4852-0310-1083.1

KUTAK ROCK LLP

Jeremy S. Williams (VSB No. 77469)

Riverfront Plaza

901 East Byrd Street, Suite 1000

Richmond, Virginia 23219

Telephone: (804) 644-1700

jeremy.williams@kutakrock.com

Counsel for RREF II BB 2014-1 Acquisitions, LLC

IN THE UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

RICHMOND DIVISION

_______________________________________________

 )

 In re: ) Chapter 7

)

 SHRIDHAR V. BHAT ) Case No. 19-31691-KLP

)

Debtor. )

_______________________________________________ )

NOTICE OF MOTION

Your rights may be affected. You should read these papers carefully and 

discuss them with your attorney, if you have one in this bankruptcy case. (If you do not have an 

attorney, you may wish to consult one). If you do not want the Court to grant the relief sought 

in the motion, you must do the following:

1. You must file with the court, at the address shown below, a written response 

pursuant to Local Bankruptcy Rules 9013-1 not later than fourteen days after the date of 

service noted below:

Clerk of the Court

United States Bankruptcy Court

701 E. Broad Street

Richmond, VA 23219

2. You must also mail a copy to:

Jeremy S. Williams, Esquire

KUTAK ROCK LLP

901 East Byrd Street, Suite 1000

Richmond, Virginia 23219

Office of the United States Trustee

701 E. Broad Street, Suite 4304 

Richmond, VA 23219

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3. No hearing has been set with respect to the motion. If you object to the 

motion, you must file the objection timely with the Court. If an objection is timely filed and a

hearing is required, you must attend the hearing in addition to filing a written objection to the 

motion. If you fail to file timely a written response and/or to attend the hearing, the Court may 

consider any objection you may have waived and enter an Order granting the relief requested in 

the motion.

Dated: July 2, 2019 /s/ Jeremy S. Williams

Richmond, Virginia KUTAK ROCK LLP

Jeremy S. Williams (VSB No. 77469)

Riverfront Plaza

901 East Byrd Street, Suite 1000

Richmond, Virginia 23219-3500

Telephone: (804) 644-1700

Facsimile: (804) 783-6192

jeremy.williams@kutakrock.com

Counsel for RREF II BB 2014-I Acquisitions, LLC

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4852-0310-1083.1

KUTAK ROCK LLP

Jeremy S. Williams (VSB No. 77469)

Riverfront Plaza

901 East Byrd Street, Suite 1000

Richmond, Virginia 23219

Telephone: (804) 644-1700

jeremy.williams@kutakrock.com

Counsel for RREF II BB 2014-I Acquisitions, LLC

IN THE UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

RICHMOND DIVISION

_______________________________________________

 )

 In re: ) Chapter 7

)

 SHRIDHAR V. BHAT ) Case No. 19-31691-KLP

)

Debtor. )

_______________________________________________ )

MOTION TO DEFER THE GRANTING OF THE DISCHARGE AND TO EXTEND 

TIME TO OBJECT TO DISCHARGE OR DISCHARGEABILITY OF DEBT

RREF II BB 2014-1 Acquisitions, LLC (the “Creditor”), by counsel, moves to defer the 

granting of the discharge of Shridhar Bhat (the “Debtor”) and to extend the time to file a 

complaint objecting to the discharge or to the dischargeability of certain debt to and including 

October 11, 2019 pursuant to Rules 4004 and 4007 of the Federal Rules of Bankruptcy 

Procedure (the “Rules”), and states:

BACKGROUND

The $2 Million Note

1. Lacova-Bhat, L.C. (“Lacova”), Tanglewood Home for Adults, Inc. (“Tanglewood 

Inc.”), Tanglewood Home for Adults, L.C. (“Tanglewood L.C.”), Alleghany Manor LLC a/k/a 

Alleghany Manor LC (“Alleghany Manor” and together with Lacova, Tanglewood Inc. and 

Tanglewood L.C., the “Borrowers”) are indebted to the Creditor pursuant to a Promissory Note 

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dated August 27, 2008 in the original principal amount of $2,180,000.00 (as amended, modified 

and/or restated, the “$2 Million Note”). 

2. The $2 Million Note is subject to the terms of that certain Loan Agreement 

dated August 27, 2008 (the “Loan Agreement”). 

