CBRM Realty is in wind-down administration: multiple plans have been confirmed or cases dismissed, a Creditor Recovery Trust is carrying remaining estate causes of action, and the immediate docket fight is over a final decree that would close ten affiliate cases while leaving the lead CBRM case open for reporting, claim administration, fee issues, and trust litigation through the Revised Proposed Final Decree OrderDkt. 832.
The case began on May 19, 2025, after distress in the Crown Capital affordable-housing portfolio converged with insider misconduct, property-level defaults, receivership pressure, and a scheduled May 22 sheriff’s sale of CBRM’s equity interest in Crown to satisfy Spano Investor LLC’s $21.0 million judgment. The first-day declaration described a portfolio burdened by roughly $450 million of property-level mortgage debt, more than $200 million of unsecured notes, and separate judgment and secured-loan claims, with the chapter 11 strategy focused on preserving asset value, funding rehabilitation, marketing assets or restructuring transactions, and reserving proceeds for claims against insiders and other third parties through the Dundon First Day DeclarationDkt. 44.
The restructuring then shifted from emergency stabilization to financed transaction execution. The debtors sought postpetition liquidity from Nexus DIP Financing LLC through a $21.9 million senior secured, superpriority facility, including an interim draw of about $6.45 million, 18% interest, priming liens, adequate protection for prepetition lenders, and milestones for bidding procedures, plan and disclosure-statement filings, auction, transaction approval, confirmation, and effectiveness through the . In parallel, the estates pursued litigation value: CBRM filed an adversary complaint against Spano Investor LLC and Acquiom Agency Services LLC alleging fraudulent-transfer claims, while the broader case outcome now centers on confirmed plans for the Kelly Hamilton and NOLA debtors, dismissal of remaining debtors, and the Creditor Recovery Trust’s prosecution of assigned claims through the .
The near-term posture is administrative but still contested. The debtors, U.S. Trustee, and Creditor Recovery Trustee are negotiating final-decree language over unpaid statutory quarterly fees, joint-and-several liability, reporting obligations, and whether trust assets can be reached before a deficiency notice is filed; the U.S. Trustee objects to the debtors’ latest paragraph 7 language and asks the court to enter its earlier proposed order instead through the U.S. Trustee Response LetterDkt. 833. Separately, the Creditor Recovery Trustee is pressing discovery tied to estate recoveries, including a motion to compel GoDaddy’s compliance with a Rule 2004 subpoena set for hearing on June 18, 2026, with objections due seven days before the return date through the Trustee Motion to Compel Support FilingDkt. 827.