Bondoro Insights: Weekly Docket Update

This Week's Key Filings

CashCall, Inc.

• Case Summary
  • CashCall has filed for Chapter 11 bankruptcy following two adverse court judgments totaling approximately $402 million—approximately $245 million in the De la Torre ("San Mateo") unconscionable-interest class action and approximately $157 million in the CFPB tribal-lending enforcement action—plus roughly $45 million in additional pending litigation and about $5 million in trade debt and professional fees. Its subprime consumer lending business is now dormant, with loan originations stopped and its remaining employees terminated on June 30, 2026.

Alea Holdings US Company

• Case Summary
  • Alea Holdings has filed for Chapter 11 following legacy insurance liabilities reverting to its non-Debtor subsidiary SPARTA after another insurer's liquidation, and the resulting claim payments and litigation, pursuing a Restructuring Support Agreement-backed plan to discharge its trust preferred securities claims through a $20 million cash pool — expected to be funded largely by the pending sales of its equity in ANAIC and NAICC — while continuing SPARTA's run-off, with a $35 million DIP facility from its Catalina-affiliated prepetition lender available as a liquidity backstop.
• Plan Terms
  • Alea Holdings' prearranged Chapter 11 plan of reorganization centers on a Catalina Finance–sponsored recapitalization backed by a $35 million postpetition facility and a June 2026 restructuring support agreement. Under the plan, $160 million in prepetition revolving facility claims are satisfied, in full, through one or a combination of a cash-pool distribution, a replacement note, conversion or contribution into equity of Reorganized AHUSCO, and/or reinstatement, while $120 million in trust preferred securities (TruPS) claims are satisfied through a $20 million cash pool. Distributions are funded by the Debtors' cash on hand, cash drawn from the prepetition facility, and the proceeds of Section 363 private sales of AHUSCO's equity interests in Alea North America Insurance Company and National American Insurance Company of California.
• APA Summary
  • Alea Holdings filed a motion seeking approval of the private sale, free and clear of liens, claims, interests, and encumbrances under Section 363(f), of its 100% equity interests in non-debtor run-off insurance subsidiaries Alea North America Insurance Company and National American Insurance Company of California to two separate undisclosed third-party buyers — a U.S.-based specialty insurance and reinsurance holding company and a U.K.-based international insurance and reinsurance group — for cash consideration pursuant to two stock purchase agreements, with secured party Catalina Finance having consented and its liens to attach to the proceeds ahead of an Aug. 17 sale hearing.
• DIP Terms
  • Alea Holdings obtained interim authority to use cash collateral, with a $35 million new-money senior secured superpriority DIP facility provided by Catalina Finance — also the debtors' prepetition agent and sole lender — available on entry of a final order. The facility lifts total commitments under the existing Secured Facility Agreement to $195 million against roughly $160 million of prepetition borrowings, carries payment-in-kind interest at a margin over a compounded reference rate, and will fund the transactions contemplated by the debtors' RSA and plan, including permitted asset sales.

Frazer School, Inc.

• Case Summary
  • Frazer School has filed for Chapter 11 bankruptcy following the alleged misappropriation of more than $5 million in parent-funded loans by co-founder James Schrader and affiliated Newberry Christian Community School — which used the funds to purchase and title the School's building in its own name before moving to evict the School — seeking to recover the diverted funds, restore ownership of the building, and restructure any valid lien obligations while continuing operations, backed by the support of its parent community and newly installed volunteer Educator Board.

Simply Interior Homes, LLC

• Plan Terms
  • Simply Interior Homes' combined disclosure statement and Chapter 11 plan of liquidation centers on winding down its recently carved-out soft goods business through an SB360-led liquidation of inventory and other assets, alongside a sale process for which the Debtors did not designate a stalking horse bidder. The plan provides for sale and liquidation proceeds, together with the Debtors' remaining assets, to be transferred to a Liquidating Trust for distribution under a priority waterfall that provides for payment in full of the DIP facility provided by GRC SPV Investments and Wingspire Capital before recoveries on prepetition secured claims, subordinated sponsor note claims, and general unsecured claims. Retained Causes of Action—including potential claims relating to the Keeco carve-out, Centre Lane Partners and its affiliates, Live Comfortably and the TSA, the sponsor notes, and the 11th Lane note—constitute the majority of the Liquidating Trust's assets.

