DAMIS Holdings LLC Bankruptcy Case

DAMIS Holdings and its affiliates are operating under interim, budget-governed cash-collateral authority while the chief restructuring officer evaluates which assets to retain or sell; no plan path has yet been fixed. The court's latest lender-specific second interim cash-collateral orders for Busey BankDkt. 457 and Arrow BankDkt. 458 authorize continued use of existing cash collateral, subject to budgets, variance limits, weekly reporting, replacement liens and potential section 507(b) claims.

The enterprise entered chapter 11 on June 4, 2026 through a coordinated filing involving DAMIS and more than 100 affiliates, with restructuring governance installed at the outset under the voluntary petitionDkt. 1. The CRO declarationDkt. 157 attributes the filing to a liquidity shortfall, a default on debentures issued by related SIMAD debtors and collection activity by merchant-cash-advance lenders, including bank-account sweeps and demands that tenants redirect rent. It reported approximately $10.3 million of cash against a capital structure that included about $466 million of mortgage obligations, $134 million of merchant-cash-advance debt and $52 million of unsecured obligations. Against that backdrop, the CRO began an asset-level review of roughly 55 commercial, residential and industrial properties to determine whether individual assets should be retained or sold under section 363, leaving the case on a portfolio-triage and liquidity-preservation track rather than a committed reorganization or sale plan.

The Debtors reset the cash-collateral timetable, converting the July 23 hearing from final consideration into a further interim hearing on proposed third interim orders. The final hearing will instead occur August 12 at 10:00 a.m. ET, according to the cash-collateral hearing notice.

The Debtors will file updated budgets on July 16 covering operations through August 14, and any relief entered at the July 23 hearing will expire on that date regardless of longer periods reflected in the budgets. The change extends the interim cash-collateral regime by roughly three weeks, leaving operating liquidity, budget compliance and adequate-protection terms subject to another round of court review before final approval.

DAMIS Holdings LLC

DAMIS Holdings LLC

Latest development

Cash-collateral final hearing moves to August 12

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