BRD Land & Investment, together with affiliates BRDL Warden Station, LLC and BRDL Warden Station Holding Co, LLC, filed a Disclosure Statement and Joint Plan of Liquidation on April 21, 2026, in the United States Bankruptcy Court for the Western District of North Carolina, Charlotte Division. The jointly administered Chapter 11 cases, filed under Case No. 26-30215, propose an orderly wind-down of the debtors' real estate holdings — appraised at approximately $50.8 million — and project a recovery of approximately 16% for general unsecured creditors holding an estimated $108 million in claims.
Company Background and Business Operations
BRD Land & Investment is a South Carolina partnership that operated as a land entitlement and permitting company, focusing on the acquisition of raw, undeveloped parcels for sale to national and regional homebuilders as shovel-ready projects. The company's operations encompassed due diligence activities including surveys, geotechnical and environmental studies, coordination with municipal planning departments for rezoning and site plan approvals, and engagement with engineering firms to complete the permitting process.
The two affiliated debtors served project-specific functions within BRD's enterprise. BRDL Warden Station, LLC holds title to real property in Horry County, South Carolina, associated with BRD's Warden Station project. BRDL Warden Station Holding Co, LLC serves as the sole member and a manager of Warden Station, LLC, with BRD as Holding Co's own sole member.
BRD is owned through a collection of investment entities and trusts, with BRD Land & Investment Management, LLC serving as managing partner. The debtors' primary assets consist of ten owned real estate parcels as well as contractual rights to purchase additional properties contingent on the completion of entitlement work.
Events Leading to Bankruptcy
The debtors operated profitably until 2025, when the residential development industry experienced a decline in first-time homebuyer activity at levels not seen since the 2008 financial crisis, according to the disclosure statement.
This market contraction caused homebuilders to cancel or renegotiate land purchase agreements with the debtors, resulting in the termination of 13 projects and the nonviability of an additional 7 projects. The combined effect was a reduction in total projected pipeline gross revenue of approximately $390 million in 2025.
Simultaneously, DLP Lending Fund, LLC and DLP Capital Lending CH, LLC — the debtors' secured lender holding approximately $18 million in debt secured by deeds of trust on properties in Leland, North Carolina; Vance, South Carolina; and Conway, South Carolina — demanded accelerated principal payments as a condition to allowing the debtors to close on pending sales encumbered by DLP's liens. The combination of lost revenue and lender demands produced a liquidity crisis that prompted the debtors to file voluntary Chapter 11 petitions on February 24, 2026.
Following the petition date, the debtors used the bankruptcy process to market both their owned real property and their executory contracts to purchase additional real property, and to identify potential stalking horse bidders. The debtors determined that reorganization was not feasible and that an orderly liquidation through a Liquidating Agent would maximize value to creditors.
The Proposed Liquidation Plan
The Joint Plan of Liquidation, filed concurrently with the disclosure statement, provides for the sale of the debtors' owned real property and the assignment of executory contracts through a court-appointed Liquidating Agent, with net proceeds distributed to creditors according to the Bankruptcy Code's priority scheme.
Real Property Portfolio
The debtors' ten owned properties, as appraised on November 1, 2025, are listed in the table below. The Old Town Creek / Pinewood property had a pending sale as of the filing date.
| Property | Appraised Value (Nov. 1, 2025) | High Est. Realized Value | Low Est. Realized Value |
|---|---|---|---|
| Warden Station (Conway, SC) | $26,775,000 | $12,000,000 | $10,500,000 |
| Clark Tract (Vance, SC) | $9,900,000 | $3,000,000 | $2,600,000 |
| Old Town Creek / Pinewood (Leland, NC) | $8,900,000 | Sale Pending | Sale Pending |
| Yarbrough Farm | $1,575,000 | $825,000 | $800,000 |
| Riverview | $1,500,000 | $500,000 | $425,000 |
| Merritt Farms | $810,000 | $150,000 | $125,000 |
| Bricklanding | $635,000 | $350,000 | $285,000 |
| China Grove / Liberty Grove | $300,000 | $290,000 | $210,000 |
| Nabors on Third | $262,000 | $200,000 | $150,000 |
| McGill Meadows | $190,000 | $150,000 | $100,000 |
| Total | $50,847,000 | $17,465,000 | $15,195,000 |
Liquidating Agent
Upon confirmation, a Liquidating Agent — to be identified by notice filed at least 14 days before the deadline to object to confirmation — will assume sole, autonomous decision-making authority over the debtors and Wind-Up Debtors. The Liquidating Agent will oversee asset sales, prosecute avoidance actions, object to claims, and administer all wind-up affairs through case closure. The Liquidating Agent is compensated at an hourly rate and is not entitled to a commission on asset sales.
