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250815.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 15, 2025, Vol. 29, No. 226 Headlines 125 VERTICAL: Voluntary Chapter 11 Case Summary 168 MANHATTAN: Samuel Dawidowicz Named Subchapter V Trustee 4 POINTS TOWING: William Homony Named Subchapter V Trustee 541 HOLDINGS: Seeks to Hire Alex Aaronson as Real Estate Broker 8787 RICCHI: Court Extends Cash Collateral Access to Sept. 9 ACADEMY AT PENGUIN: Hires Bowditch & Dewey LLP as Counsel ACCOUNTING LAB: Court Extends Cash Collateral Access to Aug. 19 ADC AND T: Seeks to Hire Joyce W. Lindauer as Legal Counsel AFFINITY INTEGRATED: Court Extends Cash Collateral Access ALEXANDER PLASTICS: Behrooz Vida Named Subchapter V Trustee ALTAR PDX: Seeks to Hire England Accountancy as Accountant AMERICAN FORKLIFT: Court Extends Cash Collateral Access to Sept. 23 AMERICAN SAMOA: Moody's Affirms Ba3 Issuer & Revenue Bond Ratings ANTONIO MUNOZ: Hires Michael E. Gazette as Legal Counsel AQUABOUNTY TECHNOLOGIES: Net Loss Narrows to $3.4M for Fiscal Q2 ARCHBISHOP OF BALTIMORE: Status Conferences for Claimants Proper ARCTERA HOLDINGS: Cloud Transaction No Impact on Moody's 'B3' CFR ARIS WATER: Moody's Puts 'B1' CFR Under Review for Upgrade ARTISTIC HOLIDAY: Gets Extension to Access Cash Collateral AT HOME GROUP: Defends Updated Chapter 11 Plan, Releases ATLAS CC: S&P Upgrades ICR to 'CCC+' on Distressed Debt Exchange AVANT GARDNER: Court Stays Brockmole, et al. Case Due to Bankruptcy BALL CORP: Moody's Rates New Senior Unsecured Notes 'Ba1' BANGL LLC: Moody's Withdraws 'B2' CFR Following Debt Redemption BEAMES ENTERPRISES: Hires Neeleman Law Group as Legal Counsel BENGODWIN REALTY: Seeks Chapter 11 Bankruptcy in Florida BIO GYMNASTICS: Court Extends Cash Collateral Access BLOCK INC: S&P Rates $1.5BB Senior Unsecured Notes 'BB+' BOWFLEX INC: Court Rejects Dumbbells Class Action Claims BOYD GAMING: Moody's Ups CFR to Ba2 & Senior Unsecured Debt to Ba3 CARING FOR YOU: No Resident Complaints, 2nd PCO Report Says CARTOPIA II: Gets OK to Use Cash Collateral CDF INC: Creditor Loses Bid to Obtain Automatic Stay Relief CHARTER SCHOOL: Hires Epiq Corporate as Administrative Advisor CIVITAS RESOURCES: S&P Alters Outlook to Stable, Affirms 'BB-' ICR COMERICA INC: Fitch Assigns 'BB+' Rating on $400MM Preferred Equity COMPREHENSIVE INTERVENTIONAL: Seeks to Sell Medical Equipment CRC INSURANCE: Fitch Updates July 30 Ratings Release CURIS INC: Net Loss Narrows to $8.6M for Fiscal Q2 D & B PHARMACY: Gets Final OK to Use Cash Collateral D RAIL TRANSPORT: Hires Stone & Baxter LLP as Counsel DASHFIRE LLC: Hires Werner Auction Group as Auctioneer DAYTON DEVELOPMENT: Court Okays Applications to Employ Counsel DB BOONEVILLE: Seeks to Hire Hilco Real Estate as Consultant DCLI BIDCO: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable DEF HOLDING: U.S. Trustee Unable to Appoint Committee DESKTOP METAL: Gets Court Ok for $7.8MM Chapter 11 Dental Labs Sale DESKTOP METAL: Paul Hastings Represents Ad Hoc Group DIOCESE OF ROCKVILLE: Court Expunges Claim No. 50007 DISTRICT 7 GRILL: Tom Howley Named Subchapter V Trustee DMMJ REALTY: Seeks to Sell Rye Property at Auction DON ENTERPRISES: Seeks to Sell New Castle Property to Reignbrook 2 DOVGAL EXPRESS: Court Extends Cash Collateral Access to Sept. 5 EDGE PROMO: Case Summary & 20 Largest Unsecured Creditors ENDO FINANCE: Moody's Raises CFR to 'B1', Outlook Stable ESSENTIALS MASSAGE: Hires Dineen Pashoukos as Special Counsel ETCON CONSTRUCTION: Beverly Brister Named Subchapter V Trustee EXELA TECHNOLOGIES: Holds 28.97% Stake in XBP Global Holdings FAITH ELECTRIC: Sam Heigle's Appointment as Chapter 11 Trustee OK'd FALKY HOLDINGS: Case Summary & Two Unsecured Creditors FCI SAND: Hires GlassRatner Advisory as Valuation Consultant FERGUSON, MO: Moody's Puts 'Ba1' Rating on Review for Downgrade FINLEY DESIGN: Court Extends Cash Collateral Access to Aug. 31 FIRST BRANDS: Refinancing Delay No Impact Moody's 'B2' CFR FISCHER AG: Hires Law Firm of Herren Dare & Street as Counsel FLAGSHIP RESORT: Unsecureds' Recovery "Unknown" in Liquidating Plan FTAI INFRASTRUCTURE: Wheeling Deal No Impact on Moody's 'B3' CFR GENESIS HEALTHCARE: PharMerica Seeks to Reconstitute Committee GILBERT LEGGETT: Hires Ayers & Haidt P.A. as Counsel GLORY BOUND: Unsecureds to Get Share of Income for 3 Years GREAT OUTDOORS: Moody's Alters Outlook on 'Ba3' CFR to Negative HANESBRANDS INC: S&P Places 'B+' ICR on CreditWatch Positive HERTZ CORP: Fitch Affirms 'B-' LongTerm IDR, Outlook Negative HILLCREST VENTURES: Case Summary & 20 Largest Unsecured Creditors HL PIT STOP: Steven Nosek Named Subchapter V Trustee HOLOGIC INC: Moody's Affirms 'Ba1' CFR & Alters Outlook to Positive HOMESERVE USA: Moody's Affirms 'B1' CFR, Outlook Stable HOOPERS DISTRIBUTING: Gets Extension to Access Cash Collateral HOOTERS OF AMERICA: US Trustee Opposes Ch. 11 Exit Plan Approval HOUSE SPIRITS: Seeks to Sell Liquor Business at Auction HUDSON SQUARE: Nicole Nigrelli Named Subchapter V Trustee I A P CONSTRUCTION: Court Extends Cash Collateral Access to Sept. 4 IMMANUEL SOBRIETY: Unsecureds Will Get 2.40% over 60 Months IMPRO SYNERGIES: Hires Mark Escoferry P.A. as Accountant INNOVATE CORP: Swings to $21M Net Loss in Fiscal Q2 INTERFREIGHT SYSTEMS: Amends Plan to Include Sumitomo Secured Claim IPG FRANCHISING: Seeks Chapter 11 Bankruptcy in Florida JLM RESOURCES: Case Summary & 19 Unsecured Creditors KBR INC: S&P Alters Outlook to Negative, Affirms 'BB+' ICR KIDZ TYME: Seeks Subchapter V Bankruptcy in Florida KLIMA CONTROL: Court Extends Cash Collateral Access to Aug. 27 KRT INC: Unsecureds Will Get 100% of Claims over 60 Months KUPONO RESORT: Hires Choi & Ito as Local Bankruptcy Co-Counsel LANDMARK HOLDINGS: Unsecureds' Recovery "TBD" in Joint Plan LAUTARO GROUP: Stephen Metz Named Subchapter V Trustee LAVIE CARE: No Complaints at NC Facilities, 6th PCO Report Says LENDINGTREE INC: Moody's Alters Outlook on 'B3' CFR to Positive LIFE TIME: Fitch Affirms 'BB-' LongTerm IDR & Alters Outlook to Pos LINQTO INC: Shareholder Group Disputes $16MM Securities Sale LINX OF LAKE: Court Extends Cash Collateral Access to Aug. 26 LLW CONSTRUCTION: Court Extends Cash Collateral Access to Oct. 9 LYTTON VINEYARD: Hires Elisa Meyer as Accountant LZA REAL: Hires Kimberly Nash and C. Daniel Roberts as Counsels M.L.B. DESIGNS: Court Extends Cash Collateral Access to Aug. 30 MARFA CABINETS: Seeks Chapter 11 Bankruptcy in Illinois MASTERBRAND INC: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable MASTERBRAND INC: Moody's Affirms Ba2 CFR on American Woodmark Deal MEMORIAL GLEN: Seeks Chapter 11 Bankruptcy in Texas MEMPHIS MADE: James Bailey Named Subchapter V Trustee MERIDIANLINK INC: S&P Places 'B+' ICR on CreditWatch Negative MERIT STREET: Required to Turn Over Texts, Emails MGIC INVESTMENT: Moody's Assigns '(P)Ba1' Preferred Shelf Rating MIAMI-DADE COUNTY IDA: Moody's Rates Ser. 2025 Revenue Bonds 'Ba2' MID-COLORADO INVESTMENT: Hires LRE Water as Water Consultant MISSION POINT: Seeks to Hire Ahern & Kill as Special Counsel MODUS SYSTEMS: Unsecureds Will Get 100% in Liquidating Plan MOLINA VENTURES: Seeks to Hire Hacker Law Firm as Counsel MOSAIC SUSTAINABLE: Seeks to Hire Deloitte Tax LLP as Tax Advisor MOWBRAY WATERMAN: To Sell Visalia Property to J. Nunez & O. Salazar MP COMPLETE: Linda Leali Named Subchapter V Trustee NEXUS BUYER: Moody's Lowers CFR to B3 & Alters Outlook to Stable NIBA DESIGNS: Case Summary & 11 Unsecured Creditors NITRO FLUIDS: Downhole Unsecureds Will Get $25K to $75K in Plan NORTH WHITEVILLE: Hires Law Offices of George Oliver as Counsel NORTHPOINT DEVELOPMENT: Gets Extension to Access Cash Collateral OAKTREE OCALA: Court Extends Cash Collateral Access to Aug. 29 OASIS INTERIORS: Arturo Cisneros Named Subchapter V Trustee OASIS INTERIORS: Section 341(a) Meeting of Creditors on September 4 ODM TRUCK: Gets Extension to Access Cash Collateral ORIGINAL EGGS: Hires Calaiaro Valencik as Counsel PARTIDA HOLDINGS OF FAYETTEVILLE: Court OKs Trustee Appointment PARTIDA HOLDINGS OF LITTLE ROCK: Court OKs Trustee Appointment PARTIDA HOLDINGS OF TULSA: Court OKs Chapter 11 Trustee Appointment PENNYMAC FINANCIAL: Moody's Rates New $650MM Unsecured Notes 'Ba3' PLATE RESTAURANT GROUP: Gets Interim OK to Use Cash Collateral PLATE RESTAURANT LEAWOOD: Gets Interim OK to Use Cash Collateral PLATINUM BEAUTY: Hires Rountree Leitman Klein as Legal Counsel POWER REIT: Swings to $321K Net Income in Q2 From $19.3M Loss YoY PRAESUM HEALTHCARE: Case Summary & 20 Largest Unsecured Creditors PRECISION MEDICINE: Moody's Alters Outlook on 'B2' CFR to Negative PREMIER DATACOM: Hires Graves Dougherty Hearon as Special Counsel PRIME CAPITAL: Trustee Hires Saratoga Automobile as Auctioneer PRIME HEALTHCARE: Fitch Hikes Rating on 2029 Secured Notes to 'B+' PROJECT RUBY: $200MM Term Loan Add-on No Impact on Moody's 'B3' CFR PUBLISHERS CLEARING: Creditors to Get Proceeds From Liquidation R.A.R.E. CORP: Court Extends Cash Collateral Access to Sept. 4 R3CYCLE INDUSTRIES: Gets Extension to Access Cash Collateral RADIAN GROUP: Moody's Affirms '(P)Ba1' Sr. Subordinate Shelf Rating RAFTER H FARM: Hires Eisner Advisory Group LLC as Accountant RITE AID: Receives About $76MM Bids for Properties, Leases in Ch.11 RSHBY 10565: U.S. Trustee Unable to Appoint Committee SANTA ANA EXPRESS: Case Summary & Three Unsecured Creditors SANTA FE SPECIALTY: Katharine Clark Named Subchapter V Trustee SANTOPIETRO FOOD: Case Summary & 16 Unsecured Creditors SCCY INDUSTRIES: Hires Latham Luna Eden & Beaudine as Counsel SEBASTIAN HABIB: Hires BKO Associates as Real Estate Broker SHOWTIME ACQUISITION: Moody's Cuts CFR & Senior Secured Debt to B3 SIX COOKS: Joseph Frost Named Subchapter V Trustee SIX COOKS: Seeks Chapter 11 Bankruptcy in North Carolina SNAP INC: Moody's Rates New Senior Unsecured Notes Due 2034 'B1' SOLANO HOME: Hires Anthony D. Giles as Legal Counsel SOLUTIONS BY THE SEA: L. Todd Budgen Named Subchapter V Trustee SOUTHERN EXPRESS: Hires Hendren Redwine & Malone as Counsel SPHERE 3D: Posts $1.7M Net Income in Fiscal Q2 STAR LEASING: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable STOLI GROUP: Banker Refuses Bourbon as Chapter 11 Repayment SUMMIT HARD: Case Summary & 20 Largest Unsecured Creditors SUMMIT PROTECTIVE: Hires Michael Jay Berger as Bankruptcy Counsel SURGERY CENTER: Moody's Alters Outlook on 'B2' CFR to Negative SYLVAMO CORP: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable TAC & J: Seeks to Hire Joyce W. Lindauer as Legal Counsel TALKING ROCK: Gets OK to Use Cash Collateral Until Oct. 17 TAP-TEE REALTY: Seeks Chapter 11 Bankruptcy in New York TELEPHONE AND DATA: Moody's Alters Outlook on 'Ba1' CFR to Stable TRANSOCEAN LTD: Net Loss Widens to $938M in Fiscal Q2 TRIPLE L TRANSPORT: Hires KC Cohen Lawyer PC as Counsel TRIPLE T & COMPANY: Kristofor Sodergren Named Subchapter V Trustee TRUDELL DOCTOR: Hires Accounting Specialty as Accountant UGLYDUCKLINGRENO LLC: U.S. Trustee Unable to Appoint Committee UNITED PROPERTY: Section 341(a) Meeting of Creditors on September 3 V820JACKSON LLC: Strategic Unsecured Creditors to Get 80% in Plan VESTTOO LTD: Aon PLC Blamed for Company's Collapse VILLAGES HEALTH: U.S. Trustee Appoints Suzanne Richards as PCO VISION2SYSTEMS LLC: Unsecureds' Recovery "Unknown" in Plan VOIP-PAL.COM: Reports $188K Profit in Fiscal Q2 W.D. TOWNLEY: Hires Adkison Law Firm as Special Counsel W.R. GRACE: Moody's Rates New $500MM Senior Secured Notes 'B2' WA3 PROPERTIES: Seeks to Hire Wipfli LLP as Expert Witness WALKER COUNTY: To Sell Claims to RC Mid-America for $20K WATER'S EDGE: Hires Tyburski Appraisal as Real Estate Appraiser WELLPATH HOLDINGS: Slotcavage Case Dismissed Without Prejudice WEST COUNSELING: Hires Michael T. Bowers as Accountant WHITESTONE CROSSING: Hires Lain Faulkner & Co. as Accountant WI-FI WHEELING: Gets Interim OK to Use Cash Collateral Until Oct. 2 WISDOM DENTAL: Seeks Subchapter V Bankruptcy in Florida WORK 'N GEAR: U.S. Trustee Appoints Creditors' Committee WT REPAIR: U.S. Trustee Unable to Appoint Committee YERUSHA LLC: City of Chicago's Administrative Expense Claim Allowed ZAYO GROUP: Wins Creditor Backing to Extend Debt Maturity to 2030 [^] 2025 Distressed Investing Conference: Registration Now Open! [^] BOOK REVIEW: The Luckiest Guy in the World ********* 125 VERTICAL: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: 125 Vertical Parking Group, LLC 411 Hempstead TPKE West Hempstead, NY 11552 Business Description: The Debtor holds a single asset consisting of a developed real estate parcel located at 123 Baxter Street in New York. Chapter 11 Petition Date: August 13, 2025 Court: United States Bankruptcy Court Eastern District of New York Case No.: 25-43916 Judge: Hon. Elizabeth S. Stong Debtor's Counsel: Lawrence Morrison, Esq. MORRISON TENENBAUM PLLC 87 Walker Street, Second Floor New York, NY 10013 Email: lmorrison@m-t-law.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Daniel McCrossin as authorized signatory. 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/CMYN2AY/125_Vertical_Parking_Group_LLC__nyebke-25-43916__0001.0.pdf?mcid=tGE4TAMA 168 MANHATTAN: Samuel Dawidowicz Named Subchapter V Trustee ----------------------------------------------------------- The U.S. Trustee for Region 2 appointed Samuel Dawidowicz as Subchapter V trustee for 168 Manhattan Inc. Mr. Dawidowicz will be paid an hourly fee of $565 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Dawidowicz declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Samuel Dawidowicz 215 East 68th Street New York, NY 10065 Phone: (917) 679-0382 About 168 Manhattan Inc. 168 Manhattan Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-43829) on August 7, 2025, with $0 to $50,000 in assets and $1,000,001 to $10 million in liabilities. Judge Nancy Hershey Lord presides over the case. 4 POINTS TOWING: William Homony Named Subchapter V Trustee ---------------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed William Homony of Miller Coffey Tate, LLP as Subchapter V trustee for 4 Points Towing & Roadside Service, LLC. Mr. Homony will be paid an hourly fee of $450 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Homony declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: William A. Homony, CIRA Miller Coffey Tate, LLP 1628 John F. Kennedy Boulevard, Suite 950 Philadelphia, PA 19103 Telephone: (215) 561-0950 ext. 26 Fax: (215) 561-0330 Email: bhomony@mctllp.com About 4 Points Towing & Roadside Service 4 Points Towing & Roadside Service, LLC provides towing and roadside assistance services across Kent County and surrounding areas in Delaware and Maryland, offering local and long-distance transport for cars, trucks, exotic and classic vehicles, and low clearance automobiles. It also handles light equipment hauling in Dover and along US-13 and DE-1 in Harrington, Milford, and Central Delaware. It operates as a family-owned and locally managed business. 4 Points sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 25-11491) on August 8, 2025, with $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. Janet Kope, president and manager of 4 Points, signed the petition. Judge Laurie Selber Silverstein presides over the case. Adam Hiller, Esq., at Hiller Law, LLC represents the Debtor as bankruptcy counsel. 541 HOLDINGS: Seeks to Hire Alex Aaronson as Real Estate Broker --------------------------------------------------------------- 541 Holdings, LLC seeks approval from the U.S. Bankruptcy Court for the District of Oregon to employ John L. Scott Real Estate as real estate broker. The firm will market and sell the Debtor's real property known as 30033 Redwood Highway, Cave Junction, OR 97523. The firm will be paid a commission 2.5 percent and 5 percent of the gross sales price, based on the potential broker representation of any potential buyer. Alex Aaronson 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: Alex Aaronson John L. Scott Real Estate 871 Medford Center Medford, OR 97504 Tel: (541) 779-3611 About 541 Holdings, LLC 541 Holdings, LLC was converted under Chapter 11 on June 17, 2025 (Bankr. D. Or. Case No. 24-60832). The Debtor hires Michael D. O'Brien & Associates, P.C. as counsel. 8787 RICCHI: Court Extends Cash Collateral Access to Sept. 9 ------------------------------------------------------------ 8787 Ricchi, LLC received another extension from the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, to use cash collateral. The court issued its fifth order authorizing the Debtor's interim use of cash collateral from August 6 to September 9 in accordance with its budget, with a 10% variance allowed. The Debtor projects total operational expenses of $53,601.91 for August and $51,601.91 for September. As protection, 87STE Lending, LLC, through U.S. Marshals Service, will be granted a replacement lien on property currently owned or acquired by the Debtor after the petition date similar to the lender's pre-bankruptcy collateral. 87STE Lending has a security interest in the Debtor's deposit accounts and rent and the proceeds thereof, which constitute cash collateral under Section 363(a) of the Bankruptcy Code. The U.S. government, acting by and through the U.S. Marshals Service, is presently empowered to exercise the rights and remedies related thereto pursuant to a court order. The Debtor must draw $60,000 in DIP financing by August 16, 2025, and hold the funds in its DIP account. If this DIP draw does not occur, the authority to use cash collateral terminates immediately. The Debtor's authority to use cash collateral terminates upon occurrence of certain events including conversion of its Chapter 11 case, appointment of a trustee or default, subject to seven-day cure rights. A final hearing is scheduled for September 9. About 8787 Ricchi 8787 Ricchi, LLC is a commercial real estate company that owns and manages properties in Dallas, Texas. 8787 Ricchi sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 25-31144) on March 31, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. Judge Stacey G. Jernigan handles the case. The Debtor is represented by: Frank Jennings Wright, Esq. Law Offices Of Frank J. Wright, PLLC Tel: 214-935-9100 Email: frank@fjwright.law ACADEMY AT PENGUIN: Hires Bowditch & Dewey LLP as Counsel --------------------------------------------------------- The Academy at Penguin Hall, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Massachusetts to employ Bowditch & Dewey, LLP as counsel. The firm's services include: a. advising the Debtor with respect to its rights, powers and duties as a debtor-in-possession in the continued operation and management of its businesses and properties; b. representing the Debtor at all hearings and matters pertaining to its affairs as debtor and debtor-in-possession; c. preparing, on the Debtor's behalf, all necessary and appropriate applications, motions, answers, orders, reports, and other pleadings and other documents, and review all financial and other reports filed in this Chapter 11 case; d. advising the Debtor with respect to, and assisting in the negotiation and documentation of, financing agreements and related transactions; e. reviewing and analyzing the nature and validity of any liens asserted against the Debtor's property and advising the Debtor concerning the enforceability of such liens; f. advising the Debtor regarding its ability to initiate actions to collect and recover property for the benefit of its estate; g. advising and assisting the Debtor in connection with the potential sale of the Debtor's assets and preparing documents and related pleadings concerning same; h. advising the Debtor concerning executory contract and unexpired lease assumptions, lease assignments, rejections, restructurings and recharacterization of contracts and leases; i. reviewing and analyzing the claims of the Debtor's creditors, the treatment of such claims and the preparation, filing or prosecution of any objections to claims; j. preparing, on the Debtor's behalf, and advising the Debtor with respect to any plan of reorganization or liquidation and all pleadings and documents related thereto; k. commencing and conducting any and all litigation necessary or appropriate to assert rights held by the Debtor, protect assets of the Debtor's Chapter 11 estate or otherwise further the goal of effectuating the Debtor's reorganization other than with respect to matters to which the Debtor retains special counsel; and l. performing all other legal services and providing all other necessary legal advice to the Debtor as debtor-in-possession which may be necessary in the Debtor's bankruptcy proceeding. The firm will be paid at these rates: Partners $395 $900 per hour Of-Counsel $365 to $580 per hour Associates $275 to $475 per hour Paralegals $150 to $325 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Christopher M. Condon, Esq., a partner at Bowditch & Dewey, LLP, 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: Christopher M. Condon, Esq. Bowditch & Dewey, LLP 75 Federal Street Suite 1000 Boston, MA 02110 Tel: (617) 757-6500 About The Academy at Penguin Hall, Inc. The Academy at Penguin Hall Inc. is a private, college-preparatory day school for young women in grades 9 through 12. Located in Wenham, Massachusetts, the school offers interdisciplinary academic programs and emphasizes leadership, critical thinking, and the arts. The Academy at Penguin Hall sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-11191) on June 11, 2025. In its petition, the Debtor reported between $10 million and $50 million in assets and liabilities. The Debtor is represented by John T. Morrier, Esq., at Casner & Edwards, LLP. ACCOUNTING LAB: Court Extends Cash Collateral Access to Aug. 19 --------------------------------------------------------------- The Accounting Lab Group, LLC received fourth interim approval from the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, to use cash collateral until Aug. 19. The fourth interim order signed by Judge Lori Vaughan authorized the Debtor to use cash collateral to pay the amounts expressly authorized by the court, including payments to the U.S. trustee for quarterly fees; the expenses set forth in the budget, plus an amount not to exceed 10% for each line item; and additional amounts expressly approved in writing by NewTek Bank, N.A. As protection, NewTek and other secured creditors will be granted a replacement lien on the Debtor's post-petition property to the same extent and with the same validity and priority as their pre-bankruptcy lien. The Debtor owes Newtek $3.975 million, which is secured by a lien on the Debtor's cash or cash equivalents. Newtek has a first priority security interest in the Debtor's cash as per a UCC-1 financing statement filed on June 26, 2023. There are other parties that may assert their interests in the Debtor's cash or cash equivalents but these interests are considered to be inferior to Newtek's. The next hearing is scheduled for August 19. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/zDdeH from PacerMonitor.com. About The Accounting Lab Group The Accounting Lab Group, LLC is a Florida-based firm specializing in accounting, tax planning, and business management services. It provides tailored solutions to help business owners minimize taxes, optimize revenue, reduce overhead, and streamline operations. The company works closely with professionals such as physicians, dentists, veterinarians, and small businesses to enhance their financial performance and efficiency. Accounting Lab Group filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 25-01659) on March 25, 2025, listing up to $10 million in both assets and liabilities. R. Corico McCray Sr, managing member, signed the petition. Judge Lori V Vaughan oversees the case. Daniel A. Velasquez, Esq., at Latham, Luna, Eden & Beaudine, LLP, represents the Debtor as legal counsel. ADC AND T: Seeks to Hire Joyce W. Lindauer as Legal Counsel ----------------------------------------------------------- ADC and T, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire Joyce W. Lindauer of Joyce W. Lindauer Attorney, PLLC to serve as legal counsel. The firm will provide these services: (a) represent the interests of the Debtor and the estate; (b) propose a plan of reorganization; and (c) represent the Debtor in various matters arising in this case. The firm will receive these hourly rates: $595 for Joyce W. Lindauer $525 for Paul B. Geilich, Of Counsel $295 for Laurance Boyd, Associate Attorney $250 for Dian Gwinnup, Paralegal The firm has been paid a $21,800 retainer, which included the filing fee of $1,738. The Debtor has agreed to reimburse Counsel for all reasonable out-of-pocket expenses. Joyce W. Lindauer Attorney, PLLC 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, Esq. JOYCE W. LINDAUER ATTORNEY, PLLC 117 S. Dallas St. Ennis, TX 75119 Telephone: (972) 503-4033 Facsimile: (972) 503-4034 About ADC and T LLC ADC and T LLC, doing business as BIG Game, provides transportation and logistics services, including hauling operations involving trucks, trailers, and heavy equipment. The Company operates in Texas and serves sectors such as construction, aggregates, or oilfield services. ADC and T LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-32569) on July 9, 2025. In its petition, the Debtor reported estimated assets and liabilities between $1 million and $10 million each. The Debtors are represented by: Joyce W. Lindauer Joyce W. Lindauer Attorney, PLLC Tel: (972) 503-4033 Email: joyce@joycelindauer.com AFFINITY INTEGRATED: Court Extends Cash Collateral Access --------------------------------------------------------- Affinity Integrated Healthcare S.C. received another extension from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, to use cash collateral. The interim order signed by Judge Donald Cassling extended the Debtor's authority to use cash collateral through September 12 in order to pay the expenses set forth in its budget, with a 5% variance allowed. The Debtor's budget projects total operational expenses of $82,941.28 for August. As protection, the U.S. Small Business Administration and any creditor with an interest in the cash collateral will be granted security interests in property acquired by the Debtor after its Chapter 11 filing, to the same extent and with the same priority as their pre-bankruptcy lien. The next hearing is set for September 9. About Affinity Integrated Healthcare Affinity Integrated Healthcare S.C. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-09010) on June 19, 2024, listing up to $50,000 in assets and up to $500,000 in liabilities. Judge Donald R. Cassling presides over the case. The Debtor is represented by: Blair R. Zanzig, Esq. Leibowitz Hiltz & Zanzig Tel: 312-566-9008 Email: bzanzig@lakelaw.com ALEXANDER PLASTICS: Behrooz Vida Named Subchapter V Trustee ----------------------------------------------------------- The U.S. Trustee for Region 6 appointed Behrooz Vida, Esq., at the Vida Law Firm, PLLC as Subchapter V trustee for Alexander Plastics, Inc. Mr. Vida will be paid an hourly fee of $495 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Vida declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Behrooz P. Vida, Esq. The Vida Law Firm, PLLC 3000 Central Drive Bedford, TX 76021 Telephone: (817) 358-9977 Facsimile: (817) 358-9988 behrooz@vidalawfirm.com About Alexander Plastics Alexander Plastics, Inc., doing business as, Creations Global, manufactures and distributes plastic products and kiosk systems from its facility in Garland, Texas. The Company offers engineered interior systems, mobile fabrication services, and VMS hybrid kiosks for retail and commercial clients. It provides design, prototyping, and engineering support tailored to custom specifications, and also supplies wholesale plastic components to various industries through direct and contract channels. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Texas Case No. 25-33013) on August 6, 2025, with $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. Ben Goldfarb, chairman, signed the petition. Frances A. Smith, Esq., at Ross & Smith, P.C. represents the Debtor as legal counsel. ALTAR PDX: Seeks to Hire England Accountancy as Accountant ---------------------------------------------------------- Altar PDX LLC seeks approval from the U.S. Bankruptcy Court for the District of Oregon to hire England Accountancy LLC, headed by Erica England, to serve as accountant in its Chapter 11 case. England Accountancy will provide these services: (a) bookkeeping services; (b) preparation of financial statements; and (c) assistance with the preparation of the monthly operating report. The Accountant's proposed rate of compensation, subject to final court approval, is based on the experience level of staff required to complete the services and out-of-pocket expenses. England Accountancy 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: Erica England England Accountancy LLC 21281 S Sweetbriar Rd West Linn, OR 97068 E-mail: erica@englandaccountancy.com About Altar PDX LLC Altar PDX, LLC manufactures and sells clothing online. Altar PDX sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ore. Case No. 25-32203) on June 27, 2025, listing up to $50,000 in assets and up to $500,000 in liabilities. Cassandra Ridgway, owner and member of Altar PDX, signed the petition. Judge Peter C. McKittrick oversees the case. Nicholas J. Henderson, Esq., at Elevate Law Group, represents the Debtor as bankruptcy counsel. AMERICAN FORKLIFT: Court Extends Cash Collateral Access to Sept. 23 ------------------------------------------------------------------- American Forklift Rental & Supply, LLC received another extension from the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, to use cash collateral. At the latest hearing, the court approved the Debtor's interim use of cash collateral until September 23. The Debtor was previously authorized to use the cash collateral of its secured creditors including Ameris Bank, MCA Rehab, LLC and Forward Financing, LLC and grant these secured creditors a perfected post-petition lien on the cash collateral pursuant to the court's third interim order dated August 5. This interim authorization expired on August 5. The Debtor projects total operational expenses of $27,070.66 for the period from May to October. About American Forklift Rental & Supply American Forklift Rental & Supply, LLC provides forklift rentals, sales, parts, service, and safety training across Central Florida, including Orlando, Tampa, and surrounding counties. The company offers new and used forklifts in various fuel types and sizes, with flexible rental terms and included maintenance. Headquartered in Orlando, American Forklift Rental & Supply has served the region for over 25 years and remains owner-operated to ensure personalized customer support. American Forklift Rental & Supply sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-02765) on May 5, 2025. In its petition, the Debtor reported total assets of $1,280,342 and total liabilities of $890,93. Judge Lori V. Vaughan handles the case. The Debtor is represented by Melissa A Youngman, Esq., at Winter Park Estate Plans & Reorgs. AMERICAN SAMOA: Moody's Affirms Ba3 Issuer & Revenue Bond Ratings ----------------------------------------------------------------- Moody's Ratings has affirmed the Territory of American Samoa's Ba3 issuer rating and the Ba3 ratings on American Samoa's outstanding general revenue bonds. American Samoa had $122.5 million of general revenue bonds outstanding at the end of fiscal 2024. The outlook is stable. RATINGS RATIONALE The Ba3 issuer rating reflects American Samoa's status as a US territory that receives generous operating and capital assistance from the federal government, which has enabled the government to maintain a solid financial position. American Samoa's available fund balance declined to 34.5% of own-source revenue in fiscal 2024 from 40.3% the year before but remains higher than it was three years ago. The rating also factors in the territory's small and volatile economy with employment concentrated in government and tuna packing; very low resident income levels (social issuer profile score of S-5); high long-term liabilities and fixed costs; and risks associated with operating a government-owned charter bank. The rating also reflects significant exposure to physical climate risks, especially sea level rise (environmental issuer profile score of E-5). The Ba3 general revenue bond rating is the same as the territory's issuer rating given the government's pledge of its full faith and credit and broad revenue base to repay the bonds. RATING OUTLOOK The stable outlook reflects the territory's solid financial position and significant federal government support, which will enable the territory to weather economic swings that may occur in the next two years. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Diversification and growth of economy -- Substantial improvement in financial management and governance coupled with a reduction in long-term liabilities ratio to below 200% of own-source revenue FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Weakening of financial position and decline in available fund balance below 20% of own-source revenue -- Weakening of US federal government support evidenced by federal grants accounting for less than 60% of total governmental funds revenue -- Significant increase of debt and pension liabilities to over 300% of own-source revenue PROFILE American Samoa is a chain of seven small islands in the Pacific Ocean about 2,700 miles southwest of Hawaii and 2,300 miles northeast of New Zealand that became a US territory in 1900. The territory is self-governing under a 1966 constitution. The economy is concentrated in government and tuna packing, and the population was 49,710 as of the 2020 Census. METHODOLOGY The principal methodology used in these ratings was US States and Territories published in July 2024. ANTONIO MUNOZ: Hires Michael E. Gazette as Legal Counsel -------------------------------------------------------- Antonio Munoz Aserradero, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Texas to hire Michael E. Gazette of the Law Offices of Michael E. Gazette to serve as legal counsel in its Chapter 11 case. The firm will provide these services: (a) provide advice to Debtor; (b) prepare and file the petition, schedules, and statement of financial affairs; (c) prepare and file a disclosure statement and plan of reorganization; (d) negotiate with creditors; (e) review executory contracts; (f) review claims; (g) respond to and appear at hearings on contested matters; and (h) address any further matters which may arise. Mr. Gazette shall receive an hourly rate of $400 for attorney services and $50 for paraprofessional services. Antonio Munoz Aserradero, LLC has paid a total of $26,730 prior to filing, of which $7,344 was for pre-filing services and the filing fee, with the remaining $19,386 held in the firm's Interest on Lawyers' Trust Account. The Law Offices of Michael E. Gazette 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: Michael E. Gazette, Esq. LAW OFFICES OF MICHAEL E. GAZETTE 100 East Ferguson Street, Suite 1000 Tyler, TX 75702-5706 Telephone: (903) 596-9911 Telecopier: (903) 596-9922 E-mail: megazette@suddenlinkmail.com About Antonio Munoz Aserradero LLC Antonio Munoz Aserradero LLC is a Texas-based company engaged in sawmills and wood preservation activities. Antonio Munoz Aserradero LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Tex. Case No. 25-60480) on August 7, 2025. In its petition, the Debtor reports estimated assets between $50,000 and $100,000 and estimated liabilities between $1 million and $10 million. The Debtor is represented by Michael E Gazette, Esq. at LAW OFFICES OF MICHAEL E GAZETTE. AQUABOUNTY TECHNOLOGIES: Net Loss Narrows to $3.4M for Fiscal Q2 ---------------------------------------------------------------- AquaBounty Technologies, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $3,373,037 for the three months ended June 30, 2025, compared to a net loss of $50,514,241 for the three months ended June 30, 2024. For the six months ended June 30, 2025, the Company reported a net loss of $2,971,902, compared to a net loss of $61,672,489 for the same period in 2024. As of June 30, 2025, the Company had an accumulated deficit of $373 million and $730 thousand in cash and cash equivalents on its interim condensed consolidated balance sheet. As of June 30, 2025, the Company had $26,650,968 in total assets, $13,037,043 in total liabilities, and $13,613,925 in total stockholders' equity. The Company requires new funding to provide liquidity for working capital in order to realize the potential value of our assets. Consequently, its ability to continue as a going concern is dependent upon the ability to raise additional capital, and there can be no assurance that such capital will be available in sufficient amounts, on a timely basis, on acceptable terms, or at all. "During the second quarter, we continued to sell available Ohio Equipment Assets to generate cash for the Company," commented David Frank, Chief Financial Officer and Interim Chief Executive Officer. "On June 11, 2025, we completed the sale of certain Ohio Equipment Assets for net proceeds of $2.4 million, after deducting commissions and fees. This transaction provided us with the liquidity to continue to work with our investment banker to pursue strategic alternatives for our Ohio Farm Project." "We will continue to keep all stakeholders apprised of our progress," concluded Frank. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/3dzth9e3 About AquaBounty AquaBounty Technologies, Inc. -- www.aquabounty.com -- specializes in land-based aquaculture, focusing on the farming of Atlantic salmon using advanced breeding, genetics, and sustainable farming practices. The company utilizes recirculating aquaculture systems (RAS) to prevent disease, protect wild fish populations, and minimize environmental impact. AquaBounty aims to address food insecurity and climate change by producing antibiotic-free, nutritious salmon close to key consumption markets. Baltimore, Maryland-based Deloitte & Touche LLP, the Company's auditor since 2021, issued a "going concern" qualification in its report dated Mar. 27, 2025, citing that the Company has incurred cumulative net losses that raise substantial doubt about its ability to continue as a going concern. Since inception, the Company has incurred cumulative net losses of $370 million and expects that this will continue for the foreseeable future. As of December 31, 2024, the Company had $230 thousand in cash and cash equivalents on its consolidated balance sheet. ARCHBISHOP OF BALTIMORE: Status Conferences for Claimants Proper ---------------------------------------------------------------- Judge Michelle M. Harner of the United States Bankruptcy Court for the District of Maryland held that setting additional status conferences in the bankruptcy case of The Roman Catholic Archbishop of Baltimore for certain claimants are appropriate under the Bankruptcy Code and the Bankruptcy Rules. The Roman Catholic Archbishop of Baltimore filed a petition for relief under chapter 11 of the Code on Sept. 29, 2023. On that same date, the Debtor filed a Motion to Extend the Automatic Stay to certain related entities included as additional insureds under the Debtor's various current and legacy insurance programs. The Court entered an interim order granting certain of the relief requested by the Stay Motion, which was then continued under the Stay Order. The Stay Order was grounded, in part, on a finding that the Debtor's prepetition insurance policies are property of the Debtor's bankruptcy estate under section 541 of the Code. 11 U.S.C. Sec. 541(a). The insurance policies name the Debtor as an insured and may be available to pay covered claims asserted against the Debtor in this case. The Stay Order is intended to preserve the value of estate assets for the benefit of all claimants and remains in effect to prevent parties from commencing or continuing litigation against the Debtor and certain of the Debtor's related entities that are also covered by the Debtor's insurance policies. The Debtor has acknowledged that the filing of this case and the need for the Stay Order resulted primarily from the Maryland Child Victims Act, passed by the Maryland General Assembly in April 2023. The CVA eliminated the statute of limitations on civil lawsuits involving claims of child sexual abuse. The CVA became effective on Oct. 1, 2023, immediately after the filing of this case. Since that time, the Debtor, the Official Committee of Unsecured Creditors, and the Debtor's insurance carriers have been engaged in this case, participating in mediation, and working towards a plan of reorganization. The primary creditors in this case are the survivors of child sexual abuse, and the members of the Committee are in fact Survivors themselves. The mediation is ongoing and is governed by the Agreed Order Directing Mediation, Appointing Mediators, and Ordering Mediation Discovery. Prior Status Conferences The Court has held several status conferences in this case. Some have been set at the request of parties in interest. Others have been set by the Court to understand the progress being made towards a chapter 11 plan of reorganization and to provide general information to parties in interest who may not be privy to the status of the mediation or the ongoing negotiations. In addition, early in this case, the Committee filed a Notice of Presentation of Survivor Statements. By the First Notice, the Committee requested that the Court reserve two dates to permit Survivor statements from certain members of the Committee and other Survivor claimants who expressed a willingness and desire to address the Court. The Court then issued an Order Granting Committee Request to Reserve Time for Presentation of Survivor Statements (the "First Order"). The First Order set two status conferences to allow Survivors to address the Court, the Debtor, and other parties in interest. The First Order set certain parameters to: (i) ensure appropriate protections for Survivors given the nature of their claims; (ii) protect the integrity of the Court and the bankruptcy system; (iii) preserve the rights and remedies of all parties in this chapter 11 case; and (iv) limit the time allocated to any statements. Although those status conferences were considered off the record and not transcribed, the Court complied with applicable rules and general protocols. All parties in interest and the public were able to attend the status conferences. No party contested the First Order; asked the Court to reconsider, vacate, or otherwise change the First Order; or objected to the participation of Survivors at the status conferences themselves. Even after the first status conference under that order, no objections were lodged. The Committee has now filed a second Notice of Presentation of Survivor Statements. The Court heard comments from the Committee, the Debtor, and one of the Insurers at a status conference on June 2, 2025. That Insurer, Century Indemnity Company, as successor to CCI Insurance Company, as successor to Insurance Company of North America, then filed an objection to the Second Notice. The Court held a hearing on the Second Notice and the Objection on Aug. 4, 2025. Status Conferences in this Case The Court has set status conferences to discuss the status of mediation and negotiations concerning a chapter 11 plan; to understand the scope of data breaches potentially affecting Survivors and others involved in the case; and to allow Survivors to address the Court, the Debtor, and other parties in interest. The latter status conferences have been subject to certain safeguards and limitations, given the nature of the claims asserted by Survivors. Those conferences were nevertheless held only after notice and were open to the public. The Court is not conducting proceedings behind closed doors or shutting parties out of the process. To the contrary, the Court finds the opportunity for individuals affected by this case to be engaged in the process necessary to the continued administration of the case. Issues Raised by the Objection The Objection raises several issues with the Court holding another status conference for Survivors to address the Court, the Debtor, and other parties in interest. These issues include potential prejudice to the process and a lack of statutory authority. The Court finds no grounds to foreclose that opportunity to Survivors. In addition, allowing Survivors to participate in a status conference or other non-evidentiary proceeding before the Court poses no greater risk of bias or prejudice than providing similar opportunities to any other party in interest in a bankruptcy case. This Court frequently hears statements from parties in interest in the courtroom that are not evidence or offered as part of an evidentiary hearing or trial. The Court can allow parties to speak without prejudicing the record. The relief requested by the Second Notice falls squarely within the Court's authority under the Code and the Bankruptcy Rules. The filing of this chapter 11 case and section 362(a) of the Code stayed most all actions against the Debtor, the Debtor's property, and property of the estate. In maintaining the automatic stay, which necessarily affects the rights of the Debtor's creditors and other parties in interest, the Court must carefully balance competing interests and tailor the relief to the extent necessary and appropriate. As set forth in the Stay Order and the Supplemental Stay Order, the Court continues to find grounds to maintain the automatic stay in this case. The Court also, however, finds grounds under sections 105(d) and 362 of the Code and Bankruptcy Rule 5001(b) to hold additional status conferences in this case, both to ensure continued progress and to provide an opportunity for creditors to address the Court, the Debtor, and other parties in interest. The Court disagrees with the suggestion in the Objection that the requested relief is unauthorized or inappropriate. The Court has an interest in monitoring matters under section 362 of the Code, the Court's related Stay Order and Supplemental Stay Order, and the Mediation Order, all of which affect Survivors. This interest, together with the Court's stated authority under section 105(d)(1) of the Code, provide ample support for the Court to hold a status conference in this case for Survivors to address the Court, the Debtor, and other parties in interest. In addition, Bankruptcy Rule 5001(b), as well as Bankruptcy Rule 7016, specifically recognize the Court's authority to conduct non-hearing/non-trial matters outside the traditional courtroom setting. The Court will grant the relief requested by the Second Notice, subject to the terms and conditions of this Memorandum Opinion and the related Order. One such condition, which was only implicit in the First Order, is that any Survivors participating in the status conference must establish that they have filed proofs of claim in this case and are parties in interest under section 1109(b) of the Code. The Court will allow Survivors to provide the necessary information to the Committee, and the Committee to then certify that information to the Court in a manner that complies with the privacy and confidentiality provisions applicable in this case. A copy of the Court's Memorandum Opinion dated August 11, 2025, is available at https://urlcurt.com/u?l=TqmVoI from PacerMonitor.com. About Roman Catholic Archbishop of Baltimore Roman Catholic Archbishop of Baltimore is a non-profit religious institution that maintains its principal place of business at 320 Cathedral Street, Baltimore, Maryland 21201. Consistent with Canon Law and Maryland law, the RCAB holds property, including real property, as a corporation sole for the purposes of erecting churches, parsonages, burial grounds, or schools according to the discipline and government of the Roman Catholic Church, with all such property to be used only for such purposes. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 23-16969) on Sept. 29, 2023. In the petition signed by William E. Lori, archbishop, the Debtor disclosed $100 million to $500 million in assets and $500 million to $1 billion in liabilities. Judge Michelle M. Harner oversees the case. The Debtor tapped YVS Law, LLC and Holland & Knight LLP as legal counsel; Keegan Linscott & Associates, PC as financial and restructuring advisor; and Gallagher Evelius & Jones LLP as special counsel. Epiq Corporate Restructuring LLC is the claims, noticing, and balloting agent. The U.S. Trustee for Region 5 appointed an official committee to represent unsecured creditors in the Chapter 11 case of The Roman Catholic Archbishop of Baltimore. The committee hires Stinson LLP as counsel. Tydings & Rosenberg LLP as local counsel. ARCTERA HOLDINGS: Cloud Transaction No Impact on Moody's 'B3' CFR ----------------------------------------------------------------- Moody's Ratings said that Arctera Holdings Limited's (Arctera) announcement that it signed a definitive agreement to be acquired by Cloud Software Group, Inc. (CSG, B3 stable), a mission-critical enterprise software provider, has no immediate impact on Arctera's stable outlook and ratings, including the B3 corporate family rating, and the Ba3 superpriority revolving credit facility rating and B3 senior secured term loan B rating of Arctera US Holdings LLC. Terms of the transaction were not disclosed, but CSG expects to fund the acquisition using cash on its balance sheet. Upon close, Arctera is expected to operate as a standalone business unit within the CSG portfolio. The closing of the deal is subject to customary closing conditions, including regulatory approvals. The transaction is expected to close in the fourth quarter of 2025. Arctera Holdings Limited is a provider of data resilience, data compliance, and data protection software. The company rebranded to Arctera from Veritas following the sale of the company's NetBackup business to Cohesity Inc. in December 2024. Arctera is principally owned by investment funds of the private equity firm, The Carlyle Group. ARIS WATER: Moody's Puts 'B1' CFR Under Review for Upgrade ---------------------------------------------------------- Moody's Ratings placed Aris Water Holdings, LLC's (Aris) ratings under review for upgrade, including Aris' B1 Corporate Family Rating, B1-PD Probability of Default Rating, and B2 senior unsecured notes rating. Aris' outlook was previously stable. This action follows a definitive agreement reached by Aris to be acquired by Western Midstream Partners, LP (WES, unrated) for approximately $2 billion in enterprise value, including $500 million of existing debt at Aris. WES is a publicly traded MLP that operates a large midstream system through its primary operating subsidiary Western Midstream Operating, LP (WES Operating, Baa3 stable). RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Aris' ratings were placed on review for upgrade based on its potential ownership by WES, which has a much stronger credit profile, larger and more diversified midstream operations and greater financial resources. Aris' integrated full-cycle water infrastructure assets will enhance WES' scale, complement and further diversify its water businesses in the Permian basin providing greater operational flexibility and commercial success. The combined water business will benefit from economies of scale, broader reach to customers, faster growth, and higher returns over the long term. If Aris' notes remain outstanding and are assumed or guaranteed by WES Operating, then the ratings on the notes would be upgraded to WES' rating level. If Aris were to become an unguaranteed subsidiary of WES Operating after the acquisition and continue to provide separate audited financial statements going forward, then its ratings would likely be upgraded based on the level of parental support. However, the ratings upgrade would likely be limited to one to two notches for WES' ownership and control unless there are significant enhancements to Aris' stand-alone credit profile. If Aris remains an unguaranteed subsidiary and does not provide sufficient financial information going forward then its ratings will likely be withdrawn. Aris shareholders will receive 0.625 common units of WES for each Aris share, with the option to elect to receive $25.00 per share in cash. WES expects to issue approximately 26.6 million common units and pay approximately $415 million in cash, assuming maximum cash consideration, resulting in a total consideration mix of approximately 72-percent equity and 28-percent cash. The merger agreement was unanimously approved by the Boards of Directors of both companies. The transaction is expected to close in the fourth quarter of 2025, subject to regulatory approvals and Aris shareholder approval, as well as other customary closing conditions. Aris Water Holdings, LLC owns and operates an integrated water infrastructure system in the Permian Basin in New Mexico and Texas. The principal methodology used in these ratings was Midstream Energy published in February 2022. Aris' assigned B1 CFR is two nothces below the scorecard-indicated outcome of Ba2. The difference reflects among other factors, the company's relative scale and inherent business risks, including high basin and customer concentration. ARTISTIC HOLIDAY: Gets Extension to Access Cash Collateral ---------------------------------------------------------- Artistic Holiday Designs, LLC and Holiday Creations Pro, Inc. received fifth interim approval from the U.S. Bankruptcy Court for the Middle District of Florida, Fort Myers Division, for authority to use cash collateral. The Debtors were authorized to use cash collateral to pay ordinary and necessary business expenses as set forth in their 13-week budget, with a 10% variance per line item. MEP Capital Holdings III, L.P. asserts interest in the cash collateral, which consists of cash and cash equivalents generated by the Debtors' operations or from the disposition of the lien claimant's pre-bankruptcy collateral. As protection, MEP and other lien claimants will be granted a replacement lien on the Debtors' post-petition assets, with the same validity and priority as their pre-bankruptcy liens. As additional protection, MEP will be granted a superpriority administrative expense claim in case of any diminution in the value of its collateral. The next hearing is set for September 24. MEP asserts approximately $5.686 million in debt under a senior secured loan agreement dated June 15, 2022, with claimed first-priority liens on substantially all assets of the Debtors. Other lien claimants include B Squared, Inc., Melissa and Doug, LLC, and the U.S. Small Business Administration, creating a complex multi-creditor secured debt structure typical of seasonal retail businesses requiring diverse financing sources. About Artistic Holiday Designs Artistic Holiday Designs, LLC filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 25-00153) on January 29, 2025. listing up to $10 million in assets and up to $50 million in liabilities. Derek Norwood, managing member, signed the petition. Judge Caryl E. Delano oversees the case. Michael Dal Lago, Esq., at Dal Lago Law, represents the Debtor as legal counsel. MEP Capital Holdings III, L.P., as secured creditor, is represented by: Luis E. Rivera II, Esq. GrayRobinson, P.A. 1404 Dean Street, Suite 300 Fort Myers, Florida 33901 Phone: 239.254.8460 luis.rivera@gray-robinson.com AT HOME GROUP: Defends Updated Chapter 11 Plan, Releases -------------------------------------------------------- Alex Wittenberg of Law360 Bankruptcy Authority reports that household furnishings retailer At Home Group Inc. disputed objections from creditors and the U.S. Department of Justice's bankruptcy watchdog to its Chapter 11 plan and disclosure statement, telling a Delaware federal judge that the plan's third-party releases are now entirely consensual and that its disclosures are sufficient. About At Home Group Inc. At Home Group Inc. is a home decor and furnishings retailer offering a wide range of everyday and seasonal products for all areas of the home. The Company operates 260 large-format stores across 40 U.S. states and an e-commerce platform. Headquartered in Coppell, Texas, At Home was founded in 1979 and employs 7,170 people. On June 16, 2025, At Home announced it entered a Restructuring Support Agreement (RSA) with certain of its lenders, which will eliminate substantially all of its long-term debt and provide the Company with new financial resources to support the business and position At Home for future success. To implement the terms of the RSA, At Home and 41 of its subsidiaries have commenced voluntary Chapter 11 proceedings in Delaware (Bankr. D. Del. Lead Case No. 25-11120). The proceedings are pending before Judge J. Kate Stickles. In connection with this process, At Home is entering into an agreement for $600 million in debtor-in-possession financing, which includes a $200 million capital infusion from certain of its existing lenders and a "roll up" of $400 million of existing senior secured debt. The Debtors tapped Kirkland & Ellis LLP as restructuring counsel; Young Conaway Stargatt & Taylor, LLP, as Delaware restructuring counsel; AlixPartners LLP as financial advisor; and PJT Partners, Inc., as investment banker. Omni Agent Solutions, Inc., is the claims agent. ATLAS CC: S&P Upgrades ICR to 'CCC+' on Distressed Debt Exchange ---------------------------------------------------------------- S&P Global Ratings upgraded Atlas CC Holding LLC (Cubic Corp.) to 'CCC+' from 'SD' (selective default). S&P said, "At the same time, we withdrew all our issue-level and recovery ratings on its prior debt facilities that were fully exchanged and assigned our 'CCC+' issue-level and '4' recovery rating to the company's second-out facilities due in May 2029, which includes its $1.4 billion term loan B, $203 million term loan C, and $85 million payment-in-kind (PIK) term loan, indicating our expectation for average (30%-50%; rounded estimate: 40%) recovery in the event of a payment default. "We also assigned our 'CCC-' issue-level and '6' recovery rating to its third-out $164 million second-lien term loan due in August 2029, indicating our expectation for negligible (0%-10%; rounded estimate: 0%) recovery. "The negative outlook reflects our view that contract losses and operational challenges could lead to further sustained cash burn and deteriorating liquidity, with potential for a lower rating if we envision a default scenario with 12 months." Cubic completed the exchange of its debt facilities on July 25, 2025, with all lenders of the first-lien and second-lien facilities exchanging their holdings for new super-priority first-out, second-out, and third-out term loans that improved Cubic's liquidity position and reduced its cash interest obligations. Cubic's updated capital structure improves liquidity and lowers debt service. This should somewhat quell its cash deficits. The transaction also extended Cubic's debt maturities to May 2029 and beyond, providing time for the company to improve performance ahead of refinancing needs. The company captured about $335 million of discount from the transaction, including a discounted exchange of its preferred shares, and received a liquidity infusion of $170 million of sponsor equity contribution and $150 million cash collateral release from restricted cash, supporting transaction expenses and some debt paydown. After repaying its bridge financing, repurchasing a portion of preferred shares, covering transaction fees, and other uses, S&P estimates Cubic closed the transaction with about $190 million cash and revolver availability. Its liquidity position, in addition to about $65 million in annual cash interest reduction, should be sufficient to support its operations at least over the next 12 months. S&P said, "We therefore do not envision a specific default scenario over the next 12 months. However, Cubic has consistently burned cash with free operating cash flow (FOCF) deficits exceeding $100 million annually over the past several years. We think its cash flow is difficult to predict. We now anticipate more modest annual cash burn and that the company will increasingly rely on its revolver to fund operations." S&P said, "We think Cubic's new capital structure is unsustainable in the long-term. Its still burdensome debt obligations bring estimated total S&P Global Ratings-adjusted debt to about $2.5 billion following the transaction. This includes its new preferred equity ($217 million), VIE debt ($327 million as of March 31, 2025, nonrecourse to Cubic), and trade receivables sold ($45 million as of Sept. 30, 2024). We anticipate milestone payments made to the variable interest entity (VIE) related to its Boston contract will lower consolidated debt over the next couple of years, though the debt held directly by Cubic will accumulate because of PIK interest and represents an onerous burden. We expect improved though still weak cash flow, with performance highly dependent on favorable economic and business conditions. "Our forecast reflects improving earnings, yet S&P Global Ratings-adjusted leverage will remain well above 10x for the next several years. The company's very weak credit measures indicate that it could not meet its debt interest obligations on a cash pay basis without significant earnings and cash flow improvement. "Cubic's business prospects are uncertain in our view. Actual results could deviate from our forecast because contract performance information is limited, and our expectation for new business wins may not materialize. Our base case reflects full-year revenue growth of 4% in fiscal 2025 (ending Sept. 30, 2025) and 5% in fiscal 2026. We think the contribution from new projects in the Cubic Transportation Systems (CTS) segment will offset revenue declines from projects that shift to the operations and maintenance (O&M) phase. Our revenue improvement forecast also considers ongoing healthy performance in the defense segment. Profit margins should expand in the second half of 2025 year over year, which was impaired by revenue write-offs resulting from contract renegotiations last year. We think S&P Global Ratings-adjusted EBITDA margin will expand to about 11% in fiscal 2026 as more of its projects transition to the more profitable O&M phase and Cubic implements its cost-saving initiatives. While we expect improved profitability and that unwinding contract assets will improve cash flow relative to prior years, we think modest FOCF deficits will persist in fiscal 2026. "We acknowledge high uncertainty in our earnings and cash flow forecast because we have limited insight into individual contract terms and performance. Management-reported earnings typically include significant addbacks that limit earnings quality and transparency. Meanwhile, our forecast depends on Cubic's ability to continue winning bids for new contracts. Slipping contract win rates or large contract bid losses could lead to significant deviations and indicate weakening business prospects." Cubic's new required incremental reporting to lenders may improve transparency. Under the new credit agreement, the company now must report additional information about its quarterly performance to lenders, including segment-level financial performance, backlogs, penal sum of surety bonds, letters of credit outstanding, and summary management discussion and analysis. It also must include a live question-and-answer session during quarterly calls with lenders. S&P said, "We believe these requirements are a positive development that could help stakeholders better understand the business and make more informed decisions. We think management's lack of transparency has led to some loss of confidence in its financial statements regarding Cubic's performance, financial position, and cash flow generation." Furthermore, the reliability of the company's budgets and forward-looking statements has eroded based on its track record of underperforming to plan and providing limited disclosure related to its management adjustments. Satisfying its new reporting requirements and delivering on its most recent management budget could improve our view of its management and governance practices. S&P said, "The negative outlook reflects our view that while liquidity is sufficient, potential contract losses in Cubic's transport segment and underperformance could lead to persisting cash flow challenges and deteriorating liquidity that would increase the risk of a distressed exchange or event of default." S&P could lower its rating on Cubic if S&P envisions a specific default scenario within 12 months. This could occur if: -- It loses bids on multiple important contracts, leading to our expectation for contracting revenue and earnings; -- Cost overruns or project delays cause us to anticipate persisting FOCF deficits with a possibility of a liquidity shortfall; or -- The company engages in a new liability management transaction or debt exchange that S&P views as distressed, or files for bankruptcy. S&P could take a positive rating action if: -- Cubic demonstrates consistent positive FOCF that we believe will expand sufficient to cover all of its debt service on a cash pay basis; -- S&P expects continued top-line growth and consistent EBITDA margins that support its capital structure; and -- Management provides clear information about its operating performance. AVANT GARDNER: Court Stays Brockmole, et al. Case Due to Bankruptcy ------------------------------------------------------------------- Magistrate Judge Jennifer E. Willis of the United States District Court for the Southern District of New York stayed the case captioned as BROCKMOLE et al., Plaintiffs, -against- EZ FESTIVALS, LLC et al., Defendants, Case No. 23-cv-08106-MMG-JW (S.D.N.Y.). The Court has received notice that defendants EZ Festivals LLC, Avant Gardner LLC, Made Event LLC, AGDP Holding Inc., and Reynard Productions LLC filed a Chapter 11 bankruptcy petition in the United States Bankruptcy Court for the District of Delaware. Judge Willis holds, "In light of the automatic stay provisions of 11 U.S.C. Sec. 362, proceedings in this action are stayed without prejudice to an application to the bankruptcy court for relief from the automatic stay. In absence of such relief, the parties must file a joint status report on October 1, 2025, and the first day of each calendar quarter, e.g. January 1st, April 1st, July 1st, and October 1st, thereafter. The joint status report should discuss whether the bankruptcy case is still pending and whether this case should remain stayed." A copy of the Court's Order dated August 6, 2025, is available at https://urlcurt.com/u?l=3MmiAP from PacerMonitor.com. About Avant Gardner Avant Gardner is a prominent Brooklyn-based entertainment venue operator and event promoter that is operating from its principal location at 140 Stewart Ave in Brooklyn, New York. The company manages entertainment venues and produces live events, with operations in the performing arts and entertainment event promotion sector. Avant Gardner sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11443) on August 4, 2025. In its petition, the Debtor reports estimated assets between $50,000 and $100,000 and estimated liabilities between $100,000 and $500,000. The Debtor is represented by Sean Matthew Beach, Esq. at Young, Conaway, Stargatt & Taylor. BALL CORP: Moody's Rates New Senior Unsecured Notes 'Ba1' --------------------------------------------------------- Moody's Ratings assigned a Ba1 rating to Ball Corporation's ("Ball Corp.") senior unsecured notes due 2033. The company's Ba1 corporate family rating, Ba1-PD probability of default rating, SGL-2 speculative grade liquidity rating (SGL) and other existing ratings are unchanged. The outlook remains stable. Moody's expects the proceeds of the proposed USD$750 million debt offering to be used to for general corporate purposes, with a prioritization of repaying outstanding borrowings under its revolving credit facilities. "Similar to Ball Corp.'s debt issuance in May 2025, Moody's views this transaction as leverage neutral with little impact to the company's credit profile," said Scott Manduca, VP-Senior Analyst at Moody's Ratings. RATINGS RATIONALE Ball Corp.'s Ba1 rating continues to benefit from the company's leading position in the consolidated metal can industry, which creates switching costs for its large blue-chip customers. The company has sophisticated innovation abilities that anchor its strong competitive position in the rapidly growing custom can market. Ball Corp.'s supply chain flexibility and scale will help to soften the negative cost impact on margins from tariffs on aluminum prices. In addition, Ball Corp. can limit margin volatility with the pass through mechanisms of cost inflation that are embedded in its customer contracts. Ball Corp. has taken advantage from stock market volatility and has exercised already around $1 billion of its planned $1.3 billion of share repurchases for 2025 in the first half of the year. Moody's anticipates that Ball Corp. will reduce share repurchases in the second half of the year and not materially exceed the previously communicated target of $1.3 billion. Therefore, Moody's maintains Moody's expectations that leverage will be near Moody's 4.0x debt/EBITDA forecast for 2025 and 2026, respectively, and interest coverage will be above 5.0x EBITDA/interest expense over same period. The stable outlook reflects Moody's expectations of stable credit metrics, material free cash flow generation and maintenance of good liquidity. The Ba1 ratings on the senior unsecured notes reflect the subordination to the company's secured facilities and guarantees from only the domestic subsidiaries. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING An upgrade in ratings would require less aggressive financial policies and a migration to an unsecured capital structure. Specifically, the ratings could be upgraded if adjusted debt-to EBITDA is below 3.25x, EBITDA-to-interest expense is greater than 6.5x and retained cash flow to-net debt is above 20%. The ratings could be downgraded if there is a deterioration in the company's business profile, credit metrics, or liquidity. Specifically, the ratings could be downgraded if adjusted debt-to EBITDA is above 4.25x, EBITDA-to-interest is below 5.5x or retained cash flow-to-net debt falls below 15%. The principal methodology used in this rating was Packaging Manufacturers: Metal, Glass and Plastic Containers published in April 2025. Westminster, Colorado based Ball Corporation is a global manufacturer of aluminum packaging, primarily for beverages. The company reports in four segments including Beverage Packaging North and Central America, Beverage Packaging South America, Beverage Packaging Europe, and Other (aluminum aerosol and slugs for packaging, non-reportable segments in beverage packaging, corporate). Revenue for the 12 months that ended June 30, 2025 was about $12.4 billion. BANGL LLC: Moody's Withdraws 'B2' CFR Following Debt Redemption --------------------------------------------------------------- Moody's Ratings withdrew all of BANGL, LLC's (BANGL) ratings, including its B2 Corporate Family Rating, B2-PD Probability of Default Rating, B2 senior secured Term Loan (TL) rating, and Ba2 senior secured superior priority revolving credit facility rating. Previously, the ratings were under review for upgrade. The withdrawals follow the redemption of BANGL's outstanding debt. BANGL's ratings review was initiated earlier this year following the announcement of a definitive agreement for MPLX LP (Baa2 stable) to acquire the 55% interest in BANGL that it does not currently own for $715 million in cash. RATINGS RATIONALE The BANGL senior secured term loan and senior secured superior priority revolving credit facility have been fully repaid following the closing of MPLX's acquisition of the remaining third party ownership interest in BANGL. All of BANGL's ratings have been withdrawn since all of its rated debt is no longer outstanding. BANGL was a privately owned pipeline system that transports NGL barrels from the Permian to fractionation and purity markets on the Gulf Coast. The company was a joint venture between WhiteWater, MPLX LP, and Diamondback Energy, Inc. BEAMES ENTERPRISES: Hires Neeleman Law Group as Legal Counsel ------------------------------------------------------------- Beames Enterprises LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Washington to hire Neeleman Law Group PC to serve as legal counsel in its Chapter 11 case. Neeleman Law Group PC will provide these services: (a) assist the Debtor in the investigation of the financial affairs of the estate; (b) provide legal advice and assistance to the Debtor with respect to matters relating to this case and creditor distribution; (c) prepare all pleadings necessary for proceedings arising under this case; and (d) perform all necessary legal services for the estate in relation to this case. Neeleman Law Group PC will receive an hourly rate of $600 for attorney fees for principals, $475 for associates, and $250 for paralegals. The firm received a $6,738 retainer, of which $1,738 was applied to the Chapter 11 filing fee and $5,000 was applied to legal services rendered and costs incurred prior to but in connection with the bankruptcy case. Neeleman Law Group PC is a "disinterested person" within the meaning of Section 101 of the Bankruptcy Code, according to court filings. The firm can be reached at: Jennifer L. Neeleman, Esq. NEELEMAN LAW GROUP PC 1403 8th Street Marysville, WA 98270 Telephone: (425) 212-4800 Facsimile: (425) 212-4802 E-mail: jennifer@neelemanlaw.com About Beames Enterprises Beames Enterprises, LLC operates as an aircraft repair business which started in 2022 and operates out of an aircraft hangar at the Arlington, WA airport. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 25-11808) on June 30, 2025, with $0 to $50,000 in assets and $50,001 to $100,000 in liabilities. Judge Christopher M. Alston presides over the case. Thomas D. Neeleman, at Neeleman Law Group PC, is the Debtor's legal counsel. BENGODWIN REALTY: Seeks Chapter 11 Bankruptcy in Florida -------------------------------------------------------- On August 4, 2025, Bengodwin Realty Inc. filed Chapter 11 protection in the Southern District of Florida. 