Relevant Document:Notice (Aug. 6)
UMB Bank, the co-successor bond trustee to the senior housing revenue bonds issued by Woodloch Health Facilities Development Corp. in connection with the Inspired Living at Missouri City project, disclosed in an Aug. 6 EMMA notice that a judgment was entered in the state court proceeding brought by Senior Care Living VI LLC, the obligor on the bonds, against the trustee and bondholder representative Preston Hollow Capital.
The notice states that after a 10-day trial, the court on Aug. 4 entered a final judgment in favor of UMB Bank and Preston Hollow against Senior Care Living VI and guarantor Mark Bouldin, jointly and severally, for about $52.6 million. The judgment consists of about $44.7 million in outstanding principal and $7.9 million in accrued interest through Aug. 4. The court further granted the trustee and Preston Hollow $250,000 for attorneys’ fees and litigation expenses.
In conjunction with the final judgment, the court also entered an order appointing a post-judgment receiver, which appointed Michael Moran of Healthcare Management Partners LLC to serve as the post-judgment receiver over the Senior Care Living VI’s property.
Additionally, on July 29, Preston Hollow filed a separate petition against Mark Bouldin and Cassie Bouldin in the District Court of Fort Bend County, Texas, seeking to avoid a certain fraudulent transfer by Bouldin and enjoin Bouldin from unlawfully transferring any other property otherwise available to satisfy the final judgment by the court.
As
previously reported, the action disputed that (i) the trustee and Preston Hollow were entitled to exercise rights and remedies against the obligor under the bond documents; (ii) UMB Bank and TMI Trust Co. were properly appointed as successor trustees; (iii) the trustee and Preston Hollow had standing to assert claims and undertake remedial actions against the obligor; and (iv) Bouldin was liable under the guaranties (which Bouldin also disputed). Senior Care Living VI also asserted affirmative claims and causes of action against the trustee and Preston Hollow for breach of contract, tortious interference and conversion.
The trustee and Preston Hollow filed claims and causes of action against the Senior Care Living VI and Bouldin for breach of contract, appointment of a receiver, and a judgment for amounts due and owing in respect of the bonds, notes and obligations.
Editor’s Note: A prior version of this story incorrectly identified the project to which the bonds at issue related. This story has been updated to reflect that Inspired Living at Missouri City is the relevant project.