Powin, LLC and its affiliates seek permission from the U.S. Bankruptcy Court for the District of New Jersey, to sell Assets at auction, free and clear of liens, claims, and encumbrances. Debtor Powin, a Delaware limited liability corporation, and its affiliates are collectively an energy storage integrator based in Portland, Oregon, and with offices around the world in Vietnam, China, Canada, Australia, and Spain. As one of the leading global energy platform providers, Powin and its affiliates are at the forefront of the clean energy revolution. Powin focuses on advancing the next frontier of energy by ensuring access to clean, reliable, resilient, and affordable power through cutting-edge technology. The Debtors’ business model targets innovations in energy storage, which are essential to the planet's transition to a sustainable, carbon-free world. The Debtors experienced challenges leading to financial constraints that required engagement with their Prepetition Lenders and other parties in interest on an appropriate path forward for the Debtors' business. The Debtors commenced these Chapter 11 Cases because their businesses were suffering from liquidity constraints, an overdependence on trade credit, increasing assertions of liquidated damages, and a credibility problem. In May 2025, the Debtors engaged Huron Transaction Advisory LLC as investment banker to assist with soliciting third-party proposals to raise capital and generate interest in a strategic sale transaction. The Debtors, with the assistance of Huron, launched an extensive marketing process to solicit third-party proposals to raise capital and evaluate a potential sale transaction. Huron reached out to 94 prospective third party DIP lenders, adjacent operators, private equity sponsors, inventory financers, customers, and the Prepetition Secured Parties, 23 of whom executed non-disclosure agreements The Debtors and their advisors simultaneously made progress in negotiating with key customers and other parties in interest towards a viable path forward. FlexGen Power Systems, LLC (Stalking Horse Bidder), emerged as a party with interest in a potential transaction with the Debtors for the sale of substantially all of their assets. The Debtors anticipate filing an executed asset purchase agreement with FlexGen on or about July 3, 2025, under which FlexGen agrees to purchase substantially all of the Debtors' assets, for a purchase price of $36 million. Following arms' length negotiation, the Debtors and the Stalking Horse Bidder reached an agreement on a Stalking Horse APA which seeks to sell the Assets to the Stalking Horse Bidder. The Debtors also propose that the bidding, auction, and sale process be conducted in accordance with the below proposed expediated timeline, given the Debtors' ongoing liquidity issues. The sale timeline will allow the Debtors to solicit further bids on a potential sale transaction to maximize the value of their Assets -- July 3, 2025 Deadline to File Stalking Horse APA -- July 15, 2025 at 9:30 a.m. (EST) Hearing on Motion -- July 16, 2025 at 5:00 p.m. (EST) Deadline to Submit NonBinding Indications of Interest -- July 28, 2025 Bid Deadline for Qualified Bids -- 4:00 p.m. (EST) on the day before the Auction Baseline Bid Deadline -- July 30, 2025 at 9:00 a.m. (EST) Auction -- As soon as practicable after the Auction - Notice of Winning Bidder and BackUp Bidder -- August 1, 2025 at 5:00 p.m. (EST) Deadline to file Objections to Sale -- August 4, 2025 at 12:00 pm (EST). Sale Order Deadline -- August 5, 2025 at 5:00 p.m. (EST). Deadline to file any Objections to the Sale to Bidder -- August 6, 2025, at 9:30 a.m. (EST). Sale Hearing The Debtors seek entry designating FlexGen as the stalking horse bidder and approving stalking horse bidder protections; approving bidding procedures by which interested parties may bid and an auction sale format in connection with the sale of substantially all of the Debtors’ assets; and approving form of Asset Purchase Agreement. The Debtors submit that conducting an Auction in accordance with the bidding procedures among Qualified Bidders will obtain the highest or otherwise best offer for the Assets and will maximize the value of the Debtors' estates. FlexGen shall be deemed the Stalking Horse Bidder in accordance with the terms of the Stalking Horse APA which conditions FlexGen's Bid upon it being deemed the Stalking Horse Bidder. The Stalking Horse Bidder will be granted certain bidding protections, including a breakup fee of $1,100,000 and an Expense Reimbursement of up to $500,000. If the Debtors receive more than one Qualified Bid, the Debtors will conduct an Auction at the offices of Dentons US LLP, 1221 Avenue of the Americas, New York, NY 10020 on July 30, 2025, in accordance with the Bidding Procedures. Bidding shall begin at the amount of the best or highest Qualified Bid. Subsequent bids shall be an increase over the Starting Bid or previous Overbid, as applicable. Each Overbid shall provide net value to the estates in an amount equal to or greater than $720,000 more than the Starting Bid, and each subsequent Overbid must provide net value to the estates in an amount equal to or greater than $720,000 more than the previous Overbid. The Back-Up Bid, if any, will remain open and binding on the Back-Up Bidder until the first business day after the closing of the Sale with the Winning Bidder for the Assets bid upon by such Back-up Bidder; provided, that if the Stalking Horse Bid is selected as the Back-Up Bid, it must remain irrevocable only for so long as is required under the Stalking Horse APA. If the Winning Bidder fails to consummate the Winning Bid within the time set forth, the Debtors will be authorized to select the Back-Up Bidder, as the new Winning Bidder, in which case the Debtors shall proceed to consummate the Winning Bid of the new Winning Bidder. The Debtors proposes that any objections to the Sale Transaction must be filed with the Court on or before the Sale Objection Deadline set forth in the Bidding Procedures Order. About Powin, LLC Powin, LLC is a manufacturer of utility-scale battery energy storage systems. It specializes in designing and manufacturing advanced energy storage solutions for utility, commercial, and industrial applications. Powin sought relief under Chapter 11 of the U.S. Bankruptcy Code(Bankr. D.N.J. Case No. 25-16137) on June 10, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million each. Honorable Bankruptcy Judge Michael B. Kaplan handles the case. The Debtor is represented by Frank A. Oswald at Togut, Segal & Segal LLP. PREMIER GROUP: Seeks Subchapter V Bankruptcy in Washington ---------------------------------------------------------- On July 10, 2025, The Premier Group LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Washington. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About The Premier Group LLC The Premier Group LLC is a small business based in Auburn, Washington. The Premier Group LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 25-11889) on July 10, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Christopher M. Alston handles the case. The Debtors are represented by James E. Dickmeyer, Esq. at James E. Dickmeyer, PC. PREMIER GROUP: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: The Premier Group, LLC 19 Pike Street NE Auburn, WA 98002 Business Description: The Premier Group, LLC is a limited liability company whose principal asset is a lakefront residential property located in Bellingham, Washington. Chapter 11 Petition Date: July 10, 2025 Court: United States Bankruptcy Court Western District of Washington Case No.: 25-11889 Judge: Hon. Christopher M Alston Debtor's Counsel: James E Dickmeyer, Esq. LAW OFFICE OF JAMES E DICKMEYER PC 520 Kirkland Way Suite 400 PO Box 2623 Kirkland WA 98083-2623 Tel: (425) 889-2324 E-mail: jim@jdlaw.net Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Monique Fell as managing member. The Debtor submitted the required list of its 20 largest unsecured creditors, but provided no names. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/Q72PVGQ/The_Premier_Group_LLC__wawbke-25-11889__0001.0.pdf?mcid=tGE4TAMA PRIMARY PRODUCTS: Fitch Alters Outlook on 'BB' LongTerm IDR to Neg. ------------------------------------------------------------------- Fitch Ratings has affirmed all the ratings of Primary Products Investments LLC (Primary Products) and its subsidiary Primary Products Finance LLC, including the company's Long-Term Issuer Default Rating (IDR) at 'BB', the asset-based revolving credit facility (ABL) at 'BBB-' with a Recovery Rating of 'RR1' and senior secured first lien revolver and term loan at 'BB+'/'RR2'. The Rating Outlook has been revised to Negative from Stable. Primary Products' ratings reflect its strong market position in the mature corn-derived products industry and contractual cost pass-through model that supports relatively consistent EBITDA. This is offset by the company's narrow diversification and limited scale, with EBITDA in the high-$200 million range during fiscal 2025 (ended March). The Negative Outlook reflects the company's elevated Fitch-adjusted EBITDA leverage in the mid-4x range, and Fitch's expectation that leverage could remain above 4x over the next 12 months-18 months. A change in the Outlook to Stable would require sustained leverage below 4x through a combination of EBITDA growth and debt reduction. Key Rating Drivers Increased Leverage, Moderation Expected: Primary Products ended fiscal 2025 with EBITDA leverage in the mid-4x range, up from the high-3x range in fiscal 2024. The increase in leverage reflects higher debt levels resulting from $190 million of incremental term loans from the June 2024 acquisition by KPS Capital Partners (KPS) and $70 million of term loan add-ons in June 2025. Proceeds from the recent term loan add-on is intended for general corporate purposes, including the repayment of outstanding balances on the ABL. Fitch projects Primary Products will realize moderate EBITDA growth and debt reduction, with EBITDA leverage trending below 4.0x over the medium term. The Negative Outlook reflects execution risks around deleveraging and Fitch's expectation that leverage could remain above 4x over the next 12 months-18 months. Fitch expects Primary Products to maintain consistent capital allocation in the medium term by investing in the business and limiting shareholder distributions to tax-related payments. Higher member distributions while leverage is elevated could increase ratings pressure. Strong Market Position, Resiliency through Cycles: The corn-derived product manufacturing industry is highly consolidated in the US. Primary Products holds a strong market position in this mature and stable industry, with a top two market positioning in high fructose corn syrup (HFCS), dextrose, and industrial starches. The company generated revenues of $2.7 billion during fiscal 2025, with its key product segments including sweeteners, industrial starches, acidulants, and other co-products of the corn wet-milling process. Primary's Products' EBITDA has historically shown resiliency and stability through commodity cycles. The company is relatively insulated from volatile commodity prices as approximately 75% of volumes are produced under tolling contracts, which effectively allows Primary Products to earn a spread, regardless of the price of corn. The remaining 25% are flat price contracts, which are historically hedged to help mitigate price risk. From a topline perspective, the company has also been able to realize benefits from higher volumes and pricing on commercial contracts during fiscal 2025, which partially offset declines from lower corn prices. Small but Growing Scale, Limited Diversification: Fitch expects Primary Products will generate Fitch-adjusted EBITDA trending towards the low to mid-$300 million range over the medium term, up from the high-$200 million range in fiscal 2025. This growth reflects operating efficiencies driven by various modernization and capex investments, and could be further supported by growth from bio-economy expansion with two new long-term commercial partnerships during fiscal 2025. Despite these developments, the company is centered on corn-derived ingredients, while other larger peers such as Ingredion Incorporated (BBB/Stable) and Tate & Lyle have pivoted toward other higher growth specialty ingredients markets. $700 million Capex Plan: In March 2024, the company announced capital plans to invest over $700 million in capex over the next five years in efforts to modernize critical production assets and processes. Fitch expects these initiatives to result in improved operating efficiencies and support the company's margin profile in the low double-digit range over the forecast period. Fitch expects FCF to be relatively flat in fiscal 2026 given elevated near-term capex requirements, before trending positive thereafter supported by EBITDA growth and moderating investment spend. Structural Decline in HFCS: The HFCS category has faced low single digit annual decline, with overall industry capacity utilization remaining relatively flat over the last several years. Despite this, HFCS remains a critical input for major customers, as switching costs toward other sweetener alternatives are high given the inherent risk with altering formulations of packaged food products. While Fitch expects the structural decline in HFCS would continue, growth in demand for the company's other product offerings, combined with recent initiatives in bio-economy expansion is expected to support its longer-term revenue profile. Recent Ownership Changes: In June 2024, KPS completed the acquisition of the remaining 49.7% stake in Primary Products from Tate & Lyle for $350 million. The transaction was funded through roughly 50/50 split of debt vs equity financing. Tate & Lyle remains one of Primary Products' largest customers, is expected to maintain a strong relationship with the company due to long-term contractual volume commitments that supports more steady demand to maintain higher utilization rates and a stable profitability stream. Primary Products was a subsidiary of Tate & Lyle, prior to the April 2022 sale of around half its stake to KPS. Equalization of IDR's: Fitch equalizes the ratings across the corporate structure, resulting in the same rating between the parent, Primary Products Investments LLC and its subsidiary, Primary Products Finance LLC. Peer Analysis Primary Products' 'BB'/Negative rating reflects the company's strong market position in the mature corn-derived products, offset by narrow product diversification and limited scale. The Negative Outlook reflects the company's elevated Fitch-adjusted EBITDA leverage in the mid-4x range driven by higher debt levels, and Fitch's expectation that leverage could remain above 4x over the next 12 months-18 months. Ingredion Inc's 'BBB'/Stable rating benefits from its globally diverse product portfolio and stable underlying business model. The company focuses on starches and sweeteners, with increasing exposure to higher-value, higher-margin, on-trend specialty ingredients. It has benefited from strategic investments, operational and cost-savings initiatives, and the transformation of its portfolio to address secular changes. Fitch expects these measures, along with further efficiency and process improvements, to support reduced earnings volatility and more predictable long-term earnings growth. Fitch expects Ingredion to continue demonstrating good financial discipline, including consistent capital allocation policies for growth investments, bolt-on M&A and shareholder return initiatives. These should support long term leverage expectations around low-2x. Darling's 'BB+'/Stable rating reflects the company's leading market position as a globally diversified ingredient processor that has benefited from increasing demand for low-carbon fuels, which supports profitability. Fitch's forecast assumes solid demand for renewable diesel, along with favorable biofuel policy, will support structurally higher margins. Fitch projects Darling's mid-term leverage could trend to around 3x from around mid-3x in 2025. This is through a combination of EBITDA growth, increased Diamond Green Diesel (DGD) cash distribution and debt reduction. Key Assumptions - Fitch-adjusted EBITDA is projected to increase towards the low to mid-$300 million range over the medium term, from the high-$200 million range in fiscal 2025. This growth reflects operating efficiencies driven by various modernization and capex investments, and could be further supported by growth from bio-economy expansion. - FCF is expected to be relatively flat in fiscal 2026 given elevated near-term capex requirements, before trending modestly positive thereafter supported by EBITDA growth and moderating investment spend over the medium term. The forecast includes annual dividends of around $70 million to reflect only tax-related distributions. - EBITDA leverage is projected to decline below 4x over the medium term from the mid-4x range in fiscal 2025. Leverage could remain above 4x over the next 12 months-18 months. - The company took steps to reduce variable interest rate exposure via the use of $600 million in interest rate swaps, which effectively establishes a fixed interest rate of 3.16% for the original floating component of roughly half of its long-term debt structure. For the remaining debt in the capital structure, Fitch assumes around 4% SOFR base rates in fiscal 2026 and trending towards 3.5% in fiscal 2027. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage sustained above 4.0x as a result of financial performance below Fitch's expectations, and/or as a result of large M&A debt funded transaction, or leveraging capital returns. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA growth to over $600 million based on increased product diversification away from corn derived products and/or geographic diversification, while committing to maintain EBITDA leverage below 3.0x. - Fitch could revise the Outlook to Stable upon increased visibility for sustained EBITDA leverage below 4x through a combination of EBITDA growth and debt reduction. Liquidity and Debt Structure As of March 31, 2025, the company had $18 million in cash and cash equivalents, $135 million of borrowing availability on its ABL and $100 million available on its undrawn revolver. The company's debt structure as of the latest fiscal year end includes $400 million ABL due April 2027 ($135 million of availability net of $90 million of borrowings, $38 million of outstanding letters of credit, and other borrowing base requirements), $100 million in RCF due April 2027 (undrawn) and $1.219 billion outstanding on its term loan facility due April 2029, which calls for principal re-payments of 1% per year. In June 2025, the company completed a $70 million term loan add-on, with proceeds intended for general corporate purposes, including the repayment of outstanding balances on the ABL. Fitch's adjusted debt also includes an analytical adjustment for off-balance sheet accounts receivable supply chain financing program. Issuer Profile Primary Products is a leading provider of corn-derived products, including sweeteners, industrial starches, acidulants, and other co-products of the corn wet-milling process, including fuel ethanol and corn derivatives used for animal feed and corn oil. Summary of Financial Adjustments Stock-based compensation, leverage metrics adjusted for joint venture dividends, off-balance sheet accounts receivable supply chain financing program, and non-recurring/one-time adjustments. 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 Primary Products has an ESG Relevance Score of '4' for Exposure to Social Impacts due to shifting consumer preferences with reducing sugar consumption, and more acutely reducing HFCS, which has affected demand for certain packaged foods and beverages with higher levels of sugars or sweeteners. Fitch expects demand for HFCS to structurally decline in the low-to-mid single digits annually. These trends have caused large Consumer Packaged Goods (CPG) companies, including Primary Products' major customers such as The Coca-Cola Company and PepsiCo Inc. to modify and extend portfolios by reformulation of brands to adapt to changing consumer behaviors. This has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Primary Products Investments LLC LT IDR BB Affirmed BB Primary Products Finance LLC LT IDR BB Affirmed BB senior secured LT BBB- Affirmed RR1 BBB- senior secured LT BB+ Affirmed RR2 BB+ PRIORITY HOLDINGS: Moody's Rates New Secured First Lien Loans 'B1' ------------------------------------------------------------------ Moody's Ratings assigned a B1 rating to Priority Holdings, LLC's (Priority) proposed Senior Secured First Lien Bank Credit Facilities (comprised of a $1,000 million Term Loan B due 2032 and a $70 million Revolving Credit Facility due 2030). The company's other ratings, including its B1 Corporate Family Rating, B1-PD Probability of Default Rating, B1 Senior Secured First Lien Bank Credit Facilities ratings (Term Loan B and Revolving Credit Facility), are unaffected by this transaction. The stable outlook and SGL-1 Speculative Grade Liquidity Rating (SGL) remain unchanged. The proceeds from the new facilities, along with about $3.5 million of cash from balance sheet, will be used to repay the company's existing Term Loan B (with about $935.5 million outstanding), to fund a tuck-in acquisition and settle certain contingent consideration related to the consolidation of previously acquired B2B provider Plastiq as a restricted subsidiary, and to cover transaction fees and expenses. The rating on the current bank credit facilities will be withdrawn upon transaction close. The stable outlook reflects Moody's expectations of healthy revenue growth in 2025 and 2026 along with modest margin expansion and expanded free cash flow generation. RATINGS RATIONALE The B1 CFR reflects healthy revenue growth in all three segments –SMB merchant acquiring, B2B payments, and Enterprise— with particularly strong growth in the Enterprise business, which largely consists of payment processing services for customers of debt resolution platforms. The credit profile is also supported by good cash flow generation relative to debt levels, with free flow to debt expected to approximate 8% in FY 2025, despite relatively high interest costs. The company's goal to continue to deleverage through both earnings growth and debt paydown also supports its credit position. At the same time, the company continues to maintain elevated financial leverage of about 4.6x at March 31, 2025, which Moody's expects to decline to about 4.3x at FY 2025, pro forma for the current refinancing transaction. Also, Priority is exposed to the very competitive merchant acquiring and payment processing space, where price competition and technology innovation can impact company results. The strategy includes M&A, which is often seen as crucial to advance in the industry, but which could present integration costs and potentially slow down the deleveraging trajectory. Governance considerations include relatively high debt leverage, a concentrated ownership structure with a majority owned by the founder and his family, and the potential for debt-funded acquisitions. Priority's very good liquidity is supported by an unrestricted cash balance of $44 million as of March 31, 2025. Liquidity is also supported by projected free cash flow of about $75 million in 2025 and the new undrawn $70 million revolving credit facility expiring in 2030. The revolving credit facility is subject to a total net leverage covenant of 6.9x applicable when utilization exceeds 35%, stepping down to 6.4x by June, 30, 2026. Priority is in compliance with the covenant with a meaningful cushion. The maturity for the $1,000 million term loan will be 2032. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded with consistent revenue and EBITDA growth such that the company achieves greater scale, debt-to-EBITDA (Moody's adjusted) sustained below 4x, free-cash-flow-to-debt at or above 10%, and a balanced financial policy. The ratings could be downgraded with revenue or margin declines, debt-to-EBITDA (Moody's-adjusted) sustained above 5x, a deterioration of liquidity and/or cash flow generation, and/or expectation of a more aggressive financial policy. Marketing terms for the new credit facilities (final terms may differ materially) include the following: Incremental pari passu debt capacity up to the greater of $219 million and 100% of Adjusted EBITDA, plus unlimited amounts subject to a maximum 4.5x Total Net Leverage Ratio, with an inside maturity sublimit up to the greater of $44.7 million and 25% of Adjusted EBITDA. A "blocker" provision restricts the transfer of material intellectual property to unrestricted subsidiaries. The credit agreement is expected to provide limitations on up-tiering transactions, requiring affected lender consent for amendments that subordinate the priority of payment of the debt. Priority Holdings, LLC is a merchant acquirer and payment solutions provider serving approximately 177,000 small and medium-sized business (SMB) merchants. The company is the 6th largest non-bank merchant acquirer in the United States. The company also provides B2B payment solutions that accelerate the funding of vendors and improve working capital for buyers, more recently through its acquisition of the buyer-funded platform Plastiq, which enables businesses to pay any vendor by credit card, regardless of whether that vendor accepts credit cards. The Enterprise segment, currently the most profitable with more than 50% of segment EBITDA, provides payment processing and embedded finance solutions to vertically focused customers, including debt-resolution platforms. Pro forma revenues for the LTM ended March 31, 2025, were $899 million. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. PROJECT PIZZA: Gets Interim OK to Use Cash Collateral ----------------------------------------------------- Project Pizza Polk LLC got the green light from the U.S. Bankruptcy Court for the Northern District of California, San Francisco Division, to use cash collateral to pay its operating expenses. The court's order authorized the Debtor's interim use of cash collateral pending a final hearing set for August 14. The Debtor's use of cash collateral must be in accordance with its budget (with a variance of up to 10% per month). The budget shows total monthly expenses of $200,691.74 for July; $229,882.19 for August; and $230,068.75 for September. As protection for the Debtor's use of their cash collateral, secured creditors will be granted replacement liens on all property of the Debtor acquired or to be acquired after its Chapter 11 filing, with the same priority, validity and extent as their pre-bankruptcy liens. The Debtor identified two secured creditors -- Retail Capital LLC doing business as Credibly and InKind Cards, Inc. -- which assert interests in cash collateral. However, the Debtor disputes the validity and priority of those claims, particularly noting that InKind's lien may be avoidable and that Credibly's lien may be oversecured. The Debtor's cash balance at filing was about $31,000, though it expects to maintain positive cash flow through operations. The exit strategy involves continuing operations, restructuring secured debt via cramdown, and paying unsecured creditors from post-confirmation earnings under a Chapter 11 plan. The Debtor, founded in 2018 and hit hard by the COVID-19 pandemic and burdensome merchant cash advance debt, operates a successful full-service Italian restaurant in San Francisco. About Project Pizza Polk LLC Project Pizza Polk LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-30521) on July 2, 2025. In its petition, the Debtor disclosed up to $500,000 in assets and up to $10 million in liabilities. Judge Dennis Montali oversees the case. Matthew D. Metzge, Esq., at Belvedere Legal, PC, represents the Debtor as legal counsel. PROS HOLDINGS: Issues $235M Convertible Notes Due 2030 ------------------------------------------------------ PROS Holdings, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that it issued $235.0 million in aggregate principal amount of 2.50% Convertible Senior Notes due 2030 under an indenture, dated as of June 24, 2025, between the Company and Wilmington Trust, National Association, as trustee. As previously disclosed in the Company's Current Report on Form 8-K dated June 13, 2025, the Company issued the Notes in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended. The Notes and any common stock issuable upon conversion of the Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Notes will bear interest at a rate of 2.50% per year, payable semiannually in arrears in cash on January 1 and July 1 of each year, beginning on January 1, 2026. The Notes are the Company's general unsecured obligations and will rank senior in right of payment to all of its indebtedness that is expressly subordinated in right of payment to the Notes; will rank equally in right of payment with all of the Company's existing and future general unsecured liabilities that are not so subordinated; will be effectively junior to any of the Company's secured indebtedness to the extent of the value of the assets securing such indebtedness; and will be structurally subordinated to all indebtedness and other liabilities (including trade payables but excluding intercompany obligations owed to the Company or its subsidiaries). Holders may convert their Notes at their option on any day prior to the close of business on the business day immediately preceding April 1, 2030, only under the following circumstances: During the five consecutive business day period immediately following any five consecutive trading day period in which the trading price per Note for each day of that measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such day; During any calendar quarter commencing after the calendar quarter ending September 30, 2025, if the last reported sale price of the Company's common stock for 20 or more trading days (whether or not consecutive) in a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price in effect on each such trading day; or Upon the occurrence of specified corporate events. The Notes will be convertible, regardless of the foregoing circumstances, at any time from, and including, April 1, 2030, until the close of business on the second scheduled trading day immediately preceding the applicable maturity date. Upon conversion, the Company will pay cash or deliver, as the case may be, cash, shares of its common stock, or a combination of cash and shares of common stock, at its election. If the Company satisfies its conversion obligation solely in cash or through payment and delivery of a combination of cash and shares of common stock, the amount due upon conversion will be based on a daily conversion value calculated on a proportionate basis for each trading day in a 50-trading-day observation period. The initial conversion rate for the Notes will be 48.8293 shares of common stock per $1,000 in principal amount of Notes, equivalent to a conversion price of approximately $20.48 per share of common stock. The conversion rate will be subject to adjustment in certain circumstances. Subject to certain exceptions, holders may require the Company to repurchase, for cash, all or part of their Notes upon a "Fundamental Change" at a price equal to 100% of the principal amount of the Notes being repurchased plus any accrued and unpaid interest up to, but excluding, the "Fundamental Change Repurchase Date." In addition, upon a "Make-Whole Fundamental Change" (as defined in the Indenture) prior to the maturity date of the Notes, the Company will, in some cases, increase the conversion rate for a holder that elects to convert its Notes in connection with such Make-Whole Fundamental Change. The Company may not redeem the Notes prior to July 3, 2028. On or after July 3, 2028, the Company may redeem the Notes at a redemption price of 100% of their principal amount plus any accrued and unpaid interest if the trading price of the amount of the Company's common stock into which the Notes are convertible equals or exceeds 130% of the Notes' principal amount. Upon any such redemption, holders of the Notes would, subject to specified conditions, be permitted to convert their Notes at an increased conversion rate. The Indenture contains certain events of default after which the Notes may be due and payable immediately. Such events of default include, without limitation: failure to pay interest on any Note when due, continuing for 30 days; failure to pay any principal when due; failure to convert the Notes upon exercise of a holder's conversion right; failure to comply with provisions governing consolidation, merger, or asset sale; failure to provide timely notice of a Fundamental Change; breach of other covenants that continues for 60 days after notice; defaults on other indebtedness exceeding $40 million; certain bankruptcy events; or final judgments against the Company or its subsidiaries exceeding $40 million that are not discharged or stayed within 60 days. Amendment to Credit Agreement On June 23, 2025, the Company entered into an amendment to its existing secured Credit Agreement, dated July 21, 2023, among its wholly owned subsidiary PROS, Inc., certain other subsidiaries of the Company as guarantors, and Texas Capital Bank as administrative agent. The amendment includes the consent of the administrative agent and other lenders party thereto to the issuance of the Notes. Unregistered Sales of Equity Securities As described, on June 24, 2025, the Company issued $235 million aggregate principal amount of Notes in a private placement pursuant to exemptions from the registration requirements of the Securities Act. The Company relied on the exemption from registration provided by Section 4(a)(2) of the Securities Act. The Notes and common stock issuable upon conversion of the Notes, if any, at the Company's election, have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption. The Notes are convertible into cash, shares of the Company's common stock, or a combination thereof. The net cash proceeds from the Notes offering were approximately $48.8 million before deducting estimated offering expenses. The Company paid an aggregate of approximately $27.9 million to the Option Counterparties for capped call transactions. In connection with the offering, as previously disclosed in the Company's Current Report on Form 8-K dated June 13, 2025, on June 12, 2025, the Company entered into privately negotiated capped call transactions with option counterparties. Funding of the capped call transactions occurred on June 24, 2025. The capped call transactions cover, subject to customary anti-dilution adjustments, the number of shares of the Company's common stock initially underlying the Notes, at a strike price that corresponds to the initial conversion price of the Notes, also subject to adjustment, and are exercisable upon conversion of the Notes. These capped call transactions are intended to reduce potential dilution to the Company's common stock and/or offset any cash payments the Company may be required to make in excess of the principal amount upon conversion. The strike price is set at 32.5% above the closing sale price of the Company's stock on June 12, 2025, subject to a cap price of 150% above the same. The Company will not be required to make any cash payments to the option counterparties upon exercise of the capped calls. In connection with any conversion of Notes, subject to the cap feature, the Company will be entitled to receive from the counterparties an aggregate amount of cash and/or shares of the Company's common stock corresponding to the amount by which the conversion settlement amount exceeds the $1,000 principal per Note. About PROS Holdings Headquartered in Houston, Texas, PROS Holdings, Inc. (NYSE: PRO), is a provider of AI-powered SaaS pricing, CPQ, revenue management, and digital offer marketing solutions. As of March 31, 2025, PROS Holdings had $427.2 million in total assets, $493 million in total liabilities, and total stockholders' deficit of $65.8 million. * * * Egan-Jones Ratings Company, on August 22, 2024, maintained its 'CCC-' foreign currency and local currency senior unsecured ratings on debt issued by PROS Holdings, Inc. PROSPECT MEDICAL: Gets Court OK to Tap $50MM Emergency Loan ----------------------------------------------------------- Liese Klein of CT Insider reports that Prospect Medical receives court approval for $30 million emergency loan. Facing an $18 million payroll obligation in the third week of July 2025, bankrupt hospital operator Prospect Medical Holdings is seeking court approval for $30 million in emergency financing to address a worsening cash crunch, according to the report. Prospect, which owns Waterbury, Manchester Memorial, and Rockville General hospitals, told a Texas bankruptcy judge Wednesday, July 9, 2025, that without the funding, it may be forced to implement layoffs and service reductions at facilities in California and Connecticut, the report added. "That's a big sword hanging over our heads," said Prospect's lead attorney Thomas Califano during the hearing, noting that the company will likely need at least another $55 million in the coming weeks to stay afloat through the summer. The for-profit, private equity-backed hospital system filed for Chapter 11 in January 2025, listing between $1 billion and $10 billion in liabilities. Prospect is attempting to sell its hospitals, but Califano said the process has moved slower than anticipated. Court deadlines to auction off and approve sales of the Connecticut facilities, originally set for early June 2025, have been pushed back indefinitely, though interest from potential buyers remains. Underscoring the stalled progress, the city of Waterbury last month wrote off $18.4 million in unpaid 2024 and 2025 property taxes owed by Waterbury Hospital, declaring them uncollectible, according to CT Insider. "This case has taken longer than expected...it's been more difficult than expected, frankly," Califano said. "But everyone understands that we need to obtain more financing." Judge Stacy Jernigan approved the $30 million loan, calling it an "upsize" to a $100 million financing package Prospect secured at the outset of its bankruptcy. "The debtor needs this money in just a few days or it's not going to be able to make payroll and other important expenses to preserve the value of the estate," Jernigan said in court. Lender JMB has also agreed to provide an additional $55 million if Prospect meets certain auction milestones related to its California hospitals by mid-August 2025, according to report. Earlier this 2025, Prospect shut down two financially struggling safety-net hospitals in the Philadelphia area after failing to find buyers, the report states. 