Rapid City SD – Judge Mindy A. Mora entered an Agreed Second Interim Cash Collateral Order in the Tzadik Mount Rushmore Hotel bankruptcy on Sept. 23, resolving a Sept. 9 hearing on the hotel’s request to keep using its own cash while the case proceeds (Doc. 62).
BankWest, Inc., the hotel’s senior secured lender, initially objected before agreeing to the terms on an interim basis only.
What the Order Actually Bars
The order’s prohibitions are specific.
During the interim period, the hotel cannot make “any payment, distribution, transfer, or allocation of Cash Collateral or other estate property to any insider… affiliate, or entity owned or controlled by Adam Marcus Hendry or any member of his immediate family, including, without limitation, any management fee, consulting fee, salary, bonus, dividend, loan repayment, or similar payment” (Doc. 62, p. 7).
That provision is directly relevant to this outlet’s earlier reporting: the hotel disclosed $28,000 in payments to an entity called “Dakota Flats” in the 90 days before its bankruptcy filing, and Dakota Flats LLC — which operates Town House Motel in Rapid City under a state DBA filing — is 100% owned by Hendry, according to his own sworn personal bankruptcy schedule.
Under this new order, a repeat of that kind of payment during the current cash-collateral period would trigger a non-curable Termination Event — meaning the hotel’s authority to use its own cash would end automatically, without any further court hearing (Doc. 62, pp. 8-9).
BankWest’s Position
BankWest is owed more than $19.6 million across five promissory notes, secured by three mortgages on the hotel, four security agreements, and three assignments of rents (Doc. 62, p. 3).
The order confirms RE Nectar, Inc.’s separate lien on the property is junior and subordinate to BankWest’s in all respects (Doc. 62, p. 10) — resolving, for this case, the relative priority between the hotel’s two secured lenders.
BankWest’s consent to this order is explicitly limited.
The lender still has two separate pending motions against the hotel: an Emergency Motion to Dismiss under 11 U.S.C. § 1112(b), and an Emergency Motion for Relief from the Automatic Stay under § 362(d) (Doc. 62, p. 4).
Entry of this cash-collateral order does not affect either motion, and if the dismissal motion is granted, that itself counts as a separate, non-curable Termination Event under the order’s own terms (Doc. 62, p. 9).
The Hotel’s Own Numbers
The order’s attached four-week budget, covering Sept. 5 through Sept. 26, projects $723,500 in room revenue and a net operating profit of $388,571 for the period (Doc. 62, p. 18). The hotel is described in the order as a “177-room full-service hotel” with “approximately 6,000 square feet of meeting space, two restaurants/bars, room service, and a fitness center” (Doc. 62, p. 2).
Correction/clarification: That last detail resolves a question this outlet flagged when the hotel’s original bankruptcy schedules were first reported in September — those schedules listed the building’s square footage as approximately 6,000 square feet, a figure that looked inconsistent with a nine-story, 177-room hotel.
This order clarifies that the 6,000-square-foot figure refers specifically to the hotel’s meeting space, not the building’s total floor area.
What’s Up Next For The Rushmore Hotel Case
A Further Interim Hearing on continued use of cash collateral is set for Sept. 29 at 1:30 p.m. before Judge Mora.
BankWest’s dismissal and stay-relief motions remain pending and may be heard at the same time, at the court’s discretion.
Sourcing
This piece is drawn from Doc. 62 in Case No. 26-20751-MAM, U.S. Bankruptcy Court, Southern District of Florida, entered Sept. 23, 2026. Prior reporting referenced: this outlet’s Sept. 4 and Sept. 7, 2026 pieces on the hotel’s original bankruptcy schedules and the Dakota Flats LLC/Town House Motel ownership finding.
State Records Tie Adam Hendry’s Dakota Flats LLC to a Second Rapid City Motel
What the Tzadik Mount Rushmore Hotel’s New Bankruptcy Schedules Do – and Don’t – Reveal
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