Galleria 2425 Owner gets interim approval to use cash collateral

By Sarah Lizee

Olympia, Wash., July 13 – Galleria 2425 Owner LLC received interim approval to use cash collateral, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the debtor said its only source of operating funds is generated by the operation of its class A office building in Houston.

Prepetition lender National Bank of Kuwait, SAKP, New York Branch asserts a first-lien priority on the debtor’s assets, including the rents received from tenants of the property, which constitute cash collateral.

The company said it needs the cash collateral to continue the operation of the property and will suffer irreparable and immediate harm if it is not granted the relief requested.

A final hearing is scheduled for Aug. 1.

The Houston-based single-asset real estate company filed Chapter 11 bankruptcy on July 5 under case number 23-60036.

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