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. PUERTO RICO: Restarts Power Auction After Court Halts Previous Deal ------------------------------------------------------------------- Ruth Liao and Jim Wyss of Bloomberg News report that Puerto Rico is restarting the bidding process for a contested 800MW temporary power generation contract after a local court ordered a halt to the original auction, Governor Jenniffer Gonzalez announced Thursday, July 10, 2025, evening. The revised contract will now span 10 years, up from the original three. More than a dozen companies had expressed interest in the initial bid, which was awarded to Miami-based Power Expectations, according to Bloomberg News. The award was challenged by Javelin Global Commodities, Gothams Energy, and Karpowership. New Fortress Energy was previously disqualified from participating in the original auction, the report relays. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies -- Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) -- commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. PUPEEZ INC: Case Summary & Five Unsecured Creditors --------------------------------------------------- Debtor: Pupeez Inc. 8800 W Charleston Blvd #3 Las Vegas, NV 89117 Business Description: Pupeez Inc., doing business as Petland Las Vegas, operates a pet retail store in Las Vegas, Nevada. The Company offers puppies, kittens, birds, small animals, and reptiles, along with related pet care services and supplies. It emphasizes pet education, staff training, and customer support to promote responsible pet ownership. Chapter 11 Petition Date: July 10, 2025 Court: United States Bankruptcy Court District of Nevada Case No.: 25-13932 Debtor's Counsel: Marjorie Guymon, Esq. GOLDSMITH & GUYMON, PC 2055 Village Center Circle Las Vegas, NV 89134-6251 Tel: (702) 873-9500 E-mail: info@goldguylaw.com Total Assets: $169,608 Total Liabilities: $3,291,700 Kenneth Kirkpatrick signed the petition as president. A full-text copy of the petition, which includes a list of the Debtor's five unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/6WIY7VQ/Pupeez_Inc__nvbke-25-13932__0001.0.pdf?mcid=tGE4TAMA PUPEEZ INC: Seeks Subchapter V Bankruptcy in Nevada --------------------------------------------------- On July 10, 2025, Pupeez Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Nevada. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Pupeez Inc. Pupeez Inc. is a Petland franchise pet store operating in Las Vegas, Nevada. Pupeez Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-13932) on July 10, 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 Marjorie A. Guymon, Esq. at Goldsmith & Guymon, P.C. QUANTUM HEALTH: Moody's Rates $100MM Incremental Term Loan 'B3' --------------------------------------------------------------- Moody's Ratings assigned a B3 rating to Quantum Health, Inc.'s ("Quantum") $100 million incremental backed senior secured first lien term loan B. There are no changes to Quantum's existing ratings, including the B3 corporate family rating, B3-PD Probability of Default Rating, and B3 ratings on the backed senior secured first lien term loan and backed senior secured revolving credit facility. The outlook remains stable. Quantum acquired Embold Health, Inc. ("Embold"), a physician-lead health care technology company. The acquisition was funded with an incremental $100 million term loan and common equity. The acquisition adds proprietary physician level analytics and an AI-powered healthcare provider recommendation engine to Quantum's navigation offerings. Pro forma the acquisition, Debt to EBITDA increases to approximately 5.0x from 3.7x as Embold adds minimal EBITDA. However, Moody's expects leverage to steadily improve as the company realizes benefits of a recently actioned cost savings program and cost synergies from the Embold acquisition. RATINGS RATIONALE Quantum's B3 CFR reflects its leading position in the healthcare benefits navigation industry, its track record of profitability and strong growth due to rising customer demand. Moody's anticipates that the company will continue to grow its client base of large employers. Quantum offers a compelling value proposition in helping employers reduce employee benefit costs and complexity while improving member satisfaction. These strengths are tempered by moderately high financial leverage with pro forma Debt to EBITDA approximately 5.0x for the twelve months ending February 28, 2025 (pro forma the Embold acquisition). Moody's anticipates continued deleveraging over the next 12 to 18 months as the company realizes benefits of its recently actioned cost savings program as well as cost synergies from the Embold acquisition. While customer diversity is strong, Quantum's business model diversity is low with a narrow service offering. In addition, the benefits navigation industry remains somewhat nascent, with overall low penetration among large employers and high market fragmentation. As such, Quantum's ability to competitively differentiate itself over the long-term is uncertain. Moody's expects Quantum will maintain good liquidity over the next 12 to 18 months. This reflects cash on hand of approximately $1 million as of February 28, 2025 pro forma the Embold acquisition and Moody's expectations for positive free cash flow over the next 12 to 18 months. The company had $5 million drawn and $75 million of availability on its $80 million revolving credit facility as of February 28, 2025. Quantum has since upsized its revolver to $90 million. The outlook is stable. Moody's expects Quantum's financial leverage to trend below 5.0x over the next 12 to 18 months and for the company to maintain good liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Factors that could lead to an upgrade include a sustained track record of solid growth through new customer wins and high customer retention, increased scale, and greater diversity in the company's business model and service offerings. Quantitatively, debt/EBITDA sustained below 5x would support an upgrade. Factors that could lead to a downgrade include a deterioration of operating performance. Ratings could also be downgraded if liquidity deteriorates, including sustained negative free cash flow and interest coverage sustained below 1.0x. Ratings could also be downgraded if there are significant client terminations, business disruptions or client servicing issues stemming from high growth. Headquartered in Columbus, Ohio, Quantum Health, Inc. provides healthcare coordination and navigation services to large US employers offering health benefits to employees. Quantum is privately-owned by Great Hill Partners, Warburg Pincus LLC and company management. The principal methodology used in this rating was Business and Consumer Services published in November 2021. R3CYCLE INDUSTRIES: Gets Interim OK to Use Cash Collateral ---------------------------------------------------------- R3cycle Industries, LLC got the green light from the U.S. Bankruptcy Court for the Western District of North Carolina, Charlotte Division, to use cash collateral. The court's order authorized the Debtor's interim use of cash collateral to pay operating expenses in accordance with its budget. The Debtor must not exceed the budget by more than 10% per line item on a cumulative basis. Without access to the cash collateral, the Debtor believes it would be forced to shut down immediately, destroying business value and creditor recovery prospects. The secured creditors with UCC financing statements include Community First Bank, De Lage Landen Financial Services, and Blackbridge Investment Group. While acknowledging these secured claims, the Debtor reserves the right to later challenge the validity and perfection of their liens, the value of the collateral, and the underlying debt amounts. As protection for the Debtor's use of their cash collateral, the secured creditors will be granted a replacement lien on the Debtor's post-petition property and the proceeds thereof, to the same extent and with the same priority as their pre-bankruptcy lien. Although the Debtor does not yet provide evidence of any equity cushion, it maintains that continued operations will preserve the going-concern value of the business, which in itself protects creditor interests. The next hearing is set for July 22. About R3cycle Industries LLC R3cycle Industries, LLC is a North Carolina-based PET plastic reprocessing company. R3cycle Industries sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. N.C. Case No. 25-30685) on July 1, 202, listing up to $500,000 in assets and up to $10 million in liabilities5. Julian Ochoa, owner and chief executive officer of R3cycle Industries, signed the petition. Judge Ashley Austin Edwards oversees the case. John C. Woodman, Esq., at Essex Richards PA, represents the Debtor as legal counsel. REBORN COFFEE: Arena Entities Hold 9.5% Equity Stake ---------------------------------------------------- Arena Investors, LP, Arena Investors GP, LLC, and Arena Business Solutions Global SPC II, LTD., disclosed in a Schedule 13G filed with the U.S. Securities and Exchange Commission that as of June 18, 2025, they beneficially own 505,518 shares of Reborn Coffee, Inc.'s Common Stock, $0.0001 par value per share, representing 9.5% of the 5,303,306 shares of Common Stock outstanding as reported by the Company in its Form 10-Q filed on May 20, 2025. Arena Investors may be reached through: Tsering Lama, Authorized Signatory 2500 Westchester Avenue, Suite 401, Purchase, New York 10577 Phone: 212-257-4178 A full-text copy of Arena Investors's SEC report is available at: https://tinyurl.com/2ykhudpw About Reborn Coffee Brea, Calif.-based Reborn Coffee, Inc. (NASDAQ: REBN) is focused on serving high quality, specialty-roasted coffee at retail locations, kiosks, and cafes. Reborn is an innovative company that strives for constant improvement in the coffee experience through exploration of new technology and premier service, guided by traditional brewing techniques. Reborn believes they differentiate themselves from other coffee roasters through innovative techniques, including sourcing, washing, roasting, and brewing their coffee beans with a balance of precision and craft. For more information, please visit www.reborncoffee.com. Irvine, Calif.-based BCRG Group, the Company's auditor since 2024, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company's significant operating losses raise substantial doubt about its ability to continue as a going concern. Reborn incurred recurring net losses, including net losses from operations before income taxes of $4.8 million and $4.7 million for the years ended December 31, 2024 and 2023, respectively. It used $3.5 million and $3.2 million cash for operating activities during the years ended December 31, 2024 and 2023, respectively. RELIABLE GENERAL: Unsecured Creditors to Split $45K over 60 Months ------------------------------------------------------------------ Reliable General Contractor, LLC, filed with the U.S. Bankruptcy Court for the Western District of Pennsylvania a Disclosure Statement to accompany Plan of Reorganization dated June 20, 2025. The Debtor is contractor. The Debtor will continue to operate its business. The Debtor was subject to a levy which froze its bank account. The Bankruptcy was filed to provide the Debtor with an opportunity to reorganize. Class 2 consists of General Unsecured Creditors. Unsecured creditors will be paid $45,000.00 overtime in equal payments of $750.00 made by the Debtor to the Disbursing Agent on a monthly basis, then distributed to creditors on a quarterly basis. The Debtors propose to pay this class in equal monthly payments for sixty months. This Class is impaired. Payments to unsecured creditors shall be made by the Debtor on a monthly basis and distributed to creditors on a quarterly basis. Once the payment is made by the Debtor, those funds shall be determined to be the property of the creditors. The projected monthly payment to the Disbursing Agent is projected to be $750.00. The projected quarterly distribution is $2,250.00. It is anticipated that the first payment to unsecured creditors will occur on or before the Plan Effective Date, which projected to be October 1, 2025. It is anticipated that the last payment will occur within 60 months after the first payment, which is projected to be September 1, 2030. Class 3 consists of Equity Interests. Equity Interests in the Debtor shall be retained. However, no distributions to Equity Interest Holders (other than regular allowed salary, wages, and allowed benefits) shall be made unless and until the Debtor is current on its Plan obligations. The Plan is being funded by the Debtor's disposable income and business operations. A full-text copy of the Disclosure Statement dated June 20, 2025 is available at https://urlcurt.com/u?l=F3zBPh from PacerMonitor.com at no charge. Counsel to the Debtor: Donald R. Calaiaro, Esq. Calaiaro Valencik 555 Grant Street, Suite 300 Pittsburgh, PA 15219 Telephone: (412) 232-0930 Facsimile: (412) 232-3858 Telephone: dcalaiaro@c-vlaw.com About Reliable General Contractor LLC Reliable General Contractor LLC is a trusted exterior remodeler in Western Pennsylvania. Reliable General Contractor LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No.24-23106) on Dec. 23, 2024. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $100,000 and $500,000. The Debtor is represented by Donald R. Calaiaro, Esq. at Calaiaro Valencik. RETO ECO-SOLUTIONS: Inks $10M Pre-Paid SPA With Streeterville ------------------------------------------------------------- ReTo Eco-Solutions, 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 Streeterville Capital, LLC. Pursuant to the Securities Purchase Agreement, the Company agreed to issue and sell to the Investor one or more pre-paid purchases at an aggregate purchase price of up to $10,000,000 for the purchase of the Company's Class A shares, no par value. The Company also agreed to issue: (i) 28,612 Class A Shares to the Investor as consideration for the Investor's commitment and (ii) 635,000 Class A Shares to the Investor for $63.50 on June 17, 2025. The proceeds from the Pre-Paid Purchases are expected to be used for working capital and other corporate purposes. The Securities Purchase Agreement provides for an initial Pre-Paid Purchase in the principal amount of $3,165,000, before deducting an original issue discount of $150,000 and a transaction expense amount of $15,000. The OID for each subsequent Pre-Paid Purchase after the Initial Pre-Paid Purchase will be 5% of the amount set forth in the applicable Request (as defined in the Securities Purchase Agreement) and each subsequent Pre-Paid Purchase will accrue interest at the rate of 7% per annum. Within a committed two-year period, and subject to certain specified conditions, the Company may request the issuance of additional Pre-Paid Purchases to the Investor, with each purchase amount no less than $250,000, provided that the total outstanding balance of all Pre-Paid Purchases does not exceed $2,000,000. Pursuant to the Securities Purchase Agreement and a registration rights agreement entered into on the same date, the Company will file a registration statement on Form F-1 under the Securities Act of 1933, as amended, to register the resale of a required number of Class A Shares, including the Commitment Shares, Pre-Delivery Shares and Class A Shares issuable pursuant to the Pre-Paid Purchases within 45 days after the Closing Date. Following the funding of each Pre-Paid Purchase, the Investor has the right, but not the obligation, to purchase from the Company its Class A Shares not exceeding: (i) the outstanding balance of the funded amount, and (ii) 9.99% beneficial ownership of the Company's outstanding Class A Shares. The purchase price of the Class A Shares will be 85% of the lowest daily VWAP during the 10 trading days immediately prior to the purchase notice date, but not less than the floor price. The Floor Price for the Initial Pre-Paid Purchase is $1.00. The Floor Price for the subsequent Pre-Paid Purchase is the greater of 20% of the "Minimum Price" as defined under Nasdaq Listing Rule 5635(d) as of the applicable Pre-Paid Purchase date and $1.00. In an event of default as specified in the Pre-Paid Purchase, the Investor may accelerate repayment, requiring the outstanding balance to become immediately due, with interest accruing at a rate of the lesser of 18% per annum or the maximum rate permitted under applicable law. The Securities Purchase Agreement contains customary representations, warranties, covenants, and closing conditions. The Pre-Paid Purchases are unsecured, and the Investor has the right, but not the obligation, to purchase additional Class A Shares under the terms set forth in the Securities Purchase Agreement. The offer and sale of these securities were not registered under the Securities Act, in reliance on an exemption from registration under Regulation D, promulgated under the Securities Act and the Company did not engage in any general solicitation in connection with such offer and sale. Full-text copy of the Securities Purchase Agreement is available at https://tinyurl.com/57m392p5 About Reto Eco-Solutions Reto Eco-Solutions, Inc., through its operating subsidiaries in China, is engaged in the manufacture and distribution of eco-friendly construction materials (aggregates, bricks, pavers and tiles), made from mining waste (iron tailings), as well as equipment used for the production of these eco-friendly construction materials. Headquartered in Beijing, Peoples Republic of China, the Company also provides consultation, design, project implementation and construction of urban ecological protection projects through its operating subsidiaries in China. It also provides parts, engineering support, consulting, technical advice and service, and other project-related solutions for its manufacturing equipment and environmental protection projects. Irvine, California-based YCM CPA Inc., the Company's auditor since 2021, issued a "going concern" qualification in its report dated May 8, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company reported a net loss of approximately $8.4 million and $16.1 million for the years ended December 31, 2024 and 2023, respectively, and the Company had a working deficit of approximately $2.6 million as of December 31, 2024. These conditions raise substantial doubt about the Company's ability to continue as a going concern. RETO ECO-SOLUTIONS: Streeterville Holds 9.9% Equity Stake --------------------------------------------------------- Streeterville Capital LLC, Streeterville Management, LLC, and John M. Fife, disclosed in a Schedule 13G filed with the U.S. Securities and Exchange Commission that as of June 24, 2025, they beneficially own 663,612 Class A Shares of ReTo Eco-Solutions, Inc., representing 9.9% of the 6,663,879 Class A Shares outstanding. Streeterville Capital LLC may be reached through: John M. Fife, President 303 East Wacker Drive, Suite 1040, Chicago, IL 60601 Phone: 312-297-7000 A full-text copy of Streeterville's SEC report is available at: https://tinyurl.com/43wsvsz3 About Reto Eco-Solutions Reto Eco-Solutions, Inc., through its operating subsidiaries in China, is engaged in the manufacture and distribution of eco-friendly construction materials (aggregates, bricks, pavers and tiles), made from mining waste (iron tailings), as well as equipment used for the production of these eco-friendly construction materials. Headquartered in Beijing, Peoples Republic of China, the Company also provides consultation, design, project implementation and construction of urban ecological protection projects through its operating subsidiaries in China. It also provides parts, engineering support, consulting, technical advice and service, and other project-related solutions for its manufacturing equipment and environmental protection projects. Irvine, California-based YCM CPA Inc., the Company's auditor since 2021, issued a "going concern" qualification in its report dated May 8, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company reported a net loss of approximately $8.4 million and $16.1 million for the years ended December 31, 2024 and 2023, respectively, and the Company had a working deficit of approximately $2.6 million as of December 31, 2024. These conditions raise substantial doubt about the Company's ability to continue as a going concern. RETSEL CORP: Lawsuit vs Native Americans Tossed ----------------------------------------------- Judge Lawrence L. Piersol of the United States District Court for the District of South Dakota granted the Native American defendants' motion to dismiss the amended complaint in the case captioned as RETSEL CORPORATION, d/b/a Grand Gateway Hotel and d/b/a Cheers Sports Lounge and Casino, CONNIE UHRE, and NICHOLAS UHRE, Plaintiffs, vs. NDN COLLECTIVE, individually and on behalf of all others similarly situation, SUNNY RED BEAR, individually and on behalf of all others similarly situated, NICK TILSEN, individually and on behalf of all others similarly situated, MARY BOWMAN, individually and on behalf of all others similarly situated, NICK COTTIER, individually and on behalf of all others similarly situated, ALBERTA EAGLE, individually and on behalf of all others similarly situated, BRE JACKSON, individually and on behalf of all others similarly situated, GEORGE BETTELYOUN, individually and on behalf of all others similarly situated, BOOKING HOLDINGS, INC. d/b/a Bookings.com, and THE RAPID CITY POLICE DEPARTMENT, Defendants, Case No. 5:24-CV-05070-LLP (D.S.D.). Counts I, II, III, IV, and V of the amended complaint are dismissed without prejudice. Plaintiff Retsel Corporation is a South Dakota corporation which does business as the Grand Gateway Hotel and Cheers Sports Lounge and Casino located in Rapid City, South Dakota. Plaintiffs Connie Uhre and Nicholas Uhre either operate or did operate the Grand Gateway Hotel. Nicholas Uhre is currently a director of Retsel. Defendant NDN Collective is a non-profit South Dakota Corporation that benefits Native Americans. Defendants Nick Tilsen, Sunny Red Bear, Mary Bowman, Nick Cottier, Alberta Eagle, and Bre Jackson are Native American individuals who reside in Rapid City, South Dakota. Nick Tilsen is the president and CEO of NDN Collective. Defendant George Bettelyoun is a Native American who resides in Coon Rapids, Minnesota. Plaintiffs allege that all individually named Defendants are members of NDN Collective. The parties are currently involved in two active lawsuits: 1. NDN Collective et al. v. Retsel et al. Case No. 5:22-CV-05027-LEP (D.S.D.) ("Retsel I") Retsel I began when NDN Collective, Sunny Red Bear, George Bettelyoun, Alberta Eagle, Nick Cottier, Bre Jackson, and Mary Bowman sued Retsel, Nick Uhre, and Connie Uhre for discrimination on the basis of race on March 23, 2022, in the Western Division of the District of South Dakota. In Retsel I, Retsel and Nick Uhre asserted five counterclaims against NDN Collective: (Counterclaim I) Intentional Interference with Business Relations; (Counterclaim II) Defamation; (Counterclaim III) Trespass; (Counterclaim IV) Nuisance; and (Counterclaim V) Civil Conspiracy. 2. Retsel et al. v. NDN Collective et al. Case No. 5:24-CV-05070-LLP (D.S.D.) ("Retsel II") Retsel II -- the one currently before the Court -- began when Retsel, Nick Uhre, and Connie Uhre sued the Native American Defendants on September 6, 2024, also in the Western Division of the District of South Dakota asserting five claims: (Count I) Intentional Interference with Business Relations; (Count II) Injurious Falsehood; (Count III) Defamation; (Count IV) Forgery; and (Count Y) Civil RICO Conspiracy. Both the counterclaims in Retsel I and the claims in Retsel II concern the alleged conduct of NDN Collective, through its claimed members, following Connie Uhre's post on her Facebook that Native Americans would no longer be allowed to stay at the Grand Gateway Hotel and other alleged racial comments and actions by Nick Uhre. According to the Court, the extent to which the lawsuits cover the same conduct and involve the same parties, however, is the key question. The Native American Defendants argue that Retsel I and Retsel II involve the same parties and rely on the same, or essentially the same, nucleus of operative facts, which would preclude Retsel II on claim-splitting grounds. Plaintiffs argue in opposition that the parties to Retsel I and Retsel II are not identical and that the facts in Retsel II are temporally distinct from those in Retsel I. According to the Court, even though Retsel II expands on the allegations of Retsel I, includes different legal theories, and adds a handful of Defendants, there can be little doubt that both cases arise from a common nucleus of operative fact -- NDN Collective and its claimed members' alleged conduct following Connie Uhre's racially charged statements, and the Grand Gateway Hotel's alleged discriminatory policy towards Native Americans. Further, both actions seek the same relief: to hold NDN Collective liable for the alleged ongoing and continuing injury to Plaintiffs' business. Accordingly, for purposes of the claim-splitting analysis, the Court finds that Plaintiffs' claims against the Native American Defendants in Retsel II is duplicative of Retsel's and Nick Uhre's counterclaims in Retsel I. The Court concludes that the identity of the claims and parties, and the desire to promote judicial economy and protect the parties from duplicative litigation over the same subject matter, together warrant the dismissal of Plaintiffs' claims against the Native American Defendants. Defendants NDN Collective, Sunny Red Bear, Nick Tilsen, Mary Bowman, Nick Cottier, Alberta Eagle, Bre Jackson, and George Bettelyoun are dismissed as parties to Retsel II. A copy of the Court's Memorandum Opinion and Order dated June 30, 2025, is available at https://urlcurt.com/u?l=KhY6OW from PacerMonitor.com. About Retsel Corporation Retsel Corporation operates in the traveler accommodation industry. It conducts business under the names Grand Gateway Hotel and Cheers Sports Lounge and Casino. Retsel Corporation filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.S.D. Case No. 24-50081) on September 7, 2024, with $1 million to $10 million in both assets and liabilities. Chad Uhre, president, signed the petition. Judge Laura L. Kulm Ask oversees the case. The Debtor is represented by Robert L. Meadors, Esq., at Brende & Meadors, LLP. RF CAPITAL: DBRS Confirms Pfd-4 (high) Credit Ratings ----------------------------------------------------- DBRS Limited confirmed RF Capital Group Inc.'s (RF Capital or the Company) Cumulative Preferred Shares credit rating at Pfd-4 (high), with a Stable trend. The Company's Support Assessment is SA3, meaning that timely systemic support is not expected. KEY CREDIT RATING CONSIDERATIONS The credit rating confirmation and Stable trend reflect RF Capital's solid wealth management franchise, good financial flexibility, and stable assets under administration (AUA). A significant portion of revenues are fee-based, supporting the consistency of underlying earnings. However, the Company has seen an increased amount of AUA loss due to advisor attrition recently, largely offsetting with the AUA gain from new advisor recruitments. Morningstar DBRS sees operational risk among key risks for the Company to manage and expects that various technology platform updates should ultimately provide a longer-term benefit to RF Capital's operational capabilities and its AUA base. The credit rating also considers several recent executive leadership changes and the refined strategic focus on prioritizing operational excellence and organic growth. CREDIT RATING DRIVERS RF Capital Group Inc.'s credit rating would be upgraded if there is a significant strengthening of the Company's market positioning and scale combined with a return to consistent and robust overall profitability, while maintaining solid balance sheet fundamentals. Conversely, the Company's credit rating would be downgraded if the Company shows substantially constrained earnings power and significant operational or reputational lapses. In addition, leadership transitions leading to material delays in strategic executions and persistent key advisor departures would also result in a downgrade. CREDIT RATING RATIONALE Franchise Strength Building Block Assessment: Good/Moderate RF Capital is among the key players in the independent wealth advisory space, with the overall Canadian wealth management market dominated by wealth management divisions from major Canadian banks. The Company has reached its $40 billion AUA record for the first time in November 2024 ($39.2 billion as at Q1 2025), benefitting from strong market growth and advisor recruiting activities. However, in 2024 the Company also experienced departures of advisor teams that managed $2.3 billion of AUA, partially due to the persistent operational challenges related to back-office functions. Since 2024, The Company has undergone several executive leadership changes, including Dave Kelly as the new president and CEO in October and Francis Baillargeon as the new CFO in November 2024, who are both well-experienced leaders in the industry. Under the new executive leadership, RF Capital refined its focus on providing strong operational and technology supports to advisors and recruiting like-minded advisor teams. Earnings Power Building Block Assessment: Moderate RF Capital has been generating stable revenues over the past few years, benefitting from a higher proportion of fee-based AUAs. The Company reported a positive net income of $0.6 million in 2024, following three years of net losses. However, Morningstar DBRS expects the operating expenses to remain relatively high in the near future due to continuous investments in strategic initiatives and recruiting efforts. RF Capital reported a slight growth of 4% in EBITDA to $57 million in 2024. Three-year weighted EBITDA margin, as per Morningstar DBRS calculations, is at 15.5%, while the EBITDA margin in Q1 2025 declined to 9.5% primarily due to higher mark-to-market expenses related to deferred share-based employee compensation. Risk Profile Building Block Assessment: Good RF Capital has minimal on balance sheet risk but faces potential operational risk as it implements various initiatives to grow its business. Operational risk management is critical in a data-intensive and transactional environment, where the consequences of operational breakdown can be severe, both financially and in terms of reputational risks. RF Capital has implemented new initiatives prioritizing operational excellence, but the cost of initiatives and execution outcomes remains key considerations. There are minimal investments on the balance sheet, and assets managed by the financial advisors are largely liquid. The Company is also exposed to credit risk primarily through the margin loans to clients, which are secured by assets in the client's account and well managed by RF Capital under restrictive lending limits. Funding and Liquidity Building Block Assessment: Good/Moderate RF Capital derives liquidity from its working capital and its credit facilities. The Company has a $200 million revolving credit facility with a syndicate of lenders. As of March 31, 2025, RF Capital had drawn $80.5 million against the facility, unchanged since the establishment of the facility in 2021. It also had $87 million of cash on hand as working capital as at Q1 2025. Capitalization Building Block Assessment: Moderate RF Capital's leverage is moderate. There is limited growth in retained capital because of investments in strategic initiatives and recruiting. The Company is subject to regulatory capital requirements that ensure sufficient liquidity to meet obligations. According to management, regulatory capital levels, which fluctuate based on margin requirements for outstanding trades and other factors, were in compliance with all regulatory and Company's internal requirements as of Q1 2025. Notes: All figures are in Canadian dollars unless otherwise noted. RINCHEM CO: Transfers Assets Beyond Creditor Access --------------------------------------------------- Reshmi Basu of Bloomberg News reports that Rinchem, backed by Stonepeak Partners, informed lenders that it had shifted certain assets beyond the reach of existing creditors, according to sources familiar with the matter. The company transferred collateral to an unrestricted subsidiary -- a move that allows greater flexibility to raise capital using those assets, the sources said, requesting anonymity due to the private nature of the discussions. The designation of the unrestricted subsidiary followed confidential talks between Rinchem and some of its lenders, prompted by the company's loans trading at distressed levels, the sources added. About Rinchem Company LLC Rinchem is a specialized supply chain solutions provider to semiconductor manufacturing, pharmaceuticals and biotechnology. It warehouses and transports high-value, high purity chemicals and specialty gases for the complex semiconductor manufacturing process. The company is owned by investment vehicles affiliated with Stonepeak Infrastructure Partners. RINGCENTRAL INC: Fitch Hikes LongTerm IDR to BB+, Outlook Positive ------------------------------------------------------------------ Fitch Ratings has upgraded RingCentral, Inc.'s Long-Term Issuer Default Rating (IDR) to 'BB+' from 'BB'. The Rating Outlook is Stable. Fitch has also upgraded the company's senior unsecured notes to 'BB+' from 'BB' with a Recovery Rating of 'RR4'. The upgrades reflect RingCentral's focus on improving profitability in recent years. While the company's exposure to the small- to midsize-business (SMB) and middle markets creates some sensitivity to macroeconomic softening, which may impact near-term results, financial leverage has declined and cash generation has improved significantly. Fitch expects leverage will remain low, at 2.0x or below, over the rating horizon. RingCentral, Inc.'s ratings are supported by its strong Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) solutions. Subscriptions to these services result in a large base of recurring revenue, representing around 95% of total revenue. Annualized exit monthly recurring subscriptions show ongoing growth, increasing again in 1Q25. Key Rating Drivers Improved Leverage: EBITDA leverage fell to a low 2.6x as of March 2025, as profitability improved over the past year, driven by solid revenue growth and a tighter focus on operating expenses. The company's plan to rationalize costs, implemented in 4Q22 and continued through 2024, should enhance efficiency, leading to an adjusted EBITDA margin in the mid-20s. Fitch believes leverage could trend well below 2.0x by YE 2026 via EBITDA growth and the possibility of repayment of maturing convertible notes in 2026. Fitch has also reviewed the company on FCF-based leverage metrics, including (CFO-capex)/debt, which has improved in recent years, ranging from negative in 2021 to 23% in 2024 as FCF rose. Fitch projects this leverage metric will stabilize in the mid-30s over the next few years. Improved FCF Profile: Fitch expects FCF margin to stabilize in the mid to high-teens in the medium term with improving EBITDA to FCF conversion. Fitch forecasts RingCentral will generate at least $450 million of Fitch-defined FCF annually in fiscal years 2025-2027, with the majority going toward investing in innovation, debt reduction and share repurchases. The stable FCF generation provides RingCentral with ample financial flexibility for investments to further strengthen its capabilities around an artificial intelligence-first multi-product strategy. Significant Recurring Revenue: Approximately 95% of RingCentral's revenue is recurring, providing some visibility into its revenue stream, and its net dollar retention was over 99% at end-1Q25. Annualized exit monthly recurring subscriptions improved to $2.5 billion by YE 2024, from $2.1 billion at YE 2022, further rising by 7% yoy in 1Q25. SMB Exposure: RingCentral's cloud-based communication solutions have seen significant adoption by SMB customers across its UCaaS and CCaaS business. While the SMB clientele could be more sensitive to economic cycles that could result in higher churn, this is somewhat mitigated by its mission-critical communication and customer engagement platform, which supports the trend towards remote and global workforces. Competitive Environment: There is intense competition in the UCaaS and CCaaS markets due to fragmentation and limited barriers to entry. The market requires constant product innovation stemming from ever-changing business and consumer needs. RingCentral maintains its strong position for SMB and mid-market customers through its product-led growth and diverse offerings, which provide significant value to users. Evolving Industry Demand: With hybrid work, RingCentral's user base can use its products to communicate across devices, including smartphones, tablets, PC's and desk phones. This flexible communication method has helped employees become productive in ways that traditional on-premise systems cannot. RingCentral's solutions enable distributed workforces, improving the capability of remote offices through its cloud-based software. Its location-independent nature enables business communication with a single identity, supporting multinational workforces globally, while reducing the complexities of on-premise solutions and private branch exchanges. Near-Term Maturities: RingCentral has $609 million of convertible notes maturing in March 2026. Fitch believes the company has sufficient sources of liquidity to address these maturities. However, if the company chooses to refinance its debt Fitch expects that it will be able to refinance the debt, absent any material disruptions in the capital markets. Management has indicated its commitment to reduce its gross debt level to below $1 billion by the end of 2026. Peer Analysis RingCentral is a publicly traded company that offers cloud-based communications and collaboration software solutions. Its software offerings utilize AI-powered conversation intelligence to improve business outcomes. RingCentral's 'BB+' IDR reflects its size and scale, as well as its credit profile. RingCentral's rating is the same as Open Text Corporation (OTEX; BB+/Stable Outlook) and Gen Digital Inc. (GEN; BB+/Negative Outlook). Compared with OTEX and GEN, RingCentral has smaller size and lower EBITDA margins. Fitch expects leverage for OTEX and GEN to decrease over the next several quarters, potentially reaching around 3.5x by end-2025, while we anticipate RingCentral's leverage to fall below 2.5x in the same time frame. Fitch estimates that RingCentral's adjusted EBITDA margins will be around mid-20s%, whereas OTEX may have EBITDA margins in the 30's% and GEN will be around 50s%. GEN is different than RingCentral and OTEX in that it serves consumers. Key Assumptions - Revenue growth in the mid-single digit range; - EBITDA margins maintained in the mid-20s over the rating horizon; - Capex maintained in the historical range of 3.5% as a percentage of revenues; - Share repurchases continue throughout the rating horizon; - Maturing 2026 convertible notes are partially refinanced with debt;--Fitch assumes tuck-in acquisitions of $100 million in total throughout the rating horizon. