ERBO Properties to get $5 million further funding for Chapter 11 plan

By Sarah Lizee

Olympia, Wash., June 28 – ERBO Properties LLC is slated to receive $5 million in additional funding for its Chapter 11 plan, according to a letter filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

Capital M Acquisitions, LLC intends to provide a $5 million loan to Magnolia Ridge Development LLC, which plans to contribute the entire amount of the loan to fund ERBO’s plan of reorganization, including the cost of carrying ERBO’s property pending the sale and/or stabilization.

A hearing on the company’s plan was previously scheduled for Wednesday but will be adjourned to a new date.

The New York-based property owner filed bankruptcy on Feb. 13 under Chapter 11 case number 23-10210.

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