District Lifestyle Wylie asks for case dismissal, wants settlement

Chicago, Nov. 7 – District Lifestyle Wylie LLC is seeking court approval of a dismissal of its recently filed Chapter 11 bankruptcy case and approval of a settlement agreement with its largest creditors, according to an emergency motion filed with the U.S. Bankruptcy Court for the Eastern District of Texas.

The settlement would allow the debtor to continue operations in completing its real estate project, a 16-acre project intended to be a lifestyle community in Wylie, Tex.

As previously reported, its largest unsecured creditors are Post Road Real Estate Finance LLC, based in Stamford, Conn., with a $34.5 million claim, Crestline Makena Fund, LP, based in Fort Worth, with a $7.8 million claim, 4X Ventures, LLC/JMM Enterprises LLC, based in Frisco, Tex., with a $4 million claim, and Gonzalez Concrete, based in Euless, Tex., with a $1.4 million claim.

Post Road accelerated its $34.5 million loan in June. There was an agreement for a payment due on Sept. 30. Hurricane Ian made the payoff not possible, as Wylie’s lender, Urban Bay Financial, was located in Tampa Bay.

The company filed bankruptcy to gain some breathing room after the payment was missed.

The proposed settlement resolves matters between the parties and results in a significant reduction in debt owed by the debtor to the lenders.

The company noted there had been construction delays and cost increases outside of its control.

The Wylie, Tex.-based single asset real estate company filed bankruptcy under Chapter 11 case number 22-41280. The company filed for bankruptcy on Sept. 30.

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