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SILICON HILLS CAMPUS: Lender Oversecured; Creditors to Recover 100%

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Silicon Hills Campus, LLC, has proposed a Plan of Reorganization.

The Debtor owns 6801 River Place Blvd, a 158+ acre set of parcels containing more than 1,000,000 square feet of improvements (including lab space, a conference center, office space and a parking garage), an operating power plant capable of providing full electric service to the buildings in the property and generating excess electricity which could be sold for revenue generation to the Debtor, and a separate parcel of land which currently houses a billboard, located in northwest Austin (the “Property”).

According to the Disclosure Statement, the Property has a net book value of $78,592,857 and a scheduled fair market value of $226,900,000.  Tuebor REIT Sub, LLC, assignee to Ladder Capital Finance, LLC, asserts a claim in excess of $61 million.  Under all scenarios, the Lender is significantly oversecured.  As a result, the Debtor has substantial equity in the Property.

The Plan proposes to treat claims as follows:

   * Class 1 Lender, owed $61,950,305, will recover 100%.  The Lender;s Allowed Claim shall be paid at the election of the Debtor either (a) over the time period specified in the Plan or (b) from cash from proceeds of refinancing or sale.

   * Class 2 Allowed Unsecured Claims totaling $442,490 will recover 100%.  Each holder of an Allowed Unsecured Claim will receive payment in full of the allowed amount of each holder’s claim, to be paid 30 days following payment of the Class 1 claim.

All cash necessary for the Reorganized Debtor to make payments pursuant to the Plan shall be obtained from rental receipts, proceeds of refinance, proceeds of a sale, or from Court approved financing, including from an affiliate of the Debtor.

A full-text copy of the Disclosure Statement dated April 6, 2020, is available at https://tinyurl.com/r7dhgmo from PacerMonitor.com at no charge.

Attorneys for the Debtor:

Morris D. Weiss
Mark C. Taylor
William R. “Trip” Nix, III
Evan J. Atkinson
WALLER LANSDEN DORTCH & DAVIS, LLP
100 Congress Ave., Suite 1800
Austin, Texas 78701
Telephone: (512) 685-6400
Facsimile: (512) 685-6417
E-mail: morris.weiss@wallerlaw.com
             mark.taylor@wallerlaw.com
             trip.nix@wallerlaw.com
             evan.atkinson@wallerlaw.com

About Silicon Hills Campus

Silicon Hills Campus, LLC, a single asset real estate, owns a 158+ acre set of parcels containing more than 1,000,000 square feet of improvements, an operating power plant capable of providing full electric service to the buildings in the property and generating excess electricity which could be sold for revenue generation, and a separate parcel of land which currently houses a billboard, located in northwest Austin.

Silicon Hills Campus filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 20-10042) on Jan. 7, 2020. In the petition signed by Brian Elliott, corporate counsel, the Debtor was estimated to have $100 million to $500 million in assets and $50 million to $100 million in liabilities.

Judge Tony M. Davis oversees the case.

The Debtor tapped Waller Lansden Dortch & Davis, LLP as its legal counsel, and Lain, Faulkner & Co., P.C. as its accountant.

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