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BSPV-Plano: Court sets hearing to consider terminating exclusivity
By Sarah Lizee
Olympia, Wash.., Jan. 4 –The court overseeing BSPV-Plano, LLC’s Chapter 11 bankruptcy case set a Jan. 24 hearing to consider whether it will terminate the company’s exclusive right to file and solicit votes on a plan, according to an order filed Tuesday.
As previously reported, bond trustee Huntington National Bank has asked the U.S. Bankruptcy Court for the Eastern District of Texas to end the company’s exclusivity so that it can file a competing plan.
Huntington’s motion was filed the day before the company filed a Chapter 11 plan of reorganization and related disclosure statement. A hearing on the disclosure statement is scheduled for Feb. 7.
The bond trustee claims the debtor is no closer now to completing construction on the project than it was at the beginning of the case.
“The debtor’s control over the fate of this case (and the project) must end,” Huntington said. “The best way to move this case forward is to terminate exclusivity for cause and allow the bond trustee to file a plan.
Huntington said that if the court doesn’t terminate exclusivity, it will request that the court schedule a hearing to order a joint balloting process to solicit competing plans of reorganization.
The bond trustee said this process would enable creditors to consider the plans side by side and determine which proposal will better serve their interests.
In an objection filed Monday, the debtor said it believes the motion to terminate exclusivity is a play by senior A and B bondholders for the company’s asset at the expense of junior C and D bondholders and other creditors.
The Plano, Tex.-based company was formed in May 2018 to acquire, own, develop and operate the Bridgemoor at Plano. It filed Chapter 11 bankruptcy on March 1, 2022 under case number 22-40276.
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