GVS Texas Holdings closes $588 million asset sale, exits Chapter 11

By Sarah Lizee

Olympia, Wash., March 23 – GVS Texas Holdings I, LLC’s Chapter 11 plan of reorganization went into effect on Tuesday following closing of its asset sale, according to a notice filed with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, the company’s sale process resulted in a net $588 million bid for its assets. The purchaser is an entity formed as a joint venture by subsidiaries of William Warren Group, Inc. and CBRE Investment Management.

The plan, which was confirmed on March 16, provides that former chief executive officer Natin Paul will be reinstated as CEO, pending court approval.

The plan provides that proceeds from the sale will be used for the payment in full in cash of all allowed claims on the effective date, a roughly $89 million reserve to pay any disputed claims upon allowance, and a significant return on account of interests.

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 and section 510(b) subordinated claims will be paid in cash from the net sale proceeds.

Holders of general unsecured claims will also receive post-petition interest at the Federal Judgment Rate or contract rate, as applicable.

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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