The case is now in post-confirmation liquidation, with the ONH Liquidating Trust still administering claims and estate causes of action rather than reorganizing an operating business. The debtors filed Subchapter V cases on July 14, 2023 after investor-funded real estate vehicles tied to Nightingale Properties failed to close on the Atlanta Financial Center and Lincoln Place projects, leaving the independent manager and CRO to investigate depleted bank accounts, investor refund issues, and suspicious prepetition transfers described in the Eric Lee first day declarationDkt. 2.
The cases began as a recovery vehicle for investors. ONH AFC had raised approximately $54 million from 654 accredited investors through the CrowdStreet Marketplace for the Atlanta Financial Center project, while ONH 1601 raised approximately $8.8 million for Lincoln Place; by the time independent manager Anna Phillips was appointed in June 2023, the debtors’ accounts reportedly held only about $125,000 and $1,600, respectively, after nearly all investor funds had been withdrawn. CrowdStreet had provided $400,000 in prepetition funding and the debtors’ early strategy centered on tracing funds, pursuing recoveries, and channeling claims into a liquidating trust, as outlined in the Eric Lee first day declarationDkt. 2.
The debtors moved quickly onto a liquidation path, filing a Subchapter V plan in October 2023 and later a plan supplement before the court confirmed the amended joint liquidation plan on December 14, 2023 through the confirmation orderDkt. 214. Post-confirmation activity has shifted to trust administration and litigation: in June 2024, the Liquidating Trustee filed fraudulent-transfer adversary complaints against several defendants, including JOSMIC entities, the Kathy Berrie parties, and Eli Steinmetz, Levi Cohen, and Zalman Skoblo through the , , and . The active near-term marker is claims reconciliation: the court granted the trustee’s latest extension of the claims objection deadline to October 2, 2026 in the .