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T R O U B L E D C O M P A N Y R E P O R T E R
Friday, November 14, 2025, Vol. 29, No. 317
Headlines
5 MASADA: Seeks Chapter 11 Bankruptcy in New Jersey
ACUSHNET HOLDINGS: S&P Rates New $500MM Sr. Unsecured Notes 'BB'
ADDISON STATION: Updates Unsecured Claims Details
ADVENTURE COAST: Claims to be Paid from Disposable Income
ADWOA BEAUTY: Areya Holder Aurzada Named Subchapter V Trustee
AG RECYCLING: Case Summary & 20 Largest Unsecured Creditors
AGEAGLE AERIAL: Inks Series G Preferred Stock Offering
ALLEGIANT TRAVEL: Moody's Affirms 'Ba3' CFR, Outlook Stable
AMNEAL PHARMACEUTICALS:S&P Alters Outlook to Pos, Affirms 'B+' ICR
APPLIED DIGITAL: S&P Assigns 'B+' ICR, Outlook Positive
ARCHDIOCESE OF NEW ORLEANS: 156 Units' Chapter 11 Case Summary
ARCHER INSTALLATION: Seeks Chapter 11 Bankruptcy in Nevada
ASCENSUS GROUP: S&P Rates New $350MM Second-Lien Term Loan 'CCC'
AVALON MOBILE: Unsecureds Will Get 100% of Claims in Plan
AVANTOR INC: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
AVAYA HOLDINGS: Fitch Hikes LongTerm IDR to 'B-', Outlook Stable
AYR WELLNESS: Prepares CCAA Filing After Core Asset Sale
BANNING, CA:S&P Places 'B+' Revenue Bonds Rating on Watch Negative
BARROW SHAVER: To Sell Natural Gas Business to TexOil Investments
BEAZER HOMES: S&P Downgrades ICR to 'B', Alters Outlook to Stable
BELLAVIVA AT WHISPERING: To Sell Leesburg Property to Sun Terra
BLEND COFFEE 1: Michael Markham Named Subchapter V Trustee
BLONDER TONGUE: May 5 Governmental Claims Bar Deadline
BRENMARK INC: Voluntary Chapter 11 Case Summary
BUILDING COMPANY: Timothy Stone Named Subchapter V Trustee
BUILT LLC: Case Summary & 10 Unsecured Creditors
CARPENTER TECHNOLOGY: Moody's Rates New $700MM Unsec. Notes 'Ba2'
CARPENTER TECHNOLOGY: S&P Rates New $700MM Unsecured Notes 'BB+'
CENTER FOR EMOTIONAL: Case Summary & 20 Top Unsecured Creditors
CHPPR MIDCO: S&P Affirms 'B' ICR on Dividend Recap Transaction
CIPHER COMPUTE: Fitch Assigns 'BB-(EXP)' LongTerm IDR
CLIPPER ACQUISITIONS: Moody's Alters Outlook on Ba1 CFR to Negative
COMMERCIAL METALS: S&P Rates New $2BB Senior Unsecured Notes 'BB+'
CONVEY HEALTH: New Mountain Marks $13.4MM 1L Loan at 16% Off
CONVEY HEALTH: New Mountain Marks $2.2MM 1L Loan at 16% Off
CORE & MAIN: S&P Hikes ICR to 'BB' on Low Leverage, Outlook Stable
CORPORATE AIR: $4.5-Mil. DIP Loan from Vantage ACG OK'd
DATAVAULT AI: Signs License Agreement with Scilex Holding
DESTINY VOICE: Scott Seidel Named Subchapter V Trustee
DIOCESE OF OAKLAND: Wins Another 2 Weeks to Continue Plan Talks
DOLPHIN SHORES: Case Summary & Three Unsecured Creditors
EARNSHAW DEVELOPMENT: Seeks Chapter 7 Bankruptcy in New Hampshire
ELITE PRINTING: Court Extends Cash Collateral Access to Nov. 17
EPIC CRUDE: Moody's Ups CFR to Ba2, Outlook Stable
FIRST BRANDS: Wins Court Approval for $1.1 Billion DIP Financing
FLAMINGO SEPTIC: Aaron Cohen Named Subchapter V Trustee
FOSSIL GROUP: Restructuring Gains U.S. & U.K. Approval
FOSSIL GROUP: Weil Gotshal Touts Groundbreaking "Stapled Exchange"
GALBREATH RESTAURANT: L. Todd Budgen Named Subchapter V Trustee
GARDA WORLD: Fitch Assigns 'BB' Rating on New Senior Secured Notes
GENTLE HAND: Updates Several Secured Claims Pay Details
GOHAR INC: Matthew Brash of Newpoint Named Subchapter V Trustee
GRACE LIMOUSINE: May 4 Governmental Claims Bar Date
GRAHAM HOLDINGS: S&P Rates New $500MM Senior Unsecured Notes 'BB'
HEALTHIER CHOICES: Reports $2.1 Million Net Loss in 2025 Q3
HERON BIDCO: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable
HOMES NOW: Plan Exclusivity Period Extended to November 25
HOOTERS OF AMERICA: Court Confirms Joint Chapter 11 Plan
HORSEY DENISON: Court Extends Cash Collateral Access to Dec. 20
HUDSON VALLEY: Eric Huebscher Named Subchapter V Trustee
HYPERSCALE DATA: Estimates $330MM in Total Assets as of Oct 31
INTEGER HOLDINGS:S&P Alters Outlook to Negative, Affirms 'BB-' ICR
IROBOT CORP: Net Loss Widens to $21.5 Million in 2025 Q3
JAC ENCORE: Seeks Chapter 11 Bankruptcy in New Jersey
JACKSON WALKER: Court Pauses Secret Romance Settlements w/ Clients
JACKSONVILLE MOVING: Unsecureds to Get Share of Income for 3 Years
JAMES MILLER: Case Summary & Two Unsecured Creditors
JERSEY SHORE: Seeks Chapter 11 Bankruptcy in New Jersey
JSL COMPANIES: Gets Final OK to Use Cash Collateral
KC TRANSPORT: To Sell Bushel Grain Bin to Jarrod Hountz for $8K
KIRKBRIDE LAND: Court Extends Cash Collateral Access to Dec. 31
KLEOPATRA FINCO: Russell R. Johnson Represents Utility Companies
KLEOPATRA FINCO: Sussman & Moore Represents Utility Companies
KPOWER GLOBAL: Craig M. Geno, Payne Law Firm Relieved as Counsel
LAS VEGAS COLOR: Seeks Chapter 11 Bankruptcy in Nevada
LAVENDER LANDSCAPE: Gets Final OK to Cash Collateral
LEISURE INVESTMENTS: Marineland Dolphin Sale to #1 Apex Assoc. OK'd
LJS ASSOCIATES: L. Todd Budgen Named Subchapter V Trustee
LTR INTERMEDIATE: S&P Upgrades ICR to 'B', Outlook Stable
LUNAI BIOWORKS: Nasdaq Confirms Compliance After Annual Meeting
MALIZUP LLC: Unsecured Creditors to Split $600K over 5 Years
MANTECH INTERNATIONAL: S&P Assigns 'B+' ICR, Outlook Stable
MARRIOTT VACATIONS: S&P Downgrades ICR to 'B+', Outlook Negative
MAUSER PACKAGING: Launches Exchange Offers for 2027 Notes
MAUSER PACKAGING: Moody's Rates New $150MM Secured Revolver 'B1'
MAUSER PACKAGING: S&P Rates Senior Secured First-Lien Notes 'CCC+'
MEYER BURGER: Plan Exclusivity Period Extended to January 21, 2026
MIT US: Robert Handler Named Subchapter V Trustee
MK ARCHITECTURE: Reaches Landlord Settlement; Files Amended Plan
MORE THAN PLUMBING: Richardo Kilpatrick Named Subchapter V Trustee
NATIONAL HME: New Mountain Marks $8.2MM Loan at 64% Off
NEPTUNE BIDCO: Fitch Lowers Rating on First-Lien Debt to 'BB-'
NEW BENEVIS: New Mountain Marks $26MM Loan at 20% Off
NEW INSPIRATIONAL: Voluntary Chapter 11 Case Summary
NOAH ASHER: James Cross Named Subchapter V Trustee
NORTH AMERICAN: Gets Interim Approval to Use Cash Collateral
NORTHRIVER MIDSTREAM: Moody's Cuts CFR to Ba3, Outlook Stable
OLD FASHION: Voluntary Chapter 11 Case Summary
ONSITE CONSTRUCTION: Unsecureds to Get 100 Cents on Dollar in Plan
PALMAS ATHLETIC: Court OKs Deal to Extend Cash Collateral Access
PINE GATE: Represented by Latham in $7-Bil. Debt Restructuring
POWER SOLUTIONS: $27.6MM Income in Q3; Lifts Going Concern Doubt
PPVA BLACK: New Mountain Marks $14.5MM 1L Loan at 55% Off
PR BINGHAM: Apartment Complex Sale to Sycamore & Brookstone OK'd
PURDUE PHARMA: Starts Ch. 11 Confirmation Trial w/ Plan Overview
RAMOS ROOFING: U.S. Trustee Unable to Appoint Committee
RBC BEARINGS: S&P Upgrades ICR to 'BB+', Outlook Stable
RESTAURANT BRANDS: S&P Affirms 'BB' LT ICR, Outlook Positive
RLG HOLDINGS: New Mountain Marks $1MM 1L Loan at 17% Off
RLG HOLDINGS: New Mountain Marks $3.9MM 1L Loan at 16% Off
RUSS'S MULCH: Court OKs Deal to Use Cash Collateral
RYVYL INC: Aly Madhavji Joins as CFO Ahead of Roundtable Merger
S & M DELI: Unsecureds to Get $4,500 per Month over 5 Years
SAGA FORMATIONS: To Sell Tangible Play Asset to Play Osmo
SERENE HEALTH: $58K Unsecured Claims to Recover 33% over 36 Months
SERVICOM LLC: Court Trims Coral Capital's Claim 79-3
SILVERGATE CAPITAL: Secures Court OK for Chapter 11 Plan
SIMBA IL HOLDINGS: U.S. Trustee Unable to Appoint Committee
SKYLINE EMS: Unsecured Creditors to Get Share of GUC Cash Pool
SMITH HEALTH: No Resident Care Concern, 6th PCO Report Says
SONDER HOLDINGS: Plans to Liquidate Under Chapter 7 Bankruptcy
STAGGEMEYER STAVE: To Sell Oak Staves Business to Wood Products
SYNERGY INFRASTRUCTURE: S&P Assigns 'B' ICR, Outlook Stable
TIKE LLC: Section 341(a) Meeting of Creditors on December 11
TILT HOLDINGS: Initiates CCAA Restructuring With Noteholder Support
TP BRANDS: Case Summary & Largest Unsecured Creditors
TRIGGER IT: Case Summary & Seven Unsecured Creditors
TRIPLESHOT HOLDINGS: Gets Extension to Access Cash Collateral
TRIPLETT FUNERAL: Amends Motion to Sell Property
TURNKEY CONSTRUCTION: Case Summary & 17 Unsecured Creditors
V2X INC: S&P Affirms 'B+' ICR on Steady Award Activity
VARSANYI FEDDY: Seeks Chapter 7 Bankruptcy in Nevada
VEGAS CUSTOM FOOD: Seeks Chapter 7 Bankruptcy in Nevada
VOXTUR ANALYTICS: Seeks CCAA Protection to Restructure
WALKER EDISON: Secures Court OK to Seek Liquidation Plan Votes
WEINBERG CAPITAL: Gregory Jones Named Subchapter V Trustee
WESTSIDE TOW: Court Extends Cash Collateral Access to Nov. 19
WESTSIDE TOW: Court OKs Deal to Use SBA's Cash Collateral
WHITE BEHAVIORAL: Unsecureds Will Get 16.22% over 5 Years
WHITEHALL PHARMACY: Court Extends Cash Collateral Access to Dec. 31
WINTER GARDEN: S&P Withdraws 'CC' LT Rating on 1994 Revenue Bonds
YELLOW CORP: Judge to Issue Chapter 11 Plan Ruling Amid MFN Fight
[] BOOK REVIEW: Dynamics of Institutional Change
*********
5 MASADA: Seeks Chapter 11 Bankruptcy in New Jersey
---------------------------------------------------
On November 4, 2025, 5 Masada LLC voluntarily filed for Chapter 11
bankruptcy protection in the District of New Jersey. Court
documents show liabilities between $100,001 and $1 million, with
1–49 creditors.
About 5 Masada LLC
5 Masada LLC is a single asset real estate company.
5 Masada LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D.N.J. Case No. 25-21755) on November 4, 2025. In its
petition, the Debtor reports estimated assets between $1 million
and $10 million and estimated liabilities between $100,001 and $1
million.
Honorable Bankruptcy Judge Stacey L. Meisel handles the case.
The Debtor is represented by Avram D. White, Esq. of Law Offices
Of Avram D White, Esq.
ACUSHNET HOLDINGS: S&P Rates New $500MM Sr. Unsecured Notes 'BB'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating and '4'
recovery rating to Acushnet Holdings Corp.'s proposed $500 million
senior unsecured notes due in 2033. The '4' recovery rating
indicates its expectation of average (30%-50%; rounded estimate:
35%) recovery for noteholders in the event of a payment default.
The company intends to use the net proceeds from the proposed notes
offering to redeem its $350 million 7.375% senior unsecured notes
due October 2028 and repay a portion of borrowings under its
revolving credit facility (RCF). At the same time, the company is
seeking to replace its existing $950 million senior secured
revolving credit facility, which is due in 2027, with a new
five-year, $950 million senior secured revolving credit facility,
due in 2030.
S&P said, "We view this as a leverage-neutral transaction that will
improve liquidity by increasing availability under its RCF and
extend the revolver's medium-term maturity. We forecast Acushnet
will maintain good earnings momentum following a solid third
quarter ended Sept. 30, 2025, in which revenue and S&P Global
Ratings-adjusted EBITDA grew 6% and 9%, respectively.
"We also expect the company will continue to balance future
shareholder returns with financial discipline, such that S&P Global
Ratings-adjusted leverage remains in the mid-2x range. Our ratings
on Acushnet reflect its solid brand presence and leading market
share in golf products, good track record of innovation and new
product introductions, and consistent cash flow generation. This is
partly offset by its focus on the highly competitive and mature
golf industry, vulnerability to economic cycles due to the
discretionary nature of the category, and meaningful exposure to
tariffs. Our 'BB' issuer credit rating on the company and stable
outlook are unchanged."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors:
Acushnet's pro forma debt capital structure consists of:
-- $950 million five-year senior secured revolving credit facility
due 2030 (not rated);
-- $500 million senior unsecured notes; and
-- $23 million of borrowings under unsecured, uncommitted local
credit facilities (not rated).
Security and guarantee package:
-- The borrowers under the revolving credit facility are Acushnet
Company (U.S. Borrower), Acushnet Canada Inc. (Canadian Borrower),
and Acushnet Europe Ltd. (UK Borrower). The revolving credit
facility is secured by first-priority interest in substantially all
tangible and intangible assets, including stock pledges of wholly
owned subsidiaries, which are limited to 65% voting interests of
first-tier foreign subsidiaries and excluding equity interests of
subsidiaries of first-tier foreign subsidiaries, subject to certain
exceptions.
-- Acushnet Company is the issuer of the proposed notes which will
be unsecured. The notes will be guaranteed on a senior unsecured
basis by Acushnet Holdings Corp. and each of the issuer's existing
and future wholly-owned domestic restricted subsidiaries that are
guarantors of the issuer's obligations under the revolving credit
facility. The company also has certain senior unsecured local
credit facilities available through its subsidiaries which are held
in foreign jurisdictions.
Insolvency regime:
-- S&P said, "Acushnet Holdings Corp. is a Delaware corporation
headquartered in Fairhaven, Mass. with its assets predominantly
located in North America and Asia. In the event of an insolvency
proceeding, we anticipate the company would file for bankruptcy
protection under the auspices of the U.S. federal bankruptcy court
system and would not involve other foreign jurisdictions. Given the
company's leading global market positions, established retail
relationships, and strong brand equity, we believe lenders would
receive meaningful recovery in a payment default scenario if it is
reorganized instead of liquidated."
Simulated default assumptions:
-- S&P's simulated default scenario contemplates a default in the
first half of 2030, likely caused by a decline in golf
participation, a severe recession that hurts consumer discretionary
spending, or innovation that lags peers. These factors lead to
significant EBITDA and cash flow deterioration, causing a payment
default.
Valuation:
Calculation of EBITDA at emergence:
-- Default year debt service: $92.4 million (default year interest
plus amortization)
-- Default year minimum capex: $47.4 million
-- Default EBITDA proxy: $139.8 million
-- Operational adjustment: $14.0 million (10%)
-- EBITDA at emergence: $153.8 million.
S&P's gross enterprise value assumes a 6x multiple to emergence
EBITDA to arrive at a gross recovery value of about $922.7 million.
This 6x multiple is consistent with peers and supported by its good
brand equity and solid global market positions.
Simplified waterfall:
-- Net recovery value for waterfall after admin expenses (5%):
$876.6 million
-- Obligor/nonobligor valuation split: 60%/40%
-- Estimated first-lien claims: $833.5 million
-- Value available for first-lien claims: $525.9 million
-- Total unsecured claims: $823.2 million (including first-lien
deficiency claims)
-- Value available for unsecured claims: $328.9 million
--Recovery expectations: 30%-50% (rounded estimate: 35%)
ADDISON STATION: Updates Unsecured Claims Details
-------------------------------------------------
Addison Station LLC submitted a Second Amended Disclosure Statement
with respect to Plan of Reorganization dated November 3, 2025.
Since the Petition Date, the Debtor has continued to operate as a
Debtor in possession subject to the supervision of the Bankruptcy
Court and the United States Trustee's Office in accordance with the
Bankruptcy Code.
BP asserts it is owed, as of the Petition Date $9,965,339.43 as a
secured claim (Claim 4-1) and $9,248,087.57 as an unsecured claim
(Claim 5-1) as well as real estate taxes it has paid and will pay
during this case. The U.S. Trustee has raised concerns that these
claims are time barred because no payments have been made on them
for numerous years. The Debtor asserts these claims have been
acknowledged by the Debtor, rendering statutes of limitations
inapplicable.
The Debtor asserts that ABP's collateral is valued at
$1,782,500.00. Debtor's plan proposes to convey the ABP Collateral
to ABP and allow ABP a general unsecured deficiency claim of
$8,182,839.43 in addition to the general unsecured claim set forth
in Claim 5-1. The Crawfords believe both Claim 5-1 and Claim 4-1
are overstated.
The Plan proposes the transfer of the ABP Collateral to ABP,
creating an allowed combined unsecured and deficiency claim for ABP
in the amount of $17,430,927.00. Gault will cause to be paid
$370,000.00 (the "Cash Infusion") which is calculated to be the
amount that would be received by the estate in a Chapter 7 case for
Lot 12 and the 6232 Property, within 14 days of the Effective Date.
After the Crawford Claim is determined and all other Claim
Objections are resolved, the Debtor will distribute all cash of the
estate to creditors pro rata. The Crawfords believe both Claim 5-1
and Claim 4-1 are overstated.
Class 3 consists of Unsecured Claims. On the Distribution Date, the
Debtor shall pay any proceeds remaining from the Cash Infusion
after payment of all costs of sale, Post-Effective Date Expenses,
U.S. Trustee fees and Administrative Expenses, Secured Claims, and
Priority Claims, to holders of General Unsecured Claims in full and
complete satisfaction of any General Unsecured Claims pro rata.
Holders of Allowed Class 3 Claims are impaired entitled to vote to
accept or reject the Plan.
Subject to potential objections, the unsecured claims currently
are:
ABP deficiency claim $8,182,839.43 (Claim 4-1)
ABP unsecured claim: $9,248,087.57 (Claim 5-1)
Crawfords' claim: $4,131,750.00 (Claim 2-1)
Meyers, Rodbell & Rosenbaum $18,823.67 (Scheduled)
Tom Mateya $5,000.00 (Scheduled)
WSSC $500.00 (Scheduled)
In full and complete satisfaction of the Allowed Secured Claim of
ABP against the ABP Collateral, on the Effective Date, the Debtor
shall convey the ABP Collateral to ABP free and clear of liens. In
full and complete satisfaction of the Allowed Secured Claim of ABP
against the ABP Collateral, on the Effective Date, the Debtor shall
convey the ABP Collateral to ABP or its assigns free and clear of
liens.
Within 14 days of the Effective Date, Gault shall cause to be paid
$370,000.00 to the Bankruptcy Estate (the "Cash Infusion"). The
funds are readily available and no assets need to be sold to pay
the Cash Infusion.
On the Effective Date, the 6232 Property and Lot 12 shall vest in
the Debtor, subject to the Liens and other obligations expressly
created or preserved by this Plan, but otherwise free and clear of
all other liens, claims, interests and encumbrances. All rights to
manage the Debtor shall be vested in the Debtor, including any
right to appeal the Confirmation Order.
The Bankruptcy Court has scheduled the Confirmation Hearing for
December 16, 2025, at 11:30 a.m., at the United States Bankruptcy
Court for the District of Maryland, 6500 Cherrywood Lane, Courtroom
3-C, Greenbelt MD 20770.
A full-text copy of the Second Amended Disclosure Statement dated
November 3, 2025 is available at https://urlcurt.com/u?l=FHnZMj
from PacerMonitor.com at no charge.
Counsel to the Debtor:
Justin P. Fasano, Esq.
McNamee Hosea, P.A.
6404 Ivy Lane, Suite 820
Greenbelt, MD 20770
Tel: (301) 441-2420
Fax: 301-982-9450
Email: jfasano@mhlawyers.com
About Addison Station LLC
Addison Station LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 25-1312) on April 10, 2025.
In its petition, the Debtor reports estimated assets between
$100,000 and $500,000 and estimated liabilities between $10 million
and $50 million.
The Debtor is represented by Steven L. Goldberg, Esq. at MCNAMEE
HOSEA, P.A.
ADVENTURE COAST: Claims to be Paid from Disposable Income
---------------------------------------------------------
Adventure Coast, LLC, filed with the U.S. Bankruptcy Court for the
Northern District of Georgia an Amended Plan of Reorganization
dated November 4, 2025.
The Debtor is a trailer manufacturing and rental company serving
clients across the United States, with a focused presence in the
southeastern region of the country, primarily in the film and
television industry.
As set forth in an adversary proceeding pending before this Court,
the Debtor experienced significant damage to both its ongoing
operations and reputation in the industry in late 2024 and into
early 2025, and negative impact to the Debtor's reputation in the
industry continues to this day. The outcome of the pending
adversary proceeding could result in significantly reducing certain
claims, or providing an affirmative recovery to the estate.
Fortunately, and in no small part thanks to the hard work of
critical personnel of the Debtor, Adventure Coast is now
experiencing a period of stability. With industry activity
rebounding, the Debtor's rental segments have seen an uptick in
demand. Production design services are once again in demand, and
Mr. Cooley has generated significant additional revenue via
production design services. This positive momentum positions
Adventure Coast to successfully reorganize and is confident it can
meet the five-year projections.
The Debtor's budget outlines the projected Disposable Income and
the planned quarterly payments to creditors. The Debtor is
committed to adhering to this budget and making all required
payments under the Plan. The Plan offers a structured and feasible
method for addressing the Debtor's financial obligations,
maximizing the return to creditors, and preserving the Debtor's
ability to generate future income.
Overall, the liquidation analysis underscores the benefits of the
proposed Plan over a Chapter 7 liquidation. By reorganizing the
Debtor's financial affairs and leveraging their income-generating
potential, the Plan aims to provide a more effective and equitable
solution for all parties involved.
This Plan deals with all property of the Debtor and provides for
treatment of all Claims against the Debtor and the Debtor's
property.
Class 12 shall consist of the General Unsecured Claims. The
Disbursing Agent shall make payment of Disposable Income to the
Holders of Class 12 Claims in quarterly installments beginning on
the Initial Distribution Date, to be distributed pro rata to Class
12 Claimants. Class 12 is impaired and entitled to vote on the
Plan.
The Debtor shall make payments equal to the Debtor's Disposable
Income each month for 60 months to fund the claims of General
Unsecured Creditors, Administrative Claims, and Priority Tax
Claims. The Disbursing Agent will then make quarterly distributions
to Holders of Allowed Unsecured Claims beginning on the Initial
Distribution Date.
The source of funds for the payments pursuant to the Plan is the
income generated by the Debtor's income from the operation of the
Debtor's business and the sale of certain assets.
A full-text copy of the Amended Plan dated November 4, 2025 is
available at https://urlcurt.com/u?l=PwVesU from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Benjamin R. Keck, Esq.
Jonathan Clements, Esq.
KECK LEGAL, LLC
2801 Buford Highway NE, Suite 115
Atlanta, GA 30329
Tel: (470) 826-6020
About Adventure Coast, LLC
Adventure Coast, LLC is an equipment rental service provider
specializing in trailers, restrooms, showers, generators, and other
production essentials for the film, broadcast, live events, private
events, and sports industries. With locations across major cities
like Atlanta, Nashville, and Orlando, the Company provides
nationwide service for everything from large-scale productions to
intimate events. Its extensive inventory includes talent trailers,
RVs, office trailers, shower trailers and heavy equipment.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N. D. Ga. Case No. 25-50682) on January 22,
2025. In the petition signed by Marcus Cooley, CEO, the Debtor
disclosed up to $10 million in both assets and liabilities.
Benjamin Keck, Esq., at Keck Legal, LLC, represents the Debtor as
legal counsel.
ADWOA BEAUTY: Areya Holder Aurzada Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 6 appointed Areya Holder Aurzada, Esq.,
at Holder Law as Subchapter V trustee for Adwoa Beauty LLC.
Ms. Aurzada will be paid an hourly fee of $575 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Aurzada declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Areya Holder Aurzada, Esq.
Holder Law
901 Main Street, Ste. 5320
Dallas, TX 75202
Office: 972-438-8800
Mobile: 817-907-4140
About Adwoa Beauty LLC
Adwoa Beauty LLC, doing business as Adwoa Beauty, develops and
sells hair-care products for textured hair from Dallas, Texas. It
uses natural ingredients designed for curls, coils, and waves.
Founded in 2017 and led by Julian Addo, Adwoa Beauty operates in
the personal care and cosmetics industry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Texas Case No. 25-44261) on October
31, 2025, with $2,184,143 in assets and $6,192,343 in liabilities.
Julian Addo, managing member, signed the petition.
Judge Mark X. Mullin presides over the case.
Robert T. DeMarco, Esq., at DeMarco Mitchell, PLLC represents the
Debtor as legal counsel.
AG RECYCLING: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Five affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
AG Recycling, Inc. (Lead Case) 25-30862
339 South 6th Street
Mascoutah, IL 62258
Surmeier Holdings LLC 25-30863
6515 Page Ave
Saint Louis, MO 63133
Surmeier Holdings Gregan LLC 25-30864
6515 Page Ave
Saint Louis, MO 63133
Carbonox Incorporated 25-30865
339 South 6th Street
Mascoutah, IL 62258
Eco Recycling, Inc. 25-30866
6515 Page Ave.
Saint Louis, MO 63133
Business Description: AG Recycling, Inc. is a recycling and
aggregate materials company based in
Mascoutah, Illinois, engaged in processing
concrete, asphalt, and soil for reuse in
construction and infrastructure projects.
The Company provides mobile crushing,
materials recovery, and related recycling
services across Illinois. It is affiliated
with Surmeier Holdings LLC, Surmeier
Holdings Gregan LLC, Carbonox Incorporated,
and Eco Recycling, Inc.
Chapter 11 Petition Date: November 9, 2025
Court: United States Bankruptcy Court
Southern District of Illinois
Judge: Hon. Mary E Lopinot
Debtors'
Bankruptcy
Counsel: Spencer Desai, Esq.
THE DESAI LAW FIRM
13321 North Outer Forty Road
Suite 300
Chesterfield, MO 63017
Tel: 314-666-9781
Email: spd@desailawfirmllc.com
AG Recycling, Inc.'s
Estimated Assets: $0 to $50,000
AG Recycling, Inc.'s
Estimated Liabilities: $1 million to $10 million
Surmeier Holdings'
Estimated Assets: $1 million to $10 million
Surmeier Holdings's
Estimated Liabilities: $1 million to $10 million
Surmeier Holdings Gregan's
Estimated Assets: $1 million to $10 million
Surmeier Holdings Gregan's
Estimated Liabilities: $1 million to $10 million
Carbonox Incorporated's
Estimated Assets: $0 to $50,000
Carbonox Incorporated's
Estimated Liabilities: $1 million to $10 million
Eco Recycling's
Estimated Assets: $1 million to $10 million
Eco Recycling's
Estimated Liabilities: $0 to $50,000
The petitions were signed by Timothy L. Surmeier as president and
manager.
Copies of the Debtors' list of 20 largest unsecured creditors are
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/W462NTQ/AG_Recycling_Inc__ilsbke-25-30862__0003.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/VI5C22A/Eco_Recycling_Inc__ilsbke-25-30866__0003.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/URHBMJI/Carbonox_Incorporated__ilsbke-25-30865__0002.0.pdf?mcid=tGE4TAMA
Full-text copies of the petitions are available for free on
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AGEAGLE AERIAL: Inks Series G Preferred Stock Offering
------------------------------------------------------
AgEagle Aerial Systems Inc. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that on November
5, 2025, it entered into a Securities Purchase Agreement with the
investors party thereto, pursuant to which, subject to the terms
and conditions set forth therein, the Company agreed to issue and
sell to the Buyers in a Registered Direct Offering an aggregate of
up to 100,000 shares of the Company's Series G Convertible
Preferred Stock, $0.001 par value per share.
Subject to the terms and conditions of the Certificate of
Designation of Preferences, Rights and Limitations of the Series G
Convertible Preferred Stock, the Series G Preferred Stock is
convertible immediately upon issuance, at an initial conversion
price equal to $1.23 per share.
The Conversion Price is subject to customary adjustments for stock
dividends, stock splits, reclassifications and the like, and
subject to price-based adjustment in the event of any issuances of
common stock, par value $0.001 per share, or securities
convertible, exercisable or exchangeable for Common Stock, at a
price below the then-applicable Conversion Price (subject to
certain exceptions).
The Company agreed to sell, and the Buyers, severally and not
jointly, agreed to purchase an aggregate of 12,000 shares of Series
G Preferred Stock on the Initial Closing Date (as defined in the
Purchase Agreement).
Subject to the terms and conditions of the Purchase Agreement,
including approval by the Company's stockholders with respect to
the transactions contemplated by the Purchase Agreement and the
Certificate of Designation, including the issuance of all of the
shares of the Company's Common Stock, issuable upon conversion of
the shares of the Series G Preferred Stock in accordance with the
terms of the Purchase Agreement in excess of 19.99% of the issued
and outstanding Common Stock on the date of the Purchase Agreement,
the Buyers may elect in their sole discretion to purchase up to a
total aggregate of 88,000 additional shares of Series G Preferred
Stock in one or more closings.
Upon each issuance of Additional Preferred Shares, the Conversion
Price will be reduced to equal the lower of:
(i) the Conversion Price on the trading day immediately prior
to the issuance of such Additional Preferred Shares, and
(ii) 75% of the "Minimum Price" (as defined in Section 713(c)
of the NYSE American LLC Company Guide) on the trading day
immediately prior to the issuance of such Additional Preferred
Shares, provided that, the Conversion Price may not be less than
$1.00; provided further that, the Company may waive, in its sole
discretion, the Floor Price Condition.
The Purchase Agreement contains certain representations and
warranties, covenants and indemnification provisions customary for
similar transactions. The representations, warranties and covenants
contained in the Purchase Agreement were made solely for the
benefit of the applicable parties to the Purchase Agreement and may
be subject to limitations agreed upon by the applicable contracting
parties.
Among other covenants, the Purchase Agreement requires the Company
to hold a meeting of its stockholders no later than 75 days
following the Initial Closing Date, to seek Stockholder Approval.
The Offering will be made pursuant to a prospectus supplement dated
November 5, 2025, and a base prospectus dated September 22, 2025,
which is part of a registration statement on Form S-3 (File No.
333-290164) that was filed with the U.S. Securities and Exchange
Commission on September 10, 2025, and became effective on September
22, 2025.
The Company does not plan to apply to list the Series G Preferred
Stock on the NYSE American, any other national securities exchange
or any other nationally recognized trading system.
A full-text copy of the Purchase Agreement is available at
https://tinyurl.com/y5w562ed
About EagleNXT
AgEagle Aerial Systems Inc. (dba, EagleNXT) (NYSE: UAVS) is a
leading developer of high-performance drones, advanced sensors, and
intelligent software solutions that deliver critical aerial
intelligence to customers around the world. With more than one
million flights conducted globally, EagleNXT's platforms are
trusted across defense, public safety, agriculture, infrastructure,
and environmental monitoring applications. The Company's drone
systems have achieved multiple industry firsts, including FAA
approvals for Operations Over People (OOP) and Beyond Visual Line
of Sight (BVLOS), as well as EASA C2 certification in Europe and
inclusion on the U.S. Department of Defense's Blue UAS list.
As of June 30, 2025, the Company had $23.2 million in total assets,
$6.9 million in total liabilities, and a total stockholders' equity
of $16.9 million.
Orlando, Florida-based WithumSmith+Brown, PC, the company's auditor
since 2020, issued a "going concern" qualification in its report
dated March 31, 2025, attached to the Company's Annual Report on
Form 10-K for the year ended Dec. 31, 2024, citing that the Company
has suffered recurring losses from operations, has experienced cash
used from operations in excess of its current cash position, and
has an accumulated deficit that raise substantial doubt about its
ability to continue as a going concern.
ALLEGIANT TRAVEL: Moody's Affirms 'Ba3' CFR, Outlook Stable
-----------------------------------------------------------
Moody's Ratings affirmed the ratings of Allegiant Travel Company
("Allegiant"), including its corporate family rating at Ba3,
probability of default rating at Ba3-PD and its senior secured
notes rating at Ba3. The company's speculative grade liquidity
rating of SGL-2 remains unchanged. The outlook remains stable.
The affirmation reflects Allegiant's good liquidity and Moody's
forecasts that the company will maintain debt/EBITDA below 4.5x
with interest coverage (funds from operations plus interest
expense/interest expense) above 3.0x over the next 12 to 18 months.
Improved earnings, driven by increased aircraft utilization,
delivery of more efficient Boeing 737-MAX 8s and essentially flat
capacity in 2026, will help Allegiant reduce its debt/EBITDA to
around 4.0x by the end of 2026. Cost cutting initiatives will also
contribute to the company generating an operating profit of above
7% in 2026.
RATINGS RATIONALE
The Ba3 CFR reflects the financial benefits of Allegiant's
differentiated airline operating model that results in limited
competition across about 75% of its routes. Moody's expects
Allegiant to continue to achieve one of the highest operating
margins among rated airlines. Moody's also expects that debt/EBITDA
will remain below 4.5x through primarily earnings improvement.
Allegiant recently repaid $120 million of its senior secured notes
due 2027 with proceeds from the sale of the Sunseeker hotel.
Allegiant had 37 737-MAX 8 aircraft on order at June 30, 2025, to
be delivered through 2028. These aircraft will be funded with debt
which Moody's forecasts will limit deleveraging to around 4.0x by
the end of 2026.
The sustained high capital investment in the fleet that will weigh
on free cash flow through 2026 which is a balancing factor against
the company's relatively strong airline operating performance.
Financial policy will remain conservative, with limited returns to
shareholders given the negative free cash flow and the company's
pursuit of lower financial leverage.
The stable outlook reflects the company's good liquidity and
Moody's expectations that debt/EBITDA will remain below 4.5x, even
as the company takes delivery of new 737-MAX 8s.
Good liquidity supports the Ba3 rating. Moody's expects cash and
short-term investments to remain above $700 million through 2026.
The company has access to $275 million of committed revolving
credit facilities which were undrawn at June 30, 2025. Moody's
forecasts free cash flow will be around negative $400 million
negative in 2026 while the company receives new aircraft
deliveries.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Sustaining positive free cash flow will be important before
consideration of a higher rating. With positive free cash flow, the
ratings could be upgraded if Allegiant maintains good liquidity,
with cash and short-term investments remaining above $700 million.
Improved credit metrics, including debt/EBITDA sustained below 3.5x
could also support an upgrade. The ratings could be downgraded if
operating challenges or changes to the company's financial policy
result in debt/EBITDA being sustained above 4.5x or if its
operating margin remains below 10%. Deterioration in liquidity,
such that cash and short-term investments fall below $700 million
could also lead to a ratings downgrade.
Allegiant Travel Company, headquartered in Las Vegas, Nevada,
operates a low-cost passenger airline marketed to leisure travelers
in small cities. Allegiant sells air travel, hotel rooms, rental
cars and other travel related services on a standalone or bundled
basis. Revenue was $2.3 billion for the 12 months ended June 30,
2025.
The principal methodology used in these ratings was Passenger
Airlines published in August 2024.
Allegiant's Ba3 CFR is two notches above the B2 scorecard-indicated
outcome. This is largely reflective of the company's good
liquidity, differentiated business strategy, and improving credit
metrics given the sale of the underperforming Sunseeker hotel and
absolute debt repayment.
AMNEAL PHARMACEUTICALS:S&P Alters Outlook to Pos, Affirms 'B+' ICR
------------------------------------------------------------------
S&P Global Ratings revised its outlook on Bridgewater, N.J.-based
generic and specialty pharmaceutical company Amneal Pharmaceuticals
Inc. to positive. At the same time, S&P affirmed its 'B+' issuer
and issue-level ratings on the company. The recovery rating on the
term loan and senior secured note remains '4', indicating our
expectation for average (30%-50%) recovery in the event of a
payment default.
S&P said, "The positive outlook reflects the possibility that we
will raise the rating on Amneal over the next 12 months if it
sustains S&P Global Ratings-adjusted leverage under 4x.
"We forecast Amneal's leverage will fall under 4x in 2026. Its
financial performance through the third quarter of 2025 exceeded
our expectations, with solid growth across the company's three
segments (Affordable Medicines, Specialty, and AvKARE) and leverage
improving to 4.2x. We now expect leverage will decline to 4.1x in
2025 and 3.7x in 2026, supported by growth from new product
launches, including Crexont (its branded Parkinson's therapy
launched in September 2024), relatively stable EBITDA margins, and
some voluntary debt repayment, as management reiterated its goal of
reducing net leverage below 3x by 2027. We measure Amneal's
leverage ratio on a gross basis, and our measure is typically
0.3x-0.5x higher than the company's net-debt-based leverage
calculation."
Amneal's leverage has been high since 2019, when buyer
consolidation and delayed product launches pressured margins in its
generics portfolio. Following the return of founders Chirag and
Chintu Patel, the company adopted a more conservative financial
policy, reducing leverage to 4.2x in September 2025 from 8.5x in
December 2019. Our positive outlook assumes management will
maintain this policy and continue prioritizing debt reduction while
limiting business development activities to levels consistent with
further deleveraging.
S&P said, "We expect strength across Amneal's business segments and
products will support organic revenue growth of 6%-8% in 2026 .
Through investments in manufacturing capabilities, a shift in
research and development (R&D) priorities, and targeted business
development activities, Amneal has broadened its portfolio to
include complex generics, biosimilars, branded therapeutics, and a
repackaging and distribution business supporting the federal
government (AvKARE).
"Our forecast for organic revenue growth in 2026 primarily stems
from new product launches in the Affordable Medicines (generic
drug) segment and AvKARE. The company's largest growth driver is
Crexont (extended-release capsules of carbidopa + levodopa;
Parkinson's Disease), which we expect to reach peak sales of about
$500 million by 2030. That said, we forecast Specialty segment
revenue will remain flat in 2026 as revenue growth in Crexont is
offset by the decline from Rytary (the predecessor product
requiring more frequent dosing) following Teva Pharmaceutical's
(BB/Positive) generic entry. Amneal is also leveraging its global
manufacturing footprint to enter partnerships, including its
agreement with Metsera to manufacture and commercialize a portfolio
of weight loss medications, which should further support long-term
growth.
"While we view Amneal's increasing scale and revenue
diversification as incrementally improving its credit profile over
time, the company operates in the highly fragmented, intensely
competitive, and somewhat commodity-like generic pharmaceuticals
industry led by significantly larger peers such as Teva, Viatris
(BB+/Stable), and Sandoz (BBB/Stable), which we believe have a
broader set of capabilities and benefit from greater economies of
scale. The industry remains characterized by annual price erosion
typically in the mid-single-digit percent area and significant
buyer concentration, with the three largest U.S. purchasers
accounting for more than 80% of generic drug procurement. These
structural factors constrain our assessment of Amneal's business
strength.
"We expect EBITDA margins to remain 22%-23% through 2026, supported
by higher-margin product launches, partially offset by growth in
the lower-margin AvKARE segment and commercialization costs for
Crexont. While the company's shift toward complex generics and
specialty products should enhance profitability over time, it can
also introduce earnings volatility due to potential approval delays
or manufacturing challenges. We forecast R&D spending will remain
near 7% of revenue in 2026 as the generics portfolio, the main
driver of R&D expense, becomes a smaller portion of total sales.
Although Amneal continues to expand its biosimilar and specialty
portfolios, we note it is doing so primarily through in-licensing
arrangements rather than internal development, limiting up-front
R&D investment, in return for revenue sharing arrangements.
"The positive outlook reflects the significant likelihood that we
will raise the rating on Amneal over the next 12 months if it
lowers and sustains S&P Global Ratings-adjusted leverage under
4x."
S&P could revise the outlook on Amneal back to stable if it expects
it will sustain S&P Global-Ratings-adjusted leverage above 4x. This
could occur due to:
-- Operational disruptions in its Affordable Medicines segment;
-- Unforeseen difficulties with the commercialization of Crexont;
or
-- A change in financial policy, such as significant spending on
debt-funded acquisitions or share buybacks.
S&P could raise the rating on Amneal if it demonstrates commitment
to keeping its S&P Global Ratings-adjusted leverage below 4x over
the next 12 months. This could occur if Amneal's actions and public
comments indicate continued prioritization to maintain leverage
below that level.
APPLIED DIGITAL: S&P Assigns 'B+' ICR, Outlook Positive
-------------------------------------------------------
S&P Global Ratings assigned our 'B+' issuer credit rating to
Applied Digital Corp., which reflects the long-term contractual
framework that will support earnings visibility upon lease
commencement, partly offset by construction risk and tenant
concentration with a speculative-grade counterparty.
S&P said, "At the same time, we assigned our 'BB-' issue-level
rating to Applied ComputeCo's senior secured amortizing notes. The
recovery rating is '2', indicating our expectation for substantial
(70%-90%; rounded estimate: 70%) recovery in a default scenario.
"The positive outlook reflects the possibility we could raise the
rating upon lease commencements or if the company continues to
diversify its tenant base by signing long-term leases with highly
rated counterparties while mitigating construction risk."
Applied Digital Corp. subsidiary APLD ComputeCo LCC (Applied
ComputeCo) plans to issue $2.35 billion of senior secured
amortizing notes primarily to finance data center construction of
the 150-megawatt (MW) ELN-3 facility in Ellendale, N.D.. The notes
will also be secured by recently commenced operations at ELN-2.
Applied Digital has also signed long-term leases with CoreWeave
Inc. (B+/Stable/--) for an additional 150 MW in Ellendale in the
ELN-4 building (to be constructed) and 200 MW with an
investment-grade hyperscale tenant near Harwood, N.D., which are
not included in the credit group.
S&P said, "Our issuer credit rating is at the parent level. We rate
Applied Digital using our digital infrastructure sector-specific
corporate methodology. We have not applied project finance criteria
as we believe certain protections typical of project finance
transactions are not present to ensure lenders are sufficiently
isolated from impairment of credit quality at Applied Digital
ComputeCo LLC. Primarily, we view the issuer as an open portfolio
due to eligibility requirements and covenants around new
developments that are not sufficiently restrictive, based on our
assessment, to constrain credit risk to the level contemplated
under our project finance methodology."
Still, other typical project finance features are present,
including a first-lien security on assets, contracts, and cash
flows of Applied ComputeCo, as well as a cash flow waterfall to
ensure prioritization of debt service on the proposed notes. More
specifically, lease payments flow into a lockbox account controlled
by the collateral agent and are then distributed through a
waterfall that includes operating expenses, mandatory debt
amortization, interest expense, and excess cash flows offers, in
that order. The application of S&P's corporate methodology is
subject to change if final documentation differs from preliminary
terms.
Earnings visibility will be high upon lease commencement. The
company has 15-year noncancelable contracts in place with its
tenants once the sites are operational. There's also annual rent
escalators and a modified gross-lease structure, in which power
costs are a direct tenant expense. This allows for stable and
predictable revenue, earnings, and cash flow. During operations,
there are also termination rights available for chronic outages
within a single year or a continuous three-day outage, which S&P's
view as unlikely given the high-quality design characteristics of
the facility. In the event of a force majeure--an extraordinary
circumstance beyond the control of both parties that frees them
from liability--the termination rights would not apply.
Still, construction risk somewhat constrains the rating. CoreWeave
has the right to terminate the lease if it's delivered more than
180 days late. This is a credit risk considering that the data
centers being constructed account for most of Applied Digital's
projected earnings. Data center construction can be delayed by
supply-chain issues for critical components, including power and
cooling equipment, labor shortages in skilled trades, permitting
delays, scheduling complexities, and weather. Furthermore, the
company has a more-limited track record than larger data center
peers. S&P captures this risk within its business risk assessment,
limiting it to fair during construction.
S&P said, "The ELN-3 construction timeline appears feasible. Under
our base-case forecast, we assume the project will be completed on
time and within budget. The project timeline is achievable,
according to an independent lender's technical advisor (LTA)
report, but at the shorter end of industry benchmarks. We believe
the budget contains adequate funds, with an 8% contingency. The
cost per MW of about $12 million is within industry benchmarks for
data centers over 75 MW. Additional considerations in our
assessment of construction risk include our view that the data
centers are essential for the tenant, construction difficulty is on
the lower end for social infrastructure, and ELN-2 was recently
completed on time."
Importantly, the project appears to have a high degree of strategic
importance to CoreWeave, which is expanding to support its growth
initiatives. Importantly, the data center market is
supply-constrained, with readily available access to low-cost power
serving as a barrier to entry. The lack of readily available
alternatives could make it less likely the tenant will exercise its
termination rights if there are modest delays that allow for this
option. S&P thinks it would only do so if its business strategy
shifts significantly over the next year and demand for the planned
AI chips to be placed in the facility diminishes.
The general contractor is McGough Construction Co, which is
unrated. They are headquartered in Minnesota and have had an office
in Fargo, N.D., since 2015. While they lack a more established
track record compared with some larger operators, they have
successfully worked on data center projects of various sizes. This
includes the recently completed 100-MW ELN-2 building, which was
delivered ahead of schedule.
The latest construction schedule indicates permanent power
availability by Jan. 20, 2026. The utility provider is
Montana-Dakota Utilities Co (MDU). The necessary gross capacity of
530 MW has been approved by Midcontinent Independent System
Operator and North Dakota Public Services Commission for the
Ellendale site to host ELN-2 (130 MW), ELN-3 (200 MW) and ELN-4
(200 MW). There is a new substation being built to deliver the full
530 MW of capacity. The first phase of the substation with an
incremental 225 MW has been energized. The substation capacity will
ramp as more sections are commissioned and all long-lead equipment
is on-site or has been ordered with proven suppliers. There is
currently 180 MW of power to the site for ELN-1, which is being
used for a bitcoin mining tenant. This capacity will likely be
transferred to ELN-4 later.
Supply chain considerations remain a defining factor in the
project's success. The procurement of long-lead equipment such as
generators, switchgear, transformers, chillers, pumps, and
uninterruptable power supply (UPS) systems requires early
engagement with manufacturers to align production slots with the
project schedule, which the company has undertaken. In fact,
procurement of long-lead electrical and mechanical equipment is in
advanced stages, with approximately 95% of major components
secured.
S&P believes labor risk is more elevated in large scale rural
buildouts. For example, Ellendale is a remote town with only 1,100
residents, which can affect resource availability. To mitigate this
risk, contractors have been offered higher compensation to attract
talent from Minneapolis, Fargo, and other nearby cities.
Importantly, a similar project was just completed on site in
Ellendale and is likely to utilize much of the same labor force.
S&P said, "Finally, there is an easement matter that we believe
will be resolved but could hinder project timeliness. Applied
Digital is in the process of finalizing a reclamation plan with
United States Fish and Wildlife Service (USFWS) that could be
resolved shortly. USFWS requires 22 acres of nearby wetlands to be
restored, with Applied paying for any remediation for it to release
the easement on Applied's land parcel. We believe this is
achievable, although the current government shutdown could impact
the approval process."
The data centers are designed to be high quality. The design
objectives achieve layers of redundancy to achieve 99.999% uptime.
The electric and mechanical systems are designed with N+1
redundancy, ensuring concurrent maintainability while maintaining
full operational capacity during single failure conditions. The
facilities are designed to have a peak power-usage efficiency (PUE)
ratio of less than 1.35--targeting 1.18 during typical annual
operation--which allows for efficient operations, with most power
allocated to run IT equipment. The buildings will have closed-loop
liquid cooling, which is required to cool high-density power AI
chips.
There is tenant concentration with a speculative-grade
counterparty, but near-term releasing prospects are favorable.
Applied Digital is highly dependent on CoreWeave, which S&P
estimates will contribute about two-thirds of total contracted
earnings. Although S&P sees this level of concentration as a key
risk, S&P's base case assumes that CoreWeave supported by its
growing role in the ecosystem serving leading AI players such as
Microsoft (currently its largest customer), OpenAI, and Meta, as
well as by the symbiotic relationship CoreWeave enjoys with NVIDIA,
its sole chip supplier, will meet its lease obligations for the
next several years. NVIDIA is also a common investor in both
CoreWeave and Applied Digital (holding minority equity stakes of
approximately 7% and 2.8%, respectively).
Applied Digital's building design confirm to the standards of most
other potential AI tenants and are cost advantageous. Given their
location in North Dakota, where electricity is about 24% below the
national average and because of the colder climate cooling
equipment does not need to be run as frequently, tenants can save
$50 million-$60 million per year in operating costs compared with
100-MW data centers located elsewhere. This could support better
re-leasing prospects, if necessary, if the broader demand outlook
remains intact.
Still, given that CoreWeave's customer contracts are shorter than
its lease commitments to Applied Digital, it could be challenging
for CoreWeave to honor these lease obligations in an environment
where demand for AI services does not materialize as expected. Such
an environment could likely complicate Applied Digital's efforts to
lease its existing capacity to new tenants if CoreWeave faces
financial difficulty. If data center market conditions and
ultimately Applied Digital's re-leasing prospects weaken, S&P's
rating could be more directly tied to CoreWeave's.
Diversification is limited and there's long-term releasing risk.
Applied has significant tenant, contract, and market
concentrations. This exposes it to low-probability idiosyncratic
risks such as casualty events that damage or destroy facilities.
Still, the company will maintain "all risk" operational property
insurance in amounts sufficient to cover the full replacement value
of the buildings. However, certain types of losses, generally of a
catastrophic nature, such as earthquakes, wildfires and floods, may
be either uninsurable or not economically insurable.
The re-leasing risk isn't an immediate credit concern given the
long-term nature of the contracts, but it could come into sharper
focus as lease maturities approach, or if CoreWeave comes under
stress. It's difficult to predict how supply/demand dynamics will
develop over the longer term. However, there's potential for
pricing pressure or vacancy, particularly given the size of the
facility and more limited depth and breadth of tenants in rural
North Dakota compared with those in primary data center markets,
such as Northern Virginia. These locations that are closer to
end-users could be more attractive for latency-sensitive use-cases,
including AI inferencing. Still, Ellendale facilities offer
round-trip latency to internet exchange points in Omaha of 8.85
milliseconds; 9.45 to Minneapolis; and 16.6 to Denver.
S&P said, "We view the recent announcement with an investment-grade
tenant favorably but have not analyzed the construction risk. The
company has signed a 15-year noncancelable lease with an
investment-grade hyperscaler for 200 MW of critical IT load. The
initial 200 MW are phased within two buildings expected to come
online in 2026 and reach a total of 200 MW in 2027. We believe this
provides a strong contractual framework with high visibility into
future earnings and cash flow upon lease commencement. However, we
have not performed a detailed analysis on construction risk for
this project as design elements are still being finalized.
"We believe further expansion is likely. The Polaris Forge 2 campus
is designed for future expansion. The investment-grade tenant also
holds a right of first refusal for an additional 800 MW of critical
IT, representing the full expansion potential of the 1-gigawatt
(GW) Polaris Forge 2 campus in North Dakota. The site is engineered
to deliver best-in-class efficiency with a projected power usage
effectiveness (PUE) of 1.18 and near-zero water consumption.
Therefore, we believe credit metrics could differ from our base
case, as the timing and funding around new construction is
uncertain.
"We view the financial risk as aggressive. Initially, credit
metrics will be very weak, reflecting a brownfield project funded
with debt. While ELN-2 recently came online and will be generating
some cash flow over the next year as other data centers are built,
the size of ELN-3 and ELN-4 and associated capital spending
requirements will overwhelm the forecast in 2026.
"However, periods of high earnings visibility will follow that
heavy upfront investment, with support from long-term contractual
offtake agreements, such that we apply more weight to the projected
ratios in 2027-2029. Furthermore, digital infrastructure companies
typically pay significant debt-service costs due to their stable
cash flows and ability to support higher debt loads; therefore,
funds from operations (FFO) to debt is an important measure of the
company's cash flow to leverage and ability to service debt. We
expect this ratio to be about 8% in the first full-year of lease
revenue in calendar-year 2027, rising to 11%-12% by 2029 due to
required debt amortization and moderate earnings growth.
"We view Applied Digital's credit profile as modestly weaker than
TeraWulf. We believe that TeraWulf has a stronger contractual
framework due to lease-backing from Alphabet Inc. (AA+/Stable/--)
subsidiary Google LLC. We also recognize that Applied's credit
metrics, such as debt to EBITDA and FFO to debt are modestly
weaker.
"The positive outlook reflects the possibility we could raise the
rating upon lease commencements or if the company continues to
diversify its tenant base with strong counterparties while
mitigating construction risk.
"We could lower the rating if construction is substantially
delayed. We could lower it by more than one notch if we believe the
probability of the tenant terminating its lease agreement has risen
or if liquidity becomes more constrained during construction.
"We could raise the rating by one notch when the lease commences on
ELN-3, provided that ELN-4 and other construction projects are
progressing on schedule with low risk of tenant cancellation. This
would provide more certainty that FFO to debt will rise above 9%
and EBITDA interest coverage will be more than 1.75x.
"We could also raise the rating and remove our negative comparable
rating analysis (CRA) modifier if the company signs more leases
with high-quality counterparties. We would also need to perform a
detailed construction analysis on new leases if there are tenant
termination rights prior to construction. In this scenario, the
construction of new facilities would also need to be financed such
that credit metrics do not erode, including forecasted FFO to debt
sustained above 9%."
ARCHDIOCESE OF NEW ORLEANS: 156 Units' Chapter 11 Case Summary
--------------------------------------------------------------
One hundred fifty-six entities affiliated with the Roman Catholic
Church for the Archdiocese of New Orleans that concurrently filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code:
Debtor Case No.
------ --------
All Saints Roman Catholic Church, 25-12579
New Orleans, Louisiana
1441 Teche Street
New Orleans, LA 70114
Annunciation of the Blessed Virgin Mary 25-12580
Roman Catholic Church, Bogalusa, Louisiana
517 Avenue B
Bogalusa, LA 70427
Ascension of Our Lord Roman Catholic Church, 25-12581
LaPlace, Louisiana
799 Fairway Drive
La Place, LA 70068
The Visitation of Our Lady Roman Catholic Church, 25-12582
Marrero, Louisiana
3500 Ames Blvd
Marrero, LA 70072
Assumption of Mary Roman Catholic Church, 25-12583
Avondale, Louisiana
172 Anre Dung Lac Drive
Avondale, LA 70094
Assumption of the Blessed Virgin Mary Roman 25-12584
Catholic Church Braithwaite, Louisiana
DBA St. Thomas Roman Catholic Church
6951 Highway 39
Braithwaite, LA 70040
Blessed Francis Xavier Seelos Roman Catholic Church, 25-12585
New Orleans, Louisiana
3037 Dauphine Street
New Orleans, LA 70117
Blessed Sacrament-St. Joan of Arc Roman 25-12586
Catholic Church, New Orleans, Louisiana
8321 Burthe Street
New Orleans, LA 70118
The Congregation of St. Rita Roman Catholic 25-12587
Church of Harahan
7100 Jefferson Highway
Harahan, LA 70123
Blessed Trinity Roman Catholic Church, 25-12588
New Orleans, Louisiana
4230 S Broad Street
New Orleans, LA 70125
Christ the King Roman Catholic Church, 25-12589
Gretna, Louisiana
535 Deerfield Road
Terrytown, LA 70056
Corpus Christi-Epiphany Roman Catholic Church, 25-12590
New Orleans, Louisiana
2022 St. Bernard Avenue
New Orleans, LA 70116
Divine Mercy Roman Catholic Church, Kenner, 25-12591
Louisiana
4337 Sal Lentini Parkway
Kenner, LA 70065
Good Shepherd Roman Catholic Church, 25-12592
New Orleans, Louisiana
Sts. Peter and Paul Roman Catholic Church, 25-12593
Pearl River, Louisiana
Holy Family Roman Catholic Church, Franklinton, 25-12594
Louisiana
St. Thomas Roman Catholic Church, 25-12595
Pointe a la Hache, Louisiana
Holy Family Roman Catholic Church, Luling, Louisiana 25-12596
St. Rita Roman Catholic Church, 25-12597
New Orleans, Louisiana
Holy Name of Mary Roman Catholic Church, 25-12598
New Orleans, Louisiana
St. Rita Roman Catholic Church, Harahan, Louisiana 25-12599
Holy Spirit Roman Catholic Church, 25-12600
New Orleans, Louisiana
St. Raymond and St. Leo the Great 25-12601
Roman Catholic Catholic Church, New Orleans
Immaculate Conception Roman Catholic Church, 25-12602
Marrero, Louisiana
Immaculate Conception Roman Catholic Church, 25-12603
New Orleans, Louisiana
St. Pius X Roman Catholic Church, New Orleans, 25-12604
Louisiana
Mary Queen of Peace Roman Catholic Church, 25-12605
Mandeville, Louisiana
St. Philip Neri Roman Catholic Church, Metairie, 25-12606
Louisiana
Mary Queen of Vietnam Roman Catholic Church, 25-12607
New Orleans, Louisiana
St. Peter's Roman Catholic Church, 25-12608
Covington, Louisiana
Mary, Help of Christians Roman Catholic Church, 25-12610
Harvey, Louisiana
St. Peter Roman Catholic Church, Reserve, Louisiana 25-12611
Mater Dolorosa Roman Catholic Church, 25-12612
New Orleans, Louisiana
St. Peter Claver Roman Catholic Church, 25-12613
New Orleans, Louisiana
Most Holy Name of Jesus Roman Catholic Church, 25-12614
New Orleans, Louisiana
St. Paul the Apostle Roman Catholic Church, 25-12615
New Orleans, Louisiana
Most Holy Trinity Roman Catholic Church, 25-12616
Covington, Louisiana
St. Patrick's Roman Catholic Church, 25-12617
Port Sulphur, Louisiana
Our Lady of Divine Providence Roman Catholic Church, 25-12618
Metairie, Louisiana
St. Patrick's Roman Catholic Church, 25-12619
New Orleans, Louisiana
St. Michael the Archangel Roman Catholic Church, 25-12620
Paradis, Louisiana
Our Lady of Grace Roman Catholic Church, 25-12621
Reserve, Louisiana
St. Martin De Porres Roman Catholic Church, 25-12622
New Orleans, Louisiana
Our Lady of Lavang Roman Catholic Church, 25-12623
New Orleans, Louisiana
St. Matthew the Apostle Roman Catholic Church, 25-12624
River Ridge, Louisiana
Our Lady of Lourdes Roman Catholic Church, 25-12625
Slidell, Louisiana
St. Mary's Roman Catholic Church, 25-12626
New Orleans, Louisiana
Our Lady of Lourdes Roman Catholic Church, 25-12627
Violet, Louisiana
St. Mary Magdalen Roman Catholic Church, 25-12628
Metairie, Louisiana
Our Lady of Perpetual Help Roman Catholic Church, 25-12629
Belle Chasse, Louisiana
Our Lady of Perpetual Help Roman Catholic Church, 25-12630
Kenner, Louisiana
Our Lady of Prompt Succor Roman Catholic Church, 25-12632
Church, Chalmette, Louisiana
St. Martha Roman Catholic Church, 25-12633
Harvey, Louisiana
Our Lady of Prompt Succor Roman Catholic Church, 25-12634
Westwego, Louisiana
St. Mark Roman Catholic Church, Ama, Louisiana 25-12635
Our Lady of the Holy Rosary Roman Catholic Church, 25-12636
Hahnville, Louisiana
Our Lady of the Lake Roman Catholic Church, 25-12637
Mandeville, Louisiana
St. Maria Goretti Roman Catholic Church, 25-12638
New Orleans, Louisiana
Our Lady of the Rosary Roman Catholic Church, 25-12639
New Orleans, Louisiana
St. Margaret Mary Roman Catholic Church, 25-12640
Slidell, Louisiana
Resurrection of Our Lord Roman Catholic Church, 25-12641
New Orleans, Louisiana
St. Luke the Evangelist Roman Catholic Church, 25-12642
Slidell, Louisiana
Sacred Heart of Jesus Roman Catholic Church, 25-12644
Lacombe, Louisiana
St. Louis, King of France, Roman Catholic Church, 25-12645
Metaire, Louisiana
Sacred Heart of Jesus Roman Catholic Church, 25-12646
Norco, Louisiana
St. Katharine Drexel Roman Catholic Church, 25-12647
New Orleans, Louisiana
St. Agnes Le Thi Thanh Roman Catholic Church, 25-12650
Marrero, Louisiana
St. Josephine Bakhita Roman Catholic Church, 25-12651
New Orleans, Louisiana
St. Agnes Roman Catholic Church, 25-12652
Jefferson, Louisiana
St. Joseph's Roman Catholic Church, 25-12653
Gretna, Louisiana
St. Joseph the Worker Roman Catholic Church, 25-12654
Marrero, Louisiana
St. Andrew the Apostle Roman Catholic Church, 25-12655
New Orleans, Louisiana
St. Joseph Roman Catholic Church, Algiers, Louisiana 25-12657
St. Angela Merici Roman Catholic Church, 25-12658
Metairie, Louisiana
St. John the Baptist Roman Catholic Church, 25-12659
Folsom, Louisiana
St. Ann Roman Catholic Church and Shrine, 25-12660
Metairie, Louisiana
St. John the Baptist Roman Catholic Church, 25-12661
Edgard, Louisiana
St. John Paul II Roman Catholic Church, 25-12663
Waggaman, Louisiana
St. Anselm Roman Catholic Church, 25-12664
Madisonville, Louisiana
St. John of the Cross Roman Catholic Church, 25-12665
Lacombe, Louisiana
St. Anthony of Barataria Roman Catholic Church, 25-12667
Lafitte, Louisiana
St. Joan of Arc Roman Catholic Church, 25-12668
LaPlace, Louisiana
St. Joachim Roman Catholic Church, 25-12669
Marrero, Louisiana
St. Jerome Roman Catholic Church, 25-12670
Kenner, Louisiana
St. Anthony of Padua Roman Catholic Church, 25-12671
Luling, Louisiana
St. Jane de Chantal Roman Catholic Church, 25-12672
Abita Springs, Louisiana
St. Anthony of Padua Roman Catholic Church, 25-12673
New Orleans, Louisiana
St. Anthony Roman Catholic Church, 25-12674
Gretna, Louisiana
St. Augustine Roman Catholic Church, 25-12675
New Orleans, Louisiana
St. Genevieve Roman Catholic Church, 25-12676
Slidell, Louisiana
St. Benedict Roman Catholic Church, 25-12677
Covington, Louisiana
St. Francis Xavier Roman Catholic Church, 25-12678
Metairie, Louisiana
St. Benilde Roman Catholic Church, 25-12679
Metairie, Louisiana
St. Francis of Assisi Roman Catholic Church, 25-12680
New Orleans, Louisiana
St. Bernard Roman Catholic Church, 25-12681
St. Bernard, Louisiana
St. Edward the Confessor Roman Catholic Church, 25-12682
Metaire, Louisiana
St. Catherine of Siena Roman Catholic Church, 25-12683
Metaire, Louisiana
St. Dominic's Roman Catholic Church, 25-12684
New Orleans, Louisiana
St. Charles Borromeo Roman Catholic Church, 25-12685
Destrehan, Louisiana
St. David Roman Catholic Church, 25-12686
New Orleans, Louisiana
St. Christopher Roman Catholic Church, 25-12687
Metairie, Louisiana
St. Cletus Roman Catholic Church, 25-12688
Gretna, Louisiana
St. Clement of Rome Roman Catholic Church, 25-12689
Metairie, Louisiana
Blessed Sacrament, Inc. 25-12690
The Congregation of the Holy Trinity Roman 25-12691
Catholic Church
Epiphany, Inc. 25-12692
The Congregation of the Annunciation 25-12693
Roman Catholic Church
The Congregation of St. Cecelia 25-12694
Roman Catholic Church
Immaculate Heart of Mary, Inc. 25-12695
Incarnate Word, Inc. 25-12696
The Congregation of Saints Peter 25-12697
and Paul Roman Catholic Church
St. Theresa of the Child Jesus, Inc. 25-12698
Our Lady Of Good Harbor, Inc. 25-12699
St. Theresa of Avila, Inc. 25-12700
Our Lady of Good Counsel, Inc. 25-12701
St. Rose of Lima, Inc. 25-12702
Our Lady of Lourdes, New Orleans, Louisiana, Inc. 25-12703
St. Raymond's, Inc. 25-12704
Our Lady of the Sacred Heart, 25-12705
New Orleans, Louisiana, Inc.
