250820.mbx

250820.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, August 20, 2025, Vol. 29, No. 231 Headlines 1 WORLD: Seeks Cash Collateral Access 4 POINTS: Seeks Cash Collateral Access AGEMY FAMILY: Plan Exclusivity Period Extended to August 30 ALIREZA HORMOZI: Chapter 7 Bankruptcy Case Conversion Affirmed AMITY COURT: Court OKs Stipulation to Use Bel Red's Cash Collateral BACK DRAUGHTS: Gets Final OK to Use Cash Collateral BMI SMART: Unsecured Creditors to Split $290K over 3 Years BOWFLEX INC: Wins Bid to Enforce Chapter 11 Plan, Sale Order CALVIN1 LLC: Unsecureds to Get Share of Income for 60 Months CHARLES K. BRELAND: Court Dismisses Merchant Adversary Complaint CIRTRAN CORP: Delays Q2 10-Q Filing Due to Audit Review Delays CXOSYNC LLC: Court Extends Cash Collateral Access to Oct. 3 DATO A/C: Gets Interim OK to Use Cash Collateral Until Aug. 31 DESAI HOLDINGS: Seeks to Use Cash Collateral DRAKSIN PROPERTIES: Court Extends Cash Collateral Access to Sept. 3 EASTERN COLORADO: Seeks to Extend Plan Exclusivity to December 15 EDGE PROMO: Ciara Rogers Named Subchapter V Trustee ELETSON HOLDINGS: Quinn Emanuel Thwarts Deposition Subpoena ENI DIST: Lender Seeks to Prohibit Cash Collateral Access F.I.A. LLC: Claims to be Paid from Investment & Rental Income FLOATUS INC: Seeks 120-Day Extension of Plan Filing Deadline FTX TRADING: SPCP Group v. Svalbard Holdings, et al. Case Tossed HAVOC BREWING: Court Extends Cash Collateral Access to Sept. 16 J-K.A.B.S. TRANSPORTATION: Unsecureds Will Get 100% of Claims JAMES J. FRANK: Court Denies Confirmation of Chapter 11 Plan JONES REAL: Unsecureds to Get 50 Cents on Dollar in Plan JOSEPH FORD: TL Can't Extend Time to File Sec. 523(c) Complaint LAGUNA RESERVE: Case Summary & 30 Largest Unsecured Creditors LZA REAL PROPERTIES: Seeks Cash Collateral Access M & N STRUCTURES: Gets OK to Use Cash Collateral Until Aug. 26 MAGLEV ENERGY: Gets Extension to Access Cash Collateral MARK REAL ESTATE: UST's Motion to Dismiss Bankruptcy Case Tossed MEATHEADZ LLC: Unsecureds Will Get 25% of Claims in Plan NICK'S PIZZA: Court Extends Cash Collateral Access to Dec. 2 NLC ENERGY: Case Summary & 22 Largest Unsecured Creditors NORTH WHITEVILLE: Rebecca Redwine Grow Named Subchapter V Trustee OWL VENICE: Files Emergency Bid to Use Cash Collateral PAWLUS DENTAL: Plan Exclusivity Period Extended to August 26 PERFORMANCE MOBILE: Claims to be Paid from Ongoing Operations REDDIRT ROAD: Gets Interim OK to Use Cash Collateral SANTOPIETRO FOOD: Ciara Rogers Named Subchapter V Trustee SOLEMN INVESTMENTS: Tom Howley Named Subchapter V Trustee SYNERGY MEDICAL: Gets Extension to Access Cash Collateral TARAH THAI: Gets Final Approval to Use Cash Collateral THUNDER INTERNATIONAL: Gets Extension to Access Cash Collateral TPI COMPOSITES: Gets Interim OK to Obtain DIP Loan From Oaktree TRINITY INTEGRATED: Court Extends Cash Collateral Access to Sept. 3 UNITED PROPERTY: Mark Sharf Named Subchapter V Trustee WCB CONSTRUCTION: Unsecureds Will Get 100% of Claims in Plan WEST BRAZOS: Gets Final OK to Use Cash Collateral ********* 1 WORLD: Seeks Cash Collateral Access ------------------------------------- 1 World Globes & Maps, LLC asked the U.S. Bankruptcy Court for the Western District of Washington for authority to use cash collateral on a final basis from August 1 through October 31 or until plan confirmation. The Debtor requires access to its cash collateral, which consists of funds on hand and future receivables secured primarily by HomeStreet Bank, to continue operating the business and paying ongoing expenses as outlined in the budget. The Debtor has obtained HomeStreet Bank's consent for interim use of the cash collateral and proposed granting the bank post-petition replacement liens and adequate protection payments to safeguard the bank’s secured interests. The total collateral securing HomeStreet Bank's lien includes cash collateral and business assets valued at approximately $76,239. A secondary secured creditor, the U.S. Small Business Administration, holds a junior lien with no value in the collateral and will be treated as unsecured in the bankruptcy plan. As adequate protection and for the Debtor's use of the cash collateral, HomeStreet Bank will be granted replacement liens in the Debtor's post-petition cash, accounts receivables, and the proceeds of each of the foregoing, to the same extent, validity, and priority as any duly perfected and unavoidable liens in cash collateral held by HomeStreet. A hearing on the matter is set for August 22. About 1 World Globes & Maps LLC 1 World Globes & Maps, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 25-12145-TWD) on July 31, 2025. In the petition signed by Paul Norrell, managing member, the Debtor disclosed up to $100,000 in assets and up to $1 million in liabilities. Judge Timothy W. Dore oversees the case. Jennifer L. Neeleman, Esq., at Neeleman Law Group, P.C., represents the Debtor as legal counsel. 4 POINTS: Seeks Cash Collateral Access -------------------------------------- 4 Points Towing & Roadside Service, LLC got the green light from the U.S. Bankruptcy Court for the District of Delaware for authority to use cash collateral to fund operations. The court's order authorized the Debtor's interim use of cash collateral until September 3 in accordance with its budget. As adequate protection for the Debtors' use of their cash collateral, Newtek Small Business Finance, LLC and other creditors holding interests in the cash collateral will be granted fully perfected replacement liens on the Debtor's assets, with the same validity, priority and extent as their pre-bankruptcy liens. The replacement liens do not apply to any Chapter 5 avoidance actions and are subject to the fee carveout. As additional protection, Newtek will receive a monthly payment of $2,264.55. The final hearing is set for September 3. The Debtor is a family-run towing and roadside business operating in Delaware and Maryland, with a history of profitability before encountering financial distress. The business suffered due to reduced tourism from the pandemic, a failed expansion, high-interest loans from merchant cash advance lenders, and mounting legal claims from creditors. A related real estate investment tied to an expansion in Delmar resulted in foreclosure, leaving the Debtor with a large deficiency claim of approximately $1.2 million owed to Newtek Small Business Finance, LLC, which holds a blanket lien on nearly all of the Debtor's assets. The Debtor believes its assets are worth far less than Newtek's claims. The Debtor owns an affiliate, 4 Points Auto, an auto repair business that shares some limited expenses but operates separately. Although 4 Points Auto is not a debtor, it may file its own bankruptcy case if a consensual plan with Newtek cannot be reached. About 4 Points Towing & Roadside Service LLC 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. The Company 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 Towing & Roadside Service LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11491) on August 8, 2025. In its petition, the Debtor reported estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Laurie Selber Silverstein handles the case. The Debtor is represented by Adam Hiller, Esq., at Hiller Law, LLC. AGEMY FAMILY: Plan Exclusivity Period Extended to August 30 ----------------------------------------------------------- Judge Roberta A. Colton of the U.S. Bankruptcy Court for the Middle District of Florida extended Agemy Family Corporation d/b/a Quality Plus Dry Cleaners' exclusive period to file a plan of reorganization to August 30, 2025. As shared by Troubled Company Reporter, the Debtor's counsel has been undergoing health treatments, will continue to receive treatments for several weeks and has been largely unavailable to assist the Debtor in formulating a Plan. As a result, Debtor's counsel has communicated with James Elliott, Esq., to assist him and the Debtor while he is undergoing treatment. Accordingly, the Debtor seeks an additional 30 days to allow Mr. Elliott to familiarize himself with the case and to assist the undersigned to formulate a Plan of Reorganization and Disclosure Statement. About Agemy Family Corporation Agemy Family Corporation operating as Quality Plus Dry Cleaners, offers professional dry cleaning, laundry services, and clothing alterations. They provide same-day service, along with convenient pickup and delivery options. Agemy Family Corporation sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00814) on February 9, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. Bankruptcy Judge Roberta A. Colton handles the case. The Debtor is represented by: David W. Steen, Esq. DAVID W. STEEN, P.A. P.O. Box 270394 Tampa, FL 33688 Tel: 813-251-3000 E-mail: dwsteen@dsteenpa.com ALIREZA HORMOZI: Chapter 7 Bankruptcy Case Conversion Affirmed -------------------------------------------------------------- In the appeal styled ALIREZA KALANTAR HORMOZI, Appellant, v. U.S. TRUSTEE, et al., Appellees, Case No. 24-cv-02129-LKG (D. Md.), Judge Lydia Kay Griggsby of the United States District Court for the District of Maryland denied Alireza Kalantar Hormozi's motion for rehearing of of the matters resolved in the Court's June 6, 2025, memorandum opinion and order, which: (1) affirmed the Bankruptcy Court's Conversion Order; (2) denied-as-moot the Appellant's motion to stay Chapter 7 proceedings; and (3) dismissed this appeal, pursuant Fed. R. Bankr. P. 8022. On July 8, 2024, the United States Bankruptcy Court for the District of Maryland converted this matter to a Chapter 7 proceeding, pursuant to 28 U.S.C. Sec. 158(a). The Bankruptcy Court found cause to convert the underlying bankruptcy matter because, among other things, the Bankruptcy Court found that the Appellant was not fulfilling his fiduciary duties and he was unable to propose a workable Chapter 11 Plan. In addition, the Bankruptcy Court determined that conversion of the case to a Chapter 7 proceeding, rather than dismissing the case, was in the best interest of creditors and the estate, because: (1) the creditors who expressed an opinion on the matter of conversion all stated a preference for conversion over dismissal of the case; (2) an independent fiduciary was needed to investigate and consider potential avoidance actions against the Appellant's family members and to address the complex asset issues; and (3) the creditors had already experienced delay in this case and dismissal of the case would further delay any recovery for the Appellant's creditors, thereby prejudicing the creditors. And so, the Bankruptcy Court converted this case to a Chapter 7 proceeding. On July 23, 2024, the Appellant filed a notice of appeal of the Bankruptcy Court's Conversion Order. On June 6, 2025, the District Court issued a memorandum opinion and order in this appeal. In the June 6, 2025, Decision, the District Court held that: (1) cause exists to convert or dismiss this bankruptcy matter, pursuant to 11 U.S.C. Sec. 1112(b)(1); (2) the Bankruptcy Court did not abuse its discretion in converting this case, because the Bankruptcy Court considered whether dismissal or conversion of the bankruptcy case to a Chapter 7 proceeding would best serve the interests of the creditors and the bankruptcy estate; and (3) the Appellant had not shown that conversion was futile under 11 U.S.C. Sec. 707(b)(1), because the Appellant's debts are not primarily consumer debts and there is no evidence to indicate a presumption of abuse. Judge Griggsby holds, "The Appellant has not shown that a rehearing of the June 6, 2025, Decision is warranted, pursuant to Fed. R. Bankr. P. 8022. In his motion for rehearing, the Appellant argues that the Court should reconsider the June 6, 2025, Decision, upon the grounds that the Bankruptcy Court's conversion of this matter from a Chapter 11 case to a Chapter 7 case was futile, because his debts are primarily consumer debts. But, the Appellant has not identified a proper ground for rehearing the June 6, 2025, Decision, because the Appellant neither identifies a change in controlling law, presents new evidence, nor asserts that reconsideration is necessary to correct a clear error of law or prevent manifest injustice. Rather, the Appellant improperly seeks to use his motion for rehearing as a vehicle to re-litigate this appeal." A copy of the Court's Memorandum Opinion and Order August 12, 2025, is available at https://urlcurt.com/u?l=v136ld from PacerMonitor.com Alireza Kalantar Hormozi filed for Chapter 11 bankruptcy protection (Bankr. D. Md. Case No. 23-16912) on September 27, 2023, listing under $1 million in both assets and liabilities. The Debtor is represented by the Law Office of Dmitri Chernov, Esq. The case was converted to Chapter 7 on July 8, 2024. AMITY COURT: Court OKs Stipulation to Use Bel Red's Cash Collateral ------------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Washington approved a stipulation between Amity Court LLC and Bel Red Credit, LLC, amending its previous final order on the use of cash collateral. Pursuant to the court-approved stipulation, the Debtor's authorization to use cash collateral will automatically terminate on the earlier of Nov. 30, unless extended by agreement of the Debtor and Bel Red Credit or order of the court; and if an event of default occurs and remains uncured for more than seven business days after notice. Events of default include the conversion of the Debtor's Chapter 11 cases to Chapter 7 cases; failure to comply with the requirements set forth in the order; the payment of any pre-bankruptcy claim unless in accordance with the budget; and any material or intentional misrepresentation by the Debtor in financial reporting. All other terms of the final order remain in full force and effect. The Debtor owns a two-storey 17,286-square-foot office building located at 14400 Bellevue-Redmond Road, Bellevue, Wash. An appraisal prepared on September 30 last year by Colliers International, which Axos caused to be prepared, values the property at $7.780 million. The property secures financing in an original principal amount of $5 million. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/I9Ii2 from PacerMonitor.com. About Amity Court LLC Amity Court, LLC is the owner of the property situated at 14400 Northeast Bellevue-Redmond Road, Bellevue, Wash., which has an appraised value of $7.78 million. Amity Court filed Chapter 11 petition (Bankr. E.D. Wash. Case No. 25-00240) on February 11, 2025, listing total assets of $7,988,279 and total liabilities of $5,775,823. Judge Whitman L. Holt handles the case. The Debtor is represented by James L. Day, Esq., at Bush Kornfeld, LLP. BACK DRAUGHTS: Gets Final OK to Use Cash Collateral --------------------------------------------------- Back Draughts, LLC received final approval from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to use cash collateral. The final order signed by Judge Catherine Peek McEwen authorized the Debtor to use cash collateral to pay the amounts expressly authorized by the court; the expenses set forth in the budget, plus an amount not to exceed 10% for each line item; continuing necessary expenses of the same kind and nature as those set forth in the budget that accrue after August 29, plus an amount not to exceed 10% for each line item; and additional amounts subject to approval by secured creditor, the U.S. Small Business Administration. Each creditor with a security interest in cash collateral will have a perfected post-petition lien on the cash collateral to the same extent and with the same validity and priority as its pre-bankruptcy lien. The Debtor agreed to keep its property insured in accordance with the obligations under its loan and security agreements with secured creditors. The Debtor has identified several creditors that may assert secured interests in its assets constituting cash collateral. These creditors include SBA, Headway Capital, LLC, Ally Financial Inc., Itria Ventures, LLC, and BizFund, LLC. SBA and Headway Capital may have liens on substantially all of the Debtor's assets while Ally Financial is believed to hold a purchase money security interest in a 2020 Toyota Tundra. BizFund and Itria are parties to agreements involving the sale of future receivables, which the Debtor said may be recharacterized as loans, and thus, both entities may claim interests in cash collateral as well. About Back Draughts LLC Back Draughts, LLC, doing business as Backdraughts Pizza, operates a wood-fired pizzeria serving pizza as its main offering, along with craft beer, fine wine, and cocktails. The family-owned business emphasizes a welcoming atmosphere and serves freshly prepared food. Back Draughts sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-05033) on July 23, 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 Catherine Peek McEwen handles the case. Erik Johanson, Esq., at Erik Johanson, PLLC is the Debtor's legal counsel. Itria Ventures LLC, as secured creditor, is represented by: Paul A. Humbert, Esq. Law Offices of Paul A. Humbert, P.L. 9655 South Dixie Hwy, Suite 312 Miami, FL 33156 Tel: (305) 914-7862 Fax: (305) 513-5153 pa@pahumbertlaw.com BMI SMART: Unsecured Creditors to Split $290K over 3 Years ---------------------------------------------------------- BMI Smart Parking Lots LLC filed with the U.S. Bankruptcy Court for the Middle District of Florida a Subchapter V Plan of Reorganization dated August 11, 2025. BMI is a Florida limited liability company organized on September 22, 2023 which conducts operations from leased property located at: 5282 Patch Road, Orlando, Florida 32822 (the "Patch Road Lot") and 6302 Seminole Avenue, Orlando, Florida 32822 (the "Seminole Ave. Lot") (collectively the "Property"). The Property is leased to the Debtor pursuant to a lease agreement dated August 8, 2024 (the "Lease") which provides for Debtor's continued and uninterrupted occupancy of the Property for a five-year term. Prior to Debtor's occupancy of the Property, its landlord operated a truck parking lot on the Seminole Ave. Lot with relatively meager success. The Patch Road Lot was largely unused and not generating a profit which was not of any interest to the Debtor as it was also unpaved and too expensive. Landlord insisted on leasing both lots to the Debtor and structured a repayment scheme in order to engage the Debtor in both lots. After showing landlord the blueprint for operating an airport parking lot, eviction proceedings were commenced against the Debtor and demand was made for repayment of the Promissory Note. Rather than consume the Debtor's resources litigating matters, BMI elected to reorganize the Debtor's financial affairs through the Chapter 11 process. Debtor anticipates restructuring its financial affairs and continuing operations. Class 1 consists of all Allowed General Unsecured Claims against the Debtor. As set forth in the Debtor's financial projections, the Debtor's projected disposable income will not exceed $289,806.90. In full satisfaction of the Allowed Class 1 General Unsecured Claims, Holders of Class 1 Claims shall receive a pro rata share of Distributions totaling $289,806.90 paid pursuant to the following payment schedule, which payments shall commence on the Effective Date: Quarters 1 through 4 (Plan Year 1): $24,150.57 per quarter. Quarters 5 through 8 (Plan Year 2): $24,150.57 per quarter. Quarters 9 through 12 (Plan Year 3): $24,157.57 per quarter. In a liquidation scenario, the value received by holders of Allowed Class 1 Claims would be $0.00. Class 1 is Impaired. Class 2 consists of all equity interests in BMI Smart Parking Lots, LLC. Class 2 Interest Holders shall retain their respective Interests in BMI Smart Parking Lots, LLC in the same proportions such Interests were held as of the Petition Date (i.e., 100.00% Interest retained by Mr. Fabian Pourrain). Class 2 is Unimpaired. The Plan contemplates the Debtor will continue to manage and operate its business in the ordinary course, but with restructured debt obligations. It is anticipated the Debtor's postconfirmation business will mainly involve continued operation of its off-site airport parking business, the income from which will be committed to make the Plan Payments to the extent necessary. Funds generated from the Debtor's operations through the Effective Date will be used for Plan Payments; however, the Debtor's cash on hand as of Confirmation will be available for payment of Administrative Expenses. A full-text copy of the Subchapter V Plan dated August 11, 2025 is available at https://urlcurt.com/u?l=FFJRWo from PacerMonitor.com at no charge. Counsel to the Debtor: Daniel A. Velasquez, Esq. Latham, Luna, Eden & Beaudine, LLP 201 S. Orange Ave., Suite 1400 Orlando, FL 32801 Telephone: (407) 481-5800 Facsimile: (407) 481-5801 Email: dvelasquez@lathamluna.com About BMI Smart Parking Lots BMI Smart Parking Lots LLC operates parking facilities near the Orlando International Airport providing travelers with cost-effective and secure alternatives to on-airport parking. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04004) on June 27, 2025, with up to $50,000 in assets and liabilities. Judge Grace E. Robson presides over the case. Daniel A. Velasquez, Esq., at Latham, Luna, Eden & Beaudine, LLP represents the Debtor as legal counsel. BOWFLEX INC: Wins Bid to Enforce Chapter 11 Plan, Sale Order ------------------------------------------------------------ Judge Andrew B. Altenburg, Jr. of the United States Bankruptcy Court for the District of New Jersey granted the joint motion of the Bowflex Liquidating Trust and Johnson Health Tech Trading, Inc., Johnson Health Tech Retail, Inc. and their affiliate entities to enforce the Plan, Confirmation Order, and Sale Order in the bankruptcy case of BowFlex Inc. Movants seek to: (i) enforce the release, injunction, gatekeeper, and limitation of liability provisions; (ii) compel Elizabeth M. Cosin, Duke Douglas, Alan Calderon, and Robert Ahearn to dismiss with prejudice four putative class action complaints filed against BowFlex and/or Johnson arising out of the Debtors' pre-petition and pre-closing operations; and (iii) find that the Violative Actions and any other similar claims or causes of action based on the manufacture and sale of the Debtors' products that arose prior to April 22, 2024 are void ab initio. The Sale Transaction On March 4, 2024, the Debtor entered an Asset Purchase Agreement with Johnson wherein Johnson sought protections to serve as a stalking horse bidder. On March 8, 2024, the Bankruptcy Court entered an Order approving the bidding procedures and stalking horse protections. Between March 13, 2024 and March 15, 2024, the Sale Notice was published in The New York Times, The Seattle Times and The Columbian. The Bid Order was subsequently amended on March 18, 2024. The Sale Notice informed all parties of the auction and sale with April 15, 2024 as the return date of for the hearing on the sale. The auction took place and Johnson was the successful bidder. On April 15, 2024, the court conducted its hearing on the motion to approve the APA and sale to Johnson. Having concluded that proper notice had been given, all the necessary elements for approval of the sale under Section 363 of the Bankruptcy Code, 11 U.S.C. Se. 363, had been met, and further concluded that Johnson was the successful purchaser, the court entered the Order: (I) Approving the Sale of the Acquired Assets Free and Clear of All Liens, Claims and Encumbrances, (II) Authorizing The Debtors to Enter Into and Perform Their Obligations Under the Asset Purchase Agreement, and (III) Granting Related Relief In the Sale Order, the court approved the APA. Notably, in ultimately approving the sale, the court found that Johnson was a good faith purchaser under the Bankruptcy Code and that the APA was negotiated, proposed, and entered into by the Debtors and Johnson without collusion and from arm's-length bargaining positions. The court found that neither party engaged in any conduct that would cause or permit the APA or the sale to be avoided. The Plan On May 23, 2024, the Debtors filed their Chapter 11 Plan and Disclosure Statement. In connection therewith, the Debtors filed a Motion For Entry Of An Order: (I) Approving the Adequacy of the Disclosure Statement, (II) Approving the Solicitation and Voting Procedures With Respect to Confirmation of the Proposed Joint Chapter 11 Plan of Liquidation of Bowflex Inc. and Its Debtor Affiliate, (III) Approving the Forms Of Ballots and Notices in Connection Therewith, (IV) Scheduling Certain Dates With Respect Thereto, and (V) Granting Related Relief On June 20, 2024, the court conducted a hearing on the adequacy of the Debtors' Disclosure Statement and approved same. The order approving the adequacy of the Disclosure Statement was signed on June 21, 2024. The Debtors then filed a First Modified Plan, and a Second Modified Plan, which provided for the creation of the Trust to facilitate distributions to creditors. After a full hearing on the Debtors Second Modified Plan on Aug. 19, 2024, the court rendered its oral decision and entered its Findings of Fact, Conclusions of Law, and Order Confirming the Second Amended Joint Chapter 11 Plan of Liquidation of Bowflex Inc. and Its Debtor Affiliate. The Plan contains a Gatekeeper provision which provides "No party may commence a Cause of Action of any kind against the Debtors, the Liquidating Trust, the Exculpated Parties, or the Released Parties without first" seeking leave from the bankruptcy court. On June 5, 2025, Johnson implemented a Recall for certain BowFlex Adjustable Dumbbells, which the Debtors had been selling since 2004, due to concerns that the weight plates in the dumbbells can dislodge and cause a potential hazard to its user. Thereafter, four Plaintiffs filed putative class action complaints against Johnson in three different district courts. These Complaints seek to hold Johnson responsible and liable for allegedly defective BowFlex Adjustable Dumbbells sold prior to the Closing Date, including on theories of successor liability. Two Plaintiffs -- Douglas and Calderon -- have named Debtor BowFlex as a defendant. Johnson asserts the Plaintiffs' claims all arise out of BowFlex Adjustable Dumbbells purchased prior to the Petition Date. The Motion to Enforce and certification in support thereof was filed on July 1, 2025. The parties entered into a Stipulation and Consent Order Regarding Joint Motion to Enforce the Plan, Confirmation Order, and Sale Order and Related Deadlines agreeing to, inter alia, the deadlines for the parties to file their responsive pleadings and scheduling the plenary hearing on the matter. The court has determined that resolution of the Motion to Enforce requires the court to answer two primary questions: (1) whether this matter is brought under the court's core or non-core jurisdiction; and (2) whether the Debtors provided adequate notice to potential creditors. Jurisdiction Movants assert this court has jurisdiction under 28 U.S.C. Secs. 157 and 1334, the Standing Order of Reference to the Bankruptcy Court Under Title 11, entered July 23, 1984, and amended on June 6, 2025 (Simandle, C.J.), paragraph 113 of the Confirmation Order, paragraph 27 of the Sale Order, and Article X of the Plan. They further assert this is a core proceeding pursuant to 28 U.S.C. Sec. 157(b). They contend that pursuant to Section 105(a), 11 U.S.C. Sec. 105(a), the court is empowered to enforce its prior orders and that where the plain terms of the order unambiguously apply the terms should be given effect. The Plaintiffs counter that this court lacks subject matter jurisdiction over their lawsuits. The Plaintiffs acknowledge that the Confirmation Order includes a broad reservation of subject matter jurisdiction, but they assert the lawsuits concern claims arising under non-bankruptcy law between non-debtors with no conceivable effect on the Debtors' estates, so there is no arising in, arising under, or related to jurisdiction under 28 U.S.C. Sec. 1334. The Plaintiffs assert this court does not have ancillary jurisdiction to enforce the Sale Order because the Sale Order does not bar the defect claims. They argue that while this court always has ancillary jurisdiction to interpret and enforce its prior order such power doesn't extend to every dispute that is an alleged collateral attack on the sale free and clear provisions of a sale order. They maintain it is Johnson's burden, a burden which it has failed to carry, to identify an order entered by this court enjoining the Proposed Class Representatives from pursuing the defect claims against Johnson. Movants counter that the Plaintiffs have mistakenly asserted this court does not have ancillary jurisdiction and have completely failed to address the court's core jurisdiction. They emphasize this court is exercising its core jurisdiction when it is called to "interpret and to give effect to its previous sale orders." They argue that contrary to the Plaintiffs' assertions, the court's core jurisdiction to interpret and enforce its own order is not limited to actions by or against a debtor or its successors but includes actions between non-debtors and other non-debtors. They contend the Plaintiffs directly challenge the interpretation and enforcement of the Sale Order by attacking the sufficiency of the notice given and whether the language of the Sale Order enjoins the Violative Actions and, thus, the court's core jurisdiction is invoked because the court must interpret and give effect to its prior Sale Order. The current Motion to Enforce is based upon the court's properly entered Sale Order and Confirmation Order. The court emphasizes that the entry of the Sale Order itself was a core proceeding within the jurisdiction of the court because a sale order is authorized by the Code, 11 U.S.C. Sec. 363, which empowers a debtor to sell property free and clear. Indeed, such a sale order is listed as a core proceeding in 28 U.S.C. Sec. 157(b)(2)(N). The injunctive provision and successor liability provisions contained within the Sale Order were likewise within the court's core jurisdiction. The Motion to Enforce asks the court to determine whether the Sale Order and Confirmation Order in conjunction with the Plan bar the Plaintiffs' defect claims. According to the court, the Motion to Enforce constitutes a core proceeding because it asks this court to interpret and enforce its prior orders. Alternatively, the Motion to Enforce is core proceeding either "arising in" or "arising under" the bankruptcy case, and therefore jurisdiction exists under 28 U.S.C. Sec. 1334(b) Movants have requested that this court enforce the Sale Order issued pursuant to 11 U.S.C. Sec. 363 -- Use, sale, or lease of property. Consequently, this proceeding arises under Section 363 of the Bankruptcy Code. Having determined that the Motion to Enforce is within this court's core subject matter jurisdiction, the court roundly rejects the Plaintiffs' arguments regarding any alleged lack of subject matter jurisdiction. Adequate Notice The Plaintiffs argue the language of the Sale Order does not apply because they were not served with adequate notice as required by due process, the Federal Rules of Bankruptcy Procedure, and the Bid Order. They assert that there is no evidence Debtors served actual notice of the proposed sale on the holders of the defect claims, and accordingly Debtors' assets were not sold free and clear. The Plaintiffs argue both the Debtors, who had received 337 complaints regarding dislodging plates, and Johnson, who during its due diligence should have become aware of the complaints, had adequate knowledge of the alleged defect and should have provided actual notice to the Plaintiffs. They assert at least some of the holders of defect claims were identified in the Debtors' books and records as purchasers of the Debtors' defective products. The Plaintiffs assert that the Sale Order cannot be enforced because the Sale Notice failed to provide reasonable notice the sale affected the rights of the holders of defect claims. They argue that the Sale Notice was defective it failed to disclose: (1) the existence of the defect; (2) that the sale to Johnson would be free and clear of the defect claims; and (3) that any successor liability claims would be terminated. Movants argue that under the totality of the circumstance the Plaintiffs received adequate notice. Movants argue to the extent actual notice was required because the Plaintiffs were known creditors, the Debtors satisfied their burden as to actual notice. They argue the form and content of the Sale Notice satisfied the requirements of Bankruptcy Rule 2002(a)(2), (c)(1), which requires that notice of a section 363 sale must include: (1) a general description of the property; (2) the time and place of any public sale; (3) the terms and conditions of any private sale; (4) the time to file objections; and (5) for a proposed sale or lease of personally identifiable information under a statement whether the sale is consistent with any policy that prohibits transferring the information. The Plaintiffs are "unknown creditors" as defined by the Supreme Court and the Third Circuit. The court finds the record does not contain any evidence that the Debtors had any knowledge of the Plaintiffs' claims at the time the Debtors filed for bankruptcy. According to the court, the Plaintiffs' identities as potential creditors were not reasonably ascertainable by the Debtors. The Plaintiffs were four customers among the more than 1.8 million customers the Debtors could identify from their books and records. They have not alleged they are among the small group of customers who complained to the Debtors about the dumbbells. They have not provided any evidence that they engaged in communication with the Debtors concerning the existence of their alleged claims. Even if the court were to conclude the Plaintiffs were known creditors, the court would conclude that the Plaintiffs received adequate notice via email as authorized by the court. The court also rejects the Plaintiffs' arguments that the contents of the Sale Notice were not sufficiently specific to notify the Plaintiffs their defect claims would be extinguished by the Sale Transaction. The Sale Notice, as approved by the court, satisfied the requirements of Rule 2002(c)(1). According to the court, Rule 2002(c)(1) does not require disclosure of an alleged defect or specific warnings that the Sale Transaction would extinguish defects. The court finds Plaintiffs' assertion that the Debtors were required to explicitly explain that the sale would bar defect claims improperly commingles the requirements of the Sale Notice under Rule 2002 with the requirements of the disclosure statement under 11 U.S.C. Sec. 1125. The court concludes: (1) the court has jurisdiction over the Movants' Motion to Enforce; and (2) the Debtors provided adequate notice of the Sale Transaction to both known and unknown creditors. Following upon these conclusions, the court finds the Plaintiffs' claims are pre-petition claims that are barred by the Plan and the Confirmation Order. In addition, successor liability for the Plaintiffs' defect claims did not attach to Johnson. The filing of the Plaintiffs' complaints violated the Sale Order, Plan, and Confirmation Order. A copy of the Court's Memorandum Opinion and Order dated August 11, 2025, is available at https://urlcurt.com/u?l=nJoFXv from PacerMonitor.com. 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. CALVIN1 LLC: Unsecureds to Get Share of Income for 60 Months ------------------------------------------------------------ Calvin1, LLC filed with the U.S. Bankruptcy Court for the Eastern District of Michigan a Plan of Reorganization dated August 11, 2025. The Debtor is a Michigan limited liability corporation. The Debtor incorporated in the state of Michigan, making it a "Domestic" Limited Liability Company. Debtor was formed by Ayad K. and Waleed Fadheel (Individually, "Wally," or, "Eddie," collectively, "Principals") on March 24, 2016. The Debtor is a franchisee of and was formed for the purpose of conducting business as a "Happy's Pizza" ("Happy's Corporate") franchisee. Debtor operated several Happy's Pizza franchise locations throughout Michigan and Ohio, including Dayton Ohio. As of the Petition Date, Debtor's operation was reduced to one Happy's Pizza franchise location 2804 Salem Ave. Dayton, OH 45406. In 2022, market-pressures reached their apex, the pandemic stretched Debtor to its max, and after taking two rounds of Economic Impact Disaster Loans (EIDL) through the Small Business Administration of the United States of America ("SBA"), financial stresses caused the Debtor's insurance to lapse. During this time, a delivery driver, who Debtor strictly contends was “off-work,” got into a car accident ("Incident"), tragically, killing Mr. Antonio Scott ("Decedent"). The Incident resulted in the Decedent, through his estate, filing a lawsuit, captioned Ladyna Rivera, As Administrator of the Estate of Antonio G. Scott Plaintiff, versus, Adrian Burrows, et al., case 2023-CV-05358, Montgomery County, Ohio, Court of Common Pleas (the "Lawsuit"). The Lawsuit was filed against the Debtor, the employee of the Debtor, a number of "John" or "Jane Does," and other parties, unrelated to the Debtor. The Debtor, through its principals, has vigorously maintained its defense, but, upon failing to achieve dismissal of the Lawsuit, the Debtor sought bankruptcy protection. Post-petition, Debtor has remained profitable, producing revenue of $194,621.77. Additionally, financial projections are attached inline, but, the Debtor's business does not vary all that much and can rely on the Cash Collateral budget post-confirmation, which may gain linear increase in income and expense, which doesn't vary much year-to-year, based upon historical analysis; and further, income analyses may be provided post-filing to show strength of financials, pre-confirmation in confirmation briefing. The Plan proposes to disburse all of Debtor's projected, disposable net of secured creditor and priority claims, to holders of non-priority general unsecured claims over a five-year period. This plan of reorganization proposes to pay its creditors from operational income. Class 4 consists of General Unsecured Claims. This class will receive all disposable income of the Debtor as that term is defined in Section 1191(d)(2) of the Code which is not otherwise devoted to the payment of necessary priority claims, over a period of 60 months after the effective date of the Plan. In the event that the Plan is confirmed under 1191(d), the Debtor proposes to continue to make its own plan payments. To the extent this Court Orders, a ratable portion calculated by the Sub Chapter V Trustee shall be disbursed to each member of this Class pursuant to the terms of the Payment in section G, 3. To the extent the Court allows Debtor to make payment directly, they shall calculate payment in a manner the same as the Sub Chapter V Trustee would. The reorganized debtor shall fund this plan from future earnings. The Debtor shall retain all assets of the bankruptcy estate, and such assets shall vest with the Reorganized Debtor, or as otherwise set out in the Plan regarding claims and/or Adversary Proceedings. Except to the extent otherwise provided in the Plan (specifically, regarding causes of action assigned to the litigation trust) or restricted by prior order of the Bankruptcy Court, on the Effective Date, all Cash and Assets of the Estate shall be transferred to and vest in the Liquidating Debtor free of any Claims, Liens and Equity Interests, to be managed and used for the sole purposes of achieving Consummation and carrying out the Plan and effectuating the Distributions provided for in the Plan. A full-text copy of the Plan of Reorganization dated August 11, 2025 is available at https://urlcurt.com/u?l=9PHaWe from PacerMonitor.com at no charge. Counsel to the Debtor: Alexander J. Berry-Santoro, Esq. MAXWELL DUNN, PLC 2937 E. Grand Blvd. Detroit, MI 48202 Tel: (248) 246-1166 Email: aberrysantoro@maxwelldunnlaw.com About Calvin1, LLC Calvin1, LLC is a Michigan limited liability corporation. The Debtor sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-44852) on May 12, 2025, listing $50,001 to $100,000 in assets and $1,000,001 to $10 million in liabilities. Judge Mark A Randon presides over the case. Alexander Joseph Berry-Santoro, at Maxwell Dunn, PLC, is the Debtor's counsel. CHARLES K. BRELAND: Court Dismisses Merchant Adversary Complaint ---------------------------------------------------------------- Chief Judge Jerry Oldshue of the United States Bankruptcy Court for the Southern District of Alabama dismissed the adversary proceeding captioned as BILLY C. MERCHANT, Plaintiff, v. CHARLES K. BRELAND, JR. and FLORENCIA DEVELOPMENT, INC., Defendants, ADVERSARY NO.: 25-01004 (Bankr. S.D. Ala.). The Adversary Proceeding came before the Court for hearing on the Motion to Dismiss Complaint, or, in the Alternative, Motion for Abstention filed by Charles K. Breland Jr. and Florencia Development Inc. The Debtor, Charles K. Breland, filed the Chapter 11 bankruptcy on July 8, 2016. On the Petition