THE RAPID CITY SENTINEL

A Readers Guide To the Adam Hendry/Tzadik Bankruptcy Cases to Date

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by

DawnSherine Bernard
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The Hendry/Tzadik Docket

Rapid City SD – The Sentinel has covered Adam Hendry’s Tzadik real estate empire hearing by hearing, filing by filing, since late July — sixteen pieces and counting. This is the first time we’re stepping back to lay out the whole picture in one place: four separate bankruptcy cases, dozens of LLCs, and courtrooms in South Dakota and Florida alike.

What is Going On

Adam M. Hendry is a Florida-based landlord who, through his company Tzadik Management Group and dozens of affiliated LLCs, owns or owned residential and commercial properties across South Dakota — including Star Village and Aspen Park in Rapid City, LaCrosse Apartments, several other Rapid City apartment complexes, the Rushmore Hotel, and a 16,841-acre ranch in Pennington County.

Hendry personally filed for Chapter 11 bankruptcy in April 2025. Since then, that case and three related ones have spun off a sprawling legal fight involving secured lenders, a judgment creditor, and a court-appointed administrator now selling off pieces of the portfolio — all overseen by the same federal judge in West Palm Beach, Florida.

Four Bankruptcies, One Landlord

There isn’t one Tzadik bankruptcy case — there are four, all before Judge Mindy A. Mora, U.S. Bankruptcy Court, Southern District of Florida:

  • Adam Hendry’s personal Chapter 11 — Case No. 25-14711 (the case number has shifted twice with judge reassignments: -PDR, then -CAP/-EPK, now -MAM).
  • Filed April 2025. Hendry’s confirmed “Fourth Amended Plan of Reorganization” (Doc. 444, confirmed May 21, 2026) puts a court-appointed Plan Administrator, Daniel Stermer, in charge of selling off dozens of LLC-held properties in a staggered schedule — the “tranche” system described below.
  • The Lead Case / corporate joint administration — Case No. 25-13865-MAM, jointly administering eight entities: Tzadik Sioux Falls Portfolio I (the lead case itself), TMG2 LLC, Garden Villas Apartments, Tzadik Hidden Hills Apartments, Tzadik Rapid City Portfolio I (Star Village and Aspen Park), Tzadik Sioux Falls I, Tzadik Sioux Falls Portfolio III, and Tzadik Taylor’s Place (Doc. 812, filed 8/14/26).
  • This plan was confirmed earlier, around May 19, 2026, and these entities are now “Reorganized Debtors” — technically out of bankruptcy, but still selling real property under court-approved procedures.
  • Tzadik Mount Rushmore Hotel, LLC — Case No. 26-20751-MAM. Filed separately on August 13, 2026, days ahead of a scheduled receivership hearing in Pennington County.
  • Secured creditor BankWest, Inc. has argued in a motion to dismiss that this filing was an attempt to dodge Stermer’s authority under the confirmed personal-bankruptcy plan.
  • Tzadik Blue Hawk, LLC and Tzadik Energy Portfolio, LLC — Case Nos. 26-20353-MAM and 26-20356-MAM. Filed around the same time as the hotel case. Both entities are jointly objecting, alongside the hotel, to Stermer’s Motion to Enforce the Confirmed Plan (Doc. 55).

