The Chapter 11 trustee for Greeley Flats, DST has filed a motion seeking court approval to dismiss the Colorado real estate company's bankruptcy case following the successful $18 million sale of substantially all its assets to Fannie Mae, according to court documents filed on April 4.
Bryan Perkinson, the court-appointed trustee, argues in the 14-page motion that dismissal is in the best interest of creditors since the debtor's estate "will no longer conduct any business and will have insufficient remaining assets" to satisfy claims after the court-approved sale closed on April 1, 2025.
"Quite simply, it is impossible for the Trustee to rehabilitate the Debtor's business because there is no business or property remaining to reorganize and there is insufficient funding for the Trustee to pursue any potential litigation claims," the motion states.
The case, filed in the U.S. Bankruptcy Court for the District of Colorado (Case No. 24-11573-KHT), began when Greeley Flats filed for Chapter 11 protection on April 3, 2024. Court records show that approximately five months later, on September 11, 2024, the court directed the appointment of a Chapter 11 trustee, with Perkinson officially taking on the role by September 23.
The sale process culminated in a March 7, 2025 auction where Fannie Mae emerged as the winning bidder with what the trustee described as the "baseline bid" – a $16.95 million credit bid plus approximately $1.01 million in cash, for a total purchase price of $17.96 million. According to court documents, none of the other six qualified bidders exceeded Fannie Mae's offer.
"At the conclusion of the Auction, the Qualified Bidder with the second highest and best Qualified Bid agreed (with the consent of the Trustee and Fannie Mae) to be released as a Backup Bidder, given the assurances Fannie Mae would close," the motion explains. The court approved the sale on March 20, and it closed on April 1.
In his motion, Perkinson cites Section 1112(b) of the Bankruptcy Code, which provides for mandatory dismissal when cause exists and dismissal is in the best interests of creditors. The trustee argues both conditions are met because:
- There is a "substantial or continuing loss to or diminution of the estate and the absence of a reasonable likelihood of rehabilitation"
- Administrative claims continue to accrue each day the case remains open
- A plan is not feasible as no assets remain to be reorganized
- Dismissal is preferable to conversion to Chapter 7, which would only generate additional administrative expenses
"The Trustee conducted a robust sale process that maximized the value of those assets and liquidated them in an orderly fashion, and has demonstrated a concerted effort to balance the interests of the various interested parties in this case," according to the motion.
If granted, the dismissal would be subject to several conditions, including payment of all U.S. Trustee fees, filing of all required monthly operating reports, and payment of professional fees according to an agreed "wind-down budget" between the trustee and Fannie Mae. The trustee has requested that the court retain jurisdiction solely to rule on professional fee applications, which would be filed within 30 days of dismissal.
The motion specifies that court orders previously entered in the case, including those related to the sale transaction, would not be disturbed by the dismissal.
Attorney Matthew T. Faga of Markus Williams Young and Hunsicker LLC, who represents the trustee, declined to comment beyond the contents of the public filing. A hearing date for the motion has not yet been scheduled.
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Link to full document: Chapter 11 Trustee's Motion for Entry of an Order Dismissing Chapter 11 Case