Bondoro Insights: Weekly Docket Update

This Week's Key Filings

FRC Balance, LLC (True Food Kitchen)

• Case Summary
  • True Food Kitchen, a health-focused restaurant chain, has filed for Chapter 11 with approximately $42.1 million in funded debt, closing twelve of its forty-six restaurants as it filed and planning to monetize its assets, including through a Section 363 sale of the business, and complete an orderly wind-down that it says will be funded by a DIP financing facility. The company attributes its distress to management turnover, unsuccessful investment outside its core concept and markets, pandemic-related pressure on profitability, and underperforming locations.
• DIP Terms
  • True Food Kitchen filed a motion seeking approval of a $20 million new-money superpriority multiple-draw DIP facility. The lender, HumanCo TFK IV, is an affiliate of HumanCo TFK III, a prepetition convertible noteholder that, together with its affiliates, holds approximately 42.1% of the debtors' ultimate parent. The facility splits into a $5 million Tranche A available on entry of the interim order and a $15 million Tranche B released in six advances tied to sale-process milestones, and carries 10% PIK interest, 3% commitment and funding fees, and a graduated exit-fee true-up targeting a $1.9 million to $4 million return depending on the funded balance, with a March 31, 2027 outside maturity.

Highlands Community Charter and Technical Schools

• Case Summary
  • Highlands Community Charter and Technical Schools, which operates two adult-serving charter schools in Sacramento County, has filed for Chapter 11 to address a disputed claim of approximately $186.5 million arising from a California State Auditor finding that it received funds for which it was ineligible, as well as Twin Rivers Unified School District's attempt to revoke its charters. The Sacramento County Board of Education overturned the revocation, and Twin Rivers has appealed that decision to the State Board of Education. The debtor is pursuing a dual-track strategy to either reorganize and transfer its schools and students to a new school under a new charter in Sutter County or sell the schools as a going concern.

American Hospitality Properties REIT, Inc.

• Case Summary
  • American Hospitality Properties REIT has filed for Chapter 11 following what it describes as years of mismanagement by its co-founders, which led to an SEC enforcement action and franchise fee defaults at its Marriott-branded hotels. It also faces ground lease and shareholder litigation. The company is seeking to stabilize governance and pursue a comprehensive restructuring, starting with a two-week effort to obtain DIP financing or identify usable cash collateral, without which the cases may convert to Chapter 7.

Veria Lifestyle Inc.

• Case Summary
  • Veria Lifestyle has filed for Chapter 11 to reorganize while continuing to operate its YO1 Longevity & Health Resorts property in the Catskills. It cites a roughly 18-month pandemic closure, lenders' failure to fully fund their loan commitments, years of failed refinancing efforts and a $73.05 million foreclosure judgment, and is seeking up to $1.75 million in DIP financing from its indirect parent.
• DIP Terms
  • Veria Lifestyle seeks approval of a $1.75 million DIP facility from insider Natural Wellness UK Limited, the parent of its 100% equity owner, with $700,000 sought on an interim basis. The loan carries 12% interest with no fees or roll-up and is secured by first liens on unencumbered assets and liens junior to existing prepetition liens and related replacement liens elsewhere. The facility matures one year after entry of a final order or, among other triggers, on the effective date of a confirmed plan.

Leslie's, Inc.

• Case Summary
  • Leslie’s filed for Chapter 11 amid a contraction in the U.S. pool and spa care industry, inflationary input costs, unfavorable weather in key markets, and aggressive competition from big-box and online retailers, with EBITDA declining from approximately $270 million in the third quarter of 2021 to $40 million in the first quarter of 2026. The company enters Chapter 11 with a restructuring support agreement signed by holders of approximately 81% of its term loan claims. The proposed plan would reduce funded debt by more than $685 million. The case will be funded by a $90 million new money DIP term loan and a $225 million DIP ABL that will roll up the existing prepetition ABL facility. At emergence, the company will receive a $60 million equity investment backstopped by certain consenting term lenders.
• DIP Terms
  • Leslie's Poolmart obtained interim approval for $315 million in superpriority DIP financing comprising a $90 million all-new-money term loan agented by Alter Domus and fronted by Jefferies Capital Services, available in two equal $45 million draws on entry of the interim and final orders. The facility carries an interest rate of Adjusted Term SOFR+6.5% PIK and 7% backstop and 9.5% upfront premiums payable in additional term loans. The order also approves, on an interim basis, a $225 million Bank of America-agented ABL facility that refinances the $250 million prepetition revolver through a creeping roll-up effective on the interim order and a cashless conversion of remaining obligations upon entry of the final order.