St. Philip the Apostle, Inc. 25-12706
Our Lady Star of the Sea, Inc. 25-12707
St. Monica, Inc. 25-12708
St. Ann, New Orleans, Louisiana, Inc. 25-12709
St. Maurice, Inc. 25-12710
St. Bonaventure, Inc. 25-12711
St. Louise de Marillac, Inc. 25-12712
St. Frances Xavier Cabrini, Inc. 25-12713
St. Lawrence the Martyr, Inc. 25-12715
St. Julian Eymard, Inc. 25-12716
St. Francis de Salles, Inc. 25-12717
St. John the Baptist, New Orleans, Louisiana, Inc. 25-12718
St. Gabriel, Inc. 25-12719
St. John Bosco, Inc. 25-12720
St. Gertrude, Inc. 25-12721
St. James Major, Inc. 25-12723
St. Henry's, Inc. 25-12724
St. Hubert, Inc. 25-12725
Archdiocesan Spirituality Center 25-12726
Catholic Charities Archdiocese of New Orleans 25-12727
Catholic Charities Children's Day Care Center 25-12728
Catholic Charities Group Homes 25-12729
Clarion Herald Publishing Company 25-12730
Korean Catholic Community of New Orleans, Inc. 25-12731
Notre Dame Seminary 25-12732
Our Lady of Mount Carmel Latin Mass 25-12733
Community, Covington, Louisiana
Pace Greater New Orleans 25-12734
Padua House 25-12735
Philmat, Inc. 25-12736
Project Lazarus 25-12737
Roman Catholic Center of Jesus the Lord 25-12738
School Food and Nutrition Services of 25-12739
New Orleans, Inc.
Second Harvest Food Bank of Greater New 25-12740
Orleans and Acadiana
St. Jude Community Center, Inc. 25-12741
St. Michael Special School 25-12742
St. Therese Catholic Academy 25-12743
The Society for the Propagation of the Faith, 25-12744
Archdiocese of New Orleans
Business Description: The 156 additional affiliates of the
Archdiocese of New Orleans are comprised of
parish churches, schools, community
centers, and social service organizations.
These entities operate under the
Archdiocese's oversight, providing
religious services, education, and
community support programs as part of the
Catholic ministry in southeastern
Louisiana.
Chapter 11 Petition Date: November 12, 2025
Court: United States Bankruptcy Court
Eastern District of Louisiana
Judge: Hon. Meredith S Grabill
Debtors'
Bankruptcy
Counsel: Douglas S. Draper, Esq.
HELLER, DRAPER & HORN, LLC
650 Poydras Street
Suite 2500
New Orleans, LA 70130
Tel: 504-299-3300
Email: ddraper@hellerdraper.com
All Saints Roman Catholic
Church, New Orleans, Louisiana's
Estimated Assets: $100,000 to $500,000
All Saints Roman Catholic Church,
New Orleans, Louisiana's
Estimated Liabilities: $0 to $50,000
Annunciation of the Blessed
Virgin Mary Roman Catholic
Church, Bogalusa, Louisiana's
Estimated Assets: $500,000 to $1 million
Annunciation of the Blessed
Virgin Mary Roman Catholic
Church, Bogalusa, Louisiana's
Estimated Liabilities: $50,000 to $100,000
Ascension of Our Lord Roman
Catholic Church, LaPlace, Louisiana's
Estimated Assets: $1 million to $10 million
Ascension of Our Lord Roman
Catholic Church, LaPlace, Louisiana's
Estimated Liabilities: $100,000 to $500,000
The Visitation of Our Lady
Roman Catholic Church,
Marrero, Louisiana's
Estimated Assets: $1 million to $10 million
The Visitation of Our Lady
Roman Catholic Church,
Marrero, Louisiana's
Estimated Liabilities: $1 million to $10 million
Assumption of Mary Roman
Catholic Church,
Avondale, Louisiana's
Estimated Assets: $500,000 to $1 million
Assumption of Mary Roman
Catholic Church,
Avondale, Louisiana's
Estimated Liabilities: $0 to $50,000
The petitions were filed without the Debtors' list of their 20
largest unsecured creditors.
Very Rev. Patrick Carr signed the petitions as Authorized Agent for
1793 Group, Inc.
Full-text copies of five of the Debtors' petitions are available
for free on PacerMonitor at:
https://www.pacermonitor.com/view/JFXHKXI/All_Saints_Roman_Catholic_Church__laebke-25-12579__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/JPCKVFI/Annunciation_of_the_Blessed_Virgin__laebke-25-12580__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/JVCJFXA/Ascension_of_Our_Lord_Roman_Catholic__laebke-25-12581__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/RDMNW3Q/The_Visitation_of_Our_Lady_Roman__laebke-25-12582__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/YRUTA4Y/Assumption_of_Mary_Roman_Catholic__laebke-25-12583__0001.0.pdf?mcid=tGE4TAMA
Joint Administration
The Debtors have sought and received approval to have their Chapter
11 cases jointly administered with the lead case of the Roman
Catholic Church for the Archdiocese of New Orleans (Bankr. E.D. La.
Case No. 20-10846).
ARCHER INSTALLATION: Seeks Chapter 11 Bankruptcy in Nevada
----------------------------------------------------------
Archer Installation & Solutions Inc. filed for Chapter 11
bankruptcy in the District of Nevada on November 5, 2025. The
company listed liabilities between $1 million and $10 million, with
1 to 49 creditors.
About Archer Installation & Solutions Inc.
Archer Installation & Solutions Inc. provides specialized services
in transporting, installing, and integrating furniture, fixtures,
and equipment for hotels, retail spaces, and similar commercial
environments.
Archer Installation & Solutions Inc. sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-16702) on
November 5, 2025. In its petition, the Debtor reports estimated
assets between $100,001 and $1 million and estimated liabilities
between $1 million and $10 million.
Honorable Bankruptcy Judge Natalie M. Cox handles the case.
The Debtor is represented by Ryan A. Andersen, Esq. of ANDERSEN
BEEDE WEISENMILLER
ASCENSUS GROUP: S&P Rates New $350MM Second-Lien Term Loan 'CCC'
----------------------------------------------------------------
S&P Global Ratings assigned its 'CCC' issue-level rating and '6'
recovery rating to Ascensus Group Holdings Inc.'s proposed new $350
million second-lien term loan due 2033. The '6' recovery rating
indicates its expectation of negligible (0%-10%; rounded estimate:
0%) recovery for lenders in the event of a payment default.
S&P said, "In addition, S&P Global Ratings affirmed its 'B-'
issue-level rating and '3' recovery rating on the company's
proposed upsized and extended first-lien revolving credit facility
due 2030 and its extended $2.868 billion first-lien term loan due
2032. The '3' recovery rating indicates our expectation of
meaningful (50%-70%; rounded estimate: 50%) recovery for lenders in
the event of a payment default.
"Our 'B-' issuer credit rating and stable outlook on Ascensus are
unchanged.
"The proposed transaction extends all of Ascensus' first-lien debt
maturities while increasing leverage. We expect S&P Global
Ratings-adjusted leverage will rise to approximately 11.8x from
10.5x as of June 30, 2025, as well as burden the company's cash
generation by about $30 million annually due to incremental cash
interest payments associated with more costly debt.
"That said, our 'B-' issuer credit rating incorporates Ascensus'
financial-sponsor ownership, which leads to corporate
decision-making that prioritizes the interests of its controlling
owners, including the occasional debt-funded dividend. Despite the
increase in its leverage, we forecast the company will generate
free operating cash flow (FOCF) of more than $50 million in 2025
and above $110 million in 2026, with support from ongoing secular
tailwinds and the continued realization of planned cost savings. A
one-time settlement-related payment burdens cash flow metrics this
year, but we do not expect it will recur in fiscal 2026 (ending
December 31, 2026). We project Ascensus' strong performance over
the next two years will reduce its leverage to around 9x by 2026
and toward low- to mid-8x in 2027 absent any further leveraging
transactions."
Issue Ratings--Recovery Analysis
Key analytical factors
-- Ascensus' proposed debt capitalization will comprise a
revolving credit facility due 2030 (amount to be determined), a
$2.868 billion first-lien term loan due 2032, and a $350 million
second-lien term loan due 2033.
-- The issuer of the debt is Ascensus Group Holdings Inc. The
first-lien credit facilities are secured by a first-priority
interest on all of the present and after-acquired assets of the
borrowers and each of the guarantors.
-- Guarantors include wholly owned U.S. restricted subsidiaries of
the borrower, subject to exclusions. Non-U.S. subsidiaries are not
guarantors.
-- Our simulated default contemplates financial strain from high
debt service requirements, regulatory changes that impair Ascensus'
retirement and government saving solutions, a reputation-damaging
information technology security breach that results in a
significant decline in cash flows due to customer attrition, and
significant declines in both the equity and fixed-income markets.
Simulated default assumptions
-- Simulated year of default: 2027
-- EBITDA at emergence: about $279 million
-- EBITDA multiple: 6.5x
-- Gross enterprise value: about $1.8 billion
-- Revolver draw at default: 85%
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): About
$1.7 billion
-- Value split (obligors/nonobligors): 100%/0%
-- Value available to first-lien debt claims
(collateral/noncollateral): about $1.7 billion
-- Estimated first-lien debt claims: about $3.2 billion
--Recovery expectations: 50%-70% (rounded estimate: 50%)
-- Estimated second-lien debt claims: about $364 million
--Recovery expectations: 0%-10% (rounded estimate: 0%)
Note: All debt amounts at default include six months of accrued
prepetition interest.
AVALON MOBILE: Unsecureds Will Get 100% of Claims in Plan
---------------------------------------------------------
Avalon Mobile Home Park Partnership LLLP filed with the U.S.
Bankruptcy Court for the Northern District of Georgia a Disclosure
Statement to accompany Plan of Reorganization dated November 5,
2025.
The Debtor is a Georgia limited liability limited partnership that
owns and operates a 20-acre mobile home park (the "Park") located
in Jonesboro, Georgia.
The Park is approximately fifty-three years old and contains
approximately one hundred and eleven lots. The Park has generally
been profitable over the last several decades and, until 2023, was
essentially debt-free. The Debtor anticipates that it can continue
running the Park profitably after it emerges from Chapter 11.
On May 14, 2018, a man named Israel Ramirez ("Mr. Ramirez") was
shot and killed in the Park by an intruder who had sought to steal
Mr. Ramirez's pick-up truck. On October 11, 2019, Michelle Ramirez
("Ms. Ramirez"), the daughter of Mr. Ramirez, individually and as
the administratrix of the estate of Israel Ramirez, filed a
complaint against the Debtor in the State Court of Clayton County,
Georgia seeking damages stemming from Mr. Ramirez's death, thus
commencing a case captioned Michelle Ramirez, Individually and as
Administratrix of the Estate of Israel Ramirez v. Avalon Mobile
Home Partnership, (the "Ramirez Lawsuit").
On August 2, 2023, a judgment was entered against the Debtor in the
Ramirez Lawsuit in the amount of $24,825,613.85 (the "Judgment").
The Debtor appealed the Judgment, but was forced to commence this
Chapter 11 Case because it would have been unable to put up a
supersedeas bond to delay collection action on the Judgment.
Class 3 consists of Allowed General Unsecured Claims. The
Reorganized Debtor will pay all Allowed General Unsecured Claims in
Cash in full on the Effective Date or as soon thereafter as is
reasonably practicable. Class 3 is Unimpaired by the Plan. Holders
of Class 3 Claims are not entitled to vote to accept or reject the
Plan. The allowed unsecured claims total $15,000.00. This Class
will receive a distribution of 100% of their allowed claims.
Class 4 consists of Ramirez Claim. The Allowed Ramirez Claim shall
be satisfied pursuant to the terms of the Ramirez Settlement
Agreement.
Class 5 consists of Equity Interests. As of the Effective Date all
Equity Interests in the Debtor shall retain their Interests in the
Reorganized Debtor to the same extent that they held Interests in
the Debtor.
Payments to Holders of Allowed Claims shall be paid either from (a)
Cash held by the Reorganized Debtor on and after Effective Date, or
(b) proceeds generated from the Bad Faith Claim.
A full-text copy of the Disclosure Statement dated November 5, 2025
is available at https://urlcurt.com/u?l=M2EDOe from
PacerMonitor.com at no charge.
Counsel for the Debtor:
J. Robert Williamson, Esq.
J. Hayden Kepner, Jr., Esq.
SCROGGINS & WILLIAMSON, P.C.
4401 Northside Parkway, Suite 450
Atlanta, GA 30327
Tel: (404) 893-3880
Email: aray@swlawfirm.com
About Avalon Mobile Home Park Partnership
Avalon Mobile is primarily engaged in renting and leasing real
estate properties.
Avalon Mobile Home Park Partnership LLLP filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Ga. Case No. 23-60521) on Oct. 25, 2023. The petition was
signed by Kathryn C. Taylor as general partner. At the time of
filing, the Debtor estimated $1 million to $10 million in assets
and $10 million to $50 million in liabilities.
Judge Barbara Ellis-Monro presides over the case.
J. Robert Williamson, at Scroggins & Williamson, P.C., is the
Debtor's counsel.
AVANTOR INC: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Avantor, Inc.'s and Avantor Funding,
Inc.'s (collectively, Avantor) Long-Term Issuer Default Ratings
(IDRs) at 'BB+' and affirmed the senior unsecured notes at 'BB+'
with a Recovery Rating of 'RR4'. Fitch has also affirmed Avantor's
senior secured revolver and term loan B at 'BBB-', and revised the
Recovery Ratings to 'RR1' from 'RR2' following the termination of
Avantor's accounts receivable facility. In addition, Fitch has
assigned a 'BBB-'/'RR1' rating to Avantor's term loan A. The Rating
Outlook is Stable.
Avantor has experienced operational weakness and significant
management turnover in recent periods. Fitch views these factors as
credit risks but believes these they are balanced by conservative
financial policies and consistent FCF.
Fitch could revisit the Outlook if operational improvements at
Avantor do not materialize, leading to reduced confidence in
Avantor's operating fundamentals or financial policy changes.
Key Rating Drivers
Leverage Approaching Target: Fitch forecasts EBITDA leverage of
3.6x and net leverage of 3.2x by the end of 2025 following the
refinancing transaction. Fitch expects Avantor to maintain EBITDA
leverage between 3.5x and 4.0x through the rating horizon, and it
may trend below this level absent material M&A. Avantor has
consistently deleveraged since the 2017 leveraged buyout of VWR
International LLC, the 2019 IPO and roughly $4 billion in
acquisitions in 2021, via disciplined debt reduction. EBITDA
leverage declined from 5.0x at YE 2019 to 3.3x at YE 2024.
Financial Flexibility Supported by FCF: Fitch forecasts annual FCF
of $440 million to $600 million over the forecast period, with
lower FCF in 2025 due to higher transformation and restructuring
expenses. On its 3Q25 earnings call, Avantor announced a $500
million share repurchase along with Avantor Revival. As Avantor
approaches its leverage target, Fitch expects a greater proportion
of cash flow to be deployed toward internal investment and
shareholder returns. Avantor's consistent FCF generation underpins
operational flexibility and supports its credit profile.
Diversification and Revenue Base: Avantor benefits from good
diversification, non-cyclical demand for healthcare products, and
high recurring revenues. It is well-diversified across end markets
and product categories, with biopharma and healthcare representing
about 60% of sales. The advanced technologies and applied materials
end markets represent about 26% of sales, with a mix of more
cyclical end markets that benefit from highly recurring consumable
sales. Avantor generates consistent cash flow through diversified
consumables and service-focused revenues that make up roughly 85%
of sales. It has less equipment and instrumentation exposure than
competitors.
Sustained Operating Underperformance: Fitch expects Avantor's
revenue to decline 4% in 2025 and its EBITDA margin to compress by
110 bps, lagging the operating performance of its peers. Avantor
has seen revenue and profitability contraction since 2023, and
pressures stem from both macro end-market softness and
company-specific operational challenges across both segments,
including increased competitive intensity in lab solutions and raw
material shortage and equipment downtime in bioscience production.
Fitch understands that Avantor's new senior executive team has
identified the company's operational issues and is focused on
near-term remediation.
Leadership Changes, Operational Execution: Fitch believes Avantor's
product portfolio and market position are competitive and, under
normal operating conditions, should support at least market-level
growth over the longer term. However, operating results have been
weak with considerable leadership turnover. On the 3Q25 earnings
call, CEO Emmanuel Ligner introduced Avantor Revival, a
multi-pronged plan targeting operational shortcomings. Key
initiatives include evolving the go-to-market approach, investing
in manufacturing and supply chain, refocusing the portfolio on core
businesses, simplifying operating processes, and strengthening
talent and accountability.
End-Market Recovery Uncertain: Fitch expects pharma and biotech
demand to remain muted near term, with the pace and degree of
recovery uncertain. Ongoing pressure reflects reactions to policy
changes and patent expiries, constrained biotech funding, and
broader macro concerns. Research funding uncertainties persist in
academic and government markets, with potential additional
headwinds from the U.S. government shutdown in 4Q25. While
long-term industry fundamentals appear intact, these factors could
drive a structural reset. Normalized life sciences growth may
settle below historical levels.
Equalization of IDRs: Fitch has equalized the IDRs of parent
company and financial filer Avantor, Inc. and subsidiary and
borrower Avantor Funding, Inc. because the parent has no material
assets or liabilities other than the subsidiary, and there are no
material impediments to the parent accessing the assets of the
subsidiary. The credit agreements specifically permit payments to
the parent, including operating and overhead expenses, tax
payments, and funding of permitted investments, subject to
customary baskets. In addition, there is no debt to be serviced at
the parent level.
Peer Analysis
Avantor is competitively positioned in the life sciences industry,
holding leading market positions in laboratory consumables and
bioprocessing. Its revenue and EBITDA are smaller than those of its
largest competitor, Thermo Fisher Scientific Inc. (Thermo Fisher;
A-/Stable), but are comparable to or larger than other peers
including Revvity, Inc. (Revvity; BBB/Stable) and Agilent
Technologies, Inc. (Agilent; BBB+/Stable).
Thermo Fisher has a much larger scale and greater financial
flexibility than Avantor. Agilent is comparable in size to Avantor
and maintains a very conservative financial policy. Revvity is
smaller and operates with similar EBITDA leverage yet generates a
much higher EBITDA margin. The 'BBB' to 'A-' rated life sciences
peers typically have leverage sensitivities in the 2.0x-3.0x
range.
Key Assumptions
- Revenue of about $6.5 billion and Fitch-adjusted EBITDA margin of
17.1% in 2025;
- Revenue largely flat in 2026 and a return to low to
mid-single-digits growth thereafter;
- EBITDA margin compression of 110 bps in 2025 driven by pricing
pressures in lab solutions segment and under-absorption, and EBITDA
margin modestly expanding by 40 bps between 2026 and 2028, with
productivity and cost control benefits largely offset by
incremental strategic investment;
- Annual capex of $130 million-$160 million;
- No further debt reduction beyond scheduled amortization assumed,
and FCF primarily allocated to share repurchases and tuck-in M&A.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch's expectation of sustained operational weakness leading to
revenue growth durably below market and/or continued margin
contraction;
- Operating with EBITDA leverage sustained above 4.0x;
- (CFO-capex)/total debt sustained below 7.5%;
- Acquisitions without the prospect of timely debt/leverage
reduction.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Improving and maintaining an EBITDA margin durably at or above
20%;
- Fitch's expectation of EBITDA leverage sustaining below 3.5x;
- (CFO-capex)/total debt around or above 12.5%.
Liquidity and Debt Structure
Liquidity is supported by cash on hand of $252 million and no
outstanding borrowings under the $975 million first lien secured
revolving credit facility (RCF) as of Sept. 30, 2025. In October
2025, Avantor completed a refinancing that upsized and extended the
secured RCF to $1.4 billion due 2030 and included a secured EUR400
million term loan A due 2030 and a secured EUR550 million term loan
B due 2032. Proceeds were used to refinance the company's existing
accounts receivable (A/R) facility and senior secured debt, and the
A/R facility was terminated following the transaction.
The new senior secured credit facilities include financial
maintenance covenants of first lien net leverage below 3.5x and
interest coverage (EBITDA/interest) above 2.0x. Amortization and
debt maturities are manageable, with the next maturity in 2028.
Issuer Profile
Avantor, Inc. is a leading global provider of mission-critical
products and services to customers in the biopharma and healthcare,
education and government, and advanced technologies industries.
Offerings include materials and consumables, equipment and
instrumentation, and services and specialty procurement.
Summary of Financial Adjustments
Fitch did not make any material adjustments made outside the scope
of its rating criteria. Fitch made some adjustments for one-time or
non-recurring items.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Sector Forecasts Monitor
data file which aggregates key data points used in its credit
analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Avantor Funding, Inc. LT IDR BB+ Affirmed BB+
senior secured LT BBB- New Rating RR1
senior unsecured LT BB+ Affirmed RR4 BB+
senior secured LT BBB- Affirmed RR1 BBB-
Avantor, Inc. LT IDR BB+ Affirmed BB+
AVAYA HOLDINGS: Fitch Hikes LongTerm IDR to 'B-', Outlook Stable
----------------------------------------------------------------
Fitch Ratings has upgraded Avaya Holdings Corp.'s and Avaya LLC's
(collectively, Avaya) Long-Term Issuer Default Ratings (IDRs) to
'B-' from 'CCC+'. Fitch has also upgraded Avaya's first lien term
loan to 'B+' from 'B-' and the Recovery Rating to 'RR2' from 'RR3'.
The Recovery Rating upgrade primarily reflects higher assumed
going-concern EBITDA. The Rating Outlook is Stable.
The upgrade reflects Fitch's expectation that significant cost cuts
in recent years will support breakeven to positive FCF going
forward. This, in combination with a large cash balance, projected
to be about approximately $490 million at fiscal YE 2025, provides
the company with moderate financial flexibility to execute its
strategy. However, Fitch believes there is execution risk given the
intensely competitive environment in the contact center and
customer experience markets, necessitating further investment as
Avaya continues its transition to cloud-based/hybrid contact center
and customer experience offerings.
Key Rating Drivers
Improving FCF: Avaya's substantial cost restructuring has driven
positive EBITDA generation and positioned the company for
strengthening FCF performance in fiscal 2026 and beyond. While
Fitch expects Avaya to generate negative FCF in fiscal 2025 due to
an elevated interest burden, high restructuring expenses, and the
continued shift away from perpetual software license and
maintenance contracts toward cloud-based and hybrid offerings,
these impacts should diminish going forward. As restructuring and
professional fee burdens decline, Fitch expects Avaya to achieve
breakeven FCF generation in fiscal 2026 and maintain a single-digit
FCF margin over the rating horizon.
Top-Line Pressure: Fitch expects fiscal 2026 revenue to decline in
the high-single-digit to low-double-digit percentage range due to
customer attrition, primarily in the unified communications (UC)
space, planned exits from certain regions, and the continuing shift
from on-premises product solutions to subscription and cloud-based
solutions. In response to intense competition in the UC space,
Avaya is shifting its focus toward the contact center (CC) market,
where it sees greater growth opportunities. Fitch expects revenue
to remain under pressure until the company establishes a stable
customer base, primarily in the CC market and key geographic
regions. However, Avaya's meaningful base of recurring revenues,
which are typically under contract, provides some level of
stability. Avaya generated approximately 77% of total revenues from
recurring contracts in fiscal 2025.
Ongoing Cost-Savings Program: Fitch expects positive EBITDA for
fiscal 2025 and beyond due to ongoing cost optimization measures
and bottom-up reorganization. Post-restructuring, Avaya's
management focused on right-sizing the company's cost structure by
implementing 98% of its $1 billion cost savings target. Fitch
expects lower costs to support improved EBITDA generation, with
Fitch-defined EBITDA expected to be in the low 20s.
Manageable Execution Risk: Fitch believes Avaya has sufficient
operational flexibility to sustain positive EBITDA. However, this
depends on the successful development and expansion of competitive
cloud-based CC offerings, as well as Avaya's new management team's
ability to implement cost controls and achieve ongoing operating
efficiencies.
Competitive Environment: There is intense competition in the UCaaS
(Unified Communications as a Service) and CCaaS (Contact Center as
a Service) markets due to fragmentation and limited barriers to
entry. The market requires constant product innovation stemming
from ever-changing business and consumer needs. Avaya's platforms
deliver on-premises, private-cloud, hybrid, and enables a seamless
transition with hybrid cloud solutions, allowing enterprises to
migrate at their own pace while integrating with existing
on-premise infrastructure, ensuring minimal disruption to
operations. Avaya maintains its focus on top 1,500 global accounts
and move away from SMB (small- to midsize-business).
Diversified Customer Base: Avaya's revenue base is diversified in
terms of customers, geography, and industry. Avaya had
approximately 30,000 customers at the end of fiscal 2025. Retention
of large customers remained high, with net retention rate of about
90% and renewal rates of 87%. Approximately 43% of total revenue is
generated outside the U.S.
Post-Emergence Capital Structure: Avaya's 2023 restructuring
materially strengthened its balance sheet. Outstanding debt
decreased by more than 75% to approximately $810 million from
approximately $3.4 billion at the time Fitch expects Fitch-defined
leverage to be around 3.0x by the end of fiscal 2025, thereby
enhancing the financial structure. Liquidity is solid, with
available cash of about $440 million as of June 30, 2025, and
access to an undrawn $128 million ABL subject to letters of credit
outstanding and the borrowing base.
Peer Analysis
Avaya faces numerous competitors given its cloud-based,
on-premises, and hybrid solutions for CC and UC applications. While
Avaya is a large vendor in the global UC industry, it is
substantially smaller and less diversified than its primary
competitors in the enterprise market: Zoom, Cisco, and Microsoft.
RingCentral Inc. (BB+/Stable) is a peer focused on UCaaS and CCaaS
business with significant adoption by SMB customers. RingCentral is
expected to maintain a low leverage ratio—at 2.0x or below—with
its FCF margin stabilizing in the mid- to high-teens in the medium
term, supported by improving EBITDA-to-FCF conversion.
Software industry peers active in Experience Management are Quartz
AcquireCo, LLC (d/b/a Qualtrics; BB-/Stable) and Calabrio, Inc.
(B/Stable). Qualtrics specializes in niche software solutions that
provide enterprises with experience management based on data
analytics and experience significant improvement in profitability,
driven by the successful execution of cost-efficiency strategies
and normalized revenue growth levels; Fitch expects Qualtrics'
EBITDA growth to reduce the gross leverage ratio to 4.0x or lower
in the coming years.
Calabrio's offerings cover an end-to-end solution for every stage
of customer engagement, with deeper workforce/quality analytics
that integrate seamlessly with complementary systems. They also
offer AI-powered contact center solutions for workforce management
(WFM), analytics, and customer experience (CX) automation.
Calabrio's Fitch-adjusted EBITDA margins improving to the high-30s
and Fitch-adjusted leverage is expected to be about 6.0x in 2026.
Both companies, have similar scale to Avaya but demonstrate higher
revenue growth expectations, stronger margins, and better FCF
generation.
Key Assumptions
- Revenue declines in the high single-digit area in fiscal 2026,
with revenue stabilizing in fiscal 2027 as the effects of the
transition to the cloud and subscription model taper off;
- EBITDA margin around 20% in fiscal 2025, with modest improvement
thereafter as cost-saving initiatives take hold;
- Capex representing 1.7% of revenue;
- Fitch assumes the following SOFR base rates for 2025, 2026 and
2027: 4.3%, 4.0% and 3.5%.
Recovery Analysis
- The recovery analysis assumes that Avaya would be reorganized as
a going concern in bankruptcy rather than liquidated;
- Fitch has assumed a 10% administrative claim and that the $128
million secured ABL is partially drawn;
- In estimating a distressed enterprise value (EV) for Avaya, Fitch
contemplates a scenario in which default may be caused by continued
secular pressure in premise-based offerings, and setbacks in its
subscription and cloud-based products arising from heightened
competitive pressures. Under this scenario, revenue decreases to
$1.1 billion and Avaya's EBITDA margin stabilizes at approximately
14%, resulting in $155 million of going concern EBITDA;
- Fitch increased its going-concern EBITDA estimate for Avaya
relative to the previous review, reflecting successful cost savings
execution that should support higher sustainable EBITDA
generation;
- Fitch assumes that Avaya will receive a going-concern recovery
multiple of 5.5x. The estimate considers several factors, including
the recurring nature of Avaya's revenue, favorable customer
retention and the competitive dynamics within the industry.
The enterprise valuation multiple is supported by:
- The median reorganization enterprise value/EBITDA multiple for
the 71 TMT bankruptcy cases that had sufficient information for an
exit multiple estimate to be calculated was 5.9x. Of these
companies, five were in the software sector: Allen Systems Group,
Inc (8.4x); Avaya, Inc. (2023: 7.5x, 2017: 8.1x); Aspect Software
Parent, Inc. (5.5x), Sungard Availability Services Capital, Inc.
(4.6x), and Riverbed Technology Software (8.3x);
Fitch estimates a distressed enterprise valuation, net of
administrative fees, of $767 million. After covering ABL claims,
the remaining value is allocated to Avaya's first lien secured term
loan, resulting in 'B+'/'RR2' ratings on the loan.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch's expectation of a trend toward sustained negative FCF in
the rating horizon;
- (CFO-capex)/ debt ratio sustaining below 0%;
- EBITDA interest coverage sustained below 1.5x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Revenue growth sustains near low- to mid-single digits, with
Fitch-adjusted EBITDA margin in low-to-mid 20s;
- (CFO-capex)/debt ratio sustaining above 2.5%;
- EBITDA interest coverage above 2.0x on a sustained basis;
- Fitch-adjusted EBITDA leverage sustaining below 7.0x.
Liquidity and Debt Structure
As of June 30, 2025, Avaya's liquidity was adequate, supported by
approximately $438 million cash on the balance sheet. Liquidity is
also supported by an undrawn $128 million ABL facility.
As of the end of June 2025, Avaya's debt consists of an outstanding
$837 million term loan maturing in 2028 and an undrawn ABL loan of
approximately $128. Avaya prepaid $25 million of the term loan in
the quarter ending September 2024. For the term loan, Avaya had the
option to pay part of the interest in kind (PIK) from the closing
date until June 2024, with an interest rate of S+150 payable in
cash plus 700 basis points PIK. The company utilized the PIK option
for the first year, and the debt transitioned to cash pay (S+750)
effective 2Q24.
Issuer Profile
Avaya LLC provides digital communications products, solutions and
services, including contact center and unified communications and
collaboration products and services.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Sector Forecasts Monitor
data file which aggregates key data points used in its credit
analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Avaya LLC LT IDR B- Upgrade CCC+
senior secured LT B+ Upgrade RR2 B-
Avaya Holdings Corp. LT IDR B- Upgrade CCC+
AYR WELLNESS: Prepares CCAA Filing After Core Asset Sale
--------------------------------------------------------
AYR Wellness Inc. together with its affiliates and subsidiaries, a
leading vertically integrated U.S. multi-state cannabis operator,
announced that the public foreclosure auction contemplated by the
Restructuring Support Agreement dated July 30, 2025, resulted in
the credit bid submitted by the Company's senior noteholders being
deemed the successful bid to acquire ownership through a newly
formed acquisition vehicle of certain collateral assets and equity
interests of specified subsidiaries in Florida, New Jersey, Nevada,
Ohio, Massachusetts, Pennsylvania and Virginia, which collectively
represent the core operations of the Company.
Scott Davido, interim Chief Executive Officer of AYR, said, "The
completion of the public auction and winning bid by AYR's Senior
Noteholders successfully brings AYR over one of the largest
remaining milestones in our restructuring process."
As further contemplated by the RSA, in the coming days the Company
expects to:
(i) sign a Master Purchase Agreement, to formally begin the process
seeking all the necessary regulatory approvals to transfer
ownership of the Assets to NewCo, and
(ii) commence proceedings under the Companies' Creditors
Arrangement Act in British Columbia to facilitate a
court-supervised winding-down of the existing AYR corporate parent
entity.
Odyssey Trust Company, in its capacity as collateral trustee for
the Company's Senior Noteholders, conducted the Sale in accordance
with Article 9 of the Uniform Commercial Code, at the direction of
Senior Noteholders holding a majority of the outstanding senior
notes. The auction for the Sale was held on November 10, 2025, at
10.00 a.m. (Eastern Time) virtually via Zoom.
"With clarity on who will be the go-forward owners of AYR's core
Assets, the Company will continue operating the core Assets in the
ordinary course subject to the terms of the MPA while
simultaneously seeking all the necessary regulatory approvals to
transfer of the Assets and licenses to NewCo and continuing the
process of winding down the existing AYR corporate parent entity
and non-core assets and certain subsidiaries. Throughout this
entire process, we will continue to deliver the same high quality
products and services to our customers and continue a process of
strategically growing our footprint and enhancing our offerings,"
said Davido.
About AYR Wellness Inc.
AYR Wellness is a vertically integrated U.S. multi-state cannabis
operator with over 90 licensed retail locations across Florida,
Pennsylvania, New Jersey, Ohio, Nevada, and Virginia. The Company
cultivates, manufactures, and retails a broad portfolio of
high-quality cannabis products, supporting both medical patients
and adult-use consumers. AYR also offers a growing suite of CPG
brands -- including Kynd, Haze, and Later Days--designed to meet a
wide range of consumer needs across its markets.
BANNING, CA:S&P Places 'B+' Revenue Bonds Rating on Watch Negative
------------------------------------------------------------------
S&P Global Ratings placed its 'B+' underlying rating (SPUR) on the
Banning Financing Authority, Calif.'s outstanding electric system
revenue bonds, issued on behalf of the city of Banning, on
CreditWatch with negative implications.
S&P said, "The CreditWatch placement reflects our view of
deteriorating information quality evidenced by the inability to
produce the finalized June 30, 2024, audit, a lack of clarity on
fiscal 2025 financial results, and a potential rate covenant
violation.
"In our opinion, the utility's combined weak risk management and
financial reporting have contributed to our negative rating actions
and, in our view, led to its structural imbalance, which is not
anticipated to improve until fiscal 2028. Although management has
initiated several credit-supportive strategies to enhance revenue
collections and improve financial metrics, we believe a sustained
financial improvement hinges on management committing to review,
implement, and update these strategies and long-term plans, and
hiring key personnel while decreasing turnover.
"In our view, rate affordability risks are elevated for the
electric system. Although system rates, measured on a
weighted-average basis by customer class, are below the state
average (2023), suggesting solid competitiveness, significant
annual residential rate increases are likely during the next five
years. This will likely erode affordability, especially considering
below-average economic metrics. Moreover, current relative electric
rate competitiveness reflects the state's investor-owned utilities'
recent substantial rate increases, indicating that competitiveness
and affordability are not synonymous.
"We recognize that residents' median household effective buying
income (MHHEBI) as a percentage of the U.S. average is depressed at
78% and the city has an elevated poverty rate of 19%. As management
increases base rates in the near term and uses its power cost
adjustment factor (PCAF) monthly to address liquidity challenges,
we believe affordability could worsen. This is because we expect
rate competitiveness will deteriorate somewhat--especially given
delinquencies are currently elevated and with anticipated softening
of the economy in 2026.
"We believe the utility faces acute physical risks related to
wildfires, since the city maintains 11 miles of overhead
distribution lines in tier 2 and 3 zones and 3% of the system's
customers are within these zones. The utility has undertaken
measures to reduce wildfire risk and will continue to de-energize
circuits for operational reasons at the request of police and fire
personnel as a form of risk management."
Environmental, social, and governance (ESG) credit factors for this
change in credit rating/outlook and/or CreditWatch status:
-- Transparency and reporting
-- Risk management, culture, and oversight
S&P said, "The CreditWatch indicates there is at least a one-in-two
chance we could withdraw our rating due to a lack of what we view
as timely and reliable information. Should Banning fail to produce
its finalized fiscal 2024 audit as well as what we view as
sufficient information regarding its potential rate covenant
violation, a potential cure, and additional clarity around fiscal
2025 financial results, we will withdraw our rating."
BARROW SHAVER: To Sell Natural Gas Business to TexOil Investments
-----------------------------------------------------------------
Barrow Shaver Resources Company LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas, Houston
Division, to sell substantially all Assets, free and clear of
liens, claims, interests, and encumbrances.
The Debtor seeks approval of the Sale to TexOil Investments, LLC
in exchange for a total purchase price of $60,000,010 plus the
assumption of material plugging and abandonment liabilities.
The Debtor's goal throughout the Bankruptcy Case has been to pursue
a "value-maximizing" transaction. The Debtor is happy to report
that the Sale to TexOil maximizes recoveries available to
creditors, lays the groundwork for confirmation of a chapter 11
plan, and further establishes a framework for the resolution of a
substantial majority of the disputes that have hindered the Debtor.
The result is the product of a nearly yearlong campaign, on the
part of the Debtor—under the direction of the Debtor’s Chief
Restructuring Officer, James Katchadurian—to market the Debtor's
assets, explore the market to establish the basis for a
transaction, and to foster competitive tension to support an
auction process.
On November 10, 2025, such efforts culminated with an auction held
in accordance with the Court's Bidding Procedures Order and the
Bidding Procedures. Such Auction was held at the Houston office of
Jones Walker LLP. Three separate Qualified Bidders— TexOil, NETX
Energy, LLC, and PWI Group, LLC —participated in
the Auction. After a nearly ten hour Auction, TexOil prevailed as
the Winning Bidder with a Winning Bid of $60,000,010 plus the
assumption of material plugging and abandonment liabilities.
The Debtor was formed in mid-1989 with Scott O. Shaver and Thomas
D. Barrow as the original owners and is an independent oil and
natural gas company focused on the exploration, development,
production, and acquisition of crude oil and natural gas from
properties in the Southeast Texas, East Texas, and West Texas. The
Debtor's headquarters is located in Tyler, Texas.
The Debtor’s main operational focus has been on a largely
contiguous block of approximately 150 leaseholds, with
approximately 43,500 gross acres in East Texas. As part of its
operations, since approximately 2017, the Debtor has been the
lessee and operator under certain oil and gas leases pertaining to
oil and gas operations in the Hidden Rock Field in and around Cass
County, Texas. Additionally, the Debtor has operator and
non-operator ownership interests in oil and gas leases in East and
West Texas, other than the Hidden Rock Field.
As the Debtor continued to expand operations in the Hidden Rock
Field, the Debtor faced two significant challenges that heavily
contributed to the financial distress the Debtor experienced
leading up to the Bankruptcy Case.
Under the mounting financial pressure, the Debtor was forced to
consider selling'part of its operations or bringing in a strategic
partner to help fund the Debtor’s operations while simultaneously
combatting the NETX Parties’ attempt to encroach on the Debtor's
leases.
On June 9, 2025, the Debtor filed the Bidding Procedures Motion.
The Bidding Procedures, among other things, formalized the
structure for a potential sale transaction that allowed the Debtor
to proceed with marketing the Assets and engaging with potential
bidders, while maintaining optionality for the ultimate transaction
that the Debtor could consummate.
The Debtor continued to negotiate the terms of potential asset
purchase agreements with interested parties as the Debtor became
closer to designating one of the interested parties as a "Lead
Bidder". However, as the Debtor continued to work to finalize terms
with the interested party, the Debtor’s CRO and its professionals
met with TexOil and were able to resolve a number of business
issues—thereby allowing the Debtor, in its business judgment, to
designate TexOil as the Lead Bidder.
On October 29, 2025, the Debtor filed the Notice of Selection of
Lead Bid that attached the letter dated November 4, 2025,
summarizing the terms of the TexOil proposal notifying parties that
the Debtor selected the TexOil bid as the Lead Bid and provided
material terms contained in the Bid Letter.
The TexOil Lead Bid was an offer to purchase Lots 1, 2, and 3 for a
total purchase price of $45,659,280, and the TexOil Asset Purchase
Agreement (APA) used the Form APAs as the starting point for their
negotiations. Importantly, the breakdown of the purchase price
allocation was as follows:
- Lot 1: $20,000,000
- Lot 2: $25,659,270, allocated as follows:
i. WI: $24,348,700;
ii. Non-Insider ORRI: $477,620;
iii. Insider ORRI: $832,950; and
- Lot 3 $10.00.
The Debtor further identified NETX as the Backup Bidder.
Of the legitimately interested parties, TexOil's Winning Bid was
significantly value-enhancing because it based the TexOil APAs.
Consequently, TexOil's negotiations were streamlined and
productive.
The Debtor believes that the Auction with TexOil as the Lead Bidder
and Baseline Bid was in the best interest of the Debtor and the
estate, as it was an opportunity for all parties to appreciate the
value of the Form APAs in being able to consummate a sale
transaction.
About Barrow Shaver Resources Company
Barrow Shaver Resources Company, LLC is a privately held,
independent oil and gas exploration and acquisition company based
in Tyler, Texas. Barrow Shaver is engaged in prospect generation,
producing properties acquisition, lease acquisition, assembly and
marketing of prospects for the exploration and development of oil
and natural gas in the prolific producing trends of the East Texas
and West Texas Basins.
Barrow Shaver Resources Company sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-33353) on
Aug. 19, 2024. In the petition signed by James Katchadurian, chief
restructuring officer, the Debtor disclosed up to $100 million in
both assets and liabilities.
Judge Alfredo R. Perez oversees the case.
The Debtor tapped Jones Walker LLP as counsel, CR3 Partners, LLC as
financial advisor, and Kroll Restructuring Administration, LLC as
claims, noticing, and solicitation agent.
BEAZER HOMES: S&P Downgrades ICR to 'B', Alters Outlook to Stable
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on
Atlanta-based Beazer Homes USA Inc. (BZH) to 'B' from 'B+' and
revised the outlook to stable from negative. At the same time, S&P
lowered the issue-level rating on the company's senior unsecured
notes to 'B'. The recovery rating of '3' remains the same.
S&P said, "The stable outlook reflects our expectation that the
company's S&P Global Ratings-adjusted debt to EBITDA over the next
12 months will trend back toward 5x-6x while it maintains an
adequate liquidity position and EBITDA to interest coverage of
2x-3x.
"BZH leverage remains higher than we previously forecasted amid
prolonged weak and uncertain macroeconomic dynamics, resulting in
debt to EBITDA well above our 4x downgrade threshold.
"We expect BZH's S&P Global Ratings-adjusted leverage will be above
our downgrade threshold at fiscal year-end 2025 and improve toward
5x-6x for fiscal 2026. These leverage metrics provide it with a
modest cushion at the current rating level. The downgrade reflects
the current state of its leverage and the longer duration toward
deleveraging amid longer-than-anticipated macroeconomic headwinds.
We forecast the company will improve its fiscal 2026 EBITDA toward
approximately $200 million from our expectation of about $160
million in 2025, resulting in debt to EBITDA of roughly 5x by Sept.
30, 2026. If the company is unable to deleverage from its elevated
position, we believe it still has some headroom against our current
downside threshold of exceeding 7x.
"We believe BZH will maintain a prudent financial policy, utilizing
internally generated cash and existing lines of credit to fund its
organic growth, acquisitions, and shareholder distributions. Our
base-case scenario incorporates some share repurchases over the
next 12 months of $15 million-$25 million in with no additional
material acquisitions. As such, the company's liquidity position
will remain adequate amid its period of community count expansion.
BZH has no material debt maturities until October 2027, and we
assume it will be able to refinance the senior unsecured notes.
"We forecast BZH's annual absorption rate will increase toward 2.5
sales per community per month in 2026 from approximately 2.0 in
2025. The decreased sales pace in 2025 is a result of overall
affordability challenges amid the higher interest rate environment,
timing of community count openings, and general competition in its
key markets. We believe the company's growth in annual average
community count to approximately 164 in 2025 and expectation of
mid-single digit growth in 2026 amid a slower demand environment
from 144 in 2024, provides it with opportunity for EBTIDA growth
and deleveraging over the next twelve months. However, as we look
to fiscal 2026, we think macroeconomic headwinds (e.g., slower job
growth, higher mortgage rates, etc.), along with decreased
profitability margins, will continue to weigh on its activity
levels, as well as other homebuilders across our rated universe. As
gross margins remain pressured due to increased incentives,
offloading of speculative inventory, and elevated selling, general,
and administrative expenses due to the community count growth, we
forecast BZH's EBITDA margins will remain below 10% and more toward
7% through 2026.
"Offsetting this pressure is the aforementioned continued growth in
community count paired with a slight increase in absorption rates.
We expect EBITDA to rise by over 25% in the coming year to $200
million. We believe sales concessions can help limit order
cancellations and spur much slower overall home demand. Ultimately,
our forecasted EBITDA is still well below our prior forecasts. We
project the company will continue to focus on returns from
previously invested capital and continue its trend of reinvestment
to further bolster is land assets.
"We believe BZH's capital structure and liquidity position allows
it to focus on operational execution. The company recently improved
its liquidity position by raising the amount of its senior
unsecured revolving credit facility to $365 million from $300
million. Additionally, we deem its capital structure and staggered,
longer-dated maturities as beneficial to its credit quality--the
nearest maturity is October 2027. Because the company has financial
flexibility and no near-term need to refinance, we believe its
emphasis will be strictly on operational execution against guidance
over the next six to 12 months.
"The stable outlook reflects our expectation that over the next 12
months, BZH's S&P Global Ratings-adjusted debt to EBITDA will trend
back toward 5x-6x while it maintains an adequate liquidity position
and EBITDA to interest coverage of 2x-3x."
S&P could lower the rating over the next 12 months if:
-- Its S&P Global Ratings-adjusted leverage exceeds 7x. This could
occur if operating performance is worse than S&P's expectations
such that EBITDA declines to below $150 million; or
-- S&P reassess the company's liquidity position to less than
adequate or interest coverage ratios weaken to below 2x on a
sustained basis.
S&P could take a positive rating action over the next 12 months
if:
-- Home closing volumes and relatively steady demand outpace our
forecast, leading to EBITDA growth that sustainably decreases
leverage toward 4x, or
-- BZH exceeds our growth expectations such that its size, scale,
and profitability is more in line with 'B+' rated peers on an
extended basis.
BELLAVIVA AT WHISPERING: To Sell Leesburg Property to Sun Terra
---------------------------------------------------------------
Bellaviva at Whispering Hills, LLC, seeks permission from the U.S.
Bankruptcy Court for the Middle District of Florida, to sell
substantially all Assets, free and clear of liens, claims,
interests, and encumbrances.
The Debtor's business is that of a "Single Asset Real Estate"
holding company.
The Debtor's primary asset is undeveloped real property consisting
of approximately 1,400 acres generally located east of U.S. 27 and
also along Number Two Road in the Leesburg area of Lake County,
Florida.
The Debtor's business plan was to undertake a multi-phase
development of the Real Property that would include residential and
commercial uses.
The Debtor executed a Promissory Note in favor of, and entered into
a Loan Agreement with, Legion Capital Corporation for the principal
sum of $16,000,000 in order to acquire the Real Property.
On October 6, 2023, Legion initiated a foreclose action against the
Debtor, which was filed in the Circuit Court of the Fifth Judicial
Circuit of Florida.
While the Foreclosure Action was still ongoing and despite being
presented with the prospect of full payment via the Purchase and
Sale Agreement (PSA), Legion would not consent to a sale of the
Real Property.
Beginning in June 2024, the Debtor initiated a broad marketing and
solicitation effort to sell the Real Property.
(i) Formal engagement with New York City-based Kismet Kapital, who
did a large-scale and industry-focused mailing;
(ii) The Debtor's principal utilized his extensive professional
network throughout Florida and reached out directly to those
contacts; and
(iii) Through industry word of mouth, numerous brokers from across
the U.S. contacted the Debtor seeking information.
Over the course of several months, the Debtor had discussions with
many interested parties to provide further detail, answer specific
questions, and/or fulfill data requests relating to the Real
Property.
Between May and September 2025, the Debtor's tireless efforts paid
off and resulted in the receipt of multiple letters of intent
(LOI), some of which were subsequently increased because of ongoing
negotiations with the Debtor.
The Debtor carefully evaluated the LOI's and in an exercise of
sound and reasonable business judgment, determined that the
proposal from Sun Terra Communities V, LLC would provide the best
outcome for all interested parties.
Sun Terra, formed in 2009, is a highly experienced real estate
development and investment team that specializes in the Florida
marketplace. Since inception, Sun Terra has closed well over $500
million in real estate transactions. The management team leading
Sun Terra has over 70 years of real estate experience.
Sun Terra is funded by JEN Partners, LLC, a New York based private
equity firm, whose primary investment platform is residential
development real estate. JEN Partners has raised capital and
managed eight funds with capital exceeding $8 billion dollars,
investing in many United States markets. Sun Terra is the Florida
partner for JEN Partners and that relationship has existed for over
16 years.
After extensive arms-length and good faith negotiations, the Debtor
and Sun Terra entered into that certain Real Estate Purchase and
Sale Agreement dated September 30, 2025.
Pursuant to the continued interest, JEN Partners and Sun Terra
formed an affiliate, JEN Florida 57, LLC, to acquire and develop
the Real Property.
Via Assignment dated November 6, 2025, Sun Terra assigned its
rights and obligations under the PSA to JEN Florida.
The Debtor seeks an order authorizing and approving the sale of the
Real Property to the Sun Terra Buyer in accordance with the Sale
Documents, free and clear of the Encumbrances, with such
Encumbrances, if any, to attach to the proceeds of such sale, but
subject to any rights and defenses that the Debtor may have with
respect thereto.
The procedures used in selling estate assets are subject to the
debtor’s business judgment, which is entitled to substantial
deference, as long as the debtor articulates an adequate business
justification.
The Debtor expended substantial time and resources marketing the
Real Property, culminating in the proposed sale to the Sun Terra
Buyer that will provide full payment to all creditors.
The Debtor undertook a diligent and good faith pre-petition sale
process, which can only be viewed as a resounding success based on
the proposed Sun Terra Buyer transaction.
The Purchase Price of $62,000,000 is more than double the Debtor's
total listed liabilities of $24,101,193.85 and not subject to any
financing or other borrowing-related contingency.
Even if Legion prevails and ends up with an allowed secured claim
in excess of $30,000,000, as asserted in the UCC Sale Notice, the
Real Property sale proceeds would still provide full payment to
Legion and all other creditors.
About Bellaviva at Whispering Hills LLC
Bellaviva at Whispering Hills LLC, based in Orlando, Florida,
develops and manages residential real estate, focusing on the
Whispering Hills subdivision in Lake County. The Company is a
single-asset real estate entity whose activities are concentrated
on designing, building, and promoting residential properties in
this development.
Bellaviva at Whispering Hills LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-06655) on
October 16, 2025. In its petition, the Debtor reports estimated
assets between $50 million and $100 million and estimated
liabilities between $10 million and $50 million.
The Debtor is represented by Stewart J. Subjinski, Esq. of LIPPES
ATHIAS, LLP.
BLEND COFFEE 1: Michael Markham Named Subchapter V Trustee
----------------------------------------------------------
The Acting U.S. Trustee for Region 21 appointed Michael Markham,
Esq., as Subchapter V trustee for The Blend Coffee 1 LLC and
affiliates.
Mr. Markham, a partner at Johnson Pope Bokor Ruppel & Burns, LLP,
will be paid an hourly fee of $350 for his services as Subchapter V
trustee and will be reimbursed for work-related expenses incurred.
Mr. Markham declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael C. Markham, Esq.
Johnson Pope Bokor Ruppel & Burns, LLP
401 E. Jackson Street, Suite 3100
Tampa, FL 33602
Phone: (727) 480-5118
Mikem@jpfirm.com
About The Blend Coffee 1 LLC
The Blend Coffee group comprises multiple affiliated limited
liability companies under common ownership and control that operate
coffeehouse and cocktail venues in St. Petersburg, Florida. The
group provides espresso-based beverages, coffee flights, and mixed
drinks across several locations. It functions as an integrated
hospitality business with shared financial, administrative, and
operational systems.
The Blend Coffee 1, LLC and its affiliates filed petitions under
Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla.
Lead Case No. 25-08269) on November 4, 2025. At the time of the
filing, Blend Coffee 1 listed up to $50,000 in assets and between
$500,000 and $1 million in liabilities.
Judge Roberta A. Colton presides over the cases.
Amy Denton Mayer, Esq., at Berger Singerman, LLP represents the
Debtors as legal counsel.
BLONDER TONGUE: May 5 Governmental Claims Bar Deadline
------------------------------------------------------
On November 6, 2025, Blonder Tongue Laboratories Inc. voluntarily
filed for Chapter 11 bankruptcy in the District of New Jersey.
According to court filings, the company's liabilities each range
from $1 million to $10 million, with 100 to 199 creditors listed.
The deadline for fling of government claims is on May 5, 2026.
About Blonder Tongue Laboratories Inc.
Blonder Tongue Laboratories Inc. develops and produces advanced
signal-processing and media-distribution solutions serving TV
broadcasters, cable companies, hotel video services, internet
networks, and institutional clients.
Blonder Tongue Laboratories Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-21863) on
November 6, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Christine M. Gravelle handles the
case.
The Debtor is represented by Donald W. Clarke, Esq. of Genova Burns
LLC.
BRENMARK INC: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Two affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Brenmark, Inc. 25-36766
Landmark Furniture
Mattresses For Less
5900 North Freeway
Houston, TX 77076
Taylors Fine Furniture & Mattress LLC 25-36767
Landmark Furniture
Mattresses For Less
5900 North Freeway
Houston, TX 77076
Business Description: Brenmark, Inc. and Taylors Fine Furniture &
Mattress LLC manufacture and sell household
furniture, including bedroom sets, futons,
daybeds and mattresses. They operate retail
locations and distribution facilities in
Texas under the names Mattresses for Less
and Landmark Furniture, serving residential
customers through their stores and wholesale
channels.
Chapter 11 Petition Date: November 9, 2025
Court: United States Bankruptcy Court
Southern District of Texas
Judge: Hon. Jeffrey P Norman
Debtors'
Bankruptcy
Counsel: David Curry, Esq.
OKIN ADAMS BARTLETT CURRY LLP
1113 Vine Street, Suite 240
Houston TX 77002
Email: dcurry@okinadams.com
Each Debtor's
Estimated Assets: $1 million to $10 million
Each Debtor's
Estimated Liabilities: $1 million to $10 million
The petitions were signed by Brad Taylor as president of Brenmark,
Inc. and manager of Taylors Fine Furniture.
The Debtors failed to attach lists of their 20 largest unsecured
creditors to the petition.
Full-text copies of the petitions are available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/P7WD7OI/Brenmark_Inc__txsbke-25-36766__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/MFLGZDA/Taylors_Fine_Furniture__Mattress__txsbke-25-36767__0001.0.pdf?mcid=tGE4TAMA
BUILDING COMPANY: Timothy Stone Named Subchapter V Trustee
----------------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Timothy Stone of
Newpoint Advisors Corporation as Subchapter V trustee for Building
Company Number 7, Inc.
Mr. Stone will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Stone declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Timothy Stone
Newpoint Advisors Corporation
750 Old Hickory Blvd, Building Two, Suite 150
Brentwood, TN 37027
Phone: 800-306-1250/615-440-8273
Fax: (702) 543-3881
Email: tstone@newpointadvisors.us
About Building Company Number 7 Inc.
Building Company Number 7, Inc. is a general contracting company
based in Nashville, Tennessee. It provides residential construction
services, including custom homes, remodels, historic renovations,
and home additions, serving neighborhoods such as Belle Meade, Oak
Hill, West Meade, and Germantown.
