Owner of 18 Sioux Falls apartments declares Chapter 11 bankruptcy
The Chapter 11 bankruptcy documents were filed in the Southern District of Florida Bankruptcy court. They say Tzadik owes hundreds of thousands of dollars to local businesses.
Since buying the apartments starting in 2018, Tzadik has been the subject of hundreds of complaints from insect infestations to security issues. There have been so many complaints even the Mayor got involved and spoke to us in February of last year.
Rural SD hit hard by Noem's cut to FEMA grants
'My office specifically is kind of fed up with all the complaints coming to me,' said TenHaken.
We also spoke with Tzadik Properties owner Adam Hendry last year. He told us the company spent millions of dollars fixing up the properties. The bankruptcy filing does not mean Tzadik will have to sell its properties in Sioux Falls. Chapter 11 bankruptcy allows business owners to reorganize their finances and continue operating while developing a repayment plan.
Secured creditors like banks are more likely to get their money, unsecured creditors like small businesses are usually last in line. According to court documents, the money owed to unsecured creditors includes $82.4 thousand to Sioux Falls utilities, $61.7 thousand to MidAmerican Energy and $52.3 thousand to Home Depot.
And the list of small businesses in Sioux Falls who may not get paid or get partial payment is a long one. For instance, Hendry owes Cressman Sanitation more than $17 thousand, Norberg Paints $9.3 thousand and Xtreme Cleaning Services $8.1 thousand.
Hendry's largest debt is to the Sioux Falls Law firm of Breit and Boomsma at more than 128 thousand dollars. Last month we told you that 3 of Tzadik's apartment properties were put up for sale as the company restructures. Tzadik reports $65 million in assets and $46.89 million in liabilities. The financial platform Bondoro, which tracks bankruptcies, says the filing indicated there will be funds available to pay unsecured creditors, but that remains to be seen.
Last month, Tzadik listed the Parkside Apartments, Sandy Creek Apartments and North Cleveland Apartments for sale, totaling 126 units.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
44 minutes ago
- Yahoo
Pro bull riding league claims Dr. Phil ‘orchestrated' bankruptcy to avoid litigation and ‘jumpstart' new media venture
Weeks after the Professional Bull Riders objected to the bankruptcy proceedings of Dr. Phil McGraw's Merit Street Media, the league filed an emergency motion seeking to compel document production while accusing Dr. Phil of a 'bad faith' Chapter 11 filing. Specifically, the PBR – which claims Merit Street owes it $181 million – alleges that Dr. Phil 'orchestrated this Chapter 11 Case to avoid menacing litigation against PBR and jumpstart' a new media venture, noting that Dr. Phil founded Envoy Media the day before Merit Street filed for bankruptcy. PBR's motion, which was filed on Wednesday in the U.S. Bankruptcy Court for the Northern District of Texas and first reported by analytic firm Debtwire, comes ahead of an August 19 hearing where the court will decide whether to convert the bankruptcy to Chapter 7 and liquidate the assets, dismiss the filing or approve debtor-in-possession financing. The Independent has reached out to attorneys for Merit Street and PBR for comment. While PBR says in the motion that 'it believes that conversion to chapter 7 is in the creditors' best interests and has formally requested that relief from this Court,' it also notes that Trinity Broadcasting Network – formerly Merit Street's largest shareholder – has requested that the filing be dismissed. Merit Street filed a lawsuit last month alleging that TBN left the upstart channel over $100 million in debt and with no choice but to file for bankruptcy. Chapter 7 bankruptcy involves a company selling off its assets, where other types allow groups to reorganize and continue operation. Less than two weeks after Merit Street filed for bankruptcy and was effectively left for dead, Dr. Phil announced that he was launching a brand new media startup called Envoy Media, which would essentially be a carbon copy of the 'anti-woke' Merit Street network. In a press release, Envoy Media said it would include 'live, balanced news, original entertainment programming, and immersive viewer experiences,' as well as shows by McGraw and his friend and Merit Street cohort Steve Harvey. In its motion filed this week, PBR contends that Merit Street and Peteski Productions, the network's majority equity holder that is run by Dr. Phil, are