CBRM Realty is in post-confirmation wind-down: the court entered a final decree closing the lead Chapter 11 case on May 22, 2026, while residual recovery-trust litigation continues, including a July 6, 2026 hearing on a trust motion to compel Final DecreeDkt. 835 Adjournment DeterminationDkt. 838.
The case began on May 19, 2025 after distress at the Crown Capital affordable-housing portfolio was traced to alleged insider misconduct, management disruption, defaults, and an imminent May 22 sheriff’s sale of CBRM’s equity interest in Crown to satisfy Spano Investor’s roughly $21 million judgment. The first-day declaration described a capital stack with more than $200 million of unsecured notes, substantial property-level mortgage debt, and additional secured obligations across the Kelly Hamilton, NOLA, and related property groups Dundon First Day DeclarationDkt. 44.
The restructuring path was asset- and litigation-driven. Early case liquidity was directed toward stabilizing properties and preserving value, while the debtors pursued marketing, plan-sponsorship, and litigation-trust strategies for the Kelly Hamilton and NOLA assets. In October, Crown Capital sought a separate Nexus DIP facility of up to about $21.9 million with priming liens, superpriority claims, budget testing, and milestones keyed to a stalking-horse transaction, plan filing, auction, restructuring approval, and plan confirmation, though that later proposal is presented in the record as motion-stage relief rather than the final financing endpoint .
By May 2026, the case had moved from operating restructuring to implementation and cleanup. The court approved closing ten affiliate cases while preserving consolidated administration in the CBRM lead case for claim objections, distributions, recovery-trust prosecution, reporting, and statutory-fee issues Final Decree Closing Affiliate CasesDkt. 834. The remaining live work is principally post-effective-date administration and estate-claim pursuit: the court compelled accounting firms to comply with Rule 2004 subpoenas for the Recovery Trustee, and the next scheduled matter is the July 6, 2026 hearing on a related motion to compel Rule 2004 Subpoena OrderDkt. 836.