Sleep Number Corporation

• Bidding Procedures / APA Summary
  • Sleep Number designated SNBR Inc., an affiliate of Sleep Country Canada, Inc., as the successful bidder for substantially all of its assets following an auction in its Chapter 11 case, selecting the stalking horse bidder's amended and restated APA at a $529.5 million base purchase price and naming Brooklyn Bedding LLC as the back-up bidder, ahead of a July 20, 2026 deadline for objections to the conduct of the auction and a subsequent hearing to approve the sale.
• DIP Terms
  • Sleep Number obtained final approval for a $260 million superpriority, senior secured, priming DIP term loan facility from U.S. Bank National Association, as DIP agent, comprising up to $65 million of new money delayed-draw term loans and up to $195 million of roll-up loans that convert prepetition secured obligations into DIP debt on a cashless 3:1 basis, bearing interest at the borrower's election at Term SOFR plus 8.00% or the alternate base rate plus 7.00%, maturing no later than September 15, 2026, and subject to a milestone requiring consummation of a sale of all or substantially all of the Credit Parties' assets by July 31, 2026.

Sangamo Therapeutics, Inc.

• Bidding Procedures Summary
  • Sangamo Therapeutics obtained approval of bidding procedures to sell all or substantially all of its assets, designating Merope Acquisition Sub (with Eli Lilly as guarantor) and Astellas Gene Therapies as stalking horse bidders — each subject to higher or better offers — for their respective asset packages, ahead of an Aug. 4 bid deadline, Aug. 10 auction, and Aug. 20 sale hearing.

Inotiv, Inc.

• DIP Terms
  • Inotiv obtained final approval for a $65.5 million superpriority, senior secured and priming DIP term loan facility administered by Acquiom Agency Services, comprising $25 million in new-money term loans (with an initial draw of up to $16 million available upon entry of the interim order and the balance available on satisfaction of further conditions) and a $40.5 million cashless, dollar-for-dollar roll-up of prepetition Bridge Facility delayed-draw term loans that is subordinated to both the carve-out and the new-money tranche.

Hallmark Financial Services, Inc.

• Bidding Procedures Summary
  • Hallmark Financial Services obtained approval of bidding procedures to sell the equity interests in its subsidiaries and other non-cash assets, in whole or in part, designating Hildene as the stalking horse bidder pursuant to a restructuring support agreement with the Initial Plan Value serving as the stalking horse bid, ahead of a July 30 bid deadline and a potential Aug. 4 auction (held only if more than one qualified bid is received) in advance of an Aug. 25 confirmation hearing on the plan.

F-Star Socorro, L.P.

• Bidding Procedures Summary
  • F-Star Socorro obtained approval of bidding procedures to sell certain real properties located in El Paso and Socorro, Texas, authorizing the designation of one or more stalking horse bidders by Aug. 3 and granting secured lender RC PV Lender I LLC the right to credit bid up to $90 million ahead of an Aug. 20 auction.

John Fitzgibbon Memorial Hospital, Inc.

• DIP Terms
  • John Fitzgibbon Memorial Hospital obtained final approval for a priming super-priority DIP facility from UMB Bank, N.A., as successor Master Trustee and Bond Trustee, comprising up to $4 million in new-money loans paired with a roll-up of prepetition bond obligations equal to approximately twice the new money advanced, carrying 8.25% PIK interest and a 2.0% exit fee and with an outside maturity of November 30, 2026, to fund the debtors' operations pending a Section 363 sale of substantially all assets to Strawberry Fields REIT.

White Rock Medical Center, LLC

• Plan Terms
  • White Rock Medical Center's plan of reorganization effects a going-concern recapitalization whereby Plan Sponsor White Rock Medical Holdings contributes $3.3 million and, upon cancellation of existing equity, becomes the sole member of the reorganized hospital, while the $7.44 million secured claim of SRC Hospital Investments is repaid through 5% of the reorganized debtor's gross revenues, general unsecured creditors share a $1 million Plan-funded distribution pool (whose per-creditor recoveries are enlarged for the remaining holders by the Waiving Supporting Creditors' waiver of their own Class 5 shares), and DIP holders elect cash or new equity.

TRM NRE Holding LLC

• APA Summary
  • TRM NRE Holding filed a motion under section 363 of the Bankruptcy Code to authorize the private sale of locomotives and related assets located at its Paducah, Kentucky facility to LHAGS for $2.1 million in cash, free and clear of liens, claims, and encumbrances, following an arm's-length marketing process in which at least four parties submitted bids, ahead of an Aug. 6 sale hearing.

About Bondoro Insights Summaries

Our goal with Bondoro Insights is to provide you with faster, broader coverage on active Chapter 11 cases. These summaries are generated by Bondoro's proprietary AI, tuned on our historical coverage and validated against source filings. While accuracy is a priority, they are intended for immediate informational purposes, may contain errors, and are not a substitute for professional or legal advice. Please refer to the source filings for definitive information.

This AI-powered coverage is designed to supplement our comprehensive, analyst-led case summaries.

Want to change how often you hear from us? Update your preferences in Account Settings.