This is an update from (late) Friday January 11th from the CEO of the rehabilitation trust.
Fred Chin, the CEO, has reported that enough property is closing and will sell by the end of January to pay off the dip-loan and bring us out of bankruptcy.
He also projects sales (but these properties are still open in escrow) by the end of January, that there “may” also be sales that would allow a 3% distribution to investors in January.
So, if everything happens, all the stars line up correctly, the distribution “could” still be in January.
The Debtors are hedging their bets in saying first quarter of 2019.
It seems the large properties are having difficulty in closing.
One large property for example, is dealing with a law suit brought on by a neighbor over trees.
Another property lost it’s bank loan due to the market slowing, the bank lowered the amount it would lend, money needed to complete the unfinished construction.
All seem resolvable, but are delaying things.
Worst case, we have to borrow further to meet the Feb. 7th deadline to exit bankruptcy and not be able to do any distribution until later, i.e. still being in the first quarter, what the Debtors are saying.
Best case, all the properties close on time and a distribution can still be made end of January.
Likely case, enough sells to exit bankruptcy on time without further borrowing, but not enough to do the distribution until later.
I will keep you updated on the sales progress.
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