Rapid City SD – More than two weeks after BankWest’s Oct. 6 deadline for the Rushmore Hotel to fix what the lender called unauthorized spending, the court docket shows no ruling, no new hearing date, and no further filing from BankWest. What it does show is a stack of the hotel’s own financial reports — and they answer some of BankWest’s claims while leaving others open.
BankWest’s Oct. 1 notice said the hotel’s authority to use its cash would end automatically at 5 p.m. Eastern on Oct. 6 unless it cured three payments totaling $305,389.96, delivered missing reports and got back inside its budget. The docket entries from Oct. 1 through Oct. 21 contain no BankWest filing, no order on the notice, and no entry resetting the Sept. 30 hearing on BankWest’s motions to dismiss the case and lift the automatic stay, which was pulled from the calendar that morning. The docket doesn’t say whether the hotel cured, whether BankWest accepted anything, or whether the two sides are talking.
What the court actually allowed
A Sept. 2 order from Judge Mindy Mora authorized the hotel to pay 14 vendors for what it owed them before it filed for bankruptcy, up to $304,924.68 in all. Two of the three payments BankWest challenged involve vendors on that list: DAK Generator Service, at up to $127,400.34, and Western States Fire, at up to $102,790.00. The cash collateral order BankWest relies on bars paying prepetition debts “except as expressly authorized by separate order of this Court,” and that critical vendor order is one.
The Pennington County Treasurer is not on the list.
The $20,000 gap
The hotel’s own September bank statement, filed with its monthly operating report, shows a check for $122,790.00 (No. 3097) clearing the operating account on Sept. 22. The statement lists check numbers and amounts but not payees; BankWest’s letter names the payee as Western States Fire.
The hotel’s own list of prepetition payments in the same report shows a Sept. 22 payment to Western States Fire of $102,790.00, the amount in the court order. The hotel’s August payables report lists a single Western States Fire invoice, also for $102,790.00.
That leaves $20,000 between what the court authorized, what the hotel reported, and what its bank statement shows cleared. The hotel hasn’t publicly explained the difference.
DAK: half the invoice
The DAK payment looks different. The hotel’s Aug. 31 payables list one DAK Generator invoice, No. 2 2048, for $127,400.34, the exact amount in the court order. Its Sept. 30 payables list the same invoice number at $63,700.17, exactly half. The bank statement shows a $63,700.17 check (No. 3102) clearing Sept. 24.
That pattern is consistent with a partial payment on an invoice the court authorized the hotel to pay. It’s worth noting that the hotel’s September list of prepetition payments doesn’t include a DAK payment.
The $118,900 nobody has explained
A $118,899.79 check (No. 3104) cleared the account Sept. 30. The hotel’s monthly report lists it as a payment to the Pennington County Treasurer, with no comment, while giving a reason for the other entries on the list.
The hotel’s books carry it as “Taxes – Other”; the same line shows $121,706.40 in September 2025. BankWest believes it covers property taxes and says the hotel’s interim budget listed $0 for them.
The critical vendor order doesn’t cover it, and nothing I reviewed cites another order that does.
What the hotel reported
The hotel’s reports are signed by its controller under penalty of perjury. The September report answers “Yes” to whether any payments were made on prepetition debt, and “No” to whether any payments were made outside the ordinary course of business without court approval. BankWest’s notice says otherwise, and a judge would have to decide.
The reports arrived late by BankWest’s count. BankWest said the August report was due Sept. 15 and hadn’t been filed as of Oct. 1. It reached the docket Oct. 9, along with amended schedules and a Statement of Financial Affairs. The September report was filed Oct. 20. Whether BankWest received copies earlier isn’t known.
By the hotel’s own unaudited numbers, the business is running well. September revenue was $943,040, about 9.5 percent above September 2025, and cash grew from $23,307 to $160,654 over the month. The report shows 38 full-time employees, down from 39 at filing.
Other new filings
- Insider payments. The amended Statement of Financial Affairs, signed by Adam Hendry, lists two payments to Tzadik Properties LLC in January 2026 totaling $55,300 under its question about payments to insiders.
- State court case. It also lists BankWest, Inc. v. Tzadik Mount Rushmore Hotel, LLC, et al., Pennington County Case No. 51CIV26-001432, as pending.
- No creditors’ committee. On Oct. 21, the U.S. Trustee said it will not appoint an official committee of unsecured creditors “until further notice,” and the meeting of creditors was held and concluded the same day.
Still unknown
Whether BankWest considers the Oct. 6 deadline cured
When its motions to dismiss and lift the stay will be heard
What the extra $20,000 to Western States Fire was for
What authority the hotel is relying on for the Pennington County payment.
Sourcing
- PACER docket, In re Tzadik Mount Rushmore Hotel, LLC, Case No. 26-20751-MAM, U.S. Bankruptcy Court, Southern District of Florida (docket report retrieved Oct. 24, 2026):
- Doc. 44 — Order Authorizing the Debtor to Pay Critical Vendor Claims in the Ordinary Course of Business (entered 9/2/26)
- Doc. 62 — Agreed Second Interim Order on Cash Collateral (entered 9/23/26), ¶ 6(c)
- Doc. 64 — Notice of Rescheduled Meeting of Creditors (filed 9/28/26)
- Doc. 67 — BankWest, Inc.’s Notice of Termination Events and Demand for Accounting, with Oct. 1, 2026 letter (filed 10/1/26)
- Doc. 69 — Monthly Operating Report, period ending 8/31/26, with balance sheet, aged payables and prepetition-payment schedule (filed 10/9/26)
- Doc. 70 — Amended Schedules / Statement of Financial Affairs (filed 10/9/26)
- Doc. 71 — Monthly Operating Report, period ending 9/30/26, with balance sheet, income statement, aged payables, BankWest statements for the operating account, and prepetition-payment schedule (filed 10/20/26)
- Doc. 72 — Meeting of Creditors Held and Concluded (10/21/26)
- Doc. 73 — U.S. Trustee statement that no committee of creditors will be appointed until further notice (10/21/26)
- Earlier reporting: Sept. 30 hearing cancellation per U.S. Bankruptcy Court calendar and Zoom notice (see prior Sentinel coverage)
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