FIHPNP LLC

• DIP Terms
  • The FIHPNP LLC debtors obtained interim approval of a $257.7 million senior secured DIP note facility for non-debtor affiliate borrower Brightline Trains Florida LLC, agented by Deutsche Bank National Trust Company, with $190 million available under the interim order and the $67.7 million balance after a final order. The notes pay 10% paid in kind interest, carry an 8% commitment premium paid in kind and mature no later than Sept. 24, 2027. They are guaranteed by 16 affiliate debtors up to their allocated portions and secured by liens on collateral pledged by debtor BLTF Holdings LLC that prime not less than $2.41 billion of prepetition BLTF obligations. Proceeds first repurchase the prepetition bridge notes in full in cash. Assured Guaranty Inc., which insures $1.13 billion of the prepetition bonds, holds a blocking position among the purchasers and buyout rights over their notes, and $65 million of "Voting Trigger Notes" give it 50.1% control of noteholder votes other than those requiring each holder's consent.

BioXcel Therapeutics, Inc.

• Plan Terms
  • BioXcel Therapeutics' combined disclosure statement and liquidating Chapter 11 plan is built around a Section 363 sale of substantially all assets to a Teva Pharmaceutical Industries affiliate. The Teva affiliate signed as stalking horse at $57.5 million in cash at closing plus up to $67.5 million in contingent milestone payments keyed largely to the timing of FDA approval of the pending supplemental new drug application for at-home use of IGALMI. Sale proceeds and the contingent payment rights go first to the up-to-$77.25 million DIP facility and then to the prepetition secured claims held by funds affiliated with Oaktree Capital Management and the Qatar Investment Authority, while a liquidation trust takes the residue and prosecutes retained causes of action; the only recovery earmarked for general unsecured creditors is a reserve capped at $1 million and funded with 30% of those litigation proceeds, and the plan provides no discharge.

F-Star Socorro, L.P.

• Plan Terms
  • The Ritz Project Debtors' amended joint Chapter 11 plan is a liquidating plan that vests all remaining estate property of 27 of the 34 debtors in a plan trust. Its centerpiece is a post-confirmation Section 363 sale of the Ritz-Carlton, Paradise Valley, in which parent equityholders hold an option to buy the hotel, FF&E and undeveloped parcels. The option price is at least $570 million plus the allowed Madison DIP and bonding claims and the amount needed to pay general unsecured claims in full, less the $90 million El Paso credit and any villas proceeds already paid to Madison. Madison's $570.3 million claim is satisfied through a credit-bid conveyance of the El Paso properties, net villas sale proceeds and A trust interests, subject to a Clawback and to the Madison Actions vesting in the trust. General unsecured creditors and parent equity receive C and E trust interests, respectively, ranking behind Madison's A interests and professional-fee B interests, with equity also behind insider D interests.

Brewster Heights Packing & Orchards, LP

• Plan Terms
  • Brewster Heights Packing & Orchards' Chapter 11 plan of liquidation centers on a sale of substantially all assets to stalking horse Heritage Orchard Alliance for $253 million, including $73.75 million in cash, a $1.25 million deposit and $155.6 million of assumed, re-tranched Prudential term loans. Net sale proceeds go first to PACA trust claims, BMO's allocated amount and the estimated $70.3 million Sandton DIP claim, then to the Wilbur-Ellis crop-lien reserve and Prudential; nonaffiliated general unsecured creditors share a $1.1 million escrowed pool projected to recover 9.2%. Prudential provides a postpetition loan of up to $15 million, repaid in part from its half of the $9.6 million Gamble Sands sale to the Gebbers family and from estate claims assigned to it against the non-excluded directors and officers, including Mac and Cass Gebbers.

