GVS Texas disclosure statement approved; plan hearing March 16

By Sarah Lizee

Olympia, Wash., Feb. 3 – GVS Texas Holdings I, LLC’s disclosure statement for its amended Chapter 11 plan of reorganization was approved Wednesday, according to an order filed with the U.S. Bankruptcy Court for the Northern District of Texas.

The plan confirmation hearing is scheduled for March 16.

The company has received court approval of a $450 million stalking horse bid for its assets from CBRE WWG Storage Partners JV III, LLC. GVS said the stalking horse bid and a related transition services agreement will allow the debtors to maximize the value of their assets and recoveries to the estates, and to facilitate an orderly transition post-sale to the purchaser, which will allow for minimal disruption to the business.

If the stalking horse bid is the winning bid, the debtors expect that the assets will generate sale proceeds sufficient to clear the secured debt and pay all of the allowed claims in full.

To the extent an overbid is received at auction, the excess amounts will increase the recovery to the estates.

Specifically, administrative expense claims, professional claims, priority tax claims and other priority claims will be paid in full.

Holders of other secured claims will receive payment in full in cash or the collateral securing their claims.

Holders of senior lender claims, PropCo debtor priority claims, PropCo general unsecured claims, senior mezz lender claims, senior mezz debtor priority claims senior mezz debtor general unsecured claims, junior mezz lender claims, junior mezz debtor priority claims, junior mezz debtor general unsecured claims, section 510(b) subordinated claims will be paid in cash from the net sale proceeds.

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, 2021 under Chapter 11 case number 21-31121.

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