The Situation
BRD Land & Investment commenced a Chapter 11 bankruptcy case on February 24, 2026, in the United States Bankruptcy Court for the Western District of North Carolina. The case involves a substantial multistate real estate development portfolio, including approximately 30 residential projects, eight commercial projects, and more than 14,000 potential residential lots across key southeastern markets.
The case remains in its early procedural stages, with the Bankruptcy Court having already addressed first-day operational matters, including joint administration, utilities, payroll, taxes, maintenance of accounts, and use of cash collateral. Professionals have also been approved for employment in connection with the administration of the case.
The portfolio is now being marketed through a court-supervised sale process. Iron Horse Auction Company, Iron Horse Commercial Properties, and Great Neck Realty Company have been retained in connection with the marketing and sale effort, and additional information regarding sale procedures and timelines is expected to be distributed as the process develops.
Parties interested in specific projects should continue to monitor this website for updates and review preliminary materials as additional diligence information in the documents section as it becomes available.
Current Documents Section Contents
1. Nondisclosure Agreement - also available in Docusign format as requested.
2. Filed DEBTOR’S MOTION FOR AN ENTRY OF AN ORDER (I) AUTHORIZING AND APPROVING PROCEDURES TO ASSUME AND ASSIGN EXECUTORY CONTRACTS AND (II) GRANTING RELATED RELIEF
These are the proposed bid procedures up for hearing on April 8, 2026.
PROPOSED ASSUMPTION AND ASSIGNMENT PROCEDURES
- The Debtor seeks the entry of an Order authorizing and approving the following procedures for the assumption and assignment of the LPAs (the “Procedures”):
- Assumption and Assignment Notice: The Debtor shall file one or more notices, substantially in the form attached hereto as Exhibit A, indicating the Debtor’s intent to assume and assign one or more of the contracts pursuant to section 365. The Assumption Notice shall set forth the following: (i) each LPA to be assumed and assigned (the “Transaction”); (ii) the name and address of each counter-party to the LPA (the “Assumption Counterparty”); (iii) the identity of the proposed assignee of each LPA (the “Proposed Assignee”); (iv) the purchase price (the “Proposed Purchase Price”) to be paid by the assignee to the Debtor for the assignment of the LPA; (v) the proposed cure amount, if any, for such LPA; and (vi) any other material information related to the assumption an the assignment.
- Service of the Assumption Notice. The Debtor will file the Assumption Notice and serve it by (i) overnight delivery (and email, if known) upon each Assumption Counterparty and Proposed Assignee along with the Assumption Counterparty’s and Proposed Assignee’s counsel, if known, and (ii) first-class mail or email upon the Master Service List.
- Objection Procedures. Parties objecting to a Transaction, including as to the cure amount, as applicable, must file and serve a written objection so that such objection is filed with the Court on the docket of the Debtor’s chapter 11 case no later than fourteen (14) days after the date that the Debtor filed the relevant Assumption Notice. Should an objection be timely filed and served, the Debtor shall work to resolve the objection, but failing such resolution, the Debtor shall request the Court to schedule a hearing on such objection and shall provide at least fourteen (14) days’ notice of such hearing to the applicable Assumption Counterparty.
- Bid, Auction and Selection Procedures. To appropriately market test the Proposed Purchase Price and to provide additional parties an opportunity to place their own bids on any Transaction (the “Market Test Procedures”), the Debtor proposes to establish procedures so that it may maximize the value of its LPAs. The Debtor’s proposed Market Test Procedures are as follows:
- Stalking Horse Bid. The Proposed Assignee shall be the Stalking Horse Bidder while the Proposed Purchase Price shall be a Stalking Horse Bid. The Stalking Horse Bid shall be considered a Qualified Bid without regard to any of the requirements or conditions set forth herein and without any other or further action by the Stalking Horse Bidder. The Stalking Horse Bidder may participate in any Auction as defined below.