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Fitch's expectation of EBITDA leverage above 3.0x on a sustained basis; - (CFO-capex)/debt below 10% on a sustained basis; - Evidence of negative organic growth driven by elevated churn and erosion of EBITDA and FCF margins; - Significant debt-financed acquisitions or share repurchases that significantly weaken the company's credit profile for a prolonged period. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Increased market share position, evidenced by significant revenue and EBITDA growth, coupled with greater diversification across end market; - A public commitment to sustain EBITDA leverage below 2.5x. Liquidity and Debt Structure As of March 31, 2025, RingCentral had liquidity consisting of $154.4 million of cash and cash equivalents, $225 million of revolver availability, and access to $350 million of undrawn capacity on its delayed draw term loan. The company fully repaid its $161 million 2025 convertible notes upon maturity in March 2025. Remaining maturities include $609 million of 2026 convertible notes, $365 million of Term Loan due 2028, and $400 million of senior notes due 2030. RingCentral has publicly stated that it is committed to further reducing its gross debt level to below $1 billion by the end of 2026. Fitch notes that RingCentral has $200 million of series A preferred that is treated as 100% debt. The preferred equity series include a provision requiring redemption for cash upon a Change of Control. Under Fitch's "Corporate Hybrids Treatment and Notching Criteria," this negates equity credit. Issuer Profile Ring Central, Inc. offers cloud-based business communications and collaboration software solutions. Its software offerings also utilize AI-powered conversation intelligence to improve business outcomes. 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 ----------- ------ -------- ----- RingCentral, Inc. LT IDR BB+ Upgrade BB senior unsecured LT BB+ Upgrade RR4 BB RIVERSIDE EXPRESS: Case Summary & Two Unsecured Creditors --------------------------------------------------------- Debtor: Riverside Express Car Wash, LLC d/b/a Ultra Express Car Wash 6458 Van Buren Blvd. Riverside, CA 92503 Business Description: Riverside Express Car Wash, LLC, doing business as Ultra Express Car Wash, operates an automated car wash facility offering exterior wash services, detailing, and limited self-service options. The Company provides unlimited monthly membership plans and features modern equipment, interior wash stations, over 70 self-serve vacuum stalls, and eco-friendly water recycling at its customer-oriented site. Chapter 11 Petition Date: July 10, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-14654 Judge: Hon. Magdalena Reyes Bordeaux Debtor's Counsel: Michael Jay Berger, Esq. LAW OFFICES OF MICHAEL JAY BERGER 9454 Wilshire Boulevard, 6th Floor Beverly Hills, CA 90212 Tel: (310) 271-6223 Fax: (310) 271-9805 E-mail: michael.berger@bankruptcypower.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Amariah Olson as managing member. 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/BGPXDYQ/Riverside_Express_Car_Wash_LLC__cacbke-25-14654__0001.0.pdf?mcid=tGE4TAMA RIVERSIDE EXPRESS: Seeks Chapter 11 Bankruptcy in California ------------------------------------------------------------ On July 10, 2025, Riverside Express Car Wash LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Riverside Express Car Wash LLC Riverside Express Car Wash LLC, operating as Ultra Express Car Wash, operates express car wash facilities in Riverside, California, offering automated vehicle cleaning services. Riverside Express Car Wash LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-14654) on July 10, 2025. In its petition, the Debtor reports estimated assets and liabilities between $ million and $10 million each. Honorable Bankruptcy Judge Magdalena Reyes Bordeaux handles the case. The Debtors are represented by Michael Jay Berger, Esq. ROCKY MOUNTAIN: Regains Nasdaq Compliance After 10-K Filing ----------------------------------------------------------- As previously disclosed in a Form 12b-25 Notification of Late Filing filed by Rocky Mountain Chocolate Factory, Inc. on May 27, 2025, the Company was delayed in filing its Annual Report on Form 10-K for the fiscal year ended February 28, 2025, with the U.S. Securities and Exchange Commission. On June 17, 2025, the Company received a notice from The Nasdaq Stock Market LLC notifying the Company that, because the Company is delinquent in filing the Form 10-K, the Company no longer complied with Nasdaq Listing Rule 5250(c)(1), which requires companies with securities listed on The Nasdaq Stock Market to timely file all required periodic reports with the SEC. The Notice had no immediate effect on the listing or trading of the Company's common stock. On June 20, 2025, the Company filed the Form 10-K and regained compliance with the Rule. On June 23, 2025, the Company received a notice from Nasdaq indicating that it had regained compliance with the Rule. About Rocky Mountain Chocolate Factory Durango, Colo.-based Rocky Mountain Chocolate Factory, Inc. is an international franchisor, confectionery producer, and retail operator. Founded in 1981, the Company produces an extensive line of premium chocolate candies and other confectionery products. New York, N.Y.-based CohnReznick LLP, the Company's auditor since 2023, issued a "going concern" qualification in its report dated June 20, 2025, attached to the Company's Annual Report on Form 10-K for the year ended February 29, 2025, citing that the Company has incurred recurring losses and negative cash flows from operations in recent years and is dependent on debt financing to fund its operations, all of which raise substantial doubt about the Company's ability to continue as a going concern. ROOSEVELT TROPICAL: Seeks Chapter 11 Bankruptcy in New York ----------------------------------------------------------- On July 10, 2025, Roosevelt Tropical Corp. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of New York. According to court filing, the Debtor reports up to $50,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Roosevelt Tropical Corp. Roosevelt Tropical Corp. is a restaurant business operating in the food services industry. Roosevelt Tropical Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-43315) on July 10, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities up to $50,000. Honorable Bankruptcy Judge Nancy Hershey Lord handles the case. The Debtors are represented by E. DuBois Raynor, Jr., Esq. at Civil Rights Consortium, Inc. RX ASHLAND: Trigild Named as Receiver for Ashland, Va. Property --------------------------------------------------------------- Chris Neilson of Trigild IVL has been named as receiver and can receive real and personal property assets owned by Defendant RX Ashland Investors. L.L.C. located at 607 England Street, Ashland, Virginia. In the case styled Wilmington Trust, National Association, as Trustee for the Benefit of the Registered Holders of Wells Fargo Commercial Mortgage Trust 2021-C59, Commercial Mortgage Pass-Through Certificates, Series 2021-C59. Commercial Mortgage PassThrough Certificates. Series 2021-C59. through its special servicer Argentic Services Company LP, Plaintiff v. WEC 98D-7 LLC, WEC 98D-16 LLC, WEC 98D-17 LLC, WEC 98D-18 LLC, WEC 98D-21 LLC, WEC 98D-23 LLC, each a Texas limited liability company; and RX Ashland Investors, L.L.C. and RA2 Stuarts Draft L.L.C., each a Delaware limited liability company, Defendants, Case No. 3:25-mc-00007-JAG (E.D. Va.), the Plaintiff enters notice of filing of the federal order appointing Neilson as receiver in the United States District Court for the Eastern District of Virginia because this district encompasses property at issue in the Michigan action. The notice is made in accordance with 28 U.S.C. Section 754 of an Order for Receiver entered in the United States District Court for the Eastern District of Michigan, on June 24, 2025, Case No. 25-11620. In the E.D. Mich. case, the Court found that there is good cause to appoint a receiver in this action in order to protect the parties' respective interests in the properties, including all rights, title and interest, including leasehold interests, of WEC 98D-7 LLC, WEC 98D-16 LLC, WEC 98D-17 LLC, WEC 98D-18 LLC, WEC 98D-21 LLC, WEC 98D-23 LLC, RX Ashland Investors, L.L.C. and RA2 Stuarts Draft L.L.C ("Defendants" or "Borrowers"). The Court further found that the proposed Receiver has sufficient competence, qualification and experience to administer the Receivership Property. WEC 98D-7 LLC is a Texas limited liability company. Defendant WEC 98D-7 LLC is represented by: Paul Gibson, Esq. HOLLAND & KNIGHT LLP 200 S 10th Street, Suite 1000 Richmond, VA 23219 Telephone: (804) 799-6594 E-mail: paul.gibson@hklaw.com S&W SEED: CFO Vanessa Baughman Assumes Interim CEO Role ------------------------------------------------------- S&W Seed Company disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on June 18, 2025, the Board of Directors of the Company terminated Mark Herrmann as the Company's President and Chief Executive Officer, effective immediately. In connection with Mr. Herrmann's termination, the Board appointed Vanessa Baughman, the Company's Chief Financial Officer, to serve as Interim Chief Executive Officer of the Company, effective immediately. As of June 23, 2025, no new compensatory arrangements have been entered into with Ms. Baughman in connection with her appointment as Interim Chief Executive Officer. Biographical and other information about Ms. Baughman is included in the Company's definitive proxy statement on Schedule 14A filed with the U.S. Securities and Exchange Commission on November 5, 2024. There are no arrangements or understandings between Ms. Baughman and any other person pursuant to which she was appointed to serve as Interim Chief Executive Officer of the Company. There are also no family relationships between Ms. Baughman and any director or executive officer of the Company, and Ms. Baughman does not have a direct or indirect material interest in any "related party" transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K. About S&W Seed Company Founded in 1980, S&W is a global multi-crop, middle-market agricultural company headquartered in Longmont, Colorado. S&W's vision is to be the world's preferred proprietary seed company which supplies a range of sorghum, forage and specialty crop products that supports the growing global demand for animal proteins and healthier consumer diets. S&W is a global leader in proprietary sorghum seeds with significant research and development, production and distribution capabilities. S&W also has a commercial presence in proprietary alfalfa seeds, and through a partnership, is focused on sustainable biofuel feedstocks primarily within camelina. For more information, please visit www.swseedco.com. Denver, Colorado-based Grant Thornton LLP, the Company's auditor since 2024, issued a "going concern" qualification in its report dated Nov. 1, 2024. The report cited that the Company has incurred a net loss of $30.1 million and cash used in operating activities was $5.6 million for the year ended June 30, 2024, and as of that date, the Company's current liabilities exceeded its current assets by $5.9 million and had an accumulated deficit of $122.1 million. In addition, the Company's subsidiary, S&W Australia, entered into voluntary administration on July 24, 2024, and is no longer under the Company's control. S&W Australia's entry into voluntary administration also resulted in an event of default under the Company's Amended CIBC Loan Agreement. On Aug. 5, 2024, the Company received a waiver for the event of default from CIBC, which contained conditions that are not within the Company's control. Effective Sept. 16, 2024, the Company was not in compliance with the amended terms per the Third Amendment of the Company's Amended CIBC Loan Agreement, which constitutes an additional event of default, and through the date of this report has not been able to regain compliance. These conditions and uncertainties as to whether the Company can mitigate the impact of the voluntary administration, along other matters, raise substantial doubt about the Company's ability to continue as a going concern. S&W SEED: Faces Default Risk on $25M Loan; Cross-Default Triggered ------------------------------------------------------------------ S&W Seed Company disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company received a Notice of Event of Default and Reservation of Right from Mountain Ridge under the Mountain Ridge Credit Agreement (a Credit and Security Agreement with ABL OPCO LLC). The Notice indicated that an event of default had occurred and is continuing under the Mountain Ridge Credit Agreement due to a violation of Section 2.5(h)(1) of the Mountain Ridge Credit Agreement resulting from the Company's failure to immediately prepay the Obligations in an aggregate amount equal to the amount by which the Revolving Exposure exceeds the Borrowing Base of approximately $180,000 (as reflected in the Borrowing Base Certificate most recently delivered by the Borrowers). As a result of the occurrence and continuance of the "Existing Default", all Obligations (other than Obligations subject to the Enhanced Interest Rate discussed above) will automatically bear interest at the Default Rate, which means, as of any date of determination, a rate per annum equal to the lesser of (a) the sum of (i) the interest rate applicable under Section 3.1(b) of the Mountain Ridge Credit Agreement at such time plus (ii) two percent; and (b) the maximum rate of interest permitted under applicable law from time to time in effect. Additionally, the Company will be subject to certain limitations, restrictions and/or prohibitions in accordance with the Mountain Ridge Credit Agreement relating to, among other things, transfers of assets, sales or dispositions, investments in the joint ventures and other investments and any MFP Stock Redemptions. The Existing Default permits Mountain Ridge to declare all Obligations immediately due and payable, which was approximately $20.9 million as of June 23, 2025. The Existing Default also triggered a cross-default under the Term Loan Agreement, dated June 20, 2023, by and among AgAmerica Lending LLC and the Company, pursuant to which AgAmerica extended a term loan of $4.3 million to the Company and, as security therefor, the Company granted to AgAmerica a mortgage on approximately 31 acres of land located in Lubbock and Moore Counties, Texas, and certain personal property thereon. The Cross Default permits AgAmerica to declare all outstanding obligations under the Term Loan Agreement immediately due and payable, which was approximately $4.3 million as of June 23, 2025. The Company is currently in discussions with Mountain Ridge and AgAmerica with respect to the Existing Default and the Cross Default, respectively. However, there can be no assurance as to the outcome of any such discussions, including whether Mountain Ridge and/or AgAmerica will seek to enforce their respective rights in the future under the Mountain Ridge Credit Agreement and the Term Loan Agreement, as applicable. About S&W Seed Company Founded in 1980, S&W is a global multi-crop, middle-market agricultural company headquartered in Longmont, Colorado. S&W's vision is to be the world's preferred proprietary seed company which supplies a range of sorghum, forage and specialty crop products that supports the growing global demand for animal proteins and healthier consumer diets. S&W is a global leader in proprietary sorghum seeds with significant research and development, production and distribution capabilities. S&W also has a commercial presence in proprietary alfalfa seeds, and through a partnership, is focused on sustainable biofuel feedstocks primarily within camelina. For more information, please visit www.swseedco.com. Denver, Colorado-based Grant Thornton LLP, the Company's auditor since 2024, issued a "going concern" qualification in its report dated Nov. 1, 2024. The report cited that the Company has incurred a net loss of $30.1 million and cash used in operating activities was $5.6 million for the year ended June 30, 2024, and as of that date, the Company's current liabilities exceeded its current assets by $5.9 million and had an accumulated deficit of $122.1 million. In addition, the Company's subsidiary, S&W Australia, entered into voluntary administration on July 24, 2024, and is no longer under the Company's control. S&W Australia's entry into voluntary administration also resulted in an event of default under the Company's Amended CIBC Loan Agreement. On Aug. 5, 2024, the Company received a waiver for the event of default from CIBC, which contained conditions that are not within the Company's control. Effective Sept. 16, 2024, the Company was not in compliance with the amended terms per the Third Amendment of the Company's Amended CIBC Loan Agreement, which constitutes an additional event of default, and through the date of this report has not been able to regain compliance. These conditions and uncertainties as to whether the Company can mitigate the impact of the voluntary administration, along other matters, raise substantial doubt about the Company's ability to continue as a going concern. S&W SEED: Gets $1.08M in New Loans Under Mountain Ridge Deal ------------------------------------------------------------ As previously disclosed, on December 19, 2024, S&W Seed Company entered into a Credit and Security Agreement, referred herein as the "Mountain Ridge Credit Agreement" with ABL OPCO LLC ("Mountain Ridge"), as administrative agent, and the lenders party thereto. The Mountain Ridge Credit Agreement provides for a senior secured credit facility of up to $25.0 million. On June 18, 2025, the Company and Mountain Ridge entered into a letter agreement relating to the Mountain Ridge Credit Agreement. Pursuant to the Letter Agreement, the Lenders advanced additional Revolving Loans under the Mountain Ridge Credit Agreement to the Company in the aggregate principal amount of $1,080,000 solely to pay estimated costs and expenses related to: (i) payroll, (ii) a retainer for legal and professional services, and (iii) a premium for tail coverage with respect to directors and officers liability insurance. The Specified Revolving Loans are secured by the Collateral. The Lenders have also agreed to make additional advances in the amount of $6,500 per day to cover the cost of payroll of -- "Key Employees" or the seven employees remaining employed as of the date of June 23, 2025, following the termination of all non-essential Company employees on June 18, 2025 -- for each business day that the Key Employees remain employed by the Company, subject to cancellation by the Lenders with 24-hour advance notice. In consideration of the Lenders' agreement to advance the Specified Revolving Loans, the Company will pay the Lenders a funding fee in the aggregate amount of $1,080,000, which amount: (i) became fully earned and nonrefundable on the date of the Letter Agreement, (ii) shall be due and payable on the earlier to occur of: (A) the Maturity Date, (B) Acceleration of the Loans, or (C) any sale of any assets of the Loan Parties outside the ordinary course of business, and (iii) shall be considered an earned fee for all purposes under the Mountain Ridge Credit Agreement on account of all Obligations generally and in consideration for all outstanding Loans which have been made, including the Specified Revolving Loans. The Letter Agreement also amended the Mountain Ridge Credit Agreement such that all Obligations that represent Revolving Exposure in excess of the Borrowing Base (as reflected in the Borrowing Base Certificate most recently delivered by the Borrowers), including the Specified Revolving Loans, will bear interest at a rate of 18.00% per annum from the date of the Letter Agreement until the date the Revolving Exposure is no longer in excess of the Borrowing Base. Full text of the Letter Agreement: https://tinyurl.com/5ce6thxf About S&W Seed Company Founded in 1980, S&W is a global multi-crop, middle-market agricultural company headquartered in Longmont, Colorado. S&W's vision is to be the world's preferred proprietary seed company which supplies a range of sorghum, forage and specialty crop products that supports the growing global demand for animal proteins and healthier consumer diets. S&W is a global leader in proprietary sorghum seeds with significant research and development, production and distribution capabilities. S&W also has a commercial presence in proprietary alfalfa seeds, and through a partnership, is focused on sustainable biofuel feedstocks primarily within camelina. For more information, please visit www.swseedco.com. Denver, Colorado-based Grant Thornton LLP, the Company's auditor since 2024, issued a "going concern" qualification in its report dated Nov. 1, 2024. The report cited that the Company has incurred a net loss of $30.1 million and cash used in operating activities was $5.6 million for the year ended June 30, 2024, and as of that date, the Company's current liabilities exceeded its current assets by $5.9 million and had an accumulated deficit of $122.1 million. In addition, the Company's subsidiary, S&W Australia, entered into voluntary administration on July 24, 2024, and is no longer under the Company's control. S&W Australia's entry into voluntary administration also resulted in an event of default under the Company's Amended CIBC Loan Agreement. On Aug. 5, 2024, the Company received a waiver for the event of default from CIBC, which contained conditions that are not within the Company's control. Effective Sept. 16, 2024, the Company was not in compliance with the amended terms per the Third Amendment of the Company's Amended CIBC Loan Agreement, which constitutes an additional event of default, and through the date of this report has not been able to regain compliance. These conditions and uncertainties as to whether the Company can mitigate the impact of the voluntary administration, along other matters, raise substantial doubt about the Company's ability to continue as a going concern. S&W SEED: Reduces Workforce to 7, Warns of Potential Bankruptcy --------------------------------------------------------------- S&W Seed Company disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that in order to reduce costs, the Company terminated all non-essential Company employees, which resulted in seven employees remaining employed as of June 23, 2025. Despite such cost containment measures and the Specified Revolving Loans, in anticipation of not having sufficient cash and cash equivalents or cash flows from operations to meet its operating and liquidity needs, the Company continues to explore strategic alternatives focused on maximizing stockholder value, including potential sales of assets or certain lines of business, a dissolution and liquidation of the Company, as well as other strategic actions, such as seeking relief under bankruptcy laws. There can be no assurance that the Company will have sufficient funds to explore strategic alternatives, that the exploration of strategic alternatives will result in any agreements or transactions, or that, if completed, any agreements or transactions will be successful or on attractive terms. The Company does not expect to disclose or provide an update concerning developments related to this process until the Company enters into definitive agreements or arrangements with respect to a transaction or otherwise determines additional disclosure is necessary or appropriate. About S&W Seed Company Founded in 1980, S&W is a global multi-crop, middle-market agricultural company headquartered in Longmont, Colorado. S&W's vision is to be the world's preferred proprietary seed company which supplies a range of sorghum, forage and specialty crop products that supports the growing global demand for animal proteins and healthier consumer diets. S&W is a global leader in proprietary sorghum seeds with significant research and development, production and distribution capabilities. S&W also has a commercial presence in proprietary alfalfa seeds, and through a partnership, is focused on sustainable biofuel feedstocks primarily within camelina. For more information, please visit www.swseedco.com. Denver, Colorado-based Grant Thornton LLP, the Company's auditor since 2024, issued a "going concern" qualification in its report dated Nov. 1, 2024. The report cited that the Company has incurred a net loss of $30.1 million and cash used in operating activities was $5.6 million for the year ended June 30, 2024, and as of that date, the Company's current liabilities exceeded its current assets by $5.9 million and had an accumulated deficit of $122.1 million. In addition, the Company's subsidiary, S&W Australia, entered into voluntary administration on July 24, 2024, and is no longer under the Company's control. S&W Australia's entry into voluntary administration also resulted in an event of default under the Company's Amended CIBC Loan Agreement. On Aug. 5, 2024, the Company received a waiver for the event of default from CIBC, which contained conditions that are not within the Company's control. Effective Sept. 16, 2024, the Company was not in compliance with the amended terms per the Third Amendment of the Company's Amended CIBC Loan Agreement, which constitutes an additional event of default, and through the date of this report has not been able to regain compliance. These conditions and uncertainties as to whether the Company can mitigate the impact of the voluntary administration, along other matters, raise substantial doubt about the Company's ability to continue as a going concern. SALT LAKE CITY DISTILLERY: Seeks Chapter 11 Bankruptcy in Utah -------------------------------------------------------------- On July 10, 2025, Salt Lake City Distillery LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Utah. 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 Salt Lake City Distillery LLC Salt Lake City Distillery LLC, operating as Dented Brick Distillery, is a Utah-based craft spirits producer located in Salt Lake City. The company specializes in manufacturing alcoholic beverages, primarily focused on distilled spirits production. Salt Lake City Distillery LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Utah Case No. 25-23944) on July 10, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Peggy Hunt handles the case. The Debtors are represented by Steven M. Rogers, Esq. at Rogers & Russell. SALT LAKE: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: Salt Lake City Distillery LLC d/b/a Dented Brick Distillery f/d/b/a Mormon Tea Distillery 3100 S Washington Street Salt Lake City, UT 84115 Business Description: Salt Lake City Distillery LLC, DBA Dented Brick Distillery, produces a range of handcrafted spirits including vodka, gin, rum, whiskey, and tequila. Based in Salt Lake City, Utah, the distillery emphasizes quality production using proprietary artesian well water sourced from the Rocky Mountains. Chapter 11 Petition Date: July 10, 2025 Court: United States Bankruptcy Court District of Utah Case No.: 25-23944 Judge: Hon. Peggy Hunt Debtor's Counsel: Steven M. Rogers, Esq. ROGERS AND RUSSELL, PLLC 170 S Main St. Pleasant Grove, UT 84062 Tel: 801-899-6064 E-mail: srogers@roruss.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Marc Christensen as CEO/managing member. A list of the Debtor's 20 largest unsecured creditors was not provided alongside the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/HYFZCNQ/Salt_Lake_City_Distillery_LLC__utbke-25-23944__0001.0.pdf?mcid=tGE4TAMA SAUK PRAIRIE: Moody's Affirms 'Ba2' Rating on Revenue Bonds ----------------------------------------------------------- Moody's Ratings has affirmed the Ba2 rating assigned to Sauk Prairie Healthcare, Inc.'s (WI) (SPH) outstanding revenue bonds. The outlook is stable. SPH had approximately $51 million of debt outstanding at fiscal 2024. RATINGS RATIONALE The affirmation of the Ba2 is driven by SPH's strong market position across various specialties, supporting a favorable commercial payor mix. These strengths balance the risk of a smaller revenue base and competitive broader market. Management continues to pursue opportunities to further expand SPH's market reach in both primary and specialty care. Financial performance will improve from 2024 levels, impacted by a temporary payor mix shift and increased expenses. Longer-term operating cash flow (OCF) margin targets are in the 6%-8% range, which will support both capital growth and solid liquidity. Days cash on hand between 160-180 for 2025 is sufficient headroom to SPH's rolling 12-month 100 days cash covenant. Leverage will remain elevated as SPH recently obtained a $33 million line of credit for ongoing capital projects, with a minimal amount currently drawn. Still, leverage is currently sufficient for the rating category, with around 126% cash to debt and 5.7x debt to cash flow at fiscal 2024. RATING OUTLOOK The stable outlook reflects SPH's budgeted OCF margin recovery to the mid- to high single digits enabling maintenance of good liquidity (around 160-180 days cash on hand for fiscal 2025). FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING -- Durably strengthened operating performance with OCF margins sustained at high single to low double digits -- Improved operating leverage including debt to revenue approaching 30% -- Absolute liquidity growth with cash to debt above 150% which would help mitigate the system's smaller scale -- Increased market reach and capacity supporting continued revenue growth FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING -- OCF margins sustained at low single digits and/or reduced headroom to 100 days cash covenant -- Significant increase in debt leading to weaker leverage, including debt to cash flow sustained above 6x -- Adverse change in market dynamics materially weakening patient volumes or payor mix PROFILE SPH is a 36 staffed bed hospital located in the Village of Prairie du Sac, WI. Prairie du Sac is located approximately 27 miles northwest of downtown Madison. While SPH competes with the three health systems based in Madison, the hospital also maintains referral partnerships with all three Madison providers and contracts with each of their respective provider-owned health plans. METHODOLOGY The principal methodology used in this rating was Not-for-profit Healthcare published in October 2024. SCILEX HOLDING: Defers Preferred Dividend Record Date ----------------------------------------------------- Scilex Holding Company announced that its Board of Directors has approved a deferral of the previously announced record date of May 2, 2025 for the Company's previously announced dividend of Scilex preferred stock to its stockholders and certain other securityholders of Scilex. The new record date for the Dividend will be such later date to be determined in the sole discretion of the Board (such later record date as so determined by the Board, the "New Record Date"). The Board retains the right to continue to change any New Record Date (and therefore any related payment date for the Dividend) and the ability to revoke the Dividend. About Scilex Holding Company Palo Alto, Calif.-based Scilex Holding Company -- www.scilexholding.com -- is an innovative revenue-generating company focused on acquiring, developing and commercializing non-opioid pain management products for the treatment of acute and chronic pain and, following the formation of its proposed joint venture with IPMC Company, neurodegenerative and cardiometabolic disease. Scilex targets indications with high unmet needs and large market opportunities with non-opioid therapies for the treatment of patients with acute and chronic pain and is dedicated to advancing and improving patient outcomes. Scilex's commercial products include: (i) ZTlido (lidocaine topical system) 1.8%, a prescription lidocaine topical product approved by the U.S. Food and Drug Administration for the relief of neuropathic pain associated with postherpetic neuralgia, which is a form of post-shingles nerve pain; (ii) ELYXYB, a potential first-line treatment and the only FDA-approved, ready-to-use oral solution for the acute treatment of migraine, with or without aura, in adults; and (iii) Gloperba, the first and only liquid oral version of the anti-gout medicine colchicine indicated for the prophylaxis of painful gout flares in adults. In its report dated March 31, 2025, the Company's auditor, BMP LLP, issued a "going concern" qualification, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. As of Dec. 31, 2024, Scilex Holding had $92.95 million in total assets, $285.59 million in total liabilities, and a total stockholders' deficit of $192.64 million. SCILEX HOLDING: Elects 2 Directors at 2025 Meeting -------------------------------------------------- Scilex Holding Company reconvened its 2025 Annual Meeting of Stockholders. At the Meeting, a total of: (i) 29,057,097 shares of the Company's Series A preferred stock, $0.0001 par value per share, or 100% of the 29,057,097 shares of Series A Preferred Stock, issued and outstanding, and (ii) 4,678,182 shares of the Company's common stock, $0.0001 par value per share, or approximately 67.3% of the 6,951,622 shares of Common Stock, issued and outstanding, both as of the close of business on May 15, 2025, the record date for the Meeting, were represented virtually or by proxy. The holder of Series A Preferred Stock was entitled to vote, together with the holders of Common Stock and not separately as a class, on an as converted to Common Stock basis for an aggregate of 922,447 votes as a result of the adjustments to the deemed conversion price of such preferred stock in accordance with the Certificate of Designations of Series A Preferred Stock, filed with the Delaware Secretary of State on November 10, 2022. At the Meeting, the Company's stockholders considered two proposals, each of which is described in more detail in the Company's definitive proxy statement filed with the Securities and Exchange Commission on May 16, 2025: Proposal No. 1: To elect the following nominees as Class III directors to serve until the Company's 2028 Annual Meeting of Stockholders. 1. Jaisim Shah * Votes For: 3,537,589 * Votes Withheld: 323,203 * Broker Non-Votes: 1,739,837 2. Henry Ji, Ph.D. * Votes For: 3,433,624 * Votes Withheld: 427,168 * Broker Non-Votes: 1,739,837 Proposal No. 2: To ratify the appointment of BPM LLP as the Company's independent registered public accounting firm for the Company's fiscal year ending December 31, 2025. * Votes For: 5,354,958 * Votes Against: 166,743 * Abstentions: 78,928 About Scilex Holding Company Palo Alto, Calif.-based Scilex Holding Company -- www.scilexholding.com -- is an innovative revenue-generating company focused on acquiring, developing and commercializing non-opioid pain management products for the treatment of acute and chronic pain and, following the formation of its proposed joint venture with IPMC Company, neurodegenerative and cardiometabolic disease. Scilex targets indications with high unmet needs and large market opportunities with non-opioid therapies for the treatment of patients with acute and chronic pain and is dedicated to advancing and improving patient outcomes. Scilex's commercial products include: (i) ZTlido (lidocaine topical system) 1.8%, a prescription lidocaine topical product approved by the U.S. Food and Drug Administration for the relief of neuropathic pain associated with postherpetic neuralgia, which is a form of post-shingles nerve pain; (ii) ELYXYB, a potential first-line treatment and the only FDA-approved, ready-to-use oral solution for the acute treatment of migraine, with or without aura, in adults; and (iii) Gloperba, the first and only liquid oral version of the anti-gout medicine colchicine indicated for the prophylaxis of painful gout flares in adults. In its report dated March 31, 2025, the Company's auditor, BMP LLP, issued a "going concern" qualification, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. As of Dec. 31, 2024, Scilex Holding had $92.95 million in total assets, $285.59 million in total liabilities, and a total stockholders' deficit of $192.64 million. SEABIRDS KITCHEN: Unsecureds Will Get 13% Dividend in Plan ---------------------------------------------------------- Seabirds Kitchen, LLC, filed with the U.S. Bankruptcy Court for the Central District of California a First Amended Plan of Reorganization dated June 20, 2025. The Debtor opened its doors in Costa Mesa on October 10, 2013, after operating as a food truck for three years prior. Seabirds is a vegan restaurant that prides itself on using quality and clean ingredients, local produce and no heavily processed food or ingredients. The company ran into financial problems because of the Covid 19 pandemic. Prior to the pandemic, and based on the excellent performance of the Costa Mesa location, the company decided to expand after ownership was approached by South Coast Plaza to open a store in their mall and by Starbucks to open a store in Los Feliz next to one of their flagship Star R concepts. It is anticipated that the Effective Date of the Plan will be in August 2025 making September 2025 the first month of the Plan. The term of the Plan is 40 months. The Plan payments will be funded from income from business operations. Class 3 consists of General Unsecured Creditors. The pool of unsecured creditors will share, pro rata, in that portion of the total Plan payments that are not necessary to pay administrative claims, priority claims and the fees and costs of administering the Plan which would include the Disbursing Agent's fees and costs, if any. All general unsecured creditor claims are impaired and were entitled to vote to accept or reject the Plan, and each general unsecured creditor received a ballot with their copy of the original Plan. The Plan will pay a 13% dividend to unsecured creditors with allowed claims. 