MV Realty: Bankruptcy court to wait on disclosure statement ruling

By Sarah Lizee

Olympia, Wash., April 18 – MV Realty PBC, LLC will not have a hearing scheduled for approval of its disclosure statement until the U.S. Bankruptcy Court for the Southern District of Florida considers a pending motion to dismiss or convert the Chapter 11 case, the court said in an order filed Thursday.

As a reminder, Region 21 U.S. trustee Mary Ida Townson filed the dismissal-or-conversion motion, saying the debtors filed the cases to stay all the state litigation and move all litigation into one forum and sought an emergency restraining order against several states, which was denied.

The debtors then moved to seek a preliminary injunction. The court denied the motion and refused to stay any actions by the states other than the collection of money.

“The debtors have incurred meaningful losses as they continue forward with litigation,” Townson said in the motion.

“The debtors are not seeking to rehabilitate.”

The U.S. trustee said the debtors’ goal at this point seems to be battling the states individually through litigation and to continue harvesting fees from homeowner benefit agreements until either funds are no longer sufficient to continue operating or the state litigation results in a sufficient loss of assets such that activities must cease.

“There is a continuing loss to or diminution of the estate and an absence of reasonable likelihood for rehabilitation,” Townson said.

Plan terms

Under the proposed plan, Monroe Capital Management Advisors, LLC, the holder of a $44.8 million secured claim, will receive a full recovery. Until paid in full, Monroe will get 100% of net proceeds of any actions (excluding avoidance actions) and, following the funding of a cash reserve, a percentage of net cash flow from operations attributed solely to the Monroe portfolio.

Goodwood MV Realty LP will also receive full recovery on behalf of its secured claim. Until paid in full, Goodwood will receive 100% of net proceeds of any actions (excluding avoidance actions) after Monroe is paid in full, and, after the creation of the cash reserve, a percentage of net cash flow from operations.

Holders of general unsecured claims will receive their pro rata share of unsecured claims distributions.

Equity interests will be retained.

The Boca Raton, Fla.-based real estate company filed bankruptcy on Sept. 22, 2023 under Chapter 11 case number 23-17590.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.