Building Company Number 7 filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Tenn. Case No.
25-04589) on October 30, 2025, with $350,263 in assets and
$2,278,836 in liabilities. Matt Millsap, president of Building
Company Number 7, signed the petition.
Judge Randal S. Mashburn presides over the case.
Griffin S. Dunham, Esq., at Dunham Hildebrand Payne Waldron, PLLC
represents the Debtor as legal counsel.
BUILT LLC: Case Summary & 10 Unsecured Creditors
------------------------------------------------
Debtor: Built, LLC
602 N. Newport Ave.
Tampa, FL 33606
Business Description: Built LLC, founded in 2013 and based in
Tampa, Florida, provides custom cabinetry,
furniture, and architectural millwork for
residential and commercial clients. The
Company collaborates with interior
designers, builders, and homeowners to
provide design and fabrication services,
with a focus on craftsmanship and attention
to detail. Built operates as a small team
delivering tailored design and construction
solutions across the Tampa region.
Chapter 11 Petition Date: November 10, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-08415
Judge: Hon. Catherine Peek McEwen
Debtor's Counsel: Buddy D. Ford, Esq.
FORD & SEMACH, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Tel: (813) 877-4669
Fax: (813) 877-5543
Email: All@tampaesq.com
Total Assets: $348,465
Total Liabilities: $1,785,505
The petition was signed by Andrew Watson as manager.
A full-text copy of the petition, which includes a list of the
Debtor's 10 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/OXGYVXI/Built_LLC__flmbke-25-08415__0001.0.pdf?mcid=tGE4TAMA
CARPENTER TECHNOLOGY: Moody's Rates New $700MM Unsec. Notes 'Ba2'
-----------------------------------------------------------------
Moody's Ratings assigned a Ba2 rating to Carpenter Technology
Corporation's (Carpenter) proposed $700 million senior unsecured
notes due 2034. The company plans to use the proceeds along with a
portion of its cash balance to fund the repayment of its $400
million senior unsecured notes due 2028 and $300 million senior
unsecured notes due 2030 and to cover call premiums and fees and
expenses. The company also plans to amend and restate its existing
revolving credit facility to make it an unsecured facility, upsize
it to $500 million from $350 million and extend the maturity to
2030. The Ba2 rating on the new unsecured notes assumes the company
will succeed in establishing an unsecured revolver, which will
bring the notes rating in line with the Ba2 corporate family rating
reflecting all unsecured debt in its capital structure. The
unsecured notes rating will revert to Ba3 if the revolver remains a
secured facility. This refinancing will result in moderately lower
interest costs and will extend the company's debt maturities.
Carpenter's Ba2 Corporate Family Rating (CFR), Ba2-PD Probability
of Default Rating (PDR), Ba3 rating on the existing senior
unsecured notes, its Speculative Grade Liquidity Rating (SGL) of
SGL-1 and its positive ratings outlook remain unchanged. The
ratings on the existing senior unsecured notes will be withdrawn
upon redemption.
Governance considerations were a key driver of this rating action
related to the company's decision to move to all unsecured debt in
its capital structure.
RATINGS RATIONALE
Carpenter's Ba2 Corporate Family Rating incorporates Moody's
expectations for improved operating results over the next 12 to 18
months, which will keep its credit metrics strong for the rating.
Carpenter's rating is supported by its position in the specialty
metals markets as a producer of high strength, high temperature and
corrosion resistant alloys. The company's technological
capabilities enable it to produce specialty alloys and titanium
products for demanding end use applications in the aerospace,
defense, medical, transportation, energy, industrial and consumer
sectors. These attributes position the company to achieve a
materially improved operating performance as demand from these
markets remains strong. The rating also incorporates its very good
liquidity profile which enables it to navigate periods of weakness
in the aerospace sector and investments in working capital as
business continues to improve. Carpenter's rating also reflects its
reliance on the aerospace and defense sector and the historical
volatility of its operating performance and credit metrics which
tend to track the aerospace cycle. It also incorporates the risk of
continued production issues at The Boeing Company (Baa3 negative)
and potentially lower demand if worldwide economic growth weakens.
Carpenter's operating performance is expected to materially
strengthen for the fifth consecutive year in fiscal 2026 (ends June
2026) due to strength in the aerospace and defense end market,
which accounts for more than 60% of its net sales. The company will
also continue to benefit from improved productivity, product mix
optimization and strategic pricing actions. As a result, the
company is expected to materially exceed the $683 million record
high adjusted EBITDA generated in fiscal 2025. Carpenter is
expected to generate solid free cash flow as earnings grow and
investments in working capital moderate. These investments consumed
around $475 million in fiscal years 2022-2025. Moody's anticipates
the company will use this free cash to fund its annual dividend and
to repurchase stock.
Carpenter's credit metrics are expected to continue to strengthen
in the near term along with the company's operating performance. If
the company can generate adjusted EBITDA of around $750 million,
then its leverage ratio (debt/EBITDA) will decline to around 1.2x
and its interest coverage (EBITDA/Interest) will rise to about
11.5x as of June 2026. These metrics will be strong for the rating
and could lead to an upgrade if they are likely to be sustained.
Carpenter's Speculative Grade Liquidity rating of SGL-1 reflects
its very good liquidity profile. The company had $208 million of
cash and $348.9 million of borrowing availability on its $350
million secured revolving credit facility which had no borrowings
outstanding and $1.1 million of letters of credit issued as of
October 2025. The company is in the process of restating and
amending its revolving credit facility to make it an unsecured
facility, upsize it to $500 million from $350 million and extend
the maturity to 2030.
Carpenter's new $700 million senior unsecured notes are rated Ba2,
which is in line with the Corporate Family Rating since its entire
capital structure will consist of unsecured debt including its new
$500 million unsecured revolving credit facility.
The positive outlook incorporates Moody's expectations that
Carpenter's operating performance and credit metrics will
strengthen over the next 12 to 18 months and its credit metrics
will remain strong for its rating.
A comprehensive review of all credit ratings for the respective
issuer(s) has been conducted during a rating committee.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Carpenter's rating could be upgraded if the company sustains a
track record of higher profitability and maintains financial
policies commensurate with a higher rating, and it sustains
EBITDA/interest above 7.5x, debt/EBITDA below 2.5x and retained
cash flow of more than 30% of net debt.
Downward rating pressure could materialize if Carpenter sustains
EBITDA/interest below 5.0x, debt/EBITDA above 3.5x and retained
cash flow below 20% of outstanding debt. The rating could also be
downgraded if the company's liquidity position materially
deteriorates.
The principal methodology used in this rating was Aerospace and
Defense published in July 2025.
Carpenter's corporate family rating of Ba2 is three notches below
the scorecard-indicated outcome of Baa2 reflecting the company's
moderate scale versus higher rated companies and its reliance on
the highly cyclical aerospace and defense sector.
Carpenter Technology Corporation, headquartered in Philadelphia,
PA, is a producer and distributor of specialty materials, including
stainless steel, titanium alloys and specialty alloys for the
aerospace, defense, medical, transportation, energy, industrial,
and consumer sectors. The company also provides metal powder
solutions and has additive manufacturing capabilities. It operates
through two business segments: Specialty Alloys Operations (SAO)
and Performance Engineered Products (PEP), with the SAO segment
contributing about 95% of fiscal 2025 revenues. Revenues for the
twelve months ended September 30, 2025, were $2.89 billion.
CARPENTER TECHNOLOGY: S&P Rates New $700MM Unsecured Notes 'BB+'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '3'
recovery rating to Carpenter Technology Corp.'s proposed $700
million senior unsecured notes due 2034.
The company will use the proceeds to repay all its existing 6.375%
senior unsecured notes due 2028 and 7.625% senior unsecured notes
due 2030, totaling about $700 million. The '3' recovery rating
indicates S&P's expectation for meaningful (50%-70%; rounded
estimate: 65%) recovery in the event of a payment default. The
proposed issuance will also extend the company's maturity wall to
2034. S&P said, "We expect to withdraw our ratings on the existing
2028 and 2030 notes following completion of this leverage-neutral
refinancing transaction. Concurrent with the notes issuance,
Carpenter also proposes to upsize its revolving credit facility to
$500 million from $350 million and extend the maturity to 2030 from
2028. Our ratings are based on the preliminary terms and conditions
of the proposed issuance. Our 'BB+' issuer credit rating and stable
outlook on Carpenter are unchanged after our upgrade in June
2025."
Carpenter generated S&P Global Ratings-adjusted EBITDA of $697
million in fiscal 2025 (June 30 year-end), an increase of 34.5%
over the previous fiscal year. The record earnings were driven by
an improved product mix and continued strong pricing actions by the
company amid robust demand in the aerospace and defense, medical,
and energy markets. S&P said, "We expect the strong demand
fundamentals in these end-markets to continue over the next 24
months, supported by multiyear backlogs of orders at Boeing and
Airbus, increasing elective medical procedures, and demand for
power generation. The company recently secured significant price
increases on multiple long-term agreements as customers continue to
prioritize security of supply. Carpenter's contracts with customers
have in-bult surcharge provisions that have enabled it to pass
through tariff costs to customers, thereby protecting its margins.
We expect Carpenter to generate strong cash flows to fund increased
capital spending over the next 24 months from the planned $400
million brownfield expansion project to increase its melt capacity,
among other initiatives. The company's rolling-12-month leverage as
of Sept. 30, 2025, was 0.9x, and we expect it to remain below 1x
over the next 12–24 months."
Issue Ratings--Recovery Analysis
Key analytical factors
-- S&P assumes the company's proposed capital structure will
consist of the upsized $500 million revolving credit facility (not
rated) and $700 million senior unsecured notes due 2034.
-- S&P assigned its 'BB+' issue-level rating and '3' recovery
rating to the proposed 2034 senior unsecured notes. The '3'
recovery rating indicates our expectation of meaningful (50%-70%;
rounded estimate: 65%) recovery in a payment default.
-- S&P generally caps its recovery ratings on the unsecured debt
issued by entities it rates 'BB-' or higher at '3' to account for
the high risk that recovery prospects will be impaired by
incremental secured debt issuance prior to default.
-- S&P assesses the company's recovery prospects based on a
reorganization value of approximately $994 million, which reflects
its emergence EBITDA assumption of $195.4 million and a 5.5x
multiple. The EBITDA figure incorporates our adjusted assumption
for minimum capital expenditures of 4% of revenue and its standard
15% cyclicality adjustment for issuers in the metals and mining
downstream sector.
-- The 5.5x multiple is in line with multiples S&P uses for other
companies in the metals and mining downstream sector.
-- S&P said, "Our recovery analysis assumes that in a hypothetical
default scenario, Carpenter's revolving credit facility would be
fully covered. We assume a 85% utilization rate for the company's
revolving credit facility at default, which results in about $434
million outstanding at default."
Simulated default assumptions
-- Simulated year of default: 2030
-- EBITDA at emergence: $195.4 million
-- Implied enterprise value multiple: 5.5x
-- Gross enterprise value: $1.075 billion
Simplified waterfall
-- Net enterprise value (after 5% administrative cost and
postretirement obligations of about $90 million): $936 million
-- Value available for unsecured claims: $936 million
-- Estimated senior unsecured notes claim: $1.15 billion
-- Recovery expectations: 50%-70% (rounded estimate: 65%)
All debt amounts at default include six months of accrued
prepetition interest.
CENTER FOR EMOTIONAL: Case Summary & 20 Top Unsecured Creditors
---------------------------------------------------------------
Debtor: Center for Emotional Health, PC
135 Mocksville Avenue
Salisbury, NC 28144
Business Description: Center for Emotional Health, PC provides
outpatient mental health services, including
therapy for children and adults, counseling,
and medication management, operating from
Salisbury, North Carolina. The practice
offers treatment for substance-use disorders
and specialized programs for veterans,
serving patients through a combination of
individual and group sessions. It is
classified within the healthcare industry,
specifically in behavioral and mental health
services.
Chapter 11 Petition Date: November 10, 2025
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 25-04478
Judge: Hon. Pamela W. McAfee
Debtor's Counsel: Philip M. Sasser, Esq.
SASSER LAW FIRM
2000 Regency Parkway, Suite 230
Cary, NC 27518
Tel: 919-319-7400
Fax: 919-657-7400
E-mail: travis@sasserbankruptcy.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jonathan Stoudmire as president.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/44PST7I/Center_for_Emotional_Health_PC__ncebke-25-04478__0001.0.pdf?mcid=tGE4TAMA
CHPPR MIDCO: S&P Affirms 'B' ICR on Dividend Recap Transaction
--------------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating and stable
outlook on CHPPR MidCo Inc. (doing business as Air Methods).
S&P said, "At the same time, we assigned our 'B' issue-level rating
and '4' recovery rating to the company's proposed first-lien term
loan due 2032. The '4' recovery rating indicates our expectation
for average (30%-50%; rounded estimate: 45%) recovery in the event
of a payment default.
"The stable outlook reflects our expectation that CHPPR will
increase its patient transport revenue by the high-single-digit
percent area in 2026 and thereafter due to a sustained improvement
in its net revenue per transport (NRPT) and increased volume
following the completion of its greenfield bases. The stable
outlook also reflects our view that CHPPR will continue to generate
FOCF to debt of more than 5% on an annual basis.
"The proposed dividend recapitalization will increase leverage, but
FOCF to debt will remain well above 5%. The transaction will
increase the company's adjusted debt from roughly $500 million
projected at the end of 2025 to about $1.5 billion, and adjusted
leverage will increase from low-1x to over 3x. While the debt and
interest burden on the company are both increasing, the company's
profitability and cash flow have improved dramatically over the
past 12 months, and we still believe the company can generate over
5% FOCF to debt in 2026 and beyond. Additionally, in our view, the
dividend does not indicate a more-aggressive financial policy as
the company's leverage was very low, performing well since exiting
bankruptcy, and we believed a re-leveraging event was a likely
scenario for the equity holders to monetize their investment. Even
after the incremental debt, leverage remains relatively low for the
'B' category, but we believe that is appropriate due to the
inherent volatility of the company's business model and the
relatively recent track record of increasing profitability and
improved cash flow."
Increased reimbursement and recovery from the no surprises act
(NSA) legislation has improved operating performance, but future
growth will likely come from volume. The company has improved its
financial performance since emerging from bankruptcy in late 2023.
CHPPR's 2024 revenue exceeded our prior expectations by 8% and it
increased its revenue 12% year over year in the first half of 2025.
This outperformance primarily stemmed from the 22.6% rise in the
company's net revenue per transport (NRPT), which reflected
increased reimbursement rates, favorable outcomes from independent
dispute resolution (IDR) proceedings, and improved claims yield
with its out-of-network payers.
S&P projects CHPPR will continue to increase its core transport
revenue by 5%-6% in 2026 and 2027, supported by increasing volumes
due to the completion of greenfield bases, a steady reimbursement
environment, and the stabilization of its nonemergent service
volumes. Furthermore, CHPPR's enhanced ability to negotiate
advantageous pricing with its in-network payers, coupled with
annual contractual price increases, should also contribute to
continued growth in NRPT, albeit at a lower rate.
"Looking ahead, we anticipate the company sustain an EBITDA margin
of about 26% in 2025 and beyond. The higher run-rate profitability
will more than offset the increased interest burden and elevated
growth capital expenditure (capex) associated with the greenfield
bases, allowing FOCF to debt to remain 6%-8% in 2026 and above 8%
in 2027.
"We expect the company's revenue and profitability will remain
somewhat volatile. CHPPR's earnings are subject to volatility from
factors such as weather patterns and safety risks, which can reduce
volumes, as demonstrated by the recent performance of its tourism
segment. To mitigate these risks, management has implemented
strategies, including enhanced fleet management to optimize its
transport distances and the development of new operational bases.
Notably, CHPPR's total capex during the first half of 2025
represented nearly 6% of its revenue, which is approximately double
its historical average.
"We expect the company to continue to invest heavily in maintaining
its aircraft fleet, as well as supporting growth through new
greenfield bases. The company's high fixed charges can lead to
drastic swings in profitability in cash flow if revenue growth
underperforms expectations. Nonetheless, we believe the company has
sufficient cash flow generation to withstand any unexpected
near-term hits to profitability in our forecast.
"The stable outlook reflects our expectation that CHPPR will
increase its patient transport revenue by high-single-digit percent
in 2026 and thereafter due to a sustained improvement in its NRPT
and increased volume following the completion of its greenfield
bases. The stable outlook also reflects our view that CHPPR will
continue to generate FOCF to debt of more than 5% on an annual
basis."
S&P could lower the rating on CHPPR in the next 12 months if it no
longer believes it will maintain S&P Global Ratings-adjusted FOCF
to debt of more 5% on a sustained basis. This could occur if:
-- It faces accelerated wage inflation and other elevated
operating costs, including delays in the ramp-up of its greenfield
bases, eroding its profitability;
-- A rise in weather-related cancellations increases
uncontrollable misses;
-- Higher-than-expected tariff headwinds for a
longer-than-anticipated period increase the cost of aircraft or
parts from Canada; or
-- The company pursues further shareholder-friendly activities
that increase leverage.
Although unlikely, S&P could revise its outlook on CHPPR to
positive in the next 12 months if:
-- The company sustains S&P Global Ratings-adjusted FOCF to debt
well above 10%; and
-- S&P believes it has sufficiently diversified its core business
to reduce the volatility in its operations.
CIPHER COMPUTE: Fitch Assigns 'BB-(EXP)' LongTerm IDR
-----------------------------------------------------
Fitch Ratings has assigned Cipher Compute LLC a 'BB-(EXP)' expected
Long-Term Issuer Default Rating (IDR). Fitch has also assigned the
company's proposed $1.4 billion senior secured notes an expected
'BB-(EXP)' rating with a Recovery Rating of 'RR3'. The Rating
Outlook is Stable.
RATING RATIONALE
The 'BB-' rating reflects Fitch's view of elevated completion risk
for Barber Lake, a 244 MW data center under construction by Cipher
Compute LLC. Although the scope is relatively straightforward, the
project remains in the early construction phase and has not locked
in a price with its contractor, Quanta Infrastructure Solutions
Group, LLC (a subsidiary of Quanta Services Inc., rated BBB/Stable
by Fitch), exposing it to cost escalation risks.
The independent engineer (IE) notes the budget, including
contingencies, is below industry benchmarks, indicating the
expected cost efficiencies are unproven. The roughly one-year
implementation schedule is aggressive and offsets the benefits of
lower complexity.
Mitigants include Quanta's role as the contractor, its strong
experience in digital and energy infrastructure, and firm
commitments for a significant portion of long-lead equipment by the
project. The IE acknowledges the schedule is aggressive but views
it as achievable given secured production slots for long lead
equipment, offsite fabrication, and an experienced team.
While labor availability is a risk amid rising regional demand, the
IE believes modular strategies—such as prefabrication of key
systems—can enable parallel construction and diversify work
across multiple labor markets, supporting a 12-month delivery. The
IE also views on-budget completion as likely. Despite these views,
Fitch still considers completion risk elevated, given the project's
early construction status and will continue to monitor progress.
The outside completion date permits up to a six-month delay. Any
further delay could trigger lease termination without compensation
and the loss of the tenant's only revenue stream from Fluidstack,
as well as support under the Google agreements that back
Fluidstack's lease obligations. Delays may also generate rent
credits. However, a six-month debt service reserve, fully funded at
financial close, provides some liquidity to absorb delay costs and
late-delivery credits applied against base rent once the lease
begins.
During the operating phase, the project benefits from Google's
backstop. If Fluidstack defaults or files for bankruptcy, Google is
expected to assume Fluidstack's lease obligations or make
termination payments sufficient to repay outstanding debt,
materially reducing downside risk. Cipher Mining Inc., the parent
and operator, runs two wholly owned bitcoin mining data centers in
Texas with similar capacities to Barber Lake, although these are
not built for high performance computing workloads.
The rating is also constrained by the project's ability to raise
additional debt for an expansion or additional project. Even if
such debt will benefit from a backstop similar to the initial debt
and is provided by an entity rated at least as highly as Google by
any rating agency, any delays or cost escalations in the expansion
could elevate risks for Cipher Compute LLC. These risks are
mitigated because a new data center facility is unlikely given site
constraints. The more probable expansion is a 56 MW addition at
Barber Lake, as the available acreage there is not fully utilized
under the current lease.
The IDR is equalized with the debt facilities' ratings, given their
equal senior position and lack of other subordinate liabilities.
Fitch also assigns a Recovery Rating of 'RR3'.
KEY RATING DRIVERS
Completion Risk - Weaker
Fitch's assessment reflects a straightforward data center build and
the involvement of an experienced construction partner, Quanta
Infrastructure Solutions Group, LLC. These strengths are offset by
the lack of a fixed-price construction contract for a budget that
is below benchmarks even after contingencies, and by a tight about
one-year implementation schedule. Quanta's involvement provides
risk-transfer benefits, but the construction price will be locked
in only through a progressive guaranteed maximum price (GMP) to be
finalized and executed under the existing master EPC agreement as
design and construction advance.
In addition, owner-furnished equipment — more than 50% of the
construction contract price — is outside the contractor's scope
and exposed to cost-overrun and trade-tariff risks. Several major
equipment packages are sourced from Mexico (chillers, main power
transformers, CRAHs) and South Korea (MV switchgear), and could be
affected by tariffs. The project's relatively remote Texas location
may also constrain labor availability and pressure the aggressive
one-year construction schedule.
These cost-escalation risks are partly mitigated by the independent
engineer's positive view of supply-chain alignment, early
manufacturer engagement, and design efficiency. For the
owner-furnished equipment, management confirmed that the majority
of long-lead items have firm commitments, and the budget includes
suitable tariff contingency on equipment cost. Management confirms
that no permits are required for construction in this region of
Texas.
The outside completion date, six months beyond the target, provides
an above-average schedule cushion. However, breaching this date
could result in lease termination without compensation. The
independent engineer acknowledges the schedule is aggressive but
achievable given secured long-lead production slots, modular
construction and prefabrication strategies, and an experienced
team. Despite a six-month debt service reserve, available during
construction can cover debt service costs during potential delays,
it is not fully sufficient to cover potential rent credits for
delayed delivery.
Operation Risk - Midrange
The 'Midrange' operating risk assessment reflects a clear modified
gross plus electric (MG+E) cost framework, with electricity costs
passed through to the tenant and the landlord responsible for
maintaining core building systems to high uptime and reliability
standards calibrated for AI training.
Redundancy is provided by on-site generators and uninterruptable
power supply backed critical power with lithium-ion batteries.
Although Cipher Mining (operator) has been operating two wholly
owned bitcoin mining data centers in Texas, Fitch views their
experience as relatively modest compared to other experienced data
center developers operating high-performance computing data
centers.
Supply Risk - Stronger
The site is fully energized with 300MW of approved interconnection
and has entered agreements necessary to participate in the Electric
Reliability Council of Texas (ERCOT) market. According to
management, no additional transmission infrastructure is required
to secure power. The site features a newly constructed and
energized high-to-mid voltage substation. The project will be
upgrading the existing substation to N+1 redundancy and adding two
transformers to align with tenant's requirements.
The transformers are scheduled for delivery in December 2025. The
reliability at this voltage level is strong and force
majeure-related power interruptions do not constitute SLA breaches,
highlighting the project's ability to meet service requirements
supported by the presence of on-site generators. The project has
access to favorable waterflow rates that support multiple cooling
applications.
Revenue Risk - Composite - Stronger
Revenues are fully contracted across the project's 168MW critical
IT load (244MW gross capacity) under a 10-year MG+E lease with two
five-year extension options. While the primary lease is with
unrated tenant, Fluidstack, this is mitigated by Google's
recognition agreement and financial support agreement, which
together require Google to assume the leases (in case it is not
able to find a replacement tenant in 90 days) or pay termination
fees sized to cover outstanding debt under defined conditions in
case Fluidstack defaults or enters into bankruptcy.
If Google choses to assume the lease, it will only pay a modified
rent during the first 7.5 years, which covers all actual costs to
operate the asset plus principal and interest limiting the excess
cash but guaranteeing debt repayment. Mandatory amortization and
lockbox controls reinforce cash flow certainty and deleveraging
within the initial lease term, while Google's investment in the
sponsor company (Cipher Mining Inc.) reflects the strategic
importance of the asset.
Located in Mitchell County, Texas (approximately 250 miles West of
Dallas) off Interstate 20 highway near Colorado City, the project
benefits from diverse fiber routes to major metropolitan areas with
low latency to major metro areas, including Dallas, Houston, Austin
and San Antonio, and high bandwidth.
Infrastructure Dev. & Renewal - Stronger
Once constructed, the project will comprise a newly built data
center with a total of 168 MW of critical IT load for
High-Performance Computing (HPC) data center operations. Electrical
and mechanical systems are designed with N+1 redundancy, ensuring
concurrent maintainability while maintaining full operational
capacity during maintenance or single failure conditions. Landlord
obligations require diligent operation and upkeep of core
infrastructure.
Maintenance exposure is moderated by efficient design, permanent
generator backup, and a lease framework that allocates computing
hardware maintenance to the tenant while the landlord maintains the
building and essential services. Most major mechanical and
electrical components have useful lives of longer than 10 years
leaving major replacements to occur after the 10-year debt
repayment period and thereby offsetting the absence of a major
maintenance reserve. Technological obsolescence risk is limited
given that the debt fully amortizes within the 10 years of Google
backstop.
Debt Structure - 1 - Weaker
The proposed issuance is $1.4 billion of senior secured notes due
2030, secured by a first-priority lien on all assets, contracts,
grid connections and cash flows, and supported by Google's
recognition agreements and financial support agreement. Debt
service liquidity includes a $120 million debt service reserve
account funded at closing and sized to six months of debt service,
in addition to funded interest during construction.
In case of payment default or bankruptcy by the tenant, lease or
termination payments by Google are deposited into agent-controlled
lockbox accounts, mitigating exposure due to claw-back actions
under insolvency or bankruptcy of the tenant. The payments flow
through a cash waterfall that prioritizes operating expenses and is
followed by mandatory amortization and interest payments. Exposure
to refinancing risk in 2030 is mitigated by Google support for ten
years, which is adequate to amortize the debt fully during this
term.
The structure anticipates a fixed interest rate or full hedging,
and includes distribution controls, debt-incurrence limits,
separateness requirements and adequate covenants. These include
negative covenants preventing the borrower from commingling funds
with the parent or guaranteeing the parent's obligations. The
financing documents require the borrower to operate as a
special-purpose entity with no business other than developing and
operating the project, though it may pursue other comparable data
center projects.
There are clauses permitting the issuer to pursue M&A and invest in
joint ventures — an atypical and weaker feature versus other
project finance structures. However, any M&A activity or investment
in joint ventures cannot increase senior debt beyond the capacity
supported under the Google's support agreements, which partly
mitigates the risks. Under the recognition agreement, defined
conditions require Google to assume the lease or pay a termination
fee sized to cover outstanding senior debt.
For incremental debt tied to an additional project, the principal
amount must be backed by a qualified backstop that is substantially
similar to the existing backstop and provided by a counterparty
rated at least as highly as Google by any rating agency. The
restricted payment test is not linked to requirements to maintain
any specific coverage ratios.
Financial Profile
The operating phase financial profile is strong, with an average
DSCR of 1.20x over the initial lease term (2026-2035) and a PLCR at
maturity (2030) of 1.45x under Fitch's rating case, which
incorporates stressed operating costs and escalation. Google's
backstop, together with a fully funded six-month debt service
reserve, provides additional credit enhancement. While these
metrics are consistent with a higher rating, the rating remains
constrained by completion risk, lack of an operational track record
in relation to high performance computing data centers and the
project's ability to raise additional debt for an expansion or
additional project.
PEER GROUP
WULF Compute, LLC (BB(EXP)/Stable) is a comparable publicly rated
peer developing a 450MW data center at the Lake Mariner campus in
western New York state. The rating is constrained by completion
risk and a limited operating track record, with additional risks
from the absence of a fixed-price construction contract and an
aggressive schedule. The project has MG+E lease with Fluidstack for
10 years, with two five-year extension options, and benefits from
Google's backstop during the operating phase, which is expected to
cover Fluidstack's lease obligations or termination payments
sufficient to repay outstanding debt in the event of a Fluidstack
default or bankruptcy.
The financial profile is strong, with an average DSCR of 1.26x over
the initial debt term (2026-2036) and a PLCR at maturity (year
five) of 1.75x under Fitch's rating case, which incorporates
stressed operating costs and escalation. However, operating track
record is relatively modest with only one of the smaller HPC data
centers operational.
Cipher compute faces similar completion risk. It lacks a
fixed-price contract and the construction schedule is aggressive.
The scope includes generator installation, and rent credits are
linked to early access instead of target completion date. WULF has
two other smaller HPC operating data centers that could provide
liquidity during the construction. Cipher benefits from a 10-year
initial lease term with Fluidstack and a Google backstop mechanism
during the operating phase to cover Fluidstack's obligations under
the lease.
However, Cipher operating revenues depend on one site, while WULF
has three sites with staggered completion, each with its own
backstop. The financial profile remains strong, but weaker than
WULF with an average DSCR of 1.20x over the initial debt term
(2026-2036) and a PLCR at maturity (year five) of 1.45x under
Fitch's rating case, which incorporates stressed operating costs
and escalation. The operator track record is yet to be established
for Cipher given it has not operated HPC data centers at all.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Construction delays that exceed allowable times as indicated in
the lease terms, leading to potential tenant termination;
- Degradation of the financial performance leading to sustained
DSCR below 1.1x;
- The rating could be downgraded if the expansion or additional
project faces elevated completion risk from delays or cost overruns
despite a new backstop, or if it raises the existing project's
completion risk due to interface issues.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Satisfactory commissioning of Barber Lake data center in line
with the requirements of the Fluidstack lease, coupled with
sustained operational and financial performance with DSCR above
1.2x.
TRANSACTION SUMMARY
Cipher Mining Inc., through its wholly owned Cipher Compute LLC,
seeks to issue $1.4 billion in senior secured notes to fund the
construction of a 168 MW IT AI/HPC data center at Barber Lake. The
notes carry a five-year tenor at a fixed rate and are secured by a
first-priority lien on all assets, contracts, and cash flows of
Cipher Compute LLC and Cipher Barber Lake LLC, together with the
Fluidstack lockbox account and, during construction, a pledge of
Google warrants. The debt service reserve, required to cover a
minimum of six months of principal and interest through the life of
the debt, is fully funded at financial close (in addition to funded
interest during construction).
The payment waterfall prioritizes operating expenses, mandatory
principal and interest payments, and the debt service reserve
before any other uses, with an Excess Cash Flow Offer to redeem
notes up to 50% of available excess cash flow. All capacity at
Barber Lake is pre-leased under a 10-year lease to Fluidstack, and
cash flows are deposited directly into accounts under the
Collateral Agent's control and the only permitted payees are Cipher
Compute LLC or, upon an Event of Default, the Collateral Agent. If
the tenant defaults or experiences insolvency, Google's backstop
cash flows are directed to the lockbox. Mandatory amortization is
aligned with the Google backstop amortization schedule.
Google provides credit enhancements comprising up to $1.4 billion
of backstop covering Fluidstack's lease obligations and a pledge of
warrants as additional collateral during the construction period.
Under the Google Recognition Agreement, after a Fluidstack default,
Cipher and Google have 90 days to agree on a new tenant. If none,
Google may: (i) assume the lease under modified base rent covering
operating costs plus principal and interest; (ii) reject the lease
and pay the termination fee (only if six years have passed or
equipment can consume under 50% of baseline capacity); or (iii) for
payment defaults, defer the decision while covering unpaid and
ongoing rent for Fluidstack.
Project sources and uses reflect $1.4 billion of secured debt (68%)
and a $611 million parent equity contribution (32%). The equity
will be contributed at close. Uses include approximately $1,794
million of capex and approximately $248 million of interest, OID,
DSRA, and financing fees. A parent completion guarantee obligates
Cipher Mining to provide the issuer with the funds necessary to
ensure completion and delivery of the data center. Special Purpose
Entity covenants apply to both the Issuer and Subsidiary Guarantor
with restrictions around comingling of funds with the parent or
guaranteeing obligations of the parent. formation of additional
subsidiaries or changes in legal structure.
For the purpose of expected ratings, Fitch has relied on the
offering memorandum and description of notes (DON) and has not
reviewed the transaction documents such as the indenture,
subsidiary guarantees, collateral documents, and Fluidstack lockbox
arrangements. The terms of these documents are presented in the DON
and Fitch expects the documents to remain consistent with these
terms. The lockbox agreement will not be provided before pricing
and will be delivered within 60 days of issuance.
The final ratings are contingent upon the receipt by Fitch of final
documents conforming to information already received and reviewed
as well as the final pricing of the bonds.
SECURITY
The debt is secured by all assets, revenues, and cash flows from
the Fluidstack lease, which benefits from the Google backstop
arrangement that provides credit enhancement to the underlying cash
flows.
Date of Relevant Committee
03 November 2025
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery
----------- ------ --------
Cipher Compute LLC LT IDR BB-(EXP) Expected Rating
Cipher Compute
LLC/Senior Secured
Notes/1 LT LT BB-(EXP) Expected Rating RR3
CLIPPER ACQUISITIONS: Moody's Alters Outlook on Ba1 CFR to Negative
-------------------------------------------------------------------
Moody's Ratings has affirmed Clipper Acquisitions Corp's (d/b/a
TCW) Ba1 corporate family rating, Ba1 senior secured term loan B1
rating and Ba1-PD probability of default rating. The outlook was
changed to negative from stable.
RATINGS RATIONALE
The change in the outlook to negative from stable reflects the
decline in TCW's operating performance, driven by weakness in the
company's core fixed income business (80+% of the company's assets
under management) including relatively poor investment performance
and persistent net outflows. The company's run-rate EBITDA
(including Moody's standard adjustments) stands at approximately
$70 million compared to approximately $109 million at year-end 2024
and $259 million in 2021, its peak year. As a result of the
weakening performance, the company's leverage (adjusted
debt/EBITDA) remains high at 5.7x despite a significant
restructuring of its balance sheet.
In early 2025, Nippon Life Insurance Company (A1 insurance
financial strength, stable) invested $300 million in preferred
shares and $250 million in a convertible note, both of which
receive full equity credit, in TCW. Consequently, the company's
term loan was reduced by $300 million to $260 million. In addition,
there are a number of ongoing developments at TCW that Moody's
believes could lead to a turn in the company's operating
performance. TCW has acquired an ETF platform and has materially
grown ETF AUM, created an asset-backed finance team, expanded its
CLO platform and launched a direct lending partnership with PNC
Financial Services Group, Inc. (A3 stable). Overall its
alternatives business has approximately doubled its revenues and
AUM in the past three years, although it remains small relative to
the fixed income business. Management is also taking steps
strengthening its distribution platform and expanding its
alternative investment capabilities through the reinvestment of
realized cost savings (approximately $125 million). Finally,
Moody's notes that fixed income investment performance has improved
recently.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the negative outlook, the ratings are unlikely to be
upgraded. However, the outlook could return to stable under the
following conditions: 1) A significant improvement in fixed income
flows as well as a notable growth in private asset AUM; 2) Moody's
adjusted debt-to-EBITDA is sustained below 3.5x; 3) the pre-tax
margin improves to above 10%; 4) Nippon becomes a majority owner
(it currently owns approximately 27%), in which case, Nippon's
implicit support could be reflected in the ratings.
Factors that could lead to a downgrade include: 1) Moody's adjusted
debt-to-EBITDA is sustained above 4.0 x; 2) a decline in fixed
income valuations and/or sustained net outflows; 3) an acquisition
that increases leverage or otherwise adversely impacts TCW's credit
profile; 4) net outflows remain at or near current levels.
The principal methodology used in these ratings was Asset Managers
published in May 2024.
The net effect of any adjustments applied to rating factor scores
or scorecard outputs under the primary methodology(ies), if any,
was not material to the ratings addressed in this announcement.
The TCW Group, Inc. is a private independent investment manager.
Founded in 1971 and based in Los Angeles, TCW is primarily a fixed
income manager but also offers US equities, international and
alternative strategies with approximately $201 billion in AUM as of
June 30,2025.
COMMERCIAL METALS: S&P Rates New $2BB Senior Unsecured Notes 'BB+'
------------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and 3
recovery rating to CMC's proposed $2 billion senior unsecured
notes, which it is issuing in two tranches of eight- and 10-year
notes. The 3 recovery rating indicates our expectation of
meaningful recovery prospects. The proceeds from the issuance will
go toward the recently announced $1.84 billion acquisition of Foley
Products Co. LLC and cash to the balance sheet. Our ratings are
based on preliminary terms and conditions.
S&P said, "We expect leverage will increase above 3x following the
acquisitions of Foley Products Co. and Concrete Pipe & Precast
(CP&P), both announced this Fall. However, we expect it will
decline toward 2.5x over the next 12 months and we affirmed our
issuer credit rating on CMC upon announcement last month."
The acquisitions establish CMC's foothold in the precast concrete
market, expanding its nonsteel product portfolio with complementary
offerings and increasing its product diversity and scale in the
construction market. Still, its product concentration and relative
size versus other steel peers are considerations for our rating.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors:
-- S&P rates CMC's proposed senior unsecured notes BB+, in line
with the existing issue-level rating.
-- CMC is issuing $ 2 billion of senior unsecured notes, in two
tranches of eight- and 10-year notes.
-- The proceeds from the issuance will go toward the $1.84 billion
acquisition of Foley Products Co. LLC and cash to the balance
sheet.
-- CMC's senior unsecured debt also includes $300 million of
4.125% notes due in 2030, $300 million of 3.875% notes due in 2031,
$300 million of 4.375% notes due in 2032, outstanding $145 million
of Series 2022 bonds due 2047, and $150 million multi-modal private
activity bonds due 2055.
-- S&P rates CMC's unsecured debt a '3' recovery rating, which
indicates its expectation for meaningful (50%-70%; rounded
estimate: 55%) recovery. The issue-level rating is 'BB+', in line
with the issuer credit rating.
-- S&P assesses recovery prospects for CMC's noteholders on the
basis of a reorganization value of approximately $3 billion, which
reflects $550 million of emergence EBITDA and a 5.5x multiple.
-- S&P said, "The $550 million of emergence EBITDA incorporates
our adjusted assumption for minimum capital spending of 3% and our
standard 15% cyclicality adjustment for issuers in the metals and
mining downstream sector. We also adjust it so the EBITDA
degradation in our hypothetical default scenario is in line with
that of similarly rated peers. The 5.5x multiple is in line with
those we use for other companies in the metals and mining
downstream sector."
-- S&P maintains the obligor/nonobligor split of 85%/15% to
reflect the split between the EBITDA it generates in the U.S. and
internationally.
-- S&P said, "Our recovery analysis assumes that in a hypothetical
bankruptcy scenario CMC's revolving credit facility (not rated)
would be fully covered. The company intends to amend its revolving
credit facility to increase the borrowing capacity to $ 1 billion.
Although the revolving credit facility's commitment is $1 billion,
we assume outstanding borrowings of about $882 million (85% drawn)
at default."
-- S&P's $3 billion gross enterprise value at emergence reflects
the newly acquired assets and the value growth in the company's
core business through acquisitions and greenfield projects over the
last several years.
Simulated default assumptions:
-- Simulated year of default: 2030
-- EBITDA at emergence: $550 million
-- Implied enterprise value multiple: 5.5x
-- Gross enterprise value: $3 billion
Simplified waterfall:
-- Net enterprise value (after 5% administrative costs and
obligor/nonobligor valuation split: 85%/15%): $2,435 million
-- Collateral value available to secured creditors (includes 65%
equity pledge of collateral less claims from nonobligor group):
$2,599 million
-- Senior secured claims (assumed 85% cash flow revolver usage):
$882 million
-- Total unpledged enterprise value available to unsecured claims
(includes unpledged value from nonobligor group): $1,717 million
-- Senior unsecured debt claims: $3,272 million
--Recovery expectations: 50%-70% (rounded estimate: 55%)
All amounts include six months of accrued prepetition interest.
CONVEY HEALTH: New Mountain Marks $13.4MM 1L Loan at 16% Off
------------------------------------------------------------
New Mountain Finance Corporation has marked its $13,431,000 loan
extended to Convey Health Solutions, Inc. to market at $11,266,000
or 84% of the outstanding amount, according to New Mountain's Form
10-Q for the quarterly period ended September 30, 2025, filed with
the U.S. Securities and Exchange Commission.
New Mountain is a participant in a First Lien Loan to Convey Health
Solutions, Inc. The loan accrues interest at a rate of 1.00% +
3.94%/ PIK per annum. The loan matures on July 2029.
New Mountain is a Delaware corporation that was originally
incorporated on June 29, 2010 and completed its initial public
offering on May 19, 2011. The company is a closed-end,
non-diversified management investment company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940.
The company is focused on providing direct lending solutions to
U.S. upper middle market companies backed by private equity
sponsors. The Company's investment objective is to generate current
income and capital appreciation through the sourcing and
origination of senior secured loans and select junior capital
positions, to growing businesses in defensive.
New Mountain is led by John R. Kline as President and Chief
Executive Officer and Kris Corbett as Chief Financial Officer and
Treasurer.
The Fund can be reach through:
John R. Kline
New Mountain Finance Corporation
1633 Broadway, 48th Floor
New York, NY 10019
Tel. No.: (212) 720-0300
About Convey Health Solutions Inc.
Convey Health Solutions offers technology, analytics, and advisory
solutions to optimize health plans, improve member experience, and
streamline operations.
CONVEY HEALTH: New Mountain Marks $2.2MM 1L Loan at 16% Off
-----------------------------------------------------------
New Mountain Finance Corporation has marked its $2,243,000 loan
extended to Convey Health Solutions, Inc. to market at $1,881,000
or 84% of the outstanding amount, according to New Mountain's Form
10-Q for the quarterly period ended September 30, 2025, filed with
the U.S. Securities and Exchange Commission.
New Mountain is a participant in a First Lien Loan to Convey Health
Solutions, Inc. The loan accrues interest at a rate of 1.00% +
3.94%/ PIK per annum. The loan matures on July 2029.
New Mountain is a Delaware corporation that was originally
incorporated on June 29, 2010 and completed its initial public
offering on May 19, 2011. The company is a closed-end,
non-diversified management investment company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940.
The company is focused on providing direct lending solutions to
U.S. upper middle market companies backed by private equity
sponsors. The Company's investment objective is to generate current
income and capital appreciation through the sourcing and
origination of senior secured loans and select junior capital
positions, to growing businesses in defensive.
New Mountain is led by John R. Kline as President and Chief
Executive Officer and Kris Corbett as Chief Financial Officer and
Treasurer.
The Fund can be reach through:
John R. Kline
New Mountain Finance Corporation
1633 Broadway, 48th Floor
New York, NY 10019
Tel. No.: (212) 720-0300
About Convey Health Solutions Inc.
Convey Health Solutions offers technology, analytics, and advisory
solutions to optimize health plans, improve member experience, and
streamline operations.
CORE & MAIN: S&P Hikes ICR to 'BB' on Low Leverage, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Core & Main
to 'BB' from 'BB-'. At the same time, S&P raised its issue-level
rating on the company's senior secured term loans due 2028 and 2031
to 'BB' from 'BB-', concurrent with the upgrade. The recovery
rating remains '4'.
The stable outlook reflects S&P's view that debt leverage will
remain close to 3x over the next 12 months with support from growth
in municipal end markets and good cash flow generation.
Core & Main's debt leverage will likely be 2.5x-3x in fiscals 2025
and 2026 and below 4x, including acquisitions and during weaker
macroeconomic periods. This view is supported by performance in the
first half of fiscal 2025, with S&P Global Ratings-adjusted debt to
EBITDA of 3.1x for the trailing 12 months ended Aug. 3, 2025. The
company has also maintained debt leverage below 3.5x over the last
four fiscal periods. In fiscal 2024, Core & Main spent $740 million
on acquisitions and $176 million in share repurchases, and debt
leverage only increased to 3.2x.
S&P said, "In our base-case forecast for fiscal 2025, we expect
revenue growth of about 3% with support from growth in municipal
end markets and stable commercial end markets, which have helped to
offset weaker residential end markets. We also expect EBITDA
margins to be flat to slightly down, remaining in the 13.5% area,
from 13.7% in fiscal 2024, because of weaker residential demand and
higher selling, general, and administrative (SG&A) expenses.
"As a result of these assumptions, we anticipate Core & Main will
generate free operating cash flows (FOCF; cash flow from operations
minus capital spending) of $500 million to $550 million in fiscal
2025. We incorporated $100 million in share repurchases, $250
million in acquisitions, and $10 million in dividends.
"Despite these assumptions, debt leverage remains close to 3x. This
leverage cushions the rating in case macroeconomic conditions do
not stabilize as we expect, or if the company spends more on
acquisitions and dividends than we anticipate."
Core & Main's competitive advantage assessment is based on its
leading market share, high margins, and diverse customer and
supplier base, offset by a narrow product and industry focus. The
company benefits from good market share (about 19%) in the very
fragmented water infrastructure supply market and its EBITDA
margins (around 13% for the trailing 12 months ended Aug. 3, 2025)
are higher than many building materials distributors we rate.
Approximately 50% of demand for its products derives from
maintenance, repair, and replacement work. S&P said, "We view this
portion of the company's sales as less volatile and cyclical than
its sales in new residential developments (20%) and the 38% that is
dedicated to commercial markets. With about $7.7 billion in
revenues expected for fiscal 2025, Core & Main's size and scale
give it a competitive advantage over smaller players in both
pricing and supplying larger projects on a regional or nationwide
basis. The company also benefits from a very diverse customer base,
with no one customer accounting for more than 1% of sales.
Offsetting these positive attributes are Core & Main's narrow
product and industry focus limited to water infrastructure, as well
as the impact of project delays. The company is also exposed to
swings in steel and resin costs, and some exposure to tariffs,
which can lead to short-term margin compression until prices can be
passed through.
The stable outlook reflects S&P's view that debt leverage will
remain close to 3x over the next 12 months supported by
contributions from acquisitions growth in municipal end markets and
good cash flow generation.
S&P could lower its rating on Core & Main over the next 12 months
if we believe debt leverage will sustain above 4x. This could occur
if;
-- EBITDA declines 25%-27%, relative to S&P's base-case forecast
for fiscal 2025. Although unlikely, this could occur if end market
demand declines sharply; or
-- The company pursues large debt-financed acquisitions or
shareholder rewards that surpass our assumptions with limited
prospects for deleveraging.
S&P views an upgrade as unlikely over the next 12 months. However,
S&P could raise its rating on the company if;
-- It expands its scale and diversity to be more in line with
those of higher rated peers and;
-- The company commits to maintaining debt leverage comfortably
below 3x under most market conditions
CORPORATE AIR: $4.5-Mil. DIP Loan from Vantage ACG OK'd
-------------------------------------------------------
The Honorable John C. Melaragno of the United States Bankruptcy
Court for the Western District of Pennsylvania authorized Corporate
Air, LLC and its affiliate debtors to obtain postpetition financing
and use cash collateral on an interim basis.
The Debtors filed a motion seeking entry, among other things, of a
second interim order authorizing:
(i) them to incur secured postpetition obligations on a
superpriority basis consisting of new money term loan commitments
in the aggregate maximum principal amount of up to $4.5 million, of
which $1.5 million will be available upon entry of the Interim
Order, pursuant to a Subordinated Debtors-in-Possession Credit
Agreement with Vantage ACG LLC as agent and the lender parties
thereto; and
(ii) them to use the Prepetition Collateral, including the Cash
Collateral.
The Debtors are party to the MSPLF Credit Agreement, dated as of
December 14, 2020, by and between each of the Debtors and
Huntington National Bank, pursuant to which the HNB made certain
advances to the Debtors prior to the Petition Date.
As of the Petition Date, the Debtors were indebted and liable to
HNB, without defense, counterclaim, or offset of any kind, in an
aggregate principal amount of $2,575,054 on account of the advances
under the HNB Loan Agreement, plus accrued and unpaid interest,
fees, expenses (including professional fees), disbursements,
charges, claims, indemnities, and other costs and obligations.
The HNB Obligations are secured by valid, perfected, binding,
enforceable, and nonavoidable first priority liens and security
interests in all prepetition and postpetition real property and all
prepetition and postpetition tangible and intangible personal
property of the Debtors, on all of the Debtors' assets other than
the assets of Corporate Air, LLC, which liens are subordinated and
junior solely to the SBA Lien.
Certain of the Debtors are party to the United States Small
Business Administration Economic Injury Disaster Loan, No.
3243527202, dated April 20, 2020, by and between Corporate Air, LLC
and the SBA, pursuant to which the SBA made certain advances to
Corporate Air, LLC prior to the Petition Date.
As of the Petition Date, Corporate Air, LLC was indebted and liable
to SBA, without defense, counterclaim, or offset of any kind, in an
aggregate principal amount of $472,934 on account of the advances
under the SBA Loan Agreement, plus accrued and unpaid interest,
fees, expenses (including professional fees), disbursements,
charges, claims, indemnities, and other costs and obligations.
The SBA Obligations are secured by valid, perfected, binding,
enforceable, and nonavoidable first priority liens and security
interests in all prepetition and postpetition real property and all
prepetition and postpetition tangible and intangible personal
property of Corporate Air, LLC.
The Debtors are party to the Secured Promissory Note, dated August
26, 2025, by the Debtors in favor of the Vantage AGC, LLC (the
"Prepetition Bridge Lender"), pursuant to which the Prepetition
Bridge Lender made certain advances to the Debtors prior to the
Petition Date.
As of the Petition Date, the Debtors were indebted and liable to
the Prepetition Bridge Lender, without defense, counterclaim, or
offset of any kind, in an aggregate principal amount of $2,000,000
on account of the Prepetition Bridge Loan, plus accrued and unpaid
interest, fees, expenses (including professional fees),
disbursements, charges, claims, indemnities, and other costs and
obligations.
The Prepetition Bridge Loan Obligations are secured by valid,
perfected, binding, enforceable, and nonavoidable liens and
security interests in all prepetition and postpetition real
property and all prepetition and postpetition tangible and
intangible personal property of the Debtors.
The Debtors acknowledge and stipulate that they are in default of
their obligations under the Prepetition Bridge Loan, including as a
result of the commencement of the Chapter 11 Cases. As of the
Petition Date, interest is accruing on the Prepetition Bridge Loan
at the default rate.
All of the Debtors' cash, including any cash in their deposit
accounts, wherever located, whether as original collateral or
proceeds of other Prepetition Collateral, constitutes or will
constitute Cash Collateral of one or more of the Prepetition
Secured Lenders or the DIP Secured Parties, as applicable.
The Debtors seek authority to enter into the DIP Facility to
administer the Chapter 11 Cases, and to fund their operations.
Given its current financial condition, financing arrangements, and
capital structure, the Debtors have been and continue to be unable
to obtain financing from sources other than the DIP Lenders on
terms more favorable than those under the DIP Facility.
The Court finds the interim relief requested in the DIP Motion is
fair and reasonable and is in the best interests of the Debtors,
the Debtors' bankruptcy estates, their stakeholders and other
parties in interest, and represents a sound exercise of the
Debtors' business judgment and is essential for the continued
operation and maintenance of the Debtors' businesses. Granting the
interim relief requested in the DIP Motion is necessary to avoid
immediate and irreparable harm to the Debtors and the Estates.
The DIP Facility is authorized on an interim basis. The use of cash
collateral on an interim basis is authorized. All objections to
this Interim Order to the extent not withdrawn, waived, settled, or
resolved are denied and overruled on the merits in their entirety.
In order to secure the DIP Obligations, effective immediately upon
entry of this Interim Order, and subject and subordinate only to
the Carve Out, the Prepetition Senior Secured Liens, and the
Adequate Protection Liens, pursuant to sections 361, 362,
364(c)(2), 364(c)(3), and 364(d) of the Bankruptcy Code, the Agent,
for the benefit of itself and the DIP Lenders, is granted,
continuing, valid, binding, enforceable, non-avoidable, and
automatically and properly perfected postpetition security
interests in and liens on (the "DIP Liens") including, without
limitation all prepetition and postpetition real property and all
prepetition and postpetition tangible and intangible personal
property of each Debtor.
The DIP Liens securing the DIP Obligations are valid, automatically
perfected, non-avoidable, senior in priority, and superior to any
security, mortgage, collateral interest, lien, or claim to any of
the DIP Collateral, except that the DIP Liens shall be subject and
subordinated only to the Carve Out, the Prepetition Senior Secured
Liens, and the Adequate Protection Liens.
Subject and subordinated only to the Carve Out and the Adequate
Protection Claims, upon entry of this Interim Order, the Agent, on
behalf of itself and the DIP Lenders, is granted, pursuant to
section 364(c) and 364(d)(1) of the Bankruptcy Code, allowed DIP
Superpriority Claims in the Chapter 11 Cases and any Successor Case
for all DIP Obligations (without the need to file any proof of
claim), having priority over any and all administrative expense
claims and unsecured claims against the Debtor or the Estates in
the Chapter 11 Cases and any Successor Case, at any time existing
or arising, of any kind or nature whatsoever, including
administrative expenses of the kinds specified in or ordered
pursuant to Bankruptcy Code sections 105, 326, 328, 330, 331, 364,
365, 503(a), 503(b), 506(c) (to the extent a Final Order
authorizing such relief is entered), 507(a), 507(b), 546(c),
546(d), 726, 1113 and 1114, and any other applicable provision of
the Bankruptcy Code; and (b) which shall at all times be senior to
the rights of the Debtor and its estate, and any successor trustee
or other estate representative to the extent permitted by law.
The automatic stay imposed under section 362(a)(2) of the
Bankruptcy Code is modified as necessary to effectuate all of the
terms and provisions of this Interim Order.
Pursuant to Bankruptcy Code sections 361, 362, 363(c)(2), and
363(e), the Prepetition Secured Lenders are entitled to adequate
protection of their interests in the Prepetition Collateral, in an
amount equal to the aggregate Diminution in Value of, the
Prepetition Secured Lenders' interests in the Prepetition
Collateral (including Cash Collateral) from and after the Petition
Date.
A copy of the Court's Second Interim Order dated October 22, 2025,
is available at https://urlcurt.com/u?l=d6ZsvW from
PacerMonitor.com.
About Corporate Air LLC
Corporate Air, LLC provide flight training, aircraft rental
(including charter services), maintenance, and Fixed-Base Operator
services in Pennsylvania and Colorado, operating facilities that
support charter flights, pilot training, and related airport
operations.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Court (Bankr. W.D. Pa. Lead Case No. 25-22602) on
September 29, 2025. In the petition signed by David Nolletti, chief
restructuring officer, the Debtor disclosed up to $10 million in
assets and up to $50 million in liabilities.
Judge John C. Melaragno oversees the case.
The Debtors tapped Domenic E. Pacitti, Esq., and Michael W.
Yurkewicz, Esq., at Klehr Harrison Harvey Branzburg, LLP as general
bankruptcy counsel; Kevin Douglass, Esq., at Babst, Calland,
Clements and Zomnir, P.C., as co-bankruptcy counsel; Riveron
Management Services, LLC as financial advisor; and Omni Agent
Solutions, Inc. as noticing, claims, and solicitation agent.
Lowenstein Sandler LLP serves as counsel to Vantage ACG LLC as DIP
agent and the DIP lenders. Burnstein-Burkley, PC, serves as
Pennsylvania counsel to the DIP Agent and the DIP Lenders.
DATAVAULT AI: Signs License Agreement with Scilex Holding
---------------------------------------------------------
Datavault AI Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company on
November 3, 2025, entered into a License Agreement with Scilex
Holding Company.
Under the License Agreement, among other things, the Company
granted Scilex a worldwide, exclusive, non-transferable license,
with the right to sublicense, under the patents and know-how
specified therein to among other things, research, develop, make,
have made, use, sell, have sold, offer for sale, import, export,
register, market, promote, advertise, commercialize and distribute
the Proprietary Materials (as defined in the License Agreement),
including a suite of patents related to the Company's data
platforms and any products created therefrom within the Target
Market.
With respect to the foregoing, "Target Market" shall mean
industries including biotechnology, biopharmaceutical, genetic,
diagnostic, and data-related industries, and any markets relating
to the generation, use, storage, analysis, tokenization, and
exchange of DNA, genetic, diagnostic, and therapeutic data or
materials.
The License Agreement expires upon the expiry of the patents
underlying the Proprietary Materials, at which point the license
shall become perpetual, irrevocable, non-exclusive and
royalty-free. The License Agreement is subject to earlier
termination if, among other things:
(i) either party ceases to exist or becomes insolvent,
(ii) either party commits a material breach of the License
Agreement,
(iii) Scilex fails to make any required payment to the Company
that is not cured within 15 days, or
(iv) Scilex does not achieve and maintain annual royalty
payments to the Company of a minimum of $1,000,000 after 24 months
following the date of the License Agreement.
As consideration for the license under the License Agreement,
Scilex agreed to pay the Company:
(a) a non-refundable license fee of $10,000,000, payable in
four equal installments of $2,500,000 on or before the last day of
each fiscal quarter, beginning on December 31, 2025,
(b) subject to achievement of certain net sales for the
licensed Product, up to an aggregate of $2,550,000,000, and
(c) a 5% royalty on net sales of the Product during the
applicable royalty term under the License Agreement.
The License Agreement contains customary reciprocal indemnification
obligations for the Company and Scilex and customary
representations and warranties.
A full-text copy of the License Agreement is available at
https://tinyurl.com/m2rk8x66
About Datavault AI
Datavault AI Inc., headquartered in Beaverton, Ore., develops and
licenses patented platforms for AI-driven data management,
valuation, and monetization. The Company offers cloud-based Web
3.0 solutions incorporating high-performance computing, generative
AI agents, and secure data utilities. Datavault AI operates in the
data technology and software licensing industry, providing tools
for enterprise-grade data solutions focused on privacy and
cybersecurity.
BPM LLP's audit report dated March 31, 2025, included a "going
concern" qualification, noting that the Company's ongoing
operational losses, net capital deficiency, and cash flow situation
cast significant doubt on its ability to continue operating.
Management of the Company intends to raise additional funds through
the issuance of equity securities or debt. There can be no
assurance that, in the event the Company requires additional
financing, such financing will be available at terms acceptable to
the Company, if at all. Failure to generate sufficient cash flows
from operations, raise additional capital and reduce discretionary
spending could have a material adverse effect on the Company's
ability to achieve its intended business objectives.
As of June 30, 2025, the Company had $120.69 million in total
assets, $46.62 million in total liabilities, and $74.07 million in
total stockholders' equity. Cash and cash equivalents as of June
30, 2025 were $0.7 million compared to $3.3 million, as of Dec. 31,
2024.
The Company recorded a net loss of $37.1 million and $46.7 million
for the three and six months ended June 30, 2025 and used net cash
in operating activities of $12.8 million for the six months ended
June 30, 2025 vs $9.0 million for the six months ended June 30,
2024. Excluding non-cash adjustments, the primary reasons for the
increase in the use of net cash from operating activities during
the six months ended June 30, 2025, was related to an increase in
the net loss.
DESTINY VOICE: Scott Seidel Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 6 appointed Scott Seidel as Subchapter
V trustee for Destiny Voice & Music Studio, Inc.
Mr. Seidel will be paid an hourly fee of $520 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Seidel declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Scott Seidel
6505 West Park Blvd., Suite 306
Plano, TX 75093
214-234-2500-main
214-234-2503-direct
Email: scott@scottseidel.com
About Destiny Voice & Music Studio Inc.
Destiny Voice & Music Studio, Inc. sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No.
25-44314) on November 3, 2025, with $100,001 to $500,000 in assets
and liabilities.
Judge Mark X. Mullin presides over the case.
Robert Thomas DeMarco, Esq. represents the Debtor as legal counsel.
DIOCESE OF OAKLAND: Wins Another 2 Weeks to Continue Plan Talks
---------------------------------------------------------------
Rick Archer of Law360 reports that a California bankruptcy judge on
Wednesday, November 12, 2025, granted the Roman Catholic Diocese of
Oakland another two weeks before deciding whether to dismiss its
Chapter 11 case, citing encouraging reports from the mediator
handling plan negotiations. The mediator told the court that
discussions have reached a promising stage, describing "light at
the end of the tunnel."
The extra time is intended to help the diocese and abuse claimants
bridge remaining gaps as they work toward a consensual
restructuring plan. The diocese filed for Chapter 11 to address
hundreds of sexual abuse claims and has since been engaged in
complex settlement talks, according to Law360.
While the judge approved the short delay, he stressed that the
parties must use the time productively and show continued progress
toward resolving the case, the report relays.
About Roman Catholic Bishop Of Oakland
The Roman Catholic Bishop of Oakland, a tax-exempt religious
organization, sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 23-40523) on May 8,
2023. In the petition signed by Bishop Michael Charles Barber, the
Debtor disclosed $100 million to $500 million in both assets and
liabilities.