stonewalling to avoid discovery on the case in the hopes of quickly getting financing approved. According to PBR, Dr. Phil 'orchestrated' the Chapter 11 filing in order to evade litigation over unpaid fees and quickly transfer assets to Envoy Media, which was founded the day before Merit filed for bankruptcy and sued Trinity. This is all part of an effort, PBR alleges, for Dr. Phil and Peteski to potentially avoid liability for any additional estate claims by rushing through the process. The motion further notes that PBR has served dozens of document requests to Merit Street and Peteski in recent weeks in order to determine whether the case was filed in bad faith, but has only received a fraction of the documents. Peteski, which has not responded to any of the requests, citing the lack of a protective order. Therefore, PBR is asking the court to compel the debtor and Peteski to immediately produce any withheld discovery, stating that it is necessary to establish whether the bankruptcy filing serves the best interest of all parties involved. On top of that, PBR claims that the delay tactics from Merit and Peteski leave it unprepared to properly question witnesses, specifically Dr. Phil, who is scheduled to be deposed on August 14. 'We haven't yet heard Merit Street's response to these allegations or to the pending motion to convert the case to a Chapter 7 liquidation or dismiss the case entirely,' Sarah Foss, head of legal for bankruptcy analytics and data firm Debtwire, told The Independent. 'The bankruptcy court scheduled a hearing on August 19, where a judge will rule on these issues and whether he thinks the filing was made in bad faith.' Foss added: 'If the case is converted to Chapter 7, then the debtor – Merit Street – will no longer be in control of the company's business and assets. A Chapter 7 trustee will take over and could bring additional litigation against Dr. Phil. If the case is dismissed, then the litigation that was brought prior to the bankruptcy will continue as it was prior to the filing.' Soon after it officially launched in April 2024, Merit Street announced to great fanfare that it had signed PBR to a four-year deal to air bull riding events on the network. However, the league pulled its programming from the channel in November, claiming that Merit had failed to make payments for PBR rights fees. Since then, the company has been seeking $181 million in damages through arbitration, alleging breach of contract. The league also said it suffered 'reputational and financial damage' after it was forced to pull its content due to non-payment and find midseason alternative broadcasting options. 'PBR honored its contract with Dr. Phil's Merit Street Media, delivered on every performance metric, and brought more than one million viewers to the new network. Dr. Phil and his company completely reneged on the deal just five months in,' the league said in a statement last month after it initially filed its objection. Merit, meanwhile, had initially omitted PBR from its list of its 30 largest creditors, even though the chief restructuring officer Gary Broadbent admitted in court filings that the litigation from PBR over the unpaid fees claim was a key reason the company pursued bankruptcy. While PBR CEO Sean Gleason would later be appointed to the official committee of unsecured creditors, the most recent statement from teh group shows that the committee has now dropped to just two members, according to an amended notice filed by the U.S. Trustee's office. Solve the daily Crossword
Axios
2 hours ago
- Axios
Chamath Palihapitiya returns to the SPAC game
The SPAC King is back, crown dented but confidence unbowed. Driving the news: Venture capitalist and podcaster Chamath Palihapitiya has filed to raise $250 million for a new blank-check company called American Exceptionalism Acquisition A. It aims to acquire a company in one of several industries, including energy production or decentralized finance, although SPACs often settle on targets way outside their original purviews. Why it matters: Palihapitiya for several years was the SPAC market's most active and visible sponsor, raising over $6.3 billion in IPOs for 10 of them and buying six companies. He also became a lightening rod for SPAC critics, as all but one of those companies now trade below $4 per share. The exception is SoFi, which closed yesterday at $22.75 per share. Palihapitiya also was involved in PIPEs for several other SPAC mergers — including for Desktop Metal, which later was acquired at a steep discount and recently filed for Chapter 11 