NPHSS, LLC, filed with the U.S. Bankruptcy Court for the Northern District of California a Combined Plan of Reorganization and Disclosure Statement on May 19, 2020.
Holders of Class 2(a) General Unsecured Claims will receive a pro-rata share, likely to result in a 100% recovery of allowed claims, of a fund totaling $1,700,000, created by sale of the Carmel Property. Pro-rata means the entire amount of the fund divided by the entire amount owed to creditors with allowed claims in this class. A lump sum distribution will be made within six months from the Effective Date of the Plan.
Claims filed by Christopher Donohue, Jeffrey Ma, Michael Luu, Ryan Gin, Poh-Ngo Ang, and Ahmet & Birsen Gokcek, are all disputed. These claimants have asserted claims against the Debtor based on promissory notes owed by NP Sand and Sea Partners, LLC, a non-managing member with an 80% interest in Debtor.
The Debtor will retain its current ownership interests, and Franklin Loffer, the Debtor’s managing member, will retain his position as managing member, without compensation. The ownership interests are: NP Sand and Sea Partners, LLC, non-managing member with 80% interest; Paul W. Hiss 2001 Trust, a non-managing member with a 9.3% interest; and the Hiss/Katz Family Trust, a non-managing member with a 10.7% interest.
The Debtor had originally planned to tear down the house situated on the Carmel Property, and construct a bigger more valuable residence. The Debtor obtained preliminary approval from the City of Carmel. The Debtor may not have the time or resources to pursue this option. One year ago the Carmel Property was appraised at $7,400,000. The Debtor expects to market the property for sale at $7,500,000 on June 17, 2020 with a sale at or near its listed value within six months of the Effective Date of Plan confirmation.
A full-text copy of the Combined Plan and Disclosure Statement dated May 19, 2020, is available at https://tinyurl.com/yb797xjb from PacerMonitor at no charge.
The Debtor is represented by:
300 S. First St. #215
San Jose, CA 95113
About NPHSS LLC
NPHSS, LLC, is a single asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)) based in Carmel by the Sea, Calif.
NPHSS filed a Chapter 11 petition (Bankr. N.D. Cal. Case No. 20-50296) on Feb. 19, 2020. The petition was signed by Franklin Davis Loffer, III, Debtor’s managing member. At the time of the filing, the Debtor was estimated to have assets of between $1 million and $10 million and liabilities of the same range. Judge Stephen L. Johnson oversees the case. Stanley Zlotoff, Esq., is the Debtor’s bankruptcy counsel.