BSPV-Plano receives confirmation of amended Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Sept. 5 – BSPV-Plano, LLC received confirmation of its amended Chapter 11 plan, according to documents filed Friday with the U.S. Bankruptcy Court for the Eastern District of Texas.

The company amended the plan in July after entering into a binding plan term sheet with bond trustee Huntington Bank, which had previously filed a competing Chapter 11 plan.

The amended plan will be funded through cash on hand as of the effective date, including all receivables; future operations and recoveries of the reorganized debtor; an equity contribution; and bond reserves.

Under the plan, secured tax claims are unimpaired and will be paid in full.

Holders of priority claims will receive payment in full through four equal quarterly payments after the effective date.

Series A, C and D bond principal will be paid through reissued bonds. The prepetition and post-petition interest will be added together and repaid through interest bonds.

Series B principal, prepetition interest and post-petition interest will be added together and repaid through reissued bonds. This class will not be issued interest bonds.

Starting on the effective date, debtor-in-possession secured claims will bear interest at 4.5% simple interest per annum. Default interest would be 10% per annum. The reorganized debtor will pay the DIP secured claims with all interest and fees after the project is sold or refinanced, but only after higher priority classes are paid in full; or at any time after the higher priority classes are paid in full upon the demand of the DIP secured claimholder.

At any time after the effective date, the holder of the DIP secured claims may convert the whole of the DIP secured claims into equity interests of the reorganized debtor on a 2-to-1 basis.

While the holders of the A&C Hauler secured claim and the BKJ secured claim must prove their claims, if they are allowed, they will be repaid with a lien securing the repayment, if they voted for the plan. To the extent the claims are allowed, they will be repaid through quarterly payments over five years, with 5% interest. And, if the holders voted to accept the plan, they may compel the debtor to pay 50% of the claims shortly after they become allowed.

While the holders of the A&C Hauler secured claim and the BKJ secured claim must prove their claims, if they are allowed, they will be repaid with a lien securing the repayment, if they vote for the plan. To the extent the claims are allowed, they will be repaid through quarterly payments over five years, with 5% interest. And, if the holders vote to accept the plan, they may compel the debtor to pay 50% of the claims shortly after they become allowed.

If the holder of the CJ project management secured claim votes to accept the plan, it will get a junior lien, ensuring that any claim it is allowed is paid through quarterly payments over four years. If the holder votes for the plan, the plan provides for the allowance of the claim at $200,000 and a release by the debtor of its claims and counterclaims.

Unsecured claims will be paid in full through 12 equal successive quarterly payments. As an alternative treatment, holders may elect to receive in cash 33% of the allowed amount of their claim no later than 10 business days after the effective date, or when the claim becomes allowed, whichever is later.

Equity will be retained. So long as any obligation of the reorganized debtor to any other class under the plan remains pending and unpaid in full, the debtor will not make any distribution to equity holders.

The rate for series B bonds is expected to be 6.25%, the rate for series C bonds will be 5%, and the rate for series C bonds will be 4%.

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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