Vi-Jon, LLC

• Plan Terms
  • Vi-Jon, LLC's amended Chapter 11 plan channels all talc personal injury claims against the debtor and its non-debtor affiliates to a Section 524(g) trust. Non-debtor affiliate Emprise Group, Inc. contributes $25 million to the trust and $7 million to the debtor in exchange for a material set of the debtor's assets. The trust also receives a $1 million non-interest-bearing, 12-month note from the reorganized debtor, secured by a first-priority lien on 50.1% of its equity, together with the debtor's and non-debtor affiliates' talc insurance rights. The trust further receives the Etzel Property in St. Louis or its net proceeds, plus a settlement fee of 50% of the first $40 million of gross consideration above $1 billion in any sale or merger of Emprise at an enterprise value of at least $1 billion. General unsecured creditors share a $100,000 pool, intercompany and Section 510(b) claims receive nothing, and Emprise HPC, LLC takes 100% of the reorganized equity subject to the pledge.

Searles Valley Minerals Inc.

• Plan Terms
  • Searles Valley Minerals' Chapter 11 plan of liquidation is funded by two asset sales. TATA Chemicals North America bought the debtors' soda ash contracts for $21.5 million ($17 million of debt forgiveness, $4.16 million in cash and a $340,000 fee waiver) in a sale that closed Sept. 11. 5E SVM, a subsidiary of 5E Advanced Materials, is buying the Searles Lake operations for consideration valued at approximately $34 million: $3,357,906 in cash, 8.3 million 5E shares (about $24.4 million at the Sept. 22 close) and a $6.22 million senior unsecured note paying 14.5% PIK interest. Prepetition lender HSBC and DIP lender Karnavati Holdings split the stock and note equally. HSBC also receives receivables collections and the tax refund, for a projected 43% recovery on $82 million of claims. For general unsecured creditors, a settlement among the debtors, the creditors' committee, Karnavati and sponsor Nirma funds a GUC liquidating trust with $3 million and the remaining Chapter 5 actions, for a projected recovery of 3.0% to 3.6%.

Danskammer HoldCo LLC

• Bidding Procedures Summary
  • Danskammer filed a motion to approve bidding procedures for a sale of substantially all assets and to designate Keyframe Capital Partners affiliate Hudson Valley Energy as the stalking horse bidder for the 532 MW Danskammer Generating Station in Newburgh, N.Y., under an $8 million cash purchase agreement plus assumption of liabilities including the coal ash landfill's post-closure obligations, proposing a Nov. 16 bid deadline, Nov. 18 auction and Nov. 20 sale hearing. Bid protections include a 3% break-up fee and up to $350,000 in expense reimbursement.

House Canary New Jersey, Inc.

• Plan Terms
  • HouseCanary's Chapter 11 plan proposes a going-concern reorganization that the debtors say pays, reinstates, or assumes every class. Condor FundingCo 26, the lender under the DIP facility of up to $15 million, would receive a first-lien exit note and 20% of the reorganized equity on account of its DIP claim. Prepetition lender Structural asserts a claim of at least $43 million, which a pending estimation motion seeks to split into roughly $85,000 of secured debt and a $42.9 million deficiency claim. Structural would receive cash or its collateral on the secured portion and, on the deficiency, a five-year PIK note bearing interest at the five-year Treasury rate plus 250 basis points, capped at 7.5%. The $27.5 million of convertible notes would be assumed, with maturity extended to Dec. 31, 2030. Existing preferred and common holders would retain the remaining 80% of the reorganized equity.

Pacifica of the Valley Corporation

• DIP Terms
  • Pacifica of the Valley obtained interim approval for a $52.5 million senior secured superpriority DIP facility from Axios Capital Solutions, its prepetition senior lender and contemplated plan sponsor and asset purchaser. The facility includes a $21 million multi-draw new-money term loan and a $31.5 million roll-up of prepetition debt. On an interim basis, $7 million of new money and $10.5 million of roll-up are authorized. The facility carries 12% PIK interest and a 10% commitment fee on the new money, or $2.1 million. It matures Dec. 8, 2026, unless extended on confirmation of a plan selling the hospital to Axios. Axios is obligated to credit bid not less than $40 million in any plan or private sale, and its recovery from the estate is capped at $15 million.