Judge William J. Lafferty oversees the case.
The Debtor tapped Foley & Lardner LLP as legal counsel and Alvarez
& Marsal North America, LLC as restructuring advisor. Kurtzman
Carson Consultants LLC is the Debtors' claims and noticing agent
and administrative advisor.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee tapped Lowenstein Sandler, LLP as bankruptcy counsel;
Burns Bair LLP as special insurance counsel; and Berkeley Research
Group, LLC as financial advisor.
DOLPHIN SHORES: Case Summary & Three Unsecured Creditors
--------------------------------------------------------
Debtor: Dolphin Shores Investments, LLC
5208 Carolina Beach Road
Unit 201
Wilmington NC 28412
Business Description: Dolphin Shores Investments, LLC owns 24
residential condominium units at 2252
Dolphin Shores along the Intracoastal
Waterway near Holden Beach in Supply, North
Carolina. The Company manages these units
within a gated waterfront community that
includes additional sites prepared for
future residential development and common
amenities such as a community pier, day
dock, Olympic-sized pool, clubhouse, covered
parking, and elevators.
Chapter 11 Petition Date: November 9, 2025
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 25-04467
Judge: Hon. David M Warren
Debtor's Counsel: Clayton W. Cheek, Esq.
CHEEK LEGAL, PLLC
310 Craven Street, Suite 12
New Bern NC 28560
Tel: (252) 310-4311
Email: clayton@cheeklegal.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Jeffrey Stokley, Sr., as
member/manager.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/PHI4AAA/Dolphin_Shores_Investments_LLC__ncebke-25-04467__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Three Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Inspiring Coastal Artscapes Vendor $14,800
and Landscaping, LLC
71 Reaves Way NW
Sunset Beach, NC 28412
Tel: (252) 723-2740
2. Stokley Construction Corp. Vendor $426,892
5208 Carolina Beach Road
Wilmington, NC 28412
Tel: (910) 765-1019
3. Custom Home Furnishings, LLC Vendor $224,460
Attn: Kevin Gray, Registered Agent
3514 S. College Road
Wilmington, NC 28412
Tel: (910) 799-4010
EARNSHAW DEVELOPMENT: Seeks Chapter 7 Bankruptcy in New Hampshire
-----------------------------------------------------------------
On November 10, 2025, Earnshaw Development and Construction LLC
voluntarily filed for Chapter 7 bankruptcy in the District of New
Hampshire. The case lists liabilities of $100,001–$1 million. The
company reported having between 1 and 49 creditors.
About Earnshaw Development and Construction LLC
Earnshaw Development and Construction LLC is a limited liability
company.
Earnshaw Development and Construction LLC sought relief under
Chapter 7 of the U.S. Bankruptcy Code (Bankr. D.N.H. Case No.
25-10789) on November 10, 2025. In its petition, the Debtor reports
estimated assets up to $100,000 and estimated liabilities between
$100,001 and $1 million.
The Debtor is represented byPeter N. Tamposi of The Tamposi Law
Group.
ELITE PRINTING: Court Extends Cash Collateral Access to Nov. 17
---------------------------------------------------------------
Elite Printing & Packaging Inc. received another extension from the
U.S. Bankruptcy Court for the Eastern District of Missouri to use
the cash collateral of U.S. Bank, National Association and Newtek
Bank.
The court issued an amended final order authorizing the Debtor to
use cash collateral through November 17 for post-petition expenses
listed in the approved budget, subject to a 10% variances per line
item.
As adequate protection, U.S. Bank and Newtek will receive monthly
payments and, subject to the $70,000 fee carveout, a valid and
perfected security interest in, and liens on, the cash collateral.
These liens do not apply to causes of action.
The amended final order will remain in effect until November 17 or
upon payoff of debts to the secured creditors.
The amended final order is available at https://is.gd/Icf3k2 from
PacerMonitor.com.
U.S. Bank (with loans totaling approximately $1.65 million) and
Newtek (with loans totaling approximately $2.05 million) are both
secured by liens on the Debtor's assets, including equipment,
inventory, and receivables. The Debtor also has merchant cash
advance lenders, whose liens it disputes but claims they do not
affect the current cash collateral.
U.S. Bank N.A., as secured creditor, is represented by:
Mark V. Bossi, Esq.
Thompson Coburn, LLP
One US Bank Plaza
St. Louis, MO 63101
Phone: (314)552-6000
Fax: (314) 552-7000
mbossi@thompsoncoburn.com
Newtek Bank, as secured creditor, is represented by:
Christopher D. Lee, Esq.
Sandberg Phoenix & von Gontard, P.C.
701 Market Street, Suite 600
St. Louis, MO 63101
Phone: (314) 725-9100
Fax: (314) 725-5754
clee@sandbergphoenix.com
About Elite Printing & Packaging Inc.
Elite Printing & Packaging, Inc. sought protection under Chapter 11
of the U.S. Bankruptcy Code (E.D. Mo. Case No. 25-41743) on May 5,
2025, listing up to $10 million in both assets and liabilities.
Michael K. Sloan, president of Elite Printing & Packaging, signed
the petition.
Judge Kathy A. Surratt-States oversees the case.
Spencer Desai, Esq., at The Desai Law Firm, represents the Debtor
as bankruptcy counsel.
EPIC CRUDE: Moody's Ups CFR to Ba2, Outlook Stable
--------------------------------------------------
Moody's Ratings has upgraded EPIC Crude Services, LP's (EPIC Crude)
Corporate Family Rating to Ba2 from Ba3, its probability of default
rating to Ba2-PD from Ba3-PD, its backed senior secured super
priority revolving credit facility to Baa2 from Baa3 and its backed
senior secured 1st lien term loan to Ba2 from Ba3. The outlook on
the ratings remains stable.
These rating action follows the completed acquisition of a 45%
equity interest in EPIC Crude by Plains All American Pipeline L.P.
(PAA, Baa2 stable) on November 1st, making PAA a 100% owner of EPIC
Crude.
RATINGS RATIONALE
The upgrade of EPIC Crude's ratings to Ba2 reflects its ownership
by PAA, a strategic investor and operator with strong credit
profile and significant midstream operations in the Permian Basin.
EPIC Crude's financial risks will decline, as the company realigns
its financial policies to the conservative policies of the
strategic owner, gains better access to long-term capital and
further strengthens its liquidity position. The acquisition of EPIC
Crude has strategic importance to PAA. Adding EPIC pipeline will
allow PAA to accelerate and increase synergy capture on its full
crude transportation system, including the integration of the EPIC
pipeline with its existing Cactus long-haul systems in the Permian
Basin. Governance was an important consideration on this rating
action.
PAA does not guarantee existing debt obligations of EPIC Crude,
that include senior secured $1.1 billion Term Loan B due 2031 rated
Ba2 and super-priority $125 million revolving credit facility due
2029 rated Baa2. EPIC's existing contracts and significant minimum
volume commitments provide strong visibility on its operating cash
flow supporting its debt service. EPIC Crude's Term Loan B is rated
the same as the CFR since it represents the preponderance of debt
in the capital structure. EPIC Crude's revolving credit facility is
rated Baa2 given its super-priority position and its small size
relative to the term loan.
The stable outlook on the ratings reflects EPIC Crude's strong
earnings visibility, free cash flow generation and good liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if EPIC increases revenues and EBITDA
while maintaining limited volumetric risk, and demonstrates a solid
track record of debt reduction and declining leverage approaching
4.0x.
The ratings could be downgraded if the shipper credit quality
deteriorates, volumetric risk increases, or the company increases
debt to fund expansion projects or distributions. Leverage
maintained above 5x could result in a rating downgrade.
EPIC Crude Services, LP (a subsidiary of EPIC Crude Holdings, LP),
based in Houston, Texas, is a privately owned midstream energy
business with oil pipelines running from the Permian and Eagle Ford
Basins to Corpus Christi, Texas. EPIC Crude is owned by Plains All
American Pipeline L.P. (PAA), a public master limited partnership
(MLP) operating two main operating segments: Crude oil, and natural
gas liquids.
The principal methodology used in these ratings was Midstream
Energy published in October 2025.
The net effect of any adjustments applied to rating factor scores
or scorecard outputs under the primary methodology(ies), if any,
was not material to the ratings addressed in this announcement.
FIRST BRANDS: Wins Court Approval for $1.1 Billion DIP Financing
----------------------------------------------------------------
First Brands Group, LLC, a leading global supplier of aftermarket
automotive parts, announced on November 7, 2025, that it has
received final approval from the U.S. Bankruptcy Court for the
Southern District of Texas for all of its "First Day" motions
following its Second Day Hearing held on November 6 and 7, 2025.
The Company previously received interim Court approval for all of
its First Day motions following its First Day Hearing on October 1,
2025.
The Court also granted approval to immediately access the entire
$1.1 billion in debtor-in-possession financing. Access to the full
DIP amount will ensure the Company has the capital necessary to
maintain operations and meets its commitments to customers,
employees, and partners.
"Today's Court approval marks a critical milestone for First
Brands," said Charles Moore, interim Chief Executive Officer of
First Brands. "With full access to $1.1 billion of DIP financing
and the strong support of our financial partners, we are
well-positioned to continue to bolster our inventory pipeline and
improve production and fill rates for customers. As we move
forward, we remain fully focused on enhancing operational stability
and driving a value-maximizing process that positions First Brands'
business units for long-term success."
Since voluntarily filing for chapter 11 on September 28, 2025,
First Brands has made significant progress to improve business
performance and restore the Company's reputation as a trusted
partner in the aftermarket automotive and OEM supply chain. Key
actions include:
-- Appointing a new leadership team, led by Moore, to guide First
Brands through the restructuring process
-- Transitioning out substantially all pre-petition executives who
led First Brands' day-to-day operations prior to the chapter 11
filing
-- Advancing the Special Committee's investigation into the
Company's pre-petition practices
-- Implementing new, rigorous financial controls and stronger
governance protocols
With these approvals, First Brands is moving confidently into the
next phase of its chapter 11 process. The company will continue to
focus on stabilizing operations, while developing and implementing
a long-term business plan. These efforts will position First Brands
to effectively market the business and secure a sustainable future
under new ownership that recognizes the strength of the Company's
brands, portfolio, and people.
Additional Information:
Additional information regarding First Brands' chapter 11 process
is available at https://restructuring.ra.kroll.com/firstbrands.
Stakeholders with questions may call the Company's Claims Agent,
Kroll, at (877) 631-1151 or +1 (646) 290-7146 if calling from
outside the U.S. or Canada, or email firstbrandsinfo@ra.kroll.com.
Advisors:
Weil, Gotshal and Manges LLP is serving as legal counsel, Lazard is
serving as investment banker, Alvarez & Marsal is serving as
financial advisor, and C Street Advisory Group is serving as
strategic communications advisor to First Brands Group. Gibson,
Dunn & Crutcher LLP is serving as legal counsel, Evercore is
serving as investment banker, and Huron Consulting Group is serving
as financial advisor to the Ad Hoc Group.
About First Brands Group, LLC
Rochester Hills, Mich.-based First Brands Group, LLC is a global
supplier of aftermarket automotive parts.
On September 24, 2025, the Company's non-operational special
purpose entities, Global Assets LLC, Global Lease Assets Holdings,
LLC, Carnaby Capital Holdings, LLC, Broad Street Financial
Holdings, LLC, Broad Street Financial, LLC, Carnaby Inventory II,
LLC, Carnaby Inventory Holdings II, LLC, Carnaby Inventory III,
LLC, Carnaby Inventory Holdings III, LLC, Patterson Inventory, LLC,
Patterson Inventory Holdings, LLC, Starlight Inventory I, LLC and
Starlight Inventory Holdings I, LLC each filed a voluntary petition
for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S.
Bankruptcy Court for the Southern District of Texas.
Commencing on September 28, 2025, First Brands Group, LLC and 98
affiliated debtors each filed a voluntary petition for relief under
Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court
for the Southern District of Texas. In its petition, First Brands
Group listed $1 billion to $10 billion in estimated assets and $10
billion to $50 billion in estimated liabilities.
The cases are pending before the Hon. Christopher M. Lopez, and are
jointly administered under Case No. 25-90399, and consolidated for
procedural purposes only.
The Debtors tapped Weil, Gotshal and Manges, LLP as legal counsel;
Lazard Freres & Co. as investment banker; Alvarez & Marsal North
America, LLC as financial advisor; and C Street Advisory Group as
strategic communications advisor. Kroll Restructuring
Administration, LLC is the Debtors' claims, noticing and
solicitation agent.
Gibson, Dunn & Crutcher, LLP and Evercore serve as the Ad Hoc Group
of Lenders' legal counsel and investment banker, respectively.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Wilmington Savings Fund Society, FSB, as DIP agent, is represented
by Jeffery R. Gleit, Esq., and Matthew R. Bentley, Esq., at
ArentFox Schiff, LLP, in New York; and Eric J. Fromme, Esq., in Los
Angeles, California.
FLAMINGO SEPTIC: Aaron Cohen Named Subchapter V Trustee
-------------------------------------------------------
The Acting U.S. Trustee for Region 21 appointed Aaron Cohen, Esq.,
a practicing attorney in Jacksonville, Fla., as Subchapter V
trustee for Flamingo Septic and Utilities, LLC.
Mr. Cohen will be paid an hourly fee of $315 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Cohen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Aaron R. Cohen, Esq.
P.O. Box 4218
Jacksonville, FL 32201
Tel: (904) 389-7277
Email: aaron@arcohenlaw.com
About Flamingo Septic and Utilities LLC
Flamingo Septic and Utilities, LLC, doing business as Flamingo
Plumbing, provides residential and commercial septic and plumbing
services including tank installation, pumping, inspection, repair,
and pipe or fixture maintenance in Jacksonville, Florida.
Flamingo filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04018) on November 3,
2025, with $1 million to $10 million in assets and liabilities.
Charles Mullis, manager, signed the petition.
Judge Jacob A. Brown presides over the case.
Thomas Adam, Esq., at Adam Law Group, PA represents the Debtor as
bankruptcy counsel.
FOSSIL GROUP: Restructuring Gains U.S. & U.K. Approval
------------------------------------------------------
Fossil Group, Inc., says its subsidiary, Fossil (UK) Global
Services Ltd., has received court approval in the United States and
the United Kingdom of a plan that would restructure $150 million of
unsecured notes that are near maturity but leaves equity and a
majority of its debt intact.
On Nov. 10, 2025, Fossil (UK) Global Services Ltd, was granted an
order from the High Court of Justice of England and Wales
sanctioning the restructuring plan under Part 26A of the UK
Companies Act 2006 (as amended) in respect of its 7.00% Senior
Notes due 2026.
On Nov. 12, 2025, the U.S. Bankruptcy Court for the Southern
District of Texas granted a Chapter 15 recognition order in
connection with the restructuring of the Notes.
After failing to obtain the requisite consents in an exchange
offer, Fossil in October commenced proceedings in the UK that would
cancel the existing 7.00% Senior Notes due 2026 and issue new
secured senior notes, specifically 9.500% First-Out First Lien
Secured Senior Notes and 7.500% Second-Out Second Lien Secured
Senior Notes, both due in 2029.
Fossil (UK) received UK court approval to hold in early November a
plan meeting, at which the restructuring plan was approved by the
bondholders. At least 75% in value of the notes held by creditors
at the meeting needed to vote in favor of the plan. A total of 363
creditors, representing 99.99% by value of those present and
voting, voted in favor of the restructuring.
The Nov. 12 order by the Texas Court recognizes and gives effect in
the United States to the Plan.
Fossil Group expects to distribute the securities issuable upon the
cancellation of the old notes in the next few days.
"The High Court's decision to sanction the Restructuring Plan is an
important and advanced step as we look to address Fossil's upcoming
debt maturity and provide additional liquidity to support our
turnaround plan," Franco Fogliato, Fossil's CEO, said in a
statement.
"The Fossil team remains committed to delivering strong execution
of our consumer-focused, brand-led model -- leveraging our
portfolio of iconic brands, global reach and 40-year watchmaking
heritage to drive long-term profitable growth and maximize value
for all of our stakeholders."
Fossil's restructuring attorneys, Weil, Gotshal & Manges LLP, said
this is the first time a U.S. public company has gone outside the
U.S. to conduct a restructuring of U.S.-governed debt and Fossil is
the first publicly listed U.S. company to adopt Weil's new "Stapled
Exchange" transaction.
Weil touted that in the Fossil case it has developed a
groundbreaking method for companies to restructure debt that avoids
equity cancellation, delisting and the need to address the entire
capital structure. According to the firm, the "Stapled Exchange"
surgically addresses only the part of the capital structure that
needs attention to give companies more runway to turn their
businesses around.
A copy of the document in which the terms of the Restructuring Plan
are contained, and a copy of the statement required to be furnished
pursuant to section 901D of the Companies Act 2006 are available
online through the Website https://dm.epiq11.com/fossil
About Fossil Group
Fossil Group, Inc., (NASDAQ: FOSL) is a global design, marketing
and distribution company that specializes in consumer fashion
accessories. Under a diverse portfolio of owned and licensed
brands, its offerings include men's and women's fashion watches and
jewelry, handbags, small leather goods, belts and sunglasses. Its
brands include Fossil, Skagen, Relic and Zodiac and its licensed
names include Armani Exchange, Diesel, Michael Kors, Tory Burch,
and Kate Spade. On the Web: http://www.fossilgroup.com/
Fossil (UK) Global Services Ltd., a subsidiary, supports the
company's European operations, handling distribution, logistics,
and administrative functions for its retail and wholesale network
across the region.
Fossil Group reported $704.5 million in total assets against $570.6
million in total liabilities as of July 5, 2025.
The company recorded a $19.9 million loss on net sales of $453.7
million for the 27 weeks ended July 5, 2025, compared with a net
loss of $63.2 million on net sales of $514.9 million for the 26
weeks ended June 29, 2024.
After filing to receive the required minimum of at least 90% of
valid tenders to exchange its $150 million of unsecured notes,
Fossil Group's subsidiary Fossil (UK) Global Servies Ltd. on Oct.
15, 2025, commenced before the High Court of Justice, Business and
Property Courts of England and Wales proceeding under the Companies
Act 2006 of England and Wales to seek approval of a plan that would
restructure its 7.00% Senior Notes due 2026.
Mr. Justice Cawson granted an order approving the application of
Fossil (UK) to convene a meeting of the holders of the notes.
Fossil (UK) on Oct. 20, 2025, filed a Chapter 15 bankruptcy
petition at a bankruptcy court in Houston, Texas (Bankr. S.D. Tex.
Case No. 25-90525) to seek recognition of the UK proceeding. The
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
On Nov. 10, 2025, the High Court of Justice of England and Wales
approved Fossil’s plan in the United Kingdom. Two days later,
the Bankruptcy Court for the Southern District of Texas entered an
order recognizing and giving effect to a groundbreaking U.K.
restructuring plan
The Weil Gotshal And Manges team advising Fossil is led by
Restructuring Department Co-Chair Sunny Singh and partner Gary
Holtzer and includes Restructuring associates Phil DiDonato,
Alexandra Langmo, Joe Sullivan and Immanuel Vorbach (Not Yet
Admitted in New York); Capital Markets partners Frank Adams and
Corey Chivers and associates Michael Cremers, Emma McBride, Andrene
Loiten and Evan Caltavuturo; Co-Head of Weil’s Governing,
Securities & Reporting Group Lyuba Goltser and partner Adé
Heyliger; Banking & Finance partner Vynessa Nemunaitis and
associates Angela Estrada and Emma Xing (Not Yet Admitted in New
York); U.K. Restructuring partners Andrew Wilkinson and Gemma Sage,
counsel Kirsten Erichsen and associates Kyle McLachlan and Rupert
Balfe (Not Yet Admitted in U.K.); U.K. Litigation partner Jamie
Maples, counsel Frankie Cowl and Rosalind Meehan and associates
Craig Watson, Reece Williams and Dhru Vyas (Not Yet Admitted in the
U.K.); U.K. Tax counsel Stuart Pibworth and associate Anna Ritchie;
and Tax partners Stuart Goldring and Graham Magill and counsel Adam
Sternberg.
Epiq Corporate Restructuring, LLC, is the information agent in
respect on the Restructuring Plan.
FOSSIL GROUP: Weil Gotshal Touts Groundbreaking "Stapled Exchange"
------------------------------------------------------------------
As distressed companies seek to strengthen their capital structures
without the stigma of chapter 11, the firm Weil Gotshal and Manges
has developed a groundbreaking method for companies to restructure
debt that avoids equity cancellation, delisting and the need to
address the entire capital structure. Instead, this new approach
surgically addresses only the part of the capital structure that
needs attention to give companies more runway to turn their
businesses around.
Weil's new "Stapled Exchange" was developed through the Firm's work
for Fossil Group, a U.S. retailer with brands including Fossil,
Skagen, Relic and Zodiac and licensed names like Armani Exchange,
Diesel, Michael Kors, Tory Burch, and Kate Spade. Fossil faced a
debt issue: unsecured "baby bonds" held in $25 increments in
approximately 1,500 separate accounts.
Doing an out-of-court exchange with that many small holders would
have been almost impossible, and chapter 11 was too harsh a remedy
since the company was already in an operational turnaround that was
gaining traction.
Weil designed Stapled Exchange as a way to target Fossil's debt by
taking its restructuring to the U.K., combining an exchange offer
with a backstop U.K. Restructuring Plan to address maturities and
bind holdouts. If enough holders exchanged, court proceedings were
avoided; if not, the U.K. plan proceeded. The approach mirrors
stapling a prepackaged chapter 11 filing to a U.S. exchange offer,
but here tied to a U.K. plan.
This is the first time a U.S. public company has gone outside the
U.S. to conduct a restructuring of U.S.-governed debt and Fossil is
the first publicly listed U.S. company to adopt the Stapled
Exchange. Similar transactions have occurred in Europe before,
where companies changed their "center of main interest" to England,
or another jurisdiction to access that regime.
On November 10, 2025, the High Court of Justice of England and
Wales approved Fossil's plan in the United Kingdom. Shortly
thereafter, on November 12, the Bankruptcy Court for the Southern
District of Texas entered an order recognizing and giving effect to
the U.K. plan under chapter 15 of the bankruptcy code, enabling
enforcement of the U.K. plan in the United States. The U.K. permits
third-party releases, and chapter 15 recognition makes them
enforceable in the U.S. (despite recent U.S. rulings in the chapter
11 context).
Stapled Exchange has cross-border applicability around the world.
Companies could also elect to staple a U.K. Scheme of Arrangement
to an exchange offer (a "Stapled Scheme Exchange" or "SSE"). While
Singapore seeks to attract more restructuring work, England remains
preferred for consistency and case law. Under the "law of Gibbs,"
English courts control contracts governed by English law. Stapled
Exchange and SSE also appeal to Latin American and Asian companies
with New York law bonds and family ownership, since they preserve
equity while fixing debt.
The Weil team advising Fossil is led by Restructuring Department
Co-Chair Sunny Singh and partner Gary Holtzer and includes
Restructuring associates Phil DiDonato, Alexandra Langmo, Joe
Sullivan and Immanuel Vorbach (Not Yet Admitted in New York);
Capital Markets partners Frank Adams and Corey Chivers and
associates Michael Cremers, Emma McBride, Andrene Loiten and Evan
Caltavuturo; Co-Head of Weil's Governing, Securities & Reporting
Group Lyuba Goltser and partner Adé Heyliger; Banking & Finance
partner Vynessa Nemunaitis and associates Angela Estrada and Emma
Xing (Not Yet Admitted in New York); U.K. Restructuring partners
Andrew Wilkinson and Gemma Sage, counsel Kirsten Erichsen and
associates Kyle McLachlan and Rupert Balfe (Not Yet Admitted in
U.K.); U.K. Litigation partner Jamie Maples, counsel Frankie Cowl
and Rosalind Meehan and associates Craig Watson, Reece Williams and
Dhru Vyas (Not Yet Admitted in the U.K.); U.K. Tax counsel Stuart
Pibworth and associate Anna Ritchie; and Tax partners Stuart
Goldring and Graham Magill and counsel Adam Sternberg.
About Fossil Group
Fossil Group, Inc., is a global design, marketing and distribution
company that specializes in consumer fashion accessories. Under a
diverse portfolio of owned and licensed brands, its offerings
include men's and women's fashion watches and jewelry, handbags,
small leather goods, belts and sunglasses. Its brands include
Fossil, Skagen, Relic and Zodiac and its licensed names include
Armani Exchange, Diesel, Michael Kors, Tory Burch, and Kate Spade.
On the Web: http://www.fossilgroup.com/
Fossil (UK) Global Services Ltd., a subsidiary, supports the
company’s European operations, handling
distribution, logistics, and administrative functions for its
retail and wholesale network across the region.
Fossil Group's subsidiary Fossil (UK) Global Servies Ltd. on Oct.
15, 2025, commenced before the High Court of Justice, Business and
Property Courts of England and Wales proceeding under the Companies
Act 2006 of England and Wales to seek approval of a plan that would
restructure $150 million in unsecured notes. Mr. Justice Cawson
granted an order approving the application of Fossil (UK) to
convene a meeting of the holders of the notes.
Fossil (UK) on Oct. 20, 2025, filed a Chapter 15 bankruptcy
petition at a bankruptcy court in Houston, Texas (Bankr. S.D. Tex.
Case No. 25-90525) to seek recognition of the UK proceeding. The
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
On Nov. 10, 2025, the High Court of Justice of England and Wales
approved Fossil’s plan in the United Kingdom. Two days later,
the Bankruptcy Court for the Southern District of Texas entered an
order recognizing and giving effect to a groundbreaking U.K.
restructuring plan
The Weil Gotshal and Manges team advising Fossil is led by
Restructuring Department Co-Chair Sunny Singh and partner Gary
Holtzer and includes Restructuring associates Phil DiDonato,
Alexandra Langmo, Joe Sullivan and Immanuel Vorbach (Not Yet
Admitted in New York); Capital Markets partners Frank Adams and
Corey Chivers and associates Michael Cremers, Emma McBride, Andrene
Loiten and Evan Caltavuturo; Co-Head of Weil’s Governing,
Securities & Reporting Group Lyuba Goltser and partner Adé
Heyliger; Banking & Finance partner Vynessa Nemunaitis and
associates Angela Estrada and Emma Xing (Not Yet Admitted in New
York); U.K. Restructuring partners Andrew Wilkinson and Gemma Sage,
counsel Kirsten Erichsen and associates Kyle McLachlan and Rupert
Balfe (Not Yet Admitted in U.K.); U.K. Litigation partner Jamie
Maples, counsel Frankie Cowl and Rosalind Meehan and associates
Craig Watson, Reece Williams and Dhru Vyas (Not Yet Admitted in the
U.K.); U.K. Tax counsel Stuart Pibworth and associate Anna Ritchie;
and Tax partners Stuart Goldring and Graham Magill and counsel Adam
Sternberg.
Epiq Corporate Restructuring, LLC, is the information agent in
respect on the Restructuring Plan.
GALBREATH RESTAURANT: L. Todd Budgen Named Subchapter V Trustee
---------------------------------------------------------------
The Acting U.S. Trustee for Region 21 appointed L. Todd Budgen,
Esq., a practicing attorney in Longwood, Fla., as Subchapter V
trustee for Galbreath Restaurant Group, LLC.
Mr. Budgen will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Budgen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
L. Todd Budgen, Esq.
P.O. Box 520546
Longwood, FL 32752
Tel: (407) 232-9118
Email: Todd@C11Trustee.com
About Galbreath Restaurant Group LLC
Galbreath Restaurant Group, LLC, operating as Goodrich Seafood &
Oyster House, runs a seafood restaurant at 253 River Road in Oak
Hill, Florida. The business traces its roots to 1910 when the
Goodrich family began wholesale and retail seafood operations,
including blue crab processing, and has evolved over successive
generations to comply with modern seafood handling regulations. The
company maintains small-scale local operations with a focus on
restaurant service.
Galbreath Restaurant Group filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
25-07137) on November 3, 2025, with $18,103 in assets and
$1,247,579 in liabilities. Karyn McNamara, manager, signed the
petition.
Judge Grace E. Robson presides over the case.
Jeffrey S. Ainsworth, Esq., at BransonLaw, PLLC represents the
Debtor as bankruptcy counsel.
GARDA WORLD: Fitch Assigns 'BB' Rating on New Senior Secured Notes
------------------------------------------------------------------
Fitch Ratings assigned a 'BB' rating with a Recovery Rating of
'RR2' to Garda World Security Corporation's (Garda) proposed senior
secured note issuance. Fitch currently rates Garda's Long-Term
Issuer Default Rating (IDR) at 'B+', the senior secured credit
facilities and notes at 'BB'/'RR2' and senior unsecured notes at
'B-'/'RR6'. The Rating Outlook is Stable.
The ratings consider Garda's highly recurring revenue model and
flexible cost structure which help it maintain financial
flexibility. Its track record of growth, improving size, scale, and
diversification, also enhances its ability to support strategic
growth opportunities via cash flow. The ratings also consider
growth-oriented capital allocation policies that lead to EBITDA
interest coverage sustained around low 2.0x, while leverage is
likely to remain in the mid-6x or below range over the long term.
Fitch weighs Garda's solid growth profile against the investment
impacts on financial flexibility and capital structure to support
growth.
Key Rating Drivers
New Notes Rated 'BB'/'RR2': Garda plans to issue new senior secured
notes with a tenor of six years which will be used to refinance the
existing USD 570 million of senior secured bonds due 2026. Fitch
expects the transaction to be leverage-neutral; it therefore will
not affect the IDR. The new bonds are expected to be pari passu
with Garda's existing senior secured debt rated 'BB'/'RR2.
Recurring Revenue Services: Garda's ratings benefit from the
stable, recurring nature of its security and cash management
services. As with peers with similar ratings and stable cash flows,
this offsets credit metrics that are weaker than typical 'B+'
levels. Security services, which make up the largest proportion of
revenue, are fairly insulated from fluctuating customer activity
and are more dependent on how many locations remain open. Contract
lengths with customers vary but are typically multiyear for
government and infrastructure-related customers.
The cash-management segment benefits from multiyear contracts, with
revenue tied to the number of services stops and monthly fees
instead of the monetary value of cash-in-transit. Despite
proliferating non-cash payment methods, the balance of cash in
circulation globally continues to rise; in periods of economic
weakness, cash balances tend to grow more quickly.
Visibility to FCF, Financial Flexibility: Strengthening FCF adds to
Garda's financial flexibility, a priority for management, as it
aims to continue its growth investment. Fitch forecasts FCF of
about CAD 40 million in FY26 supported by strong cash flow in 2H26
from a temporary working capital unwind. This is expected to fund
about CAD 140 million of revolver paydown, reducing utilization to
around 20%. Subsequently, a more normalized pace of growth
investments and extraordinary items is expected to support
CFO-capex/debt of about 2%-3%.
Low-2x Coverage, Mid-6x Leverage: Fitch forecasts interest coverage
to rise to the low-2.0x in FY27 and thereafter, exceeding sub-2.0x
levels in FY24-FY26 as solid growth and lower growth investment
burdens reduce debt financing needs. EBITDA leverage is expected to
follow a similar trend, easing to the mid-to-high 6.0x across in
FY26-FY27.
EBITDA Growth Continues: Garda's consistent organic growth is
partly due to its service reliability as well as the proliferation
of complementary technology products in its intelligent devices and
video monitoring. The company has various large service contracts
starting in FY26 and expects to ramp up product deliveries.
Existing new business wins increase visibility for FY27 growth.
Fitch-calculated EBITDA is expected to reach CAD 1.0 billion in
FY26, up from CAD 840 million in FY25, and CAD 1.1 billion in FY27.
Fitch anticipates limited execution risks, given the number of
contracts in place and familiarity with operational needs.
Favorable Competitive and Market Position: GW's reported customer
retention rates, in the mid-90% range or higher, indicate market
strength. GW typically holds a top-three position in its geographic
markets, with strength in Canada. Although the fragmented security
services market presents low barriers to entry, GW's management of
a large workforce able to service large, multilocation customers
has supported its market position.
Peer Analysis
Fitch compares Garda with cash-management peer The Brink's Company
(BCO; BB+/Stable) and other personnel-heavy transportation
companies such as First Student BidCo, Inc. (BB-/Stable) and Waste
Pro USA Inc. (WP; B+/Stable). Fitch expects Garda and these three
peers to benefit from fundamentally steady demand and earnings
profiles due to the highly recurring and contracted nature of their
respective business models.
The group of companies also has a good degree of cost structure
flexibility due to their labor-oriented business models.
Comparatively, WP has a significantly more concentrated service
region, focused on the southeastern U.S. and a relatively smaller
market share within its industry.
BCO's rating reflects its stable and consistently positive FCF and
expectation that leverage declines to the mid-to-high 3.0x range in
the medium term. Garda's EBITDA leverage, forecast in the
mid-to-high 6.0x, is higher than First Student's EBITDA leverage in
the high 4.0x to low 5.0x range, and WP's EBITDA leverage is
expected to be 4.5x-5.0x over the long term. WP's growth
investments weigh on its FCF generation; however, this concern is
mitigated by the visibility of its revenue and cost structures.
Key Assumptions
- Strong organic growth driven by new contract wins in security
services, delivery of security products and executive protection,
supplemented by completed M&A activity in FY26;
- Organic growth moderates but remains healthy in the mid-single
digits, supporting EBITDA around CAD 1.0 billion to CAD 1.1 billion
in FY26-FY27;
- Extraordinary costs persist but are largely linked to growth
investment, leading to total other operating cash costs of about
CAD 115 million in FY26
- Garda realizes pent-up working capital benefits in 2H26, adding
around CAD 125 million to cash flow in FY26, before sustaining a
moderate level of growth investment;
- Capital allocation favors M&A and growth investment, and no
meaningful debt repayment is assumed;
- SOFR rates remain in the 4%-5% range through the forecast
period.
Recovery Analysis
The recovery analysis assumes that Garda would be reorganized as a
going concern (GC) in bankruptcy rather than liquidated. Fitch has
assumed a 10% administrative claim.
Fitch estimates a GC EBITDA of CAD 800 million, reflecting pro
forma adjustments for acquisitions. The GC EBITDA estimate reflects
Fitch's view of a sustainable, post-reorganization EBITDA level,
upon which Fitch bases the enterprise valuation. This estimate
reflects a potential weakening in the cash services market and
increased competitiveness in the security services market. It also
reflects the corrective measures taken in reorganization to offset
the adverse conditions that triggered default, such as
cost-cutting, contract repricing and industry recovery.
Fitch assumes a GC recovery multiple of 6.0x. The multiple reflects
Garda's valuation when BC Partners invested in fiscal 2020 at about
10x EBITDA, publicly traded peers around 10x, and acquisition
multiples ranging from under 5.0x to about 10x across the security
services and cash management sectors.
The recovery analysis assumes that secured credit facilities are
senior in the recovery waterfall to the unsecured notes. This
results in a 'BB' rating and a Recovery Rating of 'RR2' for the
senior secured credit facilities and a 'B-' rating and a Recovery
Rating of 'RR6' on the senior unsecured notes.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- Fitch-calculated EBITDA leverage sustained above the mid-6.0x
range;
- Fitch-calculated EBITDA interest coverage sustained below 2.0x;
- An inability to generate FCF that heightens liquidity and
refinancing risks.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- A change in financial and capital allocation policy that supports
EBITDA leverage sustained below 5.5x;
- Improved cash flow generation supports FCF margins sustained
above the low single digits.
Liquidity and Debt Structure
Garda's liquidity as of July 31, 2025 consisted of CAD 181 million
of cash and CAD 288 million of availability under its USD 530
million revolving credit facilities. Garda's near-term maturities
are limited. The term loan amortizes at 1% per year and the next
scheduled maturity is the revolving credit facility in January
2028.
Fitch has assigned 50% equity credit to Garda's CAD 300 million of
preferred stock. Fitch views the preferred stock as a hybrid
instrument as it is issued within the rated entity by Garda,
subordinated to senior debt, and has a cash-pay cumulative
dividend. There are no default or cross-default provisions linking
the preferred stock and Garda's debt.
Issuer Profile
Garda World Security Corporation is a privately held Canadian cash
logistics and security firm with over 120,000 employees worldwide.
It is majority employee-owned, with a significant minority stake
held by private equity firm BC Partners.
Date of Relevant Committee
13-Jul-2025
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Sector Forecasts Monitor
data file which aggregates key data points used in its credit
analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery
----------- ------ --------
Garda World Security
Corporation
senior secured LT BB New Rating RR2
GENTLE HAND: Updates Several Secured Claims Pay Details
-------------------------------------------------------
Gentle Hand, LLC submitted a First Amended Plan of Reorganization
dated November 4, 2025.
This Plan provides for 8 classes of secured claims, and 1 class of
equity security holders.
Class 1 consists of the Allowed Secured Claim of ELF. This Claim is
secured by a perfected first lien on the ELF Collateral. The Class
1 Secured Claim is $1,019,932.13, plus post-judgment interest
($14,062.40) and post-petition interest ($40,656.10 based on
confirmation on November 12, 2025) and post-petition attorney's
fees and costs (est. at $32,000) as provided herein, all of which
is hereby and shall be allowed in full in the amount of
$1,106,650.63 as the Class 1 "Secured Claim." This Class is
Impaired.
The Class 1 Claim shall be allowed in full as stated herein. The
Class 1 Claim portion of $1,033,944.53 shall be amortized over
fifteen years and paid in monthly principal and interest
installments at the rate of 9.5% per annum. Accordingly, the
Reorganized Debtor shall make fifty-nine equal monthly payments of
principal and interest in the amount of $10,796.70. Debtor shall
pay the monthly payments on or before the first day of each month,
beginning with the first payment being due on or before December 1,
2025 (for payment in arrears for November 2025) and continuing each
month thereafter for a total of 59 monthly payments. A final
balloon payment in the amount of $838,540.62 shall be due on or
before the expiration of the sixtieth month following the entry of
the Confirmation Order (plus any other obligation otherwise due).
Additionally, for the first thirty-six months commencing with the
First Payment, Debtor shall pay $2,000.00 per month toward ELF's
post-petition interest and attorneys' fees, payable concurrently
with each monthly payment. Further, Debtor shall strictly abide by
the payment schedule, as to all real property taxes owed in
connection with the ELF Collateral.
The Debtor waives any right to modify ELF's Plan treatment in this
or any subsequent bankruptcy proceeding. Any future bankruptcy of
Debtor seeking to alter the treatment provided to ELF under this
Plan shall constitute and be deemed a bad faith filing and scheme
to hinder, delay and defraud ELF under 362(d)(4), which shall
entitle ELF to immediate stay relief and dismissal on an expedited
basis, which shall be authorized, approved and directed by the
Court in the Confirmation Order pursuant to Section 362 (d)(4) and
Section 105 of the Bankruptcy Code.
Class 2 consists of the Secured Claim of BCTC represented by Claim
Number 2. This Claim is secured by lien on the BCTC (826)
Collateral. The Class 2 Secured Claim is approximately $8,601.24,
less payments made pre-confirmation. This Class is Unimpaired. The
Debtor shall pay Class 2 on or before February 15, 2026.
Class 4 consists of the Secured Claim of Pickles represented by
Claim Number 1. This Claim is secured by a lien on the Pickles
Collateral. The Class 4 Secured Claim is approximately $9,944.16,
less payments made pre-confirmation. This Class is Unimpaired. The
Debtor shall pay Class 4 in full on or before January 15, 2026.
Except as explicitly set forth in this Plan, all cash in excess of
operating expenses generated from operation until the Effective
Date will be used for Plan Payments or Plan implementation, cash on
hand as of Confirmation shall be available for Administrative
Expenses.
A full-text copy of the First Amended Plan dated November 4, 2025
is available at https://urlcurt.com/u?l=AGzggw from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Jeffrey S. Ainsworth, Esq.
Jennifer L. Morando, Esq.
BransonLaw, PLLC
1501 East Concord Street
Orlando, Florida 32803
Telephone: (407) 894-6834
Facsimile: (407) 894-8559
E-mail: jeff@bransonlaw.com
E-mail: jennifer@bransonlaw.com
About Gentle Hand LLC
Gentle Hand LLC, doing business as Gentle Hand of Palm Bay ALF,
LLC, operates an assisted living facility in Palm Bay, Florida. It
provides residential care services in a licensed setting with a
six-bed capacity.
Gentle Hand sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-03727) on June
17, 2025. In its petition, the Debtor reported total assets of
$2,060,651 and total liabilities of $1,015,547.
Judge Lori V. Vaughan handles the case.
The Debtor is represented by Jeffrey S. Ainsworth, Esq., at
BransonLaw, PLLC.
GOHAR INC: Matthew Brash of Newpoint Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Region 11 appointed Matthew Brash of Newpoint
Advisors Corporation as Subchapter V trustee for Gohar Inc.
Mr. Brash will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Brash declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Matthew Brash
Newpoint Advisors Corporation
655 Deerfield Road, Suite 100-311
Deerfield, IL 60015
Tel: (847) 404-7845
About Gohar Inc.
Gohar Inc., a company operating in the restaurant industry, filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. N.D. Ill. Case No. 25-16980) on November 2, 2025. In its
petition, the Debtor reported up to $100,000 in assets and between
$100,001 and $1 million in liabilities.
Honorable Bankruptcy Judge David D. Cleary handles the case.
The Debtor is represented by David Freydin, Esq., at the Law
Offices of David Freydin Ltd.
GRACE LIMOUSINE: May 4 Governmental Claims Bar Date
---------------------------------------------------
On November 3, 2025, Grace Limousine LLC voluntarily filed for
Chapter 11 bankruptcy in the District of New Hampshire. The
petition shows the company's liabilities between $1 million and $10
million, and 1 to 49 creditors.
The deadline for filing government claims is on May 4, 2026.
About Grace Limousine LLC
Grace Limousine LLC is a limited liability company.
Grace Limousine LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.H. Case No. 25-10775) on November 3,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Kimberly Bacher handles the case.
The Debtor is represented by Matthew J. Delude, Esq. of Bernstein,
Shur, Sawyer & Nelson, PA.
GRAHAM HOLDINGS: S&P Rates New $500MM Senior Unsecured Notes 'BB'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating and '3'
recovery rating to Graham Holdings Co.'s proposed $500 million
senior unsecured notes due 2033. The '3' recovery rating indicates
its expectation for meaningful (50%-70%; rounded estimate: 65%)
recovery for lenders in the event of a payment default. The company
also plans to increase the borrowing capacity on its revolving
credit facility (not rated) to $400 million from $300 million and
extend its maturity to 2030.
Graham plans to use proceeds from the transaction, including about
$100 million drawn on the revolving facility at close to repay the
$135 million outstanding balance on its term loan A and its
existing $400 million unsecured notes due 2026. The transaction is
leverage neutral, with S&P Global Ratings-adjusted leverage of
about 2.6x-2.8x. S&P's 'BB' issuer credit rating and stable outlook
on Graham remain unchanged.
Issue Ratings--Recovery Analysis
Key analytical factors
-- Graham's proposed capital structure consists of a $400 million
revolving credit facility maturing in 2030 (not rated), $500
million of senior unsecured notes maturing in 2033, a $93 million
(outstanding) real estate term loan maturing in 2028 (not rated), a
$66 million (outstanding) capital loan maturing in 2028 (not
rated), and $10.6 million of other debt held within the company's
health care group (not rated).
-- Graham's $500 million senior notes are guaranteed, jointly and
severally, on a senior unsecured basis, by certain of the company's
existing and future domestic subsidiaries.
-- S&P assumes the collateral value of Graham's health assets
(about 20% of consolidated EBITDA) would first be distributed to
the holders of the company's other debt that sits within its health
care group.
-- S&P assumes the collateral value of the company's auto assets
(about 15% of consolidated EBITDA) would first be distributed to
the holders of Graham's $93 million real estate term loan, and $66
million capital term loan.
-- S&P's analysis assumes the collateral package for the $500
million senior unsecured notes consists of substantially all of
Graham's non-health and non-auto assets in the U.S., the remaining
value of the health and auto assets after distributions to the
secured debt holders and a pledge of 65% of the stock of its
first-tier foreign subsidiaries (about 20% of total EBITDA). Its
recovery valuation reflects this
obligor/nonobligor/nonobligor/nonobligor four-way split.
-- S&P limits its recovery ratings on the unsecured debt issued by
companies it rates in the 'BB' category at '3' to reflect its
expectation that the lenders' recovery could be impaired by the
addition of significant pari passu or priority debt on the path to
default.
Simulated default assumptions
-- Graham's significant cash balances and marketable securities
make a default scenario unlikely. S&P's simulated default in 2030
contemplates a deterioration in the company's broadcast and
education segments, likely from increased competition and brand
impairment, as well as liquidity issues due to a series of
unsuccessful acquisitions that significantly weaken its cash flow
and deplete its cash balances.
-- Other default assumptions include an 85% draw on the revolving
credit facility. The spread on the revolving credit facility rises
to 5% as Graham obtains covenant amendments. All debt includes six
months of prepetition interest.
-- S&P values the company on a going-concern basis using a 5.5X
multiple of its projected emergence EBITDA, which is 0.5x below its
education peers and in line with its broadcast peers of similar
size and business strength.
Simplified waterfall
-- EBITDA at emergence: $183 million
-- EBITDA multiple: 5.5x
-- Gross enterprise value: $1.0 billion
-- Net enterprise value (after 5% administrative costs): $958
million
-- Valuation split (obligor/nonobligor/nonobligor/nonobligor):
45%/20%/20%/15%
-- Value available for senior unsecured debt claims: $826 million
-- Estimated senior unsecured debt claims: $873 million
--Recovery expectations: Capped at 50%-70% (rounded estimate:
65%)
HEALTHIER CHOICES: Reports $2.1 Million Net Loss in 2025 Q3
-----------------------------------------------------------
Healthier Choices Management Corp. filed with the U.S. Securities
and Exchange Commission its Quarterly Report on Form 10-Q reporting
a net loss of $2.1 million and $1.9 million for the three months
ended September 30, 2025 and 2024, respectively.
For the nine months ended September 30, 2025 and 2024, the Company
reported a net loss of $6.3 million and $9.7 million,
respectively.
Net sales for the three months ended September 30, 2025 and 2024,
were $199 and $52, respectively. For the nine months ended
September 30, 2025 and 2024, the Company had net sales of $2,979
and $345, respectively.
The Company currently and historically has reported net losses and
cash outflows from operations. As of September 30, 2025, the
Company had cash and cash equivalent of approximately $1.1 million
and negative working capital of $3.5 million. The Company had an
accumulated deficit of $81.3 million as of September 30, 2025.
The Company's liquidity needs through September 30, 2025 have been
satisfied through financing agreement with private lenders.
Management has made plans to reduce certain costs and raise needed
capital, however there can be no assurance the Company can
successfully implement these plans. The success of these plans is
dependent upon various factors, foremost being the ability to
reduce outside consulting expenses and the ability to secure
additional capital from outside investors. There can be no
assurance that such plans will be successful.
The Company believes its cash on hand and its ability to draw on
its $5 million line of credit will enable the Company to meet its
obligations and capital requirements for at least the twelve months
from the date as of September 30, 2025. Accordingly, no adjustment
has been made to the financial statements to account for this
uncertainty.
As of September 30, 2025, the Company had $1.5 million in total
assets, $4.9 million in total liabilities, and $4.4 million in
total stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/2c845rdh
About Healthier Choices Management
Hollywood, Fla.-based Healthier Choices Management Corp. is a
holding company focused on providing consumers with healthier daily
choices with respect to nutrition and other lifestyle alternatives.
Through its wholly owned subsidiary HCMC Intellectual Property
Holdings, LLC, the Company manages its intellectual property
portfolio.
As of June 30, 2025, the Company had $1.5 million in total assets,
$3.9 million in total liabilities, and $3.5 million in total
stockholders' deficit. As of September 30, 2025, the Company had
$1.5 million in total assets, $4.9 million in total liabilities,
and $4.4 million in total stockholders' deficit.
Diamond Bar, Calif.-based TAAD LLP, the Company's auditor since
2025, issued a "going concern" qualification in its report dated
April 14, 2025, attached to the Company's Annual Report on Form
10-K for the year ended December 31, 2024, citing that the Company
has incurred recurring net losses and operations have not provided
cash flows. These factors, among others, raise substantial doubt
about the Company's ability to continue as a going concern.
HERON BIDCO: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
SS&P Global Ratings assigned its 'B' issuer credit rating to Heron
Bidco LLC (known as Heidrick & Struggles). At the same time, S&P
assigned its 'B' issue-level rating and '3' recovery rating to the
proposed senior secured credit facility. The recovery rating
indicates its expectation for meaningful (50%-70%; rounded estimate
50%) recovery for lenders in the event of a payment default.
The stable outlook reflects S&P's expectation that Heron Bidco LLC
will maintain S&P Global Ratings-adjusted leverage in the mid-5x
area and achieve organic revenue growth despite macroeconomic
challenges in the staffing industry.
On Oct. 6, 2025, Heidrick & Struggles entered into a definitive
agreement with a group of investors led by private equity sponsors
Advent International and Corvex Private Equity to be acquired and
taken private at $59.00 per share.
As part of the transaction, the company will issue a $700 million
senior secured credit facility comprising of a $550 million
first-lien term loan due 2032, and a $150 million revolving credit
facility due 2030.
S&P said, "We assigned our 'B' issuer credit rating to Heron Bidco
LLC. The rating reflects the company's elevated debt levels,
financial sponsor ownership, and the vulnerability of its operating
performance to economic cycles. These factors are somewhat offset
by the company's strong market position in the highly fragmented
executive search industry, its geographic and industry
diversification, as well as our expectation for solid revenue
growth and cash flow generation in future periods despite the
continued risk of economic challenges.
"The rating also reflects our view of the highly cyclical nature of
the staffing industry. Heron Bidco LLC operates in the cyclical
staffing industry, which has experienced demand impacts due to
macro-economic challenges for the last couple of years. The
company's LTM Q3 revenue mix consists of approximately 83% in
Executive Search, 11% Consulting, and 6% On-Demand. While we
believe it continues to face the risk of economic challenges, we
expect the executive search business will remain resilient compared
to temporary staffing peers in a long-tong term economic downturn.
The company has delivered strong revenue growth of approximately
11% through the first nine-months of 2025 due to increased hiring
of consultants, wage inflation, and the continued growth of the
On-Demand and Consulting business. The company is an asset-lite
business which has a highly variable cost structure that gives the
company the ability to minimize cost.
"While the company has a strong market position, we believe it has
limited ability to increase its take-rate as pricing has remained
stable in the industry. Heron Bidco LLC's take rate of
approximately 33% of first-year cash compensation has remained
unchanged for several years and is the standard fee across the
industry. However, we would expect the company to benefit from wage
inflation and potential displacement in the market.
"We view the company's financial risk as highly leveraged, which
reflects our expectation of leverage in the mid 5x area over the
next 12 months. We view this as high but adequate for the current
rating. We forecast organic revenue growth of approximately 5% in
2026 because we expect the company to continue its strategy of
growing its sales base and increasing the average revenue per
search. We expect modest deleveraging to the low- to mid-5x area in
2026 as the result of incremental EBITDA growth.
"We except S&P Global Ratings-adjusted margins will remain between
10%-12% over the next couple of years. The company has been
significantly growing its On-Demand and Consulting businesses over
the past several years. However, these business units have
generated negligible EBITDA and therefore have negatively affected
margins in recent years. Additionally, the company has continued to
increase headcount in its executive search business despite
macroeconomic challenges. While we do not expect material margin
growth in the near term, we believe there is opportunity to expand
margins as management continues to work-through synergies between
the business segments.
"We view the financial sponsor ownership as an increased risk
because we believe financial sponsors are more likely to engage in
debt-funded acquisitions and shareholder returns. While our
base-case scenario does not include any acquisitions or dividends,
we believe the financial-sponsor ownership increases the likelihood
of a financial policy that will limit the company's ability to
deleverage. Nevertheless, we expect the company to benefit from low
capital expenditure (capex) requirements and generate sufficient
free cash flow.
"The stable outlook reflects our expectation that Heron Bidco LLC
will maintain S&P Global Ratings-adjusted leverage in the mid-5x
area and achieve organic revenue growth despite macroeconomic
challenges in the staffing industry."
S&P could lower the rating on Heron Bidco LLC if leverage exceeds
6X and FOCF/Debt remains below 5% on a sustained basis: This could
occur if:
-- Revenue declines due to macroeconomic headwinds decreasing
demand in the executive search industry, its pricing power weaken
because of increased competition, or an unfavorable labor market or
the loss of key clients; or
-- Aggressive financial policy that results in debt-funded
acquisitions or shareholder returns.
S&P views an upgrade as unlikely over the next 12 months. However,
S&P could raise its rating on the company over the longer term if:
-- A track record of conservative financial policy, which would
lead S&P to believe that S&P Global Ratings-adjusted leverage will
remain below 5x on a sustained basis; and
-- The company is able to achieve free operating cash flow (FOCF)
to debt of above 10% on a sustained basis.
HOMES NOW: Plan Exclusivity Period Extended to November 25
----------------------------------------------------------
Judge Brenda T. Rhoades of the U.S. Bankruptcy Court for the
Eastern District of Texas extended Homes Now LLC's exclusive
periods to file a plan of reorganization and obtain acceptance
thereof to November 25, 2025 and January 24, 2026, respectively.
As shared by Troubled Company Reporter, the Debtor explains that,
together with its retained broker, it is actively evaluating the
economic impact of the Fed's rate cut on housing demand and
pricing, as well as expected marketing and sale timelines.
Additional time is needed to thoroughly assess how the decline in
borrowing costs may affect transaction values and to adjust sale
strategies appropriately to maximize recovery for creditors and the
estate.
Accordingly, the Debtor requires an extension of the exclusivity
period, not only to resolve pending motions for relief from stay
and finalize property marketing, but also to respond prudently to
these major changes in national monetary policy, which directly
impact the Debtor's ability to formulate an effective Chapter 11
plan based on the latest real estate market dynamics.
The Debtor claims that its motives in this case are proper.
Granting the requested extension of the Exclusivity Periods in this
instance would not give the Debtor any unfair bargaining leverage
over its creditors, nor will it prejudice any creditors or parties
in interest.
On the contrary, the extensions requested herein will allow the
Debtor and parties in interest additional time to negotiate and
prosecute a chapter 11 plan to a successful conclusion. Therefore,
extending the Exclusivity Periods as requested herein would fulfill
the very purpose of Section 1121 of the Bankruptcy Code, to provide
the Debtor with a reasonable opportunity to negotiate with
creditors and other parties in interest and propose a confirmable
chapter 11 plan.
Homes Now LLC is represented by:
John Paul Stanford, Esq.
Quilling, Selander, Lownds, Winslett & Moser, P.C.
2001 Bryan Street, Suite 1800
Dallas, TX 75201
Tel: (214) 880-1851
Fax: (214) 871-2111
Email: jstanford@qslwm.com
About Homes Now LLC
Homes Now LLC operates as a lessor of real estate, engaging in the
rental and leasing of residential, commercial, and industrial
properties.
Homes Now LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D. Tex. Case No. 25-41516) on May 29, 2025. In its
petition, the Debtor listed assets and liabilities between $1
million and $10 million each. John Paul Stanford, at QUILLING,
SELANDER, LOWNDS, WINSLETT & MOSER, P.C., is the Debtor's counsel.
HOOTERS OF AMERICA: Court Confirms Joint Chapter 11 Plan
--------------------------------------------------------
Judge Scott W. Everett of the United States Bankruptcy Court for
the Northern District of Texas entered an order:
(I) approving the disclosure statement on a final basis, and
(II) confirming the Fourth Amended Joint Chapter 11 Plan of
Reorganization of Hooters of America, LLC and Its Affiliated
Debtors.
The Court held that the Disclosure Statement (i) contains
sufficient information of a kind necessary to satisfy the
disclosure requirements of all applicable nonbankruptcy rules,
laws, and regulations, including the Securities Act, and (ii)
contains "adequate information" (as such term is defined in 1125(a)
of the Bankruptcy Code and used in section 1126(b)(2) of the
Bankruptcy Code) with respect to the Debtors, the Chapter 11 Cases,
the Plan, and the transactions contemplated therein, and (iii) is
approved in all respects. The filing of the Disclosure Statement
with the clerk of the Bankruptcy Court satisfied Bankruptcy Rule
3016(b).
As evidenced in the Voting Report, with respect to each Debtor, the
votes to accept or reject the Plan have been solicited and
tabulated fairly, in good faith, and in a manner consistent with
the Conditional Disclosure Statement Order, the Bankruptcy Code,
the Bankruptcy Rules, the Local Rules, and all other applicable
rules, laws, and regulations.
The Holders of Claims in Class 2 (Securitization Class A-2 Note
Claims), Class 3 (Securitization Class B Note Claims), Class 4
(Non-Securitization Manager Advance Term Loan Claims), and Class 8
(General Unsecured Claims) (the "Voting Classes") have voted to
accept the Plan in accordance with section 1126(c) of the
Bankruptcy Code. However, even if the Holders of General Unsecured
Claims in Class 8 had voted to reject the Plan as a class, the Plan
would still be confirmable for the reasons set forth in this
Confirmation Order. Pursuant to the Conditional Disclosure
Statement Order, the Ballots the Debtors used to solicit votes to
accept or reject the Plan from Holders in the Voting Classes
adequately addressed the particular needs of these Chapter 11 Cases
and were appropriate for Holders in the Voting Classes to vote to
accept or reject the Plan.
Holders of Claims and Interests in Class 7 (Securitization Manager
Advance Claims), Class 9 (Other Intercompany Claims), Class 10
(Intercompany Interests), Class 11 (Securitization Prepetition
Master Issuer Equity Interests), Class 12 (Other Securitization
Prepetition Equity Interests), and Class 13 (Non-Securitization
Prepetition Equity Interests) are deemed to have rejected the Plan
(the "Rejecting Classes"). Notwithstanding the fact that the
Rejecting Classes are deemed to reject the Plan, the Plan may be
confirmed pursuant to section 1129(b)(1) of the Bankruptcy Code
because (a) there is no Class of Claims or Interests similarly
situated to the Rejecting Classes that is receiving better
treatment than such Rejecting Classes under the Plan, (b) no Holder
of any Claim or Interest that is junior to the Claims and Interests
represented by the Rejecting Classes shall receive or retain any
property under the Plan on account of such junior Claim or
Interest, (c) no Holder of a Claim in a class senior to the
Rejecting Classes is receiving more than 100% recovery on account
of its Claim, and (d) all of the requirements of section 1129(a) of
the Bankruptcy Code, other than section 1129(a)(8), have been met.
Finally, Holders of Claims in each of the Voting Classes voted to
accept the Plan in sufficient number and in sufficient amount to
constitute accepting classes under the Bankruptcy Code.
Accordingly, the Plan satisfies the requirements of section 1129(b)
of the Bankruptcy Code and therefore, may be confirmed despite the
fact that not all Impaired Classes have voted to accept the Plan.
The Debtors appropriately Filed the Disclosure Statement and Plan
with the Bankruptcy Court, satisfying Bankruptcy Rule 3016(b).
The Claims and Interests placed in each Class are substantially
similar to other Claims and Interests in each such Class, and thus
the Plan satisfies the requirements of sections 1122(a) and
1123(a)(1) of the Bankruptcy Code. Valid business, factual, and
legal reasons exist for separately classifying the various Classes
of Claims and Interests created under the Plan, and the Debtors'
classification scheme reflects no improper purpose and does not
unfairly discriminate between Holders of Claims or Interests.
Furthermore, the Plan provides for the same treatment by the
Debtors for each Claim or Interest in each respective Class, unless
the Holder of a particular Claim or Interest has agreed to a less
favorable treatment of such Claim or Interest.
The Plan satisfies the requirements of section 1123(a)(2) of the
Bankruptcy Code. Article III of the Plan specifies that Claims, as
applicable, in the following Classes are Unimpaired (the
"Unimpaired Classes") under the Plan within the meaning of section
1124 of the Bankruptcy Code: Class 1 (Priority Non-Tax Claims);
Class 5 (Other Secured Claims); and Class 6 (Non-Securitization
Term Loan Claims (Secured). Additionally, Article II of the Plan
specifies that Allowed Administrative Claims, Allowed DIP Claims,
Allowed Professional Fee Claims, Allowed Priority Tax Claims, and
Restructuring Expenses will be paid in full in accordance with the
terms of the Plan, although these Claims are not classified under
the Plan.