23% of the company's membership interests are owned by 6 individuals. The remaining 77% is owned by Seabirds Truck, Inc. Stephanie Morgan owns 75% of Seabirds Truck, Inc. William Denton owns the remaining 25%. The order of distribution of Plan payments is as follows: * The Monthly Payments, less any amounts owed to the Disbursing Agent, shall first be applied to payment in full of all Court approved administrative claims. * Next, the Monthly Payments, less any amounts owed to the Disbursing Agent, shall be applied to payment in full of all priority tax claims. * After the payment in full of all administrative and priority tax claims, the remaining payments which will be made biennially, less any amounts owed to the Disbursing Agent, shall be paid, pro rata, to each allowed unsecured creditor claim. The Plan is for 40 months. The monthly average projected disposable income is $2511.11, or $100,444.40 over the 40-month term of the Plan Debtor, however, proposes paying $136,127.68 in order to provide a dividend to general unsecured creditors with allowed claims of $.13 cents on the dollar. A full-text copy of the First Amended Plan dated June 20, 2025 is available at https://urlcurt.com/u?l=4eNxMC from PacerMonitor.com at no charge. Counsel to the Debtor: Steven E. Cowen, Esq. S. E. Cowen Law 333 H Street, 5th Floor Chula Vista, CA 91910 Telephone: (619) 202Ã¢â‚¬â€œ7511 Facsimile: (619) 233Ã¢â‚¬â€œ3327 Email: Cowen.steve@secowenlaw.com About Seabirds Kitchen Seabirds Kitchen, LLC, is a vegan restaurant that prides itself on using quality and clean ingredients, local produce and no heavily processed food or ingredients. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10460) on Feb. 24, 2025, with $50,001 to $100,000 in assets and $500,001 to $1 million in liabilities. Arturo Cisneros serves as Subchapter V trustee. Judge Scott C. Clarkson presides over the case. The Debtor is represented by Steven E. Cowen, Esq. at S.E. Cowen Law. SERENADE NEWPORT: Seeks Chapter 11 Bankruptcy in California ----------------------------------------------------------- On July 11, 2025, Serenade Newport LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Serenade Newport LLC Serenade Newport LLC is a single-asset real estate company with property located at 1501 Serenade Terrace in Corona Del Mar, California. Serenade Newport LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11898) on July 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Mark D. Houle handles the case. The Debtors are represented by Robert P. Goe, Esq. at Goe Forsythe & Hodges LLP. SGH LLC: S&P Places 'CCC+' Long-Term ICR on CreditWatch Positive ---------------------------------------------------------------- S&P Global Ratings placed its 'CCC+' long-term issuer credit rating on SGH LLC on CreditWatch with positive implications and assigned its preliminary 'B-' rating to the proposed term loan instruments. The CreditWatch placement indicates that S&P would upgrade SGH LLC by one notch to 'B-' if the refinancing is successful and on terms that are commensurate with our base case. S&P Global Ratings believes SGH LLC's tailored shipbuilding capabilities and constrained market capacity reinforce its ability to deliver premium experiences, and the planned delivery of six new ships between 2025 and 2028 will enhance growth prospects. The CreditWatch placement reflects SGH LLC's solid position in the European market for luxury river and ocean cruises. SGH LLC differentiates itself from competitors by typically accommodating 100 to 300 passengers--significantly smaller than those of larger peers--on its fleet of less than 40 ships. This approach supports a more personalized offering that appeals to high-net-worth individuals, particularly in the ocean-going 5-star segment, which we view as less sensitive to economic cycles. The company benefits from a long booking window, with ticket sales typically starting about 18 months before the sail date, in line with industry practice, providing revenue and cash flow visibility. It also enjoys a high proportion of repeat customers and maintains a relatively young fleet, with ocean vessels averaging less than three years in age and river vessels less than eight years in age. S&P's rating is constrained by the company's niche focus, the capital intensity and execution risk inherent in shipbuilding, and its exposure to geopolitical and currency risks, all of which have previously contributed to performance volatility. While SGH LLC's focus on English-speaking markets limits broader customer diversification, the ongoing investment in new vessels involves significant capital outlays. Additionally, foreign exchange fluctuations may affect profitability. Geopolitical tensions, such as the Russia-Ukraine conflict, had some negative effects on bookings of Danube river cruises, and a previous cyberattack exposed operational vulnerabilities. Governance risks persist due to the controlling shareholder's dual role as CEO and chairman, which constrains board independence. The company is also exposed to sector-specific risks such as seasonality, fuel price volatility, and evolving environmental regulations. SGH LLC plans to raise a EUR660 million TLB and a EUR90 million super senior RCF maturing in 2030 to refinance its existing capital structure and to extend debt maturities. The proposed TLB includes U.S. dollar and euro tranches and matures in 2032. The proceeds will be used to repay its outstanding facilities of EUR95 million from BP/BH maturing in 2026, its TLB of EUR350 million maturing in 2027, and its amortizing facility of EUR96 million from KfW maturing in 2035. S&P understands that its facility of EUR37 million maturing in 2028 from P Capital Partners will be repaid in 2026 with cash that will be held in escrow upon closure of the proposed transaction. The company plans to build the new luxury ocean-going vessel between 2025 and 2028 at a total cost of approximately EUR250 million. About 80% (EUR200 million) of this amount will be financed through a dedicated debt facility, with drawdowns occurring over time in line with the shipbuilding progress. Other vessels under the company's business plan are expected to be cash funded, making the new vessel the only ship financed with debt. In addition, SGH LLC expects to apply part of the proceeds to finance the acquisition of a cruise liner, which it currently operates under a lease agreement, for about EUR50 million, which would reduce the group's lease liabilities by about EUR47 million. After the refinancing, SGH LLC's capital structure will include a EUR660 million TLB, EUR90 million of undrawn RCF funds (largely used for guarantees of approximately EUR40 million), the new luxury ocean-going vessel debt facility of up to EUR200 million that will gradually increase in line with the shipbuilding progress, and EUR16 million of outstanding payment-in-kind (PIK) debt. S&P said, "We forecast SGH LLC's revenue and profitability will grow further in 2025 driven by favorable booking momentum, following solid operating performing and improved credit metrics in 2024. Revenue was EUR576 million in 2024, up by 20% year over year and in line with our expectations. Revenue growth was primarily driven by higher occupancy rates and higher capacity. We forecast revenue will grow further to EUR706 million in 2025. The S&P Global Ratings-adjusted EBITDA margin improved to 16.4% in 2024 from 7.3% in 2023. As a result, S&P Global Ratings-adjusted debt to EBITDA reduced to 9.9x in 2024 from 20.0x in 2023. S&P Global Ratings-adjusted debt to EBITDA is higher than the company's adjusted figure because we classify one-off costs and foreign exchange losses as expenses and include guarantees, leases, and subordinated debt in our adjusted debt figure. This translates to an increase in the adjusted EBITDA margin to 25%-30% for 2025-2027, driven by continued increases in occupancy and the amount of sailing days. We understand that as of beginning of July 2025, 96% of the budget was already booked. Furthermore, as EBITDA continues to grow, we project debt to EBITDA will further decrease to 5.9x in 2025. The company's revised guidance already incorporates the negative impact from the weaker U.S. dollar since the second quarter of 2025. Management currently does not expect further significant depreciation; however, we note that exchange rate movements remain uncertain and could have a material influence on the company's profits, presenting opportunities and risks. "We expect SGH LLC's high capital expenditure (capex) will continue to constrain cash flow generation. The company plans to accelerate capex to build six new vessels through 2028. Most of the ships will be funded with the company's own cash flow generation, apart from the new largely debt-funded vessel that is the largest contributor to capex, costing EUR250 million. We forecast free operating cash flow (FOCF) after leases, including expansion capex, to be about negative EUR28 million in 2025, following FOCF of positive EUR30 million in 2024. We forecast that peak capex in 2026 will translate into negative FOCF after leases of EUR44 million that year. We note that SGH LLC should receive export credit agency funding for the new luxury ocean-going vessel of EUR32 million in 2025 and EUR45 million in 2026, which partly mitigates liquidity risk. We expect FOCF after leases to turn positive in 2027, as capex reduces and the new vessels progressively contribute to earnings. "The positive CreditWatch placement reflects our view that SGH LLC's successful refinancing of its TLB and RCF will improve its capital structure by extending maturities and would lead us to raise the issuer credit rating by one notch to 'B-'. "We aim to resolve the CreditWatch placement when the refinancing is complete and we have reviewed the final terms of the transaction and the final debt documentation. We will also withdraw our ratings on the existing debt once the refinancing transaction is complete. "We would affirm the 'CCC+' rating on SGH LLC if the company does not successfully refinance its debt maturities as intended." SHARPLINK GAMING: Commences Options Trading on Nasdaq ----------------------------------------------------- SharpLink Gaming, Inc., the largest publicly traded holder of ETH in the world, announced that the Company's common stock has been approved for options trading on the Nasdaq Options Market. Trading in SharpLink's options commenced on June 18, 2025 under the ticker symbol "SBET" and include a range of standard expiration dates and strike prices. This listing of options is expected to expand investor access and may enhance liquidity in the Company's shares, providing investors with added flexibility to manage risk, leverage positions and express views on the Company's future stock performance. SharpLink believes this milestone reflects continued growth in investor interest and confidence in the Company's long-term strategic outlook. "We view this approval as a significant achievement that underscores our evolving profile as a trusted Nasdaq-listed company," stated Rob Phythian, CEO of SharpLink Gaming. "Moreover, we believe the commencement of options trading will enhance our visibility within the investment community, at large, and provide our shareholders with additional tools for managing their investments." Options trading on SharpLink will be available through the Options Clearing Corporation, and will be subject to standard rules and regulations established by Nasdaq and the OCC. About SharpLink Gaming SharpLink Gaming, Inc., operates as a marketing partner to sportsbooks and online casino gaming operators globally. SharpLink Gaming operates as a marketing partner to sportsbooks and online casino gaming operators globally. Based in Minneapolis, Minnesota, the Company operates PAS.net, an affiliate marketing network that facilitates player acquisition and engagement for regulated iGaming operators. It also manages a portfolio of state-specific affiliate websites targeting local sports betting and online casino audiences. It also manages a portfolio of state-specific affiliate websites targeting local sports betting and online casino audiences. Cherry Bekaert LLP, the Company's auditor since 2022, included a "going concern" qualification in its audit report dated March 14, 2025, for the fiscal year ended December 31, 2024. The firm cited recurring losses and negative operating cash flows as factors that raise substantial doubt about the Company's ability to continue operating. The Company has a track record of net losses and noted that it may be unable to achieve or sustain profitability going forward. The Company experienced net income of $10,099,619 for the year ending Dec. 31, 2024, compared to a net loss of $14,243,182 for the years ended Dec. 31, 2023. As of Dec. 31, 2024, the Company had an accumulated deficit of $(77,808,959). SHARPLINK GAMING: Grows ETH Treasury, Raises $27.7M via ATM ----------------------------------------------------------- SharpLink Gaming, Inc., the largest publicly traded holder of Ethereum in the world, announced that the Company has strategically increased its total holdings of ETH to 188,478 ETH, acquiring an additional 12,207 ETH for $30,674,829 (inclusive of fees and expenses) at an average price of $2,513 per ETH (inclusive of fees and expenses) during the period June 16, 2025 through June 20, 2025. In addition, during that same period SharpLink raised approximately $27.7 million in net proceeds through its At-The-Market facility selling 2,547,180 shares of the Company's common stock. A majority of the ATM proceeds from these sales will be used to further increase SharpLink's ETH treasury holdings. As of June 20, 2025, 100% of SharpLink's ETH holdings have been deployed in staking solutions, generating 120 ETH rewards since the Company launched its ETH-focused treasury strategy on June 2, 2025. Since that date, SharpLink has achieved ETH per share growth of 18.97%. "Increasing SharpLink's ETH holdings underscores our forward-thinking approach to creating long-term value for our stockholders," said Joseph Lubin, Chairman of the Board of SharpLink, Co-Founder of Ethereum and Co-Founder and CEO of Consensys. "As digital assets like ETH increasingly shape the future of finance and technology, we're positioning SharpLink at the intersection of blockchain advancement and next-generation iGaming engagement. This move reflects our confidence in Ethereum's utility and our commitment to exploring transformative technologies that can unlock new value for our business and stockholders, alike." Continuing, Rob Phythian, SharpLink's Chief Executive Officer, added, "SharpLink remains committed to leveraging blockchain technologies to strengthen our treasury foundation and strategic growth trajectory. As adoption of decentralized infrastructure accelerates, the Company intends to regularly update its stockholders on its digital asset strategy and broader growth initiatives." About SharpLink Gaming SharpLink Gaming, Inc., operates as a marketing partner to sportsbooks and online casino gaming operators globally. SharpLink Gaming operates as a marketing partner to sportsbooks and online casino gaming operators globally. Based in Minneapolis, Minnesota, the Company operates PAS.net, an affiliate marketing network that facilitates player acquisition and engagement for regulated iGaming operators. It also manages a portfolio of state-specific affiliate websites targeting local sports betting and online casino audiences. It also manages a portfolio of state-specific affiliate websites targeting local sports betting and online casino audiences. Cherry Bekaert LLP, the Company's auditor since 2022, included a "going concern" qualification in its audit report dated March 14, 2025, for the fiscal year ended December 31, 2024. The firm cited recurring losses and negative operating cash flows as factors that raise substantial doubt about the Company's ability to continue operating. The Company has a track record of net losses and noted that it may be unable to achieve or sustain profitability going forward. The Company experienced net income of $10,099,619 for the year ending Dec. 31, 2024, compared to a net loss of $14,243,182 for the years ended Dec. 31, 2023. As of Dec. 31, 2024, the Company had an accumulated deficit of $(77,808,959). SHENTON AIRCRAFT I: Fitch Affirms 'B-sf' Rating on Class C Notes ---------------------------------------------------------------- Fitch Ratings has affirmed the ratings of Shenton Aircraft Investment I Ltd. (Shenton) and Silver Aircraft Lease Investment Limited (Silver) for all classes of notes. The Rating Outlooks remain Stable. Entity/Debt Rating Prior ----------- ------ ----- Shenton Aircraft Investment I Ltd. Series 2015-1A 82321UAA1 LT Asf Affirmed Asf Series 2015-1B 82321UAB9 LT BBBsf Affirmed BBBsf Silver Aircraft Lease Investment Limited A 827304AA4 LT A-sf Affirmed A-sf B 827304AB2 LT BBsf Affirmed BBsf C 827304AC0 LT B-sf Affirmed B-sf Transaction Summary The ratings reflect current transaction performance, Fitch's cash flow projections, and its expectation for the structures to withstand rating-specific stresses under Fitch's criteria and cash flow modeling. Lease terms, lessee credit quality and performance, updated aircraft values, and Fitch's assumptions and stresses all inform the agency's modeled cash flows and coverage levels. Shenton and Silver's rental collections and principal payments on the notes over the past 12 months were lower than in the prior 12 months. Reduced rent and utilization rent collections, as well as cash being used to build up the maintenance reserve account, resulted in less cash going to principal payments on the A notes for both transactions. The rental cash flows in the transactions were in line with Fitch's projections. The number of aircraft in each transaction has not changed, although there were some changes in lessees and contractual rent over the past year. Lessee delinquencies occurred in both transactions, and the aggregate past due amounts have increased since the prior review. The series A and B notes in both transactions continue to receive timely interest. The Shenton A and B notes and the Silver A notes have been receiving principal. The Silver B notes have not been receiving principal. The Silver C notes have not received interest or principal since 2020. The interest has been capitalized. Overall Market Recovery Demand for air travel continues to grow, albeit at a slower pace. May YTD 2025 global passenger traffic measured in revenue passenger kilometers (RPK) was up 5.8% compared to 2024, per IATA. International traffic led the way with 8.1% YTD RPK growth; domestic traffic grew at 2.1% YTD. Growth rates vary across geographies, with Asia-Pacific and Europe continuing to lead the overall growth in traffic. North American passenger traffic, however, had no growth as of May YTD 2025 versus 2024. Aircraft Collateral and Asset Values Aircraft ABS transaction servicers are reporting continued strong demand for aircraft, particularly those with maintenance green time remaining. In addition, appraiser market values are currently higher than base values for many aircraft types, which has not occurred for several years. Fitch is also seeing continued strong aircraft sale proceeds. Engines with maintenance green time remaining are particularly in demand. Macro Risks Although Fitch has not yet observed deterioration in aircraft ABS transaction performance, its sector outlook has recently been updated from 'neutral' to 'deteriorating.' This change is due to expectations of a slowdown in the growth rate of global air travel, aligning with Fitch's forecast for a slowdown in global GDP in 2025 and 2026. Global air travel is highly correlated to global GDP. Fitch also expects a greater degree of divergence in performance across several categories including domestic versus international travel, geographic footprint, lessee credit strength, and aircraft type and age. Contractions in certain domestic markets have been observed through May 2025. Fitch notes that in the current environment, there is significant uncertainty about how trade relations and conflicts will be resolved. Conclusive resolutions to tariff conflicts, for example, may prompt Fitch to reevaluate its sector outlook. Despite an anticipated slowdown in the growth rate of air travel, Fitch expects aircraft values will remain supported by the under-supply of aircraft as impacted by continued impediments to the construction and delivery of new aircraft, and ongoing engine shop capacity issues that reduce total capacity. Fitch expects these supply-side constraints to mitigate the impact of demand reductions. ABS performance may be impacted by deteriorating credit quality of airline lessees, and despite generally benefiting from longer-term fixed rental leases and staggered lease expiries, given sufficient financial headwinds, some airlines may seek payment relief in the form of restructures which could reduce cash flows to ABS. Fitch expects securitizations with younger to mid-life aircraft and with adequate lessee quality and diversification to be better positioned to withstand potential pressures on cash flows needed to meet debt service. KEY RATING DRIVERS The Fitch Value for the Shenton and Silver pools are $320MM and $379MM, respectively, a decrease of $17MM (5.2%) and $18MM (4.6%), respectively, over the last 12 months. Fitch used the most recent appraisals as of December 2024, and applied depreciation and market value decline assumptions pursuant to its criteria. Fitch Values are generally derived from base values unless the remaining leasable life is less than three years in which case a market value is used. Fitch then uses the lesser of mean and median of the given value. Using the Fitch Value, the changes in loan to values (LTVs) since Fitch's prior review are as follows: - Shenton: A note 68.9% to 65.4% and B note 76.0% to 72.2%; - Silver: A note 74.6% to 73.4%, B note 91.9% to 91.6%, and C note 101.3% to 102.2%. Shenton and Silver's mean maintenance-adjusted base values (MABV) (depreciated from the appraisal effective date to June 2025) are $303MM and $408MM, respectively. Tiered Collateral Quality: The Shenton pool consists of 12 narrowbody (NB) aircraft and three widebody (WB) aircraft with the majority characterized as mid-life aircraft (weighted-average [WA] age of 12.9 years). The Silver pool consists of 14 NB aircraft and two WB aircraft with the majority characterized as mid-life aircraft (WA age of 11.9 years). Fitch utilizes three tiers when assessing the desirability and liquidity of aircraft collateral: tier one which is the most liquid, and tier three which is the least liquid. Additional details regarding Fitch's tiering methodology can be found here. As aircraft age, Fitch's aircraft tiering migrates; the weighted average tier for Shenton and Silver's portfolio is 1.67 and 1.53, respectively, reflecting the desirability of these aircraft. Pool Concentration: The Shenton and Silver pool has acceptable concentration with 15 aircraft to 12 lessees and 16 aircraft to 11 lessees, respectively. As the pool ages and Fitch models aircraft being sold at the end of their leasable lives (generally 20 years), pool concentration will increase. Pursuant to Fitch's criteria, Fitch further stresses cash flows based on the effective aircraft count. Concentration haircuts vary by rating level and are applied at stresses higher than 'CCCsf'. Shenton is concentrated across regions with 45% exposure to emerging Asia-Pacific, 27% to developed Europe, 11% to developing Asia-Pacific, 6% to developed North America, and 5% to emerging South and Central America. Silver is similarly concentrated across regions with 51% exposure to emerging Asia-Pacific, 33% to the Middle East and Africa, and 15% to developing North America. Lessee Credit Risk: Fitch considers the credit risk posed by the pools of lessees to be moderate as there are reported delinquencies in the pools. The portfolio composition by lessee credit rating has not materially changed since last review for Shenton and Silver. Operation and Servicing Risk: Fitch has found BOC Aviation to be an effective servicer based on its experience as a lessor, overall servicing capabilities and historical ABS performance to date. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - An increase in delinquencies, lower lease rates, or sales of aircraft below Fitch's projections could lead to a downgrade; - The aircraft ABS sector has a rating cap of 'Asf'. All subordinate tranches carry ratings lower than the senior tranche; - Fitch ran a sensitivity with concurrent down sensitivities which included assuming all future lessees are rated 'CCC' and starting aircraft values are 10% lower. This scenario results in a zero- to two-notch decrease in the model implied ratings; - Fitch ran a sensitivity for the Silver transaction in which it excluded the appraiser with the highest appraised value before calculating the Fitch Value. This scenario results in reducing the Fitch Value by $13MM and a zero- to one-notch decrease in the model implied ratings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - If contractual lease rates outperform modeled cash flows or lessee credit quality improves materially, this may lead to an upgrade. Similarly, if assets in the pool display higher values and stronger rent generation than Fitch's stressed scenarios this may also lead to an upgrade; - Fitch ran a sensitivity related to the lessee credit quality in both the Shenton and Silver pools. Fitch assigns a credit rating of 'CCC' or lower to more than half of lessees in the pools. The sensitivity assumes all current lessees are rated 'B' or at their current rating if higher than 'B', and that all future lessees are rated 'B.' This scenario results in a zero- to one-notch increase in the model implied ratings; - Fitch also considers jurisdictional concentrations per its "Structured Finance and Covered Bonds Country Risk Rating Criteria," which could result in rating caps lower than 'Asf'. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. 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. SHERMAN/GRAYSON: PCO Reports No Change in Patient Care Quality -------------------------------------------------------------- Daniel McMurray, the court-appointed patient care ombudsman, filed his 10th report regarding the quality of patient care provided by Sherman/Grayson Hospital, LLC. The report covers the period from April 25 to June 23. The Ombudsman conducted a facility visit from June 17 to 19, at Wilson N. Jones Regional Medical Center to review the current operational status of the Hospital and its programs. In connection with or in addition to the site visit, the Ombudsman conducted interviews with staff and reviewed various materials to maintain a current understanding of the issues and challenges impacting the operations and potentially the quality of care delivered, including matters and issues presented in the bankruptcy process and/or noted in the public domain. The Ombudsman has continued to monitor operations and the quality of care provided to those served by the Hospital. During this reporting period, the Hospital's operations remained open and functional, and the Hospital continues to provide services to patients and the communities which the Hospital has served. Mr. McMurray cited some evidence of deferred maintenance. The facility continues to be well maintained and both neat and clean. The Ombudsman identified no inappropriate storage or neglected areas. The Ombudsman was informed that certain plant operations issues have been identified within the cooling and heating systems, emergency generator system and elevator system. These are being addressed. The Ombudsman found that after careful review, it appears that, notwithstanding the continuing number of significant challenges experienced during this reporting period, the care provided by the Hospital has thus far been meeting or exceeding the standards for quality, as reflected in the most recent quarterly HCAHPS scores, volume improvements and patient and staff interviews. The Ombudsman discovered no deterioration in quality as a result of the bankruptcy or other circumstances. Minor suggestions made by the Ombudsman during the review process were addressed and resolved. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=o5Knwg from PacerMonitor.com. About Sherman/Grayson Hospital Sherman/Grayson Hospital, LLC is the operator of Wilson N. Jones Regional Medical Center, a 207-bed acute care hospital in Sherman, Texas. Sherman/Grayson Hospital sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 23-10810) on June 23, 2023, with $1 million to $10 million in assets and $50 million to $100 million in liabilities. Judge J. Kate Stickles oversees the case. Leonard M. Shulman, Esq., at Shulman Bastian Friedman & Bui, LLP and Rosner Law Group, LLC serve as the Debtor's bankruptcy counsel and Delaware counsel, respectively. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. The committee tapped Potter Anderson & Corroon, LLP and RK Consultants, LLC as legal counsel and financial advisor. Daniel T. McMurray is the patient care ombudsman appointed in the Debtor's Chapter 11 case. SHILO INN BEND: Gets Extension to Access Cash Collateral -------------------------------------------------------- Shilo Inn, Bend, LLC and Shilo Inn, Warrenton, LLC received another extension from the U.S. Bankruptcy Court for the Western District of Washington to use cash collateral. The court's 13th interim order authorized the Debtors to use cash collateral to pay the expenses set forth in their budget for the period from July 3 until its interim order ceases to be in full force and effect or until the occurrence of so-called termination events (e.g. August 31). Secured creditors, RSS WFCM2015NXS4-OR SIB, LLC and RSS WFCM2016NXS5-OR SIW, LLC, will be granted a first priority post-petition security interest in and lien on all of the Debtors' assets, with the same priority, validity and extent as their pre-bankruptcy security interest and lien. As additional protection, RSS WFCM2015NXS4-OR SIB will receive $43,425.26 per month from Shilo Inn, Bend while RSS WFCM2016NXS5-OR SIW will receive $22,561.95 per month from Shilo Inn, Warrenton. Both creditors will receive monthly payments until August. The next hearing is set for August 28. A copy of the Debtor's budget is available at https://shorturl.at/lXEOE from PacerMonitor.com. About Shilo Inn, Bend, and Shilo Inn, Warrenton Shilo Inn, an independently owned and operated hospitality company with locations in seven western states and Texas, operate Shilo Inn, Bend, LLC and Shilo Inn, Warrenton, LLC in Oregon. On August 13, 2021, the companies contemporaneously filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Western District of Washington. The cases are jointly administered under Shilo Inn, Bend, LLC's case (Bankr. W.D. Lead Case No. 21-41340). Judge Mary Jo Heston presides over the cases. On the petition date, Shilo Inn, Bend estimated $10 million to $50 million in both assets and liabilities while Shilo Inn, Warrenton estimated $1 million to $10 million in both assets and liabilities. The petitions were signed by Mark Hemstreet as secretary of Shilo Bend Corp., the Debtors' manager. Levene, Neale, Bender, Yoo & Brill, LLP and Stoel Rives, LLP serve as the Debtors' general bankruptcy counsel and local counsel, respectively. SILVERROCK DEVELOPMENT: Seeks to Sell La Quinta Property at Auction ------------------------------------------------------------------- SilverRock Development Company LLC and its affiliates, seek permission from the U.S. Bankruptcy Court for the District of Delaware, to sell substantially all Assets at auction, free and clear of liens, claims, and encumbrances. The Debtor is a San Diego, Calif.-based company primarily engaged in renting and leasing real estate properties. The Debtors' business operations center around the real estate development of a 525-acre master planned resort community in the City of La Quinta, California. Formerly known as the "SilverRock Resort" project, the Debtors proposed, and the City agreed, to change the name of the project to "Talus." To date, the Debtors have acquired from the City and currently own approximately 140 acres of land in the Project. The Debtors and their real estate broker and advisor, Jones Lang LaSalle Americas, Inc., have prepared for and conducted a robust marketing process for the sale of the Debtors' real property, consisting of approximately 134+- acres located in the City of La Quinta, County of Riverside, California and certain personal property located thereon and owned by the Debtors to a buyer with the financial capability and development competence to finish construction and development of the Project. In connection with the sale process, the Court entered an order (Bid Procedures Order) on March 13, 2025. The Bid Procedures Order approved, among other things, certain procedures to govern the sale of all or substantially all of the Debtors' Assets. The Debtors, in consultation with certain Consultation Parties and the City, were authorized to select a stalking horse bidder, provide such stalking horse bidder with bid protections, and enter into an agreement with respect to such stalking horse bidder's bid. The Debtors' marketing efforts involved outreach to at least 7,294 potential buyers, with more than sixty of such parties executing non-disclosure agreements and obtaining access to the Debtors' virtual data room for the sale process. Of these parties, five potential bidders executed letters of intent indicating a willingness to serve as a stalking horse bidder in the Debtors' sales process (Stalking Horse LOI). After reviewing the Stalking Horse LOIs received, the Debtors, in consultation with the Consultation Parties and the City, selected TBE RE Acquisition Co II LLC as the proposed stalking horse bidder (Stalking Horse Bidder) for the Assets on June 5, 2025. In the weeks that followed selection of the Stalking Horse Bidder, the Debtors and JLL worked with the City to review materials and development proposals submitted by various parties that did not submit Stalking Horse LOIs, but that indicated their desire to remain in the process as a qualified bidder. The Debtors, in consultation with the City and the Consultation Parties, ultimately determined to qualify three Qualified Bidders (in addition to the Stalking Horse Bidder). All Qualified Bidders, including the Stalking Horse Bidder, are required to negotiate and finalize Amended Development Documents with the City on or before July 29, 2025, submit a letter of intent to the Debtors on or before July 29, 2025, and provide their bid deposit of $5million (Bidder Requirements). The Debtors propose that only Qualified Bidders that have complied with the Bidder Requirements will be eligible to participate in the Auction. The Debtors respectfully request entry of the Proposed Order, authorizing the Debtors to conduct the Auction to sell the Assets. The Auction Procedures are designed to promote a competitive and timely sale process. As a result of the requirements related to the separate processes the City must undertake under California law, the Debtors will not select the Successful Bidder and the Next-Highest Bidder until after the La Quinta City Council has met on August 5, 2025 to review the Last and Final Bid from each Qualified Bidder participating in the Auction. The Debtors expect to file a notice of Successful Bidder and Next-Highest Bidder as soon as possible after August 5, 2025. About Silverrock Development Company LLC SilverRock Development Company, LLC, is a San Diego, Calif.-based company primarily engaged in renting and leasing real estate properties. SilverRock filed a Chapter 11 petition (Bankr. D. Del. Lead Case No. 24-11647) on Aug. 5, 2024, with $100 million to $500 million in both assets and liabilities. Robert S. Green, Jr., chief executive officer, signed the petition. Judge Mary F. Walrath handles the case. The Debtor is represented by Jonathan M. Stemerman, Esq., at Armstrong Teasdale. SMITH MICRO: Receives Nasdaq Deficiency Notice for Bid Price ------------------------------------------------------------ Smith Micro Software, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company received a letter from the Listing Qualifications Staff of The Nasdaq Stock Market indicating that as a result of the closing bid price of the Company's common stock for the 30 consecutive business days from June 23, 2025, having been below the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) the Company was not in compliance with the Minimum Bid Price Requirement. The Minimum Bid Price Notice has no immediate effect on the continued listing status of the Company's Common Stock on The Nasdaq Capital Market, and, therefore, the Company's listing remains fully effective. Pursuant to Nasdaq Marketplace Rule 5810(c)(3)(A), the Company has been provided an initial compliance period of 180 calendar days, or until December 22, 2025, to regain compliance with the Minimum Bid Price Requirement. If at any time before December 22, 2025, the closing bid price of the Common Stock is at least $1.00 per share for a minimum of ten consecutive business days, unless Nasdaq exercises its discretion to extend this ten-day period, Nasdaq will provide written confirmation stating that the Company has achieved compliance with the Minimum Bid Price Requirement. If the Company's Common Stock does not regain compliance with the Minimum Bid Price Requirement during this initial 180-day compliance period, the Company may be eligible for an additional compliance period of 180 calendar days provided that: (i) the Company satisfies Nasdaq's continued listing requirement for market value of publicly held shares and all other initial listing standards, other than the Minimum Bid Price Requirement; and (ii) the Company provides written notice to Nasdaq of its intention to cure the deficiency during the second grace period. The Company intends to monitor the closing bid price of its Common Stock and assess its available options in order to regain compliance with the Minimum Bid Price Requirement and continue listing on The Nasdaq Capital Market. There can be no assurance that the Company will regain compliance with the Minimum Bid Price Requirement or will otherwise be in compliance with the other Nasdaq listing requirements. About Smith Micro Software Pittsburgh, Pa.