Rapid City SD – When the Tzadik Mount Rushmore Hotel, LLC disclosed its pre-bankruptcy payments on Sept. 4, one line stood out: two payments, $14,000 each, sent in July to an entity identified only as “Dakota Flats” (Doc. 50, p. 48). The filing offered no explanation of the payments or the debtor’s relationship to the recipient.

A sworn schedule filed more than a year earlier, in Adam Hendry’s own personal bankruptcy case, answers that question directly.

The Schedule

On May 29, 2025, Hendry filed his Schedule A/B — the sworn accounting of his personal assets — in his individual Chapter 11 case, then numbered 25-14711-PDR (Doc. 60). Among his listed ownership interests in limited liability companies:

• Dakota Flats, LLC — 100% — $3,000,000.00
• Tzadik Mount Rushmore, LLC — 100% — $36,000,000.00 (Doc. 60, p. 12)

Hendry lists himself as 100% owner of both entities on the same schedule, filed under penalty of perjury.

Tzadik Mount Rushmore, LLC is the entity that later filed for its own Chapter 11 protection on Aug. 13, 2026, and disclosed the $28,000 in payments to “Dakota Flats” in its own schedules three weeks later.

A separate section of the same personal filing, listing businesses Hendry has been involved with in the past four years, identifies Dakota Flats LLC’s business type as “Real Estate” (Doc. 60, p. 62).

That section lists an address — 4008 S. Louise Ave., Sioux Falls, SD — but the same address appears alongside several other entities in the same list, including Tzadik Mount Rushmore, LLC itself, which is not located in Sioux Falls.

The address most likely reflects a shared bookkeeping or accounting office for this group of entities rather than the location of any specific property, and the Sentinel is not treating it as a property address.

The Corporate Record

South Dakota Secretary of State filings independently confirm Dakota Flats LLC’s existence and Hendry’s control of it.

The company, Business ID DL201168, was organized April 19, 2021. Every annual report filed since — 2022 through 2026 — lists Hendry as its sole manager, with no gap or transfer of control across five years of filings.

Since 2024, the company’s registered address has been 2450 Hollywood Blvd., Ste. 503, Hollywood, Fla. — the same suite listed for Tzadik Properties, LLC in the hotel’s own bankruptcy schedules, where Tzadik Properties is named as the manager of the Rushmore Hotel & Suites under a management agreement (Doc. 50, p. 32).

What This Does — and Doesn’t — Establish

Together, the two filings establish: Dakota Flats, LLC is a real company; Hendry has sworn, in his own personal bankruptcy case, that he owns 100% of it; and he has also sworn to owning 100% of the hotel that later paid an entity by that name $28,000 in the weeks before its own bankruptcy filing.

The hotel’s own Statement of Financial Affairs states that it made no payments to insiders in the year before filing (Doc. 50, p. 46, Question 30).

A separate section of the same filing, addressing insider payments specifically, was left as a placeholder: “TBA — Debtor is in the process of compiling insider information and will supplement accordingly if necessary” (Doc. 50, p. 35).

Whether the “Dakota Flats” identified in the disbursement exhibit is, in fact, Dakota Flats, LLC is not separately confirmed by name in that exhibit — it identifies the payee only as “Dakota Flats,” without “LLC.”

Given the sworn ownership overlap and the absence of any other entity by a similar name connected to this case, it is a reasonable inference, but the Sentinel is not treating the two as conclusively identical absent further confirmation.

Whether this fact pattern meets the legal definition of an “insider” transaction under bankruptcy law, and what obligations that would trigger, is a legal determination the Sentinel is not making here.

This Isn’t the First Time Hendry’s Ownership Has Been Litigated

Judgment creditor Alejandro Arguelles and Gatoralex Consulting, LLC — the same parties objecting to the Rapid City Portfolio I recapitalization deal — obtained a court order in Hendry’s personal case more than a year ago specifically addressing “assets owned by entities owned or controlled by Adam Hendry” (Doc. 103, filed July 3, 2025).

That order, agreed to by Hendry, established protocols requiring notice to Gatoralex and other creditors before any sale of assets held by Hendry’s controlled entities.

It reflects that Hendry’s ownership structure across multiple entities has been a live issue in litigation since at least mid-2025 — well before the current wave of Tzadik bankruptcy filings.

What’s Next

The Sentinel is continuing to seek confirmation of what real property, if any, Dakota Flats, LLC holds, and will update this reporting as Pennington County property records become available following this summer’s cybersecurity incident.

The post Adam Hendry’s Own Bankruptcy Filing Says He Owns Both Sides of a $28,000 Payment appeared first on THE RAPID CITY SENTINEL.