Bondoro Insights: Weekly Docket Update

This Week's Key Filings

The Children's Place, Inc.

• Case Summary
  • The Children's Place filed for Chapter 11 citing declining demand for value-oriented children's apparel, persistent cost inflation, high tariffs and growing competitive pressure. The company is continuing liquidation sales at all of its stores while pursuing a going-concern sale, and is seeking approval of two DIP facilities from its existing secured lenders - an ABL facility of up to $166 million and a term loan of up to $116 million, both including roll-ups of prepetition debt.
• Bidding Procedures Summary
  • The Children's Place filed a motion to establish bidding procedures for a sale of all, substantially all or any portion of its assets, including The Children's Place and Gymboree brands, proposing a Dec. 9 bid deadline, a Dec. 11 auction if needed and a Dec. 15 sale hearing; with no stalking horse yet signed. The debtors seek authority to designate one or more by Nov. 17 with a break-up fee of up to 3% of the purchase price plus expense reimbursement.
• DIP Terms
  • The Children's Place seeks approval of DIP financing from its prepetition secured lenders: a $166 million ABL revolver agented by Wells Fargo and a $116 million term facility agented by SLR Credit Solutions. The term facility carries $16 million of new money, drawn on interim approval, $15 million of which pays down prepetition revolving loans. The rest of the term facility is a cashless roll-up of the prepetition term loans: $16 million on entry of the interim order and the remainder on entry of a final order. The facilities would fund store-closing sales while the company markets the business for a potential going-concern sale, with a sale-closing milestone of Dec. 31, 2026.

Mercer International Inc.

• Case Summary
  • Mercer International filed for Chapter 11 citing lower pulp prices, rising fiber costs, leverage from its expansion into solid wood and mass timber, and approaching maturities on its subsidiaries' secured credit facilities. Its prepackaged plan, supported by holders of more than 87% of the senior notes, would cut funded debt from about $1.6 billion to about $700 million, principally by cancelling its $1.3 billion of senior notes. A noteholder-backstopped rights offering would provide up to $400 million of new liquidity, and the Debtors intend to fund the cases with unencumbered cash rather than DIP financing.
• Plan Terms
  • Mercer International's joint prepackaged Chapter 11 plan centers on a debt-for-equity swap of approximately $1.32 billion in allowed senior notes claims, under which noteholders receive 91.5% of the new common stock, 56.5% of $325 million in new convertible preferred stock and $150 million in takeback senior secured notes. The swap is facilitated by a $420 million new money senior secured notes rights offering, fully backstopped by members of the Majority Ad Hoc Group for a $56 million put option premium, which carries 40% of each new equity class as stapled equity, with the stapled common diluting only the noteholders' common. Existing shareholders receive 8.5% of the new common stock and 3.5% of the preferred, and all other classes are unimpaired.

Tapestry Management Services, Inc.

• Case Summary
  • TapestryHealth filed for Chapter 11 following CMS's suspension of Medicare payments to several of its affiliated physician entities amid a DOJ False Claims Act investigation, pursuing an expedited going-concern sale backed by proposed DIP financing whose milestones require Medicare reimbursements to be restored.
• DIP Terms
  • TapestryHealth received interim approval of an up to $19 million DIP facility from their prepetition lenders, LAGO Evergreen Credit and LAGO Innovation Fund III, consisting of up to $7.4 million of new money and up to $11.7 million of roll-up loans. The loans bear Term SOFR + 10% cash interest, and all budgeted funding after week 3 depends on milestones that include an order by Nov. 17, 2026, enforcing the automatic stay against CMS as to Medicare payments and a sale closing within 90 days of the petition date.

WeAre8, PBC

• Case Summary
  • WeAre8 filed for Chapter 11 with approximately $15,000 of cash and more than $32 million of funded debt. It attributes its liquidity crisis to the failure of a planned $10 million equity investment under an arrangement with McCourt and affiliated entities, matured convertible notes, McCourt’s lawsuit seeking repayment, and its inability to raise sufficient new capital. It intends to pursue a Section 363 going-concern sale of substantially all of its assets, funded by a proposed DIP facility from existing investors of up to $1.6 million, including a $430,000 roll-up of bridge financing.

FitLab, Inc.

• Case Summary
  • FitLab filed for Chapter 11 following delayed and costly acquisition financing, heavy investment in a since-terminated Nike studio partnership, and supply-chain and inventory-financing disruptions at its Assault Fitness equipment business, compounded by merchant cash advance enforcement and a shipping halt, pursuing a Hilco-led sale process backed by a proposed $5.6 million DIP from lenders including an insider.
• DIP Terms
  • FitLab obtained interim approval of a $5.64 million new-money priming DIP split into two facilities: up to $5.15 million from Grizzly Investment Group, including a $2.15 million interim draw, and up to $489,250 for the Ragnar debtors from Golazo NV and SBAR Endurance, $350,000 of it available on an interim basis. The term sheet calls for a stalking horse agreement between the Ragnar debtors and the Ragnar lender by Dec. 9, 2026; if the Ragnar lender is not approved as stalking horse, its funding obligation ends and the selected stalking horse must refinance it. The loans carry 12% simple interest payable in cash at maturity, which the interim order sets at the earliest of Jan. 24, 2027, the closing of a sale of all or substantially all of the applicable debtors' assets, or a plan effective date.

