XS Ranch Fund VI lender asks court to dismiss latest Chapter 11 case

By Caroline Salls

Pittsburgh, Jan. 9 – XS Ranch Fund VI, LP lender Crestline Direct Finance, LP asked the U.S. Bankruptcy Court for the Western District of Texas to dismiss XS Ranch Fund’s Chapter 11 case, according to a motion filed Wednesday.

“This bankruptcy case was filed on the eve of a deed of trust foreclosure sale solely to prevent Crestline from exercising its rights following the debtor’s default on its confirmed and substantially consummated plan of reorganization from its prior Chapter 11 case filed in the United States Bankruptcy Court, for the Northern District of California,” the motion said.

“4. No ‘unanticipated changed circumstances’ exist, let alone sufficiently extraordinary unanticipated changed circumstances, justifying the filing of the proverbial ‘Chapter 22’ bankruptcy case.”

Instead, Crestline said XS Ranch Fund’s latest bankruptcy filing constitutes an impermissible attempt to modify the fund’s previous plan and strip Crestline of the rights.

Crestline said it provided debtor-in-possession financing to XS Ranch Fund as part of its previous bankruptcy proceedings.

Bastrop, Tex.-based XS Ranch Fund VI is a real estate development company. The fund filed bankruptcy on Jan. 6 under Chapter 11 case number 20-10032.

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