Debtor Walden Palms Condominium Association, Inc., filed with the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, a Plan of Reorganization and a Disclosure Statement dated April 10, 2020.
The Plan provides for Effective Date Distributions totaling approximately $348,700, comprised of no more than $100,000 to the City of Orlando, $13,000 in U.S. Trustee Fees, $200,000 for estimated final Approved Professional Fees, approximately $22,600 to satisfy all Allowed Secured Property Tax Claims, an initial Distribution of $5,600 towards Allowed General Unsecured Claims and $7,500 into the Disputed Claims Reserve on account of Class 7.
The Plan provides to satisfy all holders of General Unsecured Claims in Class 6 (which consist of trade creditors and/or Unit Owners with whom the Debtor intends to conduct business again in the future) through the payment of 100% of the Allowed Amount of their respective Claims in 12 equal monthly payments beginning on the Effective Date, with interest at the rate of 2.5% per annum or such other rate as may be approved by the Court.
The Plan provides for treatment of the General Unsecured Claims that are Disputed and subject to setoff due to the Debtor’s affirmative claims against the holders thereof (i.e., LAD and FSR). In the event such Disputed Claims are Disallowed in their entirety, there will be no Distribution to members of this Class (Class 7). In the event the Disputed Claims are Allowed, the holders thereof will receive their Pro Rata share of the total Distribution amount of $150,000, with interest at a rate of 2.5% per annum, payable in 20 equal monthly installments beginning on the Effective Date.
The Plan provides for Equity Interests, if any. As a not-for-profit corporation, the Debtor believes there are no Persons that have, or would be entitled to receive or retain, an Equity Interest in the Debtor as a matter of law. Accordingly, if any Impaired Classes entitled to vote on the Plan does not vote to accept the Plan, the Debtor believes it can confirm the Plan nonetheless. To the extent the Court may determine there may be Persons entitled to receive/retain an Equity Interest in the Debtor, such Persons shall not receive any Distribution under the Plan.
Distributions under the Plan will be funded through: (a) the anticipated balance available in the DIP Accounts on the Effective Date, which is estimated to be approximately $1,500,000; (b) anticipated proceeds from any Rule 9019 Motions/Settlement Agreements that have not yet been approved by the Bankruptcy Court as of the date the Disclosure Statement is filed, estimated to be approximately $292,000; (c) the Plan Units Sale Proceeds, estimated to be $390,000; (d) proceeds from the increased regular monthly Assessments paid by Unit Owners over the life of the Plan, estimated to be $1,500,000; (e) proceeds from the Special Plan Assessments, estimated at $102,000; (f) the proceeds from the anticipated foreclosure and sale of the Singh Units; and (g) the Litigation Trust Proceeds.
In the event the proceeds from the anticipated sale of the Singh Units and the Litigation Trust Proceeds are insufficient to meet all Distributions to be made under the Plan, the Debtor will maintain the increased Regular Assessments for such period of time as may be necessary to fully fund the Rehabilitation Project and otherwise satisfy the Secured Claims of the City of Orlando. In the event the proceeds from the anticipated sale of the Singh Units and the Litigation Trust Proceeds exceed the current estimates, the Debtor will reduce such Regular Assessments back to pre-Petition levels accordingly.
A full-text copy of the Disclosure Statement dated April 10, 2020, is available at https://tinyurl.com/t4hx69t from PacerMonitor at no charge.
Attorneys for the Debtor:
Matthew S. Kish, Esq.
SHAPIRO, BLASI, WASSERMAN & HERMANN, P.A.
7777 Glades Road, Suite 400
Boca Raton, Florida 33434
Fax: 561- 477-7722
About Walden Palms Condominium Association
Walden Palms Condominium Association, Inc., is a nonprofit property management company in Orlando, Florida. Walden Palms Condominium Association sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 18-07945) on Dec. 24, 2018. At the time of the filing, the Debtor was estimated to have assets of $1 million to $10 million and liabilities of $10 million to $50 million. The case is assigned to Judge Cynthia C. Jackson.
The Debtor tapped Shapiro, Blasi, Wasserman & Hermann, P.A., as its bankruptcy counsel; Arias Bosinger PLLC as general association counsel; JD Law Firm, as collections & foreclosure counsel; and Winderweedle, Haines, Ward & Woodman, P.A., as land use counsel.