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Performance Powersports Group Inc., a wholesale supplier of dirt bikes, all-terrain vehicles and golf carts, has filed for bankruptcy, with a lender and investor planning to serve as lead bidder while the private-equity-backed company seeks better offers, WSJ Pro Bankruptcy reported. The Tempe, Ariz.-based vehicle dealer, backed by investment firm Kinderhook Industries LLC, said it has been hurt by supply-chain disruptions, higher freight costs and a reduction in customer demand. The company sells its vehicles to customers including Tractor Supply Co., Lowe’s Cos. and Walmart Inc., according to a filing on Monday in the U.S. Bankruptcy Court in Wilmington, Del. Performance Powersports, which sells products under brands that include Coleman, also said it has been in an inventory dispute with a key vendor, Chongqing Huansong Industries (Group) Co. Ltd. A delay in vehicle delivery by the China-based vendor caused 2021 holiday sales to suffer, Performance Powersports said. Chongqing Huansong is listed as the largest unsecured creditor, with a $58 million claim. Performance Powersports has debt of more than $120 million, according to its court filing.

The owners of the recently reopened Crowne Plaza Hotel in Times Square filed for capter 11 bankruptcy protection Wednesday in an effort to resuscitate the ailing and lawsuit-plagued business, The Real Deal reported. Andrew Penson’s Argent Ventures wants to reorganize the finances of the hotel’s home, 1601 Broadway, having gained control of the 46-story tower in the heart of Times Square by vanquishing office giant SL Green in court and replacing Vornado Realty Trust. Penson had elbowed his way into the marquee property by buying — at a steep discount — the mezzanine debt on which Vornado had defaulted. The debt is $526 million on the 795-room hotel, 196,300 square feet of office space and 17,800 square feet of retail, according to bankruptcy filings. Almost all of that — $519 million — is owed to senior and mezzanine lenders. Some $418 million in senior debt has been delinquent since April 2020, according to bankruptcy filings. The hotel, which occupies floors 15 through 46, closed the previous month when COVID arrived. It reopened last month. While tourism to New York City has rebounded substantially, the pandemic’s effects linger in the hospitality industry, which still employs fewer people than it did in 2019.

Compute North, one of the largest operators of crypto-mining data centers, filed for bankruptcy and revealed that its CEO stepped down as the rout in cryptocurrency prices weighs on the industry, CoinDesk.com reported. The company filed for chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas, according to a court filing. Compute North in February announced a capital raise of $385 million, consisting of an $85 million Series C equity round and $300 million in debt financing. But it fell into bankruptcy as miners struggle to survive amid slumping bitcoin (BTC) prices, rising power costs and record difficulty in mining bitcoin. The filing is likely to have negative implications for the industry. Compute North is one of the largest data center providers for miners, and has multiple deals with other larger mining companies. CEO Dave Perrill stepped down earlier this month but will continue to serve on the board, the spokesperson added. Drake Harvey, who has been chief operating officer for the last year, has taken the role of president at Compute North.

Borrego Community Health Foundation announced Sept. 12 that it has filed for chapter 11 bankruptcy, but it will keep its clinics open, Becker's Hospital Review reported. The Borrego Springs, Calif.-based organization said the bankruptcy filing was driven by a notification from California Health and Human Services that payments for Borrego Health Medi-Cal services will be suspended Sept. 29. Borrego said the bankruptcy filing will prevent the payment suspension from taking effect. Borrego will also work to resolve ongoing state and federal investigations during the bankruptcy process, the organization said. "Unfortunately, the misguided action by [Department of Health Care Services] jeopardizes patients and has led us to make a difficut decision to protect our patients and their access to care," Borrego Health CEO Rose MacIsaac said in a Sept. 12 news release. "Our mission to provide high-quality local access to those most in need drives us forward and this filing with the court will allow us to continue to provide care as we do today while we secure the future of healthcare for our patients." Borrego Health has 21 locations and served more than 120,000 patients in 2021. The organization provides a variety of services, including primary, pediatric, behavioral and urgent care.

NewAge Inc., a direct-to-consumer seller of health and wellness products, filed for bankruptcy yesterday and said that it plans to sell itself, after disclosing material weaknesses in its financial reporting, Reuters reported. The Midvale, Utah-based company and three affiliates sought chapter 11 protection from creditors with the U.S. bankruptcy court in Delaware. Yesterday's filing came three weeks after the company received a default notice on a loan agreement. NewAge said it had $310.9 million of assets and $149.4 million of debts as of the end of 2021. In a regulatory filing, NewAge said it received a $28 million bid from an entity known as DIP Financing LLC to buy substantially all its assets, subject to court approval and higher bids. NewAge also said it lined up $16 million in financing to help it operate while it restructures. The company has not filed annual or quarterly reports this year, after finding a material weakness in its 2020 annual report related to how it reported acquisitions.

