Glade at Nottingham Villas Vacation Condominium Association, Inc. filed for chapter 11 protection on August 4, 2026, in the U.S. Bankruptcy Court for the Middle District of Tennessee, Cookeville Division, as Case No. 2:26-bk-03736 before Judge Charles M. Walker. The association is the lead debtor in a group of eight affiliated vacation-condominium associations, according to the First Day Declaration filed in support of the petition. The associations are pursuing a court-supervised sale process under Bankruptcy Code section 363(h) to sell the properties free and clear of overlapping ownership interests. The declaration attributes the Nottingham Villas filing to a sustained decline in occupancy and approximately $5.7 million in repairs, capital improvements and renovations that a 2025 reserve study estimated for the property from 2025 through 2030.
Glade at Nottingham Villas Vacation Condominium Association, Inc.
Case number
2:26-bk-03736 (lead case)
Court
U.S. Bankruptcy Court, Middle District of Tennessee, Cookeville Division
Chapter
11 (Subchapter V), jointly administered with 7 affiliated associations
Petition date
August 4, 2026
Judge
Charles M. Walker
Subchapter V trustee
Glen Watson
Debtor's counsel
K&L Gates
Financial advisor
Dunham Hildebrand
Real estate broker
Hilco Real Estate
Proposed claims agent
Stretto (motion pending)
Case Snapshot
Eight jointly administered vacation associations
The eight debtors are Glade at Nottingham Villas Vacation Condominium Association, Wellington Place Condominium Property Owners Association, Stonecastle Property Owners Association, Stonecastle Place Property Owners Association, Kensington Woods Townhouse Association, Laurel Ridge Townhouses Property Owners Association, Oak Knoll Property Owners Association, and Sterling Forest Townhouse Association, each organized as a separate nonprofit association with Articles of Incorporation dating from 1980 to 2003, according to the Joint Administration Motion. The court provisionally authorized joint administration on August 5, 2026, with objections due within 21 days; the order preserves each debtor's separate estate, claims register, and monthly-operating-report obligations. Stonecastle Place and Laurel Ridge are the only two debtors in the group carrying secured debt, held by First Horizon Bank. Each association's own stake in its property, identified in filings as the Association Interest, ranges from roughly 1% to under 4% of total ownership interests; First American Trust and Wyndham Vacation Resorts, Inc. (WVR) hold larger blocks at each property, and the remaining interests are held by individual unit owners under separate contracts, identified in filings as Interval Owners. The motion argues joint administration is warranted because the debtors share substantially overlapping creditor bodies, common professionals, and the potential for combined marketing of the properties, citing joint-administration precedent including In re Las Torres Dev. and In re BH & P, Inc.
Occupancy decline and deferred capital needs
The associations trace their financial distress to a long-term decline in unit occupancy that reduced assessment revenue. At Nottingham Villas, a 2025 reserve study identified approximately $5.7 million in repairs, capital improvements and renovations needed for the property from 2025 through 2030, according to the First Day Declaration. Occupancy across the properties was suspended effective January 4, 2026. At an October 8, 2025 membership meeting, association members voted 1,502 voting interests in favor, representing 99.73% of votes cast, to authorize the board to file chapter 11 and to market and sell the property free and clear of members' interests, with those interests attaching to sale proceeds for distribution under court order.
Sale process under section 363(h)
Because each property carries the split ownership structure described above, the debtors say a sale free and clear of those fractional interests requires bankruptcy court authorization under section 363(h). Hilco Real Estate has been engaged to market the properties, and the debtors have indicated the eight properties could be marketed jointly, evaluating both standalone and combined offers. The declaration states the debtors anticipate filing bidding procedures and may designate a stalking-horse bidder if appropriate. No bid procedures motion, approved sale, or selected buyer has been filed.
Claims administration for roughly 8,800 owners
Stretto has moved to serve as claims and noticing agent across the eight debtors, citing an aggregate of approximately 8,800 unit owners and other notice parties that the associations must reach, according to the Stretto retention motion. Each debtor paid Stretto a $15,000 prepetition advance, and the motion proposes that Stretto's fees be treated as an administrative expense under 28 U.S.C. section 156(c), which would allow payment without a standard fee-application process. Stretto's motion cites its work in prior chapter 11 cases including Sailormen, Francesca's, Saks Global, and the Association of Apartment Owners of Kauai Beach Villas as evidence of its qualifications.
Trustee Glen Watson and Debtor Professionals
The U.S. Trustee appointed Glen Watson of Watson Law Group PLLC as Subchapter V trustee on August 5, 2026; Watson has stated he anticipates seeking compensation at an hourly rate of $475, subject to court approval. K&L Gates serves as debtor's counsel and Dunham Hildebrand as financial advisor, according to the First Day Declaration.
Key timeline
1980–2003: Articles of Incorporation filed for the eight debtor associations.
October 8, 2025: Members vote 99.73% to authorize a chapter 11 filing and property sale.
January 4, 2026: Occupancy suspended across the affiliated properties.
August 4, 2026: Glade at Nottingham Villas Vacation Condominium Association, Inc. and seven affiliated associations file for chapter 11 (Subchapter V) in the Middle District of Tennessee.
August 5, 2026: The court provisionally authorizes joint administration and the U.S. Trustee appoints Glen Watson as Subchapter V trustee; the debtors file a cash-management motion and a claims-agent motion.
Pending: The 21-day joint-administration objection period, Stretto's claims-agent retention, and a sale timeline under section 363(h) remain unresolved.
Frequently Asked Questions
Who is the lead debtor, and what are the other seven cases? Glade at Nottingham Villas Vacation Condominium Association, Inc. is the lead case, Case No. 2:26-bk-03736, in the Middle District of Tennessee. The seven affiliated debtors are Wellington Place Condominium Property Owners Association, Stonecastle Property Owners Association, Stonecastle Place Property Owners Association, Kensington Woods Townhouse Association, Laurel Ridge Townhouses Property Owners Association, Oak Knoll Property Owners Association, and Sterling Forest Townhouse Association.
Will the properties be sold? The debtors have stated an intent to seek court authorization to sell the properties free and clear of members' fractional interests under section 363(h), with proceeds distributed under court order. No bidding procedures, stalking-horse designation, or sale date had been filed as of the first-day filings.
Who is handling claims and owner notices? Stretto has moved to serve as claims and noticing agent for all eight debtors, covering an estimated 8,800 unit owners and other notice parties. The motion remained pending as of the first-day filings.
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.