On September 1, 2026, Five Star Development’s affiliated debtors moved the hearing on their proposed El Paso and Socorro property sale to September 18. They had already selected RC PV Lender I LLC, identified in the sale notice as Madison, as the successful bidder after receiving no other qualified bid. The transaction still requires court approval. Sale-hearing notice; successful-bid notice
The sale process permits Madison to credit bid up to $90 million of its secured claim, subject to protections for senior lienholders and a cash payment requirement if its secured claim is ultimately determined to be smaller than its credit bid. That authorization establishes the bidding framework; the successful-bid notice does not state the amount of Madison’s submitted bid. Bidding procedures order, pp. 12, 23–24
Five Star announced its Chapter 11 filing on November 4, 2025, saying it sought a court-supervised path to completing The Ritz-Carlton Paradise Valley and The Palmeraie, a 122-acre resort, residential and retail development in Arizona. The Texas properties identified in the sale notices are separate from that Arizona project. Company filing announcement;
The court approved bidding procedures on July 14, 2026. Qualified bids were due August 17, with an auction scheduled for August 20 if the debtors received at least two acceptable bids. In their August 19 notice, the debtors reported that Madison submitted the only qualified bid, cancelled the auction and designated Madison’s bid as successful. They said they would proceed with transaction documentation. Successful-bid notice, pp. 1–2
The notice identifies eight properties: three street-address properties and five separately identified land parcels. Both the August successful-bid notice and the September hearing notice use this property list. Sale-hearing notice, p. 2
Property
Location or parcel identifier
1340 Bob Hope Drive
El Paso, Texas
11091 Alameda Avenue
Socorro, Texas
11891 Alameda Avenue
Socorro, Texas
13.3579-acre parcel
Socorro; PID 15511
25.52-acre parcel
Socorro; PID 173179
41.5751-acre parcel
Socorro; PID 48686
4.25-acre parcel
Socorro; PID 392798
1.8027-acre parcel
Socorro; PID 43982
Properties Identified in the Sale Notice
This scope matters when assessing the transaction: the proposed conveyance concerns the listed Texas properties, and the notice does not describe a sale of the Ritz-Carlton resort. Successful-bid notice, p. 2
The $90 Million Credit-Bid Framework
The approved procedures give Madison and its designated acquisition vehicles the right to credit bid up to $90 million against collateral securing Madison’s claim. They also allow Madison, under specified conditions where auction proceeds distributable to it would fall below $90 million, to have its $90 million credit bid deemed the successful bid for all properties. These provisions should not be read as evidence of a $90 million cash purchase price. Bidding procedures, pp. 23–24
Senior liens require cash coverage. A credit bid does not qualify unless it includes enough cash to pay valid, perfected and unavoidable liens on the purchased properties that rank ahead of Madison’s liens. The order therefore preserves a distinction between using secured debt as consideration and supplying cash for senior claims. Bidding procedures order, p. 12
Claim allowance can create a further cash obligation. If a final court order determines Madison’s secured claim is below its submitted credit bid, Madison must pay the difference in cash within five business days. The procedures also limit the specified clawback remedy to monetary damages rather than unwinding the sale and conveyance. Bidding procedures, pp. 23–24
September Hearing Will Address Sale Approval
The August 19 notice rescheduled the sale hearing to September 3. The September 1 notice moved it again, to September 18, 2026, at 2 p.m. Central Time, and set September 15 at 4 p.m. Central Time as the deadline for objections to the sale, including the successful-bid designation. August notice; September notice
This account reflects the sale notices reviewed through September 10, 2026. The next material questions are whether the court approves the transaction and what the final transaction documents establish about consideration, senior-lien payments and closing conditions. Selection of a successful bidder does not itself establish approval or closing. Successful-bid and documentation notice
Bidding procedures order, pp. 12, 23–24 /documents/3eb65051-052b-47b2-9eee-96add436bb90/
Company filing announcement https://www.prnewswire.com/news-releases/five-star-development-initiates-chapter-11-to-protect-the-ritz-carlton-paradise-valley-and-advance-completion-of-the-palmeraie-project-302604768.html
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.