BSPV-Plano seeks access to $1 million DIP financing, cash collateral

By Sarah Lizee

Olympia, Wash., March 4 – BSPV-Plano, LLC is seeking court approval to enter into a $1 million debtor-in-possession facility, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Eastern District of Texas.

The company is seeking interim access to $500,000 of the loan.

The lender is DCJ Capital, LLC, an entity affiliated with the debtor’s equity sponsors.

The facility carries simple interest of 4˝%, paid monthly, and matures on Dec. 31.

The company is also seeking court approval to access cash collateral.

BSPV-Plano was formed in May 2018 to acquire, own, develop and operate an independent senior luxury apartment community known as the Bridgemoor at Plano.

The company financed the acquisition and development of the project, in part, through a transaction with New Hope Cultural Education Facilities Finance Corp. Under this transaction, New Hope entered into a trust indenture with Huntington National Bank as trustee, under four series of revenue bonds that were issued.

In turn, New Hope entered into a loan agreement with BSPV-Plano as borrower, under which proceeds from the bonds were used to advance loans to the company. As of March 1, there was $66.8 million owed under the loan agreement.

Construction of the project started in January 2019 and was scheduled to be completed in June 2020, but poor weather in the area during construction resulted in delays, which were further exacerbated by the onset of the Covid-19 pandemic, the company said.

BSPV-Plano said the delays caused New Hope to declare various defaults under the loan agreement, and freeze the project fund in January 2021. Since then, the debtor has funded the project from additional funds invested by its indirect equity interest holders.

The company said the project is over 85% complete, with completion projected in June.

There is $6.19 million in the project fund. The company said it needs access to this cash to finish and market the project.

The Plano, Tex.-based company filed Chapter 11 bankruptcy on March 1 under case number 22-40276.

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