Recently, HHDU shareholder Russell W. Mills succeeded in having a bankruptcy case transferred from a Delaware bankruptcy court. HHDU represented the lender in a single asset real estate debtor case, originally filed in the United States Bankruptcy Court for the District of Delaware in Wilmington. Russell convinced Chief Bankruptcy Judge Kevin Gross to transfer the case to bankruptcy court in Abilene, Texas. It is rare to see a Delaware bankruptcy judge transfer a case out of their court, and this unusual move was reported on nationally. After the case was transferred, Russell then succeeded in having the case dismissed.
When the property was posted for foreclosure, the borrower then filed a lawsuit in state court and obtained a temporary restraining order preventing the foreclosure. Shareholder Scott Seifert and associate attorney Austin Evans then obtained an order denying the borrower’s application for a temporary injunction and the lender foreclosed the property and obtained its collateral. The client is now operating the property.
CASE: Rehoboth Hospitality, LP, No. 11-53418