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72.
The Receiver – with the support and approval of FourLeaf – agreed to settle the
dispute with Cyclone and sought approval of the Virginia Circuit Court for the settlement.
73.
I have attached as Exhibit 6 a true and complete copy of the Receiver’s motion to
approve the settlement attached to which is the applicable settlement agreement.
74.
Settlement of a dispute like this is in the discretion of the Receiver, subject to
approval of the Virginia Circuit Court. With the approval of FourLeaf, the Receiver determined
that it was in the receivership’s best interests to resolve the dispute without the delay, cost, and
risk of litigation. With the closing of the sale of the Property, the receivership could be wrapped
up and terminated. If the Receiver were to litigate the dispute with Cyclone, the receivership
would likely continue for months and perhaps longer should either the Receiver or Cyclone appeal
an adverse decision. All litigation has risk, and a settlement now without litigation mitigates that
risk fully.
75.
The Debtor was served with the Receiver’s motion for approval of the Cyclone
settlement and the notice of hearing. At no time did the Debtor directly or through its Virginia
counsel object to the settlement.
The Property Should Remain in the Receivership
76.
The Debtor’s CRO suggests that his skills and experience at stabilizing and
restructuring distressed real estate projects, his service as a real estate “triage” professional, his
experience in bringing competing parties together, implementing restructuring and disposition
strategies, etc. somehow is needed here.
77.
The Debtor’s CRO says he is familiar with the operations of the Debtor, but there
are no operations. The Debtor essentially abandoned the Property which required FourLeaf to take
Case 25-23251-MEH Doc 18-13 Filed 12/22/25 Entered 12/22/25 20:08:18 Desc
Affidavit Page 14 of 16
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