Date, Breland's interests in numerous entities including Florencia Development Inc. became property of the Bankruptcy Estate. A. Richard Maples, Jr. was appointed as the Chapter 11 Trustee for the Estate on May 3, 2017. At the time there were disputed claims, adversary proceedings, and objections pending involving various creditors, including the Internal Revenue Service, Levada EF Five, LLC, and Hudgens & Associates, LLC. The Plan and subsequent related filings incorporated resolutions of disputed claims, required unsecured creditors to be paid in full on the Effective Date, and provided for revesting assets in the Debtor upon payment or other resolution of the outstanding claims of the Hudgens Creditors. Pursuant to the Confirmation Order entered on June 6, 2022: (1) administrative expense claims incurred after the Effective Date but before the Revesting of Assets in the Reorganized Debtor would be paid only upon application to and approval by the Court within that period; and (2) the Trustee retained sole authority to act on behalf of each entity in which Breland directly or indirectly owned a controlling interest until the revesting. Thereafter the claims of the Hudgens Creditors were resolved and a Joint Motion To Approve Compromise was filed by the Debtor, the Trustee, the Hudgens Creditors, and Levada. Merchant was not a pre-petition creditor of Breland and did not assert any claims against the Bankruptcy Estate. His Adversary Complaint seeks to determine the validity, amount and priority of liens, and request a declaratory judgment against Breland and Florencia based on a Joint Venture Agreement between Florencia and Merchant dated Jan. 27, 2023, and alleged fraud by Breland. The JVA relates to funding by Merchant for the improvement of boat slips adjacent to the Florencia Condominium on Perdido Key in Escambia County, Florida. Merchant did not seek court approval to enter into the JVA or file an application for an administrative expense claim in Breland's bankruptcy case. The four corners of the JVA do not reflect approval or execution by the Chapter 11 Trustee. Pursuant to the Confirmation Order, the Chapter 11 Trustee sold Florencia Condominium Unit 903 on or about June 26, 2025 and filed a Report of Remaining Assets indicating that the case administration is nearing completion and sufficient funds on hand to pay the remaining allowed claims in full. Jurisdiction Judge Oldshue explains, "Here, the allegations in the Adversary Complaint do not arise under the provisions of Title 11. Merchant's contention, that his claims are core proceedings under 28 U.S.C.Sec. 157(b)(2)(A) and (K), is untenable as they do not concern the administration of the Estate or the validity, extent or priority of liens in Breland's individual bankruptcy case. Merchant's claims are essentially postpetition, post-confirmation, state-law claims based on alleged breach of the JVA by Florencia, a non-debtor, third party corporation. The state-law claims are not core proceedings because they do not involve substantive rights created by bankruptcy law. The fact that Breland holds an interest in Florencia is not sufficient for this Court to exercise jurisdiction over post-petition, post confirmation claims against a non-debtor." According to the Court, Merchant is not a creditor in Breland's individual bankruptcy and Merchant entered into the JVA with Florencia, not Breland individually or the Chapter 11 Trustee. Further, and perhaps most importantly, Breland's individual Chapter 11 was confirmed on June 6, 2022, assets revested in Breland as provided in this Court's Nov. 3, 2023 Order Approving the Compromise with the Hudgen's Creditors, and the administration of the Chapter 11 case is quickly approaching its conclusion with payment of all allowed claims in full. Judge Oldshue holds, "Thus, Merchant's JVA with Florencia and alleged post-petition dealings with Breland, without disclosure or Court approval, do not constitute a sufficient basis to disregard the provisions of the Confirmation Order, derail the present course of administration of the Bankruptcy Estate (which is nearing completion), or otherwise compel this Court to exercise jurisdiction over Merchant's claims arising from his contractual agreement with a non-debtor, third party." Permissive Abstention As Breland's Chapter 11 proceeding has been pending since 2016, confirmation occurred in June 2022, property has revested in the Debtor, allowed claims have or will soon be paid in full, and the Chapter 11 administration is winding down. According to the Court, post-confirmation, post-vesting, litigation, even if permissible, would impede the efficient completion of the administration of the bankruptcy estate. Judge Oldshue concludes, "As Merchant's claims relate to alleged breach of a post-petition contract with a non-debtor entity and state law issues predominate, the state courts are well suited to handle such matters. Further, as Merchant is not a creditor in the individual Chapter 11, Breland did not execute the JVA in his individual capacity, and Merchant did not timely seek court approval of the JVA or request an administrative expense, his claims are outside the scope of the Chapter 11 plan administration. Thus, it is not efficient or appropriate for the Court to usurp the function of the state court or unjustifiably entangle a non-debtor third party in bankruptcy court proceedings. Therefore, to the extent that the Court has or could seek to assert jurisdiction to adjudicate any of the issues set forth in Merchant's Adversary Complaint, it elects to permissively abstain from doing so in the interest of justice, judicial economy, and respect for state law." The Court finds good and reasonable grounds to dismiss this Adversary Proceeding. A copy of the Court's Memorandum Order and Opinion dated August 6, 2025, is available at https://urlcurt.com/u?l=Wxn9G9 About Charles Breland Jr. Charles K. Breland, Jr., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ala. Case No. 16-02272) on July 8, 2016, and is represented by Eric Slocum Sparks, Esq., at Eric Slocum Sparks PC. A. Richard Maples, Jr., was appointed as Chapter 11 trustee for the Debtor. Debtor Osprey Utah, LLC, which is owned and controlled by Charles K. Breland, Jr., owns real property. CIRTRAN CORP: Delays Q2 10-Q Filing Due to Audit Review Delays -------------------------------------------------------------- CirTran Corporation filed a Notification of Late Filing on Form 12b-25 with the U.S. Securities and Exchange Commission, informing that it is unable to file, without unreasonable effort or expense, its Form 10-Q for the period ended June 30, 2025. According to the Company, additional time is needed to compile and analyze supporting documentation in order to complete the Form 10-Q and in order to permit the Company's independent registered public accounting firm time to complete its review of the financial statements included in the Form 10-Q. The Company intends to file the Form 10-Q as soon as possible. About CirTran Corp. CirTran Corporation specializes in manufacturing, marketing, distribution, and technology services in a wide variety of consumer products, including tobacco products, medical devices, and beverages, around the world. It has an innovative and consumer-focused approach to brand portfolio management, resting on a strong understanding of consumers domestically, and has established a footprint in more than 50 key international markets. As of Dec. 31, 2024, the Company had $1,532,332 in total assets, $25,937,893 in total liabilities, and a total stockholders' deficit of $24,405,561. Spokane, Wash.-based Fruci & Associates II, PLLC, the Company's auditor since 2020, issued a "going concern" qualification in its report dated April 15, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has a working capital deficiency, a net loss from continuing operations, and an accumulated deficit. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. CXOSYNC LLC: Court Extends Cash Collateral Access to Oct. 3 ----------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois extended CXOsync, LLC's authority to use cash collateral until October 3. The interim order authorized the Debtor to use the cash collateral of the Internal Revenue Service and the U.S. Small Business Administration to pay expenses in accordance with its budget, subject to 5% variance. The budget projects total operational expenses of $132,476.00 for the period from August 16 to September 29. As adequate protection for the use of their cash collateral, both secured creditors will receive replacement liens on all of the Debtor's property. These replacement liens will hold the same priority and validity as the secured creditors' pre-bankruptcy liens. Other forms of protection include insurance coverage and access to the Debtor's books and records. A status hearing is scheduled for September 29. About CXOsync LLC CXOsync, LLC is a corporate event planner which presents events and workshops geared toward CIOs, CISOs, CMOs, and CFOs of businesses. It hosts live and virtual events to gather CXOs from the world's largest corporations and brands. CXOsync sought protection under Chapter 11 of the U.S. Bankruptcy Code (Banker. N.D. Ill. Case No. 24-08351) on June 5, 2024, with $128,315 in assets and $6,030,532 in liabilities. Rupen Patel, managing member, signed the petition. Judge Janet S. Baer presides over the case. The Debtor is represented by: Ben L. Schneider, Esq. Schneider & Stone Tel: 847-933-0300 Email: ben@windycitylawgroup.com DATO A/C: Gets Interim OK to Use Cash Collateral Until Aug. 31 -------------------------------------------------------------- Dato A/C Inc. received another extension from the U.S. Bankruptcy Court for the Eastern District of New York to use cash collateral to pay its operating expenses. The interim order signed by Judge Elizabeth Stong approved the use of cash collateral from the petition date through Aug. 31 in accordance with the Debtor's projected budget. The Debtor was ordered to continue its monthly payment of $200 to the U.S. Small Business Administration as adequate protection for using the agency's cash collateral. These payments will be credited to SBA's pre-bankruptcy secured debt. In case of any diminution in the value of its collateral, including cash collateral, SBA will be granted valid, binding and enforceable post-petition replacement liens on and security interests in all assets of the Debtor regardless of whether such assets are acquired by the Debtor prior to or after the petition date. These liens are senior to all other security interest in, liens on or claims against the collateral, subject to the fee carveout. The Debtor's authority to use cash collateral will terminate upon the occurrence of so-called events of default, including missed payments, spending beyond budget, stay relief orders, case dismissal or conversion, trustee appointment, or defaults in reporting financial or operational information not cured within five business days of notice. About Dato A/C Inc. Dato A/C Inc. sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-41547) on May 3, 2023, with up to $50,000 in assets and up to $500,000 in liabilities. Judge Elizabeth S. Stong presides over the case. The Debtor tapped Alla Kachan, Esq., at the Law Offices of Alla Kachan P.C. as bankruptcy counsel and Wisdom Professional Services, Inc. as accountant. DESAI HOLDINGS: Seeks to Use Cash Collateral -------------------------------------------- Desai Holdings USA, LLC asked the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, for authority to use cash collateral from June 30 until January 30 next year in accordance with its agreement with the U.S. Small Business Administration. The SBA holds a secured loan of approximately $495,000. The loan, obtained in January 2022 as a COVID Economic Injury Disaster Loan, is secured by all tangible and intangible assets of the Debtor, including inventory, equipment, accounts, and a liquor license. As of the bankruptcy filing date, the loan balance was $502,014. The Debtor operates a bar and restaurant known as RBar and currently employs 14 individuals. Its principal has invested roughly $1 million into the business over time. The Debtor argued that using the SBA's cash collateral is essential to maintaining day-to-day operations, paying employees, and meeting ongoing business expenses. Without this authorization, the Debtor said it would be forced to shut down, eliminating any realistic possibility of a successful reorganization. The Debtor's personal assets are worth approximately $175,000 as such the SBA is not adequately protected and as such, payment of ongoing loan payments will provide protection to the SBA. The SBA will also be adequately protected by the continued and uninterrupted operation of the Debtor's business. Further, the stipulation provides that Debtor will make monthly payments of $1,892 to SBA starting this month. A hearing on the matter is set for September 2. About Desai Holdings, USA LLC Desai Holdings, USA, LLC, doing business as R-Bar, operates a bar and restaurant in downtown Long Beach, California. The establishment offers craft beers, cocktails, and a food menu that includes items such as chicken wings, beef bulgogi tacos, and chicken curry with rice. Desai Holdings, USA sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-15524) on June 30, 2025. In its petition, the Debtor reported total assets of $175,000 and total liabilities of $2,171,294. Honorable Bankruptcy Judge Barry Russell handles the case. The Debtors are represented by Stella Havkin, Esq., at Stella Havkin. DRAKSIN PROPERTIES: Court Extends Cash Collateral Access to Sept. 3 ------------------------------------------------------------------- Draksin Properties, Inc. received another extension from the U.S. Bankruptcy Court for the Northern District of New York to use cash collateral. The fourth interim order penned by Judge Wendy Kinsella authorized the Debtor's interim use of cash collateral in accordance with its budget pending the hearing on September 3. Generations Bank and other secured creditors of the Debtor will be granted continuing rollover liens on and security interests in all collateral in which such creditors hold liens and security interests pursuant to their loan documents with the Debtor. As additional protection, Generations Bank will continue to receive monthly payments of $1,850 until the effective date of the Debtor's Subchapter V plan. The monthly payments started in April 30. The Debtor was also ordered to continue its monthly payment of $500 to the Subchapter V trustee for payment of his fees, with such funds to be held in escrow pending further court order. The next hearing is scheduled for September 3. The Debtor owns several parcels of rental properties. Beginning in 2017, the Debtor took out a series of mortgages with Generations Bank, secured by various parcels of real property. During the Covid pandemic, the Debtor was unable to collect consistent rents from its tenants and was legally prohibited from evicting non-paying tenants. As a result, the Debtor was unable to pay its ongoing obligations to Generation Bank. The two entered into some forbearance agreements but the Debtor was unable to keep up on its monthly mortgage payments. Generations Bank began foreclosure proceedings against the Debtor's properties, leading to the Debtor's filing of its bankruptcy case. Based on a UCC search, the following have been filed against cash collateral of the Debtor, which have not yet lapsed or have not yet been terminated: (i) UCC-1 on November 27, 2017, secured by a blanket lien on all of the Debtor's personal property and assets; (ii) UCC-1 on October 17, 2022, secured by 323, 325, and 333-335 Rowland Street, Syracuse, N.Y.; and (iii) UCC-1 on October 19, 2022, secured by all goods, which are or are to become fixtures, now owned or hereafter acquired on the real property located at 825 S Wilbur Ave., and 316 and 408 Rowland Street, Syracuse, N.Y. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/amFuF from PacerMonitor.com. About Draksin Properties Draksin Properties, Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 25-30159) on March 6, 2025, listing up to $1 million in both assets and liabilities. Judge Wendy A. Kinsella oversees the case. Peter Alan Orville, Esq., at Orville & Mcdonald Law, PC is the Debtor's legal counsel. Generations Bank, as secured creditor, is represented by: Curtis A. Johnson, Esq. Bond, Schoeneck & King, PLLC 350 Linden Oaks, Third Floor Rochester, New York 14625 Tel: (585) 362-4812 cjohnson@bsk.com EASTERN COLORADO: Seeks to Extend Plan Exclusivity to December 15 ----------------------------------------------------------------- Eastern Colorado Seeds, LLC and affiliates asked the U.S. Bankruptcy Court for the District of Colorado to extend their exclusivity periods to file a plan of reorganization and obtain acceptance thereof to December 15, 2025 and January 12, 2026, respectively. Applying the pertinent factors here demonstrates that a 3-month extension of the exclusive periods is appropriate: * the size and complexity of the chapter 11 matters. Debtors' intertwined operations are complex. Because of the complexity of Debtors' operations, Debtors anticipate proposing a joint plan. * the necessity of sufficient time to allow the debtor to negotiate a plan of reorganization. Debtors have taken steps to normalize operations by obtaining approval to use cash collateral, negotiating adequate protection payments, selling property no longer necessary for operations, and exploring potential paths forward. Debtors believe that getting through the bulk of what is their most important sales and revenue period will be important information for all parties in considering a plan. Moreover, determining whether or what farm ground Farms may lease is an important aspect of making financial projections of the Business. * the existence of good faith progress toward reorganization. The Debtors have made good faith efforts towards reorganizing during the case, including by regaining control of their assets, normalizing operations, selling property no longer required for operations, and adjusting operations to survive without a line of credit. Debtors have also made agreements for adequate protection payments with American AgCredit and PNC. Debtors require additional time to formulate a confirmable plan and the projections to support the plan. * whether the debtor has demonstrated reasonable prospects for filing a viable plan. Seeds' cash collateral budget provides for payment of ordinary course expenses. The agreed supplemental budgets reflect a significant amount of work by Debtors' management; typically, Seeds would draw on a line of credit for the spring planting and crop inputs through harvest to fund its cash needs. The supplemental budget reflects operational and business changes to deal with the absence of a line of credit to draw. * whether the debtor has made progress in negotiations with creditors. Debtors have communicated with their largest non insider creditor, American AgCredit, regularly during the case. Negotiations continue. * whether the debtor is seeking an extension of exclusivity in order to pressure creditors to submit to the debtor's reorganization demand. Debtors are not seeking an extension to pressure creditors. The Debtors seek an extension to allow for sufficient time to explore all possible options to repay creditors. * whether an unresolved contingency exists. To the best of Debtors' knowledge, there are no material unresolved contingencies in these cases at this time, such as needing to determine the dischargeability of a debt, needing to resolve an adversary proceeding, or something similar. Debtors note that it does not sell internationally, and its inventory sales are, therefore, not directly impacted by tariffs from other countries. However, the cost of certain farm inputs and other consumables may increase as the result of U.S. tariffs and tariff uncertainty. Counsel for Interested Party, ECS Farms, LLC, Clay and Christine Smith, and Pinnacol Holdings, LLC: Jeffrey A. Weinman, Esq. Jordan Factor, Esq. Katharine S. Sender, Esq. 1600 Stout Street, Suite 1900 Denver, Colorado 80202 (303) 534-4499 Email: JWeinman@allenvellone.com JFactor@allen-vellone.com KSender@allen-vellone.com Attorneys for Eastern Colorado Seeds, LLC: Andrew D. Johnson, Esq. Alice A. White, Esq. Gabrielle G. Palmer, Esq. 600 17th Street, Suite 425 North Denver, Colorado 80202 Ph: (720) 457-7059 Email: ajohnson@OFJlaw.com awhite@OFJlaw.com gpalmer@OFJlaw.com About Eastern