Filing Alert: Scotland Campus Owner Chapter 11

MSLH, LLC, a real estate company whose primary asset is the 185-acre Scotland campus in Chambersburg, PA, filed for Chapter 11 protection on Jan. 1 in the U.S. Bankruptcy Court for the Eastern District of New York.

The filing was precipitated by a mechanics lien judgment and a scheduled Jan. 9 sheriff's sale initiated by creditor For-Med Supply and Repair LLC. The debtor owns the former Scotland School for Veterans’ Children, a 75-building campus it acquired in 2023 for $9 million. The campus faces multiple secured claims, including a $6.2 million mortgage held by Gable Holdings CM-1 LLC and the $674,000 For-Med judgment. A potential buyer, Scotland Estates, LLC, had reportedly scheduled a community meeting to discuss the property's future just prior to the filing.

The company reports $17 million in assets and $13.5 million in liabilities. The filing indicates that no funds will be available for distribution to unsecured creditors after administrative expenses are paid. The case number is 26-40002.

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Top Unsecured Claims

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Key Parties

Counsel:

• Charles Wertman
  Law Offices of Charles Wertman P.C.
  Email: charles@cwertmanlaw.com

Signatories:

• Abraham Bajnon – Member

Equity Security Holders:

• Chaya Bajnon – 50% Equity Interest
• Abraham Bajnon – 50% Equity Interest