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250801.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, August 1, 2025, Vol. 29, No. 212 Headlines 210 SPRINGDALE: Unsecureds to Split $120K via Quarterly Payments 5612 9TH AVE: Voluntary Chapter 11 Case Summary 8TH STREET NE: Seeks Chapter 11 Bankruptcy in District of Columbia ALEXANDER TRUCKING: Engelman Berger Represents Claimants ARCHDIOCESE OF NEW ORLEANS: Working on Chap. 11 Plan Disclosures ARMELLINO ITALIAN: Gets Interim OK to Use Cash Collateral ARP HOSPITALITY: Seeks Chapter 11 Bankruptcy in New Jersey ASAP HIGHLINE: Seeks Chapter 11 Bankruptcy in New York AVALON SAI: To Sell Hotel Assets to Ankit Saroliya for $5.6MM B & H MANAGEMENT: Seeks Chapter 11 Bankruptcy in Virginia B&W INC: Gets Interim OK to Use Cash Collateral BARE ARMS: Gets Interim OK to Use Cash Collateral BIG BRAND: Unsecureds to Get Share of Consolidated Action Proceeds BIOTACTICS INC: Has Deal on Cash Collateral Access BKS CAMBRIA: Hires Wiley Ramey as Legal Counsel BMX TRANSPORT: Gets Interim OK to Use Cash Collateral Until Aug. 7 BOOTHE INVESTMENTS: Seeks Chapter 11 Bankruptcy in Massachusetts BOTICA LLC: Seeks Chapter 11 Bankruptcy in Georgia BRIGHT CARE: Hires Gatto McFerson LLP as Accountant BRUIN DIRECTORS: Seeks to Hire Leslie Cohen Law PC as Attorney BTG TEXTILES: Unsecureds Will Get 100% of Claims over 5 Years CHASEN CONSTRUCTION: Creditors Force Owner to Chapter 7 Liquidation CHC GROUP: Moody's Assigns 'B2' CFR, Outlook Stable CHESSWOOD GROUP: To Sell Bishop Equity Interest to North Mill CHS/COMMUNITY HEALTH: Fitch Rates $1.5BB First Lien Notes 'B' CHS/COMMUNITY HEALTH: Moody's Rates New Sec. Notes Due 2034 'Caa1' COOPER'S HAWK: S&P Withdraws 'CCC+' Issuer Credit Rating CORVIAS CAMPUS: Gets Court OK to Enter Mediation to Address Dispute CRESCENT ENERGY: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable D RAIL TRANSPORT: Seeks Chapter 11 Bankruptcy in Georgia DALIO HOLDINGS I: Seeks Chapter 11 Bankruptcy in Texas DALIO HOLDINGS: Case Summary & Three Unsecured Creditors DECO GROUP: Court Oks Restaurant Equipment Sale to Texan - 1836 DEL MONTE PACIFIC: Reports Net Loss $742.2MM in 4th Quarter DENOYER-GEPPERT: Seeks Subchapter V Bankruptcy in Illinois DESKTOP METAL: Secures Court Ok for $10MM Sale to Finance Ch. 11 DOC VENTURES: Court OKs Lubbock Property Sale for $180K DOLCHE TRUCKLOAD: Gets OK to Obtain Financing, Use Cash Collateral DRSN GROUP: Files Emergency Bid to Use Cash Collateral E.W. SCRIPPS: Fitch Hikes Rating on LongTerm IDR to 'CCC' ECHOSTAR CORP: Regulators Push for Spectrum Sale to Resolve Dispute ELITE PRINTING: Gets Final OK to Use Cash Collateral Until Sept. 8 EVALINA LLC: Case Summary & Three Unsecured Creditors FCI SAND OPERATIONS: Voluntary Chapter 11 Case Summary FCI SAND: Seeks Chapter 11 Bankruptcy in Texas FCI SOUTH: Voluntary Chapter 11 Case Summary FISCHER AG: Case Summary & 12 Unsecured Creditors FRED RAU: Court Extends Cash Collateral Access to Aug. 17 FRED RAU: Hires Boos & Associates LLC as Financial Consultant FRED RAU: Seeks to Hire Pearson Realty as Real Estate Broker GENESIS HEALTHCARE: Maine Nursing Homes Won't Close Despite Ch. 11 GILBERT LEGGETT: Gets OK to Use Cash Collateral Until Aug. 13 GOAK PROPERTIES: Hires HomeSmart a Rental Real Estate Agent HARRISBURG HOTEL: GGP To Sell Collateral on Aug. 27 HOPEMAN BROTHERS: Seeks to Extend Plan Exclusivity to Oct. 24 HUDSON RIVER: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable HUDSON SQUARE: Case Summary & 19 Unsecured Creditors IGNITE OPTICSY: Amends Unsecureds & Subcontractors Claims Pay INDU MOTEL: Case Summary & 14 Unsecured Creditors INDU MOTEL: Seeks Chapter 11 Bankruptcy in Pennsylvania INNERGEX RENEWABLE: Fitch Lowers IDR to 'BB+', Outlook Stable INTEGRATED ENDOSCOPY: Case Summary & 20 Top Unsecured Creditors INVESTMENT BUILDERS: Seeks Subchapter V Bankruptcy in Arizona IRECERTIFY LLC: Gets OK to Use Cash Collateral Until Dec. 31 J.B. POINDEXTER: S&P Affirms 'B+' Rating on Senior Unsecured Notes J4G LLC: Case Summary & Eight Unsecured Creditors JACKSON HOSPITAL: Seeks to Extend Plan Exclusivity to Oct. 1 JAMANA LLC: Seeks Chapter 11 Bankruptcy in Alabama JANE STREET: Fitch Affirms 'BB+' LongTerm IDR, Outlook Positive JERK PIT: Hires A&R Accounting and Tax Service as Advisor JERK PIT: Hires Joseph W. Wilson III as Tax Preparer KS MATTSON: Gets Court OK to Use $9.7K in Cash Collateral KUPONO RESORT: Seeks Chapter 11 Bankruptcy in Hawaii L.D. LYTLE: Hires EXP Realty as Real Estate Broker LAKE SALISBURY: Seeks Chapter 11 Bankruptcy in New York LEISURE INVESTMENTS: Court OKs Miscellaneous Assets Sale LEVY VENTURES: Hires Better Mgmt LLC as New Property Manager LIFESCAN GLOBAL: U.S. Trustee Appoints Creditors' Committee LIVE WELL MEDICAL: 2nd Circ. Affirms Founder's Conviction for Fraud LOCALS ONLY: Gets Extension to Access Cash Collateral M & N STRUCTURES: Case Summary & 20 Largest Unsecured Creditors MANA GROUP: Unsecureds to Get 10 Cents on Dollar in Plan MARILYN MAY SLONIKER: Seeks Chapter 11 Bankruptcy in Wisconsin MAVENIR SYSTEMS: Davis Polk Advised Lenders in Recapitalization MCPHILLIPS FLYING: Employs Keller & Almassian PLC as Legal Counsel MCPHILLIPS FLYING: Taps Distel Thiede as Financial Advisor MERIT STREET: Phil McGraw Faces Creditor Deposition on Co.'s Ch. 11 MEYER BURGER: To Sell Residential Panels to Guided Path for $1.3MM NEW WORLD: Employs Kevin Wiley as Legal Counsel NIKOLA CORP: Fiedler Group Steps Down as Committee Member NORTH WHITEVILLE: Bankr. Administrator Unable to Appoint Committee NUVO GROUP: Taps Westfleet as Litigation Funding Consultant ODM TRUCK: Gets Extension to Access Cash Collateral OMEGA THERAPEUTICS: Gets Court Approval for Chapter 11 Plan OMY'S COUTURE: Seeks Chapter 11 Bankruptcy in Florida OWL VENICE: Seeks Subchapter V Bankruptcy in California PAGAYA US: Fitch Rates $500MM Unsecured Notes Due 2030 'B' PHILLIPS TOTAL: Plan Exclusivity Period Extended to Nov. 24 PREMIER LUMBER: Employs Kean Miller LLP as Legal Counsel PRND3L INC: Seeks Subchapter V Bankruptcy in Massachusetts PROSOURCE MACHINERY: Gets OK to Use Cash Collateral Until Sept. 26 PUPEEZ INC: Gets Interim Approval to Use Cash Collateral PURDUE PHARMA: Ad Hoc Govt. Group Gets OK to Tap Claims Admin RAND PARENT: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable REAL MCCOY: Case Summary & 20 Largest Unsecured Creditors RED RIVER: 3rd Circ. Upholds Class Cert. for Investors in Talc Suit REMEMBER ME: Gets Extension to Access Cash Collateral RENT-A-CHRISTMAS LLC: Seeks Subchapter V Bankruptcy in New York RESIDEO TECHNOLOGIES: S&P Places 'BB+' ICR on Watch Negative RHODIUM ENCORE: Says Cooling System Patent Claims Blocked RIO DEL PILAR: Case Summary & Six Unsecured Creditors RMN INVESTMENT: Seeks Chapter 11 Bankruptcy in Georgia RUNITONETIME LLC: Morrison Foerster Represents Creditors' Committee SANMINA CORP: S&P Affirms 'BB+' ICR on Acquisition of ZT Systems SOUTHERN LOUISIANA: Hires Thomas R. Willson as Legal Counsel SPECIALTY CARTRIDGE: Gets Extension to Access Cash Collateral STICKY HOLSTERS: Amends Plan to Include James Murray Unsec. Claims STONECREST CONTRACTORS: Seeks Subchapter V Bankruptcy in Georgia SUNNOVA ENERGY: Deadline to Submit Claim Set for Aug. 6 SUNNOVA ENERGY: Gets Court OK to Sell Assets to Lenders Group TGI FRIDAY'S: Plan Exclusivity Period Extended to August 29 THUNDER RIDE: Taps Elementary Business as Restructuring Officer TOMATLAN INC: Files Emergency Bid to Use Cash Collateral VALKEN INC: Gets Interim OK to Use Cash Collateral Until Sept. 14 VINTAGE RESTORATION: Hires Marilyn D. Garner as Bankruptcy Counsel VIRTU FINANCIAL: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable VSBROOKS INC: Seeks Subchapter V Bankruptcy in Florida WASH BIDCO: Fitch Assigns 'BB-' LongTerm IDR, Outlook Stable WASHINGTON SQUARED: Secured Party Sets Sept. 16, 2025 Auction WFO LLC: Trustee Taps Trinity River Advisors as Accountant WHITESTONE CROSSING: Hires Rochelle McCullough LLP as Legal Counsel WOLFE-BLURTON FUNERAL: Seeks Subchapter V Bankruptcy in Illinois YELLOW CORP: Asks Court OK for New Ch. 11 Plan Disclosure Statement ZAHAV VENTURES: Creditor Seeks to Prohibit Cash Collateral Access [] BOOK REVIEW: Bailout: An Insider's Account of Bank Failures [] Jackson Walker Strikes Deal w/ Sungard on Judge Romance Claims [^] 2025 Distressed Investing Conference: Registration Now Open! ********* 210 SPRINGDALE: Unsecureds to Split $120K via Quarterly Payments ---------------------------------------------------------------- 210 Springdale EO LLC submitted a Second Amended Disclosure Statement describing Second Amended Plan dated July 25, 2025. This is a Plan of reorganization. In other words, the Proponent seeks to make payments under the Plan by funding payments through a cash infusion as well as continued operations. Class 3 consists of General Unsecured Claims. Commencing January 1, 2026, claimants in this Class shall receive a pro rata portion of 20 consecutive quarterly distributions (or fewer if paid in full, without interest) each in the amount of $6,000, totaling approximately $120,000 over the life of this Plan. The allowed unsecured claims total $120,000. This amount is still being determined in light of the fact that certain claims are subject to objection and reclassification. All affiliates of the Debtor and other entities controlled by Thomas Caleca, shall be deemed to have waived any and all claims they have against the Debtor. This Class is impaired. Class 4 consists of Tenant Claims for Return of Security Deposits. These contingent claims will be paid in full in the ordinary course, as and when they may come due. Notwithstanding anything to the contrary contained herein, this Plan shall not alter the legal, equitable or contractual rights of holders of Claims in this Class, and such claims shall not be discharged nor enjoined. The Plan will be effectuated by an infusion of cash from Thomas Caleca, directly or through the Debtor's managing member, in such amount necessary to treat secured claims as provided, and pay administrative expenses. Following the initial funding at the effective date, the Debtor shall perform under its reinstated mortgage loan documents, and service the debt thereunder and otherwise under this Plan, from the rents and profits from the Property. The hearing at which the Court will determine whether to confirm the Plan will take place on August 28, 2025, at 11:00 a.m. in Courtroom #3B, United States Bankruptcy Court, U.S. Court House, Martin Luther King, Jr. Federal Building, 50 Walnut Street, Newark, New Jersey 07102. Objections to the confirmation of the Plan must be filed with the Bankruptcy Court and served upon Douglas J. McGill, Esq., Webber McGill LLC, 100 E. Hanover Avenue, Suite 401, Cedar Knolls, New Jersey 07927 on or before August 21, 2025. A full-text copy of the Second Amended Disclosure Statement dated July 25, 2025 is available at https://urlcurt.com/u?l=ebZaYi from PacerMonitor.com at no charge. Attorneys for the Debtor: Douglas J. McGill, Esq. Michael J. Reynolds, Esq. WEBER MCGILL LLC 760 Route 10, Suite 104 Whippany, NJ 07981 Phone: (973) 739-9559 Email: dmcgill@webbermcgill.com About 210 Springdale EO LLC 210 Springdale EO LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). 210 Springdale EO LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. N.J. Case No. 24-15881) on June 11, 2024. In the petition signed by Thomas J. Caleca, on behalf of Managing Member, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Douglas J. McGill, Esq. at WEBBER McGILL LLC. 5612 9TH AVE: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: 5612 9th Ave LLC 5612 9th Avenue Brooklyn, NY 11220 Business Description: 5612 9th Ave LLC is a single-asset real estate company that owns the property at 5612 9th Avenue in Brooklyn, New York. The property is held in fee simple and is estimated to be worth $1.78 million, according to Zillow. Chapter 11 Petition Date: July 30, 2025 Court: United States Bankruptcy Court Eastern District of New York Case No.: 25-43632 Judge: Hon. Jil Mazer-Marino Debtor's Counsel: Ronald D. Weiss, Esq. RONALD D. WEISS, P.C. 445 Broadhollow Road Suite CL-10 Melville, NY 11747 Tel: (631) 271-3737 E-mail: weiss@ny-bankruptcy.com Total Assets: $1,781,933 Total Liabilities: $1,053,738 Lin Gao signed the petition as 50% shareholder. The Debtor indicated in the petition that no creditors hold unsecured claims. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/XSVOIAY/5612_9th_Ave_LLC__nyebke-25-43632__0001.0.pdf?mcid=tGE4TAMA 8TH STREET NE: Seeks Chapter 11 Bankruptcy in District of Columbia ------------------------------------------------------------------ On July 29, 2025, 8th Street NE Partners LLC filed Chapter 11 protection in the District of Columbia. According to court filing, the Debtor reports $100,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 8th Street NE Partners LLC 8th Street NE Partners LLC is a single-asset real estate firm that owns a connected building spanning 4017, 4021, and 4025 8th Street NE in Washington, D.C. 8th Street NE Partners LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.C. Case No. 25-00299) on July 29, 2025. In its petition, the Debtor reports total assets of $2,669,993 and total liabilities of $100,000. Honorable Bankruptcy Judge Elizabeth L. Gunn handles the case. The Debtor is represented by Augustus T. Curtis, Esq. at OFFIT KURMAN, P.A. ALEXANDER TRUCKING: Engelman Berger Represents Claimants -------------------------------------------------------- Patrick A. Clisham and Tamalyn E. Lewis of the law firm of Engelman Berger, P.C. filed a verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure to disclose that in the Chapter 11 case of Alexander Trucking Co., Inc., the firm represents Timothy Boshers and Chicago Trailer Pool Corp. (collectively as the "Claimants"). Tamalyn E. Lewis is the attorney primarily responsible for representing Timothy Boshers and Patrick A. Clisham is the attorney primarily responsible for representing Chicago Trailer Pool Corp. The Claimants are not acting as a group or committee. EB is billing each Claimant on a monthly basis. Each of the Claimants is aware of EB's representation of other clients in these cases and has provided informed consent of such representation. The Claimants have expressly waived any conflict of interests that may be implicated as a result of the multiple representations. Claimants names and addresses and the nature and amount of their claims are as follows: 1. Chicago Trailer Pool Corp. c/o Thomas Rooney 9N586 IL Route 25 Elgin, IL 60120 * Unsecured claim Claim No. 12-1 filed October 3, 2024: $66,446.04 2. Timothy Boshers c/o Ben Sansone Sansone & Lauber 7777 Bonhomme Ave., Ste. 2100 St Louis, MO 63105 * Personal insurance claim again available insurance in accordance with nonbankruptcy law The law firm can be reached at: ENGELMAN BERGER, P.C. Tamalyn E. Lewis, Esq. Patrick A. Clisham, Esq. 2800 North Central Avenue, Suite 1200 Phoenix, Arizona 85004 Ph: (602) 271-9090 Fax: (602) 222-4999 Email: tel@eblawyers.com Email: cdt@eblawyers.com About Alexander Trucking Alexander Trucking Co., Inc., filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No. 24-06092) on July 25, 2024, with $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Christopher R. Kaup, Esq., at Tiffany & Bosco, PA, is the Debtor's legal counsel. ARCHDIOCESE OF NEW ORLEANS: Working on Chap. 11 Plan Disclosures ---------------------------------------------------------------- Vince Sullivan of Law360 Bankruptcy Authority reports that on Thursday, July 31, 2025, the bankrupt Roman Catholic Archdiocese of New Orleans requested that a Louisiana judge grant more time to address objections to its Chapter 11 plan disclosure statement, which outlines a $180 million settlement fund for survivors of childhood sexual abuse. About Roman Catholic Church of The Archdiocese Of New Orleans The Roman Catholic Church of the Archdiocese of New Orleans -- https://www.nolacatholic.org/ -- is a non-profit religious corporation incorporated under the laws of the State of Louisiana. Created as a diocese in 1793, and established as an archdiocese in 1850, the Archdiocese of New Orleans has educated hundreds of thousands in its schools, provided religious services to its churches and provided charitable assistance to individuals in need,including those affected by hurricanes, floods, natural disasters, war, civil unrest, plagues, epidemics, and illness. Currently, the archdiocese's geographic footprint occupies over 4,200 square miles in southeast Louisiana and includes eight civil parishes: Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist, St. Tammany, and Washington. The Roman Catholic Church for the Archdiocese of New Orleans sought Chapter 11 protection (Bankr. E.D. La. Case No. 20-10846) on May 1, 2020. The archdiocese was estimated to have $100 million to $500 million in assets and liabilities as of the bankruptcy filing. Judge Meredith S. Grabill oversees the case. Jones Walker, LLP and Blank Rome, LLP, serve as the archdiocese's bankruptcy counsel and special counsel, respectively. Donlin, Recano & Company, Inc., is the claims agent. The U.S. Trustee for Region 5 appointed an official committee of unsecured creditors on May 20, 2020. The committee is represented by the law firms of Pachulski Stang Ziehl & Jones, LLP and Locke Lord, LLP. Berkeley Research Group, LLC is the committee's financial advisor. ARMELLINO ITALIAN: Gets Interim OK to Use Cash Collateral --------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Alabama has issued an interim order allowing Armellino Italian Ices Corp. to use cash collateral to fund business operations while under Chapter 11 protection. The court authorized the Debtor to use cash collateral, which is subject to Dogwood State Bank's lien, through August 7 in accordance with its 4-week budget. The budget projects total operational expenses of $24,225.50. The Debtor owes Dogwood approximately $555,036.83 across two loans. The bank holds valid and perfected liens on the Debtor's personal and business property. As adequate protection, Dogwood will be granted replacement liens on all post-petition assets, with the same validity, priority and extent as the bank's pre-bankruptcy liens. In addition, the Debtor was ordered to make monthly payments of $1,000 to the bank. Meanwhile, the court was ordered to escrow $1,000 per month for the Subchapter V trustee fees and expenses. These escrowed funds are not subject to the replacement liens. The Debtor's authority to use cash collateral ends on the earlier of August 7 or upon violation of the order that is not cured within five days. Further use of funds require Dogwood's consent or additional court approval. 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 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 Debtor is represented by: Anthony B. Bush, Esq. The Bush Law Firm, LLC Tel: 334-263-7733 Email: abush@bushlegalfirm.com ARP HOSPITALITY: Seeks Chapter 11 Bankruptcy in New Jersey ---------------------------------------------------------- On July 29, 2025, ARP Hospitality Group LLC filed Chapter 11 protection in the District of New Jersey. According to court filing, the Debtor reports $7,960,943 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About ARP Hospitality Group LLC ARP Hospitality Group LLC, doing business as Fairfield by Marriott, operates a midscale hotel offering lodging, breakfast, and business services. The property is located in Paramus, New Jersey, and serves both business and leisure travelers. ARP Hospitality Group LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-17941) on July 29, 2025. In its petition, the Debtor reports total assets of $9,957,890 and total liabilities of $7,960,943. The Debtor is represented by Michael S. Kopelman, Esq. at KOPELMAN & KOPELMAN, LLP. ASAP HIGHLINE: Seeks Chapter 11 Bankruptcy in New York ------------------------------------------------------ On July 29, 2025, ASAP Highline Ocala LLC filed Chapter 11 protection in the Southern District of New York. 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 ASAP Highline Ocala LLC ASAP Highline Ocala LLC is a real estate property management company operating in Ocala, Florida. ASAP Highline Ocala LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-22702) on July 29, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. The Debtor is represented by Whiteford, Taylor & Preston LLP. AVALON SAI: To Sell Hotel Assets to Ankit Saroliya for $5.6MM ------------------------------------------------------------- Avalon Sai Hotels, LLC, seeks permission from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, to sell Assets, free and clear of liens, claims, and encumbrances. The Debtor is engaged in efforts to ensure that the maximum value of the Estate’s assets is realized, which efforts include pursuing the sale of all remaining Fixed assets. The Debtor engaged Hotel Advisory to market its hotel for sale. Eric Guerrero of that firm has secured an offer to purchase various of the Debtor’s assets as is reflected on the Earnest Money Contract. The Earnest Money Contract generally provides for a purchase price of $5,600,000.00 for all Fixed Assets to be paid by Ankit Saroliya or his assigns to the Debtor for the benefit of the Debtor’s Estate. The Debtor believes that the Purchase Price represents a fair and reasonable sales price for the Assets and represents the highest and best offer for the sale of the Assets. The Debtor is prepared to consummate the sale of the Assets to Ankit Saroliya or his assigns pursuant to the terms set forth herein and in the Earnest Money Contract. The lienholder of the Debtor's Assets, International Bank of Commerce, is unwilling to further extend the deadline for obtaining an Order from the approval of the sale of the Debtor's assets, which lead the Debtor to obtain a closing of the sale on or before August 31, 2025. The Debtor submits that the sale of the Assets pursuant to the Earnest Money Contract represents a prudent and proper exercise of the Debtor’s business judgment under the circumstances and is in the best interests of creditors of the Debtor’s Estate. About Avalon Sai Hotels, LLC Avalon Sai Hotels, LLC is a real estate firm and the owner of the Comfort Inn in Houston, Texas. Avalon Sai Hotels sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 25-31798) on March 31, 2025. In its petition, the Debtor reported total assets of $6,662,000 and total debts of $5,563,263. Judge Jeffrey P. Norman oversees the case. Richard L. Fuqua, II, Esq., at Fuqua & Associates, P.C. is the Debtor's legal counsel. International Bank of Commerce, as secured lender, is represented by: Eric M. English, Esq. Michael B. Dearman, Esq. 1000 Main St., 36th Floor Houston, TX 77002 Tel: (713) 226-6000 Fax: (713) 226-6295 eenglish@porterhedges.com mdearman@porterhedges.com B & H MANAGEMENT: Seeks Chapter 11 Bankruptcy in Virginia --------------------------------------------------------- On July 29, 2025, B & H Management LLC filed Chapter 11 protection in the Eastern District of Virginia. 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 B & H Management LLC B & H Management LLC, doing business as Arkansas River Rice, operates a rice-milling facility with rail and river-port access in Pine Bluff, Arkansas, processing U.S.-grown rice for domestic and export markets. B & H Management LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Va.Case No. 25-11545) on July 29, 2025. In its petition, the Debtor reports estimated assets between $50 million and $100 million and estimated liabilities between $1 million and $10 million. The Debtor is represented Christopher A. Jones, Esq. at WHITEFORD, TAYLOR & PRESTON LLP. B&W INC: Gets Interim OK to Use Cash Collateral ----------------------------------------------- B&W, Inc. received interim approval from the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, to use cash collateral. The interim order authorized the Debtor to use cash collateral in accordance with its 30-day budget, with up to 10% variance allowed. The budget projects total operational expenses of $78,605. As adequate protection, secured lenders including the U.S. Small Business Administration and several merchant cash advance lenders will be granted replacement liens on all of the Debtor's equipment, inventory, and accounts, equal in validity and priority to their pre-bankruptcy liens. These liens do not apply to avoidance actions and their proceeds. The final hearing is scheduled for August 14. The Debtor intends to use proceeds from assets in which SBA and the MCA lenders claim security interests. These secured lenders assert liens on substantially all of the Debtor's equipment, accounts, and inventory. The Debtor argued that it relies on cash flow to fund payroll, vendor payments, inventory, and other operational needs, and that the inability to use cash collateral would immediately cripple operations. About B&W Inc. B&W, Inc., also known as Granite & Tile Outlet II, provides granite, tile, and related remodeling products and services for residential and commercial applications. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-42650) on July 22, 2025. In the petition signed by James Brede, president, the Debtor disclosed $589,701 in total assets and $1,999,013 in total liabilities. Judge Edward L. Morris oversees the case. Robert T. DeMarco, Esq., at DeMarco Mitchell, PLLC, represents the Debtor as legal counsel. BARE ARMS: Gets Interim OK to Use Cash Collateral ------------------------------------------------- Bare Arms Limited Liability Company got the green light from the U.S. Bankruptcy Court for the Eastern District of Kentucky, Ashland Division, to use cash collateral. The court's order authorized the Debtor's interim use of cash collateral from July 21 until the final hearing on August 12 to pay its expenses in accordance with its budget. The U.S. Small Business Administration holds an interest in the cash collateral of the Debtor. Other creditors including Burke & Herbert Bank & Trust Company, Byzfunder NY, LLC, and DMKA LLC may have an interest in the cash collateral. As adequate protection, SBA and the other secured creditors will be granted a replacement lien, with the same priority and of the same type that each creditor possessed prior to the petition date, if any. No party will receive a greater or higher priority that it possessed prior to the filing of the bankruptcy case. In addition to the replacement liens, SBA is entitled to $688 as a monthly "adequate protection" payment. The court approved a carveout from the cash collateral and from the replacement liens for professional and administrative fees in the amount of (i) $1,750.00 every two weeks for attorney fees and administrative expenses; and (ii) $750 per month for Subchapter V trustee fees. The Debtor obtained a $500,000 Economic Injury Disaster Loan from SBA in 2020, secured by all assets. In August 2022, the Debtor also obtained a line of credit from Summit Community Bank, which was later acquired by Burke & Herbert, resulting in a novation and the filing of a new UCC financing statement in April 2025. While SBA agreed to subordinate its lien to Summit, it is unclear whether it consented to subordinate to Burke & Herbert. Additionally, the Debtor entered into merchant cash advance agreements with Byzfunder NY and DMKA in April 2025, but neither party filed UCC-1 financing statements, and there is no indication the SBA consented to subordinate to them. As of the petition date, the Debtor had minimal cash on hand ($75.64) and projects generating approximately $123,586 in gross revenues every 30 days, with about $42,117 of that qualifying as "cash collateral" after costs of goods sold. The Debtor argued it cannot operate without using cash collateral and has no alternative post-petition financing. About Bare Arms Limited Liability Company Bare Arms Limited Liability Company, d/b/a Bare Arms Trading Co. and Bladez, operates indoor shooting ranges and provides firearms training and retail services in Kentucky and West Virginia. The Company offers range rentals, concealed carry certification courses, and branded tactical merchandise through physical stores and pickup locations across multiple states. Bare Arms Limited Liability Company sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Ky. Case No. 25-10174) on July 21, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Douglas L. Lutz handles the case. The Debtor is represented by J. Christian Dennery, Esq., at Dennery PLLC. BIG BRAND: Unsecureds to Get Share of Consolidated Action Proceeds ------------------------------------------------------------------ Big Brand Management Ltd. Co. filed with the U.S. Bankruptcy Court for the Eastern District of Texas a Second Amended Disclosure Statement describing Second Amended Plan of Reorganization dated July 25, 2025. The Debtor is a Texas limited liability company which owns certain real property upon which is located a tower for broadcasting radio signals. Louie Comella manages and operates the Debtor. Post-confirmation, Louie Comella will receive no compensation from the Post Confirmation Debtor. The primary cause of this bankruptcy filing was that certain litigation pending before the United States District Court for the Eastern District of Texas. The Debtor's primary asset are the claims plead in the Consolidated Action. There are presently no business operations conducted by the Debtor. The Plan will be funded exclusively from a recovery in the Consolidated Action. Class 3 consists of Non-priority unsecured Claims. No monies shall be distributed to the members of Class 3 until the holders of Allowed Class 1A, 1B, and 2, if any, are paid in full. Thereafter each holder of an Allowed Unsecured Claim in Class 3 shall be paid no later than thirty days after the Reorganized Debtor receives a recovery stemming from the claims it asserted in the Consolidated Action. This Class is impaired. Class 4 consists of the holders of Allowed Interests in the Debtor. The holder of an Allowed Class 4 Interest shall retain their interests in the Post-Confirmation Debtor and shall receive distributions, if any, in accord with the terms of this Plan and the Debtor's membership agreement. In no event shall distributions be made to the holder of an Allowed Interest in Class 4 until all Allowed Creditor Claims are paid in full. The Post-Confirmation Debtor shall fund distributions and satisfy Allowed Claims and Allowed Interests under the Plan using cash on hand, revenue from operations (if any) and proceeds received from any recovery in the Consolidated Action. A full-text copy of the Second Amended Disclosure Statement dated July 25, 2025 is available at https://urlcurt.com/u?l=fO8Uyz from PacerMonitor.com at no charge. About Big Brand Management Ltd. Co. Big Life Management Ltd was founded in 1986. The company's line of business includes providing various business services. Big Brand Management Ltd. Co. sought relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tex. Case No. 24-42411) on Oct. 10, 2024. In the petition filed by Louie Comella, as managing director, the Debtor listed assets between $10 million and $50 million and liabilities between $500,000 and $1 million. The Honorable Bankruptcy Judge Brenda T. Rhoades handles the case. The Debtor is represented by: Robert T DeMarco, Esq. DEMARCO MITCHELL, PLLC 500 N. Central Expressway Suite 500 Plano, TX 75074 Tel: (972) 991-5591 E-mail: robert@demarcomitchell.com BIOTACTICS INC: Has Deal on Cash Collateral Access -------------------------------------------------- Biotactics, Inc. and CDC Small Business Finance advised the U.S. Bankruptcy Court for the Central District of California, San Fernando Valley Division, that they have reached an agreement regarding the Debtor's use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. CDC holds a secured claim based on a pre-petition SBA loan originally in the amount of $250,000, later reduced to $159,975.66, secured by the Debtor's personal property. As of the petition date, CDC’s claim totaled $108,405. CDC perfected its security interest through a UCC-1 filing in 2020. Previously, the court approved a stipulation allowing the Debtor to use cash collateral through April 30. The parties now agree to extend that use through plan confirmation, under specific terms. The parties agree that the Debtor may use cash collateral for necessary and ordinary post-petition expenses. As adequate protection, CDC will receive a replacement lien on post-petition assets to the extent its pre-petition collateral is diminished. This lien is automatically perfected and retroactive to the petition date. The Debtor will also make monthly payments of $2,690 to CDC. CDC can terminate cash collateral use if the Debtor defaults and fails to cure the default within 15 days of notice. A $100 fee applies for each default notice. A copy of the stipulation is available at https://urlcurt.com/u?l=3n1hMx from PacerMonitor.com. About Biotactics Inc. Biotactics, Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-12038) on Dec. 6, 2024, with up to $500,000 in assets and up to $1 million in liabilities. Howard Andrew Maltby, president of Biotactics, signed the petition. Judge Victoria S. Kaufman oversees the case. The Debtor is represented by Michael Jay Berger, Esq., at Law Offices of Michael Jay Berger. BKS CAMBRIA: Hires Wiley Ramey as Legal Counsel ----------------------------------------------- BKS Cambria LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to hire Wiley Ramey to serve as legal counsel in its Chapter 11 case. Mr. Ramey will provide these services: (a) preparation of schedules and filing of documents required by the U.S. Trustee guidelines; (b) confirmation of insurance and insider compensation application; (c) appearance at the first meeting of creditors and at the status conference; and (d) preparation of a motion for approval of sale of real property, including discussion with realtors regarding marketing and employment. Mr. Ramey is being retained on a flat fee basis in the amount of $7,500. The firm can be reached at: Wiley Ramey, Esq. 9520 Castillo Dr. San Simeon, CA 93452 Telephone: (805) 924-3010 Facsimile: (805) 924-3011 About BKS Cambria LLC BKS Cambria LLC is a real estate debtor with a single asset, as outlined in 11 U.S.C. Section 101(51B). BKS Cambria LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10631) on May 5, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Ronald A. Clifford III handles the case. The Debtors are represented by Wiley Ramey, Esq. BMX TRANSPORT: Gets Interim OK to Use Cash Collateral Until Aug. 7 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Georgia, Gainesville Division granted BMX Transport, LLC interim authorization to use cash collateral. The court's interim order authorized the Debtor to use cash collateral from July 18 to August 7 to pay business expenses as set forth in its budget. As adequate protection, secured creditors including RTS Financial Services and the U.S. Small Business Administration will be granted valid and properly perfected liens on all property acquired by the Debtor after its Chapter 11 filing that is similar to their pre-bankruptcy liens. The replacement liens do not apply to any Chapter 5 avoidance actions. The next hearing is scheduled for August 7. The Debtor is party to a factoring agreement with RTS under which the Debtor sells invoices to RTS for daily loads carried. RTS is secured by a UCC financing statement filed on August 15, 2023. The debt of RTS is secured by all receivables of the Debtor. Meanwhile, the Debtor is a borrower on an Economic Injury Disaster Loan with SBA. The SBA debt is secured by a UCC financing statement filed on June 15, 2020, and by all real and personal property of the Debtor. RTS, as lender, is represented by: Leon S. Jones, Esq. Jones & Walden, LLC 699 Piedmont Avenue, NE Atlanta, GA 30308 (404) 564-9300 ljones@joneswalden.com About BMX Transport BMX Transport, LLC provides long-distance specialized freight trucking services across the United States, focusing on goods that require unique handling or equipment. It offers full truckload transport using dry vans and refrigerated trailers, supported by warehousing and 24/7 logistics operations. Headquartered in Georgia, BMX Transport operates a federally authorized fleet of trucks and trailers. BMX Transport sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-20705) on May 5, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. Judge James R. Sacca handles the case. The Debtor is represented by: Benjamin R. Keck, Esq. Keck Legal, LLC Tel: 470-826-6020 bkeck@kecklegal.com BOOTHE INVESTMENTS: Seeks Chapter 11 Bankruptcy in Massachusetts ---------------------------------------------------------------- On July 30, 2025, Boothe Investments LLC filed Chapter 11 protection in the District of Massachusetts. 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 Boothe Investments LLC Boothe Investments LLC is a Worcester, Massachusetts-based real estate investment entity. Boothe Investments LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-40803) on July 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100,000 and $500,000 each. Honorable Bankruptcy Judge Elizabeth D. Katz handles the case. The Debtor is represented by James P. Ehrhard, Esq. BOTICA LLC: Seeks Chapter 11 Bankruptcy in Georgia -------------------------------------------------- On July 29, 2025, Botica LLC filed Chapter 11 protection in the Northern District of Georgia. 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 Botica LLC Botica LLC is an Atlanta-based restaurant operating in the food services and drinking places industry. Botica LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-58444) on July 29, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100,000 and $500,000 each. Honorable Bankruptcy Judge Barbara Ellis-Monro handles the case. The Debtor is represented by Jonathan A. Akins, Esq. at Schreeder, Wheeler & Flint, LLP. BRIGHT CARE: Hires Gatto McFerson LLP as Accountant --------------------------------------------------- Bright Care Veterinary Hospital, Inc. and Bright Care Veterinary Group, Inc. seek approval from the U.S. Bankruptcy Court for the Central District of California to hire Gatto McFerson LLP to serve as accountant in their jointly administered Chapter 11 cases. Gatto McFerson LLP will provide these services: (a) prepare the Debtors' 2024 tax returns; (b) advise the Debtors on income tax matters arising in connection with the bankruptcy; (c) perform bookkeeping services including posting expenses and deposits, reconciling bank and credit card accounts; and (d) ensure transactions are accurately categorized. Tom A. McFerson, the primary professional on the engagement, will bill at an hourly rate of $390. Gatto McFerson LLP is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, having waived its $150,000 prepetition claim to eliminate any creditor status. The firm can be reached at: Tom A. McFerson Gatto McFerson LLP11858 La Grange Ave, Ste B Los Angeles, CA 90025 Telephone: (310) 393-2434 Facsimile: (310) 393-8777 About Bright Care Veterinary Hospital Bright Care Veterinary Hospital, Inc. filed Chapter 11 petition (Bankr. C.D. Calif. Case No. 25-10900) on April 8, 2025, listing between $1 million and $10 million in both assets and liabilities. Alireza Gorgi, president of Bright Care, signed the petition. Judge Scott C. Clarkson oversees the case. The Debtor is represented by: David B. Golubchik, Esq. Levene, Neale, Bender, Yoo & Golubchik L.L.P. Tel: (310) 229-1234 Email: dbg@lnbyg.com BRUIN DIRECTORS: Seeks to Hire Leslie Cohen Law PC as Attorney -------------------------------------------------------------- Bruin Directors Circle, LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to hire Leslie Cohen Law PC as attorneys. The firm's services include: (a) advise the Debtor regarding its rights and responsibilities under the U.S. Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, and the Local Bankruptcy Rules, and how the application of such provisions relates to the administration of its estate; (b) advise and assist the Debtor in connection with the preparation of certain documents to be filed with the bankruptcy court or the Office of the U.S. Trustee; (c) represent the Debtor, with respect to bankruptcy issues, in the context of its pending Chapter 11 case and represent in contested matters; (d) assist in the negotiation, formulation, and confirmation of a plan of reorganization; and (e) render services for the purpose of pursuing, litigating or settling litigation. The firm's hourly rates are : Leslie Cohen, Esq. $650 J'aime Williams Kerper, Esq. $475 Senior Contract Attorneys $350 Legal Administrator $125 Paralegals $195 The firm received a total of $56,738 in pre-petition retainers. Leslie Cohen, Esq., the firm's president and sole shareholder, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Leslie A. Cohen, Esq. J'aime K. Williams Esq. Leslie Cohen Law, PC 506 Santa Monica Blvd., Suite 200 Santa Monica, CA 90401 Telephone: (310) 394-5900 Facsimile: (310) 394-9280 Email: leslie@lesliecohenlaw.com jaime@lesliecohenlaw.com About Bruin Directors Circle Bruin Directors Circle, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-15295) on June 24, 2025, listing up to $50,000 in assets and between $100,001 and $500,000 in liabilities. Judge Barry Russell presides over the case. Leslie A. Cohen, Esq., at Leslie Cohen Law PC represents the Debtor as bankruptcy counsel. BTG TEXTILES: Unsecureds Will Get 100% of Claims over 5 Years ------------------------------------------------------------- BTG Textiles Inc. filed with the U.S. Bankruptcy Court for the Central District of California a Disclosure Statement and Plan of Reorganization dated July 25, 2025. The Debtor is incorporated in California in May, 2011. It is an importer and distributor of hospitality and healthcare textiles and other textile and non-textile items needed in hotels and healthcare facilities. Following the filing of Chapter 11 bankruptcy case, the Debtor conducted a thorough analysis of its business performance over the past four years. This evaluation allowed the Debtor to identify key weaknesses and areas for improvement. Based on this analysis, and taking into account its performance from January to June of the current year, the Debtor implemented a series of strategic initiatives aimed at ensuring a successful emergence from Chapter 11. Leveraging these insights and changes, the Debtor has developed a comprehensive five-year business plan that reflects its renewed strategic direction and operational goals. The Debtor's business operation has been historically profitable and continues to show great progress. The Debtor has operated the business since 2001, has a great reputation in the industry, and is able to secured new clients on a regular basis. As such, the risk factor to creditors of non-payment is extremely low. Class 2b consists of general unsecured claims. Each claimant in Class 2b will be paid 100% of its claim beginning the first relevant date after the effective date over 5 years in equal monthly installments. Claimants are entitled to vote to reject or accept the plan. A full-text copy of the Disclosure Statement dated July 25, 2025 is available at https://urlcurt.com/u?l=VWk7WI from PacerMonitor.com at no charge. About BTG Textiles Inc. BTG Textiles Inc. is a Montebello, California-based textile manufacturer and distributor. Founded in 1988, the company manufactures and distributes textile products to healthcare facilities, institutional laundries, janitorial services, and hospitality businesses. BTG operates manufacturing facilities in Bangladesh, Portugal, and Pakistan, maintaining its principal place of business at 710 Union Street in Montebello. BTG Textiles Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10548) on Jan. 25, 2025. In its petition, the Debtor listed assets and liabilities between $10 million and $50 million. Judge Vincent P. Zurzolo handles the case. The Debtor is represented by Michael Jay Berger, Esq., at Law Offices of Michael Jay Berger, in Beverly Hills, California. TAB Bank, as secured creditor, is represented by Michele S. Assayag, Esq. and Byron B. Mauss, Esq. at Snell & Wilmer L.L.P. CHASEN CONSTRUCTION: Creditors Force Owner to Chapter 7 Liquidation ------------------------------------------------------------------- Dylan Segelbaum, Greg Morton and Hallie Miller of The Baltimore Banner report that Baltimore real estate developer Brandon Chasen, once at the helm of one of the nation's fastest-growing companies, has agreed to enter Chapter 7 bankruptcy liquidation. Three creditors -- Sandy Spring Bank, Ferguson Enterprises, and Southland Insulators of Maryland Inc. -- filed an involuntary petition against Chasen on June 16, 2025. Instead of fighting the filing, his attorney Adam Freiman told the court that Chasen would proceed voluntarily. U.S. Bankruptcy Judge Nancy V. Alquist approved the request Wednesday, July 30,2025, directing him to submit a full accounting of assets and liabilities by Aug. 13, 2025, according to The Baltimore Banner. Freiman said Chasen is facing "overwhelming debt" but remains committed to repaying creditors. He described his client as "a young, dynamic entrepreneur" who devoted years to revitalizing neglected Baltimore properties. According to Freiman, Chasen Cos. collapsed under a "perfect storm" of pressures — the COVID-19 pandemic, the Francis Scott Key Bridge collapse that disrupted supply chains, and sharp increases in commercial loan interest rates. He also dismissed "baseless and sensational" claims of mismanagement and denied any effort to hide assets, including allegations about a corporate jet. Chasen stopped taking a salary and benefits once it became clear the business could not recover. Freiman said his client intends to complete the process "with dignity and honesty," and hopes to rebuild and contribute again after learning "painful but profound" lessons. About Chasen Construction Chasen Construction LLC, operating as Chasen Companies, specializes in real estate acquisition and development in the Greater Baltimore Region, with plans for expansion across the U.S. As a vertically integrated company, Chasen manages the entire development process, from acquisitions and financing to construction, marketing, and leasing. The Company is dedicated to delivering high-quality living and workspaces, designed with luxury and modern amenities to enhance the tenant experience. On March 18, 2025, Sandy Spring Bank, Southland Insulators of Maryland, Inc., and Ferguson Enterprises, Inc., petitioning creditors, on behalf of Chasen Construction, LLC filed an involuntary petition under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 25-12356). Judge Nancy V. Alquist oversees the case. Schlossberg Mastro serves as the Debtor's general counsel. Martin Law Group, P.C., the Law Office of Jill D. Caravaggio, and Whittaker/Myers, PC serve as the petitioners' counsel. CHC GROUP: Moody's Assigns 'B2' CFR, Outlook Stable --------------------------------------------------- Moody's Ratings assigned new ratings to CHC Group LLC (CHC Helicopter or CHC), including a B2 Corporate Family Rating, B2-PD Probability of Default Rating, SGL-2 Speculative Grade Liquidity Rating (SGL) and a B2 rating to its proposed senior secured 1st lien notes. The outlook is stable. CHC intends to use the proceeds from the proposed senior secured notes to repay its existing secured term loan (unrated), repay aircraft capital leases, repay aircraft financing facilities, and repay structurally senior preferred equity. "CHC's refinancing transaction will result in a more simplified capital structure and longer maturity runway." Said Jake Leiby, Moody's Ratings Senior Analyst. RATINGS RATIONALE CHC's B2 CFR reflects its position as one of the largest global operators of helicopter services, its $2.8 billion contract backlog which extends to 2030, and its fleet of 106 helicopters as of April 30, 2025. The company has a significant portion of its projected revenue in the years ending April 2026 and April 2027 under contract with high quality counterparties. CHC's credit profile is also supported by the geographic diversity of its operations in six countries and end-market diversification through its Search and Rescue (SAR) business and its maintenance, repair, and overhaul business. CHC's efforts to renegotiate major contracts in recent years has improved its revenue visibility and predictability, and Moody's expects contracts to continue to be favorably negotiated as they come up for renewal in 2026 and beyond. The company's credit profile is constrained by its exposure to the cyclical offshore oil and gas business, which accounts for a significant majority of revenue, and by its moderate financial leverage, high cash costs including interest and lease payments, as well as a sizable amount of debt. The stable outlook reflects Moody's expectations that the company will maintain its credit profile as it executes on its existing backlog and adds additional contracts to support future earnings. Moody's expects CHC to maintain adequate liquidity through the end of 2026. Pro forma for the proposed transactions, CHC is expected to have up to $155 million of liquidity including $80 million of cash on hand and a fully available up to $75 million secured revolving credit facility that will mature in 2029. Although CHC's interest and lease expenses are a meaningful cash burden Moody's expects the company to generate free cash flow. The proposed senior secured notes are rated B2, the same as the CFR, because of the proportionately smaller size of the ABL facility as compared to the proposed senior secured notes. ESG CONSIDERATIONS There is discernible negative impact on the rating (CIS-4) driven by high exposure to governance risks. Investment funds managed by Bain and Cross Ocean collectively own more than 60% of the company. Concentrated decision-making creates potential for event risk and decisions that favor shareholders over creditors and that may negatively affect the company's credit profile. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS CHC's ratings could be upgraded if it grows its scale and contract backlog while improving the average quality of its contracts, generating consistent free cash flow, and maintaining its adequate liquidity. Gross leverage sustained under 3.0x would also be supportive of an upgrade. A downgrade of CHC's ratings could be considered if its liquidity deteriorates, leverage is sustained above 4.0x, or it enacts more aggressive financial policies. The principal methodology used in these ratings was Oilfield Services published in January 2023. 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. CHESSWOOD GROUP: To Sell Bishop Equity Interest to North Mill ------------------------------------------------------------- FTI Consulting Canada Inc. (FTI), in its capacity as the court-appointed monitor and duly-authorized foreign representative of Chesswood Group Ltd. and its affiliates, seek approval from the U.S. Bankruptcy Court for the District of Delaware, to sell Property, free and clear of liens, claims, and encumbrances. The FTI seeks recognition of the approval and vesting order entered by the Canadian Court on July 29, 2025 (such order, as attached as Exhibit 2 to the Rosenberg Declaration, the "Bishop AVO"). The transactions contemplated by certain Transaction Agreement, dated July 22, 2025, by and between Debtor CGL Holdco, LLC (ResidualCo), Debtor Chesswood U.S. Acquisitionco Ltd. (Pawnee Vendor) and North Mill Equipment Finance, LLC (Purchaser). On December 19, 2024, the Canadian Court entered an order (Canadian SISP Order) that, among other things, approved sale and investment solicitation procedures for the Debtors in the Canadian Proceedings. The SISP set forth a comprehensive marketing process that established clear and transparent procedures for the solicitation and evaluation of bids in respect of most of the Debtors’ assets, whether in the United States or Canada, on a reasonable timeline and provided parties with sufficient time, opportunity, and information to submit a competitive bid . The SISP resulted in, among other things, the sale by the Pawnee Vendor to the Purchaser of all of the issued and outstanding shares in the capital of Pawnee Leasing Corporation (Pawnee) and Tandem Financial Inc. through a reverse vesting transaction that, immediately prior to the sale to the Purchaser, vested certain excluded assets and liabilities, including Pawnee’s equity interest in the joint venture Bishop Holdings, LLC (Bishop Equity Interest) and the Amended and Restated Limited Liability Company Agreement of Bishop Holdings, LLC. As owner of the Bishop Equity Interest, ResidualCo would be entitled to receive payments from Bishop Holdings pursuant to the terms of the Limited Liability Company Agreement of Bishop Holdings, which payments would be based on excess cashflows or repayments on loan and lease assets previously sold and/or contributed by Bishop Holdings to Bishop Trust. As part of the Transaction Agreement negotiation, the Debtors and the Purchaser revisited the Charge-Off Payments. The "charge-offs" are comprised of written off debts, the ultimate collectability and timing for recovery of which (if any) is largely unknown. Further, the Pawnee Vendor, the Purchaser and the Foreign Representative have each had to incur costs and expenses in order to monitor and administer these charge-offs. These discussions culminated in the Charge-Off Settlement, which effectively is a one-time incremental payment in the amount of US$1,615,188.22, less the Charge-Off Payment obligations for the months of April, May and June 2025 in consideration for the amendment to the Maximum Charge-Off Payment payable under the Pawnee SPA. The Transaction Agreement contemplates the following Proposed Transactions: a. ResidualCo will sell, assign, transfer and convey to the Purchaser, and the Purchaser shall purchase and acquire from ResidualCo, all of ResidualCo's right, title and interest in, to and under the Purchased Assets for a purchase price of US$1,218,917.36; b. The Purchaser assumes and agrees to pay, perform and discharge when due in accordance with their terms, all liabilities and obligations (contractual, legal or otherwise) (i) which relate to the Bishop Equity Interest arising out of events or circumstances that occur after closing; and (ii) of ResidualCo under the Bishop Assigned Contracts; and c. The Purchaser will pay to the Pawnee Vendor an amount equal to US$1,615,188.22 less any Charge-Off Payment amounts with respect to the months of April, May, and June 2025 that are paid to the Pawnee Vendor prior to closing (Aggregate Q2 Charge-Off Payment Amount) under the Transaction Agreement (Charge-Off Settlement Amount), which payment will act as consideration for the amendment to the Maximum ChargeOff Payment payable under the Pawnee SPA (Charge-Off Settlement). The payment of the Aggregate Q2 Charge-Off Payment Amount shall satisfy in full the amended Maximum Charge-Off Payment. Parties in interest were properly noticed, under Canadian law, of the CCAA Hearing and had an opportunity to be heard at the CCAA Hearing in the Canadian Proceedings. The Court's recognition and enforcement of the Bishop AVO is within the territorial jurisdiction of the United States and approval of the Proposed Transactions will permit the Debtors to sell the Purchased Assets efficiently and cost-effectively while maximizing estate value. The Foreign Representative submits that the sale of the Purchased Assets is in accordance with the terms and conditions of the Transaction Agreement, the Bishop AVO, and the Proposed Order, and represents the best realization of value for the Purchased Assets under the circumstances. About Chesswood Group Chesswood Group provides financing and investment management solutions to niche markets generally underserved by traditional financial institutions. Chesswood Group sought relief under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-12454) on October 30, 2024. The Debtor is represented by Kenneth J. Enos of Young, Conaway, Stargatt & Taylor, LLP. CHS/COMMUNITY HEALTH: Fitch Rates $1.5BB First Lien Notes 'B' ------------------------------------------------------------- Fitch Ratings has assigned CHS/Community Health Systems, Inc.'s (CHS) issuance of $1.5 billion of first lien notes due 2034 a 'B' rating with a Recovery Rating of 'RR2'. Proceeds from the notes will be used to tender for and/or redeem the CHS 5.625% first lien notes due 2027, with which the 2034 notes will rank pari passu. The 'CCC+' Issuer Default Ratings (IDRs) for CHS and its parent, Community Health Systems, Inc. (CYH), are unaffected by the offering. The IDRs reflect its expectations of EBITDA leverage improving modestly within the 7.5x-8.0x range and free cash flow (FCF) improving to modestly positive levels in 2025. Should CHS upsize the offering, it could retire all $1.8 billion of 2027 notes, leaving no debt due until Jan. 2029. Key Rating Drivers Leverage Improving but Still High: Fitch expects EBITDA leverage to decrease within the 7.0x-7.5x range by end- 2026, below the 8.0x positive rating sensitivity. Further deleveraging within the near term will be crucial to addressing maturities of $2.5 billion of second lien notes due in 2029-2030. EBITDA leverage has declined materially, to about 7.5x currently from over 10.0x in 2023, due to improving industry conditions and deleveraging using cash proceeds from multiple divestitures. However, FCF has remained negative, consistent with the 'CCC+' IDRs. Its expectations for deleveraging into 2026 reflect modest same-facility EBITDA growth and divestitures driving debt reduction. Fitch anticipates modest increases in volume and reimbursement rates, with slight margin expansion. Risks include distressed debt exchanges (DDEs) or high-rate refinancings limiting FCF, especially if capital market conditions deteriorate. Fitch's leverage projections may also be adversely affected by 2025 U.S. Tax and Spending Bill, including a failure to extend enhanced subsidies for Affordable Care Act exchange health plan buyers. Absent Congressional action, these enhanced subsidies will expire at end-2025, expanding the uninsured population. FCF Weak but Improving: Fitch expects CHS to return to modest positive FCF at 0%-1% of revenue in 2025-2026. Fitch also sees cash flow from operations (CFO) less capex totaling only 0%-1% of debt in 2025-2026, despite capex totaling just 3% of revenue, consistent with a 'CCC+' IDR. Divestitures should support the extent to which FCF could drive debt reduction, supporting the company's access to debt capital markets. The sustainability of meaningful positive FCF with growth, rather than moderate deleveraging alone, will be important for CHS to generate positive rating momentum. Its cash flow projections above represent an improvement on 2024 when FCF was negative despite significant moderation in labor costs and rising volumes. In comparison, CHS's closest peers have recently generated appreciable FCF, despite significantly higher capex. CHS's lower capex levels may also limit its ability to grow into its highly leveraged capital structure. Profitability Remains Modest: Fitch expects EBITDA margins to improve slightly within the range of 12.0%-12.5% over the rating horizon, up from labor-inflation lows of 10.4% in 2022 and 12.1% in 2024. Its forecast assumes modest pricing increases, excluding potential near-term Medicaid supplemental reimbursement increases, partially offset by rising other operating costs due to higher medical specialist expense. EBITDA margin, despite expansion in 2024, lagged peers' amid rebounding volumes and normalizing temporary staffing costs. However, should CHS margins exceed its estimates, further deleveraging would be likely. Divestitures Driving Debt Reduction: Proceeds received from divestitures completed in 1Q25 exceeded $0.5 billion, (including ShorePoint Health hospitals in Florida and Lake Norman hospital in North Carolina), and at the end of 2Q25, CHS sold its 80% equity interest in Cedar Park Regional Hospital in Texas for $460 million in cash. Lastly, in early 3Q25, CHS announced a sale of ambulatory outreach lab services assets for $0.2 billion in cash. With these deals exceeding a $1.0 billion target for 2025, Fitch expects core market growth to be prioritized over divestitures. Ample Liquidity: As of June 30, 2025, liquidity totaled $0.9 billion, up $0.5 billion from end-2024, including cash on hand of $456 million and asset-based loan revolver availability of $483 million (net of $66 million of letters of credit). As Fitch also expects CHS to return to generating modest positive FCF in 2025, calls on liquidity within the near term should be limited. Proactive Balance Sheet Management: CHS has continued to actively manage its balance sheet, announcing in April 2025: (1) a par redemption of all $700 million of its 8.000% first lien notes due 2027, funded by issuing $700 million of 10.750% first lien notes due 2034, and (2) a successful tender for about $0.6 billion of its 6.875% senior unsecured notes due 2028, funded largely from cash on hand. This was a key step in addressing all debt due before 2029, as is the latest proposal to refinance most or all of the $1.8 billion 5.625% first lien notes due 2027. Peer Analysis CHS's 'CCC+' IDR reflects leverage well above that of its closest peers: Tenet Healthcare Corporation (THC; BB-/Stable); Universal Health Services, Inc. (UHS; BB+/Stable); and HCA Healthcare, Inc. (HCA). CHS debt entails higher risk of DDEs, given its EBITDA leverage of over 8.0x at end-2024 and forecast at just above 7.5x for end-2025. However, its proposed refinancing of most or all of its $1.8 billion of first lien notes due 2027 would mark progress in reducing refinancing risk. CHS has a weaker operating profile than its closest peers, with assets located in smaller urban, suburban or non-urban markets, with growth prospects Fitch believes are less robust. The 'CCC+' IDR also reflects financial flexibility that is more constrained than that of its higher-rated peers. This includes lower interest coverage, reflecting the burden of a highly-leveraged capital structure, and shortfalls in FCF generation, especially relative to the considerable FCF generated by its closest peers, despite rising volumes and moderating labor costs in 2023-2024. The IDRs of borrower CHS and parent CYH are identical due to their strong legal and operational ties. Under its Parent and Rating Subsidiary Linkage Criteria, Fitch applies the weak parent/strong subsidiary approach, as the only asset of CYH is its 100% ownership of CHS, which indirectly owns all operating subsidiaries. Fitch believes legal ring-fencing, access and control are open and, therefore, assesses these entities on a consolidated basis. Key Assumptions - Revenue growth of 3% in 2025 (-2% including the effects of divestitures), followed by 4% until 2028, driven by an even split of volume growth and mix-adjusted pricing upside; - EBITDA margin (before non-controlling interest [NCI] distributions) improving by 25bp over the forecast horizon, excluding upside from potential new Medicaid supplemental payment program approvals. This further reflects labor cost increases in line with revenue growth and modest supplies expense improvement that offset modest increases in other operating expense from rising medical specialist expense; - FCF turning modestly positive at 0.0%-0.5% of revenue over the forecast horizon, with capex at $375 million in 2025, then averaging $400 million over the rest of the period; - EBITDA leverage (after NCI distributions) declining from 8.3x at end-2024 to 7.6x by end-2025, 7.3x by end-2026, 7.0x by end-2027 and potentially 6.7x by end-2028; - Net debt reduction of about $1.1 billion in 2025, primarily using cash proceeds from divestitures (includes its assumption that the ABL revolver is fully repaid with about $250 million of bonds eliminated via open market purchases), including modest debt repayment in 2028; - Secured overnight financing rate (SOFR) at 4.25% in 2025, 4.00% in 2026, and 3.75% thereafter. Recovery Analysis Fitch estimates an enterprise value (EV) for CHS on a post-reorganization going-concern (GC) basis of $7.9 billion (down from $8.2 billion last), which is based on GC EBITDA (deducts distributions to NCI) of $1.25 billion and a 7.0x EV/EBITDA multiple (both unchanged from its last estimates), less 10% for administrative claims. The multiple reflects a history of acquisition multiples for large hospital operators with business profiles similar to CHS of 7.0x-10.0x since 2006 and the average public trading multiple (EV/EBITDA) of its peer group (HCA, UHS and THC), which has ranged within 6.5x-9.5x since 2011. Fitch's GC EBITDA estimate reflects its view that if EBITDA remains at GC EBITDA levels (potentially due to adverse operating fundamentals) could signal a restructuring. Fitch assumes that any restructuring would focus on the liabilities rather than material operational improvements. Therefore the $1.25 billion GC EBITDA assumption is unchanged from the levels at which CHS may need to restructure and compares to Fitch's $1.35 billion forecast of EBITDA net of NCI distributions for 2025. No further reduction to GC EBITDA or debt claims was assumed despite Fitch's expectation that at least some further divestiture proceeds could be used to reduce debt in the near term, as sensitivity testing revealed that notching would remain unchanged. Fitch's recovery analysis assumes about $750 million would be drawn on the $1.0 billion ABL revolver prior to a restructuring, which reflects its understanding that $146 million of the revolver is unavailable due to borrowing base limitations, and its assumption that the last $95 million of ABL availability is likely to be inaccessible before a restructuring due to an inability to comply with its fixed-charge covenant. Fitch allocates the distributable EV first to the ABL revolver claim, then to the first lien bonds ($7.9 billion), with only a 1% concession payment to the second lien notes ($2.5 billion). These recovery assumptions cumulatively result in recovery rates for the super-priority ABL revolver within the 'RR1' range, generating a three-notch uplift from the IDR to its debt instrument rating of 'B+'/'RR1', while resulting recovery rates for the first lien notes fall within the 'RR2' range, generating a two-notch uplift from the IDR to their debt instrument ratings of 'B'/'RR2'. The company's second lien notes, under Fitch's assumptions, recover in the 'RR6' range and are thus notched down two levels to 'CCC-'/'RR6'. In contrast, the small amount of senior unsecured notes, which also recover in the 'RR6' range are notched down three levels to 'CC'/'RR6' to further reflect their structural subordination relative to the higher-ranking second lien senior secured notes. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - An expectation for a near-term DDE (as defined by Fitch) or that a default, bankruptcy or restructuring is increasingly likely as the company's nearest term debt maturities approach; - Accelerating negative CFO less capex/debt. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An expectation for Fitch-defined EBITDA leverage to be sustained at 8.0x or below; - CFO-capex/debt turning positive, sustained at levels above 1.5%. Liquidity and Debt Structure As of June 30, 2025, liquidity totaled $0.9 billion, including cash on hand of $456 million and availability under its ABL revolver due June 2029 of $483 million (net of $66 million of letters of credit). Fitch notes the last $95 million of availability may be inaccessible in a period preceding restructuring absent unlikely fixed-charge coverage covenant compliance. Beyond the divestiture closings that boosted liquidity in 1H 2025, CHS also recently agreed to sell certain ambulatory outreach lab services assets for $0.2 billion in cash. Fitch views this level of liquidity satisfactory to withstand foreseeable stresses through 2026, and notes that the ABL revolver has no financial maintenance covenants save for a fixed-charge coverage covenant applicable only if availability falls below $95 million. Issuer Profile CHS is one of the largest for-profit operators of U.S. acute care hospitals by revenue, with over 1,000 sites of care in 36 markets in 14 states, including 70 affiliated hospitals with over 10,000 beds as of June 30, 2025. Date of Relevant Committee 30-Apr-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 Community Health Systems, Inc. has an ESG Relevance Score of '4' for Exposure to Social Impacts due to pressure to contain healthcare spending growth, the highly sensitive political environment and social pressure to contain costs or restrict pricing, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery ----------- ------ -------- CHS/Community Health Systems, Inc. senior secured LT B New Rating RR2 CHS/COMMUNITY HEALTH: Moody's Rates New Sec. Notes Due 2034 'Caa1' ------------------------------------------------------------------ Moody's Ratings assigned a Caa1 rating to CHS/Community Health Systems, Inc.'s ("CHS") proposed senior secured notes due 2034. CHS intends to use the proceeds from this new issuance to redeem its existing $1.757 billion 5.625% senior secured notes due 2027 and up to 10% of $2.225 billion 10.875% senior secured notes due 2032. This refinancing transaction is leverage neutral. The company's financial leverage was approximately 8.5x as of June 30, 2025. Moody's expects that leverage will remain above 8.0x in the next 12-18 months. There is no change to the company's Caa2 Corporate Family Rating, Caa2-PD Probability of Default Rating, Caa1 rating for the existing senior secured notes, Caa3 rating for the backed senior secured junior-priority notes, Ca rating for senior unsecured notes, and the stable outlook. RATINGS RATIONALE CHS' Caa2 Corporate Family Rating reflects Moody's expectations that the company will operate with very high financial leverage above 8.0 times over the next 12-18 months. Moody's expects that the company will generate minimal free cash flow, and it will need to rely on asset sales to meet its financial obligations and to reduce debt. For the last 12 months ended June 30, 2025, the company's debt/EBITDA was approximately 8.5 times. CHS' rating is supported by its large scale, presence in several states and the progress it has made with its divestiture program in the last several years. CHS maintains good capital market access, which has enabled the company in recent years to refinance significant proportion of its near-term debt and to extend the debt maturity profile. The stable outlook reflects Moody's views that CHS will operate with very high financial leverage and weak liquidity in the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Moody's could downgrade the ratings if liquidity erodes or if Community Health's earnings weaken further. The ratings could also be downgraded if the probability of default increases or if the company pursues a transaction that Moody's deem as a distressed exchange. Moody's could upgrade the ratings if operational initiatives result in improved volume growth and margin expansion. Community Health would also need to improve its free cash flow and liquidity and reduce financial leverage. CHS/Community Health Systems, Inc., headquartered in Franklin, Tennessee, is an operator of general acute care hospitals in non-urban and mid-sized markets in 36 distinct markets across 14 states. Revenues was $12.6 billion for the last twelve months ended June 30, 2025. The principal methodology used in this rating was Business and Consumer Services published in November 2021. COOPER'S HAWK: S&P Withdraws 'CCC+' Issuer Credit Rating -------------------------------------------------------- S&P Global Ratings withdrew its ratings on Cooper's Hawk Intermediate Holding LLC at the company's request. Our issuer credit rating was 'CCC+' and the outlook was negative at the time of withdrawal. CORVIAS CAMPUS: Gets Court OK to Enter Mediation to Address Dispute ------------------------------------------------------------------- Randi Nani of Bankruptcy Law reports that Corvias Campus Living - USG LLC, a bankrupt student housing company, received court approval to begin mediation aimed at resolving disputes with the Georgia Board of Regents and holders of over $526 million in secured notes. The U.S. Bankruptcy Court for the District of Delaware ordered Tuesday, July 29, 2025, that the mediation will be held in Atlanta in mid-August. Corvias requested the mediation earlier this month after out-of-court talks with the University System of Georgia's Board of Regents and the noteholders failed to produce an agreement, the report states. About Corvias Campus Living-USG Corvias Campus Living-USG, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11214 on June 25, 2025, listing between $10 million and $50 million in assets and between $500 million and $1 billion in liabilities. Thelma Edgell, president, signed the petition. Judge Laurie Selber Silverstein oversees the case. The Debtor tapped Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell, LLP as counsel; CohnReznick LLP as financial advisor; and Donlin, Recano & Company LLC as administrative advisor. CRESCENT ENERGY: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Crescent Energy Company's and Crescent Energy Finance LLC's (Crescent) Long-Term Issuer Default Ratings (IDRs) at 'BB-'. The Rating Outlook is Stable. Fitch has also affirmed Crescent's first lien secured reserve-based loan facility (RBL) at 'BB+' with a Recovery Rating of 'RR1' and its senior unsecured notes at 'BB-'/'RR4'. Crescent's rating reflects its operational scale, moderate midcycle leverage, healthy liquidity profile, and conservative hedging program. Crescent also has a below-average decline rate compared to shale producers. It is a top three operator in the Eagle Ford shale. The ratings also reflect Crescent's lagging operating netbacks, which make it sensitive to falling oil and gas prices and growth driven by M&A. Fitch forecasts Crescent's midcycle leverage at 1.6x, below the negative rating sensitivity of 2.0x. Key Rating Drivers Leverage Target Unchanged: Crescent's Fitch-calculated EBITDA leverage is 1.6x at midcycle oil and gas prices, which is below its negative rating sensitivity. Crescent will continue to target 1.0x leverage, with a maximum of 1.5x after accretive acquisitions. In 3Q25, the company issued a $600 million note to repay around $500 million of its long-term notes, which Fitch believes is debt neutral but will slightly improve average debt tenor. Fitch expects Crescent to use its FCF after dividends to reduce its RBL drawdown. Improved Scale, Focus on Eagle Ford: Crescent's ratings reflect its position as one of the largest operators in the Eagle Ford shale due to the increased scale from recent acquisitions, including SilverBow in 2024 and Ridgemar in January 2025. Fitch expects Crescent's production volume to exceed 250 thousand barrels of oil equivalent per day (kboe/d; around 40% oil) in 2025 and its midcycle EBITDA to gradually increase to $1.6 billion on its $57 per barrel of West Texas Intermediate (WTI) oil and $2.75 per thousand cubic feet of Henry Hub natural gas prices. Approximately 75% of the combined company's production will come from the Eagle Ford, while the rest will be produced in the Rockies region. Growth Dominated by M&A: Crescent has grown mainly through acquisitions. The enterprise value of SilverBow of $2.1 billion was funded with a mix of debt and equity. In 1Q25, Crescent increased its asset base in the Eagle Ford area with the Ridgemar acquisition valued at $905 million. The transaction was funded by $830 million in cash, along with equity plus future oil price contingent consideration. Crescent maintained its pro forma leverage below 2.0x after these acquisitions. Lower Decline Rate Assets: Crescent estimates its decline rate at approximately 25%. This is below the typical rate for shale producers of above 30%. A material share of the company's operations is in more mature plays, which usually require lower capex due to their older vintage wells. Older wells have lower decline rates than those recently developed but result in relatively higher operating expenses. Fitch believes netbacks will be more sensitive in a downcycle given the higher opex structure. Positive FCF Generation: Fitch forecast Crescent's post-dividend FCF in the $450 million-$550 million range at Fitch's price deck in the near to medium term. Fitch expects the company to maintain its dividend payment of roughly $30 million per quarter. Fitch assumes excess cash will be primarily allocated to repay the RBL and for share repurchases at a later stage. Extensive Hedge Program: Crescent has lower operating netbacks than oil-focused shale peers due to the presence of mid-life assets and large proportion of natural gas and natural gas liquids in its portfolio. This leads to increased sensitivity to oil and gas price downswings. Crescent's hedging program, which is more robust than those of many other comparable upstream companies, offsets these downswings. Crescent's hedging intensity is above-average relative to peers. As of June 23, 2025, Crescent had approximately 60% and 35% of its oil production for 2025 and 2026 hedged, respectively, and around 60% of its expected natural gas production for 2025 and 2026 hedged. Simplified Corporate Structure: Crescent Energy Company's Class B shareholders exchanged their OpCo units for Class A shares in April 2025. Following the exchange, the Class B shares were cancelled. This change will result in dividends previously paid to non-controlling OpCo unit holders now being paid to common shareholders, which will lower Fitch-calculated EBITDA leverage metrics. However, its assessment of Crescent's financial profile is unchanged because Fitch focused on Crescent's EBITDA leverage before subtracting dividends paid to non-controlling interests. Peer Analysis Crescent reported an average production of 258 kboe/d (39% oil) in 1Q25. This is higher than operators such as: SM Energy Company (BB/Stable; 197 kboe/d; 53% oil), which benefits from the strong economics of its Permian Basin weighted asset base; Permian-based Matador Resources Company (BB/Stable; 199 kboe/d; 58% oil); and Baytex Energy Corp. (BB-/Stable; 144 kboe/d before royalties; 71% oil). Crescent's production was significantly ahead of MEG Energy Corp. (BB-/Stable; 103 kboe/d before royalties; 100% oil) and Vermilion Energy Inc. (BB-/Negative; 103 kboe/d before royalties; 31% oil). Crescent has a history of low leverage though-the-cycle. Fitch believes this will continue, with EBITDA midcycle leverage of 1.6x. This is slightly above the midcycle leverage for most of its peers. In 1Q25, Crescent generated an unhedged cash netback of $19/boe. This falls materially below the peer group due to the significant presence of more mature assets and natural gas production in Crescent's portfolio. To compensate for its higher-cost profile, Crescent hedges more than its peers. Key Assumptions - WTI prices of $65/bbl in 2025, $60/bbl in 2026-2027, and $57/bbl at midcycle; - Henry Hub prices of $3.60/ mcf in 2025, $3.50/mcf in 2026, and $2.75/mcf at midcycle; - Production fluctuating around 260 kboe/d in 2025-2029; - Capex at $950 million to $1,000 million per annum in 2025-2029; - Share buybacks around $200 million annually in 2027-2029. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Midcycle EBITDA above 2.0x; - Deterioration in liquidity, including sustained high revolver utilization or large negative FCF. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improvement in netbacks relative to peers; - Capital allocation involving debt reduction or credit-accretive M&A; - Midcycle EBITDA leverage below 1.5x; - Production volumes maintained above 250 kboe/and midcycle EBITDA exceeding $1.5 billion. Liquidity and Debt Structure As of March 31, 2025, Crescent had $6 million of cash on hand and $1.4 billion available under its $2.0 billion RBL. The RBL expires in 2029 with a springing maturity in November 2027. The facility's borrowing base is $2.6 billion. Crescent's other debt consisted of unsecured notes maturing in 2028, 2032, 2033, and 2034. The company's total debt was $3.6 billion as of March 31, 2025. In 2Q25, the new bond issuance partially repaid around $66 million outstanding from the RBL and tendered roughly $300 million outstanding from the 2028 notes in July. The company also redeemed roughly $190 million of the 2034 notes. Fitch projects that the company's liquidity will be supported by positive FCF generation, based on its oil and gas price assumptions. Issuer Profile Crescent is a public oil and gas company that produces about 260 kboe/d (39% oil). Around 75% of its production comes from the Eagle Ford area. The remainder comes from Uinta basin, Wyoming conventional assets, and smaller U.S. onshore positions. 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 ----------- ------ -------- ----- Crescent Energy Company LT IDR BB- Affirmed BB- Crescent Energy Finance LLC LT IDR BB- Affirmed BB- senior secured LT BB+ Affirmed RR1 BB+ senior unsecured LT BB- Affirmed RR4 BB- D RAIL TRANSPORT: Seeks Chapter 11 Bankruptcy in Georgia -------------------------------------------------------- On July 29, 2025, D Rail Transport LLC filed Chapter 11 protection in the Middle District of Georgia. 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 D Rail Transport LLC D Rail Transport LLC provides flatbed freight transportation services across the eastern United States. The Company operates a small fleet of trucks and trailers and is based in Climax, Georgia. D Rail Transport LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Ga. Case No. 25-10689) on July 29, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by G. Daniel Taylor, Esq. at STONE & BAXTER, LLP. DALIO HOLDINGS I: Seeks Chapter 11 Bankruptcy in Texas ------------------------------------------------------ On July 30, 2025, Dalio Holdings I LLC filed Chapter 11 protection in the Western District of Texas. According to court filing, the Debtor reports between $10 million and $50 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Dalio Holdings I LLC Dalio Holdings I LLC is a Houston-based holding company. Dalio Holdings I LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-11157) on July 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. The Debtor is represented by Ronald Smeberg, Esq. at The Smeberg Law Firm. DALIO HOLDINGS: Case Summary & Three Unsecured Creditors -------------------------------------------------------- Debtor: Dalio Holdings I LLC 1001 W. Loop S, Suite 700 Houston, TX 77027 Business Description: Dalio Holdings I LLC is a Houston-based real estate investment company that acquires distressed debt secured by commercial properties. Its operations include foreclosure and resale of assets through affiliated entities. Chapter 11 Petition Date: July 30, 2025 Court: United States Bankruptcy Court Western District of Texas Case No.: 25-11157 Judge: Hon. Shad Robinson Debtor's Counsel: Ronald Smeberg, Esq. THE SMEBERG LAW FIRM 4 Imperial Oaks San Antonio TX 78248-1609 Tel: (210) 695-6684 Email: ron@smeberg.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Ali Choudhri as manager. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/WFBCC5Q/Dalio_Holdings_I_LLC__txwbke-25-11157__0001.0.pdf?mcid=tGE4TAMA List of Debtor's Three Unsecured Creditors: Entity Nature of Claim Claim Amount 1. WCW Houston Properties, LLC Judgment $9,118,431 3657 Briarpark Dr Ste 188 Houston, TX 77042 2. Ali Mokaram Arbitration $3,461,217 2500 W Loop Ste 450 Agreement Houston, TX 77027 3. Erika Nemeti, Exec. Estate Judgment $294,152 of Edi Nemeti DECO GROUP: Court Oks Restaurant Equipment Sale to Texan - 1836 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, has approved Deco Group LLC to sell Property, free and clear of liens, claims, and encumbrances. The Debtor operates a fast-food style hamburger restaurant, as well as a full-service steakhouse. The Court has authorized the Debtor to sell restaurant equipment to the Texan - 1836 LLC for the value of $37,265.00. The sale of such property shall be free and clear of all liens, claims and encumbrances. Details of the equipment that will be sold can be found at: https://shorturl.at/EupeL The Court held that the secured taxes for Walker County Appraisal District (Walker CAD) for tax years 2025 Tax Claims) shall be assumed in full by The Texan and paid in the ordinary course of business when due. The liens of Walker CAD shall remain attached to the Property until the Tax Claims are paid in full. If not timely paid, Walker CAD may proceed with non-bankruptcy collections against The Texan and the Property without leave or approval of the court. Any agreements as to proration of the Tax Claims is strictly between the Debtor and The Texan and does not impact the Texan’s liability as to the Tax Claims. All parties' rights to object to the priority, validity, amount and extent of the claims of Walker CAD are preserved. About Deco Group LLC Deco Group, LLC runs and oversees both a quick-service restaurant and a full-service restaurant business in Bryan, Texas. Deco Group sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 25-31252) on March 4, 2025, listing $106,682 in assets and $2,238,074 in debts. John Mathews, Deco Group manager, signed the petition. Judge Jeffrey P. Norman oversees the case. Robert C. Lane, Esq., at the Lane Law Firm, represents the Debtor as bankruptcy counsel. DEL MONTE PACIFIC: Reports Net Loss $742.2MM in 4th Quarter ----------------------------------------------------------- Low De Wei of Bloomberg News reports that Del Monte Pacific posted a fourth-quarter net loss of $742.2 million, compared with a $78.6 million loss in the same period last 2024. Meanwhile, revenue is $191.9 million, up 5.4% year over year. About Del Monte Foods Founded in 1886 and headquartered in Walnut Creek, California, the Del Monte business has been a cornerstone of American grocery stores for more than 130 years. Del Monte Foods has been driven by its mission to nourish families with earth's goodness. As the original plant-based food company, Del Monte is always innovating to make nutritious and delicious foods more accessible to consumers across its portfolio of beloved brands, including Del Monte, Contadina, College Inn, Kitchen Basics, JOYBA, Take Root Organics and S&W. On the Web: http://www.delmontefoods.com/or http://www.joyba.com/ On July 1, 2025, Del Monte Foods Corporation II, Inc., and 17 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D.N.J. Lead Case No. 25-16984) to address $1.235 billion in funded debt obligations. The Debtors' bankruptcy cases are pending before the Honorable Michael B. Kaplan. Herbert Smith Freehills Kramer (US) LLP and Cole Schotz P.C. are serving as legal counsel to Del Monte, Alvarez & Marsal North America, LLC is serving as financial advisor, and PJT Partners is serving as investment banker to the Company. Stretto is the claims agent. Wilmington Savings Fund Society, FSB, as DIP Term Loan Agent, is represented by ArentFox Schiff LLP. JPMorgan Chase Bank, N.A., as Prepetition and DIP ABL Agent, is represented by Greenberg Traurig, LLP and Simpson Thacher & Bartlett LLP. The Official Committee of Unsecured Creditors of Del Monte Foods Corporation II Inc. has retained Morrison Foerster and Kelley Drye & Warren LLP as counsel. DENOYER-GEPPERT: Seeks Subchapter V Bankruptcy in Illinois ---------------------------------------------------------- On July 30, 2025, Denoyer-Geppert Science Company filed Chapter 11 protection in the Northern District of Illinois. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will not be available to unsecured creditors. About Denoyer-Geppert Science Company Denoyer-Geppert Science Company manufactures scientific models, charts and simulators -- particularly for human anatomy, biology and chemistry education -- from its headquarters in Illinois, serving educators and medical professionals since its founding in 1916. Denoyer-Geppert Science Company sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-11605) on July 30, 2025. In its petition, the Debtor reports estimated assets between $50,000 and $100,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Jacqueline P. Cox handles the case. The Debtor is represented by David R. Herzog, Esq. at DAVID R HERZOG. DESKTOP METAL: Secures Court Ok for $10MM Sale to Finance Ch. 11 ---------------------------------------------------------------- Clara Geoghegan of Law360 Bankruptcy Authority reports that on Thursday, July 31, 2025, a Texas bankruptcy judge authorized 3D printer maker Desktop Metal to sell its foreign subsidiaries for $10 million as the company continues seeking a buyer for its remaining Chapter 11 assets. About Desktop Metal Inc. Desktop Metal designs and markets 3D printing systems. ExOne's business primarily consisted of manufacturing and selling 3D printing machines and printing products to specification for its customers for both direct and indirect applications. ExOne offered its pre-production collaboration and print products for customers through its network of ExOne Adoption Centers and supplied the associated materials, including consumables and replacements parts, and other services, including training and technical support, necessary for purchasers of its 3D printing machines to print products. Desktop Metal sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90268 (CML). Judge Christopher M. Lopez presides over the case. Benjamin Lawrence Wallen at Pachulski Stang Ziehl & Jones LLP serves as the debtor's counsel. DOC VENTURES: Court OKs Lubbock Property Sale for $180K ------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, has permitted Doc Ventures to sell Property, free and clear of liens, claims, and encumbrances. The Debtor owns one significant asset: a residential property located at 6027 13th Street, Lubbock, Texas (Property). The Property is valued at approximately $180,000, with secured claims totaling approximately $130,000.00. The Court has authorized the Debtor to sell the Property. The Court has determined that the Debtor, in the exercise of its sound business judgment, the sale of the Property is in the best interest of the estate and its creditors. The sale of the Property shall be conducted as a private sale, subject to higher and better offers, with all creditors receiving notice and an opportunity to object. The Court also found that the contingent buyer, if any, shall be entitled to receive up to 20% of the difference between the initial offer price and any higher and better offer ultimately approved by the Court, as a break-up fee to incentivize competitive bidding. About Doc Ventures Doc Ventures, LLC sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-32595) on August 29, 2024, listing $100,001 to $500,000 in both assets and liabilities. Judge Stacey G Jernigan presides over the case. David D. Ritter, Esq. at Ritter Spencer Cheng PLLC represents the Debtor as counsel. The First National Bank of Aspermont, as lender, is represented by: Ashley N. Pirtle, Esq. Crenshaw Dupree & Milam, L.L.P. P.O. Box 64479 Lubbock, TX 79464-4479 (806) 762-5281 Telephone (806) 762-3510 Facsimile apirtle@cdmlaw.com DOLCHE TRUCKLOAD: Gets OK to Obtain Financing, Use Cash Collateral ------------------------------------------------------------------ Dolche Truckload Corp. received approval from the U.S. Bankruptcy Court for the Northern District of Illinois to obtain post-petition financing through a factoring agreement with WEX Capital. Wex Capital has agreed to provide the Debtor with post-petition liquidity by purchasing its outstanding accounts receivables not previously factored while making cash advances, subject to the terms set forth in the factoring agreement. Under the terms of the agreement, WEX Capital may, in its sole discretion, purchase the Debtor's eligible post-petition accounts receivables and advance up to 95% of the face value of such accounts. The maximum amount of credit available is $1.75 million. In exchange, the Debtor granted WEX Capital a security interest in certain assets as collateral for its obligations to the lender, including the lender's attorneys' fees in an amount not to exceed $5,500. These obligations constitute a superpriority administrative expense claim under Section 364(c)(1) of the Bankruptcy Code, according to the bankruptcy court's order. An event of default under the court order includes the Debtor's failure to perform or comply with the order or the agreement; the termination of the order; and the dismissal or conversion of the Debtor's case. The Debor must cure this default within 10 business days from service of notice. In addition to the financing, the Debtor was granted authorization to use existing cash collateral. The court's order regarding cash collateral will remain in effect until September 26. A further hearing on the use of cash collateral will take place on September 24. About Dolche Truckload Corp. Dolche Truckload Corp. provides full truckload transportation services across the United States, including refrigerated, dry van, and hazardous materials freight. The Company operates a fleet of trucks and offers tailored logistics solutions from its headquarters in Palatine, Illinois. Dolche Truckload sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-09093) on June 15, 2025. In its petition, the Debtor reported total assets of $1,944,419 and total liabilities of $3,410,448. Judge Deborah L. Thorne handles the case. The Debtor is represented by: David Freydin, Esq. Law Offices Of David Freydin Ltd Tel: 630-516-9990 david.freydin@freydinlaw.com DRSN GROUP: Files Emergency Bid to Use Cash Collateral ------------------------------------------------------ DRSN Group, LLC asked the U.S. Bankruptcy Court for the Northern District of Georgia, Atlanta Division, for authority to use cash collateral and provide adequate protection. The Debtor is an online retailer specializing in furniture and home décor. It was formed in June 2020 to acquire the intellectual property of the Wisteria brand and launched operations in March 2021 as a direct-to-consumer business. Since its inception, the Debtor has faced significant economic challenges, including the COVID-19 pandemic, supply chain disruptions, inflation, rising fuel costs, and a downturn in the housing market. More recently, tariffs have increased the cost of imports, further squeezing profitability. These financial pressures ultimately led the Debtor to seek bankruptcy protection in order to restructure and preserve its business. Certain creditors, including Shopify Capital, Inc., JPMorgan Chase Bank, and Innovation Refunds, are believed to hold pre-petition liens on the Debtor's cash and revenue. The Debtor requested authorization to use this cash collateral to cover necessary business expenses such as payroll, rent, and vendor payments, all in the ordinary course and in accordance with the submitted budget. To adequately protect the lenders' interests, the Debtor proposed granting them replacement liens on post-petition assets of the same type, extent, and priority as their pre-petition liens, excluding any recovery from Chapter 5 avoidance actions. About DRSN Group LLC DRSN Group LLC, dba Wisteria, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-58190-bem) on July 23, 2025. In the petition signed by Dominic Respoli, co-chairman, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Judge Barbara Ellis-Monro oversees the case. Will Geer, Esq., at Rountree, Leitman, Klein & Geer, LLC, represents the Debtor as legal counsel. E.W. SCRIPPS: Fitch Hikes Rating on LongTerm IDR to 'CCC' --------------------------------------------------------- Fitch Ratings has upgraded The E.W. Scripps Company's Long-Term Issuer Default Rating (IDR) to 'CCC' from 'CCC-'. Fitch has also upgraded Scripps' senior secured debt to 'B' with a Recovery Rating of 'RR1', from 'B-'/'RR1', and senior unsecured debt to 'CC'/'RR6' from 'C'/'RR6'. In addition, Fitch has assigned a 'CCC-'/'RR5' rating to Scripps' new senior secured second-lien debt. The upgrade of the Long-Term IDR reflects Scripps' recent refinancing, which addresses the significant 2027 maturity and reduces its highest-cost debt. These actions improve Scripps' near-term liquidity position. However, long-term structural challenges in the TV broadcasting industry continue to weigh on the company's credit profile. Scripps continues to experience increased average EBITDA leverage, particularly in non-political years. Fitch estimates Scripps will face $1.8 billion in debt maturities over the next four years, even with the new second lien issuance. Scripps' reliance on favorable capital markets to sustain its operations increases its vulnerability to shifts in market conditions, which could have a negative effect on credit quality. Fitch is withdrawing Scripps' 2027 unsecured bond ratings, as the bonds were pre-refunded. Key Rating Drivers Recent Refinancings Create Breathing Room: Scripps addressed its near-term maturity obligations over the first half of 2025, enhancing liquidity. This new second lien financing will materially reduce Scripps' obligations through 2028 and give the company room to take further steps to improve its capital structure. Reliant on Favorable Capital Markets: Fitch believes Scripps is unlikely to organically grow into its capital structure over the rating horizon through 2028, even after the recent refinancings. Thus, Scripps will continue to require favorable credit conditions to extend maturities. Local Television Remains Under Pressure: The trend of national networks retaining exclusive sports and entertainment content on their direct-to-consumer platforms, rather than distributing it through local broadcast affiliates, increases pressure on Scripps' traditional distribution model and may constrain long-term revenue growth. In addition, Scripps has not demonstrated consistent core advertising growth, which could weigh on credit quality. Highest National Advertising Exposure: The national advertising market has slowed over the past four years due to high post-pandemic interest rates that have constrained budgets and intensified competition from digital media. Digital advertising provides better targeting than traditional linear media. This has weighed on Scripps' national advertising performance as key sectors, such as automotive, travel, retail and financial services, have yet to recover to pre-pandemic levels. As a result, Scripps continues to lag peers with a more balanced national and local media presence. Retransmission Revenue Growth Challenges: Growth in Scripps' high-margin retransmission business may be nearing a peak, as rising cable network costs and continuing subscriber losses - driven by the shift to alternative video content distributors - pressure the segment. This trend will increase Scripps' dependence on core advertising, reflecting a more volatile operating profile. Peer Analysis Scripps' 'CCC' rating reflects improved liquidity and manageable near-term maturity obligations, offset by accelerating long-term structural challenges and declining profitability. Fitch considers profitability and financial flexibility to be under pressure from national advertising spending that has trended below Fitch's expectations, as well as higher TV cable churn rates. Resilient local advertising demand and a consistent, albeit slowing, retransmission revenue stream provide some offset to these pressures. Key Assumptions Fitch's Key Assumptions Within the Rating Case for the Issuer: - Core advertising to decline by a mid- to high-single-digit in 2025 due to slower demand at both local and national levels during a non-political year, coupled with a deceleration in advertising expenditure caused by macroeconomic uncertainty related to the implementation of tariffs by the current U.S. administration; - A modest recovery in core advertising in 2026, driven by the non-presidential political year and global media events, although offset by tariffs and weakened consumer confidence, resulting in low single-digit growth, and then average mid-single-digit growth per year in 2027 and 2028; - Retransmission and carriage revenue generation faces significant secular challenges, primarily driven by increasingly higher TV cable churn rates due to increasing popularity of streaming services, reflecting a declining trend at a low-single-digit pace over the next four years; - Scripps Network revenue increases in the low single digits in 2025 and 2026, but then gradually declines at a low single-digit pace by 2028, driven by lower rates of renewal in 2025 through 2028; - EBITDA margins fluctuate, reflecting even-year political revenues, but improve due to a mix shift toward higher-margin retransmission revenue and an improved cost structure resulting in margins fluctuating between 15% and 19% over the rating horizon through 2028; - Capex intensity around 2.75% of total revenue annually. Recovery Analysis The recovery analysis assumes Scripps would be considered a going concern in bankruptcy and reorganized rather than liquidated, with a 10% administrative claim applied. EBITDA: Scripps' going-concern EBITDA is based on pro forma LQ8A EBITDA. Fitch assumes post-bankruptcy operating performance will emerge under stress, reflecting consistent and increasing declines in TV cable subscribers, a weakened cable network position that challenges cost management in the retransmission segment, and sluggish advertising markets. Fitch anticipates traditional media, including television, to be disproportionately affected by declining advertising and rising alternative media competition. As a result, Fitch estimates a going-concern EBITDA of $400 million, representing erosion of its two-year average EBITDA results to a reasonable base level. Multiple: Fitch applies a 5.5x distressed enterprise value multiple, reflecting the value of Scripps' FCC licenses in small- and medium-sized U.S. markets. This aligns with the median telecom, media, and technology emergence enterprise value/EBITDA multiple of 5.5x. The analysis also considers: - Public trading enterprise value/EBITDA multiples typically between 8.0x and 11.0x; - Recent M&A transaction multiples of 7.0x to 9.0x, including synergies (e.g., Gray Television's acquisition of Raycom Media at 7.8x, Apollo Global Management's acquisition of Cox Media at 9.5x, Nexstar Media Group's acquisition of Tribune Media at 7.5x, and Nexstar's divestiture of 22 stations at a blended 7.5x); - Scripps' acquisition of 15 television stations from Cordillera Communications at 8.3x and eight stations from Nexstar at 8.1x of average two-year EBITDA. Fitch estimates an adjusted, distressed enterprise valuation of about $2.0 billion. This results in the following Recovery Ratings: - 'B'/'RR1' for senior secured debt; - 'CCC-'/'RR5' for second-lien senior secured debt; and, - 'CC'/'RR6' for unsecured debt. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Another distressed debt exchange transaction as defined by Fitch's "Corporate Rating Criteria" or the commencement of a bankruptcy process; - Further liquidity constraints; - Erosion of revenue and EBITDA growth, on two-year average basis. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Demonstrated execution of operational improvements resulting in EBITDA margin expansion, leading to stronger FCF and an improved liquidity position; - Material decrease in the maturity wall through 2029. Liquidity and Debt Structure As of March 31, 2025, Scripps had around $24 million in cash and cash equivalents and about $551 million available to borrow under its existing revolving credit facility due in 2026, net of $9 million in outstanding letters of credit, resulting in a total liquidity position of $575 million. Pro forma for the refinancing transactions executed in April 2025, Scripps had $362 million outstanding under its accounts receivable securitization facility, $70 million under its non-extended revolving facility due on Jan. 7, 2026, marking the company's next debt maturity, and $107 million under its new $208 million revolving credit facility due in 2028. Following the transaction, the company had a pro forma liquidity position of $125 million, consisting of $24 million in cash and equivalents and about $101 million in borrowing capacity from the new facility. The new credit agreement governs the new revolving credit facilities and senior secured term loan Bs. The credit agreement contains a springing maturity if the 2027 unsecured notes are not fully refinanced 180 days prior to maturity. Issuer Profile Scripps is the fourth-largest TV broadcaster in the U.S. with 60 stations in 40+ markets, serving audiences through a diversified portfolio of local and national media brands. 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 ----------- ------ -------- ----- The E.W. Scripps Company LT IDR CCC Upgrade CCC- senior secured LT CCC- New Rating RR5 senior unsecured LT CC Upgrade RR6 C senior unsecured LT WD Withdrawn senior secured LT B Upgrade RR1 B- ECHOSTAR CORP: Regulators Push for Spectrum Sale to Resolve Dispute ------------------------------------------------------------------- Kelcee Griffis and Reshmi Basu of Bloomberg News report that EchoStar Corp., a broadband provider that has missed debt payments, is facing pressure from federal regulators to sell portions of its wireless spectrum amid concerns over unused airwaves. Federal Communications Commission Chairman Brendan Carr has urged the company to pursue a sale of its AWS-4 band licenses, according to sources familiar with the matter. Carr has reportedly delivered his "best and final" proposal to co-founder and Chairman Charlie Ergen, the sources said, requesting anonymity to discuss private talks. About Echostar Headquartered in Englewood, Colorado, EchoStar Corporation is a holding company that was organized in October 2007 as a corporation under the laws of the State of Nevada. Its subsidiaries operate four primary business segments: (1) Pay-TV; (2) Retail Wireless; (3) 5G Network Deployment; and (4) Broadband and Satellite Services. As of December 31, 2024, EchoStar had $60.9 billion in total assets, $40.7 billion in total liabilities, and total stockholders' equity of $20.2 billion. ELITE PRINTING: Gets Final OK to Use Cash Collateral Until Sept. 8 ------------------------------------------------------------------ Elite Printing & Packaging Inc. received final approval from the U.S. Bankruptcy Court for the Eastern District of Missouri to use cash collateral of U.S. Bank, National Association and Newtek Bank to operate. The final order authorized the Debtor to use cash collateral for post-petition expenses listed in the approved budget, subject to variances not to exceed 10% of any expense line item. As adequate protection, U.S. Bank and Newtek will receive monthly payments and, subject to the $70,000 fee carveout, a valid and perfected security interest in, and liens on, the cash collateral. These liens do not apply to causes of action. The final order will remain in effect until September 8 or upon payoff of debts to the secured creditors. U.S. Bank (with loans totaling approximately $1.65 million) and Newtek (with loans totaling approximately $2.05 million) are both secured by liens on the Debtor's assets, including equipment, inventory, and receivables. The Debtor also has merchant cash advance lenders, whose liens it disputes but claims they do not affect the current cash collateral. U.S. Bank N.A., as secured creditor, is represented by: Mark V. Bossi, Esq. Thompson Coburn, LLP One US Bank Plaza St. Louis, MO 63101 Phone: (314)552-6000 Fax: (314) 552-7000 mbossi@thompsoncoburn.com Newtek Bank, as secured creditor, is represented by: Christopher D. Lee, Esq. Sandberg Phoenix & von Gontard, P.C. 701 Market Street, Suite 600 St. Louis, MO 63101 Phone: (314) 725-9100 Fax: (314) 725-5754 clee@sandbergphoenix.com About Elite Printing & Packaging Inc. Elite Printing & Packaging, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (E.D. Mo. Case No. 25-41743) on May 5, 2025, listing up to $10 million in both assets and liabilities. Michael K. Sloan, president of Elite Printing & Packaging, signed the petition. Judge Kathy A. Surratt-States oversees the case. Spencer Desai, Esq., at The Desai Law Firm, represents the Debtor as bankruptcy counsel. EVALINA LLC: Case Summary & Three Unsecured Creditors ----------------------------------------------------- Debtor: Evalina LLC d/b/a Ixchel Skin and Body Medical Spa 22299 State Road 54, Suite 105 Lutz, FL 33549 Business Description: Evalina LLC, doing business as Ixchel Skin and Body Medical Spa, provides cosmetic and aesthetic services across facial, body, and hair treatments. Based in Lutz, Florida, the Company offers laser procedures, microneedling, injectables, IV therapy, body contouring, hair restoration, and skincare treatments. Chapter 11 Petition Date: July 30, 2025 Court: United States Bankruptcy Court Middle District of Florida Case No.: 25-05306 Judge: Catherine Peek McEwen Debtor's Counsel: Harley E. Riedel, Esq. STICHTER, RIEDEL, BLAIN & POSTLER, P.A. 110 E. Madison St. Suite 200 Tampa, FA 33602 Tel: (813) 229-0144 E-mail: hriedel@srpb.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Janice B. Huckaby as manager. A copy of the Debtor's list of three unsecured creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/KDDTWUA/Evalina_LLC__flmbke-25-05306__0002.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/KGJ5GTA/Evalina_LLC__flmbke-25-05306__0001.0.pdf?mcid=tGE4TAMA FCI SAND OPERATIONS: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: FCI Sand Operations, LLC 606 County Road 121 Marble Falls, TX 78654-3856 Business Description: FCI Sand Operations, LLC produces and supplies industrial and frac sand used in hydraulic fracturing and other energy- related applications. Chapter 11 Petition Date: July 30, 2025 Court: United States Bankruptcy Court Northern District of Texas Case No.: 25-80481 Judge: Hon. 25-80481 Debtor's Counsel: Davor Rukavina, Esq. MUNSCH HARDT KOPF & HARR, P.C. 500 N. Akard St., Ste. 4000 Dallas, TX 75201 Tel: 214-855-7500 E-mail: drukavina@munsch.com Estimated Assets: $100 million to $500 million Estimated Liabilities: $100 million to $500 million The petition was signed by John Nelson as director and vice president. The Debtor did not submit the required list of its 20 largest unsecured creditors when filing the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/FK5VBNA/FCI_Sand_Operations_LLC__txnbke-25-80481__0001.0.pdf?mcid=tGE4TAMA FCI SAND: Seeks Chapter 11 Bankruptcy in Texas ---------------------------------------------- On July 30, 2025, FCI Sand Operations LLC filed Chapter 11 protection in the Northern District of Texas. According to court filing, the Debtor reports between $100 million and $500 million in debt owed to 100 and 199 creditors. The petition states funds will be available to unsecured creditors. About FCI Sand Operations LLC FCI Sand Operations LLC is a sand mining and processing company based in Marble Falls, Texas. FCI Sand Operations LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-80481) on July 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million each. The Debtor is represented by Davor Rukavina, Esq. at Munsch Hardt Kopf & Harr, P.C. FCI SOUTH: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: FCI South, LLC 13201 FM Road 812 Del Valle, TX 78617 Business Description: FCI South, LLC is affiliated with FCI Sand Operations, LLC, a frac sand supplier based in Texas. The Company operates from Del Valle, Texas, and is part of a group involved in industrial materials and related infrastructure. Chapter 11 Petition Date: July 30, 2025 Court: United States Bankruptcy Court Northern District of Texas Case No.: 25-32838 Judge: Hon. Scott W. Everett Debtor's Counsel: Davor Rukavina, Esq. MUNSCH HARDT KOPF & HARR, P.C. 500 N. Akard St., Suite 4000 Dallas, TX 75201 Tel: 214-855-7500 E-mail: drukavina@munsch.com Estimated Assets: $50 million to $100 million Estimated Liabilities: $50 million to $100 million The petition was signed by John Nelson as 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/GDXLCGA/FCI_South_LLC__txnbke-25-32838__0001.0.pdf?mcid=tGE4TAMA FISCHER AG: Case Summary & 12 Unsecured Creditors ------------------------------------------------- Debtor: Fischer AG, LLC d/b/a Fischer Trucking 118 Wells Road Truxton, MO 63381 Business Description: Fischer AG, LLC, doing business as Fischer Trucking, provides interstate freight transportation services. The Company hauls general freight, agricultural products, dry bulk commodities, and metal goods. It operates from Missouri with a small fleet serving regional and interstate routes. Chapter 11 Petition Date: July 30, 2025 Court: United States Bankruptcy Court Eastern District of Missouri Case No.: 25-20127 Debtor's Counsel: David M. Dare, Esq. HERREN, DARE & STREETT 439 S. Kirkwood Road, Suite 204 St. Louis, MO 63122 Tel: 314-965-3373 Fax: 314-965-2225 E-mail: hdsstl@hdsstl.com Total Assets: $2,643,600 Total Liabilities: $2,420,098 The petition was signed by Chris Fischer as owner. A full-text copy of the petition, which includes a list of the Debtor's 12 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/DHRCOZA/Fischer_AG_LLC__moebke-25-20127__0001.0.pdf?mcid=tGE4TAMA FRED RAU: Court Extends Cash Collateral Access to Aug. 17 --------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of California, Fresno Division granted Fred Rau Dairy Inc.'s motion to use cash collateral. The court authorized the Debtor's interim use of cash collateral, including those funds in its Wells Fargo accounts, until August 17 in accordance with its budget, with a 10% line-item variance. As adequate protection, creditors, including AgWest Farm Credit, FLCA and AgWest Farm Credit, PCA, with security interests in the cash collateral will be granted replacement liens on all of the Debtor's assets, with the same validity and priority as their pre-bankruptcy liens. AgWest Farm Credit, FLCA and AgWest Farm Credit, PCA may, but are not required to, seek payments as protection. A continued hearing is scheduled for August 13. About Fred Rau Dairy Inc. Fred Rau Dairy, Inc. operates a large-scale dairy farm in Fresno, California. The family-owned business utilizes advanced robotic milking systems and automated feeding technologies. It has been part of the regional agricultural sector since 1976. Fred Rau Dairy sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. 25-11791) on May 29, 2025. In its petition, the Debtor reported between $10 million and $50 million in both assets and liabilities. Judge Jennifer E. Niemann handles the case. The Debtor is represented by: Peter L Fear Fear Waddell, P.C. Tel: 559-436-6575 Email: fearnotice@gmail.com FRED RAU: Hires Boos & Associates LLC as Financial Consultant ------------------------------------------------------------- Fred Rau Dairy, Inc. received approval from the U.S. Bankruptcy Court for the Eastern District of California to employ Boos & Associates, P.C. as its financial consultant and accountant. The firm will render these services: a. prepare farming budgets and projections, including budgets for use of cash collateral for properties with assignment of rents provisions, as well as plan projections; b. review and analysis of Debtors' bookkeeping practices and advice regarding any changes needed; c. analyze financial and tax issues related to disposition of assets; d. prepare monthly operating reports; e. prepare past years' tax returns, and related communications with taxing authorities; and f. other financial and accounting tasks, as requested by Debtors. The firm will be paid at these hourly rates: Director/Managing Director/Principal $360 to $450 Manager/Senior Manager $295 to $325 Associate/Senior Associate $160 to $240 Associate Intern $70 In addition, the firm will seek reimbursement for its out-of-pocket expenses. Aaron G. Chambers, of Boos & Associates, 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: Aaron G. Chambers Boos & Associates, P.C. 405 N. I St. A Madera, CA 93637 Tel: (559) 871-5950 About Fred Rau Dairy Inc. Fred Rau Dairy, Inc. operates a large-scale dairy farm in Fresno, California. The family-owned business utilizes advanced robotic milking systems and automated feeding technologies. It has been part of the regional agricultural sector since 1976. Fred Rau Dairy sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. 25-11791) on May 29, 2025. In its petition, the Debtor reported between $10 million and $50 million in both assets and liabilities. Judge Jennifer E. Niemann handles the case. The Debtor is represented by Peter Fear, Esq., at Fear Waddell, PC. FRED RAU: Seeks to Hire Pearson Realty as Real Estate Broker ------------------------------------------------------------ Fred Rau Dairy, Inc. received approval from the U.S. Bankruptcy Court for the Eastern District of California to employ Pearson Realty as real estate broker. The broker will market the following parcels of farm property: a. 636.38 ± acres of almonds and open ground situated in the unincorporated area of Fresno County consisting of Fresno Co. Assessor’s Parcel No. 041-030-11; and b. 2,115.61 ± acres of almonds and open ground situated in the unincorporated area of Fresno County consisting of the following Fresno County Assessor’s Parcen Numbers: i. 035-150-13S which is 40 acres of open ground; ii. 035-150-43S which is 218.75 acres of pen ground and pens; iii. 035-150-44S which is 636.36 acres of open ground; iv. 041-030-02S which is 305.5 acres planted with almonds; v. 041-030-18S which is 320 acres planted with almonds; and vi. 041-030-43S which is 595 acres of open ground. The broker will receive a commission in an amount equal to 4 percent of the purchase price for the properties. In no event shall the commission ever exceed 4 percent. In the event that the properties are sold on an overbid to a buyer not procured by Broker, the broker will nonetheless be entitled to receive a brokerage fee equal to 50 percent of the allowed commission. As disclosed in the court filings, Pearson Realty is a "disinterested person" as defined in 11 U.S.C. Sec. 101 (14), as required by 11 U.S.C. Sec. 327(A), and does not hold or represent an interest adverse to the estate. The firm can be reached through: Stanley Kjar Jr. Pearson Realty 7480 N. Palm Avenue, Suite 101 Fresno, CA 93711 Telephone: (559) 260-2622 Email: skjar@pearsonrealty.com About Fred Rau Dairy Inc. Fred Rau Dairy, Inc. operates a large-scale dairy farm in Fresno, California. The family-owned business utilizes advanced robotic milking systems and automated feeding technologies. It has been part of the regional agricultural sector since 1976. Fred Rau Dairy sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. 25-11791) on May 29, 2025. In its petition, the Debtor reported between $10 million and $50 million in both assets and liabilities. Judge Jennifer E. Niemann handles the case. The Debtor is represented by Peter Fear, Esq., at Fear Waddell, PC. GENESIS HEALTHCARE: Maine Nursing Homes Won't Close Despite Ch. 11 ------------------------------------------------------------------ Pearl Small of News Center Maine reports that Genesis HealthCare, which operates nursing homes in 17 states including Maine, has filed for Chapter 11 bankruptcy as part of a planned financial restructuring. The company, which owns 11 nursing homes in Maine, said the filing will not impact patient care or result in closures. Its facilities in the state span from Kennebunkport to Orono. In a statement, Genesis said the restructuring will allow it to access $30 million in debtor-in-possession financing, subject to court approval, to support ongoing operations during the process. "The goal of this filing is to emerge a stronger, healthier company, poised to meet and exceed our clinical and operational goals," said the company's board chairman. Genesis' Maine operations have faced scrutiny for years. Federal inspection records show that several facilities have struggled to meet national care standards, the report cites. The Centers for Medicare and Medicaid Services (CMS) oversees the Special Focus Facility (SFF) program, which monitors homes with repeated or severe care deficiencies. In 2019, four of Maine's five SFF-flagged facilities were Genesis-owned, including Marshwood Center in Lewiston, which remained under enhanced federal oversight until 2021, according to report. As of March 2025, a different Genesis property, Windward Gardens in Camden, is on the SFF list, with two additional Genesis centers flagged for potential inclusion. Despite these ongoing challenges, Genesis said the bankruptcy process will not affect operations or resident care. 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. GILBERT LEGGETT: Gets OK to Use Cash Collateral Until Aug. 13 ------------------------------------------------------------- Gilbert Leggett Farms, Inc. got the green light from the U.S. Bankruptcy Court for the Eastern District of North Carolina to use cash collateral. The court's order authorized the Debtor's interim use of cash collateral from July 16 to August 13 to pay the expenses set forth in its budget, with a 10% variance allowed per line item. Secured creditors Ag Resource Management/Agrifund, LLC and AgCarolina Farm Credit, ACA assert liens on the Debtor's assets, including cash collateral. A subordination agreement gives Agrifund a first priority status. As adequate protection, the security interests granted to the secured creditors under their respective pre-bankruptcy loan agreements will continue to attach to the collateral set forth in the loan agreements with respect to property acquired by the Debtor after the petition date. These security interests will have the same relative priority and extent as the security interests that existed as of the petition date but the scope will be limited to the Debtor's use of cash collateral. The interim order will remain in full force and effect until the earlier of August 13 unless terminated earlier by agreement; entry of an order by the court terminating the interim order for cause, including but not limited to, breach of its terms and conditions; confirmation of a plan of reorganization; or upon filing of a notice of default, whichever comes first. The next hearing is scheduled for August 12. Agrifund is represented by: Ciara L. Rogers, Esq. Waldrep Wall Babcock & Bailey, PLLC 3600 Glenwood Avenue, Suite 210 Raleigh, NC 27612 Telephone: 919-589-7985 crogers@waldrepwall.com AgCarolina is represented by: Matthew P. Weiner, Esq. Poyner Spruill, LLP P.O. Box 1801 Raleigh, NC 27602-1801 Telephone: (919) 783-6400 Facsimile (919) 783-1075 mweiner@poynerspruill.com About Gilbert Leggett Farms Inc. Gilbert Leggett Farms, Inc. grows and sells sweet potato seed plants, including the Covington variety, and is also involved in cultivating crops such as peanuts, sweet corn, and cotton. Gilbert Leggett Farms sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-02668) on July 14, 2025. In its petition, the Debtor reported total assets of $2,329,639 and total liabilities of $2,340,328. Judge Pamela W. Mcafee handles the case. The Debtor is represented by: David J. Haidt, Esq. Ayers & Haidt, P.A. Tel: 252-638-2955 david@ayershaidt.com GOAK PROPERTIES: Hires HomeSmart a Rental Real Estate Agent ----------------------------------------------------------- Goak Properties LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Alisha Gillooly of HomeSmart a rental real estate agent. The Debtor owns certain real property located at 6408 Radiant Trace, Atlanta, GA 30328. The agent will render these services: a) make an inspection of the real property: b) market the Real Property to potential tenants; c) facilitate lease agreements with tenants; and c) provide such other work as may be indicated by the Agent's analysis of the real property, the Debtor, and the Estate. Homecare has agreed to perform the services for a contingent fee of $1,500 in the event agent procures a person ready, willing and able to rent the Property for a price of not less than $8,000 a month. As disclosed in the court filings, HomeSmart is a "disinterested person" as defined in 11 U.S.C. Sec. 101 (14), as required by 11 U.S.C. Sec. 327(A), and does not hold or represent an interest adverse to the estate. The agent can be reached at: Alisha Gillooly HomeSmart Atlanta, GA 30305 Tel: (404) 955-7391 Email: ivan@ivansavantteam.com About Goak Properties LLC Goak Properties LLC is a real estate company based in Sandy Springs, Georgia. Goak Properties LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-54948) on May 5, 2025. In its petition, the Debtor reports estimated assets and liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Lisa Ritchey Craig handles the case. The Debtor is represented by Cameron M. McCord, Esq. at Jones & Walden, LLC. HARRISBURG HOTEL: GGP To Sell Collateral on Aug. 27 --------------------------------------------------- GGP Hotel Harrisburg Funder LLC ("lender and "secured party") will offer for sale all of PA Hotels Equity's membership interests in Harrisburg Hotel LLC ("Debtor") on Aug. 27, 2025, at 10:00 a.m. (New York Time) at the offices of Greenberg Traurig LLP located at One Vanderbilt Avenue, New York, New York 10017. The sale is being made in connection with the foreclosure pursuant to Article 9 of the Uniform Commercial Code of the State of New York of a pledge by pledgor PA Hotels to secured party, pursuant to which pledgor granted a first priority lien on the collateral as collateral for the Debtor's obligations to the secured party under and pursuant to that certain loan agreement dated as of Oct. 5, 2021, as amended in the original principal amount of up to $23 million ("loan"). Based upon information provided by the Debtor and pledgor, it is the understanding of the secured party that pledgor holds 100% of all the membership interests in the Debtor and that the Debtor is the owner in fee simple of certain real property located at 4650 Lindle Road, Harrisburg, Pennsylvania 17111. Further information concerning the collateral, the requirements for obtaining information and bidding on the collateral and the terms of sale governing the sale of the collateral can be found in the diligence room. Contact: Brock Cannon, Newmark, brock.cannon@nmrk.com, 212-372-2066. HOPEMAN BROTHERS: Seeks to Extend Plan Exclusivity to Oct. 24 ------------------------------------------------------------- Hopeman Brothers, Inc., asked the U.S. Bankruptcy Court for the Eastern District of Virginia to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to Oct. 24 and Dec. 19, 2025, respectively. The Debtor explains that the size and complexities of its case alone justifies extending the Exclusivity Periods. Claimants have asserted over 126,000 asbestos-related claims against the Debtor, and, as of the Petition Date, almost 2,700 unresolved asbestos related claims were outstanding. The sheer number of claims the Debtor is attempting to resolve through this case necessarily makes this case large and complex. Moreover, as evidenced by the success of the meditation and the fact that the Debtor and Committee are jointly prosecuting the Plan that is scheduled to be considered by this Court at the Combined Hearing on August 25, the Debtor has made substantial progress since the Petition Date in resolving the issues facing the estate. The Debtor claims that it is not seeking an extension of the Exclusivity Periods as a leverage tactic, and creditors will not be prejudiced by extending the Exclusivity Periods. Namely, the Plan has the overwhelming support of creditors. The Debtor contemplates that following the August 25 Combined hearing, this Court will file a report and recommendation that then will require District Court approval. Alternatively, if this Court does not recommend approval of the Plan to the District Court, the Debtor will need sufficient time after the August 25 Combined Hearing to negotiate with the Committee and other parties-in-interest to file and pursue a confirmable Chapter 11 plan. Providing the Debtor with such time is important because the Debtor is the only party that is duty bound to formulate a plan that takes into account