Liquidation Budget
The cash collateral and liquidation budget, covering April through December 2026, projects beginning cash of approximately $1.19 million and ending cash of approximately $16.76 million. Revenue sources include a McGill sale ($2.0 million in April 2026), contract assignments ($1.0 million total), and property sales ($13.7 million total). The budget projects an estimated payout of 16% to unsecured creditors.
Best Interests Analysis
The debtors' hypothetical Chapter 7 liquidation analysis estimates that a trustee-administered liquidation would yield realized values of $15.2 million to $17.5 million on owned property. After satisfying the $14.6 million secured portion of DLP's claims, deducting estimated liquidation costs of 7%, and deducting up to $480,000 in Chapter 7 and Chapter 11 administrative costs, the net amount available to general unsecured creditors in a hypothetical Chapter 7 case would range from approximately $1.4 million (1% recovery) to approximately $3.3 million (3% recovery). The Chapter 11 plan projects a 16% recovery by comparison.
Treatment of Claims and Interests
The plan classifies claims and interests into eight classes, all of which are impaired and entitled to vote:
Class 1 — Allowed Secured Tax Claims: Paid in full in cash on the effective date, on such other terms as may be mutually agreed between the holder and the Wind-Up Debtors, on the distribution date, or upon closing of the relevant property sale, at the Wind-Up Debtors' option.
Classes 2, 3, and 4 — DLP Secured Claims (Warden Station, Clark, Pinewood): Each DLP secured claim is paid from the net sale proceeds of its respective collateral property at closing. DLP retains its liens at existing priority until each claim is satisfied. Any remaining deficiency is treated as a general unsecured claim in Class 7.
Class 5 — Other Secured Claims: Paid from net sale proceeds of collateral upon closing. Remaining deficiencies treated in Class 7.
Class 6 — Allowed Priority Claims: Paid pro rata from Net Estate Cash on the distribution date, subject to higher-priority distributions.
Class 7 — Allowed General Unsecured Claims: Holders receive pro rata distributions of remaining Net Estate Cash following satisfaction of Class 6 claims. The estimated recovery is approximately 16%. General unsecured liabilities are estimated at $108,043,297, including approximately $74 million in unsecured promissory notes owed to more than 100 lenders and approximately $9 million in ordinary course business obligations.
Class 8 — Equity Interests: Holders retain equity interests in the Wind-Up Debtors and receive distributions of any remaining Net Estate Cash after all higher-priority claims are satisfied. If higher-priority claims are not fully satisfied, equity interests will be cancelled and the Wind-Up Debtors dissolved under applicable law.
Administrative and Priority Tax Claims are not classified under the plan and are to be paid in full in cash as soon as practicable after the later of the effective date, the date on which sufficient cash becomes available, or the date the claim becomes allowed.
Effects of Confirmation and Plan Protections
Upon the effective date, all assets of the debtors vest in the Wind-Up Debtors free and clear of all claims, liens, interests, and encumbrances, except as otherwise provided by the plan or the confirmation order.
The plan includes a permanent injunction barring all persons from collecting, prosecuting, enforcing, or otherwise asserting any pre-effective date claims against the debtors or Wind-Up Debtors, with limited exceptions for distributions expressly due under the plan and claims not cancelled by the plan.
The plan also provides for exculpation of the debtors and their present and former employees, representatives, counsel, and professionals from claims arising out of the bankruptcy case, excluding willful misconduct or gross negligence.
Key Dates and Deadlines
| Date | Event |
|---|---|
| February 24, 2026 | Petition date; voluntary Chapter 11 filings |
| March 2, 2026 | First Day Motions heard and granted (except cash collateral motion) |
| March 5, 2026 | Interim Order Authorizing Use of Cash Collateral entered (Docket No. 45) |
| March 17, 2026 | Official Committee of Unsecured Creditors established (Docket No. 69) |
| April 1, 2026 | Schedules of Assets and Liabilities and Statement of Financial Affairs filed (Docket Nos. 15, 17, 95) |
| April 8, 2026 | Court orally granted motions to transfer property free and clear of liens and to assume and assign executory contracts |
| April 21, 2026 | Disclosure Statement and Joint Plan of Liquidation filed (Doc 137) |
| April 22, 2026 | Section 341 Meeting of Creditors; hearing on second interim cash collateral period, if necessary |
| July 7, 2026 | Bar date for non-governmental entity proofs of claim |
| 45 days post-Effective Date | Administrative Claims Bar Date |
| 60 days post-Effective Date | Deadline for Liquidating Agent to file objections to claims |
| 30 days post-Effective Date | Deadline for setoff requests against Debtors' vested assets |
| TBD | Confirmation hearing; ballot deadline; deadline for objections to confirmation |
Tax Considerations
Pursuant to Section 1146 of the Bankruptcy Code, transfers of property under the plan — including the execution of deeds or other instruments — are exempt from stamp taxes and similar transfer taxes. The disclosure statement notes no potential material federal tax consequences to the debtors. Creditors are advised to consult their own tax advisors regarding the income tax consequences of distributions received under the plan.
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