The Plan satisfies the requirements of section 1123(a)(3) of the
Bankruptcy Code. Article III of the Plan specifies that Claims in
the following Classes (the "Impaired Classes") are Impaired under
the Plan within the meaning of section 1124 of the Bankruptcy Code,
and describes the treatment of such Classes: Class 2
(Securitization Class A-2 Note Claims); Class 3 (Securitization
Class B Note Claims); Class 4 (Non-Securitization Manager Advance
Term Loan Claims); Class 7 (Securitization Manager Advance Claims);
Class 8 (General Unsecured Claims); Class 9 (Other Intercompany
Claims); Class 10 (Intercompany Interests); Class 11
(Securitization Prepetition Master Issuer Equity Interests); Class
12 (Other Securitization Prepetition Equity Interests); and Class
13 (Non-Securitization Prepetition Equity Interests).
The Plan satisfies the requirements of section 1123(a)(4) of the
Bankruptcy Code. The Plan provides for the same treatment by the
Debtors for each Claim or Interest in each respective Class unless
the Holder of a particular Claim or Interest has agreed to less
favorable treatment on account of such Claim or Interest.
The Debtors, as proponents of the Plan, have met their burden of
proving all applicable provisions of sections 1122, 1123, 1125,
1126, and 1129 of the Bankruptcy Code by a preponderance of the
evidence, which is the applicable evidentiary standard for
Confirmation. In addition, and to the extent applicable, the Plan
is confirmable under the clear and convincing evidentiary standard.
The Plan (including the Plan Supplement and all other documents
necessary or appropriate to effectuate the Plan) has been proposed
in good faith and not by any means forbidden by law, thereby
satisfying section 1129(a)(3) of the Bankruptcy Code. In so
finding, the Bankruptcy Court has considered the totality of the
circumstances of these Chapter 11 Cases and found that all
constituencies acted in good faith. The Plan is the result of
extensive, good faith, arm's length negotiations among the Debtors
and their principal constituencies. The Chapter 11 Cases were
Filed, and the Plan was proposed, with the legitimate and honest
purpose of maximizing the value of the Estates and allowing the
Debtors to implement the Restructuring Transactions, effectuate the
Buyer Group Arrangements, reorganize, and emerge from bankruptcy to
allow them to conduct their businesses and satisfy their
obligations with sufficient liquidity and capital resources.
Further, the Plan's classification, settlement, discharge,
exculpation, release, and injunction provisions have been
negotiated in good faith and at arm's-length, are consistent with
sections 105, 1122, 1123(b)(3)(A), 1123(b)(6), 1129, and 1142 of
the Bankruptcy Code, and each is integral to the Plan, supported by
valuable consideration, and necessary to the Debtors' successful
reorganization. Accordingly, the requirements of section 1129(a)(3)
of the Bankruptcy Code are satisfied.
The settlements and compromises incorporated in the Plan
(including, without limitation, the settlement and compromise of
Claims, Interests, Causes of Action and controversies relating to
the contractual, legal, equitable, and subordination rights that a
Holder of a Claim or Interest may have with respect to any Claim or
Interest or any distribution to be made on account of an Allowed
Claim or Allowed Interest), and the settlements and compromises set
forth in the GUC Settlement and the Restructuring Support Agreement
are in the best interests of the Debtors, the Estates, the Debtors'
creditors, Holders of any Interests, and other parties in interest,
are both fair and equitable, and are within the range of
reasonableness, and satisfy the requirements of applicable law for
approval pursuant to Bankruptcy Rule 9019. The compromises and
settlements embodied in the Plan are the result of extensive,
arm's-length, good faith negotiations that resulted in the Plan,
which preserves value for the Debtors, their Estates, and all their
stakeholders, avoid extended, uncertain, time-consuming, and
value-destructive litigation, and represent a fair and reasonable
compromise of all Claims, Interests, and controversies and entry
into which represented a sound exercise of the Debtors' business
judgment.
The Plan satisfies the requirements of section 1129(a)(10) of the
Bankruptcy Code. As evidenced by the Voting Report, Classes 2,3,4,
and 8, which are Impaired, voted to accept the Plan by the
requisite number and amount of Claims -- determined without
including any acceptance of the Plan by any Insider (as such term
is defined in section 101(31) of the Bankruptcy Code)"as specified
under the Bankruptcy Code. Accordingly, the requirements of section
1129(a)(10) of the Bankruptcy Code are satisfied.
The Plan satisfies or complies with all applicable provisions of
sections 1122, 1123, 1125, 1126, and 1129 of the Bankruptcy Code
and is confirmed pursuant to section 1129 of the Bankruptcy Code.
The amendments and modifications to the Plan since the filing of
the Second Amended Joint Chapter 11 Plan of Reorganization of
Hooters of America, LLC and Its Affiliated Debtors, in accordance
with the terms of the Restructuring Support Agreement, including as
may be reflected in the Plan and this Confirmation Order, are
approved in accordance with section 1127(a) of the Bankruptcy Code
and Bankruptcy Rule 3019(a).
The Disclosure Statement (i) contains adequate information of a
kind generally consistent with the disclosure requirements of all
applicable nonbankruptcy law, including the Securities Act, (ii)
contains "adequate information" (as such term is defined in section
1125(a)(1) and used in section 1126(b)(2) of the Bankruptcy Code)
with respect to the Debtors, the Plan, and the Restructuring
Transactions contemplated therein, and (iii) is approved on a final
basis in all respects.
A copy of the Court's Order dated October 30, 2025, is available at
https://urlcurt.com/u?l=06feC9 from PacerMonitor.com.
About Hooters of America
Hooters of America, LLC, owner and operator of a restaurant chain
with hundreds of locations in the United States, and its affiliates
filed voluntary petitions for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80078) on March
31, 2025.
Founded in 1983, the Debtors own and operate Hooters, a renowned
brand in the casual dining and sports entertainment industries.
Their global portfolio includes 151 company-owned and operated
locations and 154 franchised locations across 17 countries. Known
for their world-famous chicken wings, beverages, live sports, and
legendary hospitality, the Debtors also partner with a major food
products licensor to offer Hooters-branded frozen meals at 1,250
grocery store locations.
The case is before the Hon. Scott W Everett.
The Debtors Co-Bankruptcy Counsel are Holland N. O'Neil, Esq.,
Stephen A. Jones, Esq., and Zachary C. Zahn, Esq., at FOLEY &
LARDNER LLP, in Dallas, Texas.
The Debtors' General Bankruptcy Counsel are Ryan Preston Dahl,
Esq., at ROPES & GRAY LLP, in New York, and Chris L. Dickerson,
Esq., Rahmon J. Brown, Esq., and Michael K. Wheat, Esq., at ROPES &
GRAY LLP, in Chicago, Illinois. The Debtors' Investment Banker is
SOLIC CAPITAL, LLC. The Debtors' Financial Advisor is ACCORDION
PARTNERS, LLC.
The Debtors' Notice, Claims, Solicitation & Balloting Agent is
KROLL RESTRUCTURING ADMINISTRATION LLC.
HORSEY DENISON: Court Extends Cash Collateral Access to Dec. 20
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maryland, Greenbelt
Division entered a consent order granting Horsey Denison
Landscaping, LLC and affiliates another extension to use cash
collateral.
The court extended the Debtors' authority to use the cash
collateral of lenders from October 31 to December 20 to fund
operations in accordance with their budget.
Lenders including First National Bank of Pennsylvania, Donna
Dennison and sureties such as Great Midwest Insurance Company and
Lexington National Insurance Corporation will be provided with
adequate protection in the form of replacement liens on assets and
proceeds from bonded contracts.
As additional protection, the court approved the payments of
$10,000 to First National Bank on November 10 and 24 and on
December 8 and 18.
Events of default occur if the Debtors misuse cash collateral,
cease business operations, fail to make adequate protection
payments, convert their cases to Chapter 7, appoint a trustee, or
violate any order provision. Failure to cure certain defaults
within 10 days after written notice terminates authorization to use
cash collateral.
First National Bank is the senior secured lender and is owed over
$10.8 million in aggregate under a line of credit, a term loan, and
two mortgage loans. It also holds judgments by confession against
the Debtors and maintains liens through various security agreements
and UCC filings.
Meanwhile, Ms. Denison is a second-priority secured creditor under
a $6 million seller-financed loan used in the 2021 acquisition of
the Denison entities by the Debtor.
Horsey Denison Landscaping and Denison Landscaping entered into
various agreements with the sureties to provide them with bonds
required for them to perform certain of their business contracts.
The Debtors' financial troubles stem from litigation with Ms.
Denison and significant pre-bankruptcy debt, including loans from
First National Bank.
A copy of the court's order and the Debtor's budget is available at
https://shorturl.at/1dbBK from PacerMonitor.com.
About Horsey Denison Landscaping LLC
Horsey Denison Landscaping LLC is a landscaping company based in
Fort Washington, Maryland. It provides design and build services
such as landscape installation, hardscaping, low-voltage lighting,
and irrigation. Horsey Denison fully owns Denison Farms LLC, also
formed in 2021, and Denison Landscaping Inc., a corporation
established in 1990. The Company is affiliated with Horsey Denison
Properties LLC, a Delaware-based entity co-owned equally by Robert
E. Horsey and David W. Horsey.
Horsey Denison Landscaping LLC and its affiliates sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case
No.25-14103) on May 6, 2025. In its petition, Horsey Denison
Landscaping reports estimated assets and liabilities between $1
million and $10 million each.
Judge Lori S. Simpson oversees the case.
The Debtors are represented by Paul Sweeney, Esq., at YVS Law,
LLC.
First National Bank, as lender, is represented by:
David V. Fontana, Esq.
Gebhardt & Smith LLP
One South Street, Suite 2200
Baltimore, Maryland 21202
Tel: 410-385-5053
Fax: 443-957-1832
dfont@gebsmith.com
HUDSON VALLEY: Eric Huebscher Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 2 appointed Eric Huebscher of Huebscher
& Co. as Subchapter V trustee for Hudson Valley Lyo Mac, Inc.
Mr. Huebscher will be paid an hourly fee of $425 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Huebscher declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Eric Huebscher
Huebscher & Co.
301 E 87th St. - 20E
New York, NY 10128
Phone: 917-763-3891
Email: ehuebscher@huebscherconsulting.com
About Hudson Valley Lyo Mac Inc.
Hudson Valley Lyo Mac, Inc., also known as Hudson Valley Lyomac,
designs and manufactures freeze-dryers for pharmaceutical,
biotechnology, diagnostic, food preservation, and industrial
applications, operating from Hudson, New York. The Company offers
both standard and custom systems ranging from benchtop units to
large-capacity production models, along with installation,
maintenance, and contract freeze-drying services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-36156) on November 5,
2025, with $1 million to $10 million in assets and $100,000 to
$500,000 in liabilities. Thomas Finck, president, signed the
petition.
Judge Kyu Young Paek presides over the case.
Anne Penachio, Esq. at PENACHIO MALARA LLP represents the Debtor as
legal counsel.
HYPERSCALE DATA: Estimates $330MM in Total Assets as of Oct 31
--------------------------------------------------------------
Hyperscale Data, Inc. announced that, as of October 31, 2025, its
estimated total assets of $330 million equated approximately $1.02
per share of Class A common stock and its estimated net assets of
$150 million equated approximately $0.47 per share.
Additionally, the estimated value, as of October 31, 2025, of the
Company's cash and Bitcoin holdings of $122 million represented 37%
of the Company's estimated total assets.
These estimates reflect the Company's preliminary, unaudited
financial position as of September 30, 2025, updated to reflect
subsequent adjustments in assets, liabilities and shares of Common
Stock outstanding, including shares of Common Stock issued pursuant
to its at-the-market sales program, additional cash proceeds
therefrom and Bitcoin purchases through October 31, 2025.
In addition, during October 2025, Hyperscale Data invested $16
million to upgrade its Bitcoin mining fleet with the acquisition of
4,092 next-generation Bitmain S21+ miners and reduced its
outstanding debt obligations by more than $30 million
year-to-date.
The Company believes this measure provides stockholders with a
meaningful indication of intrinsic value per share based on its
current balance-sheet strength, digital asset treasury position and
infrastructure investments. Hyperscale Data's Common Stock has
recently traded below $0.35 per share, a level the Company believes
does not reflect the Company's underlying asset value or growth
potential of its operations.
"Our balance sheet continues to strengthen as we expand our Bitcoin
treasury, upgrade our mining fleet with the newest S21+ miners, and
build out our AI-optimized data center infrastructure," said Milton
"Todd" Ault III, Executive Chairman of Hyperscale Data. "We have
also reduced more than $30 million in debt this year alone and
expect our Bitcoin holdings to exceed $100 million within the next
quarter. We believe the market price of our stock substantially
undervalues both our tangible asset base and our long-term strategy
as we execute on our transformation into a pure-play AI and
digital-asset company."
These estimates have not been reviewed or audited by the Company's
independent registered public accounting firm and are subject to
change upon completion of customary closing and review procedures
for the quarter ended September 30, 2025 and the month ended
October 31, 2025.
About Hyperscale Data
Headquartered in Las Vegas, Nevada, Hyperscale Data, Inc., formerly
known as Ault Alliance, Inc., is transitioning from a diversified
holding company pursuing growth by acquiring undervalued businesses
and disruptive technologies with a global impact to becoming solely
an owner and operator of data centers to support high performance
computing services. Through its wholly and majority-owned
subsidiaries and strategic investments, Hyperscale Data owns and
operates a data center at which it mines digital assets and offers
colocation and hosting services for the emerging artificial
intelligence ecosystems and other industries. It also provides,
through its wholly owned subsidiary, Ault Capital Group, Inc.,
mission-critical products that support a diverse range of
industries, including an artificial intelligence software platform,
social gaming platform, equipment rental services,
defense/aerospace, industrial, automotive, medical/biopharma and
hotel operations. In addition, Hyperscale Data is actively engaged
in private credit and structured finance through a licensed lending
subsidiary.
New York, N.Y.-based Marcum LLP, the Company's auditor since 2016,
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 Dec. 31, 2024, citing that the Company has a
significant working capital deficiency, has incurred significant
losses and needs to raise additional funds to meet its obligations
and sustain its operations. These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
As of June 30, 2025, the Company had $213.50 million in total
assets, $205.60 million in total liabilities, and $7.90 million in
total stockholders' equity.
INTEGER HOLDINGS:S&P Alters Outlook to Negative, Affirms 'BB-' ICR
------------------------------------------------------------------
S&P Global Ratings revised our outlook on Integer Holdings Corp. to
negative from stable and affirmed all its ratings, including its
'BB-' issuer credit rating and 'BB' rating on its senior secured
debt.
The negative rating outlook reflects risks to S&P's base-case
forecast given uncertain demand for a few of its newer products due
to lower market adoption, which could sustain S&P Global
Ratings-adjusted leverage above 3.5x beyond 2026.
Integer has performed well in 2025 but provided revenue guidance
for 2026 below S&P's previous expectations, which it expects will
push S&P Global Ratings-adjusted leverage above our 3.5x downgrade
threshold over the next year.
The negative outlook reflects reduced demand for certain of
Integer's new products in 2026. Integer has indicated that it
expects sales of two new electrophysiology (EP) products and one
neuromodulation product to decline in 2026 due to lower market
adoption. S&P said, "We revised our revenue and earnings forecast
downward for 2026. We now project 2026 revenue to decline about 1%
compared to our prior forecast of mid-single-digit percent growth."
This reflects the projected sales decline for certain of its new
products as well as the company's exit from the portable medical
market, partly offset by low single-digit organic improvement from
other products in its cardio and vascular and cardiac rhythm
management and neuromodulation segments, and some revenue
contribution from projected acquisitions.
S&P said, "We also expect EBITDA margin to remain flat at about 21%
in 2026 as cost-cutting initiatives offset lower sales. We expect
limited impact from tariffs because most of Integer's suppliers are
in the U.S. and its medical device manufacturer customers bear the
cost of transporting its products to their facilities. We project
S&P Global Ratings-adjusted leverage will rise to about 3.8x in
2026, compared to our expectation of about 3.5x in 2025.
"We view the headwinds facing Integer as largely customer specific.
Despite the pressure on its financial performance in 2026, we
believe Integer will continue to benefit from strong underlying
demand from medical device manufacturers. Lower-than-anticipated
market adoption of the two EP products came as a surprise since the
market is one of the fastest-expanding in medical technology,
driven by the rising prevalence of cardiac arrhythmias and
advancements such as pulsed field ablation and 3D mapping. Integer
benefitted from strong end-market growth and product innovation for
most of 2025. Revenue increased 7% year over year in the last 12
months ended Sept. 30, 2025, due to the new product ramp-ups in EP
and neuromodulation customers' pre-market approval products. We
project the company could end the year with a 7% increase.
"New product launches carry inherent risks and uncertainties that
can disrupt market adoption. Despite potential for additional
downside risk, we think Integer has solid prospects to improve
growth trends in 2027 given robust demand in high-growth markets
such as electrophysiology, structural heart, and neuromodulation,
alongside contributions from recent acquisitions, including
Precision Coating and VSi Parylene.
"We project revenue improvement in the high-single-digit percents
in 2027. Excluding the impact from the sales decline on its newer
products, we generally expect the rest of Integer's sales to
increase. The company also maintains a healthy backlog of about
$730 million, which we believe supports our forecast for a revenue
increase of about 8% in 2027 (including assumed inorganic growth).
"The negative rating outlook reflects risks to our base-case
forecast given uncertain demand for some newer products due to
lower market adoption, which could sustain S&P Global
Ratings-adjusted leverage above 3.5x beyond 2026."
S&P could downgrade Integer if:
-- S&P believes operating performance will deteriorate relative to
our base-case assumptions, keeping leverage above 3.5x for an
extended period with limited prospects for improvement. This could
occur due to weaker-than-expected demand or the unexpected loss of
a significant customer or program; or
-- The company's financial policy is more aggressive than S&P
expects, and it prioritizes acquisitions or share repurchases that
sustain leverage materially above 3.5x for a prolonged period.
S&P could revise the outlook back to stable if:
-- Integer's operating performance improves with increased sales
and EBITDA, and we believe the company can consistently sustain S&P
Global Ratings-adjusted leverage below 3.5x; or
-- The company uses free cash flow to reduce debt and sustain
leverage below 3.5x.
IROBOT CORP: Net Loss Widens to $21.5 Million in 2025 Q3
--------------------------------------------------------
iROBOT CORPORATION filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $21.5 million and $6.4 million for the three months ended
September 30, 2025 and 2024, respectively.
For the nine months ended September 30, 2025 and 2024, the Company
reported a net loss of $131.6 million and $68.4 million,
respectively.
Revenues for the three months ended September 30, 2025 and 2024,
were $145.8 million and $193 million, respectively. For the nine
months ended September 30, 2025 and 2024, the Company had revenue
of $375 million and $509.8 respectively.
As of September 30, 2025, the Company had $481.6 million in total
assets, $508.5 million in total liabilities, and $26.9 million in
total stockholders' deficit.
"Our third-quarter revenue fell well below our internal
expectations due to continuing market headwinds, ongoing production
delays, and unforeseen shipping disruptions," said Gary Cohen,
iRobot CEO. "This shortfall increased cash usage and pressured
profitability, as we were unable to fully leverage our fixed cost
base."
Liquidity Risks and Uncertainties:
As part of its quarterly assessment completed during the fourth
quarter of fiscal 2024 in its Annual Report on Form 10-K,
management concluded that there was substantial doubt about the
Company's ability to continue as a going concern for a period of at
least 12 months from the date of issuance of the consolidated
financial statements.
On March 11, 2025, the Company entered into Amendment No. 1 to the
Credit Agreement ("Amendment No. 1"). Pursuant to Amendment No. 1,
the Lenders waived, until May 6, 2025, the Company's obligation to
comply with the Company's covenant obligations to:
(1) provide a report and opinion of the auditor with respect
to the Company's annual consolidated financial statements for
fiscal year 2024 without a qualification regarding the Company's
ability to continue as a going concern and
(2) maintain a minimum level of core assets.
* On April 30, 2025, the Company entered into Amendment
No. 2 to the Credit Agreement which extended the Initial Waiver
Period to June 6, 2025;
* on June 5, 2025, the Company entered into Amendment No.
3 to the Credit Agreement which further extended the Initial Waiver
Period to August 14, 2025;
* on August 6, 2025, the Company entered into Amendment
No. 4 to the Credit Agreement, which further extended the Initial
Waiver Period to September 19, 2025;
* on September 12, 2025, the Company entered into
Amendment No. 5 to the Credit Agreement, which further extended the
Initial Waiver Period to October 24, 2025; and
* on October 22, 2025, the Company entered into Amendment
No. 6 to the Credit Agreement, which further extended the Initial
Waiver Period to December 1, 2025.
On March 12, 2025, the iRobot Board of Directors initiated a review
of strategic alternatives, including, but not limited to, exploring
a potential sale or strategic transaction and refinancing the
Company's debt. In late October, the counterparty to a potential
sale transaction withdrew from the process following a lengthy
period of exclusive negotiations. The Company is continuing the
review process, and is currently seeking to engage alternative
counterparties to a potential sale or other strategic transaction.
However, it is unlikely that the review of strategic alternatives
or the efforts to engage with alternative counterparties will
result in any transaction being consummated outside of a bankruptcy
process. In addition, during the Company's most recent negotiations
in a potential sale transaction, the potential counterparty offered
a price per share to acquire the Company that was significantly
lower than the trading price of the Company's stock over recent
months.
As of September 27, 2025, the fair value of the Term Loan was
$205.3 million, which significantly exceeded the Company's
available cash and cash equivalents and there continues to be
substantial doubt about the Company's ability to continue as a
going concern.
The Company's cash and cash equivalents balance declined from $40.6
million as of June 28, 2025, to $24.8 million as of September 27,
2025, despite the draw down of $31.0 million from the restricted
cash account during this period. The remaining $5 million from the
restricted cash account was fully drawn on September 30, 2025, and
the Company has no sources upon which it can draw for additional
capital.
In addition, absent further waiver of the breach of the Specified
Covenants by the lenders, the Company expects to be in default
under the Credit Agreement on December 1, 2025.
If the Company is in default under the Credit Agreement and the
Company's lenders accelerate the repayment obligations with respect
to the outstanding loans, the Company expects that it would be
unable to repay its obligations under the Credit Agreement.
The Company is currently in discussions with the Lenders to provide
the additional capital it requires to fund its ongoing business
operations, including for payment of significant amounts owed to
the Company's primary contract manufacturer.
There can be no assurance that the Lenders will agree to provide
this necessary funding.
If the Company is unable to obtain new capital in the near term
from the Lenders or otherwise, it may be forced to significantly
curtail or cease operations and would likely seek bankruptcy
protection. In such bankruptcy proceedings, it is unlikely that any
proceeds would remain for distribution to stockholders and, as a
result, stockholders would likely receive no recovery and will lose
all of their investment in the Company.
In addition, unsecured creditors of the Company would likely
receive little to no recovery in such bankruptcy proceedings.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/37y7ac8x
About iRobot Corporation
iRobot Corp. is a global consumer robot company that designs and
builds robots that empower people to do more. With over 30 years of
artificial intelligence and advanced robotics experience, it is
focused on building thoughtful robots and developing intelligent
home innovations that help make life better or millions of people
around the world. iRobot's portfolio of home robots and smart home
devices features proprietary technologies for the connected home
and advanced concepts in cleaning, mapping and navigation.
As of June 28, 2025, the Company had $480.32 million in total
assets, $488.01 million in total liabilities, and total
stockholders' deficit of $7.69 million. As of September 30, 2025,
the Company had $481.6 million in total assets, $508.5 million in
total liabilities, and $26.9 million in total stockholders'
deficit.
Boston, Massachusetts-based PricewaterhouseCoopers LLP, the
Company's auditor since 1999, issued a "going concern"
qualification in its report dated March 12, 2025, citing that the
Company has a history of operating losses and negative cash flows
from operations that raise substantial doubt about its ability to
continue as a going concern.
JAC ENCORE: Seeks Chapter 11 Bankruptcy in New Jersey
-----------------------------------------------------
Jac Encore,, LLC filed a 11 chapter bankruptcy in the District of
New Jersey bankruptcy court on November 12, 2025. The bankruptcy
petition for Jac Encore LLC showed liabilities in the range of
$100,001-$1,000,000. JAC ENCORE,, LLC reports that the number of
creditors is in the range of 1-49.
About Jac Encore,, LLC
Jac Encore,, LLC is a limited liability company.
Jac Encore LLCsought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D.N.J. Case No. 25-22025) on November 12, 2025. In its
petition, the Debtor reports estimated assets and liabilities
between $100,001 and $1 million.
The Debtor is represented by Joseph Casello, Esq., of Collins,
Vella & Casello.
JACKSON WALKER: Court Pauses Secret Romance Settlements w/ Clients
------------------------------------------------------------------
Adrian Cruz of Law360 reports that a Texas federal judge has paused
several settlements between Jackson Walker LLP and former clients,
raising concerns that the firm was attempting to interfere with the
U.S. Trustee's investigation into alleged malpractice. The probe
centers on a concealed romantic relationship between a former
Jackson Walker partner and a bankruptcy judge.
During the proceedings, the judge questioned whether the timing and
structure of the settlements were meant to limit the scope of the
investigation. He noted that any effort to hinder or influence the
U.S. Trustee's work would not be tolerated, according to report.
As a result, the court suspended the settlements while the inquiry
continues. The ruling ensures the investigation can move forward
unimpeded and signals heightened scrutiny of the firm’s conduct
surrounding the scandal, the report states.
About Jackson Walker LLP
Jackson Walker LLP is a law firm. The Firm's practice areas include
aviation, antitrust, bankruptcy, energy, environmental,
entertainment, health care, immigration, insurance, intellectual
property, international, labor and employment, real estate, and tax
law.
JACKSONVILLE MOVING: Unsecureds to Get Share of Income for 3 Years
------------------------------------------------------------------
Jacksonville Moving, Inc., d/b/a College Hunks Hauling Junk and
Moving, filed with the U.S. Bankruptcy Court for the Middle
District of Florida a Plan of Reorganization under Subchapter V
dated November 4, 2025.
The Debtor is a Florida for profit corporation formed on June 24,
2022. The Debtor operates a moving company in the Jacksonville
area. The Debtor was purchased by Mark Roth the current 100% owner
and manager in 2022 with the assistance of an SBA loan.
The Debtor leases its office and operations center at 9836 Beach
Blvd. Jacksonville Florida where it also stores its moving trucks.
Higher interest rates led to both an increase in the Debtor's
monthly debt service through its floating SBA loan, and a decrease
in the moving business as fewer people moved house. The higher debt
payment and reduced revenue led to the filing of this bankruptcy.
Payments to holders of allowed Class 4 Claims will be made on a
quarterly basis over a period of no longer than three years,
commencing on the last day of the last month of each calendar
quarter, beginning after the payment in full of all allowed
administrative expense claims.
The Debtor anticipates that the first payment to holders of allowed
unsecured claims will be on either December 31, 2025, or March 30,
2026. The financial projections or PDI cover plan payments for a
duration of three years. The Debtor's PDI over the life of the Plan
is $90,731.47.
Class 3 is comprised of all allowed unsecured claims. Class 3 is
impaired by the Plan. Each holder of an Allowed Class 3 Claim will
receive a pro-rata share of the projected disposable income of the
Debtor after the payment of allowed administrative expense claims,
allowed priority tax claims, allowed priority claims, and allowed
secured claims as calculated from the Effective Date of the Plan,
and continuing quarterly for three years.
The quarterly payments shall begin on December 31, 2025, and be due
on the last day of the final month for each quarter (March 31st,
June 30th, September 31st, and December 31st) for three years from
the Effective Date. The Debtors quarterly payments shall be
calculated as 25% of the yearly projected PDI provided for in the
Plan Projections. After close of the claims bar date, a
distribution schedule may be filed subsequent to this Plan and
prior to confirmation. Deficiency claims shall be paid in Class 3.
Class 4 is comprised of all equity interests in the Debtor, which
is owned by Mark Roth. Holders of Class 4 interests shall retain
their full equity interest in the same amounts, percentages,
manner, and structure as existed on the Petition Date. No
distributions shall be made on account of Class 4 unless the
distributions to Classes 1-3 are made.
Payments required under the Plan will be funded from: (i) existing
cash on hand on the Effective Date, (ii) projected disposable
income remaining after the payment of operating expenses.
On the Effective Date, except as otherwise expressly provided in
the Plan or in the Bankruptcy Code, all assets of the Debtor's
estate shall vest in the Debtor, free and clear of any and all
liens, debts, obligations, claims, cure claims, liabilities,
encumbrances, and all other interests of every kind and nature, and
the Confirmation Order shall so provide.
A full-text copy of the Subchapter V Plan dated November 4, 2025 is
available at https://urlcurt.com/u?l=9Echw7 from PacerMonitor.com
at no charge.
Attorney for the Debtor:
JENNIS MORSE
Michael Stavros, Esq.
606 East Madison Street
Tampa, Florida 33602
Telephone: (813) 229-2800
Email: mstavros@jennislaw.com
About Jacksonville Moving Inc.
Jacksonville Moving Inc., doing business as College Hunks Hauling
Junk & Moving, provides professional moving services and junk
removal solutions in the Duval County area.
Jacksonville Moving sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-02952) on
August 26, 2025. In its petition, the Debtor reported estimated
assets between $500,000 and $1 million and estimated liabilities
between $1 million and $10 million.
Judge Jacob A. Brown oversees the case.
Michael A. Stavros, Esq., at Jennis Morse is the Debtor's legal
counsel.
Dogwood State Bank, as secured creditor, is represented by:
Eric F. Werrenrath, Esq.
Winderweedle, Haines, Ward & Woodman, PA
329 Park Avenue North, Second Floor
Winter Park, FL 32789
Telephone: (407) 423-4246
Facsimile: (407) 645-3728
ewerrenrath@whww.com
hcrain@whww.com
JAMES MILLER: Case Summary & Two Unsecured Creditors
----------------------------------------------------
Debtor: James Miller Construction, Inc.
d/b/a Miller Construction, Inc
708 South Race Unit A
Port Angeles, WA 98362
Business Description: James Miller Construction, Inc., doing
business as Miller Construction, Inc.,
provides general contracting services in
Washington State, with operations based in
Sequim and the surrounding Port Angeles
area. The Company specializes in
residential and commercial construction
projects.
Chapter 11 Petition Date: November 9, 2025
Court: United States Bankruptcy Court
Western District of Washington
Case No.: 25-13174
Judge: Hon. Timothy W Dore
Debtor's Counsel: Jennifer L. Neeleman, Esq.
NEELEMAN LAW GROUP, P.C.
1403 8th Street
Marysville, WA 98270
Tel: (425) 212-4800
Fax: (425) 212-4802
E-mail: courtmail@expresslaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Derek Baker as president.
A full-text copy of the petition, which includes a list of the
Debtor's two unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/C73NXWI/James_Miller_Construction_Inc__wawbke-25-13174__0001.0.pdf?mcid=tGE4TAMA
JERSEY SHORE: Seeks Chapter 11 Bankruptcy in New Jersey
-------------------------------------------------------
Jersey Shore Steel Inc. filed for Chapter 11 bankruptcy protection
in the District of New Jersey on November 11, 2025. Court filings
show the company listed liabilities ranging from $1 million to $10
million. The petition indicates the business has between 1 and 49
creditors.
About Jersey Shore Steel Inc.
Jersey Shore Steel Inc. is a steel fabrication company
headquartered in Jackson, New Jersey. It focuses on fabricating and
erecting structural and miscellaneous steel components for
commercial, residential, and public-sector construction projects.
Jersey Shore Steel Inc.sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 25-22002) on November 11,
2025. In its petition, the Debtor reports estimated assets between
$100,001 and $1 million and estimated liabilities between $1
million and $10 million.
Honorable Bankruptcy Judge Christine M. Gravelle handles the
case.
The Debtor is represented by Joseph Casello, Esq. of Collins, Vella
& Casello.
JSL COMPANIES: Gets Final OK to Use Cash Collateral
---------------------------------------------------
JSL Companies, LLC received final approval from the U.S. Bankruptcy
Court for the Southern District of Ohio, Dayton Division, to use
cash collateral to fund operations.
The final order authorized the Debtor to continue using the cash
collateral of its primary secured lender, First Financial Bank, in
accordance with its budget.
As adequate protection, the Debtor must make monthly payments of
$2,500 to First Financial Bank.
Additionally, First Financial Bank and all pre-bankruptcy secured
creditors will be granted replacement liens of the same type and
extent as their existing liens, to cover any diminution in
collateral value caused by post-petition use.
The Debtor's authority to use cash collateral terminates
automatically upon certain events including unauthorized expenses
beyond permitted variance, failure to make adequate protection
payments, and dismissal or conversion of its Chapter 11 case.
First Financial Bank holds various claims against the Debtor
totaling several million dollars, secured by a first-priority,
properly perfected security interest in all of the Debtor's
personal property.
The Debtor asserts these MCA loans are unsecured as the bank's
liens exceed the total value of the Debtor's assets.
A copy of the court's order and the Debtor's budget is available at
https://shorturl.at/lQJhK from PacerMonitor.com.
About JSL Companies LLC
JSL Companies, LLC doing business as Boat & RV Accessories, is a
retailer of marine and recreational vehicle parts and equipment in
the United States. The Company offers a wide range of products
including boat accessories, RV appliances, HVAC parts, solar power
systems, and power generation equipment. It distributes components
from brands such as Dometic, Atwood, Thetford, and Battery Tender
to boat and RV owners nationwide.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ohio Case No. 25-31919) on September
23, 2025. In the petition signed by Joseph Medsker, owner, the
Debtor disclosed up to $1 million in assets and up to $10 million
in liabilities.
Judge Tyson A. Crist oversees the case.
Denis E. Blasius, Esq., at Thompsen Law Group, LLC, represents the
Debtor as bankruptcy counsel.
KC TRANSPORT: To Sell Bushel Grain Bin to Jarrod Hountz for $8K
---------------------------------------------------------------
KC Transport LLC seeks permission from the U.S. Bankruptcy Court
for the District of Montana, to sell 2800 bushel grain bin, free
and clear of liens, claims, interests, and encumbrances.
The KC Transport confirmed plan contemplates the periodic
liquidation of equipment with the payment to the lienholders for
the time period between the confirmation of the Plan, October 31,
2025, and the Effective Date of the Plan, June 1, 2026.
The equipment proposed to be sold is a 2800 bushel grain bin; the
purchase price is $8,000; the buyer is Jarrod Hountz, of Brockton,
Montana. The sales proceeds are proposed to be paid to Loeb Term
Solutions, LLC. The owner of the bin is KC Sandcastle, LLC, an
entity affiliated with KC Transport owned by the members of KC
Transport.
The sale price is equivalent to the sales of other grain bins sold
by KC Transport pursuant to KC Transport's Second Motion to Sell
Property Free and Clear of Liens.
The Debtor seeks a shortened notice period of 7 days for objections
to the sale in order that the proposed sale may be completed and
funds paid to Loeb. The Debtor's confirmed chapter 11 plan
contemplates the sale of property out of the ordinary course of
business.
About KC Transport, LLC
KC Transport LLC is a limited liability company.
KC Transport LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 25-10010) on January 25,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Debtor is represented by James A. Patten, Esq. at PATTEN
PETERMAN BEKKEDAHL & GREEN, PLLC.
KIRKBRIDE LAND: Court Extends Cash Collateral Access to Dec. 31
---------------------------------------------------------------
Kirkbride Land and Snow Management, LLC received a two-month
extension from the U.S. Bankruptcy Court for the Southern District
of Ohio, Eastern Division, to use cash collateral.
The court issued an agreed order authorizing the Debtor to use cash
collateral from November 1 to December 31 on the same terms and
conditions as provided in its prior order entered on September 12.
As adequate protection, the Debtor will pay Kemba Financial Credit
Union the sum of $10,000 on November 15 and on December 15.
All other terms and conditions of the September 12 order remain in
effect and are not altered.
Kemba Financial Credit Union is represented by:
Gregory Stout, Esq.
Plunkett Cooney
220 Mill Street
Milford, OH 45150
Phone: 614-629-3000
Fax: 248-901-4040
gstout@plunkettcooney.com
About Kirkbride Land and Snow Management
Kirkbride Land and Snow Management, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ohio Case No.
25-53599) on August 18, 2025, listing up to $10 million in both
assets and liabilities. Angelia Kirkbride, managing member, signed
the petition.
Judge Mina Nami Khorrami oversees the case.
David Whittaker, Esq., at Allen Stovall Neuman & Ashton, LLP,
represents the Debtor as legal counsel.
KLEOPATRA FINCO: Russell R. Johnson Represents Utility Companies
----------------------------------------------------------------
In the Chapter 11 bankruptcy cases of Kleopatra Finco S.A.R.L., et
al. and its debtor-affiliates, Russell R. Johnson III of Russell R.
Johnson III, PLC filed with the United States Bankruptcy Court for
the Southern District of Texas, Houston Division, a Verified
Statement pursuant to Federal Rule of Bankruptcy Procedure 2019 to
inform the Court that the law firm represents utility companies
that provided prepetition utility goods/services to the Debtors,
and continue to provide post-petition utility goods/services to the
Debtors:
A. Appalachian Power Company d/b/a American Electric Power
Attn: Jason Reid
1 Riverside Plaza, 13th Floor
Columbus, OH 43215
B. Virginia Electric and Power Company d/b/a Dominion Energy
Virginia
Attn: Sherry Ward
600 East Canal Street, 16th Floor
Richmond, VA 23219
Both Appalachian Power Company d/b/a American Electric Power and
Virginia Electric and Power Company d/b/a Dominion Energy Virginia
have unsecured claims against the Debtors arising from prepetition
utility usage.
Russell R. Johnson III, PLC LLP was retained to represent the
foregoing Utilities in November 2025. The circumstances and terms
and conditions of employment of the Firm by the Utilities is
protected by the attorney-client privilege and attorney work
product doctrine.
The firm may be reached at:
Russell R. Johnson, III, Esq.
RUSSELL r. jOHNSON III, PLC
2258 Wheatlands Drive
Manakin-Sabot, VA 23103
Tel: (804) 749-8861
E-mail: russell@russelljohnsonlawfirm.com
About Kleopatra Finco and Klockner
Klockner is a global manufacturer of packaging for companies all
around the world. Klockner’s trays and films are used to preserve
meats, cheese, fish, and other perishable products in grocery
stores. Its clear plastic shell packaging is used to protect
individually packaged pills. Klockner’s durable films are used in
the manufacturing of credit cards, and Klockner’s labels are on
everything from laundry detergent containers to craft beer cans to
spice containers.
Kleopatra Finco S.a r.l., is a private limited company incorporated
under the laws of Luxembourg. Finco is the financing arm of
Klockner.
Kleopatra Finco S.a r.l. and 24 affiliates sought Chapter 11
bankruptcy protection (Bankr. S.D. Texas Lead Case No. 25-90642) on
Nov. 4, 2025, before the Hon. Christopher M. Lopez. The Debtors
listed $1 billion to $10 billion in estimated assets and
liabilities. The debtors sought Chapter 11 protection after
entering into a Restructuring Support Agreement with an ad hoc
group of lenders. A Chapter 11 plan was filed together with the
petition.
Kirkland & Ellis LLP serves as counsel to the Debtors. Porter
Hedges LLP serves as local counsel. PJT Partners is the investment
banker and Alvarez & Marsal is the restructuring advisor. Stretto,
Inc. is the claims and noticing agent and Ernst & Young LLP is the
tax advisor.
KLEOPATRA FINCO: Sussman & Moore Represents Utility Companies
-------------------------------------------------------------
In the Chapter 11 bankruptcy cases of Kleopatra Finco S.A.R.L., et
al. and its debtor-affiliates, Weldon L. Moore, III of Sussman &
Moore LLP filed with the United States Bankruptcy Court for the
Southern District of Texas, Houston Division, a Verified Statement
pursuant to Federal Rule of Bankruptcy Procedure 2019 to inform the
Court that the law firm represents utility companies that provided
prepetition utility goods/services to the Debtors, and continue to
provide post-petition utility goods/services to the Debtors:
A. Appalachian Power Company d/b/a American Electric Power
Attn: Jason Reid
1 Riverside Plaza, 13th Floor
Columbus, Ohio 43215
B. Virginia Electric and Power Company d/b/a Dominion Energy
Virginia
Attn: Sherry Ward
600 East Canal Street, 16th Floor
Richmond, Virginia 23219
Both Appalachian Power Company d/b/a American Electric Power and
Virginia Electric and Power Company d/b/a Dominion Energy Virginia
have unsecured claims against the Debtors arising from prepetition
utility usage.
Sussman & Moore, LLP was retained to represent the foregoing
Utilities in November 2025. The circumstances and terms and
conditions of employment of the Firm by the Utilities is protected
by the attorney-client privilege and attorney work product
doctrine.
The firm may be reached at:
Weldon L. Moore, III, Esq.
Sussman & Moore, LLP
2911 Turtle Creek Blvd, Ste. 1100
Dallas, TX 75219
Tel: (214) 378-8270
E-mail: wmooere@csmlaw.net
About Kleopatra Finco and Klockner
Klockner is a global manufacturer of packaging for companies all
around the world. Klockner’s trays and films are used to preserve
meats, cheese, fish, and other perishable products in grocery
stores. Its clear plastic shell packaging is used to protect
individually packaged pills. Klockner’s durable films are used in
the manufacturing of credit cards, and Klockner’s labels are on
everything from laundry detergent containers to craft beer cans to
spice containers.
Kleopatra Finco S.a r.l., is a private limited company incorporated
under the laws of Luxembourg. Finco is the financing arm of
Klockner.
Kleopatra Finco S.a r.l. and 24 affiliates sought Chapter 11
bankruptcy protection (Bankr. S.D. Texas Lead Case No. 25-90642) on
Nov. 4, 2025, before the Hon. Christopher M. Lopez. The Debtors
listed $1 billion to $10 billion in estimated assets and
liabilities. The debtors sought Chapter 11 protection after
entering into a Restructuring Support Agreement with an ad hoc
group of lenders. A Chapter 11 plan was filed together with the
petition.
Kirkland & Ellis LLP serves as counsel to the Debtors. Porter
Hedges LLP serves as local counsel. PJT Partners is the investment
banker and Alvarez & Marsal is the restructuring advisor. Stretto,
Inc. is the claims and noticing agent and Ernst & Young LLP is the
tax advisor.
KPOWER GLOBAL: Craig M. Geno, Payne Law Firm Relieved as Counsel
----------------------------------------------------------------
Judge Jennie D. Latta of the United States Bankruptcy Court for the
Western District of Tennessee granted the motion of the Law Offices
of Craig M. Geno, PLLC/Law Offices of Geno and Steiskal, PLLC and
Payne Law Firm to be relieved as counsel on behalf of KPower Global
Logistics, LLC in light of the appointment of C. Jerome Teel, Jr.
as Chapter 11 Trustee.
They are relieved as counsel for the Debtor as of October 23,
2025.
A copy of the Court's Order is available at
https://urlcurt.com/u?l=sYsYXX from PacerMonitor.com.
About KPower Global Logistics, LLC
KPower Global Logistics LLC provides third-party logistics services
specializing in customized supply chain solutions across the United
States. The Company offers staffing, warehousing, bulk storage,
consulting, packaging, and special project services for
distribution centers and manufacturing operations.
KPower Global Logistics sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tenn. Case No. 25-22294) on
May 8, 2025. In its petition, the Debtor reports estimated assets
and liabilities between $1 million and $10 million.
Honorable Judge Jennie D Latta handles the case.
The Debtor is represented by the Law Offices of Craig M. Geno,
PLLC.
LAS VEGAS COLOR: Seeks Chapter 11 Bankruptcy in Nevada
------------------------------------------------------
On November 5, 2025, Las Vegas Color Graphics Inc. sought Chapter
11 bankruptcy protection in the District of Nevada. Court documents
indicate that the company holds liabilities between $10 million and
$50 million in liabilities. The filing lists approximately 100 to
199 creditors.
About Las Vegas Color Graphics Inc.
Las Vegas Color Graphics Inc. offers a full suite of graphic
communication solutions, including offset and digital printing,
finishing, mailing, signage, and large-format display services.
Las Vegas Color Graphics Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-16697) on November
5, 2025. In its petition, the Debtor reports estimated assets
between $1 million and $10 million and estimated liabilities
between $10 million and $50 million.
Honorable Bankruptcy Judge Natalie M. Cox handles the case.
The Debtor is represented by Teresa M. Pilatowicz, Esq. of GARMAN
TURNER GORDON.
LAVENDER LANDSCAPE: Gets Final OK to Cash Collateral
----------------------------------------------------
Lavender Landscape Design Co., LLC received final approval from the
U.S. Bankruptcy Court for the District of Arizona to use cash
collateral.
The final order authorized the Debtor to use cash collateral for
the expenses listed in its monthly budget, subject to a 10%
variance, until plan confirmation, dismissal, or further order.
The Debtor's budget projects total operational expenses of
$461,140.41 for November; $409,840.41 for December; and $506,240.41
for January 2026.
Fox Funding Group, LLC, a secured creditor, will be granted a
replacement lien on post-petition assets as adequate protection,
with the same validity, priority and extent as its pre=bankruptcy
lien.
In addition, the Debtor was ordered to make monthly payments of
$4,900 to Fox, $1,033.84 to Ally Financial, and $587.91 to
Stellantis Financial.
The Debtor's use of cash collateral is conditioned on paying those
who provided labor, preferred service, materials, machinery,
fixtures or tools under A.R.S. Section 33-1005.
The final order is available at https://is.gd/oFPfR1 from
PacerMonitor.com.
About Lavender Landscape Design Co. LLC
Lavender Landscape Design Co. LLC, based in Tempe, Arizona,
provides luxury landscape architecture, design, and construction
services for residential clients, offering features such as 3D
renderings, custom fire pits, water features, swimming pools,
hardscaping, and outdoor lighting. Founded in 2019 by Haley Tew,
the Company operates from a 20,000-square-foot facility and serves
clients across Arizona with an emphasis on personalized, high-end
outdoor environments. The firm handles both design and build
phases
in-house, catering to projects ranging from mid-sized renovations
to multimillion-dollar estate landscapes.
Lavender Landscape Design Co. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-07403) on August
9, 2025. In its petition, the Debtor reports estimated assets
between $100,000 and $500,000 and estimated liabilities between $1
million and $10 million.
Honorable Bankruptcy Judge Madeleine C. Wanslee handles the case.
The Debtor is represented by Ronald J. Ellett, Esq., at Ellett Law
Offices, P.C.
LEISURE INVESTMENTS: Marineland Dolphin Sale to #1 Apex Assoc. OK'd
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware has approved
Leisure Investments Holdings LLC and its affiliates, to sell
substantially all Assets, free and clear of liens, claims,
interests, and encumbrances.
The Debtors and their affiliates operate more than 30
attractions—dolphin habitats, marinas and water, theme, and
adventure parks—in eight countries across three continents, with
primary operations in Mexico, the United States, and the Caribbean,
including Jamaica, Cayman Islands, Dominican Republic and St.
Kitts. The Company also has locations in Italy and Argentina. The
Company's parks are home to approximately 2,400 animals from more
than 80 species of marine life, including hundreds of marine
mammals (such as dolphins, sea lions, manatees and seals), birds,
and reptiles. The Company's new management and their advisors
continue to diligence the Assets and Properties.
The Court has authorized the Debtor to sell substantially all of
the Debtors' assets associated with Marineland Dolphin Adventure,
located at 9600 N. Oceanshore Boulevard, Flagler County, Florida to
#1 Apex Association, LLC and/or its permitted assignee in the
purchase price of $6,500,000.00.
he Debtors have demonstrated compelling circumstances and a good,
sufficient, and sound business purpose and justification for
entering into the Purchase Agreement, which provides for, among
other things, the sale of the Purchased Assets to the Purchaser.
The Debtors have afforded potential purchasers a full and fair
opportunity to participate in the bidding process for the Purchased
Assets and to make higher or otherwise better offers.
The Debtors determined, in their reasonable business judgment, in a
manner consistent with their fiduciary duties and after
consultation with the Committee and the Lenders that the
Purchaser’s Qualified Bid, as documented in the Purchase
Agreement, was the highest or otherwise best Qualified Bid for the
Purchased Assets.
The Debtors and the Purchaser, and their respective counsel and
other advisors, have not engaged in any conduct that would cause or
permit the Purchase Agreement or the consummation of the Sale to be
avoided, or costs or damages to be imposed.
None of the Debtors or the Purchaser has engaged in any conduct
that would prevent the application of section 363(m) of the
Bankruptcy Code.
The Purchaser is purchasing the Purchased Assets in good faith and
for fair and reasonable consideration, and the Purchaser is a
good-faith purchaser.
The Purchaser is not a "successor" to, a mere continuation of, or
an alter ego of the Debtors or their estates, and there is no
continuity of enterprise or common identity between the Purchaser
and the Debtors by reason of any theory of law or equity.
The transfer of the Purchased Assets to the Purchaser will be a
legal, valid, and effective transfer of the Purchased Assets, and
will vest the Purchaser with all right, title, and interest of the
Debtors to the Purchased Assets free and clear, to the fullest
extent permitted by law.
The Debtors may sell the Purchased Assets free and clear of all
Interests (other than the Permitted Encumbrances and the Assumed
Liabilities) because, in each case, one or more of the standards.
About Leisure Investments Holdings
Leisure Investments Holdings LLC and affiliates are operating under
the name "The Dolphin Company," manage over 30 attractions,
including dolphin habitats, marinas, water parks, and adventure
parks, located in eight countries across three continents. Their
primary operations are based in Mexico, the United States, and the
Caribbean, with locations in Jamaica, the Cayman Islands, the
Dominican Republic, and St. Kitts. These attractions are home to
approximately 2,400 animals from more than 80 species of marine
life, including a variety of marine mammals such as dolphins, sea
lions, manatees, and seals, as well as birds and reptiles. As of
2023, the marine mammal population at the Debtors' parks includes
roughly 295 dolphins, 51 sea lions, 18 manatees, and 18 seals.
Leisure Investments Holdings LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case 25-10606) on
March 31, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $100 million and $500 million each.
Honorable Bankruptcy Judge Laurie Selber Silverstein handles the
case.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP as counsel;
Riveron Management Services, LLC as restructuring advisor; and
Kurtzman Carson Consultants, LLC d/b/a Verita Global, as claims &
noticing agent.
LJS ASSOCIATES: L. Todd Budgen Named Subchapter V Trustee
---------------------------------------------------------
The Acting U.S. Trustee for Region 21 appointed L. Todd Budgen,
Esq., a practicing attorney in Longwood, Fla., as Subchapter V
trustee for LJS Associates, LLC.
Mr. Budgen will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Budgen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
L. Todd Budgen, Esq.
P.O. Box 520546
Longwood, FL 32752
Tel: (407) 232-9118
Email: Todd@C11Trustee.com
About LJS Associates LLC
LJS Associates, LLC filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04036) on
November 3, 2025, with up to $50,000 in assets and liabilities.
Judge Jacob A. Brown presides over the case.
Rehan N. Khawaja, Esq., at the Law Offices of Rehan N. Khawaja
represents the Debtor as bankruptcy counsel.
LTR INTERMEDIATE: S&P Upgrades ICR to 'B', Outlook Stable
---------------------------------------------------------
S&P Global Ratings raised all ratings on LTR Intermediate Holdings
Inc. (dba Liberty Tire; LTR), including its issuer credit rating on
LTR to 'B' from 'B-'. S&P will withdraw the ratings on the existing
debt in the capital structure once the transaction closes and it is
fully repaid.
S&P said, "We also assigned our 'B' issue level rating to the new
$500 million term loan due 2032 and the $100 million RCF due 2030,
with a '3' (rounded estimate: 50%) recovery rating. The '3'
recovery rating reflects our expectation for meaningful recovery in
the event of default.
"The stable outlook reflects our expectation that pricing actions,
cost-savings initiatives, and improved outbound product mix will
support improved cash flow generation. We believe this will enable
Liberty Tire to generate positive free cash flows that are
sufficient to meet its ongoing debt obligations, as well as
maintain adequate liquidity."
On Oct. 12, 2025, LTR signed a definitive agreement to be acquired
by I Squared Capital (ISQ).
Financing for the transaction will comprise about $1.030 billion of
cash equity contribution from ISQ, a new $500 million term loan B,
and a $100 million revolving credit facility (RCF; undrawn at
close).
The upgrade reflects LTR's improved debt leverage profile following
the substantial equity infusion and acquisition by ISQ. S&P said,
"Given the proposed debt paydown and equity capital, we expect
strengthened credit measures, including S&P Global Ratings-adjusted
debt to EBITDA of 4.5x-5.5x over the next 12 months. Furthermore,
in 2026, we expect LTR to continue its growth trajectory, driven by
strategic expansion, sustainability initiatives, and increasing
demand for recycled rubber products. Growth is further fueled by
LTR's acquisition strategy and investments in automation under new
ownership by ISQ." End markets such as infrastructure, playground
surfacing, and industrial fuel are key demand drivers, with LTR
reporting over 81% end-market utilization of recovered materials.
S&P said, "We expect debt leverage will remain appropriate for the
current rating, with supportive financial policies. LTR has
successfully grown organically and inorganically over the past few
years while preserving credit metrics appropriate for the rating.
We expect any future acquisitions will be partly backed by common
equity earmarked for growth by ISQ. We forecast LTR will maintain a
weighted-average S&P Global Ratings-adjusted debt-to-EBITDA ratio
of less than 6.5x.
"We don't expect any changes to LTR's business risk profile under
ISQ. The company operates a vertically integrated business model
centered on collecting, processing, and repurposing end-of-life
tires into valuable products such as tire-derived fuel, crumb
rubber, and rubber mulch. A key strength of this model is its
scale--LTR processes over 200 million tires annually--allowing it
to serve diverse end markets including infrastructure, energy, and
landscaping. The company maintains a dominant market share, at
several times larger than its next largest competitor. Its national
footprint and investment in advanced processing technologies also
enhance operational efficiency and environmental impact.
"We believe LTR has improved its fundamentals and end-use
diversity, but it remains susceptible to changing industry
dynamics. The company has been a leader and established player in
the tire collection and processing space for several years. We
believe LTR's fundamentals have improved since its restructuring in
2015 and view its capital structure as much more manageable.
However, we remain wary that it may be susceptible to challenging
industry dynamics and external factors, including more aggressive
competition, tire collection volumes being tied to miles driven,
and potentially stricter environmental regulations. Historically,
LTR focused and depended on the field and turf sales end market,
though it has since expanded its end uses to enhance its presence
as a leading tire recycler. Additionally, while the company has
improved profitability in recent years, its EBITDA margins are
average, particularly for a company with such strong market share
in the niche industry.
"The stable outlook on LTR reflects our expectation that it will
maintain the improved leverage levels over the next year with
pricing actions in its inbound business, cost-savings initiatives,
and improved outbound product mix, supporting improved cash flow
generation, while maintaining weighted-average leverage below 6.5x.
Under our base-case assumptions, we do not expect LTR will fund any
acquisitions with material debt.
"We could lower our ratings on LTR within the next 12 months if a
significant decline in its operating performance leads to
weighted-average debt leverage exceeding 6.5x with no near-term
remedy. This could occur if its EBITDA margins deteriorate by 300
basis points (bps), in addition to a sustained period of negative
free cash flow generation, which could constrain liquidity and lead
to a negative rating action.
"We could also consider a lower rating if the company does not
maintain prudent financial policies that support credit metrics we
view as commensurate with the current rating. We would view the
pursuit of debt-funded growth initiatives or dividend distributions
to owners as inconsistent with our current financial policy
expectations.
"We could take a positive rating action on LTR within the next 12
months if its weighted-average S&P Global Ratings-adjusted leverage
improves below 5x for consecutive quarters, which could occur with
a 300 bps improvement in EBIDA margins, combined with positive free
cash flow generation and our belief that ISQ is committed to
maintaining financial policies that support improved metrics."
LUNAI BIOWORKS: Nasdaq Confirms Compliance After Annual Meeting
---------------------------------------------------------------
Lunai Bioworks Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on July 7, 2025, the
Company received a written notice from the Listing Qualifications
Department of The Nasdaq Stock Market LLC notifying the Company
that it was no longer in compliance with Nasdaq Listing Rule
5620(a), which requires that listed companies hold an annual
meeting of shareholders no later than one year after the end of
their fiscal year.
Based on the Company's October 31, 2025 annual meeting, Nasdaq
determined that the Company now complies with the Rule and has
closed the matter.
About Lunai Bioworks
Headquartered in Los Angeles, Calif., Lunai Bioworks Inc. (formerly
Renovaro Inc.) is an AI-powered drug discovery and biodefense
company pioneering safe and responsible generative biology. With
proprietary neurotoxicity datasets, advanced machine learning, and
a focus on dual-use risk management, Lunai is redefining how
artificial intelligence can accelerate therapeutic innovation while
safeguarding society from emerging threats.
As of June 30, 2025, the Company had total assets of $8.23 million,
$29.58 million in total liabilities, and $21.35 million in total
shareholders' deficit.
Draper, Utah-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated September 29, 2025, attached to the Company's Annual
Report on Form 10-K for the fiscal year ended June 30, 2025, citing
that the Company has incurred substantial recurring losses from
operations, has used cash in the Company's continuing operations,
and is dependent on additional financing to fund operations, which
raises substantial doubt about its ability to continue as a going
concern.
MALIZUP LLC: Unsecured Creditors to Split $600K over 5 Years
------------------------------------------------------------
Malizup LLC filed with the U.S. Bankruptcy Court for the Northern
District of Texas an Amended Plan of Reorganization dated November
5, 2025.
The Debtor is a Texas limited liability company, established on
April 7, 2021, and operates a Japanese steakhouse located in
Weatherford, Texas.
This case was commenced due primarily to cash flow issues stemming
from the use of certain merchant cash advance loans.
The Plan provides for a reorganization and restructuring of the
Debtor's financial obligations. The Plan provides for a
distribution to Creditors in accordance with the terms of the Plan
from the Debtor over the course of five years from the Debtor's
continued business operations.
Class 3 consists of Non-Priority Unsecured Claims. Each holder of
an Allowed Unsecured Claim in Class 3 shall be paid by Reorganized
Debtor from an unsecured creditor pool, which pool shall be funded
at the rate of $10,000.00 per month ($600,000.00 over the life of
the plan). Payments from the unsecured creditor pool shall be paid
quarterly, for a period not to exceed five years (20 quarterly
payments) and the first quarterly payment will be due on the 20th
day of the first full calendar month following the last day of the
first quarter.
The Debtor estimates the aggregate of all Allowed Class 3 Claims is
approximately $800,000.00 based upon the Debtor's review of the
Court's claim register, the Debtor's bankruptcy schedules, and
anticipated Claim objections.
Class 4 consists of the holders of Allowed Interests in the Debtor.
The holder of an Allowed Class 4 Interest shall retain their
interests in the Reorganized Debtor.
The Debtor proposes to implement and consummate this Plan through
the means contemplated by Sections 1123 and 1145(a) of the
Bankruptcy Code.
A full-text copy of the Amended Plan dated November 5, 2025 is
available at https://urlcurt.com/u?l=oC5M2b from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Robert T. DeMarco, Esq.
Michael S. Mitchell, Esq.
DeMarco·Mitchell, PLLC
12770 Coit Road, Suite 850
Dallas, TX 75251
Telephone: (972) 991-5591
Facsimile: (972) 346-6791
E-mail: robert@demarcomitchell.com
mike@demarcomitchell.com
About Malizup LLC
Malizup LLC, operating as Otani Steakhouse, a restaurant business
in the food service industry.
Malizup LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Tex. Case No. 25-42948) on August 7, 2025. In its
petition, the Debtor reports estimated assets between $50,000 and
$100,000 and estimated liabilities between $500,000 and $1
million.
Honorable Bankruptcy Judge Mark X. Mullin the case.
The Debtor is represented by Robert Thomas DeMarco, Esq. at DeMarco
Mitchell, PLLC.
MANTECH INTERNATIONAL: S&P Assigns 'B+' ICR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings assigned a 'B+' issuer credit rating to Mantech
International Corp. (Mantech). At the same time, S&P assigned a
'B+' issue-level rating to Mantech's proposed $2.15 billion term
loan B with a recovery rating of '3', indicating its expectation
for meaningful recovery in the event of a default (50%-70%; rounded
estimate: 50%).
S&P said, "The stable outlook reflects our expectations that the
company's credit metrics will improve over the next year or two and
remain appropriate for the rating. We expect that strong demand
across critical national security initiatives will drive sales
growth while strong profitability contributes to growing positive
cash flow.
"We expect steady growth as robust defense spending aligns well
with Mantech's capabilities."
Mantech offers a comprehensive range of capabilities, including
advanced cyber solutions, artificial intelligence (AI), IT
infrastructure modernization, and mission intelligence, which align
with the priorities of the Department of Defense and national
security agencies. The company has consistently secured significant
contract awards, supporting a book-to-bill ratio of over 1.5x
through the last twelve months.
