Court Order for Abandonment of Collateral and Relief from Stay in Kaja Holdings LLC Bankruptcy Cases

Administrative Information and Legal Jurisdictions

The United States Bankruptcy Court for the Southern District of New York maintains jurisdiction over the Chapter $7$ bankruptcy proceedings involving Kaja Holdings LLC, Kaja Holdings 2 LLC, and Alan Investments III, LLC, collectively referred to as the Debtors. These cases, along with MO Seven LLC under Case No. $25-11534-DSJ$, are jointly administered under Lead Case No. $25-11551-DSJ$. Jurisdictional authority is derived from $28\,\text{U.S.C. §§ 157}$ and $1334$, as well as the Amended Standing Order of Reference dated January $31$, $2012$. Proper venue in this district is established pursuant to $28\,\text{U.S.C. §§ 1408}$ and $1409$. The court evaluated the motion filed by DLP Lending Fund, LLC, hereafter referred to as "DLP," which sought the abandonment of real estate collateral and relief from the automatic stay. The presiding judge, Hon. David S. Jones, U.S.B.J., granted the requested relief after determining that the legal and factual bases established just cause.

Motions and Relief Granted for Secured Creditor DLP Lending Fund, LLC

The court issued an order granting DLP's motion to compel the abandonment of real estate collateral and related property pursuant to $11\,\text{U.S.C. § 554(b)}$. Based on a preponderance of evidence, the court found that the real estate properties identified as "Collateral" are burdensome and of inconsequential value to the Debtors' estates. The Trustee was directed to abandon this collateral immediately, with the effectiveness of such abandonment being immediate under Bankruptcy Rule $6007(b)(3)$. Additionally, the court found "cause" for stay relief under $11\,\text{U.S.C. § 362(d)(1)}$, noting that the Debtors possess no equity in the collateral and have no intent to reorganize under $11\,\text{U.S.C. § 362(d)(2)}$. The automatic stay under $11\,\text{U.S.C. § 362(a)}$ is vacated regarding DLP's interests and the Receiver's right to administer the properties.

Revesting of Collateral and Role of the Receiver

The collateral is deemed immediately abandoned to and revested with Trigild IVL, LLC, identified as the Receiver. The court recognizes the Receiver as the entity with a prepetition possessory interest in the collateral, as established by the Order of the Common Pleas Court of Northampton County, Pennsylvania, dated December $12$, $2022$. The scope of property abandoned and revested includes not only physical real estate but also associated consumer lease options, agreements for deed, installment land contracts, and similar consumer contracts, regardless of whether they were explicitly listed on the Debtors' original schedules. These contracts were also determined to be burdensome and of inconsequential value to the bankruptcy estates. The Receiver is excused from compliance with the requirements of $11\,\text{U.S.C. § 543}$ nunc pro tunc to the dates the Debtors filed their petitions.

Procedural Requirements and Notice Provisions

The court waived any stay of enforcement under Rule $6004(h)$, giving stay relief immediate effect. The Debtors are mandated to amend their schedules within $21$ days of the order's entry to remove improperly scheduled properties or take other measures to correct the record on their respective dockets. Legal notices regarding the motion were issued on October $10$, $2025$, by Joao F. Magalhaes of Eckert Seamans Cherin & Mellott, LLC. A hearing was scheduled for November $6$, $2025$, at $10:00$ a.m. Eastern Time via Zoom for Government. Any objections to the motion were required to be filed by October $30$, $2025$, in accordance with Local Rule $6.1(b)$, which specifies that opposing affidavits must be served within $14$ days of the moving papers and replies within $7$ days of responsive papers.

Comprehensive Schedule of Collateral Properties

Schedule $1$ lists relevant properties for Kaja Holdings, including $515$ Euclid Avenue, Beloit, WI $53511$; $632$ Spring Ave, Florence, WI $54121$; $206$ East Park Street, Sylacauga, AL $35150$; $2322$ Willowrow Avenue, Canton, OH $44705$; $613$ East Cross Street, Summerfield, OH $43788$; and $315$ North Cherokee, Taylorville, IL $62568$. Unscheduled properties for Kaja Holdings include $430$ Chatham Street, Union City, IN $47390$ and $203$ North Oak Street, Herscher, IL $60941$. Schedule $2$ for Kaja Holdings $2$ includes $15370$ Morgan Lane, Wilmer, AL $36587$; $321$ Wheeler Street, Sylacauga, AL $35150$; $1515$ South Westmoreland Drive, Orlando, FL $32805$; $20$ East Winthrop Street, Avon Park, FL $33825$; $1588$ Edna Place, Macon, GA $31204$; $427$ Carolina Avenue, Warner Robins, GA $31093$; $4102$ Fernway Drive, Anderson, IN $46013$; $301$ Jenkins Street, Fairmont, NC $28340$; $366$ Ann Spaulding Road, Clarkton, NC $28433$; $2678$ Community Road, Bennettsville, SC $29512$; $2816$ Truman Street, Columbia, SC $29204$; $83$ East $7$th Street, Greenville, SC $29611$; $59$ Lone Oak Road, Palmyra, VA $22963$; $1111$ Parkview Drive, Griffin, GA $30224$; W$837$ State Road $21$, Berlin, WI $54923$; $501$ Mansion Street, Hamlin, WV $25523$; $34$ Grove Street, Palmer, MA $01069$; $1652$ Appleton Street, Baltimore, MD $21217$; $212$ $6$th Avenue, Decatur, AL $35601$; Northwest $314$ Oglethorpe Street, Dothan, AL $36301$; $9331$ South Honeysuckle Farm Trail, Tucson, AZ $85735$; $1050$ North Lovekin Boulevard $13$, Blythe, CA $92225$; $6329$ Gresham Street, Union City, GA $30291$; $9615$ Cedar Grove Road, Fairburn, GA $30213$; $723$ East Victoria Street, Hartford City, IN $47348$; $818$ North Wabash Avenue, South Bend, IN $46614$; $199$ Wilkerson Road, Clarksville, VA $23927$; $101$ Tappel Drive, Daleville, AL $36322$; $185$ Houston Street, Frisco City, AL $36445$; $306$ Bula Road, Troy, AL $36081$; $705$ Padenreich Avenue, Gadsden, AL $35903$; $542$ Roseland, West Helena, AR $72390$; $13121$ Parkwood Street, Hudson, FL $34669$; and $1080$ Highway $341$ South, Barnesville, GA $30204$.