KH Funding

This site has been created to provide unsecured creditors with information and to solicit and receive comments from unsecured creditors about the pending chapter 11 bankruptcy case of KH Funding Company 

NOTE: The case-closing motion has been filed in this case. Click HERE to view.

On December 3, 2010, KH Funding Company filed a chapter 11 bankruptcy petition in the Greenbelt division of the U.S. Bankruptcy Court for the District of Maryland (“Bankruptcy Court”). The Honorable Thomas J. Catliota is the presiding bankruptcy judge. The case number is 10-37371.

Committee Appointment

On January 20, 2011, the U.S. Trustee appointed the committee of creditors holding unsecured claims (“Committee”) for KH Funding. The Committee members are: Law Debenture Trust Company of New York, Wells Fargo Bank, Tom Bauer, Ruth Gresser, Michele Marcello, Bernard Repeta and Kevin Willes. The Committee has selected Pachulski Stang Ziehl & Jones LLP (“PSZJ”) as its counsel; the Bankruptcy Court approved PSZJ’s employment on March 11, 2011. Bradford Sandler and Michael Seidl at PSZJ are the principal attorneys responsible for this engagement.  To date, no other committees have been appointed in the case.

Plan Confirmation and Effective Date

On April 17, 2012, the Bankruptcy Court entered an order confirming the Third Amended Joint Plan of Liquidation of KH Funding Company and the Official Committee of Unsecured Creditors Pursuant to Chapter 11 of the Bankruptcy Code (the “Plan”).  The Plan became effective on May 1, 2012.  The Plan, the confirmation order, and the notice of the plan effective date are available under the tab on this page marked “View Files.”

Current Status

As of June 2016, the plan administrator has completed liquidation of the majority of KH Funding’s assets and resolved the bulk of litigation. There are still some challenging assets that the plan administrator is trying to monetize, including, but not limited to, real property; second, third and unsecured loans; participation interests in other loans; and secured claims. Once these assets are monetized, the plan administrator will determine whether and to what extent a claims reconciliation process is appropriate. Absent unexpected or prolonged legal or other proceedings, KH Funding expects to be fully administered by the end of 2016 or the beginning of 2017; however, this is an estimate only, and the actual time could be later than now expected.

For More Information

Please contact Bradford Sandler by email or at 302-652-4100 with any questions, comments, or requests regarding the KH Funding case.  For information on how to gain access to all documents filed in this case (in addition to the selected pleadings and documents available on this site), please click on the “Register as a PACER User” link.