Terravista Partners-Pecan Partners et al. (Bankr. W.D. Tex. Case No. 19-51100)
MH&H represented a New York distressed debt fund in connection with a July 2019 acquisition of aggregate $30 million non-performing mortgage loan on four (4) multifamily properties located in San Antonio, Texas which. Foreclosure proceedings were commenced but ultimately stayed by a chapter 11 case filed by the property owners. Following acquisition of the debt, MH&H successfully negotiated the terms of the Debtors’ cash collateral use and obtained entry of a court order which provided for (x) Debtors’ acknowledgment and court allowance of the amount, validity and extent of the lender’s claims and liens and (y) case milestones, with the use of cash terminating and stay relief being granted upon Debtors’ failure to meet any deadline associated with a case milestone. We successfully positioned the chapter 11 cases for a sale process involving all four (4) properties and the transaction closing in March 2020 at which the lender was paid in full, including payment of attorneys’ fees and post-petition interest at the default rate from bankruptcy filing through closing.