Relevant Documents:
U.S. Bank Statement in Support
Purchaser Declaration in Support of Sale
Debtor Declaration in Support of Sale
St. Augustine Parish Land LLC Limited Objection
Proposed Draft Sale Order
At a hearing today in the Midtown Campus Properties chapter 11 case, Judge Robert Mark approved the
sale of the debtor’s One College Park student housing project to stalking horse bidder CASL Holdings LLC for $104.1 million. Other than a limited objection and reservation of rights filed by ground lessor St. Augustine Parish Land LLC, the motion was uncontested.
Bond trustee U.S. Bank filed a statement today in support of the sale, stating that as the debtor’s largest stakeholder, U.S. Bank has been committed to helping “further the Debtor’s goal of maximizing the value of any sale.” The trustee says that although it has “clearly aligned” interests with respect to the sale, the sale would serve as the cornerstone of the debtor’s
chapter 11 plan, which U.S. Bank has
argued is unconfirmable on its face.
U.S. Bank notes that the closing of the sale “is not contingent on confirming” the plan, and that the “purchaser has no ability to terminate the Sale agreement in the event that Plan is not confirmed.” Therefore, U.S. Bank says, the sale “constitutes a positive result from the perspective of the Debtor’s creditors who will still realize the value of the Sale in spite of the Debtor’s decision to prosecute a defective Plan to the detriment of its stakeholders.”
At today’s hearing, Paul Battista of Genovese Joblove & Battista, counsel for the debtor, confirmed that plan confirmation is not a condition precedent to closing on the sale. Battista also said that the debtor and U.S. Bank will be engaging in
mediation with retired bankruptcy Judge Robert Gerber next week regarding their disputes.
Battista also addressed the limited objection of St. Augustine Parish Land LLC. He noted that the debtor and St. Augustine, which is a party to a ground lease with the debtor that would be assigned to the purchaser, have agreed on a form estoppel letter that is being finalized that outlines certain ground lease defaults, which would resolve St. Augustine’s issues.