West Palm Beach, FL – The company responsible for notifying every creditor in the Tzadik Sioux Falls Portfolio I bankruptcy has a complaint of its own: it says it hasn’t been paid, either.
BMC Group, Inc. — the court-appointed Claims and Noticing Agent in the lead case (Case No. 25-13865-MAM) — filed a Motion to Enforce Confirmed Plan and Confirmation Order on Sept. 24, 2026, asking Judge Mindy A. Mora to compel the debtors to pay $133,880.89 in unpaid administrative fees and post-confirmation invoices (Doc. 853).
The motion is filed against Tzadik Sioux Falls Portfolio I, LLC and its affiliated debtor entities — the corporate cases jointly administered under the lead case, which include Tzadik Rapid City Portfolio I, LLC.
According to the motion, BMC agreed to a payment plan in the days before the case’s Effective Date, after the debtors told BMC’s counsel they didn’t have enough cash on hand to pay all professionals in full.
The plan called for five monthly payments running from April through August 2026, and the debtors built those payments directly into their own court filings — the Plan Budget (DE 739) and the Confirmation Exhibit Register (DE 743).
Paragraph 11 of the Confirmation Order itself required professional fees to be paid “on or before the Effective Date… or as otherwise agreed upon by holders of such Professional Fee and Expense Claims” (Doc. 853) — making the payment plan an extension of that order, not a side arrangement.
BMC says it received the April and May payments on schedule. Then the payments stopped.
The motion states the debtors made no payments in June, July, or August despite “numerous notices of delinquency and requests for payment,” and that BMC’s communications “went unanswered” (Doc. 853).
BMC notified the debtors in early September that it would pursue legal action; a partial payment of $30,970 arrived around Sept. 9, trimming the balance to the $108,383.33 now outstanding under the original fee order, plus $25,497.56 in newer invoices for post-confirmation noticing work — including services tied to the pending motion to sell properties covered by Merchants Bank’s refinancing.
BMC’s attorney, Paul N. Mascia of Nardella & Nardella, PLLC, filed a separate notice of appearance in the case the same day (Doc. 852).
BMC’s filing is the third instance in recent weeks of a party going back to Judge Mora to force compliance with an order the debtors already agreed to.
Fannie Mae’s Sept. 21 motion to enforce the confirmed plan in the same lead case told the court plainly: “This is not the first time Mr. Hendry has been dilatory in ensuring compliance with confirmed plans” — pointing to prior enforcement motions from BankWest and the Plan Administrator in Hendry’s personal case as precedent (Doc. 845).
BankWest, separately, has its own pending motion to dismiss Hendry’s Tzadik Mount Rushmore Hotel case under Section 1112(b) of the Bankruptcy Code.
As of this writing, BMC’s motion has not yet been set for a hearing.
Status update: First Tranche auction procedures formally approved
In a separate order entered Sept. 23, Judge Mora granted the Plan Administrator’s Motion to Approve Auction Procedures for the First Tranche properties in Hendry’s personal bankruptcy case (Doc. 623).
The order authorizes Lamar Fisher of Fisher Auction Company and John Crotty of Avison Young, Inc. to serve as auctioneers, and lets existing real estate brokers keep their previously agreed commissions on any successful sale.
Of the 14 First Tranche properties originally defined in the debtor’s Fourth Amended Plan, four are excluded from this auction track — Tzadik Mount Rushmore Hotel, Tzadik Blue Hawk and Tzadik Energy Portfolio are already proceeding through their own separate bankruptcy cases. The Cheyenne River Ranch sale closed in July.
That leaves 10 properties now cleared for the Fisher/Avison Young auction process:
- Oxford Apartments LLC
- Dakota Flats, LLC — operates the Town House Motel, 210 St. Joseph St., Rapid City
- Charmwood House LLC
- Fulton House LLC
- Oak Cottage LLC
- Peaceful Pines LLC
- Sagewood Place LLC
- Wellington Place LLC
- Shadow Pines LLC
- Chalets at Terry Peak LLC
What’s next
Several enforcement and disposition fights are now converging on Judge Mora’s docket in the coming weeks:
- Sept. 29, 2026, 1:30 p.m. — Further interim hearing on cash collateral in the Tzadik Mount Rushmore Hotel case, where BankWest’s motions to dismiss and for relief from the automatic stay are also pending.
- Oct. 27, 2026, 1:30 p.m. — Hearing on Fannie Mae’s motion to enforce the confirmed plan (Doc. 845/846), covering 22 properties across Tzadik Rapid City Portfolio I and Tzadik Sioux Falls I.
- Nov. 3, 2026, 2:30 p.m. — Final sale hearing for Aspen Park’s public auction through Ten-X.
No hearing date has yet been set on BMC’s motion.
Sourcing
This piece is drawn from primary-source court filings in the U.S. Bankruptcy Court, Southern District of Florida — Doc. 852 and Doc. 853 (Case No. 25-13865-MAM, filed Sept. 24, 2026) and Doc. 623 (Case No. 25-14711-MAM, entered Sept. 23, 2026) — obtained via PACER. Allegations in BMC Group’s motion are attributed to BMC as the filing party and have not yet been ruled on by the court.
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