Motorcycles of Manchester, Inc.

• Case Summary
  • Motorcycles of Manchester filed for Chapter 11 to pursue a going-concern sale of their eight-location New England powersports dealership business after a post-pandemic performance decline, higher interest costs on debt-funded expansion, floorplan lender accelerations and a delayed affiliate real estate sale strained liquidity. The debtors are negotiating potential DIP financing with prepetition lender MutualOne Bank and a stalking horse bid from a multi-location motorsports dealer.

ITP Holdings, Inc.

• Case Summary
  • ITP Holdings filed for Chapter 11 after Bank of Montreal discontinued the revolving facility that financed subsidiary Information Technology Partners, Inc.’s equipment purchases, leaving an approximately $9.8 million balance due. The subsidiary later repaid the balance in full through a sale-leaseback, but the transaction provided no new working capital. The companies attribute an approximately 23-month operational standstill to constrained accounts and vendor litigation against the subsidiary's receivables, and seek to resolve competing claims to those receivables in a single forum, release approximately $1.9 million in customer-held receivables to fund a restart, and propose a plan of reorganization around a services-based model.

Karyopharm Therapeutics Inc.

• DIP Terms
  • Karyopharm Therapeutics obtained interim approval to access a proposed $110 million superpriority DIP facility from participating prepetition first lien lenders, split evenly between $55 million of first-out new money and a $55 million second-out roll-up of prepetition first lien term loans, converted dollar-for-dollar against new money funded. The interim order authorizes a $25 million new-money draw to fund operations and the administration of a sale of substantially all assets, together with a $25 million cashless roll-up. The remaining $30 million of each is subject to final approval, with a hearing scheduled for Nov. 30. The new money carries Term SOFR plus 9% PIK interest and a 4% exit fee; the roll-up carries Term SOFR plus 12.25% PIK interest and an 8% exit fee. Both rates have a 3% SOFR floor, and the facility matures no later than May 1, 2027.
• Bidding Procedures Summary
  • Karyopharm Therapeutics received approval of bidding procedures that market-test Ayrmid's stalking horse bid, a reorganization transaction under the debtors' prepackaged Chapter 11 plan, against competing bids that must deliver at least $335.4 million in net proceeds at closing, while also paying general unsecured claims in full and funding the wind-down. Bids are due Dec. 16, with an auction Dec. 21 if needed. Ayrmid's break-up fee of 3% of a $311.4 million base and expense reimbursement capped at 1% of that base await a further order after a Nov. 30 hearing.

FRC Balance, LLC

• DIP Terms
  • True Food Kitchen obtained second interim approval of its $20 million all-new-money, HumanCo-led DIP facility, which adds Twelve Bridge Capital as a 25% co-lender and authorizes a first Tranche B advance of up to $2 million, raising interim authorization to $7 million at 10% PIK interest; the remaining $13 million awaits a Nov. 18 final hearing, where committee and inKind objections remain open, and sequential sale-linked advance conditions targeting a Jan. 22, 2027, closing.
• Bidding Procedures Summary
  • True Food Kitchen received final approval of bidding procedures for a sale of all or substantially all of its assets. The Debtors may designate one or more stalking horse bidders, including the DIP lender, by Nov. 24, ahead of a Dec. 2 bid deadline, a Dec. 8 auction and a Dec. 18 sale hearing. Bids must fund the estates’ wind-down and, unless the DIP lender agrees otherwise, repay the DIP obligations in full in cash. The DIP lender may credit bid its claim but must still fund the wind-down in cash.

Uniroyal Holding, Inc.

• Plan Terms
  • Uniroyal Holding’s confirmed Chapter 11 plan centers on a settlement of PI/WD Claims administered by a trust that receives the Debtors’ insurance rights under the plan’s Insurance Rights Transfer, and provides for an orderly wind-down and liquidation of the Debtors’ estates. General unsecured claims are presumed to accept the plan, and equity interests are cancelled. The trust will also hold a $2 million D&O Contingency Fund, funded by the Debtors, to indemnify current and former directors and officers against asbestos-related claims, while a court-approved Section 1114 modification of the retiree benefits program leaves the Debtors with no continuing retiree benefit obligations.

