The Textbook and Memory Care Group of Companies (“Group”) are developers, respectively, of student housing residences and accommodations for people suffering from various forms of cognitive impairment. The Group also develops low-rise condominium projects. KSV is the Court-appointed receiver of eight projects owned by the Group, each of which is in the pre-construction phase (the “Receivership Companies”).
The Receivership Companies borrowed approximately $60 million from investors through syndicated mortgage investments. The monies raised were intended to fund development costs for each of the projects.
The primary purpose of the receivership proceedings is to conduct a sale and/or redevelopment process that maximize value for the creditors. The Receiver is also investigating transactions involving the Group, including the potentially inappropriate use of monies raised from investors on each project. The Receiver has commenced litigation against a director and officer of the Textbook entities, which included obtaining a Mareva injunction against him and several related entities.