Properties that Effect Rapid City Directly

  • Star Village (~178 lots, 27 Signal Drive) — owned by Tzadik Rapid City Portfolio I LLC, part of the Lead Case.
  • Headed to a Ten-X online auction Oct. 26–28, 2026 (Doc. 812), though a Sept. 8, 2026 settlement agreement (Doc. 610) between Hendry and judgment creditor Arguelles/Gatoralex separately retitles the property into a new entity, “Star Village Owner LLC,” as part of a broader refinancing deal.
  • Star Village Owner LLC was formed in Delaware on July 16, 2026 and registered to do business in South Dakota on Sept. 10, 2026 (SD SOS Business ID FL338848)
  • Its listed beneficial owner, SD MS Manager SPE LLC, is a separate Delaware entity formed July 22, 2026 sharing the same registered agent (CCS Global Solutions, Inc.) — a confirmed structural link between the two, though what “MS” refers to remains unconfirmed.
  • Aspen Park (~81 units) — also owned by Tzadik Rapid City Portfolio I LLC, also headed to the October auction. Its treatment under the Sept. 8 settlement agreement is not addressed in that document.
  • LaCrosse Apartments (761 E. Anamosa St., 265 units) — Tzadik Lacrosse Apartments LLC, a Fourth Tranche property with an accelerated private-sale contract deadline of Feb. 1, 2028 (Doc. 840).
  • Mountain View Estates — a Second Tranche property, and separately the entity at the center of Gatoralex’s original objection to the Lead Case refinancing deal.
  • Oxford Apartments and Dakota Flats (dba Town House Motel, 210 St. Joseph St.) — First Tranche properties now moving toward auction after private-sale deadlines expired without buyers (Docs. 602, 604).
  • The Rushmore Hotel (445 Mt. Rushmore Rd., 177 rooms) — subject of its own separate, contested bankruptcy case.
  • Cheyenne River Ranch (16,841+ acres, also known as the Bismarck Ranch) — a First Tranche property that already sold, closing July 29, 2026 for $23 million.

What A Sales Tranche Is

Under Hendry’s confirmed personal-bankruptcy plan, dozens of LLC-held properties not already in their own separate bankruptcy cases are being sold off in four numbered “tranches,” each with its own private-sale contract deadline before falling back to a public auction (Doc. 444).

First Tranche properties’ deadline already expired Sept. 3, 2026 with no buyers under contract, triggering the auction process now underway.

Second Tranche properties (including Mountain View Estates) have a Dec. 3, 2026 deadline.

Third and Fourth Tranche properties (including LaCrosse Apartments) follow later, with some Fourth Tranche deadlines separately accelerated by the Sept. 8 Arguelles settlement described below.

Who’s Fighting over What

  • BankWest, Inc. — secured lender owed roughly $19.6 million by the Rushmore Hotel entity and over $15 million by Cheyenne River Ranch; pushing to dismiss the hotel’s separate bankruptcy case and force its sale under Stermer’s authority instead.
  • Merchants Bank of Indiana — holds the blanket secured mortgage on Star Village and Aspen Park (a $11,473,991 claim on that entity specifically) and a much larger secured position across the broader Lead Case portfolio; pushed for the Ten-X auction as a backstop while a competing refinancing deal was negotiated.
  • Morgan Stanley — proposed lender on a $66.5 million refinancing package intended to pay off Merchants Bank and restructure ownership of several Lead Case properties, including Star Village, through new “NewCo” entities.
  • Alejandro Arguelles / Gatoralex Consulting LLC — Hendry’s Tzadik co-founder, who left the company in 2020 under a settlement he says was never paid; an arbitration panel awarded him $8.9 million in February 2024, converted into a $10,645,377.97 Miami-Dade County final judgment that October, secured by a lien on several Sioux Falls properties.
  • Objected to the Morgan Stanley refinancing as an insider deal, then reached a Sept. 8, 2026 settlement (Doc. 610) trading a $3 million payment for release of that specific lien, plus accelerated sale deadlines on LaCrosse Apartments, Raza Ranch, and L’Chaim Farm.
  • Nectar, Inc. — holds a secured claim and equity interest in the Rushmore Hotel case, and separately financed Dakota Flats/Town House Motel according to a March 2025 press release.
  • FC Sioux Falls Pref, LP — a $3.5 million preferred-equity investor in TMG2 LLC (personally guaranteed by Hendry) that says it was left off a Plan Administrator distribution motion despite Hendry having personally signed agreements acknowledging the debt.

What Just Happened

A major hearing block was held Sept. 15, 2026 before Judge Mora, consolidating several of these threads — including the Lead Case recap motion, the Arguelles settlement approval, and BankWest’s motion to enforce the plan and auction the Rushmore Hotel. Full details will follow once the outcome is confirmed against an entered order.

Coverage so far

Seventeen pieces, in order, if you want the story as it actually unfolded rather than the summary above:

Sourcing: Case numbers, dates, and figures throughout are drawn from primary-source federal bankruptcy court filings, cited above by document number and filing date.

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