New Chapter 11 Filing - Wordsworth Academy

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Wordsworth Academy

  • 6/30/17 Recap: Loyal PETITION readers know that we love lending snarky editorial color to chapter 11 filings. But sometimes things go beyond the pale and just aren't funny. This is one of them. This entity is a Pennsylvania non-profit corporation that provides education, behavioral health and welfare services to nearly 5,000 children who have emotional, behavioral and academic challenges. Why did it file? The company claims it needs an operational restructuring but there is a critical overhang here: a resident of one of the facilities died while being restrained. On top of that, there were other "allegations of other serious problems" at the same facility where the death occurred. There is an ongoing wrongful death suit against the company. Litigation appears to have pushed this company into bankruptcy, plain and simple. Tragic, sad, and definitely not amusing.
  • Jurisdiction: E.D. of Pennsylvania
  • Capital Structure: $4.7mm debt (M&T Bank)    
  • Company Professionals:
    • Legal: Dilworth Paxson LLP (Lawrence McMichael, Peter Hughes, Anne Aaronson)
    • Financial Advisor: Getzler Henrich & Associates LLC (William H. Henrich)
    • Claims Agent: Donlin Recano & Company Inc. (*click on company name above for free docket access)
  • Other Parties in Interest:
    • Secured Lender: M&T Bank 
      • Legal: Reed Smith LLP (Peter Clark II, Jennifer Knox)

Updated 7/11/17

New Filing - Limitless Mobile LLC

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Limitless Mobile LLC

  • 12/5/16 Recap: Pennsylvania-based 3G/4G LTE network provider of mobile phone and home internet services to retail customers in rural areas filed chapter 11 to restructure its debt, winddown its retail operations and attempt to continue its wholesale business pursuant to a $4mm Tower Bridge DIP loan. Basically this thing is an investment cesspool: after a $9+mm loan and $25.2mm grant from the US government and a $30mm equity (and spectrum) infusion from Tower Bridge, the company determined that it had an "extended runway to profitability." Who modeled this for the US Government before doling out the grant?
  • Jurisdiction: D. of Delaware
  • Capital Structure: $9.2mm debt (Rural Utilities Service - United States) & $9mm (Tower Bridge LLM Partners LLC)    
  • Company Professionals:
    • Legal: Dilworth Paxson LLP (Catherine Pappas, Martin Weis, Jesse Silverman, Lawrence McMichael, Erik Coccia)
    • Claims Agent: Rust Omni (*click on company name for docket)
  • Other Parties in Interest:
    • Tower Bridge LLM Partners LLC
      • Legal: Gellert Scali Busenkill & Brown LLC (Ronald Gellert, Evan Rassman)
    • Unsecured Creditors Committee
      • Legal: Saul Ewing LLC (Lucian Murley, Sharon Levine)
      • Financial Advisor: Gavin/Solmonese LLC (Edward Gavin)

Updated 12/29/16