S&P said, "While we anticipate this positive trend to persist,
potential delays in government appropriations could impact the
timing of future awards. We expect near-term growth to be fueled by
the effective execution of existing contracts and the ramp-up of
recent awards, such as the SOUTHCOM SCITES 2 contract valued at up
to $910 million over its duration, along with recompetes and new
awards that complement Mantech offerings. Given the critical
importance of maintaining technological readiness, we foresee
continued investment in Mantech's capabilities. We project the
company's top-line revenue will grow 7%-10% in 2026 and 2027.
"We expect healthy margins to support free cash flow generation.
"We expect Mantech's S&P Global Ratings-adjusted EBITDA margin to
be 10%-12% in fiscal years 2025 and 2026, in line with 2024.
Mantech's management team has prioritized improving its cost
structure, addressing operating inefficiencies related to
equipment, labor costs, and operating systems over the past year,
with other impactful improvements expected. We forecast only a
minimal positive impact on margins related to such initiatives due
to the company's exposure to cost-plus contracts, which make up
over 65% of revenues, however we expect changes to allow for
improved contract execution. Further, we expect lower interest
expense related to the proposed refinancing to benefit cash flows.
In addition, capital expenditure requirements are modest,
supporting expanded free operating cash flow ('FOCF'). We expected
FOCF to debt to measure between 2.5% and 7.5% in 2025 and 2026.
"Despite the limited margin expansion, we do not expect much
downside to the margins given the ability for the company to pass
cost overruns on to its customers. We forecast it will deploy cash
flow toward research and development (R&D) programs, smaller
tuck-in acquisitions for inorganic growth, and discretionary debt
repayments, which will further strengthen the company's financial
position and credit profile. We expect its S&P Global
Ratings-adjusted debt to EBITDA to measure 5.75x-6.25x in 2025,
improving to 5.5x-6.0x in 2026, while funds from operations (FFO)
to debt measures 7.0%-12.0% in 2025 and 2026.
"We expect Mantech's financial policy will incorporate periodic
acquisitions, though it will prioritize deleveraging the balance
sheet.
"We view the company as well-positioned to expand cash flow
generating capacity through existing contract execution and new
contract ramp up. Management has noted that reducing leverage is a
priority, which we expect will result mainly from allocating
capital toward organic growth improving the company's EBITDA base.
Though we view smaller bolt-on acquisitions as a possibility, we
anticipate the company will fund such targets through cash from
operations or funds from the proposed delayed draw term loan.
Further, we do not anticipate Carlyle, the financial sponsor, to
allocate capital toward dividends over the forecast period,
allowing meaningful free cash flow to be allocated toward
discretionary debt paydown.
"The stable outlook indicates our expectation that Mantech's
financial metrics will remain consistent with the rating over the
next 12 months. We believe the company is strategically positioned
to capitalize on the government's increased focus on cybersecurity
and mission intelligence across multiple departments, as well as
leverage its IT and cybersecurity expertise in support of the
government's initiative to modernize and protect networks within
key agencies. We anticipate its credit metrics will align with the
rating through the forecast period, including leverage of
5.75x-6.25x in 2025 and 5.5x-6.0x in 2026, and FFO to debt of
7.0%-12.0% in 2025 and 2026.
"We could lower our ratings on Mantech if debt to EBITDA is above
6.0x or free cash flow approaches break-even, and we expect them to
remain at such levels." This could occur if:
-- Contract awards slow to a pace allowing book-to-bill to decline
meaningfully;
-- Government appropriations shift; or
-- Management's or the sponsor's financial policy become much more
aggressive than expected.
S&P could raise its rating on Mantech if the company's debt to
EBITDA declines well below 5.0x while free operating cash flow
remains positive, and the sponsor illustrates a willingness to
maintain credit metrics at such levels. This could occur if:
-- The pace of contract awards increases faster than expected;
and
-- The company deleverages faster than anticipated by allocating
free operating cash flow toward debt paydown.
MARRIOTT VACATIONS: S&P Downgrades ICR to 'B+', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Marriott
Vacations Worldwide Corp. (MVW) to 'B+' from 'BB-'. S&P also
lowered its issue-level ratings on MVW's secured and unsecured debt
by one notch, to 'BB' and 'B', respectively. S&P's '1' recovery
rating (90%-100%; rounded estimate: 95%) on its existing secured
debt, as well as its '5' recovery rating (20%-30%; rounded
estimate: 25%) on its unsecured debt remain unchanged.
S&P said, "The negative outlook reflects our forecast for S&P
Global Ratings-adjusted debt to EBITDA of 7.5x-8.0x in 2025, above
our 6.5x downgrade threshold. Additionally, MVW will likely
generate negative discretionary cash flow as it completes its
modernization program, in which it expects to invest approximately
$200 million through 2026. We are limiting our downgrade to one
notch, despite leverage that remains above our 'B+' threshold
through 2026, because we expect leverage to decline under 6x in
2027 once the company completes its investment.
"MVW has underperformed our base-case forecast for volume per guest
(VPG) and total contract sales thus far in 2025 as competitive
pressures in the timeshare industry increase. We expect the company
to adjust its pay structure, which we believe could result in
higher spending on marketing and sales in order to attract and
retain top sales staff and drive tour growth. At the same time, the
company continues to spend aggressively on technology and
automation within its sales and corporate operations as part of its
modernization program, which is expected to continue through 2026.
"Under our downwardly revised base-case forecast. we now expect MVW
to end 2025 with S&P Global Ratings-adjusted leverage of 7.5-8.0x.
We expect leverage will decline in 2026 to about 6.5x as some of
the company's initiatives begin to generate cost savings and drive
revenue growth, but it will likely remain higher that our 5.5x
leverage downgrade threshold at the 'BB-' rating.
"We lowered our rating because we now forecast S&P Global
Ratings-adjusted leverage to remain above 5.5x through at least
year end 2026. We expect MVW's contract sales to decline 2%-3% in
2025, which is in line with the company's revised guidance it
issued on its third-quarter earnings call, as VPG declines 3%-4%
and tour flow increases approximately 0.5%. The decline in VPG and
contract sales was primarily driven by weakness in two of MVW's key
markets, Orlando and Maui, which management attributed to multiple
factors."
Fewer-than-expected owner arrivals to resorts across the portfolio,
driven by an increase in third-party commercial rental activity,
reduced resort inventory available to existing owners. This reduced
tours growth among existing owners, who are historically more
likely to purchase incremental points at higher VPG levels and
carry a higher margin than new owner sales.
Second, management noted turnover among sales executives increased
in the third quarter, which hindered VPG because of the time
necessary to train new sales employees given the complexity of
making a timeshare purchase. S&P expects the loss of key personnel
impaired closing efficiency in the third quarter. Lastly,
management explained that some of its Sheraton sales centers,
specifically in Orlando, likely saw soft demand given a
lower-income consumer.
S&P said, "On its recent third quarter earnings call, management
noted it adjusted its sales and marketing incentives to align with
its long-term objectives, which we expect is intended to attract
top sales executives and retain current ones, and could increase
its sales and marketing expense marginally in 2026. The company is
also curbing third-party commercial rental activity and
implementing FICO scoring data for marketing purposes, both of
which we expect will enable VPG growth in 2026 as owner arrivals
increase and sales become more efficient. We assume both tours and
VPG will increase 1%-2% in 2026, aided by some of the investments
made to its marketing and sales operations.
"Despite the weakness in contract sales, we expect a smaller
provision for loan losses and modest increases in its rental,
management, and exchange segments will result in 2%-3% revenue
growth in 2025. The provision for loan losses declined in 2025
despite provisioning at a higher rate than historical levels
because the company recorded an excess provision charge in the
second quarter of 2024.
"However, we expect S&P Global Ratings-adjusted EBITDA margin to
deteriorate to about 13% in 2025 compared with 17.5% in 2024, which
results in an approximate 25% decline in its S&P Global Ratings'
captive-adjusted EBITDA in 2025. The is primarily attributable to
increased investment spending through its modernization program, in
which the company intends to spend approximately $200 million
between 2025 and 2026. The EBITDA decline is worse in 2025 than
2026 because the company will not yet benefit from costs savings
generated through improved technology and outsourcing of some
corporate functions until 2026.
"We believe MVW will begin to reduce leverage in 2026 to about 6.5x
as the company benefits from cost savings generated from the
initiative. This is despite our expectation that increased spending
in its modernization program will impair margin and EBITDA
generation in 2025. While MVW plans to spend an approximately
equivalent amount on technology and automation initiatives in 2026
compared with 2025, we expect it to benefit from $50 million-$100
million of cost savings through streamlined operations."
The company has indicated it expects to achieve $150 million-$200
million of run-rate EBITDA through increased revenue and cost
savings following the completion of its investment. As an example,
it reorganized and outsourced a portion of its human resources,
finance, and accounting functions to third-party providers, which
will save about $20 million in annual costs going forward. The
program also included revenue-driving initiatives for both existing
and new owner arrivals, such as offering Marriott Bonvoy points
members for arrivals on specific dates, which should result in
incremental tour growth.
S&P said, "Primarily due to our expectation for cost savings, we
forecast its S&P Global Ratings' captive-adjusted EBITDA margin to
increase to 15%-16% by year end 2026 and 18%-19% in 2027 once the
program is completed. Furthermore, we expect S&P Global
Ratings-adjusted leverage of about 6.5x in 2026, potentially
improving to 5.0x-5.5x in 2027.
"The negative outlook reflects our forecast for S&P Global
Ratings-adjusted debt to EBITDA of 7.5x-8.0x in 2025, above our
6.5x downgrade threshold. Additionally, MVW will likely generate
negative discretionary cash flow as it completes its modernization
program, in which it expects to invest approximately $200 million
through 2026. We are limiting our downgrade to one notch, despite
leverage that remains above our 'B+' threshold through 2026,
because we expect leverage to decline under 6x in 2027 once the
company completes its investment."
S&P could lower the rating if:
-- Travel demand weakens and VPG and contract sales decline in a
manner that causes the company to sustain captive-adjusted debt to
EBITDA above 6.5x;
-- Costs associated with its modernization effort are
significantly greater than expected and S&P expects leverage to
materially increase compared with its base-case forecast in 2026;
-- Risk in the captive-finance subsidiary rises enough to impair
the parent's financial risk, which could occur if the captive
sustains debt to equity above 5x or loan losses in the captive's
portfolio increase materially.
S&P could revise its outlook to stable if:
-- S&P expects MVW will sustain S&P Global Ratings-adjusted
leverage comfortably under 6.5x, even when incorporating operating
volatility over the economic cycle; and
-- S&P believes its leverage would remain under 6.5x while
incorporating potential leveraging transactions and share
repurchases.
MAUSER PACKAGING: Launches Exchange Offers for 2027 Notes
---------------------------------------------------------
Mauser Packaging Solutions Holding Company announced on November 7,
2025, that it has commenced offers to certain eligible holders to
exchange:
(i) any and all $2,695.8 million of its outstanding principal
amount of 7.875% Senior First Lien Notes due 2027 for newly issued
7.875% Senior First Lien Notes due 2030and
(ii) any and all $1,343.5 million of its outstanding principal
amount of 9.25% Senior Secured Second Lien Notes due 2027 for newly
issued 9.25% Senior Secured Second Lien Notes due 2030, each upon
the terms and conditions set forth in the Confidential Offering
Memorandum and Consent Solicitation Statement dated November 7,
2025.
Eligible holders that validly tender and do not validly withdraw
their Old First Lien Notes in the Exchange Offer prior to 5:00
p.m., New York City time, on November 21, 2025 will receive $1,000
in principal amount of New First Lien Notes per $1,000 principal
amount of Old First Lien Notes validly tendered and not validly
withdrawn prior to the Early Tender Time, and eligible holders that
validly tender and do not validly withdraw their Old Second Lien
Notes in the Exchange Offer prior to the Early Tender Time will
receive $1,000 in principal amount of New Second Lien Notes per
$1,000 principal amount of Old Second Lien Notes validly tendered
and not validly withdrawn prior to the Early Tender Time, which
includes an early tender premium of $50 and $50, respectively,
principal amount of such applicable series of New Notes.
For any Old First Lien Notes validly tendered and not validly
withdrawn after the Early Tender Time, but before the expiration of
the First Lien Note Exchange Offer, eligible holders will receive
$950 in principal amount of New First Lien Notes per $1,000
principal amount of Old First Lien Notes validly tendered after the
Early Tender Time and not validly withdrawn before the expiration
of the First Lien Note Exchange Offer, and for any Old Second Lien
Notes validly tendered and not validly withdrawn after the Early
Tender Time, but before the expiration of the Second Lien Note
Exchange Offer, eligible holders will receive $950 in principal
amount of New Second Lien Notes per $1,000 principal amount of Old
Second Lien Notes validly tendered after the Early Tender Time and
not validly withdrawn before the expiration of the Second Lien Note
Exchange Offer.
The New Notes will have collateral substantially identical to the
Old Notes. The New Notes will mature on April 15, 2030 and will
first be redeemable at a fixed price on June 1, 2027.
The New Notes will be Mauser's senior obligations and will rank
equally in right of payment with all of Mauser's existing and
future senior obligations, including its secured lending facilities
and any untendered Old Notes that remain outstanding after
completion of the Exchange Offers.
The New First Lien Notes will be secured on a first-priority basis
by Mauser's fixed asset collateral and on a second-priority basis
by certain asset-backed loan priority collateral. The New Second
Lien Notes will be secured on a second-priority basis by Mauser's
fixed asset collateral and on a third-priority basis by certain
asset-backed loan priority collateral. All untendered Old Notes
that remain outstanding after completion of the Exchange Offers and
Consent Solicitations will be effectively junior to the New Notes
to the extent of the value of the collateral securing the New
Notes.
In conjunction with the Exchange Offers, Mauser is soliciting
consents to release the liens and the security interests in the
collateral securing each series of Old Notes and to eliminate
certain restrictive covenants and events of default in the
indentures governing the Old Notes, which requires participation
from holders representing at least 66 2/3% of the outstanding
principal amount of each series of the Old Notes to adopt the
proposed amendments with respect to such series of Old Notes.
Holders who tender their Old Notes in the Exchange Offers will be
deemed to have submitted consents pursuant to the Consent
Solicitations.
Several eligible holders of Old First Lien Notes and Old Second
Lien Notes, which, together with certain of their respective
affiliated funds, hold approximately 65.9% and 54.3% of the
outstanding principal amount of the Old First Lien Notes and Old
Second Lien Notes, respectively, have executed support agreements
to agree to or otherwise expressed their intention to tender all of
their Old Notes in the Exchange Offers.
The Exchange Offers are subject to the terms and the satisfaction
or waiver of certain conditions set forth in the Offering
Memorandum, including that Mauser receives valid tender by eligible
holders representing at least 80% of the aggregate principal amount
of the Old Notes outstanding at or prior to the Expiration Time,
and entry into the Cash Flow Agreement Amendment and the ABL
Amendment.
In addition, the consummation of each Exchange Offer and the
related Consent Solicitation is cross-conditioned on the
consummation of the other Exchange Offer and related Consent
Solicitation.
Eligible holders whose Old Notes are accepted for exchange will
also receive accrued and unpaid interest in cash on the exchanged
Old Notes to, but not including, the applicable settlement date.
Settlements are expected to occur promptly after the Early Tender
Time for Old Notes validly tendered and not validly withdrawn prior
to the Early Tender Time and promptly after the expiration of the
Exchange Offers for Old Notes validly tendered and not validly
withdrawn after the Early Tender Time but before expiration of the
Exchange Offers.
Interest on the New Notes will accrue from (and including) the
initial settlement date. As a result, the cash payable for accrued
interest on any Old Notes exchanged following the initial
settlement date will be reduced by the amount of any pre-issuance
interest on the New Notes exchanged therefor.
The Exchange Offers and Consent Solicitations will expire at 5:00
p.m., New York City time, on December 9, 2025 (unless extended or
earlier terminated). Validly tendered Old Notes may be validly
withdrawn at any time prior to 5:00 p.m., New York City time, on
November 21, 2025, but not thereafter.
In connection with the Exchange Offers, Mauser intends to enter
into an amendment to the credit agreement governing its existing
term loan facility to refinance the existing term loan facility
with a new $1,000.0 million term loan facility maturing April 15,
2030 and to extend the maturity date of the cash flow revolver
facility thereunder to January 14, 2030.
Additionally, in connection with the Exchange Offers, Mauser
intends to enter into an amendment to, among other things, extend
the maturity date of Mauser's asset-based revolving facility to
January 14, 2030. The New Term Loan Facility, as amended by the
Cash Flow Agreement Amendment, would equally and ratably share in
the collateral with Mauser's current first lien debt.
Available Documents and Other Details:
Documents relating to the Exchange Offers and Consent Solicitations
will only be distributed to eligible holders who complete and
return an eligibility form confirming that they are either a
"qualified institutional buyer" under Rule 144A under the
Securities Act of 1933, as amended, or not a "U.S. person" under
Rule 902 under the Securities Act. Holders of Old Notes who desire
to complete an eligibility form should either visit the website
www.dfking.com/mauser for this purpose or request instructions by
sending an e-mail to mauser@dfking.com or calling D. F. King & Co.,
Inc., the information agent for the Exchange Offers and Consent
Solicitations, at (877) 297-1746 (U.S. Toll-free) or (646) 981-1289
(Collect).
The New Notes will not be registered under the Securities Act or
any other applicable securities laws and, unless so registered, the
New Notes may not be offered, sold, pledged or otherwise
transferred within the United States or to or for the account of
any U.S. person, except pursuant to an exemption from the
registration requirements thereof. Accordingly, the New Notes are
being offered and issued only to persons:
(i) reasonably believed to be "qualified institutional buyers" (as
defined in Rule 144A under the Securities Act) and
(ii) who are not "U.S. persons" (as defined in Rule 902 under the
Securities Act). Non U.S.-persons may also be subject to additional
eligibility criteria.
The complete terms and conditions of the Exchange Offers and
Consent Solicitations are set forth in the informational documents
relating to the Exchange Offers and Consent Solicitations. This
press release is for informational purposes only and is neither an
offer to purchase nor a solicitation of an offer to sell any
securities.
The Exchange Offers and Consent Solicitations are only being made
pursuant to the Offering Memorandum. The Exchange Offers are not
being made to holders of Old Notes in any jurisdiction in which the
making or acceptance thereof would not be in compliance with the
securities, blue sky or other laws of such jurisdiction.
About Mauser
Mauser is a global supplier of rigid packaging products and
services. Mauser currently operates manufacturing locations in over
20 countries serving industry-leading customers on an international
basis.
MAUSER PACKAGING: Moody's Rates New $150MM Secured Revolver 'B1'
----------------------------------------------------------------
Moody's Ratings assigned a B1 rating to the proposed $150 million
backed super priority senior secured revolving credit facility due
January 2030, issued by Mauser Packaging Solutions Holding Company
("Mauser").
Moody's also assigned a B2 rating to the proposed $1 billion backed
senior secured term loan B due April 2030 and the proposed $2,696
million backed senior secured first lien notes due April 2030,
issued by Mauser.
Further, Moody's assigned a Caa2 rating to Mauser's new $1,344
million backed senior secured second lien notes due April 2030.
The company's B3 corporate family rating (CFR) and B3-PD
probability of default rating (PDR) are unchanged. The rating
outlook remains stable.
Upon closing of the transaction, Moody's will withdraw the B1
rating on the company's existing super priority senior secured
revolving credit facility due May 2026; the B2 ratings on the
existing backed senior secured term loan B1 due April 2027 and the
backed senior secured first lien notes due August 2026 and April
2027; and the Caa2 rating on the existing backed senior secured
second lien notes due April 2027.
The proposed refinancing transaction is leverage neutral and
extends debt maturities. The company will extend maturities from
2026-27 to 2030, which is credit positive. The company will also
extend the maturity of its asset-based revolver (unrated) to
January 2030 from February 2028.
RATINGS RATIONALE
Mauser's B3 CFR continues to be constrained by weak credit metrics
with leverage at 7.7x debt/EBITDA and negative free cash flow
generation for the 12 months that ended June 2025.
Reflecting weak demand from major end user industries including
chemical, paints and coatings, Moody's expects key credit metrics
to remain weak through at least 2026.
Based on flat to slightly declining sale in 2025 and anemic growth
of 0.5% in 2026 in Moody's base case scenario, Moody's expects free
cash flow could remain around breakeven for 2025 but recover to
around $30 million for 2026. Management expects free cash flow
generation in 2025 to be positive, supported by seasonal
contribution from working capital changes during the second half of
the year and significant reduction of cash taxes. Continued
negative free cash flow generation would be credit negative.
Despite the weak credit metrics, Moody's expects the company to
maintain good liquidity, supported by its cash flow sources,
including $336 million of cash, access to its $150 million undrawn
super priority cash flow revolver, and the $350 million asset-based
revolver of which $187.1 million was available, all as of June 30,
2025.
Mauser's credit strengths include its leading share in the
relatively consolidated US paints and coatings market; its
long-standing relationships with many blue-chip customers that
provide some revenue stability; and a greater scale and breadth of
product line than many competitors.
Most of Mauser's sales originate from customers in industrial end
markets such as chemicals, paints and coatings, and petrochemicals,
which are more cyclical than the food and household consumer goods
markets. The company has a leading position in paint cans and
plastic/steel pails, but it also operates in a more competitive and
fragmented market for bulk shipping packaging products.
The stable outlook reflects Moody's expectations that Mauser's good
liquidity and the company's ongoing efforts to improve operational
efficiency and return to positive free cash flow generation,
despite a weak demand environment and stressed credit metrics.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade the ratings if Mauser improves its credit
metrics sustainably and maintains good liquidity. Specifically, the
ratings could be upgraded if debt/EBITDA is maintained below 6x,
EBITDA/interest expense is above 3x and free cash flow/debt is
above 4%.
Moody's could downgrade the ratings if the company's key credit
metrics fail to improve. Specifically, the ratings could be
downgraded if debt/EBITDA remains above 7x, EBITDA/interest expense
falls below 2x or free cash flow remains negative or liquidity
deteriorates.
The principal methodology used in these ratings was Packaging
Manufacturers: Metal, Glass and Plastic Containers published in
April 2025.
Headquartered in Oak Brook, Illinois, Mauser Packaging Solutions
Holding Company is a manufacturer and distributer of rigid metal,
plastic and fiber containers primarily to manufacturers of
industrial and consumer products. The company generated about $4.3
billion in revenue for the 12 months that ended June 2025. Since
2016, Mauser has been a portfolio company of Stone Canyon
Industries Holding, Inc., which controls a majority stake in the
company. Several financial investors also hold minority stakes.
MAUSER PACKAGING: S&P Rates Senior Secured First-Lien Notes 'CCC+'
------------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating and '3'
recovery rating to Mauser Packaging Solutions Holding Co.'s
proposed term loan B and senior secured first-lien notes due April
2030, and its 'CCC+' issue-level rating and '6' recovery rating to
its proposed senior secured second lien notes. The term loan B is
an amend and extend of its existing term loan, upsized to $1
billion. The notes are offered as exchanges at par prior to the
early tender time for the existing first-lien and second-lien
notes.
On Nov. 7, 2025, the company announced an offer to exchange any and
all of its $2.7 billion 7.875% senior secured first-lien notes due
2027 for new 7.875% senior secured first-lien notes due April 2030.
The new notes will rank equally in right of payment with all of
Mauser's existing senior obligations, including any untendered
existing notes that remain outstanding after the completion of the
offer, and have a first-priority security interest on substantially
all assets of the guarantors outside of the asset-based lending
(ABL) priority collateral, which it will have a second-priority
interest.
The company also announced an offer to exchange any and all of its
$1.35 billion 9.25% senior secured second-lien notes due 2027 for
new 9.25% senior secured second-lien notes due April 2030. The new
notes will rank equally in right of payment with all of Mauser's
existing senior obligations, including any untendered existing
notes that remain outstanding after the completion of the offer,
and have a second priority security interest on substantially all
assets of the guarantors outside of the ABL priority collateral,
which it will have a third priority interest.
In addition, the company will amend and extend its credit
agreements, including extending the maturity date of its $350
million ABL credit facility to Jan. 14, 2030; the maturity date of
its $150 million super-priority revolving credit facility to Jan.
14, 2030; and the maturity of its Term Loan B facility to April 15,
2030. The Term Loan B will be upsized to $1 billion from $780
million, with the incremental amounts used to repay debt including
the approximately $154 million outstanding of senior secured
first-lien notes due 2026.
S&P said, "We expect a strong majority of lenders of the notes will
elect to exchange the existing 2027 notes for the new 2030 notes.
As a result, the debt maturity risk, which we have cited in our
previous publications, will be diminished because the company will
not have any material long-term debt maturities until 2030. We note
the company's entire long-term capital structure comes due in April
2030, which we will view as a growing risk for the company as we
move closer to maturity. We would expect the company to refinance
the debt well in advance of it becoming current under our current
rating expectation, all else remaining equal. Our 'B' issuer credit
rating and stable outlook on Mauser are unchanged."
MEYER BURGER: Plan Exclusivity Period Extended to January 21, 2026
------------------------------------------------------------------
Judge Craig T. Goldblatt of the U.S. Bankruptcy Court for the
District of Delaware extended Meyer Burger (Holding) Corp. and its
affiliated debtors' exclusive periods to file a plan of
reorganization and obtain acceptance thereof to January 21, 2026
and March 23, 2026, respectively.
As shared by Troubled Company Reporter, based on the weighing of
the relevant factors, there is more than sufficient cause to
approve the extension of the Exclusive Periods:
* The Chapter 11 Cases have involved complex legal and factual
issues. As described in more detail in the First Day Declaration,
the Debtors commenced the Chapter 11 Cases to conduct a value
maximizing Sale Process for the benefit of their stakeholders.
Since the Petition Date, the Debtors have worked diligently to
progress the Sale Process, which culminated in the Court's approval
of a sale of substantially all of the Debtors' assets.
* The Debtors are not seeking an extension to prejudice the
Debtors' creditor constituencies or grant the Debtors any unfair
bargaining leverage. The Debtors have no ulterior motive in seeking
an extension of the Exclusive Periods. The Debtors have been in
regular communication with their creditor constituencies on
numerous issues facing their estates, including formulation of a
path forward for the Chapter 11 Cases, and have worked diligently
in the prepetition and postpetition periods to maximize the value
of their estates.
Consistent with their fiduciary duties, the Debtors will use the
extended Exclusive Periods to continue to negotiate with all
interested parties to develop, file, and solicit a chapter 11 plan
or to reach an alternative resolution of these Chapter 11 Cases.
The Debtors substantial progress in administering these Chapter 11
Cases supports the requested extension of the Exclusive Periods.
In addition, termination of the Exclusive Periods would adversely
impact the Debtors' efforts to preserve and maximize the value of
their estates and the progress of the Chapter 11 Cases. Such
termination may disincentivize creditors from negotiating with the
Debtors, inject uncertainty into the Chapter 11 Cases, and would
undermine the Debtors' efforts to successfully conclude these
Chapter 11 Cases.
The Debtors' Counsel:
Paul N. Heath, Esq.
Brendan J. Schlauch, Esq.
Jason M. Madron, Esq.
Zachary J. Javorsky, Esq.
Nicholas A. Franchi, Esq.
RICHARDS, LAYTON & FINGER, P.A.
One Rodney Square
920 North King Street
Wilmington, Delaware 19801
Tel: 302-651-7700
Fax: 302-651-7701
E-mail: heath@rlf.com
schlauch@rlf.com
madron@rlf.com
javorsky@rlf.com
franchi@rlf.com
About Meyer Burger (Holding) Corp.
Meyer Burger (Holding) Corp. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D. Del. Case No. 25-11217) on June 25,
2025.
At the time of the filing, Debtor had estimated assets of between
$100 million to $500 million and liabilities of between $500
million to $1 billion.
Judge Craig T. Goldblatt oversees the case.
Richards, Layton & Finger, P.A., is the Debtor's legal counsel.
MIT US: Robert Handler Named Subchapter V Trustee
-------------------------------------------------
The U.S. Trustee for Region 11 appointed Robert Handler of
Commercial Recovery Associates, LLC as Subchapter V trustee for MIT
US, Inc.
Mr. Handler will be paid an hourly fee of $450 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Handler declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Robert P. Handler
Commercial Recovery Associates, LLC
205 West Wacker Drive, Suite 918
Chicago, IL 60606
Tel: (312) 845-5001 x221
Email: rhandler@com-rec.com
About MIT US Inc.
MIT US, Inc., doing business as RoyalRex Express, Inc., provides
interstate freight transportation services and operates as a motor
carrier in the United States, with its base in Plainfield,
Illinois, and maintains a fleet of trucks and utility trailers to
support its operations.
MIT US filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-17094) on November
04, 2025, listing between $1 million and $10 million in assets and
liabilities.
Judge David D. Cleary presides over the case.
David Freydin, Esq., at the Law Offices of David Freydin Ltd.
represents the Debtor as bankruptcy counsel.
MK ARCHITECTURE: Reaches Landlord Settlement; Files Amended Plan
----------------------------------------------------------------
MK Architecture PC submitted an Amended Small Business Plan of
Reorganization under Subchapter V dated November 4, 2025.
Since the filing, the Debtor has continued in the management of its
property as a debtor-in-possession pursuant to Sections 1107 and
1108 of the Bankruptcy Code.
With COVID restrictions relaxed, the Debtor's business has
improved. However, it is still slower than it was pre-COVID.
Notwithstanding, Rissetto believes that ongoing revenue should be
sufficient to pay bills as they become due and fund a Plan.
While the Debtor's operations will not result in the full payment
of Allowed Claims, it will result in at least as much of a recovery
by holders of Allowed Claims as they would receive if the Debtor
were liquidated under Chapter 7 of the Bankruptcy Code.
The Debtor will pay TD directly on its Secured Claim. In addition,
the Debtor proposes to fund the Plan with $1,500.00 per month from
operations for a period of 36 months. It will make distributions
under the Plan to Holders of Allowed Claims in installments of no
less frequent than quarterly. Because the Debtor's revenue tends to
fluctuate, installments on a quarterly basis is more feasible than
monthly.
The Landlord Settlement
The Landlord interposed objections to the Debtor's initial Plan on
various factual and legal grounds. Although the Debtor maintained
that many of the objections lacked merit, the nature of the
objections does not justify time and expense associated with
litigation. As such, the Debtor and the Landlord engaged in
discussions to resolve their dispute. Under the supervision of the
Sub Chapter V Trustee, the Landlord Settlement was reached.
A motion to approve the Landlord Settlement under Bankruptcy Rule
9019 is pending. It essentially fixes the Landlord Administrative
claim at $32,413.13 and the Landlord's general Unsecured Claim at
$148,762.18. Under the Landlord Settlement, the Landlord may offset
the security deposit that it is holding to reduce the amount due
from the Debtor. It provides for a lump sum payment to the Landlord
of $25,000.00 as well as a release of Rissetto who allegedly
guaranteed the obligation.
The Landlord is waiving any and all additional claims including any
claims based upon the Debtor's rejection of the purported lease
with the Landlord. The Landlord has committed to voting to accept
the Plan provided that its treatment is consistent with the terms
of the Landlord Settlement.
Class 2 shall consist of the secured claim of the Landlord. The
Landlord filed a claim in the amount of $175,599.70 of which
$26,837.52 is secured in the security deposit being held by the
Landlord. The Secured portion of the Landlord's Claim will be
satisfied by release of the security deposit to the Landlord. The
Landlord will thus receive distribution in full on the Secured
portion of its Claim as provided for under the Landlord
Settlement.
Class 4 shall consist of all Allowed General Unsecured Claims
including the Claim of the SBA in the amount of $158,956.74. The
SBA's Claim will be treated solely as an Unsecured Claim and
receive Distributions from the Plan Fund. Class 4 shall also
include the Unsecured Portion of the Landlord's Claim as fixed
under the Landlord Settlement.
The Plan will be funded primarily with all of the Debtor's
Disposable Income projected for the next five years. The Debtor has
projected its Disposable Income to be approximately $4,500.00 per
quarter ($1,500.00 per month). The projections reflect the
seasonality of the Debtor's business. The Disposable Income will be
placed by the Debtor into the Plan Fund which shall be maintained
in a segregated bank account. The Plan Fund and Plan will be funded
with approximately $54,000.00 in total.
It is anticipated that this will yield a distribution of at least
10% to Unsecured Creditors. Distributions under the Plan will be
made by the Disbursing Agent on a semi-annual basis (i.e. the
Disbursing Agent will remit payment to the holders of Allowed
Claims on a quarterly basis following the Effective Date).
A full-text copy of the Amended Subchapter V Plan dated November 4,
2025 is available at https://urlcurt.com/u?l=qaanbB from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Anne Penachio, Esq.
PENACHIO MALARA LLP
245 Main Street-Suite 450
White Plains, NY 10601
Telephone: (914) 946-2889
Email: frank@pmlawllp.com
About MK Architecture PC
MK Architecture PC is in the business of providing architectural
services to businesses and individuals primarily based in New York
City and the New York Metropolitan area.
The Debtor sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-22467) on May 28,
2024, listing $50,001 to $100,000 in assets and $100,001 to
$500,000 in liabilities.
Judge Sean H. Lane presides over the case.
Anne J. Penachio, Esq., at Penachio Malara LLP, is the Debtor's
counsel.
MORE THAN PLUMBING: Richardo Kilpatrick Named Subchapter V Trustee
------------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Richardo Kilpatrick,
Esq., at Kilpatrick & Associates, P.C. as Subchapter V trustee for
More Than Plumbing, LLC.
Mr. Kilpatrick will be paid an hourly fee of $375 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Kilpatrick declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Richardo I. Kilpatrick, Esq.
Kilpatrick & Associates, P.C.
903 N. Opdyke Rd., Ste. C.
Auburn Hills, MI 48326
Phone: (248) 377-0700
Fax: (248) 377-0800
Email: rkilpatrick@kaalaw.com
About More Than Plumbing LLC
More Than Plumbing, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. E.D. Mich. Case No.
25-51252) on November 5, 2025, listing up to $50,000 in assets and
between $1 million and $10 million in liabilities.
Judge Mark A. Randon presides over the case.
Kim K. Hillary, Esq., represents the Debtor as legal counsel.
NATIONAL HME: New Mountain Marks $8.2MM Loan at 64% Off
-------------------------------------------------------
New Mountain Finance Corporation has marked its $8,281,000 loan
extended to National HME, Inc. to market at $3,000,000 or 36% of
the outstanding amount, according to New Mountain's Form 10-Q for
the quarterly period ended September 30, 2025, filed with the U.S.
Securities and Exchange Commission.
New Mountain is a participant in a Subordinated Loan to National
HME, Inc. The loan accrues interest at a rate of 5.00% PIK per
annum. The loan matures on November 2025.
New Mountain is a Delaware corporation that was originally
incorporated on June 29, 2010 and completed its initial public
offering on May 19, 2011. The company is a closed-end,
non-diversified management investment company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940.
The company is focused on providing direct lending solutions to
U.S. upper middle market companies backed by private equity
sponsors. The Company's investment objective is to generate current
income and capital appreciation through the sourcing and
origination of senior secured loans and select junior capital
positions, to growing businesses in defensive.
New Mountain is led by John R. Kline as President and Chief
Executive Officer and Kris Corbett as Chief Financial Officer and
Treasurer.
The Fund can be reach through:
John R. Kline
New Mountain Finance Corporation
1633 Broadway, 48th Floor
New York, NY 10019
Tel. No.: (212) 720-0300
About National HME, Inc.
National HME is a national leader in Hospice DME focused on
superior patient care and strategic hospice support.
NEPTUNE BIDCO: Fitch Lowers Rating on First-Lien Debt to 'BB-'
--------------------------------------------------------------
Fitch Ratings has downgraded Neptune Bidco US Inc.'s (dba as
Nielsen) first-lien debt to 'BB-' with a Recovery Rating of 'RR3'
from 'BB'/'RR2.' Fitch has also assigned the company's new senior
secured notes issue level ratings of 'BB-'/'RR3', and affirmed its
Long-Term Issuer Default Rating (IDR) at 'B+'. The Outlook on the
IDR is Stable.
Nielsen is issuing additional first-lien debt to reduce its
interest burden. The company will use the proceeds to pay down its
second-lien debt, which is more expensive. Although lower interest
expense is a credit positive, the higher total amount of first-lien
debt results in a lower overall recovery for the first-lien debt
holders. This lower recovery percentage results in a downgrade
under Fitch's Recovery Ratings criteria.
Key Rating Drivers
Levered Financial Structure: Nielsen has reduced its total debt
since the LBO, primarily using divestiture proceeds. Debt reduction
is a credit positive, but Fitch expects leverage to remain above
5.5x for the next 12-18 months. This is slightly higher than
management's calculation due to fewer EBITDA addbacks in Fitch's
approach. High interest rates and low interest coverage continue to
weigh on the ratings, with cash interest above $900 million
annually. Financial flexibility is constrained by high debt
service, limiting the rating to the single 'B' category while this
persists.
Cost Cutting and Margin Expansion: Nielsen's savings and efficiency
programs over the past several years have exceeded expectations,
generating significant margin expansion. TTM, run-rate EBITDA as of
2Q25 is above Fitch's previous base case despite lower top-line
results due to divestitures. Strong EBITDA margins support the
ratings, and more earnings should convert to cash as restructuring
and other one-time items cease to be a use of cash.
FCF Improving: Fitch expects adjusted FCF margins in the low double
digits over the forecast horizon, assuming the company can maintain
its current run-rate results and EBITDA adjustments taper. As
Nielsen modernizes its technology platform, capex may take a larger
share of cash. Working capital improvements contributed to cash,
especially in 2024, but this is unlikely to continue. High FCF
potential is a strength of the company that partially mitigates the
levered financial structure.
Global Scale and Brand: Nielsen is a leader in the media
measurement business, and its measurements determine the value of
programming and advertising in over 30 countries, including the
U.S. TV advertising marketplace. The company's scale and entrenched
nature of the business provides strong credit protection and a
stable base to service its capital structure while it adapts to the
changing media landscape.
Evolving Media Environment: Nielsen is investing in its platforms
in response to media digitization as clients seek measurement for
streaming services and other online media. The company aims to
become a trusted, independent solution across media, with
partnerships that include Roku and Amazon. Nielsen is capturing
share and is well positioned as media evolves, though a single
cross-media winner is unlikely given the complexity and variables
outside its control.
Peer Analysis
The closest Fitch-rated peer from a credit-metric standpoint is
Project Boost Purchaser, LLC (d/b/a J.D. Power; B/Stable), a
provider of data and analytics solutions for the automotive
industry. Although J.D. Power is not a direct competitor to
Nielsen, it operates with a similar data and analytics business
model. Compared with J.D. Power, Nielsen has better scale, lower
leverage, and a historically better market position. Whether
Nielsen can maintain its leading market position in the complex
media landscape remains a key question, but Fitch notes that these
factors justify a higher rating for Nielsen relative to J.D.
Power.
MoneyGram International, Inc. (B/Negative) has a similar leverage
profile to Nielsen, but it is less than half as large in terms of
revenue and has materially lower margins. Fitch believes Nielsen's
industry-leading position in both legacy and high-growth subsectors
of audience measurement solutions positions it well against
non-Fitch-rated competitors like comScore and newer entrants.
Key Assumptions
- Revenue decline in 2025 due to divestitures with the company
returning to modest growth in the outer years of the forecast;
- EBITDA margin expansion continues in 2025 and 2026 due to the
savings and efficiency programs;
- Capital intensity of 6% over the forecast horizon;
- Interest rates moderate slightly over the next three to five
years.
Recovery Analysis
For entities rated 'B+' and below, where default risk is higher and
recovery prospects hold more significance for investors, Fitch
undertakes a bespoke analysis of recovery upon default for each
issuance. The resulting debt instrument rating includes a Recovery
Rating or published 'RR' (graded from RR1 to RR6) and is notched
from the IDR accordingly. In this analysis, there are three steps:
(i) estimating the distressed enterprise value (EV), (ii)
estimating creditor claims, and (iii) distribution of value.
The recovery analysis assumes the company would be reorganized as a
going concern (GC) in bankruptcy rather than liquidated. Fitch has
assumed a 10% administrative claim.
Fitch envisions a hypothetical situation in which linear TV revenue
erodes materially, and Nielsen fails to capture market share in the
online measurement sector. This would result in substantial revenue
contraction combined with EBITDA margin erosion, leading the
company to renegotiate its debt. This results in an estimated GC
EBITDA of $1.1 billion, which is unchanged from its previous
analysis.
Fitch uses a multiple of 7.0x to estimate a value for Nielsen,
supported by the company's industry leading brand recognition, high
degree of recurring revenue, strong margin profile, and overall
favorable reorganization prospects. The choice of this multiple
considered the following factors:
- Sector: The Data and Analytics Processors (DAP) typically have a
high proportion of recurring revenues, contractual rights to
proprietary data and the inherent leverage in the business model;
- Recent acquisitions: DAP M&A occurs at attractive multiples in
the range of 10x-20x+. Current EV multiples of public data
analytics companies trade in the 20x-30x range;
- Comparable reorganization multiples: Median Technology, Media,
and Telecommunications (TMT) multiples have historically been
approximately 6.0x (per TMT bankruptcy case studies).
Using a 7.0x multiple results in an EV of about $7 billion after
allowing for administrative claims and recovery of 'RR3' for the
senior-secured debt.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Loss of market share or failure to generate positive organic
revenue growth;
- Interest coverage sustained below 2.0x;
- EBITDA leverage sustained above 6.5x;
- (CFO - capex)/debt sustained below 3%.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Demonstrated success in its cross-media measurement goals and
modernization of its operations, leading to sustained revenue
growth and continued strong competitive positioning;
- EBITDA leverage sustained below 5.5x;
- (CFO - capex)/debt sustained above 5%.
Liquidity and Debt Structure
At the end of 2Q25, the company had about $280 million of cash on
the balance sheet and approximately $630 million capacity on its
revolver, net of letters of credit. The company reported first lien
net leverage of 4.0x on its 2Q compliance certificate, and Fitch
expects the issuer to remain in compliance with its covenants over
the forecast period. The earliest material maturity (approximately
$1.7 billion) is in 2028, with a significant maturity wall of $7
billion in 2029. The debt stack includes fixed-rate notes and first
and second lien loans, which are variable rate, but the company
hedges the interest rate risk.
Issuer Profile
Nielsen has a long history measuring TV and advertising viewership.
This business still provides significant cash as Nielsen
participates in the shift to audience measurement across all media
types.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Sector Forecasts Monitor
data file which aggregates key data points used in its credit
analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Neptune Intermediate LLC LT IDR B+ Affirmed B+
Neptune BidCo US Inc. LT IDR B+ Affirmed B+
senior secured LT BB- New Rating RR3
senior secured LT BB- Downgrade RR3 BB
NEW BENEVIS: New Mountain Marks $26MM Loan at 20% Off
-----------------------------------------------------
New Mountain Finance Corporation has marked its $26,071,000 loan
extended to New Benevis Holdco, Inc. to market at $20,857,000 or
80% of the outstanding amount, according to New Mountain's Form
10-Q for the quarterly period ended September 30, 2025, filed with
the U.S. Securities and Exchange Commission.
New Mountain is a participant in a Subordinated Loan to New Benevis
Holdco, Inc. The loan accrues interest at a rate of 12.00% PIK per
annum. The loan matures on October 2026.
New Mountain is a Delaware corporation that was originally
incorporated on June 29, 2010 and completed its initial public
offering on May 19, 2011. The company is a closed-end,
non-diversified management investment company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940.
The company is focused on providing direct lending solutions to
U.S. upper middle market companies backed by private equity
sponsors. The Company's investment objective is to generate current
income and capital appreciation through the sourcing and
origination of senior secured loans and select junior capital
positions, to growing businesses in defensive.
New Mountain is led by John R. Kline as President and Chief
Executive Officer and Kris Corbett as Chief Financial Officer and
Treasurer.
The Fund can be reach through:
John R. Kline
New Mountain Finance Corporation
1633 Broadway, 48th Floor
New York, NY 10019
Tel. No.: (212) 720-0300
About New Benevis Holdco, Inc.
New Benevis Holdco, Inc. operates in the United States.
NEW INSPIRATIONAL: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: New Inspirational M.B. Church, NFP
5825 W. Divison St.,
Chicago, IL 60651
Business Description: New Inspirational M.B. Church, NFP is a
nonprofit religious organization based in
Chicago, Illinois. The church conducts
worship services and community outreach
programs including food assistance, senior
support, and local relief efforts.
Chapter 11 Petition Date: November 11, 2025
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 25-17418
Debtor's Counsel: Laxmi P. Sarathy, Esq.
WHITESTONE, P.C.
7925 W 103rd Street, Suite 1A
Palos Hills, IL 60465
Tel: 312-674-7965
Fax: 312-873-4774
Email: lsarathy@whitestonelawgroup.com
Total Assets: $2,000,000
Total Liabilities: $1,257,658
The petition was signed by Pastor Andrew James Griffin as
president.
The Debtor has declared in the petition that there are no unsecured
creditors.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/CWCYFZA/New_Inspirational_MB_Chruch_NFP__ilnbke-25-17418__0001.0.pdf?mcid=tGE4TAMA
NOAH ASHER: James Cross Named Subchapter V Trustee
--------------------------------------------------
The U.S. Trustee for Region 14 appointed James Cross, Esq., at
Cross Law Firm, PLC as Subchapter V trustee for Noah Asher, LLC.
Mr. Cross will be paid an hourly fee of $525 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Cross declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
James E. Cross, Esq.
Cross Law Firm, PLC
P.O. Box 45469
Phoenix, AZ 85064
Phone: 602-412-4422
Email: jcross@crosslawaz.com
About Noah Asher LLC
Noah Asher, LLC, doing business as Armed American Supply, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Ariz. Case No. 25-10568) on November 4, 2025, with $0 to $50,000 in
assets and $1,000,001 to $10 million in liabilities.
Judge Brenda K. Martin presides over the case.
D. Lamar Hawkins, Esq. at Guidant Law, PLC represents the Debtor as
legal counsel.
NORTH AMERICAN: Gets Interim Approval to Use Cash Collateral
------------------------------------------------------------
North American Recycled Clothing, LLC received interim approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to use cash collateral to fund operations.
The interim order authorized the Debtor to use cash collateral,
including revenue collected in the ordinary course of business,
through December 3 as outlined in its budget.
The 30-day budget projects total cash disbursements of
$142,367.98.
As adequate protection for secured creditors, the court granted
them replacement liens on all post-petition cash collateral and
property acquired by the Debtor after the petition date, mirroring
the creditors' pre-bankruptcy rights and priorities.
The replacement liens do not apply to Chapter 5 causes of action
and are subject to a carveout for administrative expenses,
including fees owed to the Bankruptcy Court Clerk, U.S. trustee,
Subchapter V trustee, a potential Chapter 7 trustee and the
Debtor's counsel.
The Debtor's authority to use cash collateral will automatically
terminate upon case dismissal or conversion, trustee appointment,
expiration of the interim order, and material breach of the budget.
A final hearing is scheduled for December 3.
About North American Recycled Clothing, LLC
North American Recycled Clothing, LLC operates a secondhand textile
recycling business. Formed on September 26, 2014, the company
handles a variety of products including clothing, shoes, handbags,
toys, and household items. It purchases used bulk clothing from
thrift stores such as Goodwill and resells the bulk items to
international buyers.
North American Recycled Clothing filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. S.D. Texas. Case No.
25-36394) on October 28, 2025. At the time of the filing, the
Debtor reported up to $50,000 in assets and between $1 million and
$10 million in liabilities.
Judge Eduardo V. Rodriguez oversees the case.
The Lane Law Firm, PLLC serves as the Debtor's bankruptcy counsel.
NORTHRIVER MIDSTREAM: Moody's Cuts CFR to Ba3, Outlook Stable
-------------------------------------------------------------
Moody's Ratings has downgraded NorthRiver Midstream Finance LP's
(NorthRiver) corporate family rating to Ba3 from Ba2, the
probability of default rating to Ba3-PD from Ba2-PD, and senior
secured notes and senior secured bank credit facility ratings to
Ba3 from Ba2. The outlook was changed to stable from ratings under
review. This concludes the review initiated on October 02, 2025.
The conclusion of the review follows the November 06, 2025
announcement that NorthRiver has closed on funding for the
Pipestone transaction. The $552 million bonds will be ring-fenced
from NorthRiver into a new unrestricted subsidiary. Proceeds will
be used for a combination of debt payment, shareholder
distributions and growth capital. Moody's expects the company to
fully repay the outstanding balance on its revolver and conserve
some cash post transaction to fund growth capital.
The downgrade reflects higher gross leverage following the
transaction, which Moody's expects to persist for the duration of
the NEBC Connector build out. While the proposed debt will sit at
an unrestricted subsidiary and be non-recourse to NorthRiver,
following the same structure as the Cabin bonds, the transaction
will also erode cash flows available to support growth and service
restricted group debt.
RATINGS RATIONALE
NorthRiver's rating is supported by: (1) strong earnings visibility
supported by take-or-pay contracts constituting approximately 90%
of revenue; (2) a diversified customer base underpinned by strong
counterparties; (3) extensive natural gas pipeline and processing
footprint concentrated in prolific areas of the Montney with
differentiating sour gas processing capacity; and (4) a strong
operational track record.
The rating is constrained by: (1) high leverage, with debt to
EBITDA sustained above 5x; (2) some exposure to market demand
fluctuations involving price and volume risks on interruptible
revenue and contract renewals; (3) dependence on continued
development of the Montney for growth; and (4) ownership by private
equity (Brookfield Infrastructure), with a track record of
prioritizing distributions over deleveraging.
NorthRiver's liquidity is adequate. As of Q3-25 and pro-forma for
the transaction close, Moody's estimates sources total around C$635
million compared to uses of over C$300 million through year end
2026. The company will have about $35 in cash, full availability
under the $600 million revolving credit facility ($400M tranche
expiring August 2030, and a $200M tranche expiring August 2028).
Moody's expects over $300 million in negative free cash flow
through 2026. Moody's expects the company will maintain compliance
with its leverage covenant. NorthRiver has limited alternate
sources of liquidity as it has pledged all of its assets to secured
lenders.
NorthRiver's senior secured notes and first lien term loan B are
both rated Ba3, the same as the CFR. Including the revolver, the
three tranches are secured on a pari passu basis and these
instruments represent the preponderance of liabilities in the
capital structure. If the Term Loan B is fully repaid or refinanced
with unsecured debt, first lien security for the notes falls away
and the rating on the notes could change depending on the capital
structure at that time.
The stable outlook reflects Moody's expectations that NorthRiver
will generate steady EBITDA and maintain good revenue visibility.
The outlook also incorporates good execution through the Connector
buildout, with some uptick in financial leverage and negative free
cash flow.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if Moody's adjusted gross debt to
EBITDA is sustained above 6x (6.5x on a fully consolidate basis),
there is a decline in EBITDA or weakening of contract renewals or
terms.
The ratings could be upgraded if Moody's adjusted gross debt to
EBITDA sustained below 5x (5.5x on a fully consolidated basis) with
steady EBITDA growth and track record of a more conservative
financial policy.
NorthRiver Midstream Finance LP, based in Calgary, Alberta, is a
privately-held midstream company that gathers and processes natural
gas in northeastern British Columbia and west central Alberta.
The principal methodology used in these ratings was Midstream
Energy published in October 2025.
The net effect of any adjustments applied to rating factor scores
or scorecard outputs under the primary methodology(ies), if any,
was not material to the ratings addressed in this announcement.
OLD FASHION: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Old Fashion Butcher Shop Inc.
2350 Steinway Street
Astoria, NY 11105
Business Description: Old Fashion Butcher Shop Inc. operates a
butcher shop in Astoria, New York, providing
a range of fresh and dry-aged meats,
including beef, poultry, lamb, pork, and
veal, as well as Greek and Italian specialty
products such as souvlaki and kebabs. The
Company serves both retail and wholesale
customers, focusing on all-natural, hormone-
free meat offerings. It conducts its
operations from a single location on
Steinway Street in Queens.
Chapter 11 Petition Date: November 10, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-45384
Debtor's Counsel: Robert L. Rattet, Esq.
DAVIDOFF HUTCHER & CITRON LLP
605 Third Avenue
34th Floor
New York, NY 10158
Tel: 212-557-7200
Fax: 212 286 1884
E-mail: rlr@dhclegal.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Yanni Kukularis as president.
A list of the Debtor's 20 largest unsecured creditors was not
provided alongside the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/3EP7PNY/Old_Fashion_Butcher_Shop_Inc__nyebke-25-45384__0001.0.pdf?mcid=tGE4TAMA
ONSITE CONSTRUCTION: Unsecureds to Get 100 Cents on Dollar in Plan
------------------------------------------------------------------
Onsite Construction, Inc. filed with the U.S. Bankruptcy Court for
the Eastern District of Tennessee a Plan of Reorganization for
Small Business dated November 5, 2025.
The Debtor was established in June 2018. Nikki Aldridge has been
the sole owner of the construction company since its inception. The
Debtor has always specialized in excavating, grading, and septic
installation and repair.
On September 27, 2025, the Debtor was impacted by Hurricane Helene.
Onsite's heavy haul truck was damaged, and insurance did not cover
it. Onsite has filed a court case against the insurer, which is in
progress. Onsite is also owed approximately $750,000 from a
subcontracting job in Clarksville, VA, and has not received
payment. There is an ongoing court case related to this matter.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $750,000. The final Plan
payment is expected to be paid on January 31, 2029, if not sooner.
This Plan of Reorganization proposes to pay creditors of the Debtor
from recovery of accounts receivable owing by recovery of insurance
claim against Selective Insurance Company of the Southeast.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 100 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 3 consists of non-priority unsecured creditors. Class 3
claims shall be paid when the Debtor receives payment from the
subcontracting job in Clarksville, Virginia, or from any recovery
in Onsite Construction, Inc. v. Selective Insurance Company of the
Southeast, Case No. C15559 in the Circuit Court for the Carter
County, Tennessee, or from surplus funds from Operations after each
monthly payment to Class 2 and Class 2.1.
The Debtor will fund the Plan through business operations, the
payment for the subcontracting job in Clarksville, Virginia and
from the anticipated recovery in Onsite Construction, Inc. v.
Selective Insurance Company of the Southeast, Case No. C15559 in
the Circuit Court for the Carter County, Tennessee.
A full-text copy of the Plan of Reorganization dated November 5,
2025 is available at https://urlcurt.com/u?l=jCFIIT from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Maurice K. Guinn, Esq.
Gentry, Tipton & McLemore, P.C.
P.O. Box 1990
Knoxville, TN 37901
Tel: (865) 525-5300
Fax: (865) 523-7315
Email: mkg@tennlaw.com
About Onsite Construction
Onsite Construction, Inc., sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tenn. Case No.
25-50833) on Aug. 7, 2025, listing up to $50,000 in assets and
$500,001 to $1 million in liabilities. Maurice K. Guinn, Esq. at
Gentry, Tipton & Mclemore P.C., is the Debtor's counsel.
PALMAS ATHLETIC: Court OKs Deal to Extend Cash Collateral Access
----------------------------------------------------------------
Palmas Athletic Club, Corp. received another extension from the
U.S. Bankruptcy Court for the District of Puerto Rico to use the
cash collateral to fund operations.
The court granted the motion jointly filed by the Debtor and UBS
Trust Company of Puerto Rico, a secured creditor and bond trustee,
extending the Debtor's authority to access cash collateral until
January 1, 2026; and increasing the monthly "adequate protection"
payment to $80,000.
The Debtor was previously authorized to access cash collateral
pursuant to the court's August 25 order, which approved the
stipulation entered into by the Debtor and UBS on August 18.
The rest of the terms and conditions of that stipulation remain
unaltered. UBS reserves all rights and remedies including, but not
limited to, those relating to defaults by the Debtor of its
obligations under the stipulation.
The Debtor, which owns and operates real estate and recreational
facilities at Palmas del Mar, Puerto Rico, filed for Chapter 11
bankruptcy on August 4. The case arises from longstanding financial
obligations dating back to a 2000 AFICA bond issuance of $30
million, which funded the development of the property. These
obligations, originally owed by the Debtor's predecessor, PCCI,
were assumed by the Debtor in 2010, including multiple mortgages
and related financial instruments. In 2023, following a PROMESA
restructuring, UBS assumed TDF's rights under these financial
agreements.
UBS is represented by:
Luis C. Marini-Biaggi, Esq.
Ignacio J. Labarca-Morales, Esq.
Marini Pietrantoni Muniz, LLC
250 Ponce De León Ave.
Suite 900
San Juan, PR 00918
Tel: (787) 705-2171
lmarini@mpmlawpr.com
ilabarca@mpmlawpr.com
About Palmas Athletic Club Corp.
Palmas Athletic Club Corp. owns and operates a 420-acre
recreational property within Palmas Del Mar Resort in Humacao,
Puerto Rico. The site includes two 18-hole golf courses, a
22,200-square-foot clubhouse, a 5,600-square-foot beach clubhouse,
and related facilities.
Palmas Athletic Club Corp. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03489) on August 4,
2025. In its petition, the Debtor reported total assets of
$16,793,944 and total liabilities of $36,514,983.
Judge Maria De Los Angeles Gonzalez oversees the case.
The Debtor tapped Charles A. Cuprill Hernandez, Esq., at Charles A.
Cuprill, PSC, Law Offices and CPA Luis R. Carrasquillo & Co., PSC
as financial consultant.
PINE GATE: Represented by Latham in $7-Bil. Debt Restructuring
--------------------------------------------------------------
Pine Gate Renewables, LLC, a leading developer and owner-operator
of renewable energy projects across the United States with over $7
billion of funded debt and equity capital, has announced that it is
pursuing a strategic and value-maximizing sales process for
substantially all of its assets and business operations. Pine
Gate's operations will continue uninterrupted while the Company
continues to engage in a competitive sales process with multiple
interested parties to transition ownership of its solar and energy
storage project fleet while preserving jobs and maximizing value
and pursuing a chapter 11 plan. To facilitate the sales process and
maximize value for all stakeholders, Pine Gate and certain
subsidiaries have initiated voluntary Chapter 11 proceedings in the
U.S. Bankruptcy Court for the Southern District of Texas.
At a hearing on November 10, 2025, Pine Gate secured court approval
of more than $900 million in interim Chapter 11 DIP financing, the
Company's proposed bidding procedures, and various operational
motions to ensure the Company's operations continue in the ordinary
course of business without interruption.
Restructuring & Special Situations partners Ray C. Schrock, Andrew
M. Parlen, Alex W. Welch, and Jason B. Gott and associate Jonathan
C. Gordon are leading the Latham team representing Pine Gate
Renewables in the process, complemented by the firm's world class
corporate, finance, tax, regulatory, and litigation teams.
POWER SOLUTIONS: $27.6MM Income in Q3; Lifts Going Concern Doubt
----------------------------------------------------------------
Power Solutions International, Inc. filed with the U.S. Securities
and Exchange Commission its Quarterly Report on Form 10-Q reporting
a net income of $27.6 million and $17.3 million for the three
months ended September 30, 2025 and 2024, respectively.
For the nine months ended September 30, 2025 and 2024, the Company
reported a net income of $97.91 million and $45.9 million,
respectively.
Net sales for the three months ended September 30, 2025 and 2024,
were $203.8 million and $125.8 million, respectively. For the nine
months ended September 30, 2025 and 2024, the Company had net sales
of $531.2 million and $331.7 million, respectively.
Dino Xykis, Chief Executive Officer, said, "We achieved the highest
sales in our company's history this quarter, delivering strong
financial performance with sales increasing 62% and net income
rising 59%. These results underscore the robust demand for our
power systems solutions, particularly within the data center
market. During the quarter, we expanded our manufacturing capacity
and increased production across key data center product lines. We
are continuing to ramp up production to ensure on-time delivery
while implementing targeted operational improvements to enhance
efficiency, execution and future growth going forward."
As of September 30, 2025, the Company had $458.9 million in total
assets, $296.5 million in total liabilities, and $162.5 million in
total stockholders' equity.
According to the Company, through March 31, 2025, the Company
maintained a full valuation allowance against its deferred tax
assets due to significant negative evidence, about realizability of
the assets, including cumulative losses and substantial doubt about
its ability to continue as a going concern.
Due to the successful refinancing of its debt in July 2025, the
Company concluded that substantial doubt about its ability to
continue as a going concern no longer exists.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/mryfm95t
About Power Solutions
Wood Dale, Ill.-based Power Solutions International, Inc.,
incorporated under the laws of the state of Delaware in 2011,
designs, engineers, manufactures, markets and sells a broad range
of advanced, emission-certified engines and power systems that are
powered by a wide variety of clean, alternative fuels, including
natural gas, propane, and biofuels, as well as gasoline and diesel
options, within the power systems, industrial and transportation
end markets. The Company manages the business as a single
reportable segment.
