MV Realty must file operating reports to use cash collateral: trustee

By Sarah Lizee

Olympia, Wash., Nov. 28 – MV Realty PBC, LLC’s motion for final approval to access cash collateral drew an objection on Tuesday from Region 21 U.S. trustee Mary Ida Townson, according to documents filed with the U.S. Bankruptcy Court for the Southern District of Florida.

The company currently has interim access to the cash collateral, as previously reported.

Townson said she objects to the continued use of cash collateral because the debtors have not filed any monthly operating reports since they filed bankruptcy.

“Without such reports, the court, United States trustee, creditors and other parties in interest have no information regarding whether the debtors have complied with the cash collateral budget or how the debtors are currently operating generally,” Townson said in the objection.

A further hearing is scheduled for Nov. 29.

As previously reported, loan agent Monroe Capital Management Advisors, LLC had objected to the cash collateral use as well.

But Monroe Capital said that the secured parties may be willing to negotiate an appropriate cash collateral arrangement with sufficient adequate protection terms and conditions.

In the motion, the company said it owes Monroe $40 million, and it owes the Goodwood Funds close to $12 million.

The Boca Raton, Fla.-based real estate company filed bankruptcy on Sept. 22 under Chapter 11 case number 23-17590.

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