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 Bengodwin Realty Inc. Bengodwin Realty Inc. is a real estate company based in Homestead, Florida, focusing on property brokerage and related activities. Bengodwin Realty Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-19001) on August 4, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by James A. Poe, Esq. at JAMES A. POE, P.A. BIO GYMNASTICS: Court Extends Cash Collateral Access ---------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Georgia, Gainesville Division issued a third interim order authorizing BIO Gymnastics and Athletics Unlimited, LLC to continue using cash collateral. The third interim order authorized the Debtor to use cash collateral based on the budget filed with the court to fund operations from July 25 to August 25. The interim order granted Tandem Bank and merchant cash advance lenders valid and properly perfected liens on all property (except Chapter 5 avoidance actions) acquired by the Debtor after the petition date similar to their pre-bankruptcy collateral. In addition, the Debtor must make a $6,500 payment to Tandem Bank by August 18 as further protection. A continued hearing is scheduled for September 11. Tandem Bank asserts a first priority lien and interest in the Debtor's assets based on the loan it provided to the Debtor in the principal amount of $730,000. Meanwhile, the Debtor owed $410,960 to the MCA lenders as of the petition date. Tandem Bank is represented by: Leslie M. Pineyro, Esq. Jones & Walden, LLC 699 Piedmont Avenue, NE Atlanta, GA 30308 (404) 564-9300 lpineyro@joneswalden.com About BIO Gymnastics and Athletics Unlimited BIO Gymnastics and Athletics Unlimited, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-20676) on May 14, 2025. Judge James R. Sacca presides over the case. Antoinette C. Martin, Esq., at ACM Law Group, P.C., represents the Debtor as legal counsel. BLOCK INC: S&P Rates $1.5BB Senior Unsecured Notes 'BB+' -------------------------------------------------------- S&P Global Ratings assigned its 'BB+' issue rating and a '4' recovery rating to Block Inc.'s proposed $750 million senior unsecured notes due 2030 and $750 million senior unsecured notes due 2033. The '4' recovery rating indicates S&P's expectation of average (30%-50%; rounded estimate: 45%) recovery in the event of a default. Block (BB+/Stable/--) plans to use the net proceeds of $1.5 billion unsecured notes for general corporate purposes, which may include the repayment or repurchase of existing debt, potential acquisitions, strategic transactions, capital expenditures, investments, and working capital. While this transaction enhances on-balance-sheet liquidity, it also materially increases the company's near- to medium-term gross leverage (debt to adjusted EBITDA) to around 3.0x. S&P said, "We net all but 50% of cash to arrive at our net debt balance. We believe the company will maintain 50% of its cash holdings for daily settlement needs and, to a much lesser extent, various regulatory minimums. We also net liquid investments in short-term and long-term debt securities against gross debt. As of June 30, 2025, Block had about $6.4 billion in unrestricted cash and $510 million of investments in short-term and long-term debt securities." S&P said, "As a result, we continue to expect Block to maintain S&P Global Ratings adjusted net debt to EBITDA at 1.5x-2.0x on a weighted average basis. If the company pursues a large cash- or debt-financed acquisition or engages in dividend payouts to its shareholders using the proceeds of this transaction instead, it could negatively pressure the rating. "In our view, the company is issuing new debt at significantly higher rates than its previous unsecured issuances, which could reduce EBITDA interest coverage to 6x-10x from 13x for rolling twelve months ended June 30, 2025. We expect Block's liquidity to increase to $7.9 billion pro forma for the transaction. The company's expected ample on-balance-sheet liquidity, even after the haircut we apply, continues to support our net leverage forecast of 1.5x-2.0x. "We weigh Block's solid on-balance-sheet liquidity, which provides flexibility, against the lack of a stated leverage tolerance or operating record with the current capital structure, which makes deployment uncertain. The company had about $1.5 billion available under its share repurchase program for its Class A shares as of June 30, 2025. In our view, it is unclear how Block will use its excess cash for business investments, acquisitions, or further shareholder-friendly behavior. "We treat stock compensation expense as an add-back to EBITDA, which is meaningful for Block. For the rolling 12 months ended June 30, 2025, our calculated adjusted EBITDA was $2.8 billion, of which $1.25 billion was add-back from stock compensation. Although this adjustment bolsters the company's profit margins and lowers its leverage, we view the earnings as lower quality compared with the core earnings--and fewer add-backs--of other companies. Our base-case expectation is that the stock compensation add-back will gradually decline as the company continues to grow its core earnings. "We could lower our ratings on Block over the next year if the company pursues a large cash- or debt-financed acquisition, or operating performance deteriorates such that we expect net debt to EBITDA to rise above 2.0x or the company to report negative operating income on a sustained basis. We could also lower the ratings if the company has regulatory enforcement actions, substantial monetary penalties, or curtailed business practices." S&P considers an upgrade unlikely over the next 12 months. Issue Ratings--Recovery Analysis Key analytical factors -- S&P's simulated default scenario contemplates a default in 2030, stemming from increased competition by larger peers into Block's Square ecosystem and the inability of Cash App to increase and monetize its active users, such that cash processing volume and cash flow decreases materially. -- S&P assumes a default or bankruptcy filing occurs because of a weak economy, combined with escalating product development costs, increased competition, unsuccessful acquisitions, higher credit losses, possible regulatory findings, and lower-than-expected growth. -- Block's unsecured notes, convertible notes, and its credit facility would have pari passu unsecured claims in a default scenario. The warehouse funding facilities are secured by customer receivables. -- S&P's recovery analysis assumes the company would maintain significant investments in product development to maintain its user base. S&P said, "We value Block on a going-concern basis and apply a 6.0x EBITDA multiple to our estimate of its emergence EBITDA. We make a favorable cyclicality and operational adjustment to arrive at our emergence EBITDA because we believe it's based on a fixed-charged proxy and is artificially low relative to the rating. We think the 6.0x valuation multiple could be higher than other financial services finance company peers because of the company's fintech strategy." Simulated default assumptions -- Simulated year of default: 2030 -- EBITDA at emergence: about $746 million -- EBITDA multiple: 6.0x -- Revolving credit facility: 85% drawn in the simulated default year -- Warehouse funding facilities: 60% drawn in the simulated default year Simplified waterfall -- Net value available to the secured debtholders (after 5% administrative costs): $4.25 billion -- Priority claims: $1.04 billion -- Net value available to the unsecured debtholders: $3.21 billion -- Senior unsecured debt claims: $6.47 billion -- Unsecured recovery expectations: 30%-50% range; rounded estimate: 45% Note: All debt amounts include six months of prepetition interest. BOWFLEX INC: Court Rejects Dumbbells Class Action Claims -------------------------------------------------------- Clara Geoghegan of Law360 Bankruptcy Authority reports that a New Jersey bankruptcy judge ruled that proposed class actions over recalled dumbbells contravened BowFlex's Chapter 11 plan and sale, rejecting assertions that customers were inadequately notified of the "free and clear" transaction. About Bowflex Inc. Headquartered in Vancouver, Washington, BowFlex Inc. (NYSE: BFX) is a global leader in digitally connected home fitness solutions. BowFlex Inc. and BowFlex New Jersey LLC concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 24-12364) on March 4, 2024. In the petition signed by Jim Barr as chief executive officer, the Debtor disclosed $140,117,000 in total assets and $125,956,000 in total liabilities. Judge Andrew B. Altenburg Jr. presides over the case. Joseph J. DiPasquale, Esq. at Fox Rothschild, LLP represents the Debtor as counsel. BOYD GAMING: Moody's Ups CFR to Ba2 & Senior Unsecured Debt to Ba3 ------------------------------------------------------------------ Moody's Ratings upgraded Boyd Gaming Corporation's ("Boyd") Corporate Family Rating to Ba2 from Ba3, Probability of Default Rating to Ba2-PD from Ba3-PD, and senior unsecured rating to Ba3 from B1. The outlook is stable. Previously the ratings were on review for upgrade. This action concludes the review for upgrade initiated on July 22, 2025, following Boyd's announcement of the sale of its equity stake in FanDuel Group Financing LLC to Flutter Entertainment plc for approximately $1.758 billion. The one-notch upgrade reflects significant improvement in the company's leverage metrics post transaction. Boyd used the proceeds to repay existing debt. Governance is a key consideration in this rating action. Boyd's governance profile reflects its recent actions that have focused on deleveraging, despite its historical use of leverage for acquisitions and growth related capital expenditures. RATINGS RATIONALE Boyd's Ba2 CFR reflects its modest leverage, significant free cash flow generation, and good liquidity despite meaningful growth-related capital expenditures. It also reflects its scale as one of the larger regional gaming operators in terms of net revenue and number of casino assets operated and its geographic diversification. Boyd's Moody's-adjusted debt/EBITDA is in the low-2x range, after repayment of approximately $1.7 billion of debt, pro forma for the transaction. The company used proceeds to fully repay its revolving credit facility and term loan A, which as of June 30, 2025 had outstanding balances of $951 million and $737 million, respectively. Moody's expects leverage will rise modestly as the company utilizes debt to fund future growth, share repurchases, and acquisitions, but will remain below 3.0x over the long term. The company's remaining debt includes a total of $1.9 billion in senior unsecured notes, with maturities in 2027 and 2031. Further, revenues will decline modestly as Boyd will transition from a revenue-sharing model to fixed-fee arrangements, through a revised commercial agreement with FanDuel. Nevertheless, Boyd's revenue profile remains well-aligned with Moody's expectations for the rating category. Boyd's business faces risks from its vulnerability to unfavorable sudden shifts in discretionary consumer spending and the uncertainty regarding the sustainability of EBITDA margins. Additionally, longer-term social risk and fundamental challenges facing Boyd and other regional gaming companies relate to consumer entertainment preferences and US population demographics that Moody's believes will move in a direction that does not favor traditional casino-style gaming. Boyd's SGL-2 rating reflects good liquidity given expected sources and uses over the next 24 month period. Liquidity is supported by Moody's expectations for over $200 million of free cash flow and full availability on its $1.45 billion revolving credit facility. The company has no material debt maturities until 2027. Boyd also has a considerable amount of discrete, owned assets that it can sell to raise cash should the need arise. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company generates consistent and positive free cash flow, revenue is growing, debt-to-EBITDA is sustained below 2.5x and the company adheres to financial policies that maintain low leverage. The ratings could be downgraded if there is a decline in EBITDA from factors such as volume pressures or higher operating costs, liquidity deteriorates or if debt-to-EBITDA is sustained over 3.5x. Acquisitions or shareholder distributions that increase leverage could also lead to a downgrade. Boyd Gaming Corporation is a publicly traded gaming company headquartered in Las Vegas, Nevada. It owns and operates 28 gaming entertainment properties across Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. The principal methodology used in these ratings was Gaming published in June 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. CARING FOR YOU: No Resident Complaints, 2nd PCO Report Says ----------------------------------------------------------- Amanda Celentano, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the District of Maryland her second report regarding the quality of patient care provided by Caring For You Assisted Living, LLC. The report covers the period from June 13 to August 7. On August 5, the the local ombudsman made a visit to Caring For You V (1232 Walters Avenue, Baltimore). The ombudsman spoke with three out of four residents that were in the building at the time. All three residents expressed satisfaction with their stay and care. No environmental concerns were observed. The local ombudsman made an unannounced visit to Caring for You IV (3304 Dudley Avenue, Baltimore on August 5. The ombudsman noted that the home was very clean with comfortable temperature. No residents expressed any complaints and seemed happy with the lunches they had just eaten. No environmental concerns were observed. On August 5, the local ombudsman made a visit to Caring for You II (2928 Edison Highway). The ombudsman spoke with all four residents that were currently residing in the home. Residents provided no complaints and some reported being in the process of moving elsewhere. There were no environmental concerns observed. About Caring For You Assisted Living Caring For You Assisted Living, LLC is a healthcare provider operating multiple assisted living facilities in Baltimore, Maryland. Caring For You Assisted Living sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 25-13464) on April 18, 2025. In its petition, the Debtor reported between $100,000 and $500,000 in assets and liabilities. Judge David E. Rice oversees the case. The Debtor is represented by Aryeh E. Stein, Esq. at Meridian Law, LLC. Amanda Celentano is the patient care ombudsman appointed in the Debtor's case. CARTOPIA II: Gets OK to Use Cash Collateral ------------------------------------------- The U.S. Bankruptcy Court for the Western District of Arkansas authorized Cartopia II, LLC's limited use of cash collateral with the consent of secured creditor Today's Bank. Today's Bank holds valid, first priority security interests in the Debtor's vehicles, leases, and proceeds. The court order authorized the Debtor to use cash collateral in accordance with its budget, which projects total operational expenses of $37,541.61. As adequate protection, Today's Bank will be granted replacement liens on all post-petition collateral and the proceeds thereof, with the same priority, validity and extent as its pre‑bankruptcy liens. In addition, the bank will receive an administrative expense claim, junior to the $25,000 carve-out. Events of default include nonpayment, exceeding budget limits, failure to insure, case dismissal/conversion, or failure to confirm a plan within 180 days of June 25. If the Debtor does not cure the default within 14 days, Today's Bank may suspend cash use and redirect payments from lessees directly to the bank. About Cartopia II LLC Cartopia II LLC is an automotive equipment rental and leasing company based in Rogers, Arkansas. Cartopia II sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ark. Case No. 25-70802) on May 9, 2025. In its petition, the Debtor reported estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Bianca M. Rucker handles the case. Stanley V. Bond, Esq., at Bond Law Office is the Debtor's bankruptcy counsel. Today's Bank, as secured creditor, is represented by: Jay B. Williams, Esq. D. Joel Kurtz, Esq. Williams Law Firm 100 W Main St Gentry, AR 72734-8231 Phone: (479) 736-8800 Fax: (479) 736-3170 joel@williamslawfirm.net CDF INC: Creditor Loses Bid to Obtain Automatic Stay Relief ----------------------------------------------------------- Chief Judge Jerry Oldshue of the United States Bankruptcy Court for the Southern District of Alabama denied without prejudice Carl Parson's motion for relief from automatic stay in the bankruptcy case of CDF Inc. The Bankruptcy Administrator objected to the request. CDF Inc. filed this Chapter 11 Subchapter V, voluntary bankruptcy petition on Jan. 24, 2025. On the Petition Date, CDF's assets included: (1) a single family residence rental property located at 208E. 46th St, Tulsa, OK 74105 which was fully encumbered by a mortgage to American Heritage Bank; (2) a residential lot at 4227 Wood Glen Trace, Orange Beach, AL 36561 which is encumbered by Parson's judgment lien; and (3) a note receivable ("Promissory Note") from Tolliver Enterprise Inc. with a balance of $493,027.33. CDF's proposed Chapter 11 Plan of Reorganization indicates that the $6,083.41 is being paid monthly on the Promissory Note, it will continue to be paid through the end of the proposed plan period, and such income will be used to fund the plan. Carl Parson filed his proof of claim in the amount of $386,987.14 based on pre-petition judgments against CDF and a non-debtor, Don Farley. The Plan proposes to pay the secured portion of Parson's claim over 5 years at 9.5% interest, with the first payment of $2,545.43 due on the effective date of the Plan. The unsecured portion of Parson's debt will be paid a pro rata share of $3,271.07 per month for 60 months. Prior to the Petition Date, Parson instituted a garnishment upon Tolliver Enterprises and was embroiled in litigation with the Debtor in Oklahoma regarding the contest of his garnishment. He seeks relief from the Automatic Stay to appeal a ruling of the Oklahoma Court of Appeals regarding the status of a garnishment and allow all parties to proceed with their state law remedies. The Bankruptcy Administrator objected to the Motion on the grounds that: (1) maintaining the stay would provide the most expedient repayment of Parson's debt; and (2) it is unlikely that he will prevail on the merits should this court terminate the automatic stay. According to Judge Oldshue, the facts of this case justify denying Parson's Motion for Relief at this time. Terminating the automatic stay to allow Parson to continue state court litigation and collection efforts, would cause unnecessary delay and be prejudicial to the Debtor and creditors overall. Duplicitous litigation related to the Debtor's assets in more than one forum is contrary to the spirit and purpose of the Bankruptcy Code, could lead to inconsistent results, and would waste estate resources. Additionally, extraneous litigation could increase the Debtor's expenses, detract from the management of the estate, and deprive the estate of funding that is necessary for an effective reorganization. As Parson's claim is partially secured, and there is no indication that the realty is in jeopardy or declining in value, the lack of adequate protection is not an issue. The Court is also not convinced that any undue hardship would be occasioned upon Parson by continuation of the stay at this juncture or that Parson has any likelihood of success if he were to continue litigation in Oklahoma. With that said, even assuming any likelihood of success, that factor would be outweighed by the hardship on the debtor and detrimental effect on the estate that would necessarily flow from duplicitous litigation. Thus, maintaining the automatic stay and allowing the Debtor to proceed toward confirmation of its Plan providing for payment of Parson's debt along with other creditors, would provide the most efficient and equitable repayment of the Debtor's obligations. Therefore, upon consideration of the totality of the circumstances, the Court finds that sufficient cause does not exist at this time to lift the automatic stay to allow Parson to continue litigation and collection efforts against the Debtor in another forum. The Court concludes good and reasonable grounds exist to deny the Motion without prejudice. A copy of the Court's Order dated August 7, 2025, is available at https://urlcurt.com/u?l=Nsh7Zf from PacerMonitor.com. About CDF Inc. CDF Inc. owns two properties: one located at 208 E. 46th Street, Tulsa, OK 74105, and the other at 4227 Woodglen Trace, Orange Beach, AL 36561. The combined value of these properties is $480,000. CDF Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ala. Case No. 25-10197) on January 24, 2025. In its petition, the Debtor reports total assets of $974,177 and total liabilities of $2,297,454. Honorable Bankruptcy Judge Jerry C. Oldshue handles the case. J. Willis Garrett, III, Esq., at Galloway, Wettermark & Rutens, LLP serves as the Debtor's counsel. CHARTER SCHOOL: Hires Epiq Corporate as Administrative Advisor -------------------------------------------------------------- Charter School Capital, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Epiq Corporate Restructuring, LLC as administrative advisor. The firm will render these services: (a) assist with solicitation, balloting and tabulation of votes, and prepare any related reports; (b) prepare an official ballot certification and, if necessary, testify in support of the ballot tabulation results; (c) assist with preparing and gathering information for the Debtors' schedules of assets and liabilities and statements of financial affairs; (d) provide a confidential data room, if requested; (e) manage and coordinate any distributions pursuant to a Chapter 11 plan; and (f) provide such other processing, solicitation, balloting and other administrative services described in the Engagement Agreement. The hourly rates of the firm's professionals are as follows: Clerical/Administrative Support Waived IT/Programming $30 - $75 Case Managers $85 - $165 Consultants/Directors $165 - $175 Solicitation Consultant $180 Executive Vice President, Solicitation $180 Executives No Charge In addition, the firm will seek reimbursement for out-of-pocket expenses incurred. The firm also received a $10,000 retainer from the Debtor. Kate Mailloux, a senior director at Epiq, 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: Kate Mailloux Epiq Corporate Restructuring LLC 777 3rd Ave., Fl. 12 New York, NY 10017 Telephone: (646) 282-2532 Email: kmailloux@epiqglobal.com About Charter School Capital, Inc. Charter School Capital Inc. is a provider of funding to charter schools across the U.S. Charter School Capital Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11016) on June 8, 2025. In its petition, the Debtor reported between $10 billion and $50 billion in assets and liabilities. Judge Craig T. Goldblatt oversees the case. The Debtor is represented by James R. Risener, III, Esq., Ethan H. Sulik, Esq., Brett Michael Haywood, Esq., and Aaron H. Stulman, Esq., at Potter Anderson & Corroon, LLP. The U.S. Trustee for Region 3 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Charter School Capital, Inc. CIVITAS RESOURCES: S&P Alters Outlook to Stable, Affirms 'BB-' ICR ------------------------------------------------------------------ S&P Global Ratings revised its outlook to stable from positive and affirmed its 'BB-' ratings on Denver-based oil and gas (O&G) exploration and production (E&P) company Civitas Resources Inc. The stable outlook reflects S&P's view that the company will generate positive discretionary cash flow despite production declines of 5%-10% in 2025. It forecasts average funds from operations (FFO) to debt of around 45% and debt to EBITDA of 1.9x through 2026. Civitas reinstated share buybacks before achieving its stated debt target, which will limit near-term debt reduction. S&P said, "We revised our outlook to stable due to the company's lack of debt reduction. We now forecast average FFO to debt of about 45% through 2026, well below our upgrade trigger of 60%. The revision reflects our lower price deck ($55/bbl WTI in 2025; $60/bbl in 2026) compared with our prior review, our expectation for lower production volumes into 2026, and the reinstatement of aggressive share buybacks. Although we incorporate the announced asset divestments of $435 million in our forecast, we expect these factors will result in limited discretionary cash flow available for debt repayment this year." Further, the company also announced a CEO change as it focuses on improving operational execution. The prior board chairman, Wouter van Kempen, will serve as interim CEO until a replacement is found. S&P said, "The company is focused on Permian basin development, however we expect lower total production into 2026. In the second quarter of 2025, Civitas produced 317 mboed (47% oil; 54% Permian) which was 8% lower than 2024. While we expect some organic growth in the third quarter, we expect this will be mostly offset by the announced non-core DJ basin asset divestment (about 10 mboed impact). The Permian basin is still the focus for development with 5 rigs/2 frac crews running. It received about 55% of the capital expenditure (capex) spending so far 2025. In 2026, we assume a production decline of about 5%-10% reflecting our view Civitas would limit reinvestment at lower commodity prices and uncertainty around operational plans following the recent CEO departure. In the DJ Basin, the company has not progressed on securing approval for its Arapa Comprehensive Area Plan (CAP), which could also hinder development. However, we still view scale favorably compared with smaller peers in the 'BB-' category like SM Energy and Matador Resources. "We believe there will be limited discretionary cash flow generation available for debt reduction. Civitas has about 60% of oil volumes hedged for the rest of the year and about 25% next year, leaving cash flows exposed to oil price volatility while carrying higher leverage compared to peers like Chord Energy ('BB'; 231% FFO/debt in first quarter 2025) or Permian Resources ('BB+'; 99% FFO/debt). The company's quarterly dividend of $0.50/share is also higher than peers, and we estimate the company would need about $55-$60 per barrel (/bbl) West Texas Intermediate (WTI) to generate sufficient free cash flow to cover the dividend. After assuming 50% of free cash flow after the fixed dividend is used for buybacks, we forecast the company will generate about $50 million-$100 million of discretionary free cash flow in 2025 and 2026, limiting the potential for material debt reduction this year towards our upgrade threshold. This compares with our prior expectation for $700 million in debt repayment in 2025. "We view Civitas' financial policy as more aggressive compared with peers following multiple changes. In March 2025, Civitas adjusted its financial policy such that 100% of free cash flow after the base dividend would be used for debt reduction. After only one quarter, however, the company reinstated share buybacks well ahead of achieving its stated net debt target of $4.5 billion ($5.3 billion as of June 30, 2025). We expect the company will fund its announced $250 million of accelerated buybacks in August prior to the close of its $435 million of divestments. Our forecast assumes the company will use 50% of free cash flow after fixed dividends for buybacks. Regarding upcoming maturities, after issuing $750 million in unsecured notes to term out a portion of its reserve-based lending (RBL) credit facility draw in May 2025, we assume the company will refinance the $400 million of unsecured notes due October 2026 with an additional RBL draw ($1.9 billion available as of June 30, 2025). Therefore, we do not anticipate the company will achieve its net debt target over the next 12-18 months. "We now assess management and governance as moderately negative due to the track record of high turnover in key roles. With the announced CEO departure, Civitas will have its third CEO since 2021. Further, the company has had three Chief Operating Officers since 2021. We view high turnover as negative for executing a coordinated strategy, as well as introducing some uncertainty around future financial and operational policies. Our revised assessment does not affect our ratings. "The stable outlook reflects our view that the company will generate positive discretionary cash flow despite production declines of 5%-10% in 2025. We forecast average FFO to debt of around 45% and debt to EBITDA of 1.9x through 2026." S&P could lower its rating if FFO to debt approaches 30% on a sustained basis. This would most likely occur if: -- Commodity prices decline below our assumptions and the company does not materially reduce spending or shareholder returns; or -- It does not successfully navigate the Colorado regulatory environment, leading to a material negative effect on development plans. S&P said, "Alternatively, we could also consider a lower rating if the company pursues a more aggressive financial policy. Although unlikely over the next 12 months, we could raise our ratings if it maintains its current scale and sustains FFO to debt of more than 60%." COMERICA INC: Fitch Assigns 'BB+' Rating on $400MM Preferred Equity ------------------------------------------------------------------- Fitch Ratings has assigned a 'BB+' rating to the $400 million preferred equity issued by Comerica Incorporated (CMA). CMA retired its prior issuance of $400 million in July 2025. The preferred equity rating is based on CMA's Viability Rating (VR), which underpins CMA's Issuer Default Rating (IDR) of 'A-'/Negative. Key Rating Drivers The 'BB+' rating on CMA's preferred stock issuance is notched four levels below CMA's VR of 'a-'. The notching includes two for loss severity and two for nonperformance, consistent with the instrument's risk profile assessment and Fitch's Global Bank Criteria. CMA's and Comerica Bank's Long-Term IDR are driven by their intrinsic creditworthiness as expressed by the VR. The VR balances CMA's strong asset quality through various cycles, its historically conservative risk profile and established business model with headwinds in its deposit franchise and rate-driven unrealized losses in its investment portfolio. The Outlook on the IDR is Negative. This reflects diminishing headroom in CMA's VR as reflected by its Key Rating Drivers. Funding and liquidity has been constrained by outflows from its non-interest bearing deposit portfolio amid higher rates, leading to a 17% decline in core deposits since 4Q22. Capital and leverage has been hampered by unrealized bond losses, which lower common equity Tier 1 (CET1) to 8.5% from 11.9% at 2Q25. Asset quality remains among best-in-class but impaired loans have increased and recent loan growth has been led by construction loans. See "Fitch Affirms Comerica's LT IDR at 'A-'; Outlook Remains Negative" on Oct. 3, 2024, for CMA's key rating drivers and sensitivities. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade CMA's Preferred Equity Rating is sensitive to any change in CMA's VR. Fitch communicated in September 2024 that CMA's VR is sensitive to: - Major declines in core deposits and an increase in noncore brokered deposits, approaching 11% of the total; - An inability to manage loan-to-deposit ratios within the peer range and the low 80% levels as outlined by management over time; - A decline in CMA's CET1 ratio to below 10% or its TCE to below 5.5% without a credible plan to rebuild capital ratios within a reasonable timeframe. - Evidence of deterioration in asset quality, which is CMA's rating strength. Should the impaired loans/gross loans ratio rise and remain above 2% (from its current sub-1% level) over the next 12 months, the company's asset quality and overall ratings could be adversely impacted given current headroom and the Negative Outlook. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade CMA's Preferred Equity Rating is sensitive to positive change to the company's VR. Fitch does not foresee any rating factors that would lead to positive ratings momentum in the near term. A revision of the Outlook would likely depend upon Fitch's views of CMA's capital and funding and liquidity. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Viability Ratings The VRs of CMA and Comerica Bank are equalized, reflecting the correlated performance or failure rate for the group as a whole. All U.S. bank subsidiaries carry a common VR regardless of size, as U.S. banks are cross-guaranteed under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989. Long-Term and Short-Term Deposits Comerica Bank's long-term deposits are rated one notch higher than its IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference. U.S. depositor preference gives deposit liabilities superior recovery prospects in the event of default. Fitch rates Comerica Bank's short-term uninsured deposits 'F2', in accordance with its Bank Rating Criteria, based on the bank's long-term deposit rating and Fitch's assessment of its funding and liquidity profile. A long-term deposit rating of 'A' and a funding and liquidity factor score of 'a' are required to assign an 'F1' Short-Term IDR. Subordinated Debt and Preferred Stock CMA's and Comerica Bank's subordinated debt are notched one level below their VR for loss severity. In accordance with Fitch's Bank Rating Criteria, this reflects alternate notching to the base case of two notches due to its view of U.S. regulators' resolution alternatives for entities such as CMA and Comerica Bank, as well as early intervention options available to banking regulators under U.S. law. It includes one notch for loss severity and zero notches for nonperformance. Per Fitch's Bank Rating Criteria, CMA's preferred stock rating of 'BB+' is notched four levels below CMA's VR, encompassing two notches for loss severity and two notches for nonperformance. These ratings are in accordance with Fitch's criteria and assessment of the instruments' nonperformance and loss severity risk profiles. Government Support Rating CMA's and Comerica Bank's Government Support Ratings (GSRs) of 'ns' reflect Fitch's view that senior creditors cannot rely on receiving full extraordinary support from the sovereign in the event that CMA becomes nonviable. In Fitch's view, Dodd-Frank Orderly Liquidation Authority legislation provides a framework for resolving banks that are likely to require holding company senior creditors participating in losses, if necessary, instead of — or ahead of — the company receiving sovereign support. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Sensitivities CMA's and Comerica Bank's VRs would be sensitive to the intrinsic creditworthiness of the group as a whole. CMA's and Comerica Bank's senior unsecured debt-level ratings are generally sensitive to changes in the respective entities' Long-Term IDRs. CMA's and its subsidiaries' subordinated debt and preferred stock would be sensitive to changes in the respective entities' VRs. Comerica Bank's long-term deposit rating is sensitive to changes in its Long-Term IDR. Its short-term deposit rating is sensitive to the company's long-term deposit rating and Fitch's assessment of CMA's funding and liquidity profile. VR ADJUSTMENTS The Business Profile score has been assigned below the implied score due to the following adjustment reason: Market position. The Asset Quality score has been assigned below the implied score due to the following adjustment reason: Historical and future metrics. The Earnings and Profitability score has been assigned below the implied score due to the following adjustment reason: Historical and future metrics. The Capital and Leverage score has been assigned below the implied score due to the following adjustment reason: Core capital calculation. The Funding and Liquidity score has been assigned below the implied score due to the following adjustment reason: Deposit structure. Date of Relevant Committee October 2 2024 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 ----------- ------ Comerica Incorporated Preferred LT BB+ New Rating COMPREHENSIVE INTERVENTIONAL: Seeks to Sell Medical Equipment ------------------------------------------------------------- Comprehensive Interventional Care, PLLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Arizona, to sell Medical Equipment, free and clear of liens, claims, interests, and encumbrances. The Debtors own and maintain various specialized medical equipment, at multiple office locations. The Debtors have ceased operations in several of their prior locations and no longer need certain Equipment located in those locations, as identified in the Sale Equipment List, available for free at https://tinyurl.com/3644p82m The Debtors desire to sell the Equipment for the benefit of the Debtors' estates and creditors. The Debtors' retention of a specialized medical equipment sales firm is essential to maximize the recovery from the liquidation of the Equipment, and IncMD has the expertise and market access required to obtain fair market value for Debtors’ specialized assets. The Sale Equipment List does not include any Equipment in which Siemens Financial Services, Inc. and Siemens Medical Solutions USA, Inc., or any other creditor of the Debtors hold an interest. None of Siemens' collateral will be marketed or liquidated by IncMD. The Sale Equipment List is organized by the location of each item. It is detailed and includes a product description, condition, and fair market value for each item. The fair market values are based on IncMD’s professional judgment, experience, and valuation methods, taking into account industry standards and comparable sales. The Sale Equipment List includes 1,445 items. The Debtors believe that IncMD is well suited to perform marketing and liquidation services for the Debtors. IncMD has expertise in sales for the medical industry and the equipment used. IncMD currently serves as the Debtors’ valuation company. IncMD is willing to serve as the Debtors’ marketing and liquidation company. The sales commission fee structure to be billed by IncMD is contained in the Engagement Letter. IncMD is to be paid commissions on Net Profits as follows: 15% for items sold under $5,000; 10% for items sold between $5,000 and $10,000; and 7.5% for items sold over $10,000. IncMD will not receive any upfront fees and will be compensated from sale proceeds. IncMD shall also be reimbursed out of the sale proceeds, 50% of the reasonable and necessary Sale Costs it incurs in connection with advertising, listing and selling the Equipment on the Websites. IncMD will not seek reimbursement for any other sale costs except for the aforementioned 50% of the fees charged by the Websites. IncMD does not hold or represent any interest adverse to the Debtors or their estates. The Debtors respectfully request that, along with approval of IncMD to market and liquidate the Equipment on the Sale Equipment List, the Court also authorize IncMD to sell the Equipment pursuant to the Sale Procedures without further order of the Court. The Debtors seek to sell the Equipment through private sales, conducted by IncMD's professional marketing and appraisal services. IncMD shall list the Equipment for sale on Bimedis.com and Dotmed.com. The Equipment will be made available for public viewing and purchase on the Websites within three business days following the entry of a Court order approving the Equipment Liquidation Motion. Each listing will include a detailed product description and photographs. IncMD shall advance the reasonable and necessary fees and charges incurred in connection with advertising, listing, and selling the Equipment on Bimedis.com and Dotmed.com (Sale Costs), subject to 50% reimbursement by the bankruptcy estates. The current listing fees are $3,000 per year for Bimedis.com (unlimited sales) and $500 per month for Dotmed.com (unlimited sales). IncMD estimates that the total Sale Costs will be approximately $4,500 ($3,000 for Bimedis and $1,500 for three months of Dotmed), with the possibility of incurring additional $500 monthly fees to Dotmed depending on the duration and volume of sales. The Debtors shall reimburse 50% of the Sale Costs advanced by IncMD to IncMD, with such reimbursement to be made solely from the proceeds of the Equipment sales and subject to an approved fee application for IncMD. The Debtors shall not be required to pay their 50% share of the Sale Costs out of pocket. Notwithstanding the foregoing, IncMD may also seek to recover some or all of the Sale Costs directly from buyers of the Equipment to the extent permitted by the applicable terms and practices of the respective online sales platforms. Buyers shall be responsible for payment of any applicable sales tax, which shall be collected by IncMD, if required by law, and remitted to the appropriate taxing authority. IncMD shall provide prospective buyers with clear information regarding payment methods, deadlines, and acceptable forms of payment. IncMD will also advise buyers of the procedures for arranging removal and transportation/shipping of purchased Equipment. This information will be posted on the respective listing platforms and conveyed directly to IncMD's internal buyer contacts. Buyers shall be solely responsible for all costs associated with dismantling, removal, packaging, loading, shipping, insurance, and delivery of the Equipment from its current location. IncMD shall coordinate with buyers to ensure timely removal and may assist with shipping or referrals to third-party logistics providers if necessary. If any Equipment remains unsold after 30 days, from the initial listing, IncMD may adjust pricing provided that such adjustments do not exceed twenty percent (20%) of the original asking price. This process may be repeated to facilitate timely liquidation. About Comprehensive Interventional Care, PLLC Comprehensive Interventional Care Centers PLLC is a multispecialty medical practice with a team of experts in interventional radiology, vein care, podiatry, cardiology, and vascular surgery, offering cutting-edge treatments with minimal risk and recovery time. They focus on treating a wide range of conditions, including neuropathy, vascular diseases, vein issues, ulcers, and heart disease. Comprehensive Interventional Care Centers PLLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No.25-01225) on February 13, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. The Debtor is represented by Wesley D. Ray, Esq. at Sacks Tierney PA. CRC INSURANCE: Fitch Updates July 30 Ratings Release ---------------------------------------------------- Fitch Ratings updated a release on CRC Insurance Group originally on published July 30, 2025. The updated release is as follows: Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) for CRC Insurance Group, LLC and CRC Platform Midco, L.P. at 'B'. The Rating Outlook is Stable. The ratings impact approximately $6.2 billion of debt outstanding as of June 2025, pro forma for an incremental term loan being raised to finance M&A activity. The ratings reflect CRC's solid market position in the U.S. insurance brokerage landscape, stable and recurring business model, solid EBITDA margins and exposure to a recession resilient end market. However, weak balance sheet metrics, including high EBITDA leverage and low interest coverage, continue to weigh against the ratings. Key Rating Drivers High Leverage, Weak Coverage: CRC was spun off from Truist Financial Corporation (NYSE: TFC; A/Stable) and acquired by private equity firms Stone Point Capital and Clayton, Dubilier & Rice (CD&R), among others. CRC has relatively weak credit metrics, with EBITDA leverage projected to be 7.0x or higher over the next few years. Reported gross leverage is lower at 6.8x, pro forma at June 2025. EBITDA interest coverage is also low and expected to be near 2.0x in the next few years. This is among the low-end of Fitch-rated industry peers and limits operating flexibility at the current rating. Stable Competitive Position: The company is well positioned in the fragmented U.S. broker industry, with significant scale compared to many brokers, but smaller than large global leaders. Fitch estimates CRC could approach $3 billion or more total revenue in the next few years, with Fitch-defined EBITDA estimated in the $900 million to $1 billion range by 2026-2027. CRC's business includes the largest U.S. insurance wholesaler (operating under the CRC Specialty brand), one of the largest managing general agents (MGA) platforms (AmRisc & Starwind) and a leading independent commercial title agent (Kensington Vanguard). Aggressive M&A Strategy: Since separating from TFC in 2024, the company has completed several divestitures and acquisitions that have evolved its business. In 2H 2024, it divested McGriff for $7.75 billion and sold smaller life insurance operations. It plans to acquire several companies in 2025 for more than $1 billion combined. The Atrium Underwriting Group Limited acquisition may boost EBITDA by roughly 5% versus the current run-rate and further expand CRC into high-margin, specialty insurance operations. Fitch expects CRC to remain acquisitive, spending $500 million-$700 million annually on acquisitions in the coming years. Healthy Organic Growth: CRC's historical growth profile has supported the credit profile but has slowed recently. Fitch attributes this partly to overall slowing P&C trends in recent quarters, as seen among various public insurance brokers in 1H25. Further slowing in P&C pricing and organic growth poses some risks. However, CRC's high client retention and ongoing expansion through producer recruitment should drive revenue growth over time. Diversified Revenue Profile: CRC's ratings benefit from some diversification, but wholesale P&C brokerage accounts for over half of total revenue. CRC provides wholesale P&C brokerage, underwriting, and employee benefits solutions. Most of its business is in the U.S., though recent M&A and producer recruitment have broadened its regional exposure over the past few years, with some concentration in the southeastern U.S. CRC has limited concentration in terms of carriers and clients. Stable Industry: CRC operates a predictable business model in an industry that has performed well across economic cycles. The insurance brokerage sector remained stable during the 2008-2009 financial crisis and the 2020 COVID-19 pandemic, with major insurance brokers seeing only low- to mid-single-digit organic revenue declines from 2008 to 2010. Fitch attributes this to the essential nature of insurance and benefits services and the brokerage business model's adjustable cost structure. Healthy Cash Flows: Fitch projects mid- to high-single-digit free cash flow (FCF) margins as a percentage of revenue in the coming years, which is relatively healthy and supports the credit profile. CRC's cash generation is negatively impacted by meaningful cash interest expense given high leverage. Like industry peers Fitch reviews, CRC has relatively low capital expenditures and working capital needs. This allows the company to deploy excess cash flow toward organic and acquisitive growth opportunities. Peer Analysis CRC competes in a fragmented insurance brokerage and benefits services landscape, including local/regional companies, national agents and large multi-national brokers. Fitch rates several comparable companies in the insurance brokerage and business services industries in terms of scale, operating profile, and business model. The 'B' IDR reflects CRC's strong historic growth profile, solid profitability, and resilience of its business model and the industry in which it competes. This is offset by a high EBITDA leverage and relatively weak interest coverage. CRC is one of the largest U.S. insurance brokers, with pro forma revenue of approximately $2.5 billion as of June 2025. However, it remains relatively small and has higher financial leverage compared to larger global brokers such as Willis Towers Watson plc (BBB+/Stable), Aon plc (BBB+/Stable), Marsh & McLennan Companies, Inc. (A-/Stable), and Arthur J. Gallagher & Co. (AJG; BBB+/Stable). CRC also has weaker credit metrics than U.S.-centric brokers including Brown & Brown, Inc. (Brown; BBB/Stable), which has materially larger scale, and Ryan Specialty Holdings, Inc. (BB+/Stable). Ryan Specialty operates with relatively similar revenue and earnings scale to CRC. Relative to Canadian insurance broker Navacord Intermediate Holdings, Inc. (B/Stable), CRC is much larger but similarly highly leveraged and operates with low EBITDA interest coverage. Key Assumptions - Organic revenue growth estimated in the mid-single digit range over the ratings horizon. Incremental revenue assumed from new M&A. - EBITDA margins are projected to expand modestly in the next few years, benefiting from higher-margin M&A, cost savings and some operating leverage on revenue growth; - Cash taxes and working capital projected to be a relatively modest use of cash flow in the next few years; - Fitch assumes continued M&A over the ratings horizon, with additional cash out flows also related to purchase and integration costs; - SOFR declines to the high-3% range over the ratings horizon. Recovery Analysis For entities rated 'B+' and below, where default is closer and recovery prospects are more meaningful to investors, Fitch undertakes a tailored, or bespoke, analysis of recovery upon default for each issuance. The resulting debt instrument rating includes a Recovery Rating or published 'RR' (graded from RR1 to RR6), and is notched from the IDR accordingly. In this analysis, there are three steps: (i) estimating the distressed enterprise value (EV); (ii) estimating creditor claims; and (iii) distribution of value. Fitch assumes CRC would emerge from a default scenario under the going concern approach. Key assumptions used in the recovery analysis are as follows: - Fitch estimates a going concern EBITDA of approximately $675 million, or below the company's current run-rate EBITDA. This lower level of EBITDA considers competitive and/or company-specific pressures that hurt earnings in the future while also considering that its M&A strategy could lead to a much higher EBITDA base before any risk of bankruptcy. - Fitch assumes a 6.5x emergence EV/EBITDA multiple, which is validated by historic public company trading multiples, industry M&A and past reorganization multiples Fitch has seen across various industries. - Fully drawn revolving credit facility at time of bankruptcy. - 10% administrative claims. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Interest coverage, defined as EBITDA/interest paid, sustained below 1.5x; - (CFO-Capex)/Debt sustained near 1% or below; - EBITDA leverage, defined as debt/EBITDA, is sustained above 8.0x; - Deterioration in operating fundamentals that lead to weaker revenue trends, margin underperformance, and compression of cash flows. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage, defined as debt/EBITDA, is sustained below 6.5x; - (CFO-Capex)/Debt sustained above 5%. Liquidity and Debt Structure CRC's liquidity is adequate and should enable growth investments while providing sufficient downside protection for the rating. On a pro forma basis, including the pending incremental first lien term loan issuance and Atrium acquisition, the company will have cash of $183 million as of June 2025. Liquidity is further supported by stable and positive cash generation in the business and nearly $1.2 billion of availability on its first-lien senior secured revolver. Fitch projects FCF to remain positive over the forecast, although one-time expenses and higher interest expense will constrain cash flow generation. As of June 2025 (pro forma for the incremental term loan issuance), the company's capital structure consisted of $5.2 billion of first lien, senior secured debt and $1.0 billion of second lien term loans. Its first lien senior secured debt as of June 2025, pro forma the incremental term loan to finance M&A, included an approximately $1.2 billion revolver, $2.2 billion of term loans maturing in 2031 and $3.0 billion of senior secured notes. Additionally, the company had $1.0 billion of second lien term loans. Fitch expects CRC will continue to rely on debt issuances and internal cash generation in the future to finance M&A. Issuer Profile CRC Insurance Group, LLC (formerly TIH Insurance Holdings, LLC) is a diversified U.S. insurance distribution firm, with wholesale specialty P&C insurance brokerage and managing general agent (MGA) operations. It was separated from Truist Financial Corporation in May 2024 and founded in 1982. 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 ----------- ------ -------- CRC Platform Midco, L.P. LT IDR B Affirmed CRC Insurance Group, LLC LT IDR B Affirmed senior secured LT B+ Affirmed RR3 Senior Secured 2nd Lien LT CCC+ Affirmed RR6 CURIS INC: Net Loss Narrows to $8.6M for Fiscal Q2 -------------------------------------------------- Curis, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $8.6 million on $2.7 million of revenues for the three months ended June 30, 2025, compared to a net loss of $11.8 million on $2.5 million of revenue for the three months ended June 30, 2024. For the six months ended June 30, 2025, the Company reported a net loss of $19.2 million on $5.1 million of revenue, compared to a net loss of $23.7 million on $4.6 million for the same period in 2024. The Company had an accumulated deficit of $1.3 billion as of June 30, 2025, and used $15.3 million of cash in operations for the six months ended June 30, 2025. The Company expects to continue to generate operating losses in the foreseeable future. As of June 30, 2025, the Company had $29.2 million in total assets, $43.2 million in total liabilities, and $14 million in total stockholders' deficit. In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (Subtopic 205-40), the Company has concluded there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the Condensed Consolidated Financial Statements are issued. Based on the Company's $10.1 million of existing cash and cash equivalents at June 30, 2025, together with the proceeds from the July 2025 Offerings, recurring losses and cash outflows from operations since inception, an expectation of continuing losses and cash outflows from operations for the foreseeable future and the need to raise substantial additional capital to finance the Company's future operations, the Company concluded it does not have sufficient cash on hand to support current operations within the next 12 months from the date of filing this Quarterly Report on Form 10-Q. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. The Company plans to seek additional funding through a number of potential avenues, including private or public equity financings, collaborations, or other strategic transactions. The Company has faced and expects to continue to face substantial difficulty in raising capital. The Company may not be able to obtain funding on acceptable terms, or at all. The terms of any financing may adversely affect the holdings or the rights of the Company's stockholders. The Company's ability to raise additional funds will depend on, among other factors, financial, economic and market conditions, as well as maintaining the Company's listing on Nasdaq, many of which are outside of its control, and it may be unable to raise financing when needed, or on terms favorable to the Company. If necessary funds are not available, the Company will have to delay, reduce the scope of, or eliminate its development of emavusertib, potentially delaying the time to market for or preventing the marketing of emavusertib, which would have a material adverse effect on the Company's operations and future prospects. If the Company is unable to obtain sufficient capital, the Company would be unable to fund its operations and may be required to evaluate alternatives, which could include dissolving and liquidating its assets or seeking protection under the bankruptcy laws, and a determination to file for bankruptcy could occur at a time that is earlier than when the Company would otherwise exhaust its cash resources. If the Company decides to dissolve and liquidate its assets or to seek protection under the bankruptcy laws, it is unclear to what extent the Company would be able to pay its obligations, and, accordingly, it is further unclear whether and to what extent any resources would be available for distributions to stockholders. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/ah6rknrj About Curis Lexington, Mass.-based Curis, Inc. is a biotechnology company focused on the development of emavusertib (CA-4948), an orally available, small molecule inhibitor of Interleukin-1 receptor associated kinase, or IRAK4. IRAK4 plays an essential role in the toll-like receptor, or TLR, and interleukin-1 receptor, or IL-1R, signaling pathways, which are frequently dysregulated in patients with Cancer. Boston, Mass.-based PricewaterhouseCoopers, the Company's auditor since 2002, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has incurred recurring losses and cash outflows from operations that raise substantial doubt about its ability to continue as a going concern. D & B PHARMACY: Gets Final OK to Use Cash Collateral ---------------------------------------------------- D and B Pharmacy Corporation received final approval from the U.S. Bankruptcy Court for the Southern District of New York to use cash collateral. The final order authorized the Debtor to pay its expenses from the cash collateral in accordance with its budget, subject to a 10% variance per line-item. This order came five days after the Debtor's interim authority to use cash collateral expired on August 8. As protection for any diminution in value of their collateral, McKesson Corporation, a senior lienholder, will receive $5,000 monthly while Burlington Drug Company, Inc., also a senior lienholder, will receive $2,000 monthly. In addition, both senior lienholders will be granted post-petition replacement lien on and security interest in all of the Debtor's assets constituting their pre-bankruptcy collateral and the proceeds thereof. The replacement liens do not apply to avoidance claims. In case the replacement liens prove to be inadequate, the senior lienholders will be granted superpriority administrative expense claims, subject to a fee carveout. Unless there is a "termination event," the Debtor is allowed to continue to use cash collateral or until such later time as the court may permit. Termination events include the Debtor's failure to comply with the final order, which is not resolved after three days written notice; entry of an order terminating the final order; and the Debtor granting, creating, incurring or suffering to exist any post-petition liens or security interests other than those granted pursuant to the final order. McKesson is represented by: Jeffrey K. Garfinkle, Esq. Buchalter, A Professional Corporation 18400 Von Karman Avenue, Suite 800 Irvine, CA 92612 Telephone: (949) 760-1121 jgarfinkle@buchalter.com Burlington is represented by: Bruce S. Goodman, Esq. Zeichner Ellman & Krause, LLP 730 Third Avenue New York, NY 10017 Telephone: (212) 223-0400 bgoodman@zeklaw.com About D and B Pharmacy Corporation D and B Pharmacy Corporation offers pharmacy services, vaccines, and health screenings. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. N.Y. Case No. 25-22402) on May 9, 2025. In the petition signed by Paul Roldan, president, the Debtor disclosed up to $500,000 in assets and up to $10 million in liabilities. Judge Kyu Young Paek oversees the case. Anne Penachio, Esq., at Penachio Malara LLP, represents the Debtor as legal counsel. D RAIL TRANSPORT: Hires Stone & Baxter LLP as Counsel ----------------------------------------------------- D Rail Transport, LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Georgia to employ Stone & Baxter, LLP as counsel. The firm will render these services: a. give Debtor legal advice with respect to the powers and duties of a Debtor-in-Possession in the continued operation of the business and management of Debtor's property; b. prepare on behalf of Debtor, as a Debtor-in-Possession, necessary applications, motions, answers, reports, and other legal papers; c. continue existing litigation, if any, to which Debtor-in-Possession may be a party and to conduct examinations incidental to the administration of its estate; d. take any and all action necessary to ensure the proper preservation and administration of Debtor's estate; e. assist Debtor-in-Possession with the preparation and filing of its Statements of Financial Affairs and schedules and lists as are appropriate; f. take whatever action is necessary with reference to the use by Debtor of its property pledged as collateral, including cash collateral, to preserve the same for the benefit of Debtor and secured creditors in accordance with the requirements of the Bankruptcy Code; g. assert, as directed by Debtor, all claims Debtor has against others; h. assist Debtor in connection with claims for taxes made by governmental units; i. assist Debtor in preparation of its Plan of Reorganization and confirmation thereto; and j. perform all other legal services for Debtor as Debtor-in-Possession that may be necessary. The firm's standard hourly rates range between $225 and $405 for each attorney, and $135 for paralegals and research assistants, including all travel time. Stone & Baxter received an initial deposit of $31,738 from the Debtor, which includes the filing fee. Mr. Taylor 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: G. Daniel Taylor, Esq. E. Tate Crymes, Esq. Stone & Baxter, LLP 577 Third Street Macon, GA 31201 Tel: (478) 750-9898 Fax: (478) 750-9899 Email: dtaylor@stoneandbaxter.com tcrymes@stoneandbaxter.com 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. DASHFIRE LLC: Hires Werner Auction Group as Auctioneer ------------------------------------------------------ Dashfire, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Minnesota to employ Werner Auction Group, Inc. d/b/a Bid-2-Buy as auctioneer. The firm will assist the Debtors in selling the Debtors' remaining assets including but not limited to: a. racking; b. a large tank; c. office furniture and equipment; and d. other miscellaneous property, The firm will be paid at these rates: a. $1,000 marketing fee; b. $27.50 per hour per person for labor; c. up to $1,000 to repair the reverse function on a forklift; d. 15 percent of the gross sale price of each item; e. buyer's premium. The marketing and labor costs would normally come from the 15 percent commission, but need to be billed separately because this is a small auction. Frank Aiello, a principal at Werner Auction Group, Inc., 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: Frank Aiello Werner Auction Group, Inc. PO Box 178 Elk River, MN 55330 Tel: (763) 274-0330 About Dashfire LLC Dashfire, LLC, filed a Chapter 11 petition (Bankr. D. Minn. Case No. 25-41264) on April 22, 2025, listing up to $500,000 in assets and up to $1 million in liabilities. Lee Egbert, president of Dashfire, signed the petition. Judge Katherine A. Constantine oversees the case. Karl Johnson, Esq., at MJB Law Firm PLLC, is the Debtor's bankruptcy counsel. DAYTON DEVELOPMENT: Court Okays Applications to Employ Counsel -------------------------------------------------------------- Judge Tyson A. Crist of the United States Bankruptcy Court for the Southern District of Ohio will grant Dayton Development Partners, LLC's (I) Application for Order Authorizing the Employment of Goering & Goering, LLC as Attorneys for the Debtor; and (II) Amended Application for Order Authorizing the Employment of Michael A. Galasso as Attorney for the Debtor. Application to Employ Goering & Goering LLC On April 18, 2025, Debtor filed its Application to employ Goering & Goering, LLC, pursuant to Sec. 327(a) and (d), as their attorneys. Eric Goering asserts that his firm is both well qualified and uniquely able to represent the Debtor in this Chapter 11 case in a most efficient and timely manner. The services Debtor proposes Mr. Goering's firm will handle include those required to conduct this chapter 11 case. Further, Mr. Goering declares that his firm does not have a relationship with any entities, attorneys, or accountants that would be adverse to the Debtor, its affiliates or the Estate. In short, Mr. Goering believes his firm is a disinterested person as defined in section 101(14), as modified by section 1107(b), and that his firm holds no interest adverse to the Debtor and their estate as to the matters with respect to which it is to be employed. Mr. Goering's Supplemental Declaration states that he was paid retainers of $10,000 and $40,000 -- a total of $50,000 -- on April 11 and 18, 2025, respectively, in conjunction with being retained by the Debtor on April 11, 2025. Attached to his Supplemental Declaration are copies of a Legal Services Contract dated April 11, 2025, pursuant to which Mr. Goering was retained, which, at least as to the original retainer, indicates the money was paid in advance. The Legal Services Contract also provides that the hourly rates agreed to are $600 for Mr. Goering, $400 for Alexis Mize, $350 for Abby Swartz, and $175 for paralegals. Application to Employ Mr. Galasso (Robbins, Kelly, Patterson & Tucker, LPA) Mr. Galasso's Amended Application provides that he is to be retained as litigation counsel to litigate the lease termination issues with The Surgery Center, in state court or in an adversary proceeding. Authorization is sought under Secs. 327(e) and 328(a). Mr. Galasso's current (as of April 10, 2025) hourly rate is $450. Law clerks and paralegals at his firm are charged at hourly rates of $100 to $195. Notably, the letter agreement states that it is Mr. Galasso's firm's policy to request a retainer in connection with litigation matters and his firm requested a retainer of $7,000. There was no mention (no disclosure) of whether Mr. Galasso or his firm received any such retainer or, resultantly, from whom or which entity it may have been or was supposed to be paid. Section 329(a) requires that an attorney representing a debtor file a statement with the Court of the compensation paid, if such payment was made within one year before the petition date, and the source of such compensation. So, presumably, Mr. Galasso was not paid anything prior to this bankruptcy. But it appears that Mr. Galasso has been representing the Debtor to file an eviction action in state court against The Surgery Center, which The Surgery Center has removed to this court (and will be addressed separately). The Surgery Center did not ask the Court to deny the Applications. Rather, it limited its objection to significant questions regarding the sources and payment of professional fees and asserted that at a minimum, additional disclosures are required. The Court finds that employment of the Debtor's counsel -- both chapter 11 counsel and special counsel -- should be approved at this time. Mr. Goering and his firm are found, at this time based on the disclosures made, to not hold or represent an interest adverse to the estate and to be disinterested persons, as defined under Sec. 101(14), as modified by Sec. 1107(b). Further, the Court finds that employment of Mr. Galasso and his firm by the Debtor would be in the best interest of estate, and that Mr. Galasso and his firm do not represent or hold any interest adverse to the Debtor or to the estate with respect to the matter on which they are to be employed. Thus, in the absence of any remaining objection to the Debtor's employment of the proposed chapter 11 counsel and special counsel, the Court approves the Applications on the terms set forth in this Order. A copy of the Court's Order dated August 4, 2025, is available at https://urlcurt.com/u?l=fbdcI8 About Dayton Development Partners LLC Dayton Development Partners LLC is a single-asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). It owns the property located at 2210 Arbor Boulevard, Dayton, Ohio 45439, which is currently valued at $8.5 million. Dayton Development Partners LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ohio Case No. 25-30699) on April 2, 2025. In its petition, the Debtor reports total assets of $8,600,000 and total liabilities of $7,997,257. Honorable Bankruptcy Judge Guy R. Humphrey handles the case. The Debtor is represented by Eric W. Goering, Esq. at GOERING & GOERING. DB BOONEVILLE: Seeks to Hire Hilco Real Estate as Consultant ------------------------------------------------------------ DB Booneville LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Iowa to hire Hilco Real Estate Appraisal, LLC to serve as its real estate consultant. HREA will provide these services: (a) provide an appraisal of the Debtor's real estate property; (b) complete the tasks stated in the section titled Scope of Work in the Engagement Letter Agreement; and (c) provide expert testimony at all hearings and trials regarding the value of the property appraised. HREA will receive a fee of $7,500 for the preparation of the appraisal, with a retainer of $3,750 due upon engagement and the balance due upon delivery of the final appraisal report. The fee for expert testimony will be $650 per hour, plus travel fees of $1,000 per day and reimbursement of all travel-related costs. HREA 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: John C. Satter Hilco Real Estate Appraisal, LLC 5 Revere Dr. Suite 300 North Brooke, IL 60062 About DB Booneville Inc. DB Booneville Inc., also known as the Village at Sugar Creek, is a real estate company based in Urbandale, Iowa. It operates in property development and ownership, including residential properties. The company has been involved in various developments such as the Village at Sugar Creek, a mixed-use project offering multifamily housing, retail, office spaces, and townhomes in West Des Moines. DB Booneville sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Iowa Case No. 25-00817) on May 13, 2025. In its petition, the Debtor reported estimated assets between $1 million and $10 million and estimated liabilities between $10 million and $50 million. Judge Lee M. Jackwig handles the case. The Debtor is represented by J. Kevin Benjamin, Esq., at Benjamin Legal Services PLC. DCLI BIDCO: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable ------------------------------------------------------------ Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) of DCLI BidCo LLC, (d/b/a Direct ChassisLink Inc.; DCLI) at 'BB-'. The Rating Outlook is Stable. Fitch has also affirmed the 'BB' rating assigned to DCLI's $500 million, 7.75% senior secured second-lien notes due November 2029. Today's rating actions have been taken as part of a periodic review of North American commercial fleet management companies, which is comprised of seven publicly rated firms. Key Rating Drivers Established Market Position: The ratings affirmation reflects DCLI's franchise and established market position as the largest container chassis lessor in North America. The ratings also reflect the standardized nature and relatively long useful life of its chassis, which mitigates residual value risk. Strong asset quality, solid liquidity given stable operating cash flow, and low balance sheet leverage also support the ratings. In addition, the ratings reflect management's depth, experience and track record in managing chassis. Monoline Business Model: Rating constraints include DCLI's monoline business strategy, which is exposed to global trade levels, and concentrated customer base. However, the domestic and marine segments focus on different industries, providing some degree of diversification against cyclical downturns. Weak profitability on a pretax return on average assets (ROAA) basis and limited funding flexibility stem from its fully secured funding profile. In addition, DCLI faces potential governance risks compared to larger, public peers and potential variability in strategic and financial objectives. Solid Franchise: DCLI is a market leader in the container chassis leasing sector, with an estimated two-thirds market share in the domestic 53-foot segment and approximately 20% in the marine segment. The company owned or managed approximately 290,000 marine and domestic chassis as of March 31, 2025. This franchise strength and scale affords the company efficient operations and sufficient inventory to meet demand requirements. DCLI has a long track record in chassis leasing and a solid management team with leasing industry experience. Concentrated Customer Base; Strong Asset Quality: DCLI's customer base is concentrated, with the top 10 customer contracts accounting for over half of its revenue. Still, asset quality remains strong given the conservative depreciation policy and the long economic life of its assets. In addition, chassis can be refurbished at a steep discount to the cost of a new chassis to significantly extend its useful life. DCLI's impairment ratio has averaged 0.8% from 2021-2024, and impairments were just 0.2% in 1Q25. Weak Earnings: DCLI reported weak earnings results in the trailing twelve months (TTM) ended March 31, 2025, with a pretax ROAA of negative 3.1% due to higher operating costs and selling, general and administrative expenses from a larger chassis pool. This is below the average of 1% from 2021-2024, which was within Fitch's 'b and below' category earnings and profitability benchmark range of 0%-1% for balance sheet intensive finance and leasing companies with a sector risk operating environment (SROE) score in the 'bbb' category. Fitch expects earnings metrics will return to historical averages in the medium term given recent customer acquisitions. Appropriate Leverage: Fitch primarily assesses DCLI's leverage on a debt-to-tangible equity basis. DCLI's leverage was 1.6x at March 31, 2025, which was within Fitch's 'bbb' category quantitative benchmark range of 0.75x-4x for balance sheet intensive finance and leasing companies with a SROE in the 'bbb' category. Fitch expects leverage to decline modestly from current levels given the reduction in planned chassis deliveries in 2025. Fitch considers total debt to adjusted EBITDA, which adds back one-time nonrecurring and noncash items from EBITDA, as a complementary metric. On this basis, leverage was 5.6x in the TTM ending March 31, 2025, in line with that of YE24, given stable reported earnings and slightly lower debt level. Fitch expects cash flow leverage will decline to be within DCLI's target range of 4.5x-5x within the Outlook horizon, driven by earnings growth and less borrowings as deliveries slow. Fully Secured Funding Profile: As of March 31, 2025, DCLI's funding profile was fully secured, which allows the company to match-fund its chassis pool from a rate and duration perspective. However, the reliance on secured funding constrains funding flexibility in times of stress. Fitch would view the addition of an unsecured funding component favorably. Sound Liquidity and Coverage: Fitch believes DCLI's liquidity profile is sound. The company had $11 million of cash at March 31, 2025 and $1.2 billion of available committed capacity from its ABL facility, with no material debt maturities coming due in the next 12 months. Interest coverage (adjusted EBITDA to interest expense) was 2.8x for TTM ending March 31, 2025, which remains solid, but below the four-year average of 3.5x from 2021-2024. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Persistent reduction in fleet utilization and/or lease rates. - Weakening of the liquidity profile as evidenced by lower operating cash flows and interest coverage. - A sustained increase in balance sheet leverage above 3x or inability to reduce and sustain cash flow leverage at 5x-or-below, particularly if driven by outsized dividends to the parent or material impairments. - Inability to refinance the secured funding facility. - Loss from bankruptcy and/or material credit deterioration of a top lessee relationship. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Enhanced earnings consistency through cycles. - Addition of an unsecured funding component, such that unsecured debt was maintained at or above 20% of total debt. - Improved lessee diversification and/or credit quality. - Maintenance of cash flow leverage below 3.5x. - Maintenance of a solid liquidity profile as evidenced by sufficient cash on hand and ABL availability to fund operations. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS DCLI's senior secured debt rating is one-notch above the Long-Term IDR and reflects the firm's low leverage and above average recovery prospects in a stress scenario. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The senior secured debt rating is primarily sensitive to changes in DCLI's Long-Term IDR and secondarily to the relative recovery prospects of the notes. A meaningful decrease in recovery prospects could result in the senior secured debt rating being equalized or notched down from the IDR. On the other hand, the creation of a separate collateral pool for the secured notes, which enhances recovery prospects, could result in further notching of the rating. 