An Apollo Global Management LLC-owned lighting components firm said it has agreed on a restructuring plan to help reduce debt by $1.3 billion, as it grapples with supply chain constraints exacerbated by the war in Ukraine, Bloomberg New reported. Lumileds Holding B.V., which supplies energy-efficient LED lighting for automotive displays, said in a statement it had entered into the agreement with key lenders, and that it had commenced Chapter 11 proceedings limited to its US and Netherlands operations. It said it expected to emerge from proceedings within 60 days. The Dutch-headquartered company’s European, Asian, and other foreign subsidiaries and affiliates are not included in the filing and are unaffected by the chapter 11 process, according to the statement. It said it expected employees to continue receiving wages and benefits. “We have proactively taken steps to de-leverage our balance sheet given the ongoing challenges presented by global supply constraints, COVID-related issues, and the crisis in Ukraine,” said Matt Roney, CEO of Lumileds. Under the terms of the restructuring agreement, the existing secured lenders are expected to commit to support, and vote in favor of, a deal that will reduce the company’s funded debt to about $400 million from around $1.7 billion, according to the statement. This would include takeback debt and post-petition loans, which would be combined into a five-year exit facility. The deal would include as much as $275 million of debtor-in-possession financing, according to the statement.

Regional air carrier ExpressJet Airlines LLC filed for bankruptcy Tuesday and will shut down its business, unable to rebound from the loss of its contract with United Airlines, WSJ Pro Bankruptcy reported. The College Park, Ga.-based regional air carrier ceased operations on Monday in advance of its chapter 11 filing and is now planning to sell off its remaining assets, according to a declaration filed with the U.S. Bankruptcy Court in Wilmington, Del., by ExpressJet’s President, John Greenlee. ExpressJet provided regional flight services for other airlines using aircraft subleased from United Airlines. In January 2019, the company signed a contract with United to fly exclusively for United through 2022. But in 2020, when the COVID-19 pandemic grounded many flights, United scrapped the contract, and ExpressJet was forced to suspend its operations. In an attempt to rebound, ExpressJet launched its own leisure brand, Aha, in the fall of 2021 to connect Reno-Tahoe International Airport and cities along the West Coast, but the company was unable to turn it into a profitable business. In the first seven months of 2022, the company’s estimated gross revenue was $5.5 million, while expenses were $23.3 million, generating an operating loss of $17.7 million.

Carestream Health Inc., an X-ray imaging products supplier once owned by Eastman Kodak Co. and now backed by buyout firm Onex Corp., filed for bankruptcy with a prearranged plan to cut its $1 billion debt load by roughly half, WSJ Pro Bankruptcy reported. In recent years, Carestream’s medical films business has seen falling demand as digital-only products gain traction, Chief Financial Officer Scott Rosa said in a declaration filed Tuesday in the U.S. Bankruptcy Court in Wilmington, Del. Government efforts to curb healthcare costs have also hurt the business, which was started more than a century ago, he said. Lenders under a $448 million second-lien term loan have agreed to swap their debt for equity ownership and participate in a rights offering to become majority owners of the reorganized company, based in Rochester, N.Y. Originally formed as Kodak’s health group, Carestream was acquired in 2007 for almost $2.4 billion by investors led by Onex Corp. Yesterday’s bankruptcy filing comes four months after Carestream said it had reached an out-of-court restructuring deal expected to cut $220 million in debt. The chapter 11 filing aims to add another $250 million in debt reduction. Medical film is the largest of Carestream’s divisions. The unit includes printer systems, laser-imaging films and dental films and generated roughly half of the company’s more than $1.1 billion in sales last year. Carestream has roughly 8,000 direct customers and 900 dealers in more than 130 countries. Its products are used by health systems, hospitals and imaging centers. Its foreign entities aren’t part of the bankruptcy case. The company’s debts also include $507.7 million in first-lien term loans and $77 million in first-lien revolver borrowings, according to court papers. Lenders, including First Eagle Investments, LCM Asset Management LLC and Apollo Capital Management LP, have offered to supply an $80 million loan to help Carestream get through bankruptcy. Providers of the bankruptcy financing may also get an equity stake. First-lien lenders are getting a combination of cash and their share of a new term-loan facility of roughly $540 million, projected to provide them a full recovery. Second-lien lenders are expected to recoup 23% of what they’re owed. The restructuring plan also envisions raising up to $75 million of new equity capital through a common stock rights offering.