District Lifestyle Wylie’s Chapter 11 bankruptcy case dismissed

By Sarah Lizee

Olympia, Wash., Nov. 17 – District Lifestyle Wylie LLC’s Chapter 11 bankruptcy case was dismissed Thursday by the U.S. Bankruptcy Court for the Eastern District of Texas, according to an order.

As previously reported, the company filed bankruptcy in late September but recently reached a settlement with its biggest creditors.

The settlement lets the debtor continue operations in completing its real estate project, a 16-acre project intended to be a lifestyle community in Wylie, Tex.

The company’s largest unsecured creditors are Post Road Real Estate Finance LLC, based in Stamford, Conn., with a $34.5 million claim, Crestline Makena Fund, LP, based in Fort Worth, with a $7.8 million claim, 4X Ventures, LLC/JMM Enterprises LLC, based in Frisco, Tex., with a $4 million claim, and Gonzalez Concrete, based in Euless, Tex., with a $1.4 million claim.

Post Road accelerated its $34.5 million loan in June. There was an agreement for a payment due on Sept. 30. Hurricane Ian made the payoff not possible, as Wylie’s lender, Urban Bay Financial, was located in Tampa Bay.

The company filed bankruptcy to gain some breathing room after the payment was missed.

The proposed settlement resolves matters between the parties and results in a significant reduction in debt owed by the debtor to the lenders.

The company noted there had been construction delays and cost increases outside of its control.

The Wylie, Tex.-based single asset real estate company filed bankruptcy on Sept. 30 under Chapter 11 case number 22-41280.

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