TBH19 secured creditor DBD Credit Funding proposes liquidating plan

By Caroline Salls

Pittsburgh, July 15 – TBH19, LLC creditor DBD Credit Funding, LLC filed a liquidating Chapter 11 plan and related disclosure statement for TBH19’s case on Tuesday, according to documents filed with the U.S. Bankruptcy Court for the Central District of California.

According to the disclosure statement, “DBD believes the debtor filed for bankruptcy as part of an ongoing effort to maintain control over its sole asset...and to thwart legitimate enforcement actions by DBD and other creditors.”

As a result of several defaults under TBH19’s DBD loan agreement, including a payment default, DBD said it initiated a non-judicial foreclosure proceeding over that asset, real property located in Beverly Hills, Calif., on Sept. 3, 2019.

In response, TBH19 filed a state court action against DBD “baselessly alleging 16 separate causes of action relating to the DBD loan,” the disclosure statement said.

DBD said oral argument for its subsequent receiver appointment and commercial judicial foreclosure motion was canceled after TBH19 filed bankruptcy on Nov. 24, 2019.

The creditor said it “does not believe that the debtors’ economic health has, or will, improve from its pre-bankruptcy state.”

DBD said its plan would be funded by a sale of substantially all of TBH19’s assets.

Under DBD’s plan, holders of tax claims and priority unsecured claims would be paid in full.

Holders of general unsecured claims would receive a share of the sale proceeds that exceed the amounts required to pay secured, administrative and priority claims.

DBD’s secured claim would be paid in full with interest at a rate of 10 5/8%.

Holders of Glorya Kaufman Trust claims will be paid in full with interest at a rate of 10 3/8%.

HAR-BD, LLC will be paid in full for its secured claims with interest at a rate of 18%.

Shareholders will receive no distribution.

The disclosure statement hearing is scheduled for Aug. 27.

TBH19 is a Los Angeles-based investment company. The company filed bankruptcy on Nov. 24, 2019 under Chapter 11 case number 19-23823.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.