Chicago, Ill.-based BDO USA P.C., the Company's auditor since 2018,
issued a "going concern" qualification in its report dated March
24, 2025, attached to the Company's Annual Report on Form 10-K for
the fiscal year ended December 31, 2024, citing that the Company
will not have sufficient cash and cash equivalents to repay amounts
owed under its existing debt arrangements as they become due in
2025 without additional financing and uncertainties exist about the
Company's ability to refinance, amend or extend these debt
arrangements. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
As of June 30, 2025, the Company had $437.68 million in total
assets, $302.03 million in total liabilities, and a total
stockholders' equity of $135.65 million. As of September 30, 2025,
the Company had $458.9 million in total assets, $296.5 million in
total liabilities, and $162.5 million in total stockholders'
equity.
* * *
This concludes the Troubled Company Reporter's coverage of Power
Solutions International, Inc. until facts and circumstances, if
any, emerge that demonstrate financial or operational strain or
difficulty at a level sufficient to warrant renewed coverage.
PPVA BLACK: New Mountain Marks $14.5MM 1L Loan at 55% Off
---------------------------------------------------------
New Mountain Finance Corporation has marked its $14,500,000 loan
extended to PPVA Black Elk (Equity) LLC to market at $6,525,000 or
45% of the outstanding amount, according to New Mountain's Form
10-Q for the quarterly period ended September 30, 2025, filed with
the U.S. Securities and Exchange Commission.
New Mountain is a participant in a Subordinated Loan to PPVA Black
Elk (Equity) LLC. The loan accrues interest at a rate of zero
percent per annum.
New Mountain is a Delaware corporation that was originally
incorporated on June 29, 2010 and completed its initial public
offering on May 19, 2011. The company is a closed-end,
non-diversified management investment company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940.
The company is focused on providing direct lending solutions to
U.S. upper middle market companies backed by private equity
sponsors. The Company's investment objective is to generate current
income and capital appreciation through the sourcing and
origination of senior secured loans and select junior capital
positions, to growing businesses in defensive.
New Mountain is led by John R. Kline as President and Chief
Executive Officer and Kris Corbett as Chief Financial Officer and
Treasurer.
The Fund can be reach through:
John R. Kline
New Mountain Finance Corporation
1633 Broadway, 48th Floor
New York, NY 10019
Tel. No.: (212) 720-0300
About PPVA Black Elk (Equity) LLC
PPVA Black Elk (Equity) LLC is an investment entity associated with
the hedge fund Platinum Partners Value Arbitrage Fund LP. It is a
major investor and lenders to Black Elk Energy Offshore Operations
LLC, an independent oil and gas company.
PR BINGHAM: Apartment Complex Sale to Sycamore & Brookstone OK'd
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Indiana,
Indianapolis Division, has approved PR Bingham LLC and PR Madison
LLC, to sell Property, free and clear of liens, claims, interests,
and encumbrances.
The Debtors are Missouri limited liability companies solely in the
business of owning and operating two apartment complexes located in
Anderson, Indiana.
Bingham was formed on September 5, 2019. The business model was a
repeat iteration of similar endeavors beginning in 2012. Gary
Plichta, a member of the Debtors and an experienced property
manager and real estate developer, would identify properties with
the idea of improving them and selling the enhanced project. This
approach was, for the most part, successful over several projects.
There were approximately twenty such projects, each, typically were
sold within a few years of purchase.
The Court has authorized the Debtor to sell 101 North Madison
Avenue, Anderson, Indiana 46011 (Madison) and 2725 West 16th
Street, Anderson, Indiana 46011 (Bingham) to stalking horse buyers,
Sycamore Ridge Apartments LLC and Brookstone Flats LLC, for the
purchase price of $4,400,000.
The Property may be transferred to the Buyer free and clear of all
Interests
The Debtors are authorized to issue bills of sale and deeds and
related documents to effect such transfer.
The Debtor shall turn over Proceeds of the Madison Property is
$6,769.65 to the City of Anderson and the balance to Omega. The
City shall receive a payment $493,275.84 from the proceeds of the
sale of the Bingham Property with the balance to be paid to Omega.
The Order constitutes a deed or bill of transfer transferring good
and marketable title in the Property to Buyer on the closing date
free and clear of all claims.
About PR Bingham LLC
PR Bingham LLC is engaged in real estate.
PR Bingham sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Ind. Case No: 25-02164-JJG-11) on April 18,
2025.
Judge Jeffrey J. Graham presides over the case.
Jeffrey M. Hester at Hester Baker Krebs LLC represents the Debtor
as legal counsel.
PURDUE PHARMA: Starts Ch. 11 Confirmation Trial w/ Plan Overview
----------------------------------------------------------------
Vince Sullivan of Law360 reports that bankrupt OxyContin maker
Purdue Pharma launched its Chapter 11 confirmation trial Wednesday
with an overview of its updated restructuring plan. Attorneys for
the company walked the court through the major components of the
proposal and the steps taken to address objections raised over the
past several years.
Central to the plan is a $6.5 billion contribution from Purdue's
owners, a cornerstone of the settlements negotiated with states,
local governments, and victims of the opioid crisis. The company
emphasized that these agreements form the backbone of the
reorganization framework now before the court, Law360 reports.
The opening presentation signaled the beginning of a pivotal
proceeding that will ultimately determine how Purdue emerges from
bankruptcy. The outcome is expected to shape the future of the
company and the resolution of thousands of opioid-related claims,
according to report.
About Purdue Pharma LP
Purdue Pharma L.P. and its subsidiaries
--http://www.purduepharma.com/-- develop and provide prescription
medicines and consumer products that meet the evolving needs of
healthcare professionals, patients, consumers and caregivers.
Purdue's subsidiaries include Adlon Therapeutics L.P., focused on
treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and
related disorders; Avrio Health L.P., a consumer health products
company that champions an improved quality of life for people in
the United States through the re-imagining of innovative product
solutions; Imbrium Therapeutics L.P., established to further
advance the emerging portfolio and develop the pipeline in the
areas of CNS, non-opioid pain medicines, and select oncology
through internal research, strategic collaborations and
partnerships; and Greenfield Bioventures L.P., an investment
vehicle focused on value-inflection in early stages of clinical
development.
Opioid makers in the U.S. are facing pressure from a crackdown on
the addictive drug in the wake of the opioid crisis and as state
attorneys general file lawsuits against manufacturers. More than
2,000 states, counties, municipalities and Native American
governments have sued Purdue Pharma and other pharmaceutical
companies for their role in the opioid crisis in the U.S., which
has contributed to the more than 700,000 drug overdose deaths in
the U.S. since 1999.
OxyContin, Purdue Pharma's most prominent pain medication, has been
the target of over 2,600 civil actions pending in various state and
federal courts and other fora across the United States and its
territories.
On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated
debtors each filed a voluntary petition for relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 19
23649), after reaching terms of a preliminary agreement for
settling the massive opioid litigation. The Debtors' consolidated
balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets
and $562 million in liabilities. U.S. Bankruptcy Judge Robert
Drain
oversees the cases.
The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP, as
legal counsels; PJT Partners as investment banker; AlixPartners as
financial advisor; and Grant Thornton, LLP as tax structuring
consultant. Prime Clerk, LLC, is the claims agent.
Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the
official committee of unsecured creditors appointed in the Debtors'
bankruptcy cases.
David M. Klauder, Esq., is the fee examiner appointed in the
Debtors' cases. The fee examiner is represented by Bielli &
Klauder, LLC.
* * *
U.S. Bankruptcy Judge Robert Drain in early September 2021 approved
a plan to turn Purdue into a new company (Knoa Pharma LLC) no
longer owned by members of the Sackler family, with its profits
going to fight the opioid epidemic. The Sackler family agreed to
pay $4.3 billion over nine years to the states and private
plaintiffs and in exchange for a lifetime legal immunity. The deal
resolves some 3,000 lawsuits filed by state and local governments,
Native American tribes, unions, hospitals, and others who claimed
the company's marketing of prescription opioids helped spark and
continue an overdose epidemic.
Separate appeals to approval of the Plan have already been filed by
the U.S. Bankruptcy Trustee, California, Connecticut, the District
of Columbia, Maryland, Rhode Island and Washington state, plus some
Canadian local governments and other Canadian entities.
In early March 2022, Purdue Pharma reached a nationwide settlement
over its role in the opioid crisis, with the Sackler family members
boosting their cash contribution to as much as $6 billion. The
settlement was hammered out with attorneys general from the eight
states -- California, Connecticut, Delaware, Maryland, Oregon,
Rhode Island, Vermont and Washington -- and D.C. who had opposed
the previous settlement.
RAMOS ROOFING: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The U.S. Trustee for Region 9 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Ramos Roofing and Remodeling Co.
About Ramos Roofing & Remodeling Co.
Ramos Roofing & Remodeling Co. provides residential and commercial
roofing, storm damage repairs, gutter installation, and siding
services across Central Ohio, including Columbus, Bexley, Dublin,
Gahanna, Hilliard, Westerville, and surrounding communities. It
serves homeowners and businesses seeking exterior home improvement
and roofing solutions.
Ramos Roofing & Remodeling sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Ohio Case No. 25-54299) on
September 30, 2025. In its petition, the Debtor reported estimated
assets between $500,000 and $1 million and estimated liabilities
between $1 million and $10 million.
Honorable Bankruptcy Judge Mina Nami Khorrami handles the case.
The Debtor is represented by David Whittaker, Esq., at Allen
Stovall Neuman & Ashton, LLP.
RBC BEARINGS: S&P Upgrades ICR to 'BB+', Outlook Stable
-------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on RBC Bearings
Inc. to 'BB+' from 'BB'.
S&P said, "At the same time, we affirmed our 'BBB-' issue-level
ratings on its senior secured debt, one-notch above our issuer
credit rating. Our '1' recovery rating remains unchanged,
indicating our expectation for very high (90%-100%; rounded
estimate: 95%) recovery for lenders in the event of a payment
default.
"We also raised our issue-level rating on the company's $500
million senior unsecured notes to 'BB' from 'B+', one notch below
our issuer credit rating. We revised the recovery rating to '5'
from '6', indicating our expectation for modest (10%-30%; rounded
estimate: 10%) recovery for lenders in the event of a default."
The stable outlook reflects S&P's forecast for stable to growing
end-market demand and solid free cash flow generation to support
S&P Global Ratings-adjusted leverage remaining in the mid- to
high-1x area through fiscal year-end March 2027. This provides
sufficient cushion to absorb modest potential operating
underperformance and modest levels of debt-financed acquisitions or
shareholder returns while maintaining S&P Global Ratings-adjusted
leverage below 3x.
RBC Bearings Inc.'s EBITDA and free operating cash flow (FOCF) grew
over the past few years, notably on strong demand from commercial
aerospace and defense customers and margin expansion of its Dodge
industrials business.
Furthermore, it lowered its debt burden by making significant term
loan repayments. It has maintained S&P Global Ratings-adjusted
leverage below 3x since 2024 and S&P now forecasts leverage of 1.8x
at fiscal year-end March 2026, providing good cushion for its
credit measures to absorb modest potential operating
underperformance or debt-financed acquisitions.
The upgrade reflects RBC's track record of low leverage and S&P's
forecast for EBITDA growth amid strong demand. RBC has reduced its
S&P Global Ratings-adjusted debt leverage since acquiring Dodge in
late-2021 through organic revenue growth (revenue from the
company's aerospace and defense segment grew by double-digit
percentage over the past few years), good margin expansion on
operational efficiency initiatives, and pricing. S&P Global
Ratings-adjusted EBITDA grew to $529 million in fiscal year-end
2025 (ended March 29), more than double the $228 million in EBITDA
following its acquisition of Dodge.
Moreover, the company has used its good cash flow generation to
reduce debt. Its initial $1.3 billion term loan now has an
outstanding balance of $328 million as of Sept. 30, 2025. As a
result, S&P Global Ratings-adjusted leverage has meaningfully
improved to the 2x area as of the 12 months ended Sept. 27, 2025,
from above 6x following the Dodge transaction. S&P said, "Our base
case assumes RBC fully repays its term loan on or before its
maturity (November 2026) using FOCF and revolver capacity. We
forecast S&P Global Ratings-adjusted leverage of 1.8x and 1.6x in
2026 and 2027, respectively, providing good cushion relative to our
3x downside threshold."
S&P said, "Robust demand for RBC's specialized bearings products
supports our forecast for good revenue growth. We assume aircraft
build rates at Boeing will increase because of its leading position
in the commercial aerospace industry amid good demand for air
travel. We also assume defense/marine spending by governments and
contractors remains elevated. RBC's long-term defense contracts, a
high percentage of revenue derived from sole-, single-, or
primary-sourced contracts (estimated at about 70%), and a growing
backlog, valued at $1.6 billion at the end of the second quarter
(including $0.5 billion of backlog recently acquired through its
acquisition of VACCO in July 2025) provide good revenue visibility
and support EBITDA and cash flow stability. We forecast revenue
grows 10%-11% in fiscal years 2026 and 2027 because of these demand
tailwinds and our assumption of contributions from VACCO and other
acquisitions.
"EBITDA margins remain strong in the 30% area, despite near-term
pressure from lower margin acquisitions. We expect some margin
dilution in the near to intermediate term, primarily from the
recent acquisition of VACCO and our assumption of similar
acquisitions over our forecast period. However, the company has
demonstrated its ability to realize synergies from acquired
businesses--most notably of acquisition and integration of Dodge
(acquired in late 2021). We expect good price pass through and
favorable operating leverage will help offset higher tariff-related
and general inflationary costs pressures, with EBITDA margins
maintained in the low-30% area over our forecast period.
"We forecast healthy orders and strong margins will continue
supporting RBC's solid cash flow. We forecast S&P Global
Ratings-adjusted FOCF eclipses $300 million by 2027, as the company
executes its strong backlog and realizes cost savings from
operating efficiencies. Good EBITDA growth is only partially offset
by our assumptions for cash taxes to increase in line with higher
profits, working capital to be a use of cash to support growth, and
somewhat higher capital expenditures (capex) of about 3.5% of
revenue, compared with its historical range of 2%-3%, reflecting
production capacity investments to support growth. The company
recently extended the maturity of its $500 million revolving credit
facility to October 2030 from November 2026 and intends to repay
its term loan in full before maturity in late 2026. These actions
and plans help mitigate refinancing risk regarding the company's
capital structure, in our view.
"The stable outlook reflects our forecast for stable to growing
end-market demand and solid free cash flow generation to support
S&P Global Ratings-adjusted leverage remaining in the mid- to
high-1x area through fiscal year-end March 2027. This provides
sufficient cushion to absorb modest potential operating
underperformance and modest levels of debt-financed acquisitions or
shareholder returns while maintaining S&P Global Ratings-adjusted
leverage below 3x.
"We could lower our ratings if its S&P Global Ratings-adjusted
leverage remains above 3x without prospects for deleveraging. We
believe this would most likely be because the company pursues large
debt-funded acquisitions, its end markets weaken, and/or it loses
significant customer contracts."
While unlikely within the next year or two, S&P could raise its
ratings if:
-- The company grows and diversifies its revenue base such that
S&P views its business more favorably while continuing to
demonstrate profitability and margin stability through business
cycles and volatile conditions;
-- It maintains S&P Global Ratings-adjusted leverage below 2x,
inclusive of debt-financed acquisitions and through economic
downturns; and
-- It sustains FOCF to debt above 15%.
RESTAURANT BRANDS: S&P Affirms 'BB' LT ICR, Outlook Positive
------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' long-term issuer credit rating
on Miami-based quick service restaurant franchisor Restaurant
Brands International Inc. (RBI); the outlook is positive.
The positive outlook reflects that leverage will decline below 4.5x
over the next 12 months, with risks including high historical
leverage and increasing macroeconomic uncertainty.
RBI is deleveraging gradually, but slower than expected due to a
challenging consumer environment.
The company has increased EBITDA due to check growth at Tim
Hortons, an expanding international footprint, and renovations to
Burger King restaurants. S&P's base case is for adjusted debt to
EBITDA below 4.5x, inside its upgrade trigger, by the second half
of 2026, although it sees risk to our forecast.
S&P said, "We expect adjusted debt to EBITDA above our 4.5x upside
trigger in 2025. Our affirmation reflects solid recent performance,
including 18 straight quarters of higher comparable sales dating to
2021. RBI continues to expand its restaurant count, about 3% so far
in 2025 and a particular focus on the international market.
Segment-level EBITDA margins are improving primarily due to greater
scale, resulting sales leverage, and cost discipline. We expect
adjusted debt to EBITDA of about 4.6x for 2025, an improvement from
pro forma 4.8x in 2024 and 5x in 2023. We think the combination of
comparable sales improvement, new restaurant openings (particularly
international), and cost discipline should improve EBITDA in 2026
sufficient to improve leverage below 4.5x, consistent with our
upside trigger.
"RBI has historical comfort with leverage above 5x, and we see risk
to our forecast due to economic weakness. Since Tim Hortons and
Burger King merged in 2014, RBI has maintained leverage of about 5x
or higher, including 5x at year-end 2023. The company has stated
its intention to deleverage, primarily via EBITDA increases. Funded
debt has remained essentially flat at about $13.5 billion since the
acquisition of Carrols and Burger King China, including a $100
million repayment in the recent quarter. RBI uses most of its
reported free cash flow (about 79% in our forecast for 2025) to pay
a recurring dividend, leaving little capital for meaningful debt
repayment if EBITDA falls.
"We think rising unemployment and slowing growth globally in the
fourth quarter of 2025 and 2026 will pressure RBI's core customer
of lower- and middle-income consumers. This could reverse recent
solid operating trends, as the economy is relatively resilient
recently. The company's deleveraging was more gradual compared with
our prior expectations due to a challenging consumer environment,
which required investment in advertising and discounting, and we
think more pronounced economic weakness could further slow the
deleveraging trajectory. If revenue unexpectedly declines due to
macroeconomic developments, the company does not have flexibility
to continue to deleverage given its cash flow is mostly consumed by
a difficult-to-cut dividend.
"We do not see significant acquisition risk in the 12-24 months.
RBI is unlikely to add an additional brand at this time, given
ample white space to expand Burger King and Popeyes internationally
and the work needed to improve both in the U.S. RBI could also
broaden with Tim Hortons, although its brand recognition is
concentrated in its primary Canadian market, making expansion more
difficult in an increasingly competitive beverage market with
rising commodity costs. If international expansion unexpectedly
slows, RBI could add a new brand, but we think this would take
time. RBI could also purchase additional underperforming
franchises. We think an acquisition of franchises would likely be
smaller than Carrols or Burger King China and not significantly
affect the credit profile. The company is also focused on
refranchising, so we expect the ratio of franchised restaurants to
increase over the next 3-4 years. Additionally, RBI has not engaged
in share repurchases since 2023, a signal that it does not intend
to increase leverage to return capital to shareholders.
"The positive outlook reflects our expectation that RBI will
execute its expansion and remodel initiatives, supporting revenue
and EBITDA growth, leading to S&P Global Ratings-adjusted leverage
below 4.5x during the next 12 months."
S&P could revise the outlook to stable over the next 12 months if
the company:
-- Cannot sustain leverage below 4.5x either due to weaker
operating performance arising from an unfavorable economic
environment; or
-- Adopts a more aggressive financial policy, which could include
further debt-funded acquisitions or shareholder returns.
S&P could raise our rating over the next 12 months if RBI:
-- Continues to meaningfully improve systemwide sales due to
effective store base expansion and continued positive comparable
sales; and
-- Achieves S&P Global Ratings-adjusted leverage in line with
S&P's base-case forecast at or below 4.5x on a sustained basis.
RLG HOLDINGS: New Mountain Marks $1MM 1L Loan at 17% Off
--------------------------------------------------------
New Mountain Finance Corporation has marked its $1,067,000 loan
extended to RLG Holdings, LLC to market at $883,000 or 83% of the
outstanding amount, according to New Mountain's Form 10-Q for the
quarterly period ended September 30, 2025, filed with the U.S.
Securities and Exchange Commission.
New Mountain is a participant in a First Lien Loan to RLG Holdings,
LLC. The loan accrues interest at a rate of 4.25% per annum. The
loan matures on July 2028.
New Mountain is a Delaware corporation that was originally
incorporated on June 29, 2010 and completed its initial public
offering on May 19, 2011. The company is a closed-end,
non-diversified management investment company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940.
The company is focused on providing direct lending solutions to
U.S. upper middle market companies backed by private equity
sponsors. The Company's investment objective is to generate current
income and capital appreciation through the sourcing and
origination of senior secured loans and select junior capital
positions, to growing businesses in defensive.
New Mountain is led by John R. Kline as President and Chief
Executive Officer and Kris Corbett as Chief Financial Officer and
Treasurer.
The Fund can be reach through:
John R. Kline
New Mountain Finance Corporation
1633 Broadway, 48th Floor
New York, NY 10019
Tel. No.: (212) 720-0300
About RLG Holdings, LLC
RLG Holdings, LLC is a company that specializes in providing
pressure-sensitive and high-value label solutions, primarily for
short to medium-run sizes in the North American market.
RLG HOLDINGS: New Mountain Marks $3.9MM 1L Loan at 16% Off
----------------------------------------------------------
New Mountain Finance Corporation has marked its $3,939,000 loan
extended to RLG Holdings, LLC to market at $3,315,000 or 84% of the
outstanding amount, according to New Mountain's Form 10-Q for the
quarterly period ended September 30, 2025, filed with the U.S.
Securities and Exchange Commission.
New Mountain is a participant in a First Lien Loan to RLG Holdings,
LLC. The loan accrues interest at a rate of 5% per annum. The loan
matures on July 2028.
New Mountain is a Delaware corporation that was originally
incorporated on June 29, 2010 and completed its initial public
offering on May 19, 2011. The company is a closed-end,
non-diversified management investment company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940.
The company is focused on providing direct lending solutions to
U.S. upper middle market companies backed by private equity
sponsors. The Company's investment objective is to generate current
income and capital appreciation through the sourcing and
origination of senior secured loans and select junior capital
positions, to growing businesses in defensive.
New Mountain is led by John R. Kline as President and Chief
Executive Officer and Kris Corbett as Chief Financial Officer and
Treasurer.
The Fund can be reach through:
John R. Kline
New Mountain Finance Corporation
1633 Broadway, 48th Floor
New York, NY 10019
Tel. No.: (212) 720-0300
About RLG Holdings, LLC
RLG Holdings, LLC is a company that specializes in providing
pressure-sensitive and high-value label solutions, primarily for
short to medium-run sizes in the North American market.
RUSS'S MULCH: Court OKs Deal to Use Cash Collateral
---------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Wisconsin
approved a stipulation between Russ's Mulch & Trucking, LLC and The
Brehmer Agency, Inc. regarding the use of cash collateral.
Under the stipulation, the Debtor is allowed to use Brehmer's cash
collateral, including cash, receivables, and proceeds.
As protection against any potential diminution in the value of its
collateral, Brehmer will be granted post-petition replacement liens
on the Debtor's assets, including cash collateral, with the same
validity and priority as its pre-bankruptcy liens. These
replacement liens are deemed automatically perfected without the
need for additional filings.
In addition, Brehmer will receive a monthly payment of $2,353.09,
starting this month and continuing until plan confirmation,
dismissal or conversion of the case, full repayment, or a further
court-approved written agreement.
The court denied Brehmer's initial motion as moot in light of the
approved stipulation.
The stipulation is available at https://is.gd/vuyxjU from
PacerMonitor.com.
Brehmer is represented by:
Christopher J. Schreiber, Esq.
Davis W. Sullivan, Esq.
Michael Best & Friedrich, LLP
790 N. Water St., Ste. 2500
Milwaukee, WI 53202
Phone: 414.271.6560
Fax: 414.277.0656
cjschreiber@michaelbest.com
davis.sullivan@michaelbest.com
About Russ's Mulch & Trucking LLC
Russ's Mulch & Trucking, LLC provides general freight trucking
services in Wisconsin, focusing on the intrastate transport of bulk
and general freight materials.
Russ's Mulch & Trucking sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D. Wis. Case No. 25-25134)
on September 12, 2025. In its petition, the Debtor reported between
$1 million and $10 million in assets and liabilities.
Honorable Bankruptcy Judge Rachel M. Blise handles the case.
The Debtor is represented by Kevin Benjamin, Esq., at Benjamin
Legal Services, PLC.
RYVYL INC: Aly Madhavji Joins as CFO Ahead of Roundtable Merger
---------------------------------------------------------------
Roundtable and RYVYL Inc. announced on November 6, 2025, that
legendary Web3 investor Aly Madhavji has agreed to join the
soon-to-be-merged company as Chief Financial Officer (CFO),
bridging his unique background of traditional finance credentials
with deep relationships and experience managing over 200 blockchain
infrastructure technology investments.
As CFO, Madhavji will help guide Roundtable's continued rise
through the merger process and NASDAQ listing, while connecting the
dynamic blockchain investment community with Roundtable. Current
RYVYL CFO George Oliva upon completion of the merger will
transition to the role of Chief Accounting Officer for the merged
entity.
Madhavji's financial credentials are as impeccable as his in-depth
knowledge of the Web3 sector, bringing relationships with over 500
blockchain co-investors from every continent, including his home
base in Singapore.
Roundtable CEO James Heckman praised Madhavji's leadership and
expertise, stating, "In over 30 years of financing and operating
technology companies, I've not met someone with more intensity and
thoroughness as a board member and investor, which is consistent
with his technical and financial acumen. His contribution has been
so impressive, we invited him to join this once-in-a-lifetime
opportunity to transform an entire industry. Aly has the unique
ability to translate the vision of our revolutionary platform to
both traditional and blockchain-focused investment communities."
Madhavji is a licensed Chartered Accountant (CA, CPA, CMA, CIM)
with a Master's in Global Affairs from Tsinghua University, an MBA
from INSEAD (Singapore/France) where he was a Blockchain Fellow,
and a BA in Commerce with Distinction from the University of
Toronto, where he serves on the Governing Council. An international
award-winning author and featured speaker at major Web3
conferences, Aly is also a contributing analyst for leading crypto
publications and the acclaimed lead on Amazon Prime Video's series
Crypto Knights. His Roundtable board seat will mark his second
NASDAQ service, following his position with Soluna Holdings
(NASDAQ: SLNH).
Madhavji commented, "I'm joining Roundtable as CFO because
Roundtable has turned the media industry's long-aspired Web3 vision
into practical reality. The RYVYL merger brings bank-grade payments
and public-market discipline; our platform gives publishers what
they've wanted for years: real-time revenue, transparent reporting,
and control of their data, audiences, and IP, only possible with
Web3. After diligencing and investing in hundreds of blockchain
infrastructure teams, this is the one that stands apart; and why
Blockchain Founders Fund made Roundtable our largest investment,
and so I'm stepping in to lead our NASDAQ journey and align
Roundtable with both traditional and Crypto focused investors."
Madhavji joins a veteran executive team led by digital media
entrepreneur James Heckman and blockchain pioneer Eyal Hertzog.
Hertzog, co-founder and architect of Roundtable's "DeWeb" platform,
is widely recognized as the technical inventor of decentralized
finance (DeFi), including automated market-making and the liquidity
pool mechanisms that underpin the transformative industry - and
brought it to market, as the lead architect and founder of Bancor.
He also co-founded the first social video platform, MetaCafe, whose
recommendation algorithm helped shape the foundation of social
media.
Heckman, a serial founder and former senior executive at Yahoo,
Google, and News Corp, has built and scaled more than a dozen
technology platforms, including Arena Group (NYSE: AREN), which
powered digital media for over 300 global brands. He is joined by
long-time technology collaborator and co-founder Bill Sornsin as
COO, a former senior product leader at Microsoft and co-architect
of several global-scale platforms with Heckman.
Together, this leadership team developed Roundtable, the first
large-scale, Enterprise-level, Web3-powered media platform
integrating decentralized payments, transparent real-time
reporting, and on-chain audience and data control, creating
next-generation infrastructure for professional publishers and
media networks worldwide. Heckman's prior company, Arena, became a
nine-figure public enterprise powering publishing and monetization
for global media brands including Sports Illustrated, Maxim,
History.com, and TheStreet. His past roles include Head of Global
Media Strategy at Yahoo!, Chief Strategy Officer at Fox
Interactive, and architect of the $1 billion ad alliance between
MySpace, Google, led the team that architected Hulu's original
business model and created the first "Premium Marketplace,"
partnered with AOL, Yahoo!, MSN and the top dozen major media
corporations..
Altogether Heckman has created and taken public and/or sold to
major digital media, ten large-scale ventures, including Rivals.com
(acquired by Yahoo!), Scout.com (acquired by Fox), 5to1.com
(public, acquired by Yahoo!), NFL Exclusive, and Arena. Remarkably,
every business he founded succeeded in sustainability and major
industry scale.
Visionary Partners and Board Members:
Roundtable co-founders and strategic partners include incoming
Chair Walton Comer, XBTO co-founder, Lucid Holdings co-founder,
which sold to CINT for nearly $1 billion, and founding investor of
Deribit, recently sold to Coinbase for over $3 billion; Aly
Madhavji, Managing Partner of Blockchain Founders Fund; David
Bailey, CEO of Nakamoto, Bitcoin Conference and Bitcoin Magazine;
Mike Alexander, former CEO of Jefferies Asia and CEO of Bullish's
EOS Venture Capital Fund; W. Graeme Roustan, Roundtable co-founder,
former Chairman of Bauer Hockey, True Sports CEO, and CEO of The
Hockey News, the first major network to publish on-chain with
Roundtable; and Brock Pierce, Tether co-founder and early Bitcoin
visionary.
Merger Details:
A definitive agreement has been signed between RYVYL (NASDAQ: RVYL)
and Roundtable. Closing remains subject to shareholder approval and
standard regulatory review. Upon closing of the merger:
* James Heckman will become CEO
* Walton Comer will become Chairman, leading a seven-membered
board
* Aly Madhavji will remain CFO (from Roundtable), in the
merged companies
* George Oliva will remain as EVP/Finance and Chief Accounting
Officer, reporting to Heckman
* The company will change its name to RTB Digital, Inc., doing
business as "Roundtable"
* Six directors will be appointed by RTB, and RYVYL
independent director Brett Moyer retained; all other incumbent
directors of RYVYL will step down.
About Roundtable (RTB Digital, Inc.)
Roundtable is a Web3, digital media SaaS platform company,
providing white-label, full stack distribution, community,
publishing and monetization for professional media brands and
journalists - fortified and powered by a digital liquidity pool
integrated into the platform. Visit RTB.io.
About RYVYL Inc.
RYVYL Inc., headquartered in San Diego, Calif., develops financial
technology platforms and tools focused on global payment acceptance
and disbursement. The Company's QuickCard product, initially a
physical and virtual card processing system for high-risk,
cash-based businesses, has transitioned to a fully virtual,
app-based platform and is now offered through a licensing model to
partners with compliance capabilities. RYVYL operates in the
fintech industry, providing cloud-based payment solutions and
merchant management services.
In its audit report dated March 28, 2025, Simon & Edward, LLP
issued a "going concern" qualification citing that the Company
transitioned its QuickCard product in North America away from
terminal-based to app-based processing on February 2024, which was
then terminated on the second quarter of 2024 and the Company then
decided to introduce a licensing product for its payments
processing platform. This business reorganization has resulted in
a significant decline in processing volume and revenue, the
recovery of the loss of revenues resulting from this product
transition is not expected to occur until late 2025. The auditor
said the loss of revenue has jeopardized the Company's ability to
continue as a going concern.
As of June 30, 2025, the Company had $20.60 million in total
assets, $27.54 million in total liabilities, and a total
stockholders' deficit of $6.94 million. As of Dec. 31, 2024, the
Company had an accumulated deficit of $179.4 million.
According to RYVYL, there can be no assurances that it will be able
to achieve a level of revenues adequate to generate sufficient cash
flow from operations or additional financing through private
placements, public offerings and/or bank financing necessary to
support its working capital requirements. To the extent that funds
generated from any private placements, public offerings and/or bank
financing are insufficient, it will need to raise additional
working capital. There is no guarantee that additional financing
will be available, or that any obtained funding can be secured on
terms deemed acceptable.
S & M DELI: Unsecureds to Get $4,500 per Month over 5 Years
-----------------------------------------------------------
S & M Deli Inc. filed with the U.S. Bankruptcy Court for the
Northern District of Texas an Amended Plan of Reorganization dated
November 5, 2025.
The Debtor is a Texas corporation, established on June 27, 2006.
Debtor operates a local deli in Dallas Texas.
This case was commenced due primarily to cash flow issues stemming
from the use of certain merchant cash advance loans.
The Plan provides for a reorganization and restructuring of the
Debtor's financial obligations. The Plan provides for a
distribution to Creditors in accordance with the terms of the Plan
from the Debtor over the course of five years from the Debtor's
continued business operations.
Class 3 consists of Non-priority unsecured Claims. Each holder of
an Allowed Unsecured Claim in Class 3 shall be paid by Reorganized
Debtor from an unsecured creditor pool, which pool shall be funded
at the rate of $4,500.00 per month (All unsecured creditors will be
paid in full). Payments from the unsecured creditor pool shall be
paid quarterly, for a period not to exceed five years (20 quarterly
payments) and the first quarterly payment will be due on the
twentieth day of the first full calendar month following the last
day of the first quarter.
The Debtor estimates the aggregate of all Allowed Class 3 Claims is
approximately $225,000.00 based upon Debtor's review of the Court's
claim register, Debtor's bankruptcy schedules, and anticipated
Claim objections. This Class is impaired.
The holder of an Allowed Class 4 Interest shall retain their
interests in the Reorganized Debtor.
The Debtor proposes to implement and consummate this Plan through
the means contemplated by Sections 1123 and 1145(a) of the
Bankruptcy Code.
From and after the Effective Date, in accordance with the terms of
this Plan and the Confirmation Order, the Reorganized Debtor shall
perform all obligations under all executory contracts and unexpired
leases assumed in accordance with Article 6 of this Plan.
A full-text copy of the Amended Plan dated November 5, 2025 is
available at https://urlcurt.com/u?l=1jiANk from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Robert T. DeMarco, Esq.
Michael S. Mitchell, Esq.
DeMarco·Mitchell, PLLC
12770 Coit Road, Suite 850
Dallas, TX 75251
Telephone: (972) 991-5591
Facsimile: (972) 346-6791
E-mail: robert@demarcomitchell.com
mike@demarcomitchell.com
About S&M Deli
S & M Deli, Inc. operates a local deli in Dallas Texas.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Texas Case No. 25-42967) on August 8,
2025, with up to $50,000 in assets and $100,001 to $500,000 in
liabilities. Judge Edward L. Morris presides over the case.
Robert Thomas DeMarco is the Debtor's legal counsel.
SAGA FORMATIONS: To Sell Tangible Play Asset to Play Osmo
---------------------------------------------------------
Claudia Z. Springer, the Chapter 11 Trustee of Saga Formations,
Inc., f/k/a Epic Creations, Inc., Pajeau, Inc. f/k/a Neuron Fuel,
Inc., and Tangible Play, Inc., seeks permission from the U.S.
Bankruptcy Court for the District of Delaware, to sell Tangible
Play Inc.'s remaining assets, free and clear of liens, claims,
interests, and encumbrances.
The Debtors are three formerly unaffiliated U.S.-based education
technology companies that develop and distribute three separate
lines of educational products. Between 2019 and 2021, T&L, an
Indian corporation founded by Byju Raveendran in 2011 with a stated
purpose of providing accessible education technology, acquired each
Debtor.
The lienholders of the Property are GLAS Trust Company, BYJU’s
Alpha, Inc. and T&L.
On November 19, 2024, the Trustee engaged SC&H Group to act as the
Trustee's investment banker in connection with, inter alia, the
Sale of Tangible Play's Remaining Assets.
In August 2025, SC&H received interest from four potential bidders
seeking to purchase Tangible Play’s Remaining Assets, and as a
result of a private auction and extensive arm's length
negotiations, on November 12, 2025, the Trustee and Play Osmo
entered into the Bill of Sale to purchase Tangible Play’s
Remaining Assets.
Subject to the Court's approval, the Trustee has agreed to sell
Tangible Play's Remaining Assets to Play Osmo, specifically
identified in the Bill of Sale, in return for a payment by Play
Osmo of $825,000.00.
The Trustee, in an exercise of her business judgment, believes that
the proposed Sale to Play Osmo on the terms set forth herein and in
the Bill of Sale is in the best interest of the Tangible Play
estate and seeks approval of the Sale on an expedited basis so that
the Sale can close prior to the Effective Date of the Plan.
The Trustee believes the offer from Play Osmo is the highest and
best offer that the Estate will receive for Tangible Play's
Remaining Assets. Play Osmo is run by a Chief Executive Officer
that is an entrepreneur willing to keep the Osmo brand alive and
further assist children across America.
he Trustee submits that the Sale represents a prudent and proper
exercise of her business judgment. The terms of the Bill of Sale
are reasonable. Among other terms, the Bill of Sale provides that
Tangible Play’s Remaining Assets will be sold "as is, where is"
without warranties or representations of any kind.
About Epic! Creations, Inc.
Epic! Creations Inc. -- https://www.getepic.com/ -- doing business
as Byju's, retails books online. The Company offers digital library
which includes kids books, ebooks, and videos. Epic! Creations
serves customers in the State of California.
Alleged creditors of Epic! Creations sought involuntary petition
under Chapter 11 of the the U.S. Bankruptcy Code against Epic!
Creations (Bankr. D. Del. Case No. 24-11161) on June 5, 2024.
The creditors who signed the petition are:
* HPS Investment Partners, LLC,
* TBK Bank, SSB
* Redwood Capital Management, LLC,
* Veritas Capital Credit Opportunities
Fund SPV, L.L.C. and Veritas Capital Credit
Opportunities Fund II SPV, L.L.C.
* HGV BL SPV, LLC,
* Midtown Acquisitions GP LLC,
* Silver Point Capital, L.P.,
* Shawnee 2022-1 LLC,
* Sentinel Dome Partners, LLC,
* Stonehill Capital Management LLC,
* Diameter Capital Partners LP,
* Ellington CLO III, Ltd. and Ellington Special
Relative ValueFund L.L.C.
* GLAS Trust Company LLC, in its capacity as
administrativeagent and collateral agent,
* Continental Casualty Company, and
* India Credit Solutions, L.P.
Glas Trust Company is represented by Laura Davis Jones, Esq., at
Pachulski, Stang, Ziehl & Jones LLP.
TBK Bank, et al., are represented by G. David Dean, Esq., at Cole
Schotz P.C.
SERENE HEALTH: $58K Unsecured Claims to Recover 33% over 36 Months
------------------------------------------------------------------
Serene Health & Wellness, LLC, filed with the U.S. Bankruptcy Court
for the Eastern District of Louisiana a First Amended Plan of
Reorganization for Small Business dated November 4, 2025.
The Debtor is in the business of providing mental health and
medical weight loss services. Ms. Jennifer Poche1 is the sole
member of the Debtor and is a state licensed registered nurse with
an advanced practice license.
The business was started in 2023. The Debtor hired a billing
company which applied for the Debtor's Medicaid license. The Debtor
operated for approximately six months seeing Medicaid patients
before being notified directly by Medicaid that the Debtor had
never actually been registered and/or approved to provide Medicaid
services.
As such, the Debtor was unable to collect approximately $60,000.00
in receivables. In order to cover this shortfall, the Debtor took a
number of Merchant Cash Advance loans. The Debtor subsequently
learned that it could not cash flow while simultaneously
maintaining repayment of the cash advance loans.
The Debtor's financial projection shows that it has projected
disposable income of $1,099.00, which will be used to fund the
Plan.
Class 2 Convenience Class creditors consist of general unsecured
claimants with claims totaling less than $2,000.00. This includes
Proof of Claim No. 2 of American Express for $1,950.86; the LDR
deficiency claim of $99.00; and the Scheduled Nondisputed Claim of
the Louisiana Work Force of $955.00. The three Class One claims
total $3,004.86. The Class Two Claimants shall be paid 50% of its
outstanding claim in a single lump sum payment on the Plan
Effective Date from funds in the DIP account. Debtor will act as
its own disbursement agent. This Class is impaired.
Class 3 consists of General Unsecured Claims. General Unsecured
Creditors total $57,882.00 based upon the Claims filed and
scheduled as undisputed. These Claimants will receive a
distribution of at least $19,188.00 (33% of the total claims)
payable over 36 months in pro rata quarterly monthly payments of
$1,599.00. This payment will begin on the 15th day of the first
full month following the Plan Effective Date. Debtor will act as
its own disbursement agent. This Class is impaired.
Class 4 consists of Equity Interests. Jennifer Poche, the sole
equity interest holder of the Debtor, shall retain her ownership
interest herein and become the sole member of the Reorganized
Debtor.
This Plan will be funded by the post-petition disposable income
earned by the Debtor. Funds held by the Debtor in its DIP account
will be used to satisfy outstanding Administrative Expenses and the
Class 2 Convenience Class Lump Sum payment. Debtor estimates that
the balance in the Debtor in Possession Operating account will be
$3,000.00 as of the Confirmation Hearing.
A full-text copy of the Plan of Reorganization dated November 4,
2025 is available at https://urlcurt.com/u?l=FBt716 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Robin R. De Leo, Esq.
The De Leo Law Firm, LLC
800 Ramon St.
Mandeville, LA 70448
Tel: (985) 727-1664
Fax: (985) 727-4388
Email: lisa@northshoreattorney.com
About Serene Health & Wellness
Serene Health & Wellness LLC is in the business of providing mental
health and medical weight loss services.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. La. E.D. Case No. 25-11276) on June 19, 2025.
At the time of the filing, Debtor had estimated assets of between
$0 to $50,000 and liabilities of between $100,001 to $500,000.
Judge Meredith S. Grabill oversees the case.
The De Leo Law Firm LLC is the Debtor's legal counsel.
SERVICOM LLC: Court Trims Coral Capital's Claim 79-3
----------------------------------------------------
In the adversary proceeding captioned as BARBARA H. KATZ, CHAPTER 7
TRUSTEE, Plaintiff v. EUGENE CALDWELL, DAVID JEFFERSON, and CORAL
CAPITAL SOLUTIONS LLC, Defendants, Adversary Proceeding No. 19-3006
(Bankr. D. Conn.), Chief Judge Ann M. Nevins of the United States
Bankruptcy Court for the District of Connecticut allowed in part
and disallowed in part CORAL CAPITAL SOLUTIONS LLC'S Proof of Claim
79-3 in the bankruptcy case of ServiCom LLC.
Before filing for bankruptcy on October 19, 2018, the Debtors in
these jointly administered cases operated widespread businesses in
the telecommunication sector. To finance operations and in an
attempt to expand their businesses, the Debtors entered into a
factoring relationship with Coral Capital Solutions LLC whereby
they sold their accounts receivable to Coral. Despite this
financing, the Debtors' businesses became embroiled in a spiral of
increasing debt and decreasing liquidity which led the Debtors'
principals, David Jefferson and Eugene Caldwell, to enter into a
term loan transaction with Coral, to provide additional funding to
the Debtors. The Debtors' new loan from Coral in 2017 was in the
original principal amount of $750,000, and over several amendments
the loan amount increased to $1.4 million (the original Secured
Term Note).
The Note required Jefferson and Caldwell to guarantee the loan and
provide Coral with collateral, in the form of cash, in an amount
equal to the amounts Coral would then lend to the Debtors. Although
Coral continued to purchase the Debtors' accounts receivable, the
loan pursuant to the Note was a separate financial transaction.
Seven years after the Petition Date, the Chapter 7 Trustee, Barbara
Katz, Coral, creditor VFI KR SPE I, LLC , and Jefferson and
Caldwell remain embroiled in a dispute about the amount of Coral's
claims based on the factoring arrangement and the Note. Before the
Trustee can complete administration of these estates and before a
claim by VFI as a second-position secured creditor can be
determined, Coral's claims must be allowed or disallowed.
A central issue to resolving the parties' dispute is the $1.4
million transferred by Jefferson and Caldwell to Coral's bank as
collateral for the Note. The Note provides that Jefferson and
Caldwell's collateral in the form of cash would be required before
Coral would make the loan to the Debtors in an equivalent amount.
Coral, the Trustee, Jefferson and Caldwell, and VFI agree Coral's
outstanding pre-petition date advances to the Debtors, pursuant to
the Factoring Agreement, totaled $6,737,858.76. They also agree
Coral later collected $8,001,419.41 on account of these purchased
accounts receivable, resulting in a surplus or "over collection" of
$1,263,560.65. Coral asserts and the Trustee, VFI, and Jefferson
and Caldwell have not disputed Coral is entitled to factoring fees
as a result of these collections totaling $240,194.85.
Under the pre-petition date Factoring Agreement, accounting for the
factoring fees, Coral over-collected approximately $1,023,365.80.
The Court recently denied Coral's request for allowance of an early
termination fee, allegedly owed pursuant to the Factoring
Agreement.
Coral seeks payment from the Debtors' Chapter 7 estates for three
claims. Coral seeks allowance of a pre-petition date claim based on
the pre-bankruptcy Factoring Agreement. This claim is dependent on
an early termination fee the Court previously disallowed. Second,
Coral seeks allowance of a post-petition date claim based on a
post-bankruptcy Factoring Agreement approved by the Court. This
claim is undisputed. Third, Coral seeks allowance of its claims
pursuant to the Note. Coral asserts it never used or applied the
$1.4 million in cash delivered by Jefferson and Caldwell as
collateral. As a result, Coral continues to also assert entitlement
to the principal of $1.4 million plus default rate interest at a
rate of 17% per annum, for a claim totaling approximately
$2,828,888.65 as of November 2024.
Although the Trustee, VFI, and Jefferson and Caldwell oppose
Coral's entitlement to the amounts claimed based on various legal
theories, all parties agree to the calculations supporting Claim
79-3.
The Court holds Coral's claims pursuant to its role as the Debtors'
factor before and after the Petition Date will be allowed,
resulting in Coral owing the Debtors' bankruptcy estates
approximately $818,000 plus interest. No attorney's fees or costs
are awarded to Coral.
According to the Court, regarding the Note, Coral lacked standing
to enforce the Note at any relevant time. Judge Nevins explains,
"Assuming for the sake of argument that Coral could establish
standing, Coral never perfected a security interest in the $1.4
million of cash, never held the cash as collateral, was required to
apply the $1.4 million of cash to the Debtors' obligations if Coral
no longer held the cash as collateral, and therefore was not owed
anything on the Note on the Petition Date. Coral's claim based on
the Note is disallowed."
This is a final decision regarding Coral's Proof of Claim 79-3 and
amended statement of its claims, as well as the parties' various
objections to Coral's claims, Coral's cross claims, and the other
matters identified below where relief is allowed, disallowed, or
objections are sustained or overruled.
The Court entered an order as follows: Coral's Proof of Claim 79-3
is allowed in part and disallowed in part, as well as the
objections to Coral's Proof of Claim 79-3 are resolved as follows:
(1) Coral's pre-petition Factoring Agreement claim is
disallowed; and
(2) Coral's post-petition Factoring Agreement claim is allowed
as a postpetition secured claim and a Chapter 11 administrative
expense claim in the amount of $205,453.01. No attorney's fees or
costs are awarded on this claim because it was not materially
disputed; and
(3) Coral's claim based on the Secured Term Note is disallowed.
On or before December 15, 2025, Coral must pay the Chapter 7
Trustee $817,912.79, representing Coral's overcollection of
accounts receivable in the amount of $1,023,365.80 less the allowed
post-petition claim of $205,453.01. On or before December 15,
2025, Coral must also pay the Chapter 7 Trustee interest of
$474,048.33, for a total payment of principal plus interest equal
to $1,291,961.12. Interest is calculated at a rate of 9% per
annum, for the time period from May 31, 2019, through the present,
pursuant to N.Y. C.P.L.R. 5001. Interest is calculated through
November 10, 2025, with a per diem accruing thereafter at a rate of
$200.98.
A copy of the Court's Memorandum of Decision and Order dated
November 10, 2025, is available at https://urlcurt.com/u?l=IFQeK8
from PacerMonitor.com.
About ServiCom LLC, et al.
JNET Communications LLC is a Delaware limited liability company
that provides over all management and administrative functions as
the holding company for ServiCom LLC and Vitel Communications LLC.
JNET, in conjunction with its subsidiaries, constitutes a full
service, outsource provider of customer contact management and
telecommunication infrastructure fulfillment services to Fortune
1000 companies. JNET was founded in July 2003 by David Jefferson,
a former senior executive of Comcast Corporation and AT&T
Corporation.
JNET has grown significantly since its founding. JNET realized on a
consolidated basis $80 million in revenues in 2017 and is on track
to generate revenues of $70 million in 2018 largely from its two
separate but complementary subsidiaries, ServiCom and Vitel. As of
the Petition Date, JNET independently employs approximately 31
people.
ServiCom provides a comprehensive suite of call center outsourcing
services to a broad range of industries. ServiCom maintains its
principal assets and operates a call center location in Milford,
CT. ServiCom also operates a call center location in Machesney
Park, IL. As of the Petition Date, ServiCom employs approximately
200 people.
Vitel provides installation and construction related services and
other customer management services to cable and telecom companies,
including installation of cable and telephone equipment, high speed
data and digital phone installation, multiple dwelling unit
construction and customer save services. Vitel currently operates
in Georgia, Maryland, New Jersey, Ohio and Texas. As of the
Petition Date, Vitel employs approximately 25 people.
ServiCom Canada is a limited company organized in Nova Scotia,
Canada, that is wholly owned by ServiCom. ServiCom Canada
maintains its principal assets and operates a call center location
in Sydney, Nova Scotia, from which location ServiCom Canada
primarily serves the clients of its ServiCom parent. As of the
ServiCom Canada Petition Date, ServiCom Canada employs
approximately 600 people.
After suffering significant losses in 2017 and 2018, ServiCom LLC,
JNET Communications LLC, and Vitel Communications LLC concurrently
filed Chapter 11 petitions (Bankr. D. Conn. Case Nos. 18-31722 to
18-31724) on Oct. 19, 2018, each estimating $10 million to $50
million in assets and liabilities.
Another affiliate, ServiCom Canada Limited, filed a Chapter 11
petition (Bankr. D. Conn. Case No. 18-31734) on Oct. 23, 2018,
estimating assets of $500,000 to $1 million and liabilities of $1
million to $10 million.
Zeisler and Zeisler, led by James Berman, serves as counsel to the
Debtors.
After an early December 2018 shutdown of operations and a
mid-December 2018 auction of the Debtor's assets, the Court
converted the Chapter 11 case to a Chapter 7 case on Jan. 16,
2019.
SILVERGATE CAPITAL: Secures Court OK for Chapter 11 Plan
--------------------------------------------------------
Rick Archer of Law360 reports that a Delaware bankruptcy judge
signed off Thursday, November 13, 2025, on the Chapter 11 plan for
the parent entity of Silvergate Bank, Silvergate Capital Corp.the
collapsed cryptocurrency-focused lender, after the company informed
the court that it had successfully resolved all remaining
objections. The confirmation brings the case one step closer to
final resolution.
According to the debtor, extensive negotiations with creditor
groups and other stakeholders led to a consensual plan that
eliminated earlier points of contention. The court noted that, with
no outstanding objections, the proposal was ready for approval.
With the plan confirmed, the former bank’s parent company can
enter the final phase of its bankruptcy, which will involve
liquidating assets and implementing distributions. The approval
effectively sets the framework for concluding the company's exit
from the crypto-driven collapse that forced its shutdown, the
report states.
About Silvergate Capital Corporation
Silvergate Capital Corporation is a Maryland corporation
headquartered in La Jolla, Calif. Until July 1, 2024, it was a bank
holding company subject to supervision by the Board of Governors of
the Federal Reserve.
Silvergate Capital Corporation filed voluntary Chapter 11 petition
(Bankr. D. Del. Lead Case No. 24-12158) on Sept. 17, 2024, listing
$100 million to $500 million in assets and $10 million to $50
million in liabilities. The petitions were signed by Elaine Hetrick
as chief administrative officer.
Judge Karen B. Owens oversees the case.
Paul N. Heath, Esq., at Richards, Layton & Finger, P.A. represents
the Debtor as legal counsel.
The U.S. Trustee for Region 3 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Silvergate Capital Corporation.
SIMBA IL HOLDINGS: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The U.S. Trustee for Region 16 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Simba IL Holdings, LLC.
About Simba IL Holdings
Simba IL Holdings, LLC operates as a nonbank holding company that
manages equity interests in subsidiary businesses.
Simba IL Holdings filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-12616) on
September 16, 2025, with $10 million to $50 million in assets and
$100 million to $500 million in liabilities. John-Patrick Fritz
serves as Subchapter V trustee.
Judge Mark D. Houle oversees the case.
The Debtor tapped Leonard M. Shulman, Esq., at Shulman Bastian
Friedman Bui & O'Dea, LLP as bankruptcy counsel; Reeves & Weiss,
LLP as special litigation counsel; and Richard Marshack of Marshack
Hays Wood, LLP as chief restructuring officer.
SKYLINE EMS: Unsecured Creditors to Get Share of GUC Cash Pool
--------------------------------------------------------------
Skyline EMS, Inc., filed with the U.S. Bankruptcy Court for the
Southern District of Texas a Disclosure Statement describing Plan
of Reorganization dated November 5, 2025.
The Debtor is a Texas corporation founded in January 2010, which
currently provides emergency (911) ambulance transportation
services to residents of Jim Hogg County, Texas, Precincts 1 and 3
of Hidalgo County, Texas and the City of Palmhurst, Texas.
This petition was filed in order to protect Debtor's operations and
services because Debtor has a good faith belief that it can
continue to generate a sufficiently high revenue stream and
implement cost-cutting administrative measures to permit it to fund
its reorganization plan, while constantly evaluating whether its
dispatch technology is improving operational efficiency to improve
response times and patient outcomes. At the current time, the
Debtor believes that it can continue to operate in the manner as
outlined in its 5-year financial forecast.
The Debtor believes there are several opportunities for growth in
the ambulance service sector. The demand for emergency medical
services is expected to grow by 7.1% annually, fueled by an aging
population and increased incidence of chronic diseases.
Since filing for bankruptcy protection, the Debtor has continued to
operate its facility and has been focused on streamlining and
improving revenue cycle management, reducing costs where possible,
renegotiating certain agreements with insurers, conducting an
inventory, and improving visibility into collections.
Since the bankruptcy filing, the Debtor has continued to rent its
office space from which it operates its main business. As part of
its Plan of Reorganization, the Debtor has assumed and rejected
certain leases and executory contracts.
Class 3 consists of all General Unsecured Claims. Except to the
extent that a holder of an Allowed General Unsecured Claim agrees
to less favorable treatment of such Claim, in exchange for full and
final satisfaction, settlement, release, and discharge of, and in
exchange for, such Allowed General Unsecured Claim, each holder of
an Allowed General Unsecured Claim shall receive its Pro Rata share
of the GUC Cash Pool up to the full amount of such Allowed General
Unsecured Claim following the payment in full of all secured and
priority classes; provided that the Reorganized Debtor shall not be
required to make Distributions to any holder of an Allowed General
Unsecured Claim if such Distribution is less than $50.00.
The General Unsecured Claims will receive pro rata distributions
from the GUC Cash Pool; the Reorganized Debtor will make Post
Emergence Monthly Payments to the GUC Distribution Reserve after
the Effective Date to fund the GUC Cash Pool. If the Reorganized
Debtor does not make the Post-Emergence Monthly Payments to the GUC
Distribution Reserve when due under the Plan, the holder of any
unsatisfied General Unsecured Claim can serve written notice of
default on the Reorganized Debtor. If the Reorganized Debtor does
not cure such default, or if the Bankruptcy Court determines that a
default has occurred, such holder may pursue any and all remedies
available under applicable state or federal law and assert a
default interest rate of 4% accruing as of the date of the default.
Class 3 is Impaired.
Class 6 consists of all Equity Interests in the Debtor. On the
Effective Date, Equity Interests in the Debtor shall be retained.
Class 6 is Impaired, and each holder of an Equity Interest is
conclusively deemed to have rejected the Plan pursuant to section
1126(g) of the Bankruptcy Code.
The Debtor's plan is feasible. Specifically, Debtor's projected
average monthly net income, is $118,442.10. This monthly income is
sufficient to pay the Plan Payment of $78,340.59.
A full-text copy of the Disclosure Statement dated November 5, 2025
is available at https://urlcurt.com/u?l=7zycNQ from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Antonio Martinez, Jr., Esq.
515 W. Nolana Ave., Ste. B
McAllen, TX 78504
Telephone: (956) 683-1090
Email: martinez.tony.jr@gmail.com
About Skyline EMS Inc.
Skyline EMS Inc., an emergency medical services provider operating
across the Rio Grande Valley in Texas. It provides ambulance and
emergency medical response services from its base in Mission,
Texas.
Skyline EMS Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-70188) on July 7,
2025. In its petition, the Debtor reports estimated assets up to
$50,000 and estimated liabilities of $2.86 million.
The Debtor is represented by Antonio Martinez, Jr., Esq.
SMITH HEALTH: No Resident Care Concern, 6th PCO Report Says
-----------------------------------------------------------
Margaret Barajas, the patient care ombudsman, filed with the U.S.
Bankruptcy Court for the Middle District of Pennsylvania her sixth
report regarding the quality of patient care provided by Smith
Health Care, LTD.
The ombudsman observed that the facility was clean, with
comfortable temperature and acceptable sound and voice levels; an
activities calendar is posted with appropriate activities; and
residents have access to snacks and second servings at meals. No
concerns were received regarding call bells.
During the site visit on October 14, the local ombudsman received
reports from staff and residents that there may be a change in
ownership, but nothing has been finalized. The administrator was
not available to provide further information; the local ombudsman
will continue to monitor the sale situation.
Moreover, staff staff reported no concerns with quality of care due
to Smith Health Care's bankruptcy. The ombudsman observed that the
current occupancy rates remain consistent from the previous report.
Local ombudsman records indicate that this census, based on the
number of available beds, is similar to other personal-care
facilities in the area.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=RxiJaK from PacerMonitor.com.
About Smith Health Care Ltd.
Smith Health Care Ltd., formerly known as Smith Nursing and
Convalescent Home of Mountain Top, Inc., provides inpatient nursing
and rehabilitative services to patients who require continuous
health care. It is based in Mountain Top, Pa.
Smith Health Care filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. M.D. Pa. Case No. 24-02892) on
November 7, 2024, with $1 million to $10 million in both assets and
liabilities. Donna Strittmatter, president of Smith Health Care,
signed the petition.
Judge Mark J. Conway handles the case.
The Debtor is represented by Robert E. Chernicoff, Esq., at
Cunningham, Chernicoff & Warshawsky, PC.
Margaret Barajas is the patient care ombudsman appointed in the
Debtor's case.
SONDER HOLDINGS: Plans to Liquidate Under Chapter 7 Bankruptcy
--------------------------------------------------------------
Sonder Holdings Inc., which operates a global brand of premium,
design-forward apartments and intimate boutique hotels serving the
modern traveler, announced on Nov. 10, 2025, that it will complete
winding down operations immediately and expects to initiate a
Chapter 7 liquidation of its U.S. business. The Company also
intends to initiate insolvency proceedings in the international
countries in which it operates.
Sonder has faced severe financial constraints arising from, among
other things, prolonged challenges in the integration of the
Company's systems and booking arrangements with Marriott
International. On Sunday, November 9, 2025, Marriott International
announced that it terminated its licensing agreement with Sonder,
deeming it no longer in effect.
The Company made comprehensive efforts to evaluate all financing
and other strategic alternatives, including a sale of its business
and operations, to improve its financial condition. As part of
those efforts, the Company engaged numerous strategic and financial
parties but ultimately was unable to execute a viable going concern
transaction for its business and operations or obtain additional
liquidity.
In light of these unsuccessful efforts and the Company's financial
condition, the Board of Directors made the difficult decision to
wind-down operations and pursue a court-supervised liquidation of
the U.S. business immediately.
"We are devastated to reach a point where a liquidation is the only
viable path forward," said Janice Sears, Interim Chief Executive
Officer of Sonder. "Unfortunately, our integration with Marriott
International was substantially delayed due to unexpected
challenges in aligning our technology frameworks, resulting in
significant, unanticipated integration costs, as well as a sharp
decline in revenue arising from Sonder's participation in
Marriott's Bonvoy reservation system. These issues persisted and
contributed to a substantial and material loss in working capital.
We explored all viable alternatives to avoid this outcome, but we
are left with no choice other than to proceed with an immediate
wind-down of our operations and liquidation of our assets."