3. The $2 Million Note is secured by, among other things: (i) certain real property 

located in Alleghany County, Virginia (the “Property”) pursuant to and as further described in 

that certain Deed of Trust dated August 27, 2008 (the “$2 Million Deed of Trust”) and recorded 

in the Clerk’s Office for Alleghany County (the “Clerk’s Office”) on August 28, 2008 as 

Instrument Number 080002186; and (ii) all leases and rents arising in connection with the 

Property pursuant to an Assignment of Leases and Rents dated August 27, 2008 and recorded in 

the Clerk’s Office on August 28, 2008 as Instrument Number 080002188 (the “Assignment of 

Rents”). 

4. Shridhar Bhat (the “Debtor”) personally and unconditionally guaranteed the 

obligations of Lacova due under the $2 Million Note pursuant to a Guaranty Agreement dated 

August 27, 2008 (the “Bhat Guaranty”). 

5. The Irrevocable Trust FBO Robert L. Bhat Under Trust Agreement Dated January 

20, 1997 (“Robert Bhat Trust”), the Irrevocable Trust FBO Nancy Bhat Under Trust Agreement 

Dated October 17, 2013 (“Dated Nancy Bhat Trust”), and the Irrevocable Trust FBO Nancy Bhat 

(“Undated Nancy Bhat Trust” and together with the Debtor, the Robert Bhat Trust and the Dated 

Nancy Bhat Trust, the “Guarantors”) personally and unconditionally guaranteed the obligations 

of Lacova and Tanglewood L.C. due under the $2 Million Note pursuant to various Guaranty 

Agreement(s) dated October 15, 2013 (collectively, the “Trust Guaranties” and together with the 

Bhat Guaranty, the “Guaranties”). 

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The $250k Note

6. The Borrowers are also indebted to the creditor pursuant to a Promissory Note 

dated August 27, 2008 in the original principal amount of $250,000.00 (as amended, modified 

and/or restated, the “$250k Note”). 

7. The $250k Note is also subject to the terms of the Loan Agreement.

8. The $250k Note is secured by, among other things, the Property pursuant to and 

as further described in that certain Deed of Trust dated August 27, 2008 (as amended, modified 

and/or restated, the “$250k Deed of Trust”) and recorded in the Clerk’s Office on August 28, 

2008 as Instrument Number 080002187.

9. The Debtor personally and unconditionally guaranteed the obligations of Lacova 

under the $250k Note pursuant to the Bhat Guaranty.

10. The Robert Bhat Trust, the Dated Nancy Bhat Trust and the Undated Nancy Bhat 

Trust personally and unconditionally guaranteed the obligations of Lacova and Tanglewood L.C. 

due under the $250k Note pursuant to the Trust Guaranties. 

The $50k Note

11. The Debtor is also indebted to the Creditor pursuant to a Promissory Note dated 

March 22, 2010 in the original principal amount of $50,000.00 (as amended, modified and/or 

restated, the “$50k Note” and together with the $2 Million Note and $250k Note, the “Notes”). 

12. The $50k Note is subject to the terms of that certain BB&T ChoiceLine 

Agreement dated March 27, 2012 (as amended, modified and/or restated, the “ChoiceLine 

Agreement”).

13. The $50k Note is secured by, among other things, the Property pursuant to and as 

further described in that certain Credit Line Deed of Trust (as amended, modified and/or 

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restated) and recorded in the Clerk’s Office on December 10, 2012 as Instrument Number 

120002379. 

Default, Judgment and Collection

14. Tanglewood defaulted under the terms of the Notes and on October 30, 2014, the 

Creditor filed a Complaint against the Borrowers and the Guarantors (collectively, the 

“Obligors”) in the Circuit Court for the City of Richmond [Case No. CL14004783-00] seeking 

judgment in connection with the obligations due and owing under the Note (the “Suit”). 

Subsequent thereto and after the Obligors were sanctioned for failing to comply with various 

discovery requests, the Creditor and the Obligors executed a Settlement Agreement dated 

January 19, 2016 (the “Settlement Agreement”). 