- Bid Procedures. No later than on the fourteenth (14th) day following the filing of the Assumption Notice (the “Bid Deadline”), parties, if any, interested in overbidding on the Transaction in an amount greater than the Proposed Purchase Price (a “Bidder”) must (a) notify in writing by email or letter: the Debtor’s counsel, Matthew Tomsic, [email protected]; the Debtor’s Chief Restructuring Officer, Andy Barbee, [email protected]; and the Debtor’s brokers, Will Lilly, [email protected], and Rob Tramantano, [email protected] of their interest (an “Interest Notice”); (b) must execute non-disclosure agreement in form and substance satisfactory to the Debtor unless the Bidder has previously executed a non-disclosure agreement; and (c) submit a Qualified Bid, which must contain signed, definitive irrevocable offer to consummate the Transaction with the following requirements: (i) provide the cash purchase price; (ii) will not be subject to any (a) financing contingency, (b) contingency related to the completion of unperformed due diligence, or (c) contingency related to the approval of the bidder’s board of directors or other internal approvals or consents; (iii) provide that the bidder’s offer is irrevocable until the closing of the Transaction if such bidder submits the Prevailing Bid (as defined below); (iv) provide that the bidder shall forfeit its Deposit (as defined below) in the event that it submits the Prevailing Bid and fails to close the purchase in accordance withs such bid; and (v) provides that it will close Transaction on or before the fifteenth (15th) day following the date that an order authorizing the Transaction is entered by the Bankruptcy Court and becomes a final, non-appealable order.[1] A Qualified Bid must also include (vi) a cashier’s check in an amount equal to five percent (5%) of the purchase price set forth in the Qualified Bid or $25,000, whichever is greater and which shall become the deposit if the Bidder submits the Prevailing Bid or the Backup Bid (the “Deposit”); and (vii) be accompanied by evidence satisfactory to the Debtor in its reasonable discretion that the bidder is willing, authorized, capable of and qualified financially, legally and otherwise to unconditionally perform all obligations contemplated herein. In the event the Bid Deadline falls on a weekend or a holiday, then it shall be moved to first business day on the calendar.
- Auction Procedures. The Debtor shall schedule an auction or final bid event (the “Auction”) within twenty-one (21) days following the Bid Deadline, or if that date falls on a weekend, the first business day on the calendar. The Auction shall be conducted by the Debtor’s brokers in a format of the brokers’ choosing. Brokers shall notify the Stalking Horse and each party that submitted a Qualified Bid of the format of the Auction, in addition to the highest Qualified Bid received, in advance of the Auction. The Auction will continue in the manner determined by the brokers provided, however, additional bids must be Qualified Bids and must be made in higher increments of at least $25,000 (the “Minimum Bid Increment”). The Debtors and Brokers may, at their discretion, adjust the Minimum Bid Requirement during the Auction.
- Selection of the Prevailing and Backup Bids. At the conclusion of the Auction, the Debtor shall: (a) announce the highest and best Qualified Bid (the “Prevailing Bid”) and the next highest or otherwise best Qualified Bid (the “Backup Bid”); and (b) file a notice with the Bankruptcy Court identifying the Prevailing Bid and the Backup Bid; and (c) file a notice with the Bankruptcy Court upon closing and thereafter provide an order to the Bankruptcy Court for entry authorizing the assumption and assignment. Should any bidder submit the Prevailing Bid or the Backup Bid in an amount greater than its first Qualified Bid, then such bidder shall provide to Debtor’s counsel the supplemental Deposit required by the Prevailing Bid or Backup Bid within one (1) business day.
- Form Assignment Agreement. In connection with the Auction Procedures, the Debtor has prepared a form of asset purchase agreement (the “Form Assignment Agreement”), which is attached hereto as Exhibit B.
- No Objection Filed or Qualified Bid Received. If no objection the Transaction is timely filed and if no Qualified Bid is received, then the Debtor shall submit to the Court a proposed order authorizing the assumption and assignment of such LPA to the Stalking Horse, and each LPA shall be assumed and assigned as of the date of entry of the order approving such assumption and assignment. The proposed cure amount shall be binding on all counterparties to such LPA, and no amount in excess thereof shall be paid for cure purposes.
Footnotes
[1] In addition to the requirements, the Debtor may determine in its sole discretion that any bid is a Qualified Bid.