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 for the following reason: Business model (negative). The Asset Quality score has been assigned below the implied score for the following reason: Concentrations; Asset performance (negative). The Capitalization and Leverage score has been assigned below the implied score for the following reason: Risk profile and business model (negative). The Funding, Liquidity and Coverage score has been assigned below the implied score for the following reason: Funding flexibility (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 ----------- ------ ----- DCLI BidCo LLC LT IDR BB- Affirmed BB- Senior Secured 2nd Lien LT BB Affirmed BB DEF HOLDING: U.S. Trustee Unable to Appoint Committee ----------------------------------------------------- The U.S. Trustee for Region 18 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of DEF Holding, LLC. About DEF Holding LLC DEF Holding, LLC is a holding company that owns a single real estate asset located at 24710 104th Avenue SE in Kent, Washington. The property is valued at approximately $3.7 million. DEF Holding LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 25-11893) on July 10, 2025. In its petition, the Debtor reported total assets of $3,700,000 and total liabilities of $1,600,000. Honorable Bankruptcy Judge Timothy W. Dore handles the case. The Debtor is represented by Joseph Creed, Esq., at the Law Offices of Joseph W. Creed. DESKTOP METAL: Gets Court Ok for $7.8MM Chapter 11 Dental Labs Sale ------------------------------------------------------------------- Clara Geoghegan of Law360 Bankruptcy Authority reports that on Wednesday, August 13, 2025, a Texas bankruptcy judge approved the $7.8 million sale of Desktop Metal's three dental implant laboratories as the 3D printing company moves to swiftly exit Chapter 11. 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. DESKTOP METAL: Paul Hastings Represents Ad Hoc Group ---------------------------------------------------- The law firm of Paul Hastings LLP filed a verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure to disclose that in the Chapter 11 case of Desktop Metal, Inc. and its affiliates, the firm represents the ad hoc group (the "AHG"). On or around April 23, 2025, the AHG retained Paul Hastings as counsel in connection with a potential restructuring of the Debtors. Each member of the AHG has consented to Counsel's representation. The members of the AHG are each either the beneficial holders of, or the investment advisors or managers to, funds and/or accounts that hold disclosable economic interests in relation to the Debtors. Counsel represents only the AHG and does not represent or purport to represent any persons or entities other than the AHG in connection with the Chapter 11 Cases. In addition, as of the date of this Verified Statement, the AHG, both collectively and through its individual members, does not represent or purport to represent any other persons or entities in connection with the Chapter 11 Cases. The Ad Hoc Group Members' address and the nature and amount of disclosable economic interests held in relation to the Debtors are: 1. Certain funds and/or accounts owned or managed by Aequim Alternative Investments LP and/or its affiliates 2 Belvedere Pl, Suite 250, Mill Valley, CA 94941 * Convertible Senior Note Holdings: $6,492,000.00 * First Lien Secured Note Holdings: $920,166.61 * Third Lien Secured Note Holdings: $2,656,513.87 2. Certain funds and/or accounts owned or managed by Capstone Investment Advisors, LLC and/or its affiliates 7 World Trade Center 250 Greenwich Street 32nd Floor New York, NY 10007 * Convertible Senior Note Holdings: $6,000,000.00 3. Certain funds and/or accounts owned or managed by Concise Capital Management, LP and/or its affiliates 777 Brickell Ave, Suite 630 Miami, FL 33131 * Convertible Senior Note Holdings: $6,394,000.00 * First Lien Secured Note Holdings: $905,857.82 * Third Lien Secured Note Holdings: $2,615,204.19 4. Certain funds and/or accounts owned or managed by Context Capital Management, LLC and/or its affiliates 7724 Girard Ave, Suite 300, La Jolla, CA 92037 * Convertible Senior Note Holdings: $17,754,000.00 * First Lien Secured Note Holdings: $2,921,198.74 * Third Lien Secured Note Holdings: $8,433,476.79 5. Certain funds and/or accounts owned or managed by CSS, LLC and/or its affiliates 1 N Wacker Dr, Suite 3075 Chicago, IL 60606 * Convertible Senior Note Holdings: $5,799,000.00 * First Lien Secured Note Holdings: $954,287.62 * Third Lien Secured Note Holdings: $2,755,020.96 6. Certain funds and/or accounts owned or managed by DeepCurrents Investment Group, LLC and/or its affiliates 575 Fifth Avenue 21st Floor New York, NY 10017 * Convertible Senior Note Holdings: $3,724,000.00 * First Lien Secured Note Holdings: $528,325.29 * Third Lien Secured Note Holdings: $1,525,271.10 7. Certain funds and/or accounts owned or managed by Meteora Capital LLC and/or its affiliates 1200 N. Federal Hwy Suite 200 Boca Raton, FL 33432 * Convertible Senior Note Holdings: $7,022,000.00 * First Lien Secured Note Holdings: $996,113.36 * Third Lien Secured Note Holdings: $2,875,770.94 8. Certain funds and/or accounts owned or managed by NewGen Asset Management, Ltd. and/or its affiliates 25 King St W, Suite 2900, Toronto, ON M5L 1G3, Canada * Convertible Senior Note Holdings: $1,442,000.00 * First Lien Secured Note Holdings: $204,726.06 * Third Lien Secured Note Holdings: $591,042.44 9. Certain funds and/or accounts owned or managed by Penderfund Capital Management Ltd. and/or its affiliates 1830-1066 W Hastings St, Vancouver, BC V6E 3X2, Canada * Convertible Senior Note Holdings: $5,010,000.00 * First Lien Secured Note Holdings: $711,037.82 * Third Lien Secured Note Holdings: $2,052,759.89 10. Certain funds and/or accounts owned or managed by Walleye Capital, LLC and/or its affiliates 315 Park Ave S, Floor 18, New York, NY 10010 * Convertible Senior Note Holdings: $3,967,000.00 * First Lien Secured Note Holdings: $562,446.33 * Third Lien Secured Note Holdings: $1,623,778.18 11. Certain funds and/or accounts owned or managed by Whitebox Advisors LLC and/or its affiliates 3033 Excelsior Boulevard Suite 500 Minneapolis, MN 55416 * Convertible Senior Note Holdings: $13,996,000.00 * First Lien Secured Note Holdings: $2,302,617.84 * Third Lien Secured Note Holdings: $6,647,638.94 Counsel to the Ad Hoc Group: PAUL HASTINGS LLP Charles Persons, Esq. 2001 Ross Avenue, Suite 2700 Dallas, Texas 75201 Telephone: (972) 936-7500 Facsimile: (972) 936-7501 Email: charlespersons@paulhastings.com -and- Daniel A. Fliman, Esq. Ryan P. Montefusco, Esq. Isaac S. Sasson, Esq. 200 Park Avenue New York, New York 10166 Telephone: (212) 318-6000 Facsimile: (212) 319-4090 Email: danfliman@paulhastings.com ryanmontefusco@paulhastings.com isaacsasson@paulhastings.com 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) on July 28, 2025, listing up to $50,000 in assets and liabilities. Judge Christopher M. Lopez presides over the case. Benjamin Lawrence Wallen at Pachulski Stang Ziehl & Jones, LLP serves as the Debtor's legal counsel. DIOCESE OF ROCKVILLE: Court Expunges Claim No. 50007 ---------------------------------------------------- Chief Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York sustains the objection of the Roman Catholic Diocese of Rockville Centre, New York, to Claim No. 50007 and expunges the Claim. The Additional Debtors -- the parishes under the Rockville Center Diocese -- filed voluntary petitions for relief under chapter 11 on Dec. 3, 2024. The Additional Debtors' prepackaged plans were confirmed, along with the Diocese's chapter 11 plan, on Dec. 4, 2024. This objection concerns an abuse claim filed against the Additional Debtors. There are two broad categories of abuse claims: (1) previously-asserted (preconfirmation) abuse claims and (2) new abuse claims filed post-confirmation. Only the new abuse claims are at issue. New abuse claimants can seek to recover from one of two sources: if they elect to be a participating post-confirmation claim, they will be treated in accordance with the trust documents and the Diocese's chapter 11 plan, which provides for payment out of a trust established for abuse victims. If they do not so elect, such nonparticipating post-confirmation Claimants choose their own claim allowance and objection process. This dispute concerns a non-participating post-confirmation claim. The Additional Debtors expressly preserved all their objections to claims in their chapter 11 plan, including objections based on the statute of limitations. The Additional Debtors argue that this claim is time-barred under applicable non-bankruptcy law and should therefore be disallowed under sections 502(b)(1) and 558 of the Code. The statute of limitations for negligence claims in New York is three years from the date of injury or from attaining the age of 18. The Additional Debtors argue that the allegations set out in the proof of claim demonstrate that the claim is barred by the applicable statute of limitations. Claim No. 50007 The Claimant filed a timely proof of claim on Dec. 30, 2024. The claim, as originally filed, did not identify an Additional Debtor, nor did it make any allegations relating to an Additional Debtor. The Additional Debtors argue that Claimant's claim, though timely filed, is not enforceable against the Additional Debtor's estate because it was time-barred due to expiration of the statute of limitations. The Claimant states that he filed his amended claim due to a discrepancy with the original claim form missing the Election of Treatment selection page -- i.e., the form he used the first time did not let him opt into the Settlement Trust process. He argues that his claim is not time-barred, but does not explain why, merely stating that the question whether his claim is barred by the statute of limitations involves factual and legal issues that cannot be resolved on the basis of the Objection alone and that his amended claim provides additional factual support and documentation relevant to tolling and the delayed discovery of the abuse. He asks that his claim proceed on the merits. The Claimant argues that equitable tolling applies because this is an exceptional circumstance since he could not reasonably be expected to file suit within the statutory period due to extraordinary barriers, and severe psychological memory repression counts as an extraordinary barrier. He also argues for the application of equitable estoppel because this is a case where the defendant's post-abuse conduct or position of authority effectively prevented the plaintiff from filing timely. According to the Court, the Claimant's briefs and proofs of claim do not set out an argument for equitable tolling or equitable estoppel, since he did not pursue his claim prior to the expiry of the statute of limitations, nor has he shown that the defendant concealed the cause of action or made any misrepresentations about any facts: while he may have subjectively felt that the Rockville Diocese was an entity with a significant amount of power, he does not allege that any relevant entity -- the Diocese, the Additional Debtors, or the perpetrator -- concealed the cause of action or prevented him from obtaining relevant information bearing on the existence of his claim. His sole argument is that he repressed his memory of the abuse, which he experienced as an adult (as New York law views people over the age of 18). As for the Claimant's argument that his initial proof of claim form was faulty because it did not provide for the opportunity to participate in the Settlement Trust, even if true (and it seems that the Claimant might have just used the wrong form), this argument is mooted by the Additional Debtors' offer to the Claimant to allow him to participate in the Settlement Trust process, the Court finds. A copy of the Court's Memorandum Opinion dated August 8, 2025, is available at https://urlcurt.com/u?l=kPI2Fa About The Roman Catholic Diocese of Rockville Centre, New York The Roman Catholic Diocese of Rockville Centre, New York, is the seat of the Roman Catholic Church on Long Island. The Diocese has been under the leadership of Bishop John O. Barres since February 2017. The State of New York established the Diocese as a religious corporation in 1958. The Diocese is one of eight Catholic dioceses in New York, including the Archdiocese of New York. The Diocese's total Catholic population is approximately 1.4 million, roughly half of Long Island's total population of 3.0 million. The Diocese is the eighth largest diocese in the United States when measured by the number of baptized Catholics. To deal with sexual abuse claims, the Roman Catholic Diocese of Rockville Centre, New York, filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 20-12345) on Sept. 30, 2020, listing as much as $500 million in both assets and liabilities. Judge Martin Glenn oversees the case. The Diocese tapped Jones Day as legal counsel, Alvarez & Marsal North America, LLC, as restructuring advisor, and Sitrick and Company, Inc., as communications consultant. Epiq Corporate Restructuring, LLC is the claims agent. The U.S. Trustee for Region 2 appointed an official committee of unsecured creditors in the Diocese's Chapter 11 case. The committee tapped Pachulski Stang Ziehl & Jones, LLP and Ruskin Moscou Faltischek, PC as its bankruptcy counsel and special real estate counsel, respectively. Robert E. Gerber, the legal representative for future claimants of the Diocese, is represented by the law firm of Joseph Hage Aaronson, LLC. DISTRICT 7 GRILL: Tom Howley Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 7 appointed Tom Howley, Esq., at Howley Law, PLLC as Subchapter V trustee for District 7 Grill Corporation. Mr. Howley will be paid an hourly fee of $550 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Howley declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Tom Howley, Esq. Howley Law, PLLC 711 Louisiana Street, Suite 1850 Houston, TX 77002 Telephone: (713) 333-9120 Email: tom@howley-law.com About District 7 Grill Corporation District 7 Grill Corporation owns and operates four restaurants in Houston, Texas, including: two District 7 restaurants located at 501 Pierce St., Houston, Texas 77002 and 1508 Hutchins Street, Houston, Texas 77003; one District 7 Restaurant & Market restaurant located at 610 Main St., Houston, Texas 77002; and one Table 7 Bistro restaurant located at 1085 Rusk St., Ste. C, Houston, TX 77002. The District 7 and Table 7 Bistro restaurants offer an upgraded take on America-style cuisine -- from classic eggs benedict and savory short rib burgers, to artisan pizzeria pizza, fresh mahi mahi salad, and file mignon. The District 7 Restaurant and Market location features a specialty market, deli and convenient grab-and-go options, including rotisserie chicken, deli sandwiches, and Polish dogs. District 7 Grill Corporation filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-34547) on August 5, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge Jeffrey P. Norman handles the case. The Debtor is represented by Brandon J. Tittle, Esq., at Tittle Law Firm, PLLC. DMMJ REALTY: Seeks to Sell Rye Property at Auction -------------------------------------------------- DMMJ Realty Corp. seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to sell real property and improvements at auction, free and clear of liens, claims, interests, and encumbrances. The Debtor is the owner of the Property, which consists of a 3-story building located in the village of Port Chester in the town of Rye, New York. The Property is the Debtor’s principal asset. Since the Petition Date, DMMJ has marketed the building, and has recently been in serious discussions with a potential purchaser for the purchase of the Property at a price of $1,750,000.00, although no formal agreement has been entered into at this time. To expedite and finalize the Sale process, the Debtor has determined to engage Northgate Real Estate Group as exclusive real estate broker. The Broker is to receive a 5% buyer's premium to be added to the Successful Bid and paid exclusively by such Successful Bidder. It is contemplated by the Debtor, in consultation with the Broker, that the Property will be marketed for the next 90 days prior to the Auction. In addition, the Bidding Procedures contemplate that DMMJ may select a "stalking horse" offer prior to the Auction if doing so will in its reasonable belief maximize the competitiveness of the bidding process. Such "Stalking Horse Bid" will receive customary bid protections in an amount no greater than 3% of the purchase price contemplated by such stalking horse agreement (break-up fee), with such fee to be paid only to the extent the Stalking Horse Bidder is not the ultimately Successful Bidder. Such breakup fee will be paid form the proceeds of the Sale. The Sale of the Property is subject to higher and/or better offers. The Debtor has established the proposed Bidding Procedures to govern the submission of competing "Qualified Bids" at an Auction on a timeline set forth. -- Bid Deadline: November 17, 2025 at 5:00 p.m. prevailing Eastern Time -- Auction: November 19, 2025 at 2:30 p.m. prevailing Eastern Time, if needed. -- Sale Objection Deadline: 7 calendar days before the Sale Hearing -- Sale Hearing: November 2025 at prevailing Eastern Time, or a soon thereafter as the Debtors may be heard. The Bidding Procedures provide for substantial flexibility with respect to the structure of the Sale and allow the Debtor to select a Stalking Horse Bidder and provide Bid Protections on the terms described in the Bidding Procedures if Debtor believes, in an exercise of its business judgement, that doing so will generate the best price for the Property. The Bidding Procedures provide that bidders submit initial bids to either: (a) a stalking horse offer, or (b) the minimum opening bid as established by the Debtor in an amount of $1,750,000.00, with each subsequent higher and better offer being in increments of not less than $10,000. All bids submitted for the purchase of the Property shall remain open, and all deposits held in the attorney escrow account of Debtor's counsel until the sales of the Property to the Successful Bidder is consummated. In the event that the Successful Bidder is unable to consummate on the sale of the Property, the next highest and/or best bidder (Backup Bidder) will then be required to consummate on the sale of the Property. In order for a potential purchaser of the Property to qualify as a Qualified Bidder, Debtor proposes that the purchaser's bid must be received by: November 17, 2025 at 5:00 p.m. (Bid Deadline). Each bid is accompanied by evidence of a good faith deposit in the amount of ten percent of its bid in immediately available funds (Deposit), which Deposit shall be made by wire transfer to an attorney escrow account designated by Debtor's counsel pursuant to wire instructions to be provided. The offer is in an amount greater than $1,750,000 plus payment of the 5% Buyer's Premium to the Broker; and Includes a duly authorized and executed purchase and sale agreement, in a form acceptable to the Debtor. DMJ believes that the proposed Bidding Procedures, coupled by the retention of Northgate, will procure serious parties interested in acquiring the Property and will result in realizing the full value of the Property. The Bidding Procedures are designed to facilitate a competitive bidding process in an expeditious manner. If the Debtor receives one or more Qualified Bids, DMMJ will conduct the Auction to select the highest or best bid for the Property (Successful Bid). The Auction, which shall be transcribed or recorded to the extent required under New York local practice, shall be held at 2:30 p.m. (prevailing Eastern time) on November 19, 2025 at the Westchester offices of Debtors' counsel, Davidoff Hutcher & Citron LLP, 120 Bloomingdale Road, Suite 100, White Plains, New York 10605, or such other location as timely communicated to all entities entitled to attend the Auction. Any subsequent bidding for the Property at the Auction shall be in increments of at least $10,000.00 or any other reasonable amount established by the Debtor at the Auction. The Successful Bidder fails to consummate the sale because of a breach or failure to perform on the part of the Successful Bidder, the highest or otherwise best bid will be deemed the new Successful Bid, and DMMJ will be authorized and directed to consummate the Sale with the bidder who submitted the Back-Up Bid without further order of the Court. In such case, the good faith deposit of the Successful Bidder (10% of the Qualified Bid) shall be forfeited to DMMJ and DMMJ shall have the right to seek any and all other remedies and damages from the defaulting Successful Bidder to the extent permissible under the applicable purchase agreement and applicable law. The Debtor proposes to sell the Property free and clear of all liens, claims, interests and encumbrances to the Successful Bidder. The Debtor believes that the proceeds of the sale of the Property will be sufficient to pay all of the Debtor's creditors in full. About DMMJ Realty Corp. DMMJ Realty Corp. is a single asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). DMMJ Realty Corp. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-22157) on February 27, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Sean H. Lane handles the case. The Debtor is represented by Robert L. Rattet, Esq. at DAVIDOFF HUTCHER & CITRON LLP. DON ENTERPRISES: Seeks to Sell New Castle Property to Reignbrook 2 ------------------------------------------------------------------ Don Enterprises Inc. seeks approval from the U.S. Bankruptcy Court for the Western District of Pennsylvania, to sell Property, free and clear of liens, claims, interests, and encumbrances. The Debtor is a Pennsylvania non-profit corporation, organized under Pennsylvania's Non-Profit Corporation Law of 1988. The Debtor seeks to evaluate its real estate and operations, and to reorganize in order to pay back its legitimate creditors and continue to support its clients and tenants in the ordinary course of business. The Debtor is owner of certain real estate with an address of 318 E Washington Street, New Castle, PA 16101; a Parcel Identification Number of 04-145700; the conveyance of which Debtor was grantee was recorded on July 2, 2020 as instrument number 2020-004017 (Property). The Property is a C-2 zoned (Central Business District) three-story commercial property consisting of approximately 11,000 square feet, 18 parking spaces, and 50' of frontage on E. Washington St. The lienholder of the Property is WesBanco Bank Community Development Corporation. The Debtor seeks to sell the Property to Reignbrook 2, LLC, a Pennsylvania limited liability corporation with an address of 8297 Champions Gate Blvd, #396, Champions Gate, FL 33896, pursuant to the certain Agreement for the Sale of Commercial Real Estate dated July 19, 2025. There are no other offers for the purchase of the Property besides Buyer's current offer. The Debtor proposes the following procedures for the Auction: a. At the Sale Hearing, the Court shall hold an Auction. b. In order to qualify to bid at the Auction, a prospective bidder shall wire transfer a $1,000 good faith deposit to the Debtor’s counsel not less than 24 hours prior to the Auction Sale pursuant to wire transfer instructions to be provided by Debtor's counsel upon request of the prospective bidder. The Deposit shall be returned promptly to any unsuccessful bidder, without interest. c. Except for the purchase price and other non-substantive modifications related to the name and identity of the purchaser, the terms and provisions pursuant to which a bid is made shall be deemed to be identical to the terms and provisions that appear in the Sale Agreement. d. The Opening Bid at the Auction shall be deemed to be the bid by the Buyer pursuant to the Sale Agreement. e. The first bid, if any, following the Opening Bid, shall be at least $5,000 greater than the Opening Bid for any bid that otherwise contains identical terms and conditions as are contained in the Sale Agreement, and all subsequent overbids shall be in increments of $1,000. f. If the Buyer is not the successful bidder, it shall be reimbursed for actual documented and reasonable out of pocket expenses not to exceed $1,000. Howard Hanna Real Estate Services is a real estate services company that provides brokerage and leasing services to the Debtor. The purchase price of the Property is $90,000. At closing, the Debtor shall convey the Property to the Buyer in fee simple by customary Pennsylvania General Warranty deed. In the event the Buyer terminates the Sale Agreement pursuant to any right provided by the Agreement or if the Buyer is not the successful bidder, the Buyer will be entitled to a return of all deposit monies paid. Any real estate transfer taxes which may become due as a result of the sale contemplated herein shall be paid equally by the Buyer and the Debtor. At closing, township, school district and county real estate taxes for the current year shall be prorated as levied by the taxing bodies. The Debtor encourages any interested party to submit bids for the Property and all bids will be considered. The Debtor believes, and therefore avers, that the sale is fair and reasonable, and in the best interest of this estate, and that a higher and better price would not be obtained through a continued marketing of the Property. The Property will be listed for sale on the Court's Electronic Access to Sales Information website, the New Castle News, and the Lawrence County Legal Journal, pursuant to the Local Rules of the Court. About Don Enterprises Inc. DON Enterprises Inc. is a nonprofit organization focusing on community revitalization, housing, and employment opportunities for people with disabilities. Through its range of programs and services, DON Enterprises strives to foster a more inclusive community while promoting independence and integration into society. DON Enterprises Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-20379) on February 17, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Kathryn L. Harrison, Esq. at Campbell & Levine, LLC. Wesbanco Bank, as lender, is represented by Jeffrey R. Lalama, Esq. at Meyer Unkovic & Scott LLP. DOVGAL EXPRESS: Court Extends Cash Collateral Access to Sept. 5 --------------------------------------------------------------- Dovgal Express, Inc. received another extension from the U.S. Bankruptcy Court for the Northern District of Illinois to use its lenders' cash collateral. The sixth interim order signed by Judge Timothy Barnes extended the Debtor's authority to use cash collateral to September 5 from July 23 to pay the expenses set forth in its budget. The budget projects total expenses of $100,700.50 for the interim period. As protection for the use of their cash collateral, the lenders were granted replacement liens on their collateral and will receive payments in accordance with the budget. In addition, the Debtor was ordered to make total payments of $98,700.50 to its lenders as further protection. The lenders asserting interests in the cash collateral are 777 Equipment Finance LLC, Alliance Funding Group as servicer for Amur Equipment Finance Inc., Commercial Credit Group, Inc., Daimler Truck Financial Services USA, LLC, Equify Financial, LLC, M & T Equipment Finance Corp., Siemens Financial Services, Inc, Stride Bank N.A., Trans Lease Inc., Transportation Alliance Bank, Inc., Webster Capital Finance, and Wells Fargo Equipment Finance, Inc. The next hearing is scheduled for August 20. Commercial Credit Group is represented by: Brian P. Welch, Esq. Burke, Warren, MacKay & Serritella P.C. 330 N. Wabash Ave., Suite 2100 Chicago, IL 60611 Telephone: 312-840-7117 bwelch@burkelaw.com Daimler Truck Financial Services is represented by: Elisabeth M. Von Eitzen, Esq. Warner NorCross + Judd, LLP 180 East Water Street, Ste. 7000 Kalamazoo, MI 49007 (269) 276-8118 evoneitzen@wnj.com Equify Financial is represented by: David L. Staab, Esq. Haynes and Boone, LLP 2801 N. Harwood Street Dallas, TX 75201 Phone: +1 817.347.6645 Fax: +1 817.348.2387 david.staab@haynesboone.com Siemens Financial Services is represented by: Arlene N. Gelman, Esq. Vedder Price, P.C. 222 N. LaSalle Street, Suite 2600 Chicago, IL 60601 Telephone: 312-609-7500 agelman@vedderprice.com Stride Bank is represented by: Mark Bogdanowicz, Esq. Spencer Fane LLP 1000 Walnut St., Suite 1400 Kansas City, MO 64106 Tel: (816) 474-8100 Fax: (816) 474-3216 mbogdanowicz@spencerfane.com Transportation Alliance Bank is represented by: Morgan I. Marcus, Esq. Carlson Dash, LLC 216 S. Jefferson St., Suite 303 Telephone: 312-382-1600 mmarcus@carlsondash.com About Dovgal Express Inc. Dovgal Express, Inc. is a transportation services provider specializing in dry van truckload, less-than-truckload, and refrigerated shipments. Dovgal Express sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-18991) on Dec. 20, 2024, with $1 million to $10 million in assets and $10 million to $50 million in liabilities. Oleksandr Dovgal, president of Dovgal Express, signed the petition. Judge Timothy A. Barnes handles the case. The Debtor is represented by: O Allan Fridman Law Office Of O. Allan Fridman Tel: 847-412-0788 Email: allanfridman@gmail.com EDGE PROMO: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Edge Promo Team, LLC 2565 US Hwy 70 East Garner, NC 27529 Business Description: Edge Promo Team, LLC provides custom merchandise and branding solutions, including screen printing, embroidery, direct-to-garment printing, laser etching, signage, and e-commerce fulfillment. The Company operates from Garner, North Carolina, serving businesses, organizations, and individuals with both large- and small- scale production. Chapter 11 Petition Date: August 13, 2025 Court: United States Bankruptcy Court Eastern District of North Carolina Case No.: 25-03107 Judge: Hon. Pamela W McAfee Debtor's Counsel: William P. Janvier, Esq. STEVENS MARTIN VAUGHN & TADYCH, PLLC 225 W Milbrook Road Raleigh NC 27612 Tel: (919) 582-2300 E-mail: wjanvier@smvt.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Ted Ormsby as member. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/DPOPRRQ/Edge_Promo_Team_LLC__ncebke-25-03107__0001.0.pdf?mcid=tGE4TAMA ENDO FINANCE: Moody's Raises CFR to 'B1', Outlook Stable -------------------------------------------------------- Moody's Ratings upgraded the ratings of Endo Finance Holdings, Inc. ("Endo"), which will become a subsidiary of Mallinckrodt plc, including the Corporate Family Rating to B1 from B2 and the Probability of Default Rating to B1-PD from B2-PD. Concurrently, Moody's upgraded senior secured super-priority revolving credit facility to Ba2 from Ba3, and senior secured term loan to B1 from B2, senior secured notes due 2031 to B1 from B2. The Speculative Grade Liquidity Rating of SGL-1, remains unchanged. The outlook is stable. "The ratings upgrade reflects strengthening of Endo's credit metrics with adjusted pro forma financial leverage improving to 3.4x at the close of the transaction, as well as meaningful growth in the company's scale following merger with Mallinckrodt. Although Moody's expects Endo to pursue a spin-off of its combined generics and sterile injectables businesses, Moody's anticipates adjusted debt/EBITDA will be maintained in the range of 2.5 and 3.5 times, post carve out," stated Vladimir Ronin, Moody's Vice President-Senior Analyst. "The upgrade also reflects Moody's expectations that Endo will benefit from sizable cash balance and strong free cash flow conversion over the next 2-3 years, underpinned by mature portfolio of branded franchises, as well as expected cost synergies related to the combination of the two companies," continued Ronin. RATINGS RATIONALE Endo's B1 CFR reflects the company's moderate adjusted pro forma financial leverage of 3.4x, at the close of the transaction. The rating also benefits from the company's good scale and cash flow conversion in specialty branded pharmaceuticals segment. The combined company will have significant concentration in its top three branded franchises of Xiaflex, Acthar and INOmax, accounting for approximately 37% of the company's annual sales. Furthermore, several of the branded products, including INOmax, will continue to experience meaningful competitive pressure. The company has significant concentration in the US, where it faces earnings volatility in its generics business due to pricing pressure on its base of existing products. Endo's strong liquidity is underpinned by sizable cash balance, and meaningful free cash flow, as well as revolver availability. The Speculative Grade Liquidity Rating of SGL-1 reflects Moody's expectations that Endo's liquidity will remain very good over the next 12 to 18 months. Endo's liquidity will be supported by roughly $900 million of cash at transaction's close, following the carve out of the generics and specialty businesses. Moody's estimates that the company will generate at least $200 million of annual free cash flow over the next 12 months. External liquidity is further supported by a $400 million super priority revolving credit facility, undrawn at the close of the merger. Alternative sources of liquidity are limited as substantially all assets are pledged. ESG CONSIDERATIONS Endo's CIS-4 indicates that the rating is lower than it would have been if ESG risk exposures did not exist. The credit impact score reflects exposure to social risks (S-4), most notably with responsible production and customer relations. The company has been subject to a voluntary opioid operating injunction ("VOI") which will apply to new Endo until 2030, preventing the company from manufacturing high-dose opioid pills, advertising or marketing opioid to patients and doctors. Additionally, because Endo's branded business represents a large share of cash flows, drug pricing risk in the US is a key social risk. The score also reflects exposure to governance risk (G-4), most notably related to financial strategy and risk management. The score also reflects the company's moderate leverage and management track record and credibility risks of successfully operating following the 2022 bankruptcy filing. Lastly, environmental risk considerations (E-2) reflects that the company does not face significant environmental exposures that are materially different than the industry norm. The stable outlook reflects Moody's expectations that Endo's financial leverage will remain in the range of 2.5x to 3.5x. Furthermore, Moody's expects that Endo's combination of free cash flow, cash balance, and revolver availability will provide ample liquidity for operations. The Ba2 rating of the senior secured super-priority revolving credit facility is two notches above the corporate family rating, reflecting its priority in right of payment in the event of default prior to a material amount of other debt in the company's capital structure. The B1 rating for the $1.5 billion senior secured term loan due 2031, and $1.0 billion senior secured notes due 2031 (which are pari to the senior secured term loan), match the B1 corporate family rating, given the facilities represent the preponderance of funded debt. The borrower of the senior secured credit facilities is Endo Finance Holdings, Inc. The senior secured debt is guaranteed by Endo LP (formerly Endo, Inc.) the parent company and certain subsidiaries, while Mallinckrodt, plc. will become the reporting entity, post-close. Security includes a pledge on assets of the combined Mallinckrodt and Endo specialty branded pharmaceutical segments held by subsidiaries of Endo LP (subject to certain customary exceptions). FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company is able to improve earnings through growth of its key franchises, and diversification of the company's portfolio through commercialization of new products. The company would also need to sustain debt/EBITDA below 3.0x along with strong liquidity highlighted by consistently positive free cash flows. The ratings could be downgraded if Endo's operating performance significantly weakens, or liquidity deteriorates. The ratings could also be downgraded if the company executes material debt-funded acquisitions or shareholder distributions, resulting in debt to EBITDA sustained above 3.5 times. The principal methodology used in these ratings was Pharmaceuticals published in November 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. Endo is a specialty healthcare company offering branded and generic pharmaceuticals. On March 13, 2025 Endo announced that it will be combining with Mallinckrodt in a stock and cash merger. Under the terms of the agreement, Mallinckrodt will continue as the holding company for the combined business, and Endo will become a wholly-owned subsidiary of Mallinckrodt. Pro forma for the merger with Mallinckrodt, Endo generated revenues of approximately $3.5 billion, for the twelve months ended March 31, 2025. ESSENTIALS MASSAGE: Hires Dineen Pashoukos as Special Counsel ------------------------------------------------------------- Essentials Massage and Facials of Trinity 54, LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire Dineen Pashoukos Wasylik of Dineen Pashoukos Wasylik, P.A. d/b/a DPW Legal to serve as special counsel in its Chapter 11 case. The firm will provide these services: (a) provide representation in connection with the pending controversy Doe v. Nugent & Essentials Massage & Facial of Trinity 54, LLC, Case No. 2D2025-0497 pending before the Florida Second District Court of Appeal; (b) provide appellate practice representation through briefing of the appeal; (c) provide representation in oral argument if ordered by the appellate court; and (d) provide any work outside of the scope of these flat fees on an hourly basis. Ms. Wasylik will receive an initial nonrefundable flat fee of $25,000 to represent the Debtor-in-Possession through briefing of the appeal, an additional flat fee of $7,500 if oral argument is ordered, and $500 per hour for any work outside of the scope of these flat fees. The Debtor-in-Possession also paid an initial $2,500 cost deposit, with $1,902 still held in trust. Dineen Pashoukos Wasylik, P.A. d/b/a DPW Legal 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: Dineen Pashoukos Wasylik, Esq. Dineen Pashoukos Wasylik, P.A. 244 Green Hedges Way Suite 101 Wesley Chapel, FL 33544 Telephone: (813) 778-5161 About Essentials Massage and Facials of Trinity 54 Essentials Massage and Facials of Trinity 54, LLC operates a wellness and beauty spa offering massages, facials, body sculpting, and spa packages. It provides customized, results-focused treatments that blend relaxation with aesthetic goals. It serves clients from its location in Trinity, Florida. Essentials Massage sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-03987) on June 13, 2025. In its petition, the Debtor reported total assets of $33,228 and total liabilities of $8,225,240. Judge Roberta A. Colton handles the case. The Debtor is represented by Kristina Feher, Esq., at Feher Law, PLLC. ETCON CONSTRUCTION: Beverly Brister Named Subchapter V Trustee -------------------------------------------------------------- The Acting U.S. Trustee for Region 13 appointed Beverly Brister, Esq., a practicing attorney in Benton, Ark., as Subchapter V trustee for Etcon Construction, LLC. Ms. Brister will be paid an hourly fee of $360 for her services as Subchapter V trustee. Should travel be required outside of Saline or Pulaski Counties, the Subchapter V trustee will seek a compensation rate of $100 per hour for actual travel time incurred. Ms. Brister declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Beverly I. Brister, Esq. Attorney at Law 212 W. Sevier Benton, AR 72015 Phone: 501-778-2100 Email: bibristerlaw@gmail.com About Etcon Construction Etcon Construction, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Ark. Case No. 25-12679) on August 8, 2025, listing between $100,001 and $500,000 in assets and liabilities. Judge Phyllis M. Jones presides over the case. William F. Godbold, IV, Esq., at Natural State Law, PLLC represents the Debtor as bankruptcy counsel. EXELA TECHNOLOGIES: Holds 28.97% Stake in XBP Global Holdings ------------------------------------------------------------- Exela Technologies, Inc., Par Chadha, XCV-STS, LLC, and GP 3XCV LLC, disclosed in a Schedule 13D filed with the U.S. Securities and Exchange Commission that as of July 29, 2025, they beneficially own an aggregate of 36,027,240 shares of common stock and warrant shares of XBP Global Holdings, Inc.'s common stock, representing 28.97% of the 117,715,369 shares of common stock outstanding as of that date. Exela Technologies may be reached through: Par Chadha, Executive Chairman c/o Exela Technologies, Inc. 1237 7th St., Santa Monica, CA 90401 Tel: (310) 496-3248 A full-text copy of Exela Technologies, Inc.'s SEC report is available at https://is.gd/n7eAzt About Exela Technologies Headquartered in Irving, Texas, Exela Technologies, Inc. -- http://www.exelatech.com/-- is a business process automation (BPA) company, leveraging a global footprint and proprietary technology to provide digital transformation solutions enhancing quality, productivity, and end-user experience. Exela Technologies Inc. and several other units sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90024) on March 3, 2025. In its petition, the Debtor reports estimated assets between $500 million and $1 billion and liabilities between $1 billion and $10 billion. Honorable Bankruptcy Judge Christopher M. Lopez handles the case. The Debtor is represented by Timothy Alvin Davidson, II, Esq. at Andrews Kurth LLP. FAITH ELECTRIC: Sam Heigle's Appointment as Chapter 11 Trustee OK'd ------------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Oklahoma approved the appointment of Sam Heigle, a director at Turnaround Professionals, LLC, as Chapter 11 trustee for Faith Electric, Inc. Mr. Heigle was appointed on August 11 by U.S. Trustee Ilene Lashinsky, the Justice Department's bankruptcy watchdog overseeing the company's Chapter 11 case. The appointment followed an August 7 court order granting the motion filed by creditor Generator Supercenter Franchising, LLC to appoint an independent trustee to take over Faith Electric's bankruptcy case. In its motion, Generator Supercenter Franchising raised concern over alleged unauthorized withdrawals from Faith Electric's debtor-in-possession accounts according to information provided by the U.S. Trustee after consultation with BancFirst, which holds the company's accounts. This concern, the creditor said, warrants the appointment of an independent trustee. Counsel for Generator Supercenter Franchising: Larry G. Ball, Esq. Hall, Estill, Hardwick, Gable, Golden & Nelson, P.C. 100 North Broadway, Suite 2900 Oklahoma City, OK 73102 Telephone (405) 553-2828 Facsimile (405) 553-2855 Email: lball@hallestill.com About Faith Electric Inc. Faith Electric, Inc. is an Oklahoma City-based company, which specializes in electrical contracting services. It offers design, installation, and repair for residential, commercial, and industrial clients. In 2019, the company rebranded as Generator Supercenter of Oklahoma, focusing primarily on Generac generator sales, installation, and maintenance. Faith Electric filed Chapter 11 petition (Bankr. W.D. Okla. Case No. 25-10921) on March 31, 2025, listing up to $10 million in both assets and liabilities. Austin Partida, chief executive officer of Faith Electric, signed the petition. Judge Sarah A. Hall oversees the case. Amanda R. Blackwood, Esq., at Blackwood Law Firm, PLLC, is the Debtor's bankruptcy counsel. Wells Fargo Commercial Distribution Finance, as secured creditor, is represented by: Ross A. Plourde, Esq. McAfee & Taft, A Professional Corporation 8th Floor, Two Leadership Square 211 North Robinson Oklahoma City, OK 73102-7103 Telephone: (405) 235-9621 Facsimile: (405) 235-0439 ross.plourde@mcafeetaft.com FALKY HOLDINGS: Case Summary & Two Unsecured Creditors ------------------------------------------------------ Debtor: Falky Holdings, Inc. 1831 N. Belcher Road, Suite G-3 Clearwater, FL 33765 Chapter 11 Petition Date: August 13, 2025 Court: United States Bankruptcy Court Northern District of Florida Case No.: 25-40378 Debtor's Counsel: Byron W. Wright III, Esq. BRUNER WRIGHT, P.A. 2868 Remington Green Circle, Suite B Tallahassee, FL 32308 Tel: (850) 385-0342 Fax: (850) 270-2441 E-mail: twright@brunerwright.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by James Krivacs as president. A full-text copy of the petition, which includes a list of the Debtor's two unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/UBBXQQY/Falky_Holdings_Inc__flnbke-25-40378__0001.0.pdf?mcid=tGE4TAMA FCI SAND: Hires GlassRatner Advisory as Valuation Consultant ------------------------------------------------------------ FCI Sand Operations, LLC and FCI South, LLC seek approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire GlassRatner Advisory & Capital Group, LLC as valuation consultants in their jointly administered Chapter 11 cases. GlassRatner will provide these services: (a) conduct valuation of the Debtors' sand reserves and minerals; (b) render valuation consulting services to the Debtors as needed pursuant to the Engagement Letter; and (c) perform valuation and appraiser services for real property. The firm will be paid at these hourly rates: Mark Shapiro, Senior Managing Director $895 Craig Jacobson, Senior Managing Director $725 Directors & Managing Directors $395 to $695 Associates and Senior Associates $295 to $450 The firm will also be reimbursed for all out-of-pocket expenses incurred in connection with its services. GlassRatner 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: Craig Jacobson GLASSRATNER ADVISORY & CAPITAL GROUP, LLC 3500 Maple Avenue, Suite 420 Dallas, TX 75219 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. Judge Michelle V. Larson oversees the case. The Debtor is represented by Davor Rukavina, Esq. at Munsch Hardt Kopf & Harr, P.C. FERGUSON, MO: Moody's Puts 'Ba1' Rating on Review for Downgrade --------------------------------------------------------------- Moody's Ratings has placed Ferguson (City of), MO's Baa3 issuer and Ba1 lease appropriation ratings on review for possible downgrade. The review for possible downgrade reflects the negative available fund balance in fiscal 2024 (June 30 year-end) and uncertainty surrounding fiscal 2025 outcomes. RATINGS RATIONALE The ratings are on review for downgrade after the fiscal 2024 audit showed a negative available fund balance and clarity of the financial position is uncertain due to turnover within the city's finance department forcing a reliance on a third party firm to manage accounting functions. This governance weakness is a key consideration of the rating. The city is currently in the process of restating its fiscal 2024 results with revised numbers expected by December 2025 with the fiscal 2025 audit. The fiscal 2026 budget is balanced. The city's financial position is further challenged by costs associated with implementation of the Department of Justice consent decree particularly given the reliance on economically sensitive revenue streams that have grown at a slower rate than costs. The city's liquidity position at fiscal year end 2024 was healthy at 75% of revenue, while leverage was below 60% of revenue. The city's economic metrics were stable. RATING OUTLOOK Moody's reviews will consider fiscal 2025 audited results including a restatement of fiscal 2024 results. The review will also consider the latest consent decree monitor's report and fiscal 2026 year-to-date information to evaluate the city's ability to achieve balanced operations while complying with the consent decree while managing other city priorities. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- An upgrade is unlikely at this time -- Confirmation of the rating will be considered under receipt of financial results that show balanced operations and improved available fund balance FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- A decline in the financial position of the city as evidenced by a decline in the available fund balance and/or liquidity ratios -- Further financial pressures associated with consent decree implementation costs without offsetting revenue streams PROFILE The City of Ferguson is located within St. Louis County approximately 13 miles northwest of downtown St. Louis with a population of approximately 18,350. METHODOLOGY The principal methodology used in these ratings was US Cities and Counties published in July 2024. FINLEY DESIGN: Court Extends Cash Collateral Access to Aug. 31 -------------------------------------------------------------- Finley Design, P.A. received another extension from the U.S. Bankruptcy Court for the Eastern District of North Carolina to use cash collateral. The third interim order authorized the Debtor to use cash collateral through August 31 to pay its business expenses in accordance with its budget, with up to 10% variance. The budget projects total operational expenses of $135,039.24 for August. First Citizens Bank & Trust Co. and five other creditors hold UCC-perfected security interests. As protection for the Debtor's use of their cash collateral, secured creditors will be granted a replacement lien on the Debtor's post-petition property to the same extent and with the same validity and priority as their pre-bankruptcy lien. The Debtor must maintain insurance of its property, with First Citizens listed as loss payee. The next hearing is scheduled for August 27. About Finley Design P.A. Finley Design P.A., doing business as Finley Design PA Architecture + Interiors, provides architectural, interior, and master planning services for retail, office, medical, mixed-use, residential, and environmental design projects. The firm focuses on client-centered solutions, offering design leadership and project execution across various commercial and residential sectors. Finley Design sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-02252) on June 2, 2025. In its petition, the Debtor reported estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Judge Pamela W. Mcafee oversees the case. The Debtor is represented by: Philip Sasser Sasser Law Firm Tel: 919-319-7400 Email: philip@sasserbankruptcy.com FIRST BRANDS: Refinancing Delay No Impact Moody's 'B2' CFR ---------------------------------------------------------- Moody's Ratings views the pause in the refinancing process for First Brands Group, LLC (First Brands) to be credit negative. The company's ratings, including its B2 corporate family rating as well as the B1 ratings on its proposed backed senior secured first lien term loans and Caa1 rating on its proposed backed second lien term loan, remain unchanged. The outlook remains stable. However, a longer than anticipated pause will increase refinancing risk. Further, substantial changes to the terms of the proposed transaction, including the possibility of higher financing costs, could contribute to weaker interest coverage and cash flow. Moody's will continue to monitor the progress of the refinancing, but evidence of developments like these could prompt a reassessment of the rating or outlook. On August 4th, First Brands decided to pause a proposed refinancing of all its existing indebtedness, which includes almost $5 billion in first lien debt set to mature in March 2027. The transaction pause is to allow time to conduct a quality of earnings report on the company's past acquisitions and provide additional disclosures around its account receivable factoring programs at the request of potential lenders. First Brands Group, LLC, headquartered in Cleveland, OH, is a leading manufacturer and distributor of primarily aftermarket component parts for the automotive and other industrial equipment markets. The company's products include wipers, air and oil filters, water and fuel pumps, brake drums and rotors, lighting, spark plugs, towing and trailering equipment and gas springs. FISCHER AG: Hires Law Firm of Herren Dare & Street as Counsel ------------------------------------------------------------- Fischer, AG, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Missouri to employ Law Firm of Herren, Dare & Street as counsel. The firm's services include: a. providing the Debtor with advice with respect to its powers and duties as the Debtor in this proceeding; b. preparing on behalf of the Debtor necessary applications, motions, notices, orders, adversary proceedings and other legal papers; c. assisting the Debtor in effectuating a plan of reorganization and Disclosure Statement; d. assisting the Debtor in overseeing the Debtor's continued operation of its business and management of his property; e. assisting the Debtor with potential sale of its interests in its property; f. advising the Debtor with respect to the possible subordination of claims; and g. providing other necessary legal services. The firm will be paid at the rates of $400 per hour. The firm received an advance deposit in the amount of $17,900. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. David M. Dare, Esq., a partner at Law Firm of Herren, Dare & Streett, 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: David M. Dare, Esq. Law Firm of Herren, Dare & Streett 439 S. Kirkwood Road, Suite 204 St. Louis, MO 63122 Tel: (314) 965-3373 Fax: (314) 965-2225 Email: hdsstl@hdsstl.com About Fischer, AG, LLC 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. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Miss. Case No. 25-20127) on July 30, 2025, with $2,643,600 in assets and $2,420,098 in liabilities. Chris Fischer, owner, signed the petition. David M. Dare, Esq., at Herren, Dare & Streett represents the Debtor as legal counsel. FLAGSHIP RESORT: Unsecureds' Recovery "Unknown" in Liquidating Plan ------------------------------------------------------------------- Flagship Resort Development Corp., filed with the U.S. Bankruptcy Court for the District of New Jersey a First Amended Disclosure Statement for Plan of Liquidation dated August 8, 2025. The Debtor was incorporated on December 30, 1996. It is a privately held hospitality and resort development company headquartered in New Jersey, with a particular focus on timeshare vacation ownership opportunities in the Atlantic City region. Over at least a 9-month period commencing in or around July of 2024, the Debtor reached out to numerous strategics in the industry who might be interested in purchasing the Debtor's assets. As a result of these efforts, the Debtor proceeded to enter into negotiations with five parties potentially interested in purchasing the Debtor's assets, ultimately resulting in the execution of four non-disclosure agreements. These four remaining interested parties thereupon proceeded to conduct extensive due diligence. The Debtor entered into a stalking horse term sheet (the "Stalking Horse Term Sheet") pursuant to which AC Boardwalk Investments, LLC ("AC Boardwalk" or "Stalking Horse Bidder"), an entity wholly owned by Kevin Jones and Roxanne Passarella. Under the asset purchase agreement entered into between the Debtor and AC Boardwalk in connection with the Stalking Horse Term Sheet (the "Stalking Horse APA"), the Stalking Horse Bidder proposes to acquire all assets of the Debtor for the sum of $5 million, plus a potential upward adjustment, plus assumption of both receivables financing arrangements with the Receivables Lenders in the total amount of approximately $40,524,948.27 as of the Petition Date. The total bid from the Stalking Horse Bidder therefore has a cash plus assumption of funded debt value of at least $45,524,948.27 (collectively, the "Sale Transaction"). Following a robust marketing and sale process, no Qualified Bids were received other than the bid exemplified by the Stalking Horse APA. Accordingly, the Debtor made the decision to cancel the auction and proceed with AC Boardwalk Investments LLC as the winning bidder, which will acquire the Debtor's assets and business pursuant to section 363 of the Bankruptcy Code. In addition, and integral to the Stalking Horse APA, the Debtor, BOC, and Colebrook, entered into a DIP Loan Credit Agreement (as amended, the "DIP Credit Agreement") pursuant to which BOC and Colebrook agreed to provide debtor-in-possession financing to the Debtor in the maximum amount of up to $5.602 million. The financing (the "DIP Financing") provides for $4,350,453.90 in new money to cover operating shortfalls and restructuring costs, and a rollup of just $1,251,547, roughly 1/3 to 1, with the rollup designed solely to cover protective advances made by the Lender in the weeks leading up to the Filing Date. As of the Petition Date, the Debtor believed that unsecured claims against the Debtor are at least $8,988,26184. Unsecured claims against the Debtor include (a) accrued and unpaid unsecured debt owed to the Ownership Associations incurred in the ordinary course of the Debtor's business, (b) unpaid amounts owed to the Debtor's vendors, and (c) other miscellaneous trade creditors. The Debtor also has unsecured claims related to the litigation identified for which the cumulative class action plaintiffs allege damages in excess of $100 million. Class 7 consists of all General Unsecured Claims other than Continuing Trade Vendor Claims ("Other General Unsecured Claims"), including any RETA/CFA Claims that are unsecured. Except to the extent that a holder of an Allowed Other General Unsecured Claim agrees to less favorable treatment, in exchange for full and final satisfaction, settlement, and release of each Allowed Other General Unsecured Claim, each holder of such Allowed Other General Unsecured Claim shall receive its Pro Rata Share of 50% of any available proceeds of the Palmer Litigation Bond, and any Retained Causes of Actions, including, but not limited to, Avoidance Actions and Commercial Tort Claims. Class 7 is Impaired. The estimated recovery for General Unsecured Claims is "unknown", according to the Disclosure Statement. Class 8 consists of all Interests in the Debtor. Holders of Interests in the Debtor will receive no distribution under the Plan, and all Interests shall be cancelled, released, discharged, and extinguished. On and after August 17, 2025 (the "Sale Effective Date"), the Debtor shall (a) no longer draw funds from the DIP Funding Account other than in accordance with the Amended DIP Budget (the "Undrawn DIP Funds") and the Debtor shall not request any DIP Funding from the Lenders in excess of the Amended DIP Loan, and (b) transfer any cash balance in the Debtor's other bank accounts to the IOLTA account of Porzio, Bromberg and Newman (the "Remaining Cash," and together with the Undrawn DIP Funds, the "Plan Funding"). The Plan Funding shall be used for purposes of allocation consistent with the terms of this Settlement, in accordance with the Amended DIP Budget and as more fully set forth in the Approved Plan. The Stalking Horse Bidder agrees that as of the Sale Effective Date, it shall (i) assume and satisfy all costs and expenses incurred by the Debtor's estate not contemplated in the Amended DIP Budget, including but not limited to operational costs, US Trustee fees, and interest and fees under the DIP Facility, and (ii) realize any benefit from the Debtor's operations. On the Closing Date of the Sale Transaction and the Stalking Horse APA, Kevin Jones, Roxanne Passarella, and the Management Companies shall contribute a total of $150,000.00 in cash to the Plan Administrator Wind-Down and Expense Reserve (the "Buyer Contribution"). For the avoidance of doubt, the Buyer Contribution shall not be impacted by any outcome regarding the DIP Amendment Motion or the Plan Documents. Allowed Claims and any amounts necessary to wind down the Debtor's Estate shall be paid from the Debtor's Assets, subject to the limitations and qualifications. A full-text copy of the First Amended Disclosure Statement dated August 8, 2025 is available at https://urlcurt.com/u?l=HFHDm7 from Kroll Restructuring Administration LLC, claims agent. The Debtor's Counsel: Warren J. Martin Jr., Esq. Rachel A. Parisi, Esq. Christopher P. Mazza, Esq. PORZIO, BROMBERG & NEWMAN, P.C. 100 Southgate Parkway Morristown, NJ 07962 Tel: 973-538-4006 Fax: 973-538-5146 Email: wjmartin@pbnlaw.com About Flagship Resort Development Corporation Flagship Resort Development Corporation, a privately held hospitality and resort development company based in New Jersey, specializes in timeshare vacation ownership in the Atlantic City region. It operates 774 living units across three properties -- Flagship All-Suites Resort, Atlantic Palace, and La Sammana Resort -- offering a mix of deeded timeshare interests, club memberships, and exchange-based travel benefits. The company is a wholly owned subsidiary of FantaSea Resorts Group, Inc. Flagship Resort Development Corporation sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-15047) on May 10, 2025. In its petition, the Debtor reports estimated assets between $50 million and $100 million. Honorable Bankruptcy Judge Jerrold N. Poslusny Jr. handles the case. The Debtors are represented by Warren J. Martin Jr., Esq. at PORZIO, BROMBERG & NEWMAN, P.C. The Debtor's Notice, Claims, Solicitation, Balloting & Administrative Agent is KROLL RESTRUCTURING ADMINISTRATION LLC. FTAI INFRASTRUCTURE: Wheeling Deal No Impact on Moody's 'B3' CFR ---------------------------------------------------------------- Moody's Ratings said that FTAI Infrastructure Inc.'s (FIP) proposed acquisition of The Wheeling Corporation (unrated), owner of the Wheeling & Lake Erie Railway Company (the "W&LE"), for cash consideration of $1.05 billion, has not currently impacted FIP's B3 Corporate Family Rating or its negative outlook. The acquisition is credit positive because it will strengthen FIP's railroad business through greater scale, broader reach, and more diverse customers. However, it will also raise financial leverage, introduce additional structural complexity, and heighten short-term execution and integration risks. Through the integration of W&LE with its existing Transtar operations, FIP projects substantial cost efficiencies, synergies, and long-term growth opportunities. Management anticipates that the consolidated freight rail segment will achieve an estimated annual Adjusted EBITDA of $200 million by the end of 2026. FIP's debt and preferred obligations are expected to rise significantly based on the company's plan to issue $1.25 billion in new debt and $1 billion in preferred stock. The company plans to finance and close the W&LE acquisition simultaneously with the refinancing of FIP's outstanding $600 million corporate notes and approximately $440 million of Series A preferred equity. Consequently, FIP's total debt level will rise by about $650 million and preferred obligations by over $550 million following the contemplated transactions. Additionally, the new preferred equity will be issued by a newly established holding company that will own both the W&LE and Transtar railroad assets, resulting in structural subordination for FIP's lenders. To achieve long-term benefits from the acquisition, management needs to complete the planned transactions, integrate the new railroad assets, and execute its business plans as expected. The company plans to increase earnings, lower leverage, and improve free cash flow through 2026. These risks are incorporated into the negative ratings outlook. The transaction is expected to close pursuant to rules established by the US Surface Transportation Board (STB) in the third quarter of 2025, subject to customary closing conditions. The Company expects to gain control of W&LE upon receipt of approval by the STB, at which time W&LE will become an affiliate of Transtar. FIP's B3 CFR reflects its very high financial leverage, which will increase from this acquisition; weak interest coverage; and inconsistent operating track record. The company has a complex capital structure, including significant non-recourse debt at various operating subsidiaries, and high-coupon preferred obligations that are growing rapidly because of suspended cash dividends (currently being paid in-kind). The planned refinancings will improve FIP's maturity profile and eliminate the existing high-coupon preferred obligations. This will enable larger cash distributions from the railroad operations to FIP to service its debt balance, improving its standalone financial leverage metrics despite the increased debt load. The credit profile is supported by FIP's strategically located and diversified assets providing critical logistics and infrastructure support, good revenue visibility backed by long-term contracts at Transtar, Jefferson, and Long Ridge, mostly high-quality and sticky customer base, and long lived assets that require low maintenance capital. FTAI Infrastructure Inc. is a publicly traded diversified infrastructure company with exposures to the energy, power and railroad transportation industries. GENESIS HEALTHCARE: PharMerica Seeks to Reconstitute Committee -------------------------------------------------------------- PharMerica Corporation, a creditor of Genesis Healthcare, Inc., is seeking to reconstitute the official committee of unsecured creditors appointed in the company's Chapter 11 case. In a motion filed with the U.S. Bankruptcy Court for the Northern District of Texas, PharMerica criticized the composition of the committee, saying it is "disproportionally comprised of litigation claimants." PharMerica's attorney, Jason Brookner, Esq., at Gray Reed, said five of the seven committee members are litigation claimants while only one member is an active trade creditor, resulting in the committee "not adequately representing" non-litigation unsecured claimants. "The committee's current super-majority of at least five litigation-related claimants elevates the interests of tort and litigation plaintiffs above trade vendors whose relationships with the debtors are critical to allow the business to operate during these Chapter 11 cases and emerge as a going concern," Mr. Brookner said. PharMerica asked the court to direct the U.S. trustee overseeing Genesis' Chapter 11 case to expand the committee's membership to nine and appoint the company and another trade creditor to the committee. The company previously asked the U.S. trustee to reconstitute the committee but the bankruptcy watchdog declined its request. PharMerica is one of Genesis' principal trade vendors. It holds a general unsecured claim of at least $23.8 million, including a 503(b)(9) claim of approximately $2.1 million. PharMerica can be reached through: Jason S. Brookner, Esq. Lydia R. Webb, Esq. Gray Reed 1601 Elm Street, Suite 4600 Dallas, TX 75201 Telephone: (214) 954-4135 Facsimile: (214) 953-1332 jbrookner@grayreed.com lwebb@grayreed.com About Genesis Healthcare Genesis Healthcare, Inc. (OTC Expert Market: GENN) is a holding company with subsidiaries that, on a combined basis, comprise one of the nation's largest post-acute care providers with nearly 200 skilled nursing centers and senior living communities in 17 states nationwide. Genesis subsidiaries also supply rehabilitation therapy to approximately 1,500 locations in 43 states and the District of Columbia. On July 9, 2025, Genesis Healthcare, Inc. and 298 of its affiliates and subsidiaries each filed voluntary petitions in Dallas, Texas, seeking relief under chapter 11 of the United States Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80185). The Debtors listed at least $1 billion in assets and liabilities as of the bankruptcy filing. As of the Petition Date, the Debtors had secured debt of $708.5 million and unsecured obligations totaling $1.568 billion. The Debtors tapped McDermott Will & Emery LLP as bankruptcy counsel, and Jefferies, LLC, as investment banker. Ankura Consulting Group, LLC, provides the services of senior managing directors Russell A. Perry and Louis E. Robichaux IV as CRO of the Debtors. Epiq Corporate Restructuring, LLC, is the claims agent. The U.S. Trustee for Region 6 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. Counsel to Welltower: John T. Cox III, Esq. Gibson, Dunn & Crutcher LLP 2001 Ross Avenue, Suite 2100 Dallas, TX 75201 tcox@gibsondunn.com - and - Jeffrey C. Krause, Esq. Michael G. Farag, Esq. Gibson, Dunn & Crutcher LLP 333 South Grand Avenue Los Angeles, CA 90071 jkrause@gibsondunn.com mfarag@gibsondunn.com Counsel to Omega: Robert J. Lemons, Esq. Goodwin Proctor LLP The New York Times Building 620 Eighth Avenue New York, NY 10018 rlemons@goodwinlaw.com - and - Leighton Aiken, Esq. Ferguson Braswell Fraser Kubasta PC 2500 Dallas Parkway, Suite 600 Plano, TX 75093 laiken@fbfk.law Counsel to the Debtors' Prepetition ABL Secured Parties: Kenneth J. Ottaviano, Esq. Blank Rome LLP 444 West Lake Street, Suite 1650 Chicago, IL 60606 ken.ottaviano@blankrome.com Counsel to the Debtors' DIP Lenders: James Muenker, Esq. DLA Piper LLP 1900 N. Pearl St., Suite 2200 Dallas, TX 75201 james.muenker@us.dlapiper.com GILBERT LEGGETT: Hires Ayers & Haidt P.A. as Counsel ---------------------------------------------------- Gilbert Leggett Farms, Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina to employ Ayers & Haidt, P.A. to serve as legal counsel in its Chapter 11 case. The firm will be paid based upon its normal and usual hourly billing rates. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The firm will be paid a retainer in the amount of $15,000. David J. Haidt, Esq., a partner at Ayers & Haidt, PA, 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: David J. Haidt, Esq. AYERS & HAIDT, PA P.O. Box 1544 307 Metcalf Street New Bern, NC 28563 Tel: (252) 638-2955 Email: davidhaidt@embarqmail.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 E-mail: david@ayershaidt.com GLORY BOUND: Unsecureds to Get Share of Income for 3 Years ---------------------------------------------------------- Glory Bound Day Care Ministries, Inc. filed with the U.S. Bankruptcy Court for the Northern District of Indiana a Plan of Reorganization dated August 8, 2025. The Debtor herein, operates from a leased facility located at 30677 Old U.S. 20 W., Elkhart, Indiana 46514. The real estate from which the Debtor operates is owned by LSE Investments, LLC. Glory Bound is engaged in the business of providing childcare and Pre-K services to low-income families. Glory Bound has been in business since 2017. Eric Baker (President) and Katherine Baker (CEO) created the business. Financial difficulties began in 2020 when the COVID-19 pandemic hit. Due to the pandemic, attendance dropped considerably. Low attendance produced low income, but monthly bills remained the same. After the pandemic, attendance slowly increased, however, in late 2023, Umbrella Corporation filed a claim against Glory Bound regarding a previously leased facility. An Order Granting Default Judgment was entered in the amount of $75,036.09. Shortly after judgment was entered, Umbrella Corporation sought collection actions which impacted upon Debtor's cash flow. Debtor was unable to maintain payments to creditors and sought relief under subchapter V of Chapter 11 of the Bankruptcy Code. The total of all claims listed by the Debtor as unsecured is $388,743.51. Class 4 consists of Unsecured Claims. The Allowed Claims of this Class shall be paid from the monthly Net Projected Disposable Income of the Debtor following payment therefrom to the Classes as provided for in the Plan. Said monthly Net Projected Disposable Income payment to the Disbursing Agent as provided under this Plan shall commence within thirty days after Confirmation of the Plan and shall be payable for three years, i.e., thirty-six months. The payments to this Class shall be made to the Disbursing Agent who shall make distribution to the Allowed Claims of this Class on a pro rata basis. The payments from the Net Projected Disposable Income shall be made by the Disbursing Agent as soon as practicable upon the receipt of such funds from the Debtor. The creditor Claims in this Class are treated as unsecured herein and shall neither have nor retain any liens in or against property of the Debtor or reorganized Debtor. The Debtor will remain in possession of its property and will control the operation and disposition thereof unless otherwise provided in this Plan. In advance of Plan Confirmation, the Debtor may commence monthly payments to a confirmation deposit account ("Confirmation Deposit Account") which shall be utilized in funding of Plan payments, such payments are referred to herein as "Pre-Confirmation Payments." The Confirmation Deposit Account may consist, for example, of a separate Debtor-in-Possession account established after the Chapter 11 proceeding was commenced but prior to Confirmation of the Plan. Within thirty days after Confirmation of the Plan, the Debtor shall begin making payments of the Projected Disposable Income to the Disbursing Agent on a monthly basis. Any Projected Disposable Income payment funds remaining after full payment of Classes 1 and 4 shall be distributed to Class 9 Unsecured Claims in accordance with the Plan. A full-text copy of the Plan of Reorganization dated August 8, 2025 is available at https://urlcurt.com/u?l=3bU4FI from PacerMonitor.com at no charge. Counsel to the Debtor: Daniel J. Skekloff, Esq. Scot T. Skekloff, Esq. Martin E. Seifert, Esq. HallerColvin PC 444 East Main Street Fort Wayne, IN 46802 Telephone: (260) 426-0444 Facsimile: (260) 422-0274 Email: dskekloff@hallercolvin.com sskekloff@hallercolvin.com mseifert@hallercolvin.com About Glory Bound Day Care Ministries Glory Bound Day Care Ministries, Inc. is engaged in the business of providing childcare and Pre-K services to low-income families. The Debtor sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ind. Case No. 25-30734) on May 13, 2025, listing up to $50,000 in assets and $100,001 to $500,000 in liabilities. Scot T. Skekloff, Esq. at Haller & Colvin, PC represents the Debtor as counsel. GREAT OUTDOORS: Moody's Alters Outlook on 'Ba3' CFR to Negative --------------------------------------------------------------- Moody's Ratings changed Great Outdoors Group, LLC ("GAO", f.k.a. Bass Pro Group, L.L.C.'s) outlook to negative from stable. Concurrently, Moody's affirmed the company's Ba3 corporate family rating, its Ba3-PD probability of default rating and its B1 senior secured term loan rating. The change in outlook to negative reflects the company's weaker than expected operating performance largely in its boating business as a result of increased industry promotional activity amid soft consumer demand for boats as consumers remain cautious about relatively large discretionary purchases due to ongoing uncertainty from tariffs and persistently high interest rates which have raised borrowing costs for boat financing. This has led to high financial leverage with Moody's adjusted debt to EBITDA at 6.0x. The affirmations reflects GAO's relatively stable interest coverage with EBITA to interest at 1.9x as well as its very good liquidity. It also reflects Moody's belief that GAO will prioritize deleveraging through earnings growth supported by sustained cost reduction initiatives, ongoing productivity improvements and deeper penetration into its high margin owned brand portfolio. The affirmation also reflects the company's well-recognized brand names and its solid market position and operational execution. RATINGS RATIONALE GAO's Ba3 CFR is supported by its well-recognized brand names and leading position in the outdoor recreational products retail sector. The company's margins benefit from its sizable and stable credit card income stream and significant owned brand penetration. In addition, GAO's business model as a destination experiential retailer sets it apart from mass market and big box competitors that do not provide the level of in-store customer service that is the foundation underpinning its loyal customer base. Further, its diverse product assortment and value price points somewhat mitigate earnings pressure in economic downturns. Partially offsetting these strengths are GAO's elevated leverage with Moody's adjusted debt to EBITDA of 6.0x for LTM ended June 28, 2025 up from from 5.2x in fiscal 2024 and EBITA/interest at 1.9x from 2.2x for the same period. This deterioration in credit metrics reflects weaker earnings in the company's boating and fishing/marine segments, although it was partially offset by continued growth in its credit card business. Moody's expects operating performance to improve over the next 12 months driven by increased penetration of GAO's owned brands, along with continued focus on cost controls and productivity improvements. In addition, Moody's recognizes the company's aggressive financial strategies, including the historic use of cash flow and incremental debt for the redemption of preferred and common equity interests, issued by GAO's parent and member distributions primarily for tax purposes. Moody's expects the company to engage in opportunistic acquisitions which could raise leverage. GAO has very good liquidity over the next 12 months, which is evidenced by its historically good free cash flow and a largely available $1.275 billion asset based lending ("ABL") facility that expires in 2030. As of June 28, 2025, the company had high unrestricted balance sheet cash and no near term debt maturities. