National Realty Investment’s Chapter 11 plan effective as of Aug. 25

By Sarah Lizee

Olympia, Wash., Aug. 28 – National Realty Investment Advisors, LLC’s Chapter 11 plan went into effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the District of New Jersey.

The plan, which was confirmed on Aug. 10, has the support of the official committee of unsecured creditors following extensive negotiations, as previously reported.

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.

Class 3 consists of all third-party mortgage claims. The liens of the holders of allowed class 3 claims will continue to attach to their respective collateral and proceeds from that collateral after the effective date, subject to avoidance actions, causes of action, and objections to claims asserted by the official committee of unsecured creditors in an adversary proceeding and that have been reserved under the plan, and to the extent the class 3 claims are ultimately allowed.

Class 3 claimholders S3 RE Bergenline and S3 RE 1300 Manhattan agree that the third-party mortgage claims they’ve asserted will be paid in full in cash when the claims become allowed as determined by a final order, and that injunction provisions will apply to S3 RE Bergenline and S3 RE 1300 Manhattan and any affiliates until that final order is entered.

Class 3 claimholder Toorak Capital Partners will be entitled to either: payment of its allowed third-party mortgage claim in full in cash upon the sale of a certain property located in Brooklyn, N.Y., and retain its rights under the prepetition loan and mortgage documents; or the surrender and return of the property.

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

© 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.