Toppos gets further interim approval to access cash collateral

By Sarah Lizee

Olympia, Wash., Jan. 25 – Toppos LLC secured further interim approval to access cash collateral, according to an order filed Thursday with the U.S. Bankruptcy Court for the Eastern District of North Carolina.

Toppos owns 1,654 manufactured homes in North Carolina and Illinois.

The company said it faced financial difficulties following the Covid-19 pandemic and federal eviction moratoriums imposed in 2021.

Toppos plans to continue operations through a proposed reorganization, and will be required to incur certain operating expenses, including costs associated with maintenance of the various manufactured homes.

Prepetition, the debtor incurred debt in connection with its business operations, in which the following creditors took a security interest in the manufactured homes owned by the debtor and currently being used by third-party tenants, as well as the proceeds of the lease agreements, which may constitute cash collateral: Northpoint Commercial Finance, LLC; CHC TN, LLC; GreenState Credit Union; and 21st Mortgage Corp.

Both Northpoint and 21st Mortgage filed objections to the cash collateral motion.

The Lumberton, N.C.-based real estate company filed bankruptcy on Oct. 5 under Chapter 11 case number 23-02889.

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