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if operating performance does not improve, financial policies become more aggressive, or liquidity weakens. Quantitatively, the ratings could be downgraded if Moody's adjusted debt/EBITDA is sustained above 5.5x or EBITA/interest expense is below 1.75x. The ratings could be upgraded if the company demonstrates the ability and willingness to reduce debt/EBITDA (on a Moody's adjusted basis) below 4.0x and EBITA/interest expense above 2.5x on a sustained basis, while maintaining at least good liquidity. Headquartered in Springfield, Missouri, Great Outdoors Group, LLC, a wholly-owned subsidiary of The Great American Outdoors Group LLC, operates Bass Pro Shops and Cabela's, retailers of outdoor recreational products throughout the US and Canada. The company also manufactures and sells recreational boats and related marine products under the Tracker, Mako, Tahoe, Nitro, Ranger Boats, and Triton brand names. The company also owns the Big Cedar Lodge in Ridgedale, Missouri and Big Cypress Lodge in Memphis, Tennessee. Bass Pro is majority owned by its founder, John Morris. The company generates in excess of $7.5 billion in annual revenue. The principal methodology used in these ratings was Retail and Apparel published in November 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. HANESBRANDS INC: S&P Places 'B+' ICR on CreditWatch Positive ------------------------------------------------------------ S&P Global Ratings placed all its ratings on U.S.-based Hanesbrands Inc., including the 'B+' issuer credit rating, on CreditWatch with positive implications because S&P believes its credit profile will improve following its acquisition by Gildan. Following the close of the transaction, S&P could raise its ratings on Hanesbrands or withdraw them depending on the pro forma Gildan's final debt structure. Hanesbrands announced that it has entered into a definitive agreement to be acquired by Canada-based basic apparel manufacturer Gildan Activewear Inc. S&P said, "The CreditWatch positive placement reflects that we expect to align our ratings on Hanesbrands with our ratings on Gildan (BBB-/Stable/--), its new parent, following the transaction. We could also withdraw our ratings on Hanesbrands depending on how Gildan addresses its existing debt. "We anticipate the transaction will close in late 2025 or early 2026. The merger agreement has been unanimously approved by the boards of directors of both Gildan and Hanesbrands." That said, the transaction remains subject to the approval of Hanesbrands' shareholders and the fulfillment of other customary closing conditions, including regulatory approvals. Gildan has obtained $2.3 billion of committed transaction financing in connection with the acquisition, which comprises a $1.2 billion bridge facility and term loans with an aggregate value of $1.1 billion. Hanesbrands posted strong results during its second quarter ended June 28, 2025, including improvements in its sales, gross margin, and operating profit. The company also raised its full-year 2025 outlook for its net sales, operating profit, and earnings per share. Hanesbrands reduced its leverage to 4.9x for the 12-months ended June 28, 2025, from the mid-7x area the previous year. This was from items including cost savings, tariff mitigation efforts, and rising demand in basics, active, and new businesses following the sale of Champion in 2024. The proposed transaction will combine Gildan's vertically integrated manufacturing capabilities with Hanesbrands' brand and retail capabilities to create a leading low-cost apparel manufacturer. S&P said, "We believe the combined entity will have a differentiated and well-diversified business across products and channels. Moreover, we expect the transaction will enable Gildan to further establish a flexible manufacturing footprint, allowing it to efficiently manage any potential tariff impacts. We also expect the tie-up to support the realization of potential synergy opportunities, including cost savings. Gildan has identified at least $200 million of expected annual run-rate cost synergies across its supply chain, operations, and selling, general, and administrative expenses that it expects to realize in the three years following the acquisition." S&P said, "We will resolve the CreditWatch upon the completion of the acquisition. At that time, we will likely upgrade Hanesbrands or withdraw our ratings, depending on its post-transaction capital and organizational structure." HERTZ CORP: Fitch Affirms 'B-' LongTerm IDR, Outlook Negative ------------------------------------------------------------- Fitch Ratings has affirmed The Hertz Corporation's Long-Term Issuer Default Rating (IDR) at 'B-'. The Rating Outlook remains Negative. Fitch has also affirmed Hertz's first-lien senior secured debt rating at 'B+' with a Recovery Rating of 'RR2', second-lien senior secured exchangeable notes at 'CCC'/'RR6', and senior unsecured notes at 'CCC-'/'RR6'. The rating actions have been taken as part of a periodic peer review of North American fleet management companies, which is comprised of seven publicly rated firms. Key Rating Drivers Negative Outlook: The Negative Outlook reflects Fitch's expectation that Hertz's profitability will remain weak in the near term due to softening travel demand and still high fleet costs despite recent progress on fleet rotation. The Outlook also incorporates execution risk associated the firm's turnaround strategy aimed at sustainably enhancing operational efficiency and profitability and returning leverage and interest coverage metrics to more normalized levels. Established Market Position; Cyclicality a Constraint: The rating affirmation reflects Hertz's established market position and well-recognized global franchise within the car rental industry. The ratings are constrained by vehicle supply-demand dynamics, fluctuations in travel demand, and elevated interest rates, which expose the company to heightened residual value risk. Additional constraints include earnings volatility across market cycles, which can affect cash flow leverage and interest coverage metrics; continued reliance on secured, wholesale funding sources; high funding costs and liquidity needs. Established Franchise: Hertz is a leading global vehicle rental company with operations in North America, Europe, the Middle East and Africa. The company is among the top three largest car rental firms in the U.S., with recognized brands such as Hertz, Dollar and Thrifty. Hertz operates over 500,000 rental vehicles at over 11,000 locations globally, deriving approximately 80% of total revenue from the Americas segment and two-thirds of total revenue from the airport segment. Execution Risk Associated with Strategic Reset: While Hertz's fleet refresh has shown early signs of progress, as evidenced by sequential and yoy declines in depreciation per unit (DPU), Fitch believes execution risk remains elevated for achieving a sustained improvement in operating results. The company's ability to materially enhance profitability depends on consistently meeting its operational targets, including maintaining DPU below $300, revenue per unit above $1,500, and direct operating expense per day in the low $30s. Profitability enhancement is also dependent on favorable market conditions, such as strong travel demand, stable used vehicle prices, and manageable financing costs. Temporary Support from Tariffs: Residual values benefited from temporary valuation tailwinds, with demand for used cars driven by notable price increases for new vehicles following the imposition of U.S. tariffs on imported vehicles. In addition, Hertz's 2025 fleet procurement has reduced overall DPU and improved vehicle economics. However, pricing visibility for 2026 model-year vehicles remains limited due to trade volatility and an uncertain supply environment, and Fitch believes Hertz remains exposed to renewed depreciation pressure if market conditions soften. Weak Operating Performance: Profitability remains weak with continued negative adjusted Corporate EBITDA in recent quarters. The adjusted EBITDA margin was negative 9.6% for the trailing 12 months (TTM) ended 2Q25, compared with an average of 11.1% between 2021-2024, reflecting lower rental rates and reduced ability to spread operating costs across a smaller fleet. Management expects adjusted Corporate EBITDA to turn positive in 2H25 and improve to over $1 billion by 2027, supported by lower fleet costs, revenue enhancements, and operational efficiency initiatives. Fitch views this medium-term target as ambitious owing to travel demand volatility, implementation risk around fleet optimization and cost discipline, and limited visibility into longer-term DPU trends. Elevated Leverage: Hertz remains highly levered with over $5 billion in corporate debt. Cash flow leverage was negative 8.8x for the TTM ended 2Q25, which corresponds to Fitch's 'ccc or below' category benchmark range of greater than 5x. Fitch also considers cash flow leverage with operating lease expense add-backs as a complementary metric to reflect prevailing accounting standards. On this basis, leverage is estimated at negative 30x over the 2Q25 TTM period. Fitch expects leverage to improve in 2H25 as adjusted Corporate EBITDA strengthens. Further de-leveraging remains subject to the firm delivering on earnings enhancement initiatives. Limited Funding Flexibility; Incremental Liquidity Relief: Hertz's funding flexibility remains constrained, despite the recent extension of its first-lien senior secured revolving credit facility (RCF) to 2028 and the renewal of asset-backed securities (ABS) programs. The reduction in committed RCF capacity and reliance on ABS funding signal reduced lender appetite and limited unsecured market access. Corporate liquidity was $1.45 billion at 2Q25, comprised of $503 million in unrestricted cash and $946 million in first-lien RCF borrowing capacity. Liquidity is currently deemed adequate and incrementally supported by the deferral of make-whole litigation payments and Hertz's liquidity initiatives, including real estate sale-leaseback transactions and an at-the-market equity program, which permits the company to sell shares into the market to raise cash. However, Fitch believes liquidity requirements remain elevated, due to ongoing capital expenditure to complete ongoing fleet rotation and to support 2026 fleet procurement. With $500 million of senior unsecured notes maturing in December 2026, Fitch considers timely execution of a refinancing plan critical to preserving financial flexibility and limiting refinancing risk. Failure to proactively address this upcoming debt maturity could result in a ratings downgrade. Adjusted corporate EBITDA/corporate interest expense was negative 1.5x for the TTM ended 2Q25 and corresponds to Fitch's 'ccc or below' benchmark range of below 1x for low balance sheet usage finance and leasing companies. Fitch expects interest coverage to remain negative in the near term due to increased funding costs and weak profitability. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Inability to maintain sufficient liquidity to meet operational needs and address near- and medium-term obligations including litigation payments and the 2026 unsecured notes, resulting in increased refinancing risk; - Inability to execute on the stated productivity initiatives including fleet refresh, revenue enhancements, and cost optimization to significantly improve earnings; - Failure to reduce Fitch-calculated leverage to 5x or below and improve corporate interest coverage to 2x or more on a sustained basis; - A material degradation in the company's market share and competitive position. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An Outlook revision to Stable could be driven by strong execution of stated productivity initiatives and improving profitability that enables a sustained reduction in cash flow leverage towards 5x and an improvement in corporate interest coverage towards 2x over the Outlook horizon. Beyond that, positive rating momentum would depend on: - Enhanced consistency of operating performance resulting from disciplined fleet management and continued optimization of vehicle economics, consistent with the stated operational targets; - Maintenance of Fitch-calculated leverage below 3.5x; - Maintenance of corporate interest coverage above 3x on a sustained basis; and/or - Maintenance of an adequate liquidity profile to support capital expenditures and debt servicing needs through the cycle. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The first lien secured debt rating is two notches above the Long-Term IDR and reflects Fitch's view of superior recovery prospects under a stress scenario given the available collateral. The second-lien senior secured debt rating is two notches below the Long-Term IDR reflecting poor recovery prospects under a stress scenario given the size and asset encumbrance of the first-lien debt. The senior unsecured debt rating is three notches below the Long-Term IDR, reflecting poor recovery prospects under a stress scenario, given the structural subordination resulting from the heavily secured funding mix. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The senior secured debt and senior unsecured debt ratings are primarily sensitive to changes in Hertz's Long-Term IDR and, secondarily, to the relative recovery prospects of the instruments. ADJUSTMENTS - The Standalone Credit Profile (SCP) has been assigned below the implied SCP due to the following adjustment reasons: weakest link - funding, liquidity & coverage (negative). - The Sector Risk Operating Environment score has been assigned below the implied score due to the following adjustment reasons: Business model (negative); Regulatory and legal framework (negative). - The Business Profile score has been assigned below the implied score due to the following adjustment reason(s): Business model (negative). - The Earnings & Profitability score has been assigned below the implied score due to the following adjustment reasons: Earnings stability (negative); Historical and future metrics (negative). - The Funding, Liquidity & Coverage score has been assigned below the implied score due to the following adjustment reasons: Historical and future metrics (negative); Funding flexibility (negative). ESG Considerations The Hertz Corporation has an ESG Relevance Score of '4' for Management Strategy due to lack of visibility and concerns about execution of strategy, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Hertz Corporation (The) LT IDR B- Affirmed B- senior unsecured LT CCC- Affirmed RR6 CCC- senior secured LT B+ Affirmed RR2 B+ Senior Secured 2nd Lien LT CCC Affirmed RR6 CCC HILLCREST VENTURES: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Hillcrest Ventures, LLC 23679 Calabasas Road, Suite 1083 Calabasas, CA 91302 Business Description: Hillcrest Ventures LLC, a Calabasas, California-based real estate developer, undertakes large-scale property projects that include multifamily housing, mixed-use complexes and commercial developments. Chapter 11 Petition Date: August 13, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-11472 Judge: Hon. Martin R. Barash Debtor's Counsel: Raymond H. Aver, Esq. LAW OFFICES OF RAYMOND H. AVER, A PROFESSIONAL CORPORATION 11849 West Olympic Boulevard, Suite 204 Los Angeles, CA 90064 Tel: (310) 571-3511 Email: ray@averlaw.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million Brian R. Massie signed the petition as manager of Hilldale Group LLC, the co-manager of Hillcrest Ventures LLC. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/7DQSPOY/Hillcrest_Ventures_LLC__cacbke-25-11472__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. ARC Welding Inc. Steel Fabrication $54,166 6282 Ave Juan Diaz and Welding Riverside, CA 92509 2. Art-Thane Foam, Inc. Roofing $55,109 540 Sout Drew Street Mesa, AZ 85210 3. Best Choice Plumbing Plumbing Contract $127,657 and Repair Inc. 10327 Atlantic Avenue Unit C South Gate, CA 90280 4. Bradley Commercial Doors and $115,062 Construction Ser Hardware 4712 Admiralty Way #177 Marina Del Rey, CA 90292 5. Castro Music Inc. Property $105,000 7135 Hollywood Boulevard Management Los Angeles, CA 90046 6. Daktronics, Inc. Billboard $214,710 201 Daktronics Drive Fabrication PO Box 5110 & Delivery Brookings, SD 57006 7. Emerald Aire, Inc. HVAC $57,482 9114 Adams Avenue Unit 112 Huntington Beach, CA 92646 8. Flips Script LLC Framing and $26,600 7190 Sunset Boulevard Painting Suite 1404 Los Angeles, CA 90046 9. Goodkin Law Group, APC Legal Services $179,378 10880 Wilshite Boulevard Suite 1420 Los Angeles, CA 90024 10. Great American $1,128,941 Insurance Company c/o Lanak Y Hanna 1851 East First Street Suite 700 Santa Ana, CA 92705 11. L.M. Olson, Inc. Material $115,999 18017 Chatsworth Street Supplier #232 Granada Hills, CA 91344 12. Marc Macneal Security $61,500 837 2nd Street, #105 Los Angeles, CA 90006 13. Memo's Scaffolding Scaffolding $306,850 Norwalk, Inc. 12722 Carmenita Road Santa Fe Springs, CA 90670 14. Ozair Construction & Design Prime $903,153 6616 Beverly Boulevard Subcontractor Los Angeles, cA 90036 15. Parry Construction Inc. Prime $618,126 3019 Ocean Park Boulevard Contractor #365 Santa Monica, CA 90405 16. Poyser Company Metal $133,000 847 South Kraemer Boulevard Fabrication Placentia, CA 92870 17. Relativity Architects Architect $420,485 421 Colyton Street Services 2nd Floor Los Angeles, CA 90013 18. Rupert Construction Services Construction $51,165 9114 Adams Avenue Management #340 Huntington Beach, CA 92646 19. Schneider-Dorsey Property $157,619 Lyndall Agencies Insurance 7227 Chagrin Road Chagrin Falls, OH 44023 20. Sightline Commercial Railings and $246,695 Solutions, LLC Windscreen 7008 Northland Drive Suite 150 Minneapolis, MN 55428 HL PIT STOP: Steven Nosek Named Subchapter V Trustee ---------------------------------------------------- The Acting U.S. Trustee for Region 12 appointed Steven Nosek as Subchapter V trustee for HL Pit Stop, LLC. Mr. Nosek will be paid an hourly fee of $400 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Nosek declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Steven B. Nosek 10285 Yellow Circle Drive Hopkins, MN 55343 Email: snosek@noseklawfirm.com About HL Pit Stop HL Pit Stop, LLC operates a convenience-based retail business that combines a gas station with food, beverages, and general merchandise. The Company offers drive-thru meals, deli items, specialty coffee, snacks, and convenience store staples, catering to customers seeking quick service and variety along commuter routes or travel stops. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Minn. Case No. 25-42571) on August 7, 2025, with $105,860 in assets and $2,819,521 in liabilities. David Rollins, authorized representative, signed the petition. Judge Katherine A. Constantine presides over the case. Mary Sieling, Esq., at Sieling Law, PLLC represents the Debtor as bankruptcy counsel. HOLOGIC INC: Moody's Affirms 'Ba1' CFR & Alters Outlook to Positive ------------------------------------------------------------------- Moody's Ratings affirmed Hologic, Inc.'s ("Hologic") Ba1 Corporate Family Rating, Ba1-PD Probability of Default rating, Baa3 ratings on its senior secured bank credit facilities and Ba2 ratings on its senior unsecured notes. The speculative grade liquidity rating remains unchanged at SGL-1. The rating outlook is revised to positive from stable. The outlook revision to positive reflects Moody's expectations that Hologic will have robust credit metrics and very good liquidity driven by continued revenue and earnings growth. Top-line growth, excluding COVID-related revenues, will be driven by its strong market positions in its core franchises in digital mammography, cervical cancer screening and molecular diagnostics. RATINGS RATIONALE Hologic's Ba1 CFR reflects its scale, leading market positions within its core franchises and good revenue diversity by product and customer. The rating is also supported by the recurring nature of a significant proportion of the company's revenue generated from service contracts and consumables. Further, the company generates excellent free cash flow and has strong interest coverage and moderate financial leverage. Moody's estimates that the company's adjusted debt to EBITDA was approximately 1.9x for the twelve months ended June 28, 2025. Moody's expects leverage to remain close to 2x in the next 12-18 months. The rating is constrained by Hologic's exposure to general medical utilization trends and hospital capital equipment spending, particularly in the US. Other constraining factors include pricing pressure from customers, payors' increased focus on value-based healthcare, and competition from much larger medical products companies. Moody's expects that Hologic will actively pursue M&A opportunities. Moody's expects Hologic's liquidity to be very good over the next 12-18 months. Moody's expects the company to generate free cash flow of roughly $900 million annually, driven by strong revenue and earnings growth. The company has approximately $1.7 billion of cash as of June 28, 2025 and as of July 15, 2025, a $1.25 billion revolver with nothing drawn. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company continues to sustain organic revenue growth and maintain a stable EBITDA margin. Commitment to financial policies consistent with a typical investment grade credit profile including maintaining an all unsecured debt capital structure will support a ratings upgrade. Quantitatively, debt/EBITDA sustained below 2.5 times could support an upgrade. The ratings could be downgraded if the company were to experience a material decline in revenue and earnings or if financial policies were to become more aggressive such as utilizing debt to fund shareholder returns or make large-scale acquisitions. Lastly, the ratings could be downgraded if debt/EBITDA is sustained above 3.5 times. Hologic, Inc. is a leading developer, manufacturer and supplier of premium diagnostic products, medical imaging systems and surgical products with an emphasis on women's health. The company's core business units focus on the areas of diagnostics, breast health, gynecological surgical, and skeletal health. Revenues for the last twelve months ending June 28, 2025 were approximately $4.0 billion. The principal methodology used in these ratings was Medical Products and Devices published in October 2023. Hologic's Ba1 CFR is two notches below the Baa2 scorecard indicated outcome. The two notch difference reflects the company's financial policies which include utilizing secured debt and the possibility of higher leverage to pursue M&A opportunities. HOMESERVE USA: Moody's Affirms 'B1' CFR, Outlook Stable ------------------------------------------------------- Moody's Ratings affirmed HomeServe USA Holding Corp.'s (HomeServe) B1 corporate family rating and B1-PD probability of default rating. Concurrently, Moody's affirmed HomeServe's senior secured first lien credit facility, consisting of a $150 million revolver expiring 2028 and a $1.05 billion term loan due 2030, at B1. The outlook is stable. The affirmation of the B1 CFR reflects operating performance and credit metrics that have been and Moody's anticipates will remain in-line with expectations. Moody's expects steady demand for HomeServe's services to drive mid-single-digit percentage range annual organic revenue growth over the next 12 to 18 months. Moody's forecasts earnings remaining high but relatively flat despite revenue growth as the company increases spending in marketing. As a result, Moody's expects debt/EBITDA will remain in a low 4x range over the next 12 to 18 months. The affirmation also reflects HomeServe's very good liquidity profile, supported by $37 million of cash as of March 31, 2025, full access to its $150 million revolver and Moody's projection for solid free cash flow generation in excess of $70 million (excluding dividends) a year in 2025 and 2026. RATINGS RATIONALE HomeServe's B1 CFR reflects the company's leading market position as the largest national provider of service plans, repair and energy efficiency services. Stable operating performance expected as majority of its revenue is from membership fees with high retention rates and long-term insurance provider partnerships. HomeServe generates strong free cash flow due to its high profitability rates and limited capital expenditure needs and has a very good liquidity profile. The rating is constrained by HomeServe's small revenue size, niche operating scope and moderately high financial leverage with debt/EBITDA of roughly 4.2x for the 12 months ended March 31, 2025. The rating also reflects high customer concentration from its affinity partners (mainly local utilities and municipalities) and heavy reliance on three insurance underwriters. There is exposure to the competitive and fragmented HVAC (heating, ventilation and air conditioning) installation and repair market, although only roughly 10% of its revenue comes from its HVAC division. Due to its concentrated ownership by Brookfield and track record of using debt and asset sale proceeds to fund shareholder distributions, Moody's expects aggressive financial strategies, including potential re-leveraging transactions, which also limits the CFR. All financial metrics cited reflect Moody's standard adjustments. Moody's expects HomeServe will maintain a very good liquidity profile, which is supported by $37 million of cash as of March 31, 2025, full access to its $150 million revolver and very healthy free cash flow generation in excess of $70 million (excluding dividends) a year. The revolver is subject to a maximum springing net first lien leverage ratio test of 7.3x at 40% usage with no step-downs. Moody's do not expect HomeServe will need to use the revolver over the next year and do not expect the covenant trigger to be tested. However, if tested, Moody's expects the company will maintain ample cushion with this financial covenant. The B1 rating for the senior secured first lien credit facility rating is the same as the B1 CFR, reflecting its status as the preponderance of HomeServe's debt. The term loan and revolver are guaranteed by Hestia AcquireCo Ltd. and all wholly-owned US restricted subsidiaries of HomeServe other than any excluded subsidiary as defined by the credit agreement. The term loan and revolver also have a first priority security interest in substantially all assets of the borrower and guarantors. The stable outlook reflects Moody's expectations that debt/EBITDA leverage will remain in a low 4x range over the next 12 to 18 months. The stable outlook also reflects Moody's expectations for very good liquidity, supported by healthy free cash flow generation. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company significantly increases its scale, demonstrates conservative financial policies, such that Moody's expects debt/EBITDA to remain below 4x and EBITA/interest will be sustained above 3x, with very good liquidity and free cash flow/debt sustained above 10%. Improved governance through less concentrated ownership could also result in an upgrade. The ratings could be downgraded if the company's operating performance or liquidity materially deteriorates, or if financial strategies become more aggressive. Quantitatively, the rating could be downgraded if debt/EBITDA rises above 5x, EBITA/interest declines below 1.5x or free cash flow/debt declines to a mid single-digit percentage range. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. The net effect of any adjustments applied to rating factor scores or projected scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. HomeServe, based in Norwalk, CT, has been majority owned by Brookfield Infrastructure and institutional partners, since its January 2023 acquisition of HomeServe plc, the former parent company of HomeServe. Following the acquisition of HomeServe plc, HomeServe was spun into a standalone entity. HomeServe operates in 48 US states and 3 provinces in Canada. The company reported revenue for the twelve-month period ended March 31, 2025 was $836 million. HOOPERS DISTRIBUTING: Gets Extension to Access Cash Collateral -------------------------------------------------------------- Hoopers Distributing, LLC received another extension from the U.S. Bankruptcy Court for the Eastern District of North Carolina to use cash collateral. The seventh interim order authorized the Debtor to use cash collateral for its operating expenses in accordance with its budget, with a 10% variance allowed. The budget shows the Debtor's projected expenses of $127,853.86 for the period from August 1 to September 4. As protection, Kapitus, LLC's and Kalamata Capital Group, LLC's liens will extend to the Debtor's post-petition cash generated from sales and all other assets against which the secured creditors held liens. As additional protection, Kapitus will receive a cash payment of $1,334.17. The interim order will remain in full force and effect until September 4; the replacement of or termination of the seventh interim order by a subsequent order; or the filing of a notice of default, whichever comes first. The next hearing is scheduled for September 4. The Debtor's only significant source of income is through continued operations and the cash proceeds generated thereby. Certain proceeds generated from the Debtor's continuing operations may constitute cash collateral of Kapitus and Kalamata. Both secured creditors a UCC against the Debtor in 2024 purporting to cover all assets of the Debtor. However, the Debtor believes that any claim that may be asserted by the creditors against it is unenforceable. About Hoopers Distributing Hoopers Distributing, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-00447) on February 7, 2025, listing between $500,001 and $1 million in both assets and liabilities. J.M. Cook serves as Subchapter V trustee. Judge Joseph N. Callaway presides over the case. Benjamin E.F.B. Waller, Esq., at Hendren, Redwine & Malone, PLLC is the Debtor's legal counsel. Kapitus, LLC, as secured creditor, is represented by: Byron L. Saintsing, Esq. Smith Debnam Narron Drake Saintsing & Myers, LLP P.O. Box 176010 Raleigh, NC 27619-6010 Telephone: (919) 250-2000 bsaintsing@smithdebnamlaw.com HOOTERS OF AMERICA: US Trustee Opposes Ch. 11 Exit Plan Approval ---------------------------------------------------------------- Randi Love of Bloomberg Law reports that the Justice Department's bankruptcy watchdog has urged the court to reject Hooters of America LLC's bankruptcy exit plan, arguing it fails to clearly state that government claims against the restaurant chain will not be released. In a Tuesday, August 12, 2025, filing in the U.S. Bankruptcy Court for the Northern District of Texas, the U.S. Trustee pointed to the bankruptcy law's "police and regulatory power" exception, which preserves the government's authority to protect the public. "Preserving governmental entities' ability to protect public health and safety is particularly important in the context of a food service company," the U.S. Trustee noted. About Hooters of America Hooters of America, LLC, owner and operator of a restaurant chain with hundreds of locations in the United States, and its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80078) on March 31, 2025. Founded in 1983, the Debtors own and operate Hooters, a renowned brand in the casual dining and sports entertainment industries. Their global portfolio includes 151 company-owned and operated locations and 154 franchised locations across 17 countries. Known for their world-famous chicken wings, beverages, live sports, and legendary hospitality, the Debtors also partner with a major food products licensor to offer Hooters-branded frozen meals at 1,250 grocery store locations. The case is before the Hon. Scott W Everett. The Debtors Co-Bankruptcy Counsel are Holland N. O'Neil, Esq., Stephen A. Jones, Esq., and Zachary C. Zahn, Esq., at FOLEY & LARDNER LLP, in Dallas, Texas. The Debtors' General Bankruptcy Counsel are Ryan Preston Dahl, Esq., at ROPES & GRAY LLP, in New York, and Chris L. Dickerson, Esq., Rahmon J. Brown, Esq., and Michael K. Wheat, Esq., at ROPES & GRAY LLP, in Chicago, Illinois. The Debtors' Investment Banker is SOLIC CAPITAL, LLC. The Debtors' Financial Advisor is ACCORDION PARTNERS, LLC. The Debtors' Notice, Claims, Solicitation & Balloting Agent is KROLL RESTRUCTURING ADMINISTRATION LLC. HOUSE SPIRITS: Seeks to Sell Liquor Business at Auction ------------------------------------------------------- House Spirits Distillery LLC seeks approval from the U.S. Bankruptcy Court for the District of Delaware, to sell substantially all Assets, free and clear of liens, claims, interests, and encumbrances. The Debtor produces, markets, sells, and distributes high-quality American single malt whiskeys. Westward has become one of the most well-known and respected craft distilleries in the U.S., leading the way in the emerging Premium American Whiskey category. The Debtor seeks approval of bid procedures for the sale of the Debtor's assets, with the current version of the Reorganization Plan serving as the Stalking Horse Bid by the DIP Lenders. The Debtor stands behind the valuation set forth in the Liquidation Analysis, which took into consideration the fact that the Debtor conducted an extensive marketing process over the past year to sell the company or its assets and, even with the assistance of Liquor Investments LLC (Diageo), was unable to obtain a single offer. As everyone in the distilling industry knows, including the Objecting Parties, there is currently an industry-wide glut of whiskey inventory and virtually no market for bulk whiskey, particularly for Westward inventory, because (i) it is a unique product that cannot be sold as bourbon, rye, Scotch, or any other major category of whiskey, and (ii) most of it is less than four years old, and young casks are the most affected part of the bulk market. The DIP Lenders continue to be the only parties willing to financially support the Debtor. They are supportive of the proposed sale process and have agreed to serve as the Stalking Horse Bidder with de minimis bid protections. In addition, they have committed to provide critical additional funding for the Debtor to conduct a fulsome sale process and for the Debtor to continue to timely meet its postpetition obligations to landlords, vendors, and employees. The Debtor seeks approval of bidding procedures that will give parties ample time to conduct their necessary due diligence and formulate a bid, while allowing the Debtor to emerge from bankruptcy as early as September 30, 2025. The Debtor believes the proposed process is the most efficient path to emergence and will maximize creditor recoveries while minimizing administrative expenses. The Debtor faces several objection cases of its Reorganization Plan, which contribute to its financial challenges and difficulty to pay postpetition obligations. Faced with Plan objection issues, the Debtor's current leadership and management team acted diligently and aggressively and did everything they could to address the Debtor's liquidity challenges. However, despite management’s efforts to address operational issues and implement cost-savings initiatives, the Debtor’s financial situation continued to worsen. When the Debtor began exploring a potential sale, it contacted several investment bankers to assist it with the sale process. Every single investment banker turned down the engagement due to the size of the Debtor’s business, its operating losses, and poor market conditions. Accordingly, the Debtor’s management was forced to conduct the marketing process themselves, with some assistance from Diageo. The Debtor listed its barrels for sale with its brokers. The Debtor and Diageo also contacted at least 38 potential buyers and brokers to discuss a potential sale of the company or certain of its assets. Not a single party expressed any interest in even discussing a sale transaction with the Debtor, and Diageo reported the same with respect to its contacts. The parties who responded cited the same factors, as well as a massive glut of whiskey inventory as the primary reason they were not interested in making a purchase. Ultimately, the Debtor was unable to obtain the necessary liquidity to continue to run its business, and determined that filing the Chapter 11 Case was in the best interests of the Debtor, its creditors, and all stakeholders. The Debtor has drawn the full amount currently available to it under the DIP Credit Facility, with an outstanding balance, including interest and fees, of approximately $1,639,172.84. Since the Petition Date, the Debtor has been contacted by only a single party with a serious offer to purchase the company or its barrels: Cobblestone Brands, an entity associated with Mr. Krogstad, which indicated it was interested in purchasing barrels to build a new whiskey brand. On May 21, 2025, Cobblestone offered to purchase 3,400 casks of Cobblestone's choosing for a total consideration of $1.5 million. The following week, Cobblestone also indicated it would be interested in a smaller volume purchase of around 800 to 1,200 barrels for total consideration of between $360,000 and $540,000 with a mutual selection process. The Debtor advised Cobblestone that the proposed pricing would not work because it did not even cover the actual cost of producing and maturing the inventory to be sold, and that same whiskey could generate more value if sold as Westward Whiskey in the future. Cobblestone responded that it did not make sense for them to move forward at the price levels the Debtor indicated, given the realities of building a new brand in a challenging market category. The Debtor has already run an extensive marketing process over the course of the past 14 months and explored all available options, and the Debtor stands behind the amounts set forth in the Liquidation Analysis. When the Initial Plan was filed, the Debtor believed that Confirmation of a Plan was the best and most efficient manner to consummate the Debtor’s reorganization, minimizing the Debtor's time in bankruptcy and maximizing creditor recoveries. Recognizing that the Debtor urgently needs additional financing to continue to meet its postpetition payment obligations through August and September 2025 while it runs the proposed Sale process, the DIP Lenders have agreed to provide an aggregate incremental amount of $500,000 in financing pursuant to an amendment of the DIP Credit Facility, which will make $250,000 available to the Debtor immediately upon the Court’s approval of the amendment. The Debtor consulted with its DIP Lenders with respect to the proposed sale process, and the DIP Lenders agreed to be the Stalking Horse Bidder for the Debtor’s assets. The terms of the Stalking Horse Bid are reflected in the Plan. In short, the Stalking Horse Bid provides for the sale of substantially all of the Debtor’s Assets free and clear of all liens, claims, and encumbrances pursuant to a credit bid equaling the amount of outstanding DIP Claims as of the Effective Date, which amount is expected to be approximately $2.2 million. As one factor in both the Debtor's and DIP Lenders' demonstration of good faith and commitment to a fair and effective Sale process, the Debtor is not seeking, and the DIP Lenders are not requesting, a break-up fee (which is customarily afforded to stalking horse bidders in this context) in connection with the Stalking Horse Bid so as not to chill bidding. The DIP Lenders have requested, and the Debtor has accepted, to provide a limited expense reimbursement of up to $50,000.00 in connection with the Sale process. As noted below, the Debtor believes affording the DIP Lender with the Expense Reimbursement is a reasonable ask in connection with the DIP Lenders' willingness to fund the Sale process and remain the Stalking Horse Bidder throughout that process. The Debtor retains Cassel Salpeter & Co. LLC as its investment banker. The Debtor believes that a prompt sale of the Assets through the Plan following a comprehensive Sale process represents the best option available to maximize value for all stakeholders in this Chapter 11 Case. Specifically, through this Motion, the Debtor respectfully requests that this Court approve the following Sale timeline: (a) Entry of an Order Approving Bid Procedures: September 3, 2025. (b) Deadline to File and Serve Sale Notice: Within two (2) business days after the entry of the Bid Procedures Order. (c) Assignment Notice: No later than fourteen (14) days after entry of the Bid Procedures Order. (d) Assigned Contract Objection Deadline: No later than fourteen (14) days after the service of the Assignment Notice; provided, that to the extent any Assigned Contract counterparty is added to the Assignment Notice after the initial notice is served, such new Assigned Contract Counterparty shall have ten days from the date of service of the supplemental notice to object to the proposed cure amount and assignment to the Successful Bidder. (e) Bid Deadline: September 22, 2025, at 4:00 p.m. (Eastern Time) (Bid Deadline), or such later date as may be agreed to by the Debtor in the exercise of its reasonable business judgment after consultation with the Subchapter V Trustee. (f) Auction: September 24, 2025, at 10:00 a.m. (Eastern Time), or such later time as the Debtor determines, after consultation with the Subchapter V Trustee. (g) Successful Bidder Notice Deadline: By September 25, 2025, and in any event not more than 24 hours after closing or canceling the Auction. (h) Successful Bidder Objection Deadline: September 29, 2025, by 12:00 p.m. (Eastern Time). (i) Sale/Confirmation Hearing: September 30, 2025, at a time to be determined in accordance with the Court’s schedule. (j) Sale Closing / Effective Date: As provided in the Plan; provided, that the outside date for the Sale Closing / Effective Date shall be thirty (30) days after conclusion of the Auction, subject to extension as agreed by the Debtor, in consultation with the Subchapter V Trustee, in its business judgment. The Debtor believes that the relief requested by this Motion is in the best interests of the Debtor's Estate, its creditors, other stakeholders, and all other parties in interest, and should be approved. The Bid Procedures provide for an Expense Reimbursement of up to $50,000.00 of reasonable and documented out-of-pocket fees, each of which would constitute an administrative expense in the Chapter 11 Case and be payable from the proceeds of a Sale to a higher or better bidder (if any), in the event that the Stalking Horse Bid is not selected as the winning bidder. Given the Debtor's need to maximize the value of the Assets through a timely and efficient marketing and sale process, the ability to designate a Stalking Horse Bid and offer the Expense Reimbursement is justified, appropriate, and essential. About House Spirits Distillery LLC House Spirits Distillery LLC, operating under the name Westward Whiskey, is a Portland, Oregon-based distillery that produces, markets, sells, and distributes high-quality American single malt whiskeys. Westward has become one of the most well-known and respected craft distilleries in the U.S., leading the way in the emerging Premium American Whiskey category. Unlike traditional single malts made only from malted barley, Westward employs a distinctive process that blends elements from American craft ale, Scottish single malt, and bourbon traditions. The distillery benefits from the unique climate of the Pacific Northwest, where hot, dry summers and cool, wet winters contribute to the development of exceptional, world-class whiskeys. House Spirits Distillery LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10660) on April 6, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Karen B. Owens handles the case. The Debtor is represented by Joseph C. Barsalona II, Esq. at PASHMAN STEIN WALDER HAYDEN, P.C. The Debt HUDSON SQUARE: Nicole Nigrelli Named Subchapter V Trustee --------------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed Nicole Nigrelli, Esq., at Ciardi, Ciardi & Astin as Subchapter V trustee for Hudson Square Hospitality Inc. Ms. Nigrelli will be paid an hourly fee of $450 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Nigrelli declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Nicole M. Nigrelli, Esq. Ciardi, Ciardi & Astin 1905 Spruce Street Philadelphia, PA 19103 Phone: (215) 557-3550 ext. 115 Email: nnigrelli@ciardilaw.com About Hudson Square Hospitality Inc. Hudson Square Hospitality, Inc. operated a hospitality venue in Matawan, New Jersey, offering restaurant, lounge, and banquet services. Hudson Square Hospitality Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-18051 on July 31, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. The Debtor is represented by Anthony Sodono, III, Esq., at McManimon, Scotland & Baumann, LLC. I A P CONSTRUCTION: Court Extends Cash Collateral Access to Sept. 4 ------------------------------------------------------------------- I A P Construction, Inc. received sixth interim approval from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division to use cash collateral until September 4. The Debtor requires access to cash collateral to pay the expenses set forth in its budget, with 10% variance permitted. American Community Bank & Trust may have an interest in the Debtor's assets, including cash collateral. As protection for the use of its cash collateral, the bank will be granted replacement liens on all post-petition property of the Debtor, including cash collateral, to the same extent, validity and priority as its pre-bankruptcy liens. The Debtor's right to use cash collateral will terminate upon entry of a court order directing the cessation of the use of cash collateral; dismissal of the Debtor's Chapter 11 case; or conversion of the case to one under Chapter 7. The next hearing is scheduled for September 3. About I A P Construction I A P Construction, Inc. filed Chapter 11 petition (Bankr. N.D. Ill. Case No. 25-02709) on February 24, 2025, listing up to $1 million in both assets and liabilities. Ian Proce, president of I AP, signed the petition. Judge Deborah L. Thorne oversees the case. The Debtor is represented by: David R. Herzog, Esq. Law Offices Of David R Herzog Tel: 312-977-1600 Email: drh@dherzoglaw.com IMMANUEL SOBRIETY: Unsecureds Will Get 2.40% over 60 Months ----------------------------------------------------------- Immanuel Sobriety Inc. submitted a Fifth Amended Plan of Reorganization dated August 7, 2025. The Debtor is licensed and accredited to provide programs of treatment, detox, case management, education, prevention, counseling, and rehabilitation for individuals battling substance abuse and mental disorders. The Debtor's assets consist of cash on hand, furnishings in its residential locations, office equipment and six motor vehicles (primarily vans used to transport the Debtor's residents). Debtor believes its assets are worth approximately $113,000.00, which consists primarily of cash on hand ($20,000). The Debtor's remaining assets include its vehicles to operate its business (value of approximately $60,000) and miscellaneous office equipment and residential furniture (value of approximately $33,000). As the Court is aware, in May 2024, Debtor was selected for a $3 million contract with Medi-Cal, a significant milestone that will enhance Debtor's ability to generate revenue moving forward. Since that time, Debtor has been working diligently to meet all the necessary requirements associated with this contract, ensuring compliance with Medi-Cal's guidelines and regulations. Debtor is now in what it is believe to be the final stages of this process. The Plan will be funded by the following sources based on available capital: (1) the cash reserves the Debtor has accumulated during the Bankruptcy Case and has on hand in the Debtor's possession on the Effective Date; (2) a financial contribution in the amount of $100,000.00 from the Debtor's principal, Elizabeth Reid, which is being made as a gift on behalf of the Debtor, and which will be used in part to directly satisfy a portion of allowed administrative expenses claims of estate professionals which will significantly decrease the amount of administrative fees due on the Effective Date and under the Plan and (3) cash generated from the Debtor's ongoing business operations. Under the Plan, general unsecured creditors will receive a distribution equal to at least 2.40% of each claim (a total distribution of $18,000.00 paid to Class 6). In a Chapter 7 scenario, general unsecured creditors would receive no payment. As a result, creditor distributions under the Plan are greater than distributions that would be made if this were a Chapter 7 case. Class 6 consists of General Unsecured Claims. Total amount of Class 6 claims is approximately $749,891.60. Pursuant to the Order Granting the Motion to Value, Class 6 claimants include the unsecured claims of Capitalize Group ($17,971.80), Hunter Caroline ($45,000) and Fundworks ($109,000). In full satisfaction of Class 6 claims, allowed Class 6 claimants will be paid a prorated distribution equal to 2.40% of their claim paid. The first payment shall be made on the fifteenth day of the first month following the Effective Date and continue on the fifteenth day of every month for sixty months until paid in full. This Class shall receive $300.00 per month for sixty months following the Effective Date with a total payout of $18,000.00. The Plan will be funded with the following sources: * the cash reserves the Debtor has accumulated during the Bankruptcy Case and has on hand in the Debtor’s possession on the Effective Date; and * cash generated from the Debtor’s ongoing business operations. However, to facilitate confirmation and implementation of the Plan, the Debtor's principal will make third-party gifts directly to all of Debtor's current professionals who have orders by this Court for allowed fees. These payments are not sourced from the estate and are being made in the principal's individual capacity as a gesture of gratitude for the contributions by these professionals during the entirety of this case. These gifts do not affect the Debtor's obligations under the Plan or impair the treatment of any creditor class. A full-text copy of the Fifth Amended Plan dated August 7, 2025 is available at https://urlcurt.com/u?l=MOHovr from PacerMonitor.com at no charge. Counsel for the Debtor: Sheila Esmaili, Esq. Law Offices of Sheila Esmaili 10940 Wilshire Blvd., Suite 1600 Los Angeles, CA 90024 Telephone: (310) 734-8209 Facsimile: (877) 738-6220 Email: SELaw@bankruptcyhelpla.com About Immanuel Sobriety Immanuel Sobriety Inc. provides drug and alcohol rehabilitation programs and treatment services. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-10806) on March 2, 2023. In the petition signed by its chief executive officer, Elizabeth Reid, the Debtor disclosed up to $500,000 in assets and up to $1 million in liabilities. Judge Wayne Johnson oversees the case. The Law Office of Crystle J. Lindsey represents the Debtor as legal counsel. Tamar Terzian is the patient care ombudsman appointed in the Debtor's Chapter 11 case. IMPRO SYNERGIES: Hires Mark Escoferry P.A. as Accountant -------------------------------------------------------- Impro Synergies LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Mark Escoferry, P.A. as accountant. The firm will prepare the Debtor's 2024 federal income tax return and any related services that may be appropriate. The firm will be paid $1,250 for the preparation of the Debtor's 2024 tax return and related services. As disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Mark Escoferry Mark Escoferry, P.A. 8645 N. Military Trail, Suite 503 Palm Beach Gardens, FL 33410 Tel: (561) 627-1404 About Impro Synergies LLC Impro Synergies LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla. Case No. 25-18274) on July 21, 2025. The Debtor hires Mancuso Law, P.A. as counsel. INNOVATE CORP: Swings to $21M Net Loss in Fiscal Q2 --------------------------------------------------- Innovate Corp. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $21 million for the three months ended June 30, 2025, compared to a net income of $13.9 million for the three months ended June 30, 2024. For the six months ended June 30, 2025, the Company reported a net loss of $46.8 million, compared to a net loss of $6.2 million for the same period in 2024. The Company had an accumulated deficit of $566.2 billion as of June 30, 2025. As of June 30, 2025, the Company had $890.9 million in total assets, $1.1 billion in total liabilities, $17.1 million in total temporary equity and $206.4 million in total stockholders' deficit. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/6fe35dj2 About Innovate New York-based Innovate Corp. -- innovatecorp.com -- is a diversified holding company that has a portfolio of subsidiaries in a variety of operating segments. The Company seeks to grow these businesses so that they can generate long-term sustainable free cash flow and attractive returns in order to maximize value for all stakeholders. As of Dec. 31, 2023, its three operating platforms or reportable segments, based on management's organization of the enterprise, are Infrastructure, Life Sciences, and Spectrum, plus its other segment, which includes businesses that do not meet the separately reportable segment thresholds. New York, N.Y.-based BDO USA, P.C., the Company's auditor since 2011, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2024, citing the Company has maturities of certain debt obligations that exceed its current and forecasted cash balances within one year from the date of this report. These conditions raise substantial doubt about its ability to continue as a going concern. * * * In Aug. 2025, S&P Global Ratings lowered its long-term issuer credit rating on Innovate Corp to 'SD' (selective default) from 'CC' and its issue rating on the 8.5% senior secured notes due 2026 to 'D' (default) from 'CC'. S&P does not assign outlooks to default ratings. S&P said, "The downgrade follows Innovate's completion of a debt exchange that we view as distressed. We consider this transaction distressed based on our view that it offers debtholders less value than originally promised. Moreover, we believe that if the debt restructuring hadn't happened, there would be a realistic possibility of a conventional default over the near to medium term given the company's weak operating performance and limited liquidity." INTERFREIGHT SYSTEMS: Amends Plan to Include Sumitomo Secured Claim ------------------------------------------------------------------- Interfreight Systems, Inc., submitted a Third Amended Subchapter V Plan dated August 8, 2025. This Third Amended Plan of Reorganization proposes to pay creditors of the Debtor from future revenues generated by the Debtor's business. The Plan provides that all administrative creditors will be paid in full on the Effective Date of the Plan (which is 30 days after the Order confirming the Plan is a final Order) unless otherwise agreed. Priority tax claims will receive 100% of their allowed claims over the period of the Plan term (5 years). Secured Creditors will be paid 100% of their secured claims under Class 1 of the Plan to the extent of their allowed secured claims. Allowed Class 2 general unsecured creditors will receive a pro rata share of the Unsecured Creditor Payment over a period of 5 years, which shall equal approximately 2-3% distribution on their claims. Class 3 Claims of Equity Holders will not receive a distribution unless all other classes of creditors receive payment in full. Class 1(b) consists of the Secured Claim of BMO Bank NA. BMO Bank NA asserts several claims against the Debtor's estate (collectively, the "BMO Claims") asserting a security interest in the collateral (the "BMO Collateral"). The BMO Claims are allowed as secured claims in the amount of $445,000 in the aggregate LESS adequate protection payments paid by the Debtor during the course of the Bankruptcy Case (the "BMO Secured Claims"). The monthly payments for the BMO Secured Claims are are subject to modification based upon agreement between the Debtor and BMO that the total aggregate amount of the BMO Secured Claims is $445,000. Payments on the BMO Secured Claims shall be made on the 1st day of every month and shall commence on the 1st date of the month following the Effective Date. The aggregate monthly payments to BMO on the Secured Claims are $8,393.52 per month, or such lower amount after application of the adequate protection payments to the Allowed BMO Secured Claims. BMO shall retain its liens on and security interest in the BMO Collateral until its Secured Claims are paid in full. Class 1(b) consists of the Secured Claim of DLL Financial Solution Services, Inc. DLL Financial Solution Services, Inc. is owed approximately $294,532 from the Debtor (the "DLL Claims") pursuant to a series of loans between the Debtor and DLL, which are secured by certain collateral set forth below (the "DLL Collateral"). The DLL Claims are allowed as secured claims in the amounts set forth below LESS application of adequate protection payments made by the Debtor to DLL during the course of the Bankruptcy Case (the "DLL Secured Claims"). The DLL Secured Claims shall be paid in full over a period of 60 months at the nondefault rate of interest. Payments on the DLL Secured Claims shall be made on the 1st day of every month and shall commence on the 1st date of the month following the Effective Date. The aggregate monthly payments to DLL on the Secured Claims are $5,659.51 per month or such lower amount after application of the adequate protection payments to the Allowed DLL Secured Claims. Class 1(c) consists of the Secured Claim of US Bank. US Bank is owed approximately $70,000 from the Debtor which is secured by two 2023 Stoughton trailers VIN x4913 and 4915 (the "US Bank Collateral"). The US Bank Collateral has a value of $46,000 LESS the amount of adequate protection payments made by the Debtor to US Bank during the course of the Bankruptcy Case (the "US Bank Secured Claim"). The US Bank Secured Claim shall be paid in full over a period of 60 months at 6% interest per annum. The monthly payments for the US Bank Secured Claim are $889.31, or such lower amount after application of the adequate protection payments to the Allowed US Bank Secured Claim. Payments on the US Bank Secured Claim shall be made on the 1st day of every month and shall commence on the 1st date of the month following the Effective Date. US Bank shall retain its liens on and security interest in the US Bank Collateral until its Secured Claim is paid in full. Class 1(d) consists of the Secured Claim of Sumitomo Mitsui Finance & Leasing Company. Sumitomo Mitsui Finance & Leasing Company filed a claim for $196,100.73, secured by liens on and security interests in (a) 2021 Volvo VNL Series VIN x0481; and (b) 2019 Freightliner Cascadia Series VIN x4744 (the "Sumitomo Collateral"). The Sumitomo Collateral has a value of $36,000 and $26,000 respectively for a total allowed secured claim of $62,000 LESS adequate protection payments made by the Debtor to Sumitomo during the course of the Bankruptcy Case (the "Sumitomo Secured Claim"). The Sumitomo Secured Claim shall be paid in full over a period of 60 months at the nondefault contract interest rate of 9% per annum. The monthly payments for the Sumitomo Secured Claim are $1,287.02, or such lower amount upon application of the adequate protection payments to the Allowed Sumitomo Secured Claim. Payments on the Sumitomo Secured Claim shall be made on the 1st day of every month and shall commence on the 1st date of the month following the Effective Date. Sumitomo shall retain its liens on and security interest in the Sumitomo Collateral until its Secured Claim is paid in full. The Amended Plan does not alter the proposed treatment for unsecured creditors and the equity holder: * Class 2 consists of Allowed Unsecured Claims Holders of allowed unsecured claims shall receive a pro rata share of the Unsecured Creditor Payments on an annual basis for a period of 5 years beginning on the 1st anniversary of the Effective Date of the Plan, and continuing yearly for another 4 years. The Unsecured Creditor Payments shall equal $25,000 in the aggregate and each yearly payment shall be $5,000 for five payments. Based upon the unsecured claims (which includes deficiency claims of secured creditors), the estimated distribution to unsecured creditors is 2-3%. No distribution will be made for unsecured claims which were (i) scheduled as disputed; and (ii) no timely proof of claim was filed. * Class 3 consists of Equity Security Holders. Equity security holders shall retain their interests in the Debtor. In addition, the principal of the Debtor will be entitled to a salary for his work on behalf of the Debtor. The Plan will be funded from income of the Debtor. The Debtor will be the disbursing agent and will be responsible for making all of the payments under the Plan. The principal of the Debtor, Viktor Kotsev, will continue to serve as President of the Debtor, and will be responsible for effectuating all the Plan payments and provisions on behalf of the Debtor. A full-text copy of the Third Amended Plan dated August 8, 2025 is available at https://urlcurt.com/u?l=tVGdqc from PacerMonitor.com at no charge. Counsel to the Debtor: David Freydin, Esq. Law Offices of David Freydin, PC 8707 Skokie Blvd., Ste. 305 Skokie, IL 60077 Telephone: (847) 972-6157 Facsimile: (866) 897-7577 Email: david.freydin@freydinlaw.com Miriam Stein Granek, Esq. Gutnicki LLP 4711 Golf Road, Suite 200 Skokie, IL 60076 Tel: (847) 745-6592 Email: mgranek@gutnicki.com About Interfreight Systems Interfreight Systems Inc. provides comprehensive logistics and transportation services that connect businesses to markets worldwide. Interfreight Systems sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-18891) on Dec. 18, 2024, with total assets of $828,100 and total liabilities of $1,549,076. Viktor Kotsev, president of Interfreight Systems, signed the petition. The Law Offices of David Freydin, PC, serves as the Debtor's counsel. IPG FRANCHISING: Seeks Chapter 11 Bankruptcy in Florida ------------------------------------------------------- On August 8, 2025, IPG Franchising Inc. filed Chapter 11 protection in the Middle District of Florida. 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 IPG Franchising Inc. IPG Franchising Inc. operates as a franchisor specializing in vacation rental property management. The Company offers turnkey franchise solutions that enable individuals to enter the U.S. vacation rental market, providing training, technology, and operational support primarily focused on the Central Florida region near major tourist destinations like Walt Disney World. IPG Franchising Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-05025) on August 8, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. The Debtor is represented by Chad Van Horn, Esq. at VAN HORN LAW GROUP, P.A. JLM RESOURCES: Case Summary & 19 Unsecured Creditors ---------------------------------------------------- Debtor: JLM Resources, Inc. d/b/a Procraft Windows d/b/a Procraft Industries 6710 220th St. Unit 1 Mountlake Terrace, WA 98043 Business Description: JLM Resources, Inc., doing business as Procraft Windows, provides window and door products and installation services in King and Snohomish counties, Washington. The Company, established in 1985, serves residential clients with a focus on replacement windows and doors, completing over 22,000 projects for more than 18,000 homes. It operates as a family-owned business with a team of experienced craftsmen and offers a lifetime installation warranty. Chapter 11 Petition Date: August 13, 2025 Court: United States Bankruptcy Court Western District of Washington Case No.: 25-12238 Judge: Hon. Christopher M Alston Debtor's Counsel: Jennifer L. 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 Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Stacy Slocum 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/E744H5Q/JLM_Resources_Inc__wawbke-25-12238__0001.0.pdf?mcid=tGE4TAMA KBR INC: S&P Alters Outlook to Negative, Affirms 'BB+' ICR ---------------------------------------------------------- S&P Global Ratings affirmed its 'BB+' issuer credit rating on KBR Inc. while revising the outlook to negative from stable. At the same time, S&P affirmed the issue-level rating on all rated debt, while recovery ratings are unchanged. The negative outlook reflects its expectation the company's funds from operations (FFO) to debt could remain below 30% in 2025 and 2026. KBR Inc.'s credit metrics could fall below recent expectations due to program delays and terminations and slower debt repayment. S&P said, "The negative outlook reflects our expectation that credit metrics will not improve as quickly as we previously forecasted. KBR's revenues are growing more slowly than anticipated for a variety of reasons, and cash flows are weaker as a result. Even with continued solid margin performance, FFO will likely be below previous expectations through next year, while total debt is higher due to less debt repayment. The company took on $550 million of additional debt in 2024 to fund its acquisition of LinQuest. We now expect FFO to debt of 24%-27% in 2025 and 28%-31% in 2026, compared with our previous forecast of over 30%. "We believe revenue growth will be modest. Earlier this year, the U.S. Transportation Command terminated KBR's HomeSafe contract. The entire contract was terminated and KBR isn't being replaced, but this doesn't change our view of KBR's performance and ability to execute on contracts going forward. However, it is a significant negative impact on near-term revenue, as KBR expected it to generate about $400 million through the remainder of 2025. KBR has also experienced reductions in other contracts some delays in awards, and consistently slower activity in the IT services sector overall after the Trump administration took actions to reduce government spending and staffing levels earlier this year. "As a result, the company's trailing-12-month book to bill ratio sits at 1.0x as of July 4, 2025, which is not indicative of significant organic growth moving forward. We now expect total revenue growth of 2%-5% in 2025 and 4%-7% in 2026, compared with our previous expectation of over 20% in 2025 and 12%-15% in 2026. Revenue growth in 2025 incorporates the full-year effect of the addition of LinQuest, which closed in late 2024. We estimate sales will be slightly down this year on an organic basis. "We anticipate share repurchases will likely absorb some free cash flow. With $204 million in share repurchases as of July 4, 2025, we don't expect KBR to execute any additional repurchases in 2025, though the possibility for more exists. We expected the company to execute $220 million-$250 million annually starting in 2026. This level of share repurchases, paired with a steady dividend, will leave less cash available for debt reduction than we previously anticipated, contributing to weaker credit metrics. "The negative outlook reflects our expectation that FFO to debt could be below 30% through 2026 as revenues grow more slowly than we previously forecasted. However, the government business has shown resilience in the past and the sustainable technology solutions business has been mostly unaffected." S&P could lower the rating on KBR if it expects FFO to debt to be below 30% for an extended period. This could occur if: -- Government spending declines or program delays are extended; -- KBR loses major contracts; or -- The company engages in significant share repurchases or acquisitions beyond S&P's expectations. S&P could revises the outlook on KBR to stable if FFO is tracking above 30% and S&P expects it to reach and remain at that level, even with potential acquisitions and shareholder returns. This could occur if: -- KBR grows its high-value-added government services revenue base; -- The sustainable technology solutions (STS) business grows beyond S&P's expectations; and -- Management publicly commits to maintaining credit ratios at threshold levels. KIDZ TYME: Seeks Subchapter V Bankruptcy in Florida --------------------------------------------------- On August 11, 2025, Kidz Tyme Foundation Incorporated filed Chapter 11 protection in the Southern District of Florida. According to court filing, the Debtor reports $842,177 in debt owed to 1 and 49 creditors. The petition states funds will not be available to unsecured creditors. About Kidz Tyme Foundation Incorporated Kidz Tyme Foundation Incorporated leases real estate properties in Miami, Florida, with its principal holdings located at 4332, 4310 and 4350 NW 17 Avenue. Kidz Tyme Foundation Incorporated sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla.Case No. 25-19271) on August 11, 2025. In its petition, the Debtor reports total assets of $2,125,419 and total liabilities of $842,177. Honorable Bankruptcy Judge Corali Lopez-Castro handles the case. The Debtor is represented by Christopher Hixson, Esq. at HIXSON LAW GROUP. KLIMA CONTROL: Court Extends Cash Collateral Access to Aug. 27 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida extended Klima Control Air Conditioning & Heating, LLC's authority to use cash collateral until August 27. The Debtor was initially allowed to access cash collateral through July 31 pursuant to the court's July 22 interim order and to provide Gemaire Distributors, LLC, with adequate protection in the form of replacement liens on post-petition cash and equivalents and monthly payments of $8,000 until plan confirmation. The July 22 interim order remains in full force and effect pending further order of the court. A final hearing is set for August 27. The Debtor's cash collateral is subject to a lien held by Gemaire, a creditor that previously extended credit to the Debtor and secured its interest via a UCC-1 financing statement recorded in 2020. After a prior default by the Debtor, the parties settled a related lawsuit, with the Debtor owing Gemaire $472,958 as of the bankruptcy filing date. The settlement included 18 monthly payments of $27,042, of which only one had been made before the bankruptcy. About Klima Control Air Conditioning & Heating Klima Control Air Conditioning & Heating, LLC is an air conditioning and heating services provider operating as Super Cool in Florida. It specializes in HVAC installation, maintenance, and repair services with locations in Pompano Beach and West Palm Beach. Klima Control Air Conditioning & Heating sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-17717) on July 7, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and liabilities. Judge Scott M. Grossman handles the case. Shirley Palumbo, Esq., is the Debtor's legal counsel. Gemaire Distributors, LLC, as secured creditor, is represented by: Scott S. Sheffler, Esq. Worman & Sheffler, P.A. 2600 Lake Lucien Drive, Suite 405 Maitland, FL 32751 Phone: (407) 843-5353 Fax: (407) 841-9516 ssheffler@wormanlaw.com KRT INC: Unsecureds Will Get 100% of Claims over 60 Months ---------------------------------------------------------- KRT, Inc. filed with the U.S. Bankruptcy Court for the District of Wyoming a Disclosure Statement describing Chapter 11 Plan dated August 8, 2025. The Debtor is a Corporation. Since 2006, the Debtor has been in the business of providing rig moving services in the oilfield industry. More recently, KRT has engaged in pipeline installation for the oilfield industry. Prior to the bankruptcy filing, KRT was in the business of rig moving and pipeline installation in the oil and gas industry. During 2024 the Company had average monthly revenue of approximately $1,175,410. In 2024 the Company suffered a significant embezzlement in connection with its New Mexico operations, which adversely affected its cash flow. In addition, in or about July 2024, KRT refinanced one of its loans with Commercial Credit Group, Inc. ("CCG") authorizing CCG to send a check for $422,000 to the Internal Revenue Service ("IRS") for the Company's payroll taxes. In January 2025, one of Debtor's largest secured creditors, Caterpillar Financial Services, Inc., announced its intention to repossess the heavy equipment that KRT uses in connection with its pipeline installation business if all arrearages were not paid by February 8, 2025. To prevent such repossession of its heavy equipment, KRT filed its petition in this case on February 7, 2025. The Debtor's pipeline installation operations are exceeding expectations, with large projects currently underway in New Mexico. However, due to the significant lag time between the rendering of services and payment from KRT's customers, cash flow issues have resulted in the necessity for bridge loans from KRT's insiders to KRT in order to meet payroll and other obligations. Because KRT's accounts receivable are robust, KRT expect to be able to pay all creditors one hundred percent of their allowed claims, albeit over a five-year period. Class # 7 consists of Unsecured non-priority claims with a face amount of less than $1,000.00. These total $1,330.26. This Class shall be paid in full in cash within 30 days of the effective date of the Plan. This Class is impaired. Class # 8 consists of General Unsecured Non-priority Claims. These claims nominally total $603,287.26. KRT reserves the right to dispute one or more of these unsecured nonpriority claims and the monthly payment, calculated on the entire face value, is a maximum estimate only. This Class shall receive a monthly payment of $11,118.62 with 4.03% federal judgment rate for 60 months. This Class will receive a distribution of 100% of their allowed claims. This Class is impaired. Class #9 consists of Equity interest holders Kevin and Laurie Ringdahl, holding 100% of the shares of KRT, Inc. as husband and wife. Existing equity owners' shares will be canceled. New shares in the reorganized entity will be issued to KRT Construction, LLC for new value contributed. Payments under the Plan will be made from revenue from operations. A full-text copy of the Disclosure Statement dated August 8, 2025 is available at https://urlcurt.com/u?l=DImpvq from PacerMonitor.com at no charge. Counsel to the Debtor: Clark Stith, Esq. 505 Broadway Rock Springs, WY 82901 Tel: (307) 382-5565 Fax: (307) 382-5552 Email: clarkstith@wyolawyers.com About KRT Inc. KRT Inc. operates within the specialized freight trucking industry. KRT Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Wyo. Case No. 25-20036) on February 7, 2025. In its petition, the Debtor reports total assets of $6,382,948 and total liabilities of $7,272,774. Honorable Bankruptcy Judge Cathleen D. Parker handles the case. The Debtor is represented by Clark D. Stith, Esq. at CLARK D. STITH. KUPONO RESORT: Hires Choi & Ito as Local Bankruptcy Co-Counsel -------------------------------------------------------------- Kupono Resort LLC seeks approval from the U.S. Bankruptcy Court for the District of Hawaii to hire Chuck C. Choi and Allison A. Ito of Choi & Ito to serve as local bankruptcy co-counsels. The firm will provide these services: (a) advise the Debtor regarding its obligations and duties under the Bankruptcy Code, Bankruptcy Rules, and other applicable guidelines and laws; and (b) perform other legal services necessary in connection with the case. The Firm has agreed to a contingency fee arrangement that provides for 150% of the firm's current billing rates: Chuck C. Choi $500 Allison A. Ito $350, and paralegal $150 Within one year prior to the bankruptcy filing, the Firm received $5,000 from the Debtor, holds a retainer balance of $2,031.41, and incurred a Chapter 11 filing fee of $1,738. Choi & Ito 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: Chuck C. Choi, Esq. Allison A. Ito, Esq. CHOI & ITO 700 Bishop Street, Suite 1107 Honolulu, HI 96813 Telephone: (808) 533-1877 Facsimile: (808) 566-6900 E-mail: cchoi@hibklaw.com aito@hibklaw.com About Kupono Resort LLC Kupono Resort LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Haw. Case No. 25-00652) on July 28, 2025. At the time of the filing, the Debtor was a single asset real estate entity owning a 25-acre parcel of resort-zoned land in Poipu, Kauai, with a tax assessed value of approximately $23.7 million, and had no operations. As of the petition date, the Debtor was a defendant in a collection lawsuit seeking approximately $6.05 million and a foreclosure lawsuit involving a mortgage with a balance of approximately $5.33 million. Honorable Judge Robert J. Faris oversees the case. Chuck C. Choi of Choi & Ito serves as the Debtor's legal counsel. LANDMARK HOLDINGS: Unsecureds' Recovery "TBD" in Joint Plan ----------------------------------------------------------- Landmark Holdings of Florida, LLC, filed with the U.S. Bankruptcy Court for the Middle District of Florida an Amended Disclosure Statement accompanying Amended Joint Chapter 11 Plan dated August 8, 2025. The Debtors operate long-term acute care ("LTAC") hospitals, which are specialized healthcare facilities that provide extended care to patients that require a higher level of care for a longer period of time than a typical hospital can provide. The Plan proposes a reorganization of the Debtors' business and financial affairs that will allow the Debtors' five hospitals to continue operating and providing critical care to the patients in the communities they serve. Certain holders of claims against the Debtors are divided into Classes. Class 1 Amerant Claim includes Amerant's claim arising under the loan the Debtors received under the Main Street Loan Facility in the approximate amount of $30 million. The Plan proposes that the Reorganized Debtors will issue a new Take Back Note to Amerant in satisfaction of the Amerant Claim. The Take Back Note will be secured by liens on substantially all of the Reorganized Debtors' assets. The Debtors are still negotiating with Amerant on the final terms of the Take Back Note, but the Debtors believe they will have sufficient cash flow upon emergence to service the Take Back Note. Class 2 Ventas Claims includes Ventas's claims under a master lease arrangement with four of the Debtors' hospitals for past due rent. The Ventas Claims are secured by security interests in certain of the Debtors' assets. The Plan proposes to permit Ventas to retain its security interests, subject to the security interests of Amerant and the Exit Lender, in connection with the negotiation and execution of amended or new lease agreements with the Reorganized Debtors. The Debtors and Ventas are still negotiating the terms of the new or amended lease, but the Debtors believe they will have sufficient cash flow upon emergence to satisfy their monthly lease obligations to Ventas. Class 3 General Unsecured Claims includes all allowed general unsecured claims. The Plan proposes to give each creditor with a claim in Class 3 a pro rata interest in the GUC Trust. The GUC Trust will be created on the Effective Date of the Plan and will be assigned certain claims, causes of action and other assets. These assets include the right to pursue claims under the Debtors' D&O Liability Insurance Policies, which provide up to $6 million in coverage. The GUC Trustee will determine what claims may exist and whether to attempt to access the coverage provided under the D&O Liability Insurance Policies. Once the claims and any other assets assigned to the GUC Trust are liquidated, the GUC Trustee will distribute any available funds to general unsecured creditors. The potential amount of such distributions is uncertain and will not be known prior to voting on the Plan. The allowed unsecured claims total $10,000,000. Holders of other general unsecured claims in Class 3 are impaired and their projected recovery is still "TBD", according to the Disclosure Statement. There are two primary sources of new funding to consummate the Plan: the Reorganized Equity Cash Consideration from the Plan Sponsor and the proceeds from the Exit Facility, a new lending arrangement that will provide up to $5 million in available financing to the Reorganized Debtors. The Exit Facility will be secured by a first lien on the Reorganized Debtors' accounts receivables. These funds, along with the Debtors' cash on hand, will be used to pay outstanding Administrative Claims, Professional Fee Claims, and Cure Amounts for unsecured creditors that are parties to assumed executory contracts, and to provide initial funding to the GUC Trust. On emergence, the Reorganized Debtors will have two debt facilities: the Exit Facility secured by a first lien on the Reorganized Debtors' accounts receivable, and the Take Back Note issued to Amerant be secured by a second lien on the Reorganized Debtors' accounts receivable and a first lien on all of the Reorganized Debtors' other assets. A key component of the Plan is the selection of a Plan Sponsor to purchase the New Equity to be issued by Landmark Holdings of Florida, LLC. The Debtors have received a Plan Sponsor term sheet from certain owners of the existing equity interests in the Debtors (the "Plan Sponsor Term Sheet"). The Plan Sponsor Term Sheet proposes to pay cash (the "Reorganized Equity Cash Consideration") for the New Equity in Landmark Holdings. The Debtors shall fund Distributions under the Plan, as applicable, with: (i) the issuance of the Take Back Note, (ii) borrowings under the Exit Facility, (iii) the Reorganized Equity Cash Consideration, (d) Cash on hand, and (e) the GUC Trust Assets. Each distribution and issuance referred to in Article VI of the Plan shall be governed by the terms and conditions set forth in the Plan applicable to such distribution or issuance and by the terms and conditions of the instruments or other documents evidencing or relating to such distribution or issuance, which terms and conditions shall bind each Entity receiving such distribution or issuance. The Plan proposes to reorganize the Debtors by effectuating a Reorganized Equity Sale. The Plan Sponsor will pay the Reorganized Equity Cash Consideration to purchase the New Equity on the Effective Date, Amerant and the Reorganized Debtors will enter into a Take Back Loan Agreement, and the Reorganized Debtors will issue Amerant the Take Back Note, and the Exit Lender and the Reorganized Debtors will enter into the Exit Facility (or convert any DIP Facility into an Exit Facility, as applicable) for working capital. The Reorganized Debtors will continue to operate the Debtors' LTAC hospitals and to provide critical long-term care to those in need. A full-text copy of the Amended Disclosure Statement dated August 8, 2025 is available at https://urlcurt.com/u?l=Qig7Ls from PacerMonitor.com at no charge. The Debtors' Counsel: Jamie Z. Isani, Esq. HUNTON ANDREWS KURTH LLP 333 SE 2nd Avenue, Suite 2400 Miami, Florida 33131 Tel: 305-536-2724 Email: jisani@huntonAK.com - and - Justin F. Paget, Esq. Jennifer E. Wuebker, Esq. 951 E. Byrd Street Richmond, Virginia Tel: (804) 788-8200 Fax: (804) 788-8218 Email: jpaget@hunton.com jwuebker@hunton.com About Landmark Holdings of Florida, LLC Landmark Holdings of Florida, LLC and seven affiliates filed Chapter 11 petitions (Bankr. M.D. Fla. Lead Case No. 25-00397) on March 9, 2025. The petitions were signed by Landmark CEO Bryan Day. At the time of the filing, Landmark reported between $50 million and $100 million in assets and between $50 million and $100 million in liabilities. Judge Caryl E. Delano oversees the cases. Jamie Zysk Isani, Esq., at Hunton Andrews Kurth, LLP is the Debtors' legal counsel. Joseph J. Tomaino is the patient care ombudsman appointed in the Debtor's case. Amerant Bank N.A., as secured creditor, is represented by: Brian P. Yates, Esq. Garbett, Allen, Roza & Yates, P.A. Brickell City Tower 80 S.W. Eighth Street, Suite 3100 Miami, FL 33130 Telephone: (305) 579-0012 Email: byates@garlawfirm.com LAUTARO GROUP: Stephen Metz Named Subchapter V Trustee ------------------------------------------------------ The Acting U.S. Trustee for Region 4 appointed Stephen Metz of Offit Kurman, P.A. as Subchapter V trustee for Lautaro Group, LLC. Mr. Metz will be paid an hourly fee of $600 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Metz declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Stephen Metz Offit Kurman, P.A. 7501 Wisconsin Avenue, Suite 1000W Bethesda, Maryland 20814 Phone: (240) 507-1723 Email: smetz@offitkurman.com About Lautaro Group LLC Lautaro Group LLC, operating under the website lunasdc.com, is a food service business based in Washington, DC. Lautaro Group LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.C. Case No. 25-00270) on July 13, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $100,000 and $500,000. The Debtors are represented by The Law Office of Robert S. Brandt. LAVIE CARE: No Complaints at NC Facilities, 6th PCO Report Says --------------------------------------------------------------- Renee Kea, the Interim State Long-Term Care Ombudsman, filed his sixth report regarding the quality of patient care provided at the North Carolina nursing facilities operated by LaVie Care Centers, LLC's affiliates. Visits were conducted by the regional long-term care ombudsmen who report programmatically to the State Long-Term Care Ombudsman (SLTCO) who is housed within the NC Division of Aging. All the facilities are skilled nursing facilities. Regional ombudsmen conducted visits to the six facilities between May 13 and July 12. There was no evidence of staffing shortage. Residents that met with the ombudsmen did not indicate any issues that adversely impacted quality of care. Staffing was adequate. Regional ombudsmen will continue to visit and meet with residents to ensure that they are receiving the highest quality of care and that the bankruptcy reorganization does not have any adverse impact on their quality of care. The SLTCO personally visited facilities, which included Hunter Woods, Wilora Lake, Forest Oaks, Transitional Health, Willowbrook, Walcove Health, Gateway Rehab, and Emerald Ridge. In all cases, patient care was not an issue. Environment was clean. Patient daily census in relationship to patient capacity was not an issue. The ombudsman noted that the patients, families, and staff were satisfied with the quality of care provided. They did not express any concerns that the bankruptcy was adversely impacting the quality of care provided to the residents in the 16 facilities. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=PG0aWt from Kurtzman Carson Consultants, LLC, claims agent. About Lavie Care Centers LaVie Care Centers, LLC is the parent company of skilled nursing facility operators and providers, with facilities primarily located in Mississippi, North Carolina, Pennsylvania and Virginia. The company operates 43 licensed facilities, with 4,300 beds, providing short-term rehabilitation, comprehensive post-acute care, and long-term care to its residents. On June 2 and 3, 2024, LaVie Care Centers and 281 affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Lead Case No. 24-55507), before Judge Paul Baisier in Atlanta. The Debtors tapped McDermott Will & Emery, LLP as legal counsel; Stout Capital, LLC as investment banker; and Ankura Consulting as financial advisor. M. Benjamin Jones, senior managing director at Ankura, serves as the Debtors' chief restructuring officer. Kurtzman Carson Consultants, LLC is the claims agent, and maintains the page http://www.kccllc.com/LaVie The U.S. Trustee for Region 21 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The U.S. Trustee also appointed Joani Latimer as patient care ombudsman for patients at the Debtors' Virginia facilities; Victor Orija for North Carolina facilities; Lisa Smith for the Mississippi facilities; Margaret Barajas for the Pennsylvania facilities; and Terri Cantrell for the Florida facility. LENDINGTREE INC: Moody's Alters Outlook on 'B3' CFR to Positive --------------------------------------------------------------- Moody's Ratings affirmed LendingTree, Inc.'s (LendingTree or the Company) B3 Corporate Family Rating, upgraded the Probability of Default Rating to B3-PD from Caa1-PD and affirmed the company's existing B3 Senior Secured First Lien Bank Credit Facilities ratings. Moody's also assigned B3 ratings to the company's planned issuance of new Senior Secured First Lien Bank Credit Facilities, including a 5-year $75 million Revolving Credit Facility (RCF) and 5-year $400 million Term Loan. The outlook was changed to positive from stable. The speculative grade liquidity rating (SGL) was upgraded to SGL-2 from SGL-3. The company's planned refinancing transaction is credit positive. Moody's expects proceeds from the proposed $400 million Senior Secured First Lien Term Loan to be used to repay all outstanding debt. Moody's expects the pro forma capital structure to remain largely unchanged, still with a single class of senior secured debt the predominant claims. Pro forma for the transaction, and following the company's full repayment of notes outstanding, Moody's estimates proforma leverage will be mid 6x on an LTM basis through Q1 2025 (Moody's adjusted, gross debt divided EBITDA). However, the terms and conditions of the new credit agreement are significantly changed, including materially looser covenants relative to the tightest conditions of existing debt obligations. As a result, the maturity profile will be more favorable, and despite a lower cash balance, liquidity improves significantly with greater availability under the revolving credit facility, only a springing maintenance covenant and lower term loan amortization. The B3 rating assigned to the new bank credit facilities is subject to review of final documentation and no material change in the size, and key terms and conditions of the transaction as presented. The change to a positive outlook incorporates material and recent deleveraging (including repayment of notes outstanding, as well as a reduction in lease liabilities), and growing confidence in Moody's financial projections such that Moody's expects debt to EBITDA (Moody's adjusted) approaching the 5x range, and free cash flow to debt rising to at least mid-teens percent over the next 12-18 months, both above Moody's guidance for an upgrade. The outlook also reflects an improving market, led primarily by strength and recovery in the insurance segment. Moody's expects total revenue to rise above $1 billion, EBITDA margins to expand to the high single digit percent range and free cash flow to average near $60 million annually, but could rise over $70 million. RATINGS RATIONALE LendingTree's corporate family rating incorporates governance risks, as reflected in the G-4 governance Issuer Profile Score and CIS-4 Credit Impact Score. The company's financial policy has tolerated high leverage, despite significant deleveraging expected over the near term. The company is also relatively small in scale (near $1 billion in revenue), geographically concentrated in the US, has some customer concentration, and operates in a highly and increasingly competitive financial services marketplace with a business model largely dependent on high-cost paid traffic evidenced by low profitability (with EBITDA margins in the high single digit percent range, Moody's adjusted). The business is sensitive to the economy, specifically interest rates and lending volumes. Emerging technologies, specifically generative artificial intelligence (genAI), is also an emerging potential threat given the company's revenue model is largely based on commissions and finders fees for matching consumers with financial service partners. This lead generation business model is exposed to potential changes in consumption patterns as customers adopt and transition to new advanced artificial intelligence content engines that do not currently partner with LendingTree. Moody's expects these content engines to be increasingly able to provide similar information to consumers and could eventually fulfill actionable quotes, potentially redirecting traffic to the provider, bypassing and thus potentially disintermediating LendingTree unless the company is able to partner with these new content engine companies. Despite the risks, the company is supported by a strong and well-established brand and large network of financial service partners. The company also has good segment diversity, operating three segments including home (mortgage loans, mortgage refinancing, home equity loans), consumer (credit cards, personal loans, small business loans and other services) and insurance (auto, home, health and Medicare). While insurance generates close to 60% of revenue and near 50% of the operating profits (in 2024), the contribution and relatively high mix of revenue and profit across the other segments generally helps to balance performance across divisions during typical economic conditions. The digital-based referral service model also benefits from very low capital intensity (capex to revenue under 2% which supports free cash flow conversion) and a highly variable cost model which limits operating leverage but helps protect profitability when revenues decline. LendingTree's Speculative Grade Liquidity Rating (SGL) of SGL-2 reflects the good liquidity position supported by $126 million in cash at the end of the last quarter (about $45 million pro forma for the refinancing), and an undrawn proposed $75 million RCF. The new term loan is covenant lite, while the RCF is subject to a maximum first-lien net leverage ratio of 5.0x when the facility is more than $20 million drawn. Moody's don't expect the company to draw on the RCF over the next 12 months. Alternate liquidity is limited due to the fully secured capital structure. Marketing terms for the new credit facilities (final terms may differ materially) include the following: Incremental pari passu debt capacity in an aggregate amount up to the sum of the greater of $116m and 100% of EBITDA, plus unlimited amounts subject to first lien net leverage tests plus unused amounts under the general debt basket. There are limited "blocker" provisions, including an event of default blocker applicable to restricted payments and a limitation on investments in unrestricted subsidiaries. There are no express protective provisions prohibiting an up-tiering transaction. Amounts under certain baskets including a general debt basket, general restricted payment basket, and available amount basket may be reallocated to incur debt. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS A ratings upgrade could occur if LendingTree's leverage is expected to be sustained well below 6x (Moody's adjusted gross debt divided EBITDA), revenue growth is sustained and durable, EBITDA margins expand, liquidity remains good, and free cash flow rises above 10% of Debt (Moody's adjusted). An upgrade would also be conditional on the company continuing to navigate the evolving market place and technological changes to maintain its relevance and market position. A ratings downgrade could occur if LendingTree's leverage was sustained above 7.0x, or revenue or profitability declined, debt maturities are not well managed, liquidity deteriorates, free cash flow turn negative, there was a risk of a distressed exchange, or Moody's viewed the threat of a material disruption to the business from emerging technology as likely. LendingTree, Inc., headquartered in Charlotte, North Carolina, operates a leading online marketplace platform connecting consumers with financial services, including home, personal, small business loans, insurance, credit cards as well as other services. Revenue for the LTM period ended Q1 2025 was approximately $972 million. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. LIFE TIME: Fitch Affirms 'BB-' LongTerm IDR & Alters Outlook to Pos ------------------------------------------------------------------- Fitch Ratings has affirmed Life Time Group Holdings, Inc.'s and Life Time Inc.'s (collectively, LTH or Life Time) Long-Term Issuer Default Ratings (IDR) at 'BB-'. Fitch has also affirmed Life Time, Inc.'s long-term senior secured ratings at 'BB+' with a Recovery Rating of 'RR1'. The Rating Outlook has been revised from Stable to Positive. The Positive Outlook reflects strong center operations and rapid deleveraging toward the 3.5x-4.0x leverage band. An upgrade requires increased evidence of leverage sustaining below 4.0x, even in a more challenging macroeconomic environment. The 'BB-' IDR reflects LTH's attractive center economics, profitability, strong cash generation, and conservative financial policy offset by its aggressive growth strategy, high fixed costs, low customer switching costs, and sector cyclicality. LTH's exposure to affluent markets and unique services offer some protection from macroeconomic headwinds compared to other fitness center operators. Key Rating Drivers Rapid Deleveraging: LTH's leverage continues to decline, with EBITDAR leverage declining to 5.3x in fiscal 2023, to 4.1x in fiscal 2024. Fitch forecasts EBITDAR leverage remaining below its positive sensitivity threshold of 4.0x by the end of 2025, driven mostly by revenue increases and EBITDA margin expansion. Thereafter, Fitch estimates EBITDAR leverage will remain at or below the 4.0x range. The deleveraging is primarily driven by revenue growth with sustained margins and meaningful debt paydown. Management targets net EBITDA leverage of 2.0x, commensurate with Fitch EBITDAR leverage of about 3.8x-4.0x. Targeted Sale-Leasebacks Support Growth: LTH's asset-light real estate strategy, using sale-leasebacks (SLBs), has accelerated growth and expanded its center footprint. Management only pursues SLBs on favorable terms. LTH typically opens more centers than it sells annually, but the issuer can finance this deficit with strong cash generation. Fitch forecasts five to six SLBs annually, generating $200 million-$250 million in proceeds, and assumes 10-12 new centers per year. With growth capex of $700 million-$800 million, the issuer is expected to be free cash flow neutral after SLB proceeds. SLBs reduced financial flexibility at the center level by adding significant rent expense and potential increasing profit volatility during downturns. However, Fitch expects center economics to remain strong as LTH improves profitability and drives revenue growth. Fitch capitalizes lease expenses using LTH's balance sheet lease liability and applies the implied multiple to forecast future liabilities. In 2024, LTH's implied lease multiple was 8.1x. Strong Center Economics: LTH attracts a high-spending, affluent customer base with high household incomes and home ownership, resulting in relatively inelastic price sensitivity. High engagement and premium positioning continue to support strong financial performance. Members engage with premium services, driving additional revenue from offerings such as personal training, café, and spa. Despite recent price increases, demand has remained resilient. LTH can further boost revenues by capitalizing on member churn, as new member rates are significantly higher than average dues. This gap creates a material monthly revenue opportunity. Asset-light Opportunities: LTH has expanded into new markets where high property values previously posed a barrier by using its asset-light strategy. Its reputation as a reliable tenant compared to other fitness operators secures favorable lease terms, often lasting over 25 years. Landlords increasingly view LTH as an anchor tenant and seek the company to replace previously stressed big-box fashion chains or theaters. Strong Profitability: Fitch forecasts EBITDA margins improving from 24% in 2023 to 27% in 2025. Center operation margins have improved due to increased membership spend at existing facilities with fixed costs and reduced labor pressures. LTH has made substantial labor cuts in sales and other middle-management roles within G&A. Management reports that these sales now use a lower-cost concierge model, as most new memberships occur online. Cyclical Industry: The Gym, Health & Fitness Clubs industry is highly cyclical. Fitch believes LTH's affluent member pool and high membership utilization provide some protection from cyclical factors. However, membership fluctuations may still fluctuate during a recession. LTH's month-to-month membership plans are attractive for new and seasonal joiners but also leave expose the company to sharp membership declines during economic shocks. Peer Analysis The fitness industry's credit risk profile typically falls in the single 'B' to 'CCC' category, reflecting its high inherent risk. Membership attrition, cyclicality, and the need to optimize club and studio portfolios drive this risk range. Volatile earnings and aggressive growth ambitions often produce negative free cash flows and high leverage. Most remain speculative, but Fitch may assign higher ratings in the 'BB' category if a large operator demonstrates strong free cash flows and maintains a conservative financial policy. LTH, a premium fitness operator, holds a 'BB-' rating due to its large scale, conservative financial policy, and stable cash flow from a wealthy customer base. Deuce Midco Limited, operating as David Lloyd Leisure (DLL), is rated 'B' with a Positive Outlook. DLL operates fewer clubs than Life Time and carries higher leverage. Equinox, an unrated peer, provides similar premium services mainly in metropolitan areas Budget gym operators often expand aggressively, supported by a larger target demographic and cost-effective models. This strategy typically results in leverage consistent with the 'CCC+' to 'B' range. Operators such as Planet Fitness, Pinnacle Bidco plc ("Pure Gym"; B-/Stable) and Crunch franchisees fit this profile. Pure Gym benefits from scale and high EBITDAR margins, despite its high-leverage growth strategy. Franchisors like Planet Fitness Inc. enjoy greater diversification and scale, with lower operating leverage and predictable revenue from franchise fees. Boutique operators, including SoulCycle and Orange Theory, face challenges from at-home fitness trends and changing workout fads, impacting revenue defensibility. Key Assumptions - Revenue rise of 13% in 2025, 5% in 2026, and high-single digits 2027 and 2028. Growth is primarily supported by annual new openings. Fitch assumes a weaker macroeconomic environment results in lower in center spend in 2026 which rebounds in the outer years; - Fitch assumes 10-12 openings per annum (10 in 2025 and 12 thereafter) initially weighted heavily towards asset light openings and conversions in 2025 and more heavily weighted towards new openings thereafter. Fitch assumes five to six SLBs annually recouping about $40 million-$45 million per transaction with the remaining builds financed with cash. SLBs are assumed at a cap rate just below 7% throughout the forecast. Fitch assumes less SLBs than new ground-up builds as the issuer remains prudent over SLB opportunities; - EBITDA margins remain stable at about remain between 26-27% throughout the forecast as operating leverage efficiencies in selling, general and administration are offset by higher lease expense as issuer continues asset-light expansion. Fitch assumes a slight decrease in margins in 2026 driven by a softer macroeconomic environment leading to lower per center profitability; - CFO margin remains at about 24% throughout the forecast. FCF before growth capex remains at about 16%-18% of revenues; - Capital intensity between 29-32% throughout the forecast. In the near-term, the issuer benefits from timing of new expenditures on new builds which can take multiple years; - Negative FCF (pre-SLBs) throughout the forecast as issuer remains aggressive in spending on expansion. FCF is neutral to positive net of SLBs throughout the forecast and remains at about 16-18% of revenue before growth capex; - EBITDAR leverage declines to 3.8x in 2025 and steadily declines to 3.7x by 2028. Concurrently, EBITDA net leverage declines to 1.8x in 2024 and 1.5x by 2028, half a turn below the issuer's leverage target; - Base interest rates applicable to its outstanding variable-rate debt obligations reflects the issuer's current hedging agreements and Secured Overnight Financing Rate forward curve. Recovery Analysis Fitch does not employ a bespoke analysis in recovery ratings at the 'BB-' to 'BB+' IDRs. LTH's senior secured bank facility and senior secured notes are considered Category 1 first lien debt. As such, the senior secured debt is rated 'BB+'/'RR1', two notches above the IDR. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDAR leverage sustaining above 4.5x; - EBITDAR Fixed Charge Coverage declining below 2.0x; - Asset quality decline evidenced by same center volume or margin deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDAR leverage sustaining below 4.0x; - FCF before growth capex sustained above 15%; - Successful execution of growth strategy resulting in increased scale and revenue diversification. Liquidity and Debt Structure As of June 30, 2025, LTH had $176 million in cash and $618.5 million available on its revolving credit facility. The company's cash flow from operations (CFO) margin was about 22% in 2024, and Fitch expects it to rise to 23%. Interest savings from debt prepayments and refinancings at lower rates, including some unsecured-for-secured swaps, primarily drive this improvement. Although most of this cash generation is allocated to growth capex, the issuer has the flexibility to pay down debt if needed to meet its current net leverage target of 2.0x. FCF before growth capex remains consistently positive, except in the pandemic-affected years. Additionally, LTH has a substantial real estate portfolio with comfortable collateral coverage. LTH's debt maturities are concentrated in 2031, with its $1 billion senior secured term loan and $500 million senior secured notes both due that year. These maturities are distant, and Fitch sees minimal refinancing risk at this time. Notably, LTH recently demonstrated capital markets access by successfully refinancing its 2026 maturity wall. Issuer Profile Life Time Group Holdings, Inc. is a leading lifestyle brand and fitness center operator. As of June 30, 2025, Life Time operated 184 fitness centers in 31 states and one Canadian province and served over 1.6 million individual members. Summary of Financial Adjustments In line with Fitch's Corporate Rating Criteria, Fitch uses the issuer's lease liability on the balance sheet to derive its lease obligation in computing lease-equivalent debt. Fitch does not include variable lease expense in its EBITDAR calculation that is not included in the issuer's rent expense. The variable lease not included in Fitch's lease expense is also not included in the issuer's rent expense line and is related to equipment leases in the fitness centers and other items. In the issuer's 10K, it is disclosed that "variable lease payments not recognized in the measurement of operating and finance lease liabilities are expensed as incurred." 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 ----------- ------ -------- ----- Life Time, Inc. LT IDR BB- Affirmed BB- senior secured LT BB+ Affirmed RR1 BB+ Life Time Group Holdings, Inc. LT IDR BB- Affirmed BB- LINQTO INC: Shareholder Group Disputes $16MM Securities Sale ------------------------------------------------------------ Angelica Serrano-Roman of Bloomberg Law reports that a group of shareholders and customers of investment platform Linqto is disputing the proposed sale of $16 million in securities they argue may not be part of the company's bankruptcy estate. Leading the effort, Australian investment firm Sapien Group said it supports Linqto's sale process overall but objects to the inclusion of certain "reserved securities," which Linqto claimed it held "for its own account" before filing for Chapter 11. The objection was submitted Tuesday, August 12, 2025, in the U.S. Bankruptcy Court for the Southern District of Texas. About Linqto Inc. Linqto Inc. is a San Jose-based financial technology company operating in the alternative investment space. Linqto Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90187) on July 7, 2025. In its petition, the Debtor reports estimated assets and liabilities between $500 million and $1 billion. The Debtor is represented by Gabrielle A. Hamm, Esq. at Schwartz, PLLC. Breakpoint Partners LLC is the Debtor's restructuring advisor. Epiq Corporate Restructuring, LLC is the Debtor's claims agent. ThroughCo Communications, LLC is the Debtor's public relations agent. LINX OF LAKE: Court Extends Cash Collateral Access to Aug. 26 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida issued a fifth interim order extending Linx of Lake Mary, LLC's authority to use cash collateral until August 26. The fifth interim order signed by Judge Grace Robson authorized the Debtor to use cash collateral to pay the amounts expressly authorized by the court, including payments to the U.S. trustee for quarterly fees; and the expenses set forth in the budget, plus an amount not to exceed 10% for each line item. The Debtor projects total operational expenses of $115,486.34 for August. HLI Investments and Funding-Fund 2, LLC, a secured creditor, was granted a perfected post-petition lien on cash collateral to the same extent and with the same validity and priority as its pre-bankruptcy lien. As additional protection, Linx of Lake Mary will maintain insurance coverage for its property. The next hearing will be conducted on August 26. The cash collateral, which the Debtor intends to use is comprised of cash on hand and funds to be received from sales during its normal operations that are encumbered by the liens of HLI. HLI may assert a first priority security interest in the Debtor's cash and cash equivalents. It is owed approximately $630,000. As of the petition date, the Debtor owns cash and cash equivalents of approximately $18,000 and accounts receivable in the face amount of $ 143,249.41 (books show approximately $130,000 of this owed from prior owner's companies). About Linx of Lake Mary Linx of Lake Mary, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06781) on December 13, 2024, listing up to $10 million in both assets and liabilities. Patrick Schneider, manager of Linx of Lake Mary, signed the petition. Judge Grace E. Robson oversees the case. Justin M. Luna, Esq., at Latham, Luna, Eden & Beaudine, LLP is the Debtor's legal counsel. HLI Investments and Funding-Fund 2, as secured creditor, is represented by: Jeffrey S. Ainsworth, Esq. BransonLaw, PLLC 1501 E. Concord St. Orlando, FL 32803 Phone: 407-894-6834 Fax: 407-894-8559 jeff@bransonlaw.com jacob@bransonlaw.com jacob@flentkelegal.com lisa@bransonlaw.com tammy@bransonlaw.com LLW CONSTRUCTION: Court Extends Cash Collateral Access to Oct. 9 ---------------------------------------------------------------- LLW Construction, Inc. received another extension from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to use cash collateral. At the latest hearing, the court approved the Debtor's interim use of cash collateral until October 9. The Debtor was previously authorized to use the cash collateral of the U.S. Small Business Administration to pay the expenses set forth in its budget pursuant to the court's July 30 interim order. The initial order granted SBA and other secured creditors a replacement lien on property acquired by the Debtor after its bankruptcy filing, with the same validity, priority and extent as their pre-bankruptcy lien. About LLW Construction Inc. LLW Construction, Inc., doing business as Adeline Custom Homes, is a construction company specializing in residential and commercial projects. It operates with a network of experienced project managers, subcontractors, and suppliers. Founded by Michal and Mary Winiarek, the Company emphasizes hands-on expertise and client-centered service in its operations. LLW Construction sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04229) on June 23, 2025. In its petition, the Debtor reports total assets of $63,757 and total liabilities of $1,865,048. Judge Roberta A. Colton handles the case. The Debtor is represented by Buddy D. Ford, Esq., at Ford & Semach, P.A. LYTTON VINEYARD: Hires Elisa Meyer as Accountant ------------------------------------------------ Lytton Vineyard & Winery, L.P. seeks approval from the U.S. Bankruptcy Court to hire Elisa Meyer, CPA, to serve as accountant for the Debtor and Debtor-in-Possession in its Chapter 11 case. Ms. Meyer will provide these services: (a) advise regarding tax issues, and prepare and file timely federal, state, and local tax returns as applicable on an hourly basis; and (b) provide minimal ancillary accounting services to the Debtor on an hourly basis, not to exceed $1,500 per month. Ms. Meyer shall receive an hourly rate of $300, subject to periodic adjustment, with ancillary services capped at $1,500 per month. She did not receive a prepetition retainer and waived the $1,425 owed prepetition. Ms. Meyer 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: Elisa Meyer 43980 Mahlon Vail Road #3903 Temecula, CA 92592 Telephone: (951) 303-3085 E-mail: emeyer@elisameyercpa.com Website: www.elisameyercpa.com About Lytton Vineyard & Winery L.P. Lytton Vineyard and Winery, LP operates a restaurant and winery in Temecula Valley. Lytton sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-11748) on October 18, 2024, with $10 million to $50 million in both assets and liabilities. Maribeth Levine, manager, signed the petition. Judge Victoria S. Kaufman oversees the case. M. Douglas Flahaut, Esq., at Echo Park Legal, APC, is the Debtor's bankruptcy counsel. LZA REAL: Hires Kimberly Nash and C. Daniel Roberts as Counsels --------------------------------------------------------------- LZA Real Properties West, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to employ Law Office of Kimberly Nash P.C., and C. Daniel Roberts, P.C., as counsels. The firms will provide these services: a. give the Debtor legal advice with respect to its powers and duties as Debtor-in-Possession in the continued operation of its business and management of its property; b. advise the Debtor of its responsibilities under the Bankruptcy Code and assist with such; c. amend the voluntary petition and other paperwork necessary to complete this proceeding; d. assist the Debtor in preparing and filing the required Schedules, Statement of Affairs, Monthly Financial Reports, the Initial Debtor Report and other documents required by the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, the Local Rules of this Court and the administrative procedures of the Office of the United States Trustee; e. represent the Debtor in connection with adversary proceedings and other contested and uncontested matters, both in this Court and in other courts of competent jurisdiction, concerning any and all matters related to these bankruptcy proceedings and the financial affairs of the Debtor; f. represent the Debtor in the negotiation and documentation of any sales or refinancing of property of the estate, and in obtaining the necessary approvals of such sales or refinancing by this Court; and g. assist the Debtor in the formulation of a plan of reorganization and disclosure statement, and in taking the necessary steps in this Court to obtain approval of such disclosure statement and confirmation of such plan of reorganization. The firms will be paid at these rates: C. Daniel Roberts $475 per hour Kimberly Nash $400 per hour Legal Assistants $125 to 225 per hour Pre-petition, the Debtor paid C. Daniel Roberts, P.C. the amount of $40,000. The firms will also be reimbursed for reasonable out-of-pocket expenses incurred. As disclosed in a court filing that the firms are "disinterested persons" as the term is defined in Section 101(14) of the Bankruptcy Code. The firms can be reached at: C. Daniel Roberts, Esq. C. Daniel Roberts, P.C. PO Box 300549 Austin, TX 78703 Tel: (512) 470-0897 Email: droberts@cdrlaw.net - and - Kimberly Nash, Esq. Law Office of Kimberly Nash P.C. P.O. Box 162932 Austin, TX 78716 Tel: (512) 637-8000 Email: kimberly@kimberlynashlaw.com About LZA Real Properties West, LLC LZA Real Properties West, LLC, filed a Chapter 11 bankruptcy petition (Bankr. W.D. Tex. Case No. 25-11219) on August 4, 2025. The Debtor hires Law Office of Kimberly Nash P.C., and C. Daniel Roberts, P.C., as counsels. M.L.B. DESIGNS: Court Extends Cash Collateral Access to Aug. 30 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California granted M.L.B. Designs, Inc. interim approval to use cash collateral through August 30. The interim order authorized the Debtor to use cash collateral to pay its expenses pursuant to its budget, with a 10% variance allowed. As adequate protection for any diminution of its pre-bankruptcy interest in the cash collateral, any creditor with a valid, duly perfected lien on the cash collateral will be granted replacement liens on the Debtor's cash and accounts receivable generated post-petition, with the same validity and priority of its prep-bankruptcy liens. The final hearing is set for August 28. As of the bankruptcy filing, the Debtor reported approximately $2,500 in cash, $213,000 in receivables, and nearly $894,000 in inventory. Its primary secured creditors include Wells Fargo ($270,000), Nemec Holdings ($643,000), and Northpoint Commercial Finance ($215,000), each of whom claims a security interest in the Debtor's assets. The Debtor also owes approximately $1.18 million in general unsecured debts and disputes an additional $568,000 in debt allegedly owed to various merchant cash advance lenders. About M.L.B. Designs Inc. M.L.B. Designs Inc., doing business as Harlow's Kitchen Concepts and Home 101, provides appliance sales, cabinetry, and countertop solutions in San Bernardino, California. The Company offers in-home consultations, personalized design services, and project coordination from planning through installation. Founded in 1921, it operates as one of Southern California's largest independent appliance dealers. M.L.B. Designs Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-15143) on July 28, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Scott H. Yun handles the case. The Debtor is represented by: David B Zolkin Weintraub Zolkin Talerico & Selth LLP Tel: 310-207-1494 Email: dzolkin@wztslaw.com MARFA CABINETS: Seeks Chapter 11 Bankruptcy in Illinois ------------------------------------------------------- On August 11, 2025, Marfa Cabinets LLC 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 Marfa Cabinets LLC Marfa Cabinets LLC, formerly Marfa Cabinets, Inc., is a Chicago-based manufacturer of high-end kitchen cabinets and bathroom vanities that combines modern and traditional design elements to produce custom residential cabinetry. The Company operates a manufacturing facility in Illinois where an in-house team of designers and craftsmen produce cabinets and vanities using European-sourced materials from Italy and Spain and equipment imported from Europe. Marfa Cabinets operates in the household furniture and kitchen cabinet manufacturing sector, supplying custom, made-in-USA cabinetry for premium residential projects. Marfa Cabinets LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill.Case No. 25-12238) on August 11, 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 Deborah L. Thorne handles the case. The Debtor is represented by Gregory K. Stern, Esq. at GREGORY K. STERN, P.C. MASTERBRAND INC: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed MasterBrand Inc's Long-Term Issuer Default Rating (IDR) at 'BB+'. This affirmation follows the announcement that MasterBrand will combine with American Woodmark Corporation (AMWD) in an all-stock transaction, in which AMWD shareholders will receive 5.15 Masterbrand shares for every AMWD share. Fitch has also affirmed MasterBrand's senior unsecured notes at 'BB+' with a Recovery Rating of 'RR4'. The Rating Outlook is Stable. Fitch views the transaction positively. The transformative merger will strengthen the company's business profile by increasing scale and geographic diversification, while keeping leverage modest. However, large mergers pose integration risks, particularly in a weaker operating environment. The 'BB+' IDR reflects MasterBrand's leading market position in residential cabinets, its scale and geographic reach, modest leverage, and moderate profitability metrics. The rating is constrained by the company's exposure to cyclical end markets, singular product focus, customer concentration, and low barriers to entry. Key Rating Drivers Merger with American Woodmark: MasterBrand has signed a definitive merger agreement with American Woodmark in an all-stock transaction, in which AMWD shareholders will receive 5.15 MasterBrand shares for each AMWD share. Upon transaction close, which is expected in early 2026, Masterbrand shareholders will own approximately 63% of the combined company, while AMWD shareholders will own the remaining 37%. Fitch views the merger as beneficial to the company's business profile, as it enhances scale and geographic reach, improves channel mix, and expands the breadth of the cabinetry portfolio. However, the merger slightly increases MasterBrand's exposure to residential new construction, which is more cyclical than the repair and remodel (R&R) segment. Stable Credit Metrics: The combined entity's pro forma Fitch-adjusted EBITDA leverage will be 2.4x (excluding synergies), compared to MasterBrand's standalone EBITDA leverage of 2.7x for LTM ended June 29, 2025. Fitch projects the company's standalone EBITDA leverage will remain around 2.7x in 2025 and the combined company's EBITDA leverage will be around 2.5x by YE 2026, assuming the transaction closes at the beginning of 2026. Fitch expects EBITDA leverage to settle below 2.0x by YE 2027, driven by EBITDA growth from operating leverage and the realization of synergies. Management targets net debt to EBITDA ratio below 2.0x, which Fitch expects the company to return to in fiscal 2027. Fitch anticipates the company to temporarily exceed its leverage target during construction downturns, but eventually return to its target as the cycle improves. Subdued Demand Environment: Fitch expects weaker end-market demand in 2025, as lower consumer confidence and high interest rates challenge new residential and remodelling activity. Fitch expects single-family starts to decline by the mid-single digits, while total housing starts and existing and new home sales are forecast to be slightly lower this year. R&R spending is expected to be flat to slightly lower in 2025, with a more pronounced decline in large discretionary product categories. Fitch's rating case assumes a high single-digit organic revenue decline in 2025, but expects the combined entity's organic revenue to grow low-single digits in 2026 and 2027. Moderate Profitability: Fitch expects EBITDA margins will decline 50bps-100bps in fiscal 2025 and settle between 13% and 13.5%, compared with 14% in fiscal 2024, due to a weaker demand environment. Fitch expects EBITDA margins will settle around 12% in fiscal 2026 for the combined company, reflecting AMWD's lower margin profile and minimal synergy realization during the first year. Fitch expects EBITDA margins to increase to about 13% in fiscal 2027, reflecting 50bps-75bps of cost synergies and improved operating leverage. Fitch views cost synergy realization more cautiously given integration risks in this large merger and the weak demand environment. Cyclical End Markets: The combined entity sells into cyclical markets, with approximately 40% of sales from residential new construction and 60% from residential remodel. Fitch views the company's significant exposure to remodel sales, although lower than its standalone exposure, as a credit positive, as this end market is relatively less volatile than new construction. However, this benefit is somewhat diminished by cabinetry's tendency to be part of large, more discretionary remodel projects. High interest rates and lower consumer confidence have caused consumers to delay large discretionary remodelling projects or trade down to lower-priced products. Leading Market Position: Fitch views the announced transaction as a net positive, reflecting significantly improved scale and enhanced geographic reach and a more balanced channel mix. The combined entity will become the largest manufacturer of residential cabinets in North America. Fitch believes this increased scale will provide MasterBrand with greater pricing power and advantages in shelf-space allocation within distribution channels. Fitch estimates the combined entity will hold about 25%-30% share of the U.S. residential cabinet market. However, its market share could come under pressure from the commoditized nature of its offerings, particularly in stock and semi-custom products. Singular Product Focus: The combined company specializes in residential cabinetry, offering a broad range of designs and price points. However, Fitch assumes that demand across the company's product portfolio would exhibit similar declines in a weaker economic environment. Additionally, Fitch believes cabinetry has limited brand equity, which can limit pricing power and is more susceptible to consumer trade-downs in weaker economic conditions relative to some other non-discretionary building products. Customer Concentration: MasterBrand's top 10 customers accounted for 55% of its 2024 net sales, with significant exposure to Lowe's Companies, Inc. (unrated) and The Home Depot, Inc. (A/Stable), which represented 20% and 17% of sales, respectively. The combined entity is expected to have a similar customer concentration. Fitch believes the combined entity will benefit from these customers' extensive retail networks and their expansion into the professional segment. However, these big-box retailers have significant bargaining power, which may limit MasterBrand's ability to increase prices or sales volumes. Peer Analysis MasterBrand is smaller and less diversified by product offering and geography compared with other building products manufacturers, such as James Hardie International Group Ltd. (James Hardie; BBB/Negative), Fortune Brands Innovations, Inc. (Fortune; BBB/Stable), and Standard Building Solutions Inc. (Standard; BB/Stable). MasterBrand's credit metrics are stronger than those of Standard and James Hardie, and similar to those of Fortune. However, MasterBrand has weaker EBITDA margins compared to these peers, but maintains similar end-market diversification. MasterBrand has a narrower product offering than Fortune and James Hardie, but is comparable to Standard. In addition, MasterBrand's end markets are more discretionary and cyclical than those of Standard. Key Assumptions - The merger with American Woodmark is completed at the beginning of 2026; - Total revenue declines low-single digit in 2025 and organic revenue grows in the low-single digits in 2026; - EBITDA margin is projected at 13%-13.5% in 2025 and to decrease to 11.5%-12.5% in 2026, and 12.5%-13.5% in 2027; - Cost synergies of around $10 million in 2026 and $30 million in 2027. - Capex of around 3%-4% of revenue in 2025 and 2026; - FCF margin of around 3.5%-4.5% of revenue in 2025 and turn negative to neutral in 2026; - FCF applied to repay revolver borrowings in 2025; - EBITDA leverage below 3.0x at YE 2025 and around 2.5x in 2026, driven by EBITDA growth; - Average SOFR at 4.25% in 2025 and 3.75% in 2026. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Fitch's expectation that EBITDA leverage will sustain above 3.0x; - (CFO-capex)/debt sustained below 8%; - The loss of key major customers, which result in substantially lower revenue and EBITDA. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA margin sustained in the mid-teen percentages or higher; - Fitch's expectation that EBITDA leverage will sustain below 2.5x; - (CFO-capex)/debt sustained above 12%; - The company increases its size or expands its product portfolio while maintaining a majority of sales to the remodel market. Liquidity and Debt Structure MasterBrand has ample liquidity, supported by $418.6 million of availability under its $750 million RCF that matures in June 2029 and $120.1 million of cash as of June 29, 2025. Masterbrand's debt maturities are well-laddered, with no major debt maturities until June 2029, when its $750 million RCF becomes due. The next maturity is in July 2032, when its $700 million senior notes mature. Issuer Profile MasterBrand, Inc. (MBC) is the largest manufacturer of residential cabinets in North America. The company sells its products to dealers, distributors, retailers, and builders into the remodeling and new construction markets. American Woodmark is one of the largest cabinet manufacturers in North America. Summary of Financial Adjustments Fitch adds back non-recurring transaction expenses, including acquisition, integration, and restructuring costs, as well as stock-based compensation. 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 ----------- ------ -------- ----- MasterBrand, Inc. LT IDR BB+ Affirmed BB+ senior unsecured LT BB+ Affirmed RR4 BB+ MASTERBRAND INC: Moody's Affirms Ba2 CFR on American Woodmark Deal ------------------------------------------------------------------ Moody's Ratings affirmed the Ba2 corporate family rating, Ba2-PD probability of default rating and Ba3 senior unsecured notes rating of MasterBrand, Inc. (MasterBrand). The speculative grade liquidity (SGL) rating of SGL-2 remains unchanged. The outlook is stable. The stable outlook reflects Moody's expectations that MasterBrand will emerge with a stronger financial profile following the close of the American Woodmark Corporation acquisition, despite continued soft demand within the home repair and remodel end-market that has resulted in lower volumes for MasterBrand. The stable outlook also reflects Moody's expectations that MasterBrand will maintain good liquidity, with a focus on reduction in revolver borrowings post acquisition. MasterBrand is acquiring American Woodmark in an all-stock transaction. At closing, MasterBrand will use its revolving credit facility — expected to be expanded at that time — to pay off American Woodmark's debt of about $375 million. The transaction is expected to be deleveraging. Pro forma for the transaction, debt-to-LTM EBITDA will decline to 2.9x from 3.4x as of June 30, 2025. "The combination of these two companies will meaningfully increase MasterBrand's scale, solidifying its clear leadership in the North American cabinet sector," said Griselda Bisono, Vice President – Senior Credit Officer at Moody's Ratings. The acquisition will increase MasterBrand's value and stock cabinet end market exposure to over 60% from 53%. Value and stock cabinets are the segments that will likely drive demand over the next couple of years due to the affordability pressures faced by consumers. The acquisition is expected to close in the first quarter of 2026. RATINGS RATIONALE MasterBrand's Ba2 CFR reflects the company's leading position as a residential cabinet manufacturer in North America, benefiting from its national footprint in a highly fragmented market. The rating also considers the company's conservative financial policy, including its commitment to maintaining reported net debt-to-EBITDA below 2.0x. These factors are offset by soft demand in the home repair and remodeling market, primarily due to low existing home sales driven by persistently high mortgage rates. This is further compounded by weak growth in new residential construction. The rating also reflects customer concentration with The Home Depot, Inc. (A2 stable) and Lowe's Companies, Inc. (Baa1 stable) and raw material cost volatility—particularly in hardwood lumber—which continues to pressure margins. Moody's expects liquidity to remain good over the next 18 months, supported by a $750 million senior secured revolving credit facility and strong free cash flow generation that Moody's expects will be applied to debt reduction. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Due to MasterBrand's exposure to cyclical end markets and concentration in a highly discretionary product type, Moody's expects the company to maintain stronger credit metrics than similarly rated manufacturing peers. A ratings upgrade would require maintenance of strong liquidity, robust credit metrics, including debt-to-EBITDA comfortably below 2.0x, and a demonstrated track record of adherence to a conservative financial policy. This includes successful integration of the American Woodmark acquisition and achievement of synergy goals. A ratings upgrade would also reflect favorable fundamentals that support demand for residential cabinets. Finally, a ratings upgrade would reflect a more diversified revenue stream that reduces the cyclicality of the business. The ratings could be downgraded if debt-to-EBITDA is sustained above 3.0x or a decline in adjusted EBITA margin is sustained below 10%. The ratings could also be downgraded if the company experiences a deterioration in competitive position or liquidity. The principal methodology used in these ratings was Manufacturing published in September 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. MasterBrand, Inc. is headquartered in Beachwood, Ohio. The company is leading manufacturer of residential cabinets in North America, and is exposed to both the new residential as well as repair and remodel end markets. MEMORIAL GLEN: Seeks Chapter 11 Bankruptcy in Texas --------------------------------------------------- On August 11, 2025, Memorial Glen Cove LLC filed Chapter 11 protection in the Western District of Texas. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Memorial Glen Cove LLC Memorial Glen Cove LLC is a limited liability company. Memorial Glen Cove LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-51840) on August 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. MEMPHIS MADE: James Bailey Named Subchapter V Trustee ----------------------------------------------------- The Acting U.S. Trustee for Region 8 appointed James Bailey, III of Butler Snow, LLP as Subchapter V trustee for Memphis Made Brewing Company LLC. Mr. Bailey will be paid an hourly fee of $595 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Bailey declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: James E. Bailey III Butler Snow, LLP 6075 Poplar Avenue, Suite 500 Memphis, TN 38119 Phone: (901) 680-7347 Email: Jeb.Bailey@butlersnow.com About Memphis Made Brewing Company Memphis Made Brewing Company, LLC operates a small-batch craft brewery and taproom in downtown Memphis, Tennessee. It produces a variety of beers that are distributed locally to restaurants, bars, and retail establishments across the Memphis area. Memphis Made Brewing Company sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tenn. Case No. 25-23931) on August 7, 2025, with $1 million to $10 million in assets and liabilities. Andrew Ashby, vice president, signed the petition. Judge M Ruthie Hagan presides over the case. Toni Campbell Parker, Esq., at the Law Firm of Toni Campbell Parker represents the Debtor as bankruptcy counsel. MERIDIANLINK INC: S&P Places 'B+' ICR on CreditWatch Negative ------------------------------------------------------------- S&P Global Ratings placed its 'B+' issuer credit rating on Costa Mesa, Calif.-based loan origination software and services provider MeridianLink Inc. on CreditWatch with negative implications. S&P said, "We expect all of MeridianLink's debt will be repaid, so we have not placed our issue-level ratings on its debt on CreditWatch. "The CreditWatch negative placement reflects the high likelihood that we could lower the rating on MeridianLink by up two notches after financing plans become clear and once we gain a better understanding of how the business strategy of the new owners will affect its financial and business position when the transaction is completed, which we expect to occur sometime during the fourth quarter of this year. This includes prospective S&P Global Ratings-adjusted credit measures, deleveraging prospects, and financial policies." The CreditWatch placement follows MeridianLink's announcement that it is being taken private by affiliates of financial sponsor Centerbridge Partners L.P. in a transaction that MeridianLink's board has unanimously approved and has the support of shareholders with voting power representing roughly 55% of its outstanding shares, valued at approximately $2 billion. S&P said, "It reflects our view that the transaction is likely to be meaningfully negative for the company's credit profile and indicates a high likelihood that we will lower our ratings by up to two notches upon its completion, which we expect to occur in the second half of 2025, subject to customary regulatory and shareholder approvals." Public filings suggest a level of debt financing that would lead to meaningfully higher leverage. Centerbridge has not finalized its financing plans for the proposed transaction. However, public filings indicate lender commitments for a $961 million senior secured first-lien term loan, a $150 million senior secured first-lien revolving credit facility, and a $250 million delayed-draw term loan facility. Based on these assumptions, S&P estimates S&P Global Ratings-adjusted leverage could be about 7x or higher at closing. S&P said, "We believe the change in ownership could prompt more aggressive financial policies. Our current ratings on MeridianLink account for financial policy risks associated with current financial sponsor Thoma Bravo's ownership stake. However, as a public company, MeridianLink has maintained a stated net leverage target of 3x (around 4x-on an S&P Global Ratings-adjusted basis), which we view as less aggressive than that of most other companies we rate with ownership stakes held by financial sponsors. Given expectations for significantly higher leverage, along with the presence of a delayed-draw term loan in the debt financing commitment, which could support future debt-funded acquisitions, we believe there is a greater risk that the proposed change in ownership could result in a more aggressive financial policy. "We expect all Merdianlink's outstanding debt to be repaid in connection with closing. Given these expectations, we have not placed our issue-level ratings on its debt on CreditWatch. We plan withdraw the issue-level ratings on Merdianlink's debt once the transaction is complete and we have confirmation of repayment. "The CreditWatch negative placement reflects the high likelihood that we could lower the rating on MeridianLink by up two notches after financing plans become clear and once we gain a better understanding of how the business strategy of the new owners will affect its financial and business position, including prospective S&P Global Ratings-adjusted credit measures, deleveraging prospects, and financial policies, when the transaction is consummated, which we expect to occur sometime during the fourth quarter of this year." MERIT STREET: Required to Turn Over Texts, Emails ------------------------------------------------- Clara Geoghegan of Law360 reports that on Thursday, August 14, 2025, a Texas bankruptcy judge directed Dr. Phil's production company and the bankrupt broadcaster he co-founded to comply with creditor discovery requests aimed at dismissing Merit Street Media's increasingly contentious Chapter 11 case. 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. MGIC INVESTMENT: Moody's Assigns '(P)Ba1' Preferred Shelf Rating ---------------------------------------------------------------- Moody's Ratings has upgraded the senior unsecured debt rating of MGIC Investment Corporation (NYSE: MTG) to Baa2 from Baa3. Moody's also upgraded the insurance financial strength ratings of Mortgage Guaranty Insurance Corporation (MGIC), and MGIC Indemnity Corporation (MIC) to A2 from A3. Moody's also assigned provisional ratings - senior unsecured shelf at (P)Baa2, subordinated shelf at (P)Baa3, and preferred shelf at (P)Ba1 to MTG's shelf registration that was filed by the company on May 02, 2025. The multi-security shelf registration allows MTG to issue various classes of debt and preferred stock. The rating outlook for these entities has changed to stable from positive. RATINGS RATIONALE The ratings upgrade is based on MTG's consistent performance and its strong business and financial profile, including good net capital generation which benefits from robust profitability and capital adequacy. Moody's also note that MTG maintains a balanced approach to capital management and the company's adjusted financial leverage (excluding AOCI) remains low among its peers around 10.8% as of June 30, 2025. At Q2 2025, MTG had approximately $1.3 billion of excess of loss reinsurance protection through its Home Re insurance-linked note transactions and traditional reinsurance. These arrangements provide significant off-balance sheet capital resources to absorb losses during periods of elevated mortgage credit losses. As of June 30, 2025, the company reported a PMIERs sufficiency ratio (a measure of capital adequacy) of around 172%. Through the first six months of 2025, MTG reported net income of $378 million that includes a low loss ratio of 1.4%, and slightly higher than the -2.8% from the prior year period. As of June 30, 2025, MTG's delinquency rate was 2.2%. Due to the significant amount of homeowners' equity that has built up due to the strong increase in home prices over the past several years, Moody's expects a significant portion of currently delinquent loans to cure without paid mortgage insurance claims. The US mortgage insurance sector has produced strong results over the past several years as strength in the US housing market and low levels of unemployment have provided supportive conditions for mortgage credit. Default rates have been relatively steady and have now largely stabilized at levels consistent with strong underwriting profitability. Although housing affordability remains an issue due to strong house price appreciation in recent years and elevated mortgage interest rates, portfolio mark-to-market LTV ratios in the 75 to 80% range are likely to keep the percentage of defaults rolling to claims relatively low. Insurers in the sector have reported strong net income returns on capital, high persistency rates on their inforce, and very strong risk-adjusted capital adequacy metrics, with large capital cushions and strong holding company liquidity. The significant utilization of excess of loss reinsurance through insurance-linked notes and excess of loss reinsurance also bolsters the credit profiles of the US mortgage insurers. The comprehensive reinsurance programs in place throughout the sector dampen the potential for capital volatility that has historically impacted the mortgage insurance sector during adverse economic environments. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given MTG's current ratings, its business and financial profile and the risk profile of mortgage insurance, there is limited potential for upward rating movement. However, the following factors could result in an upgrade of the ratings: 1) publicly stated commitment to maintain PMIERs sufficiency ratio at 175%, or above; 2) increased client and geographic diversification of insured portfolio; 3) continued maintenance of comprehensive reinsurance program; and 4) minimal use of debt in the capital structure with adjusted financial leverage maintained at 10%, or below. The following factors could result in a downgrade of the ratings: (1) PMIERs sufficiency ratio below 150% for more than one quarter, (2) Decline in shareholders' equity (including share repurchases) by more than 10% over a rolling twelve month period; (3) Significant weakening of underwriting standards or pricing; or (4) adjusted financial leverage above 15% for an extended period. MGIC Investment Corporation's, a mortgage insurance company domiciled in Milwaukee, WI, provides mortgage insurance products in the United States. As of June 30, 2025, MGIC Investment Corporation reported consolidated assets of $6.5 billion, shareholders' equity of $5.2 billion, and primary insurance in force of $297 billion. The principal methodology used in these ratings was Mortgage Insurers published in March 2024. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. MIAMI-DADE COUNTY IDA: Moody's Rates Ser. 2025 Revenue Bonds 'Ba2' ------------------------------------------------------------------ Moody's Ratings has affirmed Miami Community Charter Schools, Inc., FL's (MCCS) Ba2 revenue bond rating and assigned a Ba2 rating to the proposed $17.77 million Educational Facilities Revenue Bonds (Miami Community Charter Schools, Inc. Project), Series 2025 issued through the Miami-Dade County Industrial Development Authority, FL. The outlook remains stable. Post-issuance the school will have approximately $25 million in total debt outstanding. RATINGS RATIONALE The Ba2 rating reflects MCCS's adequate financial operations, demonstrated by a five-year average operating cash flow margin of 15% and fiscal 2024 pro forma MADS coverage of 1.29x. The school benefits from a growing enrollment base-now exceeding 1,100 students-and a long operating history. Liquidity, while modest at 77 days cash on hand in fiscal 2024, is projected to improve due to a strong fiscal 2025 operating performance, driven by one-time settlement proceeds from the Miami-Dade County School District. The school is strategically located in a growing area of Miami-Dade County and has a strong community presence. However, MCCS faces increasing competition from other charter schools and remains exposed to key person risk, as its founding executive director continues to lead operations. This risk is mitigated by a formal succession plan and capable internal leadership team. MCCS will continue to face construction risk related to a new middle and high school facility until completion; the new facility is scheduled to open December 2026. RATING OUTLOOK The stable outlook reflects the likelihood that operating performance will remain adequate, liquidity will significantly improve, and enrollment will grow in line with projections. The outlook also assumes no material deterioration in academic performance and continued governance stability. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Enrollment growth to over 1,200 students -- Debt service coverage consistently above 1.5x -- Days cash on hand consistently above 150 days -- On-time and on-budget completion of the new facility project FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Declining enrollment or weaknening of competitive positioning -- Weakened operating cash flow margins, resulting in debt service coverage below 1.1x -- Days cash on hand below 60 days -- Construction delays or material cost overruns PROFILE Miami Community Charter Schools, Inc. is a Florida-based nonprofit operating three campuses serving grades K-12 in Florida City. The school serves 1,128 students under three separate charter contracts with Miami-Dade County Public Schools, all expiring June 30, 2033. Founded to serve migrant farmworker families, MCCS plays a unique role in its community, particularly near the Everglades Migrant Camp. The school maintains strong community ties, high student and faculty retention, and a growing waitlist. METHODOLOGY The principal methodology used in these ratings was US Charter Schools published in April 2024. MID-COLORADO INVESTMENT: Hires LRE Water as Water Consultant ------------------------------------------------------------ Mid-Colorado Investment Company, Inc seeks approval from the U.S. Bankruptcy Court for the District of Colorado to employ LRE Water as water consultant. The firm's services include: a. assisting with compliance, including regulatory support and technical advice regarding the investigation of the Business by the Colorado Department of Public Health and Environment ("CDPHE"); b. providing well-health Hydrogeologic expertise to evaluate existing groundwater sources and long-term supply planning; c. assisting with water-rate setting, including evaluating system costs, estimating user rates, analyzing rate structures, and conducting a comparison of water rates charged by similar nearby systems to support the Debtor's pricing for water delivered to the Sage Water Users Association; and d. if necessary, valuating the Debtor's water-delivery system and water rights. The firm will be paid at the rate of $230 per hour. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Jessica DiToro, a senior project manager at LRE Water, 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: Jessica DiToro LRE Water 1221 Auraria Parkway Denver, CO 80204 Tel: (303) 455-9589 About Mid-Colorado Investment Company, Inc. Mid-Colorado Investment Company provides bulk water services to a community in El Paso County and operates a small cattle ranch. Mid-Colorado Investment Company filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Colo. Case No. 25-11742) on March 31, 2025, listing up to $10 million in assets and up to $50,000 in liabilities. Charles A. Hagedorn, president and treasurer of Mid-Colorado Investment Company, signed the petition. Judge Joseph G. Rosania, Jr. oversees the case. The Debtor tapped Daniel J. Garfield, Esq., at Fairfield and Woods, PC as bankruptcy counsel and Hackstaff Snow Atkinson & Griess, LLC as special counsel. MISSION POINT: Seeks to Hire Ahern & Kill as Special Counsel ------------------------------------------------------------ Mission Point of Detroit LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Michigan to hire Ahern & Kill to serve as its special counsel. Ahern & Kill will provide these services: (a) provide legal services relating to collections of accounts receivable; (b) handle two open collection matters and additional collection matters on behalf of the Debtor; and (c) assist in the recovery of outstanding receivables and related litigation. Ahern & Kill will receive hourly billing rates ranging from $240 to $305. The firm also charges for out-of-pocket expenses, including photocopying, printing, postage, court fees, transcript costs, travel expenses, and computer-aided research. According to court filings, Ahern & Kill is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code and will waive and release all debt and pre-petition claims against the Debtor upon entry of an order approving the application. The firm can be reached at: Amanda Kill, Esq. AHERN & KILL 355 S. Old Woodward, Suite 210 Birmingham, MI 48009 Telephone: (248) 723-6101 Facsimile: (248) 723-6102 About Mission Point of Detroit Mission Point of Detroit, LLC is a skilled nursing and rehabilitation facility located in Detroit, Mich. It operates under the Mission Point Healthcare Services network, which manages post-acute care centers across the state. The facility provides short-term rehabilitation, long-term care, and specialized nursing services. Mission Point of Detroit sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-43883) on April 16, 2025, listing between $1 million and $10 million in both assets and liabilities. Judge Maria L. Oxholm handles the case. Ryan Heilman, Esq., at Heilman Law, PLLC is the Debtor's bankruptcy counsel. The Huntington National Bank, as secured creditor, is represented by: Douglas C. Bernstein, Esq. Plunkett Cooney 38505 Woodward Avenue, Suite 100 Bloomfield Hills, MI 48304 Telephone: (248) 901-4091 E-mail: dbernstein@plunkettcooney.com Deborah L. Fish is the patient care ombudsman appointed in the Debtor's case. MODUS SYSTEMS: Unsecureds Will Get 100% in Liquidating Plan ----------------------------------------------------------- Modus Systems, LLC, filed with the U.S. Bankruptcy Court for the Central District of California a Disclosure Statement in support of Chapter 11 Plan of Liquidation dated August 8, 2025. The Debtor was formed on June 20, 2017, by Allen Klevens, for the purpose of serving as the operating company for Modus Inc. ("MSI"), one of the Debtor's members. Klevens is the majority member and CEO of MSI and previously served as the Debtor's CEO and CFO until his resignation in 2023. The Debtor holds patents for the stall-locking system, as well as a trademark for the Tooshlights brand and several marketing slogans, such as, "Know where to go." There are working units of Tooshlights in certain stores operated by Bucc-ee's and other locations. The Debtor intends to file a motion under Bankruptcy Rule 9019 for approval of a global settlement agreement (the "Settlement Agreement") by and between the Debtor, MSI, M&M Systems Solutions LLC, Klevens, Sloan Global, Sloan Valve, James Cutler, Parthiv Amin, and Bucee's. Under the terms of the Settlement Agreement, the parties thereto agreed to fully resolve all actual and potential claims and disputes between them in exchange for (i) mutual releases, (ii) support of the Plan, including the sales process set forth in the Plan and described in this Disclosure Statement, and (iii) the allowance and treatment of the claims against the Debtor, as also set forth in the Plan and described in this Disclosure Statement. Class 5 consists of General Unsecured Claims. Except to the extent that a Holder of an Allowed General Unsecured Claim agrees to less favorable treatment or has been paid by the Debtor prior to the Effective Date, each Holder of an Allowed General Unsecured Claim shall receive in full and final satisfaction, settlement, and release of such Allowed General Unsecured Claim shall be paid in full from the General Unsecured Claim Distribution Fund. The allowed unsecured claims total $610.80. This Class will receive a distribution of 100% of their allowed claims. For the avoidance of doubt, neither the Sloan Deficiency Claim or the Buc-ee's Deficiency Claim shall be treated as a Class 4 General Unsecured Claim; rather, the Sloan Deficiency Claim and the Buc-ee's Deficiency Claim shall be treated as a Class 5A and Class 5B Claim. Holders of Interests in the Debtor will not receive any Distribution under the Plan on account of such Interests. On the Effective Date, all Interests in the Debtor shall be deemed cancelled. The Debtor will sell the Intellectual Property through a Private Sale to either Sloan and/or Buc-ee's, and in the absence of such Private Sale, via a Court-supervised Auction (in which case will culminate in a live Auction held in Court at the Confirmation Hearing). To the extent the Intellectual Property is sold to Sloan or any Sloan Related Party via a Private Sale or Auction, then such Intellectual Property acquired shall be jointly owned by Sloan and Buc-ee’s equally and on an undivided basis notwithstanding Sloan's purchase or acquisition by agreement between Sloan and Buc-ee's pursuant to and in accordance with that certain Technology Ownership Agreement, entered into between Sloan and Buc-ee's as of June 17, 2020, as later amended, clarified and/or supplemented. Distributions to creditors holding Allowed Claims under the Plan will be paid from the carve-out from the Sale Proceeds or Auction Proceeds, as applicable, from the Bucee's Contribution and Sloan Contribution after payment of all Allowed Administrative Claims, together with any Cash resulting from the monetization of any Litigation Rights, according to the priority and manner set forth in the Plan. A full-text copy of the Disclosure Statement dated August 8, 2025 is available at https://urlcurt.com/u?l=wkrlq5 from PacerMonitor.com at no charge. Counsel to the Debtor: Robert P. Goe, Esq. Goe Forsythe & Hodges LLP 17701 Cowen, Lobby D, Suite 210 Irvine, CA 92614 Tel: (949) 796-2460 Fax: (949) 955-9437 Email: rgoe@goeforlaw.com About Modus Systems, LLC Modus Systems, LLC filed a Chapter 7 petition (Bankr. C.D. Cal. Case No. 24-10655) on March 19, 2024. The case was converted to one under Chapter 11 on Jan. 10, 2025. Judge Scott C. Clarkson oversees the case. Goe Forsythe & Hodges, LLP, is the Debtor's legal counsel. MOLINA VENTURES: Seeks to Hire Hacker Law Firm as Counsel --------------------------------------------------------- Molina Ventures, LLC d/b/a American Air Conditioning & Heating Co. seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to employ Hacker Law Firm as counsel. The firm will render these services: (a) advise and consult with Debtor as to its powers and duties in the continued operation of its business and management of its properties during bankruptcy; (b) take actions as may be necessary to preserve and protect the Debtor's assets; (c) prepare, on behalf of the Debtor, necessary legal papers in connection with matters affecting it and its estate; and (d) assist the Debtor in the development, negotiation and confirmation of a plan of reorganization and the preparation of a disclosure statement or statements in respect thereof. The firm will be paid at these rates: Heide McLeod, Of Counsel $450 Paul S. Hacker, Lead Counsel $425 Tammy Haugabrook, Legal Assistant $125 In addition, the firm will seek reimbursement for expenses incurred. Mr. Hacker 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: Paul S. Hacker, Esq. Hacker Law Firm 3355 Cherry Ridge, Ste. 214 San Antonio, TX 78230 Telephone: (210) 595-2045 Facsimile: (210) 595-2037 Email: steve@hackerlawfirm.com About Molina Ventures, LLC d/b/a American Air Conditioning & Heating Co. Molina Ventures LLC, doing business as American Air Conditioning & Heating Co., provides heating, ventilation, and air conditioning services to residential and commercial clients in the San Antonio, Texas area. Molina Ventures LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-51802) on August 4, 2025. In its petition, the Debtor reports total assets of $726,079 and total liabilities of $2,096,654. Honorable Bankruptcy Judge Craig A. Gargotta handles the case. The Debtor is represented by Paul Steven Hacker, Esq. at HACKER LAW FIRM, PLLC. MOSAIC SUSTAINABLE: Seeks to Hire Deloitte Tax LLP as Tax Advisor ----------------------------------------------------------------- Mosaic Sustainable Finance Corporation and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Deloitte Tax LLP as tax advisory services provider. The firm's services include: a. Tax Advisory Engagement Letter. Pursuant to the terms and conditions set forth in the Tax Advisory Engagement Letter, Deloitte Tax will provide tax advisory services on federal, foreign, state and local tax matters as requested by the Debtors and agreed to by the Debtors for the period through December 31, 2025. b. Tax Return Engagement Letter. Pursuant to the terms and conditions set forth in the Tax Return Engagement Letter, Deloitte Tax will prepare the 2024 federal, state and local income tax returns identified in the Listing of Federal and State and Local Income Tax Returns Included in Engagement, attached as Exhibit A to the Tax Return Engagement Letter, as well as assist in calculating the amounts of extension payments, preparing extension requests and calculating 2025 quarterly estimated tax payments as requested by the Debtors. c. Debt Tax Work Order. Pursuant to the terms and conditions set forth in the Debt Tax Work Order, Deloitte Tax will perform debt tax calculations, including the preparation of taxable income and tax basis reports, for certain of the Debtors' securitization transactions. d. Research Work Order. Pursuant to the terms and conditions set forth in the Research Work Order, Deloitte Tax will provide the services set forth below related to Research and Development ("R&D") and Research and Experimental ("R&E") Expenditure analysis tax advisory services for the tax year ending December 31, 2024, including: (1) Accumulating cost accounting records necessary to quantify the qualified R&D activities on a project-by project basis where it is possible to accumulate information to allocate Debtors' expenditures to projects; (2) Preparing a calculation of the R&D tax credit in accordance with the requirements of Internal Revenue Code ("IRC") Section 41 and relevant state statutes, where applicable; (3) Preparing a methodology memorandum and project description matrix intended to demonstrate how Debtors' R&D activities meet the requirements for qualification as research under IRC Section 41; (4) Collecting and organizing available contemporaneous documentation and compiling in a matrix designed to demonstrate the relevance of the documentation to the qualified research activities; (5) Preparing and accumulating documentation to support the California Research & Development state tax incentives, where applicable; (6) Accumulating cost accounting records necessary to quantify the qualified R&E expenditures and activities incurred by the Debtors; (7) Analyzing Debtor-prepared documentation and conducting interviews with appropriate Debtor personnel to identify the appropriate nature of the expenditures incurred that meet the criteria of IRC Section 174; (8) Organizing the supporting documentation that is available, relevant, and provided to Deloitte Tax (e.g., account descriptions, accounting policies, etc.); and (9) Preparing a calculation of the R&E expenditures in accordance with the requirements of IRC Section 174 for domestic and foreign activities. e. Restructuring Work Order. Pursuant to the terms and conditions set forth in the Restructuring Work Order, Deloitte Tax has agreed to perform the services set forth below related to debt discharge and other tax issues arising in connection with the Debtors' potential restructuring and/or potential Chapter 11 filing of which Debtors may become the subject, as follows: (1) Advising the Debtors as they consult with their legal and financial advisors on the cash tax implications of restructuring, bankruptcy, and the post-restructuring tax profile, including transaction costs and/or plan of reorganization tax costs, and the cash tax effects of the chapter 11 filing and emergence transaction, considering the tax assumptions within Debtors' financial advisors' valuation model; (2) Advising the Debtors regarding the restructuring and bankruptcy emergence process from a tax perspective, including analysis of various structuring alternatives and modifications of debt; (3) Advising the Debtors on the cancellation of debt income for tax purposes under IRC section 108, including income generated from a restructuring, bankruptcy emergence transaction, and/or modifications of debt; (4) Advising the Debtors on post-restructuring and post-bankruptcy tax attributes (tax basis in assets, tax basis in subsidiary stock and net operating loss carryovers) available under the applicable tax regulations and the reduction of such attributes based on the Debtors' operating projections, including a technical analysis of Treasury Regulation Section 1.1502-28 and its interaction with IRC sections 108 and 1017; (5) Advising the Debtors on net built-in gain or net built-in loss position at the time of "ownership change" (as defined under IRC section 382), including limitations on use of tax losses generated from post-restructuring or post-bankruptcy asset or stock sales; (6) Advising the Debtors on the effects of tax rules under IRC sections 382(l)(5) and (l)(6) pertaining to the post-bankruptcy net operating loss carryovers and limitations on their utilization, and the Debtors' ability to qualify for IRC section 382(l)(5); (7) Advising the Debtors regarding the treatment of post-petition interest for federal and state income tax purposes, including the applicability of the interest limitations under IRC section 163(j); (8) Advising the Debtors on the state and federal income tax treatment of pre-petition and post-petition reorganization costs, including restructuring-related professional fees and other costs, the categorization and analysis of such costs, and the technical positions; (9) Advising the Debtors on the evaluation and modeling of the tax effects of liquidating, disposing of assets, merging, or converting entities as part of the restructuring, including the effects on federal and state tax attributes, state incentives, apportionment and other tax planning; (10) Advising the Debtors on state income tax treatment and planning for restructuring or bankruptcy provisions in various jurisdictions, including cancellation of indebtedness calculations, adjustments to tax attributes and limitations on tax attribute utilization; (11) Advising the Debtors on responding to tax notices and audits from various taxing authorities; (12) Assisting the Debtors with identifying potential tax refunds and advising the Debtors on procedures for obtaining tax refunds from tax authorities; (13) Advising the Debtors on income tax return reporting of restructuring and/or bankruptcy issues and related matters; (14) Assisting the Debtors with documenting, as appropriate, the tax analysis, development of the Debtors' opinions, recommendation, observations, and correspondence for any proposed restructuring alternative tax issue or other tax matter described above (excluding the preparation of information for tax provision or financial reporting purposes); (15) Advising the Debtors on non-U.S. tax implications and structuring alternatives; (16) Advising the Debtors with their efforts to calculate tax basis in subsidiary stock or other equity interests; (17) Advising the Debtors with their efforts to calculate tax basis in assets by entity; (18) As requested by the Debtors and as may be agreed to by Deloitte Tax, advising the Debtors regarding other state, federal, or international income tax questions as needed; (19) As requested by the Debtors and as may be agreed to by Deloitte Tax, assisting in documenting tax analysis, recommendations, observations, development of Debtors' opinions, and correspondence for any proposed debt restructuring, or other tax matter described above; and (20) As requested by the Debtors and as may be agreed to by Deloitte Tax, advising the Debtors regarding other state or federal income tax questions (e.g., ability to take worthless stock deduction) that may arise in the course of this engagement. The firm will be paid at these rates: Partner/Director $841 to $932 per hour Managing Director $841 to $932 per hour Senior Manager $753 to $791 per hour Manager $637 to $677 per hour Senior $529 to $529 per hour Staff $428 to $428 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Boulos 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: Ala'a Boulos Deloitte Tax LLP 1111 Bagby Street, Suite 4500 Houston, TX 77002 Tel: (713) 982-2000 About Mosaic Sustainable Finance Corporation Mosaic Sustainable Finance Corporation sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90156) on June 6, 2025, with $1,000,000,001 to $10 billion in assets and liabilities. Judge Christopher M. Lopez presides over the case. Charles Martin Persons, Esq., at Paul Hastings LLP, represents the Debtor as legal counsel. MOWBRAY WATERMAN: To Sell Visalia Property to J. Nunez & O. Salazar ------------------------------------------------------------------- Mowbray Waterman Property, LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California, Santa Ana Division, to sell Property located at 17332 Millwood Dr., Visalia, CA 93292, free and clear of liens, claims, interests, and encumbrances. The Property is a single-family residence comprising two units totaling approximately 2,500 square feet, on a lot of approximately one acre. The proposed sale is a noncontingent all cash sale to Javier Salazar Nunez and Omar Salazar (Buyer) for $371,000.00, subject to competing bids. The Debtor has marketed the Property for over 19 months and the Buyer's offer is, at present, the highest and best offer received for the Property. Moreover, the overbid procedures proposed herein are reasonable, are designed to stimulate further bidding, and will ensure that the Property is sold for the highest and best price. The Debtor is a California limited liability company. Robin Mowbray, a debtor in bankruptcy case no. 8:25-bk-10543-SC, is the Debtor's managing member and 51% owner, with the remaining 49% owned by the Gloria Mowbray Separate Property Trust, a special needs trust of which Robin Mowbray is the Trustee, and her father, John Mowbray is the beneficiary. The Debtor has no employees but contracts with Robin Mowbray to provide various management services. The Debtor owns five real properties in California collectively valued at approximately $10,000,000. Two of the Debtor’s properties generate approximately $40,000 in monthly revenue. The Debtor filed an application to employ Keller Williams Realty Tulare County as its real estate broker to market and sell the Property on the Debtor's behalf. To date, numerous prospective buyers have inquired and/or toured the Property, and the Debtor has received a handful of offers to purchase the Property (though multiple offers subsequently were withdrawn). Given the amount of the offer received from the Buyer, the Broker believes that the Buyer’s offer is the best offer received to date. The Debtor is not aware of any liens against the Property. The listing broker and any cooperating brokers are entitled to share a total of 5.50% commission on the Purchase Price (3.00% to Seller's broker and 2.50% to Buyer's broker). The Property will be sold subject to overbid at an open auction (Auction) to be conducted by the Debtor's counsel in Court at the time that this Motion is heard. The Debtor proposes the following overbid procedures to govern any bidding: The Bid Deadline is 5:00 p.m. (P.S.T.) on September 1, 2025 (about 48 hours prior to the Auction). A Qualified Bidder that desires to make a bid must deliver a Qualified Bid to the Debtor's Broker, Kyrstin Souza -- kyrstin@robynicenhower.com -- so that it is received by the Bid Deadline. Any due diligence must have been completed by the Bid Deadline. Any person seeking due diligence or wishing to view the Property shall contact Kyrstin Souza at kyrstin@robynicenhower.com or (559) 931-0355. The Debtor may withhold due diligence if the Potential Bidder does not become, or the Debtor determines, in its discretion, that the Potential Bidder is not likely to become, a Qualified Bidder. Only "Qualified Bidders" may bid on the Property. To become a Qualified Bidder, any person or entity who wishes to bid on the Property (each such person or entity, a Potential Bidder) must, by the Bid Deadline, deliver to the Debtor’s counsel written proof satisfactory to the Debtor that the Potential Bidder is financially capable of consummating the proposed sale, including financial statements, copies of recent statements of bank accounts, evidence of certified funds, a commitment for financing, and/or such other financial information as may be requested by the Debtor to allow the Debtor to make a reasonable determination, in its sole and absolute discretion. A bid must exceed the Purchase Price by at least $5,000 and otherwise be on terms, in the Debtor's business judgment, no less favorable than the Agreement. A bid must be accompanied by a deposit in the amount of $2,000, made by wire transfer, certified funds, or cashier's check payable to the Debtor, which deposit is refundable only if the Qualified Bidder is not deemed the Winning Bidder or if the Qualified Bidder is deemed the Winning bidder but the sale is not consummated because the Bankruptcy Court does not approve the sale to such Qualified Bidder. The bid must not request or entitle the Qualified Bidder to any break-up fee, topping fee, termination fee, broker’s fee, expense reimbursement, or similar type of payment. If no Qualified Bid is received by the Debtor by the Bid Deadline, then the Debtor will request that the Court approve the sale of the Property to the Buyer and there will be no Auction. If a Qualified Bid is timely received by the Debtor, then the Debtor will hold the Auction. The Auction of the Property will take place virtually via Zoom at 1:30 p.m. (P.S.T.) on July 30, 2025, or such different time or other place as may be determined by the Debtor in its sole discretion. Any change in the time or place of the Auction shall be promptly provided in writing to all Qualified Bidders who have submitted Qualified Bids. The Property is unencumbered and its sale will generate significant cash for the estate. The Buyer’s offer represents the best offer obtained by listing the Property on the open market for over 19 months, and is therefore, consistent with market value. About owbray Waterman Property, LLC Mowbray Waterman Property, LLC is a real estate company based in San Bernardino, Calif., specializing leasing of commercial and residential properties. Mowbray Waterman Property sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10930) on February 19, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. Judge Mark D. Houle handles the case. The Debtor is represented by Lauren Gans, Esq., at Elkins Kalt Weintraub Reuben Gartside, LLP. MP COMPLETE: Linda Leali Named Subchapter V Trustee --------------------------------------------------- The U.S. Trustee for Region 21 appointed Linda Leali, Esq., as Subchapter V trustee for MP Complete Solutions, LLC. Ms. Leali will be paid an hourly fee of $450 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Leali declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Linda M. Leali Linda M. Leali, P.A. 2525 Ponce De Leon Blvd., Suite 300 Coral Gables, FL 33134 Telephone: (305) 341-0671, ext. 1 Facsimile: (786) 294-6671 Email: leali@lealilaw.com About MP Complete Solutions LLC MP Complete Solutions, LLC owns the property located at 3900 SW 56th St., in Fort Lauderdale, Florida, with an appraised value of $1.09 million. MP Complete Solutions filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-19098) on August 6, 2025. In its petition, the Debtor reported total assets of $1,107,677 and total liabilities of $1,511,660. Honorable Bankruptcy Judge Peter D. Russin handles the case. The Debtor is represented by Adam I. Skolnik, Esq., at the Law Office of Adam I. Skolnik, PA. NEXUS BUYER: Moody's Lowers CFR to B3 & Alters Outlook to Stable ---------------------------------------------------------------- Moody's Ratings downgraded the credit ratings of Nexus Buyer LLC (IntraFi), including the Corporate Family Rating to B3 from B2, the Probability of Default Rating to B3-PD from B2-PD, the senior secured first lien bank credit facilities ratings (revolving credit facility and term loans) to B2 from B1, and the senior secured second lien bank credit facilities ratings to Caa2 from Caa1. The outlook changed to stable from negative. The downgrade largely reflects the upsizing of the recently announced $815 million second lien bank credit facility to $1,300 million and the $650 incremental first lien bank credit facility to $705 million to increase the planned to distribution to shareholders to nearly $1.5 billion. The transaction would bring IntraFi's total reported debt to nearly $4.5 billion, and pro forma financial leverage to about 9x; Moody's expects it will take close to two years for the company to de-lever below 7x. Additionally, the increased debt quantum will pressure cash flow generation, especially given the elevated tax-related distributions that IntraFi makes annually. Governance considerations include aggressive financial policies that prioritize shareholder interests, including by increasing leverage from time to time to pay sizable dividends to the company's owners, and were a key driver of the rating actions. The stable outlook reflects expectations that net revenue will grow in the high single digit range in the near term and that the company will maintain adequate liquidity, with approximately $90 million in pro forma cash and an undrawn $100 million revolver. RATINGS RATIONALE The B3 CFR reflects elevated leverage at about 9x pro forma for the present dividend transaction (and inclusive of stock based compensation), a history of frequent and mostly debt-funded dividend recapitalizations, exposure to changes in the regulatory framework for bank deposits and FDIC deposit insurance, the potential for technological disruption of deposit allocation services, and elevated tax distributions to owners given the LLC taxation structure which are likely to result in negative free cash flow in the near term (even when excluding non-tax related distributions to shareholders). These factors are balanced by a healthy organic growth trajectory with expectations of net revenue growth of about 8% in 2025, after a 22% expansion in 2024, as the company has seen a solid increase in demand for its services from banks looking to retain deposits and to improve their percentage of insured deposits, as well as from consumers of banking services, who want the peace of mind of having their deposits fully insured. Also, ongoing aggregate deposit growth at commercial banks, return of balances to traditional bank accounts—from treasuries and money market mutual funds--as interest rates have modestly declined, as well as ongoing onboarding of financial institutions into the network, should result in greater growth in IntraFi's network balances, and thus revenue and EBITDA growth. The company has adequate liquidity characterized by a cash balance of about $90 million at June 30, 2025 (pro forma for the proposed transaction) and an undrawn $100 million revolving credit facility due 2029, which mitigate the negative impact of likely negative free cash flow in the next 12 months (even when excluding non-tax related shareholder distributions). The company has sufficient cushion under the first lien net leverage springing covenant. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if debt-to-EBITDA is expected to be sustained under 7x, free cash flow to debt is maintained above 3% (excluding non-tax shareholder distributions), together with ongoing revenue and EBITDA growth. The ratings could be downgraded revenue and/or EBITDA growth decelerate or decline, especially as a signal of structurally weaker demand for the company's products, liquidity weakens and free cash flow (excluding non-tax shareholder distributions) is negative on a sustained basis. Founded in 2002, IntraFi is a financial technology solution provider acting as an intermediary network between financial institutions collecting and using deposits. With a network of more than 3,000 financial institutions and net revenues of approximately $657 million, the company is the leading provider of deposit allocation services in the United States. The company was acquired by Blackstone Group and management in 2019 for total purchase asset value of about $2.5 billion, and Warburg Pincus was added as a shareholder in 2022. TPG Capital made a small investment in the company at the end of 2023. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. The B3 CFR is two notches below the scorecard-indicated outcome of B1. The difference results mainly from aggressive financial policies, which include large debt-funded dividends. NIBA DESIGNS: Case Summary & 11 Unsecured Creditors --------------------------------------------------- Debtor: NIBA Designs, Inc 3609 N 29th Ave Hollywood, FL 33020 Business Description: NIBA Designs LLC designs and manufactures custom luxury rugs for interior designers and architects, offering fully bespoke pieces handmade by artisans in India, Nepal, and Peru. The Company provides thousands of customizable rug designs in various styles and offers consultation services including custom renderings, color consulting, and product sampling for residential and commercial projects. Based in the United States, NIBA Designs works exclusively with GoodWeave-certified factories and is recognized in the design community for its craftsmanship, originality, and socially responsible production practices. Chapter 11 Petition Date: August 13, 2025 Court: United States Bankruptcy Court Southern District of Florida Case No.: 25-19316 Judge: Hon. Scott M. Grossman Debtor's Counsel: Chad Van Horn, Esq. VAN HORN LAW GROUP, P.A. 500 NE 4th Street, Suite 200 Fort Lauderdale, FL 33301 Tel: (954) 765-3166 Email: chad@cvhlawgroup.com Total Assets: $157,574 Total Liabilities: $2,728,104 The petition was signed by John Berryman as president. A full-text copy of the petition, which includes a list of the Debtor's 11 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/CDWOXGQ/NIBA_Designs_Inc__flsbke-25-19316__0001.0.pdf?mcid=tGE4TAMA NITRO FLUIDS: Downhole Unsecureds Will Get $25K to $75K in Plan --------------------------------------------------------------- Nitro Fluids, LLC, and its affiliates filed with the U.S. Bankruptcy Court for the Southern District of Texas a Disclosure Statement in support of Second Amended Chapter 11 Plan of Liquidation dated August 8, 2025. There are four debtors in these Chapter 11 Cases: Fluids offers oil & gas frac support services including mixing plants, hydraulic chokes, frac stacks, missiles, and related services; Leasing, a wholly-owned subsidiary of Fluids that leases certain equipment to Straitline; and Straitline offers oil & gas frac and pump down services through three frac fleets and related equipment. Downhole owns equipment and performs downhole completion work. Although the Debtors have historically entered into transactions with one another and are considered Affiliates as such term is defined in the Code, Fluids, Downhole and Straitline operate separate businesses. On the Petition Date, Fluids, Leasing, and Straitline each filed a voluntary petition for relief under Chapter 11 of the Code. On the Downhole Petition Date, Downhole filed its voluntary petition for relief under Chapter 11 of the Code. All of the Cases are being jointly administered under Case No. 24-60018. The Debtors continue to operate their businesses and manage their property as debtors in possession pursuant to Sections 1107(a) and 1108 of the Code. The Debtors had two sale motions approved as well as a de minimis asset sales motion. Sales have occurred pursuant to the approved and amended bid procedures and the de minimis asset sales procedures. A couple of key sales are noted. On September 12, 2024, a Notice of Sale was filed selling certain assets to Element Technical Services, LLC for $1,304,500.00. On April 27, 2025, a Notice of Sale was filed reflecting the sale of assets to Flying A Pumping Services, LLC for $9,910,000.00. On November 7, 2024, Docket No. 365, a Notice of Sale was filed reflecting the sale of assets to KLX Energy Services LLC in the amount of #3,250,000.00. On November 7, 2024, a stipulation was entered into between the Debtors, Simmons and Crescent Pass Energy, LLC delaying the sale process to allow for the Debtors to work on a very successful and profitable frac project resulting in approximately $7 million of additional revenue to the Debtors. Class 7 consists of any Allowed Unsecured Claims against the Debtors. Except to the extent that a Holder of a Class 7 Claim and the Debtors agree to less favorable treatment for such Holder, each Holder of an Allowed Unsecured Claim shall receive, in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange of such Claim, periodic pro rata distributions from the Liquidating Trust as beneficiaries of the Liquidating Trust. The Holders of Claims in Class 7 are Impaired. * Class 7-A consists of Unsecured Claims against Fluids and are entitled to their pro rata distribution from the Fluids Liquidating Trust Assets pursuant to and consistent with the terms of the Liquidating Trust Agreement. The allowed unsecured claims total $53,529,412.00. This Class will receive a distribution of 0% of their allowed claims. * Class 7-B consists of Unsecured Claims against Leasing and are entitled to their pro rata distribution from the Leasing Liquidating Trust Assets pursuant to and consistent with the terms of the Liquidating Trust Agreement. The allowed unsecured claims total $0.00. * Class 7-C consists of Unsecured Claims against Straitline and are entitled to their pro rata distribution from the Straitline Liquidating Trust Assets pursuant to and consistent with the terms of the Liquidating Trust Agreement. The allowed unsecured claims total $75,508,460.00. This Class will receive a distribution of $4,159.00. * Class 7-D consists of Unsecured Claims against Downhole and are entitled to their pro rata distribution from the Downhole Liquidating Trust Assets pursuant to and consistent with the terms of the Liquidating Trust Agreement. The allowed unsecured claims total $59,615,682.10. This Class will receive a distribution of $25,000-$75,000. Class 8 consists of the Holders of Interests in the Debtors. The Class 8 Holders of Interests shall not receive or retain any Property under the Plan. On the Effective Date, all Interests in the Debtors will be transferred to the Liquidating Trust. On the Effective Date, the Liquidating Trust shall be established pursuant to the Liquidating Trust Agreement for the purpose of, among other things, (i) receiving and holding the Liquidating Trust Assets, (ii) investigating and, if appropriate, pursuing Causes of Action (iii) administering and pursuing the Liquidating Trust Assets, (iv) resolving all Disputed Claims, (v) making all distributions from the Liquidating Trust as provided for in the Plan and Liquidating Trust Agreement, and (vi) winding up the Debtors following the Effective Date. On the Effective Date, or as soon as reasonably practicable after the Effective Date, the Debtors will transfer and assign to the Liquidating Trust the Liquidating Trust Assets. On and after the Effective Date, the Liquidating Trustee shall have discretion with respect to the timing of the transfers of Liquidating Trust Assets. The Liquidating Trust will hold and administer, among other things, (i) all of the Debtors' cash in bank account(s) and (ii) the Disputed Claims Reserve. Distributions under the Plan shall be funded with the Liquidating Trust Assets. A full-text copy of the Disclosure Statement dated August 8, 2025 is available at https://urlcurt.com/u?l=jU3yd0 from PacerMonitor.com at no charge. Counsel for the Debtors: BONDS ELLIS EPPICH SCHAFER JONES LLP Joshua N. Eppich, Esq. Eric T. Haitz, Esq. 420 Throckmorton Street, Suite 1000 Fort Worth, Texas 76102 (817) 405-6900 telephone (817) 405-6902 facsimile Email: joshua@bondsellis.com Email: eric.haitz@bondsellis.com - and - Ken Green, Esq. 402 Heights Blvd. Houston, Texas 77007 (713) 335-4990 telephone (713) 335-4991 facsimile Email: ken.green@bondsellis.com About Nitro Fluids LLC Nitro Fluids, LLC, filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-60018) on May 15, 2024, listing $50 million to $100 million in both assets and liabilities. The petition was signed by Brad Walker as chief restructuring officer. Judge Christopher M. Lopez presides over the case. Eric Thomas Haitz, Esq., at Bonds Ellis Eppich Schafer Jones LLP, is the Debtor's counsel. NORTH WHITEVILLE: Hires Law Offices of George Oliver as Counsel --------------------------------------------------------------- North Whiteville Urgent Care & Family Practice, PA seeks approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina to employ George Mason Oliver of The Law Offices of George Oliver, PLLC to serve as legal counsel in its Chapter 11 case. The firm will provide these services: (a) represent and assist the Debtor in carrying out its duties under Chapter 11 of the Bankruptcy Code; (b) advise and represent the Debtor generally throughout the administration of the Chapter 11 proceeding; and (c) perform all legal services necessary to advise and represent the Debtor in the course of this bankruptcy case. The firm will be paid based upon its normal and usual hourly billing rates. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Oliver 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: George Mason Oliver, Esq. The Law Offices of George Oliver, PLLC PO Box 1548 New Bern, NC 28563 Tel: (252) 633-1930 Fax: (252) 633-1950 E-mail: george@georgeoliverlaw.com About North Whiteville Urgent Care & Family Practice, PA 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. NORTHPOINT DEVELOPMENT: Gets Extension to Access Cash Collateral ---------------------------------------------------------------- Northpoint Development Holdings, LLC received another extension from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, to use cash collateral to pay its operating expenses. The 11th interim order authorized the Debtor to use cash collateral until August 31 in accordance with its budget, with a 10% variance. Any further use of cash collateral beyond August 31 requires court approval. The First National Bank of Ottawa, a secured creditor, was granted replacement liens on the cash collateral and all property acquired by the Debtor after the petition date that is similar to its pre-bankruptcy collateral. These replacement liens will have the same priority and extent as the bank's pre-bankruptcy liens. A continued hearing is scheduled for August 20. The Debtor owns a commercial property at 1800 North Bloomington Street, Streator, Illinois, which serves as collateral for multiple loans from The First National Bank of Ottawa. The total amount owed under these loans is approximately $4.37 million while the property is valued at around $6.8 million, according to court filings. About Northpoint Development Holdings Northpoint Development Holdings, LLC is a single asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)). It is the fee simple owner of real property located at 1800 North Bloomington St., Streator, Ill., valued at $6.8 million. Northpoint filed Chapter 11 petition (Bankr. N.D. Ill. Case No. 24-13265) on September 9, 2024, with total assets of $6,800,000 and total liabilities of $5,176,241. Keith Weinstein, manager of Greystone Develpment Holdings, LLC, signed the petition. Judge Deborah L. Thorne oversees the case. Gregory K. Stern, Esq., at Gregory K. Stern, P.C. is the Debtor's legal counsel. First National Bank of Ottawa is represented by: Cindy M. Johnson, Esq. Johnson Legal Group, LLC 140 S. Dearborn St., Ste. 1510 Chicago, IL 60603 Tel: 312-345-1306 Email: Cjohnson@jnlegal.net OAKTREE OCALA: Court Extends Cash Collateral Access to Aug. 29 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York extended Oaktree Ocala JV, LLC and ASAP Highline Ocala, LLC's interim authority to use cash collateral until August 29. The court on August 13 approved modification to its initial order entered on August 5, which approved the Debtors' interim use of cash collateral and set an August 14 final hearing date. That hearing was adjourned to August 27. CPIF claims a security interest in the cash collateral but has not consented to its use. ASAP originally obtained an $18 million loan from CPIF in 2022 to acquire and improve its Ocala property but alleges that CPIF failed to fund the full amount, disbursing only about $12.3 million. This shortfall, along with CPIF's failure to fund tax escrows and future loan advances, prevented ASAP from completing planned renovations and refinancing the loan before its 2024 maturity. CPIF initiated a foreclosure action in late 2024 and attempted to acquire ASAP through a UCC sale, prompting ASAP to file for Chapter 11 to protect its assets and seek judicial resolution of disputes with CPIF. CPIF is represented by: Lawrence J. Kotler, Esq. Duane Morris LLP 22 Vanderbilt 335 Madison Avenue, 23rd Floor New York, NY 10017-4669 Phone: (212) 692-1000 Fax: (212) 692-1020 LJKotler@duanemorris.com About Oaktree Ocala JV LLC Oaktree Ocala JV LLC is a real estate lessor operating under NAICS code 5311. It is based in Suffern, NY with apparent operations in Ocala, Florida. It operates as a joint venture in the real estate leasing sector. Oaktree Ocala JV LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 25-22701) 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: Kenneth M. Lewis, Esq. Whiteford, Taylor & Preston, L.L.P. Tel: 914-761-8400 Email: klewis@whitefordlaw.com OASIS INTERIORS: Arturo Cisneros Named Subchapter V Trustee ----------------------------------------------------------- The U.S. Trustee for Region 16 appointed Arturo Cisneros as Subchapter V trustee for Oasis Interiors, Inc. Mr. Cisneros will be paid an hourly fee of $600 for his services as Subchapter V trustee while the trustee administrator will be compensated at $200 per hour. In addition, the Subchapter V trustee will receive reimbursement for work-related expenses incurred. Mr. Cisneros declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Arturo Cisneros 3403 Tenth Street, Suite 714 Riverside, CA 92501 Phone: (951) 682-9705/(951) 682-9707 Email: Arturo@mclaw.org About Oasis Interiors Inc. Oasis Interiors, Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-12223) on August 11, 2025, with $100,001 to $500,000 in assets and $1,000,001 to $10 million in liabilities. Judge Mark D. Houle presides over the case. Kevin Tang, Esq. at Tang & Associates represents the Debtor as legal counsel. OASIS INTERIORS: Section 341(a) Meeting of Creditors on September 4 ------------------------------------------------------------------- On August 11, 2025, Oasis Interiors Inc. filed Chapter 11 protection in the Central District of California. According to court filing, the Debtor reports $2,413,292 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on September 4, 2025 at 09:30 AM at UST-SA2, TELEPHONIC MEETING. CONFERENCE LINE:1-888-330-1716, PARTICIPANT CODE:5453743. About Oasis Interiors Inc. Oasis Interiors Inc., doing business as North County Blinds, is a family-owned retailer and installer of window treatments and interior soft furnishings based in Encinitas, California, serving customers across San Diego County. The Company provides in-home design consultations and installs Hunter Douglas window treatments (including Silhouette, Pirouette, Duette and Vignette lines) and also offers commercial blinds and shades, custom window cornices and custom bedding. Oasis Interiors Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-12223) on August 11, 2025. In its petition, the Debtor reports total assets of $284,776 and total liabilities of $2,413,292. Honorable Bankruptcy Judge Mark D. Houle handles the case. The Debtor is represented by Kevin Tang, Esq. at TANG & ASSOCIATES. ODM TRUCK: Gets Extension to Access Cash Collateral --------------------------------------------------- ODM Truck, Inc. received second interim approval from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to use cash collateral to pay its operating expenses. The second interim order authorized the Debtor to use cash collateral, including cash, deposit accounts, accounts receivable and business proceeds pending a further hearing to be conducted on September 9. The Debtor's budget projects total operational expenses of $472,448.28 for the period from July to September. As adequate protection, Synovus Bank and merchant cash advance lenders will be granted replacement liens on assets similar to their pre-bankruptcy collateral, with the same validity, priority and extent as their pre-bankruptcy lien. In addition, the Debtor was authorized to pay $5,000 to Synovus Bank this month and on September 1, and $5,000 to LCF Group, Inc., with such authorization retroactive to July 29. The Debtor was ordered to maintain insurance coverage for the collateral in accordance with its obligations under the loan and security agreements with secured creditors. 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, OÃ¢â‚¬â„¢Neill & Mullis, P.A. 101 East Kennedy Boulevard, Suite 2700 Tampa, FL 33602 Tel: (813) 223-7474 Fax: (813) 229-6553 lfernandez@trenam.com ORIGINAL EGGS: Hires Calaiaro Valencik as Counsel ------------------------------------------------- The Original Eggs-R-Us, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Pennsylvania to employ Calaiaro Valencik as counsel. The firm will provide these services: a. prepare bankruptcy petition and attendance at the Initial Debtor Interview and 341 Meeting of Creditors; b. represent the Debtor in relation to negotiating an agreement on cash collateral; c. represent the Debtor in relation to acceptance or rejection of executory contracts; d. advise Debtor with regard to its rights and obligations during the chapter 11 case; e. represent the Debtor in relation to any motions to convert or dismiss this Chapter 11; f. represent the Debtor in relation to any motions for relief from stay filed by any creditors; g. prepare the Chapter 11 Plan and Disclosure Statement, including attending confirmation hearings; h. prepare any objection to claims in the Chapter 11; and i. otherwise, represent the Debtor in general. The firm will be paid at these rates: Donald R. Calaiaro, Attorney/Partner $475 per hour David Z. Valencik, Attorney/Partner $395 per hour Andrew K. Pratt, Attorney/Partner $335 per hour Daniel R. White, Attorney/Partner $350 per hour Paralegals, Paralegal $125 per hour The firm received from the Debtor pre-petition fees of $3,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Donald R. Calaiaro, Esq., a partner at Calaiaro Valencik, 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: Donald R. Calaiaro, Esq. Calaiaro Valencik 555 Grant Street, Suite 300 Pittsburgh, PA 15219 Tel: (412) 232-0930 Fax: (412) 232-3858 Email: dvalencik@c-vlaw.com About The Original Eggs-R-Us, LLC The Original Eggs-R-Us LLC is a Pittsburgh-based restaurant likely specializing in breakfast and egg dishes. The Original Eggs-R-Us LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-21914) on July 23, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $100,000 and $500,000. The Debtor is represented by Calaiaro Valencik, Esq. PARTIDA HOLDINGS OF FAYETTEVILLE: Court OKs Trustee Appointment --------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Oklahoma approved the appointment of Sam Heigle, a director at Turnaround Professionals, LLC, as Chapter 11 trustee for Partida Holdings of Fayetteville, LLC. Mr. Heigle was appointed on August 11 by U.S. Trustee Ilene Lashinsky, the Justice Department's bankruptcy watchdog overseeing the company's Chapter 11 case. The appointment followed an August 7 court order granting the motion filed by creditor Generator Supercenter Franchising, LLC to appoint an independent trustee to take over Partida's bankruptcy case. In its motion, Generator Supercenter Franchising raised concern over alleged unauthorized withdrawals from Partida's debtor-in-possession accounts according to information provided by the U.S. Trustee after consultation with BancFirst, which holds the company's accounts. This concern, the creditor said, warrants the appointment of an independent trustee. Counsel for Generator Supercenter Franchising: Larry G. Ball, Esq. Hall, Estill, Hardwick, Gable, Golden & Nelson, P.C. 100 North Broadway, Suite 2900 Oklahoma City, OK 73102 Telephone (405) 553-2828 Facsimile (405) 553-2855 Email: lball@hallestill.com About Partida Holdings of Fayettville Partida Holdings of Fayettville, LLC sells and services generators under a franchise agreement with Generator Supercenter Franchising, LLC. The Debtor filed Chapter 11 petition (Bankr. W.D. Okla. Case No. 25-11045) on April 10, 2025, listing up to $50,000 in assets and up to $10 million in liabilities. Austin Partida, chief executive officer, signed the petition. Judge Sarah A. Hall oversees the case. Amanda R. Blackwood, Esq., at Blackwood Law Firm, PLLC, represents the Debtor as bankruptcy counsel. PARTIDA HOLDINGS OF LITTLE ROCK: Court OKs Trustee Appointment -------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Oklahoma approved the appointment of Sam Heigle, a director at Turnaround Professionals, LLC, as Chapter 11 trustee for Partida Holdings of Little Rock, LLC. Mr. Heigle was appointed on August 11 by U.S. Trustee Ilene Lashinsky, the Justice Department's bankruptcy watchdog overseeing the company's Chapter 11 case. The appointment followed an August 7 court order granting the motion filed by creditor Generator Supercenter Franchising, LLC to appoint an independent trustee to take over Partida's bankruptcy case. In its motion, Generator Supercenter Franchising raised concern over alleged unauthorized withdrawals from Partida's debtor-in-possession accounts according to information provided by the U.S. Trustee after consultation with BancFirst, which holds the company's accounts. This concern, the creditor said, warrants the appointment of an independent trustee. Counsel for Generator Supercenter Franchising: Larry G. Ball, Esq. Hall, Estill, Hardwick, Gable, Golden & Nelson, P.C. 100 North Broadway, Suite 2900 Oklahoma City, OK 73102 Telephone (405) 553-2828 Facsimile (405) 553-2855 Email: lball@hallestill.com About Partida Holdings of Little Rock Partida Holdings of Little Rock, LLC sells and services generators under a franchise agreement with Generator Supercenter Franchising, LLC. Partida Holdings of Little Rock filed Chapter 11 petition (Bankr. W.D. Okla. Case No. 25-11041) on April 10, 2025, listing up to $50,000 in assets and up to $10 million in liabilities. Austin Partida, chief executive officer, signed the petition. Judge Sarah A. Hall oversees the case. Ron D. Brown, Esq., at Brown Law Firm, PC represents the Debtor as bankruptcy counsel. PARTIDA HOLDINGS OF TULSA: Court OKs Chapter 11 Trustee Appointment ------------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Oklahoma approved the appointment of Sam Heigle, a director at Turnaround Professionals, LLC, as Chapter 11 trustee for Partida Holdings of Tulsa, LLC. Mr. Heigle was appointed on August 11 by U.S. Trustee Ilene Lashinsky, the Justice Department's bankruptcy watchdog overseeing the company's Chapter 11 case. The appointment followed an August 7 court order granting the motion filed by creditor Generator Supercenter Franchising, LLC to appoint an independent trustee to take over Partida's bankruptcy case. In its motion, Generator Supercenter Franchising raised concern over alleged unauthorized withdrawals from Partida's debtor-in-possession accounts according to information provided by the U.S. Trustee after consultation with BancFirst, which holds the company's accounts. This concern, the creditor said, warrants the appointment of an independent trustee. Counsel for Generator Supercenter Franchising: Larry G. Ball, Esq. Hall, Estill, Hardwick, Gable, Golden & Nelson, P.C. 100 North Broadway, Suite 2900 Oklahoma City, OK 73102 Telephone (405) 553-2828 Facsimile (405) 553-2855 Email: lball@hallestill.com About Partida Holdings of Tulsa Partida Holdings of Tulsa, LLC sells and services generators under a franchise agreement with Generator Supercenter Franchising, LLC. The Debtor filed Chapter 11 petition (Bankr. W.D. Okla. Case No. 25-11038) on April 10, 2025, listing up to $50,000 in assets and up to $10 million in liabilities. Austin Partida, chief executive officer, signed the petition. Judge Sarah A. Hall oversees the case. Amanda R. Blackwood, Esq., at Blackwood Law Firm, PLLC, represents the Debtor as bankruptcy counsel. PENNYMAC FINANCIAL: Moody's Rates New $650MM Unsecured Notes 'Ba3' ------------------------------------------------------------------ Moody's Ratings has assigned a Ba3 rating to PennyMac Financial Services, Inc.'s (PFSI) proposed $650 million backed long-term senior unsecured notes maturing in 2034. This rating action does not affect PFSI's Ba2 corporate family rating or its existing Ba3 backed senior unsecured rating. The issuer's outlook is stable. The proposed notes will be guaranteed on an unsecured basis by each of PFSI's existing and future domestic subsidiaries, including Private National Mortgage Acceptance Co, LLC (Private National) and PennyMac Loan Services, LLC, subject to certain exclusions. The company intends to use the net proceeds from the offering to partially pay down its secured mortgage servicing rights (MSR) facilities. RATINGS RATIONALE Moody's views the proposed transaction as a modest credit positive. Although overall corporate leverage will remain at current levels, the transaction will reduce the company's reliance on secured MSR financing, increasing financial flexibility. PFSI's Ba2 CFR reflects the company's solid track record of operational performance. Over the last several years, the company has further strengthened its franchise position in the correspondent origination channel, which continues to support its above-average profitability, particularly during periods of market stress, versus rated non-bank residential mortgage companies. In addition, PFSI's capitalization is consistently strong and its funding and liquidity profile is adequate for its current rating level. PFSI's Ba3 backed long-term senior unsecured debt rating is based on the company's Ba2 CFR and reflects the ranking of senior unsecured obligations in PFSI's capital structure. PFSI's stable outlook reflects Moody's expectations that the company will be able to maintain solid profitability, minimize operational risk, and maintain solid capitalization while continuing to strengthen its franchise position and maintain its liquidity profile over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The rating could be upgraded if PFSI strengthens its solid financial performance, whereby Moody's expects that long-term through-the-cycle profitability as measured by net income to average managed assets will average at least 4.0%. In addition, the company would need to maintain strong capitalization as measured by TCE to adjusted TMA above 20.0%, continue to strengthen its franchise position, particularly in the broker and direct-to-consumer origination channels, and further improve its funding structure by continuing to reduce its reliance on secured corporate debt. Moody's could upgrade PFSI's backed senior unsecured rating and Private National's long-term issuer rating if the company maintains its ratio of secured corporate debt to total corporate debt to below 25%. The rating could be downgraded if PFSI's financial performance deteriorates; for example, if Moody's expects net income to average managed assets to remain below 3.0%, or if leverage increases such that PFSI's TCE to adjusted TMA declines and remains below 17.5%. In addition, PFSI's senior unsecured bond rating and Private National's long-term issuer rating could be downgraded if the ratio of secured debt to total corporate debt increases and remains above 65%; under this scenario, Moody's would expect the loss on senior unsecured obligations in the event of default to be materially higher. The principal methodology used in this rating was Finance Companies published in July 2024. PLATE RESTAURANT GROUP: Gets Interim OK to Use Cash Collateral -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Kansas granted Plate Restaurant Group LLC's motion to use cash collateral on an interim basis, retroactive to July 18. The Debtor was authorized to use cash collateral to pay ordinary business expenses in accordance with a budget. Deviations of up to 10% per line item or overall are permitted. This interim authority remains effective through September unless changed by the court. Community America Credit Union and other creditors whose cash collateral is used post-petition will be granted replacement liens on the Debtor's post-petition assets, matching their pre-bankruptcy priorities. The replacement liens do not apply to avoidance actions and assets not previously secured. As further protection, Community America Credit Union will receive a monthly payment of $9,000. A final cash collateral hearing is set for September 11. About Plate Restaurant Group LLC Plate Restaurant Group LLC is a Kansas City-based restaurant business. Plate Restaurant Group LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Kan. Case No. 25-20996) on July 18, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Dale L. Somers handles the case. The Debtor is represented by: George J. Thomas Phillips & Thomas, LLC Tel: 913-385-9900 Email: geojthomas@gmail.com PLATE RESTAURANT LEAWOOD: Gets Interim OK to Use Cash Collateral ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Kansas granted Plate Restaurant Leawood, LLC interim approval to use cash collateral retroactively to July 18. The interim order authorized the Debtor to use cash collateral to pay ordinary business expenses in accordance with a budget. Deviations of up to 10% per line item or overall are permitted. Community America Credit Union and other creditors whose cash collateral is used post-petition will be granted replacement liens on the Debtor's post-petition assets, matching their pre-bankruptcy priorities. The replacement liens do not apply to avoidance actions and assets not previously secured. In addition, Community America Credit Union, the Debtor's first priority lienholder, will receive a monthly payment of $9,000 as adequate protection. This interim authority remains effective through September unless changed by the court. A final cash collateral hearing is set for September 11. About Plate Restaurant Leawood, LLC Plate Restaurant Leawood, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Kan. Case No. 25-20997) on July 18, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Dale L. Somers handles the case. The Debtor is represented by: George J. Thomas Phillips & Thomas, LLC Tel: 913-385-9900 Email: geojthomas@gmail.com PLATINUM BEAUTY: Hires Rountree Leitman Klein as Legal Counsel -------------------------------------------------------------- Platinum Beauty Bar and Spa, LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Georgia to hire Rountree, Leitman, Klein & Geer, LLC to serve as its legal counsel. The firm will provide these services: (a) give the Debtor legal advice with respect to its powers and duties as Debtor-in-Possession in the management of its property; (b) prepare on behalf of the Debtor as Debtor-in-Possession necessary schedules, applications, motions, answers, orders, reports and other legal matters; (c) assist in examination of the claims of creditors; (d) assist with formulation and preparation of the disclosure statement and plan of reorganization and with the confirmation and consummation thereof; and (e) perform all other legal services for the Debtor as Debtor-in-Possession that may be necessary herein. The firm's hourly rates range from: $300 to $595 for attorneys $150 to $290 for paralegals, and $175 for law clerks Rountree, Leitman, Klein & Geer, LLC received a pre-petition retainer of $30,000, from which $3,479 in pre-petition fees and a $1,738 Chapter 11 filing fee were paid, leaving a balance of $26,521 as a security retainer. Rountree, Leitman, Klein & Geer, 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: William A. Rountree, Esq. ROUNTREE, LEITMAN, KLEIN & GEER, LLC Century I Plaza 2987 Clairmont Road, Suite 350 Atlanta, GA 30329 Telephone: (404) 584-1238 E-mail: wrountree@rlkglaw.com About Platinum Beauty Bar and Spa LLC Platinum Beauty Bar and Spa, LLC is a full-service spa in Conyers, Georgia. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Ga. Case No. 23-51222) on September 1, 2023. In the petition signed by Rebecca Davis, sole member, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Austin E. Carter oversees the case. William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC, represents the Debtor as legal counsel. Citizens Bank, as lender, is represented by John A. Thomson, Jr., Esq., at Adams and Reese LLP. POWER REIT: Swings to $321K Net Income in Q2 From $19.3M Loss YoY ----------------------------------------------------------------- Power REIT filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net income of $320,913 during the three months ended June 30, 2025 compared to a net loss of $19,145,169 for the three months ended June 30, 2024. Revenue during the three months ended June 30, 2025 and 2024 was $506,783 and $519,349, respectively. Net loss attributable to common shares during the six months ended June 30, 2025 and 2024 was 1,418,613 and $21,548,581, respectively, a decrease of $20,129,968. Revenue during the six months ended June 30, 2025 and 2024 was $992,577 and $1,053,961, respectively. The Company had an accumulated deficit of $50,780,862 as of June 30, 2025. As of June 30, 2025, the Company had $27,881,636 in total assets, $21,934,533 in total liabilities, and $5,947,103 in total equity. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/yey5c6vs About Power REIT Old Bethpage, N.Y.-based Power REIT is a Maryland-domiciled, internally-managed real estate investment trust that owns a portfolio of real estate assets related to transportation, energy infrastructure, and Controlled Environment Agriculture in the United States. Houston, Texas-based MaloneBailey, LLP, the Company's auditor since 2015, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has suffered recurring losses, reduced revenues, and increase of expenses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. PRAESUM HEALTHCARE: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Lead Debtor: Praesum Healthcare Services, LLC 2328 10th Ave N, Suite 300-302 Lake Worth, FL 33461 Business Description: Praesum Healthcare Services LLC operates a network of behavioral health and addiction treatment facilities across the United States, offering a full continuum of care that includes medical detoxification, residential rehabilitation, and outpatient counseling. The Company's brands include Sunrise Detox, which provides medically supervised detox services, Evolve Recovery Center, which delivers residential treatment programs, and The Counseling Center, which offers outpatient and intensive outpatient therapy, with locations in multiple states including New Jersey, New York, Massachusetts, Georgia, and Florida. Founded in 2004, Praesum Healthcare manages more than two dozen centers under these brands, serving individuals with substance use disorders and co-occurring mental health conditions. Chapter 11 Petition Date: August 13, 2025 Court: United States Bankruptcy Court Southern District of Florida Twenty-eight affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Praesum Healthcare Services, LLC (Lead Case) 25-19335 Evolve Recovery Center, LLC 25-19336 The Counseling Center at Fair Lawn, LLC 25-19337 The Counseling Center at Freehold, LLC 25-19339 Evolve Recovery Center at Millbury LLC 25-19340 The Counseling Center at Middlesex, LLC 25-19341 The Counseling Center at Robbinsville, LLC 25-19342 Sunrise Detox Alpharetta, LLC 25-19343 The Counseling Center at Roswell, LLC 25-19344 The Counseling Center at Roxbury, LLC 25-19345 Sunrise Detox Brentwood, LLC 25-19346 The Counseling Center at the Brunswicks, LLC 25-19347 Sunrise Detox Cherry Hill, LLC 25-19348 The Counseling Center at Toms River, LLC 25-19349 The Counseling Center at West Caldwell, LLC 25-19351 The Counseling Center at Yorktown Heights, LLC 25-19352 Beacon Point Recovery Center LLC 25-19354 Sunrise Detoxification Center, LLC 25-19355 Sunrise Detox Duluth, LLC 25-19356 Sunrise Detox II, LLC 25-19357 The Counseling Center at Millbury, LLC 25-19358 Sunrise Detox III, LLC 25-19359 Sunrise Detox Millbury, LLC 25-19362 Sunrise Detox Orlando, LLC 25-19363 Sunrise Detox Toms River, LLC 25-19365 The Counseling Center at Cherry Hill, LLC 25-19366 The Counseling Center at Clark, LLC 25-19367 The Counseling Center at Duluth, LLC 25-19368 Judge: Hon. Erik P Kimball Debtors' Counsel: Bradley S. Shraiberg, Esq. SHRAIBERG PAGE PA 2385 NW Executive Center Dr Suite 300 Boca Raton, FL 33431 Tel: 561-443-0800 Email: bss@slp.law Lead Debtor's Estimated Assets: $50 million to $100 million Lead Debtor's Estimated Liabilities: $10 million to $50 million The petitions were signed by Timothy Doran as manager. A full-text copy of the Lead Debtor's petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/WTM6STA/Praesum_Healthcare_Services_LLC__flsbke-25-19335__0001.0.pdf?mcid=tGE4TAMA List of Debtors' 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. AFCO $373,905 Attn: Payment Processing Rosemont, IL 60018-5187 2. Amerisource Bergen $1,275,687 Drug Corp PO Box 5188 New York, NY 10087-5188 3. City National Bank $20,570,882 of Florida c/o Alan M. Grunspan Carlton Fields, PA 700 NW 1st Ave, Ste 1200 Miami, FL 33136 4. Ensora Health $158,165 PO Box 748746 Atlanta, GA 30384-8746 5. Flint Analytics LLC $209,107 38 W. Main Street Carmel, IN 46032 6. Florence Doran $450,000 7. Google $527,400 1600 Amphitheatre Pkwy Mountain View, CA 94043 8. Navitas Credit Corp $114,775 PO Box 935204 Atlanta, GA 31193-5204 9. Paul Dasilva Filipe $1,500,000 10. Plutus Health, Inc $332,022 PO Box 733722 Dallas, TX 75373 11. Salesforce.com Inc $182,641 PO Box 203141 Dallas, TX 75320-3141 12. Strocko Consulting LLC $130,809 212 Warren St New York, NY 10282 13. TenEleven Group, LLC $522,289 Attn: Accounts Receivable Birmingham, AL 35202 14. The Holder Group $579,607 247 Gregory Road, PO Box 662 Franklin Lakes, NJ 07417 15. Toms River Development, LLC $597,100 2328 10th Ave N, Suite 302 Lake Worth, FL 33461 16. Trusted Tech Team LLC $97,815 5171 California Av Ste 250 Irvine, CA 92617 17. Uline $522,289 ATTN: Accounts Receivable Chicago, IL 60680-1741 18. UMR $931,271 PO Box 8022 Wausau, WI 54402 19. US Foods Inc $119,771 PO Box 830237 Philadelphia, PA 19182 20. ZipRecruiter, Inc. $522,289 Attn: Accounts Receivable Santa Monica, CA 90401 PRECISION MEDICINE: Moody's Alters Outlook on 'B2' CFR to Negative ------------------------------------------------------------------ Moody's Ratings affirmed Precision Medicine Group, LLC's ("PMG") B2 corporate family rating and B2-PD probability of default rating. Concurrently, Moody's assigned a B2 rating to PMG's proposed $800 million backed senior secured first lien term loan. Additionally, Moody's affirmed the rating of PMG's $85 million backed senior secured first lien revolving credit facility (comprised of $80.75 million expiring in 2028, and $4.25 million expiring in 2025) at B2. At the same time, Moody's revised PMG's outlook to negative from stable. The B2 ratings on the existing $650 million backed senior secured first lien term loan and $75 million backed senior secured first lien delayed draw term loan, both maturing in 2027, remain unchanged and will be withdrawn once the refinancing is completed. Proceeds from the new $800 million first lien term loan along with $104 million of cash from the balance sheet will be used to fully repay the company's existing $693 million first lien term loans and fund a $211 million shareholder distribution. The outlook revision to negative reflects the significant increase in debt and interest expense, along with a material reduction in cash, as a result of the partially debt funded $211 million shareholder distribution. Pro forma for the transaction Moody's adjusted leverage will increases to approximately 6.6x. Moody's expects leverage to remain elevated, with modest decline, but remain above the downgrade trigger in the next 12-18 months. Moody's believes growth in EBITDA along with ongoing cost saving initiatives will allow for some deleveraging. RATINGS RATIONALE PMG's rating is constrained by its modest size relative to peers with around $677 million in revenue and its high financial leverage. Moody's estimates debt/EBITDA was about 6.6x for the twelve months ended March 31, 2025, pro forma for the refinancing and dividend recapitalization transaction. Moody's expects financial leverage will remain high in the 6.0x to 7.0x range, following partially debt-funded $211 million shareholder distribution. PMG rating is also constrained by its high customer concentration in the fragmented and competitive market. The rating also reflects the risks inherent in the CRO industry, which is highly competitive and is subject to cancellation risk. PMG's rating is supported by its niche service offering, focused on earlier-stage clinical development that uses biomarkers. Business diversity is good with solid demand drivers in both contract research and commercialization services. CROs have good long-term growth prospects as the biopharmaceutical industry continues to outsource R&D functions and innovation in personalized medicine continues to expand. Moody's expects PMG to maintain good liquidity over the next 12 months. Pro forma for the refinancing and dividend recapitalization transaction, the company will have approximately $90 million of cash on hand. Moody's expects that, despite reduced EBITDA following the Project Farma divestiture and increase in interest expense, PMG will generate positive free cash flow in the next 12 months, which excludes mandatory first lien term loan amortization. PMG's liquidity will be constrained by contingent earnout payments for multiple acquisitions completed over the last few years. PMG liquidity is bolstered by access to an $85 million revolving credit facility (with $80.75 million expiring in 2028, and the remainder expiring in 2025) which will be undrawn at the close of the transaction. Moody's anticipates sufficient cushion under the springing leverage covenant on the revolving credit facility, if triggered. The first and second lien lenders will have a pledge on all of the company's assets, restricting sources of alternate liquidity. Marketing terms for the new credit facilities (final terms may differ materially) include the following: Incremental pari passu capacity up to the greater of $140.0 million and 100% of consolidated EBITDA, plus unlimited amounts subject to the greater of 5.75x first lien net leverage ratio and leverage neutral incurrence (junior capacity through the second lien up to either 7.0x secured net leverage ratio or 2x interest coverage ratio or pro forma ratio neutrality). There is an inside maturity sublimit up to the greater of $140 million and 100% of consolidated EBITDA, plus incremental debt incurred with available capacity under the general debt basket, or for financing an acquisition or a permitted investment, and debt constituting non-term B loans. There are no "blocker" provisions which prohibit the transfer of specified assets to unrestricted subsidiaries. There are no protective provisions restricting an up-tiering transaction. Amounts up to 200% of unused capacity from the builder basket and contributions, plus 100% from the restricted payments covenant (including dividends and prepayment of material subordinated debt) may be reallocated to incur debt, liens, investments or prepay material subordinated debt. Debt up to the greater of $105 million and 100% of LTM EBITDA can be incurred as Designated Alternative Security Debt, guaranteed by non-loan parties or secured by non-collateral. The first lien senior secured credit facilities including a $85 million revolving credit facility (with $80.75 million expiring in 2028, and the remainder expiring in 2025), and proposed $800 million senior secured first lien term loan are rated B2, same as the CFR, as the instruments make up preponderance of the debt in PMG's capital structure. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if PMG's backlog and new business awards are weak on a sustained basis, resulting in material decline in operating margins and profitability. Aggressive financial policies, including additional debt-financed shareholder distributions or acquisitions such that debt/EBITDA is sustained above 6.0x, could also result in a downgrade. Additionally, weakening in liquidity, partially reflected in sustained negative free cash flow could support a downgrade. While an upgrade in the near-term is unlikely, the ratings could be upgraded if PMG demonstrates consistent profitable growth along with a meaningful increase in scale. In addition, the ratings could be upgraded if the company manages its internal strategic initiatives and external growth opportunities (i.e., acquisitions), under conservative financial policies. Quantitatively, debt/EBITDA sustained below 4.5 times, along with strong liquidity would support an upgrade. Headquartered in Bethesda, Maryland, Precision Medicine Group, LLC is a biopharmaceutical services company providing clinical research and commercialization services for the pharmaceutical and biotechnology industries. Revenues were approximately $677 million based on the twelve months ended March 31, 2025 and pro forma for the Project Farma divestiture. PMG is majority owned by private equity sponsor Blackstone. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. PREMIER DATACOM: Hires Graves Dougherty Hearon as Special Counsel ----------------------------------------------------------------- Premier Datacom, Inc seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to employ Graves Dougherty Hearon & Moody, PC as special counsel. The Debtor needs the firm's legal assistance in connection with legal issues with the general contractor, Novo Construction Inc., to perform work at the property located at 4655 Mueller Blvd, Austin, TX 78723. The firm will be paid at these rates: Brian Cummings $525 per hour Attorneys $225 per hour to $725 per hour Legal Assistants $145 to 250 per hour The firm will be paid a retainer in the amount of $15,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Brian Cumings, Esq., a partner at Graves Dougherty Hearon & Moody, PC, 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: Ryan Willis, Esq. Graves Dougherty Hearon & Moody, P.C. 401 Congress Avenue, Suite 2200 Austin, TX 78701 Tel: (512) 480-5626 Fax: (512) 536-9926 About Premier Datacom, Inc. Premier Datacom, Inc. is a technology construction services company specializing in low voltage cabling systems and components, data transmission, and security systems. Premier Datacom sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-10097) on January 24, 2025. In the petition signed by Glenn Ryan Willis, president, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Shad Robinson oversees the case. Jennifer F. Wertz, Esq., at Jackson Walker LLP represents the Debtor as counsel. PRIME CAPITAL: Trustee Hires Saratoga Automobile as Auctioneer -------------------------------------------------------------- Yann Geron, the Trustee of Prime Capital Ventures, LLC, seeks approval from the U.S. Bankruptcy Court for the Northern District of New York to employ Saratoga Automobile Museum a/k/a Saratoga Motorcar Auction as auctioneer. The firm will auction and sell these Debtor's motor vehicles: Year Make Model VIN 2020 Lamborghini Aventador ZHWUM6ZD9LLA09436 2009 Mercedes Benz SL65 WDBSK79F79F158279 2014 Mercedes Benz SLS DRJ7HA7EA010865 2015 Ferrari 458 ZFF75VFA3F0209725 The firm will be paid at buyer's premium of 10 percent, plus reimbursement of actual and necessary expenses, with payment to be automatically deducted from the auction sale proceeds. Megan A. Hennessey, a partner at Saratoga Automobile Museum, 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: Megan A. Hennessey Saratoga Automobile Museum 110 Avenue of the Pines Saratoga Springs, NY 12866 Telephone: (518) 401-5185 Email: Megan@saratogaautomuseum.org About Prime Capital Ventures, LLC Prime Capital owns a residential property located at 600 Linkhorn Drive, Virginia Beach, VA 23451, valued at $4.02 million. Prime Capital Ventures, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D.N.Y. Case No. 24-11029) on Sept. 16, 2024, listing $6,452,230 in assets and $244,529,327 in liabilities. The petition was signed by Christian H. Dribusch as manager. Christian H. Dribusch, Esq., at Dribusch Law Firm, is the Debtor's counsel. Yann Geron is appointed as trustee in this Chapter 11 case. He tapped Geron Legal Advisors LLC as bankruptcy counsel and Klestadt Winters Jureller Southard & Stevens LLP as special litigation counsel. PRIME HEALTHCARE: Fitch Hikes Rating on 2029 Secured Notes to 'B+' ------------------------------------------------------------------ Fitch Ratings has upgraded Prime Healthcare Services, Inc.'s (PHSI) senior secured notes due 2029 to 'B+' from 'B' to reflect an increase in its Recovery Rating to 'RR3' from 'RR4', after Fitch's correction of an input in its recovery tool, increasing its liquidation value estimate. Additionally, PHSI's Long-Term Issuer Default Rating (IDR) has been affirmed at 'B' with a Stable Outlook, and its senior secured asset-based revolver due 2028 at 'BB'/'RR1'. Strong same-facility EBITDAR growth at PHSI's recently acquired Chicago hospitals have reduced EBITDAR leverage to levels consistent with the 'B' IDR. Performance improvements at the Chicago hospitals, positive trends in the base business and rising 2025 California Medicaid supplemental payments should drive sufficient EBITDAR growth to reduce leverage below the positive sensitivity for the 'B' IDR. It is unclear, however, whether this lower leverage would be sustained, as PHSI is already within its target leverage range and could pursue leveraging M&A. Also notable is PHSI's expectation that downside risk to EBITDA from the One Big Beautiful Bill Act is manageable despite its high exposure to Medicaid supplemental payments. Key Rating Drivers Robust Growth Boosting Margins: Margins improved to levels consistent with the 'B' IDR in 2024, with revenue up 7%, driven by rising Medicaid directed payments, improved collections and increases in patient acuity and rates (same-facility volumes were stable). Fitch-defined EBITDAR margin improved 220bp to 11.4%, with adept management of SW&B and supplies expense driving EBITDAR up about 30% to about $500 million and EBITDAR leverage down 1.5x, to 5.5x at YE 2024. Fitch expects further improvement in EBITDAR margin, to 11.7% in 2025 and 12.7% in 2026. At the just-acquired Chicago hospitals, PHSI is adjusting the service mix to boost productivity, reduce overheads and bring major support functions in-house. The wind down of costly transition service agreements and migration to PHSI's Epic EMR platform will also boost their EBITDAR contribution, which may be about $70 million in year one. Still, with EBITDA margin in the low-to-mid single-digits, this is dilutive to margins. Deleveraging Set to Continue: Reductions in labor costs, including temporary labor, are still driving EBITDAR growth, alongside expected reductions in overhead and, over time, professional services expense. Supporting the 'B' IDR and including improvement at its new Chicago hospitals, Fitch forecasts EBITDAR growth sufficient to deleverage below 4.0x by YE25 and further by YE26, below its positive rating sensitivity and a fraction of its double-digit leverage at YE22. Positive ratings momentum would be likely if PHSI's financial policies and capital deployment plans evolve to align with sustaining Fitch-defined EBITDAR leverage below 4.0x. Increasingly Reliable FCF: Fitch expects increases in free cash flow (FCF) to temper potential Medicaid volatility in an economic downturn. FCF improved to $186 million in 2024 from slightly negative levels in 2023 and Fitch sees upside to $250 million by 2026. From these levels, PHSI should prove capable of absorbing at least moderate Medicaid shocks without burning cash. Fitch still expects higher volatility in PHSI's FCF through the cycle than its for-profit peers due to its smaller scale, higher mix of admissions from the ER and lower margins. Concentration Risk: PHSI has high concentration risk by geography, as about 60% of revenue is now generated in California and Illinois. PHSI is also concentrated by service lines, as ED care has accounted for over 80% of admissions. PHSI also has high exposure to Medicaid reimbursement, especially California's Hospital Quality Assurance Fee program, which generates over 25% of EBITDA. While PHSI expects minimal downside from recent legislation curbing such Medicaid supplemental payments due to its favorable provider tax expense offsets in reforming the Uniform Tax Rate, there is potential for further Medicaid cuts if the economy weakens. Growth via Acquisitions, Operational Improvements: PHSI has now completed two major acquisitions since 2016, and it historically acquired underperforming ED-focused hospitals and improved their results. PHSI's quality-of-care statistics and cost reductions suggest its turnaround acquisition strategy is effective, but there is execution risk. Fitch has limited visibility on how much improvements in case mix are due to appropriate billing changes than improper practices alleged in past litigation. While Fitch's ratings case assumes no M&A as PHSI integrates its Chicago acquisition, Fitch expects PHSI to remain acquisitive long-term with the financial flexibility to do so. Corporate Governance Risk: Privately held PHSI has a complex structure and concentrated ownership that can influence managerial judgment and board oversight and complicate the evaluation of the prudence of related-party transactions. PHSI has a history of litigation, paying $34 million in 2021 and $62 million in 2018 to settle U.S. False Claims Act charges, after resolving lengthy litigation with Kaiser Permanente in 2015. There is also a risk that PHSI may act to benefit its private owners upon default, reducing creditor recoveries. Peer Analysis PHSI generates lower revenue and is more geographically concentrated (with about 60% of revenue derived from California and Illinois) relative to its for-profit peers, increasing potential volatility in EBITDAR and FCF. Its hospitals rely more on admitting Medicaid patients through the ED and less on commercially insured patients. This provides some durability to revenue, but at a lower margin due to Medicaid's lower payment rates. This is also evident in PHSI's lower revenue and margins relative to the acute care operations of Universal Health Services (UHS, BB+/Stable), despite a comparable number of hospital beds. However, Fitch also expects UHS's hospitals will generate more revenue due to higher census and occupancy levels. PHSI has offset some of these risks by operating historically with leverage in the middle of the range of its publicly traded health system peers, and PHSI has been trending down within that range. UHS and Tenet Healthcare (BB-/Stable) have maintained EBITDA leverage of 2.0x-3.0x and 3.5x-4.5x, respectively, with Community Health Systems (CCC+) in the 7.5x-8.0x range. PHSI has higher group transparency and governance risks than its for-profit peers due to concentrated private ownership and extensive relationships with related parties, most notably Prime Healthcare Foundation (PHF), to which it has donated about 10 hospitals and for which it manages 18 hospitals in exchange for fees. There is some operational overlap between PHSI and PHF, but Fitch does not consider this a parent and subsidiary relationship, as the companies are independent entities. Key Assumptions - Mid-single digit organic revenue growth in 2025 and low-single digit organic revenue growth in 2026-2027 with a low-single digit decline thereafter, driven primarily by pricing and mix. Non-organic expansion includes the just completed acquisition of about $1.8 billion of revenue from six Ascension hospitals. - EBITDAR (EBITDA) margin increasing to 11.7% (9.8%) in 2025, 12.7% (10.8%) in 2026, 13.3% (11.4%) in 2027, driven by labor cost reductions, General and Administrative (G&A) savings, professional services expense and growth in state-directed payment programs in 2025. - EBITDAR (EBITDA) leverage declining to 3.7x (3.4x) at YE25, 3.1x (2.7x) at YE26, 2.6x (2.1x) at YE27. - Capex at 2.0%-2.5% of revenue, including $138 million annually in 2025-2026 and $125 million in 2027, with the decline reflecting the lapse of initial years of higher spend on the newly acquired Chicago hospitals. - Positive FCF of nearly $150 million in 2025, $250 million in 2026, and over $300 million in 2027 (with all FCF figures include $50 million-$65 million of annual dividends paid to affiliates to cover tax obligations). - For the revolver, SOFR is assumed at 4.75% for 2025, 4.25% for 2026 and 3.75% for 2027. Fitch further assumes that PHSI pays down its revolver to zero by YE26, repays $100 million of unsecured related party notes by YE25 and the balance of such notes by YE27. Recovery Analysis The 'BB+'/'RR1' rating on the asset-based revolver and the 'B+'/'RR3' rating on the senior secured notes reflect Fitch's estimated recoveries in a liquidation and the resulting notching of instrument ratings from the 'B' IDR, all based on a bespoke recovery analysis. While Fitch previously assumed PHSI would be reorganized in bankruptcy as a going concern, rather than liquidated, Fitch now estimates that the value distributable to claims is maximized in a liquidation. This reflects Fitch's correction of an input in its liquidation value estimate, due to which Fitch now calculates liquidation value exceeding that realizable as a going concern, with value sufficient to warrant a higher Recovery Rating at 'RR3', up from 'RR4'. Using its liquidation approach, Fitch estimates that the collateral securing the revolver, senior secured notes, related-party unsecured notes and certain other debt could be valued at $1.5 billion, calculated by summing the discounted values of PHSI's accounts receivable, inventory and net Property, Plant & Equipment (cash is excluded as Fitch assumes full depletion in the period preceding a liquidation). In calculating value available to creditors, Fitch has assumed its typical 80% and 50% advance rates for accounts receivable and inventory, respectively, and the 50% standard advance rate for net property, plant and equipment (PP&E). Fitch further deducts the estimated value of the PP&E asset related PHSI's finance lease liability and the estimated value of the asset related to the sale/leaseback liability. The total of $1.5 billion is reduced by 10% to cover assumed administrative claims in a restructuring, netting distributable proceeds of $1.3 billion. In applying the distributable proceeds, Fitch assumes $480 million drawn on PHSI's $600 million revolver (80% of the total), $21 million of other priority debt and senior secured notes of $1.5 billion. While Fitch does not assume major collateral leakage through contributions or restricted payments ahead of a restructuring, collateral leakage is a risk. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deteriorating operating results, with Fitch expecting EBITDA leverage to be sustained above 5.0x - Fitch expecting negative FCF sustained for an extended period - Evidence of weak corporate governance independently warranting lower ratings under Fitch's criteria Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improving operating results, with Fitch expecting EBITDA leverage to be sustained below 4.0x - PHSI diversifying service mix to better align its mix of admissions from the ED with industry norms - Evidence of improved corporate governance to levels that no longer adversely affect the ratings Liquidity and Debt Structure As of March 31, 2025, liquidity exceeded $700 million, including $394 million of cash on hand and $322 million in availability under its $600 million asset-backed revolver. Fitch also expects PHSI to generate FCF of about $150 million in 2025 and $250 million-$350 million annually in 2026-2028. As of March 31, 2025, debt included $247 million drawn on a $600 million asset-backed revolver due 2028, $1.5 billion of senior secured notes due 2029, $324 million of unsecured related-party notes due 2029 and $21 million of other structurally senior debt. Issuer Profile PHSI operated 33 urban acute care hospitals with over 7,500 beds across 10 states as of June 30, 2025. It also manages 18 hospitals owned by PHF, a related-party charity established by PHSI's founder. Summary of Financial Adjustments Fitch assesses PHSI's leverage on a lease-adjusted basis. While Fitch previously capitalized rent with an 8.0x multiple, debt is now adjusted with lease liabilities measured at their balance sheet values. Its EBITDA(R) forecasts also assume that The Centers for Medicare and Medicaid Services (CMS) approves California Medicaid supplemental payments, contributing an estimated $150 million to EBITDA(R) in 2025 (and beyond), the bi-annual submission for which is pending with a retroactive decision expected in 2H25. 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 Prime Healthcare Services, Inc. has an ESG Relevance Score of '4' for Group Structure due to {DESCRIPTION OF ISSUE/RATIONALE}, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. Prime Healthcare Services, Inc. has an ESG Relevance Score of '4' for Governance Structure due to {DESCRIPTION OF ISSUE/RATIONALE}, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. Prime Healthcare Services, Inc. has an ESG Relevance Score of '4' for Exposure to Social Impacts due to {DESCRIPTION OF ISSUE/RATIONALE}, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Prime Healthcare Services, Inc. LT IDR B Affirmed B senior secured LT B+ Upgrade RR3 B senior secured LT BB Affirmed RR1 BB PROJECT RUBY: $200MM Term Loan Add-on No Impact on Moody's 'B3' CFR ------------------------------------------------------------------- Moody's Ratings said that Project Ruby Ultimate Parent Corp.'s (dba WellSky) credit ratings and stable outlook are not affected by the proposed $200 million fungible add-on to its senior secured first lien term loan. WellSky's ratings include a B3 Corporate Family Rating a B3-PD Probability of Default Rating, a B2 rating on the upsized outstanding $1,988 million senior secured first lien term loan, and a B2 rating on the undrawn $110 million senior secured first lien revolving credit facility. The outlook remains unchanged at stable. Proceeds from the $200 million senior secured first lien term loan fungible add-on due March 2028 will be used to fund a dividend distribution to its shareholders and pay related transaction fees. The transaction is credit negative because it will increase the company's financial leverage, raise interest expense and weaken free cash flow generation. WellSky's adjusted debt to EBITDA will increase to 8.1x as of LTM period ending March 2025 (Q3 FY 2025) pro forma for the transaction from 7.4x prior to the transaction. All ratings are subject to the execution of the transaction as currently proposed and Moody's reviews of final documentation. WellSky's B3 CFR reflects aggressive financial policies characterized by frequent acquisitions, ongoing dividends, and a substantial debt load that has led to Moody's adjusted debt to EBITDA in the 8x range. The recent dividend recapitalization demonstrates the company's focus on prioritizing shareholder returns. Absent additional debt-funded transactions, financial leverage is expected to decline to the mid-7x range over the next 12-18 months, supported by expectations of revenue growth in the high single-digit percent and continued solid EBITDA margins of close to 36% (inclusive of expensing capitalized software development costs). WellSky benefits from its strong position as an electronic health record (EHR) software provider in the niche non-acute care end market. The critical nature of the electronic health record systems and related products results in net retention rates above 100% and a highly recurring revenue base of about 88%. Moody's expects WellSky to maintain good liquidity over the next 12-18 months supported by a cash balance of $65 million as of March 31, 2025, and an undrawn $110 million revolver. Moody's estimates free cash flow of approximately $50 million (inclusive of about $16 million of estimated dividends), sufficient to cover about $20 million in term loan amortization. WellSky's revolver has a springing first lien net leverage covenant of 7.5x, which is triggered at 35% revolver utilization. Moody's expects that the company will maintain good cushion under this covenant over the next 12 months. The stable outlook reflects Moody's expectations that WellSky will grow its topline in the high single-digit percent, reduce Moody's adjusted debt to EBITDA to mid-7x range (inclusive of expensing capitalized software development costs) and generate positive free cash flow over the next 12-18 months. The ratings could be upgraded if WellSky's adjusted debt to EBITDA is sustained below 6.5x and free cash flow to debt is sustained in the mid single-digit percent. The ratings could be downgraded if weaker than projected operating performance or debt-funded acquisitions results in leverage that Moody's expects to be sustained above 8x, liquidity weakens or free cash flow turns negative. Headquartered in Overland Park, Kansas, Project Ruby Ultimate Parent Corp. (dba WellSky) is a provider of healthcare enterprise software and related services, primarily for the post-acute settings. Solutions focus on systems of record for customers and are used to manage care delivery, billing, scheduling, and financial and administrative workflows. The company generated revenue of approximately $838 million as of LTM period ending March 2025 (Q3 FY 2025). WellSky is controlled by private equity firms TPG Capital and Leonard Green & Partners. PUBLISHERS CLEARING: Creditors to Get Proceeds From Liquidation --------------------------------------------------------------- Publishers Clearing House LLC filed with the U.S. Bankruptcy Court for the Southern District of New York a Disclosure Statement for Plan of Liquidation dated August 8, 2025. PCH was formed as a partnership in 1953 by Harold and LuEsther T. Mertz and their daughter Joyce in the basement of their Long Island home. The company was reformed as a New York limited partnership in 1957 and then converted into a New York limited liability company in 2002. PCH was essentially a family-owned company. PCH was known across America as the sweepstakes company whose famous Prize Patrol surprised winners on their doorsteps, presenting oversized checks ranging from $10,000 to MultiMillions while TV cameras were rolling. The company awarded over half a billion dollars in prizes and evolved to offer many ways to win online and through social media and mobile access. On May 1, 2025, the Debtor filed a motion (the "Sale Motion") which sought, among other things, entry of an order pursuant to sections 105(a), 332, 363, and 365 of the Bankruptcy Code and Bankruptcy Rules 2002, 6004 and 6006 approving bidding procedures (the "Bidding Procedures") in connection with the sale (the "Sale") and potential auction (the "Auction") of the Debtor's assets free and clear of all liens, claims, encumbrances, and interests and directing the appointment of a consumer privacy ombudsman. In accordance with the Bidding Procedures Order, on June 17, 2025, the Debtor and SSG conducted an auction (the "Auction") of the Debtor's assets, and at the conclusion of the Auction, the Debtor declared ARB Interactive, Inc. or its designee (the "Purchaser") as the successful bidder and PCH Interactive, LLC as the next highest bidder. In accordance with Section 11.5 of that certain Asset Purchase Agreement (the "Purchase Agreement"), dated as of June 18, 2025, by and between the Debtor and the Purchaser, and that certain Notice of Assignment dated July 9, 2025, the Purchaser assigned all of its rights and obligations under the Purchase Agreement to PCH Digital LLC ("NewCo"). In accordance with the Purchase Agreement and Amendment, the purchase price paid by NewCo was $7,1000,000, plus over $670,000 in cure costs related to contracts that were assumed and assigned to NewCo under section 365 of the Bankruptcy Code. In addition, the Debtor retained its outstanding accounts receivable, and NewCo assumed the following prize winner liabilities: (i) prices in respect of any contests launched by the Debtor following the Petition Date, (ii) two outstanding super-prizes, not to exceed $2,500,000 in the aggregate, and (iii) one super-prize awarded on May 31, 2025, not to exceed $975,000 in the aggregate. The Plan is a plan of liquidation. In general, a chapter 11 plan of liquidation (i) divides claims into separate classes, (ii) specifies the property that each class is to receive under the plan, and (iii) contains other provisions necessary to implement the plan. Under the Bankruptcy Code, "claims" are classified rather than "creditors" because such entities may hold claims in more than one class. Class 3 consists of General Unsecured Claims in the Chapter 11 Case that are asserted, filed or scheduled against the Debtor. Each Holder of an Allowed Class 3 Claim shall receive their pro rata share from the remaining portion of the Post-Confirmation Estate Fund, after satisfaction in full of senior Claims. The pro rata share of each Holder's Allowed Class 3 Claim shall be determined by a formula, the numerator of which is the then unsatisfied amount of such Holder's Class 3 Allowed Claim and the denominator of which is the aggregate unsatisfied amount of the remaining Allowed Class 3 Claims. Class 3 is Impaired. As of the date of the Disclosure Statement, approximately 290,000 parties have filed or otherwise hold scheduled Class 3 Claims in the aggregate amount of approximately $2.5 billion. The Debtor estimates that after reconciliation of such claims is complete and either negotiations or objections are concluded, Allowed Class 3 Claims could range from approximately $70 million to an amount to be determined, which could be significantly in excess of that amount as a result of contingent, unliquidated and Disputed Claims for which the Debtor may be determined to be liable, in part or otherwise. Prior to the Sale to NewCo, the Debtor conducted business in each of the fifty states and the District of Columbia. Prior to the Petition Date, pursuant to applicable state law, the Debtor was required by each of the states and the District of Columbia to report checks issued for goods or services that remained uncashed for a specific period of time (the dormancy period) (collectively, "Unclaimed Property"). Class 4 consists of the Equity Interests in the Debtor. Class 4 Equity Interests are Impaired as they will receive no Distribution under the Plan. Class 4 Equity Interests are deemed to reject the Plan and, as such, are not entitled to vote to accept or reject the Plan. On the Effective Date, all Class 4 Equity Interests will be deemed canceled, null and void and of no force and effect. The Plan shall be funded by a combination of the proceeds of the Sale and the proceeds from liquidation of remaining Assets, including accounts receivable. The Plan Administrator shall utilize the Post-Confirmation Estate Fund for purposes of making distributions to Holders of Allowed Claims after reserving for Disputed Claims. A full-text copy of the Disclosure Statement dated August 8, 2025 is available at https://urlcurt.com/u?l=aXd17k from Omni Agent Solutions, claims agent. Counsel to the Debtor: KLESTADT WINTERS JURELLER SOUTHARD & STEVENS, LLP Tracy L. Klestadt, Esq. Lauren C. Kiss, Esq. Stephanie R. Sweeney, Esq. Andrew C. Brown, Esq. 200 West 41st Street, 17th Floor New York, New York 10036 Tel: (212) 972-3000 Fax: (212) 972-2245 About Publishers Clearing House Publishers Clearing House LLC is a direct-to-consumer company offering free-to-play digital entertainment. Through its PCH/Media division, PCH helps brands and advertisers connect with qualified, responsive audiences across its extensive chance-to-win gaming platforms. PCH has evolved into a multi-channel media company, combining digital entertainment, direct-to-consumer marketing, and commerce to create compelling experiences for users and brands alike. Publishers Clearing House filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10694) on April 9, 2025. The case is pending before the Honorable Martin Glenn. Klestadt Winters Jureller Southard & Stevens, LLP is serving as legal advisor, William H. Henrich and Laurence Sax from Getzler Henrich & Associates LLC are serving as co-chief restructuring officers, SSG Capital Advisors, LLC, is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company. Omni Agent Solutions is the claims agent. On April 24, 2025, the Office of the United States Trustee for the Southern District of New York appointed an official committee of unsecured creditors appointed in this Chapter 11 case. The committee tapped Rimon PC as counsel. R.A.R.E. CORP: Court Extends Cash Collateral Access to Sept. 4 -------------------------------------------------------------- R.A.R.E. Corporation received another extension from the U.S. Bankruptcy Court for the Northern District of Illinois to use the cash collateral of its lenders. The 21st interim order authorized the Debtor to use cash collateral, which includes accounts receivable, through September 4 in accordance with its budget. This latest approval aligns with the terms of the court's initial order issued on Feb. 20 last year, which remains in effect. The next hearing is scheduled for September 3. The lenders asserting interest in the cash collateral are Fundamental Capital, LLC, Spartan Business Solutions, LLC, Everest Business Funding, and The LCF Group, Inc. Meanwhile, the U.S. Small Business Administration is a creditor of the Debtor and may hold a lien on some or all of the Debtor's assets. About R.A.R.E. Corporation R.A.R.E. Corporation sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-02127) on February 15, 2024, with up to $500,000 in assets and up to $1 million in liabilities. R.A.R.E. President Rocky Eastland signed the petition. Judge David D. Cleary oversees the case. The Debtor is represented by: William J Factor, Esq. William J. Factor Tel: 312-878-6976 Email: wfactor@wfactorlaw.com R3CYCLE INDUSTRIES: Gets Extension to Access Cash Collateral ------------------------------------------------------------ R3cycle Industries, LLC received second interim approval from the U.S. Bankruptcy Court for the Western District of North Carolina, Charlotte Division, to use cash collateral. The court's order authorized the Debtor's interim use of cash collateral pending a further hearing on August 26 to pay operating expenses in accordance with its budget. The Debtor must not exceed the budget by more than 10% per line item on a cumulative basis. The Debtor's budget shows total operational expenses of $85,158 for the week ending August 9; $85,100 for the week ending August 16; and $80,725 for the week ending August 23. As adequate protection, secured creditors were granted a replacement lien or other property interest under section 361 of the Bankruptcy Code to the extent their collateral is used by the Debtor. This replacement lien on post-petition property and the proceeds thereof, will have the same priority as the creditors' pre-bankruptcy lien. About R3cycle Industries LLC R3cycle Industries, LLC is a North Carolina-based PET plastic reprocessing company. R3cycle Industries sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. N.C. Case No. 25-30685) on July 1, 202, listing up to $500,000 in assets and up to $10 million in liabilities5. Julian Ochoa, owner and chief executive officer of R3cycle Industries, signed the petition. Judge Ashley Austin Edwards oversees the case. John C. Woodman, Esq., at Essex Richards PA, represents the Debtor as legal counsel. RADIAN GROUP: Moody's Affirms '(P)Ba1' Sr. Subordinate Shelf Rating ------------------------------------------------------------------- Moody's Ratings has affirmed the debt ratings of Radian Group Inc. (Radian Group) including the Baa3 senior unsecured debt, (P)Baa3 senior unsecured shelf, (P)Ba1 senior subordinate shelf, (P)Ba1 subordinate shelf, (P)Ba2 preferred shelf and (P)Ba2 preferred shelf non-cumulative. The A3 insurance financial strength (IFS) rating of Radian Guaranty Inc. (Radian Guaranty) has also been affirmed. The rating outlook for these entities remains stable. RATINGS RATIONALE Radian Group's Baa3 senior debt rating and the A3 IFS rating on Radian Guaranty reflect the group's strong position in the US mortgage insurance market, its diverse customer base, its strong capital adequacy and good financial flexibility due to its large cash and investments position at the holding company. These strengths are tempered by the commodity-like nature of the mortgage insurance product and the fact that the MI sector's fortunes are greatly influenced by lenders, the GSEs, public policy decisions, and other uncontrollable variables, including competition from government-sponsored mortgage insurers. Additionally, although the firm's adjusted financial leverage metric has improved following the repayment of maturing debt with cash on hand last year, it remains an outlier relative to its peers. At Q2 2025, Radian Guaranty had approximately $747 million of excess of loss reinsurance protection through its Eagle Re insurance-linked note transactions and traditional reinsurance. While these arrangements provide important off-balance sheet capital resources to absorb losses during periods of elevated mortgage credit losses, Radian Guaranty's reinsurance protection is low as a percentage of the firm's risk in force relative to its peers. As of June 30, 2025, Radian Guaranty reported a PMIERs sufficiency ratio (a measure of capital adequacy) of approximately 151%. At Q2 2025, Radian Group's adjusted financial leverage was approximately 20.6%, up from 19.9% at year-end 2024, which is consistent with Moody's expectations at the current rating level. Although the firm's financial leverage has come down from 26.2% at year-end 2023, it remains meaningfully higher than the peer group and detracts from the firm's overall credit profile. Through the first six months of 2025, Radian Group reported net income of $286 million and a mortgage insurance combined ratio of 33.1% compared to $304 million and 24.9%, respectively, in the prior year period. As of June 30, 2025, Radian Group's default rate was 2.27%. Due to the significant amount of homeowners' equity that has built up due to the strong increase in home prices over the past several years, Moody's expects a significant portion of currently delinquent loans to cure without paid mortgage insurance claims. The US mortgage insurance sector has produced strong results over the past several years as strength in the US housing market and low levels of unemployment have provided supportive conditions for mortgage credit. Default rates have been relatively steady and have now largely stabilized at levels consistent with strong underwriting profitability. Although housing affordability remains an issue due to strong house price appreciation in recent years and elevated mortgage interest rates, portfolio mark-to-market LTV ratios in the 75 to 80% range are likely to keep the percentage of defaults rolling to claims relatively low. Insurers in the sector have reported strong net income returns on capital, high persistency rates on their in-force insured portfolios and very strong risk-adjusted capital adequacy metrics, with large capital cushions and strong holding company liquidity. The significant utilization of excess of loss reinsurance through insurance-linked notes and excess of loss reinsurance also bolsters the credit profiles of the US mortgage insurers. The comprehensive reinsurance programs in place throughout the sector dampen the potential for capital volatility that has historically impacted the mortgage insurance sector during adverse economic environments. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The following factors could lead to an upgrade of the ratings: 1) sustained maintenance of PMIERs sufficiency ratio at 150%, or above; 2) continued maintenance of comprehensive reinsurance program; and 3) maintaining adjusted financial leverage in the 15% range, or below. The following factors could result in a downgrade of the ratings: (1) PMIERs sufficiency ratio below 130% for more than one quarter, (2) decline in shareholders' equity (including share repurchases) by more than 10% over a rolling twelve month period; (3) significant deterioration in the firm's profitability metrics; and (4) adjusted financial leverage above 25%. Radian Group Inc., through its subsidiaries, provides mortgage insurance and products and services to the real estate and mortgage finance industries. As of June 30, 2025, Radian had primary insurance-in-force of approximately $277 billion and shareholders' equity of approximately $4.5 billion. The principal methodology used in these ratings was Mortgage Insurers published in March 2024. Radian Group's "Standalone Scorecard - Indicated Outcome" adjusted score of A3 is set two notches below the "Preliminary Standalone Outcome" score of A1 to reflect the company's higher adjusted financial leverage relative to peers and its diminished excess of loss reinsurance protection relative to the size of its insured portfolio. RAFTER H FARM: Hires Eisner Advisory Group LLC as Accountant ------------------------------------------------------------ Rafter H Farm and Ranch, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Eisner Advisory Group, LLC as accountant. The firm's services include: a. preparation of federal and state tax returns, including obtaining extension of time to file, if required, for the year ended 2024 for federal and Illinois; b. preparation of any additional state or local income tax returns, as requested; c. preparation of the annual 1099-MISC, 1099-NEC, or 1099-INT forms; d. certain bookkeeping services including preparation of adjusting entries found necessary in order to prepare a complete tax return; e. analysis and required implementation of tax regulations and accounting method changes; f. consultations and research related to specific issues and transactions, as requested; g. tax projections and planning, as requested; h. representation in connection with tax examinations; and i. estimated tax calculations and vouchers. The firm will be paid at these rates: Principal $570 per hour Director $545 per hour Senior Manager $495 to $500 per hour Manager $420 to $460 per hour Supervisor $380 to $390 per hour Senior $310 to $400 per hour Staff $160 to $265 per hour Clerical $140 to $160 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Orr 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: Keith Orr Eisner Advisory Group, LLC 2205 Point Boulevard Suite 100 Elgin, IL 60123 Tel: (847) 695-2700 Fax: (847) 695-2748 About Rafter H Farm and Ranch, LLC Rafter H Farm and Ranch, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-10112-bwo11) on June 11, 2025. In the petition signed by Sam Hemphill, managing member, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Judge Brad W. Odell oversees the case. Joseph Fredrick Postnikoff, Esq., at Rochelle McCullough, LLP, represents the Debtor as legal counsel. FBN Finance, LLC, as secured creditor, is represented by: Jason P. Kathman, Esq. Laurie N. Patton, Esq. Spencer Fane, LLP 5700 Granite Parkway, Suite 650 Plano, TX 75024 Tel: (972) 324-0300 Fax: (972) 324-0301 E-mail: jkathman@spencerfane.com lpatton@spencerfane.com United First, LLC, as secured creditor, is represented by: Broocks Wilson, Esq. Wilson, PLLC 708 Main Street, 10th Floor Houston, TX 77002 Tel: (713) 320-8690 E-mail: mack@wilson-pllc.com Midwest Regional Bank, as secured creditor, is represented by: James W. Brewer, Esq. Kemp Smith, LLP P.O. Box 2800 El Paso, TX 79999-2800 Tel: (915) 533-4424 Fax: (915) 546-5360 E-mail: James.brewer@kempsmith.com jim.brewer@kempsmith.com RITE AID: Receives About $76MM Bids for Properties, Leases in Ch.11 ------------------------------------------------------------------- Alex Wittenberg of Law360 reports that on Thursday, August 14, 2025, Rite Aid informed a New Jersey bankruptcy judge that it has secured roughly $76 million in new bids for leases and properties nationwide as part of its ongoing Chapter 11 asset sales. About Rite Aid Rite Aid is a full-service pharmacy committed to improving health outcomes. Rite Aid is defining the modern pharmacy by meeting customer needs with a wide range of solutions that offer convenience, including retail and delivery pharmacy, as well as services offered through the Company's wholly owned subsidiary Bartell Drugs. On the Web: http://www.riteaid.com/ Rite Aid and certain of its subsidiaries previously filed for chapter 11 bankruptcy in October 2023 and emerged from bankruptcy in August 2024. On May 5, 2025, New Rite Aid, LLC and its subsidiaries, including Rite Aid Corporation, commenced voluntary Chapter 11 proceedings (Bankr. D.N.J. Lead Case No. 25-14861). As of the 2025 bankruptcy filing date, Rite Aid operates 1,277 stores and 3 distribution centers in 15 states and employs approximately 24,500 people. Rite Aid is using the Chapter 11 process to pursue a sale of its prescriptions, pharmacy and front-end inventory, and other assets. The cases are being administered by the Honorable Michael B. Kaplan. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal advisor, Guggenheim Securities, LLC is serving as investment banker, and Alvarez & Marsal is serving as financial advisor to the Company. Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor to the Company. Kroll is the claims agent and maintains the page https://restructuring.ra.kroll.com/RiteAid2025 Bank of America, N.A., as DIP Agent, is represented by lawyers at Greenberg Traurig, LLP; and Choate Hall & Stewart LLP. RSHBY 10565: U.S. Trustee Unable to Appoint Committee ----------------------------------------------------- The U.S. Trustee for Region 2 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of RSHBY 10565, Inc. About RSHBY 10565 RSHBY 10565, Inc. filed Chapter 11 petition (Bankr. W.D. N.Y. Case No. 25-10800) on July 8, 2025, listing between $1 million and $10 million in assets and liabilities. Judge Carl L. Bucki oversees the case. The Debtor is represented by: Richard G. Berger, Esq. Richard G. Berger 403 Main St., Suite 705 Buffalo, NY 14203-2100 Tel: 716-852-8188 rgberger@rgbergerlaw.com SANTA ANA EXPRESS: Case Summary & Three Unsecured Creditors ----------------------------------------------------------- Debtor: Santa Ana Express Car Wash LLC d/b/a Speedy Clean Car Wash d/b/a Speedy Clean 2035 N. Tustin Avenue Santa Ana, CA 92705 Business Description: Santa Ana Express Car Wash LLC, doing business as Speedy Clean Car Wash, operates a car wash facility in Santa Ana, California, offering car wash services, vacuum stations, and monthly membership plans. Chapter 11 Petition Date: August 12, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-15662 Judge: Hon. Magdalena Reyes Bordeaux Debtor's Counsel: Michael Jay Berger, Esq. LAW OFFICES OF MICHAEL JAY BERGER 9454 Wilshire Boulevard, 6th Floor Beverly Hills, CA 90212 Tel: (310) 271-6223 E-mail: michael.berger@bankruptcypower.com Total Assets: $4,423,956 Total Liabilities: $6,356,994 The petition was signed by Amariah Olson as managing director. A full-text copy of the petition, which includes a list of the Debtor's three unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/L2XGXDA/Santa_Ana_Express_Car_Wash_LLC__cacbke-25-15662__0001.0.pdf?mcid=tGE4TAMA SANTA FE SPECIALTY: Katharine Clark Named Subchapter V Trustee -------------------------------------------------------------- The U.S. Trustee for Region 6 appointed Katharine Battaia Clark of Thompson Coburn, LLP as Subchapter V trustee for Santa Fe Specialty Foods, LLC. Ms. Clark will be paid an hourly fee of $525 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Clark declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Katharine Battaia Clark Thompson Coburn, LLP 2100 Ross Avenue, Ste. 3200 Dallas, TX 75201 Office: 972-629-7100 Mobile: 214-557-9180 Fax: 972-629-7171 Email: kclark@thompsoncoburn.com About Santa Fe Specialty Foods Santa Fe Specialty Foods, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Texas Case No. 25-50214) on August 4, 2025, with upto $50,000 in assets and up to $50,000 in liabilities. David R. Langston, Esq. at Mullin, Hoard & Brown represents the Debtor as legal counsel. SANTOPIETRO FOOD: Case Summary & 16 Unsecured Creditors ------------------------------------------------------- Debtor: Santopietro Food Group LLC Nancy's Pizzeria 238 Rowan Dr. Clayton, NC 27520-2982 Business Description: Santopietro Food Group LLC, doing business as Nancy's Pizzeria, operates a franchised casual dining restaurant specializing in Chicago-style stuffed and deep-dish pizzas along with other Italian-American dishes. The Company offers dine-in, takeout, and delivery services and operates in North Carolina under a franchise agreement with Chicago Franchise Systems, Inc. Chapter 11 Petition Date: August 13, 2025 Court: United States Bankruptcy Court Eastern District of North Carolina Case No.: 25-03108 Judge: Hon. Pamela W. McAfee Debtor's Counsel: William P. Janvier, Esq. STEVENS MARTIN VAUGHN & TADYCH, PLLC 2225 W Millbrook Road Raleigh NC 27612 Tel: (919) 582-2300 E-mail: wjanvier@smvt.com Estimated Assets: $50,000 to $100,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Ted Ormsby as member. A full-text copy of the petition, which includes a list of the Debtor's 16 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/ACNCBRI/Santopietro_Food_Group_LLC__ncebke-25-03108__0001.0.pdf?mcid=tGE4TAMA SCCY INDUSTRIES: Hires Latham Luna Eden & Beaudine as Counsel ------------------------------------------------------------- SCCY Industries, LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to employ Latham Luna Eden & Beaudine, LLP. The firm's services include: (a) advising as to the Debtor's rights and duties in this case; (b) preparing pleadings related to this case, including a disclosure statement and plan of reorganization; and (c) taking any and all other necessary action incident to the proper preservation and administration of this estate. The firm will be paid at these rates: Attorneys $575 per hour Paralegals $105 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Prior to the commencement of this case, the Debtor paid an advance fee of $39,935 for services and expenses to be incurred in connection with creditor negotiations, litigation, preparation of the bankruptcy filing prior to the Chapter 11 Bankruptcy filing. Justin M. Luna, Esq., a partner at Latham, Luna, Eden & Beaudine, LLP, 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: Justin M. Luna, Esq. Latham, Luna, Eden & Beaudine, LLP 201 S. Orange Ave., Suite 1400 Orlando, FL 32801 Tel: (407) 481-5800 Fax: (407) 481-5801 Email: jluna@lathamluna.com About SCCY Industries, LLC SCCY Industries LLC manufactured affordably priced polymer-frame pistols for the civilian market. Operating out of Daytona Beach, Florida, the Company specialized in models such as the CPX and DVG series, with in-house production and a focus on personal defense firearms. SCCY Industries LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04877) on August 1, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Grace E. Robson handles the case. The Debtor is represented by Justin M. Luna, Esq. at Latham, Luna, Eden & Beaudine, LLP. SEBASTIAN HABIB: Hires BKO Associates as Real Estate Broker ----------------------------------------------------------- Sebastian Habib, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ BKO Associates Real Estate LLC as real estate broker. The firm will inspect, market and sell the properties: a. 5038 Austell Powder Springs Road, Austell, Georgia 30106 b. 5034 Austell Powder Springs Road, Austell, Geogia 30106 c. 2764 Whitewater Court, Austell, Georgia 30106 The firm will be paid at a flat rate of $9,400, calculated as 2 percent of the Total Purchase Price for the Properties. Berrendia O'Neal, a partner at BKO Associates Real Estate LLC, 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: Berrendia O'Neal BKO Associates Real Estate LLC 8188 River Pointe Overlook Winston, GA 30187 Tel: (770) 876-4931 About Sebastian Habib, LLC Sebastian Habib LLC is a domestic limited liability company headquartered in Woodstock, Georgia. Sebastian Habib LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-50148) on January 6, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Lisa Ritchey Craig handles the case. Adam E. Ekbom, Esq. of Jones & Walden LLC represents the Debtor as counsel. SHOWTIME ACQUISITION: Moody's Cuts CFR & Senior Secured Debt to B3 ------------------------------------------------------------------ Moody's Ratings downgraded Showtime Acquisition, LLC's (d.b.a. World Choice Investments (WCI)) corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD. At the same time, Moody's downgraded the company's backed senior secured bank credit facility ratings (term loan and revolver) to B3 from B2. The outlook is stable. The rating actions follow WCI's announcement earlier [1] that it is seeking to issue a new $85 million fungible add-on to its existing first-lien term loan due August 2031. The proceeds will be used to partially redeem the existing preferred equity, and pay accrued interest, equity breakage costs and related transaction fees and expenses. To repay the preferred equity, the company will launch an amendment to the preferred repayment basket within its existing credit agreement. The rating downgrades reflect the increase in the company's Moody's adjusted Debt/EBITDA to 7.2x, pro forma for the proposed transaction, from 6.2x for the twelve months ended June 28, 2025. The additional borrowing materially delays Moody's expectations for financial leverage reduction and free cash flow improvement. Moody's previously expected WCI's Moody's adjusted Debt/EBITDA to decline to around 5x at the end of 2025 and mid-4x by the end of 2027 (all metrics are Moody's adjusted, without restructuring add-backs to EBITDA and a 100% equity credit for the preferred). Pro forma for the proposed term loan upsize, Moody's now project WCI's leverage to remain high, around 6x at the end of 2025 (Moody's adjusted), barring further upsizes to the term loan, revolver borrowings or other incremental debt issuance. Additionally, the increase in financial leverage reflects a more aggressive financial policy than Moody's had previously anticipated. Governance considerations are a key factor in the ratings downgrade. RATINGS RATIONALE The B3 CFR reflects the company's small scale, limited business and regional diversification, high leverage and concentrated ownership by a financial sponsor. Moody's expects modest leverage improvements to be supported by earnings and cash flow growth following a new venue opening in May 2025 although WCI may undertake opportunistic acquisitions or new builds, using debt to at least partially fund its growth strategy. The company's business model is supported by strong, stable EBITDA margins, low capital intensity and a solid niche position in the live entertainment space. The credit profile also benefits from significant amounts of real estate which lowers WCI's fixed cost base and provides it with the opportunity for future expansion or sources of liquidity if needed. Moody's expects WCI will maintain adequate liquidity over the next 12 to 18 months. This is supported by approximately $16 million of balance sheet cash at close, Moody's expectations of modest free cash flow generation in 2025 and 2026 in the $10 to $15 million range annually and full availability under the company's $75 million revolving credit facility due 2029. Cash flow is somewhat seasonal, with cash typically declining in the first quarter and then growing through the fourth quarter. WCI's cash flow should benefit in the back-half of this year after the Panama City Beach new build is complete and substantially paid for. The revolver has a springing maximum first net leverage ratio set at 6.85x with no step-downs; to be triggered when revolver borrowings exceed 35% of the committed amount. The term loan is covenant-lite. The B3 ratings for WCI's senior secured credit facilities reflect the B3-PD probability of default rating and an average expected family recovery rate of 50% at default given a covenant-lite capital structure with preponderance of first-lien secured debt in the capital stack. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Moody's expects WCI to maintain financial leverage well below 6x, maintain free cash flow to debt in the mid-single digits percentage range with good liquidity and is committed to sustaining a more conservative financial policy. The ratings could be downgraded if organic revenue and EBITDA decline, liquidity deteriorates, including from sustained negative cash flow. A more aggressive financial policy, including through greater shareholder distributions or large acquisitions that materially weaken credit metrics and/or liquidity, would also pressure ratings. Headquartered in Pigeon Forge, Tennessee, WCI is a live dinner attraction and family entertainment operator with ten entertainment locations across four highly visited family-oriented destinations (Pigeon Forge, TN; Branson, MO; Myrtle Beach, SC; and Panama City Beach, FL), with Pigeon Forge being the company's largest market. The company's dinner shows all feature a multicourse meal coupled with extravagant productions, special effects and audience participation. WCI reported LTM June 28, 2025 revenue of around $204 million. The company is owned by private equity firm ZMC. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. SIX COOKS: Joseph Frost Named Subchapter V Trustee -------------------------------------------------- The U.S. Bankruptcy Administrator for the Eastern District of North Carolina appointed Joseph Frost, Esq., as Subchapter V trustee for Six Cooks, LLC. Mr. Frost, a member of the law firm of Buckmiller, Boyette & Frost, PLLC, will be paid an hourly fee of $350 for his services as Subchapter V trustee. About Six Cooks LLC Six Cooks LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-03043) on August 8, 2025, listing between $500,001 and $1 million in assets and between $1 million and $10 million in liabilities. Judge David M. Warren presides over the case. David J. Haidt, Esq. at Ayers & Haidt, P.A. represents the Debtor as legal counsel. SIX COOKS: Seeks Chapter 11 Bankruptcy in North Carolina -------------------------------------------------------- On August 8, 2025, Six Cooks LLC filed Chapter 11 protection in the Eastern District of North Carolina. According to court filing, the Debtor reports $2,103,297 in debt owed to 1 and 49 creditors. The petition states funds will not be available to unsecured creditors. About Six Cooks LLC Six Cooks LLC, d/b/a Blue Forest Market, Industrial Puppy, Wild Baby, and Pro Nutrition Labs, operates as a limited liability company managing multiple businesses under various DBAs including Blue Forest Market, Industrial Puppy, Wild Baby, and Pro Nutrition Labs. The Company's operations span retail sales of toys and household goods, manufacturing and sales of service animal products, nutritional supplements, and other specialized product lines. Six Cooks LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-03043) on August 8, 2025. In its petition, the Debtor reports total assets of $630,133 and total liabilities of $2,103,297. Honorable Bankruptcy Judge David M. Warren handles the case. The Debtor is represented by David J. Haidt, Esq. at AYERS & HAIDT, PA. SNAP INC: Moody's Rates New Senior Unsecured Notes Due 2034 'B1' ---------------------------------------------------------------- Moody's Ratings assigned a B1 rating to Snap Inc.'s proposed senior unsecured notes due 2034. All other credit ratings at Snap, including the company's B1 corporate family rating and Ba3-PD probability of default rating remain unchanged. Snap's SGL-1 Speculative Grade Liquidity Rating (SGL) also remains unchanged reflecting very good liquidity. The outlook is positive. Proceeds from the proposed offering of $500 million in senior unsecured notes will be used to repurchase a portion of the company's convertible debt securities maturing in 2026, 2027, 2028 and/or 2030, and for general corporate purposes. The B1 rating assigned to the senior unsecured notes is in line with the CFR reflecting the preponderance of unsecured debt in the company's capital structure. RATINGS RATIONALE Snap's B1 Corporate Family Rating (CFR) reflects the company's growing scale, strong engagement among the 13–24 year-old demographic, improved operating performance (though uneven at times), entrenched competitive position, and conservative financial policies. With 469 million daily active users (DAUs) and 932 million monthly active users (MAUs), Snap ranks among the largest global communications and social media platforms. Its revenue mix is geographically diversified, with approximately 60% from North America, 18% from Europe, and 22% from other regions. The company's improving free cash flow generation, effective user growth strategy, and favorable cash-to-debt ratio continue to support its credit profile and allow it to continue to improve its value proposition to advertisers and brand partners. The rating also incorporates the intense competitive pressures Snap faces and its smaller scale relative to peers such as Meta and Alphabet in terms of revenue, user base, and free cash flow. These competitors benefit from significantly greater financial and human capital resources and stronger credit profiles. Additionally, Snap remains exposed to regulatory risks, the cyclical nature of the advertising market, and potential disruption from emerging technologies. The company's substantial use of stock-based compensation (SBC) continues to weigh on GAAP profitability and adjusted EBITDA metrics. While SBC is a strategic tool for attracting and retaining talent in a competitive industry, it dilutes the equity base and may lead to increased pressure for share repurchases over time. Moody's expects Snap to maintain very good liquidity over the next 12 to 18 months. Snap's liquidity position is supported by (i) around $2.9 billion in cash at June 30, 2025, (ii) an undrawn $1,050 million revolving credit facility, and (iii) Moody's expectations for around $300 million in free cash flow for 2025. The positive outlook reflects Moody's expectations that over the next 12 months 18 months, Snap will continue to achieve solid revenue growth, improve EBITDA organically, increase free cash flow generation, and maintain a stable cash-to-debt ratio. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The rating could be upgraded if the company remains committed to conservative balance sheet management and liquidity, achieves continued strong revenue growth, and increases free cash flow generation such that free cash flow to debt approaches 10%. The rating could be downgraded if the company's liquidity and operating performance deteriorates, free cash flow weakens materially, the cash to debt ratio declines significantly, or the company shifts to a more aggressive financial policy. Snap Inc. is a technology company known for its flagship product, Snapchat, a visual messaging application. The company aims to enhance digital presence and improve customer engagement through various initiatives, including services like Camera, Visual Messaging, Snap Map and Spotlight. The principal methodology used in this rating was Business and Consumer Services published in November 2021. SOLANO HOME: Hires Anthony D. Giles as Legal Counsel ---------------------------------------------------- Solano Home Solutions, Inc., Debtor and Debtor-in-Possession, seeks approval from the U.S. Bankruptcy Court for the Eastern District of California to hire law practitioner Anthony D. Giles to serve as legal counsel in its Chapter 11 case. Mr. Giles will provide these services: (a) represent the Debtor in a pending Complaint for Fraud filed in the Superior Court of the State of California, County of San Joaquin; (b) handle all related discovery and litigation proceedings; and (c) perform all other legal services necessary in connection with the case. The Debtor paid $1,000 in advance for costs associated with the case. The contingency agreement calls for 30% plus any unpaid costs before summary judgment, 35% plus any unpaid costs sixty days before trial, and 40% through trial and resolution plus unpaid costs. Mr. Giles 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: Anthony D. Giles, Esq. 1 Sansome St Ste 1400 San Francisco, CA 94104-4431 Telephone: (415) 839-2099 Facsimile: (415) 901-0464 Email: anthony@anthonygiles.com About Solano Home Solutions LLC Solano Home Solutions LLC is a real estate company classified as a single-asset real estate Debtor. Solano Home Solutions LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. 25-22931) on June 12, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Christopher D. Jaime handles the case. The Debtor is represented by Peter G. Macaluso, Esq. at LAW OFFICE OF PETER G. MACALUSO. SOLUTIONS BY THE SEA: L. Todd Budgen Named Subchapter V Trustee --------------------------------------------------------------- The U.S. Trustee for Region 21 appointed L. Todd Budgen, Esq., a practicing attorney in Longwood, Fla., as Subchapter V trustee for Solutions By The Sea, Inc. Mr. Budgen will be paid an hourly fee of $400 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Budgen declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: L. Todd Budgen, Esq. P.O. Box 520546 Longwood, FL 32752 Tel: (407) 232-9118 Email: Todd@C11Trustee.com About Solutions By The Sea Solutions By The Sea, Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-05035) on August 8, 2025, listing up to $50,000 in assets and between $50,001 and $100,000 in liabilities. Judge Lori V. Vaughan presides over the case. Scott W. Spradley, Esq. at Law Offices Of Scott W. Spradley, P.A. represents the Debtor as legal counsel. SOUTHERN EXPRESS: Hires Hendren Redwine & Malone as Counsel ----------------------------------------------------------- Southern Express Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina to employ Hendren, Redwine & Malone, PLLC as counsel. The firm will be paid based upon its normal and usual hourly billing rates. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The firm received a payment of $25,000 from the Debtor. Mr. Hendren 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: Jason L. Hendren, Esq. Hendren, Redwine & Malone, PLLC 4600 Marriott Drive, Suite 150 Raleigh, NC 27612 Telephone: (919) 420-7867 Facsimile: (919) 420-0475 Email: jhendren@hendrenmalone.com About Southern Express Inc. Southern Express Inc. provides motorcoach and shuttle transportation services across the southern United States, including corporate charters, event and campus shuttles, school and family trips, and airport transfers. Founded in 2010 by industry professionals Bruce Bechard and Vance Hoover, the privately held company operates a modern, sanitized fleet staffed by certified driving professionals and emphasizes locally made decisions to ensure consistent, client-focused service. Southern Express Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-02978) on August 5, 2025. In its petition, the Debtor reports total assets of $3,330,694 and total liabilities of $6,321,019. Honorable Bankruptcy Judge Pamela W. Mcafee handles the case. The Debtor is represented by Jason L. Hendren, Esq. at HENDREN, REDWINE & MALONE, PLLC. SPHERE 3D: Posts $1.7M Net Income in Fiscal Q2 ---------------------------------------------- Sphere 3D Corp. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net income of $1.7 million for the three months ended June 30, 2025, compared to a net income of $2.1 million for the three months ended June 30, 2024. For the six months ended June 30, 2025, the Company reported a net loss of $7.1 million, compared to a net loss of $2.4 million for the same period in 2024. The Company had an accumulated deficit of $463.9 million as of June 30, 2025. As of June 30, 2025, the Company had $34.4 million in total assets, $1.7 million in total liabilities, and $32.7 million in total shareholders' equity. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/mv2ry4m9 About Sphere 3D Sphere 3D Corp. (Nasdaq: ANY) is a cryptocurrency miner, growing its industrial-scale digital asset mining operation through the capital-efficient procurement of next-generation mining equipment and partnering with best-in-class data center operators. Sphere 3D is dedicated to increasing shareholder value while honoring its commitment to strict environmental, social, and governance standards. For more information about the Company, please visit Sphere3D.com. In its report dated March 28, 2025, the Company's auditor MaloneBailey, LLP, issued a "going concern" qualification citing that the Company has suffered recurring losses from operations and does not expect to have sufficient cash on hand to fund its operations that raises substantial doubt about its ability to continue as a going concern. STAR LEASING: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed Star Leasing Company, LLC's (doing business as Transportation Equipment Network [TEN]) Long-Term Issuer Default Rating (IDR) at 'BB-'. The Rating Outlook is Stable. Fitch has also affirmed TEN's senior secured second-lien debt rating at 'BB' with a Recovery Rating of 'RR3'. Key Rating Drivers Established Market Position: The ratings reflect TEN's franchise as a full-service trailer lessor in the U.S. and Canada, limited residual value risk supported by conservative depreciation policies and the long useful life of its trailers, solid asset quality, low balance sheet leverage and adequate liquidity. The ratings also consider management's depth, experience, and track record in managing trailers. Monoline Business Model: The ratings are constrained by the monoline business model and sensitivity to economic activity affecting leasing demand, execution risk associated with the company's growth targets and accompanying financial policies, weak profitability, limited scale relative to larger transportation-focused leasing companies rated by Fitch and limited funding flexibility given its primarily secured funding profile. TEN also faces governance risks relative to larger, public peers, particularly given its limited board independence and private equity ownership, which could lead to variability in strategic and financial objectives. Customer Concentration; Sound Asset Quality: TEN's portfolio of approximately 2,000 customers is modestly concentrated, with the top 10 customers representing roughly 25% of total revenue. Residual value risk is well-managed, supported by conservative depreciation policies and the long useful life of its trailers. In addition, the company's fleet consists predominantly of dry vans, which are less sensitive to economic cycles due to their versatility in transporting a wide range of goods and their essential nature for customers. TEN has not experienced broad-based non-renewals of customer contracts despite the more challenging operating environment. However, ongoing renewal discussions with select National Package Carriers (NPC) remain uncertain due to changes in NPCs' relationships with their end clients, which could depress trailer demand and utilization at TEN. Management expects that new or renewed contracts with other carriers will help offset utilization pressures from potential NPC non-renewals, though delays in re-engagement remain a near-term risk. Impairments as a percentage of revenue-generating fleet were 0.2% in 1Q25, consistent with the 2021-2024 average. Although macroeconomic uncertainties may lead to a modest increase in the impairment ratio in the near term, Fitch believes it will remain appropriate for the assigned rating category. Weak Earnings: TEN's profitability remains weak, with pre-tax return on average assets (ROAA) at negative 6.7% for the trailing 12 months (TTM) ended 1Q25 and averaging negative 3.0% between 2021-2024, which corresponds to Fitch's 'ccc and below' category benchmark range of below 0% for balance sheet-heavy financing and leasing companies with a sector risk operating environment score (SROE) in the 'a' category. On a complementary basis, the adjusted EBITDA margin was 36% for the TTM ended 1Q25, in line with the 2021-2024 average of 37%. Profitability has been negatively impacted by reduced fleet utilization, high depreciation and direct operating expenses, and increased interest costs. Fitch expects pre-tax ROAA to remain negative through 2025, with any profitability improvement in subsequent periods contingent on the firm's ability to sustainably enhance fleet utilization and exercise disciplined cost management. The path to positive reported profitability also depends on an improved trade environment and economic growth. Appropriate Leverage: Gross debt-to-tangible equity was 1.4x as of March 31, 2025 (versus 1.3x at YE 2024), and Fitch expects leverage to increase over the Outlook horizon, as internal capital generation is constrained by high dividend distributions and a potential increase in borrowings via the ABL facility to support organic growth and opportunistic tuck-in acquisitions. Fitch also considers gross debt-to-adjusted EBITDA as a complementary metric. Cash flow leverage was 5.8x for the TTM ended 1Q25, up from 4.3x a year ago. Future de-leveraging depends on organic EBITDA expansion and management's continued focus on prudent debt management being prioritized over other corporate initiatives, such as distributions and M&A transactions. Negative rating momentum could result if the firm does not make progress towards reducing cash flow leverage to 4x over the Outlook horizon. Secured Funding: As of March 31, 2025, 97% of TEN's funding was secured, consisting largely of a $1.55 billion secured ABL facility maturing in October 2027. The firm also has $32 million in seller notes due in 2027 related to the TIP Fleet Services Canada acquisition. Fitch believes greater funding diversity and increased unsecured funding over time would improve TEN's funding flexibility during periods of stress. Solid Liquidity; Limited Coverage: As of March 31, 2025, TEN had $22 million in cash and $1.1 billion in available committed capacity under its ABL facility, with no debt maturities due over the next 12 months. Adjusted EBITDA to interest expense was 2.0x for the TTM ended 1Q25, down from an average 7.6x between 2021-2024. Fitch believes interest coverage will remain generally stable over the medium term as rising financing costs are mitigated by EBITDA growth. Stable Outlook: The Stable Outlook reflects Fitch's expectation for continued solid asset quality performance, improved profitability supported by enhanced scale and cost discipline, maintenance of tangible leverage within management's target range, a reduction in cash flow leverage below 4.0x, and maintenance of adequate liquidity. The Outlook also reflects Fitch's expectation that TEN will maintain its market position, with limited changes to the strategic and financial policies, including prudent capital management under the company's current ownership consortium. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A sustained increase in gross debt-to-tangible equity approaching 3.0x, particularly if arising from outsized dividends to shareholders, material impairments, and/or frequent large-scale, debt-funded acquisitions; - Failure to reduce cash flow leverage below 4x over the Outlook horizon; - Sustained weak profitability, particularly if arising from a reduction in fleet utilization, lease rates, and/or inability to realize operational efficiency gains, including targeted synergies; - Weakening of the liquidity profile, as evidenced by lower operating cash flows and interest coverage; - Deterioration in credit quality, bankruptcy, or loss of key lessee relationship; - A significant decline in market share or a weakening in TEN's competitive position. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustained improvement of pretax return on average assets over 1.0%; - An increase in unsecured funding over 10% of total debt; - Maintenance of cash flow leverage below 3.5x; - Maintenance of a solid liquidity profile, as evidenced by sufficient cash on hand and ABL availability to fund operations and service debt; - An improvement in Fitch's view of TEN's franchise strength, supported by through-the-cycle stability of its business model. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS TEN's second-lien senior secured debt rating is one notch above the Long-Term IDR and reflects the firm's low leverage and above average recovery prospects in a stress scenario given the collateral pool available to satisfy the debt. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The second-lien senior secured debt is primarily sensitive to changes in TEN's Long-Term IDR, and secondarily, to the relative recovery prospects of the 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 reason: Business Model (negative). - The Asset Quality score has been assigned below the implied score due to the following reasons: Concentrations; asset performance (negative) and historical and future metrics (negative). - The Earnings and Profitability score has been assigned above the implied score due to the following reason: historical and future metrics (positive). - The Capitalization and Leverage score has been assigned below the implied score due to the following reasons: Profitability, payouts and growth (negative), and historical and future metrics (negative). - The Funding, Liquidity and Coverage score has been assigned below the implied score due to the following reason: funding flexibility (negative). ESG Considerations TEN has an ESG relevance score of '4' for Governance Structure due to the limited Board independence and concentrated ownership by a private equity firm. This has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Star Leasing Company, LLC LT IDR BB- Affirmed BB- Senior Secured 2nd Lien LT BB Affirmed RR3 BB STOLI GROUP: Banker Refuses Bourbon as Chapter 11 Repayment ----------------------------------------------------------- Rick Archer of Law360 Bankruptcy Authority reports that the secured lender to Stoli Group USA on Monday, August 11, 2025, asked a Texas bankruptcy judge to deny the vodka maker's proposed Chapter 11 plan, arguing the company is attempting to repay its debt with bourbon instead of cash. About Stoli Group (USA) LLC Stoli Group (USA), LLC is a producer, manager, and distributor of a global portfolio of spirits and wines. Stoli Group (USA) and Kentucky Owl, LLC filed Chapter 11 petitions (Bankr. N.D. Texas Lead Case No. 24-80146) on November 27, 2024. At the time of the filing, Stoli Group (USA) reported $100 million to $500 million in assets and $10 million to $50 million in liabilities while Kentucky Owl reported $50 million to $100 million in assets and $50,000,001 to $100 million in liabilities. Judge Scott W. Everett handles the cases. Holland N. O'Neil, Esq., at Foley & Lardner, LLP is the Debtor's legal counsel. Fifth Third Bank, N.A., as lender, is represented by Brent McIlwain, Esq. and Christopher A. Bailey, Esq. at Holland & Knight, LLP and Jeremy M. Downs, Esq. and Steven J. Wickman, Esq. at Goldberg Kohn, Ltd. SUMMIT HARD: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Summit Hard Cider and Perry Company, LLC d/b/a Scrumpy's f/d/b/a Summit Mobile Juicing 215 N. College Fort Collins, CO 80524 Business Description: Summit Hard Cider and Perry Company, LLC, operating in Fort Collins, Colorado, produces and sells craft hard ciders and perries, and operates a taproom and pub under the Scrumpy's brand, offering beverages and food to consumers. The Company also collects local fruit through a mobile juicing trailer to create both alcoholic and non-alcoholic drinks. Chapter 11 Petition Date: August 13, 2025 Court: United States Bankruptcy Court District of Colorado Case No.: 25-15079 Judge: Hon. Joseph G Rosania Jr Debtor's Counsel: Payton L. Buhler, Esq. BELL, GOULD, LINDER & SCOTT P.C. 318 East Oak Street Fort Collins, CO 80524 Tel: 970-493-8999 E-mail: pbuhler@bell-law.com Total Assets: $164,233 Total Liabilities: $2,663,400 The petition was signed by Jennifer M. Seiwald as managing member. A copy of the Debtor's list of 20 largest unsecured creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/YYRSRHA/Summit_Hard_Cider_and_Perry_Company__cobke-25-15079__0005.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/YJC535Y/Summit_Hard_Cider_and_Perry_Company__cobke-25-15079__0001.0.pdf?mcid=tGE4TAMA SUMMIT PROTECTIVE: Hires Michael Jay Berger as Bankruptcy Counsel ----------------------------------------------------------------- Summit Protective & Investigative Services, Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of California to hire Michael Jay Berger of the Law Offices of Michael Jay Berger to serve as its general bankruptcy counsel. The firm will provide these services: (a) communicate with creditors of the Debtor; (b) review the Debtor's Chapter 11 bankruptcy petition and all supporting schedules to determine if amendments are needed; (c) advise the Debtor of its legal rights and obligations in a bankruptcy proceeding; (d) work to bring the Debtor into full compliance with reporting requirements of the Office of the United States Trustee; (e) prepare status reports as required by the Court; (f) respond to any motions filed in Debtor's bankruptcy proceeding; (g) respond to creditor inquiries; (h) review proofs of claim filed in Debtor's bankruptcy; (i) object to inappropriate claims; (j) prepare Notices of Automatic Stay in all state court proceedings in which the Debtor is sued during the pending of Debtor's bankruptcy proceeding; and (k) if appropriate, prepare a Chapter 11 Plan of Reorganization for the Debtor. The firm will be paid at these rates: Michael Jay Berger $645 per hour Sofya Davtyan $595 per hour Angela Gill $595 per hour Robert Poteete $475 per hour senior paralegals and law clerks $275 per hour bankruptcy paralegals $200 per hour The Law Offices of Michael Jay Berger 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: Michael Jay Berger, Esq. Sofya Davtyan, Esq. LAW OFFICES OF MICHAEL JAY BERGER 9454 Wilshire Boulevard, 6th Floor Beverly Hills, CA 90212 Telephone: (310) 271-6223 Facsimile: (310) 271-9805 E-mail: Michael.Berger@bankruptcypower.com Sofya.Davtyan@bankruptcypower.com About Summit Protective & Investigative Services Summit Protective & Investigative Services, Inc. provides security guard services. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. 25-23819) on July 24, 2025. In the petition signed by Ronald Ressurection, chief financial officer, the Debtor disclosed up to $100,000 in assets and up to $500,000 in liabilities. Judge Christopher M. Klein oversees the case. Michael Jay Berger, Esq., at Law Offices of Michael Jay Berger, represents the Debtor as legal counsel. SURGERY CENTER: Moody's Alters Outlook on 'B2' CFR to Negative -------------------------------------------------------------- Moody's Ratings affirmed the ratings of Surgery Center Holdings, Inc.'s ("Surgery Partners"), including the B2 corporate family fating, the B2-PD probability of default Rating, the Ba3 rating on the existing senior secured first lien term loan due 2030, the Ba3 rating on senior secured first lien revolving credit facility due 2028, and the Caa1 rating on senior unsecured notes due 2032. There is no change to the company's SGL-1 Speculative Grade Liquidity Rating. At the same time, Moody's revised Surgery Partners' outlook to negative from stable. The revision of the outlook to negative reflects Moody's expectations that financial leverage will remain elevated above 6x in the next 12-18 months mainly driven by the company's aggressive growth strategy. RATINGS RATIONALE Surgery Partners' B2 CFR reflects the company's elevated financial leverage due mainly to the company's aggressive growth strategy. Moody's estimates pro forma LTM June 30, 2025 leverage was 6.7x. Moody's forecast that financial leverage will modestly decline but remain elevated above 6x. Leverage decline will be driven by organic growth, increased acuity and contributions from recent acquisitions. The rating is constrained by the elective nature of many of the procedures performed in Surgery Partners' ambulatory surgery centers (ASCs), meaning that patients can delay/forego treatment in times of economic weakness. Further, the risks stemming from exposure to government payers can lead to future reimbursement pressures. Surgery Partners rating benefits from the company's strong market position and favorable industry fundamentals, as payers continue to drive patients out of hospitals and into less costly points of care, like ASCs. Growth opportunities arise from the company's good case mix that favors procedures with higher reimbursements, and continued investments to enhance its cardiology and musculoskeletal capabilities through recruitment of specialists and technological investments (i.e., robotics). The Speculative Grade Liquidity Rating of SGL-1 reflects Moody's expectations of very good liquidity over the next 12- 18 months. Surgery Partners had about $250 million of cash as of June 30, 2025, and $395 million available on its $704 million senior secured first lien revolving credit facility expiring in 2028. The revolving credit facility has a 40% springing covenant which Moody's do not expect to be tested, but Surgery Partners will have ample cushion if tested. Alternate liquidity is limited because the senior secured credit facility is secured by a first priority lien on substantially all of the company's assets. The outlook is negative. Moody's expects Surgery Partners financial leverage to remain elevated above 6.0x in the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if financial leverage is sustained over 6.0x, the company's earnings weaken or there are major operational disruptions. Pursuit of an overly aggressive expansion strategy or deterioration Surgery Partners' cash flow or liquidity could also result in a downgrade. The ratings could be upgraded if Surgery Partners adopts less aggressive financial policies and sustainably reduces debt to EBITDA below 5.0 times. Additionally, a material improvement in free cash flow would support an upgrade. Surgery Center Holdings, Inc., headquartered in Brentwood, TN, is an operator of 162 short stay surgical facilities in 30 states as of June 30, 2025. The surgical facilities, which include 143 ASCs and 19 surgical hospitals, primarily provide nonemergency surgical procedures across many specialties. Surgery Center Holdings, Inc. also provides ancillary services including multi-specialty physician practices, urgent care facilities and anesthesia services. Surgery Center Holdings, Inc. is 39% owned by Bain Capital Private Equity, LP and listed on the NASDAQ. Revenue is approximately $3.2 billion LTM June 30, 2025. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. SYLVAMO CORP: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed Sylvamo Corporation's Long-Term Issuer Default (IDR) at 'BB+' and senior secured ratings at 'BBB-' with a Recovery Rating of 'RR1'. The Rating Outlook is Stable. The rating reflects Sylvamo's significant scale and low-cost operations, strong free cash flow (FCF) generation, and conservative leverage and capital allocation policies against the backdrop of a long-term secular decline facing the paper market. The rating is supported by the company's substantial forestry holdings in Brazil. Key Rating Drivers Large Scale Low-Cost Producer: Sylvamo's mills, spread across North America, Europe and Latin America, are among the lowest-cost producers of uncoated freesheet in the world, with the bulk of the company's annual capacity in the bottom first and second quartile of the global cost curve. This favorable cost position partially buffers margins from variable pricing and negative volume trends in the paper industry. Since its spin-off from International Paper (IP) in 2021, Sylvamo has both increased capital expenditures and targeted investments and upgrades across its asset base, with the effect of maintaining or improving the cost competitiveness of the operations. The company maintains a pipeline of high-return projects, which Fitch believes will continue to place Sylvamo at the lower end of the cost curve. Six of Sylvamo's seven mills are vertically integrated from the round wood processing into pulp and finally through the paper production stage, a configuration which is highly cost effective and allows the company to generate the majority (approximately 80%) of its energy requirements. Sylvamo's mills are also located in attractive fiber regions where Sylvamo has access to low-cost wood. Secular Industry Decline: Demand for all types of graphic paper have been in secular decline for several decades due to substitution by electronic and digital media. However, uncoated freesheet (UFS) of the type Sylvamo produces has seen a less precipitous decline than other paper types such as newsprint paper. Fitch estimates that Sylvamo's UFS volumes will decline in the 4% range per annum through the forecast period, with long-term demand supported by ongoing consumption in the education, communication and entertainment sectors. The paper market benefits from an orderly market structure, with major producers regularly reducing capacity to maintain a market supply/demand balance, supporting pricing despite the negative volume trends. Average selling price for UFS has seen a roughly 40% increase since 2020, and Fitch expects flat to modestly increasing price over the forecast period partially mitigating the negative volume effect. Fitch notes that several of Sylvamo's peers are converting paper mills to more economically attractive containerboard and pulp products, which helps maintain equilibrium in the paper market. 50% Tariff Impacts EBITDA: Fitch assumes that a currently imposed U.S. tariff of 50% on Brazil imports will modestly impact Sylvamo EBITDA generation but with comfortable headroom to Fitch rating sensitivities. As a consequence of the tariffs, Fitch expectsour a decline in realized prices, lower sales volume, and lower EBITDA throughout the forecast period as Sylvamo and its competitors are likely to keep LatAm paper sales within the region rather than exporting to the U.S. This will increase regional pricing pressure as competition intensifies. Conservative Financial Policies: Sylvamo has reduced gross debt since spinoff resulting in Fitch-calculated EBITDA leverage of about 1.3x. Fitch believes that a commitment to maintain leverage in this range anchors the company's capital allocation strategy. Annual dividends and share repurchases can be easily accommodated from cash flow from operations. Fitch assumes these will be conducted within the bounds of a conservative leverage profile. The relatively small size of the A/R securitization facility supports an 'RR1' Recovery Rating. A material increase in the facility's size could lead to a revision to 'RR2', which would not affect the instrument rating of 'BBB-'. Steady Cash Flow Generation: Since separating from IP, Sylvamo has generated EBITDA margins in the mid-teens, with positive annual FCF margins above 5% implying a healthy deleveraging capacity. Cash flows margins are forecast to be positive, although lower than previously expected due to the Brazil tariffs. The economics of Sylvamo's business and overall cash flows could return to historical levels if the Brazil tariffs are withdrawn. Substantial Forestry Assets: Sylvamo's forestry holdings in Brazil are a key credit consideration supporting its 'BB+' rating. The company owns about 250,000 acres of land in the state of Sao Paulo valued at approximately $1.0 billion. The assets represent to Sylvamo a significant source of alternate liquidity should the company need to monetize these holdings, potentially via a sale leaseback or similar arrangement that would still afford Sylvamo access to fiber to supply its three mills in the region. Peer Analysis A notable strength for Sylvamo within the paper and packaging sector is its consistency in maintaining low leverage compared with many high-rated issuers in the industry. Sylvamo has consistently maintained EBITDA leverage of around 1.5x, significantly lower than its peers including Stora Enso Oyj (BBB-/Stable) and Suzano S.A. (BBB-/Positive). This conservative leverage profile provides Sylvamo with ample financial flexibility and provides an appropriate buffer to the cyclically declining paper industry. Sylvamo's closest peer, Domtar Corporation (BB-/Negative), generates slightly higher revenue. However, Sylvamo demonstrates superior EBITDA and FCF margins. Both companies are similar in terms of EBITDA generation and share a geographic focus that includes North America and Europe, and the production of wood pulp and uncoated freesheet paper. The key differentiator in their ratings is Sylvamo's EBITDA leverage — e.g., YE 2024 leverage for Sylvamo was 1.3x compared to Domtar's 5.1x. Sylvamo's selective approach to accretive acquisitions has contributed to the maintenance of its leverage profile. Sylvamo's revenue is smaller compared to its paper and packaging peers Suzano and Stora Enso Oyj, and its EBITDA is below these companies and Klabin S.A. (BB+/Stable). Suzano is the world's leading producer of market pulp, and leading producer of printing and writing paper in Brazil. Sylvamo has significantly smaller scale than Suzano, but its credit profile benefits from a more conservative financial policy. Key Assumptions - Modest annual declines in global UFS volumes (-4% area) with stable North American pricing through the forecast period; - Brazil's 50% tariff rate through forecast period negatively impacts regional EBITDA; - Capex in the $220 million to $290 million range as per management, peaking in 2026 with elevated spending for the strategic investments at their flagship Eastover, SC mill; - Dividends and share buybacks in line with historical trends; - Europe segment EBITDA margins in mid-single digits for the forecast period; - Refinancing of 2027 maturity at similar rates; - SOFR assumptions. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage consistently above 2.5x; - Any unfavorable change in current leverage or capital allocation policy; - Faster-than-expected deterioration in the paper segment resulting in depressed margins and materially lowered FCF generation; - Deterioration in liquidity buffers including unencumbered forest landholdings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Maintenance of conservative financial and capital allocation policies along with sufficient liquidity buffers; - Stabilization of secular demand decline in industry; - EBITDA leverage consistently below 1.5x. Liquidity and Debt Structure As of March 31, 2025, Sylvamo has full availability of their $400 million revolving credit facility due 2029, plus total cash and investments of $154 million, resulting in total liquidity of $554 million. Fitch views this liquidity as sufficient for the rating given the low-cost position of the company and positive FCF generation in the forecast. Fitch views the maturity profile as manageable with most of the debt maturing past the forecast period. The company's $257 million Term Loan F is due in 2027, and Fitch expects the company will be able to refinance the debt ahead of maturity and similar pricing. Issuer Profile Sylvamo is one of the world's largest manufacturers of uncoated freesheet paper. It has strong assets, including seven cost-efficient mills and extensive eucalyptus forest lands in Brazil, which help lower production costs. 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 ----------- ------ -------- ----- Sylvamo Corporation LT IDR BB+ Affirmed BB+ senior secured LT BBB- Affirmed RR1 BBB- TAC & J: Seeks to Hire Joyce W. Lindauer as Legal Counsel --------------------------------------------------------- TAC & J Holding, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, to hire Joyce W. Lindauer of Joyce W. Lindauer Attorney, PLLC to serve as its legal counsel. The firm will provide these services: (a) represent the interests of the Debtor and the estate; (b) propose a plan of reorganization; and (c) represent the Debtor in various matters arising in this case. The firm will be paid at these hourly rates: Ms. Lindauer $595 Paul B. Geilich, Of Counsel $525 Laurance Boyd, Associate Attorney $295 Dian Gwinnup, Paralegal $250 The firm has been paid a retainer of $11,738, which includes a $1,738 filing fee. The Debtor has agreed to reimburse all reasonable out-of-pocket expenses. Joyce W. Lindauer Attorney, PLLC 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, Esq. JOYCE W. LINDAUER ATTORNEY, PLLC 117 S. Dallas Street Ennis, TX 75119 Telephone: (972) 503-4033 Facsimile: (972) 503-4034 About TAC & J Holding, LLC TAC & J Holding, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-32570) on July 9, 2025. At the time of the filing, Debtor had estimated assets of between $1,000,001 and $10 million and liabilities of between $1,000,001 and $10 million. Judge Stacey G. Jernigan oversees the case. Joyce W. Lindauer Attorney, PLLC is Debtor's legal counsel. TALKING ROCK: Gets OK to Use Cash Collateral Until Oct. 17 ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona issued a second stipulated order extending Talking Rock Land, LLC's authority to use cash collateral. The court order authorized the Debtor to continue using cash collateral through October 17 to cover ordinary and necessary post-petition operating expenses in accordance with its latest budget. The Debtor may reimburse out-of-pocket costs and expenses incurred by its affiliated management company, Symmetry Companies, LLC, consistent with the budget but is prohibited from paying Symmetry any management fees during the interim period. The Debtor may not make any payments to Principal Resources, LLC during the period. All secured creditors retain their rights to seek additional protection or seek a claim under section 507(b) for any diminution in the value of their collateral resulting from the Debtor's use of their cash collateral. The Debtor's authority to use cash collateral may be extended beyond October 17 without further court order upon agreement by the parties. About Talking Rock Land Talking Rock Land, LLC develops and manages Talking Rock, a private residential community in Prescott, Ariz. The development includes luxury homes, a golf course, and club amenities. Talking Rock Land filed Chapter 11 petition (Bankr. D. Ariz. Case No. 25-03438) on April 18, 2025. In its petition, the Debtor reported between $10 million and $50 million in assets and between $1 million and $10 million in liabilities. Judge Daniel P. Collins handles the case. The Debtor is represented by: Scott B. Cohen, Esq. Engelman Berger, P.C. Email: 602-271-9090 Email: sbc@eblawyers.com TAP-TEE REALTY: Seeks Chapter 11 Bankruptcy in New York ------------------------------------------------------- On August 11, 2025, Tap-Tee Realty Inc. filed Chapter 11 protection in the Eastern 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 be available to unsecured creditors. About Tap-Tee Realty Inc. Tap-Tee Realty Inc. was established on Jun 30 2008 as a domestic business corporation type registered at 525 Myrtle Avenue Suite C1 C-1 Brooklyn, New York. Tap-Tee Realty Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-43854) on August 11, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge Elizabeth S. Stong handles the case. The Debtor is represented by Joshua Reid Bronstein, Esq. at JOSHUA R. BRONSTEIN & ASSOCIATES, PLLC. TELEPHONE AND DATA: Moody's Alters Outlook on 'Ba1' CFR to Stable ----------------------------------------------------------------- Moody's Ratings confirmed Telephone and Data Systems, Inc.'s (TDS) Ba1 Corporate Family Rating, Ba1-PD Probability of Default Rating, and Ba3 Preferred Stock ratings. Concurrently, Moody's confirmed Array Digital Infrastructure, Inc.'s (Array) (83% owned and controlled by TDS) Ba2 senior unsecured ratings. TDS's SGL-1 Speculative Grade Liquidity Rating (SGL) remains unchanged reflecting very good liquidity. The outlook for both entities was changed to stable from ratings under review. Previously, the ratings were on review for downgrade. These rating actions concluded the review for downgrade initiated on May 29, 2024. The confirmation of TDS's CFR reflects the company's high-quality though smaller asset base post the sale of Array's wireless operations to T-Mobile US, Inc., conservative financial policies including lower financial leverage post-sale, a resilient business model, and a strong liquidity profile. For year-end 2025, Moody's projects total debt-to-EBITDA (inclusive of Moody's adjustments) to be approximately 2.2x, compared to 3.6x for the LTM period ending March 31, 2025. RATINGS RATIONALE TDS's Ba1 CFR reflects the company's ownership of high-quality infrastructure assets, adherence to conservative financial policies, strong liquidity, predictable revenue streams, and moderate leverage. Pro forma for the sale of its wireless operations to T-Mobile US, Inc., TDS directly and through its 83% ownership in Array, will retain three resilient business segments: (i) a telecom division with 1.8 million passings, offering broadband, video, and voice services across 31 states; (ii) a wireless tower portfolio comprising over 4,400 towers, positioning it as the fifth-largest tower operator in the US; and (iii) minority interests in wireless partnerships with Verizon and AT&T, which generate approximately $150 million in annual cash distributions to Array. Collectively, Moody's expects these businesses to grow at a compound annual rate of approximately 3%, generating around $1.3 billion in revenue and more than $600 million in EBITDA. TDS's credit profile is further supported by a robust liquidity position, with projected consolidated cash balances exceeding $2 billion by 2026, although a portion of this liquidity will be allocated to fund the company's elevated capital expenditure program. At the same time, the rating reflects certain credit constraints, including (i) TDS's smaller scale relative to national telecom, cable, and tower peers, and (ii) execution risk associated with its ambitious fiber expansion strategy. Within the next five years, the company aims to increase passings to over 2.3 million with at least 80% of passing served by fiber. Moody's expects TDS to maintain very good liquidity over the next year. TDS's consolidated liquidity position is supported by Moody's expectations for more than $2.5 billion in cash (pro forma for the close of the T-Mobile transaction and net cash proceeds from the sale of spectrum to AT&T and Verizon), and full availability under the company's $400 million revolving credit facility now expiring in April 2026. In addition, Array, also maintains its own $300 million revolving credit facility. This facility, which remains undrawn expires in April 2026. The TDS and Array revolving credit facilities are governed by a maximum net debt-to-EBITDA ratio of 3.5x and a minimum consolidated EBITDA-to-Interest Expense of no less than 3.0x. For the next twelve to eighteen months Moody's projects both entities will remain in compliance with ample headroom under their covenant compliance calculation. The Ba2 rating on the senior unsecured debt at TDS's 83% owned operating subsidiary, Array, is one notch below TDS's Ba1 CFR. The Ba2 rating on the senior unsecured notes of Array reflects the subordination of these notes to the unsecured revolver and any future term loans at Array, which benefits from guarantees from the material operating subsidiaries of Array. The unsecured notes of Array do not benefit from any guarantees from TDS. The Ba3 rating on TDS's cumulative redeemable perpetual preferred stock reflects its junior position in the capital structure and is two notches below the CFR. The stable outlook reflects Moody's expectations that over the next 12 to 18 months, TDS will grow revenue modestly, generate strong operating margins, have very good liquidity, and maintain conservative financial policies. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if TDS achieves greater scale and sustained revenue growth, maintains very good liquidity, total debt-to-EBITDA (Moody's adjusted) is sustained below 2.5x, and free cash flow-to-debt is at least in the high single-digits. The ratings could be downgraded if the company's operating performance deteriorates, liquidity materially weakens, total debt-to-EBITDA (Moody's adjusted) is sustained above 3.5x , or free cash flow remains negative for sustained period of time. Headquartered in Chicago, Illinois, Telephone and Data Systems, Inc. (TDS) is a diversified telecommunications company with approximately 1.1 million wireline and cable connections in 31 states within the US. TDS, through its 83% owned subsidiary, Array Digital Infrastructure, Inc. (Array) owns and operates more than 4,400 communications towers providing service to AT&T, T-Mobile and Verizon, under long term lease agreements ranging from 5 to 15 years. The principal methodology used in these ratings was Telecommunications Service Providers published in November 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. TRANSOCEAN LTD: Net Loss Widens to $938M in Fiscal Q2 ----------------------------------------------------- Transocean Ltd. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $938 million for the three months ended June 30, 2025, compared to a net loss of $123 million for the three months ended June 30, 2024. For the six months ended June 30, 2025, the Company reported a net loss of $1 billion, compared to a net loss of $25 million for the same period in 2024. The Company had an accumulated deficit of $5.6 billion as of June 30, 2025. As of June 30, 2025, the Company had $17.8 billion in total assets, $6.9 billion in total long-term liabilities, and $9.4 billion in total equity. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/2wfh7vcf About Transocean Transocean Ltd. is an international provider of offshore contract drilling services for oil and gas wells. The Company specializes in technically demanding sectors of the offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services. As of Feb. 14, 2024, the Company owned or had partial ownership interests in and operated 37 mobile offshore drilling units, consisting of 28 ultra-deepwater floaters and nine harsh environment floaters. Additionally, as of Feb. 14, 2024, the Company was constructing one ultra-deepwater drillship. Transocean reported a net loss of $954 million in 2023, a net loss of $621 million in 2022, and a net loss of $591 million in 2021. As of June 30, 2024, Transocean Ltd. had $20.33 billion in total assets, $1.57 billion in total current liabilities, $8.04 billion in total long-term liabilities, and $10.71 billion in total equity. * * * Egan-Jones Ratings Company on January 21, 2025, maintained its 'CCC-' foreign currency and local currency senior unsecured ratings on debt issued by Transocean Ltd. In May 2025, S&P Global Ratings affirmed its ratings on offshore drilling contractor Transocean Ltd., including the 'CCC+' issuer credit rating and revised the outlook to negative from stable. TRIPLE L TRANSPORT: Hires KC Cohen Lawyer PC as Counsel ------------------------------------------------------- Triple L Transport, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Indiana to employ KC Cohen, Lawyer, PC as counsel. The firm will render these services: (a) advise the Debtor with respect to its duties, powers, and responsibilities in this case; (b) investigate and pursue any actions on behalf of the estate in order to recover assets for or best enable this estate to reorganize fairly; (c) represent the Debtor in these proceedings in an effort to maximize the value of the assets available herein, and to pursue confirmation of a successful Plan of Reorganization; and (d) perform such other legal services as may be required and in the interest of the estate herein. The firm will be paid at these rates: Christopher McElwee, Attorney $300 per hour Nicholas Wildeman, Attorney $200 per hour Michele Jennings, Paralegal $100 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. KC Cohen, Esq., 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: KC Cohen, Esq. KC Cohen, Lawyer, PC 1915 Broad Ripple Ave. Indianapolis, IN 46220 Telephone: (317) 715-1845 Facsimile: (317) 636-8686 Email: kc@smallbusiness11.com About Triple L Transport, LLC Triple L Transport LLC is a specialized freight trucking company based in Greenfield, Indiana that likely provides transportation services for specialized cargo requiring dedicated equipment or handling. Operating in the transportation industry with NAICS code 4842 (Specialized Freight Trucking), the company appears to maintain a fleet that includes Freightliner and Peterbilt trucks for its freight operations. Triple L Transport LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind.Case No. 25-03729) on June 26, 2025. In its petition, the Debtor reports estimated assets between $500,000 and $1 million and estimated liabilities up to $50,000. Judge Andrea K. Mccord handles the case. The Debtor is represented by KC Cohen, Esq. at Kc Cohen, Lawyer, PC. TRIPLE T & COMPANY: Kristofor Sodergren Named Subchapter V Trustee ------------------------------------------------------------------ J. Thomas Corbett, the U.S. Bankruptcy Administrator for the Northern District of Alabama, appointed Kristofor Sodergren of Rosen Hardwood, P.A. as Subchapter V Trustee for Triple T & Company, LLC. Mr. Sodergren will be paid an hourly fee of $350 and will receive reimbursement for work-related expenses. Mr. Sodergren declared in a verified statement that he is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Kristofor D. Sodergren Rosen Hardwood, P.A. 2200 Jack Warner Parkway, Suite 200 Post Office Box 2727 Tuscaloosa, Alabama 35401 Telephone: (205) 344-5000 Email: ksodergren@rosenharwood.com About Triple T & Company Triple T & Company, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ala. Case No. 25-71066) on August 8, 2025, with $100,001 to $500,000 in assets and liabilities. Judge Jennifer H. Henderson presides over the case. Robert C. Keller, Esq. at Russo, White & Keller represents the Debtor as legal counsel. TRUDELL DOCTOR: Hires Accounting Specialty as Accountant -------------------------------------------------------- Trudell Doctor, MD and Associates, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Accounting Specialty Group LLC as accountant. The firm will assist the Debtor with bookkeeping, payroll, payment of bills, and other regular monthly operations. The firm will be paid a weekly fee of $595. In addition, the firm will be paid $95 per month for QuickBooks Online Software licensing. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. 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: Robert S. Haugh Accounting Specialty Group LLC 2424 North Federal Highway Suite 411 Boca Raton, FL 33431 Tel: (561) 843-0219 E-mail: brobert@asgtax.com About Trudell Doctor, MD and Associates, LLC Trudell Doctor, MD and Associates, LLC is a family medicine clinic based in Boynton Beach, Florida. It provides primary care services to patients aged 16 and older, including in-person and telehealth visits. The practice offers treatments in women's health, hormone therapy, geriatric and adult medicine, sports medicine, and aesthetics. Trudell sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-16054) on May 5, 2025. In its petition, the Debtor reported total assets of $540,710 and total liabilities of $1,066,428. Judge Erik P. Kimball handles the case. The Debtor is represented by Alan R Crane, Esq., at Furr & Cohen. UGLYDUCKLINGRENO LLC: U.S. Trustee Unable to Appoint Committee -------------------------------------------------------------- The U.S. Trustee for Region 21, until further notice, will not appoint an official committee of unsecured creditors in the Chapter 11 case of UglyDucklingReno LLC, according to court dockets. About UglyDucklingReno LLC UglyDucklingReno, LLC sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-30662) on July 14, 2025, listing $100,001 to $500,000 in both assets and liabilities. Judge Karen K Specie presides over the case. Byron Wright, III, Esq., at Bruner Wright, P.A. represents the Debtor as legal counsel. UNITED PROPERTY: Section 341(a) Meeting of Creditors on September 3 ------------------------------------------------------------------- On August 11, 2025, United Property Maintenance Corporation filed Chapter 11 protection in the Central District of California. According to court filing, the Debtor reports $2,271,035 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on September 3, 2025 at 09:30 AM at UST-SA2, TELEPHONIC MEETING. CONFERENCE LINE:1-888-330-1716, PARTICIPANT CODE:5453743. About United Property Maintenance Corporation United Property Maintenance Corporation, doing business as California Construction Superior, provides residential and commercial water damage restoration services in San Diego County, California. The Company offers 24/7 emergency flood response, water extraction, drying, mold prevention, and full-service rebuilding of damaged areas including drywall, paint, and cabinetry. Its operations include certified technicians, insurance consultations, and the use of specialized equipment and virtual project tracking technology. United Property Maintenance Corporation sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-12226) on August 11, 2025. In its petition, the Debtor reports total assets of $470,779 and total liabilities of $2,271,035. Honorable Bankruptcy Judge Mark D. Houle handles the case. The Debtor is represented by David A. Wood, Esq. at MARSHACK HAYS WOOD LLP. V820JACKSON LLC: Strategic Unsecured Creditors to Get 80% in Plan ----------------------------------------------------------------- V820Jackson, LLC filed with the U.S. Bankruptcy Court for the Northern District of Illinois a Disclosure Statement describing Plan of Reorganization dated August 10, 2025. V820 is an Illinois limited liability company organized on August 24, 2015. The sole member of V820 is AV Wheaton Town Square I, LLC, a Delaware limited liability company. The sole manager of this manager-managed limited liability company is Andrew P. Vaccaro. V820 is engaged in leasing and otherwise commercializing the real property commonly known as 820 West Jackson, Chicago, Illinois 60607 ("Property") pursuant to a 99- year Ground Lease for the Property dated December 7, 2016 (the "Lease"). The Lessor under the terms of the Lease is 820 W. Jackson, LLC, an affiliate of Marc Realty. The term of the Plan shall not exceed a period of five years (except for payments pursuant to a longer period as specified by the contract between the creditor and Debtor). Under the Plan, the Debtor seeks to liquidate its non-exempt assets (i.e. the Property) and use its future earnings if necessary to pay debts in accordance with the Plan. The Debtor shall distribute all payments required by the Plan to creditors of the Debtor according to the priorities set forth in the Bankruptcy Code and as set forth in the Plan. Class IV Claims shall be the allowed Unsecured Claims of the Strategic Creditors. The claim of the Strategic Creditors will be paid from the revenues of the Debtor and from proceeds of the Second DIP Loan in an amount equal to eighty percent of each claimant's Allowed Claim on or before one year from the Effective Date. This Class is impaired. Class V Claims shall be the allowed Unsecured Claim of the Non Strategic Creditors. The claim of the Non-Strategic Creditors will be paid from the revenues of the Debtor in an amount equal to fifteen percent of each claimant's Allowed Claim on or before 4 years from the Effective Date, in equal amounts in the second, third and fourth years from the Effective Date. This Class is impaired. Through this Plan, the Debtor proposes to pay its creditors on their respective allowed claims from a number of sources. Those sources include the following: (a) V820 obtaining on or before September 30, 2025, subject to and conditioned on approval of the Bankruptcy Court pursuant to Section 364 of the Bankruptcy Code, "debtor in possession" financing sufficient in amount to satisfy all pre- and post-petition arrearages under the terms of the Lease ("First DIP Loan"); (b) V820 obtaining on or before November 30, 2025, subject to and conditioned on approval of the Court pursuant to Section 364 of the Bankruptcy Code, "debtor in possession" financing sufficient in amount to pay the Huntington Bank a sum that Huntington Bank will accept to release its claim, but less than the full amount owed to Huntington Bank, and to satisfy any outstanding administrative claims and Priority Claims against the Debtor ("Second DIP Financing"); and (c) the revenues of the Debtor. The sole member of V820, AV Wheaton Town Square I, LLC, shall sell, transfer and assign all of the membership interests that it owns in the Debtor to New Owner. The New Owner or its affiliate(s) will be the obligor(s) on the First DIP Loan and the Second DIP Loan, and will guaranty all payments under the terms of the Plan. A full-text copy of the Disclosure Statement dated August 10, 2025 is available at https://urlcurt.com/u?l=Hx1clZ from PacerMonitor.com at no charge. Counsel to the Debtor: Ariel Weissberg, Esq. Weissberg and Associates Ltd. 125 South Wacker Drive, Suite 300 Chicago, IL 60606 Tel: (312) 663-0004 Fax: (312) 663-1514 Email: ariel@weissberglaw.com About V820Jackson, LLC V820Jackson, LLC is classified as a single-asset real estate debtor under the definition set forth in Section 101(51B) of the U.S. Bankruptcy Code. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-07228) on May 12, 2025. In the petition signed by Andrew P. Vaccaro, manager, the Debtor disclosed up to $10 million in assets and up to $50 million in liabilities. Judge Michael B .Slade oversees the case. Ariel Weissberg, Esq., at Weissberg and Associates, Ltd., represents the Debtor as legal counsel. VESTTOO LTD: Aon PLC Blamed for Company's Collapse -------------------------------------------------- Jonathan Randles of Bloomberg News reports that a civil lawsuit accuses insurance broker Aon Plc of playing a role in the collapse of Vesttoo Ltd., a former $1 billion Israeli insurance startup that went bankrupt after admitting key business documents had been falsified. Filed by the trustee seeking to recover funds for Vesttoo's creditors, the complaint—unsealed Wednesday, August 13, 2025, in Delaware bankruptcy court—claims Aon "ignored red flag" involving letters of credit and urged counterparties to work with Vesttoo despite voicing internal concerns about the company, according to Bloomberg News. About Vesttoo Ltd Vesttoo Ltd. is a technology-driven collateralized reinsurance provider in Tel Aviv, Israel. It connects the insurance industry with the capital markets by combining AI-powered technology with expertise in data science, insurance and finance. Vesttoo and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. (Lead Case No. 23-11160) on August 14 and 15, 2023. The Honorable Bankruptcy Judge Mary F. Walrath oversees the case. The Debtors tapped DLA Piper, LLP (US) as legal counsel and Kroll, LLC as financial advisor. Epiq Corporate Restructuring, LLC is the claims and administrative agent. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. The committee tapped Greenberg Traurig, LLP as legal counsel and Alvarez & Marsal North America, LLC as financial advisor. VILLAGES HEALTH: U.S. Trustee Appoints Suzanne Richards as PCO -------------------------------------------------------------- Mary Ida Townson, the U.S. Trustee for Region 21, appointed Suzanne Richards at SMR Healthcare Management, Inc. as patient care ombudsman for The Villages Health System, LLC. The appointment was made pursuant to the order from the U.S. Bankruptcy Court for the Middle District of Florida on August 1. Ms. Richards disclosed in a court filing that she is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. In accordance with Section 333(b), the Patient Care Ombudsman shall: * monitor the quality of patient care provided to patients of the debtor, to the extent necessary under the circumstances, including interviewing patients and physicians; * not later than 60 days after the date of this appointment, and not less frequently than at 60-day intervals thereafter, report to the Court after notice to the parties in interest, at a hearing or in writing, regarding the quality of patient care provided to patients of the debtor; and * if such ombudsman determines that the quality of patient care provided to patients of the debtor is declining significantly or is otherwise being materially compromised, file with the Court a motion or a written report, with notice to the parties in interest immediately upon making such determination. The ombudsman may be reached at: Suzanne Richards, MBA, FACHE SMR Healthcare Management, Inc. 4528 Dean Martin Drive, Unit 2308 Las Vegas, Nevada 89103 Phone: (714) 290-6226 About The Villages Health System The Villages Health System, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 6:25-bk-04156) on July 3, 2025. In the petition signed by Neil F. Luria, chief restructuring officer, the Debtor disclosed listed between $50 million and $100 million in assets and between $100 million and $500 million in liabilities. Judge Lori V. Vaughan oversees the case. Elizabeth A. Green, Esq., at Baker & Hostetler, LLP, represents the Debtor as legal counsel. VISION2SYSTEMS LLC: Unsecureds' Recovery "Unknown" in Plan ---------------------------------------------------------- Vision2Systems LLC filed with the U.S. Bankruptcy Court for the Northern District of Texas a Disclosure Statement in support of Plan of Liquidation dated August 11, 2025. The Debtor is a Texas limited liability company formed in 2012. Paul Baldwin has served as a Manager of the Debtor since its formation in 2012. The Debtor was created, in connection with Saddleback Valley Community Church, to assist churches to enable a ministry-first approach to stewardship and generosity and to acquire, own, hold, license, operate, market, manage, sell or otherwise develop intellectual property, including, without limitation, computer technology for use by non-profit organizations and churches for the specific use of offering online giving services to their supporters. The primary purpose of the Plan is to facilitate the resolution and treatment of outstanding Claims, Liens, and Equity Interests. The Plan contemplates payment of the Principals Settlement Amount to fund priority, administrative, and secured claims. Insider Claims and Equity Interests will receive no distribution under the Plan. Class 3 consists of Allowed Unsecured Claims Against the Debtor not placed in any other Class. Except to the extent that a holder of an Allowed Class 3 Claim and the Debtor or Post-Confirmation Debtor agree to different treatment, each holder of an Allowed Class 3 Claim shall receive, in full and final satisfaction of such claim, (i) its Pro Rata share of the Initial GUC Distribution Amount and, (ii) to the extent such holder of an Allowed Class 3 Claim does not opt out of the releases granted pursuant to Section 11.7 of the Plan, its Pro Rata share of the GUC Settlement Distribution Amount. The allowed unsecured claims total $6.1 Million. Class 3 is impaired. The estimated recovery for General Unsecured Claims is "unknown", according to the Disclosure Statement. Class 5 consists of the Equity Interests in Vision2Systems. The Equity Interests in Vision2Systems shall be cancelled as of the Effective Date. On or immediately after the Effective Date, the Post-Confirmation Debtor shall distribute the FBO Funds in their entirety from each FBO account to the designated church that corresponds to each respective FBO account label. Pursuant to Bankruptcy Rule 9019, the Plan does, and shall, constitute a compromise, settlement and release of all potential claims against Balwin and Tierney. Entry of the Confirmation Order shall constitute approval of the Principals Settlement, which shall become effective upon the Effective Date. On or after the Effective Date, the PostConfirmation Debtor will take such actions as may be necessary or appropriate to wind down, dissolve, or otherwise terminate the corporate existence of the Post-Confirmation Debtor. After the Effective Date, Paul Baldwin shall continue to serve as an authorized representative of the Post-Confirmation Debtor to carry-out the wind down of the Post Confirmation Debtor. A full-text copy of the Disclosure Statement dated August 11, 2025 is available at https://urlcurt.com/u?l=osrFX3 from PacerMonitor.com at no charge. Vision2Systems LLC is represented by: Jason P. Kathman, Esq. Camber M. Jones, Esq. Alex S. Anderson, Esq. Spencer Fane LLP 5700 Granite Parkway, Suite 650 Plano, TX 75024 Tel: (972) 324-0300 Fax: (972) 324-0301 Email: jkathman@spencerfane.com Email: cjones@spencerfane.com Email: alanderson@spencerfane.com About Vision2systems LLC Vision2Systems LLC founded in 2012, is a software company based in Dallas, Texas, that provides online giving and membership management platforms tailored for churches. The platform offers solutions for accounting, donations, event planning, and overall church management. Vision2Systems LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40583) on Feb. 19, 2025. In its petition, the Debtor estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Jason P. Kathman, Esq., at SPENCER FANE. VOIP-PAL.COM: Reports $188K Profit in Fiscal Q2 ----------------------------------------------- VoIP-PAL.com Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q for the quarterly period ended: June 30, 2025. The Company reported a net profit of $188,187 for the three months ending June 30, 2025 compared to a net loss of $3,601,629 for the same period in 2024. The decrease in net loss of $3,789,816, or 105% less than the same period in 2024, was primarily due to a decrease in officers and directors' fees, legal fees and professional fees and services. The Company reported a net loss of $1,722,879 for the nine months ended June 30, 2025 compared to a net loss of $6,836,602 for the same period in 2024. The decrease in net loss of $5,113,723, or 75% less than same period in 2024 was due primarily to a decrease in officers and directors' fees, legal fees and professional fees and services. As of June 30, 2025, the Company had an accumulated deficit of $105,080,661 as compared to an accumulated deficit of $103,357,782 at September 30, 2024. As of June 30, 2025, the Company had a working capital of $1,137,228 as compared to a working capital of $2,158,351 at September 30, 2024. The decrease in the Company's working capital of $1,021,123 due to ongoing operating expenses during the period. Net cash used by operations for the nine months ending June 30, 2025 and 2024 was $1,407,716 and $1,728,974 respectively. The decrease in net cash used for operations for the nine months ending June 30, 2025 as compared to the nine months ending June 30, 2024 was primarily due to a decrease in net loss. Net cash used in investing activities for the nine months ending June 30, 2025 and 2024 was $Nil and $Nil, respectively. Net cash provided from financing activities for the nine months ending June 30, 2025 and 2024 was $205,000 and $2,278,875, respectively. The decrease in net cash provided by financing activities of $2,073,875 was due to lower amounts of equity raised and cash proceeds from private placements during the nine months ending June 30, 2025 compared with $2,425,875 of equity raised and cash proceeds from private placements during the nine months ending June 30, 2024. Liquidity: The Company primarily finances its operations from cash received through the private placement of its common stock, settling outstanding debts, and the exercise of warrants from investors. There can be no assurance that capital will be available as necessary to meet continued developments and operating costs or, if the capital is available, that it will be on terms acceptable to the Company. As at June 30, 2025, the Company had cash of $1,166,697 and current liabilities of $150,487 and incurred net loss of $1,722,879 during the nine month period ended June 30, 2025; accordingly the Company will require additional capital to fund its operations for the next 12 months. As of June 30, 2025, the Company had $1,287,715 in total assets, $150,487 in total liabilities, and $1,137,228 in total equity. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/m4su8dvr About VoIP-PAL.com Inc. Since March 2004, VoIP-PAL.com Inc. has been in the development stage of becoming a Voice-over-Internet Protocol ("VoIP") re-seller, a provider of a proprietary transactional billion platform tailored to the points and air mile business, and a provider of anti-virus applications for smartphones. All business activities prior to March 2004 have been abandoned and written off to deficit. Vancouver, Canada-based Davidson & Company LLP, the Company's auditor since 2015, issued a "going concern" qualification in its report dated Dec. 23, 2024, citing that the Company is in various stages of product development and continues to incur losses and, as at Sept. 30, 2024, had an accumulated deficit of $103,357,782 (Sept. 30, 2023 - $93,185,588). These material uncertainties raise substantial doubt about its ability to continue as a going concern. W.D. TOWNLEY: Hires Adkison Law Firm as Special Counsel ------------------------------------------------------- W.D. Townley and Son Lumber Company, Inc. and affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Adkison Law Firm as special litigation counsel. The firm will provide legal representation to the Debtor, Townley Pallet Manufacturing, LLC with respect to a claim for damages against North American Company for Life and Health Insurance with respect to a $3,000,000 Flexible Premium Adjustable Universal Life Insurance Policy issued to Townley Pallet on the life of Jay Townley who was then employed by the Debtors The firm will be compensated on a contingency fee basis of 40 percent of the gross monetary or non-monetary recovery unless notice of appeal is filed; and 45 percent of the gross monetary or non-monetary recovery if notice of appeal or bond is filed by either party. Ron Adkison, Esq., a partner at Adkison Law Firm, 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: Ron Adkison Adkison Law Firm 11 E Adams St #1000 Chicago, IL 60603 Tel: (312) 346-1186 About W.D. Townley and Son Lumber Company, Inc. W.D. Townley and Son Lumber Company Inc. and affiliates operate a lumber milling business. Townley Lumber processes lumber used for pallet construction. TPM owns the property where the milling operations take place. TLC Transportation transports pallets in truckloads to customer locations. W.D. Townley and Son Lumber Company Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-41053) on March 26, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Edward L. Morris handles the case. The Debtor is represented by Joseph Fredrick Postnikoff, Esq. at ROCHELLE McCULLOGH, LLP. W.R. GRACE: Moody's Rates New $500MM Senior Secured Notes 'B2' -------------------------------------------------------------- Moody's Ratings has assigned a B2 rating to W.R. Grace Holdings LLC's (Grace) new $500 million senior secured notes due 2032. Proceeds from these notes along with the $500 million senior secured term loan due 2032 and a $250 equity contribution will be used to repay its first-lien term loan B due 2028 along with a portion of outstanding revolver borrowings. Grace's B3 Corporate Family Rating ("CFR"), B3-PD Probability of Default rating ("PDR") and Caa2 unsecured notes rating remain unchanged. The outlook is stable. RATINGS RATIONALE The B2 rating on the senior secured notes is one notch above the B3 CFR and the same as Grace's first lien term loan and revolving credit facility. The ratings on Grace's first lien term loan, first lien senior secured revolving credit facility, and the senior secured notes reflect their first lien position on substantially all assets and priority ranking in the event of default. The company's debt structure also includes its Caa2 rated senior unsecured notes, which is two notches below the CFR and indicates their deep subordination as a result of the significant amount of first lien debt in the capital structure. Grace's B3 CFR reflects its elevated leverage metrics and weak cash flow profile despite its market leadership and good profit margins. Standard Industries' equity contribution will improve the company's capital structure and reduce its annual interest payments. While the company has well established, leading market positions in specialized catalysts and materials industries, weak demand from polyolefin customers, price competition, weak demand out of China, and trade uncertainty dampened earnings in 1H2025. Moody's expects customer destocking and subdued demand will weigh on Grace's earnings in 2025, though some of the pressure will be mitigated by the company's Enterprise Improvement Program. For a more detailed discussion of Grace's ratings, please refer to the previous press release published on Aug 5, 2025. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING An upgrade is unlikely at this time, but Moody's could upgrade the rating with expectations for adjusted financial leverage sustained below 5.5x (Debt/EBITDA), retained cash flow-to-debt sustained above 10% (RCF/Debt) and more balanced financial policies that include gross debt reduction and a commitment from its owners to a more conservative financial policy. An upgrade would also assume a reduction in event risk such that the size of future acquisitions would not raise pro forma leverage meaningfully above 5.5x for a sustained period. Moody's could downgrade the rating with expectations of adjusted financial leverage to remain above 6.5x through the cycle, a significant deterioration in the company's liquidity position, or a large debt-financed acquisition or dividend to shareholders. Headquartered in Columbia, MD, W.R. Grace Holdings LLC, a Standard Industries company, is a leading global manufacturer of specialty chemicals and materials operating and/or selling in over 60 countries. The company has two reporting segments: Catalysts Technologies and Materials Technologies. Catalysts Technologies is a globally diversified business that includes refining, polyolefin and chemicals catalysts. Materials Technologies includes specialty materials such as silica-based and silica-alumina-based materials used in consumer/pharmaceutical, chemical processes and coatings applications. On April 26, 2021, W.R. Grace agreed to be acquired by Standard Industries Inc. (formerly Standard Industries Holdings Inc.) for $7.0 billion. The principal methodology used in this rating was Chemicals published in October 2023. WA3 PROPERTIES: Seeks to Hire Wipfli LLP as Expert Witness ---------------------------------------------------------- WA3 Properties Renton LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Eastern District of New York to employ Wipfli LLP as expert witness. The firm will testify as to the value of the Debtors' tenants' business to support the Debtors' position in the sale process. The firm will be paid based upon its normal and usual hourly billing rates. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The firm will be paid a retainer in the amount of $10,000. As disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Wipfli LLP 7733 Forsyth Blvd 1200 St. Louis, MO 63105 Tel: (862-2070 About WA3 Properties Renton, LLC WA3 Properties Renton, LLC owns a 99-bed skilled nursing facility at 80 SW 2nd Street, Renton, Wash., in fee simple title, with a valuation of $10 million. WA3 filed Chapter 11 petition (Bankr. E.D. N.Y. Case No. 25-71121) on March 24, 2025, listing $11,887,584 in assets and $8,129,000 in liabilities. Samuel Goldner, manager of WA3, signed the petition. Judge Louis A. Scarcella oversees the case. Avrum J. Rosen, Esq., at Law Offices of Avrum J. Rosen, PLLC represents the Debtor as bankruptcy counsel. WALKER COUNTY: To Sell Claims to RC Mid-America for $20K -------------------------------------------------------- Walker County Hospital Corporation d/b/a Huntsville Memorial Hospital seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, to sell Property, free and clear of liens, claims, interests, and encumbrances. The Debtor holds certain claims related to and/or established in connection with that certain class action proceeding against Blue Cross Blue Shield Association and its members. An official committee of unsecured creditors (Committee) has been appointed in this Chapter 11 Case. The Debtor sought to sell the Claims and marketed them to potential buyers. As a result of the Debtor's efforts, the Debtor received and vetted various offers for the purchase of the Claims, with the highest offer received being from the Purchaser, RC Mid-America Liquidators LLC, with the purchase price of $20,300.00. The Debtor accepted the Purchaser's offer and has entered into the Purchase Agreement with the Purchaser, pursuant to which Debtor will sell to the Purchaser all of Debtor's Claims related to and/or established in connection with the Class Action Case. As agreed to between the parties in the Purchase Agreement, the Purchaser will pay to the Debtor a total purchase price of $20,300.00. The Committee was previously notified of the Purchase Agreement and the Motion and supports the approval of the Purchase Agreement. About Walker County Hospital Corporation Walker County Hospital Corporation, doing business as Huntsville Memorial Hospital -- https://www.huntsvillememorial.com/ -- operates a community hospital located in Huntsville, Texas. It is the sole member of its non-debtor affiliate, HMH Physician Organization. Founded in 1927, the Facility provides health care services to the residents of Walker County and its surrounding communities. Walker County Hospital Corporation sought Chapter 11 protection (Bankr. S.D. Texas Case No. 19-36300) on November 11, 2019, in Houston. At the time of filing, the Debtor listed as much as $50 million in both assets and liabilities. Steven Smith, chief executive officer, signed the petition. The Honorable David R. Jones is the case judge. The Debtor tapped Holland & Knight LLP as bankruptcy counsel; Healthcare Management Partners, LLC as financial and restructuring advisor; Bharat Capital, LLC as financial consultant; and Epiq Corporate Restructuring, LLC as notice and claims agent. The Office of the U.S. Trustee appointed an official committee of unsecured creditors on Nov. 23, 2019. The committee tapped Arent Fox LLP as legal counsel, Gray Reed & McGraw LLP as local counsel, and FTI Consulting, Inc. as financial advisor. WATER'S EDGE: Hires Tyburski Appraisal as Real Estate Appraiser --------------------------------------------------------------- Water's Edge Limited Partnership seeks approval from the U.S. Bankruptcy Court for the District of Massachusetts to hire Tyburski Appraisal Corporation to serve as its real estate appraiser and expert witness. The firm will provide these services: (a) inspect the Properties and review public records regarding the Properties; (b) prepare an appraisal report including an estimation of the Properties' values in connection with the Debtor's challenges to the City of Revere's assessments for Fiscal Years 2022, 2023 and 2025; and (c) testify as an expert in court, in deposition or otherwise regarding its opinion. Tyburski will be paid a flat fee of $17,600 divided between Phase I and Phase II for preparation of the appraisal. Expert witness services will be billed separately at $175 per hour. The firm will receive a $4,000 retainer, with the balance of the flat fee payable upon satisfactory completion of the appraisal without further Court authority. Tyburski 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: Tyburski Appraisal Corporation 89 Summer Street Hingham, MA 02043 Telephone: (781) 749-0700 Facsimile: (781) 749-4470 About Water's Edge Limited Partnership Water's Edge Limited Partnership is primarily engaged in renting and leasing real estate properties. Water's Edge Limited Partnership sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 24-12445) on December 5, 2024. In the petition filed by Evelyn M. Carabetta, authorized representative, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Honorable Bankruptcy Judge Christopher J. Panos handles the case. The Debtor tapped David Frye, Esq., at Russo, Frye & Associates, LLP as counsel; Verdolino & Lowey, PC as financial advisor; and Bradford Carlson at Gray, Gray & Gray, LLP as accountant. WELLPATH HOLDINGS: Slotcavage Case Dismissed Without Prejudice -------------------------------------------------------------- Judge Susan Paradise Baxter of the United States District Court for the Western District of Pennsylvania declined Chief United States Magistrate Judge Richard A. Lanzillo's report and recommendation insofar as it recommends that the case captioned as KEITH SLOTCAVAGE, Plaintiff, v. WELLPATH HEALTHCARE, et al., Defendants, Case No. 23-cv-00325 (W.D. Pa.). be dismissed, with prejudice, for failure to state a claim under 28 U.S.C. Sec. 1915(e), as the Court finds that plaintiff's allegations may plausibly state an Eighth Amendment claim. However, the R&R is adopted insofar as this case is dismissed, without prejudice, for plaintiff's failure to prosecute pursuant to Federal Rule of Civil Procedure 41(b). Plaintiff Keith Slotcavage, an inmate incarcerated at the State Correctional Institution at Forest in Marienville, Pennsylvania, initiated this pro se civil rights action on Nov. 17, 2023, by lodging a complaint without paying the filing fee or submitting a motion to proceed in forma pauperis. The matter was referred Judge Lanzillo for report and recommendation in accordance with the Magistrates Act, 28 U.S.C. Sec. 636(b)(1), and Rules 72.1.3 and 72.1.4 of the Local Rules for Magistrates. Plaintiff subsequently filed an IFP motion on Dec., 2023, which was denied without prejudice. He filed a second IFP motion on April 9, 2024. This IFP motion was ultimately granted on Nov. 12, 2024, at which time Plaintiff's complaint was docketed. On Aug. 26, 2024, before the complaint was docketed, Chief Magistrate Judge Lanzillo issued an Order pursuant to the Court's screening provisions under 28 U.S.C. Sec. 1915(e), directing Plaintiff to file an amended complaint by Sept. 27, 2024, because the original complaint lodged with the Court failed to state the personal involvement of either of the two Defendants named in the caption of the complaint: Wellpath Healthcare and Jana Smith, identified as the "Registered Nurse Supervisor." Plaintiff failed to file an amended complaint as directed. As a result, in conjunction with the docketing of the complaint, Judge Lanzillo issued an Order requiring Plaintiff to show cause for his failure to file an amended complaint and/or to file the amendment by December 6, 2024. However, this case was subsequently stayed by Order dated November 18, 2024, due to Wellpath's filing for relief under Chapter 11 of the United States Bankruptcy Code. On June 2, 2025, Chief Magistrate Judge Lanzillo issued an Order lifting the stay and directing Plaintiff to file the previously required amended complaint by June 23, 2025. Once again, Plaintiff failed to file an amended complaint in compliance with Judge Lanzillo's Order. On July 14, 2025, Judge Lanzillo issued a Report and Recommendation ("R&R"), recommending dismissal of this case, with prejudice, under the screening provisions of 28 U.S.C. Sec. 1915(e) for failure to state a claim upon which relief may be granted, or in the alternative, for dismissal, without prejudice, for Plaintiff's failure to prosecute pursuant to Federal Rule of Civil Procedure 41(b). Objections to the R&R were due to be filed by July 31, 2025. However, no timely objections have been received by the Court. A copy of the Court's Memorandum Order dated August 5, 2025, is available at https://urlcurt.com/u?l=Xb0Y6M About Wellpath Holdings Wellpath Holdings, Inc., formerly known as CCS-CMGC Holdings, Inc., is a provider of medical and mental healthcare in jails, prisons, and inpatient and residential treatment facilities. Wellpath Holdings and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 24-90533) on Nov. 11, 2024. Timothy Dragelin, chief restructuring officer and chief financial officer, signed the petitions. At the time of the filing, the Debtors reported $1 billion to $10 billion in assets and liabilities. Judge Alfredo R. Perez oversees the cases. The Debtors tapped Marcus A. Helt, Esq., at McDermott Will & Emery, LLP, as bankruptcy counsel; FTI Consulting, Inc., as financial advisor; and Lazard Freres & Co., LLC and MTS Partners, LP as investment banker. WEST COUNSELING: Hires Michael T. Bowers as Accountant ------------------------------------------------------ West Counseling LLC seeks approval from the U.S. Bankruptcy Court for the Western District of North Carolina to employ Michael T. Bowers, M.B.A., J.D., C.P.A., A.B.V., as accountant. The firm will assist the Debtor with accounting matters related to the pending case. The firm will be paid at these rates: Partner $300 per hour Bookkeeper $85 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Bowers 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: Michael T. Bowers 219 Wilmot Dr. Gastonia, NC 28054 Tel: (704) 867-2394 About West Counseling LLC West Counseling, PLLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. N.C. Case No. 25-30504) on May 18, 2025. In the petition signed by Andrew West, chief executive officer, the Debtor disclosed up to $100,000 in assets and up to $500,000 in liabilities. Judge Ashley Austin Edwards oversees the case. John C. Woodman, Esq., at Essex Richards PA, represents the Debtor as legal counsel. WHITESTONE CROSSING: Hires Lain Faulkner & Co. as Accountant ------------------------------------------------------------ Whitestone Crossing Austin LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Lain, Faulkner & Co., P.C. as accountant. The firm will provide these services: a. assist in determining the assets of the bankruptcy estate and its fair value through the review of accounting related documents; b. assist in determining the claims against the bankruptcy estate; c. assist in the examination of the prepetition transactions, including without limitation the analysis of potential avoidance actions and fraudulent transfer claims; d. assist in the analysis of tax and taxation issues and in the filing of any necessary information and compliance forms regarding taxes; and e. perform all other accounting services and provide all other financial advice to the Debtor in connection with this Chapter 11 case as may be required or necessary. The firm will be paid at these rates: Directors $460 to $580 per hour Accounting Professionals $245 to $340 per hour IT Professionals $315 per hour Staff Accountants $205 to $285 per hour Clerical and Bookkeepers $95 to $140 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Kelly McCullough, a partner at Lain, Faulkner & Co., P.C., 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: Kelly McCullough, Esq. Lain, Faulkner & Co., P.C. 400 North St. Paul Street # 600 Dallas, TX 75201 Phone: (214) 720-1929 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. WI-FI WHEELING: Gets Interim OK to Use Cash Collateral Until Oct. 2 ------------------------------------------------------------------- WI-FI Wheeling Dealing, LLC received another extension from the U.S. Bankruptcy Court for the Northern District of Illinois to use cash collateral. The court's third interim order extended the Debtor's authority to use cash collateral from August 13 to October 2 to pay essential post-petition expenses such as cleaning, landscaping, and utilities. As adequate protection for the Debtor's use of their cash collateral, First Secure Community Bank and other lien claimants will be granted replacement liens on the cash collateral and all property acquired by the Debtor after its Chapter 11 filing that is similar to their pre-bankruptcy collateral. These replacement liens will have the same priority and extent as the lien claimants' pre-bankruptcy liens. In addition, the Debtor was ordered to keep its real property insured, listing First Secure Community Bank as a lienholder. The next hearing is set for September 30. First Secure Community Bank is represented by: Robert L. Dawidiuk, Esq. The Collins Law Firm, P.C. 1770 Park Street, Suite 200 Naperville, IL 60563 Telephone Number: 630-527-1595 rdawidiuk@collinslaw.com About Wi-Fi Wheeling Dealing LLC Wi-Fi Wheeling Dealing LLC is a single asset real estate entity that owns an office complex at 1400 S. Wolf Road in Wheeling, Illinois. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-10181) on July 2, 2025. In the petition signed by Isaac J. Weiss, manager, the Debtor disclosed $13 million in total assets and $9.1 million in total liabilities. Judge Donald R. Cassling oversees the case. Gregory K. Stern, Esq., at Gregory K. Stern, P.C., represents the Debtor as legal counsel. WISDOM DENTAL: Seeks Subchapter V Bankruptcy in Florida ------------------------------------------------------- On August 1, 2025, Wisdom Dental P.A. filed Chapter 11 protection in the Middle District of Florida. According to court filing, the Debtor reports $2,851,770 in debt owed to 50 and 99 creditors. The petition states funds will be available to unsecured creditors. About Wisdom Dental P.A. Wisdom Dental P.A. operates a dental clinic under the name Ave Maria Dentistry from its location in Ave Maria, Florida. The practice provides preventive, restorative, and cosmetic dental services and is led by Dr. Wisdom D. Akpaka. The company was incorporated in Florida in 2015. Wisdom Dental P.A. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-01508) on August 1, 2025. In its petition, the Debtor reports total assets of $223,970 and total liabilities of $2,851,770. Honorable Bankruptcy Judge Caryl E. Delano handles the case. The Debtor is represented by Michael Dal Lago, Esq. at DAL LAGO LAW. WORK 'N GEAR: U.S. Trustee Appoints Creditors' Committee -------------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent unsecured creditors in the Chapter 11 case of Work 'N Gear, LLC. The committee members are: 1. Carhartt, Inc. 5750 Mercury Drive Dearborn, MI 48126 Attn: Matthew Hegarty mhegarty@carhartt.com 2. Warson Group, Inc. 9200 Olive Boulevard. Suite 222 Saint Louis, MO 63132 Attn: Lisa Butler lbutler@warsonbrands.com 3. VF Outdoor. LLC dba Timberland, Williamson-Dickie 1551 Wewatta Street Denver, CO 80202 Attn: Jennifer Neal Jennifer_Neal@vfc.com 4. Wolverine World Wide, Inc. 9341 Courtland Drive Rockford, MI 49351 Attn: Greg Sorrell Greg.Sorrell@wwwinc.com 5. HH Brown Shoe Company, Inc. 124 West Putnam Ave Greenwich, CT 06830 Attn: Jason Capozza capozzaj@bhshoeholdings.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 Work 'N Gear LLC Work 'N Gear, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. N.J. Case No. 25-17472) on July 16, 2025, with up to $10 million in both assets and liabilities. Larry Nusbaum, interim president of Work 'N Gear, signed the petition. Judge Mark Edward Hall oversees the case. Eric H. Horn, Esq., at A.Y. Strauss, LLC, represents the Debtor as legal counsel. WT REPAIR: U.S. Trustee Unable to Appoint Committee --------------------------------------------------- The U.S. Trustee for Region 20 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of WT Repair, LLC. About WT Repair LLC WT Repair, LLC is an independently owned used equipment dealer and service shop based in Beloit, Kansas. It specializes in buying, selling, and servicing farm machinery, including tractors, harvesters, and used trucks. WT Repair is also a full-line dealer for Bush Hog, Farm King, MacDon, Geringhoff, Quicke, Kelly Ryan, and HyGrade. WT Repair sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Kan.) on May15, 2025, listing between $1 million and $10 million in assets and liabilities. Judge Dale L. Somers presides over the case. Colin N. Gotham at Evans & Mullinix, P.A. represents the Debtor as legal counsel. YERUSHA LLC: City of Chicago's Administrative Expense Claim Allowed ------------------------------------------------------------------- The Honorable Deborah L. Thorne of the United States Bankruptcy Court for the Northern District of Illinois granted the City of Chicago's motion for allowance of an administrative expense claim, under section 503(b)(1)(A) of the Bankruptcy Code, for post-petition municipal code violations in the bankruptcy case of Yerusha, LLC. Yerusha is in the business of purchasing and selling vacant parcels of real estate in Chicago. At the time of filing, Yerusha owned 51 vacant parcels in Chicago, Illinois. To date, three have been sold. Debtor's chapter 11 plan, which has not been confirmed, provides for distributions to the holders of allowed claims from the sale of its real estate. On June 10, 2025, Chicago filed its Motion for Allowance and Payment of Administrative Expense Claim. In the 16 months since the petition was filed, the City issued citations for 95 violations of the Municipal Code against the debtor. Of those, 70 went to a hearing. Of the 70 that were heard, 49 resulted in a fine. When the Motion was filed, the current amount due was $35,321.78. Debtor objected to allowing the claim as an administrative expense, arguing that maintaining lots that produce no income do not and cannot be beneficial to the estate. According to the Court, maintaining vacant lots, or paying the fines for their neglect, is a core aspect of a real estate investment enterprise like Yerusha's. The fact that investments turned out bad does not excuse a business from its duties. The Court emphasizes that Yerusha's properties are not just sitting empty. The vacant lots in residential neighborhoods are fostering unkempt weeds, accumulating garbage, possibly harboring rats, and therefore reducing property values, not to mention making life worse in other ways for the people who live in their vicinity. The Municipal Code sections under which Yerusha has been held liable through default or plea forty-nine times. Based on argument and pleadings, it appears Yerusha has not fixed any of the issues nor paid any fines for which it has pleaded liable, the Court recounts. Interest at 9% per year continues to accrue. According to Judge Thorne, "Fundamental fairness demands that involuntary debts for such municipal violations be treated as administrative expenses, especially because these properties are so central to this Debtor's enterprise. Yerusha argues that the lots are not necessary because they produce no income. But Yerusha has no additional assets, making property sales the only viable option for settling its obligations to creditors. Yerusha cannot make future plan payments without using the lots. Consequently, the costs of operating the lots as assets are also necessary -- whether Yerusha is paying to maintain the lots or paying the price of not maintaining them. The City has met its burden, and the municipal fines are allowed as administrative expenses." The Court finds because the claim is necessary to perform the Debtor's plan and to ensure that the Debtor cannot evade the consequences of its violations of the Municipal Code, the Motion is granted. A copy of the Court's Memorandum Opinion dated August 7, 2025, is available at https://urlcurt.com/u?l=JOCmgd from PacerMonitor.com. About Yerusha LLC Yerusha, LLC, is in the business of purchasing and selling of parcels of real estate. The Debtor filed Chapter 11 petition (Bankr. N.D. Ill. Case No.24-01640) on February 6, 2024, with $500,001 to $1 million in both assets and liabilities. Judge Deborah L. Thorne oversees the case. Paul M. Bach, Esq., at Bach Law Offices, represents the Debtor as bankruptcy counsel. ZAYO GROUP: Wins Creditor Backing to Extend Debt Maturity to 2030 ----------------------------------------------------------------- Dorothy Ma of Bloomberg Law reports that Zayo Group Holdings Inc. has struck a deal with creditors to push the fiber network company's debt maturities to 2030. In a statement Thursday, August 14, 2025, Zayo said more than 95% of holders of its outstanding term loans and secured and unsecured notes have signed a transaction support agreement. The maturity extension will be carried out through exchange offers, with further details not disclosed. Last July 2025, Bloomberg News reported Zayo was nearing a deal that would partially repay a nearly $5 billion secured loan due in 2027, while unsecured creditors would get a higher coupon in return for extending the maturity. About Zayo Holdings Inc. Zayo Group is a privately held company headquartered in Boulder, Colorado, with European headquarters in London, England. The company provides communications infrastructure services. The Troubled Company Reporter reported on May 21, 2024, that S&P Global Ratings affirmed all its ratings on U.S.-based fiber infrastructure provider Zayo Group Holdings Inc. (Zayo), including the 'B-' issuer-credit rating. [^] 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 [^] BOOK REVIEW: The Luckiest Guy in the World ---------------------------------------------- Author: Boone Pickens Publisher: Beard Books Paperback: US$34.95 Review by Gail Owens Hoelscher Buy a copy for yourself and one for a colleague on-line at: http://www.beardbooks.com/beardbooks/the_luckiest_guy_in_the_world.html "This is the story of a man who turned a $2,500 investment into America's largest independent oil company in thirty years and along the way discovered that something is terribly wrong with corporate America. Mesa Petroleum is the company, and I'm the man." Thus begins the autobiography of Boone Pickens, who prefers to be referred to without his first initial, "T." Mr. Pickens' autobiography was originally published in 1987, at the end of the rollercoaster years when he was one of the most famous (or infamous, depending on your point of view) and most-feared corporate raiders during a decade known for corporate raiding. For the 2000 Beard Books edition, Pickens wrote an additional five chapters about the subsequent, equally tumultuous, 13 years, during which time he suffered corporate raiders of his own, recapitalized, and retired, only to see his beloved company merge with Pioneer. One of his few laments is being remembered mainly for the high-profile years, rather than for the company he built from virtually nothing. Of the takeover attempts, he says: "I saw undervalued assets in the public marketplace. My game plan with Gul, Phillips, and Unocal wasn't to take on Big Oil. Hell, that wasn't my role. My role was to make money for the stockholders of Mesa. I just saw that Big Oil's management had done a lousy job for their stockholders." He would prefer to be known as a champion of the shareholder rights movement, which prompted big corporations to become more responsive to the needs and demands of their stockholders. He founded the United Shareholders Association, a group that successfully lobbied for changes in corporate governance. In a memorable interview in the May/June 1986 Harvard Business Review, Pickens said, "Chief executives, who themselves own few shares of their companies, have no more feeling for the average stockholder than they do for baboons in Africa." Boone Pickens was born in 1928 in Holdenville, Oklahoma. His grandfather was Methodist missionary to the Indians there; his father was a lawyer and small player in the oil business. People in Holdenville worked hard and used such expressions as "Root hog or die," meaning "Get in and compete or fail." The family later moved to Amarillo, Texas, where Pickens went to Texas A&M for one year, but graduated from Oklahoma State University in 1951 with a degree in geology. He worked at Phillips Petroleum for three years, and then, despite growing family obligations, struck out on his own. His wife's uncle told him, "Boone, you don't have a chance. You don't know anything." This book is a wonderful read. Pickens pulls no punches, and is as hard on himself as anyone else. He talks about proxy fights, Texas-Oklahoma football games, his three marriages, poker, takeover strategies, and unfair duck hunting practices, all in the same easy tone. You feel like he's sitting right there in the room with you. Pickens ends the introduction to this story with this: "How I got from a little town in Eastern Oklahoma to the towers of Wall Street is an exciting, unlikely, sometimes painful story. And, if you're young and restless, I'm hoping you'll make a journey similar to mine." Root hog or die! Thomas Boone Pickens Jr. -- https://boonepickens.com/ -- was an American business magnate and financier. Among his lengthy accolades, Time magazine has identified him one of it 100 most influential people, Financial World named him CEO of the Decade in 1989 and Oil and Gas Investor identified him as one of the "100 Most Influential People of the Petroleum Century." He was born in May 1928. He died September 11, 2019. ********* 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 ***