the interest of the estate and all its constituents. Accordingly, the Debtor is seeking an extension of the Exclusivity Periods to provide sufficient time for District Court review and approval of the Plan or, if this Court is not willing to recommend approval of the Plan to the District Court, for the Debtor to propose a consensual plan and solicit acceptances of such plan without the deterioration and disruption that might be caused by the filing of competing plans by non-debtor parties. Hopeman Brothers, Inc., is represented by: HUNTON ANDREWS KURTH LLP Joseph P. Rovira, Esq. Catherine A. Rankin, Esq. 600 Travis Street, Suite 4200 Houston, Texas 77002 Telephone: (713) 220-4200 HUNTON ANDREWS KURTH LLP Tyler P. Brown, Esq. Henry P. (Toby) Long, III, Esq. Riverfront Plaza, East Tower 951 East Byrd Street Richmond, Virginia 23219 Telephone: (804) 788-8200 About Hopeman Brothers Inc. During the 1980s, Hopeman Brothers, Inc. transitioned its business away from ship joining and into manufacturing check-out counters used in commercial retail stores such as Walmart. In 2002, Hopeman spun off its cabinet-making business into Cinnabar Solutions, Inc. In 2003, Hopeman sold substantially all of its remaining shipbuilding-related assets to an unrelated party, US Joiner LLC, pursuant to an asset purchase agreement, dated as of December 23, 2003. Since the asset sale in 2003, Hopeman has had no business operations and exists solely to defend and, when appropriate, settle asbestos-related claims. Hopeman Brothers filed a Chapter 11 petition (Bankr. E.D. Va. Case No. 24-32428) on June 30, 2024, with $50 million to $100 million in both assets and liabilities. The Debtor tapped Hunton Andrews Kurth, LLP as bankruptcy counsel; Blank Rome, LLP as special insurance counsel; Courington, Kiefer, Sommers, Marullo & Matherne, LLC as special asbestos counsel; and Stout Risius Ross, LLC as financial advisor. Kurtzman Carson Consultants, LLC is the claims and noticing agent. HUDSON RIVER: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed Hudson River Trading LLC's (HRT) Long-Term Issuer Default Rating (IDR) and secured debt ratings at 'BB'. The Rating Outlook is Stable. Key Rating Drivers Established Market Position: HRT's ratings reflect its established market position as a global technology-driven market maker with a focus on U.S. equities across various venues, and its ongoing, methodical expansion in other asset classes. The ratings also reflect HRT's sound operating performance in recent years, low leverage and growing capital base, a scalable business model and sound risk controls. The firm's particularly high level of employee ownership supports its rating, as risk and return interests are well aligned. Business Model and Operational Risk: Primary rating constraints include limited business diversification outside of the liquidity provision space. However, Fitch notes improving diversification by asset class of late. Rating constraints also include a reliance on transactional revenue streams, which typically fluctuate with broader market trading activity. Regulatory and Operational Risks for Market Makers: Market makers face rating constraints due to elevated market and operational risks in technology-driven trading, as well as increased regulatory scrutiny and a higher compliance burdens in some emerging markets. Of note, is the recent investigations by the Security and Exchange Board of India (SEBI) into potential market manipulation by certain market makers. Although these investigations do not target HRT specifically, they could still affect its business development in India and other markets if regulators globally tighten oversight. However, Fitch notes the firm's exposure in India is limited. HRT has not experienced any meaningful adverse regulatory findings in recent years, and Fitch considers regulatory risk appropriately managed and well embedded into the firm's risk control framework. Operating Margins Remain Supportive of Rating: HRT's profitability, measured by adjusted EBITDA to gross revenues, remains strong, supported by robust trading activity in U.S. equity markets and improved penetration in other traded assets and international markets. HRT's EBITDA margin has consistently exceeded Fitch's 'bb' category quantitative benchmark range of 10%-20% for securities firms with low balance sheet usage. Fitch expects margins to remain resilient as HRT leverages its scalable business model and expands geographically and by product. However, HRT's revenues remain highly transactional and sensitive to market conditions, which limits the strength of its business profile. Low Cash Flow Leverage: Fitch views leverage as a relative rating strength for HRT, with cash flow leverage consistently below Fitch's 'bb' category benchmark range of 2.5x to 3.5x for securities firms with low balance sheet usage. HRT's equity base has also grown significantly in recent years, driven by solid earnings retention and disciplined, risk-appropriate capital management, including reasonable distributions. Fitch expects capitalization to remain aligned with the firm's balance-sheet-light business model, as most net trading revenues come from high- frequency trading rather than overnight strategies. Any significant increase in balance sheet—especially from a shift to longer-term strategies that raise market risk—could be rating negative, though this is not Fitch's base case. Limited Funding Mix: HRT's funding profile is fully secured, consisting of corporate debt and short-term, collateralized prime broker facilities. Although its market-making activities rely on secured, confidence-sensitive prime brokerage credit, funding risk is mitigated by the high credit quality and long-standing relationships with its prime brokers. Fitch notes that margin lock-up agreements on these facilities are appropriately matched to HRT's typically shorter duration trades, extending beyond the timeframe to liquidate the portfolio under stressed market conditions. Trading capital remains sound, with a healthy buffer above margin requirements, which provides good financial flexibility during periods of heightened market volatility and unexpected increases in margin requirements. Solid Liquidity: Fitch views HRT's liquidity as adequate. The risks of its confidence-sensitive and predominantly secured funding profile are partially offset by a liquid securities inventory, which are comprised predominantly of Level 1 financial assets that could be liquidated on short notice to support liquidity if needed. HRT also benefits from strong cashflow generation and sizeable, committed settlement facilities, albeit capacity depends on the availability of unencumbered collateral. HRT also maintains a committed corporate revolving credit facility, to cover short term funding needs or operational capital expenditure if needed. Strong Interest Coverage: Interest coverage (calculated as EBITDA to interest expenses) is solid and has improved in recent quarters due to sound EBITDA generation. While coverage may fluctuate as earnings evolve in a volatile trading environment, core earnings should support an appropriate baseline level of interest coverage through the cycle. Fitch expects HRT to maintain interest coverage well above the 'bb' category quantitative benchmark range of 4.0x-6.0x for securities firms with low balance sheet usage. Stable Outlook: The Stable Outlook reflects Fitch's expectations that HRT will maintain good operating performance, modest cash flow and balance sheet leverage, sufficient liquidity in a lower volatility environment and sufficient excess trading capital over margin and covenant requirements. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - An inability to maintain leverage at or below 3.0x on a gross debt/adjusted EBITDA basis; - A substantial increase in balance sheet leverage above 15x on a net adjusted leverage basis, particularly if associated with higher market or funding risks; - A material declines in excess trading capital relative to margin requirements; - Adverse legal or regulatory actions against HRT, which results in a material fine, reputational damage, or alteration in the business profile; - Material operational or risk management failures that adversely affects profitability and/or market confidence; - An idiosyncratic liquidity event that adversely affects the firm's ability to execute on its core business strategies; and/or - An inability to maintain its market position in the face of evolving market structures and technologies, and/or a material shift into trading fewer liquid products. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Consistent operating performance, leading to sustained growth in operating income without incurring any meaningful operating losses over a longer period; - Increased funding flexibility, including demonstrated access to third party funding through market cycles, the introduction of an unsecured funding component and/or a meaningful increase in excess trading capital over margin requirements. Improved funding flexibility could also be demonstrated by meaningful improvement to term margin agreement terms with the firm's group of prime brokers; - Maintenance of cash flow leverage consistently at or below 1.5x on a gross debt/adjusted EBITDA basis; and/or - Diversification of trading platforms outside of equities and equity-related products resulting in higher levels of net trading revenue, while maintaining a limited and well managed market risk profile. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The secured term loan rating is equalized with the IDR and reflects the fully secured funding profile and average recovery prospects in a stressed scenario. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The secured term loan rating is primarily sensitive to changes in HRT's IDR and, secondarily, to material changes in HRT's capital structure and/or changes in Fitch's assessment of the recovery prospects for the debt instrument. ADJUSTMENTS The Standalone Credit Profile (SCP) has been assigned in line with the implied SCP. The Business Profile score has been assigned below the implied score due to the following adjustment reason: Business model (negative). The Earnings and Profitability score has been assigned below the implied score due to the following adjustment reason: Revenue diversification (negative). The Capitalization and Leverage score has been assigned below the implied score due to the following adjustment reason: Risk profile and business model (negative). The Funding, Liquidity and Coverage score has been assigned below the implied score due to the following adjustment reason: Business model/funding market convention (negative). 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 ----------- ------ ----- Hudson River Trading LLC LT IDR BB Affirmed BB senior secured LT BB Affirmed BB HUDSON SQUARE: Case Summary & 19 Unsecured Creditors ---------------------------------------------------- Debtor: Hudson Square Hospitality Inc. 227 Freneau Avenue Matawan, NJ 07747 Business Description: Hudson Square Hospitality Inc. operated a hospitality venue in Matawan, New Jersey, offering restaurant, lounge, and banquet services. Chapter 11 Petition Date: July 31, 2025 Court: United States Bankruptcy Court District of New Jersey Case No.: 25-18051 Debtor's Counsel: Anthony Sodono, III, Esq. McMANIMON, SCOTLAND & BAUMANN, LLC 75 Livingston Avenue Suite 201 Roseland, NJ 07068 Tel: 973-622-1800 E-mail: asodono@msbnj.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Hector Alvarez as president. 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/NXVLFEA/Hudson_Square_Hospitality_Inc__njbke-25-18051__0001.0.pdf?mcid=tGE4TAMA IGNITE OPTICSY: Amends Unsecureds & Subcontractors Claims Pay ------------------------------------------------------------- Ignite Optics Communications, LLC, submitted a Second Amended Plan of Reorganization. The Debtor firmly believes that the Plan represents the best alternative for providing the maximum value for creditors. The Plan provides creditors with a distribution on their Claims in an amount greater than any other potential known option available to the Debtor. On a post-petition basis, the Debtor has identified certain payments made post-petition for pre-petition obligations, including a payment to Campbells Jones Cohen CPA in the amount of $1,060.00. Campbells Jones Cohen has not provided any accounting services to the Debtor on a post-petition date basis. The Debtor will seek recovery of amounts paid without authorization on a post-petition basis in accordance with Section 549 of the Bankruptcy Code, which amounts will be used to fund the Debtor's ongoing operations and the Plan. Class 2 is comprised of the claims of Subcontractors/contract labor and their assignees, including any party that factored invoices for such Subcontractor, who may have claims to or in the Debtor's receivables by operation of the Trust Fund Statute on either a pre- or post-petition basis. Class 2 is unimpaired by the Plan, and all Class 2 Claims shall be paid in accordance with their contract terms. As of the date of filing this Amended Plan, the total amount owed to Class 2 Subcontractors is approximately $136,625.51. This amount may be lowered by payments made by customers for services provided by subcontractors ahead of the Confirmation Date. Class 5 is comprised of the Allowed General Unsecured Claims holding unsecured claims against the Debtor. Beginning on the fifteenth day of the first full month following the Effective Date and continuing on the 15th day of each month thereafter, the Debtor shall set aside 20% of the prior month's Net Profit into the Creditor Account. Each time three deposits have been made into the Creditor Account, the Debtor shall distribute all funds in the Creditor Account except $1001 on a pro rata basis to Class 5 Creditors until Class 5 Creditors are paid in full. Based on the Debtor's projections, Class 5 Creditors are anticipated to be paid in full by in approximately 3.5 years following the Effective Date. In addition to the amounts set forth, Class 5 shall receive fifty percent of the amounts recovered for claims arising under Chapter 5 after payment of attorney fees, cost of litigation, and cost of recovery. For the avoidance of a doubt, the Debtor's payments under the Plan shall continue until Class 5 unsecured creditors are paid in full. Class 6 is comprised of the pre-petition holders of interests in the Debtor. Class 6 is unimpaired by the Plan. On the Effective Date of the Plan, Class 6 interest holders shall retain all interests held on the Petition Date. The Debtor's Plan is feasible based upon the Debtor's prepared projections, which reflect a conservative prediction of the Debtor's operations during the term of the Plan. As evidenced by the projections, the Debtor is projecting significant revenue each year of the Plan. A full-text copy of the Second Amended Plan dated July 25, 2025 is available at https://urlcurt.com/u?l=4HpHZL from PacerMonitor.com at no charge. About Ignite Optics Communications Ignite Optics Communications, LLC is a Colorado limited liability company providing services related to the installation of fiber and cable, including trenching, pulling, and replacement of fiber optic cable for construction companies and utility providers across the country. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 24-17506) on December 19, 2024, with $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Judge Kimberley H. Tyson presides over the case. The Debtor is represented by: Keri L. Riley, Esq. Kutner Brinen Dickey Riley, P.C. Tel: 303-832-2400 Email: klr@kutnerlaw.com INDU MOTEL: Case Summary & 14 Unsecured Creditors ------------------------------------------------- Debtor: Indu Motel LLC 165 Waterworks Road Somerset, PA 15501 Business Description: Indu Motel LLC operates a small lodging facility in Somerset, Pennsylvania. Chapter 11 Petition Date: July 30, 2025 Court: United States Bankruptcy Court Western District of Pennsylvania Case No.: 25-70304 Debtor's Counsel: Donald R. Calaiaro, Esq. CALAIARO VALENCIK 555 Grant Street, Suite 300 Pittsburgh, PA 15219 Tel: 412-232-0930 Fax: 412-232-3858 E-mail: dcalaiaro@c-vlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Pratik Patel as managing member. A full-text copy of the petition, which includes a list of the Debtor's 14 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/HUO564Q/Indu_Motel_LLC__pawbke-25-70304__0001.0.pdf?mcid=tGE4TAMA INDU MOTEL: Seeks Chapter 11 Bankruptcy in Pennsylvania ------------------------------------------------------- On July 30, 2025, Indu Motel LLC filed Chapter 11 protection in the Western District of Pennsylvania. 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 Indu Motel LLC Indu Motel LLC is a motel operator located in Somerset, Pennsylvania. Indu Motel LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa.Case No. 25-70304) on July 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Calaiaro Valencik, Esq. INNERGEX RENEWABLE: Fitch Lowers IDR to 'BB+', Outlook Stable ------------------------------------------------------------- Fitch Ratings has downgraded Innergex Renewable Energy Inc.'s Long-Term Issuer Default Rating (IDR) to 'BB+' from 'BBB-' and withdrew the 'BB' cumulative preferred rating after repayment of the preferred shares, following its CAD$10 billion take-private acquisition by Caisse de dépôt et placement du Québec (CDPQ; IDR: AAA/Stable). The acquisition closed on July 21, 2025 and included repayment of all corporate-level debt, funded by CAD$1.2 billion in new senior secured debt and CAD$2.8 billion in new shareholder equity. Fitch removed Innergex's ratings from Negative Watch and assigned a Stable Outlook. The downgrade reflects sustained high Holdco-only leverage (Holdco debt/parent-only funds from operations), which averaged 4.5x in 2022-2024. Fitch projects leverage to rise to 5.6x in 2025 and average 4.1x in 2026-2027, above the 4.0x downgrade sensitivity. High leverage, modest size and scale, and an asset mix largely dependent on weather-sensitive wind and hydro resources are primary factors driving the rating action. The ratings on the cumulative preferred shares have been withdrawn because they are no longer outstanding. Key Rating Drivers High Exposure to Variable Resources: Innergex's generation portfolio is heavily weighted toward variable resources, with wind and hydro assets accounting for 87% of 2025 output. This significant reliance on variable generation increases both resource and business risk, as demonstrated by higher leverage following underperformance in 2022 and 2023. Wind projects currently contribute 53% of total production, with hydropower and solar accounting for 34% and 13%, respectively. Weaker Holdco Leverage: Holdco-only debt to FFO leverage has been higher than expected over the last few years and well above Innergex's 4.0x downgrade sensitivity. Holdco-only FFO leverage averaged around 4.5x in 2022-2024, which Fitch projects to weaken further to around 5.6x in 2025 from 3.2x in 2024. This increase reflects the new senior debt associated with the acquisition. Fitch calculates Innergex's credit metrics on a deconsolidated basis as its assets are financed with non-recourse project debt. Growth Strategy: The company is targeting a 34% increase in total renewable capacity to 6.2GW by 2031, with 1.6GW of assets already under development. This development pace may accelerate further, given Innergex's project pipeline of over 10GW and financial support from CDPQ. Innergex continues to place new assets into service, including the 30MW Hale Kuawehi solar project (1Q25) and the 330MW Boswell Springs Wind farm (4Q24), and added 425MW of renewable generation in 2024. Acquisition by CDPQ: Ownership by CDPQ, a highly rated AAA Canadian pension fund, supports Innerge'x credit quality. Fitch expects CDPQ to provide material equity support if needed and to implement a new flexible dividend policy to enhance financial flexibility. Following the acquisition, Innergex became a private company. CDPQ is Canada's second-largest pension fund, managing approximately CAD$473 billion in assets. Contracted Cash Flows; Creditworthy Counterparties: Innergex's portfolio of renewable assets are typically underpinned by long-term contracts, with a remaining revenue-weighted average contract life of 13 years. The long-term contracts represent around 90% of its consolidated revenue in 2024, and are typically fixed price with annual escalation mechanisms. The debt structure is designed to fully amortize during the contract period. Its counterparties, which include large municipal- and investor-owned utilities, have a weighted average counterparty credit rating of 'A' based on Fitch's ratings and other publicly available ratings. Reduced Merchant Exposure Expected: Innergex's merchant price exposure is expected to decline following the anticipated divestiture of some of its generation assets in 2026. Fitch expects the company's merchant exposure will be reduced to approximately 6% in 2027 from 10% in 2024. Innergex's uncontracted generation assets are mainly in the U.S. and Chilean power markets. Fitch views reduced merchant exposure as credit positive. Parent Subsidiary Linkage: Fitch rates Innergex on a standalone basis. Consistent with Fitch's approach, it views CDPQ as a financial investors and does not apply the Parent-Subsidiary Linkage. Innergex has its own credit facilities and direct access to debt capital markets but is dependent on CDPQ for equity support. Peer Analysis Innergex's credit profile is consistent with Atlantica Sustainable Infrastructure Plc (Atlantica; BB-/Stable), XPLR Infrastructure, LP (XPLR; BB+/Stable), and Leeward Renewable Energy Operations, LLC (LREO, 'BB-'/Stable). Key factors for consideration include leverage, scale, and asset mix. Innergex's 4.7GW generation capacity is larger than Atlantica (2.2GW) and Leeward (3.1GW), but smaller than XPLR (10GW). Fitch views Innergex's wind (54%) and hydro (34%) portfolio as riskier and more variable than solar, as seen in recent underperformance in 2022 and 2023. Leeward and XPLR are also wind-heavy (71% and 80% respectively), while Atlantica has a more balanced mix, with lower wind exposure (13%) with most of its project distributions from solar (60%). Innergex's generation portfolio has a remaining contracted life of 13 years, like XPLR (13 years), Atlantica (12 years), and longer than Leeward (around 10 years). Innergex's holdco-only FFO leverage is projected to weaken significantly to approximately 5.6x in 2025 following the acquisition, similar to Atlantica and XPLR but worse than Leeward. Atlantica's holdco-only FFO leverage is expected to remain below 6.0x through 2026. XPLR's holdco-only FFO leverage ratio is forecast to be around 4.9x. Leeward's holdco-only FFO leverage is forecast to be 4.1x in 2025 and to average below 3.5x between 2026 and 2028. Innergex is now a private company and has no formal dividend policy, prioritizing financial flexibility. This year, XPLR cut distributions to zero and Atlantica has been taken private. Fitch rates Innergex and its peers on a deconsolidated basis, given their use of nonrecourse project debt or tax equity. Key Assumptions - Acquisition by CDPQ; - Rating case production of P50 with distribution haircuts assumed; - Funding of projects under development largely using a mix of asset-level project finance and tax equity; - Asset sale proceeds used to reduce leverage in 2026; - Exclusion of non-recourse project debt; - Assumes 7% interest rate. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Sustained holdco-only leverage above 4.5x; - Lack of access to project financing or external funding such that Innergex deviates from its target capital structure; - Failure to divest of generation assets in 2026 with proceeds used to reduce leverage; - A growth strategy underpinned by aggressive acquisitions or the addition of assets in the portfolio that bear material volumetric, commodity, counterparty or interest rate risks and/or merchant exposure exceeding 20% of overall business mix; - A material increases in concentration of earnings and cash flows from emerging market economies. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustained holdco-only leverage (holdco debt to parent-only FFO leverage) metrics below 3.5x; - Increase in scale while maintaining a similar contractual profile. Liquidity and Debt Structure Fitch views Innergex's liquidity as adequate following the recapitalization of its balance sheet after being acquired by CDPQ. The transaction includes the repayment of all Innergex's corporate-level debt and is funded with $1.2 billion of new senior secured financing and $2.8 billion of new shareholder equity. Liquidity is provided by an $825 million five-year secured revolving credit facility maturing 2030, a $75 million five-year secured revolving construction credit facility and a $300 million 2.5-year secured non-amortizing asset sale facility. The $75 million construction credit facility and $300 million asset sale facility will be fully drawn upon closing. Improvement in projected leverage is supported by the required repayment of the $300 million asset sale facility upon the anticipated divestment of generating assets in 2026. Innergex policy is to limit interest rate risk by heading 80%-100% of its total interest rate exposure. Interest rate risk may be hedged by using fixed interest rate loans or by using derivative products such as floating-to-fixed interest rate swaps. Issuer Profile Innergex Renewable Energy, Inc. is a Canada-based renewable energy company that owns and operates a diversified portfolio of contracted renewable assets across Canada, the U.S., Chile and France. 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 Prior ----------- ------ ----- Innergex Renewable Energy Inc. LT IDR BB+ Downgrade BBB- Preferred LT WD Withdrawn BB INTEGRATED ENDOSCOPY: Case Summary & 20 Top Unsecured Creditors --------------------------------------------------------------- Debtor: Integrated Endoscopy, Inc. 16 Technology Dr. Suite 165 Irvine, CA 92618 Business Description: Integrated Endoscopy Inc. develops wireless arthroscopic and single-use rigid endoscope technology for surgical applications. Headquartered in Irvine, California, the privately held Company was founded in 1996 following its acquisition of Micro Optics Development Engineering Labs' optical design assets and markets its Nuvis Single-Use Arthroscope with plans to extend into additional procedure-specific endoscopes. Its intellectual property portfolio includes 19 issued patents across the U.S., Europe, Japan, Australia, and Canada covering lens systems, LED lighting, and molded glass optics. Chapter 11 Petition Date: July 31, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-12121 Judge: Hon. Scott C Clarkson Debtor's Counsel: Vanessa H. Haberbush, Esq. HABERBUSH, LLP 444 West Ocean Boulevard Suite 1400 Long Beach, CA 90802 Tel: (562) 435-3456 Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by David Chou as CEO & president. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/NTDGZZA/Integrated_Endoscopy_Inc__cacbke-25-12121__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. AA Advantage Credit Card $30,361 PO Box 9001037 Louisville, KY 40290 2. Albert Rego Phd, Inc. Consultant Fees $52,740 25401 Cabot Road Suite 122 Laguna Hills, CA 92653 Email: albert@rego.com Phone: 949-632-8126 3. Arcis Capital Investor Loan $6,250 54 W. 40th Street New York, NY 10018 Email: afzal@arciscap.com 4. BSI Group America Inc. Vendor $6,505 Dept CH 19307 Palatine, IL 60055 Email: billing.msamericas@bsigroup.com Phone: 703-437-9000 5. Capital Premium Financing, LLC Insurance $18,891 12235 S 800 E Draper, UT 84020 6. Cogneesol, Inc. Vendor $6,900 30 Wall Street, 8th Floor New York, NY 10005 7. Convergent Clinical Inc. Vendor $8,375 (Al Memmolo) 6648 Surf Crest Street Carlsbad, CA 92011 Email: almemmolo@gmail.com 8. DCGI Indical Vendor $9,440 G1/A, Vile Parlle Siddivinayak SRA, Shradhananad Road, Vile Parae 400057 9. Delonix Technologies Inc. Vendor $39,446 1038 Leigh Ave Suite 101 B San Jose, CA 95126 Email: accts@delonixt.com Phone: 408-455-2018 10. Dispatch Tech $6,080 4161 Home Ave San Diego, CA 92105 Email: aaron@dispatchtech.com Phone: 858-344-3988 11. FRII SA Vendor $44,375 5, Boulevard Royal L-2449 Luxembourg Email: info@friimedical.com 12. Indical Vendor $8,160 Indical Medsurg Pvt., Ltd, G1/A Vile Parlle Siddivinayak SRA Shradhananad Road, Vile Parae 400057 Email: steph@inidcalmed.com 13. Integrated Endoscopy (Fujian) Investor Loan $43,125 Co., U601, Bldg 10A, Poly Comm Industria No.20 Zhihui Av Minhou 350111, China 14. Irvine Company Past Due Rent $18,587 111 Innovation Drive Irvine, CA 92617 15. Jerin Raj Consulting Fees $6,050 Umm Hurair Building, Al Doha Street BurDubai, P.O. Box No. 3162 Dubai, UAE 16. Jorge Serna Consultant Fees $113,211 583 Yorkshire Street Costa Mesa, CA 92627 17. Karla Martinez Rojas Consultant Fees $3,600 M.S. Biomedical Quality Systems 1718 N. Oak Knoll Drive # C Anaheim, CA 92807 Email: kgmartinez@gmail.com 18. Nissha Medical Vendor $12,503 Technologies 1735 Merchants Ct. Colorado Springs, CO 80916 Email: receivables@namsa.com Phone: 310-560-0017 19. Omni Logistics, LLC Vendor $112,180 3200 Olympus Blvd. Suite 300 Coppell, TX 75019 Email: mkubra@omnilogistics.com Phone: 866-548-0208 20. Reed Smith LLP Attorney's Fees $62,900 Creed Maching & Expenses 411 W North St Orleans, NE 68966 Email: kyle.freeland@creedmachining.com Phone: 308-473-7000 INVESTMENT BUILDERS: Seeks Subchapter V Bankruptcy in Arizona ------------------------------------------------------------- On July 29, 2025, Investment Builders Partners LLC filed Chapter 11 protection in the District of Arizona. 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 Investment Builders Partners LLC Investment Builders Partners LLC is an operator of Universal Ranch RV Park in Arivaca, Arizona. Investment Builders Partners LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-06937) on July 29, 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 Scott H. Gan handles the case. IRECERTIFY LLC: Gets OK to Use Cash Collateral Until Dec. 31 ------------------------------------------------------------ IRecertify, LLC got the green light from the U.S. Bankruptcy Court for the Central District of Utah, Central Division, to use cash collateral. The court order authorized the Debtor to use its cash collateral from August 1 to December 31 to pay operating expenses in accordance with its budget. The Debtor may exceed the amount of any expense in the budget up to 10% without obtaining further order of the court. Each creditor with a valid and perfected interest in the Debtor's cash collateral as of the petition date was granted a replacement lien on the cash collateral. The replacement liens attach and are binding by operation of law without any further action by the Debtor, the creditor or any other person. Previously, the court permitted the Debtor to use cash collateral under an order effective until July 31. The Debtor asserted that continued use of cash collateral is necessary to pay essential expenses including wages, rent, utilities, and insurance as outlined in the budget. About IRecertify LLC IRecertify, LLC, doing business as Warehouse B, is a merchant wholesaler of professional and commercial equipment and supplies. IRecertify filed Chapter 11 petition (Bankr. D. Utah Case No. 24-25156) on Oct. 7, 2024, with assets between $100,000 and $500,000 and liabilities between $1 million and $10 million. Brett Kitson, managing member of IRecertify, signed the petition. Judge Peggy Hunt oversees the case. The Debtor is represented by Russell S. Walker, Esq. at Pearson Butler, PLLC. J.B. POINDEXTER: S&P Affirms 'B+' Rating on Senior Unsecured Notes ------------------------------------------------------------------ S&P Global Ratings affirmed its 'B+' issue-level rating on U.S.-based J.B. Poindexter & Co. Inc.'s (JBP) $800 million (pro forma for the proposed $200 million upsize) senior unsecured notes due 2031 and revised the recovery rating to '3' from '4'. The '3' recovery rating indicates its expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default. S&P's 'B+' issuer credit rating and stable outlook on JBP are unchanged. S&P said, "We revised our recovery rating on the company's senior unsecured notes to reflect the reduced amount of secured debt in its capital structure, given that it intends to use the proceeds from the add-on to fully repay its $175 million 364-day senior secured bridge loan. The repayment of the bridge loan will lead to a greater level of enterprise value available for the unsecured noteholders at default. While JBP also plans to use the proceeds from the upsizing to repay the balances under its asset-based lending (ABL) facility, our recovery analysis assumes the ABL is 60% drawn at the time of default. In addition, we revised the EBITDA multiple we use to estimate the company's emergence EBITDA to 5.5x from 5.0x to reflect its improved business risk profile and asset base following the acquisition of Demers." ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors -- S&P affirmed its 'B+' issue-level rating on the company's senior unsecured notes. The '3' recovery rating indicates its expectation for meaningful (50%-70%; rounded estimate: 50%) recovery after satisfying unpaid priority administrative expenses, the ABL revolving credit facility lender claims, and capital lease claims. -- S&P's simulated default scenario assumes a default occurring in 2029 because of a prolonged cyclical downturn in JBP's key markets. Combined with the shrinking collateral values under its ABL revolving credit facility, this would eventually erode the company's liquidity to levels that would be insufficient to service its obligations. -- S&P values JBP on a going-concern basis. S&P bases the gross enterprise value of $633 million on emergence EBITDA of $115 million and a valuation multiple of 5.5x (in line with the multiples S&P uses for similarly rated capital goods companies). Simulated default assumptions -- Simulated year of default: 2029 -- Implied enterprise value multiple: 5.5x -- EBITDA at emergence: $115 million -- Jurisdiction: U.S. Simplified waterfall -- Net enterprise value at default (after 5% administrative costs): $602 million -- ABL lender claims: $153 million -- Total value available to unsecured claims: $448 million -- Total unsecured claims: $848 million --Recovery expectations: 50%-70% (rounded estimate: 50%) Note: Debt amounts include six months of accrued interest that S&P assumes will be owed at default. Collateral value includes asset pledges from obligors (after priority claims) plus equity pledges in nonobligors. S&P generally assumes usage of 60% for the ABL facility at default. J4G LLC: Case Summary & Eight Unsecured Creditors ------------------------------------------------- Debtor: J4G, LLC City Hall Cafe & Pie Bar City Hall Cafe & Grocery Landscape Depot Mercer Contracting Jalepenos 1421 Sam Houston Ave Huntsville, TX 77340-4385 Business Description: J4G, LLC, doing business as Landscape Depot, operates as a construction and landscaping materials supplier in Texas. The Company offers landscape equipment and tool rentals for residential and commercial clients. It is also associated with food service operations under the names City Hall Cafe & Pie Bar, City Hall Cafe & Grocery, Jalepenos and with utility and construction services under the name Mercer Contracting. Chapter 11 Petition Date: July 30, 2025 Court: United States Bankruptcy Court Southern District of Texas Case No.: 25-34347 Judge: Hon. Jeffrey P. Norman Debtor's Counsel: Robert C. Lane, Esq. THE LANE LAW FIRM 6200 Savoy Dr Ste 1150 Houston TX 77036-3369 Tel: (713) 595-8200 E-mail: notifications@lanelaw.com Total Assets: $220,827 Total Debts: $1,264,037 The petition was signed by Jean Ann Robinson as owner. A full-text copy of the petition, which includes a list of the Debtor's eight unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/UMDXB5Y/J4G_LLC__txsbke-25-34347__0001.0.pdf?mcid=tGE4TAMA JACKSON HOSPITAL: Seeks to Extend Plan Exclusivity to Oct. 1 ------------------------------------------------------------ Jackson Hospital & Clinic, Inc., and its affiliated debtors asked the U.S. Bankruptcy Court for the Middle District of Alabama to extend their exclusivity periods to file a plan of reorganization and obtain acceptance thereof to October 1 and December 1, 2025, respectively. Based on the factors and the history of these proceedings, the Debtors submit that sufficient "cause" exists pursuant to section 1121(d) of the Bankruptcy Code to extend the Exclusive Periods. The following relevant factors each weighs in favor of an extension of the Exclusive Periods: * The Debtors' Chapter 11 Cases Are Complex. While the Debtor only consists of two units, this case is still complex given the particular challenges of dealing with a financially distressed hospital and all of the unique issues that come along with a business entity dealing with life and death decisions daily. Additionally, the Debtor maintains a fairly complex corporate and capital structure, a vast network of operations, and a multitude of parties in interest, secured lenders, tort claimants, vendors, and staffing issues, among others. Therefore, this case is unquestionably large and complex. * The Debtors Have Made Good Faith Progress. In the months since the Petition Date, the Debtors have made significant progress in stabilizing the Debtors' operations and have made progress toward an exit strategy. Additionally, the Debtors are still reviewing all of their contracts and leases, including a review of which contracts are viable and valuable and which contracts are not. These efforts allowed the Debtors to transition smoothly into chapter 11 and pave the way for the Debtors to formulate a chapter 11 plan, which will enable the Debtors to maximize the value available for its creditors. * An Extension of the Exclusive Periods Will Not Prejudice Creditors. Continued exclusivity will permit the Debtors to maintain flexibility and optionality so that competing plans do not derail the Debtors' bankruptcy process. Extending the Exclusive Periods will benefit the Debtors' estates, their creditors, and all other key parties in interest. Among other things, the Debtors have actively engaged with the Creditors' Committee concerning their assets and potential paths forward. * The Debtors Have Reasonable Prospects for Filing a Viable Plan. The Debtors own numerous assets that could be part of a going concern sale or reorganization in the future. Once the path forward is finalized, it will provide the roadmap around which a chapter 11 plan can be developed. The Debtors intend to continue these efforts moving forward and to attempt to negotiate a consensual plan in connection therewith. Thus, there is a very reasonable prospect of proposing and obtaining creditor consent regarding a sustainable plan if the Exclusive Periods are extended. * An Extension Will Not Pressure Creditors. The Debtors are not seeking an extension of the Exclusive Periods to pressure or prejudice any of their stakeholders. To the contrary, the Debtors are proposing an extension of exclusivity in order to have additional time to finalize their strategy and engage with their prepetition secured lenders and other stakeholders in restructuring negotiations without the distraction, confusion, and unnecessary expense that could be created by multiple competing plans. Counsel for the Debtors: Derek F. Meek, Esq. Marc P. Solomon, Esq. Catherine T. Via, Esq. James H. Haithcock III, Esq. Burr & Forman LLP 420 20th Street North, Suite 3400 Birmingham, Alabama 35203 Telephone: (205) 251-3000 E-mail: dmeek@burr.com msolomon@burr.com jhaithcock@burr.com cvia@burr.com About Jackson Hospital & Clinic Inc. Jackson Hospital & Clinic, Inc. is a non-membership, non-profit corporation based in Alabama. JHC is the direct or indirect parent company of JHC Pharmacy, LLC, an Alabama limited liability company that provides pharmacy services to JHC patients. JHC owns 100% of JHC Pharmacy. Additionally, JHC is a direct or indirect parent company of certain other entities that have not filed for bankruptcy. JHC operates a 344-bed healthcare facility in Montgomery, Ala., with a rich history dating back to 1894. Since its official opening in 1946, JHC has grown into one of the largest hospitals in Alabama, offering specialized services in cardiac care, cancer treatment, neurosciences, orthopedics, women's care, and emergency services. JHC's service area includes 16 counties across central Alabama. JHC and JHC Pharmacy filed Chapter 11 petitions (Bankr. M.D. Ala. Lead Case No. 25-30256) on February 4, 2025. In its petition, JHC reported between $100 million and $500 million in both assets and liabilities. Judge Christopher L. Hawkins handles the cases. The Debtors are represented by Derek F. Meek, Esq. at Burr & Forman, LLP. JAMANA LLC: Seeks Chapter 11 Bankruptcy in Alabama -------------------------------------------------- On July 29, 2025, Jamana LLC filed Chapter 11 protection in the Southern District of Alabama. According to court filing, the Debtor reports $2,697,503 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Jamana LLC Jamana LLC, doing business as Quality Inn Mobile West Tillman's Corner, operates a 58-room franchised Quality Inn hotel in Mobile, Alabama, offering lodging services and amenities such as complimentary breakfast, Wi-Fi and a seasonal outdoor pool. Jamana LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ala. Case No. 25-11994) on July 29, 2025. In its petition, the Debtor reports Honorable Bankruptcy Judge Jerry C. Oldshue handles the case. The Debtor is represented by Kevin M. Ryan, Esq. at RYAN LEGAL SERVICES, INC. JANE STREET: Fitch Affirms 'BB+' LongTerm IDR, Outlook Positive --------------------------------------------------------------- Fitch Ratings has affirmed Jane Street Group, LLC's Long-Term Issuer Default Rating (IDR) at 'BB+'. Fitch has also affirmed the debt rating of the senior secured debt, co-issued by Jane Street and JSG Finance, at 'BB+'. The Rating Outlook on Jane Street's Long-Term IDR remains Positive. Key Rating Drivers Strong Operating Performance; Evolving Regulatory Headwinds: The Positive Outlook reflects Jane Street's sustained strong operating performance and sound profitability, supported by improved business diversification through penetration into new asset classes and geographic expansion. Fitch considers these dynamics reasonably durable, even in a less volatile trading environment. Fitch also recognizes Jane Street's recent successful efforts in improving key funding terms on its prime brokerage facilities. These improvements mitigate liquidity risk and increase financial flexibility. However, short term, upside rating momentum is constrained by recent Security and Exchange Board of India (SEBI) investigations into potential market manipulation by select market makers, including Jane Street. Jane Street continues to cooperate with SEBI to find a constructive resolution, but timing and extent of remediate actions and/or financial penalties remains uncertain. While an exit from the Indian market is not anticipated, its financial impact would be very manageable given Jane Street's overall financial performance. However, business development in other markets could suffer if regulators globally tighten oversight. If the firm must pay a significant fine related to these charges or suffers substantial reputational damage, Fitch may negatively reassess Jane Street's business and risk profiles, which could also affect its ratings and/or Rating Outlook. Established Electronic Trading Franchise: Jane Street's ratings continue to reflect its strong, established market position as a technology-driven market maker across various venues. The ratings also reflect management's good track record of managing market risks, a high level of member ownership that ensures risk and return interests are well aligned, and appropriate leverage relative to balance sheet risks. Inherently High Operational Risk: Primary rating constraints include elevated operational risks inherent in technology-driven trading, although Fitch believes the firm has an appropriate risk control framework. Other constraints include elevated market risk, limited business diversification outside of the liquidity provision space and reliance on volatile transactional revenue streams. Trading Activity Drives Net Trading Revenues: Sustained strong market activity and improved penetration across most asset classes has underpinned net trading revenues, which advanced significantly on a trailing 12-month (TTM) basis in 1Q25. Jane Street's pre-tax return on equity and EBITDA margin remains strong, with the firm benefiting from scale benefits of its volume driven business model as well as its flexible cost base. Given Jane Street's continued focus on diversifying trading strategies, Fitch expects profitability to remain a relative rating strength even in a less volatile trading environment. Sustained Low Leverage: Jane Street's balance sheet leverage was 5.4x at 1Q25 and has remained at similarly low levels in recent periods. The balance sheet expanded over the past 12 months due to higher trading volumes and successive debt issuances, including a $1.35 billion senior secured notes issuance in April 2025. However, strong growth in member equity, as capital distributions remain moderate relative to net income, offset this increase. Fitch expects Jane Street to continue managing leverage conservatively at or near current levels, supporting strong capital buffers against potential operational losses. Reliance on Secured Funding: Jane Street's funding profile is fully secured, reflecting its business model and aligning with peers. The firm relies on confidence-sensitive, collateralized prime broker facilities, which introduce some funding risk. However, its long-standing relationships with highly rated international prime brokers partially mitigate this risk. The lock-up periods in term margin agreements with prime brokers are long, reducing the likelihood of outsized trading losses during market stress. Fitch would view the addition of long-term unsecured debt to the funding structure positively, as it would further enhance financial flexibility. Liquid Balance Sheet: Jane Street's liquidity is adequate for its business model, consisting of on-balance-sheet cash and a sizeable inventory of liquid Level 1 assets that can be quickly liquidated if needed. This balances the firm's reliance on confidence-sensitive, secured short-term credit facilities. Liquidity is further supported by a committed revolving credit line, upsized to $1.2 billion in May 2025 and maturing in December 2027, as well as a relatively high cash buffer compared to overall trading capital. Fitch also notes that Jane Street maintains trading capital well above margin requirements, providing financial flexibility if markets become volatile and margin demand rise. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The Outlook could be revised back to Stable from Positive should current regulatory investigations lead to more meaningful reputational damage, sustained weakening in financial performance and/ or a material regulatory fine. The Outlook could also be revised to Stable should capital growth slow in relation to balance sheet growth resulting in a sustained increase in net adjusted leverage and/or an erosion of revenue generation over the Outlook horizon driven by a lack of execution on trading strategies. Beyond that, Jane Street's rating could be downgraded due to: - An acute, idiosyncratic liquidity event that adversely impacts the firm's ability to execute on its core business strategies; - Material operational or risk management failures that adversely impact profitability and/or market confidence; - An inability to maintain net adjusted leverage below 10.0x; - Adverse legal or regulatory actions against Jane Street which result in a material fine, reputational damage, or alteration in the business profile; - Inability to maintain its strong market position in the face of evolving market structures and technologies. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A constructive and timely resolution of ongoing regulatory investigations with minimal financial and reputational impact; - The continuation of consistent operating performance through different trading environments coupled with minimal operational losses resulting in further capital expansion; - Maintaining net adjusted leverage at or below current levels; - Demonstration of continued funding flexibility, including access to third-party funding through market cycles, the introduction of an unsecured funding component and/or a moderate increase in excess trading capital over margin requirements. Improved funding flexibility could also be demonstrated by further improvement to term margin agreement terms. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The secured debt rating is equalized with the IDR and reflects the fully secured funding profile and average recovery prospects in a stressed scenario. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The secured term loan rating is primarily sensitive to changes in Jane Street's IDR and, secondarily, to material changes in its capital structure and/or changes in Fitch's assessment of the recovery prospects for the debt instrument. ADJUSTMENTS The Standalone Credit Profile (SCP) has been assigned in-line with the implied SCP. The Business Profile score has been assigned below the implied score due to the following adjustment reason: Business model (negative). The Earnings & Profitability score has been assigned below the implied score due to the following adjustment reason: Revenue Diversification (negative). The Funding, Liquidity & Coverage score has been assigned below the implied score due to the following adjustment reason: Business model/funding market convention (negative). 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 ----------- ------ ----- Jane Street Group, LLC LT IDR BB+ Affirmed BB+ senior secured LT BB+ Affirmed BB+ JSG Finance, Inc. senior secured LT BB+ Affirmed BB+ JERK PIT: Hires A&R Accounting and Tax Service as Advisor --------------------------------------------------------- The Jerk Pit LLC seeks approval from the U.S. Bankruptcy Court for the District of Columbia to hire A&R Accounting and Tax Service as its accounting and bookkeeping advisor in its Chapter 11 case. A&R, led by certified public accountant Robert Davis, will provide these services: (a) transaction categorization based on the Debtor’s bank records; (b) account reconciliations; (c) monthly financial reporting; and (d) establishment and maintenance of a compliant financial recordkeeping system. A&R will provide services at a rate of $75 per hour. The firm is currently owed approximately $7,350 by the Debtor and $2,250 by a related entity, Lime Cay Inc., but the claim against the Debtor falls within the safe harbor provision of section 1195 of the Bankruptcy Code. The Jerk Pit states in court filings that A&R is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be contacted at: Robert Davis, CPA A&R Accounting and Tax Service Brooklyn, NY 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., Esq. Sinoberg Raft Tel: (804) 513-1566 Email: john.colan@sinobergraft.com JERK PIT: Hires Joseph W. Wilson III as Tax Preparer ---------------------------------------------------- The Jerk Pit LLC seeks approval from the U.S. Bankruptcy Court for the District of Columbia to hire Joseph W. Wilson III, CPA, to serve as tax preparer in its Chapter 11 case. Mr. Wilson will provide these services: (a) prepare The Jerk Pit's 2024 corporate income tax return and other necessary business tax filings; (b) support payroll and cash flow management as needed; (c) assist with accounting services specific to companies in bankruptcy; and (d) continue offering tax preparation services for prior years and any other tax-related support required during the Chapter 11 proceedings. Mr. Wilson charges a flat fee of $1,000 for each year's corporate return and bills $95 per hour for services beyond tax filings. According to court filings, Mr. Wilson qualifies as a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. He can be reached at: Joseph W. Wilson III, CPA Washington, DC 20009 Telephone: (202) 835-7500 Email: EDexter@milbank.com 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., Esq. Sinoberg Raft Tel: (804) 513-1566 Email: john.colan@sinobergraft.com KS MATTSON: Gets Court OK to Use $9.7K in Cash Collateral --------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California, Santa Rosa Division, approved a stipulation between Debtor KS Mattson Partners, LP and its lender, Socotra Capital, Inc., for limited use of cash collateral. The stipulation authorizes KSMP to use up to $9,703.43 of the lender's cash collateral solely to reinstate the property insurance policy on the property located at 415 Pacific Ave., Piedmont, Calif. The lender will be granted a replacement lien on post-petition assets and the subject property, matching the scope and priority of its pre-bankruptcy lien. The Debtor must provide proof of insurance reinstatement and payment. Socotra is represented by: SHEPPARD, MULLIN, RICHTER & HAMPTON LLP A Limited Liability Partnership Including Professional Corporations THEODORE A. COHEN, Esq. CAROLINE SISCHO, Esq. 350 South Grand Avenue, 40th Floor Los Angeles, CA 90071-3460 Telephone: 213.620.1780 Facsimile: 213.620.1398 tcohen@sheppardmullin.com csischo@sheppardmullin.com JEANNIE KIM, Esq. Four Embarcadero Center, 17th Floor San Francisco, California 94111-4109 Telephone: 415.434.9100 Facsimile: 415.434.3947 jekim@sheppardmullin.com About KS Mattson Partners, LP Creditors LeFever Mattson, a California corporation, and Windtree, LP filed involuntary Chapter 11 petition against KS Mattson Partners, LP (Bankr. N.D. Cal. Case No. 24-10715) on November 22, 2024. The creditor is represented by Thomas B. Rupp, Esq. at Keller Benvenutti Kim LLP. Judge Charles Novack presides over the case. Richard Wynne, Esq. at Hogan Lovells US LLP represents the Debtor as bankruptcy counsel. KUPONO RESORT: Seeks Chapter 11 Bankruptcy in Hawaii ---------------------------------------------------- On July 28, 2025, Kupono Resort LLC filed Chapter 11 protection in he District of Hawaii. 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 Kupono Resort LLC Kupono Resort LLC is a single asset real estate company that appears to own a resort property in Koloa, Hawaii on the island of Kauai. Kupono Resort LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Haw. Case No. 25-00652) on July 28, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each Honorable Bankruptcy Judge Robert J. Faris handles the case. The Debtor is represented by Chuck C. Choi, Esq. and Allison A. Ito, Esq. at Choi & Ito. L.D. LYTLE: Hires EXP Realty as Real Estate Broker -------------------------------------------------- L.D. Lytle, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire EXP Realty to serve as real estate broker in its Chapter 11 case. EXP Realty will provide these services: (a) represent the Debtor as its agent in all aspects of identifying and communicating with prospective purchasers of the Properties; (b) participate in meetings with the Debtor and potential purchasers; (c) provide necessary information to prospective purchasers; (d) negotiate the terms and conditions of sale with any prospective purchasers of the Properties; and (e) take any reasonable actions and initiatives necessary to sell the Properties. EXP Realty will receive a 5% commission upon the successful sale of the Properties. EXP Realty is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached at: Joyce W. Lindauer EXP Realty 117 S. Dallas Street Ennis, TX 75119 Telephone: (972) 503-4033 Facsimile: (972) 503-4034 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 reports estimated assets and liabilities between $1 million and $10 million each. Judge Michelle V. Larson handles the case. The Debtor is represented by Joyce Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC. LAKE SALISBURY: Seeks Chapter 11 Bankruptcy in New York ------------------------------------------------------- On July 29, 2025, Lake Salisbury LLC filed Chapter 11 protection in the Southern District of New York. 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 not be available to unsecured creditors. About Lake Salisbury LLC Lake Salisbury LLC is a single asset real estate company based in Brooklyn, New York. Lake Salisbury LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11661) on July 29, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100,000 and $500,000 each. The Debtor is represented by Solomon Rosengarten, Esq. LEISURE INVESTMENTS: Court OKs Miscellaneous Assets Sale -------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has approved Leisure Investments Holdings LLC and its affiliates, to establish procedures to sell Miscellaneous Assets, free and clear of all liens, claims, and encumbrances. The Debtors and their affiliates operate more than 30 attractions -- dolphin habitats, marinas and water, theme, and adventure parks—in eight countries across three continents, with primary operations in Mexico, the United States, and the Caribbean, including Jamaica, Cayman Islands, Dominican Republic and St. Kitts. The Company also has locations in Italy and Argentina. The Company's parks are home to approximately 2,400 animals from more than 80 species of marine life, including hundreds of marine mammals (such as dolphins, sea lions, manatees and seals), birds, and reptiles. As of 2023, the Company's marine mammal family included approximately 295 dolphins, 51 sea lions, 18 manatees and 18 seals. In the ordinary course of operating their business, the Debtors have amassed and are currently in possession of, or have a right to possess, certain assets, including, but not limited to, animals; real estate and other real property and fixtures of de minimis value to the Debtors and equipment, furniture, supplies, intellectual property and other miscellaneous tangible and intangible personal property (Personal Property Asset and collectively, the Personal Property Assets and collectively with the Animals and Real Property Assets, the Miscellaneous Assets), which are and will be a burden to the Debtors' estates. The details of the sale procedure of the Miscellaneous Assets can be found at: https://urlcurt.com/u?l=X07PCQ The Court has authorized the Debtor to sell the Miscellaneous Assets in accordance with the following procedures and the terms of the Order: -- Real Property Assets: If the sale consideration from a purchaser of a Real Property Asset or Real Property Assets does not exceed $1 million, on a per-transaction basis, the Debtors shall file a notice, with the Court and serve the Miscellaneous Asset Sale Notice. -- Personal Property Assets: If the sale consideration from a purchaser for a Personal Property Asset or multiple Personal Property Assets, on a per-transaction basis, is less than or equal to $250,000, the Debtors shall file a Miscellaneous Asset Sale Notice with the Court and serve such Miscellaneous Asset Sale Notice by first-class mail, electronic mail or facsimile on the Notice Parties. The Court held that the Notice of any sale of the Miscellaneous Assets in accordance with the Miscellaneous Asset Sale Procedures and the terms of this Order shall be sufficient notice of the sale of such assets. Any sale of Miscellaneous Assets shall be subject to the prior consent of the Prepetition First Lien Noteholders and DIP Lenders The Debtors are authorized and empowered to take all actions necessary to implement the relief granted in the Order. Leisure Investments Holdings LLC and affiliates are operating under the name "The Dolphin Company," manage over 30 attractions, including dolphin habitats, marinas, water parks, and adventure parks, located in eight countries across three continents. Their primary operations are based in Mexico, the United States, and the Caribbean, with locations in Jamaica, the Cayman Islands, the Dominican Republic, and St. Kitts. These attractions are home to approximately 2,400 animals from more than 80 species of marine life, including a variety of marine mammals such as dolphins, sea lions, manatees, and seals, as well as birds and reptiles. As of 2023, the marine mammal population at the Debtors' parks includes roughly 295 dolphins, 51 sea lions, 18 manatees, and 18 seals. Leisure Investments Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case 25-10606) on March 31, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million each. Honorable Bankruptcy Judge Laurie Selber Silverstein handles the case. The Debtors tapped Robert S. Brady, Esq., Sean T. Greecher, Esq., Allison S. Mielke, Esq., and Jared W. Kochenash, Esq. as counsels. The Debtors' restructuring advisor is RIVERON MANAGEMENT SERVICES, LLC. The Debtors' Claims & Noticing Agent is KURTZMAN CARSON CONSULTANTS, LLC d/b/a VERITA GLOBAL. LEVY VENTURES: Hires Better Mgmt LLC as New Property Manager ------------------------------------------------------------ Levy Ventures, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Better Mgmt LLC as the new property manager. The services to be performed by Better Mgmt include managing, operating and maintaining the properties, negotiating leases, collecting rents, preparing budgets, and overseeing needed repairs and upkeep. The firm will receive $104 per unit each month. A separate fee relating to renovation of individual Properties and reimbursement of certain expenses. Benjamin Eidlisz, manager at Better Mgmt LLC, assured the court that her firm is a "disinterested person" as that term is defined by Section 101(14) of the Bankruptcy Code. The firm can be reached through: Benjamin Eidlisz Better Mgmt LLC 3717 Boston St Baltimore, MD 21224 Phone: (443) 931-6191 About Levy Ventures Levy Ventures, LLC is a New York-based company engaged in real estate-related activities. Levy Ventures sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-22182) on March 5, 2025. In its petition, the Debtor reported between $10 million and $50 million in both assets and liabilities. Judge Sean H. Lane handles the case. The Debtor is represented by Kevin Nash, Esq., at Goldberg Weprin Finkel Goldstein, LLP. Fay Servicing, LLC, acting as the authorized loan servicer for U.S. Bank Trust National Association (as Trustee for COLT 2023-3), is represented by: Jenelle Arnold, Esq. Aldridge Pite, LLP 3333 Camino Del Rio South, Suite 225 San Diego, CA 92108 Telephone: (858) 750-7600 Facsimile: (619) 590-1385 Email: JArnold@aldridgepite.com LIFESCAN GLOBAL: U.S. Trustee Appoints Creditors' Committee ----------------------------------------------------------- The U.S. Trustee for Region 7 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of LifeScan Global Corporation and its affiliates. The committee members are: 1. CVS Pharmacy, Inc. One CVS Drive Woonsocket, RI 02895 Representative: Matthew Varzally Matthew.Varzally@cvshealth.com 2. OptumRX, Inc. 1 Optum Circle Eden Prairie, MN 55344-2503 Representative: James B. Cash James_Cash@uhg.com 3. Eastman Chemical Germany Management GmbH & Co 575 Maryville Centre Drive, Suite 200 St. Louis, MO 63141 Representative: Jill Czapla Jill.czapla@eastman.com 4. Acolad Inc. Business Center, 2365 Willis Miller Drive Hudson, WI 54016 Representative: Arnaud Daix Arnaud.daix@acolad.com 5. Foundever Operating Corporation Limited 55-33 Butts Road Coventry CV1 3BH, United Kingdom Representative: David Grimes David.grimes@foundever.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About LifeScan Global Corporation LifeScan is a leader in delivering personalized health, wellness, and digital solutions to individuals living with diabetes. Since 1981, LifeScan has advanced glucose care and diabetes management with pioneering technologies and new products, and is actively engaged in designing, developing, manufacturing, and marketing devices, software, and applications. Its comprehensive portfolio of diabetes-related products and services includes blood glucose monitoring devices, blood glucose test strips, lancing devices, and digital applications. LifeScan Global sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 25-90259 (ARP)) on July 15, 2025. As of the Petition Date, the Debtors have approximately $786 million assets and approximately $1.7 billion in liabilities. Judge Alfredo R Perez presides over the cases. Megan Young-John and John F. Higgins, IV at Porter Hedges LLP, represent the Debtors as legal counsel. LIVE WELL MEDICAL: 2nd Circ. Affirms Founder's Conviction for Fraud ------------------------------------------------------------------- Gina Kim of Law360 reports that the Second Circuit on Wednesday, July 30, 2025, upheld the convictions of Live Well's founder, finding that jurors had sufficient evidence to conclude he fraudulently inflated bond valuations to induce lenders to extend credit. The court said he misrepresented the value of collateral to secure loans and acted with intent to defraud. About Live Well Medical Centers Orlando Live Well Medical Centers Orlando, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 21-02027) on Aug. 19, 2021, listing as much as $50,000 in both assets and liabilities. The Debtor is represented by Thomas C. Adam, Esq., at Adam Law Group, P.A. LOCALS ONLY: Gets Extension to Access Cash Collateral ----------------------------------------------------- Locals Only Gifts, LLC received third interim approval from the U.S. Bankruptcy Court for the Eastern District of Tennessee, Chattanooga to use cash collateral. The third interim order penned by Judge Nicholas Whittenburg authorized the Debtor to use cash collateral to pay its expenses pending the final hearing on September 18. The Debtor was granted a carveout and was authorized to pay from the cash collateral fees and disbursements to bankruptcy professionals; fees and disbursements, including monies to be escrowed, to the Subchapter V trustee; and any fees payable to the Clerk of the Bankruptcy Court. Secured creditors include the U.S. Small Business Administration and Brightbridge, Inc., which assert a lien on the cash collateral. As adequate protection, both creditors were granted replacement liens on the Debtor's post-petition property and proceeds thereof, to the same extent and with the same priority as their pre-bankruptcy liens. The replacement liens do not apply to avoidance actions. As further protection, the Debtor was ordered to keep the secured creditors' collateral insured. About Locals Only Gifts Locals Only Gifts, LLC, a Tennessee limited liability company, operates a retail store that sells locally sourced gifts and goods to the local community. Locals Only Gifts filed Chapter 11 petition (Bankr. E.D. Tenn. Case No. 25-10943) on April 16, 2025, listing between $50,001 and $100,000 in assets and between $500,001 and $1 million in liabilities. Judge Nicholas W. Whittenburg oversees the case. Amanda M. Stofan, Esq., at Farinash & Stofan is the Debtor's legal counsel. Brightbridge, Inc., as secured creditor, is represented by: Douglas R. Johnson, Esq. Johnson & Mulroony, P.C. 428 McCallie Avenue Chattanooga, TN 37402 (423) 266-2300 djohnson@johnsonmulroony.com M & N STRUCTURES: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: M & N Structures, Inc. 301 Industrial Blvd Winsted MN 53395 Business Description: M & N Structures Inc. provides structural steel fabrication and design-build services across Minnesota and surrounding states. The Company specializes in in-house 3D modeling, BIM detailing, CNC-equipped fabrication, and steel erection. It serves commercial, industrial, and energy-sector projects from its facility in Winsted, Minnesota. Chapter 11 Petition Date: July 30, 2025 Court: United States Bankruptcy Court District of Minnesota Case No.: 25-42489 Debtor's Counsel: Cameron Lallier, Esq. BASSFORD REMELE, A PROFESSIONAL CORPORATION 100 South 5th Street 1500 Minneapolis MN 55402-1254 Tel: 612-376-1621 E-mail: clallier@bassford.com Total Assets: $3,092,696 Total Liabilities: $5,246,089 The petition was signed by Jonathan Henriksen as president. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/Y4JH2AI/M__N_Structures_Inc__mnbke-25-42489__0001.0.pdf?mcid=tGE4TAMA MANA GROUP: Unsecureds to Get 10 Cents on Dollar in Plan -------------------------------------------------------- Mana Group Pharmacies, LLC d/b/a Brown's Pharmacy, and Christopher Andrew Tapper and wife, Erika Tapper ("Tapper") filed with the U.S. Bankruptcy Court for the Northern District of Texas a Joint Consolidated Plan of Reorganization and Disclosure Statement dated July 25, 2025. The Debtor, Mana Group Pharmacies, LLC d/b/a Brown's Pharmacy, is a limited liability company organized in the State of Texas which operates a pharmacy and drug store in Irving, Texas. The individual Debtors, Christopher and Erika Tapper are licensed pharmacists in the State of Texas, and together own 80% of the membership interests of Mana and are jointly and severally liable for the majority of the indebtedness owed by Mana. The Debtors' Plan of Reorganization provides for continued operations of the Debtors' pharmacy known as Brown's Pharmacy in Irving, Texas. The Debtors believe that there will be sufficient net proceeds to pay 10% of the General Unsecured Claims classified in Classes 19, 20 and 21. The secured claim of Live Oak Bank will be paid over the five-year term of the Plan with any deficiency treated as a General Unsecured Claim in Class 21. Similarly, the secured claims of Americorp Financial and Highland Capital in Class 5 and 6 will be paid in equal amortized payments as reflected in the cash flow projections. Once these secured claims are paid any surplus funds will be paid toward the claims of the unsecured creditors as set forth in this Plan. This Plan provides for the payment in full of the following claimants: Administrative expense claims; and Priority tax claims. Non-priority unsecured creditors holding allowed claims will receive distributions which the proponents of this Plan estimate should total 10 cents on the dollar. Class 19 is established for administrative convenience and consists of General Unsecured Claims, not including the General Unsecured Claims of the individual Debtors, Christopher and Erika Tapper. This Class of Unsecured Claims consists of all trade claims of Mana Group Pharmacies, LLC that do not constitute deficiency claims of under secured creditors. The Plan provides for these claimants to receive two lump sum payment equal to 5% each of their total claims. The total distribution to this class of claims will be 10%. The 5% distribution will be made in July and December of 2027. The allowed unsecured claims total $848,023.00. Class 20 is established for administrative convenience and consists of General Unsecured Claims of the individual Debtors, Christopher and Erika Tapper and do not include guaranteed deficiency claims of under secured creditors of Mana. The Plan provides for these claimants to receive a lump sum payment equal to 10% of their total claims. The 10% distribution will be made on January 15, 2026. The allowed unsecured claims total $101,628.00. Class 21 is comprised of the Allowed Unsecured Claims against Debtors total $4,103,635.36. The Plan provides that the General Unsecured Creditors of the Debtors are to be paid 6% of their Allowed Unsecured Claims, over a 5-year term in three equal annual payments in years three, four and five of the Plan. The first annual payment is expected to be made on December 15, 2028. To assure the Debtors are able to make each annual payment, the Debtors will set aside each month from its operations funds necessary to accumulate a reserve of funds from each monthly amount to make the annual payments. For the five-year term of the plan annual payments will be in the amount of $83,000.00 in December of 2028, December of 2029 and December, 2030. The Debtors will continue to operate their pharmacy business known as Brown's Pharmacy located in Irving, Texas. Net profits generated by the pharmacy operations will provide sufficient revenue for Debtors to make the Plan payments called for herein to its secured creditors with any excess proceeds being used first to pay the claims if any of the administrative claimants, then to priority claimants holding valid claims, if any, and finally toward the pro rata payments due to be paid to unsecured creditors. A full-text copy of the Joint Consolidated Plan and Disclosure Statement dated July 25, 2025 is available at https://urlcurt.com/u?l=qKREDm from PacerMonitor.com at no charge. Counsel to the Debtor: David R. Langston, Esq. Mullin Hoard & Brown LLP P.O. Box 2585 Lubbock, TX 79408 Tel: (806) 765-7491 Fax: (806) 765-0553 Email: drl@mhba.com About Mana Group Pharmacies, LLC d/b/a Brown's Pharmacy Mana Group Pharmacies, LLC, operating as Brown's Pharmacy, is an independent, locally owned pharmacy in Irving, Texas, serving the Irving, Las Colinas, and Greater Dallas-Fort Worth areas since 1973. The pharmacy focuses on providing personalized, friendly customer service, distinguishing itself from larger chain pharmacies. Services include prescription refills, compounding, delivery, vaccines, wound care, MEDSYNC (medication synchronization), and PakMyMeds (a free medication packaging service). Additionally, the pharmacy acts as an Amazon Hub, securely accepting and storing Amazon packages for customers. Mana Group Pharmacies filed Chapter 11 petition (Bankr. N.D. Texas Case No. 25-31057) on March 27, 2025, listing $332,938 in assets and $4,952,261 in liabilities. Christopher Tapper, managing member of Mana Group Pharmacies, signed the petition. David R. Langston, Esq., at Mullin Hoard & Brown, L.L.P., is the Debtor's legal counsel. Live Oak Banking Company, as secured creditor, is represented by: Kristin A. Zilberstein, Esq. ZBS Law, LLP 30 Corporate Park, Suite 450 Irvine, CA 92606 Telephone: (714) 848-7920 Facsimile: (714) 908-7807 MARILYN MAY SLONIKER: Seeks Chapter 11 Bankruptcy in Wisconsin -------------------------------------------------------------- On July 30, 2025, Marilyn May Sloniker Bankruptcy Estate filed Chapter 11 protection in the Western District of Wisconsin. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Marilyn May Sloniker Bankruptcy Estate Marilyn May Sloniker Bankruptcy Estate is a tax-exempt estate entity based in Beloit, Wisconsin. The estate manages multiple properties in the Beloit area and has cited issues related to alleged bank fraud involving attempts to sell properties that are reportedly paid for in full. Marilyn May Sloniker Bankruptcy Estate sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wis. Case No. 25-11692) on July 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. The Debtor is represented by Russel Law Offices and Schloemer Law Firm. MAVENIR SYSTEMS: Davis Polk Advised Lenders in Recapitalization --------------------------------------------------------------- Davis Polk advised an ad hoc group of term loan lenders in connection with a comprehensive out-of-court recapitalization of Mavenir Systems, Inc. and its affiliates. Pursuant to the terms of the transaction, Mavenir eliminated over $1.3 billion of existing indebtedness and secured approximately $300 million in new senior financing through a newly established credit facility. The transaction also included the provision of a subordinated facility by Siris Capital Group, LLC and certain other existing lenders. As part of the recapitalization, Siris, Mavenir's pre-transaction equity sponsor, remained the company's controlling shareholder. Mavenir delivers cloud-native, AI-enabled solutions which are green by design, empowering operators to realize the benefits of 5G and achieve intelligent, automated, programmable networks. As the pioneer of Open RAN and a proven industry disruptor, Mavenir's award-winning solutions are delivering automation and monetization across mobile networks globally, accelerating software network transformation for 300+ Communications Service Providers in over 120 countries, which serve more than 50% of the world's subscribers. The Davis Polk restructuring team included partners Damian S. Schaible, Christian Fischer and Jonah A. Peppiatt and associates Abraham Bane, Motty (Mordechai) Rivkin and Linyang Wu. The corporate team included partners Paul S. Scrivano and Emily Roberts and associate Michael Kostukovsky. The tax team included partner Patrick E. Sigmon and counsel Tracy L. Matlock. Partner Matthew Yeowart and associate Dylan Jones provided antitrust & competition advice. Partner Paul D. Marquardt provided regulatory advice. Members of the Davis Polk team are based in the New York, Northern California, London and Washington DC offices. Davis Polk refers to Davis Polk & Wardwell LLP, a New York limited liability partnership, and its associated entities. About Mavenir Systems Mavenir Systems, Inc. is an American telecommunications software company, created in 2017 as a result of a three-way merger of existing companies and technologies, that develops and supplies cloud-native software to the communications service provider market. MCPHILLIPS FLYING: Employs Keller & Almassian PLC as Legal Counsel ------------------------------------------------------------------ McPhillips Flying Service, Inc., doing business as Island Airways, seeks approval from the U.S. Bankruptcy Court for the Western District of Michigan to hire Keller & Almassian PLC to serve as legal counsel in its Subchapter V Chapter 11 case. Keller & Almassian PLC will provide these services: (a) advise the Debtor with respect to its rights, powers, and duties as debtor and debtor-in-possession; (b) attend meetings and negotiate with creditors and other parties-in-interest; (c) advise the Debtor on the conduct of the case and legal requirements of operating in Chapter 11; (d) advise the Debtor regarding unexpired leases and executory contracts; (e) protect and preserve the Debtor's estate, prosecute and defend actions, and object to claims; (f) assist in formulating and prosecuting a Plan of Reorganization and related documents; (g) appear before the Court and U.S. Trustee and represent the Debtor's interests; and (h) perform all other necessary legal services. Keller & Almassian will be compensated at these hourly rates: $585 for Partners A. Todd Almassian or Michael D. Almassian; $550 for Partners Greg J. Ekdahl or Nicholas S. Laue; $350 for Associate Attorneys; and $250 for Paralegals. Keller & Almassian PLC is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached at: Keller & Almassian, PLC 230 East Fulton Street Grand Rapids, MI 49503 Telephone: (616) 364-2100 E-mail: ecf@kalawgr.com About McPhillips Flying Service Inc. McPhillips Flying Service Inc., doing business as Welke Aviation and operating as Island Airways, provides regional air transportation services. Based in Charlevoix, Michigan, the Company offers passenger and cargo flights connecting mainland Michigan to Beaver Island and surrounding areas. McPhillips Flying Service Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Mich. Case No. 25-02011) on July 15, 2025. In its petition, the Debtor reports total assets of $2,335,506 and total liabilities of $2,483,706. Honorable Bankruptcy Judge James W. Boyd handles the case. The Debtor is represented by A. Todd Almassian, Esq. at KELLER & ALMASSIAN, PLC. MCPHILLIPS FLYING: Taps Distel Thiede as Financial Advisor ---------------------------------------------------------- McPhillips Flying Service, Inc. seeks approval from the U.S. Bankruptcy Court for the Western District of Michigan to hire Distel Thiede Advisory Services, LLC to serve as financial advisor in its Chapter 11 Subchapter V case. DT will provide these services: (a) compile data and analysis necessary to meet reporting requirements mandated by the bankruptcy process and requests of parties related to the Debtor's restructuring, reorganization, or potential sale process; (b) compile and prepare operational and financial data and analysis to assist the Debtor and its counsel in developing a plan of reorganization and related documents; and (c) provide services, assistance, and other mutually agreed-upon activities. DT will be compensated at its customary hourly rates as detailed in its engagement letter. The firm has been paid $17,500 by the Debtor and $42,210 by the Debtor's insurance company, Starr Adjustment Services, Inc. Distel Thiede Advisory Services, LLC is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached at: Distel Thiede Advisory Services, LLC 1500 East Beltline SE, Suite 100 Grand Rapids, MI 49506 Telephone: (616) 954-2000 About McPhillips Flying Service Inc. McPhillips Flying Service Inc., doing business as Welke Aviation and operating as Island Airways, provides regional air transportation services. Based in Charlevoix, Michigan, the Company offers passenger and cargo flights connecting mainland Michigan to Beaver Island and surrounding areas. McPhillips Flying Service Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Mich. Case No. 25-02011) on July 15, 2025. In its petition, the Debtor reports total assets of $2,335,506 and total liabilities of $2,483,706. Honorable Bankruptcy Judge James W. Boyd handles the case. The Debtor is represented by A. Todd Almassian, Esq. at KELLER & ALMASSIAN, PLC. MERIT STREET: Phil McGraw Faces Creditor Deposition on Co.'s Ch. 11 ------------------------------------------------------------------- James Nani of Bloomberg Law reports that Phil McGraw, the daytime TV host widely known as “Dr. Phil,” is set to be deposed by a creditor tied to his bankrupt media company, Merit Street Media Inc. Professional Bull Riders LLC, a creditor in the case, issued a subpoena seeking extensive records from McGraw concerning Merit's finances, his separate production company, and Trinity Broadcasting of Texas Inc., Merit's Christian broadcasting partner, according to a notice filed Wednesday, July 30, 2025, in the U.S. Bankruptcy Court for the Northern District of Texas. About Merit Street Media Merit 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, before the Hon. Scott W. Everett. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million. The Debtor is represented by Sidley Austin LLP as bankruptcy counsel. Epiq Corporate Restructuring, LLC serves as Claims, Noticing, and Solicitation Agent, effective as of the Petition Date. MEYER BURGER: To Sell Residential Panels to Guided Path for $1.3MM ------------------------------------------------------------------ Meyer Burger (Holding) Corp. and its debtor affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware, to sell Property, free and clear of liens, claims, and encumbrances. The Meyer Burger brand has been at the forefront of solar technology for more than twenty-five years. Although the Meyer Burger brand has long been a household name for excellence in the solar industry, in the past few years, non-Debtor, Meyer Burger Technology AG, has faced a confluence of financial and operational setbacks due to, among other things, the inundation of the global market with low-priced Chinese products and debilitating trade restrictions. This product oversupply paired with trade restrictions led to market distortion within the global solar industry, and these pains were especially felt by Meyer Burger in Europe. In light of these macro-economic headwinds, MBT AG decided to expand the business outside of Europe and enter into the solar market in the U.S. The Debtors filed the Chapter 11 Cases to maximize value for the benefit of all their stakeholders through a sale or disposition of all or substantially all of their assets. As part of their prepetition residential solar business, the Debtors sold residential photovoltaic solar panel modules (Residential Panels) supported by post-sale warranties. The Debtors have in storage approximately 41 MW of Residential Panels in a warehousing and distribution center located in Gouldsboro, Pennsylvania. The Debtors, with the assistance of Jefferies, have continued to market the Residential Panels to potential buyers consistent with the proposed Bidding Procedures As a result of the Debtors' marketing efforts, on July 22, 2025, the Debtors filed a private sale motion, seeking authorization to sell approximately 9 MW of Residential Solar Panels to BayWa r.e. Solar Systems LLC. Similarly, Guided Path Ventures LLC submitted an offer to purchase the Debtor's remaining inventory of approximately 32 MW of Residential Panels currently stored at the Gouldsboro Warehouse on an "as is, where is" basis, with the purchase price of $1,300,000. The Debtors enter into the Bill of Sale with the Purchaser, which also state that the the Bill of Sale and any of the obligations of the Purchaser described in the Bill of Sale shall only become effective and enforceable, and binding upon the Purchaser, after the Seller has obtained a final order of the Court. The Debtors have not conducted an auction for the sale of the Purchased Assets. The Debtors submits that: adequate justification exists for the approval of the Proposed Transaction; the Proposed Transaction was negotiated at arm's-length and in good faith; the Purchase Price and other consideration represents the highest and best offer currently available to the Debtors for the Purchased Assets; and adequate and reasonable notice will be provided to relevant parties. The Debtors assert that adequate business justification exists for the Proposed Transaction pursuant to the terms of the Bill of Sale. About Meyer Burger (Holding) Corp. Meyer Burger (Holding) Corp. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 25-11217) on June 25, 2025. At the time of the filing, Debtor had estimated assets of between $100 million to $500 million and liabilities of between $500 million to $1 billion. Judge Craig T. Goldblatt oversees the case. Richards, Layton & Finger, P.A. is Debtor's legal counsel. NEW WORLD: Employs Kevin Wiley as Legal Counsel ----------------------------------------------- New World Contracting LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire Kevin S. Wiley, Sr. of The Wiley Law Group, PLLC to serve as legal counsel in its Chapter 11 case. Mr. Wiley will provide these services: (a) counsel and assist the Debtor in negotiations for the final resolution of a plan; (b) advise the Debtor on its powers and duties in the Chapter 11 case, including strategy for exit from bankruptcy, disclosure statements and plans, and other issues that may arise; (c) appear in court to protect the Debtor's interests; (d) attend meetings as requested by the Debtor; (e) perform all other legal services necessary and proper for the case, including advice in corporate, bankruptcy, tort, employment, governmental, intellectual property, and secured transactions; and (f) perform additional functions as requested by the Debtor or the Court in accordance with professional standards. Mr. Wiley received $3,000 from the Debtor's owner for post-petition services. Kevin S. Wiley, Sr. is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached at: Kevin S. Wiley, Sr. THE WILEY LAW GROUP, PLLC 325 N. St. Paul Street, Suite 2250 Dallas, TX 75201 Telephone: (214) 537-9572 Facsimile: (972) 449-5717 E-mail: kwiley@wileylawgroup.com About New World Contracting , New World Contracting, LLC is a construction company specializing in public infrastructure projects including schools, parks, historic restorations, highways, bridges, and hospitals. Based in Rockwall, Texas, New World Contracting has worked with government entities such as the U.S. Army Corps of Engineers and the Department of Defense. It was founded in 2013 and is woman-owned, minority-owned, and certified as a disadvantaged business enterprise. New World Contracting sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-31944) on May 28, 2025. In its petition, the Debtor reported total assets of $9,329 and total liabilities of $1,567,984. Judge Stacey G. Jernigan oversees the case. The Debtor is represented by Kevin S. Wiley, Sr., at Wiley Law Group, PLLC. NIKOLA CORP: Fiedler Group Steps Down as Committee Member --------------------------------------------------------- The U.S. Trustee for Region 3 disclosed in a court filing the resignation of Fiedler Group from the official committee of unsecured creditors in the Chapter 11 cases of Nikola Corp. and its affiliates. As of July 28, the remaining members of the committee are: 1. Antara Capital LP Attn: Raph Posner 55 Hudson Yards 47th Floor, Suite C New York, NY 10001 Phone: 646-762-8580 RPosner@AntaraCapital.com 2. Hexagon Purus GmbH Attn: Ashley Remillard 3335 Susan Street Costa Mesa, CA 926263 Phone: 949-396-7413 Ashley.remillard@hexagongroup.com 3. Aztek Technologies S.A. DE C.V. Attn: Juan Jose Ochoa Renteria Carretera Monterrey Garcia Km 3 AV FINSA 3203 Parque Industrial FINSA Santa Catarina, Nuevo Leon C.P. 66367 Mexico Phone: +81.80.48.04.00 jochoa@aztektec.com 4. Proterra Powered LLC Attn: Ben Haydock and Jen Miller 1815 Rollins Road Burlingame, CA 94010 bhaydock@proterra.com jmiller5@proterra.com About Nikola Corp. Nikola Corporation and affiliates specialize in the design and manufacture of zero-emissions commercial vehicles, including battery-electric and hydrogen fuel cell trucks. The companies operate in two business units: Truck and Energy. The Truck business unit is commercializing heavy-duty commercial hydrogen-electric (FCEV) and battery-electric (BEV) Class 8 trucks that provide environmentally friendly, cost-effective solutions to the short, medium and long-haul trucking sectors. The Energy business unit is developing hydrogen fueling infrastructure to support FCEV trucks covering supply, distribution and dispensing. Founded in 2015, Nikola is headquartered in Phoenix, Ariz. Nikola and nine of its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del., Lead Case No. 25-10258) on February 19, 2025. In the petitions, the Debtors reported total assets as of Jan. 31, 2025 of $878,094,000 and total debts as of Jan. 31, 2025 of $468,961,000. Honorable Bankruptcy Judge Thomas M. Horan handles the cases. Potter Anderson & Corroon LLP serves as general bankruptcy counsel to the Debtors, and Pillsbury Winthrop Shaw Pittman LLP serves as bankruptcy co-counsel. Houlihan Lokey Capital, Inc. acts as investment banker to the Debtors; M3 Advisory Partners LP acts as financial advisor to the Debtors; while EPIQ Corporate Restructuring LLC is the Debtors' claims and noticing agent. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee tapped Morrison & Foerster LLP and Morris James, LLP as legal counsels; Ducera Securities, LLC as investment banker; and FTI Consulting, Inc. as financial advisor. NORTH WHITEVILLE: Bankr. Administrator Unable to Appoint Committee ------------------------------------------------------------------ The U.S. Bankruptcy Administrator for the Eastern District of North Carolina disclosed in a filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of North Whiteville Urgent Care & Family Practice, PA. About North Whiteville Urgent Care & Family Practice North Whiteville Urgent Care & Family Practice, PA is a medical services provider. North Whiteville sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-02217) on June 12, 2025, listing under $1 million in both assets and liabilities. Judge David M. Warren handles the case. The Debtor tapped Christian B. Felden, Esq., at Felden & Felden, PA as legal counsel and Streeter Tax Consultants as accountant. NUVO GROUP: Taps Westfleet as Litigation Funding Consultant ----------------------------------------------------------- Nuvo Group USA, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Delaware to hire Westfleet Advisors, LLC as litigation funding consultant in its Chapter 11 case. Westfleet Advisors will provide these services: (a) advise regarding the development of the Debtors' presentation of proposed litigation financing to the commercial litigation finance market; (b) prepare a Confidential Information Memorandum for participants in the litigation funding market; (c) advise on selection of market participants to receive the CIM; (d) actively pursue financing proposals; (e) analyze proposals received; (f) advise and provide limited representation in negotiations of financing terms and related documents; (g) prepare written declarations or affidavits to be submitted to the Bankruptcy Court, and provide in-person sworn testimony as needed; and (h) make introductions to parties with relevant regulatory expertise. Westfleet will be compensated under a retainer and success fee structure: -- The "Retainer" is $7,500 and shall be payable by wire transfer to Westfleet within five business days of Bankruptcy Court approval of this Agreement. The "Success Fee" is contingent upon the Client's consummation of the Transaction; -- The Success Fee shall be calculated as an amount equal to the GREATER OF (i) $150,000 and (ii) Five Percent of the maximum amount of financing available under the documents governing the Transaction, regardless of whether the entirety of such financing is available and accessible by the Client immediately upon consummation of the Transaction or is available in one or more tranches that may be subject to certain conditions. Westfleet Advisors, LLC is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached at: Charles M. Agee, III WESTFLEET ADVISORS, LLC 40 Burton Hills Blvd, Suite 200 Nashville, TN 37215 Telephone: (615) 312-8255 Email: cagee@westfleetadvisors.com About Nuvo Group USA Nuvo Group USA, Inc. provides clinicians and expectant mothers with access to medically-necessary remote pregnancy monitoring. It is based in Princeton, N.J. Nuvo Group USA filed Chapter 11 petition (Bankr. D. Del. Lead Case No. 24-11880) on August 22, 2024, with $3.5 million in assets and $39.4 million in debt. Judge Mary F. Walrath oversees the case. The Debtor is represented by Derek C. Abbott, Esq., at Morris, Nichols, Arsht & Tunnell. ODM TRUCK: Gets Extension to Access Cash Collateral --------------------------------------------------- ODM Truck, Inc. received another extension from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to use cash collateral to pay its operating expenses. At the hearing held on July 29, the court allowed the Debtor to continue to use its cash collateral on an interim basis and set a further hearing for September 9. The Debtor's cash collateral consists of approximately $1.2 million in gross monthly receipts, as well as $1,061 in cash (on hand and on deposit at Synovus Bank) and $372,156 in accounts receivable. The Debtor was initially allowed to access its cash collateral, including cash, accounts receivable, and operational proceeds through July 29 pursuant to the court's July 18 interim order. The court's initial order granted Synovus Bank and merchant cash advance lenders a continuing and perfected replacement lien on assets similar to their pre-bankruptcy collateral, with the same validity, priority and extent as their pre-bankruptcy lien. About ODM Truck Inc. ODM Truck, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04841) on July 16, 2025, listing up to $10 million in both assets and liabilities. Yanet Gonzalez Fernandez, president of ODM Truck, signed the petition. Judge Catherine Peek McEwen oversees the case. Alberto F. Gomez, Jr., Esq., at Johnson, Pope, Bokor, Ruppel & Burns, LLP, represents the Debtor as legal counsel. Synovus Bank, as secured creditor, is represented by: Lara Roeske Fernandez, Esq. Trenam, Kemker, Scharf, Barkin, Frye, Oâ€™Neill & Mullis, P.A. 101 East Kennedy Boulevard, Suite 2700 Tampa, FL 33602 Tel: (813) 223-7474 Fax: (813) 229-6553 lfernandez@trenam.com OMEGA THERAPEUTICS: Gets Court Approval for Chapter 11 Plan ----------------------------------------------------------- Rick Archer of Law360 Bankruptcy Authority reports that on Wednesday, July 30, 2025, a Delaware bankruptcy judge approved Omega Therapeutics' Chapter 11 plan after no objections were raised to the company's proposal to distribute its remaining assets during a brief hearing. About Omega Therapeutics Omega Therapeutics Inc. is a biotechnology company in its development stages, leading innovation in a novel approach to leverage mRNA therapeutics as programmable epigenetic treatments through its OMEGA Epigenomic Programming platform. The OMEGA platform harnesses the power of epigenetics, the mechanism that controls gene expression and every aspect of an organism's life from cell genesis, growth, and differentiation to cell death. The OMEGA platform enables control of fundamental epigenetic processes to correct the root cause of disease by returning aberrant gene expression to a normal range without altering native nucleic acid sequences. Omega Therapeutics Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10211) on February 10, 2025. In its petition, the Debtor reported total assets as of Jan. 28, 2025 amounting to $137,529,941 and total debts as of Jan. 28, 2025 of $140,421,354. Honorable Bankruptcy Judge Brendan Linehan Shannon handles the case. The Debtor is represented by Derek C. Abbott, Esq., Eric D. Schwartz, Esq., Andrew R. Remming, Esq., Daniel B. Butz, Esq., Jonathan M. Weyand, Esq., and Luke Brzozowski, Esq., at Morris, Nichols, Arsht & Tunnell LLP in Wilmington, Delaware. The Debtor's special counsel is Latham & Watkins LLP. The Debtor tapped Triple P RTS, LLC as restructuring advisor and Triple P Securities LLC as investment banker. The Debtor's claims agent and administrative advisor is Kroll Restructuring Administration LLC. OMY'S COUTURE: Seeks Chapter 11 Bankruptcy in Florida ----------------------------------------------------- On July 29, 2025, Omy's Couture Hair Design LLC filed Chapter 11 protection in 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. About Omy's Couture Hair Design LLC Omy's Couture Hair Design LLC is a hair salon and design studio based in Tampa, Florida. Omy's Couture Hair Design LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-05233) on July 29, 2025. In its petition, the Debtor reports estimated assets and liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Roberta A. Colton handles the case. OWL VENICE: Seeks Subchapter V Bankruptcy in California ------------------------------------------------------- On July 29, 2025, OWL Venice LLC filed Chapter 11 protection in 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 OWL Venice LLC OWL Venice LLC, doing business as OWL Venice, offers handcrafted broth elixirs, organic skincare products, and multi-day gut health cleanse programs across Los Angeles County. The Company also provides health coaching as an additional wellness service. OWL Venice LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.: 25-16451) on July 29, 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 Sheri Bluebond handles the case. The Debtor is represented by Giovanni Orantes, Esq. at THE ORANTES LAW FIRM, A.P.C. PAGAYA US: Fitch Rates $500MM Unsecured Notes Due 2030 'B' ---------------------------------------------------------- Fitch Ratings has assigned a final rating of 'B' with a Recovery Rating of 'RR4' to Pagaya US Holding Company LLC's $500 million 8.875% unsecured notes maturing in 2030. The notes are guaranteed by Pagaya Technologies, Ltd. (Pagaya), the parent of the issuer. Proceeds from the issuance will be used to repay outstanding secured debt and for general corporate purposes. The assignment of the final ratings follows receipt of documents conforming to information already received. The final rating is the same as the expected rating assigned to the unsecured notes on July 22, 2025. Key Rating Drivers Franchise and Liquidity Support the Rating: Pagaya's rating is supported by its solid franchise and partner network, less-capital-intensive business model, appropriate balance sheet leverage, and adequate liquidity and funding diversity. Profitability and Limited Track Record Constrain the Rating: The ratings are constrained by Pagaya's limited track record through credit cycles, weak profitability to date and the low quality of its investment holdings as evidenced by recent write-downs. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deterioration in profitability and/or continued impairment charges that result in sustained negative EBITDA; - Material reduction in liquidity resources; - Reduced growth in network volume due to deterioration in consumer credit performance or capital markets conditions that weaken investor demand, or due to attrition of lender partners; - Sustained increase in debt/adjusted EBITDA above 5x; - Sustained increase in debt/tangible equity above 2x; - Sustained decrease in adjusted EBITDA/interest expense below 1x; - Sustained reduction in unsecured debt below 10% of total debt. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustained improvement in the EBITDA margin above 5%, unadjusted for impairments, or 20% on an adjusted basis; - Demonstrated durability of the business model through credit and market cycles; - Continued growth in network volume and further diversification of lending partners and the investor base; - Sustained improvement in debt/EBITDA below 5x, unadjusted for impairments, or 4x on an adjusted basis; - Sustained maintenance of debt/tangible equity below 2x; - Sustained increase in EBITDA to interest expense above 2x, unadjusted for impairments, or 3x on an adjusted basis; - Sustained maintenance of the proportion of unsecured debt to total debt above 20%. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The senior unsecured debt rating is equalized with the Long-Term Issuer Default Rating (IDR) with a Recovery Rating of 'RR4', reflecting Fitch's expectation of average recovery prospects in a stress scenario. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The senior unsecured debt rating is primarily sensitive to changes in the Long-Term IDR, the funding mix, and recovery prospects in a stressed scenario. ADJUSTMENTS The Standalone Credit Profile (SCP) has been assigned in line with the implied SCP. The Business Profile score has been assigned below the implied score due to the following adjustment reason: Business model (negative). The Capitalization & Leverage score has been assigned above the implied score due to the following adjustment reason: Historical and future metrics (positive). The Funding, Liquidity & Coverage score has been assigned above the implied score due to the following adjustment reason: Historical and future metrics (positive). Criteria Variation Fitch's "Corporate Rating Criteria" states that instruments that are held by affiliated investors whose economic and strategic interests are expected to remain aligned with those of common equity may be treated as "non-debt" of the rated entity. In this case, Fitch has treated the instrument as equity in its leverage calculations, which represents a criteria variation. Fitch does not believe the use of such variation had a measurable impact on the rating given the modest impact on the leverage calculation and the influence of other key rating drivers. Date of Relevant Committee 22-Jul-2025 ESG Considerations Pagaya Technologies, Ltd. has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security due to the importance of fair collection practices and consumer interactions and the regulatory focus on them, which has a negative impact on the credit profile and is relevant to the ratings in conjunctions 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 ----------- ------ -------- ----- Pagaya US Holding Company LLC senior unsecured LT B New Rating RR4 B(EXP) PHILLIPS TOTAL: Plan Exclusivity Period Extended to Nov. 24 ----------------------------------------------------------- Judge Beth E. Hanan of the U.S. Bankruptcy Court for the Western District of Wisconsin extended Phillips Total Care Pharmacy, Inc.'s exclusive periods to file a plan of reorganization and obtain acceptance thereof to November 24, 2025 and January 22, 2026, respectively. As shared by Troubled Company Reporter, the Debtor submits that the development of a viable plan given its employment of NAC and extensive work with NAC demonstrates a promise of probable success, and that an extension will enable it to propose a plan that will be confirmable, even if it is contested. Although it is possible that unsuccessful negotiations will result in the proposal of a plan that the lender and creditors consider unsatisfactory, that is not the purpose of the requested extension. The Debtor explains that some of the Hoffinger factors (factor 1 and 7) are inapplicable to the facts and circumstances of this Case, but the rest of the factors clearly demonstrate that the requested extensions are reasonable, appropriate, and necessary. A creditors committee has been appointed in this Case (factor 2). Debtor submits that its conduct so far reflects good faith progress towards reorganization (factor 3). In addition, the importance of determining whether to assume or reject its contracts and leases is an important unresolved issue (factor 4). Debtor is substantially current in its post-petition obligations (factor 5). There have been no previous requests to extend the exclusive periods (factor 6). Debtor is proceeding diligently to resolve all of its fundamental reorganizations matters (factor 8). There is no evidence or even suggestion of gross mismanagement of Debtor (factor 9). Phillips Total Care Pharmacy Inc. is represented by: Claire Ann Richman, Esq. Michael P. Richman, Esq. Richman & Richman LLC 122 W. Washington Ave., Ste. 850 Madison, WI 53703 Telephone: (608) 889-2322 About Phillips Total Care Pharmacy Inc. Phillips Total Care Pharmacy Inc. is a retail pharmacy based in Mauston, Wisconsin. Phillips Total Care Pharmacy sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wis. Case No. 25-10699) on March 28, 2025. In its petition, the Debtor listed assets and liabilities between $1 million and $10 million. Claire Ann Richman, and Michael P. Richman, at Richman & Richman LLC, serve as the Debtor's counsel. PREMIER LUMBER: Employs Kean Miller LLP as Legal Counsel -------------------------------------------------------- Premier Lumber Company Inc. and TexStar Lumber Inc. seek approval from the U.S. Bankruptcy Court for the Eastern District of Texas to hire Kean Miller LLP to serve as legal counsel in their jointly administered Chapter 11 cases. Kean Miller LLP will provide these services: (a) render legal advice with respect to the Debtor' powers and duties in the continued operation of the Debtors' business as debtors-in-possession; (b) take all necessary action to protect and preserve the Debtors' bankruptcy estates, including the prosecution and defense of actions, contested matters, or other proceedings and litigation; (c) prepare all necessary schedules, statements, motions, answers, orders, reports, and other legal papers in connection with administration of the estates; (d) assist in preparing and filing a plan of reorganization; and (e) perform any and all other legal services reasonably necessary or requested in connection with the Chapter 11 cases. Kean Miller LLP will receive these hourly rates: Lloyd Lim $650 Rachel Kubanda $550 Kristina Tipton $325 Other attorneys $230 to $520 Paraprofessionals $140 to $220 Kean Miller LLP will also be reimbursed for all customary costs and expenses. According to court filings, the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: Lloyd A. Lim, Esq. Rachel T. Kubanda, Esq. KEAN MILLER LLP 711 Louisiana Street, Suite 1800 South Tower Houston, TX 77002 Telephone: (713) 362-2550 E-mails: Lloyd.Lim@KeanMiller.com Rachel.Kubanda@KeanMiller.com About Premier Lumber Company Inc. Premier Lumber Company Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tex. Case No. 25-10295) on June 30, 2025. At the time of the filing, Debtors had estimated assets of between $1,000,001 to $10 million and liabilities of between $1,000,001 to $10 million. Judge Joshua P. Searcy oversees the case. Kean Miller LLP is Debtors' legal counsel. PRND3L INC: Seeks Subchapter V Bankruptcy in Massachusetts ---------------------------------------------------------- On July 29, 2025, PRND3L Inc. filed Chapter 11 protection in the District of Massachusetts. 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 PRND3L Inc. PRND3L Inc., operating as MY SALON Suite of Westborough, operates a salon suite rental facility at 153 Turnpike Rd. in Westborough, MA, where beauty professionals can lease private, fully-equipped salon suites to run their independent businesses. PRND3L Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-40801) on July 29, 2025. In its petition, the Debtor reports estimated assets between $500,000 and $1 million and estimated liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge Elizabeth D. Katz handles the case. The Debtor is represented by Joseph S.U. Bodoff, Esq. and Rion Vaughan, Esq. at Rubin and Rudman LLP. PROSOURCE MACHINERY: Gets OK to Use Cash Collateral Until Sept. 26 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Colorado issued a stipulated order authorizing ProSource Machinery, LLC to use cash collateral. The Debtor was authorized to use the cash collateral of First Interstate Bank from July 4 to September 26 in accordance with its budget, with a 15% variance allowance per line item. First Interstate Bank claims a secured interest in the Debtor's assets, including inventory, accounts and general intangibles. As protection, First Interstate Bank and other secured creditors will be granted a replacement lien on the proceeds of all post-petition accounts in case of any diminution in the value of their interest in the cash collateral. The Debtor's right to use the cash collateral terminates on September 26 or upon default, whichever comes first. The Debtor said it may sell four unencumbered 2018 Ford F150 pickup trucks, with $56,928 of the sale proceeds to be paid to First Interstate Bank by August 15. First Interstate Bank is represented by: Timothy L. Woznick, Esq. Crowley Fleck PLLP P.O. Box 394 Cheyenne, WY 82003 Telephone: 307-426-4100 twoznick@crowleyfleck.com About ProSource Machinery ProSource Machinery, LLC sells and rents off-highway construction and mining equipment in Montana and Colorado. ProSource filed Chapter 11 petition (Bankr. D. Colo. Case No. 25-11010) on February 28, 2025, listing up to $10 million in assets and up to $50 million in liabilities. Derek Dicks, managing member of ProSource, signed the petition. Judge Kimberley H. Tyson oversees the case. David J. Warner, Esq., at Wadsworth Garber Warner Conrardy, P.C., represents the Debtor as legal counsel. PUPEEZ INC: Gets Interim Approval to Use Cash Collateral -------------------------------------------------------- The U.S. Bankruptcy Court for the District of Nevada issued an interim order authorizing Pupeez Inc. to use cash collateral. The interim order authorized the Debtor to use cash collateral for business operating expenses consistent with its budget pending the final hearing on August 14. As adequate protection, First Internet Bank of Indiana and the U.S. Small Business Administration were granted replacement liens on cash collateral and the proceeds thereof. In addition, Pupeez Inc. must also make interest-only payments of $1,448.74 per month to First Internet Bank beginning August 1. The deadline for filing objections to further use of cash collateral is on August 13. First Internet Bank of Indiana is represented by: Jeffrey R. Sylvester, Esq. Kelly L. Schmitt, Esq. Sylvester & Polednak, LTD 1731 Village Center Circle Las Vegas, NV 89134 Phone: 702.952.5200 Fax: 702.952.5205 jeff@sylvesterpolednak.com kelly@sylvesterpolednak.com About Pupeez Inc. Pupeez Inc. is a Petland franchise pet store operating in Las Vegas, Nevada. Pupeez 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 reported estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. The Debtor is represented by: Marjorie A. Guymon, Esq. Goldsmith & Guymon, P.C. Tel: 702-873-9500 Email: bankruptcy@goldguylaw.com PURDUE PHARMA: Ad Hoc Govt. Group Gets OK to Tap Claims Admin ------------------------------------------------------------- Rick Archer of Law360 Bankruptcy Authority reports that on Thursday, July 31, 2025, a New York bankruptcy judge authorized an ad hoc governmental group to appoint an administrator to manage claims in Purdue Pharma's $8 billion Chapter 11 plan, citing the necessity of the administrator's services. About Purdue Pharma LP Purdue Pharma L.P. and its subsidiaries -- http://www.purduepharma.com/-- develop and provide prescription medicines and consumer products that meet the evolving needs of healthcare professionals, patients, consumers and caregivers. Purdue's subsidiaries include Adlon Therapeutics L.P., focused on treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and related disorders; Avrio Health L.P., a consumer health products company that champions an improved quality of life for people in the United States through the reimagining of innovative product solutions; Imbrium Therapeutics L.P., established to further advance the emerging portfolio and develop the pipeline in the areas of CNS, non-opioid pain medicines, and select oncology through internal research, strategic collaborations and partnerships; and Greenfield Bioventures L.P., an investment vehicle focused on value-inflection in early stages of clinical development. Opioid makers in the U.S. are facing pressure from a crackdown on the addictive drug in the wake of the opioid crisis and as state attorneys general file lawsuits against manufacturers. More than 2,000 states, counties, municipalities and Native American governments have sued Purdue Pharma and other pharmaceutical companies for their role in the opioid crisis in the U.S., which has contributed to the more than 700,000 drug overdose deaths in the U.S. since 1999. OxyContin, Purdue Pharma's most prominent pain medication, has been the target of over 2,600 civil actions pending in various state and federal courts and other fora across the United States and its territories. On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 19 23649), after reaching terms of a preliminary agreement for settling the massive opioid litigation. The Debtors' consolidated balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets and $562 million in liabilities. U.S. Bankruptcy Judge Robert Drain oversees the cases. The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP, as legal counsels; PJT Partners as investment banker; AlixPartners as financial advisor; and Grant Thornton, LLP as tax structuring consultant. Prime Clerk, LLC, is the claims agent. Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the official committee of unsecured creditors appointed in the Debtors' bankruptcy cases. David M. Klauder, Esq., is the fee examiner appointed in the Debtors' cases. The fee examiner is represented by Bielli & Klauder, LLC. * * * U.S. Bankruptcy Judge Robert Drain in early September 2021 approved a plan to turn Purdue into a new company (Knoa Pharma LLC) no longer owned by members of the Sackler family, with its profits going to fight the opioid epidemic. The Sackler family agreed to pay $4.3 billion over nine years to the states and private plaintiffs and in exchange for a lifetime legal immunity. The deal resolves some 3,000 lawsuits filed by state and local governments, Native American tribes, unions, hospitals and others who claimed the company's marketing of prescription opioids helped spark and continue an overdose epidemic. Separate appeals to approval of the Plan have already been filed by the U.S. Bankruptcy Trustee, California, Connecticut, the District of Columbia, Maryland, Rhode Island and Washington state, plus some Canadian local governments and other Canadian entities. In early March 2022, Purdue Pharma reached a nationwide settlement over its role in the opioid crisis, with the Sackler family members boosting their cash contribution to as much as $6 billion. The settlement was hammered out with attorneys general from the eight states -- California, Connecticut, Delaware, Maryland, Oregon, Rhode Island, Vermont and Washington -- and D.C. who had opposed the previous settlement. RAND PARENT: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable ------------------------------------------------------------ Fitch Ratings has affirmed Rand Parent, LLC's (dba Atlas Air [Atlas]) Long-Term Issuer Default Rating (IDR) at 'BB'. Fitch has also affirmed the senior secured credit facilities and notes at 'BB+' with a Recovery Rating of 'RR3', revising the Recovery Rating to 'RR3' from 'RR2'. The Rating Outlook is Stable. Proceeds from the proposed $300 million term loan add-on will fund a dividend distribution. Fitch revised the Recovery Rating to 'RR3' to reflect increased debt at the parent company and continued addition of financed assets primarily within the unrestricted group that has increased collateral subordination. However, consolidated EBITDA has increased, which supports Rand Parent's debt servicing and IDR via contracted, asset-financed aircraft within the unrestricted group. Fitch forecasts pro forma consolidated EBITDAR leverage in the 3.3-3.5x range, considering new aircraft, cost savings, and customer contract initiatives. The company's financial policies remain growth oriented, while shareholder distributions are balanced with leverage. Key Rating Drivers Bonds, Credit Facility Revised to 'RR3': Atlas has added incremental debt in the restricted group without a track record of adding assets to the depreciating collateral base within the restricted group. The recent aircraft additions have been completed in the unrestricted group and funded with other priority interests, leading to a shift in mix of earnings and cash flow generation to the unrestricted group from the restricted group. Pro forma for the transaction, loan-to-value on the parent debt is expected to rise to 78% from 68%. Despite the new debt, Atlas's IDR is supported by the improving consolidated cash flow profile, though a continuation of this shift is a rating concern. Low-to-Mid 3.0x EBITDAR Leverage: Fitch expects consolidated leverage to remain in the 3.3x-3.5x range, consistent with 'BB' rating tolerances. The incremental debt financing is matched with an improvement in operating earnings during 2025-2026, mitigating the leverage impact. Continued debt-funded fleet growth is likely going forward and could cause leverage to fluctuate, but Atlas's practice of having new aircraft demand in place prior to purchases helps mitigate execution risks. Additional dividend distributions that are not match EBITDA improvements or increasingly rely on subordinated EBITDA and cash flows may drive negative rating actions. Growth, Shareholder Capital Allocation: Fitch expects Atlas will maintain its capital allocation strategy of prioritizing credit conscious aircraft purchase, then shareholder returns to maintain its capital structure. Fitch believes Atlas will maintain through-the-cycle financial flexibility and collateral coverage, particularly as it can reduce common dividends (about $240 million in 2024) and revert to pay-in-kind (PIK) preferred dividends (about $125 million per year) as key components of financial flexibility. Initiatives Supporting FCF, Profitability: FCF before preferred and common distributions is expected to be nearly $200 million in 2025. Fitch forecasts FCF before shareholder distributions and any aircraft purchases of more than $500 million in 2026. Atlas is pursuing a variety of initiatives to improve margins and FCF, including cutting operating costs, bringing new aircraft into service, and exiting business where returns do not meet hurdle rates. Fitch expects these initiatives to add more than $350 million of earnings, supporting EBITDA of over $1.2 billion, up from $1.0 billion in 2024. Fitch also expects some negative impact from unfavorable air cargo market conditions. Uncertain Air freight Environment: Although international trade and economic uncertainty pose risks to Atlas's air cargo rates and flying activity, Fitch expects the impact to be softened by the company's contracted service offerings and operational and financial flexibility. A small but meaningful portion of Atlas' business is derived from China to U.S. routes and includes shipments for tech and consumer electronics, e-commerce, and other merchandise. Rates outside of transpacific routes could also be affected by changes in overall industry demand and capacity balance. Contracted Flights Moderate Rate Exposure: Fitch views the heavily contracted customer model, which provides predictable revenue through multi-year pricing and minimum volume arrangements as a key strength of Atlas's business model. This provides Atlas time to adjust to changes in the air cargo environment. Atlas's book of business is typically structured so that about 10% of block hours are up for contract renewals each year, while another 10% represent ad hoc, marked-based flying (often special event or non-freight cargo). Fitch does not believe that there is a meaningful risk of contract cancellations through a rate cycle due to high penalties for breaking contracts. Peer Analysis Fitch compares Atlas with air cargo peer Stonepeak Nile Parent LLC (ATSG; BB+/Stable) as a close operational peer in the cargo freight market. Atlas is primarily an ACMI/CMI provider, which carries somewhat higher volumetric exposure than ATSG's dry lease heavy business, which supports lower operating risk. Fitch forecasts ATSG's leverage in the low-3.0x range. In comparing Atlas to passenger airlines, such as Air Canada (BB/Stable), Fitch considers the differences in business profiles and industry structure of freight airlines. Atlas benefits from a high degree of contracted revenue that includes multi-year rate agreements, fuel surcharges that substantially limit fuel price risk and activity minimums, all of which support fundamental cash flow visibility. Competitive advantages are related to fleet composition, scale and service quality. Passenger airlines typically have more entrenched route structures, supporting competitive positioning. Air Canada's EBITDAR leverage is expected to trend to the mid-to-low 3.0x range in the medium term. Key Assumptions - Revenue, excluding fuel, remains around $5.0 billion in 2025, as contributions from new aircraft offset contract roll-offs and softer air cargo conditions. - Fitch-defined EBITDA totals approximately $1.2 billion in 2025 and remains near this level, supported by profit improvement initiatives and a favorable mix from new aircraft operations. - Expenditures for aircraft and related equipment additions total roughly $320 million in 2025. - SOFR rates remain in the 4%-5% range through the forecast. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to A Negative Rating Action/Downgrade - Mid-cycle EBITDAR leverage sustained above 3.5x; - Mid-cycle EBITDAR Fixed Charge Coverage sustained below 3.5x; - Increased proportion of EBITDA from unrestricted assets that changes the cash flow risk profile; - Capital deployment actions that reduce collateral asset quality (e.g., increased average age) and financial flexibility; - A shift in operating profile that heightens through-the-cycle FCF variability, including weaker contract structures and durations, or constrains FCF (excluding growth capex) to consistently below $200 million. Factors that Could, Individually or Collectively, Lead to A Positive Rating Action/Upgrade - Establishment of a clear, credit-conscious capital allocation and fleet planning policy that enhances collateral asset quality and financial flexibility; - A less-encumbered capital structure with mid-cycle EBITDAR leverage sustained below 3.0x; - Effective implementation of strategic growth plans, coupled with maintaining healthy contract structures and durations, that strengthen FCF stability through business cycles. - Maintaining a balance of contributions from the restricted group on consolidated EBITDA. Liquidity and Debt Structure As of March 31, 2025, Atlas had a comfortable liquidity position comprising $181 million of cash, full availability under the $350 million RCF, plus availability under the $150 million AR securitization facility. Mandatory debt amortization is scheduled to be $200 million to $250 million per year over the next three years, primarily from aircraft financing and to a lesser extent, annual term loan amortization. The revolver and $990 million (commitment amount) term loan are structurally subordinated to the aircraft-secured debts, which are borrowed under various subsidiaries and do not carry cross or downstream guarantees. Fitch does not treat the $900 million of preferred stock as debt since it was issued outside of the rated entity/restricted group, is unable to trigger a default under Atlas' debt terms, and does not have event of default provisions or debt-like remedies under the terms. Issuer Profile Atlas Air is a global cargo airline that operates over 100 aircraft including a mix of Boeing 747, 777, 767 and 767 aircraft. It serves a variety of customers in freight forwarding, express shipping, retail and e-commerce, and military markets. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Rand Parent, LLC LT IDR BB Affirmed BB senior secured LT BB+ Affirmed RR3 BB+ REAL MCCOY: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Real McCoy Tea Company d/b/a Kombucha Town d/b/a Cascade Craft Consulting d/b/a Live Seltzer d/b/a McCoy Teas d/b/a Real McCoy Teas, LLC d/b/a The Culture Cafe 210 E. Chestnut Street Bellingham, WA 98225 Business Description: Real McCoy Tea Company manufactures beverages under brands including Kombucha Town, Live Seltzer, McCoy Teas, and Real McCoy Teas, LLC. The Company produces organic kombucha and raw seltzer beverages in flavors such as Original Ginger, Blood Orange, Guayusa Mint, and Cucumber. The Company operates from Bellingham, Washington, and distributes its products through retail and online channels across multiple U.S. states. Chapter 11 Petition Date: July 20, 2025 Court: United States Bankruptcy Court Western District of Washington Case No.: 25-12110 Judge: Hon. Christopher M. Alston Debtor's Counsel: Thomas D. Neeleman, Esq. NEELEMAN LAW GROUP, P.C. 1403 8th Street Marysville, WA 98270 Tel: (425) 212-4800 Fax: (425) 212-4802 E-mail: courtmail@expresslaw.com Total Assets: $204,937 Total Liabilities: $2,637,424 The petition was signed by Christopher McCoy 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/KCRKADI/Real_McCoy_Tea_Company__wawbke-25-12110__0001.0.pdf?mcid=tGE4TAMA RED RIVER: 3rd Circ. Upholds Class Cert. for Investors in Talc Suit ------------------------------------------------------------------- Katryna Perera of Law360 reports that on Wednesday, July 30, 2025, a divided Third Circuit upheld a New Jersey federal judge's decision to certify a class of Johnson & Johnson investors who claim the company inflated its stock price by concealing cancer risks associated with its talcum powder products. The appeals court agreed that the lower court correctly found common issues to predominate in the case, the report states. About J&J Talc Units LLT Management, LLC (formerly known as LTL Management LLC) was a subsidiary of Johnson & Johnson that was formed to manage and defend thousands of talc-related claims and oversee the operations of Royalty A&M. Royalty A&M owns a portfolio of royalty revenue streams, including royalty revenue streams based on third-party sales of LACTAID, MYLANTA/MYLICON and ROGAINE products. LTL Management first filed a petition for Chapter 11 protection (Bankr. W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov. 16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time of the filing, the Debtor was estimated to have $1 billion to $10 billion in both assets and liabilities. In the 2021 case, LTL Management tapped Jones Day and Rayburn Cooper & Durham, P.A., as bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon LLP as special counsel; McCarter & English, LLP as litigation consultant; Bates White, LLC as financial consultant; and AlixPartners, LLP as restructuring advisor. Epiq Corporate Restructuring, LLC, served as the claims agent. On Dec. 24, 2021, the U.S. Trustee for Regions 3 and 9 reconstituted the talc claimants' committee and appointed two separate committees: (i) the official committee of talc claimants I, which represents ovarian cancer claimants, and (ii) the official committee of talc claimants II, which represents mesothelioma claimants. The official committee of talc claimants I tapped Genova Burns LLC, Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its legal counsel. Meanwhile, the official committee of talc claimants II is represented by the law firms of Cooley LLP, Bailey Glasser LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and Sherman Silverstein Kohl Rose & Podolsky P.A. Re-Filing of Chapter 11 Petition On Jan. 30, 2023, a panel of the Third Circuit issued an opinion directing this Court to dismiss the 2021 Chapter 11 Case on the basis that it was not filed in good faith. Although the Third Circuit panel recognized that the Debtor "inherited massive liabilities" and faced "thousands" of future claims, it concluded that the Debtor was not in financial distress before the filing. On March 22, 2023, the Third Circuit entered an order denying the Debtor's petition for rehearing. The Third Circuit entered an order denying LTL's stay motion on March 31, 2023, and, on the dame day,issued its mandate directing the Bankruptcy Court to dismiss the 2021 Chapter 11 Case. The Bankruptcy Court entered an order dismissing the 2021 Case on April 4, 2023. Johnson & Johnson on April 4, 2023, announced that its subsidiary LTL Management LLC (LTL) has re-filed for voluntary Chapter 11 bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain approval of a reorganization plan that will equitably and efficiently resolve all claims arising from cosmetic talc litigation against the Company and its affiliates in North America. In the new filing, J&J said it has agreed to contribute up to a present value of $8.9 billion, payable over 25 years, to resolve all the current and future talc claims, which is an increase of $6.9 billion over the $2 billion previously committed in connection with LTL's initial bankruptcy filing in October 2021. LTL also has secured commitments from over 60,000 current claimants to support a global resolution on these terms. In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey, ruled that the second bankruptcy case should be dismissed. 