-based Smith Micro Software, Inc. develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless and cable service providers around the world. From enabling the family digital lifestyle to providing powerful voice messaging capabilities, the Company's solutions enrich today's connected lifestyles while creating new opportunities to engage consumers via smartphones and consumer IoT devices. The Smith Micro portfolio also includes a wide range of products for creating, sharing, and monetizing rich content, such as visual voice messaging, optimizing retail content display and performing analytics on any product set. As of Dec. 31, 2024, the Company had $48.05 million in total assets, $5.65 million in total current liabilities, $1.64 million in total non-current liabilities, and $40.76 million in total stockholders' equity. Los Angeles, California-based SingerLewak LLP, the Company's auditor since 2005, issued a "going concern" qualification in its report dated March 12, 2025, citing that the Company has suffered recurring losses from operations and has projected future cash flow requirements to meet continuing operations in excess of current available cash. This raises substantial doubt about the Company's ability to continue as a going concern. SOLEPLY LLC: Unsecureds Will Get 10% of Claims over 36 Months ------------------------------------------------------------- Soleply, LLC, filed with the U.S. Bankruptcy Court for the District of New Jersey a Subchapter V Plan of Reorganization dated June 20, 2025. The Debtor primarily operates retail stores selling high end, limited edition sneakers and streetwear. Soleply is a limited liability company formed under the laws of the State of New Jersey. Dustin Billow owns 51% of the membership interests and Thomas Yoder owns 49% of the membership interests. Soleply remains a profitable business, operating with a streamlined structure and a renewed focus on sustainability. The company continues to serve sneaker enthusiasts with a premium shopping experience, offering a carefully curated selection of rare sneakers and streetwear. However, the weight of outstanding debt and lease obligations from closed stores has made financial restructuring necessary. By filing for Subchapter V bankruptcy, Soleply seeks to discharge unmanageable lease obligations, restructure high-interest debts into more sustainable repayment terms, and emerge as a leaner, financially stable business capable of long-term success in the competitive sneaker market. The Plan provides for the full payment of administrative and priority claims. Allowed general unsecured creditors with allowed claims will be paid approximately 10% of their claims, to be paid on a quarterly basis over 36 months following confirmation of the Plan. Equity holders will receive no cash distribution but will continue to hold the equity of the Debtor in the same percentages as of the Petition Date. Class 3 consists of General Unsecured Claims. Allowed Claims are expected to be approximately $1,605,000. After payment of Class 1 claim, the total disposable income from 3-year projection is $175,000. Net recovery is approx. 10%. Net disposable income shall be paid on a quarterly basis, pro rata among allowed general unsecured claims. This Class is impaired. Class 4 consists of the members of the Debtor. The Class 4 interest holders shall receive no payments under the Plan and all existing shares will continue to be held by the respective members in the percentage of ownership that existed as of the Petition Date. The Plan will be funded by the proceeds realized from the continued operations of the Debtor. 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. On and after the Effective Date the Debtor's members shall consist of Dustin Billow and Thomas Yoder. Each member of the Debtor shall serve in accordance with applicable non-bankruptcy law and the Debtor's operating agreement and bylaws, as each of the same may be amended from time to time. A full-text copy of the Subchapter V Plan dated June 20, 2025 is available at https://urlcurt.com/u?l=y49xmp from PacerMonitor.com at no charge. Counsel to the Debtor: Ronald S. Gellert, Esq. Gellert Seitz Busenkell & Brown, LLC 1201 N. Orange St., Ste. 300 Wilmington, DE 19801 Telephone: (302) 425-5800 Facsimile: (302) 425-5814 Email: rgellert@gsbblaw.com About Soleply LLC Soleply, LLC is a retailer specializing in premium sneakers and streetwear, operates both online (soleply.com) and physical stores including its main location in Cherry Hill, N.J. The company sells a variety of branded footwear including Nike Dunks, Air Jordans, ASICS Gel-Kayano models, and adidas Yeezy products, along with high-end streetwear from brands like Fear of God Essentials, Denim Tears, and Bravest Studios. Soleply sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-12919) on March 21, 2025, listing between $1 million and $10 million in both assets and liabilities. Judge Andrew B. Altenburg, Jr. oversees the case. The Debtor is represented by Ronald S. Gellert, Esq., at Gellert Seitz Busenkell & Brown, LLC. SPHERE 3D: Registers 4.6M Shares Under 2025 Incentive Plan ---------------------------------------------------------- Sphere 3D Corp. filed a Registration Statement on Form S-8 with the U.S. Securities and Exchange Commission to register for issuance 4,596,408 Common Shares, consisting of: (i) 3,000,000 Common Shares that may be granted or issued under the Sphere 3D Corp. 2025 Performance Incentive Plan; (ii) 1,596,408 Common Shares that may be granted or issued under the 2025 Plan that were rolled over from the Sphere 3D Corp. 2015 Performance Incentive Plan; and (iii) such additional shares that may become issuable in accordance with the adjustment and anti-dilution provisions of the 2025 Plan. Full text copy of the Registration Statement: https://tinyurl.com/bdfpbvm9 About Sphere 3D Sphere 3D Corp. (Nasdaq: ANY) is a cryptocurrency miner, growing its industrial-scale digital asset mining operation through the capital-efficient procurement of next-generation mining equipment and partnering with best-in-class data center operators. Sphere 3D is dedicated to increasing shareholder value while honoring its commitment to strict environmental, social, and governance standards. For more information about the Company, please visit Sphere3D.com. In its report dated March 28, 2025, the Company's auditor MaloneBailey, LLP, issued a "going concern" qualification citing that the Company has suffered recurring losses from operations and does not expect to have sufficient cash on hand to fund its operations that raises substantial doubt about its ability to continue as a going concern. STOLI GROUP: Gets Extension to Access Cash Collateral ----------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas approved the seventh stipulation allowing Stoli Group (USA), LLC and Kentucky Owl, LLC to continue to use the cash collateral of Fifth Third Bank, National Association. The stipulation extended the Debtors' authority to use the lender's cash collateral to August 29 to pay the expenses set forth in their latest budget. The Debtors were ordered to make two $250,000 payments by July 25 and August 15 for the lender's professionals fees and expenses that accrued in May. The next hearing is set for July 16. As of the petition date, the Debtors' aggregate principal outstanding funded debt obligations total approximately $78,374,334.30. Fifth Third Bank holds valid, senior, perfected, and enforceable liens on the collateral, including cash proceeds and other cash equivalents, which constitute the lender's cash collateral. A copy of the court's order and the budget is available at https://shorturl.at/SaKwl from PacerMonitor.com. About Stoli Group (USA) LLC Stoli Group (USA), LLC is a producer, manager, and distributor of a global portfolio of spirits and wines. Stoli Group (USA) and Kentucky Owl, LLC filed Chapter 11 petitions (Bankr. N.D. Texas Lead Case No. 24-80146) on November 27, 2024. At the time of the filing, Stoli Group (USA) reported $100 million to $500 million in assets and $10 million to $50 million in liabilities while Kentucky Owl reported $50 million to $100 million in assets and $50,000,001 to $100 million in liabilities. Judge Scott W. Everett handles the cases. Holland N. O'Neil, Esq., at Foley & Lardner, LLP is the Debtor's legal counsel. Fifth Third Bank, N.A., as lender, is represented by: Brent McIlwain, Esq. Christopher A. Bailey, Esq. Holland & Knight, LLP 1722 Routh Street, Suite 1500 Dallas, TX 75201 Telephone: 214.969.1700 Email: brent.mcilwain@hklaw.com chris.bailey@hklaw.com -- and -- Jeremy M. Downs, Esq. Steven J. Wickman, Esq. Goldberg Kohn, Ltd. 55 East Monroe Street, Suite 3300 Chicago, IL 60603 Telephone: 312.201.4000 Email: jeremy.downs@goldbergkohn.com steven.wickman@goldbergkohn.com SUNNOVA ENERGY: Omnidian Sets $7M Stalking Horse Bid for ServiceCo ------------------------------------------------------------------ Sunnova Energy International Inc. announced on July 9, 2025, that it has entered into a stalking horse asset purchase agreement with Omnidian Inc., a leading provider of comprehensive protection and performance plans for residential and commercial solar and energy-storage assets. Pursuant to the ServiceCo Stalking Horse APA, Omnidian would purchase the Company's leading residential solar servicing and operations & maintenance platform for total consideration of $7 million in cash and the assumption of certain liabilities. Pursuant to the ServiceCo Stalking Horse APA, Omnidian would assume responsibility for customer service and system management obligations for a significant portion of Sunnova's in-service customers. The ServiceCo Stalking Horse APA represents a baseline value for ServiceCo assets and is part of the Company's broader strategy to maximize shareholder value through a sale transaction (or series of sale transactions) pursuant to section 363 of the Bankruptcy Code. Sunnova preserves the option to pursue the ServiceCo transaction on a standalone basis or as part of a combined transaction with a sale of its solar generation and storage portfolio, which includes approximately three gigawatts of power generation and is supported by embedded asset-backed securities financing. The ServiceCo Stalking Horse APA follows Sunnova's previously announced stalking horse bid from an ad hoc group of the Company's unsecured corporate noteholders for both the ServiceCo and AssetCo assets. Sunnova will continue to solicit bids through its court-supervised marketing process in order to obtain the highest or otherwise best offer for its assets, with a bid deadline on July 21, 2025. The ServiceCo Stalking Horse APA does not replace the WholeCo Stalking Horse APA and both agreements provide a foundation for an efficient and value-maximizing sale process. The designation of the stalking horse bidders is currently set to be heard before the United States Bankruptcy Court for the Southern District of Texas (the "Court") on July 11, 2025. Stakeholders can find additional information regarding the Company's chapter 11 process at https://www.sunnova.com/lp/financialrestructuring and at https://restructuring.ra.kroll.com/Sunnova. Stakeholders with questions can contact the Company's claims agent, Kroll, by calling (888) 975-5436 (U.S. and Canada toll free) or +1 (646) 930-4686 (International) or emailing SunnovaInfo@ra.kroll.com. About Sunnova Energy Sunnova Energy International Inc. (NYSE: NOVA) is an industry-leading adaptive energy services company focused on making clean energy more accessible, reliable, and affordable for homeowners and businesses. Through its adaptive energy platform, Sunnova provides a better energy service at a better price to deliver its mission of powering energy independence. Sunnova Energy sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90160) on June 8, 2025. In its petition, the Debto reports estimated assets and liabilities between $10 billion and $50 billion each. The Debtor is represented by Jason Gary Cohen, Esq. at Bracewell, LLP. SUNNOVA ENERGY: Special Committee Backs Loan Release to KKR ----------------------------------------------------------- Dorothy Ma of Bloomberg Law reports that a special committee at Sunnova Energy has concluded that granting KKR a release related to a loan issued shortly before the company's bankruptcy is in the best interest of the estate. "The benefits provided by the KKR release far outweigh any potential value to the debtors' estates from pursuing potential claims,' a committee member stated in court filings dated Friday, July 11, 2025, according to the report. In reaching its decision, the committee considered factors such as litigation risks, potential recovery value, and the costs associated with pursuing legal action, the report states. About Sunnova Energy Sunnova Energy International Inc. (NYSE: NOVA) is an industry-leading adaptive energy services company focused on making clean energy more accessible, reliable, and affordable for homeowners and businesses. Through its adaptive energy platform, Sunnova provides a better energy service at a better price to deliver its mission of powering energy independence. Sunnova Energy sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90160) on June 8, 2025. In its petition, the Debto reports estimated assets and liabilities between $10 billion and $50 billion each. The Debtor is represented by Jason Gary Cohen, Esq. at Bracewell, LLP. SYSOREX GOVERNMENT: Trustee Objects to Chapter 11 Counsel Pick -------------------------------------------------------------- Vince Sullivan of Law360 Bankruptcy Authority reports that on Thursday, July 10, 2025, the U.S. Trustee's Office objected to the appointment of Cullen and Dykman LLP as counsel to Sysorex Government Services Inc. in its Chapter 11 bankruptcy case, citing the firm's involvement in representing defendants in fraudulent transfer litigation. About Sysorex Government Services Inc. Sysorex Government Services, Inc. is a government IT solutions provider in Herndon, Va. Sysorex filed Chapter 11 petition (Bankr. S.D. N.Y. Case No. 25-10920) on May 5, 2025, listing up to $10 million in assets and up to $50 million in liabilities. A. Zaman Khan, president of Sysorex, signed the petition. Judge John P. Mastando III oversees the case. Ralph E. Preite, Esq., at Cullen and Dykman LLP, represents the Debtor as legal counsel. TEHUM CARE: Court Stays Libertus Case v. Skaggs, Crouch ------------------------------------------------------- Judge Audrey G. Fleissig of the United States District Court for the Eastern District of Missouri granted Ashley Skaggs and Tamra Crouch's motion to stay the case captioned as TIMOTHY LIBERTUS, Plaintiff, v. PEYTON KEENER HARRIS, et al., Defendants, Case No. 4:22-cv-01226-AGF (E.D. Mo.). Plaintiff's claims against the other named defendants remain pending. Skaggs and Crouch are Corizon Health former employees. They argue that at the times of the alleged incidents from which Plaintiff's complaint arises, they were employed by Corizon. Corizon filed for Chapter 11 Bankruptcy on Feb. 13, 2023, and civil lawsuits pending against Corizon were stayed pursuant to the order of the United States Bankruptcy Court for the Southern District of Texas at that time. The debtors in the bankruptcy proceeding have now filed a motion to enjoin, seeking an Order from the Bankruptcy Court that actions brought against the Corizon Former Employees are enjoined in connection with the now-effective Chapter 11 bankruptcy plan, which according to Skaggs and Crouch, includes former employees as "released parties." Skaggs and Crouch argue that any objection to the motion to enjoin by Plaintiff in this case must be litigated in the Bankruptcy Court and that this litigation should be stayed until the Bankruptcy Court rules on the motion to enjoin. With no opposition from Plaintiff, the Court concludes that a stay is warranted as to the Plaintiff's claims against the Corizon Former Employees only. This stay is also appropriate in light of the Court's inherent power to stay proceedings in the interest of judicial economy. The Court concludes that no undue prejudice will result therefrom. The Plaintiff's claims will be stayed against Skaggs and Crouch until the Bankruptcy Court rules on the motion to enjoin. Skaggs and Crouch's prior motion to stay or, alternatively, for an extension of time is dismissed as moot. A copy of the Court's Memorandum and Order dated June 26, 2025, is available at https://urlcurt.com/u?l=QIGWCU from PacerMonitor.com. About Tehum Care Services Tehum Care Services Inc., doing business as Corizon Health Services Inc., is a privately held prison healthcare contractor in the United States. It is based in Brentwood, Tenn. Tehum Care Services filed a petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-90086) on Feb. 13, 2023. In the petition filed by Russell A. Perry, as chief restructuring officer, the Debtor reported assets between $1 million and $10 million and liabilities between $10 million and $50 million. Judge Christopher M. Lopez oversees the case. The Debtor is represented by Jason S. Brookner, Esq., at Gray Reed & McGraw, LLP. TELUS CORP: DBRS Finalizes BB(high) Credit Rating ------------------------------------------------- DBRS Limited finalized its provisional credit rating of BB (high) with a Stable trend on TELUS Corporation's (TELUS or the Company) re-opening $375 million 6.25% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAR due July 21, 2055, and $425 million 6.75% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAS due July 21, 2055 (collectively the Notes), issuance. There is no change to either the Company's Issuer Rating or Senior Unsecured Debt rating, which are rated BBB with Stable trends. The credit rating assigned to these newly issued debt instruments is based on the credit rating of an already-outstanding debt series of the above-mentioned debt instruments. Please refer to the Morningstar DBRS press release dated June 5, 2025, for more information, including all relevant disclosures. The rating is based on TELUS' Prospectus Supplement (to a short form base shelf prospectus dated August 2, 2024) dated June 16, 2025, and information provided by TELUS to Morningstar DBRS as of June 26, 2025. Continuation of the rating is subject to the provision to Morningstar DBRS of timely and sufficient information and/or data for the purposes of monitoring the above-noted rating. THRASIO HOLDINGS: S&P Raises ICR to 'CCC', Outlook Negative ----------------------------------------------------------- S&P Global Ratings raised its issuer credit rating on U.S.-based Thrasio Holdings Inc. to 'CCC' from 'D'. S&P said, "At the same time, we raised our issue-level rating on the company's $90 million senior secured first-out term loan to 'CCC-' from 'D'. The '5' recovery rating is unchanged and continues to indicate our expectation for modest (10%-30%; rounded estimate: 25%) recovery in the event of a payment default. "We also raised our issue-level rating on its $276 million second-out term loan to 'CC' from 'D'. The '6' recovery rating is unchanged and continues to indicate our expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of a payment default." The negative outlook reflects the increased risk of another default if Thrasio is unable to improve its operating performance in the coming year. On June 20, 2025, Thrasio amended its credit agreement to extend the payment-in-kind (PIK) interest payment on the first-out and second-out term loans for another year. S&P lowered its ratings to 'D' on July 8, 2025. Although the amendment reduces the company's cash interest burden and provides some near-term liquidity relief, S&P continues to forecast Thrasio will generate negative EBITDA and free operating cash flow (FOCF) over the next 12 months, which would deplete its cash balance and lead to the company breaching its minimum liquidity covenant when its cash interest requirement returns in June 2026. The upgrade follows Thrasio's amendment that provided some temporary liquidity and cash interest burden relief, but S&P believes default scenarios remain. On June 20, 2025, Thrasio amended its existing credit agreement to extend the PIK interest payments on both the first-out and second-out term loans for another year until June 18, 2026. After that, the interest payment on the first-out term loan will convert to cash and the interest payment on the second-out term loan will either be cash if the company meets the $50 million liquidity threshold or PIK otherwise. Absent this amendment, Thrasio would otherwise start paying cash interest expense, given its cash balance currently exceeds the $50 million threshold. S&P said, "In 2025, we expect revenue declines and continued negative EBITDA as Thrasio evaluates its brand portfolio and divests nonperforming brands. We also forecast the company will continue to generate an FOCF deficit, which will further deplete its cash balance. The company's amendment provides it with some flexibility to preserve liquidity as operational challenges persist. However, we expect the company's liquidity could deplete below its $30 million minimum covenant requirement by the time its amended cash interest requirement is reinstated in June 2026. Thus, we believe it is still likely that Thrasio could default over the next 12 months--most likely due to a minimum liquidity covenant default--absent unforeseen positive developments, which could include more asset sales or a focus on stronger brands that drives a turnaround in the business." Thrasio has a sustained history of negative EBITDA generation. Moreover, the company's revenue has declined and EBITDA has remained negative since its emergence from bankruptcy in June 2024, driven by weak demand amid the challenging consumer environment, as well as the effects of management's asset sales and portfolio rationalization. In its 2024 audit, Thrasio's auditors cast doubt around its ability to continue as a going concern due to its operating losses and cash outflows. Thrasio has limited pricing power to absorb tariff-related pressures, given its high exposure to China. China accounts for 55% of the company's total outsourced products, while it derives the remainder from the U.S and other regions in Asia. S&P said, "We believe Thrasio will attempt to mitigate the effects of the tariffs though cost sharing with its vendors, shifting its production to countries facing lower tariff rates, and adjusting its inventory management. We believe the company has limited pricing power because consumers continue to seek value products. Thrasio's brands are small, niche brands mainly in the home and kitchen, bedding, outdoor, pet, personal care, and cleaning categories, where they compete against the offerings from large consumer products companies that benefit from greater financial and marketing resources. Our forecast assumes that tariffs will impair the company's performance for the majority of fiscal year 2025 and persist through fiscal year 2026. That said, we expect Thrasio will be able to mitigate roughly half of the tariff-related increase in its costs through supplier negotiations and alternative sourcing." S&P Global Ratings believes there is a high degree of unpredictability around policy implementation by the U.S. administration and possible responses--specifically with regard to tariffs--and the potential effect on economies, supply chains, and credit conditions around the world. As a result, our baseline forecasts carry a significant amount of uncertainty, magnified by ongoing regional geopolitical conflicts. As situations evolve, we will gauge the macro and credit materiality of potential shifts and reassess our guidance accordingly. The negative outlook reflects the increased risk of another default if Thrasio is unable to improve its operating performance. S&P could lower its ratings on Thrasio if S&P believes there is a heightened risk of a default in the next six months. This could occur if: -- The company is unable to slow the declines in its revenue and EBITDA, leading to continued performance shortfalls and higher cash burn; or -- Its liquidity position deteriorates further, leading to a cash shortfall or a potential covenant breach. S&P could take a positive rating action on Thrasio if it believes a default is less likely in the next 12 months. This could occur if: -- The company turns around its declining business by stabilizing revenue and improves its poor EBITDA performance, leading to positive FOCF generation; and -- S&P forecasts it will maintain a sufficient covenant cushion. THRASIO LLC: Moody's Appends 'LD' Designation to 'Ca-PD' PDR ------------------------------------------------------------ Moody's Ratings has appended a limited default (/LD) designation to Thrasio, LLC's Probability of Default Rating, revising it to Ca-PD/LD from Ca-PD. The /LD designation indicates a limited default event and will be removed in approximately three business days. There are no changes to the company's Ca Corporate Family Rating or the ratings assigned to its debt instruments. The outlook remains negative. On June 20, 2025, Thrasio entered into an amendment with its lenders to extend the payment-in-kind (PIK) interest period on the company's senior secured first out and senior secured second out term loans by one year, through June 18, 2026. Previously, cash interest on the instruments was due in the second year of the agreement if unrestricted cash was greater than $50 million at the beginning of any interest period. This amendment was intended to preserve liquidity and provide the company with additional time to execute its turnaround strategy. Moody's considers the extension of the PIK period to preserve cash amid the company's high leverage and negative free cash flow a limited default. The agreement to extend the PIK interest period was mutually agreed upon by the company and its lenders as part of ongoing efforts to reinforce liquidity. There is no impact on the company's existing ratings or outlook because the PIK extension does not alleviate concerns regarding the company's ability to achieve positive EBITDA amid significant operational and execution challenges, compounded by weak liquidity. These factors continue to elevate default risk. Thrasio, LLC, founded in 2018 and headquartered in Walpole, MA, is an operator of private third-party Amazon brands with a diverse catalog of products across home, cleaning, outdoor, and other categories. The company's portfolio was built through multiple acquisitions of brands and their underlying businesses that often consisted of limited or singular products. The company estimates its current catalog includes about 40 brands. Thrasio filed for Chapter 11 in February 2024 and emerged from bankruptcy in June 2024. Thrasio generated approximately $530 million of revenue for the last 12 month period ending March 31, 2025. TJ TRUCKING: Seeks Subchapter V Bankruptcy in Ohio -------------------------------------------------- On July 11, 2025, TJ Trucking Enterprises LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Ohio. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About TJ Trucking Enterprises LLC TJ Trucking Enterprises LLC is a Toledo, Ohio-based freight trucking company operating a fleet of semi-trucks including Mack Anthems, Volvo VNL860s, and Freightliner Cascadias. TJ Trucking Enterprises LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 25-31433) on July 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. Honorable Bankruptcy Judge John P. Gustafson handles the case. The Debtors are represented by Eric R. Neuman, Esq. TOGETHERMENT MANAGEMENT: Seeks Chapter 11 Bankruptcy in Arizona --------------------------------------------------------------- On July 11, 2025, Togetherment Management LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Arizona. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Togetherment Management LLC Togetherment Management LLC is a single asset real estate management company based in Cave Creek, Arizona. Togetherment Management LLCsought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-06335) on July 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Daniel P. Collins handles the case. The Debtors are represented by Thomas H. Allen, Esq. at Allen, Jones & Giles, PLC. TOGETHERMENT MANAGEMENT: Voluntary Chapter 11 Case Summary ---------------------------------------------------------- Debtor: Togetherment Management LLC 31206 N. 65th Street Cave Creek, AZ 85331 Business Description: Togetherment Management LLC is a single- asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). Chapter 11 Petition Date: July 11, 2025 Court: United States Bankruptcy Court District of Arizona Case No.: 25-06335 Judge: Hon. Daniel P Collins Debtor's Counsel: Thomas H. Allen, Esq. ALLEN, JONES & GILES, PLC 1850 N. Central Avenue, Suite 1025 Phoenix, AZ 85004 Tel: 602-256-6000 Fax: 602-252-4712 E-mail: tallen@bkfirmaz.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Bruce Wuollet as member. The Debtor failed to attach a list of its 20 largest unsecured creditors to the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/RRLWLVA/TOGETHERMENT_MANAGEMENT_LLC__azbke-25-06335__0001.0.pdf?mcid=tGE4TAMA TOP MOBILITY: Gets Interim OK to Use Cash Collateral ---------------------------------------------------- Top Mobility Scooters, Inc. got the green light from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to use cash collateral. At the hearing held on July 10, the court granted the Debtor's motion to use cash collateral on an interim basis until August 7. The Debtor intends to use cash, income and receivables generated from its business operations to pay operating and administrative expenses. These expenses include payroll, vendor payments, utilities, maintenance, and other essential costs required to sustain the business. The Debtor's primary secured creditor is BankUnited, N.A., which holds a perfected security interest in substantially all of the Debtor's assets, including accounts, inventory, equipment, and proceeds, pursuant to a May 24, 2018 UCC-1 financing statement. Although other parties such as Amazon Capital Services, the Small Business Administration, and various Merchant Cash Advance lenders have also filed UCC-1 statements, the Debtor believes BankUnited holds the first priority claim on the cash collateral, as Amazon was not owed any debt as of the Petition Date and the other lenders' interests are junior or likely unsecured. To adequately protect BankUnited's interest in the collateral, the Debtor offered to implement several measures: 1. Use of a DIP Account: All post-petition income will be deposited into a dedicated debtor-in-possession account. 2. Restricted Disbursements: Funds will be disbursed solely for ordinary business expenses as outlined in the budget. 3. Reporting Requirements: The Debtor will provide BankUnited with monthly reports detailing accounts receivable, collections, disbursements, and operational data. 4. Replacement Lien: BankUnited will receive a replacement lien in post-petition cash collateral to the same extent, validity, and priority it held prepetition. 5. Compliance: The Debtor will meet all statutory and court-imposed obligations required of a debtor-in-possession. 6. Updated Budget: An updated cash collateral budget will be provided to BankUnited before the final hearing. About Top Mobility Scooters Inc. Top Mobility Scooters Inc. is a company specializing in mobility scooters and related equipment for individuals with mobility limitations. Based in Hudson, Florida, the company operates through its website www.topmobility.com and appears to provide healthcare-related mobility solutions in the 'Other Healthcare Services' industry category. Top Mobility Scooters sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04323) on June 26, 2025. In its petition, the Debtor reported estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Judge Roberta A. Colton handles the case. Michael A. Stavros, Esq., at Jennis Morse is the Debtor's legal counsel. BankUnited, N.A., as secured creditor, is represented by: George L. Zinkler, III, Esq. 101 Northeast Third Avenue, Suite 1800 Fort Lauderdale, FL 33301 Telephone (954) 462-8000 Facsimile (954) 462-4300 gzinkler@loriumlaw.com TRUDELL DOCTOR: Gets Final OK to Use Cash Collateral ---------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach Division, issued a final order authorizing Trudell Doctor, MD and Associates, LLC to use cash collateral to pay its expenses. The final order approved the Debtor's budget filed on June 23, which shows total monthly operational expenses of $123,383.86. To the extent that the Debtor's cash, accounts and accounts receivable constitute cash collateral of McKesson Corporation, the secured creditor will be granted a valid, binding, enforceable, non-avoidable and perfected post-petition security interest in and lien on all of the Debtor's cash generated post-bankruptcy filing. The final order directed the Debtor to escrow $1,000 each month for fees incurred by the Subchapter V trustee. The Debtor asserted that access to cash collateral is essential to remain operational. Without it, the Debtor will be unable to pay necessary business expenses and may have to cease operations. About Trudell Doctor, MD and Associates Trudell Doctor, MD and Associates, LLC is a family medicine clinic based in Boynton Beach, Florida. It provides primary care services to patients aged 16 and older, including in-person and telehealth visits. The practice offers treatments in women's health, hormone therapy, geriatric and adult medicine, sports medicine, and aesthetics. Trudell sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-16054) on May 5, 2025. In its petition, the Debtor reported total assets of $540,710 and total liabilities of $1,066,428. Judge Erik P. Kimball handles the case. The Debtor is represented by Alan R Crane, Esq., at Furr & Cohen. TYSONS CONCEPTS: Hires John P. Forest as Bankruptcy Counsel ----------------------------------------------------------- Tysons Concepts Corporation seeks approval from the U.S. Bankruptcy Court for the Eastern District of Virginia to hire John P. Forest, II, Esq., an attorney practicing in Fairfax, Va., to handle its Chapter 11 case. The services to be rendered by the attorney include giving the Debtor legal advice with respect to its powers and duties as a debtor and performing all other legal services for the Debtor which may be necessary to advance this case to a conclusion. Mr. Forest will be compensated at his hourly rate of $400. In a court filing, Mr. Forest disclosed that he is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The attorney can be reached at: John P. Forest, II, Esq. 11350 Random Hills Rd., Suite 700 Fairfax, VA 22030 Telephone: (703) 691-4940 Email: john@forestlawfirm.com About Tysons Concepts Corporation Tysons Concepts Corporation sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. 25-11362) on July 6, 2025, listing $100,001 to $500,000 in both assets and liabilities. John P. Forest, II, Esq. represents the Debtor as counsel. URBAN ONE: All Proposals OK'd at 2025 Meeting --------------------------------------------- Urban One, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the following proposals were submitted to the stockholders at the 2025 Annual Meeting of Stockholders held on June 18, 2025: A. The election of Terry L. Jones and Brian W. McNeill as Class A directors to serve until the 2026 annual meeting of stockholders or until their successors are duly elected and qualified. B. The election of Catherine L. Hughes, Alfred C. Liggins, III, B. Doyle Mitchell, Jr. and D. Geoffrey Armstrong as Class B directors to serve until the 2026 annual meeting of stockholders or until their successors are duly elected and qualified. C. Approval of an amendment to our Amended and Restated Articles of Incorporation to permit us to effect a reverse stock split of our outstanding Class A and Class D Common Stock, at a ratio within a range between one-for-two and one-for-30, subject to and as determined by a committee appointed by our Board of Directors. D. The ratification of the appointment of PricewaterhouseCoopers LLP, as our independent registered public accounting firm for the fiscal year ending December 31, 2025. To be elected, each Class A director nominee must receive the affirmative vote of a plurality of the votes cast by the holders of the Class A common stock. Each Class B director nominees are elected by the holders of Class A common stock and Class B common stock voting together as a single class but each share of Class A common stock is entitled to one vote and each share of Class B common stock is entitled to ten votes. Members of the board of directors are elected by a plurality of votes cast. This means that the nominees that received the most votes cast were elected to the board, even if they did not receive a majority of votes cast. At the close of business on April 21, 2025, there were 7,434,344 outstanding shares of the Company's Class A common stock and 2,861,843 outstanding shares of our Class B common stock. Accordingly, a total of 36,052,774 votes could be cast at the meeting. Class C and Class D common stock were not entitled to vote on any proposal presented at the meeting. The number of votes cast for and against and the number of abstentions and non-votes with respect to each matter voted upon are: * Board of Director Election Results: Class A Director Nominees 1. Terry L. Jones * Votes For: 1,045,194 * Votes Withheld: 639,548 * Non-Votes: 2,501,618 2. Brian W. McNeill * Votes For: 1,044,372 * Votes Withheld: 640,370 * Non-Votes: 2,501,618 Class B Director Nominees 3. Catherine L. Hughes * Votes For: 29,703,878 * Votes Withheld: 599,294 * Non-Votes: 2,501,618 4. Alfred C. Liggins, III * Votes For: 29,777,736 * Votes Withheld: 525,436 * Non-Votes: 2,501,618 5. B. Doyle Mitchell, Jr. * Votes For: 30,016,509 * Votes Withheld: 286,663 * Non-Votes: 2,501,618 6. D. Geoffrey Armstrong * Votes For: 30,012,533 * Votes Withheld: 290,639 * Non-Votes: 2,501,618 The six nominees were elected to the Board of Directors and will serve as directors until the Company's next annual meeting or until their respective successors are elected and qualified. * Approval of amendment of the Amended and Restated Articles of Incorporation to permit the Company to effect a reverse stock split The results of the voting included 31,748,434 votes for, 1,047,681 votes against, and 8,675 votes abstained. The amendment and restatement of the Amended and Restated Articles of Incorporation to permit the Company to effect a reverse stock split Plan was approved. * Ratification of PricewaterhouseCoopers LLP as Urban One's independent registered public accounting firm The results of the voting included 32,621,107 votes for, 126,251 votes against, and 57,432 votes abstained. The appointment was ratified. 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'. US NUCLEAR: Reports $1.7 Million Net Loss for FY 2024 ----------------------------------------------------- US Nuclear Corp. