A disagreement over the secured versus unsecured status of Baptist Foundation of Arizona (BFA) investors has been resolved, subject to court approval, according to a proposed agreement filed in U.S. Bankruptcy Court Sept. 5.
The disagreement had been “the single remaining impediment” to the BFA bankruptcy case proceeding rapidly, according to a status report filed by the BFA in July.
Under the terms of the settlement – which has been agreed to by the foundation, the Unsecured Creditors’ Committee and the Collateralized Investors’ Committee – creditors holding what were offered as secured investments will receive a premium of $13.2 million in addition to the funds all investors will receive on a pro rata basis.
If the assets sell for the $240 million that has been estimated, secured investors will recover about 44 cents for every dollar they invested, while unsecured investors will receive about 31 cents for every dollar invested.
About 7,000 of the 12,000 investors hold secured investments, totaling 76.5 percent of all investor claims.
In other news, the Baptist Foundation of Arizona is proceeding with the sale of key assets. A sale of BFA’s interest in Chaparral Pines in Payson, Ariz., closed for $.6 million.
With a bid by a major homebuilder and real estate developer in hand, BFA has filed a motion for the auction and sale of Pleasant Point, BFA’s largest real estate asset, located north of Phoenix.
In addition, BFA is preparing contracts for bankruptcy court approval and auction of its Kilohana Waikaloa property in Hawaii. (BP)
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