High Valley is in a plan-stage real estate reorganization, with the debtor group seeking to preserve and restructure a portfolio of Washington and Idaho property entities under a January 2024 joint plan rather than pursue a standalone liquidation. The cases began on September 27, 2023, when High Valley Investments and affiliated debtors filed chapter 11 in Delaware, followed by John P. Madden’s first-day declaration describing a portfolio that included rental housing, a self-storage facility, an 86,000-square-foot business park, investment land, and Ketchum, Idaho townhome development assets Voluntary PetitionDkt. 1 Madden First-Day DeclarationDkt. 18.
The filing was driven by litigation and collection pressure tied to Apogee Capital. Madden attributed the restructuring to a dispute between Scott Edwards and Cynthia A. Edwards that produced a June 2023 fiduciary-duty ruling, a July 21, 2023 judgment of $47.4 million against the judgment debtors, and RTC collection activity including charging liens and garnishments that disrupted liquidity and vendor payments Madden First-Day DeclarationDkt. 18. The same declaration described a capital structure anchored by a $15.15 million Bank of America / Wells Fargo mortgage loan secured by the Midland and Portland Avenue properties, additional deed-of-trust obligations of about $1.03 million, and a DJL Investments DIP facility intended to fund operations and the chapter 11 process Madden First-Day DeclarationDkt. 18.
The debtor’s current path is a reorganization plan filed January 9, 2024. The plan classifies claims and interests into seven classes, leaves priority non-tax claims, other secured claims, and prepetition mortgage-loan claims unimpaired, and treats the RTC claim as impaired and entitled to vote Joint Chapter 11 PlanDkt. 214. Effectiveness depends on disclosure-statement approval, approval of the RTC settlement agreement, filing the plan supplement, funding the professional-fee escrow, and entry of a final confirmation order; after emergence, the reorganized debtors would retain their assets and continue as separate entities, with the independent director and Madden remaining in control until the RTC claim is fully satisfied Joint Chapter 11 PlanDkt. 214.
