DAMIS Holdings and its affiliated debtors remain in an early, cash-collateral-dependent Chapter 11, operating without a postpetition loan while final cash-collateral relief is set for a July 23 hearing. DAMIS began the case on June 4, 2026, as the lead debtor in a coordinated filing involving more than 100 affiliates, with governance transferred to a chief restructuring officer and independent managers under the Chapter 11 petitionDkt. 1. The debtors' portfolio comprises approximately 55 commercial, residential, and industrial properties; the CRO identified roughly $466 million of mortgage obligations, $134 million of merchant-cash-advance debt, $52 million of other unsecured obligations, and $1.1 million of SBA loans.
The filing followed a liquidity shortfall and a default on SIMAD debentures by related debtors, compounded by merchant-cash-advance lenders sweeping bank accounts and directing tenants to pay rent to them. With approximately $10.3 million of cash deemed inadequate for operations and debt service, the CRO began an asset-level review to determine which properties should be retained and which may be sold under section 363, leaving the ultimate restructuring path dependent on that review and near-term liquidity stabilization, as described in the CRO's first-day declarationDkt. 157.
Cash collateral has consequently become the principal near-term contest. North Avenue Capital argued that the debtors' budget lacked transparency and adequate-protection payments for two mortgaged properties in its limited objectionDkt. 192, while First Technology asserted more than $73 million of obligations secured by ten properties and challenged the proposed replacement liens and professional-fee carve-out in its . The court has since authorized interim, budget-governed use of Byline Bank's cash collateral, with weekly compliance reporting, a 15% line-item variance limit, replacement liens, and a section 507(b) claim, according to the . NBT Bank's July 20 objection adds a dispute over using Splashdown Beach cash to support other jointly administered debtors and over protection of scheduled debt service in the . The July 23 hearing is therefore the immediate milestone for determining whether interim authority becomes final and what property-level protections will govern while the debtors complete their retain-or-sell analysis.