bankruptcy protection. Catch up quick: Palihapitiya in 2022 seemed to sour on SPACs, winding down a pair of tech-focused ones after failing to find adequate merger targets. In short, he argued that such companies had failed to adequately reset valuation expectations to a post-ZIRP world. He kept a pair of biotech-focused SPACs open, but those never consummated deals either and eventually shut down. Fast forward: Palihapitiya seems to believe that valuations have finally begun to take their Adderall, and there's some new data backing him up (both in terms of private round valuations and IPO prices vs. last private marks). In the new SPAC prospectus, he also cites a belief that "the biggest gains in the future will come from companies that are involved in fixing the fundamental risks that come from our interconnected global order while reinforcing American exceptionalism." The former Democrat has taken a Trumpy turn, and perhaps wants to return to an asset class where Trump and his wons have increasngly dabbled. Or perhaps he's banking on talk that the SEC will relax Biden-era SPAC oversight. Yes, but: Palihapitiya gives a nod to his past performance problems, bolding a section about improved investor alignment. The new SPAC includes no warrants and a larger-than-normal sponsor promote, although his shares only vest if the post-merger company trades at a 50% premium to the IPO price (i.e., $15 or more). He also notes that this sort of offering is more appropriate for institutions than retail investors, and that any participants should go in with the understanding that there's "no crying in the casino."
Yahoo
4 hours ago
- Yahoo
Iowa City's electric bus fleet is stalled, waits for parts amid manufacturer's bankruptcy
Iowa City's electric transit buses are temporarily sidelined. The city's four Proterra ZX5 battery electric buses are out of service because the company that manufactured the buses, Proterra, filed for Chapter 11 bankruptcy in 2023. Iowa City has been waitlisted for replacement parts and other repairs for at least two years. Proterra was bought out by another California-based electric vehicle company, PhoenixEV, after it filed for bankruptcy. The city is working with PhoenixEV to get the necessary parts and repair support that it needs, Iowa City Transportation Director Darian Nagle-Gamm told the Press-Citizen. More: New projects, hires and programs mark the start of the 2025-26 school year in Iowa City However, PhoenixEV has not provided "a concrete time" for the delivery of parts or repairs, Nagle-Gamm said. Iowa City and electric bus company have brief history Proterra was founded in 2004 and became a publicly traded company in 2021, Reuters reported. A federal grant helped the city pay for about $3 million of the approximately $4 million cost for the Proterra fleet and related charging equipment. The city ordered the buses in 2020 and 2021, well before Proterra filed for bankruptcy. The electric buses debuted in January 2022. More: The University of Iowa launched a program to increase revenue and efficiency. What to know Other cities have struggled with their fleet of Proterra-built buses. The Miami Herald reported in February 2025 that Miami-Dade and Broward Counties purchased more than 100 buses for $126 million, but only "five to seven" were operational. Most broke down within a year, the Herald reported. "Like many communities, we are disappointed by the manufacturing issues with the Proterra buses and the lack of support in resolving ongoing parts and technical issues," Nagle-Gamm told the Press-Citizen. "We are actively exploring all available options to ensure a reliable and sustainable transit system for our community." Iowa City plans to order electric buses from new company Iowa City will continue expanding its fleet of electric transit despite the setbacks with Proterra buses. Climate action is one of Iowa City's values in its latest strategic plan. The city plans to purchase several electric buses from Gillig, the same company that manufactures its diesel buses. Nagle-Gamm said the company is a "long-standing and reliable partner" with Iowa City Transit. Gillig has manufactured vehicles for more than 100 years, according to its website. The company also manufactures battery-electric buses. Ryan Hansen covers local government and crime for the Press-Citizen. He can be reached at rhansen@ or on X, formerly known as Twitter, @ryanhansen01. This article originally appeared on Iowa City Press-Citizen: Iowa City's electric buses are out of service as city awaits repairs Solve the daily Crossword
