Court sets timeline for JQH lien holders to file objections

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JD Holdings LLC could close on the purchase of the John Q. Hammons estate’s assets this month following a new court ruling.

The U.S. Bankruptcy Court District of Kansas set a May 22 timeline for lien holders to file objections to the $1 billion settlement between the Revocable Trust of John Q. Hammons and JD Holdings, the former hotelier’s largest creditor in an ongoing bankruptcy case.

“If any lien holders fail to timely object by the deadline set forth in the notice, the debtors shall be permitted to sell their assets to JD Holdings,” the May 4 court document, signed by Judge Dale Somers, reads.

Court records show lien holders were mailed the notice today. Among lien holders listed in the notice are Missouri State University the city of Springfield, Chateau on the Lake and developments in multiple other states. 

Earlier this spring, MSU and the city filed objections to the bankruptcy settlement.

In its objection, MSU argued the settlement plan supersedes creditor protections under bankruptcy code. Hammons’ trust is on the line for the unspecified remainder of a $30 million donation toward the $67 million JQH Arena constructed in 2008.

Springfield officials filed an objection because the Hammons trust continues to reimburse the city for $6.1 million in bonds issued in 2002 to purchase and prepare the land where Hammons Field was built. 

Officials with JD Holdings have said both objections were premature and that under its plan, the creditors would be fully paid through the settlement agreement.

“JD Holdings is, in fact, highly motivated to review and pay all allowed claims in a short time period, as memorialized under the settlement, and as evidenced by all of its prior conduct to date,” JD Holdings officials wrote in a Feb. 26 response to MSU, according to court records.

JD Holdings — owned by former JQH partner Jonathan Eilian — seeks to purchase “all or substantially all” of the trust’s assets through a $1 billion buyout in court. That comprises nearly 150 assets, including JQH Hotels’ current portfolio of 35 hotels, such as Chateau on the Lake in Branson and University Plaza Hotel & Convention Center in downtown Springfield.