Shops at Broad’s Chapter 11 bankruptcy case dismissed by court

By Sarah Lizee

Olympia, Wash., Nov. 1 – Shops at Broad, LLC’s Chapter 11 bankruptcy case was dismissed by the U.S. Bankruptcy Court for the Northern District of Texas on Monday, according to an order.

As previously reported, lender Trez Shops at Broad LP had filed a motion seeking the dismissal.

Trez Shops is the debtor’s primary creditor, secured by substantially all the debtor’s assets. Under a 2018 loan, the debtor owes Trez Shops $60,055,872.09 and under a 2019 loan the debtor owes $692,660.15.

Trez said the debtor’s petition was filed in bad faith as a way to stall the imminent foreclosure of the Mansfield, Tex., Shops at Broad property by Trez after the debtor could no longer hold off foreclosure in state court.

“If allowed to be dismissed without prejudice, the debtor will simply re-file in a continued effort to stall foreclosure,” Trez said.

“Therefore, grounds exist to dismiss this case with prejudice to re-filing for 180 days.”

According to Monday’s order, the case is dismissed with prejudice for 180 days, and the automatic stay is lifted.

The Atlanta-based retail property owner filed bankruptcy on Sept. 2 under Chapter 11 case number 22-42059.

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