To the right are the tallied results from GOMO’s recent bankruptcy plan vote which ended April 1, 2019. The Class 5 results are believed to be the most significant and sure to have the greatest influence on the bankruptcy court judge based on his prior comments during public hearings, and because Class 5 reflects the interests of those residing within and maintaining a continued stake in the future of Garden Oaks. Note that Class 5 includes homeowners who are a mixture of both non-creditors and creditors.
The Class 5 vote was effectively split, 50/50, and consequently the GOMO Board chose not to seek confirmation of the plan by the bankruptcy judge. A primary goal of exiting bankruptcy has been to bring resolution and closure to the neighborhood in regards to its HOA, and seeking confirmation of this plan in light of split results would have done the opposite, only serving to incite further discord.
Despite being a split vote, some useful insight into homeowners’ priorities was gained. Multiple ballots were returned with supplemental text stating the voter would have affirmatively voted for the plan if not for the inclusion of the $80 annual fee. Neighbors, particularly those who have already paid a fee, clearly do not wish to pay another nor is there much appetite for the annual assessment. Many Class 3 creditors are also homeowners voting in Class 5, and through their votes it was made clear that receiving maximum value of any monies to be returned to creditors was a priority. Although we believe that updated Deed Restrictions with a reasonable amendment method to facilitate future revisions are integral to the future success of the HOA, clearly this was not as highly prioritized as: 1) Maximize monies returned to Creditors and 2) Minimize monies that must be paid out by Homeowners in the future.
What now? Without a confirmed plan, GOMO remains in bankruptcy. More cost, more pain, but hopefully a better plan will emerge which may unify and receive full backing from the neighborhood. Representatives of GOMO and the Creditor Committee met during the voting period, and both groups’ attorneys continue to be in discussion about ways to move forward, hopefully with a unified plan. The next bankruptcy court hearing is set for May 9, 2019, although there is a possibility it could be earlier if GOMO and the Creditor Committee reach an agreement on a jointly acceptable plan.