Colorado Seeds Eastern Colorado Seeds, LLC is a full-service seed company offering a wide range of agricultural seeds, including grains, forages, reclamation seeds, and specialty products like pulses, millets, and sunflowers. With locations in Burlington, CO, Dumas, TX, and Clovis, NM, the company ensures efficient delivery and a consistent supply of high-quality products to its customers. The knowledgeable team at Eastern Colorado Seeds specializes in crop advisory, precision technology, and livestock nutrition. Eastern Colorado Seeds LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Col. Case No.: 25-10244) on January 15, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Honorable Bankruptcy Judge Joseph G Rosania Jr. handles the case. The Debtor is represented by Andrew W. Johnson, Esq. at Onsager Fletcher Johnson LLC. EDGE PROMO: Ciara Rogers Named Subchapter V Trustee --------------------------------------------------- Brian Behr, the U.S. Bankruptcy Administrator for the Eastern District of North Carolina, appointed Ciara Rogers, Esq., as Subchapter V trustee for Edge Promo Team, LLC. Ms. Rogers is a partner at Waldrep Wall Babcock & Bailey, PLLC. She will be paid an hourly fee of $375 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. The Subchapter V trustee can be reached at: Ciara L. Rogers, Esq. Waldrep Wall Babcock & Bailey, PLLC 3600 Glenwood Avenue, Suite 210 Raleigh, NC 27612 Phone: (984) 480-2005 Email: crogers@waldrepwall.com About Edge Promo Team Edge Promo Team, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-03107) on August 13, 2025, listing between $100,001 and $500,000 in assets and between $1 million and $10 million in liabilities. Judge Pamela W. Mcafee presides over the case. William P. Janvier, Esq., at Stevens Martin Vaughn & Tadych, PLLC represents the Debtor as legal counsel. ELETSON HOLDINGS: Quinn Emanuel Thwarts Deposition Subpoena ----------------------------------------------------------- Judge Lewis J. Liman of the United States District Court for the Southern District of New York denied the motion filed by Intervenors Apargo Limited, Fentalon Limited, and Desimusco Trading Limited to compel the production of documents by Quinn Emanuel Urquhart & Sullivan, LLP, counsel to Cross-Petitioner Levona Holdings Ltd. in the case captioned as ELETSON HOLDINGS INC. and ELETSON CORPORATION, Cross-Respondents, -v- LEVONA HOLDINGS LTD., Cross-Petitioner, and APARGO LIMITED, FENTALON LIMITED, and DESIMUSCO TRADING LIMITED, Intervenors, Case No. 23-cv-07331-LJL (S.D.N.Y.). Quinn Emanuel's motion to quash is granted. On July 22, 2025, Quinn Emanuel moved to quash the deposition subpoena issued to it by Intervenors, pursuant to Federal Rule of Civil Procedure 45(d)(3). On Sept. 6, 2024, the Court granted Levona's motion for leave to file an amended answer to Eletson's operative petition to confirm the final arbitration award issued by the Honorable Ariel Belen of the Judicial Arbitration and Mediation Services, Inc. on Sept. 29, 2023, and an amended cross-petition to vacate the Award. The amended answer and amended cross-petition are based on documents that Eletson did not produce in the arbitration but ultimately were required to produce in a separate bankruptcy proceeding in the summer of 2023 (the "At-Issue Documents") regarding the purported purchase by Eletson of the Preferred Interests of Levona in Eletson Gas LLC. The arbitration hinged on Eletson's claim that it had exercised a purchase option for the Preferred Interests in Gas in March 2022. The At-Issue Documents reflected Eletson trying to raise money for the purchase of the Preferred Interests months after it had supposedly acquired those interests and at a price in excess of what Eletson would have had to pay if they were acquired, as Eletson claimed, through the exercise of a purchase option in March 2022. Levona claims that the documents should have been produced in the arbitration. On Levona's interpretation, the At-Issue Documents undermined the argument and testimony offered by Eletson during the arbitration. Motion to Compel Intervenors move to compel document discovery from Quinn Emanuel responsive to Intervenors' Requests for Production 4 and 19–25, broadly relating to but not limited to the timeline of the firm's awareness of the existence and content of the At-Issue Documents and obstacles to raising the issue of fraud in the arbitration within the otherwise applicable statute of limitations. According to Judge Liman, "Intervenors have not met the threshold set forth in In re Subpoena Issued to Dennis Friedman, 350 F.3d 65, 70 (2d Cir. 2003) to justify discovery requests to counsel: they have not shown that the need to take discovery of [Quinn Emanuel] justifies the burden and hardship imposed by the intrusion into the attorney-client relationship in these circumstances." The Court finds given the low relevance of the information requested to Intervenors' claims and the clear "risk of encountering privilege and work-product issues," Intervenors' document requests to Quinn Emanuel constitute an undue burden. Accordingly, Intervenors' motion to compel a response to RFPs 4 and 19–25 is denied, with the narrow exception of the documents that Quinn Emanuel has already produced "sufficient to show" when the At-Issue Documents were first received. Motion to Quash Quinn Emanuel moves to quash the Rule 30(b)(6) deposition subpoena served by Intervenors to the firm, which seeks testimony regarding, inter alia, the At-Issue Documents and the firm's "diligence and timing in seeking information concerning" the At Issue Documents. Attorneys do not have absolute protection from being deposed in relation to their client's cases. However, the Court finds Intervenors have proffered no basis to believe that Quinn Emanuel has any knowledge of the facts relevant to the At-Issue Documents, their contents, or their relationship to Peter Kanelos that would not be available through deposition of Levona's representatives, or through deposition of related third parties Accordingly, the motion to quash the deposition subpoena is granted. A copy of the Court's Memorandum and Order dated August 8, 2025, is available at https://urlcurt.com/u?l=zcEm5P from PacerMonitor.com. About Eletson Holdings Eletson Holdings Inc. is a family-owned international shipping company, which touts itself as having a global presence with headquarters in Piraeus, Greece as well as offices in Stamford, Connecticut, and London. At one time, Eletson claimed to own and operate one of the world's largest fleets of medium and long-range product tankers and boasted a fleet consisting of 17 double hull tankers with a combined capacity of 1,366,497 dwt, 5 LPG/NH3 carriers with a combined capacity of 174,730 cbm and 9 LEG carriers with capacity of 108,000 cbm. Eletson Holdings, a Liberian company, is Eletson's ultimate parent company and is the direct parent and owner of 100% of the equity interests in the two other debtors, Eletson Finance (US) LLC, and Agathonissos Finance LLC. Eletson and its two affiliates were subject to involuntary Chapter 7 bankruptcy petitions (Bankr. S.D.N.Y. Case No. 23-10322) filed on March 7, 2023 by creditors Pach Shemen LLC, VR Global Partners,L.P. and Alpine Partners (BVI), L.P. The petitioning creditors are represented by Kyle J. Ortiz, Esq., at Togut, Segal & Segal, LLP. On Sept. 25, 2023, the Chapter 7 cases were converted to Chapter 11 cases. The Honorable John P. Mastando, III is the case judge. Lawyers at Reed Smith represent the Debtors as bankruptcy counsel. Riveron RTS served as the Debtors' Domestic Financial Advisor; Harold Furchtgott-Roth as Economic Expert; and Kurtzman Carson as Voting Agent. The U.S. Trustee for Region 2 appointed an official committee of unsecured creditors. The committee tapped Dechert, LLP as its legal counsel and FTI Consulting as the Committee's financial advisors. ENI DIST: Lender Seeks to Prohibit Cash Collateral Access --------------------------------------------------------- ARBA Credit Investors III, LP asked the U.S. Bankruptcy Court for the District of Maryland, Baltimore Division, to prohibit ENI Dist, Inc. from using cash collateral. On August 8, ARBA filed an emergency motion in the Chapter 11 bankruptcy case of the Debtor, seeking to prohibit the Debtor from using cash collateral. ARBA asserted it holds secured claims against the Debtor exceeding $5.8 million, based on two promissory notes: 1. A $4.5 million note (originating from a 2017 note with several amendments) 2. A $1.5 million note dated December 27, 2022 Both notes are secured by commercial security agreements and perfected by UCC-1 financing statements, originally with Fulton Bank, N.A., which ARBA now holds as successor. ARBA contended that: 1. The Debtor is in default under the notes. 2. The proceeds of the Debtor's inventory and accounts receivable qualify as cash collateral under 11 U.S.C. Section 363(a). 3. The Debtor is actively operating its business and therefore using that collateral. 4. ARBA does not consent to the use of cash collateral. 5. The Debtor has not received court approval to use the collateral as required by law. ARBA is represented by: David S. Musgrave, Esq. Gordon Feinblatt, LLC 1001 Fleet Street, Suite 700 Baltimore, MD 21202 Phone/Fax: (410) 576-4194 dmusgrave@gfrlaw.com About ENI DIST Inc. ENI DIST Inc. imports and distributes Asian food products from South Korea and Southeast Asia. The Company supplies dry, refrigerated, and frozen goods to wholesale distributors, chain retailers, foodservice distributors, and independent supermarkets. It operates a warehouse for handling various product types and offers both local and container drop shipment services across the United States. ENI DIST sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 25-17220) on August 6, 2025. In its petition, the Debtor reported between $10 million and $50 million in assets and liabilities. The Debtor is represented by Weon G. Kim, Esq., at Weon G Kim Law Office. F.I.A. LLC: Claims to be Paid from Investment & Rental Income ------------------------------------------------------------- F.I.A. LLC filed with the U.S. Bankruptcy Court for the Western District of Louisiana a Plan of Reorganization dated August 11, 2025. The Debtor was organized in 2006 for the purpose of owning and leasing out commercial real estate. The Debtor owns certain pieces of commercial real estate in Natchitoches and Many, Louisiana, which it leases for use of office space. David and Mary Kay Waskom each own 50% of Debtor, and David Waskom is the manager. The Debtor is organized under Louisiana law. Originating pre-petition, BOM Bank is the lender on a loan to Debtor for three notes, all secured by Debtor's real property. Debtor also guaranteed a promissory note owed by Ashlar Holdings, LLC to BizCapital BIDCO II, LLC, and this note is secured by Debtor's real property, as well as Debtor's inventory, fixtures, and equipment. Further, Debtor borrowed form the United States Small Business Administration, and this debt is secured by a UCC financing statement covering all of Debtor's personal property, including inventory, equipment, and accounts receivable. Debtor could not keep up with these loans as they came due, and both BOM Bank and BizCapital filed petitions for executory process to enforce their loans. Debtor filed this Chapter 11 case shortly before a scheduled Sheriff's sale on BizCapital's collateral. Class 4 consists of General Unsecured Claims. Debtor is not aware of any general unsecured claims or member of this Class. As there are no known creditors or claims in this class, Class 4 is neither impaired nor unimpaired under the Plan, and therefore shall not receive a vote on the Plan. Class 5 is composed of David Waskom and Mary Kay Waskom in their capacity as members and owners of the Debtor. Class 5 shall retain their Equity Interests after the Effective Date of the Plan. Class 5 is not impaired under the Plan and shall be deemed to accept the Plan. The Plan will be funded primarily from the receipt of investment funds raised by the Ashlar Companies. The Ashlar Companies are currently raising capital for investment in its products, and expect to receive significant investments on or before the effective date of this Plan. Once received, the Ashlar Companies will completely repay its debt to the Class 2 Creditor, and Debtor will use the additional funds to repay Classes 1 and 3 in full. Debtor will make these payments on the effective date of this Plan, with each Class of Creditor receiving the full amount owed. The Debtor will also continue to receive monthly rental income from its commercial office buildings, and this income will fund to the interim compensation of professionals and the Subchapter V Trustee until Debtor can repay in full all Classes of Creditors on the effective date of this Plan. On Confirmation of the Plan, all property of the Debtor, tangible and intangible, including, without limitation, licenses, furniture, fixtures, and equipment, will revert, free and clear of all Claims and Equitable Interests except as provided in the Plan, to the Debtor. The Debtor expects to have sufficient cash on hand to make the payments required on the Effective Date. A full-text copy of the Plan of Reorganization dated August 11, 2025 is available at https://urlcurt.com/u?l=yVGEg4 from PacerMonitor.com at no charge. Counsel to the Debtor: Bradley L. Drell, Esq. Heather M. Mathews, Esq. Conner L. Dillon, Esq. Gold Weems Bruser Sues & Rundell, APLC P.O. Box 6118 Alexandria, LA 71307-6118 Tel: (318) 445-6471 Fax: (318) 445-6476 Email: bdrell@goldweems.com About F.I.A. LLC F.I.A. LLC is a real estate lessor based in Louisiana, with its principal assets located at 564 Hwy. 171 Bypass, Many, La. F.I.A. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. La. Case No. 25-80288) on May 13, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. Judge Stephen D. Wheelis handles the case. The Debtor is represented by Conner L. Dillon, Esq., at Gold, Weems, Bruser, Sues & Rundell, APLC. FLOATUS INC: Seeks 120-Day Extension of Plan Filing Deadline ------------------------------------------------------------ Floatus, Inc. asked the U.S. Bankruptcy Court for the District of Maryland to extend its exclusive periods to file a plan of reorganization and disclosure statement, and to obtain acceptance thereof for additional 120 days. As was explained during the disposition of the Debtor's Motion to Use Cash Collateral, the success of this case is predicated on the income the Debtor expects to generate from the two Aescape robotic massage systems. The Debtor asserts that it is not expected that the its Monthly Operating Reports will start to reflect that income by the time the Debtor's Plan and Disclosure statement are due on September 5, 2025. The Debtor further asserts that if the Debtor's 120-day extension request is granted, the company will have the time necessary to (a) determine whether the robotic massage systems are generating the predicted income; and (b) document that income increase in its MORs. The Debtor explains that it seeks the requested extension of the Exclusive Periods in good faith and submits that there is no risk of harm to the Debtor's creditors if this Court grants the requested extension. This case does not bear characteristics that would justify the denial of an extension of the Exclusive Periods. The Debtor claims that it is not seeking the extension of the Exclusive Periods to delay administration of this Chapter 11 case or to pressure creditors to accept an unsatisfactory plan. On the contrary, the purpose of the present motion is to resolve certain contingencies so that a Plan is more feasible. Floatus, Inc. is represented by: Michael P. Coyle, Esq. The Coyle Law Group 7061 Deepage Drive, Ste 101B Columbia, MD 21045 Tel: (443) 545-1215 About Floatus Inc. Floatus, Inc., operates a float therapy spa in Laurel, Maryland. Floatus filed a Chapter 11 bankruptcy petition (Bankr. D. Md. Case No. 25-12007) on March 9, 2025, listing up to $500,000 in both assets and liabilities. Felix Nelson, company owner, signed the petition. Michael P. Coyle, Esq., at The Coyle Law Group, is the Debtor's bankruptcy counsel. CDC Small Business Finance, as lender, is represented by: Eric S. Schuster, Esq. Funk & Bolton, P.A. 100 Light Street, Suite 1400 Baltimore, MD 21202 Tel: 410.659.4983 Fax: 410.659.7773 eschuster@fblaw.com FTX TRADING: SPCP Group v. Svalbard Holdings, et al. Case Tossed ---------------------------------------------------------------- Vice Chancellor Morgan T. Zurn of the Delaware Chancery Court granted the Svalbard Holdings Limited and Attestor Value Master Fund LP's motion to dismiss the amended complaint in the case captioned as SPCP Group, LLC v. Svalbard Holdings Limited, et al., Case No. 2024-0576-MTZ (Del. Ch.). The amended complaint is dismissed with prejudice for lack of personal jurisdiction. The Court finds Plaintiff failed to establish a prima facie case for personal jurisdiction over Defendants. This case is an offshoot of the bankruptcy of FTX Trading Ltd. and its related entities. An FTX customer had a claim for cryptocurrency and/or other assets held in one or more customer accounts before FTX's bankruptcy; that claim is subject to FTX's pending Chapter 11 bankruptcy proceeding in the United States Bankruptcy Court for the District of Delaware. The claim was held by nonparty Floating Point Group International, LLC ("Seller"). The claim's face value is approximately $10.5 million. In early July 2023, Seller agreed to sell the claim to plaintiff SPCP Group, LLC for pennies on the dollar: $1.36 million. Seller and Plaintiff executed a claims sale agreement. The CSA is governed by New York law and contains an arbitration clause. There is no reason to infer the CSA was negotiated in Delaware. Plaintiff is a Delaware limited liability company. Seller is a Cayman Islands limited liability company. The CSA did not close. Plaintiff alleges it did not close because Seller failed to satisfy a condition precedent, namely providing certain documents the CSA required by July 19, 2023. Later in July, Seller sold the claim to defendant Svalbard Holdings Limited ("Buyer"). Seller and Buyer entered into an Assignment of Claim Agreement on July 27. The ACA gave Buyer immediate ownership of the claim. After Seller sold the claim to Buyer, the claim "skyrocketed in value." The ACA is governed by New York law, and there is no reason to infer it was negotiated in Delaware. Buyer is a corporation incorporated in the Cayman Islands. It has bought over 200 FTX customer claims, and is a member of the Bankruptcy's Ad Hoc Committee of Non-US Customers of FTX.com. During negotiations, Seller was represented by Eversheds Sutherland (US) LLP out of Chicago. Eversheds also represents the Ad Hoc Committee. Buyer did not need to file a notice of transfer to be paid at all, or to own the claim. The ACA took care of all that. The ACA explains Buyer had "an undivided 100% participation interest" in the claim, and gives Buyer the option to file a notice of transfer with the Bankruptcy Court; it does not make a notice of transfer mandatory. Relatedly, the ACA obligates Seller to pay Buyer its distributions from the claim if the estate ever paid Seller instead of Buyer. Buyer caused a notice of transfer to be filed in the Bankruptcy Court. On Nov. 29, defendant Attestor Value Master Fund LP acted as Buyer's agent and filed a "Transfer of Claim Other Than For Security" in the Bankruptcy. Agent is an United Kingdom company, and is Buyer's sole member. Buyer assigned Agent its right to receive payments on the claim. Plaintiff commenced this action on May 30, 2024, asserting claims against Buyer and various Seller affiliates. Those defendants moved to dismiss on July 26, 2024. The Seller entities moved to dismiss in light of the CSA's arbitration clause. On Sept. 6, 2024, Plaintiff voluntarily dismissed the Seller entities and amended its complaint. The Amended Complaint removed the Seller entities and added Agent as a defendant. The Amended Complaint asserts three causes of action: (1) equitable conversion against Buyer and Agent, (2) tortious interference with contract against Buyer, and (3) unjust enrichment against Buyer and Agent. On Oct. 16, 2024, Defendants moved to dismiss the Amended Complaint under Court of Chancery Rule 12(b)(2) for lack of personal jurisdiction and Rule 12(b)(6) for failure to state a claim. Plaintiff asserts this Court has personal jurisdiction over the nonresident Defendants under 10 Del. C. Sec. 3104 because: (1) Buyer, through Agent, filed a notice of transfer in the Bankruptcy; (2) Buyer purchased and tortiously interfered with a "Delaware based asset" that is "subject to the Bankruptcy Case pending in the United States Bankruptcy Court for the District of Delaware"; (3) Buyer, through its assignee, will be paid for the Claim through the Bankruptcy; (4) Buyer is a member of the Ad Hoc Committee; and (5) Buyer is one of the largest creditors in the Bankruptcy. Plaintiff asserts this Court has jurisdiction over Agent because: (1) it filed the notice of transfer on Buyer's behalf; and (2) Buyer assigned the beneficial interest of some of its customer claims to Agent. Vice Chancellor Zurn concludes the notice of transfer lacks the requisite nexus to Plaintiff's claims. According to the Court, the ACA, not the notice of transfer, dictated ownership and rights to distribution. Vice Chancellor Zurn explains, "While the notice of transfer provided Defendants with notice of bankruptcy filings and direct distribution, those benefits are unrelated to Plaintiff's lost right to be paid on the claim, Defendants' alleged wrongful interference with that right, and Defendants' resultant ability to be paid." "Plaintiff's tortious interference and unjust enrichment claims are based on the two contracts to purchase the customer claim, which lack any Delaware ties. Defendants' administrative filing with the Bankruptcy Court months after allegedly busting Plaintiff's agreement to buy the claim lacks the requisite nexus to its claims based on busting that agreement." A copy of the Court's Opinion dated August 15, 2025, is available at https://urlcurt.com/u?l=FYcZDM About FTX Trading Ltd. FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 million in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10 showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The official committee of unsecured creditors tapped Paul Hastings as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as Delaware and conflicts counsel; FTI Consulting, Inc. as financial advisor; and Jefferies, LLC as investment banker. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. HAVOC BREWING: Court Extends Cash Collateral Access to Sept. 16 --------------------------------------------------------------- Havoc Brewing Company, LLC received a one-month extension from the U.S. Bankruptcy Court for the Eastern District of North Carolina to use cash collateral. The fifth interim order penned by Judge Pamela McAfee authorized the Debtor's interim use of cash collateral from August 16 to September 16 to pay the expenses set forth in its budget, subject to a 10% variance. The budget shows total operational expenses of $97,757.08 for the interim period. Celtic Bank and Catfish Haggen, LLC are the secured creditors that have interests in the Debtor's assets. As adequate protection for the Debtor's use of their cash collateral, the secured creditors will be granted a replacement lien on the Debtor's post-petition property, with the same validity, priority and extent as their pre-bankruptcy liens. These secured creditors may seek administrative expense claims under Section 507(b) if their interests are not adequately protected. The next hearing is scheduled for September 16. The Debtor's sole sources of revenue and income consist of the funds currently on hand and on deposit in its bank accounts and the income and revenue generated from the sale and distribution of its beverages and merchandise both at the Brewery and through third party retailers and wholesalers. Prior to its bankruptcy filing, the Debtor incurred certain indebtedness in connection with its business operations, in which creditors including Celtic Bank and Catfish Haggen took a security interest in certain property, proceeds, and other collateral owned by the Debtor. The funds in the possession of the Debtor, which were generated from business operations, as well as the proceeds generated from the collection of any outstanding accounts receivable and other post-petition operations, may constitute the cash collateral of these secured creditors. About Havoc Brewing Company LLC Havoc Brewing Company, LLC is a veteran-owned craft brewery based in Pittsboro, N.C. Founded in 2023, the company operates a 6,500-square-foot taproom that features award-winning beers, a coffee bar, and regular community events such as trivia nights, live music, and food trucks. Havoc Brewing Company sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-01498) on April 25, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. Judge Pamela W. McAfee handles the case. The Debtor is represented by: Joseph Zachary Frost Buckmiller & Frost, PLLC Tel: 919-296-5040 Email: jfrost@bbflawfirm.com J-K.A.B.S. TRANSPORTATION: Unsecureds Will Get 100% of Claims ------------------------------------------------------------- J-K.A.B.S. Transportation LLC, filed with the U.S. Bankruptcy Court for the Eastern District of Virginia a Plan of Reorganization under Subchapter V dated August 11, 2025. The Debtor is a Virginia based passenger transportation company providing premium shuttle and executive transport services throughout Virginia and adjacent regions. J KABS encountered financial distress due to (i) the total loss of a 2017 Mercedes Sprinter; (ii) the decision to sell a 2015 Mercedes Sprinter to right size the fleet and reduce fixed costs; (iii) elevated insurance premiums prior to fleet reduction; and (iv) debt service and arrearage obligations that strained liquidity. The Debtor's streamlined post sale fleet, consisting of the owned 2018 Ford E450 and two leased Cadillac Escalades, together with reduced insurance and restructured debt service, is projected to generate sufficient disposable income to fund this Plan on a monthly basis for sixty months without the need for further reorganization. The Debtor shall devote its projected monthly disposable income to this Plan for a period of sixty months following the Effective Date (the "Plan Period"), or until all Allowed Claims are paid as provided herein, whichever occurs first. Payments under this Plan are monthly (not quarterly). Plan payments are funded by ongoing business revenues, together with savings from (i) elimination of Class 1 debt service upon sale of the 2015 Sprinter and (ii) insurance expense reductions following fleet downsizing. Post confirmation monthly disposable income is projected at approximately $3,257. Beginning on the first day of business after the Effective Date, and continuing on the same day each month thereafter for sixty months, Debtor shall pay make Plan Payments of $1,563 per month (the "Plan Payments"). The sum of Plan Payments over the Plan Term equals $93,767.40. Class 6 consists of General Unsecured Claims. The allowed unsecured claims total $62,147.53. Holders will receive a total distribution equal to 100% of Allowed claims (i.e., $62,147.53 in aggregate), payable in equal monthly installments during months 18 through 60 of the Plan Period (approximately $1,445.29 per month in the aggregate for Class 6), subject to reconciliation as Disputed Claims are resolved. Interest: No post petition interest unless otherwise ordered. This Class is impaired. On the Effective Date, all Equity Interests shall revest, subject to this Plan. The holders of Equity Interests shall not receive any distribution on account of such interests unless and until all Allowed Claims have been paid as provided herein; provided, however, that reasonable compensation for services rendered to the Debtor may be paid in the ordinary course. The Debtor shall continue to operate in the ordinary course to fund Plan obligations. Income from operations will be used to make monthly Plan Payments. On or after the Effective Date, the spouse of Jimmie Bynum will manage the Debtor, compensation will be $2,500, which the Debtor submits is reasonable. A full-text copy of the Subchapter V Plan dated August 11, 2025 is available at https://urlcurt.com/u?l=Sh0hCr from PacerMonitor.com at no charge. The firm can be reached at: Martin C. Conway, Esq. Conway Law Group, PC 1320 Central Park Blvd., #200 Fredericksburg, VA 22401 Tel: (855) 848-3011 Fax: (575) 385-3334 Email: martin@conwaylegal.com About J-K.A.B.S. Transportation J-K.A.B.S. Transportation, LLC is a Virginia based passenger transportation company providing premium shuttle and executive transport services throughout Virginia and adjacent regions. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 25-31875) on May 11, 2025, with $50,001 to $100,000 in assets and $100,001 to $500,000 in liabilities. Martin C. Conway, Esq. at Conway Law Group, PC represents the Debtor as legal counsel. JAMES J. FRANK: Court Denies Confirmation of Chapter 11 Plan ------------------------------------------------------------ Judge Dale L. Somers of the United States Bankruptcy Court for the District of Kansas denied the confirmation of James J. Frank's Chapter 11 plan. On Feb. 12, 2025, Debtor filed his Second Amended Chapter 11 Small Business Plan of Reorganization. Creditor Kenneth Bruce Shaevel and the United States Trustee objected to confirmation of the Plan. Shaevel voted to reject the Plan. On April 22, 2025, the Court held an evidentiary hearing to consider the limited issue of whether the Plan meets the Bankruptcy Code's feasibility requirements for confirmation. Debtor is a lifelong construction manager. He testified that he started and ran several businesses upgrading electrical systems for efficiency through 2005, merged them to create a half-billion-dollar business, then left that business in 2015 to build a cell-tower installation and upgrade company. Five years ago, he got into the business of managing a group of companies that build and operate electric vehicle charging stations in Kansas and Colorado. Debtor is a 50% owner of the Businesses. The salary he draws from the Businesses is Debtor's primary source of income. Debtor filed this case primarily to manage a pre-petition judgment entered against him and in favor of Shaevel in a California employment contract lawsuit. The filed proofs of claim show primarily general unsecured debts, the largest of which is to Schaevel, claimed at $376,968.48. Debtor's Plan proposes to pay monthly payments to general unsecured creditors totaling $94,000 over five years. Plan payments begin at $500 per month, and increase each May to $1,100 in 2026, $1,600 in 2027, $2,100 in 2028, and $2,600 in 2029 until the end of the Plan. Based on projections attached to the Plan, Debtor intends to receive monthly salary from the Businesses beginning at $5,000 in 2025, then $5,500 in 2026, $6,050 in 2027, $6,655 in 2028, $7,320.50 in 2029, and $7,320.50 in the first four months of 2030. Total income projected includes Debtor's non-filing spouse's monthly income beginning at $2,938.82 and going up to $3,572.16 by the end of the Plan. Debtor argues that his plan is feasible because it is offered in good faith from a debtor with demonstrated work history who has a willingness to make the proposed plan payments. Shaevel argues that the plan is not based on the reality of Debtor's business, which is not profitable and survives on the capital infusions of Debtor's business partner, Bill O'Connor. The United States Trustee argues that the Debtor's business cannot consistently pay his salary, cannot survive without capital infusion, and does not provide realistic projections for future performance or growth. As evidence of the Businesses' financial condition, the Court admitted two Profitability Reports ending December 31, 2024. Debtor prepared the reports and believes they reflect the Businesses performance. The reports show negative net income for 2024 for four of the six businesses listed therein. Cash infused into EV Charging Holdings, LLC, HiOn EV, LLC, and EV Build, LLC includes primarily loan proceeds, with loans listed primarily as owed to Bill O'Connor, the holder of the remaining 50% interest in the Businesses. Debtor testified that no financial statements have been created. There is no other evidence before the Court about the financial details of the Businesses. As a result of Schaevel's vote, the Plan is nonconsensual, and the Court must examine feasibility under Sec. 1191(b). According to the Court, because Debtor's projected income is not firmly rooted in either past performance or predictions based on objective fact, his plan is infeasible and its confirmation must be denied. According to Judge Somers, "Even if it were presented with more robust projections for the Businesses' increased profitability based on objective facts, concerning increasing electric charging utilization, for example, the Plan cannot not meet the fortified feasibility test of Sec. 1191(c)(3) until it can stand on its own two feet. The Plan will remain infeasible under Sec. 1191(c)(3) until and unless the Businesses can survive without O'Connor's help. The Businesses are not profitable, and Debtor has not shown that they have or can become so. The Businesses, and so the Debtor, cannot stand on their own two feet. And so, the an is infeasible under Sec. 1191(c)(3) as well." He concludes, "To pass the Bankruptcy Code's feasibility tests, Debtor has the burden to show that his Plan provides a realistic and workable framework for success under Sec. 1129(a)(11) and that the Plan can be realistically carried out under Sec. 1191(c)(3). The Debtor has not presented sufficient evidence showing that the Plan is feasible." A copy of the Court's Memorandum Opinion and Order dated August 12, 2025, is available at https://urlcurt.com/u?l=IyP0Pm from PacerMonitor.com. James J. Frank filed for Chapter 11 bankruptcy protection (Bankr. D. Kan. Case No. 24-20779) on June 21, 2024, listing under $1 million in both assets and liabilities. The Debtor is represented by Colin Gotham, Esq. JONES REAL: Unsecureds to Get 50 Cents on Dollar in Plan -------------------------------------------------------- Jones Real Estate Properties, LLC filed with the U.S. Bankruptcy Court for the Northern District of New York a Plan of Reorganization for Small Business dated August 11, 2025. The Debtor is a limited liability company. Since 2016, the Debtor has been in the business of real property rentals. Debtor's business is run by Joshua Jones. The Debtor's current financial difficulties began during Covid due to non payment of rents from tenants. When the interest rate started going up, it became more difficult to keep up with the mortgage payments. A foreclosure on the Debtor's properties was scheduled for May 13, 2025. This Subchapter V was filed to stop the foreclosure sale and allow the Debtor to reorganize. The Plan Proponent's financial projections show that the Debtor will have projected disposable income of $2,423.47 The final Plan payment is expected to be paid on December 1, 2030. Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately 50 cents on the dollar. This Plan also provides for the payment of administrative and priority claims. Class 4 consists of Non-priority unsecured creditors. Unsecured creditors will receive a total of $26,451.95 which will be distributed pro rata to all allowed unsecured claims. Debtor will pay a total of $440.87 per month to be distributed to unsecured creditors pro rata. It is anticipated that this will yield approximately 50 cents on the dollar of all unsecured allowed claims. This Class is impaired. Class 7 consists of Equity security holders of the Debtor. Equity interest holders shall receive 100% of the shareholder interests in the reorganized Debtor. The Plan will be implemented by the Debtor remitting payment to creditors from the Debtor's cash flow derived from income as indicated in the projections. Upon Confirmation of the Plan, all property of the Debtor, tangible and intangible, including, without limitation, licenses, furniture, fixtures, and equipment, will revert free and clear of all Claims and Equitable Interests except as provided in the Plan, to the Debtor. The Debtor expects to have sufficient cash on hand to make the payments required on the Effective Date. A full-text copy of the Plan of Reorganization dated August 11, 2025 is available at https://urlcurt.com/u?l=Mqma6L from PacerMonitor.com at no charge. Counsel to the Debtor: Peter A. Orville, Esq. Orville & McDonald Law PC 30 Riverside Dr. Binghamton, NY 13905 Telephone: (607) 770-1007 About Jones Real Estate Properties Jones Real Estate Properties, LLC has been in the business of real property rentals since 2016. The Debtor sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 25-30378) on May 12, 2025, listing under $1 million in both assets and liabilities. Judge Wendy A. Kinsella oversees the case. Peter A. Orville, Esq., at Orville & McDonald Law PC serves as the Debtor's counsel. Savannah Bank, as lender, is represented by: Robert N. Gregor, Esq. Klausner Cook, PLLC 179 Graham Road Ithaca, NY 14853 Tel: (518) 222-1535 rob@klausnercook.com JOSEPH FORD: TL Can't Extend Time to File Sec. 523(c) Complaint --------------------------------------------------------------- In the appeal styled TL90108 LLC, Petitioner-Appellant, versus JOSEPH LOUIS FORD, III, Respondent-Appellee, No. 21-10456 (11th Cir.), Judges Jill A. Pryor, Kevin C. Newsom and Barbara Lagoa of the United States Court of Appeals for the Eleventh Circuit affirmed the order of the United States Bankruptcy Court for the Southern District of Florida denying TL90108 LLC's motion to extend the time to file its Sec. 523(c) complaint. This appeal raises the question whether equitable tolling applies to Federal Rule of Bankruptcy Procedure 4007(c)'s deadline for a creditor to object, through the filing of a complaint under 11 U.S.C. Sec. 523(c), to the discharge of a debt on the basis that the debt was fraudulently obtained. Appellee Joseph Ford sought to discharge his debts by filing a bankruptcy petition. After the Rule 4007(c) deadline for objecting expired, appellant TL90108 LLC moved for leave to file a Sec. 523(c) complaint seeking a ruling that Ford's debt to TL could not be discharged because Ford obtained the debt by fraud. The bankruptcy court denied TL's motion after concluding that its complaint was untimely and Alton foreclosed the possibility of equitable tolling. On appeal, TL argues that the bankruptcy court erred in denying its motion. It says the bankruptcy court should have found Alton no longer controlling and concluded that TL was entitled to equitable tolling based on Ford's fraud. TL also argues its due process rights were violated because it received inadequate notice about Ford's bankruptcy before the filing deadline expired. In Kontrick v. Ryan, 540 U.S. 443 (2004), the Supreme Court examined Federal Rule of Bankruptcy Procedure 4004. The Supreme Court held that Rule 4004 was a nonjurisdictional claim-processing rule and the debtor had forfeited the rule's protection by waiting too long to raise it. Like Rule 4007, Rule 4004 imposes deadlines for certain bankruptcy filings. At issue in Kontrick was whether a debtor could raise Rule 4004 as a defense at any point in the bankruptcy proceeding -- because it was a jurisdictional rule -- or whether it instead could be forfeited if not. Although the Supreme Court concluded that Rule 4004 was a nonjurisdictional claim-processing rule, it stopped short of deciding whether Rule 4004's time limits were subject to equitable tolling. After Kontrick, the Court considered, in Holland v. Florida, 560 U.S. 631 (2010), whether the nonjurisdictional statute of limitations in the Antiterrorism and Effective Death Penalty Act may be equitably tolled. The Court concluded that "a nonjurisdictional federal statute of limitations is normally subject to a rebuttable presumption in favor of equitable tolling." Thus, based on the combination of Kontrick and Holland, the limitations period in Rule 4004 -- closely related to Rule 4007 -- is presumably subject to equitable tolling. TL contends "Kontrick eliminated the core basis for Alton by establishing that Rule 4007(c) is not jurisdictional." It argues that Rule 4007(c) instead establishes a "non-jurisdictional claim-processing" rule. According to the Circuit Judges, "TL's argument is foreclosed by our binding precedent. We concluded in In re Alton, 837 F.2d 457 (11th Cir. 1988) that 'the language of 11 U.S.C. Sec. 523 makes actual notice of the bankruptcy case sufficient to impose a duty-to-inquire on the creditor. So, under Alton, TL was placed on inquiry notice before the Rule 4007(c) deadline when it discovered that Ford had declared bankruptcy. Although we are sympathetic to TL's position that the inquiry may prove to be difficult when the debtor conceals the existence of its debt to the creditor, due process requires no notice beyond what TL received here. TL's due process challenge to the bankruptcy court's order denying its motion to file an untimely Sec. 523(c) complaint fails under our prior-panel-precedent rule. No subsequent Supreme Court decision has abrogated Alton's holding that official notice of the bankruptcy proceeding puts creditors on inquiry notice and satisfies due process." They hold, "Alton remains controlling precedent. Although some of Alton's reasoning is inconsistent with Kontrick and Holland, under our strict prior-panel-precedent rule the case has not been so undermined that we need not follow it. Alton thus compels us to conclude that Rule 4007(c)'s deadline may not be tolled based on equitable considerations. Alton also requires us to reject TL's due process challenge. We thus affirm the bankruptcy court's order denying TL's motion to extend the time to file its Sec. 523(c) complaint." A copy of the Court's Opinion dated August 8, 2025, is available at https://urlcurt.com/u?l=ZP7kH6 Joseph Louis Ford, III, sought Chapter 11 protection (Bankr. S.D. Fla. Case No. 19-10309) on Jan. 9, 2019. The Debtor tapped Kenneth R. Noble, Esq., as counsel. On Oct. 3, 2019, the Court appointed Joseph Santini as the broker and Lisa Bradley as the real estate agent for the Debtor. LAGUNA RESERVE: Case Summary & 30 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Laguna Reserve Apts Investor LLC 100 Franklin Square Drive Suite 401 Somerset NJ 08873 Business Description: Laguna Reserve Apts Investor LLC acquires, manages, and operates residential apartment communities in the United States, focusing on multi-unit properties. It operates within the real estate investment and property management sector. The Debtor has requested that its Chapter 11 proceedings be jointly administered with CBRM Realty Inc. and related cases under Lead Case No. 25-15343. Chapter 11 Petition Date: August 17, 2025 Court: United States Bankruptcy Court District of New Jersey Case No.: 25-18643 Judge: Hon. Michael B. Kaplan Debtor's Counsel: Andrew Zatz Samuel P. Hershey, Esq. Barrett Lingle, Esq. WHITE & CASE LLP 1221 Avenue of the Americas New York, New York 10020 Tel: (212) 819-8200 Email: azatz@whitecase.com sam.hershey@whitecase.com barrett.lingle@whitecase.com AND Gregory F. Pesce, Esq. WHITE & CASE LLP 111 South Wacker Drive Chicago, Illinois 60606 Tel: (312) 881-5400 Email: gregory.pesce@whitecase.com AND Kenneth A. Rosen, Esq. KEN ROSEN ADVISORS PC 80 Central Park West New York, New York 10023 Tel: (973) 493-4955 Email: ken@kenrosenadvisors.com Estimated Assets (on a consolidated basis): $100 million to $500 million Estimated Liabilities (on a consolidated basis): $100 million to $500 million The petition was signed by Elizabeth A. LaPuma as independent fiduciary. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/4BEPORQ/Laguna_Reserve_Apts_Investor_LLC__njbke-25-18643__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Customers Bank Unsecured Notes $41,500,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 2. Federated Insurance Companies Unsecured Notes $32,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 3. Cincinnati Financial Unsecured Notes $29,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 4. Spano Investor LLC Judgment Creditor $22,360,805 787 7th Avenue, 13th Floor New York, New York 10019 Attn: Adam C. Rogoff Tel: (212) 715-9285 Email: ARogoff@kramerlevin.com 5. Sagicor Life Insurance Unsecured Notes $16,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 6. AQS LLC Unsecured Notes $12,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 7. Adams Bank & Trust Unsecured Notes $12,000,000 Attn: Bruce Morgan Email: bruce@galacticlitigation.com 8. CKD Funding LLC Mortgage $10,927,319 Attn: William A. Goldman Tel: (212) 745-9546 Email: william.goldman@afslaw.com 9. Bar Harbor Bank & Trust Unsecured Notes $9,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 10. CFBank Unsecured Notes $7,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 11. Thompson Investment Unsecured Notes $7,000,000 Management Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 12. NexBank Unsecured Notes $7,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 13. LL Funds Unsecured Notes $4,750,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 14. Cleveland International Fund Mortgage $4,500,000 Attn: Adam Blackman Tel: (216) 245-0609 Email: Blackman@Clevelandinternationalfund.com 15. First Dakota Unsecured Notes $3,000,000 Financial Corporation Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 16. NFC Investments Unsecured Notes $3,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 17. Calamos Advisors LLC Unsecured Notes $3,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 18. Citizens State Bank (Ontonagon) Unsecured Notes $2,500,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 19. American Financial Group (AMM) Unsecured Notes $2,500,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 20. Gulf Coast Bank & Trust Company Unsecured Notes $2,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 21. NexAnnuity Unsecured Notes $2,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 22. Strada Education Network Unsecured Notes $1,500,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 23. Cattaraugus County Bank Unsecured Notes $1,500,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 24. AmeriServ Financial, Inc. Unsecured Notes $1,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 25. Jacques de Saint Phalle Unsecured Notes $1,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 26. John Beckelman Unsecured Notes $1,000,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 27. LAGSP LLC Services $821,000 4507 Pond Hill Road San Antonio, Texas 78231 Attn: Justin Utz Tel: (210) 733-6133 Email: JUtz@lynd.com 28. Lynd Management Group Services $544,734 4507 Pond Hill Road San Antonio, Texas 78231 Attn: Justin Utz Tel: (210) 733-6133 Email: JUtz@lynd.com 29. Verimore Bank/First Missouri Unsecured Notes $500,000 Bank Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com 30. VR Asset Management Unsecured Notes $500,000 Attn: James Millar Tel: (212) 248-3264 Email: james.millar@faegredrinker.com LZA REAL PROPERTIES: Seeks Cash Collateral Access ------------------------------------------------- LZA Real Properties West, LLC asked the U.S. Bankruptcy Court for the Central Valley of California, San Fernando Valley Division, for authority to use cash collateral and provide adequate protection. The Debtor owns a fully leased 4.13-acre commercial property in Spring, Texas, improved with a 19,950-square-foot office/warehouse facility generating $25,578.38 in monthly rental income. The rental income constitutes cash collateral potentially subject to the liens of multiple creditors: CRE Loan 2025-1 LLC (via assignment from Flash Raise Funding), Chetan and Hina Patel and related entities, Stallion Texas Real Estate Fund and affiliates, and Matthew Wiggins. The Debtor argued that the continued use of this income is essential to maintain operations, preserve property value, and maximize recovery for creditors through an anticipated reorganization. To provide adequate protection to secured creditors, the Debtor proposed to grant replacement liens on post-petition rental income, to the same extent and priority as pre-petition liens, subject to court validation. These replacement liens would exclude unencumbered property, Chapter 5 avoidance actions, and any surcharges under 11 U.S.C. Section 506(c). The use of funds will be regulated by a court-approved operating budget, and a carve-out is requested for professional fees incurred by the debtor and U.S. Trustee. The Debtor further requested emergency consideration of the motion as a first-day matter and affirms that notice has been provided to all secured creditors, the twenty largest unsecured creditors, and the U.S. Trustee. A court hearing is scheduled for September 11. A copy of the motion is available at https://urlcurt.com/u?l=az9M2u from PacerMonitor.com. About LZA Real Properties West LLC LZA Real Properties West, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-11219-smr) on August 4, 2025. In the petition signed by Lynn Z. Antoniono, owner and manager, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Shad Robinson oversees the case. Kimberly Nash, Esq., at Law Office of Kimberly Nash P.C., represents the Debtor as legal counsel. M & N STRUCTURES: Gets OK to Use Cash Collateral Until Aug. 26 -------------------------------------------------------------- M & N Structures, Inc. received another extension from the U.S. Bankruptcy Court for the Eastern District of New York to use cash collateral to pay its operating expenses. The court's order authorized the Debtor to use up to $231,678.04 of cash (including cash collateral potentially subject to liens of BMO Bank N.A. and the U.S. Small Business Administration) through Aug. 26 in accordance with its budget. As adequate protection for the Debtor's use of their cash collateral, both secured creditors will be granted replacement liens on property acquired by the Debtor after its Chapter 11 filing, with the same priority and extent as their pre-bankruptcy liens. The replacement liens do not apply to any Chapter 5 claims. In addition, the Debtor was ordered to make monthly payments of $15,125 and $2,250 to BMO and SBA, respectively, and keep their collateral insured as further protection. About M & N Structures Inc. M & N Structures, Inc. provides structural steel fabrication and design-build services across Minnesota and surrounding states. It specializes in in-house 3D modeling, BIM detailing, CNC-equipped fabrication, and steel erection. M & N serves commercial, industrial, and energy-sector projects from its facility in Winsted, Minnesota. M & N sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Minn. Case No. 25-42489) on July 30, 2025, listing $3,092,696 in total assets and $5,246,089 in total liabilities. Jonathan Henriksen, president of M & N, signed the petition. Cameron Lallier, Esq., at Bassford Remele, A Professional Association is the Debtor's legal counsel. BMO Bank, N.A., as lender, is represented by: James M. Jorissen, Esq. Taft Stettinius & Hollister, LLP 2200 IDS Center 80 South Eighth Street Minneapolis, MN 55402 Telephone: 612-977-8400 Facsimile: 612-977-8650 jjorissen@taftlaw.com MAGLEV ENERGY: Gets Extension to Access Cash Collateral ------------------------------------------------------- Maglev Energy, Inc. received another extension from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to use cash collateral. The sixth interim order signed by Judge Catherine Peek McEwen 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 by its secured creditor, the U.S. Small Business Administration. The Debtor projects total operational expenses of $3,960.00 for August. The Debtor's authorization to access its cash collateral will continue until further order of the court. As adequate protection for the Debtor's use of their cash collateral, the SBA and other creditors with a security interest in the cash collateral will be granted post-petition liens on the cash collateral to the same extent and with the same validity and priority as their pre-bankruptcy liens. In addition, the Debtor was ordered to keep the secured creditors' collateral insured. About Maglev Energy Maglev Energy, Inc., a company in Seminole, Fla., engineers motor and generator technology including permanent magnet alternator, vertical wind turbine, and auxiliary power unit. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06552) on Nov. 5, 2024, with $241,312 in assets and $2,384,522 in liabilities. Jon Harms, executive vice president, signed the petition. Judge Catherine Peek Mcewen oversees the case. The Debtor is represented by: Jake C. Blanchard, Esq. Blanchard Law, P.A. Tel: 727-531-7068 Email: jake@jakeblanchardlaw.com MARK REAL ESTATE: UST's Motion to Dismiss Bankruptcy Case Tossed ---------------------------------------------------------------- Judge Peter G. Cary of the United States Bankruptcy Court for the District of Maine denied in its entirety the motion of William K. Harrington, the United States Trustee for Region 1, to dismiss the Chapter 11 bankruptcy case of The Mark Real Estate Holdings, LLC. The motion rests largely on the arguments made in the United States Trustee's Motion to Vacate Order Approving Settlement Agreement and Term Sheet. According to the Court, the UST makes one additional argument not raised in the Motion to Vacate, which is the vague assertion that the parties have all of the relief they need and the Debtor has no reorganization purpose. The UST cites In re Capital Food Corp., 490 F.3d 21 (1st Cir. 2007) as support for its argument that lack of a reorganizational purpose constitutes cause for dismissal under 11 U.S.C. Sec. 1112(b)(4). According to Judge Cary, "Capital Food Corp. is inapposite to this case because it discusses a lack of reorganizational purpose as just one factor in that court's determination as to whether the debtor filed its petition in good faith." The Court agrees with the Debtor in this case that this is generally the context in which a reorganizational purpose is discussed. As the Debtor notes, the UST has not alleged bad faith in this case. Judge Cary concludes, "This case has allowed the Debtor to structure its own liquidation in an orderly fashion. Both the Debtor and the secured creditors seek to resolve their controversies through a sale under 11 U.S.C. Sec. 363 which will maximize the value of the estate's sole asset, address the claims of the three remaining creditors, and resolve the controversies outlined in the order denying the Motion to Vacate. Dismissal would only result in reopening those controversies and adding additional cost and delay to the interested parties." The UST tried to convince Judge Cary to vacate his June 24, 2025 order approving the Debtor's application to approve a compromise and term sheet. Counsel for the UST argued that the Debtor's relinquishing control of the bankruptcy case to Builders Capital Financing, LLC and Titan Funding, LLC is an abrogation of its fiduciary obligation; and that the Debtor violated the Bankruptcy Code by conferring upon a construction advisor certain powers belonging solely to a debtor-in-possession or a trustee. The UST also asserted that the construction advisor is the equivalent of a receiver. The Court considered these arguments at the June hearing and ultimately decided they were without merit. The UST raised the same arguments at the hearing on the motion to vacate on August 12, 2025. The Court held that the UST did not meet its burden under Fed. R. Civ. P. 59(e), as made applicable by Fed. R. Bankr. P. 9023(a) and, in any event, the Court properly exercised its discretion in approving the Compromise. A copy of the Court's Order dated August 13, 2025, is available at https://urlcurt.com/u?l=9uTGhK from PacerMonitor.com About The Mark Real Estate Holdings LLC The Mark Real Estate Holdings LLC is developing "The Mark," a four-story, 45-unit residential project at 100 U.S. Route 1 in Cumberland, Maine. Slated for first move-ins in spring 2025, the building will feature one- and two-bedroom market-rate apartments and condos, targeting renters and buyers seeking upscale, coastal-accessible living just north of Portland. The Mark Real Estate Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Maine Case No. 25-20100) on April 22, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. The Debtor is represented by Adam Prescott, Esq. at BERNSTEIN SHUR SAWYER & NELSON, P.A. MEATHEADZ LLC: Unsecureds Will Get 25% of Claims in Plan -------------------------------------------------------- Meatheadz, LLC filed with the U.S. Bankruptcy Court for the District of New Jersey a Plan of Reorganization for Small Business dated August 11, 2025. The Debtor operates a restaurant located in Lawrenceville, New Jersey that specializes in cheesesteak sandwiches. The Debtor is proposing a plan of reorganization that will be funded from the continued operations of the restaurant. The Debtor has two secured creditors Bancorp Banka nd the U.S. Small Business Administration. The Debtor has remained current on its payments to its secured creditors since the filing of the Chapter 11 case. Bancorp Bank has filed a proof of claim in a total amount due of $61,698.19. The Debtor's regular monthly payment is $1,900 and the Debtor shall continue to pay Bancorp Bank according to the terms of its Note. Class 3 consists of General Unsecured Claims. The scheduled general unsecured creditors and the claims filed amount to $233,959. The schedule claims of M&T Business Card, Metropolitan Foods and Sysco will not receive distributions. Those creditors were scheduled as disputed and unliquidated and the creditor did not file a proof of claim. Class 3 shall receive a monthly payment of $2,340 from March 1, 2028 to April 1, 2030. This Class will receive a distribution of 25% of their allowed claims. This Class is impaired. The plan will be funded from the continuing operations of the restaurant. A full-text copy of the Plan of Reorganization dated August 11, 2025 is available at https://urlcurt.com/u?l=dYxOjj from PacerMonitor.com at no charge. Counsel to the Debtor: COLLINS, VELLA & CASELLO, LLC Joseph M. Casello, Esq. 2430 Route 34, B12 Manasquan, NJ 08736 Phone: (732) 751-1766 Email: jcasello@cvclaw.net About Meatheadz LLC Meatheadz, LLC is a food service business located in Lawrence Township, N.J. Meatheadz sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-15120) on May 13, 2025. In its petition, the Debtor reported estimated assets between $50,000 and $100,000 and estimated liabilities between $500,000 and $1 million. Judge Christine M. Gravelle handles the case. The Debtor is represented by Joseph Casello, Esq., at Collins, Vella & Casello. NICK'S PIZZA: Court Extends Cash Collateral Access to Dec. 2 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Illinois issued its fifth interim order authorizing Nick's Pizza & Pub, Ltd. to use cash collateral. The Debtor was authorized to continue to use its lenders' cash collateral to pay the expenses set forth in its budget. To the extent funds are available from operations after creating a $75,000 reserve and after paying attorneys' fees pursuant to Section 330 of the Bankruptcy Code, the Debtor was authorized to make monthly partial rent payments for its Crystal Lake and Elgin restaurant in an amount in excess of the reserve amount. The Debtor's right to use the lenders' cash collateral will expire on December 2 or the date of the final hearing. The next hearing is scheduled for November 26. The Debtor's lenders are St. Charles Bank & Trust Company, N.A., Rewards Network Establishment Services, Inc. and On Deck Capital, Inc. St. Charles Bank & Trust, successor by merger with First Community Bank, asserts that it holds a lien on assets of the Debtor pursuant to UCC-1 financing statements it filed against the Debtor. The lender provided a $5.725 million loan to the Debtor to, among other things, assist in the refinancing of the Debtor's real property and construction of a restaurant. Similar security interests may be asserted by Rewards pursuant to its 2017 Receivables Purchase and Marketing Agreement with the Debtor. The agreement included language granting a security interest in certain property owned by the Debtor. A copy of the court's order and the budget is available at https://shorturl.at/NHXZc from PacerMonitor.com. About Nick's Pizza & Pub, Ltd. Nick's Pizza & Pub, Ltd. is a family-friendly restaurants in Crystal Lake and Elgin, serving thin-crust Chicago pizza. Nick's Pizza & Pub filed Chapter 11 petition (Bankr. N.D. Texas Case No. 24-18037) on December 2, 2024, with assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Nicholas Sarillo, president of Nick's, signed the petition. Judge Janet S. Baer handles the case. Matthew T. Gensburg, Esq., at Gensburg Calandriello & Kanter, P.C. is the Debtor's legal counsel. St. Charles Bank & Trust Company, N.A., as lender, is represented by: John Adam Powers, Esq. Brotschul Potts, LLC 1 Tower Lane, Suite 2060 Oak Brook Terrace, IL 60181 Phone: (312) 551-9003 apowers@brotschulpotts.com NLC ENERGY: Case Summary & 22 Largest Unsecured Creditors --------------------------------------------------------- Debtor: NLC Energy Denmark LLC f/d/b/a NEW Organic Digestion LLC 10 Tara Blvd, Suite 501 Nashua, NH 03062 Business Description: NLC Energy Denmark LLC, originally founded in 2008 as NEW Organic Digestion LLC, develops, owns, and operates renewable natural gas facilities in Denmark, Wisconsin, converting organic waste into clean energy, organic nutrients, liquid carbon dioxide, and dry ice. The Company provides capital and in-house expertise in operations, engineering, government incentives, and carbon credit monetization, using anaerobic digestion to help farms and food manufacturers reduce carbon footprints and meet ESG objectives. Since gaining full operational control in 2020, NLC Energy has expanded its multi-feedstock facilities, integrated manure from multiple satellite farms, built a decant station with interstate pipeline access, and produces ISBT-certified beverage-grade liquid CO2 and food-grade dry ice. Chapter 11 Petition Date: August 16, 2025 Court: United States Bankruptcy Court Eastern District of Wisconsin Case No.: 25-24634 Judge: Hon. Katherine M. Perhach Debtor's Counsel: Jerome R. Kerkman, Esq. KERKMAN & DUNN 839 N. Jefferson St., Ste. 400 Milwaukee, WI 53202-3744 Tel: 414-277-8200 E-mail: jkerkman@kerkmandunn.com Estimated Assets: $50 million to $100 million Estimated Liabilities: $100 million to $500 million The petition was signed by Welles Hatch as chief financial officer. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/CXVPGTA/NLC_Energy_Denmark_LLC__wiebke-25-24634__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 22 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. The Regents of the Uni. Of $8,600,000 California 111 Franklin Street Oakland, CA 94607 Email: Bianca.LaPaz@ucop.edu 2. Catholic Order of Foresters $1,965,318 Attn: Investment Department 355 Shuman Boulevard Naperville, IL 60563 Email: bguzman@catholicforester.org 3. Federated Life $4,716,763 Insurance Company 121 East Park Square Owatonna, MN 55060 Email: investments1@fedins.com 4. Federated Mutual Insurance Company $9,433,526 Attn: Donna Ennis, Portfolio Manager 121 East Park Square Owatonna, MN 55060 Email: dmennis@fedins.com 5. Federated Service Insurance Company $1,257,803 121 East Park Square Owatonna, MN 55060 Email: investments1@fedins.com 6. Fidelity & Guaranty $15,722,544 Life Insurance Company Attn: Investments 1001 Fleet Street, 6th Floor Baltimore, MD 21202 Email: privateplacements@fglife.com 7. First Farmers Bank & Trust $5,729,635 123 North Jefferson P.O. Box 690 Converse, IN 46919 Email: Mark.Jones@ffbt.com 8. Granite Re, Inc. $314,450 Attn: Donna Ennis, Portfolio Manager 121 East Park Square Owatonna, MN 55060 Email: dmennis@fedins.com 9. Life Insurance Company of the $6,289,017 Southwest Attn: Private Placements One National Life Drive Montpelier, VT 05604 Email: privateinvestments@sentinelinvestments.com 10. National Life Insurance Company $5,502,890 Attn: Private Placements One National Life Drive Montpelier, VT 05604 Email: privateinvestments@sentinelinvestments.com 11. Safety National $4,913,295 Casualty Corporation c/o Sit Investment Associates, Inc. Attn: Linda Newell 80 South Eighth Street, Suite 3300 Minneapolis, MN 55402 Email: info@sitinvest.com 12. Anew Climate, LLC $74,937 3200 Southeast Freeway Ste 1310 Houston, TX 77027 Email: accountspayable@anewclimate.com 13. Weaver and Tidwell LLP $67,213 2821 West 7th Street, Suite 700 Fort Worth, TX 76107 Email: AccountsReceivable@weaver.com 14. Wery's Dairy Aire $43,601 N5131 Gasche Road Luxemburg, WI 54217 Email: weryoffice@gmail.com 15. Vander Kinter Harvesting LLC $38,014 (Watch Inv.) 3900 Phillips Rd. Green Bay, WI 54311 Email: kvanderkinter@gmail.com 16. Heim Brothers Custom LLC $32,877 E3730 Rockledge Road Algoma, WI 54201 Email: jeremy@heimshillcrest.com 17. Aprio, LLP $30,167 P.O. Box 117310 Atlanta GA 30368-7310 Email: Receivables@aprio.com 18. Neighborhood Trucking $18,733 Service LLC W1450 Van Asten Rd Freedom, WI 54130 Email: adamva@ndairy.com;accounting@ntruckingllc.com 19. Abts Custom LLC $18,089 N6667 CTY Rd AB Luxemburg, WI 54217 Email: calvin.abts@gmail.com 20. Branch View Dairy LLC $16,916 7404 Village Dr Whitelaw, WI 54247 Email: branchviewdairyllc@outlook.com 21. Boerger LLC $16,791 860 Water Tower Place Chanhassen, MN 55317 Email: jpe@boergerllc.com 22. Heartland Business Systems, LLC $15,898 P.O. Box 347 Little Chute, WI 54140 Email: phelander@hbs.net NORTH WHITEVILLE: Rebecca Redwine Grow Named Subchapter V Trustee ----------------------------------------------------------------- Brian Behr, the U.S. Bankruptcy Administrator for the Eastern District of North Carolina, appointed Rebecca Redwine Grow as Subchapter V trustee for North Whiteville Urgent Care & Family Practice, PA. The Subchapter V trustee will receive an hourly fee of $375 and reimbursement for work-related expenses. Ms. Redwine disclosed in an affidavit that she is "disinterested" according to Section 101(14) of the Bankruptcy Code. 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. OWL VENICE: Files Emergency Bid to Use Cash Collateral ------------------------------------------------------ OWL Venice, LLC asked the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, for authority to use cash collateral in accordance with the budget, with a 10% variance. The Debtor's business was severely impacted by reliance on high-interest loans and rising operational costs. Additionally, one of its creditors, Settle Inc., placed a hold on the Debtor's online payment processing platforms (Shopify, Stripe, and PayPal), which drastically limited cash flow. Despite negotiations, the hold was not released until the Debtor filed for bankruptcy relief, after which the funds were made available, strengthening the Debtor's prospects for reorganization. The business has continued operating and has historically generated positive earnings before interest, taxes, depreciation, and amortization.. The Chapter 11 filing is aimed at restructuring the Debtor's debts to allow for continued operations on a lean and sustainable basis, not liquidation or closure. The Debtor argued that the use of cash collateral is critical to funding ongoing operations, preserving business value, and ultimately enhancing the estate for the benefit of all creditors. It asserted that Northeast Bank and any other secured creditors will be adequately protected under 11 U.S.C. Section 363, as the Debtor will grant replacement liens on post-petition assets with the same priority as pre-petition liens and provide monthly financial reporting to the secured parties. The Debtor's 13-week budget projects a positive net income exceeding $87,000, demonstrating the business's ability to protect and potentially increase the value of the collateral securing the creditors' claims. The Debtor estimates approximately $244,000 in secured debt and $1.23 million in unsecured debt, with the business valued around $40,000. The Debtor intends to repay secured debt over three to five years while proposing reasonable payments to unsecured creditors after priority and administrative claims are addressed. The business' cyclical sales pattern, with increases expected during holiday seasons, supports the Debtor's projection of successful reorganization through continued operations. A copy of the motion is available at https://urlcurt.com/u?l=c0AIkH from PacerMonitor.com. About OWL Venice LLC OWL Venice LLC, doing business as OWL Venice, offers handcrafted broth elixirs, organic skincare products, and multi-day gut health cleanse programs across Los Angeles County. The Company also provides health coaching as an additional wellness service. OWL Venice LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.: 25-16451) on July 29, 2025. In its petition, the Debtor reported estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Sheri Bluebond handles the case. The Debtor is represented by Giovanni Orantes, Esq., at The Orantes Law Firm, A.P.C. PAWLUS DENTAL: Plan Exclusivity Period Extended to August 26 ------------------------------------------------------------ Judge James M. Carr of the U.S. Bankruptcy Court for the Southern District of Indiana extended Pawlus Dental, Inc.'s exclusive period to file a Subchapter V Small Business Plan to August 26, 2025. As shared by Troubled Company Reporter, the Debtor explains that the interests of all parties are best served by allowing Pawlus an extension of time so as to be able to submit a feasible plan of reorganization. The Debtor believes that it needs an additional fourteen days, or to and including August 26, 2025, to make the necessary changes to its business operations to submit a Plan. The Debtor asserts that the extension to file a plan is necessary due to circumstances not attributable to Pawlus. This motion is not being made for the purpose of delay and is being submitted in good faith. Pawlus Dental, Inc. is represented by: Jeffrey M. Hester, Esq. Hester Baker Krebs LLC Suite 1330 One Indiana Square Indianapolis, IN 46204 Telephone: (317) 608-1129 Facsimile: (317) 833-3031 Email: jhester@hbkfirm.com About Pawlus Dental, Inc. Pawlus Dental, Inc. provides comprehensive dental services in Columbus, Ind., focusing on preserving natural teeth and enhancing smile aesthetics. The practice offers treatments including dental implants, sleep apnea management, clear aligners, periodontal and cosmetic care, preventive and restorative dentistry, wisdom teeth extraction, root canal therapy, and sedation dentistry. Pawlus Dental sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 25-02780) on May 14, 2025, listing $890,156 in total assets and $1,119,328 in total liabilities. John G. Pawlus, president and owner of Pawlus Dental, signed the petition. Judge James M. Carr oversees the case. John Allman, Esq., at Hester Baker Krebs, LLC is the Debtor's bankruptcy counsel. German American Bank, as lender, is represented by: Bruce A. Smith, Esq. Rhonda S. Miller, Esq. Smith & Miller, LLP P.O. Box 387 Bargersville, IN 46106 Phone: (812) 802-0222 E-mail: bsmith@smithmillerlaw.com rmiller@smithmillerlaw.com PERFORMANCE MOBILE: Claims to be Paid from Ongoing Operations ------------------------------------------------------------- Performance Mobile Care, LLC, filed with the U.S. Bankruptcy Court for the District of Colorado a Small Business Plan of Reorganization under Subchapter V dated August 11, 2025. The Debtor is a tractor trailer and fleet detailing business operating in Colorado. It details trailers from eithers its Commerce City, Colorado location or travels to customers in Colorado to do the same. The Debtor has been operating since 2015 and generally maintains a loyal client base. J. Cass Cassell has owned the Debtor in its current form since 2019, when he added to the business through purchase of a competitor, Sherman's Detail, from Gary Datkuliak. Audrey Cassell, Mr. Cassell's spouse, is now also a 50% owner in the Debtor. Like many smaller businesses, however, the Debtor was significantly impacted by the COVID-19 pandemic. In particular, due to the pandemic, there was a downtown in production of new semi-trucks and trailers, such that companies already in possession of the same began to hold onto used semi-trucks and trailers. This downturn in operations caused Debtor to seek out an EIDL loan from the U.S. Small Business Administration ("SBA") during this period in the amount of $150,000.00. Eventually, to rectify issues with a downturn in operations and inability to collect on its accounts receivable, the Debtor turned to multiple merchant cash advance ("MCA") loans to continue to fund operations and meet cash flow needs, at exorbitant interest rates. Due to these high interest MCA loans, in addition to the other aforementioned issues, Debtor could no longer sustain its operations without Chapter 11 relief. Ultimately, for the five-year total, Debtor projects total $180,801.00 net cash flow over five years which can be paid to creditors under the "disposable income" requirement of the Code, which includes accumulation of a working capital reserve of $50,000.00, which is reasonable for a business of this nature. Class 4 consists of Allowed Unsecured Creditors. The Class 4 Allowed creditors shall each be paid their pro rata share of the Plan Payment Fund. This Class is impaired. Class 5 consists of the equitable ownership interests in the Debtor of J. Cass Cassell (50%) and Audrey Cassell (50%). The holders of Class 5 interests will receive no money under the Plan on the Effective Date, with the exception of insider distributions of approximately $25,000.00 per month, and shareholder tax distributions of approximately $20,000.00 per year, both noted on the Debtor's projections. They will retain their interests to the same extent that it held such interests prior to the filing of the Bankruptcy. The Debtor's Plan is feasible because the Plan Payment Fund shall be funded following Confirmation in accordance with the projections, but in no event later than 30 days following the Effective Date for Class 1, 2 and 3 Secured Claims and annually following the Effective Date for Class 4 once the Debtor's accumulated working capital reserve of $50,000.00 is funded to ensure ongoing operations of the Debtor's business. Based on the Debtor's projections, it expects that annual payments will begin in 2027, through the term of the Plan. The funds deposited into the account representing the Plan Payment Fund will come from the Debtor's net revenue generated from its ongoing operations. The Debtor shall be obligated to pay its projected disposable income to Allowed Claims in Class 4. The Plan Payment Fund shall be placed in an interest-bearing account following the Effective Date and in accordance with the Debtor's projections. A full-text copy of the Plan of Reorganization dated August 11, 2025 is available at https://urlcurt.com/u?l=PVnVVf from PacerMonitor.com at no charge. Counsel to the Debtor: Jeffrey A. Weinman, Esq. Bailey C. Pompea, Esq. Allen Vellone Wolf Helfrich & Factor P.C. 1600 Stout Street, Suite 1900 Denver, CO 80202 Tel: (303) 534-4499 Email: JWeinman@allen-vellone.com BPompea@allen-vellone.com About Performance Mobile Care, LLC Performance Mobile Care, LLC is a vehicle detailing company specializing in providing mobile detailing services for trucks. Performance Mobile Care LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Col. Case No. 25-11281) on March 13, 2025. In its petition, the Debtor reported assets between $100,000 and $500,000 and liabilities between $1 million and $10 million. Judge Kimberley H. Tyson handles the case. The Debtor is represented by Jeffrey A. Weinman, Esq., at Allen Vellone Wolf Helfrich & Factor P.C. REDDIRT ROAD: Gets Interim OK to Use Cash Collateral ---------------------------------------------------- Reddirt Road Partners, LLC received another extension from the U.S. Bankruptcy Court for the Northern District of Florida, Panama City Division, to use cash collateral. The court's seventh interim order allowed the Debtor to access its secured creditors' cash collateral to pay operating expenses and the amounts expressly authorized by the court, including payments of fees of the U.S. trustee and Subchapter V trustee. As protection to secured creditors, the Debtor was ordered to segregate and remit sale proceeds from inventory financed by secured creditors; maintain detailed weekly sale reports; and ensure no inventory is sold below its payoff amount without creditor consent. In addition, each creditor with a security interest in cash collateral will have a perfected post-petition lien on the cash collateral, with same validity, priority and extent as its pre-bankruptcy lien. The secured creditors, which have claimed an interest in the cash collateral include Huntington Distribution Finance, Inc., Wells Fargo Commercial Distribution Finance, LLC, Daedong-USA, Inc., and Northpoint Commercial Finance, LLC. Events of default include non-compliance of the order; conversion of the Debtor's Chapter 11 case to one under Chapter 7; appointment of a trustee or examiner; and lapse in required insurance. Default triggers immediate halt in cash collateral use unless cured within five days. The next hearing is set for September 10. About Reddirt Road Partners Reddirt Road Partners, LLC filed a petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-50049) on March 12, 2025, listing between $500,001 and $1 million in both assets and liabilities. Judge Karen K. Specie oversees the case. Byron Wright, III, Esq., at Bruner Wright, P.A. is the Debtor's legal counsel. Huntington Distribution Finance, Inc., as secured creditor, is represented by: Brian W. Hockett, Esq. Thompson Coburn, LLP One US Bank Plaza St. Louis, MO 63101 Phone: (314) 552-6461 Fax: (314) 552-7000 bhockett@thompsoncoburn.com Daedong-USA, Inc., as secured creditor, is represented by: Douglas A. Bates, Esq. Clark Partington 125 East Intendencia Street, 4th Floor Pensacola, FL 32502 Phone: (850) 434-9200 Fax: (850) 432-7340 dbates@clarkpartington.com Northpoint Commercial Finance, LLC, as secured creditor, is represented by: W. Keith Fendrick, Esq. Holland & Knight, LLP 100 N. Tampa St., Suite 4100 Tampa, FL 33602 Phone: 813-227-8500 Fax: 813-229-0134 keith.fendrick@hklaw.com -- and -- Kameron Fleming, Esq. Holland & Knight, LLP 50 North Laura Street, Suite 3900 Jacksonville, FL 32202 Phone: 904-798-5480 kameron.fleming@hklaw.com SANTOPIETRO FOOD: Ciara Rogers Named Subchapter V Trustee --------------------------------------------------------- Brian Behr, the U.S. Bankruptcy Administrator for the Eastern District of North Carolina, appointed Ciara Rogers, Esq., as Subchapter V trustee for Santopietro Food Group, LLC. Ms. Rogers is a partner at Waldrep Wall Babcock & Bailey, PLLC. She will be paid an hourly fee of $375 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. The Subchapter V trustee can be reached at: Ciara L. Rogers, Esq. Waldrep Wall Babcock & Bailey, PLLC 3600 Glenwood Avenue, Suite 210 Raleigh, NC 27612 Phone: (984) 480-2005 Email: crogers@waldrepwall.com About Santopietro Food Group 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. It offers dine-in, takeout, and delivery services and operates in North Carolina under a franchise agreement with Chicago Franchise Systems, Inc. Santopietro Food Group sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-03108) on August 13, 2025, with $50,000 to $100,000 in assets and $1 million to $10 million in liabilities. Ted Ormsby, member, signed the petition. Judge Pamela W. McAfee presides over the case. William P. Janvier, Esq., at Stevens Martin Vaughn & Tadych, PLLC represents the Debtor as legal counsel. SOLEMN INVESTMENTS: 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 Solemn Investments, Inc. 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 Solemn Investments Inc. Solemn Investments Inc., doing business as ABJ Transport, filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Texas Case No. 25-34630) on August 8, 2025, with $0 to $50,000 in assets and $500,001 to $1 million in liabilities. Judge Eduardo V. Rodriguez presides over the case. Jeremy Thomas Wood, Esq., at the Law Office of Jeremy T. Wood, PLLC represents the Debtor as bankruptcy counsel. SYNERGY MEDICAL: Gets Extension to Access Cash Collateral --------------------------------------------------------- Synergy Medical Services, LLC received third interim approval from the U.S. Bankruptcy Court for the Northern District of Florida to use cash collateral. The third interim order authorized the Debtor to use cash collateral to pay ordinary monthly expenses and court-approved fees pending a final hearing. As adequate protection for the Debtor's use of cash collateral, the U.S. Small Business Administration will have post-petition security interests in, and liens on, all of the Debtor's personal property including all accounts receivable acquired, generated or received by the Debtor after the petition filing. In addition, SBA will receive a monthly payment of $3,000, starting this month and until confirmation of the Debtor's Chapter 11 plan. Any default by the Debtor of its obligations must be cured within seven days of service of the default notice. A final evidentiary hearing is set for September 10. The Debtor, a home healthcare provider operating in Florida's panhandle, has several creditors that may claim an interest in the cash collateral, including SBA, CFG Merchant Solutions, LLC, Fox Funding Group, LLC, and Funding Metrics, LLC, based on security agreements and UCC-1 filings in Florida. As of the filing date, the Debtor's assets total approximately $160,000, which includes cash in its checking account, funds held by CareCentrix, limited personal property, and one parcel of real estate. The SBA is believed to hold first lien position on the cash collateral. About Synergy Medical Services, LLC Synergy Medical Services, LLC provides home healthcare services across Florida. The Company offers skilled nursing, specialized nursing services, physical therapy, and home health aides. Its team of registered nurses and therapists delivers in-home care focused on professional, round-the-clock support. Synergy Medical Services sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-30599) on June 27, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Karen K. Speci handles the case. The Debtor is represented by: Robert C. Bruner, Esq. Bruner Wright, P.A. Tel: 850-385-0342 Email: rbruner@brunerwright.com Byron Wright, III Bruner Wright, P.A. Tel: 850-385-0342 Email: twright@brunerwright.com TARAH THAI: Gets Final Approval to Use Cash Collateral ------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of California, San Jose Division, issued a final order granting Tarah Thai, LLC's motion to use cash collateral in its entirety. The final order authorized the Debtor to continue to use cash collateral in the ordinary course of business, consistent with the budget and terms proposed in the motion. As of May 31, 2025, the Debtor listed $66,904 in assets and $444,166 in liabilities, including secured debts totaling $211,395 from U.S. Small Business Administration, Working Solutions CDFI, and Celtic Bank. About Tarah Thai, LLC Tarah Thai, LLC operates a Thai restaurant in San Jose, California. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr N.D. Cal. Case No. 25-50944) on June 23, 2025. In the petition signed by Pawit Ninnabodee, chief financial officer, the Debtor disclosed up to $100,000 in assets and up to $500,000 in liabilities. Judge Stephen L. Johnson oversees the case. Arasto Farsad, Esq, at Farsad Law Office, P.C., represents the Debtor as legal counsel. THUNDER INTERNATIONAL: Gets Extension to Access Cash Collateral --------------------------------------------------------------- Thunder International Group, Inc. and affiliates received fourth interim approval from the U.S. Bankruptcy Court for the District of New Jersey to use cash collateral. The order penned by Judge John Sherwood authorized the Debtors' interim use of cash collateral to pay the expenses set forth in their 14-week budget, subject to a 25% variance. This authorization will terminate upon the dismissal or conversion of the Debtors' Chapter 11 cases, the appointment of a bankruptcy trustee or the Debtors' failure to perform their obligations under the fourth interim order. The Debtors intend to use funds generated from their accounts receivable and business income, which constitute the cash collateral of East West Bank, the U.S. Small Business Administration and merchant cash advance creditors. As adequate protection for the use of their cash collateral, these secured creditors will be granted replacement liens on the Debtors' personal property to the same extent and priority as their pre-bankruptcy liens. These liens do not apply to any Chapter 5 causes of action. In case the replacement liens prove inadequate, the secured creditors will have superpriority claims under Setion507(b) of the Bankruptcy Code. The next hearing is scheduled for November 25, with objections due by November 18. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/C8Bgv from PacerMonitor.com. About Thunder International Group Inc. Thunder International Group, Inc. is a fifth-party logistics (5PL) provider specializing in omni-channel logistics solutions for commerce and e-commerce sellers. It operates nine warehouses across six U.S. states, offering services including nationwide fulfillment, drop shipping, air and ocean freight, global shipping, industrial inspection and maintenance, bonded zones, reverse logistics, and cross-border e-commerce branding. Thunder International Group sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. N.J. Lead Case No. 25-15229) on May 15, 2025, listing up to $10 million in both assets and liabilities. Mingming Wang, secretary, signed the petition. Judge John K. Sherwood oversees the case. White and Williams, LLP represents the Debtor as legal counsel. TPI COMPOSITES: Gets Interim OK to Obtain DIP Loan From Oaktree --------------------------------------------------------------- TPI Composites, Inc. received interim approval from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, to obtain debtor-in-possession financing to get through bankruptcy. The DIP financing in the amount of $82.5 million will be provided by Oaktree Capital Management-affiliated lenders who are also the holders of approximately $472 million in pre-bankruptcy senior secured term loans. Oaktree Fund Administration, LLC is the administrative agent for the DIP lenders. The DIP facility consists of two components: (i) up to $27.5 million in new money loans, of which $7.5 million will be available immediately upon interim approval of the financing (Tranche 1), and an additional $20 million upon final approval (Tranche 2); and (ii) a $55 million "roll-up" of pre-bankruptcy senior secured term loans, which effectively converts certain pre-bankruptcy debt held by the DIP lenders into post-petition DIP loans, contingent upon the Debtors drawing the new-money tranches. The roll-up is structured on a 2:1 basis, meaning $2 of pre-bankruptcy debt is converted for every $1 of new money drawn, with up to $15 million rolled up with Tranche 1 and $40 million with Tranche 2. The financing package and roll-up were determined to be necessary after a failed effort to secure better terms from 12 other third-party lenders. Because the Debtors' assets are already encumbered, no other party was willing to provide alternative financing without triggering a costly and uncertain legal priming contest with Oaktree. The DIP facility is due and payable on the date that is the earliest of (i) nine months from petition date, (b) the date on which the obligations become due and payable pursuant to the DIP Credit Agreement, whether by acceleration or otherwise, and (c) the effective date of a Chapter 11 plan for the Debtors. All of the DIP obligations will constitute allowed superpriority administrative expense claims against the Debtors. As security for the DIP obligations, the DIP lenders will be granted (i) first priority senior security interest in and lien on unencumbered property of the Debtors; (ii) first priority senior priming security interest in and lien on property that is subject to pre-bankruptcy liens; and (iii) liens junior or senior to certain other liens. The Debtors are required to comply with these milestones: 1. By the date that is no later than three days after the petition date, the bankruptcy court must have entered the interim order; 2. By the date that is no later than 10 days after the petition date, the Debtors must have filed the motion to establish a general bar date by which all creditors must file proofs of claim in the Chapter 11 Cases and a governmental bar date by which all governmental units must file proofs of claim in the Chapter 11 Cases with the bankruptcy court. 3. By the date that is no later than 40 days after the petition date, the bankruptcy court must have entered the final order; 4. By the date that is no later than 45 days after the petition date, the bankruptcy court must have entered a disclosure statement order; 5. By the date that is no later than 100 days after the petition date, the borrower must have obtained an entry of an order confirming an acceptable plan; and 6. By the date that is no later than 120 days after the petition date, the effective date of the acceptable plan must have occurred. At the time of the filing, the Debtors had approximately $50 million in cash on hand, which is insufficient to fund ongoing operations through the Chapter 11 process. Historical losses, a capital-intensive business model, and negative cash flow created a critical need for immediate liquidity. The Debtors' capital structure includes two major obligations: the $472 million senior secured term loan due 2027, and $135 million in unsecured 5.25% convertible notes due 2028. Use of Cash Collateral The court order also approved the Debtors' interim use of cash collateral in accordance with the approved budget (subject to permitted variances), provided that the senior secured lenders and Oaktree Fund Administration, as administrative agent, are granted adequate protection. As protection, the senior secured parties will be granted valid, perfected replacement security interest in and lien on all of the DIP collateral, subordinate only to the DIP liens and the fee carveout. In addition, the senior secured parties are entitled to allowed superpriority administrative expense claims ahead of and senior to all other administrative expense claims to the extent of any diminution in value of their collateral. The Debtors' authority to use cash collateral will terminate on the date that the DIP facility is terminated. A copy of the interim order is available at https://is.gd/Avvyus About TPI Composites Inc. TPI Composites -- https://tpicomposites.com/ -- is a leading wind-blade manufacturer and the only independent wind blade manufacturer with a global footprint. TPI Composites Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-34655) on August 11, 2025. The company listed $500 million to $1 billion in estimated assets, along with $1 billion to $10 billion in estimated liabilities. Honorable Bankruptcy Judge Christopher M. Lopez handles the case. The Debtor is represented by Gabriel Adam Morgan, Esq. at Weil, Gotshal & Manges LLP. Oaktree Capital Management L.P., as DIP agent, is represented by: William A. (Trey) Wood III, Esq. Bracewell, LLP 711 Louisiana Street, Suite 2300 Houston, TX 77002 Telephone: (713) 221-1166 Facsimile: (713) 221-1212 trey.wood@bracewell.com TRINITY INTEGRATED: Court Extends Cash Collateral Access to Sept. 3 ------------------------------------------------------------------- Trinity Integrated Healthcare, LLC received second interim approval from the U.S. Bankruptcy Court for the District of Arizona to use cash collateral through September 3. The court's order authorized the Debtor's interim use of cash collateral to pay operating expenses in accordance with its budget, with a 10% variance allowed. The Debtor projects total operational expenses of $751,456.02 from July to December. As adequate protection for the Debtor's use of their cash collateral, secured creditors including JPMorgan Chase Bank, N.A. and Meadows Bank will be granted replacement liens on assets acquired by the Debtor after the petition date, with the same validity and priority as their pre-bankruptcy liens. A status hearing is scheduled for September 3. The Debtor is a family-owned operator of residential behavioral health facilities in Phoenix, Arizona. Originally established as Lords Integrated Care LLC, the entity was renamed Trinity Integrated Healthcare LLC due to licensing issues. The Debtor's assets include a Wells Fargo account with $24,474, aged accounts receivable totaling $150,000, and equipment with a liquidation value of $50,000. JPMorgan Chase Bank holds a UCC lien on the Debtor's business assets and may claim its revenues as cash collateral. Meadows Bank, though not contracted directly with the Debtor, may claim a similar interest based on its previous loan agreement with Lords, the Debtor's predecessor. JPMorgan, as secured creditor, is represented by: James B. Ball, Esq. Ball, Santin & McLeran, PLC 2999 N. 44th Street, Suite 500 Phoenix, AZ 85018 Phone: (602) 840-1400 ball@bsmplc.com Meadows Bank, as secured creditor, is represented by: Anthony W. Austin, Esq. Fennemore Craig, P.C. 2394 E. Camelback Road, Suite 600 Phoenix, AZ 85016 Telephone: (602) 916-5000 Email: aaustin@fennemorelaw.com About Trinity Integrated Healthcare Trinity Integrated Healthcare, LLC is a Phoenix-based healthcare provider specializing in psychiatric and substance abuse treatment services. Trinity Integrated Healthcare sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-04479) on May 16, 2025. In its petition, the Debtor reported estimated assets between $500,000 and $1 million and estimated liabilities between $100,000 and $500,000. The Debtor is represented by Chris D. Barski, Esq., at Barski Law. UNITED PROPERTY: Mark Sharf Named Subchapter V Trustee ------------------------------------------------------ The U.S. Trustee for Region 17 appointed Mark Sharf, Esq., a practicing attorney in Los Angeles, as Subchapter V trustee for United Property Maintenance Corporation. Mr. Sharf will charge $660 per hour for his services as Subchapter V trustee and $150 per hour for his trustee administrator's services. In addition, the Subchapter V trustee will seek reimbursement for work-related expenses incurred. Mr. Sharf declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Mark Sharf, Esq. 6080 Center Drive, 6th Floor Los Angeles, CA 90045 Telephone: (323) 612-0202 Email: mark@sharflaw.com About 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. WCB CONSTRUCTION: Unsecureds Will Get 100% of Claims in Plan ------------------------------------------------------------ WCB Construction Services, LLC, filed with the U.S. Bankruptcy Court for the District of New Jersey a Plan of Reorganization for Small Business dated August 11, 2025. The Debtor is a New Jersey limited liability company engaged in the ownership and management of real property, including residential rental operations and related property services. Its principal asset is a single-family residence located at 14 Sunrise Drive, Warren, New Jersey 07059, which generates monthly rental income. In addition to rental operations, the Debtor provides property management services and derives income from overseeing residential properties. The Debtor's financial distress arose from a combination of operational, structural, and environmental factors that developed over several years. The Debtor's primary asset, a residential property located at 14 Sunrise Drive in Warren, New Jersey (Block 50, Lot 1.11), was refinanced in December 2018 in connection with the Debtor's acquisition of full title. The refinance loan, in the original principal amount of $873,750.00, was personally guaranteed by Tara Paccillo, now a 10% member of the Debtor. Due to the foreclosure judgment and the threat of imminent sheriff's sale, and the absence of available capital to satisfy the arrears or refinance, the Debtor filed this Subchapter V Chapter 11 petition on May 12, 2025, to preserve its primary asset and implement an orderly reorganization and repayment of creditors. The Debtor proposes a Subchapter V Plan of Reorganization to satisfy creditor claims primarily through the sale of certain investment assets and application of net sale proceeds. This Subchapter V Plan provides for full payment of all allowed claims over a five-year term, funded by the Debtor's projected rental income, property management revenues, and annual ownership contributions. The Plan is structured to preserve the Debtor's sole income-generating asset, avoid foreclosure, and ensure orderly payment to all creditors without the need for liquidation. Class 2 consists of General Unsecured Creditors. This class includes non-priority, unsecured creditors, including credit card and collection claims totaling approximately $405.09 and will be paid 100% on allowed claims. The Debtor estimates that allowed unsecured claims will be paid in full no later than August 31, 2026. Class 2 is Impaired, and holders of allowed claims in this class are entitled to vote on the Plan. Class 3 consists of all equity interests in the Debtor, which are held by Richard Coven (90%) and Tara Paccillo (10%) as of the Petition Date. Under the Plan, the equity holders shall retain their interests in the Debtor, subject to the terms of the Plan and the requirements of the Bankruptcy Code. No distributions shall be made on account of equity interests unless and until all allowed claims under the Plan have been paid in full. In addition, Richard Coven, as the majority member, will provide capital contributions in accordance with the Plan projections to support feasibility and creditor repayment. The Debtor's Plan will be funded through regular and recurring cash flow generated by its business operations, including rental income, property management revenue, and annual ownership contributions. * Rental Income: 14 Sunrise Drive, Warren, NJ 07059: The Debtor has entered into a binding three-year residential lease agreement with a tenant with monthly rent at $6,600, with annual increases to $6,798 in Year 2 and $7,000 in Year 3. Debtor projects future 3% increases in rental income from the property. * Property Management Income: Beginning in 2025, the Debtor expanded its operations to provide property management services to third-party property owners. The Debtor's projections reflect modest annual increases in property management income, based on the expected addition of new clients and limited fee increases consistent with market conditions. * Owner Contributions: In addition to operational income, the Debtor will receive annual capital contributions from its 90% member, Richard Coven, to support Plan feasibility. These contributions are scheduled for June of each year beginning in June 2026, in the amounts set forth in the projections. These payments will assist the Debtor in maintaining consistent creditor distributions with the full amount of the contribution pledged to repayment of mortgage arrears. A full-text copy of the Plan of Reorganization dated August 11, 2025 is available at https://urlcurt.com/u?l=ggPtMl from PacerMonitor.com at no charge. Counsel to the Debtor: Justin M. Gillman, Esq. GILLMAN CAPONE LLC 770 Amboy Avenue Edison, NJ 08837 Tel: (732) 661-1664 Fax: (732) 661-1707 Email: ecf@gillmancapone.com About WCB Construction Services LLC WCB Construction Services LLC, based in Warren, New Jersey, provides construction services to public and private sector clients in the U.S. WCB Construction Services LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-15085) on May 12, 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 Christine M. Gravelle handles the case. The Debtors are represented by Justin M Gillman, Esq. at GILLMAN CAPONE LLC. WEST BRAZOS: Gets Final OK to Use Cash Collateral ------------------------------------------------- West Brazos Stewart Food Markets, LLC and its affiliates received final approval from the U.S. Bankruptcy Court for the Southern District of Texas, Galveston Division, to use cash collateral. The court's order authorized the Debtors' final use of cash collateral solely in the amounts and solely for the purposes set forth in their budget. As adequate protection, Prime Alliance Bank, Inc. and SouthStar Bank, S.S.B., the Debtors' pre-bankruptcy lender, will be granted automatically perfected post-petition security interests in, and replacement liens on, all current and future assets of the Debtors, subject to a fee carveout. The replacement liens will have same priority as the pre-bankruptcy liens. The Debtors were ordered to provide the banks information relating to actual expenses and any variances above 5% on a weekly basis. As of the petition date, the Debtors owed $3,977,519.75 to SouthStar Bank. The loan is secured by first lien deeds of trust against the real property and improvements of the Debtors as well as all of the goods, equipment, fixtures, furnishings and all "money," "proceeds," and "accounts." Thus, the Debtors' available cash constitutes cash collateral. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/Tw7wl from PacerMonitor.com. SouthStar Bank, as pre-bankruptcy lender, is represented by: Eric D. Sherer, Esq. Sherer & Associates, PLLC Attorneys at Law 18756 Stone Oak Parkway, Suite 200 San Antonio, TX 78258 Phone: (210) 696-6645 Fax: (866) 305-5823 esherer@sherer.legal Prime Alliance Bank, as secured creditor, is represented by: Justin M. Mertz, Esq. Michael Best & Friedrich, LLP 790 N. Water Street, Suite 2500 Milwaukee, WI 53202 Phone: 414.271.6560 / 414.225.4972 jmmertz@michaelbest.com About West Brazos Stewart Food Markets LLC West Brazos Stewart Food Markets, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 25-80317) on July 11, 2025, listing between $10 million and $50 million in assets and between $1 million and $10 million in liabilities. Judge Alfredo R. Perez oversees the case. Genevieve Marie Graham, Esq., at Genevieve Graham Law, PLLC is the Debtor's legal counsel. ********* 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., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, 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 ***