National Realty files Chapter 11 plan with support from committee

By Sarah Lizee

Olympia, Wash., April 13 – National Realty Investment Advisors, LLC filed a Chapter 11 plan and disclosure statement Wednesday with the U.S. Bankruptcy Court for the District of New Jersey.

The plan has the support of the official committee of unsecured creditors following extensive negotiations.

Subject to the plan proponents’ ability to pivot to an alternative corporate governance structure, the plan provides for the appointment of a liquidation trustee and a wind-down officer to administer the debtors’ remaining properties and their estates.

The plan also includes a contributing investor settlement with respect to the treatment of investor claims, subject to the ability of holders of investor claims in class 5 to affirmatively opt out of the settlement.

Allowed administrative claims, priority tax claims, class 1 priority non-tax claims and class 2 other secured claims will be paid or otherwise satisfied in full.

Holders of allowed class 3 third-party mortgage claims will retain their unaltered legal, equitable and contractual rights under the prepetition loan and mortgage documents between the applicable debtor and the holder of such allowed class 3 claim, provided that the maturity date of each loan and mortgage will be extended to the earlier of the date of the sale of the applicable collateral securing the mortgage and two years after the effective date.

Holders of allowed class 4 non-investor general unsecured claims will receive, following payment of the claims above, payment in full on account of their claims.

Holders of allowed class 5 investor claims will receive, after payment of the claims above, their pro rata share of liquidation trust interests that entitle them to distributions of the liquidation trust assets.

JVA claims and equity interests will not receive or retain any property under the plan.

The company is seeking a May 16 hearing on approval of the disclosure statement, and a July 25 hearing on confirmation of the plan.

The Secaucus, N.J.-based real estate investment, management and development firm filed bankruptcy on June 7, 2022 under Chapter 11 case number 22-14539.

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