GVS Texas files new plan that sees all creditor classes unimpaired

By Sarah Lizee

Olympia, Wash., Nov. 22 – GVS Texas Holdings I, LLC filed an amended Chapter 11 plan of reorganization and related disclosure statement Sunday with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, the company had originally filed a dual-track Chapter 11 plan, under which both the debtors’ interests and assets would be marketed for sale. But, if the holder of the company’s existing equity produced a binding commitment for financing equal to or greater than what is needed to pay, among other things, all administrative, priority, class 1 and class 6 claims under the plan, the sale process would be terminated, and the debtors would take the steps necessary to implement the equity infusion.

The new plan, however, seeks only to sell the assets of the debtors.

As of Nov. 5, the debtors have resolved several control and management issues, have reached agreement on a process with their lenders and have obtained the court’s approval of a marketing process and bid procedures order.

Following a governance order, Robert D. Albergotti was appointed sole director of the debtors, and Natin Paul immediately resigned as an officer and director of each of the debtor entities, and now has no role whatsoever with respect to management or operation of the debtors except a duty to cooperate with Albergotti.

“The debtors, now under the direction of Mr. Albergotti pursuant to the governance order, are proceeding with their Chapter 11 cases in an orderly and expeditious fashion,” the company had said in a motion seeking an extension of its exclusive periods to file and solicit votes on the Chapter 11 plan.

Notably, the Chapter 11 plan now leaves all classes unimpaired.

Under the new plan, holders of other secured claims will receive payment in full in cash or the collateral securing their claims.

Holders of other priority claims will receive payment in full in cash.

Holders of senior lender claims will be paid in full from the net sale proceeds.

Holders of PropCo debtor administrative claims, PropCo debtor priority claims, PropCo debtor general unsecured claims, senior mezz lender claims, senior mezz debtor administrative claims, senior mezz debtor priority claims, senior mezz debtor general unsecured claims, junior mezz lender claims and junior mezz debtor general unsecured claims will receive payment from the net sale proceeds, to the extent the sale proceeds exceed the allowed amount of the claims senior to each respective class.

Holders of junior mezz debtor interests will be paid to the extent of available net sale proceeds. Those interests will then be extinguished.

GVS Texas is an indirect subsidiary of GVS Portfolio I B, LLC, which does business as Great Value Storage, an Austin, Tex.-based storage chain. GVS Texas Holdings I filed bankruptcy on June 17 under Chapter 11 case number 21-31121.

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