Rapid City SD – The man Adam Hendry’s own confirmed bankruptcy plan put in charge of selling his real estate empire is now telling a federal judge that Hendry used a separate bankruptcy filing to cut him out of the process — and one of the properties at issue is a Rapid City hotel in which a lender-turned-owner has held a 50 percent equity stake since before either bankruptcy began.
A Motion to Reclaim Authority Over the Hotel
On Aug. 27, Daniel J. Stermer — the court-appointed Plan Administrator overseeing Hendry’s personal Chapter 11 case, confirmed this past May — filed a motion asking a bankruptcy judge to rule that his authority still applies to three properties Hendry has since placed into their own, separate bankruptcy cases: Tzadik Blue Hawk LLC, Tzadik Energy Portfolio LLC, and Tzadik Mount Rushmore Hotel LLC, the entity that owns the Rushmore Hotel & Suites in downtown Rapid City.
Under Hendry’s confirmed plan, Stermer’s job is to market, approve the sale of, and direct proceeds from properties Hendry owns — proceeds that are supposed to go toward paying down more than $50 million in unsecured claims against Hendry personally.
The plan divides those properties into tranches, with the hotel and the other two entities named in Stermer’s motion classified as “First Tranche Properties,” required to be under contract by Sept. 3, 2026, or Stermer is to begin an auction process.
Hendry filed the hotel into its own Chapter 11 case on Aug. 13 — three weeks before that deadline.
Stermer’s motion doesn’t mince words about what that filing did. By placing the hotel and the other two entities into bankruptcy, the motion argues, Hendry triggered the automatic stay and thereby “removed — prior to the implementation of an auction sale — valuable real properties from the sale process purview of the Plan Administrator,” interfering with the confirmed plan “to the detriment of Adam Hendry’s creditors.”
The motion does allow that exigencies like a secured lender’s foreclosure or receivership action might justify a bankruptcy filing — but argues that doesn’t erase Stermer’s ongoing authority over what happens to the properties, or to the money if they’re sold.
Stermer is asking the court to formally confirm two things: that he still has authority to review and approve any sale of the hotel and the other two properties, and that any sale proceeds — after paying off secured debt — come to him for distribution to Hendry’s creditors, not to Hendry.
A hearing on the motion is set for Sept. 15 at 1:30 p.m. in West Palm Beach.
The Lender Who Became a Half-Owner of the Hotel
The hotel’s own bankruptcy filings show that Adam Hendry isn’t its only owner.
Nectar, Inc., an Atlanta-based mezzanine debt lender, holds 100 preferred units — a 50 percent equity interest — in Tzadik Mount Rushmore Hotel, LLC, according to the debtor’s corporate ownership filings. Hendry holds the other 50 percent in common stock.
That stake didn’t originate with the bankruptcy. A March 11, 2025 press release from Nectar — more than a year before the hotel’s Chapter 11 filing, and roughly six weeks before Hendry’s own personal bankruptcy filing that April — lists a $1 million cash advance to a 177-unit hotel property in Rapid City, South Dakota. Court filings in the hotel’s bankruptcy case put its room count at exactly 177.
None of this establishes that Nectar had any role in the timing of the hotel’s bankruptcy filing, and nothing reviewed for this piece connects Nectar to that decision.
What is on the record is this: a lender that began advancing cash to the hotel in early 2025 held a controlling equity position in it by the time that property was carved out — via the same bankruptcy filing Stermer’s motion challenges — from the reach of the plan meant to pay Hendry’s other creditors.
What the Sept. 15 Hearing Decides
The Sept. 15 hearing will determine whether Stermer’s authority extends to the hotel and the other two properties, or whether Hendry’s separate bankruptcy filings successfully moved them outside his reach.
The outcome will also shape how — and whether — any eventual sale proceeds from the hotel flow back to Hendry’s personal creditors, as opposed to being administered solely within the hotel’s own Chapter 11 case.
Worth noting: the hotel’s actual financial picture still isn’t public.
Its deadline to file schedules of assets, secured debt, and its full creditor list was extended to Sept. 4, so what’s known so far — Nectar’s equity stake, BankWest’s claims, this dispute over sale authority — remains a partial picture, not a complete one.
Sourcing
This report is based on:
- PACER docket, In re Tzadik Mount Rushmore Hotel, LLC, Case No. 26-20751-MAM, U.S. Bankruptcy Court, Southern District of Florida:
- Doc. 38 — Plan Administrator’s Motion to Enforce Confirmed Plan, filed by Daniel J. Stermer through Eric Pendergraft of Shraiberg Page P.A. (filed 8/27/26)
- Doc. 41 — Notice of Hearing (Re: Doc. 38), hearing scheduled 9/15/26 at 1:30 p.m. (filed 8/28/26)
- Corporate Ownership Statement and Equity Security Holders filings establishing Nectar, Inc.’s 50 percent equity interest in the debtor
- Case Management Summary establishing the hotel’s 177 guest rooms
- PACER docket, In re Adam Hendry, Case No. 25-14711, U.S. Bankruptcy Court, Southern District of Florida, as referenced in Doc. 38 (Individual Case, Dkt. Nos. 444, 469, 519)
- Nectar, Inc. press release, “Nectar’s +1,000 unit Deal Surge Fuels Growth for Real Estate Entrepreneurs,” PR Newswire, March 11, 2025
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