Pillsbury successfully confirmed the chapter 11 plan of reorganization for Lynnhill Condominium Association on February 28, 2018 after hearings before the Honorable Wendelin I. Lipp, U.S. Bankruptcy Judge for the District of Maryland. It took just 49 days from filing to obtain confirmation, without any pre-arranged plan support from creditors. 

The plan, among other things, approved the successful bankruptcy auction of the association’s buildings located near the Naylor Road Metro Station in Temple Hills, Maryland, containing 219 residential units. Dragone Realty LLC made the winning bid at the February 20 auction, valuing the property at $17,050,000. The final bid marked a nearly $4 million increase from the January 10 price for the property set by an alternative “stalking horse” bidder and follows three previous unsuccessful attempts by Lynnhill to use chapter 11 to rehabilitate.

The next step in the process of returning the property to its status as a community asset—while avoiding a local government-funded solution for the property’s problems—is to close on the transaction with Dragone by March 15.

“We are very excited to have completed the auction and appreciate the competitive bidding that occurred. We also are pleased that Lynnhill’s plan has been confirmed and look forward to closing the sale with Dragone by March 15,” said Stanley Briscoe, Acting President of the Lynnhill Condominium Association. “Although we expected that the initial $13.2 million bid from the stalking horse would have been sufficient to pay Lynnhill’s creditors in full, the robust auction helps ensure this result and that unit owner recoveries are maximized.”

Pillsbury’s Dania Slim conducted the successful February 20 auction. She, together with colleagues Patrick Potter and Andrew Troop, litigated and eventually negotiated the fully consensual plan approved by the Court. Robin Williams, Executive Vice President with Transwestern, marketed the property before and during the bankruptcy. Also on the Pillsbury team advising Lynnhill are Real Estate partner David Miller and associate Nik Holtan, along with Insolvency & Restructuring senior associate Jason Sharp and associate Andrew Alfano.

“The Plan was confirmed with unanimous support from all 124 unit owners who voted on the plan, all voting secured creditors, all voting unsecured creditors and voting utility providers. The limited objections filed to confirmation also were all resolved consensually, including the objection of Prince George’s County,” Slim said. According to Potter, “Lynnhill is well on its way to being returned as a valuable asset to the local community and economy.”