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Case 25-23251-MEH Doc 50 Filed 01/07/26 Entered 01/07/26 15:54:27 Desc Main
Document Page 6 of 12
In re Seaview Apartments LLC
Case No. 25-23251 (MEH)
faith: (1) whether the petition serves a valid bankruptcy purpose, e.g., by preserving a going
concern or maximizing the value of the debtor’s estate, and (2) whether the petition is filed merely
to obtain a tactical litigation advantage.” In re Integrated Telecom Express, 384 F.3d at 119-20 (3d
Cir. 2004) (citing In re SGL Carbon, 200 F.3d at 165). Courts also consider whether other evidence
establishes the good faith of a debtor’s petition, including reviewing whether the case evidences:
(a) Single asset case; (b) Few unsecured creditors; (c) No ongoing business or
employees; (d) Petition filed on eve of foreclosure; (e) Two party dispute which can
be resolved in pending state court action; (f) No cash or income; (g) No pressure
from non-moving creditors; (h) Previous bankruptcy petition; (i) Prepetition
conduct was improper; (j) No possibility of reorganization; (k) Debtor formed
immediately prepetition; (l) Debtor filed solely to create automatic stay; and (m)
Subjective intent of the debtor.
In re Primestone Inv. Partners L.P., 272 B.R. 554, 557 (D. Del. 2002); see also In re SGL Carbon
Corp., 200 F.3d at 165.
B. Debtor’s Chapter 11 Petition Must Be Dismissed for Lack of Good Faith
In this case, application of the Third Circuit’s two inquiries relevant to the question of the
Debtor’s good faith compels this Court to dismiss the Debtor’s bankruptcy petition. See In re
15375 Mem’l Corp., 589 F.3d at 619.
The Debtor filed its petition as a single asset real estate case, with the Debtor’s sole asset
being the Property previously described above as Seaview Loft Apartments, also known as
Oceanside Tower, located at 2 28th Street, Newport News, Virginia. The Property has fallen into
such disrepair and an unhabitable state that it was condemned twice, forcing the tenants to leave
behind personal property and be rehoused elsewhere. The Property is presently under the control
of the Receiver appointed in the underlying receivership proceeding in the Circuit Court, and the
Receiver is scheduled to close on the sale of the Property for $9,050,000.00 on January 8, 2026.
Critically, the closing will resolve a settlement between the Property’s former tenants and
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