Rapid City SD –Three filings in Adam Hendry’s personal Chapter 11 bankruptcy case, read together, sketch an estate running low on options: a creditor accusing Hendry of hiding a multimillion-dollar debt, a batch of properties sliding from private sale into public auction after missing their deadline, and a payment that moved from one Hendry-controlled entity to another just weeks before the paying entity filed its own bankruptcy case.
A hidden $5.1 million creditor
On September 8, an entity called FC Sioux Falls Pref, LP filed an amended objection (Doc. 605) to the Plan Administrator’s motion to distribute the remaining proceeds from the sale of Cheyenne River Ranch, LLC — the Pennington County ranch property that closed for $23 million and left $4,459,338.70 after paying off secured lender BankWest and closing costs (Doc. 605, citing the Distribution Motion, Doc. 559).
FC Sioux Falls says it should be first in line for that money, and that it never got the chance to say so — because, the filing alleges, Hendry never disclosed FC Sioux Falls as a creditor of Cheyenne to the court, the Plan Administrator, or anyone else. “The Debtor hid FC Sioux Falls’ claim against Cheyenne from all other parties in interest and this Court,” the objection states (Doc. 605).
According to a supporting declaration from Sandy Poklar, an Authorized Signing Officer of FC Sioux Falls (Doc. 605-1), the entity is a Delaware limited partnership based in Toronto, an affiliate of the Canadian real estate investment firm Firm Capital.
In April 2022, FC Sioux Falls made a $3.5 million preferred-equity investment in TMG 2, LLC, one of the Tzadik corporate entities — an investment Hendry personally guaranteed (Doc. 605-3).
That investment is secured by 25 apartment properties in Sioux Falls held through Tzadik Sioux Falls Portfolio I, LLC (Doc. 605-2) — the same portfolio entity at the center of the recapitalization fight this outlet has been tracking in the corporate Tzadik bankruptcy cases.
Separately, when Hendry moved to put TMG 2 into bankruptcy in April 2025, FC Sioux Falls says it agreed to forbear from enforcing its rights in exchange for a promise: that it would be paid first out of any sale of the Cheyenne ranch property, ahead of Cheyenne’s other creditors and its equity owner.
Hendry personally signed that Forbearance Agreement (Doc. 605-4). A companion Payment Agreement spelling out the same priority was signed by Quentin L. Riggins, trustee of Shalom on the Range Trust — the sole member of Cheyenne River Ranch, LLC — and by FC Sioux Falls’ Sandy Poklar (Doc. 605-5).
Riggins is a Rapid City attorney and partner at Gunderson, Palmer, Nelson & Ashmore, LLP, whose practice focuses on agricultural and estate law; it is not yet established whether his role here is purely as a professional trustee or reflects some other connection to Hendry.
As of August 26, FC Sioux Falls says Cheyenne owes it $5,138,518.19 (Doc. 605).
The Plan Administrator’s distribution motion does not list FC Sioux Falls among the creditors slated to be paid; the filing states the Plan Administrator was unaware of the Payment Agreement or FC Sioux Falls’ claim when he filed it (Doc. 605). The objection is pending before the court and has not yet been ruled on.
More properties head to auction
On the same day, the Plan Administrator filed a separate motion (Doc. 604) asking the court to approve auction procedures for ten properties — the “First Tranche” under Hendry’s confirmed plan — after none of them sold privately by a September 3 deadline.
The properties are held in the names of :
Charmwood House, LLC
Fulton House, LLC
Oak Cottage, LLC
Peaceful Pines, LLC
Sagewood Place, LLC
Wellington Place, LLC
Shadow Pines, LLC
Dakota Flats, LLC
Chalets at Terry Peak, LLC
Oxford Apartments, LLC
(Doc. 604)
The motion proposes engaging Lamar Fisher of Fisher Auction Company and John Crotty of Avison Young as auctioneers, paid via a buyer’s premium at closing, while keeping existing brokers’ 5% commission arrangements intact (Doc. 604).
A footnote in the same filing confirms that Cheyenne River Ranch’s property — an eleventh First Tranche property — did sell, closing on July 29, 2026 (Doc. 604, n.1). This motion is also pending; the court has not yet approved it.
A payment to Dakota Flats, weeks before the hotel’s own filing
One of the ten properties now headed to auction, Dakota Flats, LLC, turns up again in a different filing: the Statement of Financial Affairs that Tzadik Mount Rushmore Hotel, LLC filed on September 4 as part of its own Chapter 11 case, signed by Hendry as managing member (Doc. 50).
That filing discloses a $14,000 payment from the hotel to Dakota Flats dated July 23–27, 2026 (Doc. 50, p. 48) — about six weeks before the hotel itself filed for bankruptcy.
The payment is listed under the form’s Question 3, covering ordinary payments to creditors and vendors within 90 days of filing.
Question 4 — payments made within the prior year to insiders, which by definition includes affiliates under common control — is marked “TBA,” with a note that the debtor “is in the process of compiling information and will supplement accordingly if necessary” (Doc. 50, p. 35).
Dakota Flats and the hotel are both Hendry-controlled entities, which would typically place a payment between them under the insider question rather than the ordinary-vendor one.
This outlet has previously reported that the Plan Administrator accused Hendry of using the hotel’s separate bankruptcy filing to shield it from his oversight ahead of the same September 3 deadline.
The Dakota Flats payment adds a concrete dollar figure to that pattern: money moved from the hotel to a Hendry affiliate in the weeks before the hotel’s own filing, and that affiliate is now itself being pushed toward a forced sale.
What’s next
The FC Sioux Falls objection and the auction procedures motion are both pending before Judge Mindy A. Mora in the Southern District of Florida.
This outlet will follow both, along with whether the hotel case’s insider-payment disclosure gets supplemented.
Sourcing
This report is based on primary-source filings obtained via PACER in the U.S. Bankruptcy Court for the Southern District of Florida, Case Nos. 25-14711-EPK (Adam Hendry) and 26-20751-MAM (Tzadik Mount Rushmore Hotel, LLC): Doc. 604; Doc. 605 and its exhibits, 605-1 through 605-5; and Doc. 50. Allegations made by FC Sioux Falls Pref, LP are attributed to that filing and have not been adjudicated by the court.
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