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The Company recorded a net loss of $1,739,926 for the year ended December 31, 2024, compared to $3,433,804 for the year ended December 31, 2023. Revenue for the year ended December 31, 2024, was $2,190,398 compared to $2,231,095 for the year ended December 31, 2023. The Company had an accumulated deficit of $19,676,325 as of December 31, 2024. Spokane, Washington-based Fruci & Associates II, PLLC, the Company's auditor since 2019, issued a "going concern" qualification in its report dated June 24, 2025, attached to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, citing that the Company has an accumulated deficit and net losses. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon its ability to generate profitable operations in the future and/or obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has plans to seek additional capital through some private placement offerings of debt and equity securities. These plans, if successful, will mitigate the factors which raise substantial doubt about the Company's ability to continue as a going concern. As of December 31, 2024, the Company had $2,646,847 in total assets, $3,503,012 in total liabilities, and $856,165 in total shareholders' deficit. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/2aawzezc About US Nuclear US Nuclear Corp. is engaged in developing, manufacturing, and selling radiation detection and measuring equipment. The Company markets and sells its products to consumers throughout the world. VARSOBIA HOME: Seeks Subchapter V Bankruptcy in California ---------------------------------------------------------- On July 9, 2025, Varsobia Home Builders filed Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Varsobia Home Builders Varsobia Home Builders is a residential construction company operating in the Los Angeles area. Varsobia Home Builders sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11219) on July 9, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Martin R. Barash handles the case. The Debtors are represented by Michael G. Spector, Esq. at Law Offices of Michael G. Spector. VEGAS CUSTOM GLASS: Seeks Subchapter V Bankruptcy in Nevada ----------------------------------------------------------- On July 9, 2025, Vegas Custom Glass LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Nevada. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Vegas Custom Glass LLC Vegas Custom Glass LLC is a specialized glass installation and fabrication company based in Las Vegas, Nevada. Vegas Custom Glass LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev.Case No. 25-13929) on July 9, 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 James T. Leavitt, Esq. at LEAVITT LEGAL SERVICES, P.C. VEGAS TREASURES: Edward Burr Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 17 appointed Edward Burr of Mac Restructuring Advisors, LLC as Subchapter V trustee for Vegas Treasures Inc. Mr. Burr will be paid an hourly fee of $450 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Burr declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Edward Burr Mac Restructuring Advisors, LLC 10191 E. Shangri La Road Scottsdale, AZ 85260 Phone: (602) 418-2906 Email: Ted@macrestructuring.com About Vegas Treasures Inc. Vegas Treasures Inc., doing business as Paymon's Fresh Kitchen & Lounge, operates a restaurant and lounge in Las Vegas, Nevada. The Company offers international cuisine with vegan, vegetarian, and gluten-free options, emphasizing health-conscious ingredients. It also runs a lounge known for its cocktails, entertainment, and community-focused atmosphere. Vegas Treasures Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-13582) on June 23, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million. Honorable Bankruptcy Judge Natalie M. Cox handles the case. The Debtors are represented by Zachariah Larson, Esq., at Larson & Zirzow, LLC. VILLAGES HEALTH: Gets Interim OK to Obtain DIP Loan From PMA ------------------------------------------------------------ The Villages Health System, LLC received interim approval from the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, to use cash collateral and obtain post-petition financing to get through bankruptcy. The financing is a $39 million debtor-in-possession facility provided by PMA Lender, LLC, an affiliate of the Debtor under common ownership. The DIP facility consists of $24 million in new money to support ongoing operations and $15 million representing a "roll-up" of the Debtor's pre-petition secured obligations under a credit facility established in April 2025. The interim order authorized the Debtor to obtain an initial $5 million, with the remaining amount to become available upon entry of a final DIP order. The Debtor will use this initial loan for working capital and other general corporate purposes in accordance with its budget. The DIP loan bears interest at 12% per annum on the new money advances, calculated on a 360-day basis, with default interest at 18% per annum. The DIP facility matures on the earliest of: (1) 180 days from the petition date; (2) the closing of a sale of substantially all of the Debtor's assets; or (3) the occurrence of an event of default, subject to cure rights in certain circumstances. Any outstanding DIP obligations must be paid in full at the closing of a sale transaction, either directly by the buyer or through escrow. The Debtor is required to comply with several milestones to avoid default, which include filing the petition and a sale procedures motion by July 3; securing entry of the interim DIP order by July 11; approval of bid procedures by July 24; entry of the final DIP order by August 15; holding an auction and obtaining sale approval by September 1; closing the sale by October 3; filing a Chapter 11 plan and disclosure statement by October 31; obtaining approval of the disclosure statement by November 28; concluding plan voting by December 31; and securing confirmation of the plan by January 30, 2026. The DIP facility includes a standard carve-out for professional fees. PMA will be provided with adequate protection in the form of an allowed senior administrative expense claim and security interests in and liens and mortgages on the DIP collateral. DIP collateral includes all property of the Debtor's estate under Section 541 of the Bankruptcy Code, including all real and personal property. It does not include the Debtor's real property leases solely to the extent that the grant of a DIP lien thereon is prohibited or restricted by the terms of leases or applicable non-bankruptcy law. The DIP terms are highly favorable featuring no lender fees, below-market interest, and limited roll-up exposure (at a 0.625:1 ratio of old debt to new money). These terms were achieved after a market check by Evercore, which solicited offers from at least seven potential lenders. The Debtor ultimately concluded that the insider DIP lender offered the most viable and cost-effective path forward. Absent this financing, the Debtor will be unable to meet payroll, maintain operations, or fund the restructuring process, jeopardizing value for all stakeholders. As of the petition date, the Debtor owed PMA more than $15 million. Use of Cash Collateral The court order also authorized the Debtor's interim use of cash collateral for working capital and general corporate purposes during the period from July 3 until the maturity date of the DIP loan or the date on which the Debtor commits an incurable, material breach of the DIP agreement, whichever comes first. All of the Debtor's cash as of the petition date on deposit or maintained by the Debtor in any account subject to a valid control agreement in favor of PMA as well as cash proceeds of the disposition of any of PMA's pre-bankruptcy collateral constitute cash collateral of PMA. A copy of the interim DIP order is available at: http://bankrupt.com/misc/VillagesHealthSystem_InterimDIPOrder.pdf About The Villages Health System LLC The Villages Health System, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 6:25-bk-04156) on July 3, 2025. In the petition signed by Neil F. Luria, chief restructuring officer, the Debtor disclosed listed between $50 million and $100 million in assets and between $100 million and $500 million in liabilities. Judge Lori V. Vaughan oversees the case. Elizabeth A. Green, Esq., at Baker & Hostetler, LLP, represents the Debtor as legal counsel. VIPER ENERGY: Moody's Rates New Senior Unsecured Notes 'Ba1' ------------------------------------------------------------ Moody's Ratings assigned a Ba1 rating to Viper Energy Partners LLC's proposed offering of backed senior unsecured notes. Viper Energy is a wholly owned subsidiary of Viper Energy, Inc. (Viper) and is the borrower under the unsecured revolving credit facility. Viper Energy's rating outlook is stable. Concurrently, Moody's affirmed Viper's Ba1 Corporate Family Rating (CFR) and Ba1-PD Probability of Default Rating (PDR), and maintained the stable outlook. Viper's SGL-1 Speculative Grade Liquidity (SGL) rating remains unchanged. Viper's Ba1 rating on the existing backed senior unsecured notes have also been reviewed in the rating committee and remain unchanged. Viper Energy intends to use net proceeds from its proposed notes offering to redeem Viper's 2027 and 2031 notes and for general corporate purposes. "Viper Energy's notes issuance is opportunistically refinancing existing Viper debt and extend maturities," commented Amol Joshi, Moody's Ratings' Vice President – Senior Credit Officer. RATINGS RATIONALE Viper Energy's new notes are rated Ba1, consistent with Viper's Ba1 CFR. Viper Energy's new notes and its revolving credit facility are both unsecured and pari passu, with a downstream guarantee from its parent Viper. Viper's Ba1 CFR is supported by its significant mineral and royalty interests that produce strong margins and free cash flow; low operating costs and no capital expenditure requirements; oil-weighted assets in the Permian Basin operated by financially strong E&P companies; and its successful growth history. The credit profile also reflects management's track-record of conservative financial policies, including maintaining low leverage, adjusting shareholder distributions as warranted, funding acquisitions with considerable amount of equity and reducing debt following leveraging acquisitions. Additionally, the company's ratings benefit from significant uplift from its operating and strategic importance to Diamondback Energy, Inc. (Diamondback, Baa2 stable), which controls and manages Viper and consolidates Viper for financial reporting. Viper's ratings are restrained by its smaller production and cash flow base compared to similarly rated E&Ps; dependence on E&P operators for its non-operated passive mineral and royalty interests while lacking control over drilling and development decisions; the need to make periodic acquisitions to maintain production and reserves, which introduces valuation and financing risks; and a high distribution business model. Viper's agreement to acquire Sitio Royalties Corp. (Sitio, B1 ratings under review) in an all-equity transaction will benefit its credit profile, but doesn't impact Viper's rating or stable outlook. Viper has agreed to acquire Sitio for roughly $4.1 billion, including Sitio's net debt of about $1.1 billion as of March 31, 2025. This acquisition will boost Viper's production by roughly 50%, add significant drilling inventory, further diversify its exposure to E&P operators, and provide meaningful synergies reducing its overall breakeven cost. However, the acquisition will likely mildly increase Viper's financial leverage given Sitio has more debt than Viper. Viper will also need to successfully integrate Sitio's operations after executing two other major acquisitions in the first quarter of 2025. Viper will maintain very good liquidity through 2026, which is reflected in the SGL-1 rating. Moody's expects solid free cash flow generation even if oil prices weaken considerably from current levels. Viper keeps minimal cash in hand and has a policy to distribute at least 75% of free cash flow (before dividends) to shareholders. The company will use any remaining free cash to make additional acquisitions or reduce debt. As of May 02, 2025, the company had a $750 million Board authorized share repurchase program of which $425 million remained available for future repurchases. Viper hedges a portion of its oil production and generally buys put options to retain unconstrained upside. As of June 12, 2025, Viper Energy had $365 million outstanding under its $1.5 billion revolving credit facility. The revolver expires in June 2030, and it should have ample headroom under the credit facility's financial covenants. The stable outlook reflects Viper's low leverage and ability to generate free cash flow at low oil prices. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Viper's ratings could be upgraded if Diamondback's rating were upgraded and Viper substantially increased its scale, maintained strong leverage metrics and remained core to Diamondback's operations. Viper growing production above 150,000 boe/day, sustaining retained cash flow (RCF) to Debt above 40% and Debt to proved developed (PD) reserves below $4/boe would be supportive of an upgrade. A downgrade could occur if Viper executes a large debt funded acquisition or experiences a sharp and sustained decline in production. The ratings could be downgraded if RCF to Debt falls below 20% or Debt to PD reserves rises above $6/boe. The ratings could also be downgraded if Diamondback's ratings were downgraded. Viper Energy, Inc. is a publicly traded company based in Midland, Texas, which is engaged in owning and acquiring mineral and royalty interests in oil and natural gas properties. Viper Energy Partners LLC is its wholly owned principal operating subsidiary. The principal methodology used in these ratings was Independent Exploration and Production published in December 2022. VIVA LIBRE: Seeks to Use Cash Collateral ---------------------------------------- Viva Libre Restaurant Concepts Inc. asked the U.S. Bankruptcy Court for the Central District of California, Santa Ana Division, for authority to use cash collateral and provide adequate protection. The cash collateral includes funds secured by the U.S. Small Business Administration and Hanmi Bank. The Debtor proposed to grant post-petition replacement liens to these creditors as adequate protection and requested an interim hearing on the matter. The restaurant, in operation since 1994, filed for Chapter 11 (Subchapter V) on May 1, citing financial strain from pandemic-era loan repayments and increased competition. The business generates approximately $43,000 in weekly gross receipts and aims to restructure debt, repay a $62,832 rent deficiency, and modernize operations. The SBA holds a secured claim of $547,000, primarily against business assets, while Hanmi Bank holds a $12,664 claim secured by patio furniture and windows. The Debtor has already stipulated with the SBA for the use of its cash collateral and will work with Hanmi to provide suitable protection. Under 11 U.S.C. section 363, a Debtor may use cash collateral with consent or court approval, provided adequate protection is offered. The Debtor argued it satisfies this standard through ongoing contractual payments, operational stability, and plans for future revenue growth. It also maintains that its business value as a going concern far exceeds its liquidation value—assets are worth less than $362,000, significantly below the SBA's secured claim. The Debtor is positive that collateral value is stable and will likely improve through consistent income and business preservation. The restaurant's continued operations protect secured creditors' interests better than liquidation would. The Debtor requested that the court approve the use of cash collateral, adopt the terms of the SBA stipulation, and allow the business to remain operational as it formulates a reorganization plan. About Viva Libre Restaurant Concepts Viva Libre Restaurant Concepts Inc. operates Blue Agave Southwest Grill, a Mexican and Southwestern fusion restaurant based in Yorba Linda, California. The restaurant offers dishes like Mahi Mahi, Mazatlan Mango Wrap and Montego Bay Coconut Shrimp. Viva Libre filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-11186) on May 1, 2025. In its petition, the Debtor reported between $500,000 and $1 million in assets and between $1 million and $10 million in liabilities. Judge Theodor Albert handles the case. The Debtor is represented by Christopher James Langley, Esq., at Shioda Langley & Chang, LLP. WALKER & ZANGER: Seeks Chapter 11 Bankruptcy in Delaware -------------------------------------------------------- On July 8, 2025, Walker & Zanger LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware. According to court filing, the Debtor reports between $50 million and $100 million in debt owed to 5,000 and 10,000 creditors. The petition states funds will be available to unsecured creditors. About Walker & Zanger LLC Walker & Zanger LLC is premium importer and distributor of luxury tile, natural stone, and decorative surfaces. Walker & Zanger LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11303) on July 8, 2025. In its petition, the Debtor reports estimated assets between $10 million and $50 million and estimated liabilities between $50 million and $100 million. Honorable Bankruptcy Judge Craig T. Goldblatt handles the case. The Debtors are represented by Matthew B. Harvey at Morris Nichols Arsht & Tunnell, LLP. WAMALA GENERAL: Seeks to Hire Riggi Law Firm as Bankruptcy Counsel ------------------------------------------------------------------ Wamala General Properties LLC seeks approval from the U.S. Bankruptcy Court for the District of Nevada to employ Riggi Law Firm as counsel. The firm will render these services: 1. institute, prosecute, or defend any contested matters arising out of this bankruptcy proceeding in which the Debtor may be a party; 2. assist in the recovery and obtaining necessary Court approval for recovery and liquidation of estate assets, and to assist in protecting and preserving the same where necessary; 3. assist in determining the priorities and status of claims and in filing objections thereto where necessary; 4. assist in preparation of a Chapter 11 plan; and 5. advise and perform all other legal services. The firm will be paid at these rates: Partners $500 per hour Associates $195 per hour In addition, the firm will receive reimbursement for out-of-pocket expenses incurred. The firm received an initial retainer in the amount of $7,500. David Riggi, Esq., a partner at Riggi Law Firm, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: David A. Riggi, Esq. Riggi Law Firm 5550 Painted Mirage Rd. Suite 320 Las Vegas, NV 89149 Tel: (702) 463-7777 Fax: (888) 306-7157 Email: RiggiLaw@gmail.com About Wamala General Properties LLC Wamala General Properties LLC sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Nevada Case No. 25-13881) on July 4, 2025, listing up to $50,000 in assets and $100,001 to $500,000 in liabilities. The Debtors are represented by David A. Riggi, Esq., at Riggi Law Firm. WATCHTOWER FIREARMS: Plan Exclusivity Period Extended to Sept. 25 ----------------------------------------------------------------- Judge Mark X. Mullin of the U.S. Bankruptcy Court for the Northern District of Texas extended Watchtower Firearms LLC's exclusive periods to file a plan of reorganization and obtain acceptance thereof to September 25 and November 25, 2025, respectively. As shared by Troubled Company Reporter, the relevant factors strongly favor initial extensions of the Exclusivity Periods. * The size and complexity of the case. As the Court has noted on a couple of occasions, while this case is not the largest, it is complicated by, among other things, numerous interested parties' active participation and numerous allegations. Indeed, the Debtor qualified as a complex chapter 11 case under the Court's Local Rules. * The terms of a chapter 11 plan will depend on the outcome of the Sale Motion. Through the Sale Motion, the Debtor proposes to sell all of its assets, the proceeds of which will be used to satisfy the obligations owed to all of the Debtor's stakeholders. The Debtor also has pending litigation against the Landlord that can be used to fund a chapter 11 plan. Furthermore, the Debtor's ongoing obligations, including its lease obligations, will impact the terms of a plan of reorganization. * The Debtor has made significant progress in negotiating in good faith with all creditors and working towards a viable chapter 11 plan. The Debtor negotiated with the Committee, secured lenders and the DIP Lender to accomplish the relief requested in the Sale Motion, which contains agreed-upon terms for a sale within 60 days. The Debtor also reached a global resolution with the Committee, secured lenders and the DIP Lender on agreed-upon terms for the DIP Facility, which will provide necessary funding for the Debtor to be sold at the highest value. * The Debtor is not seeking to extend exclusivity to pressure creditors, and an extension of the exclusivity periods will not prejudice creditors. The Debtor has not sought an extension of exclusivity to pressure creditors or other parties in interest. On the contrary, all creditor constituencies are benefitted by providing the Debtor with sufficient time to continue to negotiate the terms of a chapter 11 plan and determine what transaction or combination of transactions will provide the greatest value to its estate and the greatest recovery to its creditors. Watchtower Firearms LLC is represented by: H. Joseph Acosta, Esq. CONDON TOBIN SLADEK THORNTON NERENBERG PLLC 8080 Park Lane, Suite 700 Dallas, TX 75231 Tel: (214) 265-3852 Fax: (214) 265-3800 Email: jacosta@condontobin.com About Watchtower Firearms LLC Watchtower Firearms LLC is a veteran-owned company offering a diverse range of firearms, including custom rifles, special edition rifles, and handguns. The Company serves military, law enforcement, hunting, and personal use markets. In addition to firearms, it provides suppressors, components, and specialized gear tailored to meet the needs of its customers. Watchtower Firearms LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40684) on Feb. 27, 2025. In its petition, the Debtor estimated assets and liabilities between $10 million and $50 million each. Joseph Acosta, Esq., at CONDON TOBIN, represents the Debtor as counsel. WATCHTOWER FIREARMS: Wins Final OK for DIP in Chapter 11 Case ------------------------------------------------------------- WATCHTOWER Firearms is proud to announce that the United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division, has granted final approval for a significant amount of debtor-in-possession (DIP) financing. This financial support is substantial and empowers WATCHTOWER Firearms to maintain operational continuity, reinforce the Company's position as it moves forward in its growth trajectory, and drive it towards a near-term exit from Chapter 11. The approved DIP financing will be used to maintain essential business operations, including the purchase of materials and parts necessary for manufacturing WATCHTOWER firearms, along with providing top-tier sales and service to customers. WATCHTOWER Firearms is exploring strategic options to enhance and maximize value for all its stakeholders. "WATCHTOWER Firearms is an excellent company with great people known for its high-quality products and well-earned reputation for excellence," stated Jason Colosky, Founder and CEO. "To navigate the current challenges facing the company, we determined that decisive action is necessary to re-position and grow the company. We are confident that these steps will position the business for long-term success. "We want to thank our customers, vendors, lenders, and stakeholders for their unwavering support, which reflects their confidence in our business and our team. This support will enable us to navigate swiftly through the court-supervised process. We remain committed to maintaining the highest standards of operational excellence across all our products. We are continuing our operations without compromise to our high standards and customer service. The Company remains dedicated to working collaboratively with its stakeholders -- employees, customers, and creditors -- to achieve a successful and effective restructuring outcome." WATCHTOWER Firearms is dedicated to transparency and open communication with all stakeholders as it navigates this restructuring phase. The company anticipates emerging from this process as a stronger and more nimble entity, prepared to meet the evolving needs of its customers and the market. About Watchtower Firearms LLC Watchtower Firearms LLC is a veteran-owned company offering a diverse range of firearms, including custom rifles, special edition rifles, and handguns. The Company serves military, law enforcement, hunting, and personal use markets. In addition to firearms, it provides suppressors, components, and specialized gear tailored to meet the needs of its customers. Watchtower Firearms LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40684) on February 27, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Joseph Acosta, Esq. at CONDON TOBIN represents the Debtor as counsel. WATER ENERGY: To Sell Stanton Property to 4 Arrows for $275K ------------------------------------------------------------ Water Energy Services, LLC, seeks approval from the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division, to sell Property, free and clear of liens, claims, and encumbrances. The Debtor's Property is located at 3334 S Service Rd I-20, Stanton, TX. The Debtor has been working with Hilco Real Estate, LLC, as the Debtor's broker to market the Property. After several rounds of negotiations, the Buyer, 4 Arrows Investments, LLC , and Debtor have agreed to a sale price of $275,000. The Closing Date is on or before the later of 15 days after expiration of the feasibility period, or 7 days after Buyer's objections have been cured or waived. The Earnest money is $10,000.00 and the Broker's Commission is 8% ($22,000). The Debtor is aware of purported liens against the real property, including those held by Community Bank & Trust – West Georgia, BTG, LLC, and Martin County for property tax claims. At closing, the Debtor seeks authority to pay: a. Community Bank & Trust – West Georgia (CB&T) the amount of $210,000; b. Martin County the full amount of its claim, approximately $5,200, in satisfaction of outstanding property taxes. Additionally, the Debtor seeks authority to pay certain expenses and commissions at closing, including: a. Preparation of the deed and any bill of sale; b. Prorated property taxes as required; c. Any other standard costs associated with closing; d. A commission in the amount of $22,000 to Hilco Real Estate, LLC, consistent with the Court's prior order approving Hilco's employment. The Debtor further requests that the remaining sale proceeds be held as cash collateral and utilized in accordance with the Court-approved budget. Because CB&T's lien exceeds the sale price, the Debtor currently believes the funds remaining after the foregoing distributions are CB&T's cash collateral and not the cash collateral of any other party in interest. About Water Energy Services, LLC Water Energy Services, LLC is a San Antonio-based company operating in the oil and gas extraction industry. Water Energy Services LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-50539) on March 21, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and between $10 million and $50 million in liabilities. Judge Michael M. Parker handles the case. The Debtor is represented by Herbert C Shelton, II, Esq., at Hayward, PLLC. WEC 98D-16: Trigild Named as Receiver for Louisville, Ky. Property ------------------------------------------------------------------ Chris Neilson of Trigild IVL, has been appointed as receiver to take possession of and administer all of the receivership property, including the real and personal property assets of WEC 98D-16 LLC, at 4149 Taylor Boulevard, Louisville, Kentucky 40215. In the case styled Wilmington Trust, National Association, as Trustee for the Benefit of the Registered Holders of Wells Fargo Commercial Mortgage Trust 2021-C59, Commercial Mortgage Pass-Through Certificates, Series 2021-C59, Commercial Mortgage PassThrough Certificates, Series 2021-C59, through its special servicer Argentic Services Company LP, Plaintiff v. WEC 98D-7 LLC, WEC 98D-16 LLC, WEC 98D-17 LLC, WEC 98D-18 LLC, WEC 98D-21 LLC, WEC 98D-23 LLC, each a Texas limited liability company; and RX Ashland Investors, L.L.C. and RA2 Stuarts Draft L.L.C., each a Delaware limited liability company, Defendants, Case No. 3:25MC-11-RGJ (W.D. Ky.), the Plaintiff enters notice of filing of federal order appointing receiver, Chris Neilson, of Trigild IVL, in the United States District Court for the Western District of Kentucky because this district encompasses property at issue in the Michigan action. The notice is made in accordance with 28 U.S.C. Section 754 of an Order for Receiver entered in the United States District Court for the Eastern District of Michigan, on June 24, 2025, Case No. 25-11620. In the E.D. Mich. case, the Court found that there is good cause to appoint a receiver in this action in order to protect the parties' respective interests in the properties, including all rights, title and interest, including leasehold interests, of WEC 98D-7 LLC, WEC 98D-16 LLC, WEC 98D-17 LLC, WEC 98D-18 LLC, WEC 98D-21 LLC, WEC 98D-23 LLC, RX Ashland Investors, L.L.C. and RA2 Stuarts Draft L.L.C ("Defendants" or "Borrowers"). The Court further found that the proposed Receiver has sufficient competence, qualification and experience to administer the Receivership Property. WEC 98D-7 LLC is a Texas limited liability company. Plaintiff Wilmington Trust is represented by: Stanley E. Graham, Esq. HOLLAND & KNIGHT LLP 511 Union Street, Suite 2700 Nashville, TN 37219 Telephone: (615) 850-8935 E-mail: stan.graham@hklaw.com The Defendants are represented by: Marisa Kay McConnell, Esq. VARNUM LLP 101 N Main St Ste 525 Ann Arbor, MI 48104 Telephone: (916) 990-6343 E-mail: mkmcconnell@varnumlaw.com - and - Perrin Rynders, Esq. VARNUM, RIDDERING Bridgewater Place P.O. Box 352 Grand Rapids, MI 49501 Telephone: (616) 336-6000 E-mail: prynders@varnumlaw.com WEC 98D-17: Trigild Named as Receiver for Fremont, Mich. Property ----------------------------------------------------------------- Chris Neilson of Trigild IVL has been appointed as receiver, and can receive real and personal property assets owned by Defendant WEC 98D-17 LLC located at 924 West Main Street, Fremont, Michigan (Newago County). In the case styled Wilmington Trust, National Association, as Trustee for the Benefit of the Registered Holders of Wells Fargo Commercial Mortgage Trust 2021-C59, Commercial Mortgage Pass-Through Certificates, Series 2021-C59, Commercial Mortgage PassThrough Certificates, Series 2021-C59, through its special servicer Argentic Services Company LP, Plaintiff v. WEC 98D-7 LLC, WEC 98D-16 LLC, WEC 98D-17 LLC, WEC 98D-18 LLC, WEC 98D-21 LLC, WEC 98D-23 LLC, each a Texas limited liability company; and RX Ashland Investors, L.L.C. and RA2 Stuarts Draft L.L.C., each a Delaware limited liability company, Defendants, Case No. 1:25-mc-00080-PJG (W.D. Mich.), the Plaintiff enters notice of filing of federal order appointing receiver, Chris Neilson, of Trigild IVL, in the United States District Court for the Western District of Michigan because this district encompasses property at issue in the Eastern District of Michigan action. The notice is made in accordance with 28 U.S.C. Section 754 of an Order for Receiver entered in the United States District Court for the Eastern District of Michigan, on June 24, 2025, Case No. 25-11620. In the E.D. Mich. case, the Court found that there is good cause to appoint a receiver in this action in order to protect the parties' respective interests in the properties, including all rights, title and interest, including leasehold interests, of WEC 98D-7 LLC, WEC 98D-16 LLC, WEC 98D-17 LLC, WEC 98D-18 LLC, WEC 98D-21 LLC, WEC 98D-23 LLC, RX Ashland Investors, L.L.C. and RA2 Stuarts Draft L.L.C ("Defendants" or "Borrowers"). The Court further found that the proposed Receiver has sufficient competence, qualification and experience to administer the Receivership Property. WEC 98D-7 LLC is a Texas limited liability company. Defendant 88th Avenue Owner LLC is represented by: Trisha M. Rich, Esq. HOLLAND & KNIGHT LLP 150 N. Riverside Plaza, Suite 2700 Chicago, IL 60606 E-mail: Trisha.rich@hklaw.com WELLPATH HOLDINGS: Court Lifts Stay in Dailey Lawsuit ----------------------------------------------------- Magistrate Judge Amelia G. Helmick of the United States District for the Middle District of Georgia lifted the stay in the case captioned as JAMES MONROE DAILEY, Plaintiff, v. RN KIMBERLY GRAY, et al., Defendants, Case No. 4:22-cv-139-CDL-AGH (M.D. Ga.). On Jan. 10, 2025, the Court stayed this case due to a bankruptcy petition filed by Wellpath, LLC. On May 1, 2025, the United States Bankruptcy Court for the Southern District of Texas confirmed Wellpath's Chapter 11 bankruptcy plan. Consequently, the stay in this case is lifted. Plaintiff's motion to amend to add Correct X Pharmacy as a defendant in this case is denied. As the Court previously found, Plaintiff has plead nothing more than negligence on the part of Correct X Pharmacy. Defendants Judy Jackson and Stephanie Wilson must file a report with the Court within twenty-one (21) days as to the effect of the bankruptcy court's confirmation order on Plaintiff's claims. R. Wells Littlefield, III, and Pamela L. Coleman's motions to withdraw as counsel for Defendants Judy Jackson and Stephanie Wilson are granted. A copy of the Court's Order dated June 27, 2025, is available at https://urlcurt.com/u?l=CNtPGP 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. WELLPATH HOLDINGS: Court Lifts Stay in Maldonado Lawsuit -------------------------------------------------------- Magistrate Judge Amelia G. Helmick of the United States District for the Middle District of Georgia lifted the stay in the case captioned as PABLO F. MALDONADO, Plaintiff, v. Warden SHAWN EMMONS, et al., Defendants, Case No. 5:23-cv-505-MTT-AGH (M.D. Ga.). On Jan. 10, 2025, the Court stayed this case due to a bankruptcy petition filed by Wellpath, LLC. On May 1, 2025, the United States Bankruptcy Court for the Southern District of Texas confirmed Wellpath's Chapter 11 bankruptcy plan. Consequently, the stay in this case is lifted. Defendants Efobi and Cobb must file a report with the Court by Aug. 20, 2025, as to the effect of the bankruptcy court's confirmation order on Plaintiff's claims. A copy of the Court's Order dated July 3, 2025, is available at https://urlcurt.com/u?l=EBi7qQ 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. WELLPATH HOLDINGS: Court Lifts Stay in Rodriguez Lawsuit -------------------------------------------------------- Magistrate Judge Amelia G. Helmick of the United States District for the Middle District of Georgia lifted the stay in the case captioned as HJALMAR RODRIGUEZ, JR., Plaintiff, v. Warden JACOB BEASLEY, et al., Defendants, Case No. 7:24-cv-25-WLS-AGH (M.D. Ga.). On Jan. 10, 2025, the Court stayed this case due to a bankruptcy petition filed by Wellpath, LLC. On May 1, 2025, the United States Bankruptcy Court for the Southern District of Texas confirmed Wellpath's Chapter 11 bankruptcy plan. Consequently, the stay in this case is lifted. Discovery is scheduled to begin on July 18, 2025. Defendant Raymond Moody must file a report with the Court by Aug. 20, 2025, as to the effect of the bankruptcy court's confirmation order on Plaintiff's claims. Wells Littlefield, III, and Tiffiny Montenegro's motions to withdraw as counsel for Defendant Raymond Moody are granted. A copy of the Court's Order dated July 3, 2025, is available at https://urlcurt.com/u?l=ex2TdE 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. WELLPATH HOLDINGS: Court Lifts Stay in T.O., et al. Lawsuit ----------------------------------------------------------- Judge William B. Shubb of the United States District Court for the Eastern District of California lifted the stay in the case captioned as T.O., a minor through his Guardian Ad Litem Hannah Morris, Individually and as Personal Representative of the Estate of AMY WAYNE MORRIS, Deceased, and S.O., a minor through his Guardian Ad Litem Hannah Morris, Individually and as Personal Representative of the Estate of AMY WAYNE MORRIS, Plaintiffs, v. COUNTY OF NEVADA, a Governmental Entity; WELLPATH, LLC, a Delaware limited liability company; NATIVIDAD RICKS, RN; JENNIFER PIXLEY, RN; JOSEPH BRITTON, MD; and DOES 1 through 10, inclusive, Defendants, Case No. 2:24-cv-01131-WBS-AC (E.D. Cal.). On June 23, 2025, the Court held a joint status conference in T.O. v. County of Nevada, No. 2:24-cv-1131 WBS AC; and T.O. v. O'Brien, No. 2:24-cv-3243 WBS AC. As of May 9, 2025, defendant Wellpath, LLC has exited bankruptcy. The stay in County of Nevada, No. 2:24-cv-1131 WBS AC, is lifted. Pursuant to Federal Rule of Civil Procedure 42(a)(2), the case captioned as T.O., a minor through his Guardian Ad Litem Hannah Morris, Individually and as Personal Representative of the Estate of AMY WAYNE MORRIS, Deceased, and S.O., a minor through his Guardian Ad Litem Hannah Morris, Individually and as Personal Representative of the Estate of AMY WAYNE MORRIS, Plaintiffs, v. MICHAEL O'BRIEN, individually, Defendant, No. 2:24-cv-3243 WBS AC, is consolidated with County of Nevada, No. 2:24-cv-1131 WBS AC, for all purposes. County of Nevada, No. 2:24-cv-1131 WBS AC, is designated as the "master file". The parties are directed to file all future pleadings and motions only in County of Nevada, No. 2:24-cv-1131 WBS AC. Plaintiffs' ex parte application to shorten the time to hear their motion to join California Forensic Medical Group is denied. The parties are directed to file no further ex parte applications in the newly consolidated matter. A copy of the Court's Order dated June 26, 2025, is available at https://urlcurt.com/u?l=1mzDmC 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. WELLPATH HOLDINGS: Court Tosses Quarles Prisoner Civil Rights Case ------------------------------------------------------------------ Judge Joseph F. Leeson, Jr. of the United States District Court for the Eastern District of Pennsylvania granted summary judgment in favor of defendants on all claims in the case captioned as KEVIN L. QUARLES, Plaintiff, v. DOMINIC J. BONTEMPO and JASON GOLDBERG, Defendants, Case No. 2:23-cv-1601 (E.D. Pa.). On April 24, 2023, Plaintiff Kevin Quarles, who is incarcerated at SCI-Phoenix, initiated the action against Dr. Jason Goldberg and Dr. Dominic Bontempo pursuant to 42 U.S.C. Sec. 1983 asserting violations of his rights under the Eighth and Fourteenth Amendments arising from an alleged unnecessary operation performed on him, for which he allegedly did not consent. With discovery closed, Bontempo and Goldberg have each moved for summary judgment. On Nov. 26, 2024, the Court issued a stay based on the Voluntary Petition for Non-Individuals Filing Bankruptcy for relief under Chapter 11 filed by Wellpath Holdings, Inc. in the United States Bankruptcy Court for the Southern District of Texas. Shortly after the stay was issued, Quarles filed summary judgment motions. The stay was lifted on May 28, 2025, following confirmation of the plan of reorganization under Chapter 11 of the Bankruptcy Code filed by Wellpath Holdings, Inc. At all times relevant to this action, Quarles was incarcerated at SCI-Phoenix. On Feb. 8, 2021, Quarles presented to prison triage complaining of a right breast mass and was seen by Defendant Goldberg. On March 10, 2021, Quarles asked for his ultrasound results. By March 19, 2021, the breast mass had increased in size and was more painful. On April 21, 2021, Goldberg referred Quarles for a consult to an off-site doctor, Defendant Bontempo. Bontempo saw Quarles for a consult on May 18, 2021, for a cyst in his right breast. On July 23, 2021, at 7:10 A.M., Quarles consented to excision of the ganglion cyst in his right shoulder, but refused a mastectomy. Bontempo advised Quarles of the risks of not getting the mastectomy and that the mass could be breast cancer, but Quarles refused. Bontempo advised Quarles that because there was a chance of cancer, he was risking his life by not having it excised and that leaving it in for longer was not recommended. Quarles stated that he understood and still refused. According to medical records, Quarles changed his mind about the mastectomy approximately thirty minutes later. The records state that Bontempo explained the procedure to Quarles in detail, including the risk of numbness and infection. Quarles purportedly stated that he understood and consented to have both procedures: the excision of the mass/cyst in his shoulder and the excision of the mass in his breast. He signed a form consenting to both procedures. Both surgeries (right subcutaneous mastectomy and excision of ganglion cyst from right shoulder) were performed on April 23, 2021. According to Judge Leeson, "Quarles alleged in the Complaint that Goldberg changed the order from a mammogram to that of a subcutaneous mastectomy, but has offered no evidence to support this assertion. To the contrary, the medical records show that Bontempo independently made the determination that a right subcutaneous mastectomy, instead of a mammogram, was appropriate. Accordingly, Quarles's unsupported allegation that Goldberg ordered a mastectomy fails to support his claim." The Court finds the evidence shows that Goldberg provided Quarles with timely and adequate medical care, including a referral to Bontempo. Following the referral, Goldberg was not involved with Quarles's medical treatment, including his mastectomy, and cannot be held vicariously liable for the medical decisions of Bontempo. Quarles's disagreement with Bontempo's decisions cannot state a constitutional claim and there is no evidence to show that Bontempo acted with deliberate indifference to Quarles's medical needs or right to refuse surgery, the Court concludes. A copy of the Court's Order dated July 2, 2025, is available at https://urlcurt.com/u?l=FXibZq 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. WELLPATH HOLDINGS: Henderson Prisoner Civil Rights Case Tossed -------------------------------------------------------------- Judge Malachy E. Mannion of the United States District Court for the Middle District of Pennsylvania will dismiss the case with prejudice the case captioned as TAURON HENDERSON, Plaintiff v. PENNSYLVANIA DEPARTMENT OF CORRECTIONS, et al., Case No, 3:23-cv-01126 (M.D. Pa.) for plaintiff's failure to prosecute pursuant to Federal Rule of Civil Procedure 41(b). This is a prisoner civil rights case filed pursuant to 42 U.S.C. Sec. 1983. Plaintiff, Tauron Henderson, alleges that defendants are violating his civil rights by failing to provide adequate treatment for his substance abuse. On Nov. 6, 2024, the Court granted defendants' motions to dismiss, dismissed Henderson's complaint without prejudice, and granted Henderson leave to file an amended complaint within thirty days, or no later than Dec. 6, 2024. Henderson did not file an amended complaint by that deadline, but prior to the deadline defendants moved to stay the case pursuant to 11 U.S.C. Sec. 362 because of an ongoing bankruptcy proceeding filed by Wellpath Holdings, Inc. and its affiliated companies in the United States Bankruptcy Court for the Southern District of Texas. The Court granted the motion to stay and stayed and administratively closed the case on Feb. 6, 2025. On Feb. 19, 2025, the copy of the Court's order that was mailed to Henderson was returned to the court as undeliverable, with a notation indicating that no forwarding address for Henderson was known. Henderson has previously been given notice that he is obligated to inform the court of any changes to his mailing address. On May 30, 2025, defendants provided a status report in which they represent that the automatic stay no longer applies to this case in light of a May 1, 2025, order from the bankruptcy court approving Wellpath's Chapter 11 plan of reorganization. The Court will accordingly lift the stay. Because Henderson is proceeding pro se, he is personally responsible for his failure to comply with the Court's orders. According to the Court, Henderson's failure to update his address causes prejudice to defendants by delaying resolution of the case. He also has shown a history of dilatoriness by failing to update his address and failing to file an amended complaint by the court-imposed deadline. His failure to abide by court orders demonstrates a willful disregard for procedural rules and court directives. Because the Court does not have a current mailing address for him and thus cannot meaningfully enforce any other sanctions against him at this time, it is without any viable alternative to dismissal. Moreover, Henderson's complaint has been dismissed without prejudice for failure to state a claim upon which relief may be granted and he has not filed an amended complaint to cure the defendants in the complaint. In light of plaintiff's failures to comply with court orders, the Court will dismiss this action with prejudice. A copy of the Court's Memorandum dated July 1, 2025, is available at https://urlcurt.com/u?l=lCwBbj 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. WELTY SERVICES: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Welty Services, LLC d/b/a Brazoria County Truck Outfitters d/b/a Jones and Hadley d/b/a Mikes Paint and Body Shop 2123 South Velasco Angleton, TX 77515 Business Description: Welty Services, LLC operates a retail store specializing in truck accessories and a combined automobile repair business in Angleton, Texas. Chapter 11 Petition Date: July 10, 2025 Court: United States Bankruptcy Court Southern District of Texas Case No.: 25-80315 Judge: Hon. Alfredo R Perez Debtor's Local Counsel: Genevieve M. Graham, Esq. GRAHAM PLLC 1215 Arthur St Houston TX 77019 Tel: 832-367-5705 E-mail: ggraham@graham-pllc.com Debtor's Counsel: THE FOX LAW CORPORATION Total Assets: $2,378,150 Total Liabilities: $4,437,167 The petition was signed by Donnie Welty Jr. as managing member. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/YHRKZGA/Welty_Services_LLC__txsbke-25-80315__0001.0.pdf?mcid=tGE4TAMA WEST BRAZOS STEWART: Seeks Chapter 11 Bankruptcy in Texas --------------------------------------------------------- On July 11, 2025, West Brazos Stewart Property Holdings of Brazoria LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 200 and 999 creditors. The petition states funds will be available to unsecured creditors. About West Brazos Stewart Property Holdings of Brazoria LLC West Brazos Stewart Property Holdings of Brazoria LLC is a real estate holding company that owns properties used for Stewart's Food Stores grocery operations in Brazoria, Texas. West Brazos Stewart Property Holdings of Brazoria LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-80318) on July 11, 2025. In its petition, the Debtor reports estimated assets between $10 million and $50 million and estimated liabilities $1 million and $10 million. The Debtors are represented by Genevieve Marie Graham, Esq. at Genevieve Graham Law, PLLC. WHITESTONE CROSSING: Seeks to Extend Cash Collateral Access ----------------------------------------------------------- Whitestone Crossing Austin, LLC asked the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, for authority to use cash collateral. The Debtor intends to use cash collateral, including rental income and funds on hand, to continue operations during its Chapter 11 bankruptcy case, which was filed on May 12. The Debtor owns and operates an apartment complex in Cedar Park, Texas, and relies solely on rental income to fund essential expenses such as utilities, insurance, employee salaries, and property maintenance. The Debtor borrowed $17 million in 2021 from LFT CRE 2021-FL1, Ltd., an exempted company incorporated under the laws of the Cayman Islands, acting by and through Lument Real Estate Capital LLC. All of the Debtor's cash is encumbered by that loan. The Debtor intends to use these funds with the consent of Lument, which will receive adequate protection in the form of replacement liens and superpriority claims. The Debtor argued that the use of cash collateral is critical to avoid service interruptions and prevent irreparable harm to the estate. A court hearing is set for August 5. The Debtor was previously granted interim authority to use up to $32,000 in cash collateral. This interim authority expired on July 10. About Whitestone Crossing Austin Whitestone Crossing Austin, LLC operates Whitestone Crossing, an apartment community located in Cedar Park, Texas. The property offers one- and two-bedroom units featuring modern amenities such as nine-foot ceilings, fiber-ready internet, and in-home washers and dryers. The community also provides facilities including a swimming pool, clubhouse, and fitness center. Whitestone Crossing Austin sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-31768) on May 12, 2025. In its petition, the Debtor reported estimated assets and liabilities between $10 million and $50 million. Judge Stacey G. Jernigan handles the case. The Debtor is represented by Abhijit Modak, Esq., at Abhijit Modak, Attorney at Law. Lument Real Estate Capital LLC, as lender, is represented by: Brent McIlwain, Esq. Christopher A. Bailey, Esq. Holland & Knight, LLP 1722 Routh Street, Suite 1500 Dallas, TX 75201 Telephone: 214.969.1700 brent.mcilwain@hklaw.com chris.bailey@hklaw.com WOLFSPEED INC: Common Stock Transfer Protocol Approved ------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Texas entered an order establishing procedures with respect to trade and transfers of, and claims of worthless stock deductions by a majority stockholder with respect to, its beneficial ownership of common stock issued by Wolfspeed Inc. and its debtor-affiliates, including options to acquire beneficial ownership of such common stock. For purposes of entity that beneficial owns, directly or indirectly at least 7,003,253 shares of Common Stock and a "majority stockholder" is any person that beneficial owns at least 77,821,394 shares of common stock or any person that would be a "50-percent shareholder" of common stock if such person claimed a worthless stock deduction with respect to its beneficial ownership of such securities. Procedures are available on the case website and on the docket of Chapter 11 cases, No. 25-90163, which can be accessed via PACER at https://www.pacer.gov. For additional information and inquiries about these cases, please view: https://www.wolfspeedforward.com/ or call the numbers listed below. U.S. & Canada based parties should use the toll free number below. International parties should use the non-U.S. numbers: Toll Free #: (888) 818-4267, or Non-U.S. #: +1 (971) 606-5246. About Wolfspeed Inc. Wolfspeed, Inc. (NYSE:WOLF) is an innovator of wide bandgap semiconductors, focused on silicon carbide materials and devices for power applications. Its product families include silicon carbide materials and power devices targeted for various applications such as electric vehicles, fast charging and renewable energy and storage. On June 30, 2025, Wolfspeed, Inc. and Wolfspeed Texas, LLC each filed petitions seeking relief under chapter 11 of the United States Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90163), with Judge Christopher M. Lopez presiding. The Debtors sought Chapter 11 protection after reaching a deal with lenders on a debt-for-equity plan that would reduce debt by $4.6 billion. Latham & Watkins LLP and Hunton Andrews Kurth LLP are serving as legal counsel to Wolfspeed, Perella Weinberg Partners is serving as financial advisor and FTI Consulting is serving as restructuring advisor. Epiq is the claims agent. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to the senior secured noteholders and Moelis & Company is serving as the senior secured noteholders' financial advisor. Kirkland & Ellis LLP is serving as legal counsel to Renesas Electronics Corporation, PJT Partners is serving as its financial advisor, and BofA Securities is serving as its structuring advisor. Ropes & Gray LLP is serving as legal counsel to the convertible debtholders and Ducera Partners is serving as financial advisor to the convertible debtholders. WOODCREST CONDOMINIUMS: Case Summary & Six Unsecured Creditors -------------------------------------------------------------- Debtor: Woodcrest Condominiums IX, LLC 454-460 Woodcrest Drive SE Washington, DC 20036 Business Description: Woodcrest Condominiums IX, LLC develops and owns residential units within Woodcrest Villas, a townhome community located in the Congress Heights neighborhood of Southeast Washington, D.C. The Company is engaged in residential building construction and holds multiple units at the site. The development features two- and three-bedroom floor plans with up to 2,400 square feet of living space, near Metro stations and major highways. Chapter 11 Petition Date: July 9, 2025 Court: United States Bankruptcy Court District of Columbia Case No.: 25-00265 Judge: Hon. Elizabeth L. Gunn Debtor's Counsel: Brent C. Strickland, Esq. WHITEFORD, TAYLOR & PRESTON, L.L.P. 8830 Stanford Blvd. Suite 400 Columbia, MD 21045 Tel: (410) 347-9402 E-mail: bstrickland@whitefordlaw.com Total Assets: $1,311,000 Total Liabilities: $4,000,000 Roger Black, in his capacity as managing member, signed the petition. A full-text copy of the petition, which includes a list of the Debtor's six unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/ONZA3XY/Woodcrest_Condominiums_IX_LLC__dcbke-25-00265__0001.0.pdf?mcid=tGE4TAMA WOODMAN INVESTMENT: Deal to Use LA Buyer's Cash Collateral OK'd --------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California, San Fernando Valley Division approved a stipulation between Woodman Investment Group, LLC and secured creditor LA Buyer, LLC regarding the use of cash collateral. Under the stipulation, LA Buyer consents to the Debtor's use of cash collateral strictly for necessary property maintenance, with any monthly surplus to be paid to LA Buyer as protection. As further protection, LA Buyer will receive a replacement lien on post-petition revenues, limited to any reduction in cash collateral value caused by the Debtor's use. These liens are valid, enforceable, and automatically perfected. Meanwhile, monthly payments to protect LA Buyer will continue until the court orders otherwise or the Debtor's reorganization plan is confirmed. Any missed payments or monthly income and expense reports by the Debtor will constitute a default, allowing LA Buyer to seek immediate relief from the court. Both parties retain all legal rights and remedies and any modification to the stipulation must be in writing or ordered by the court. The agreement is binding on both parties and their successors, and LA Buyer's replacement lien will survive any dismissal of the Debtor's bankruptcy case. The stipulation remains in effect until modified by court order, superseded by a new stipulation, confirmation of a Chapter 11 plan, or conversion or dismissal of the bankruptcy case, whichever occurs first. About Woodman Investment Group Woodman Investment Group, LLC owns the retail shopping center at 6801-6817 Woodman Avenue in Van Nuys, Calif. The property is valued at $12 million based on comparable sales in the area. Woodman Investment Group sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-10775) on May 2, 2025. In its petition, the Debtor reported total assets of $12,338,987 and total liabilities of $27,605,068. Judge Martin R. Barash handles the case. Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger is the Debtor's bankruptcy counsel. LA Buyer, LLC, as lender, is represented by: Jackson Waste, Esq. Fennemore, LLP 8080 N. Palm Avenue, Third Floor Fresno, CA 93711 Phone: 559.446.3203 Fax: 559.432.4590 jwaste@fennemorelaw.com WORKSPORT LTD: Posts Record Sales for Second Straight Month ----------------------------------------------------------- Worksport Ltd. announced that May 2025 sales reached $1.28 million, marking the Company's second consecutive month of record-breaking revenue (non-audited). Gross Margins continue to improve notably, as Worksport's Made-in-USA cover line continues to gain significant traction. Worksport's April and May 2025 revenues alone have surpassed total Q1 2025 revenue, signaling strong momentum entering the second half of the year. * Gross Margin Expansion: May gross margins improved 25% over Q1 2025 levels, bringing margins closer to 23%, driven by the Company's focus on higher-value branded products and greater operational efficiency at its New York manufacturing facility, where products use over 90% domestic content. Management projects gross margins to trend toward 30% by year-end, reflecting expected scale benefits and continued cost optimizations. The Company expects cash-flow positivity to be achieved towards year-end. * Distribution Network and Growth Outlook: Worksport's active dealer network has expanded from 94 in Q4 2024 to over 550 today, including two major national distributors added this spring. Steven Rossi, CEO of Worksport Ltd., commented: "The month of May marks another record, reinforcing that our American-made tonneau covers and strategic B2B expansion are delivering real, repeatable results. We expect June 2025 to be even stronger as our newest national distributors ramp up orders. With our SOLIS and COR clean-tech products launching this fall, we believe 2025 will prove to be another breakout year that firmly sets Worksport on a path to long-term growth with a keen focus on strong EBITA." 2025 Revenue and Profitability Outlook: Building on revenue of $1.5 million in 2023 and $8.5 million in 2024, Worksport projects reaching approximately $20 million by year-end 2025 -- a scale designed to deliver cash flow positivity and support sustained profitability. Notably, the Company's current market capitalization remains below this year's projected revenue, highlighting what management views as a meaningful investment opportunity. Further upside is expected with the anticipated fall 2025 launch of the SOLIS solar tonneau cover and COR portable nano-grid power system, targeting multi-billion-dollar clean energy and portable power markets. Management believes these high-margin, IP-protected products will accelerate significant consistent growth for the years ahead. About Worksport Ltd. West Seneca, N.Y.-based Worksport Ltd., through its subsidiaries, designs, develops, manufactures, and owns intellectual property on a portfolio of tonneau cover, solar integration, portable power station, and NP (Non-Parasitic), Hydrogen-based green energy products and solutions for the automotive aftermarket accessories, power storage, residential heating, and electric vehicle-charging industries. Buffalo, N.Y.-based Lumsden & McCormick, LLP, the Company's auditor since 2022, issued a "going concern" qualification in its report dated Mar. 27, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has suffered recurring losses from operations and has an accumulated deficit, that raise substantial doubt about its ability to continue as a going concern. The Company recorded a net loss of $16,163,789 for the year ended December 31, 2024, and has an accumulated deficit of $64,476,966 as of December 31, 2024. As of Dec. 31, 2024, the Company had $25,736,660 in total assets, $8,323,029 in total liabilities, and a total stockholders' equity of $17,413,631. WW INTERNATIONAL: Exits Chapter 11 With New $465M Loan ------------------------------------------------------ As previously reported, on May 6, 2025, WW International, Inc. and its subsidiaries WW North America Holdings, LLC, WW Canada Holdco, Inc., WW.com, LLC, W Holdco, Inc., WW Health Solutions, Inc., Weekend Health, Inc. and WW NewCo, Inc. filed voluntary petitions under chapter 11 of title 11 of the United States Code in the U.S. Bankruptcy Court for the District of Delaware to implement a prepackaged chapter 11 plan of reorganization that effectuates a financial restructuring of the Company's secured debt. Subsequently, on May 30, 2025, the Company Parties filed with the Court the First Amended Joint Prepackaged Plan of Reorganization of WW International, Inc. and its Debtor Affiliates, Docket No. 143. As previously reported, on June 17, 2025, the Court entered an order confirming the Plan. The Chapter 11 Cases are being administered under the caption In re WW International, Inc., et al., Case No. 25-10829. Capitalized terms used but not otherwise defined herein have the meanings given to them in the Plan. The Company disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on June 24, 2025, the conditions precedent to the effectiveness of the Plan were satisfied or waived, the Plan became effective and the Company Parties emerged from the Chapter 11 Cases. * Senior Secured Credit Agreement: On the Effective Date, the Company, as borrower, the lenders party thereto and Wilmington Savings Fund Society, FSB, as administrative agent, entered into a senior secured credit agreement. The Senior Secured Credit Agreement provides for $465.0 million in aggregate principal amount of senior secured term loans maturing on June 24, 2030. All obligations under the Senior Secured Credit Agreement are guaranteed by, subject to certain exceptions, each of the Company's current and future material subsidiaries. All obligations under the Senior Secured Credit Agreement, and the guarantees of those obligations, are or will be secured by substantially all of the assets of the Company and each guarantor organized in the United States, the United Kingdom and the Netherlands (subject to certain exceptions), including: * a pledge of 100% of the equity interests directly held by the Company and each Secured Guarantor in any subsidiary of the Company or any Secured Guarantor, subject to certain exceptions; and * a security interest in substantially all other tangible and intangible assets of the Company and each Secured Guarantor, subject to certain exceptions. The New Term Loan Facility will require the Company to prepay outstanding term loans, subject to certain exceptions, with: * 100% of the unrestricted cash held by the Company and its subsidiaries in excess of $100.0 million (which shall be calculated based on the average of the last 10 calendar days of the first fiscal quarter of each year), subject to certain qualifications, to be paid on the first anniversary of the Effective Date and annually each year thereafter; * 100% of the net cash proceeds of certain asset sales by the Company and its subsidiaries (including casualty and condemnation events, subject to de minimis thresholds), and subject to the right to reinvest 100% of such proceeds, subject to certain qualifications; and * 100% of the net cash proceeds of any issuance or incurrence of debt by the Company or any of its subsidiaries, other than certain debt permitted under the Senior Secured Credit Agreement. All prepayments of the principal balance of outstanding loans under the New Term Loan Facility are subject to: (1) customary "breakage" costs with respect to Term SOFR (as defined in the Senior Secured Credit Agreement) loans under the New Term Loan Facility and (2) other than mandatory prepayments of excess unrestricted cash as described, a prepayment premium of: (a) for the first eighteen months following the Effective Date, 2.00% of the aggregate principal amount of prepayments or refinancings of the New Term Loan Facility in excess of $200.0 million, (b) from the eighteen-month anniversary of the Effective Date to the second anniversary of the Effective Date, 2.00% of the aggregate principal amount of prepayments or refinancings of the New Term Loan Facility, and (c) from the second anniversary of the Effective Date to the third anniversary of the Effective Date, 1.00% of the aggregate principal amount of prepayments or refinancings of the New Term Loan Facility. Borrowings under the New Term Loan Facility will bear interest at a rate per annum equal to, at the Company's option, either (1) the sum of (x) a base rate determined by reference to the highest of (a) 0.50% per annum plus the Federal Funds Effective Rate (as defined in the Senior Secured Credit Agreement) as determined by the Federal Reserve Bank of New York, (b) the prime rate announced by WSFS and (c) Term SOFR plus 1.00% plus (y) 5.80% per annum; provided that such rate is not lower than a floor of 1.50% or (2) the sum of (x) Term SOFR plus (y) 6.80% per annum, provided that Term SOFR is not lower than a floor of 0.50%. The Senior Secured Credit Agreement contains other customary terms, including: (1) representations, warranties and affirmative covenants, (2) negative covenants, including limitations on indebtedness, liens, mergers, acquisitions, asset sales, investments, distributions, prepayments of subordinated debt, amendments of material agreements governing subordinated indebtedness, changes to lines of business and transactions with affiliates, in each case subject to baskets, thresholds and other exceptions, the availability of certain of which are subject to compliance with certain financial ratios, and (3) customary events of default. * Prepetition Credit Facility: On April 13, 2021, the Company, as borrower, the lenders party thereto and Bank of America, N.A., as administrative agent and an issuing bank, entered into a credit agreement. The Prepetition Credit Agreement provided for senior secured financing of $1,175.0 million in the aggregate, consisting of: (1) $1,000.0 million in aggregate principal amount of senior secured tranche B term loans maturing on April 13, 2028 and (2) a $175.0 million senior secured revolving credit facility (which included borrowing capacity available for letters of credit) maturing on April 23, 2026. On the Effective Date, pursuant to the Plan, all outstanding obligations under the Prepetition Credit Facilities and the Prepetition Credit Agreement were discharged and the liens and mortgages related thereto were released. At termination, approximately $1,116.0 million in aggregate principal amount remained outstanding under the Prepetition Credit Facilities. * Senior Secured Notes: On April 13, 2021, the Company issued $500.0 million in aggregate principal amount of its 4.500% Senior Secured Notes due 2029. The Notes were issued pursuant to an indenture, dated as of April 13, 2021, among the Company, the guarantors named therein and The Bank of New York Mellon, as trustee and notes collateral agent. On the Effective Date, pursuant to the Plan, all outstanding obligations under the Notes and the Indenture were discharged and the liens and mortgages related thereto were released. At termination, $500.0 million in aggregate principal amount of the Notes remained outstanding. * Cancellation of Prior Equity Securities: In accordance with the Plan, on the Effective Date, all equity securities in the Company outstanding prior to the Effective Date, including the Company's common stock, no par value, were canceled, released, and extinguished, and are of no further force or effect without any need for a holder of Old Common Stock to take further action with respect thereto. All restricted stock units, performance stock units and options (but not including any out-of-the-money options, which were deemed cancelled) issued by the Company pursuant to a prepetition employee incentive or other similar plan were deemed fully vested (at target level with respect to performance stock units) on the Effective Date. Furthermore, all of the Company's equity award agreements under any incentive plan were extinguished, canceled, and discharged and have no further force or effect. * Unregistered Sales of Equity Securities: On the Effective Date, in connection with the Company's emergence from the Chapter 11 Cases, the Company issued an aggregate of 10,000,000 shares of common stock, no par value per share. In accordance with the terms of the Plan, the Company distributed or will distribute a total of: (i) 9,100,000 shares of Common Stock to the holders of Allowed First Lien Claims and (ii) 900,000 shares of Common Stock to the holders of Existing Equity Interests. The issuance of the shares of Common Stock was exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 1145 of the Bankruptcy Code (which generally exempts from such registration requirements the issuance of securities under a plan of reorganization). * Changes in Control of the Company: On the Effective Date, all previously issued and outstanding equity interests in the Company were cancelled and extinguished. Pursuant to the Plan, the holders of Allowed First Lien Claims received 91% of the shares of the Common Stock. * Board of Directors: Pursuant to the terms of the Plan, on the Effective Date, Steven M. Altschuler, Tracey D. Brown, Denis F. Kelly, Thilo Semmelbauer and William H. Shrank ceased to be members of the Company's board of directors. On the Effective Date, the members of the Board were appointed in accordance with the Plan and the Confirmation Order. As of the Effective Date, the Board consists of seven directors (with one of the seven seats vacant), including continuing directors Tara Comonte, the Company's President and Chief Executive Officer, and Julie Bornstein, and the following four new directors: Eugene I. Davis. Mr. Davis, age 70, is the Chairman and Chief Executive Officer of PIRINATE Consulting Group, LLC, a privately held consulting firm that he founded in 1999 specializing in operational turnarounds and strategic planning advisory services. Over his career, he has acted in executive, board member and advisory roles in managing hundreds of debtor- and creditor-side pre- and post-restructuring assignments involving businesses in various industries. Prior to founding PIRINATE, Mr. Davis reorganized, operated, and managed multiple companies, serving as Chief Operating Officer of Total-Tel Communications, Inc., Vice Chairman and CEO of Sport Supply Group, Inc. and Vice Chairman and President of Emerson Radio Corporation. He also practiced law as a partner, shareholder and head of the Corporate & Securities practice at Holmes, Millard & Duncan, P.C., as a partner at Arter & Hadden LLP, and as an associate at Akin Gump Strauss Hauer & Feld LLP. Prior to that, Mr. Davis was an attorney and negotiator at oil and gas companies. Mr. Davis earned a B.A. in International Politics from Columbia College, a Master's in International Affairs from the School of International Affairs at Columbia University, and a J.D. from Columbia University School of Law. Mr. Davis is a director of Fossil Group, Inc. and Spirit Aviation Holdings, Inc. He was previously a director of Aeromexico Group, Babylon Holdings Limited, Bluestem Group Inc., F45 Training Holdings Inc., GTT Communications, Inc., Hawks Acquisition Corp, Hycroft Mining Holding Corporation, Loyalty Ventures Inc., MediaMath Holdings, Inc., Parker Drilling Company, PGX Holdings, Inc., Skillsoft Corp., Verso Corporation, and VICI Properties Inc. Mr. Davis serves as Chairman of the Board and on the Board's Audit Committee, Compensation and Benefits Committee and Nominating and Corporate Governance Committee. * J. Carney Hawks. Mr. Hawks, age 50, was a Founding Partner of Brigade Capital Management, a multi-billion-dollar asset management firm, from its inception in 2007 until his retirement from the company in December 2019. At Brigade, he was head of Special Situations, sat on the firm's Investment Committee and managed two energy-focused funds for the firm. Prior to Brigade, he was a Managing Director at Mackay Shields in its High Yield Group from 1998 to 2005. Mr. Hawks holds a B.S. in Commerce from the University of Virginia. He is a director of Ferrellgas Partners, L.P. and also serves as a director of the formerly publicly traded company Invacare Holdings Corporation. Mr. Hawks previously served as the Chairman of the Board of Directors and Chief Executive Officer of Hawks Acquisition Corp and as a director of Extraction Oil & Gas, Inc. (now Civitas Resources, Inc.). Mr. Hawks serves on the Board's Audit Committee and Compensation and Benefits Committee. * Michael Mason. Mr. Mason, age 59, spent his career at Eli Lilly and Company, a global pharmaceutical company. Most recently, he served as Executive Vice President and President of Lilly Diabetes and Obesity from January 2020 to January 2024. Prior to that, he held multiple other leadership positions at Lilly, including Senior Vice President, Global Insulin Business Unit in 2019, Vice President, U.S. Diabetes Business Unit from 2013 to 2018, President, Lilly Canada from 2011 to 2013, and Vice President, U.S. Neuroscience Business Unit Leader from 2009 to 2011. He also held various roles at Lilly in product development, marketing, supply chain and research and development, between 1989 and 2009. Mr. Mason received a B.S. in Chemical Engineering from Purdue University. Mr. Mason serves on the Board's Nominating and Corporate Governance Committee. * Nikolaj Sjoqvist. Mr. Sjoqvist, age 53, has been the Managing Member of Katalyst Advisory LLC, a firm providing operational advice to investment management firms, boards of directors and management teams on creating value, since 2023. He previously served as Senior Vice President & Chief Digital Officer at Waste Management, Inc., a leading provider of comprehensive environmental solutions, from 2017 to 2022, and as Vice President of Revenue Management from 2012 to 2017. Prior to that, he served as an Associate Principal in the Marketing & Sales practice at McKinsey & Company, a global management consulting firm, from 2007 to 2012. Mr. Sjoqvist held various roles in Europe and the United States from 1996 to 2006 at Compaq Computer and then Hewlett-Packard following its acquisition of Compaq. He began his career in corporate finance and audit roles at Price Waterhouse. Mr. Sjoqvist holds a B.A. in Business Studies from Oxford Brookes University and an M.B.A. from the Kellogg School of Management at Northwestern University. Mr. Sjoqvist serves on the Board's Audit Committee and Nominating and Corporate Governance Committee. Each new director qualifies as an "independent director" under Nasdaq listing standards. Each new director will receive the Company's standard cash compensation provided to the Company's non-employee directors for service on the Board (which currently consists of an annual cash retainer of $90,000 for service on the Board and additional cash retainers for committee service or service as chairman of the Board, in each case, payable quarterly), as described further in the Company's Definitive Proxy Statement on Schedule 14A filed with the SEC on April 21, 2025. Such amounts shall be prorated with respect to fiscal 2025 based on the new directors' time of service on the Board and its committees during fiscal 2025. Following the Effective Date, it is expected that the Board will establish a new equity compensation program for non-employee directors pursuant to which non-employee directors will be compensated. Except as described herein, there were no arrangements or understandings pursuant to which the new directors were elected as directors, and there are no related party transactions between the Company and the new directors reportable under Item 404(a) of Regulation S-K. * Management Incentive Plan: The Plan contemplates that, on or after the Effective Date, the Board shall be authorized to adopt and institute a management incentive plan, providing for the issuance of equity or equity-based awards equal to up to 10% of the shares of Common Stock. On June 24, 2025, in accordance with the Plan, the Board approved the WW International, Inc. 2025 Stock Incentive Plan (the "2025 Plan"). The 2025 Plan authorizes: (i) 1,000,000 shares of Common Stock for use with respect to awards under the 2025 Plan, subject to adjustment as provided in the 2025 Plan, and (ii) awards in the form of option, stock appreciation rights, restricted stock, restricted stock units and other stock-based and cash awards (including performance-based awards) to eligible participants, which include employees, directors and other services providers of the Company. The 2025 Plan is administered by the Compensation Committee of the Board and has a term of ten years from the date of approval by the Board. A copy of the 2025 Plan is filed as Exhibit 10.2 hereto and incorporated herein by reference. * Amendment to Articles of Incorporation or Bylaws; Change in Fiscal Year: Pursuant to the Plan, the Company amended and restated its articles of incorporation and bylaws, each of which became effective on the Effective Date. The Articles authorizes the Company to issue up to 1,000,000,000 shares of Common Stock and up to 250,000,000 shares of preferred stock, no par value. Principal changes to the Articles: Preferred Stock: The Articles grant the Board the power to fix the relative rights and preferences of any class of shares of Preferred Stock by resolution and adoption of an amendment to the Articles. Board of Directors: The Articles provide for one class of directors. The directors are to be elected to serve terms expiring at the next annual meeting of shareholders. Subject to