3rd Try In May 2024, J&J announced its subsidiary LLT Management LLC is soliciting support for a consensual prepackaged bankruptcy plan to resolve its talc-related liabilities. Under the terms of the plan, a trust would be funded with over $5.4 billion in the first three years and more than $8 billion over the course of 25 years, which J&J calculates to have a net present value of $6.475 billion. If the Plan is accepted by at least 75% of voters, a bankruptcy was to be filed under the case name In re Red River Talc LLC. Epiq Corporate Restructuring, LLC is serving as balloting and solicitation agent for LLT. On Sept. 20, 2024, Red River Talc LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D. Tex. Case No. 24-90505). Porter Hedges LLP and Jones Day serve as counsel in the new Chapter 11 case. Epiq is the claims agent. Paul Hastings LLP is counsel to the Ad Hoc Committee of Supporting Counsel. Randi S. Ellis is the proposed prepetition legal representative of future claimants. REMEMBER ME: Gets Extension to Access Cash Collateral ----------------------------------------------------- Remember Me Senior Care, LLC received interim approval from the U.S. Bankruptcy Court for the Eastern District of Tennessee at Chattanooga to use cash collateral until August 28, marking the fifth extension since its Chapter 11 filing. The fifth interim order authorized the Debtor to use cash collateral to pay its expenses pending the final hearing on August 28. As protection for the use of their cash collateral, secured creditors were granted replacement liens on the Debtor's post-petition property to the same extent and priority as their security interest in the Debtor's pre-bankruptcy property. In addition, the Debtor was ordered to make payment of $88,000 to secured creditors on the due date set forth in their loan agreements and to keep the Debtor's assets secured. The fifth interim order granted the Debtor a carveout and authorized the Debtor to pay from the cash collateral fees and disbursements to bankruptcy professionals, and any fees payable to the Clerk of the Bankruptcy Court. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/2x80Y from PacerMonitor.com. About Remember Me Senior Care Remember Me Senior Care, LLC, a company in Cleveland, Tenn., offers personalized assisted living and memory care services in a homelike environment. The facility provides a range of services, including help with daily activities, medication management, and specialized care for those with Alzheimer's or other dementias. Remember Me Senior Care sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Tenn. Case No. 25-10451) on February 18, 2025. In its petition, the Debtor reported up to $50,000 in assets and between $10 million and $50 million in liabilities. Judge Nicholas W. Whittenburg oversees the case. The Debtor is represented by: Jeffrey W. Maddux, Esq. Chambliss, Bahner & Stophel P.C. Liberty Tower 605 Chestnut Street, Ste. 1700 Chattanooga, TN 37450 Tel: 423-757-0296 Fax: 423-508-1296 Email: jmaddux@chamblisslaw.com RENT-A-CHRISTMAS LLC: Seeks Subchapter V Bankruptcy in New York --------------------------------------------------------------- On July 29, 2025, Rent-A-Christmas LLC filed Chapter 11 protection in the Southern District of New York. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 50 and 99 creditors. The petition states funds will be available to unsecured creditors. About Rent-A-Christmas LLC Rent-A-Christmas LLC is a seasonal decoration rental company specializing in Christmas trees, lights, and holiday displays for commercial and residential customers. Rent-A-Christmas LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-22707) on July 29, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities $1 million and $10 million. The Debtor is represented by Julie Cvek Curley, Esq. at Kirby Aisner & Curley LLP. RESIDEO TECHNOLOGIES: S&P Places 'BB+' ICR on Watch Negative ------------------------------------------------------------ S&P Global Ratings placed its 'BB+' issuer credit rating on Resideo Technologies Inc. and its 'BBB-' issue-level rating on the company's secured debt on CreditWatch negative. S&P revised the recovery rating to '2' from '1', indicating its expectation for substantial (70%-90%; rounded estimate: 85%) recovery for lenders in the event of a payment default. S&P said, "We assigned our 'BBB-' rating to the proposed $1.225 billion term loan, issued by wholly owned subsidiary Resideo Funding Inc., and placed it on CreditWatch negative. The recovery rating is '2', indicating our expectation for substantial (70%-90%; rounded estimate: 85%) recovery. We lowered our rating on the company's unsecured notes to 'BB' from 'BB+' and placed it on CreditWatch negative. We revised our recovery rating to '5' from '3', indicating our expectation for modest (10%-30%; rounded estimate: 15%) recovery. "The CreditWatch reflects heightened likelihood of lower ratings given our expected view of Resideo's business after the spin-off. We will review the company's capitalization plans for the remaining business and update our view of its business in resolving the CreditWatch listing. Resideo announced that it reached an agreement with former parent Honeywell International Inc. to settle and terminate their indemnification and reimbursement agreement (IRA) for $1.6 billion. Resideo plans to fund the settlement and liability repayment with cash on hand and a new $1.225 billion term loan B. The spin-off of the ADI segment would likely weaken Resideo's business, in our view. It will give Resideo greater overall exposure to residential end markets since most of the Products and Solutions (P&S) segment's products are sold into homes, whereas the ADI segment had greater exposure (about 70% of revenue) to commercial markets. In our view, the remaining Resideo business will have increased vulnerability to volatility in EBITDA ad credit metrics given its concentrated residential exposure, which can be cyclical and based on a variety of factors including interest rates, consumer health, and the housing market. Furthermore, Resideo's scale in terms of its revenue base (the P&S segment generated $2.6 billion for the last 12 months ending June 28, 2025) will compare less favorably to similarly rated peers. This also increases the potential for volatility of EBITDA and credit metrics in scenarios of weakening demand. That said, S&P believes Resideo will likely maintain its good end-market positions and continue to manufacture and sell its leading brands such as Honeywell Home, First Alert, Braukman, and BRK. S&P said, "The IRA settlement payment slows our forecast for deleveraging but we forecast S&P Global Ratings-adjusted leverage will drop toward 3x in 2026. We now forecast Resideo's S&P Global Ratings-adjusted leverage will remain in the mid-3x area in 2025, above our 3x downside threshold, compared to our prior forecast of improvement toward 2.8x in 2025. This is in part because the payment of $1.6 billion is meaningfully higher than the $850 million in our measure of adjusted debt to reflect the IRA liability. We based our debt adjustment on our assumption for the present value of estimated minimum payments under the IRA and assumed annual payments would decline over time. We assume that the settlement amount was likely based on an assumption that the settlement payments remained $140 million annually over the life of the agreement through 2043. "Absent a spin, we forecast leverage to decline toward 3x in 2026 with continued good free operating cash flow (FOCF). Furthermore, though interest expense increases with the proposed term loan B, FOCF should improve as the Honeywell payments discontinue. "We forecast revenue to increase modestly on new product introductions and pricing. We assume a 9%-10% revenue improvement in 2025, largely on a full-year contribution of Snap One, which was acquired in June 2024. We forecast low-single-digit percent organic growth from modest volume expansion, including sales of new products such as the Honeywell Home FocusPRO thermostat, and from price increases, including those implemented to offset tariff impact. In the company's ADI segment, we assume organic revenue also improves in the low-single-digit percent area behind modest increases in demand from commercial end markets. We expect economic growth will continue, albeit at a moderated pace, and that price increases will offset tariffs. "We believe the direct and indirect tariff impact to Resideo should be manageable because we believe it can increase prices if demand does not weaken given the company's good brand names and market position. We also believe Resideo can adjust its supply chain to help mitigate direct tariff impact. Nevertheless, consumer spending, home repair and remodel activity, or housing starts and sales that are weaker than we anticipate are risks to our forecast." S&P Global Ratings-adjusted EBITDA margin should benefit from prior cost reductions, acquisition related synergies, volume, and price. S&P said, "We forecast Resideo's S&P Global Ratings-adjusted EBITDA margin will increase 150-200 basis points year over year in 2025 from a full-year contribution of Snap One benefiting operating leverage, acquisition-related cost synergies, modest organic volume increases, price increases, and more sales in the ADI segment of higher-margin exclusive brand and e-commerce products. We assume adjusted EBITDA margin also improves from cost-out actions and other factory efficiency measures taken over the past several quarters in the company's P&S segment. We assume these benefits are sufficient to offset our assumption for restructuring expenses, and fees and expenses related to the execution of the proposed term loan, which we include in our measure of EBITDA. S&P Global Ratings-adjusted margin in 2026 will likely be affected by changes to corporate expenses and spin-off costs." S&P said, "Absent a spin-off, we assume S&P Global Ratings-adjusted EBITDA margin remains about flat year over year in 2026. We assume stagnant demand growth makes incremental price increases more challenging to achieve and certain commodity input prices rise. We assume these margin impacts offset the roll-off of transaction-related fees and expenses and our assumption for restructuring expenses to decline. "We forecast continued good FOCF. We assume Resideo's unadjusted FOCF declines modestly in 2025 to about $330 million from $364 million in 2024 due to working capital as a use of cash to support revenue improvement, compared to working capital being a source of cash in 2024, and for higher capital expenditure (capex) to support store and distribution center consolidations in ADI as part of synergies following the Snap One acquisition. While cash interest expense increases from the proposed term loan, FOCF should benefit from the lack of $140 million reimbursement payments to Honeywell. We assume FOCF in 2026 is affected by the spin-off. Absent a spin-off, however, we forecast FOCF increasing toward the mid-$400 million area in 2026, which includes working capital as a use of cash to support revenue growth, and capex remaining elevated at about $140 million a year. "The CreditWatch with negative implications reflects our view of a heightened probability for lower ratings given that we would likely view of Resideo's business as weaker post spin-off. In resolving the CreditWatch, we will review the company's capitalization plans and update our view of its business." RHODIUM ENCORE: Says Cooling System Patent Claims Blocked --------------------------------------------------------- Spencer Brewer of Law360 reports that bankrupt cryptocurrency miner Rhodium told a Texas federal bankruptcy judge on Wednesday, July 30, 2025, that a company specializing in large-scale cooling systems cannot pursue patent infringement claims, arguing the claims had already been rejected by a federal district court. About Rhodium Encore Rhodium Encore LLC is a founder-led, Texas based, digital asset technology company utilizing proprietary tech to self-mine bitcoin. The Company creates innovative technologies with the goal of being the most sustainable and cost-efficient producer of bitcoin in the industry. Rhodium Encore sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90448) on Aug. 24, 2024. In the petition filed by Michael Robinson, as co-CRO, the Debtor reports lead debtor's estimated assets between $100 million and $500 million and estimated liabilities between $50 million and $100 million. The Honorable Bankruptcy Judge Alfredo R. Perez oversees the case. The Debtor tapped QUINN EMANUEL URQUHART & SULLIVAN, LLP, as counsel, and PROVINCE as restructuring advisor. RIO DEL PILAR: Case Summary & Six Unsecured Creditors ----------------------------------------------------- Debtor: Rio Del Pilar, LLC 720 Dinsmore Ranch Road Rio Dell, CA 95562 Business Description: Rio Del Pilar, LLC operates in cattle ranching and farming. The Company is based in Rio Dell, California, and its activities involve livestock and agricultural land use. Chapter 11 Petition Date: July 31, 2025 Court: United States Bankruptcy Court Northern District of California Case No.: 25-10467 Debtor's Counsel: Andy Warshaw, Esq. DIMARCO WARSHAW, APLC P.O. Box 704 San Clemente, CA 92674 Tel: (949) 345-1455 E-mail: andy@dimarcowarshaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Christopher Cortazar as special manager. 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/SEOTCSQ/Rio_Del_Pilar_LLC__canbke-25-10467__0001.0.pdf?mcid=tGE4TAMA RMN INVESTMENT: Seeks Chapter 11 Bankruptcy in Georgia ------------------------------------------------------ On July 29, 2025, RMN Investment Group LLC filed Chapter 11 protection in the Northern District of Georgia. 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 RMN Investment Group LLC RMN Investment Group LLC is an Atlanta-based investment company RMN Investment Group LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-58448) on July 2, 2025. In its petition, the Debtor reports estimated assets and liabilities between $50,000 and $100,000 each. RUNITONETIME LLC: Morrison Foerster Represents Creditors' Committee ------------------------------------------------------------------- Morrison Foerster was selected to represent the Official Committee of Unsecured Creditors of RunItOneTime LLC d/b/a Maverick Gaming LLC, a regional gaming and entertainment company operating cardrooms and casinos across multiple states. On July 14, 2025, Maverick Gaming filed voluntary Chapter 11 process with the support of its key secured lenders in U.S. Bankruptcy Court for the Southern District of Texas. New York restructuring partner Lorenzo Marinuzzi led the MoFo team regarding this matter, along with partners Doug Mannal and Theresa Foudy, and of counsel Raff Ferraioli. About RunItOneTime LLC RunItOneTime LLC, formerly known as Maverick Gaming LLC, headquartered in Kirkland, Washington, is a regional casino and cardroom operator across Washington State, Nevada, and Colorado. The company operates a portfolio of 31 properties, with 1,800 slot machines, 350 table games, 1,020 hotel rooms, and 30 restaurants. Maverick was founded in 2017 by Eric Persson and Justin Beltram, who hold over 70% ownership in the company. RunItOneTime LLC and 67 affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90191) on July 14, 2025. In its petition, RunItOneTime estimated assets and liabilities between $100 million and $500 million each. Judge Alfredo R. Perez oversees the cases. The Debtors tapped Latham & Watkins LLP as counsel; and Hunton Andrews Kurth LLP, as bankruptcy co-counsel. The Debtors also engaged GLC Advisors & Co., LLC and GLC Securities, LLC, as investment banker, and Triple P TRS, LLC as financial advisor. The Debtors' tax advisor is KPMG LLP. SANMINA CORP: S&P Affirms 'BB+' ICR on Acquisition of ZT Systems ---------------------------------------------------------------- S&P Global Ratings affirmed its 'BB+' issuer credit rating on EMS provider Sanmina Corp. At the same time, S&P assigned its 'BB+' issue-level rating and '3' recovery rating to Sanmina's new $800 million term loan B. S&P said, "The stable outlook reflects our expectation that while leverage will increase for Sanmina on its acquisition of ZT Systems, we expect strong topline growth and stable EBITDA margins will keep leverage below the 3x area over the next couple of years." Sanmina looking to raise new debt to fund the approximate $2.5 billion purchase of ZT Systems manufacturing business from Advanced Micro Devices (AMD). S&P said, "Even though Sanmina's acquisition of ZT Systems will increase its debt, we believe it can keep leverage below the 3x area over the next couple of years. Electronics manufacturing services (EMS) provider Sanmina is looking to close its acquisition of ZT Systems manufacturing business from AMD, which is one of the largest acquisitions in Sanmina's history. Historically, Sanmina has had very low leverage because acquisitions in the EMS space have underperformed expectations since customers often want to maintain multiple EMS partners. Sanmina will look to fund the acquisition with $2.8 billion of new debt and $150 million of common equity. We note that given how large the ZT Systems acquisition is, there is potential integration risk. ZT is tied to the success of AMD's artificial intelligence (AI) accelerator solutions. We also note that competitive pressures, especially from Nvidia, or macroeconomic or sector-specific volatility could hinder performance. Still, we believe Sanmina can maintain leverage below the 3x area over the next couple of years. "While we believe Sanmina will see good topline growth pro forma for the transaction as ZT Systems rebounds from a transition year in 2025, we expect EBITDA margins will be lower in fiscal 2026 (September year-end). ZT's profitability will be lower due to its strategy to accelerate growth on AMD AI accelerator solutions and higher mix of lower margin revenue in fiscal 2026. However, we expect Sanmina will continue to improve its EBITDA margins such that pro forma EBITDA margins will be in the high-6% area in fiscal 2026. We expect stable profitability and good topline growth will help Sanmina keep leverage below 3x in fiscal 2026. "However, we believe that pro forma Sanmina can continue to improve its profitability. Sanmina will be executing its cost-savings plan to eliminate duplicative headcount and streamline operations once the ZT transaction closes (expected in second half of 2025). We believe Sanmina will achieve synergies in fiscal 2027, which will improve profitability. Sanmina will also see EBITDA margin rise because key component sales can be sourced by Sanmina instead of other companies. The company is navigating tariffs by exploring alternatives with customers and has not seen changes in the order flow cycle. We expect ZT will see improved EBITDA as it normalizes prices on AMD AI accelerator solutions and sees higher margin products lift Sanmina's margins to the low-7% area in fiscal 2027. This, along with the over 20% topline growth we expect from strong demand from hyperscalers, will help Sanmina improve its leverage to the mid-2x area in fiscal 2027. Sanmina has also stated a target net leverage ratio of between 1.0x–2.0x with long-term goal of becoming investment grade, which we believe will sharpen its focus on its financial policy. "We believe Sanmina's improved business will see good topline growth due to stable demand from hyperscaler customers in fiscal 2026 and 2027. We believe the ZT Systems acquisition will strengthen Sanmina's business profile. ZT Systems' focus on more complex AI data center manufacturing will help expand Sanmina's overall AI and data center solutions. We expect ZT Systems acquisition will more than double Sanmina's operating scale and EBITDA in a few years. Sanmina will become a new product introduction partner (NPI) with AMD, which could lead to more EMS business tied to hyperscalers. We also believe that positioning into more AI solutions will lead to good growth for Sanmina over the next few years. Large hyperscalers have not indicated that they will be looking to slow investments in AI solutions anytime soon, as they invest to maintain competitiveness in the AI space. "Due to the stable demand from hyperscalers for both Sanmina and ZT solutions, we expect Sanmina will generate between 8%-10% organic topline growth in fiscal 2026. We also expect ZT Systems will see revenue rebound significantly in fiscal 2027 as the AMD accelerator solutions ramp up on strong demand from existing and new hyperscaler customers. We expect the strong rebound from ZT Systems and good topline growth from Sanmina will lead to more than 25% organic revenue growth in fiscal 2027. "Although we expect Sanmina will generate negative free operating cash flow (FOCF) over the next two years, Sanmina's total liquidity will be able to support its cash burn before its FOCF improves. Due to its investments for ZT Systems growth, we expect Sanmina will see negative FOCF generation over the next two fiscal years. Sanmina will likely see large working capital use as it uses cash to fund growth opportunities. We expect Sanmina capital expenditures (capex) will continue to more than double as it invests for additional manufacturing capabilities. Sanmina also has $450 million of potential earnouts that are tied to AMD performance over the next three years which it would have to pay in upside scenarios. "However, Sanmina has a $1.5 billion revolver in addition to approximately $416 million of accessible cash on balance sheet as of transaction close. While we expect Sanmina will have to draw on the revolver in the next few years to support the cash burn, we expect working capital will improve significantly in fiscal 2028 as customer orders get fulfilled. We also believe EBITDA generation will continue to improve on good topline growth and improved profitability such that Sanmina will generate more than $700 million of FOCF in fiscal 2028, which we believe will allow it to pay down the majority of its revolver draw. "The stable outlook reflects our expectation that while leverage will increase for Sanmina on its acquisition of ZT Systems, we expect its strong topline growth due to hyperscalers demand and stable EBITDA margins from its cost-savings plan and operational efficiencies will keep leverage below the 3x area over the next couple of years. "We could lower the rating if Sanmina sustains leverage approaching the 3x area due to integration issues from the acquisition affecting operational performance, macroeconomic or sector-specific volatility hampers demand, competitive pressures, the loss of a key customers, or the adoption of more-aggressive financial policies. "While unlikely over the next 12 months, we could raise the rating to investment grade if Sanmina was able to sustain leverage below 1.5x through future acquisitions and exhibits operating scale, FOCF generation, and financial policy similar to other investment-grade technology hardware companies. That could occur if Sanmina was able to execute on ZT Systems integration, capture the AMD AI accelerator opportunities, and execute on synergies." SOUTHERN LOUISIANA: Hires Thomas R. Willson as Legal Counsel ------------------------------------------------------------ Southern Louisiana Land Services LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Louisiana to hire Thomas R. Willson to serve as legal counsel in its Chapter 11 case . Mr. Willson will provide these services: (a) give the Debtor and Debtor-in-Possession legal advice with respect to its powers and duties in these proceedings; (b) represent the Debtor in connection with the use of cash collateral and assumption of property management contracts to allow for the collection of rent; (c) prepare and file schedules, statements, and other documents required by the Bankruptcy Code and Rules; and (d) perform all other legal services for the Debtor and Debtor-in-Possession which may be necessary herein. Mr. Willson has previously filed the initial pleadings in this case and in a prior bankruptcy case for the Debtor. He has been selected due to his familiarity with the Debtor’s business and prior representation. According to court filings, Mr. Willson is a "disinterested person" within the meaning of the Bankruptcy Code. Mr. Willson can be reached at: Thomas R. Willson, Esq. Law Office of Thomas R. Willson 1330 Jackson Street, Suite C Alexandria, LA 71301 Telephone: (318) 442-8658 E-mail: rocky@rockywillsonlaw.com About Southern Louisiana Land Services LLC Southern Louisiana Land Services LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. La. Case No. 25-80446) on July 24, 2025. At the time of the filing, Debtor had estimated assets of between $50,001 to $100,000 and liabilities of between $50,001 to $100,000. Judge Stephen D. Wheelis oversees the case. Thomas R. Willson is Debtor's legal counsel. SPECIALTY CARTRIDGE: Gets Extension to Access Cash Collateral ------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Georgia, Atlanta Division issued a third interim order authorizing Specialty Cartridge, Inc. to continue using cash collateral of Pinnacle Bank, the primary secured lender. The order penned by Judge Paul Bonapfel authorized the Debtor's interim use of cash collateral to fund its operations through the date of the final hearing. The final hearing is scheduled for August 28. Specialty Cartridge claims it owes Pinnacle Bank approximately $6.18 million under various loan and lease agreements. As protection for the use of its cash collateral, Pinnacle Bank was granted a replacement lien on assets acquired by the Debtor after the petition date. These assets do not include Chapter 5 proceeds. In addition, Debtor must make $1,500 interest-only weekly payments to Pinnacle Bank until the final hearing. A copy of the court's order and the budget is available at https://shorturl.at/F2pMH from PacerMonitor.com. About Specialty Cartridge Inc. Specialty Cartridge, Inc., doing business as Atlanta Arms, manufactures precision ammunition for handguns and rifles. Based in Covington, Ga., the company supplies law enforcement agencies, military clients, and shooting sports professionals. It operates out of a 20,000-square-foot climate-controlled facility. Specialty Cartridge sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-55193) on May 7, 2025. In its petition, the Debtor reported total assets of $15,065,301 and total liabilities of $8,137,719. G. Frank Nason, IV, Esq., at Lamberth Cifelli Ellis & Nason, PA is the Debtor's legal counsel. Pinnacle Bank, as secured lender, is represented by: Michael B. Pugh, Esq. Thompson, O'Brien, Kappler & Nasuti, P.C. 2 Sun Court, Suite 400 Peachtree Corners, GA 30092 Telephone: (770) 925-0111 Fax: (770) 925-8597 mpugh@tokn.com STICKY HOLSTERS: Amends Plan to Include James Murray Unsec. Claims ------------------------------------------------------------------ Sticky Holsters, Inc., submitted a Second Amended Plan of Reorganization for Small Business dated July 25, 2025. This Plan of Reorganization proposes to pay creditors of the Debtor from (i) existing cash on hand on the Effective Date; (ii) projected disposable income remaining after the payment of operating expenses; and (iii) the confirmation deposit. Specifically, the distributions to unsecured creditors will be fixed payments based upon projected disposable income as set forth in Section 1191(b) of the Bankruptcy Code remaining after payment of operating expenses and senior claims. Class 3 is comprised of the non-priority, unsecured claim of Albert Wagner. Pursuant to the terms of the Settlement Agreement including without limitation paragraph 11, any Class 3 claims shall be released and discharged. The equity interests of Albert Wagner shall be canceled effective as of the date of the Settlement Agreement, pursuant to paragraph 4(a) of the Settlement Agreement. Class 3 is unimpaired by the Plan. Class 4 is comprised of the non-priority, unsecured claim of James Murray. The Class 4 Claims of James Murray shall be paid pursuant to the terms of the Settlement Agreement including without limitation paragraph 2 therein. The Initial Payment of $167,500 has been paid into escrow with GrayRobinson, P.A. pursuant to section 2(a) of the Settlement Agreement. The remaining balance of the Settlement Payment set out in paragraph 2(c) of the Settlement Agreement shall also be paid in monthly installments to the escrow account of GrayRobinson, P.A. not later than December 31, 2025. Class 4 is unimpaired by the Plan. Payments required under the Plan will be funded from (i) existing cash on hand on the Effective Date; (ii) projected disposable income remaining after the payment of operating expenses; and (iii) a confirmation deposit in the amount of $200,000.00 to be provided by Mr. Michael Christoff. A full-text copy of the Second Amended Plan dated July 25, 2025 is available at https://urlcurt.com/u?l=Tbjd2U from PacerMonitor.com at no charge. Attorneys for the Debtor: Stephen R. Leslie, Esq. Stichter, Riedel, Blain & Postler, P.A. 110 East Madison Street, Suite 200 Tampa, FL 33602 Telephone: (813) 229-0144 E-mail: sleslie@srbp.com About Sticky Holsters Sticky Holsters, Inc., manufactures various designs of holsters for concealed weapons, which it sells through a network of distributors and retail sales throughout the United States. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00962) on Aug. 21, 2023, with $500,001 to $1 million in both assets and liabilities. Judge Caryl E. Delano oversees the case. The Debtors tapped Stephen R. Leslie, Esq., at Stichter, Riedel, Blain & Postler, PA, as legal counsel and McHale PA as financial advisor and expert witness. STONECREST CONTRACTORS: Seeks Subchapter V Bankruptcy in Georgia ---------------------------------------------------------------- On July 30, 2025, StoneCrest Contractors LLC filed Chapter 11 protection in the Northern District of Georgia. 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 StoneCrest Contractors LLC StoneCrest Contractors LLC is a Georgia-based construction company specializing in commercial metal fabrication and steel processing. StoneCrest Contractors LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga.Case No. 25-58506) on July 30, 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 Paul W. Bonapfel handles the case. SUNNOVA ENERGY: Deadline to Submit Claim Set for Aug. 6 ------------------------------------------------------- The U.S. Bankruptcy Court for The Southern District of Texas set Aug. 6, 2025, at 5:00 p.m., prevailing Central Time, as the last date and time for person and entities to file proofs of claim against Sunnova Energy International Inc. and its debtor-affiliates. The Court also set Dec. 5, 2025, at 5 :00 p.m., prevailing Central Time, as the deadline for all governmental units to file their claims against the Debtors. Each Proof of Claim must be filed or submitted, including supporting documentation, through any of the following methods: (i) electronic submission through PACER (Public Access to Court Electronic Records at https://ecf.txsb.uscourts.gov/), (ii) electronic submission using the interface available on the Claims and Noticing Agent’s website at https://restructuring.ra.kroll.com/Sunnova, or (iii) if submitted through non-electronic means, by U.S. mail or other hand delivery system, so as to be actually received by the Claims and Noticing Agent on or before the General Claims Bar Date, the Governmental Bar Date, or other applicable Bar Date, as applicable, at the following addresses: a) If by First-Class Mail: Sunnova Energy International Inc. Claims Processing Center c/o Kroll Restructuring Administration Grand Central Station PO Box 4850 New York, NY 10163-4850 b) If by Hand Delivery or Overnight Mail: Sunnova Energy International Inc. Claims Processing Center c/o Kroll Restructuring Administration 850 3rd Avenue Suite 412 Brooklyn, NY 11232 Claimants submitting a Proof of Claim through non-electronic means wishing to receive acknowledgment that their Proof of Claim was received by the Claims and Noticing Agent must submit (i) a copy of the Proof of Claim Form (in addition to the original Proof of Claim Form sent to the Claims and Noticing Agent) and (ii) a self-addressed, stamped envelope. To receive confirmation that the claim has been filed, enclose a stamped self-addressed envelope and a copy of this form. You may view a list of filed claims in this case by visiting the Claims and Noticing Agent's website at https://restructuring.ra.kroll.com/Sunnova. 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 International and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90160) on June 8, 2025. In the petitions signed by Ryan Omohundro, chief restructuring officer, Sunnova Energy disclosed between $10 billion and $50 billion in both assets and liabilities. Judge Alfredo R. Perez oversees the cases. The Debtors tapped Bracewell LLP, Kirkland & Ellis LLP, and Kirkland & Ellis International LLP as counsel; Moelis & Company LLC as investment banker; and Alvarez & Marsal North America, LLC as financial advisor. Kroll Restructuring Administration LLC is the Debtors' claims, noticing and solicitation agent. Paul, Weiss, Rifkind, Wharton & Garrison LLP is counsel to the Ad Hoc Group of DIP Lenders. White & Case LLP is counsel to the Ad Hoc Group of Warehouse Lenders. Milbank LLP is counsel to the KKR Term Loan Lenders. Davis Polk & Wardwell LLP is counsel to the Ad Hoc Group of ABS Lenders. SUNNOVA ENERGY: Gets Court OK to Sell Assets to Lenders Group ------------------------------------------------------------- Angelica Serrano-Roman of Bloomberg Law reports that the judge presiding over Sunnova Energy's bankruptcy has agreed to approve the sale of the solar company's assets to a group of its lenders. At a hearing Thursday, July 31, 2025, U.S. Bankruptcy Judge Alfredo R. Pérez of the Southern District of Texas said the sale was necessary to address Sunnova's severe liquidity problems, noting that any delay would worsen the company's financial position. "If the liquidity issues were not addressed quickly, the situation would be getting worse, not better," Pérez said, adding that no party has challenged the company's business judgment or the sale process. 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. TGI FRIDAY'S: Plan Exclusivity Period Extended to August 29 ----------------------------------------------------------- Judge Stacey G Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas extended TGI Friday's Inc. and affiliates' exclusive periods to file a plan of reorganization and obtain acceptance thereof to August 29 and October 28, 2025, respectively. As shared by Troubled Company Reporter, the Debtors explain that ample cause exists to grant the relief requested by this Motion in these Chapter 11 Cases. The relevant factors strongly weigh in favor of an extension of the Exclusivity Periods include: * The Debtors' chapter 11 cases are large and complex. As reflected by the Court's Order Granting Chapter 11 Complex Case Treatment, the Debtors' significant number of creditors and assets make these cases large and complex. * The Debtors have made significant progress in negotiating in good faith with all creditors and working towards a viable chapter 11 plan. The Debtors' time and resources have been productively spent on (i) ensuring a smooth chapter 11 process with minimal disruption to the Debtors' operations, preserving the Debtors' assets to the benefit of all parties in interest; (ii) administering value-maximining sales processes; (iii) engaging the various stakeholders to ensure the closing of the various asset sales; (iv) filing procedures for the sale of the Debtors' remaining liquor licenses; (v) transitioning the Debtors' operations to the new owners pursuant to the asset sales; and (vi) negotiating support with the Debtors' other constituents, including the Committee and contract counter parties. * The Debtors are not seeking to extend exclusivity to pressure creditors, and an extension of the exclusivity periods will not prejudice creditors. The Debtors have 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 Debtors 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 their estates and the greatest recovery to their creditors. Counsel to the Debtors: Chris L. Dickerson, Esq. Rahmon J. Brown, Esq. ROPES & GRAY LLP 191 North Wacker Drive, 32nd Floor Chicago, IL 60606 Tel: (312) 845-1200 Fax: (312) 845-5500 E-mail: chris.dickerson@ropesgray.com rahmon.brown@ropesgray.com Holland N. O'Neil, Esq. Mark C. Moore, Esq. Zachary C. Zahn, Esq. FOLEY & LARDNER LLP 2021 McKinney Avenue, Suite 1600 Dallas, TX 75201 Tel: (214) 999-3000 Fax: (214) 999-4667 E-mail: honeil@foley.com mmoore@foley.com zzahn@foley.com About TGI Friday's Inc. TGI Friday's Inc., doing business as Wow Bao, operates a chain of restaurants. The Company provides appetizers, sizzlings, seafood, salads, sandwiches, entres, desserts, and non-alcoholic and alcoholic beverages. Wow Bao serves customers in the United States. TGI Friday's Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-80069) on Nov. 2, 2024, listing $100 million to $500 million in both assets and liabilities. Judge Stacey G Jernigan presides over the case. Holland N. O'Neil, Esq., at Foley & Lardner LLP, is the Debtor's counsel. THUNDER RIDE: Taps Elementary Business as Restructuring Officer --------------------------------------------------------------- Thunder Ride Inc. seeks approval from the U.S. Bankruptcy Court for the District of Colorado to hire Elementary Business, Inc. to serve as Chief Restructuring Officer in its Chapter 11 case. The firm will provide these services: (a) review and analyze Debtor's business, operations, assets, financial conditions, business plan, strategy, and operating forecasts; (b) assist with the management of the Debtor's business, including overseeing general accounting, financial reporting, and cash management; (c) provide guidance and leadership in navigating the complex bankruptcy process; (d) work with bankruptcy counsel to assist the Debtor in its dealings with the Debtor's primary lenders and other creditors; (e) draft cash collateral budgets and reports, monthly operating reports, and financial statements and projections for the restructuring plan; (f) formulate with Debtor's bankruptcy counsel a strategic plan for reorganization of the Debtor's business in order to maximize the value of the business and assets consistent with the duties of a debtor-in-possession under the United States Bankruptcy Code; and (g) perform such other tasks as requested by the Debtor that are consistent with the foregoing duties. Mr. Neil Goldstein, principal of Elementary Business, Inc., will lead the engagement. Mr. Goldstein shall receive an hourly rate of $350. Elementary Business, Inc. is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached at: Neil Goldstein ELEMENTARY BUSINESS, INC. Telephone: (940) 808-9451 E-mail: neil@elementarybusiness.com About Thunder Ride Inc. Thunder Ride Inc., doing business as Tri-City Cycle, operates a powersports dealership offering motorcycles, ATVs, UTVs, boats, parts, and repair services. The Company serves customers in Loveland, Colorado, and surrounding areas. It also provides products from major brands such as Yamaha, Honda, Kawasaki, and KTM. Thunder Ride Inc. in Loveland, CO, sought relief under Chapter 11 of the Bankruptcy Code filed its voluntary petition for Chapter 11 protection (Bankr. D. Colo. Case No. 25-14589) on July 23, 2025, listing $50,000 to $100,000 in assets and $10 million to $50 million in liabilities. Enoch Amoah as president, signed the petition. Judge Joseph G. Rosania Jr. oversees the case. WADSWORTH GARBER WARNER CONRARDY, P.C. serve as the Debtor's legal counsel. TOMATLAN INC: Files Emergency Bid to Use Cash Collateral -------------------------------------------------------- Tomatlan, Inc. asked the U.S. Bankruptcy Court for the Western District of New York for authority to use cash collateral and provide adequate protection. The Debtor needs to use cash collateral to meet immediate operational expenses such as payroll, utilities, rent, and the preservation of its assets particularly those in which secured creditors assert liens. According to its bankruptcy schedules, the Debtor holds approximately $55,000 in assets, which are encumbered by various secured claims. KeyBank, N.A. holds a first priority blanket lien based on a line of credit initiated in 2018, with approximately $75,000 currently outstanding. A second lien is held by the U.S. Small Business Administration for around $470,000, related to a COVID-19 disaster recovery loan. In addition to these, the Debtor has financing arrangements with several merchant cash advance lenders including Ready Capital, Can Capital, Rapid Finance, Network Rewards, LG Funding LLC, Highland Hill Capital LLC, and MNY Capital LLC whose collective claims total over $350,000. These lenders have perfected Uniform Commercial Code security interests on various dates between 2018 and 2024, with lien expirations ranging into 2029. To manage these obligations and continue operations, the Debtor is seeking entry of several orders: an emergency order allowing immediate use of cash collateral, an interim order authorizing use pending further hearings, and a final order permitting ongoing use of cash collateral in accordance with a proposed budget. "Rollover" replacement liens will be granted to secured creditors as a form of adequate protection, limited to the amount of cash collateral actually used. A hearing on the matter is set for August 7. KeyBank, as secured creditor, is represented by: Adam M. Brasky, Esq. Rupp Pfalzgraf, LLC 1600 Liberty Building Buffalo, NY 14202-3694 Telephone: (716) 854-3400 brasky@rupppfalzgraf.com About Tomatlan Inc. Tomatlan, Inc. operates Rio Tomatlan, a Mexican restaurant in Canandaigua, New York. The Company specializes in Pacific Coast Mexican cuisine made from scratch using locally sourced, seasonal ingredients. It also offers catering services and private event hosting. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. N.Y. Case No. 25-20547) on July 22, 2025. In the petition signed by Juan R. Guevara, as president and sole shareholder, the Debtor disclosed $54,732 in total assets and $1,101,411 in total liabilities. Robert B. Gleichenhaus, Esq., at Gleichenhaus, Marchese & Weishaar, P.C., represents the Debtor as legal counsel. VALKEN INC: Gets Interim OK to Use Cash Collateral Until Sept. 14 ----------------------------------------------------------------- Valken Incorporated received second interim approval from the U.S. Bankruptcy Court for the District of New Jersey to use cash collateral. The court's order authorized the Debtor's interim use of cash collateral from July 21 to September 14, in accordance with its budget, with up to a 10% variance per line item. The Debtor requires the use of cash collateral to maintain operations, meet payroll, cover equipment leases, and pay other essential expenses. The Debtor is heavily leveraged, with multiple secured creditors, including Wilmington Savings Fund Society, FSB (owed $4.8 million and believed to be nearly fully secured) and other lenders with disputed or junior liens. The Debtor also has about $5.7 million in unsecured trade debt and several equipment leases. As protection for the Debtor's use of their cash collateral, the lenders will be granted replacement liens on property acquired by the Debtor after the petition date and the proceeds thereof, to the same extent and with the same validity and priority as their pre-bankruptcy liens. The lenders will also receive a super-priority administrative expense claim in case the replacement liens are not sufficient to protect their interests. As further protection, Wilmington and another lender, Summit Bridge National Investment VIII, LLC, will receive monthly payments of $20,000 and $5,000, respectively. The Debtor said it has $522,585 in accounts receivable and over $7 million in equipment and inventory, which will support ongoing operations and seasonal inventory buildup for its peak fall season. The next hearing is scheduled for September 4. Objections are due by August 28. Wilmington is represented by: Michael E. Brown, Esq. Dembo, Brown & Burns, LLP 1300 Route 73, Suite 205 Mount Laurel, NJ 08054 Phone: (856) 354-8866 Fax: (856) 354-0971 Summit is represented by: Mark Pfeiffer, Esq. Buchanan Ingersoll & Rooney PC 700 Alexander Park, Suite 300 Princeton, NJ 08540-6347 Telephone: (215) 665-3921 Facsimile: (215) 665-8760 mark.pfeiffer@bipc.com About Valken Incorporated Valken Incorporated sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. N.J. Case No. 25-16742) on June 25, 2025, listing up to $50 million in both assets and liabilities. Valken President Eugenio Postorivo signed the petition. Judge Jerrold N. Poslusny Jr. Esq. oversees the case. Albert A. Ciardi, III, Esq., at Ciardi Ciardi and Astin, represents the Debtor as legal counsel. VINTAGE RESTORATION: Hires Marilyn D. Garner as Bankruptcy Counsel ------------------------------------------------------------------ Vintage Restoration Services, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire the Law Office of Marilyn D. Garner as its counsel. The firm will render these services: (a) advise the Debtor of its powers and duties in the continued operation of its business and management of its property; (b) take necessary action to investigate and recover fraudulent or preferential transfers of the Debtor's property before commencement of its Chapter 11 proceedings and, where appropriate, institute appropriate proceedings for sale of property free and clear of liens and assist in obtaining post-petition financing; (c) defend the Debtor in contested matters or adversary proceedings as they are brought before the court under Chapter 11 administration; (d) prepare legal papers; and (e) advise the Debtor concerning its conduct and responsibilities and perform all other necessary legal services. The firm will be paid at these rates: Attorney $450 per hour Associate Attorney $250 per hour Legal Assistant $140 per hour In addition, the firm will seek reimbursement for its out-of-pocket expenses. Marilyn Garner, Esq., an attorney at the Law Office of Marilyn D. Garner, disclosed in a court filing that her firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firms can be reached through: Marilyn D. Garner, Esq. Law Office of Marilyn D. Garner 2001 E. Lamar Blvd., Suite 200 Arlington, TX 76006 Tel: (817) 505-1499 Fax: (817) 549-7200 About Vintage Restoration Services, LLC Vintage Restoration Services, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-42010) on June 2, 2025, listing $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Judge Edward L Morris presides over the case. Marilyn D. Garner, Esq. at Law Offices Of Marilyn D. Garner represents the Debtor as counsel. VIRTU FINANCIAL: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Virtu Financial, LLC's (Virtu) Long-Term Issuer Default Ratings (IDRs) at 'BB-'. Fitch has also affirmed the senior secured debt ratings of VFH Parent LLC and Valor Co-Issuer, Inc., wholly owned debt issuance subsidiaries of Virtu, at 'BB-'. The Rating Outlook is Stable. Key Rating Drivers Established Electronic Trading Franchise: Virtu's ratings reflect its established market position as a technology-driven market maker across various trading venues, geographies and products. Fitch also recognizes its solid scale, sound operating performance, good execution against strategic objectives, and the expectation that it will maintain reasonable liquidity in a lower volatility environment. Virtu's market-neutral trading strategies in highly liquid products and short holding periods limit market and liquidity risks. Operational Risks, Leverage Constrain Ratings: The ratings are constrained by the firm's primarily secured funding profile and by its weaker cash flow leverage and interest coverage compared to peers. Rating constraints applicable to market makers more broadly include elevated operational risks inherent in technology-driven trading and reliance on volatile transactional revenue. Fitch also notes the potential for increased regulatory scrutiny and a higher compliance burden in select jurisdictions. Virtu is also awaiting the finalization of regulatory findings by the SEC relating to 2023 charges on alleged false and misleading statements on the prevention of misuse of sensitive customer information. To the extent the firm pays a material fine related to these charges and/or experiences material reputational damage, the ratings could be negatively affected. Strong Operating Margins: Virtu's earnings profile remains supportive of its rating. The firm's adjusted EBITDA margin (calculated as adjusted EBITDA to gross revenues) was 33.7% for the trailing 12 months (TTM) ended 1Q25 and averaged 34.4% between 2021 and 2024, which is within Fitch's 'a' category quantitative benchmark range of 30% to 50% for securities firms with low balance sheet usage. Fitch expects Virtu's adjusted EBITDA margin to remain above 20% even if daily average net trading income declines as the firm leverages its scalable, technology-driven operations and variable compensation structure. Cash Flow Leverage Falls on Stronger EBITDA: Virtu's cash flow leverage was 1.7x for the TTM ended 1Q25, down from 3.1x one year ago. This improvement was driven by robust EBITDA generation, supported by high trading activity across most markets and continued strong execution of organic growth initiatives. While Fitch notes the recent improvement in cash flow leverage, sustaining lower leverage through trading cycles would be viewed positively. This is particularly relevant in the context of Virtu's modestly opportunistic approach to capital management in recent years, as share buybacks continue to be prioritized over debt repayment. The combined payout of dividends and share repurchases amounted to 82% of operating cash flows in 2024. Virtu's rating would be sensitive to the firm increasing its absolute debt level unless it can demonstrate a sustained, higher level of adjusted EBITDA. Secured Funding Profile: Virtu's funding profile is fully secured and comprises secured broker-dealer credit facilities, short-term bank loans and prime brokerage credit facilities to finance its mostly overnight inventory, clearing margin and settlement. Virtu had an aggregate of $110 million outstanding on the broker-dealer facilities and prime brokerage facilities as of 1Q25. In Fitch's view, the lock-up periods on margin agreements within its prime brokerage facilities are appropriately structured to match the typically short holding periods of trades. Corporate debt as of March 31, 2025 was comprised of a $1.245 billion secured Term Loan B facility and $500 million in secured notes, both of which mature in June 2031. Adequate Balance Sheet Liquidity: Fitch considers Virtu's liquidity as adequate, with liquidity resources as at 1Q25 comprising $724 million in unrestricted cash and equivalents as well as a sizable $6.3 billion portfolio of liquid trading assets, which could be liquidated and converted into cash over the short term, if needed. Virtu also has a $300 million committed revolving credit facility, which was undrawn as of March 31, 2025. Healthy Interest Coverage: Interest coverage increased to 9.9x for the TTM ended 1Q25, up from 5.7x one year ago and near the 10.2x average for 2021 to 2024. This corresponds with Fitch's 'a' category benchmark range of 10x to 15x for securities firms with low balance sheet usage. Fitch expects interest coverage to be sustained above 6x through trading environments, which is supportive of the current rating. Stable Outlook: The Stable Outlook reflects Fitch's expectation that Virtu will maintain a low market risk profile, solid profitability margins and adequate liquidity. Furthermore, the Stable Outlook assumes that Virtu will refrain from upsizing its absolute debt level over the Outlook horizon and that cash flow leverage will remain below 3x on a gross debt to adjusted EBITDA basis. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Inability to maintain cash flow leverage below 3x ; - Adverse legal or regulatory actions against Virtu, which result in a material fine, reputational damage or an alteration of the business profile; - An idiosyncratic liquidity event, particularly if it is the result of a material operational or risk management failure; - A material deterioration in interest coverage, approaching 3x; - An inability to maintain Virtu's market position in the face of evolving market structures and technologies; - A material shift into trading less-liquid products or a material increase in position holding periods without a commensurate increase in the tangible equity base. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Consistent operating performance, including maintenance of EBITDA margins above 30% during lower volatility environments; - Minimal operational losses over a longer time period; - Maintaining cash flow leverage consistently below 2.0x on a gross debt/adjusted EBITDA basis; - Maintaining interest coverage above 10x; - Increased funding flexibility, including the addition of a laddered, unsecured funding component and demonstrated access to third-party funding through market cycles. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The senior secured debt rating is equalized with Virtu's IDR and reflects the fully secured funding profile and average recovery prospects in a stressed scenario. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The senior secured debt ratings are primarily sensitive to changes in Virtu's IDR and secondarily to material changes in Virtu's capital structure and/or changes in Fitch's assessment of the recovery prospects for the debt instruments. SUBSIDIARY AND AFFILIATE RATINGS: RATING SENSITIVITIES VFH Parent LLC's Long-Term IDR is equalized with Virtu, reflecting the full ownership and unconditional guarantee on the debt issued by that entity. The ratings would be expected to move in tandem. ADJUSTMENTS The Standalone Credit Profile (SCP) has been assigned in line with the implied SCP. The Business Profile score has been assigned below the implied score due to the following adjustment reason: Business model (negative). The Earnings & Profitability score has been assigned below the implied score due to the following adjustment reason: Revenue Diversification (negative). The Capitalization and Leverage score has been assigned below the implied score due to the following adjustment reason: Risk profile and business model (negative). The Funding, Liquidity & Coverage score has been assigned below the implied score due to the following adjustment reason: Business model/funding market convention (negative). 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 ----------- ------ ----- VFH Parent LLC LT IDR BB- Affirmed BB- senior secured LT BB- Affirmed BB- Valor Co-Issuer, Inc. senior secured LT BB- Affirmed BB- Virtu Financial LLC LT IDR BB- Affirmed BB- VSBROOKS INC: Seeks Subchapter V Bankruptcy in Florida ------------------------------------------------------ rkc.llc reports that Miami-based VSBROOKS Inc., operating as THE 3RD EYE Creative Agency, has filed for Chapter 11 bankruptcy, seeking to restructure its debt while continuing operations. The filing lists assets of $500,001 to $1 million and liabilities of $1 million to $10 million, with 100 to 199 creditors. Major unsecured claims are held by media partners, including Illumin ($235,660), Channel Factory ($210,958), Clear Channel Outdoor – Georgia ($189,583), and Outfront Media ($185,362), reflecting the company’s heavy focus on media buying and placement services. The company said it will use the streamlined Subchapter V process to reorganize its obligations and stabilize operations. About VSBROOKS Inc. VSBROOKS Inc., doing business as The 3rd Eye Creative Agency, is a certified women-owned independent full-service marketing agency in Miami specializing in health and wellness brands. With more than 25 years of experience, it focuses on generational healthcare advertising, women's healthcare initiatives, multicultural audience engagement and B2B growth within regulatory compliance. VSBROOKS Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-18690) on July 29, 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 Laurel M. Isicoff handles the case. The Debtor is represented by Robert P Charbonneau, Esq. at AGENTIS PLLC. WASH BIDCO: Fitch Assigns 'BB-' LongTerm IDR, Outlook Stable ------------------------------------------------------------ Fitch Ratings has assigned Wash Midco Inc. (WASH) and Wash Bidco Inc. a first-time 'BB-' Long-Term Issuer Default Rating (IDR) and a 'BB+' rating with a Recovery Rating of 'RR1' to the senior secured term loan B issued by Wash Bidco Inc. The Rating Outlook is Stable. The rating and Stable Outlook reflect Fitch's expectation that WASH's leverage will remain manageable, supported by EBITDA growth, with no meaningful debt reduction. Fitch expects the company's scale to remain limited due to its continued concentration in the Multi-Family Residential end-market. Strong free cash flow (FCF) margins for the rating support the company's financial flexibility. Key Rating Drivers Manageable Leverage for the Rating: Leverage is expected to decline to 3x by 2026, driven by EBITDA growth from continued digitalization of laundry rooms and ongoing strategic initiatives. Pro forma for the buyout transaction, EBITDA leverage is approximately 3.5x at close, reflecting the new $625 million senior secured term loan B. Debt-funded tuck-in acquisitions are assumed, with leverage expected to remain stable. Small Scale: WASH's EBITDA and FCF generation are small relative to services peers, which constrains its position within the rating category. Fitch expects EBITDA to increase in the mid- to high-single digit range annually over the ratings horizon, with growth driven by pricing actions, continued digitization of its footprint, and operating leverage. High Revenue Visibility: WASH benefits from high revenue visibility, driven by exclusive long-term contracts with landlords, consistent price increases, low insourcing risk, and inelastic demand. These contracts often include make-whole penalties, supporting its 98% client retention rate. Revenue grew 6%-8% annually in the four years prior to the buyout transaction, and Fitch expects growth to moderate to the low- to mid-single digits due to slower multifamily housing starts. Moderate Financial Flexibility: Adequate interest coverage, a single Term Loan B maturity in 2032, and access to a $150 million senior secured revolving credit facility, with approximately $40 million drawn post-acquisition, provide moderate financial flexibility for the rating. WASH generates strong FCF margins, supported by increasing scale and ongoing investment in its durable fleet of machines, which have 10-year life cycles that can be extended through in-house remanufacturing. The company's capital intensity remains in the low double digits. End-Market Concentration: WASH's concentration in a single end-market, due to its single-service offering, limits opportunities for significant scale and diversification, which weighs on the rating. While Fitch views WASH's end-market as fairly resilient across the economic cycle, the lack of diversification heightens concentration risk. Peer Analysis Fitch applies the Services navigator to assess WASH relative to peers across a range of services industries. WASH is the largest pure-play provider of outsourced laundry machines and services for common area laundry rooms, serving primarily multifamily housing and academic end markets. Its Long-Term IDR emphasizes the company's relatively small scale (measured by EBITDA and FCF) and concentration within a single line of business. Comparatively, Fitch-rated peers in the services industry include a range of companies like consulting or advisory firms, brokerages, professional services, local services for residential or commercial customers, among others. WASH's scale is comparable to certain private issuers Fitch reviews in the services industry, with comparable EBITDA or FCF generation, end market concentration, and leverage profile. Fitch believes the 'BB-' IDR encapsulates risk inherent in the company's size and industry concentration, as well as a resilient business model and relatively manageable leverage. Key Assumptions - Revenue growth of 3% is projected for 2025, reflecting the impact of lower housing starts. Growth is expected to improve to the mid-single digits from 2026 onward, supported by tuck-in acquisitions; - Gross profit margin is expected to improve by 120 bps by 2028, driven by a favorable sales mix, operational efficiencies, and digitalization; - Operating expenses are projected to decline to 22% by 2027 due to corporate cost-saving initiatives. - Working capital is expected to remain flat, with days outstanding for accounts receivable, inventory, and accounts payable consistent with 2024 levels; - Capital intensity is projected to increase to 12.5% to support fleet expansion; - Transaction fees of approximately $40 million are projected for 2025, related to the acquisition; - The company is expected to use its growing cash balance to fund modest tuck-in acquisitions and pay a partially debt-funded dividend in 2028; - The SOFR rate is projected near 4.3% in 2025, and 3.8% for 2026-2028. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage sustained at or above 4.5x; - Increased churn leading to weakened revenue visibility; - Reduced financial flexibility, as reflected by negative free cash flow. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improved scale and service line diversification; - Demonstrated commitment and track record of financial policies leading to EBITDA leverage sustained at or below 3.5x. Liquidity and Debt Structure The company's liquidity is moderate for the rating, supported by balance sheet cash, strong free cash flow, and access to a $150 million senior secured revolving credit facility, of which approximately $40 million has been drawn post-acquisition. The company is expected to meet its leverage covenant throughout the forecast period, and its Term Loan B does not mature until 2032. Issuer Profile Founded in 1947, Wash Midco Inc. operates multiple vend-method (coin, card and mobile app) laundry machines in common-area laundry rooms at apartment complexes and universities. Date of Relevant Committee 22-Jul-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 ----------- ------ -------- Wash BidCo Inc. LT IDR BB- New Rating senior secured LT BB+ New Rating RR1 Wash MidCo Inc. LT IDR BB- New Rating WASHINGTON SQUARED: Secured Party Sets Sept. 16, 2025 Auction ------------------------------------------------------------- Jones Lang LaSalle, on behalf of CMMT-JSELLER 2 LLC ("secured party"), will offer for sale at public auction 100% of the limited liability company interest in Washington Squared Owner LLC, which is the sole owner of the real property located at 601 Washington Avenue, Miami, Florida, on Sept. 16, 2025, at 11:00 a.m. (New York Time) in person at the offices of Dechert LLP at 1095 Avenue of the Americas, New York, New York 10036, and remotely via a telephonic conference and other remote electronic means. The interests are owned by 601 Washington Mezz LLC ("pledgor"). Further information for obtaining information and bidding on the collateral and the terms of sale can be found at http://www.601washingtonavemiamibeachuccsale.com/or by contacting Brett Rosenberg at (212) 812-5926 or Brett.Rosenberg@jlll.com WFO LLC: Trustee Taps Trinity River Advisors as Accountant ---------------------------------------------------------- Mark Andrews, the Trustee for WFO, LLC, seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to employ Trinity River Advisors, LLC as accountant. The firm's services include: (i) preparing Monthly Operating Reports; (ii) assisting with logistics, such as obtaining security in connection with the sale in March of the concrete batch plant; (iii) analyzing and evaluating the estate's remaining assets and the liquidation of those assets. The firm will be paid at these rates: Robert Vincill $500 per hour Martin Zacharias $500 per hour As disclosed in the court filings, Trinity River Advisors is a "disinterested person" within the meaning of Sec. 1014(d) as required by Sec. 327(a) and does not represent or hold an interest adverse to the estate. The firm can be reached through: Robert Vincill Martin Zacharias Trinity River Advisors, LLC 8080 North Central Expressway Dallas TX 75206 About WFO, LLC WFO, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-50824) on May 6, 2024. In the petition signed by Frank Shumate, president, the Debtor disclosed up to $50,000 in assets and up to $10 million in liabilities. James S. Wilkins, PC serves as the Debtor's bankruptcy counsel. WHITESTONE CROSSING: Hires Rochelle McCullough LLP as Legal Counsel ------------------------------------------------------------------- Whitestone Crossing Austin LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire Rochelle McCullough LLP to serve as legal counsel in its Chapter 11 case. Rochelle McCullough will provide these services: (a) advise the Debtor with respect to its rights, powers, and duties as Debtor-in-Possession; (b) assist in the negotiation and documentation of agreements, debt restructuring, and related transactions; (c) advise the Debtor regarding use of cash collateral and negotiations with its primary secured creditor; (d) assist in collecting and recovering property for the benefit of the estate; (e) review and monitor the Debtor's ongoing business; (f) prepare and review all necessary motions, pleadings, draft orders, and reports in the Chapter 11 case; (g) prepare responses to motions and pleadings filed in the case; (h) advise and assist with the formulation, negotiation, and filing of a plan of reorganization; and (i) perform all other legal services necessary in the administration of the Chapter 11 case. ROMC will be compensated based on these hourly rates: Partners $550 to $700 Associates $325 to $450 Paraprofessionals $225 The firm received a $25,000 retainer, which was paid by the Debtor's largest equity holder. According to court filings, Rochelle McCullough LLP is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: J. Mark Chevallier Michael T. Pipkin ROCHELLE MCCULLOUGH LLP 901 Main Street, Suite 3200 Dallas, TX 75202 Telephone: (214) 953-0182 Facsimile: (888) 467-5979 Email: mchevallier@romclaw.com mpipkin@romclaw.com 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. WOLFE-BLURTON FUNERAL: Seeks Subchapter V Bankruptcy in Illinois ---------------------------------------------------------------- On July 29, 2025, Wolfe-Blurton Funeral Home Inc. filed Chapter 11 protection in the Central District of Illinois. 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 Wolfe-Blurton Funeral Home Inc. Wolfe-Blurton Funeral Home Inc., operating as Blurton Funeral Homes, is a Potomac, Illinois-based funeral home business provides funeral services, burial arrangements, and cremation services to families in Vermilion County and surrounding areas. Wolfe-Blurton Funeral Home Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Ill. Case No. 25-90427) on July 29, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $500,000 and $1 million. The Debtor is represented Jeana K. Reinbold, Esq. at Sgro, Hanrahan, Durr, Rabin & Reinbold, LLP. YELLOW CORP: Asks Court OK for New Ch. 11 Plan Disclosure Statement ------------------------------------------------------------------- Alex Wittenberg of Law360 Bankruptcy Authority reports that bankrupt trucking firm Yellow Corp. is seeking approval from a Delaware bankruptcy judge for the disclosure statement tied to its proposed Chapter 11 plan, which would transfer its assets to a liquidating trust for creditor distributions and move the nearly two-year bankruptcy case toward resolution. About Yellow Corporation Yellow Corporation -- www.myyellow.com -- operated logistics and less-than-truckload (LTL) networks in North America, providing customers with regional, national, and international shipping services throughout. Yellow's principal office is in Nashville, Tenn., and is the holding company for a portfolio of LTL brands including Holland, New Penn, Reddaway, and YRC Freight, as well as the logistics company Yellow Logistics. Yellow Corporation and 23 affiliates concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-11069) on August 6, 2023, before the Hon. Craig T. Goldblatt. As of March 31, 2023, Yellow Corp had $2,152,200,000 in total assets against $2,588,800,000 in total liabilities. The petitions were signed by Matthew A. Doheny as chief restructuring officer. Kirkland & Ellis LLP is serving as the Company's restructuring counsel, Pachulski Stang Ziehl& Jones LLP is serving as the Company's Delaware local counsel, Kasowitz, Benson and Torres LLP is serving as special litigation counsel, Goodmans LLP is serving as the Company's special Canadian counsel, Ducera Partners LLC is serving as the Company's investment banker, and Alvarez and Marsal is serving as the Company's financial advisor. Epiq Bankruptcy Solutions serves as claims and noticing agent. Milbank LLP, serves as counsel to certain investment funds and accounts managed by affiliates of Apollo Capital Management, L.P. White & Case LLP, serves as counsel to Beal Bank USA. Arnold & Porter Kaye ScholerLLP, serves as counsel to the United States Department of the Treasury. Alter Domus Products Corp., the Administrative Agent to the DIP Lenders, is represented by Holland & Knight LLP. Akin Gump Strauss Hauer & Feld LLP and Benesch, Friedlander, Coplan & Aronoff LLP are serving as counsel to the Official Committee of Unsecured Creditors. Potter Anderson & Corroon LLP and Quinn Emanuel Urquhart & Sullivan, LLP, are representing MFN Partners, LP and Mobile Street Holdings, LLC. ZAHAV VENTURES: Creditor Seeks to Prohibit Cash Collateral Access ----------------------------------------------------------------- NewRez LLC asked the U.S. Bankruptcy Court for the Eastern District of New York, White Plains Division, to prohibit Zahav Ventures LLC from using cash collateral. NewRez doing business as Shellpoint Mortgage Servicing asserted that the Debtor has been using rental income (cash collateral) from six mortgaged Baltimore properties without court authorization or lender consent, in violation of 11 U.S.C. section 363. The Debtor has executed multiple promissory notes secured by deeds of trust containing Assignment of Rents provisions. These provisions give the creditors not only a security interest in the properties themselves but also in any rental income derived from them. Shellpoint services the loans for these six properties, with monthly post-petition payments ranging between approximately $1,147 and $1,425 per property. Shellpoint is currently preparing Proofs of Claim for these loans, which include escrow components for property taxes and insurance. The Debtor filed for Chapter 11 bankruptcy on March 5 but has not yet filed a reorganization plan, a motion to use cash collateral, or operating reports. Shellpoint asked the court to prohibit Zahav Ventures from using any rental income unless it begins making adequate protection payments in an amount equal to the contractual post-petition obligations, less approved and necessary property expenses. Additionally, Shellpoint requested that the court compel the Debtor to provide a full accounting of all rental income collected since the bankruptcy filing and submit a detailed property-by-property budget for both the past and next six months. It also sought copies of leases, rental agreements, and a rent roll to verify income sources. Furthermore, Shellpoint asked the court to grant replacement liens on all post-petition rents, cash, accounts receivable, inventory, and proceeds to the same extent and priority as the pre-petition liens. Finally, it requested that the court order the Debtor to segregate all rental income in a separate debtor-in-possession account and grant any other relief the court deems appropriate. A hearing on the matter is set for September 4. About Zahav Ventures LLC Zahav Ventures LLC is involved in real estate-related activities. Its principal asset is located in Baltimore, Maryland. Zahav Ventures LLCsought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-22536) on June 17, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million. Judge Sean H. Lane oversees the case. The Debtors are represented by Kevin Nash, Esq., at Goldberg Weprin Finkel Goldstein, LLP. NewRez LLC dba Shellpoint Mortgage Servicing, authorized servicer for various secured creditors, is represented by: Jenelle Arnold, Esq. Aldridge Pite, LLP 3333 Camino Del Rio South Suite 225 San Diego, CA 92108 Telephone: (858) 750-7600 Facsimile: (619) 590-1385 Email: JArnold@aldridgepite.com [] BOOK REVIEW: Bailout: An Insider's Account of Bank Failures -------------------------------------------------------------- Bailout: An Insider's Account of Bank Failures and Rescues Author: Irvine H. Sprague Publisher: Beard Books Soft cover: 321 pages List Price: $34.95 Order your personal copy at https://ecommerce.beardbooks.com/beardbooks/bailout.html No one is more qualified to write a work on this subject of bank bailouts. Holding the positions of chairman or director of the Federal Deposit Insurance Corporation (FDIC) during the 1970s and 1980s, one of Sprague's most important tasks was to close down banks that were failing before they could cause wider damage. The decades of the 1970s and '80s were times of high interest rates for both depositors and borrowers. Rates for depositors at many banks approached 10%, with rates for loans higher than that. The fierce competition in the banking industry to offer the highest rates to attract and keep depositors caused severe financial stress to an unusually high number of banks. Having to pay out so much in interest to stay competitive without taking in much greater deposits was straining the cash and other assets of many banks. The unprecedented high interest rates also had the effect of reducing the number of loans banks were giving out. There were not so many borrowers willing to take on loans with the high interest rates. With the disruptions in their interrelated deposits and loans, many banks began to engage in unprecedented and unfamiliar financial activities, including investing in risky business ventures. As well as having harmful effects on local economies, the widely reported troubles of a number of well-known and well-respected banks were having a harmful effect on the public's confidence in the entire banking industry. Sprague along with other government and private-sector leaders in the banking and financial field realized the problems with banks of all sizes in all parts of the country had to be dealt with decisively. Action had to be taken to restore public confidence, as well as prevent widespread and long-lasting damage to the U.S. economy. Sprague's task was one of damage control largely on the blind. The banking industry, the financial community, and the government and the public had never faced such a large number of bank failures at one time. The Home Loan Bank Board for the savings-and-loans associations had allowed these institutions to treat goodwill as an asset in an effort to shore up their deteriorating financial situations with disastrous results for their depositors and U.S. taxpayers. Such a desperate stratagem only made the problems with the savings-and-loans worse. The banks covered by the FDIC headed by Sprague were different from these institutions. But the problems with their basic business of deposits and loans were more or less the same. And the cause of the problem was precisely the same: the high interest rates. Faced with so many bank failures, Sprague and the government officials, Congresspersons, and leaders he worked with realized they could not deal effectively with every bank failure. So one of their first tasks was to devise criteria for which failures they would deal with. Their criteria formed what came to be known as the "essentiality doctrine." This was crucial for guidance in dealing with the banking crisis, as well as for explanation and justification to the public for the government agency's decisions and actions. Sprague's tale is mainly a "chronicle [of] the evolution of the essentiality doctrine, which derives from the statutory authority for bank bailouts." The doctrine was first used in the bailout of the small Unity Bank of Boston and refined in the bailouts of the Bank of the Commonwealth and First Pennsylvania Bank. It then came into use for the multi-billion dollar bailout of the Continental Illinois National Bank and Trust Company in the early 1980s. Continental's failure came about almost overnight by the "lightening-fast removal of large deposits from around the world by electronic transfer." This was another of the unprecedented causes for the bank failures Sprague had to deal with in the new, high-interest, world of banking in the '70s and '80s. The main part of the book is how the essentiality doctrine was applied in the case of each of these four banks, with the especially high-stakes bailout of Continental having a section of its own. Although stability and reliability have returned to the banking industry with the return of modest and low interest rates in following decades, Sprague's recounting of the momentous activities for damage control of bank failures for whatever reasons still holds lessons for today. For bank failures inevitably occur in any economic conditions; and in dealing with these promptly and effectively in the ways pioneered by Sprague, the unfavorable economic effects will be contained, and public confidence in the banking system maintained. As chairman or director of the FDIC for more than 11 years, Irvine H. Sprague (1921-2004) handled 374 bank failures. He was a special assistant to President Johnson, and has worked on economic issues with other high government officials. [] Jackson Walker Strikes Deal w/ Sungard on Judge Romance Claims ----------------------------------------------------------------- Bonnie Eslinger of Law360 reports that Jackson Walker LLP has entered another settlement with former bankruptcy clients to resolve fee disputes stemming from the undisclosed romantic relationship between a former firm partner and former Texas bankruptcy Judge David R. Jones, according to a motion filed Tuesday, July 29, 2025, in Texas federal court. A recent court filing shows that Sungard and Jackson Walker have reached a settlement under which the law firm will return over 93% of the fees previously approved in Sungard's bankruptcy case. The deal, which is awaiting court approval, would resolve claims arising from the undisclosed romantic relationship between former bankruptcy judge David R. Jones and ex-Jackson Walker partner Elizabeth Freeman, which prompted a review of fees awarded in cases overseen by Jones. About Jackson Walker LLP Jackson Walker LLP is a law firm. The Firm's practice areas include aviation, antitrust, bankruptcy, energy, environmental, entertainment, health care, immigration, insurance, intellectual property, international, labor and employment, real estate, and tax law. About Sungard AS New Holdings Sungard Availability Services is a Wayne, Pa.-based information-technology services provider owned by Angelo Gordon, Blackstone Credit, FS/KKR Advisor LLC and Carlyle Group Inc. It provides disaster recovery services, colocation and network services, cloud and managed services and workplace recovery to customers in North America, Europe and Asia. The company and its affiliates filed for Chapter 11 protection twice in three years. Sungard filed for Chapter 11 bankruptcy in 2019 with a prepackaged plan that was approved by a New York bankruptcy court one day after it was filed. Sungard AS New Holdings, LLC and affiliates, including Sungard Availability Services, LP, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Case No. 22-90018) on April 11, 2022. Judge David R. Jones oversees the case. In the petition signed by Michael K. Robinson, CEO and president, Sungard AS disclosed up to $1 billion in both assets and liabilities. Sungard Availability Services (UK) Limited, an indirect subsidiary of Holdings, entered into administration in the UK on March 25, 2022. Meanwhile, Sungard Canada filed an application for recognition in Canada under the Companies Creditors' Arrangement Act of its Chapter 11 case. Akin Gump Strauss Hauer & Feld LLP and Jackson Walker serve as legal counsel to the Debtors. Cassels Brock & Blackwell LLP, serves as their Canadian legal counsel. DH Capital, LLC and Houlihan Lokey, Inc., act as investment bankers. FTI Consulting, Inc., serves as financial and restructuring advisor. Alvarez & Marsal Canada Inc., serves as Canadian court-appointed information officer and is represented by Bennett Jones, LLP as counsel in connection with the Canadian proceedings. Kroll Restructuring Administration, LLC serves as notice and claims agent. Proskauer Rose, LLP and Gray Reed & McGraw, LLP serve as counsel to Acquiom Agency Services LLC, the Term Loan DIP agent, and Term Loan DIP lenders. PNC Bank, National Association, serves as administrative agent and collateral agent, under the DIP ABL facility. PNC is represented by Thompson Coburn Hahn & Hessen LLP as counsel. [^] 2025 Distressed Investing Conference: Registration Now Open! ---------------------------------------------------------------- Registration is now open for the 32nd Annual Distressed Investing Conference, presented by Beard Group, Inc. This two-day affair kicks off with the Opening Night Cocktail Reception on Dec. 2nd from 5:00-7:00 PM and followed by the Full Day Conference on Dec. 3rd. Venue is the Harmonie Club in New York City. Visit https://www.distressedinvestingconference.com/ for more information. Contact Will Etchison, Conference Producer, at Tel: 305-707-7493 or will@beardgroup.com for sponsorship opportunities. Thank you to last year's conference sponsors: The 2024 Conference Co-Chairs: * Kirkland & Ellis, LLP, as conference co-chair; and * Foley & Lardner LLP, as conference co-chair The 2024 Major Sponsors: * Davis Polk & Wardwell LLP; * Hilco Global; * Locke Lord LLP; * Morrison & Foerster LLP; * Proskauer Rose LLP; * Skadden, Arps, Slate, Meagher & Flom LLP; * Wachtell, Lipton, Rosen & Katz; and * Weil, Gotshal & Manges LLP The 2024 Patron Sponsors were: * Katten Muchin Rosenman LLP; * Kobre & Kim; and * Resolution Financial Advisors The 2024 Supporting Sponsors were: * C Street Advisory Group; * Development Specialists, Inc.; * Gilbert + Tobin; * Paul Hastings; * RJReuter; * Sherwood Partners, Inc.; * SSG Capital Advisors; and * Stein Advisors LLC The 2024 Media Partners were: * BankruptcyData; * CreditSights; * Debtwire; * The National Law Review; * PacerMonitor; * Pari Passu Newsletter; * Reorg; and * WSJ Pro Bankruptcy The 2024 Knowledge Partner was: * Creditor Rights Coalition The 2024 Conference Replays are available for Purchase at https://www.distressedinvestingconference.com/2024-video-replays--photos.html ********* 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 ***