Renovate America is now in post-confirmation liquidation, with the Liquidating Trustee seeking authority to make first and final distributions on selected claim classes, make no distributions on others, and move toward case closure after a June 9, 2026 hearing on the Liquidating Trustee distribution motionDkt. 1252. The company entered chapter 11 in December 2020 after its HERO PACE-origination business had contracted sharply following 2018 underwriting legislation, litigation and settlement costs, COVID-era origination pressure, and unsuccessful capital-raising efforts; by filing, it had stopped accepting HERO applications, reduced headcount materially, and was pursuing asset sales while preserving the Benji home-improvement finance platform through the cases, as described in the Stone first-day declarationDkt. 12.
The restructuring path was built around liquidity and a sale process rather than a standalone operating turnaround. At filing, the debtors reported approximately $102.5 million of assets and $115.3 million of liabilities, including ING warehouse facilities at RAI and PEFI and a $19 million unsecured Thrivepoint intercompany loan; they also entered chapter 11 with Finance of America Mortgage LLC as stalking horse bidder for substantially all Benji assets. FOA also provided the debtor-in-possession financing package, including $18 million of interim availability and potential aggregate financing up to $50 million, with a portion of the first draw used to satisfy PEFI warehouse obligations, according to the Powell DIP declarationDkt. 14.
The case later shifted into a plan and liquidating-trust administration. The debtors filed a second amended combined disclosure statement and joint chapter 11 plan in September 2021, structured across 12 classes and sponsored by the debtors, through the modified chapter 11 planDkt. 722. Post-confirmation reporting shows the plan was confirmed on September 24, 2021 and became effective on October 6, 2021; as of the quarter ended March 31, 2026, the trust reported $3.8 million of cumulative cash disbursements since the effective date, $4.8 million of cumulative professional fees and expenses, full payment of administrative and secured claims, and an anticipated final-decree application by September 30, 2026 in the post-confirmation reportDkt. 1250.
The current distribution motion would pay priority claims in full, provide 2.1% to homeowner claims, 3.95% to RAI general unsecured and Loya class-action claims, and 23.6% to PEFI general unsecured claims, while making no distribution to certain subordinated, putative class-action, and intercompany classes. A pro se objection by Ronnie Davenport was filed on May 27, 2026, but the available summary contains no substantive detail about the objection’s legal or financial basis in the Davenport objectionDkt. 1256.