Crosby Marine Transportation, LLC

• Plan Terms
  • Crosby Marine Transportation’s amended Chapter 11 liquidation plan, which follows the $126.2 million sale of substantially all of the debtors’ assets to Breakwater Buyer and the $70 million sale of their 49.99% Luhr Crosby stake to Luhr Bros., pays secured lenders from the remaining Breakwater proceeds under a contested collateral allocation to be decided alongside confirmation. General unsecured creditors receive interests in a liquidating trust built around retained litigation valued at approximately $77.1 million to $141.9 million gross, led by merchant cash advance claims.

Trajector Holdings, LLC

• Bidding Procedures Summary
  • Trajector Holdings obtained approval of bidding procedures for a dual-track sale of all or substantially all assets, including its Trajector Medical and Trajector Disability businesses, through one or more Section 363 sales or a reorganization plan, setting a Dec. 30 bid deadline, Jan. 7 auction and Jan. 14 sale hearing, with no stalking horse designated and any bid protections subject to a further court order.

Cerca Trova Restaurant Group Holdings, Inc.

• DIP Terms
  • Cerca Trova Restaurant Group obtained interim approval for a $5.5 million non-interest-bearing revolving DIP facility from Outback Steakhouse, its franchisor and stalking horse bidder, with $2.5 million available on an interim basis and the balance conditioned on entry of the final order and a bidding procedures order; if the stalking horse sale closes under milestones targeting a closing by Jan. 4, 2027, the outstanding DIP obligations are satisfied through a dollar-for-dollar reduction of the cash purchase price.

FuturHealth, Inc.

• Bidding Procedures Summary
  • FuturHealth filed a motion for bidding procedures for a going-concern sale of all, substantially all, or a portion of its assets, proposing a Dec. 15 bid deadline, a Dec. 18 auction and a Dec. 29 sale hearing. The debtor seeks authority to designate one or more stalking horse bidders with bid protections by Dec. 1; access to additional DIP funding is conditioned on its entering into a qualified stalking horse APA.
• DIP Terms
  • FuturHealth obtained interim approval for a $5 million new-money, priming, delayed-draw DIP term loan from Twelve Bridge Capital, authorizing a $1.5 million interim draw while conditioning the remaining $3.5 million on entry of a final order and a signed Qualified Stalking Horse APA. The facility carries 14% PIK interest, a $500,000 commitment fee, 5% funding fees and a 7% exit fee approved so far only on an interim basis, and matures no later than 120 days after the petition date.

John Fitzgibbon Memorial Hospital, Inc.

• Plan Terms
  • John Fitzgibbon Memorial Hospital’s amended joint plan centers on a wind-down following the court-approved sale of the hospital to Strawberry Fields REIT. DIP lender UMB Bank, N.A., as trustee, receives an effective-date cash paydown of up to $5 million, with its remaining DIP balance converted into a 90-day, 8.25% non-recourse exit note secured by a first-position lien on the wind-down debtors’ assets. Holders of 2016 bond claims receive $10,000 in two $5,000 installments, while general unsecured creditors, along with insured-claim holders to the extent of uninsured deficiencies, share pro rata in semi-annual distributions of any cash remaining after the wind-down reserve is funded. A plan administrator will pursue retained claims, including the Debtors’ adversary proceeding against Strawberry Fields REIT.

W/L Properties LLC

• Plan Terms
  • W/L Properties' amended Chapter 11 plan centers on the sale of The Shoppes at Larson Farm, an approximately 8.49-acre commercial property in Bristol, Connecticut, which JLL will market through Dec. 31, 2026, with an auction through Maltz Auctions as a fallback if the property is not under contract by then or a contracted buyer defaults. Net sale proceeds and remaining cash will go first to administrative claims, then to the City of Bristol's approximately $0.1 million tax lien claim, M&T Bank's approximately $8.7 million and $0.8 million mortgage claims under notes that matured April 1, 2023, and general unsecured creditors, while equity holders receive a distribution only if all senior claims are paid in full.

Squirrel Hill PA Realty, LLC

• Bidding Procedures Summary
  • Squirrel Hill PA Realty obtained approval of bidding procedures to sell substantially all assets, including the facility's real property, without a stalking horse bidder and with secured lender Squirrel Hill PA Property authorized to credit bid up to the full amount of its secured obligation, ahead of a Nov. 24 bid deadline, Dec. 1 auction and Dec. 10 sale hearing.

RAD Diversified REIT, Inc.

• Bidding Procedures Summary
  • RAD Diversified REIT filed a motion seeking approval to sell an approximately 20-acre tract with improvements at 2385 Serles Road in Middleton, Tennessee, assessed at $201,000 and leased to tenants through April 2029, free and clear of all liens, claims, encumbrances and interests, including the tenants' interests, through a public auction to be run by court-approved auctioneer Tranzon Driggers four to eight weeks after entry of the sale order, with the sale to the winning bidder subject to a later sale confirmation order.

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.