the rights of holders of any Preferred Stock and any limitations set forth in the Virginia Stock Corporation Act, (i) directors may be removed with or without cause by the affirmative vote of a majority of the voting power of the stock outstanding and entitled to vote thereon and (ii) any vacancies in the Board may be filled by the Board or by the shareholders entitled to vote on the election of directors. The Articles further provide that (a) in an uncontested election of directors, directors shall be elected by a majority of the votes cast by shares entitled to vote in the election and (b) in a contested election of directors, directors shall be elected by a plurality of the votes cast by shares entitled to vote in the election. Amendments to the Bylaws: The Articles permit amendments to the Bylaws to be approved by either the Board or a majority of the then outstanding shares of stock entitled to vote generally in the election of directors. Special Stockholder Meetings: The Articles provide that a special meeting of the shareholders may be called by order of the Board, the chairman of the Board or the President of the Company or upon the written request of 25% of the then outstanding shares of stock entitled to vote generally in the election of directors. Exclusive Forum: The Articles provide that, unless the Company selects or consents in writing to the selection of an alternative forum, the United States District Court for the Eastern District of Virginia (or, if the United States District Court for the Eastern District of Virginia lacks subject matter jurisdiction, another state or federal court located within the Commonwealth of Virginia) is the sole and exclusive forum for certain shareholder derivative or state corporate law claims, and that the federal district courts of the United States are the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act. Principal changes to the Bylaws: Special Meetings: The Bylaws provide that for a special meeting of the shareholders to be called by the chairman of the Board or the Secretary of the Company upon written request of the shareholders, the shareholder must have given timely notice thereof in writing to the Secretary of the Company, which notification must: * state the business (including the identity of nominees for election as a director, if any) proposed to be acted on at the meeting; * bear the date of signature of each such person (or duly authorized agent) submitting the special meeting request; * contain the information required by the Bylaws with respect to any director nominations or other business proposed to be presented at the special meeting; * include documentary evidence that the requesting persons own the requisite percent as of the record date for such special meeting; and * be delivered to the Secretary at the principal executive offices of the Company, by hand or by certified or registered mail, return receipt requested, within 60 days after the ownership record date. The Bylaws provide that the date, time and place of the special meeting shall be fixed by the Board and the date of the special meeting shall not be more than 45 days after the date on which the Board fixes the date of the special meeting. A special meeting request shall not be valid, and the Company shall not call a special meeting if, among other things, the special meeting request is delivered during the period commencing 90 days prior to the first anniversary of the preceding year's annual meeting and ending on the date of the next annual meeting of shareholders. Advance Notice Requirements: The Bylaws establish an advance notice procedure with respect to certain matters, including nominations of persons for election as directors and shareholder proposals, to be brought before an annual meeting of shareholders. The Bylaws set forth various informational requirements that must be followed in connection with submitting director nominations and any other business for consideration at a shareholders meeting. The Bylaws provide that to be timely notice must be given, either by personal delivery or by United States mail, postage prepaid, to, and received by, the Secretary of the Company (i) not less than 90 days nor more than 120 days before the first anniversary of the date of the filing of the Company's proxy statement in connection with the last annual meeting or shareholders or (ii) if no annual meeting was held in the previous year or the date of the applicable meeting has been changed by more than 30 days from the date of the previous year's annual meeting, not less than 60 days before the date of the applicable annual meeting. Minimum Size of Board. The Bylaws establish that the number of directors on the Board may be increased to any number, not more than 15 directors, or decreased to any number, not fewer than five directors, by resolution of the Board. Record Date. For the purpose of making shareholder determinations (including, but not limited to, determining shareholders entitled to notice of, or to vote at, any meeting of shareholders (or any adjournment thereof)), the Board may fix in advance a record date that is not more than 60 nor less than 10 days prior to the date on which the particular action requiring such determination of shareholders is to be taken. Fiscal Year End Change: On June 23, 2025, the Board approved changing the Company's previous 52- or 53-week fiscal year ending on the Saturday closest to December 31 to a fiscal year coincident with the calendar year. The Company's 2025 fiscal year that began on December 29, 2024 will end on December 31, 2025 and fiscal years 2026 and beyond will begin on January 1 and end on December 31 of the applicable year. The Company's Quarterly Report on Form 10-Q for the second quarter of fiscal 2025 will now cover the period from March 30, 2025 to June 30, 2025; and the Company's Quarterly Report on Form 10-Q for the third quarter of fiscal 2025 will now cover the period from July 1, 2025 to September 30, 2025. The Company's quarterly results for subsequent fiscal years will be for quarterly periods ending March 31, June 30 and September 30 of each year. The Company is not required to file a transition report with respect to this change. Further information, including full text copies of the Confirmation Order, Reorganization Plan, Amended Charter and Bylaws (and marked versions), Credit Agreement, and 2025 Stock Incentive Plan, are attached as exhibits to the Form 8-K filed on June 25, 2025, available at https://tinyurl.com/3mmmyf6x. About WW International Inc. WW International, Inc. provides weight control programs. It offers subscriptions for commitment plans that give their clients access to meetings and online subscriptions and give their members guidance and access to a supportive community to help enable them for healthy habits. WW International filed Chapter 11 petition (Bankr. D. Del. Case No. 25-10829) on May 6, 2025. In the petition signed by Felicia DellaFortuna, chief financial officer, the Debtor disclosed between $1 billion and $10 billion in both assets and liabilities. Judge Craig T. Goldblatt oversees the case. The Debtor is represented by Christin Cho, Esq. and Simon Franzini, Esq., at Dovel & Luner, LLP. * * * This concludes the Troubled Company Reporter's coverage of WW International, Inc. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. X4 PHARMACEUTICALS: Inks $40M Purchase Deal With Lincoln Park ------------------------------------------------------------- X4 Pharmaceuticals, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company and Lincoln Park Capital Fund, LLC entered into a purchase agreement and a registration rights agreement, pursuant to which the Company has the right to sell to Lincoln Park shares of the Company's common stock, par value $0.001 per share, having an aggregate value of up to $40,000,000, subject to certain limitations and conditions set forth in the Purchase Agreement. The Company will control the timing and amount of any sales of Purchase Shares to Lincoln Park pursuant to the Purchase Agreement. Under the Purchase Agreement, on any business day after June 23, 2025 selected by the Company over the 24-month term of the Purchase Agreement, the Company may direct Lincoln Park to purchase up to 30,000 shares of Common Stock on such Purchase Date if the closing sale price per share of the Common Stock on the Nasdaq Capital Market is not below $0.50 on the applicable Purchase Date; provided, however, that: (i) a Regular Purchase may be increased to up to 35,000 shares, if the closing sale price per share of the Common Stock on Nasdaq is not below $3.50 on the applicable Purchase Date; (ii) a Regular Purchase may be increased to up to 40,000 shares, if the closing sale price per share of the Common Stock on Nasdaq is not below $4.00 on the applicable Purchase Date; (iii) a Regular Purchase may be increased to up to 50,000 shares, if the closing sale price per share of the Common Stock on Nasdaq is not below $4.50 on the applicable Purchase Date; and (iv) a Regular Purchase may be increased to up to 60,000 shares, if the closing sale price per share of the Common Stock on Nasdaq is not below $5.00 on the applicable Purchase Date; provided, that Lincoln Park's maximum purchase obligation under any single Regular Purchase will not exceed $500,000, unless the Company and Lincoln Park mutually agree to increase the maximum amount of such Regular Purchase. The above-referenced share amount limitations and closing sale price thresholds are subject to adjustment for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction as provided in the Purchase Agreement. The purchase price per share for each such Regular Purchase will be equal to 97% of the lesser of: * the lowest sale price for the Common Stock on Nasdaq on the date of sale; or * the average of the three (3) lowest closing sale prices for the Common Stock on Nasdaq during the ten (10) consecutive business days ending on the business day immediately preceding the purchase date. The Company also has the right to direct Lincoln Park, on any business day on which the Company has properly submitted a Regular Purchase notice for the maximum amount the Company is then permitted to sell to Lincoln Park in such Regular Purchase, to purchase an additional amount of the Common Stock of up to the lesser of: * 300% of the number of shares to be purchased pursuant to such Regular Purchase; and * 30% of the aggregate shares of the Common Stock traded on Nasdaq during all or, if certain trading volume or market price thresholds specified in the Purchase Agreement are crossed on the applicable Accelerated Purchase date, the portion of the normal trading hours on the applicable Accelerated Purchase date prior to such time that any one of such thresholds is crossed, which period of time on the applicable Accelerated Purchase date is referred to as the Accelerated Purchase Measurement Period. The parties may mutually agree to increase the number of shares to be purchased by Lincoln Park pursuant to any Accelerated Purchase. The purchase price per share for each such Accelerated Purchase will be equal to 97% of the lessor of: * the volume-weighted average price of the Common Stock on Nasdaq during the applicable Accelerated Purchase Measurement Period on the applicable Accelerated Purchase date; or * the closing sale price of the Common Stock on Nasdaq on the applicable Accelerated Purchase date. The Company has the right in its sole discretion to set a minimum price threshold for each Accelerated Purchase in the notice provided with respect to such Accelerated Purchase. The Company also has the right to direct Lincoln Park on any business day on which an Accelerated Purchase has been completed and all of the shares to be purchased thereunder have been properly delivered to Lincoln Park in accordance with the Purchase Agreement to purchase an additional amount of the Common Stock of up to the lesser of: * 300% of the number of shares purchased pursuant to the applicable corresponding Regular Purchase; or * 30% of the aggregate shares of the Common Stock traded on Nasdaq during all or, if certain trading volume or market price thresholds specified in the Purchase Agreement are crossed on the applicable Additional Accelerated Purchase date, the portion of the normal trading hours on the applicable Additional Accelerated Purchase date prior to such time that any one of such thresholds is crossed, which period of time on the applicable Additional Accelerated Purchase date is referred to as the Additional Accelerated Purchase Measurement Period. The parties may mutually agree to increase the number of shares to be purchased by Lincoln Park pursuant to any Additional Accelerated Purchase. The Company may, in its sole discretion, submit multiple Additional Accelerated Purchase notices to Lincoln Park on a single Accelerated Purchase date, provided that all prior Accelerated Purchases and Additional Accelerated Purchases (including those that have occurred earlier on the same day) have been completed and all of the shares to be purchased thereunder have been properly delivered to Lincoln Park in accordance with the Purchase Agreement. The purchase price per share for each such Additional Accelerated Purchase will be equal to 97% of the lower of: * the volume-weighted average price of the Common Stock on Nasdaq during the applicable Additional Accelerated Purchase Measurement Period on the applicable Additional Accelerated Purchase date; or * the closing sale price of the Common Stock on Nasdaq on the applicable Additional Accelerated Purchase date. In the case of Regular Purchases, Accelerated Purchases and Additional Accelerated Purchases, the purchase price per share will be equitably adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction occurring during the business days used to compute the purchase price. Other than as described above, there are no trading volume requirements or restrictions under the Purchase Agreement, and the Company will control the timing and amount of any sales of Common Stock to Lincoln Park. The Purchase Agreement prohibits the Company from directing Lincoln Park to purchase any shares of Common Stock if those shares, when aggregated with all other shares of Common Stock then beneficially owned by Lincoln Park (as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and Rule 13d-3 thereunder), would result in Lincoln Park beneficially owning more than 4.99% of the then total outstanding shares of Common Stock. Lincoln Park, upon written notice to the Company, may increase its Beneficial Ownership Cap to up to 9.99%. Any increase in Lincoln Park's Beneficial Ownership Cap will not be effective until the 61st day after such written notice is delivered to the Company. The Purchase Agreement does not limit the Company's ability to raise capital from other sources at its sole discretion, except that, subject to certain exceptions, for a period set forth in the Purchase Agreement, the Company may not enter into any equity line of credit or substantially similar continuous offering other than with Lincoln Park, excluding an "at the market offering" of Common Stock exclusively through one or more registered broker dealers. The Purchase Agreement and Registration Rights Agreement each contain customary representations, warranties, and agreements of the Company and Lincoln Park, indemnification rights and other obligations of the parties. The Offering of Common Stock pursuant to the Purchase Agreement will terminate on the date that all shares offered by the Purchase Agreement have been sold or, if earlier, the expiration or termination of the Purchase Agreement. The Company has the right to terminate the Purchase Agreement at any time, without fee, penalty or cost to the Company. Lincoln Park has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Common Stock. In consideration for entering into the Purchase Agreement, the Company agreed to issue 137,099 shares of Common Stock to Lincoln Park as a commitment fee. The Company will not receive any cash proceeds from the issuance of the Commitment Shares. Under applicable rules of Nasdaq, the Company may not issue or sell to Lincoln Park under the Purchase Agreement more than 19.99% of the shares of the Common Stock outstanding immediately prior to the execution of the Purchase Agreement (or 1,435,035 shares, which includes the Commitment Shares, based on 7,178,764 shares outstanding immediately prior to the execution of the Purchase Agreement prior to the issuance of the Commitment Shares), unless: (i) the Company obtains stockholder approval to issue shares of its common stock in excess of the Exchange Cap to Lincoln Park under the Purchase Agreement in accordance with applicable Nasdaq rules or (ii) the average price of all applicable sales of Common Stock to Lincoln Park under the Purchase Agreement equals or exceeds $2.67 per share, which is the lower of (A) the official closing price of the Common Stock on Nasdaq on the date immediately preceding the execution Purchase Agreement and (B) the average official closing price of the Common Stock on Nasdaq for the five consecutive trading days immediately preceding date of the Purchase Agreement, such that the transactions contemplated by the Purchase Agreement are exempt from the Exchange Cap limitation under applicable Nasdaq rules. The aggregate net proceeds under the Purchase Agreement to the Company will depend on the frequency and prices at which shares of Common Stock are sold to Lincoln Park. Actual sales of shares of Common Stock to Lincoln Park under the Purchase Agreement and the amount of such net proceeds will depend on a variety of factors to be determined by the Company from time to time, including (among others) market conditions, the trading price of the Common Stock and determinations by the Company as to other available and appropriate sources of funding for the Company. The Company expects to use any proceeds from the sale of the Purchase Shares for working capital and general corporate purposes. The issuance of the Purchase Shares and Commitment Shares have been registered pursuant to the Company's effective shelf registration statement on Form S-3 (File No. 333-273961), and the related base prospectus included in the Registration Statement, as supplemented by a prospectus supplement filed on June 23, 2025. The Purchase Agreement and Registration Rights Agreement contain customary representations and warranties, covenants and indemnification provisions that the parties made to, and solely for the benefit of, each other in the context of all of the terms and conditions of such agreements and in the context of the specific relationship between the parties thereto. The provisions of the Purchase Agreement and Registration Rights Agreement, including any representations and warranties contained therein, are not for the benefit of any party other than the parties thereto and are not intended as documents for investors and the public to obtain factual information about the current state of affairs of the parties thereto. Rather, investors and the public should look to other disclosures contained in the Company's annual, quarterly and current reports the Company may file with the Securities and Exchange Commission. The legal opinion and copies of the Purchase Agreement and Registration Rights Agreement (Exhibits 5.1, 10.1, and 10.2) are filed with the Company's Form 8-K dated June 23, 2025, available at https://tinyurl.com/4y753yhr ZILLA ELECTRIC: Seeks Subchapter V Bankruptcy in Maryland --------------------------------------------------------- On July 11, 2025, Zilla Electric LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Maryland. According to court filing, the Debtor reports between $100,000 and $500,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Zilla Electric LLC Zilla Electric LLC is an electrical contracting company based in Maryland. Zilla Electric LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 25-16314) on July 11, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge Nancy V. Alquist handles the case. The Debtors are represented by Geri Lyons Chase, Esq. at Law Office Of Geri Lyons Chase. [] Corporate Bankruptcies Shift to Reorg. Over Liquidation in 2025 ------------------------------------------------------------------ Sean Longoria and Annie Sabater and S&P Global reports that corporate bankruptcy filings in 2025 have continued to favor reorganization over liquidation, extending a trend seen in the prior year, 2024. According to the latest data from S&P Global Market Intelligence, 227 of the 371 corporate bankruptcies filed in the first half of 2025 -- about 61.2% -- sought to restructure operations. Revised data for 2024 also shows a strong preference for reorganization, with 56.3% of 688 filings pursuing restructuring, slightly down from an earlier estimate of 62.7% of 695 cases. Market Intelligence regularly updates its bankruptcy data to reflect new information. The 2025 filing pace is on track to surpass most annual totals since 2010, with a growing number of companies opting to reorganize rather than liquidate. This continues a shift toward restructuring that became more pronounced starting in mid-2024. However, prior periods—such as the post-COVID onset and 2018–2019—saw liquidation become the more common path, according to S&P Global. Reorganizations have led monthly bankruptcy filings since mid-2024, but patterns vary by sector. In the financial sector, only 3 of 13 filings -- Charter School Capital Inc., GreenFi, and Caymus Funding Inc. -- pursued reorganization, the lowest proportion of any industry at just over 23%. Notably, several financial sector bankruptcies were involuntary, initiated by creditors rather than the companies themselves, the report states. Sector classifications were unavailable for 155 of the 2025 filings recorded so far, according to report. [] Greenberg Traurig's Shapiro Honored for Bankruptcy Leadership ---------------------------------------------------------------- Keith Shapiro, co-founder and former managing shareholder of the Chicago office of global law firm Greenberg Traurig, LLP, received the Emanuel M. Katten Award. The annual award, presented at the Association of Insolvency & Restructuring Advisors (AIRA)'s annual Bankruptcy and Restructuring Conference, is given to an individual who has demonstrated exceptional leadership, dedication, and service to the bankruptcy, restructuring, and turnaround field. "We are immensely proud of our colleague and friend, Keith, for being recognized for his extraordinary lifetime achievements and dedication to the restructuring legal field," Greenberg Traurig's Global Restructuring & Bankruptcy Practice Co-Chair Shari L. Heyen and Chicago Restructuring & Bankruptcy Practice Chair Nancy A. Peterman said in a joint statement. "Throughout his distinguished 42-year career, Keith has left an indelible mark on not only the firm's Restructuring & Bankruptcy Practice, but on clients and the entire legal industry. His vision, leadership, and commitment continue to inspire a higher standard of excellence. We are beyond grateful for Keith's profound impact and the inspiring legacy he continues to build." A global leader in the restructuring community, Shapiro serves as the chairman emeritus of the firm's global Restructuring & Bankruptcy Practice and previously served as chairman of the board and president of the American Bankruptcy Institute, a member of the Turnaround Management Association's international board of directors, a member of INSOL International's the international board of directors, and chair of the Chicago Bar Association's Bankruptcy and Reorganization committee. He is a fellow of the American College of Bankruptcy. Shapiro was the principal draftsman of the first ever health care amendments to the Bankruptcy Code and provided supporting Congressional testimony. According to its website, AIRA is a nonprofit professional association serving financial advisers, accountants, crisis managers, business turnaround consultants, lenders, investment bankers, attorneys, trustees, and other individuals involved in the fields of business turnaround, restructuring, bankruptcy, and insolvency. About Greenberg Traurig: Greenberg Traurig, LLP has more than 2,850 attorneys across 49 locations in the United States, Europe, the Middle East, Latin America, and Asia. The firm's broad geographic and practice range enables the delivery of innovative and strategic legal services across borders and industries. Recognized as a 2025 BTI "Best of the Best Recommended Law Firm" by general counsel for trust and relationship management, Greenberg Traurig is consistently ranked among the top firms on the Am Law Global 100, NLJ 500, and Law360 400. Greenberg Traurig is also known for its philanthropic giving, culture, innovation, and pro bono work. Web: http://www.gtlaw.com. [] J.S. Held Expands Bankruptcy Team With MorrisAnderson -------------------------------------------------------- Global consulting firm J.S. Held announces the acquisition of MorrisAnderson, a market leader in financial restructuring and operational consulting. The acquisition further strengthens J.S. Held's turnaround and restructuring, bankruptcy, transaction, and dispute advisory expertise that helps businesses overcome complex enterprise challenges and realize long-term, sustainable business value. Daniel F. Dooley, MorrisAnderson CEO, commenting on the transaction, shares, "Of the many benefits of the transaction are the geographic reach and broad industry expertise of J.S. Held. The expansive global office footprint will allow us to provide additional local support and a wider array of services to our clients." MorrisAnderson was recognized by Turnaround & Workouts as one of the Outstanding Turnaround Firms for 2024 and for many years for their work in: -- Turnaround and Restructuring, as Chief Restructuring Officer (CRO) in the Chapter 11 reorganization of US Realm and out of court CRO for a $275M logistics company -- Refinancing, as Financial Advisor specializing in debtor refinancing for a $700M protein processor, $250M construction products distributor, and $200M sporting goods manufacturer, among other matters spanning franchised restaurants, manufacturers, distributors, healthcare providers, and service companies -- Fiduciary Services, including their work on several cases as Liquidating Trustee -- Litigation Support, for multiple disputes J.S. Held Senior Managing Director Michael Jacoby, who joined J.S. Held as a result of the Phoenix Management acquisition in 2022, commenting on the acquisition, shares, "The entire Phoenix Team along with the team from Stapleton Group look forward to actively collaborating with our colleagues at MorrisAnderson and further applying our shared expertise to an increasingly diverse set of clients, law firms, private equity firms, and lenders." MorrisAnderson Team: The MorrisAnderson team has earned a reputation for: -- Deep knowledge and skills in distressed situations honed over 40 years working within the industry. -- Action oriented creativity, experts who not only advise, but manage plan implementation. -- Operational proficiency, leveraging first hand experience running a business to improve business performance. -- Consistent and reliable communication extending beyond the management team to keep all stakeholders informed. MorrisAnderson is led by nationally recognized restructuring, crisis management, operations improvement, debt refinancing, and C-level interim manager Dan Dooley and notable turnaround and transaction expert Mark Welch. Drawing on over 40 years of deep expertise across multiple industry sectors, MorrisAnderson team members are trusted advisors to restaurants, franchise businesses, distributors, manufacturers, including automotive, and energy, including coal, solar, and natural gas. MorrisAnderson, a part of J.S. Held As a part of J.S. Held, the experts from MorrisAnderson join a team with deep financial and operational expertise, spanning: -- Turnaround and Restructuring -- Bankruptcy, Receiverships, and Fiduciary Services -- Investment Banking Services -- Real Estate Solutions -- Investigations & Litigation Support -- Investor Support Services -- Operational Value Creation -- Office of the CFO & Corporate Finance Support -- Distressed Agribusiness Services -- Independent Director and Interim Management (CRO, CEO, CFO, COO) Together, the team now includes over 75 professionals. MorrisAnderson Principal Mark J. Welch reflects on the expanded team, sharing, "The expertise at J.S. Held will be important to support our strong deal flow, enhancing our ability to scale leveraging J.S. Held experts is incredibly valuable to us and our clients." Lee Spirer, Chief Executive Officer of J.S. Held, observes, "Among many qualities that were attractive to us in this acquisition is the unique combination of entrepreneurial and visionary leaders with an unwavering focus on operations that helps clients maximize enterprise value." As a result of the transaction, MorrisAnderson clients now have access to more than 1,500 technical, scientific, financial, and strategic experts across five continents who provide specialized, complementary expertise in areas including business enterprise and intellectual property strategy and valuation; compliance and regulatory consulting; forensic accounting; environmental consulting; M&A regulatory response; dispute advisory; ESG and sustainability consulting; cybersecurity; and independent director and interim management, among others. To learn more about clients served by MorrisAnderson, a part of J.S. Held, visit: https://www.morrisanderson.com/case-studies/. About J.S. Held J.S. Held is a global consulting firm that combines technical, scientific, financial, and strategic expertise to advise clients seeking to realize value and mitigate risk. Our professionals serve as trusted advisors to organizations facing high stakes matters demanding urgent attention, staunch integrity, proven experience, clear-cut analysis, and an understanding of both tangible and intangible assets. The firm provides a comprehensive suite of services, products, and data that enable clients to navigate complex, contentious, and often catastrophic situations. More than 1,500 professionals serve organizations across six continents, including 84% of the Global 200 Law Firms, 75% of the Forbes Top 20 Insurance Companies (90% of the NAIC top 50 Property & Casualty Insurers), and 71% of the Fortune 100 Companies. Verdantix, in their Green Quadrant: Enterprise Risk Management Consulting Services (2025) report, benchmarks 15 of the most prominent enterprise risk management (ERM) advisors, identifying global consulting firm J.S. Held among the leading companies based on capabilities and momentum. J.S. Held, its affiliates and subsidiaries are not certified public accounting firm(s) and do not provide audit, attest, or any other public accounting services. J.S. Held is not a law firm and does not provide legal advice. Securities offered through PM Securities, LLC, d/b/a Phoenix IB or Ocean Tomo Investments, a part of J.S. Held, member FINRA/SIPC. All rights reserved. [] Judge Sets Jackson Walker Fee Fight Mediation Deadline --------------------------------------------------------- James Nani of Bloomberg Law reports that a federal judge has given Jackson Walker LLP and the U.S. Trustee's office until 5 p.m. on July 15, 2025 to resolve a fee dispute through mediation or face trial. The litigation centers on allegations that Jackson Walker failed to disclose a romantic relationship between former partner Elizabeth Freeman and ex-Houston bankruptcy judge David R. Jones. According to the report, the mediation, initiated on June 16, 2025 and led by retired Judge Joan N. Feeney, marks the first such effort since the Justice Department's bankruptcy watchdog challenged $23 million in fees the firm earned in cases involving Freeman and Jones. The two sides agreed to mediation following a contentious May 2025 hearing where U.S. District Judge Alia Moses criticized late filings and confidential settlements the firm had reached with estate representatives. The U.S. Trustee claims Jackson Walker violated ethical obligations by not disclosing the relationship. The firm frequently appeared before Jones, who resigned in 2023 after the relationship became public. He had approved millions in fees for the firm and Freeman, and also mediated cases in which they were involved. Jackson Walker maintains it acted properly once it became aware of the relationship. Freeman left the firm in late 2022, according to Bloomberg Law. The dispute has impacted over 30 major bankruptcy cases tied to Jones and has triggered related civil and criminal investigations, the report states. The case is In Re: Professional Fee Matters Concerning the Jackson Walker Law Firm, No. 23-04787, U.S. District Court for the Southern District of Texas. [] Morrison Foerster Adds Bryan Kotliar to Restructuring Team ------------------------------------------------------------- Morrison Foerster, a leading global law firm, is pleased to announce the arrival of Bryan Kotliar as a partner in the Business Restructuring + Insolvency Group, in the New York office. Kotliar brings over a decade of valuable experience representing corporate borrowers, creditors, and other parties in interest in the distressed arena, in addition to substantial experience conducting discovery and witness examinations in chapter 11 cases. Kotliar joins Morrison Foerster from a New York-based boutique bankruptcy firm, where he was a partner and focused his practice on bankruptcy and out-of-court restructuring matters, with a particular focus on large, international, and complex chapter 11 cases typically involving significant litigation. "We are excited to welcome Bryan to our standout Restructuring team and to the firm," said Lorenzo Marinuzzi, co-chair of Morrison Foerster's Business Restructuring + Insolvency Group. "In addition to expanding our bench strength representing debtors and creditors, Bryan's significant bankruptcy litigation experience further reinforces our bankruptcy investigations and litigation capabilities, as well as increasing our ability to serve clients amid a robust market." Kotliar has represented debtors and creditors in some of the largest and most complex restructurings of the past decade. In particular, he has substantial experience representing debtors, secured and unsecured creditors, equity holders, foreign representatives, asset purchasers, investors, and others in connection with in- and out-of-court restructurings and other distressed situations. Prior to his last firm, Kotliar was a restructuring attorney at a leading global firm. "Morrison Foerster is a globally renowned firm with tremendous transactional and litigation capabilities and an exceptional Restructuring team, many of whom I've had the opportunity to work across the table from over the years," said Kotliar. "I am excited to work with my new colleagues on MoFo's premier platform to deliver results for our clients in their most complex bankruptcy and restructuring matters." [] Rubin and Rudman Partners Named Top Bankruptcy Lawyers --------------------------------------------------------- Rubin and Rudman is pleased to announce that Joseph Bodoff and Rion Vaughan, partners in the firm's Bankruptcy and Creditors' Rights practice, have been selected for inclusion in the 2025 Lawdragon 500 Leading Global Bankruptcy & Restructuring Lawyers list. The guide recognizes the "specialists in leveraged finance and restructuring, and litigators well-versed in financial litigation and distress." Joseph Bodoff brings over 45 years of experience in bankruptcy, insolvency and creditors' rights matters, and commercial litigation to his practice. He represents debtors, secured creditors, trade creditors, landlords, equity holders, purchasers of assets, and other interested parties across a wide range of industries in bankruptcy, Chapter 11 reorganizations and out-of-court workouts. His litigation experience includes prosecuting and defending preference and fraudulent transfer actions, successor liability claims, personal guaranties, and complex contract disputes. Bodoff is the author of the Creditors' Committee Manual (Sixth Edition), published by the American Bankruptcy Institute and a contributing author to the treatise Bankruptcy Business Acquisitions (Second Edition). He has been named to Boston Magazine's Top Lawyers List for Bankruptcy for four consecutive years (2021-2024) and a Massachusetts Super Lawyer for 11 years (2014-2024). Bodoff serves on the American Bar Association's Business Bankruptcy Committee. He is a former member of the Board of Directors and Executive Committee of the American Bankruptcy Institute. He received his B.S., with distinction, from Pennsylvania State University and his J.D. from Villanova University School of Law. Rion Vaughan has extensive experience in insolvency, distressed asset transactions, and complex commercial litigation. He represents clients in formal and out-of-court insolvency proceedings, including Chapter 11 reorganizations, liquidations, receiverships, distressed asset sales, and avoidance action litigation. Vaughan's practice spans several key areas, including bankruptcy restructuring, distressed financing, asset-based financing, commercial foreclosures, M&A transactions, and bankruptcy litigation in both state and federal courts. Vaughan is involved with the Turnaround Management Association, the American Bankruptcy Institute, and the National College of Bankruptcy Judges. He earned his J.D., cum laude, from Boston College Law School. Vaughan earned his B.A., magna cum laude, from Stonehill College. About Rubin and Rudman LLP Founded over a century ago, Rubin and Rudman is a full-service law firm with nearly 100 lawyers in Boston, Massachusetts. With a diverse mix of practices, Rubin and Rudman serves national and international companies, including large public companies and closely held businesses; real estate developers; biotechnology, pharmaceutical and medical device makers; regulated industries, public entities and municipalities; insurance companies and their insureds; educational and other institutions; non-profit organizations; families and high net worth individuals. Rubin and Rudman also has suburban offices in Andover and Woburn, Massachusetts. Web: www.rubinrudman.com. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA. Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The single-user TCR subscription rate is $1,400 for six months or $2,350 for twelve months, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each per half-year or $50 annually. For subscription information, contact Peter A. Chapman at 215-945-7000. *** End of Transmission ***