Shops at Broad lender says Chapter 11 case filed in bad faith

By Sarah Lizee

Olympia, Wash., Sept. 26 – Shops at Broad, LLC’s Chapter 11 bankruptcy case should be dismissed, lender Trez Shops at Broad LP said in a motion filed Sunday with the U.S. Bankruptcy Court for the Northern District of Texas.

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.”

As an alternative to dismissal, Trez Shops is seeking relief from the automatic stay to allow it to continue its foreclosure on the property.

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

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