Galleria 2425 Owner fights to keep Chapter 11 case open

By Sarah Lizee

Olympia, Wash., Aug. 11 – Galleria 2425 Owner LLC objected to a motion to dismiss its Chapter 11 bankruptcy case filed by lender National Bank of Kuwait, SAKP, New York Branch, according to documents filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

As a reminder, the case involves a single real estate asset located at 2425 West Loop South, Houston.

The lender claims there is no possibility of a successful reorganization of the debtor.

“The single reason the debtor filed this case was to delay or harm NBK by seeking to enjoin or otherwise delay NBK from exercising its contractual rights, namely, to foreclose on the property,” the lender had said in the motion for dismissal.

The debtor argues that it can and will file a confirmable plan that will include enough new equity to restructure its debt.

Galleria 2425 Owner said the lender has been interfering with its rights to lease and sell the property.

“NBK is not the debtor’s only creditor; the debtor has a number of unsecured creditors who stand to get something if the debtor confirms a plan, but who will get nothing if NBK forecloses on the property,” the company said in the objection.

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

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