15. Under the Settlement Agreement, the Obligors were required to make certain 

payments to the Creditor and the Obligors granted the Noteholder a consent order granting 

judgment to be submitted in the event they failed to satisfy their obligations under the Settlement 

Agreement. The Obligors defaulted on their obligations under the Settlement Agreement and on 

April 3, 2017, the Circuit Court for the City of Richmond entered the Consent Order Granting 

Judgment (the “Judgment”). 

16. On March 29, 2019, the Debtor filed a voluntary petition for relief under Chapter 

7 of the Bankruptcy Code. 

REQUEST FOR RELIEF

17. This Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1334 and this 

matter constitutes a core proceeding as set forth under 28 U.S.C. § 157.

18. Since obtaining Judgment and the filing of the bankruptcy, the Creditor has been 

working diligently to try and understand the Debtor’s assets and liabilities. Such efforts have 

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included numerous requests pursuant to Rule 2004 and the examination of the Debtor, his wife 

and his son. Despite such efforts, the Creditor remains in the dark about several aspects of the 

Debtor’s finances and the Debtor continues to disclaim knowledge about integral parts of assets 

and liabilities. In addition, those examinations and additional documentation produced by other 

examinees has left the Creditor with certain unanswered questions. Accordingly, the Creditor 

requested authority to seek additional documents under Rule 2004 on June 21, 2019 [Docket No. 

84]. The Creditor is still waiting for the receipt of such documents and for the transcripts from 

the examination of the Debtor and related parties.

19. At this time, questions remain unresolved regarding the use of over a million 

dollars by the Debtor, the legitimacy of a transaction whereby he gifted his son a bowling alley 

and related property worth millions of dollars and the Debtor’s general inability to account for 

his assets and liabilities.

20. In order to have more clarity and understand the full scope of the Debtor’s 

misrepresentations and other actions which impact his ability to obtain a discharge or discharge 

of the debt owed to the Creditor, the Creditor needs to review the transcripts from the 

examination and compare them with the documentation it has previously received and then 

prepare the complaint in this matter, which the Creditor anticipates will be substantial. In 

addition, the Creditor needs to review the additional documents it anticipates receiving from the 

most recent round of requests.

21. The deadline for the parties to move to extend the deadline for objecting to the 

Debtor’s discharge or the dischargeability of certain debt is set to expire on July 8, 2019. Given 

the complexity of the case, the need to review the transcript and the fact that the Creditor has not 

yet received, nor had an opportunity to review the additional requested documentation, an 

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extension of the deadline for the Creditor to object to the Debtor’s discharge and the 

dischargeability of the debt is appropriate.

22. Pursuant to Local Bankruptcy Rule 9013-1, because there are no novel issues of 

law presented in this Motion and because all applicable authority is set forth in the Motion, the 

Creditor requests that the Court waive the requirement that this Motion be accompanied by a 

written memorandum.

WHEREFORE, the Creditor requests the Court to defer the granting of the Debtor’s

discharge, extend the time to file a complaint objecting to the discharge or to the dischargeability 

of certain debt to and including October 11, 2019, and to award any further relief the Court 

deems proper.

RREF II BB 2014-I ACQUISITIONS, LLC

 By: /s/ Jeremy S. Williams

 Counsel

KUTAK ROCK LLP

Jeremy S. Williams (VSB No. 77469)

901 East Byrd Street, Suite 1000

Richmond, VA 23219-3500

Telephone: (804) 644-1700 

jeremy.williams@kutakrock.com

 Counsel to RREF II BB 2014-I Acquisitions, LLC

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CERTIFICATE OF SERVICE

Pursuant to the Local Rules of this Court, I hereby certify under penalty of perjury that a 

true and correct copy of the foregoing was served to all counsel of record via the Court’s ECF, 

certified mail and/or first-class mail, on July 2, 2019, as follows:

Debtor (by First-Class Mail):

Shridhar Bhat

6331 River Road

Henrico, VA 23229

Counsel (by CM/ECF):

David K. Spiro

Spiro & Browne

6802 Paragon Place, Ste. 410

Richmond, VA 23230

U.S. Trustee (by CM/ECF):

John P. Fitzgerald, III

Office of the U.S. Trustee

701 E. Broad Street, Ste. 4304

Richmond, VA 23219

By: /s/ Jeremy S. Williams

 Counsel

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