Ms. Sears continued, "The Board and I are deeply grateful to our
employees for their longstanding dedication to putting the guest
experience at the center of everything we do. Due to their passion
and effort, Sonder spent the last decade redefining hospitality
with remarkable and accessible guest stay experiences. On behalf of
the entire Sonder team, we express our gratitude to our guests and
partners for their business and support over the years."
Additional information regarding the court proceedings and
wind-down, including the status of the Company's operations outside
the U.S., will be made available by the Chapter 7 Trustee or the
Company's international subsidiaries in due course.
About Sonder
Sonder (NASDAQ: SOND) is a leading global brand of premium,
design-forward apartments and intimate boutique hotels serving the
modern traveler. Launched in 2014, Sonder offers inspiring,
thoughtfully designed accommodations and innovative, tech-enabled
service combined into one seamless experience. Sonder properties
are found in prime locations in 37 cities, spanning nine countries,
and three continents.
About Sonder Holdings Inc.
Sonder Holdings Inc., provides short and long-term accommodations
to travelers in various cities across North America, Europe, and
the Middle East. It also operates boutique hotels.
STAGGEMEYER STAVE: To Sell Oak Staves Business to Wood Products
---------------------------------------------------------------
Staggemeyer Stave Company Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Minnesota, to sell Property,
free and clear of liens, claims, interests, and encumbrances.
The Debtor proposes to sell substantially all assets of the Debtor
and to assume and assign related unexpired leases and executory
contracts to Staggemeyer Wood Products LLC in the purchase price of
$1,100,000.
The Debtor manufactures premium white oak staves and heading in
Caledonia, Minnesota. Prior to the Petition Date, the Debtor sought
to sell its business. After marketing its business for over six
months, the Debtor finally found a potential purchaser. The Debtor
commenced this case for the purpose of completing a going-concern
sale of its business.
Prior to the Petition Date, the Debtor marketed its business for
approximately 14 months.
In August 2024, the Debtor determined that selling the business was
the best option to maximize value for creditors and began privately
marketing its business to other stave mills and cooperages. No
party indicated interest.
After privately marketing the business for the four months, the
Debtor retained a broker in January 2025 to find a buyer. The
broker similarly was unable to locate an interested buyer.
Finally, over the summer of 2025, the Buyer’s principal, Dennis
Gavin, reached out to the Debtor and expressed interest purchasing
the Debtor’s business as a going concern. The Debtor and its main
secured lender, Decorah Bank & Trust, entered into negotiations
with the Buyer and the Debtor and the Buyer ultimately agreed to
terms acceptable to the Bank.
The lienholder of the Property is Decorah Bank & Trust Company.
In negotiations, the Buyer emphasized its need to obtain Court
approval of the transaction as quickly as possible to allow it
sufficient time to arrange an orderly transition of operations from
the Debtor. Due to the cash flow needs of the Debtor, an
expeditious sale approval process also benefits the Debtor and its
creditors.
The Buyer is a newly-formed entity owned by Dennis Gavin and Chad
Miller. Mr. Gavin owns and operates an unrelated entity, Caledonia
Haulers, Inc., and Mr. Miller is a member of, and serves as chief
financial officer of, Al-Corn Clean Fuel, LLC, an unrelated entity.
The Buyer is not an insider or affiliate of the Debtor and has no
connections to the Debtor. The Buyer has acted in good faith in
connection with the sale.
The sale of the Debtor’s assets is proposed to be a sale free and
clear of all liens, claims, interests and encumbrances.
The Buyer is not an insider of the Debtor, further, the APA is a
product of arm’s-length, good-faith negotiations.
About Staggemeyer Stave Company Inc.
Staggemeyer Stave Company Inc., based in Caledonia, Minnesota,
manufactures premium white oak barrel staves and headings for
whiskey distilleries and wineries, sourcing high-quality oak from
the surrounding region. The Company has supplied cooperages for
brands including Seagram and Jack Daniel's and exports staves to
wineries worldwide.
Staggemeyer Stave Company Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Minn. Case No. 25-33297) on
October 17, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge William J. Fisher handles the case.
The Debtor is represented by Steven R. Kinsella, Esq. of
FREDRICKSON & BYRON, P.A.
SYNERGY INFRASTRUCTURE: S&P Assigns 'B' ICR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to
Equipment rental provider, Synergy Infrastructure Holdings LLC
(doing business as Opifex-Synergy).
At the same time, S&P's assigned its 'B' issue-level rating and '4'
recovery rating to the company's proposed second-lien secured
notes.
The stable outlook reflects S&P's view that S&P Global
Ratings-adjusted debt to EBITDA will decline to the mid-3x area
over the next year, assuming continued favorable operating trends.
Opifex-Synergy plans to upsize its existing asset-backed lending
(ABL) facility to $500 million and issue $500 million of
second-lien secured notes.
The company will use the notes along with $15 million drawn from
the new proposed ABL to repay its existing debt, which includes
$293 million of outstanding ABL draws, a $51 million term loan,
$114 million in notes payable, and $57 million outstanding of
subordinated notes.
S&P said, "Our assessment of Opifex-Synergy's business reflects its
small scale and market share in the fragmented and competitive
equipment rental industry. We view scale as a key indicator of
competitive advantage in the equipment rental industry, as larger
national players benefit from extensive, geographically diverse
fleets that enable them to serve a broader customer base and lead
participation on major projects. As the seventh-largest equipment
rental company in North America, we view Opifex-Synergy as a large
regional operator in the southeastern U.S. that lacks the scale to
compete for leadership roles on large projects."
Further, the company primarily rents equipment in smaller
quantities to subcontractors. While this approach demonstrates
operational discipline and supports customer diversification, it
also underscores the competitive limitations the company faces
relative to larger national peers. S&P said, "Despite ongoing
consolidation trends in the industry, we still view the equipment
rental industry as fragmented and estimate Opifex-Synergy's market
share is less than 1%. Additionally, its modest revenue base, in
our view, increases Opifex-Synergy's vulnerability during periods
of pull-back in equipment rental demand."
The company's strong asset utilization, relatively young fleet age,
and focus on secular growth markets partially offset risks. Smaller
operators often achieve lower dollar utilization than larger peers,
reflecting proportionally higher investment in fleet expansion. S&P
expects Opifex-Synergy's 2025 dollar utilization to be low-40%,
comparable to that of much larger peer Herc Holdings Inc. In its
view, this reflects good fleet management. The company also
maintains a relatively young fleet, with an average age of about 40
months--below the industry average and a key differentiator from
larger peers. This provides greater flexibility to moderate capital
spending during periods of weaker demand, allowing the company to
age its fleet while maintaining its quality.
Opifex-Synergy primarily serves nonresidential end markets across
infrastructure, industrial, and institutional channels. The company
intentionally limits its exposure to more cyclical sectors, with
residential, oil and gas, mining and agriculture collectively
representing only about 18% of revenue. S&P said, "The company
primarily operates in growing metropolitan areas in the
southeastern U.S., where we expect demographic shifts to provide
tailwinds for growth in the near to medium term. We believe it will
benefit from the ongoing buildout of U.S. infrastructure, supported
by continued disbursements under the Infrastructure Investment and
Jobs Act (IIJA)." In addition, robust construction of data centers
and semiconductor plants to accommodate growth in cloud computing
and AI adoption should further bolster demand.
S&P said, "We expect earnings growth will drive declines in S&P
Global Ratings-adjusted debt to EBITDA to the mid-3x area in 2026.
Under our base-case forecast, we expect organic revenue growth of
7%-9% in 2026, supported by healthy end-market demand and fleet
growth. Additionally, the full-year contribution from the company's
September 2025 acquisition of Equipment Finders will add some
inorganic growth. We project S&P Global Ratings-adjusted EBITDA
margins to improve 50-100 basis points (bps), driven by the
winddown of re-rent expenses and the maturation of greenfield
locations opened in 2025. Re-rent costs have been a headwind in
2025 as elevated utilization levels required the company to source
third-party equipment and re-rent it to customers at minimal or no
margin to preserve relationships. Additionally, the company opened
three greenfield locations and launched its trench safety business
in 2025, both of which will likely turn profitable in 2026. As the
proposed transaction is leverage-neutral, we expect earnings growth
to drive deleveraging.
"We forecast Opifex-Synergy will generate negative free operating
cash flow (FOCF) primarily from growing fleet investments. We
expect the company to supplement a favorable equipment rental
demand environment with continued fleet expansion. As a result, we
project sustained negative FOCF under our base-case scenario, as
growth in absolute profitability is more than offset by higher
capital expenditure (capex). However, consistent with the industry,
Opifex-Synergy retains flexibility to moderate fleet investments
during periods of weaker demand--a key discretionary lever that
helps mitigate downside risk. We believe its relatively young fleet
provides even greater flexibility than many industry peers."
The highly leveraged financial risk profile reflects potential
volatility in credit metrics and significant ownership and control
by a financial-sponsor. Opifex-Synergy's small size and
participation in the cyclical and occasionally volatile equipment
rental market exposes it to swings in credit metrics.
Opifex-Synergy is 46% owned by financial sponsor, Avance Investment
Management, which also controls the company's board with a majority
of the votes. As a result, S&P believes its ownership could lead to
decision-making that prioritizes equity holders over other
stakeholders. That said, the sponsor intends to maintain a
relatively conservative financial profile compared to other
sponsor-owned companies.
The stable outlook reflects S&P's view that operating trends will
be favorable over the next 12 months and its S&P Global
Ratings-adjusted debt to EBITDA will decline to the mid-3x area.
S&P could lower its rating on Opifex-Synergy if:
-- S&P Global Ratings-adjusted leverage increases above 6x because
operating performance weakens or it pursues significant debt-funded
acquisitions or shareholder returns;
-- S&P Global Ratings-adjusted cash flow from operations to debt
declines below 5%;
-- An FOCF deficit during a downturn; or
-- Liquidity deteriorates, for instance due to limited borrowing
capacity under its ABL from aggressive investments in fleet.
S&P could raise its rating on Opifex-Synergy if:
-- It sustains a track record of S&P Global Ratings-adjusted
leverage below 4x, and we expect financial policy to remain
commensurate with this level. This reflects our view that
Opifex-Synergy's credit metrics can be volatile and weaken during
periods of stress; and
-- The company generates cash flow from operations to debt of 15%
on average across the business cycle.
TIKE LLC: Section 341(a) Meeting of Creditors on December 11
------------------------------------------------------------
On November 6, 2025, Tike LLC filed Chapter 11 protection in
the District of Nevada. According to court filing, the Debtor
reports $2,026,405 in debt owed to 1 and 49 creditors.
A meeting of creditors under Section 341(a) to be held on December
11, 2025 at 01:00 PM at Telephonic.
About Tike LLC
Tike LLC, d/b/a Welch Plastics, provides plastic manufacturing and
fabrication services, including product prototyping, high-volume
injection molding, reverse engineering, 3D printing, laser
scanning, CAD file creation, CNC and laser cutting, heat bending,
and thermoforming, serving clients from its base in Las Vegas,
Nevada. The Company, founded in 2000, is veteran- and
minority-owned and specializes in producing sheet materials, large
plastic tubes, and custom-designed plastic components.
Tike LLC sought relief under Subchapter V of Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 25-16736) on November 6,
2025. In its petition, the Debtor reports total assets of
$1,851,820 and total liabilities of $2,026,405.
The Debtor is represented by James T. Leavitt, Esq. of LEAVITT
LEGAL SERVICES, P.C.
TILT HOLDINGS: Initiates CCAA Restructuring With Noteholder Support
-------------------------------------------------------------------
TILT Holdings Inc., a global provider of cannabis business
solutions including inhalation technologies, cultivation,
manufacturing, processing, brand development and retail, announced
on Nov. 0, 2025, that it has reached agreement with the holders of
senior secured notes of the Company, and that the Supreme Court of
British Columbia has issued an initial order granting the Company
protection under the Companies' Creditors Arrangement Act, R.S.C.
1985, c. C-36, as amended.
The Initial Order provides for, among other things:
(i) a stay of proceeding in favor of the Company and
(ii) the appointment of PricewaterhouseCoopers to serve as monitor
during the restructuring.
The Company also announced the closing of an offering of up to
US$2.0 million in aggregate principal amount of senior secured
promissory notes from its existing Noteholders to meet the
Company's payment obligations during the pendency of the CCAA
proceedings. Importantly, the CCAA proceedings do not affect any of
TILT's subsidiaries, who continue to operate in the normal course
of business.
The decision to seek creditor protection was made in the best
interest of the Company and all of its stakeholders after careful
evaluation by the board of directors of the Company of the
Company's financial situation, consideration by the Board of
alternatives available to the Company and consultation with the
Company's legal and financial advisors. The Board will remain in
place during the CCAA proceedings, and the Company will remain
responsible for its continued operations under the supervision of
the Court and the general oversight of the Monitor. The Company
intends to fund the CCAA process from cash on hand as well as
through the Bridge Notes.
Through the Restructuring Process, the Company intends to seek
approval of and implement a plan of arrangement that will take the
Company private by cancelling all existing equity interests and
issuing equity to the Noteholders. Other creditors of the Company
will be unaffected. TILT anticipates seeking permission to hold a
meeting of the Noteholders to vote on the Plan at a later hearing
anticipated to be on November 17, 2025.
The proposed Restructuring Process is the result of agreements
reached with Noteholders representing a significant majority of the
outstanding Senior Notes, the Board's evaluation of the Company's
financial situation, the Board's consideration of all alternatives
available to the Company and the Board's consultation with the
Company's legal and financial advisors. Based on such evaluation,
consideration and consultations, the Board has determined that the
proposed Restructuring Process and the Plan is in the best
interests of the Company and all of its stakeholders.
"Over the past 18 months, TILT has taken deliberate steps to
streamline operations and strengthen its core business. We reduced
operating expenses by approximately $10 million annually and
initiated a strategic review process of plant-touching assets,
completing the first phase with the sale of our retail operations
in Massachusetts to date. At the same time, we have been
reestablishing Jupiter Research as an industry-leading ancillary
vape hardware solutions provider by refocusing on customer needs in
a constantly evolving vaporization landscape, building an
industry-leading team, expanding to Europe through the release of a
first-of-its-kind medical inhalation device, and enhancing supplier
relationships in Asia," stated TILT's Chief Executive Officer, Tim
Conder.
"We are now in a pivotal moment. With these efforts well underway,
our focus now turns to optimizing our balance sheet and debt
obligations. This restructuring intends to align our balance sheet
with the current scale of the business and position TILT for
long-term stability and growth. We expect to emerge with a
supportive creditor and ownership groups aligned with the Company's
strategic objectives. This process will also enable further cost
reductions, including public company expenses of approximately $2.5
million, and support continued investment in innovation, including
the full-time return of Jupiter's founder, Mark Scatterday. We do
not anticipate any disruption to customers, partners, employees,
creditors, or suppliers through this process. In fact, our key
stakeholders should expect us to reinvest in our commitment to each
of them with a sharpened focus to deliver value through a more
resilient operating model."
Conder continued, "We recognize and understand this step impacts
our current shareholders, myself included. Given continued pressure
on capital markets and our existing debt profile, this path is both
necessary and responsible to support the long-term health of the
business.
"And to all TILT's employees, thank you for your perseverance and
dedication. We have come a long way together. Your commitment to
our shared vision is fortifying and has galvanized our collective
vision for the future. We remain confident in the strength of our
team and our strategic direction as we move forward."
Trading of the Company's common shares on the Cboe Canada Exchange
and on the OTCID in the United States has been halted, and the
Company anticipates that the trading halt will remain in effect
pending delisting of the Company's common shares from such stock
exchanges.
The participation of Mark Scatterday in the Plan constitutes
"related party transaction" of the Company under Multilateral
Instrument 61-101 -- Protection of Minority Security Holders in
Special Transactions.
Related party transactions under MI 61-101 typically require a
formal valuation and minority shareholder approval unless
exemptions from these requirements are available. The Company will
rely on the exemption from the formal valuation requirement
contained in Section 5.5(f) of MI 61-101 (Bankruptcy, Insolvency,
Court Order) and the exemption from the minority shareholder
approval requirement contained in Section 5.6(d) of MI 61-101
(Bankruptcy, Insolvency, Court Order) in respect of the Related
Party Transaction.
The Company did not file a material change report more than 21 days
before the issuance of the Initial Order as the details of the
Initial Order were not certain until granted by the Court.
About TILT
TILT is dedicated to helping cannabis businesses build their
brands. Through a diverse portfolio of companies providing
technology, hardware, cultivation and production, TILT services
brands and cannabis retailers across North America, South America,
Israel and the European Union. TILT's core business is Jupiter
Research LLC, a wholly-owned subsidiary and leader in the
vaporization segment focused on hardware design, research,
development and manufacturing. Jupiter recently received EU medical
device certification for Europe's first handheld liquid inhalation
device. Additionally, TILT operates Commonwealth Alternative Care,
Inc., Inc. in Massachusetts, and Standard Farms Ohio, LLC in Ohio
and is the permit holder of record for Standard Farms LLC in
Pennsylvania. TILT is headquartered in Scottsdale, Arizona. For
more information, visit www.tiltholdings.com.
TP BRANDS: Case Summary & Largest Unsecured Creditors
-----------------------------------------------------
Three affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
TP Brands Worldwide Inc. 25-08424
2021 51st Avenue East
Unit 109
Palmetto, FL 34221
TP Brands International Inc. 25-08425
2021 51st Avenue East
Unit 109
Palmetto, FL 34221
Premfloor, Inc. 25-08427
2021 51st Avenue East
Unit 109
Palmetto, FL 34221
Business Description: The Debtors manufacture and import flooring
products, door components, ready-to-assemble
kitchen cabinets, and bathroom vanities,
offering a full domestic inventory and
services across North America. The Debtors'
products are distributed through networks of
distributors and dealers in North and South
America, and they provide private label
programs and OEM services, as well as
product development, sourcing, and
oversight.
Chapter 11 Petition Date: November 10, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Judge: Hon. Caryl E Delano
Debtor's Counsel: Edward J. Peterson, Esq.
Clay B. Roberts, Esq.
BERGER SINGERMAN LLP
101 E. Kennedy Blvd.
Suite 1165
Tampa, FL 33602
Tel: 813-498-3400
Fax: 813-527-3705
Email: epeterson@bergersingerman.com
croberts@bergersingerman.com
TP Brands Worldwide's
Estimated Assets: $0 to $50,000
TP Brands Worldwide's
Estimated Liabilities: $1 million to $10 million
TP Brands International's
Estimated Assets: $500,000 to $1 million
TP Brands International's
Estimated Liabilities: $10 million to $50 million
Premfloor, Inc.'s
Estimated Assets: $0 to $50,000
Premfloor, Inc.'s
Estimated Liabilities: $1 million to $10 million
The petitions were signed by Thomas J. Winter as president.
Copies of the Debtors' list of unsecured creditors are available
for free on PacerMonitor at:
https://www.pacermonitor.com/view/R4WIUPA/TP_Brands_Worldwide_Inc__flmbke-25-08424__0002.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/A5722SQ/Premfloor_Inc__flmbke-25-08427__0002.0.pdf?mcid=tGE4TAMA
Full-text copies of the petitions are available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/RVW52PI/TP_Brands_Worldwide_Inc__flmbke-25-08424__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/6NNWQ2I/TP_Brands_International_Inc__flmbke-25-08425__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/AXEBAEQ/Premfloor_Inc__flmbke-25-08427__0001.0.pdf?mcid=tGE4TAMA
TRIGGER IT: Case Summary & Seven Unsecured Creditors
----------------------------------------------------
Debtor: Trigger It, LLC
1033 Phar Lap Pl
Cary NC 27519
Business Description: Trigger IT, LLC provides IT solutions and
consulting services to clients globally,
offering application support, software
development, staff augmentation, system
integration, infrastructure and datacenter
maintenance, and managed IT services. The
Company delivers enterprise technology
solutions including ERP, CRM, and HCM
implementations, business intelligence, QA
and testing, application development and
management, and IT outsourcing, aimed at
optimizing organizational performance.
Trigger IT serves a diverse range of
industries, including automotive, banking
and financial services, consumer goods,
healthcare, insurance, oil and gas, and
utilities.
Chapter 11 Petition Date: November 8, 2025
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 25-04466
Judge: Hon. Joseph N Callaway
Debtor's Counsel: JM Cook, Esq.
J.M. COOK, P.A.
5886 Faringdon Place Suite 100
Raleigh NC 27609
Tel: 919-675-2411
Email: j.m.cook@jmcookesq.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Venkata Konduri as managing member.
A full-text copy of the petition, which includes a list of the
Debtor's seven unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/OG765GA/Trigger_It_LLC__ncebke-25-04466__0001.0.pdf?mcid=tGE4TAMA
TRIPLESHOT HOLDINGS: Gets Extension to Access Cash Collateral
-------------------------------------------------------------
Tripleshot Holdings, LLC received another extension from the U.S.
Bankruptcy Court for the Middle District of Florida to use cash
collateral to fund operations.
The court extended the Debtor's authority to use cash collateral to
December 9 to pay the amounts expressly authorized by the court,
including payments of U.S. trustee quarterly fees; the expenses set
forth in its budget; and additional amounts subject to approval by
its senior creditor, Gulf Coast Bank and Trust Company.
As adequate protection for the Debtor's use of its cash collateral,
Gulf Coast Bank and any other secured creditors will have a first
priority perfected post-petition lien on the cash collateral with
the same priority as their pre-bankruptcy lien.
As part of the agreement, adequate protection payments of $7,200
per month will be made to Gulf Coast Bank, which includes $5,000 in
regular payments and $2,200 in catch-up payments.
The Debtor's authority to use cash collateral will terminate before
December 9; upon dismissal or conversion of its Chapter 11 case;
the appointment of a trustee; the confirmation of its Chapter 11
plan; termination after service of notice in accordance with the
interim order; or a further hearing on cash collateral use.
The next hearing is set for December 9.
About Tripleshot Holdings LLC
Tripleshot Holdings, LLC, doing business as Carver's Olde Iron,
imports and sells cast-iron home decor products through its online
storefront. Its offerings include doorstops, bookends, ashtrays,
candle holders, and novelty pieces in rustic, western, vintage, and
industrial styles.
Tripleshot Holdings filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04544) on July
3, 2025, listing total assets of $15,000 and total liabilities of
$1,173,564. Kathleen DiSanto, Esq., at Bush Ross, P.A., serves as
Subchapter V trustee.
Judge Roberta A. Colton handles the case.
The Debtor is represented by Samantha L Dammer, Esq., at Bleakley
Bavol Denman & Grace.
Gulf Coast Bank and Trust Company, as lender, is represented by:
Dora F. Kaufman, Esq.
Jonathan Camacho Villamil, Esq.
Liebler, Gonzalez & Portuondo
44 West Flagler Street,
25th Floor Miami, FL 33130
Tel: (305) 379-0400
dfkf@lgplaw.com
ec@lgplaw.com
service@ lgplaw.com
jcamacho@lgplaw.com
TRIPLETT FUNERAL: Amends Motion to Sell Property
------------------------------------------------
Robert E. Eggmann, Chapter 11 Trustee for Triplett Funeral Homes,
LLC, amends motion to sell Commercial Personal and Real Property,
free and clear of liens, claims, interests, and encumbrances.
The Debtor operates Triplett Funeral Homes Golden, a funeral home
operating at 501 Emminga Road, Golden, IL 62339 and Triplett
Funeral Homes Mendon, a funeral home operating at 208 North State
Street, Mendon, IL 62351, and owns the commercial properties
located at 501 Emminga Road, Golden, IL 62339, 208 North State
Street, Mendon, IL, 123 E. South Street, Mendon, IL 62351 (commonly
known as the Family Care Center), and 100 E. South Street, Mendon,
IL 62351. The Debtor also owns certain personal property located on
the Property, including but not limited to a 2019 or 2020 Pacifica
Van and a two-person refrigerator unit in Golden, Illinois, which
is used in the operations of the Businesses.
The Property and Assets are encumbered by a security interest in
favor of Ready Capital Lending in an approximate amount of
$1,600,000.00.
On November 5, 2025, Trustee filed its Motion for Order Authorizing
Sale of Commercial Personal Property and Commercial Real Property
(Mendon and Golden).
The Original Motion stated that the Sale Price was $385,000.00.
Following the filing of the Original Motion, Ready Capital Lending
contacted the Trustee indicating that they had believed the Sale
Price would be $435,000.00 and would not consent to a price of
$385,000.00.
The Trustee contacted Purchaser, J. Otto Funeral Homes, LLC (along
with J. Otto Properties, LLC), and relayed the concerns of Ready
Capital Lending. In response, the Purchaser agreed to up the
Purchase Price
to $435,000.00 and Ready Capital Lending consented to the amended
Sale Price.
The Trustee and Purchaser therefore executed a First Amendment to
the Asset Purchase Agreement.
J. Otto Funeral Homes, LLC (along with J. Otto Properties, LLC) has
submitted an offer to Trustee to purchase the Assets and Property
for the total sale price of $435,000.00.
Ready Capital Lending has communicated to Trustee that it consents
to the Sale despite the fact that the Sale will not result in Ready
Capital Lending getting its entire secured claim paid in full.
About Triplett Funeral Homes, LLC
Triplett Funeral Homes, LLC, a company in Kahoka, Mo., is a locally
owned and operated funeral service provider dedicated to offering
compassionate services and personalized care to families during
their time of need.
Triplett Funeral Homes sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Miss. Case No. 25-20049) on March 27,
2025. In its petition, the Debtor reported between $1 million and
$10 million in both assets and liabilities.
Judge Kathy A. Surratt-States oversees the case.
The Debtor is represented by Fredrich J. Cruse, Esq., at Cruse
Chaney-Faughn.
Robert E. Eggmann is the Debtor's Chapter 11 trustee.
TURNKEY CONSTRUCTION: Case Summary & 17 Unsecured Creditors
-----------------------------------------------------------
Two affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Turnkey Construction and Maintenance, Inc. 25-04127
9521 Shellie Road
Suite #1
Jacksonville, FL 32257
Turnkey Roofing of Florida, Inc. 25-04128
9521 Shellie Road
Suite #1
Jacksonville, FL 32257
Another affiliate, Turnkey Roofing of Texas, Inc., has filed for
Chapter 7 bankruptcy protection under Case No. 25-04126.
Business Description: Turnkey Construction and Maintenance, Inc.
and Turnkey Roofing of Florida, Inc. are
roofing contractors that provide full-
service residential and commercial roofing
solutions, including installation, repair,
replacement, and maintenance. They employ
certified roofing professionals and serve
property owners, developers, and businesses
across Florida.
Chapter 11 Petition Date: November 10, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Judge: TBD
Debtors'
Bankruptcy
Counsel: Thomas Adam, Esq.
ADAM LAW GROUP, PA
2258 Riverside Ave
Jacksonville, FL 32204
Email: tadam@adamlawgroup.com
Turnkey Construction's
Estimated Assets: $0 to $50,000
Turnkey Construction's
Estimated Liabilities: $1 million to $10 million
Turnkey Roofing of Florida's
Estimated Assets: $100,000 to $500,000
Turnkey Roofing of Florida's
Estimated Liabilities: $1 million to $10 million
The petitions were signed by Ruben Lavarias as president.
Full-text copies of the petition, which includes lists of the
Debtors' largest unsecured creditors, are available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/2O5SKVY/Turnkey_Construction_and_Maintenance__flmbke-25-04127__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/2V4PQJI/Turnkey_Roofing_of_Florida_Inc__flmbke-25-04128__0001.0.pdf?mcid=tGE4TAMA
V2X INC: S&P Affirms 'B+' ICR on Steady Award Activity
------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on V2X
Inc., reflecting steady performance amid an uncertain award
environment and the ongoing government shutdown.
S&P said, "At the same time, we affirmed our 'B+' issue-level
rating on the company's senior secured debt. Our '3' recovery
rating is unchanged and indicates our expectation for meaningful
(50%-70%; rounded estimate 50%) recovery in the event of a
default.
"The stable outlook on V2X reflects our expectation that the
company's credit metrics will remain in line with the rating as it
improves its profitability and expands its contract base. We expect
its debt to EBITDA to be near 4x in 2025 before improving to the
high-3x area in 2026.
"S&P Global Ratings revised its financial policy and management and
governance modifiers to reflect our updated view of the company's
ownership."
V2X Inc.'s financial sponsor, American Industrial Partners (AIP),
has sold down a substantial portion of its ownership over 2024 and
2025.
V2X's outlook remains stable as award activity remains robust. Its
book-to-bill was 1.2x in the third quarter. The T-6 Contractor
Operated and Maintained Supply (COMBS) services award, valued at up
to $4.3 billion, was protested, and the timing for resolution is
uncertain amid the ongoing government shutdown. As a result, V2X
could end the year with a book-to-bill below 1x.
S&P said, "If the T-6 COMBS award protest is dismissed or denied in
2026, we believe V2X's book-to-bill in 2026 would be above 1x.
Other notable awards include platform support on Iraq's F-16
program and F-16 cockpit modernization for the U.S. Air Force. The
total backlog as of the end of the third quarter was $11.6 billion
(which is up sequentially but down from $12.3 billion as of the end
of 2024). As a result of the steady award activity and program
execution, we expect S&P Global Ratings-adjusted debt to EBITDA of
4.0x in 2025 and 3.9x in 2026, along with funds from operations
(FFO) to debt of 17.2% in 2025 and 18.1% in 2026."
Growth over the next few years will likely be supported by
alignment with national defense priorities and execution on
contracts. S&P said, "Despite uneven award activity, we believe V2X
remains largely aligned with national defense priorities among its
domestic and international customers. This largely includes
modernization and force readiness solutions. In our view, V2X is
well positioned as an operations and maintenance solution provider
across aircraft systems and similarly well positioned as a supply
chain logistics manager."
S&P said, "We forecast revenue growth of 2%-4% in 2025 and 2026 as
Warfighter-Training Readiness Solutions (WTRS) and F-16-related
contracts ramp up. This is partially offset by the sunsetting of
the KC-10 support program and roll-off of contingency work in the
Middle East. We forecast S&P Global Ratings-adjusted EBITDA margin
will remain at 7%-8%. There is upside if the company can convert
more contracts to fixed price or if its contract mix sustainably
shifts more toward higher-margin training and simulation work."
V2X is positioned to build liquidity over the next few years. It
generated positive reported free operating cash flow (FOCF) of
nearly $35 million in the third quarter, bringing its year-to-date
FOCF to negative $37 million through the first nine months of the
year. This was largely due to the timing of working capital spend,
which is typically negative in the first half of the year because
investments for program expansion are made before collections
accelerate in the second half of the year. S&P expects full-year
reported FOCF of $120 million-$140 million in 2025 and $150
million-$170 million in 2026.
S&P said, "We revised our financial policy assessment to neutral
from FS-5, reflecting AIP's reduced ownership. The financial
sponsor has gradually sold down its position and, as of the end of
the third quarter, reportedly owns 25.7% of V2X's common equity.
AIP continues to have representation on the board of governors,
occupying two of nine seats. Should AIP divest below 25%, the
remaining members could be forced to vacate the seats.
"We do not expect V2X will undertake aggressive actions to
releverage the business as a result of its ownership. Accordingly,
we also revised our management and governance score to neutral from
modestly negative, reflecting our updated view of ownership, which
we expect to be less aggressive than financial
sponsor-owned/controlled companies. We continue to monitor V2X's
financial policy strategy, which includes growth through
acquisitions (of complementary offerings), share repurchases
(authorizing a $100 million share repurchase program), internal
investments to expand capabilities, and debt repayment. V2X's
long-term net leverage target is 2x-3x (2.75x-3.75x on an S&P
Global Ratings-adjusted basis net of cash on the balance sheet,
which we do not incorporate in our base-case adjusted debt
calculations).
"The stable rating outlook on V2X reflects our expectation that its
credit metrics will remain in line with the rating as the company
expands its contract base. We forecast S&P Global Ratings debt to
EBITDA of 4x and FFO-to-debt of 17.2% in 2025.
"We could lower our rating on V2X within the next 12 months if its
leverage deteriorates such that its debt to EBITDA reaches above 5x
and we expect it to remain there. This would likely occur if the
company raises debt to fund acquisitions or shareholder returns or
award activity is delayed as mature programs wind down, resulting
in revenue and margin declines.
"We could raise our rating on V2X if its debt to EBITDA improves
below 4x and its FFO to debt improves comfortably above 20% area,
and we expect it to sustain these metrics. This would likely occur
if the company uses cash toward debt repayment, or if it is able to
improve its mix of contracts which leads to sustained S&P Global
Ratings adjusted EBITDA margin above 8%."
VARSANYI FEDDY: Seeks Chapter 7 Bankruptcy in Nevada
----------------------------------------------------
Varsanyi Feddy Property Holdings LLC filed for Chapter 7 bankruptcy
in the District of Nevada on November 7, 2025. The company listed
assets between $0 and $100,000 and liabilities ranging from $1
million to $10 million, with 50 to 99 creditors involved.
About Varsanyi Feddy Property Holdings LLC
Varsanyi Feddy Property Holdings LLC is a limited liability
company.
Varsanyi Feddy Property Holdings LLC sought relief under Chapter 7
of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-16767) on
November 7, 2025. In its petition, the Debtor reports estimated
assets up to $100,000 and estimated liabilities between $1 million
and $10 million.
Honorable Bankruptcy Judge August B. Landis handles the case.
The Debtor is represented by Zachariah Larson, Esq. of LARSON AND
ZIRZOW, LLC.
VEGAS CUSTOM FOOD: Seeks Chapter 7 Bankruptcy in Nevada
-------------------------------------------------------
Vegas Custom Food Trucks filed for Chapter 7 bankruptcy in the
District of Nevada on November 6, 2025. The filing lists
liabilities ranging from $100,001 to $1 million, with 1 to 49
creditors.
About Vegas Custom Food Trucks
Vegas Custom Food Trucks provides end-to-end design, build, and
repair services for mobile kitchens, food trucks, and concession
trailers, delivering customized fabrication with professional
kitchen equipment, stainless-steel workstations, plumbing, and
heavy-duty vehicle exteriors for lasting durability.
Vegas Custom Food Trucks sought relief under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 25-16720) on November 6,
2025. In its petition, the Debtor reports estimated assets up to
$100,000 and estimated liabilities between $100,001 and $1 million.
Honorable Bankruptcy Judge Natalie M. Cox handles the case.
The Debtor is represented by Robert E. Atkinson, Esq. of ATKINSON
LAW ASSOCIATES LTD.
VOXTUR ANALYTICS: Seeks CCAA Protection to Restructure
------------------------------------------------------
Voxtur Analytics Corp., a North American technology company
creating a more transparent and accessible real estate lending
ecosystem, announced on Nov. 10, 2025, that the Company and certain
subsidiaries and affiliates, iLOOKABOUT (US) Inc., iLOOKABOUT Inc.,
MTAG Paralegal Professional Corporation, Voxtur Settlement
Services, LLC, Appraisers Now Ltd., Voxtur Analytics US Corp.,
Appraisers Now US, LLC, Blue Water Financial Technologies Holding
Company, LLC, Blue Water Financial Technologies, LLC, Blue Water
Financial Technologies Services, LLC, Municipal Tax Equity
Consultants Inc., MTE Paralegal Professional Corporation,
Commonwealth USA Settlements, LLC, Voxtur Settlement Services of
Alabama, LLC, Voxtur Settlement Services of Arkansas, LLC, Voxtur
Title Agency, LLC, Legend Title Company, LLC, Voxtur Technologies
US Inc., Orange & Blue Holdings 3.0, LLC, Orange & Blue Holdings
4.0, LLC, Orange & Blue Holdings 5.0, LLC, Valuation Vision, Inc.,
Voxtur Valuation, LLC, and Clarocity, Inc. (collectively with the
Company, the "Voxtur Group"), sought and obtained an order from the
Ontario Superior Court of Justice (Commercial List) under the
Companies' Creditors Arrangement Act.
The Company intends to file cases under Chapter 15 of Title 11 of
the United States Code seeking recognition of the CCAA proceeding
within the territorial jurisdiction of the United States to
restructure its financial affairs.
The Initial Order includes, among other things:
(i) a stay of proceedings in favour of the Voxtur Group;
(ii) approval of the DIP Loan; and
(iii) the appointment of PricewaterhouseCoopers Inc. as monitor of
the Voxtur Group.
As previously disclosed, the Company initiated a process in January
2025 to identify, examine and consider strategic and financial
options available to the Company. Following such process and after
careful consideration of all available alternatives, and
consultation with legal and financial advisors, the directors of
the Company determined that it was is in the best interests of the
Company to file an application for creditor protection under the
CCAA.
The CCAA filing represents a proactive step designed to provide the
Company with the flexibility and protection needed to complete a
restructuring plan and emerge as a stronger, better-capitalized
partner to its customers and stakeholders. The stay of proceedings
will allow the Voxtur Group to work with the Monitor to facilitate
an orderly process to streamline operations and conduct a
Court-supervised sales process aimed at achieving a going concern
solution and maximizing value for all stakeholders.
The board of directors of the Company will remain in place, and
management will remain responsible for the day-to-day operations of
the Company, under the general oversight of the Monitor. Voxtur's
clients should expect no changes to day-to-day operations, service
levels, or data integrity. All platforms, integrations and support
teams remain fully active and committed to delivering uninterrupted
value. Data security and platform performance will be unaffected by
the proceedings.
In order to fund the CCAA proceedings and other short-term working
capital requirements, and to ensure that there is no interruption
to operations, the Voxtur Group has executed an interim financing
term sheet with HCP-FVY, LLC and HCP Fund V-FVY, LLC, affiliates of
Hale Capital Partners (together, "Hale Capital"), as lender,
pursuant to which Hale Capital has agreed to establish an interim
financing loan facility in the amount of USD$2,350,000, subject to
certain conditions (the "DIP Loan").
"We remain deeply committed to our customers and partners," said
Ryan Marshall, CEO. "This process allows us to focus on what we do
best - delivering clarity, speed, and confidence across the
real-estate lifecycle - while positioning Voxtur for long-term
success."
It is anticipated that the Toronto Venture Stock Exchange will
place the Company under delisting review and there can be no
assurance as to the outcome of such review or the continued
qualification for listing on the TSXV.
Trading in the Company's Common Shares on the TSXV has been subject
to a cease trade order and halted since September 5, 2025, as a
result of the Company failing to file its interim financial
statements for the period ended June 30, 2025. The Company expects
that trading of the Common Shares will remain halted indefinitely.
For further information regarding the CCAA proceedings you can
refer to the Monitor's website at http://www.pwc.com/ca/voxtur.
About Hale Capital
Hale Capital partners with talented entrepreneurs to achieve
remarkable corporate transformations in technology and defense
markets. We serve as stewards for the ideas of extraordinary
leaders as they seek to accelerate growth in special situations,
spinouts, divestitures, and corporate reinventions. Hale's roadmap
to success centers on a program of transformation - financial,
cultural, and operational - developed from extensive academic work
and over two decades of investment expertise. This critical
intellectual property helps our companies evolve, grow, and compete
in an ever-shifting marketplace. To learn more, visit
www.halecapital.com.
About Voxtur
Voxtur is a transformational real estate technology company that is
redefining industry standards in a dynamic lending environment. The
Company offers targeted data analytics to simplify tax solutions,
property valuation and settlement services throughout the lending
lifecycle for investors, lenders, government agencies and
servicers. Voxtur's proprietary data hub and workflow platforms
more accurately and efficiently value assets, originate and service
loans, securitize portfolios and evaluate tax assessments. The
Company serves the property lending and property tax sectors, both
public and private, in the United States and Canada. For more
information, visit www.voxtur.com.
WALKER EDISON: Secures Court OK to Seek Liquidation Plan Votes
--------------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that a
Delaware bankruptcy judge on Wednesday, November 12, 2025, allowed
online furniture seller Walker Edison to seek creditor and equity
holder votes on its post‑sale Chapter 11 liquidation plan,
despite an objection to the plan's release provisions. The court
determined that the contested issue is better addressed at the
upcoming confirmation hearing rather than precluding the
solicitation process.
The judge's ruling grants Walker Edison the green light to
distribute plan solicitation materials and gather ballots, moving
the case one step closer to final resolution. The objection, which
targets certain release clauses within the plan, will be considered
during the hearing, ensuring essential legal issues are fully
examined, according to Law360.
For Walker Edison, the decision accelerates its path through
bankruptcy. Having completed a sale of its assets, the retailer now
focuses on finalizing its plan, securing votes, and ultimately
obtaining confirmation to distribute proceeds and exit
Chapter 11, the report states.
About Walker Edison Holdco
Walker Edison, a Delaware corporation headquartered in West Jordan,
Utah, designs and distributes affordable, ready-to-assemble home
furnishings, operating primarily through e-commerce channels rather
than traditional retail stores. Its business is managed by Walker
Edison Intermediate, LLC and Walker Edison Holdco, LLC, and it owns
EW Furniture, LLC, a Utah-based subsidiary. The company sources
most products from suppliers in Asia and Brazil, distributing them
through its Ohio and California centers or directly via major
e-commerce platforms including Wayfair, Amazon, Walmart, Target,
and Home Depot, with gross sales of roughly $124.6 million in
2024.
Walker Edison Holdco, LLC and three affiliates filed Chapter 11
petitions (Bankr. D. Del. Lead Case No. 25-11602) on August 28,
2025. At the time of the filing, Walker Edison Holdco listed up to
$50,000 in assets and between $100 million and $500 million in
liabilities.
Judge Thomas M. Horan oversees the cases.
The Debtors tapped Morris, Nichols, Arsht & Tunnell, LLP as legal
counsel; Lincoln International, LLC as investment banker; MACCO
Restructuring Group, LLC as transformation advisor. Epiq Corporate
Restructuring, LLC is the Debtors' notice, claims and
administrative agent.
WEINBERG CAPITAL: Gregory Jones Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 16 appointed Gregory Jones, Esq., at
Stradling Yocca Carlson & Rauth, PC as Subchapter V trustee for
Weinberg Capital Investments LLC.
Mr. Jones will be paid an hourly fee of $600 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Jones declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Gregory K. Jones, Esq.
Stradling Yocca Carlson & Rauth, PC
10100 N. Santa Monica Boulevard, Suite 1400
Los Angeles, CA 90067
Telephone: (424) 214-7000
Facsimile: (424) 214-7010
Email: gjones@stradlinglaw.com
About Weinberg Capital Investments LLC
Weinberg Capital Investments LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-12068)
on November 05, 2025, with $1,000,001 to $10 million in assets and
liabilities.
Judge Victoria S. Kaufman presides over the case.
Giovanni Orantes, Esq. at Orantes Law Firm PC represents the Debtor
as legal counsel.
WESTSIDE TOW: Court Extends Cash Collateral Access to Nov. 19
-------------------------------------------------------------
Westside Tow and Trucking Transport, Inc. received another
extension from the U.S. Bankruptcy Court for the Central District
of California to use cash collateral to fund operations.
The court issued a second interim order authorizing the Debtor to
use cash collateral through November 19 based on the expenses set
forth in its budget, excluding duplicate payments to the U.S. Small
Business Administration. Payments to insiders are prohibited while
payroll expenses are restricted to post-petition wages and taxes
for non-insider employees.
As adequate protection, the SBA will receive a monthly payment of
$9,834 via its online portal pursuant to the terms of its prior
stipulation with the Debtor.
In addition, the SBA and other secured creditors will be granted
replacement liens on accounts receivable and other personal
property acquired by the Debtor after the bankruptcy filing. These
replacement liens will have the same priority and validity as the
secured creditors' pre-bankruptcy liens.
The next hearing is scheduled for November 19.
About Westside Tow & Trucking Inc.
Westside Tow & Trucking Inc. is a Los Angeles area towing and
trucking company.
Westside Tow & Trucking Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11352) on
October 8, 2025. In its petition, the Debtor reports estimated
estimated assets and liabilities between $1 million and $10 million
each.
Honorable Bankruptcy Judge Ronald A. Clifford III handles the
case.
The Debtor is represented by Tamar Terzian, Esq., of Terzian Law
Group, APC.
WESTSIDE TOW: Court OKs Deal to Use SBA's Cash Collateral
---------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Northern Division, approved a stipulation between Westside Tow &
Transport, Inc. and the U.S. Small Business Administration
concerning the use of cash collateral and adequate protection of
SBA's secured interests.
The court authorized the Debtor's continued use of SBA's cash
collateral through December 15 for post-petition business expenses
on the terms set forth in their stipulation. The Debtor is
prohibited from using cash collateral for insider payments unless
authorized under the Bankruptcy Code and local rules.
As part of the agreement, the SBA will be granted a replacement
lien on all post-petition revenues of the Debtor to the same extent
and priority as its pre-bankruptcy lien. This lien serves as
adequate protection for any reduction in the value of SBA's
collateral resulting from the Debtor's use of cash collateral. The
lien is automatically perfected without the need for additional
filings and does not extend to avoidance actions under the
Bankruptcy Code.
Additionally, the SBA will be granted a super-priority
administrative claim under Sections 503(b) and 507(b) of the
Bankruptcy Code, limited to any post-petition diminution in
collateral value.
The court also directed the Debtor to make monthly payments of
$9,834 to SBA via the latter's online loan portal. Moreover, the
Debtor must maintain insurance on SBA's collateral, naming SBA as a
loss payee, and must continue to file timely monthly operating and
financial reports with the U.S. Trustee.
The stipulation further clarifies that no rights or remedies of SBA
are waived by this agreement. SBA retains the right to seek
modification or additional adequate protection if necessary.
Similarly, the Debtor and other interested parties preserve their
rights to challenge such modifications. The agreement does not
constitute a waiver or reinstatement of the SBA loan, nor does it
alter the existing terms or cure defaults under that loan.
The stipulation will remain in effect until December 15 or until
the stipulation is modified; a Chapter 11 plan is confirmed; the
Debtor's Chapter 11 case is converted or dismissed.
About Westside Tow & Trucking Inc.
Westside Tow & Trucking Inc. is a Los Angeles area towing and
trucking company.
Westside Tow & Trucking sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-11352) on October
8, 2025. In its petition, the Debtor reported between $1 million
and $10 million in assets and liabilities.
Honorable Bankruptcy Judge Ronald A. Clifford III handles the
case.
The Debtor is represented by Tamar Terzian, Esq., of Terzian Law
Group, APC.
WHITE BEHAVIORAL: Unsecureds Will Get 16.22% over 5 Years
---------------------------------------------------------
White Behavioral Consultants, PC filed with the U.S. Bankruptcy
Court for the Eastern District of Michigan a Small Business Plan of
Reorganization under Subchapter V dated November 4, 2025.
The Debtor is a Michigan professional corporation providing
therapeutic, counseling, and mental health services to families,
couples, and individuals of all ages, primarily in southeast
Michigan.
The Debtor is a Michigan professional corporation, formed in 2003.
Dr. Michele T. White is the Debtor's sole owner. Over the past
several years, the Debtor suffered an unforeseen decline in
revenues, particularly during the COVID-19 pandemic. To meet its
obligations, the Debtor incurred loans from the US Small Business
Association and "Merchant Cash Advance" lenders.
At the same time, the Debtor took steps to reduce its overhead and
costs, so as to maintain profitability. However, though the Debtor
strove to meet its new obligations, it has been unable to do so,
necessitating this Chapter 11, Subchapter V reorganization.
Class 5 consists of General Unsecured Claims. The Debtor shall
commit its projected disposable income to be paid on a pro-rata
basis to Class 5 General Unsecured Claim holders in 20 quarterly
payments over 5 years, with the first such payment coming due 90
days following the Effective Date. Such payments will be made by
the Debtor directly. Debtor anticipates a dividend to unsecured
creditors of approximately 16.22%.
Dr. Michele T. White is the sole Equity Interest holder of the
Debtor, and her continued personal and professional services
provided to the Debtor are essential to its successful operation,
both during this case and following confirmation. Notwithstanding
anything else in this Plan, Dr. White shall retain her Equity
Interest in the reorganized Debtor in the same manner, nature, and
extent as prior to the Petition Date.
The Debtor has taken steps to address its financial difficulties.
At the expiration of its previous commercial lease, the Debtor
moved into a smaller, more economical, shared location. The Debtor
reduced its workforce and labor costs, and removed unprofitable
offerings from its services. Debtor will fund its payment
obligations under this Plan from its business revenues.
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 and all other payments
required under the terms of this Plan.
A full-text copy of the Subchapter V Plan dated November 4, 2025 is
available at https://urlcurt.com/u?l=I4441j from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Anthony J. Miller, Esq.
Yuliy Osipov, Esq.
OSIPOV BIGELMAN, P.C.
20700 Civic Center Dr., Ste. 420
Southfield, MI 48076
Telephone: (248) 663-1800
Facsimile: (248) 663-1801
E-mail: yo@osbig.com
am@osbig.com
About White Behavioral Consultants PC
White Behavioral Consultants PC, dba WBC Counseling, is a
behavioral health provider offering mental health counseling and
consultation services in southeastern Michigan. It specializes in
providing professional behavioral health services through its
locations in Ypsilanti and Ann Arbor, serving patients in Washtenaw
County.
White Behavioral Consultants PC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No.
25-47920) on August 6, 2025. In its petition, the Debtor reports
estimated assets up to $50,000 and estimated liabilities between
$500,000 and $1 million.
Honorable Bankruptcy Judge Thomas J. Tucker handles the case.
The Debtor is represented by Yuliy Osipov, Esq. at Osipov Bigelman,
P.C.
WHITEHALL PHARMACY: Court Extends Cash Collateral Access to Dec. 31
-------------------------------------------------------------------
Whitehall Pharmacy, LLC received another extension from the U.S.
Bankruptcy Court for the Eastern District of Arkansas to use its
secured lenders' cash collateral to fund operations.
The court issued a second amended agreed order authorizing the
Debtor to use the cash collateral of Cardinal Health and Stone Bank
through December 31. Cash collateral use must be in accordance with
the Debtor's monthly budget.
As protection for the use of their cash collateral, lenders will be
granted replacement liens on personal property acquired by the
Debtor after its Chapter filing that is similar to their
pre-bankruptcy collateral. These replacement liens do not apply to
Chapter 5 causes of action.
Additionally, the Debtor must continue daily payments to Cardinal
Health and monthly payments of $16,814.61 to Stone Bank on two
loans. The Debtor must also maintain insurance coverage and provide
lenders with access to financial information and business records.
The second amended agreed order is available at
https://is.gd/1zBSyu from PacerMonitor.com.
The Debtor operates multiple locations including in Pine Bluff,
Pulaski, Lincoln, and Jefferson counties, serving approximately
80,000 to 90,000 patients who rely on its prescription services.
Its Chapter 11 filing was prompted by a disputed $1.4 million
claim brought by Jefferson Regional Medical Center, which the
Debtor contests.
Secured creditors include Cardinal Health, which holds a lien on
inventory and accounts receivable ($1.1 to $1.4 million balance);
Stone Bank, with a blanket lien on most assets ($1.2 million);
Gateway Bank, secured by furniture, fixtures, and equipment; and
River Bank, with a mortgage on real property owned by a non-debtor
($150,000).
The Debtor's cash collateral comprises cash on hand, approximately
$1.2 million in receivables, and about $750,000 in inventory.
Stone Bank is represented by:
Ryan J. Caststeel, Esq.
Hopkins Caststeel, PLC
Attorneys at Law
1000 West Second
Little Rock, Arkansas 72201
Telephone: (501) 375-1517
Facsimile: (501) 375-0231
rcaststeel@hopkinslawfirm.com
About Whitehall Pharmacy LLC
Whitehall Pharmacy, LLC operates pharmacies in multiple locations
in Arkansas.
Whitehall Pharmacy sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Ark. Case No. 25-12406) on July 21,
2025, listing between $1 million and $10 million in assets and
liabilities. Floyd Lelan Stice, company owner, signed the
petition.
Judge Phyllis M. Jones oversees the case.
The Debtor tapped Charles Darwin Davidson, Sr., Esq., at Davidson
Law Firm, as bankruptcy counsel and Sykes & Company, P.A. as
accountant.
WINTER GARDEN: S&P Withdraws 'CC' LT Rating on 1994 Revenue Bonds
-----------------------------------------------------------------
S&P Global Ratings withdrew its 'CC' long-term rating on Winter
Garden Housing Finance Corp., Texas' series 1994 single-family
mortgage revenue bonds.
S&P said, "The rating withdrawal, which follows our placement of
the rating on CreditWatch with negative implications on Aug. 13,
2025, due to our expectation of an impending default, reflects a
lack of sufficient and timely information to maintain the rating.
"We understand that a $20,000 sinking fund payment was made on time
and in full on Oct. 1, 2025, as scheduled, and a default did not
occur. However, we have been unable to obtain updated information
from the trustee regarding how the payment was completed, given the
low level of assets reported to us as of April 2, 2025. This
information is required to maintain our rating on the bonds.
"As a result, in accordance with our methodologies and policies, we
withdrew the rating."
YELLOW CORP: Judge to Issue Chapter 11 Plan Ruling Amid MFN Fight
-----------------------------------------------------------------
Alex Wittenberg of Law360 reports that on Wednesday, November 12,
2025, a Delaware bankruptcy judge announced that he will issue a
ruling next week on Yellow Corp.'s proposed Chapter 11 plan. The
judge said he needed time to weigh objections from a significant
shareholder, who contends the plan does not provide certain
creditors with recoveries equivalent to what they would receive in
a Chapter 7 liquidation.
The shareholder's challenge centers on the financial projections
supporting the plan, arguing that the company undervalued its
remaining assets and structured distributions in a way that
disadvantages specific creditor groups. Yellow disputed those
claims, insisting that its proposal satisfies all statutory
requirements, according to report.
The judge's upcoming decision will play a decisive role in
determining how the rest of the case unfolds. A confirmation would
clear the path for Yellow to finalize its liquidation and creditor
payouts, while a denial could force the parties back into
negotiations, the report cites.
About Yellow Corporation
Yellow Corporation -- http://www.myyellow.com/-- operates
logistics and less-than-truckload (LTL) networks in North America,
providing customers with regional, national, and
internationalshipping services throughout. Yellow's principal
office is in Nashville, Tenn., and is the holding company for a
portfolio of LTL brands including Holland, New Penn, Reddaway, and
YRC Freight, as well as the logistics company Yellow Logistics.
Yellow Corporation and 23 affiliates concurrently filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 23-11069) on August 6, 2023, before
the Hon. Craig T. Goldblatt. As of March 31, 2023, Yellow
Corporation had $2,152,200,000 in total assets against
$2,588,800,000 in total liabilities. The petitions were signed by
Matthew A. Doheny as chief restructuring officer.
The Debtors tapped Kirkland & Ellis, LLP as restructuring counsel;
Pachulski Stang Ziehl & Jones, LLP as Delaware local counsel;
Kasowitz, Benson and Torres, LLP as special litigation counsel;
Goodmans, LLP as special Canadian counsel; Ducera Partners, LLC, as
investment banker; and Alvarez and Marsal as financial advisor.
Epiq Bankruptcy Solutions is the claims and noticing agent.
Milbank LLP serves as counsel to certain investment funds and
accounts managed by affiliates of Apollo Capital Management, L.P.
while White & Case, LLP and Arnold & Porter Kaye Scholer, LLP serve
as counsels to Beal Bank USA and the U.S. Department of the
Treasury, respectively.
On Aug. 16, 2023, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors in the Chapter 11 cases.
The committee tapped Akin Gump Strauss Hauer & Feld, LLP and
Benesch, Friedlander, Coplan & Aronoff, LLP as counsels; Miller
Buckfire as investment banker; and Huron Consulting Services, LLC,
as financial advisor.
[] BOOK REVIEW: Dynamics of Institutional Change
------------------------------------------------
Dynamics of Institutional Change: The Hospital in Transition
Authors: Milton Greenblatt, Myron Sharaf, and Evelyn M. Stone
Publisher: Beard Books
Softcover: 288 pages
List Price: $34.95
Review by Henry Berry
Order your personal copy today at
http://beardbooks.com/beardbooks/dynamics_of_institutional_change.html
Like many other private-sector and public institutions in modern
society, hospitals are regularly undergoing change. The three
authors of this volume have been leaders in change at Boston State
Hospital, a large public mental hospital, that serves as the test
case for the experienced advice and hard-earned lessons found in
this work.
With their academic and professional backgrounds, the three authors
combined offer an incomparable fund of knowledge and experience for
the reader. In keeping with their positions, they focus on the
position and the role of the leaders of institutional change. They
do not recommend any particular choices, direction, or outcome.
They do not presume to know what is the best for all institutions,
or to understand the culture, realities, goals, or values of all
institutions. They do not even presume to know what is best or
desirable for hospitals, the institution with which they are most
familiar. Instead, the authors direct their attention to "the
problems hampering change and the gains and losses of one or
another strategy of change." In relation to this, they are "more
concerned with the study of process than with outcome." By not
recommending specific policies or arguing for specific values or
goals, the authors make their book relevant to all institutions
involved in change, but particularly public-health institutions.
All of the subjects are dealt with from the perspective of top
executives and administrators. Among the subjects taken up are not
only the staff and structure of the institution, specifically the
medical institution, but also consultants, volunteers, local
communities, and state and federal government agencies. The detail
given to each subject goes beyond the administrator's relationship
to it to discussion concerning the relationship of lower-level
employees with the subject. This relationship of lower-level
employees has everything to do with how change occurs within the
institution, and often whether it occurs. The authors go into such
detail because they understand that the performance and goals of
top administrators are affected by everything that goes on within
heir institution, and often by much that goes on outside of it.
For example, the authors begin the subject of volunteers by
defining three types of volunteers: volunteers from organizations,
student or independent volunteers, and government-appointed or
statutory volunteers. Volunteers of whatever type can cause
anxiety, resistance, and even resentment among regular staff of an
institution. Volunteers are not simply "free help," but require
administration, training, and oversight -- which can distract
regular employees from work they consider more important and
interesting, and use up departments' resources. The transitional
nature of volunteers, their ignorance of institutional and
occupational concerns of the regular staff, and their lack of
professionalism can cause disruptions and personnel problems in
parts of an institution. The authors advise the top administrators,
"The intrusive evangelism of student volunteers can be threatening
not only to professional supervisors, but to the entire hospital
staff as well, from the attendant to the top administrator." While
recognizing the problems which may be caused by volunteers,
especially younger ones, the authors point out the worth of
volunteers to the hospital despite the potential problems they
bring. Overall, the different types of volunteers "improve the
physical and social environment" of the workplace, "make direct and
beneficial contacts with chronic patients," and often "establish
true innovations." After discussing the pros and cons of volunteers
and providing detailed guidance on how to manage volunteers so as
to minimize potential problems, the authors advise the
administrator and his or her staff how to regard volunteers. "Both
staff and administrator must constantly keep in mind that
volunteers are not personally helping them [word in italics in
original], but are helping the patients or the community." Along
with the technical management and administrative guidance, such
counsel is clearly relevant and important in keeping perspective on
the matter of volunteers.
The treatment of volunteers in a medical institution exemplifies
the comprehensive, empathetic, and experienced treatment of all the
subjects. Personnel -- whether professional, clerical, service, or
volunteer -- is obviously a major concern of any institution and
change in it. The structure of an institution is another crucial
concern. This is addressed under the heading "decentralization
through unitization." In the context of a large public medical
facility, decentralization "involves breaking up the institution
into semiautonomous units . . . ; each of which is like a small
community health center in that it is responsible for serving a
specific part of the community." As with the subject of volunteers,
the authors treat this subject of the structure of the institution
by examining its various sides, discussing related personnel and
administrative matters, relating instructive anecdotes from their
own experience, and in the end, offering relevant and practical
advice and actions whose sense is apparent to the reader by this
point.
Recognizing that the authors have faced many of the same
situations, decisions, pressures, challenges, and aims as they
have, top hospital and public-health administrators will no doubt
adopt many of the authors' recommendations for managing the process
of change. The content of the book as well as its style (which is
obviously meant to be helpful, sympathetic, and realistic) offers
the reader not only resolutions, but also encouragement. The top
hospital administrators and their staff, who are the main audience
for "Dynamics of Institutional Change," will not find a better
study and handbook to help them through the changes their
institutions are being called upon to undergo to deal with the
health concerns and problems of today's society.
Milton Greenblatt, M.D. was Commissioner of the Massachusetts
Department of Mental Health, Professor of Psychiatry at Tufts
University School of Medicine, and Lecturer in Psychiatry at
Harvard Medical School and Boston University School of Medicine.
Myron R. Sharaf, Ph. D. was Associate Area Director of Boston State
Hospital and Assistant Professor of Psychology at Tufts University
School of Medicine.
Evelyn M. Stone served as Executive Editor for the Massachusetts
Department of Mental Health.
*********
Monday's edition of the TCR delivers a list of indicative prices
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obtained by TCR editors from a variety of outside sources during
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are not intended to reflect actual trades. Prices for actual
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