Platinum Heights is in a post-effective-date wind-down after closing the sale of Heights Hospital on May 30, 2026, with the plan administrator distributing proceeds and resolving the remaining administrative and priority claims. The $28.25 million sale generated approximately $25.43 million in net cash proceeds, according to the May monthly operating reportDkt. 386. The court’s first distribution orderDkt. 382 authorized distributions from $25.15 million of sale proceeds, including $21 million to b1Bank, a $1.5 million professional-fee carve-out and specified payments and reserves, while requiring the plan administrator to retain approximately $2.34 million pending further order.
The single-asset real estate debtor filed Chapter 11 on February 20, 2025 after the loss of the North Houston lease impaired cash flow and led to payment defaults under the loan secured by its Houston medical building. It entered the case with at least $42.7 million in funded debt identified so far, anchored by approximately $28.49 million owed to b1Bank and supplemented by affiliate loans; the disclosure statementDkt. 281 describes both the lease-driven default and the capital structure. An initial sale-backed plan was confirmed in December 2025, but its proposed buyer withdrew before closing, preventing the plan from becoming effective and prompting b1Bank to seek foreclosure authority through its stay-relief motionDkt. 231.
The debtor then pivoted to a new sale process coordinated with affiliated 2026 debtors. To preserve the property during that effort, it sought continued use of b1Bank’s cash collateral for utilities, insurance and repairs through the second cash-collateral motionDkt. 235; the resulting final cash-collateral orderDkt. 267 imposed a weekly budget with a 15% variance limit and granted b1Bank replacement liens. The debtor’s amended plan contemplated a sale or equity transaction, payment of transaction proceeds through a plan administrator and cancellation of existing equity under the amended planDkt. 334, and the confirmation record identified Wood Lane Partners as the sale counterparty in the plan exhibit packageDkt. 343. The case has therefore moved from operating stabilization to monetization and claims administration. Further distributions turn on resolution of retained administrative and priority claims, including CLS Heights’ objection to Dr. Mirza Baig’s asserted $293,949 administrative expense in the administrative-claim objectionDkt. 385.