FlexShopper, Inc.

• Plan Terms
  • FlexShopper's Chapter 11 plan of liquidation centers on the distribution of FlexShopper, Inc. and FlexShopper, LLC's remaining assets after an $8.6 million sale of substantially all assets to Snap-affiliated ReadySett. The plan implements a mediated settlement that deems the two estates consolidated for voting, allowance, and distribution and allows warehouse agent Powerscourt Investments 50, LP's general unsecured claim at $161.7 million plus prepetition interest and fees. An initial cash distribution is split 55/45 between the warehouse agent and other unsecured creditors, while later recoveries run through a waterfall. Under the waterfall, the warehouse agent receives the first $2.5 million, recoveries are then split 75/25 until other unsecured creditors reach 30%, and the warehouse agent catches up to 30% before recoveries are shared pro rata. A liquidating trust seeded with $750,000 pursues retained claims, including claims against former CEO and CFO Russell Heiser and auditor Grant Thornton. Other unsecured creditors, with an estimated $22.3 million of claims, are projected to recover 5.12% to an unknown amount.

Signal National LLC

• Bidding Procedures / APA Summary
  • 777 Partners filed a motion seeking approval to sell a Miami Beach condominium to Columbia 6899 LLC, an entity owned by Dennis and Carmen Perkins, for $2.95 million. The sale would complete a September 2025 purchase contract between the Perkins and a 777-affiliated trust that previously held the unit. The debtors propose a private sale free and clear of liens under Section 363(f). Advantage Capital Holdings, which holds a mortgage on the condo securing a 777 note and asserts it is owed about $5.1 million, would have its lien attach to the estimated $2.2 million in net proceeds. The debtors would hold those proceeds in escrow pending an investigation of the lien's validity. A hearing is scheduled for Nov. 4.

SiFi Networks America, LLC

• Plan Terms
  • SiFi Networks America's confirmed Chapter 11 plan of liquidation winds down an estate left with cash and retained causes of action after the debtor's $5.85 million sale of substantially all assets to ArcLink Fiber, its prepetition secured noteholder and DIP lender. A global settlement among the debtor, the creditors' committee and ArcLink transfers certain estate causes of action to a liquidation trust for general unsecured creditors, funded with at least $175,000 from ArcLink as DIP lender, and the trustee will also prosecute insider and D&O claims retained by the estate. The liquidation analysis projects a 41.2% recovery for general unsecured creditors versus 1.9% in a hypothetical Chapter 7, on a claims estimate that remains subject to any claim Generate may file on its approximately $17.5 million potential arbitration judgment; the U.K. parent's $23.1 million intercompany claim is projected to recover nothing, and equity is cancelled.

UPG Enterprises LLC

• DIP Terms
  • UPG Enterprises obtained interim approval of a $6.083 million new-money DIP from its bridge lender, Firehorse Capital, that ranks junior to the White Oak and Wintrust prepetition lenders, with $2 million approved on an interim basis and the balance on a final order that would also roll up Firehorse's $4.98 million bridge note. The facility carries 10% interest paid in kind and a 4% exit fee, with a scheduled maturity of Dec. 18, 2026.

Pacific Capital Funding Group, Inc.

• DIP Terms
  • Pacific Capital Funding Group received final approval of up to $4 million of unsecured postpetition interdebtor lending among itself and its 12 affiliated debtors, which are no longer operating and are managing their assets toward a possible sale. Lending debtors receive allowed Section 364(b) administrative expense claims rather than liens or a roll-up. Borrowing beyond the cumulative cap is permitted on 10 days' negative notice to the committee, Saluda Grade Mortgage Funding and the U.S. Trustee. Ultimate repayment responsibility is set by direct-cost and liquidation value-based shared-cost allocations, trued up at least quarterly and after any debtor receives more than $2 million of net sale proceeds.

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.

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