Ann B. Brogan, VSB No. 25567

Davey & Brogan, P.C.

101 Granby Street, Suite 300

Norfolk, VA 23510

Telephone: (757) 622-0100

Facsimile: (757) 622-4924

Email: ann.brogan@daveybroganpc.com

Counsel for Chaparral Associates, L.C.

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE EASTERN DISTRICT OF VIRGINIA

Alexandria Division

In re: Chesapeake VA Holdings, LLC, Case No.: 21-10815-KHK

 Chapter 7

Debtor.

CHAPARRAL ASSOCIATES, L.C.,

Movant,

v. Contested Matter

CHESAPEAKE VA HOLDINGS, LLC,

and

DONALD F. KING, TRUSTEE,

Respondents.

NOTICE AND MOTION FOR RELIEF FROM THE AUTOMATIC STAY

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 wish the Court to grant the relief sought in the Motion, or if you want the 

Court to consider your views on the Motion, then within 14 days from the date of service of this 

Motion, you must file a written response explaining your position with the Court and serve a copy 

on the movant. Unless a written response is filed and served within this 14-day period, the Court 

may deem opposition waived, treat the Motion as conceded, and issue an order granting the 

requested relief without further notice or hearing.

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If you mail your response to the Court for filing, you must mail it early enough so the Court 

will receive it on or before the expiration of the 14-day period.

Please take notice that a preliminary hearing on the Motion has been scheduled on this 

matter for Wednesday, August 18, 2020 at 9:30 a.m. before Judge Klinette Kindred, in the United 

States Bankruptcy Court, 200 S. Washington St., Alexandria, VA 22314-5405. Continuing until 

further notice, unless otherwise ordered, all proceedings before Judge Klinette Kindred will be 

conducted by video conference via Zoom for Government. Parties wishing to participate in 

hearings via Zoom for Government must transmit, via e-mail, a completed PDF-fillable request 

form, found at https://www.vaeb.uscourts.gov/wordpress/?wpfb_dl=871 to EDVABK-ZOOMJudge_Kindred@vaeb.uscourts.gov. This email address shall be used only to submit Zoom 

Requests.

If you or your attorney do not take these steps, the Court may decide that you do not oppose 

the relief sought in the Motion and may enter an order granting relief.

MOTION

Movant, CHAPARRAL ASSOCIATES, L.C., (“Chaparral”), a secured creditor in the 

above captioned bankruptcy case, by counsel, respectfully moves this Court pursuant to 11 U.S.C. 

§ 362(d) for entry of an order granting relief from and/or otherwise modifying the Automatic Stay

of 11 U.S.C. § 362(a) in this bankruptcy case with respect to the interests of the Debtor in and to 

the following three parcels of real property (collectively, the “Chesapeake Property”) located as 

described below and further described in the proposed Order attached hereto as Exhibit 1: 

a) 2000 Chesapeake Drive, Chesapeake, Virginia;

b) 2127 Chesapeake Drive, Chesapeake, Virginia; and

c) 2129 Chesapeake Drive, Chesapeake, Virginia.

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In support thereof, Chaparral states the following:

Parties and Jurisdiction

1. On May 5, 2021, (the “Petition Date”), the Debtor commenced this case by filing a 

voluntary petition for relief under Chapter 7 of Title 11 of the United States Code (the “Bankruptcy 

Code”).

2. Donald F. King was appointed Chapter 7 trustee (the “Trustee”).

3. Chaparral is a Virginia limited liability company and a secured creditor of the 

Debtor. 

4. The Court has subject matter jurisdiction over this matter pursuant to 28

U.S.C. §§ 157 and 1334.

5. This matter is a core proceeding according to 28 U.S.C. § 157(b), and venue 

is proper under 28 U.S.C. §§ 1408 and 1409.

Procedural History

6. On June 10, 2021, the Trustee telephonically conducted the first meeting of 

creditors in accordance with 11 U.S.C. § 341 (“341 Meeting”). 

7. On July 8, 2021, the Trustee filed in this Case a Request for Asset Notice.

8. On July 11, 2021, the Clerk filed a Notice of Need to File Proof of Claim by October 

12, 2021, which was mailed to creditors and parties in interest listed on the matrix for this Case.

Factual Background

9. The Debtor was established by filing articles of organization on August 11, 2017, 

with the Virginia State Corporation Commission. 

10. By Deed of Bargain and Sale dated September 29, 2017, Chaparral conveyed the 

Chesapeake Property to the Debtor.

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11. Chaparral is the holder of a Real Estate Note dated September 29, 2017, executed 

by the Debtor in the principal amount of $ 1,750, 000.00 (the “Note”). The Note is secured by the 

lien secured by a first priority deed of trust lien on the Chesapeake Property dated September 29, 

2017, and recorded in Deed Book 9842, Page 833, in the Clerk’s Office for the Circuit Court for 

the City of Chesapeake, Virginia, as Instrument # 27876 (the “First Deed of Trust”). Copies of 

the Note and First Deed of Trust are attached as Exhibits 2 and 3, respectively.

12. The Note provided for interest only payments of $7,875.00 per month, with all 

outstanding principal and interest due in full on October 1, 2020.

13. The Chesapeake Property is also encumbered by a lien of a junior deed trust dated 

September 30, 2017, and recorded in Deed Book 9842, Page 846, in the Clerk’s Office for the 

Circuit Court for the City of Chesapeake, Virginia, as Instrument # 27877 (the “Second Deed of 

Trust”). The Second Deed of Trust secures payment of the “base principal sum” of $825,000.00, 

“bearing interest and being payable as is more fully set forth in the Operating Agreement” to 

insiders of the Debtor.

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14. The Debtor failed to pay the Note as and when it came due and stopped paying 

monthly interest. Chaparral directed the trustees under the Deed of Trust to proceed to foreclosure. 

The sale by public auction scheduled for May 6, 2021, was cancelled when the Debtor filed its 

petition the day before.

15. The Debtor has not paid real estate taxes and stormwater fees due the City of 

Chesapeake from December 2019 through the Petition Date.2

16. As of May 5, 2021, the following was due Chaparral under the Note:

1 The Debtor did not identify any “officers, directors, managing members, . . ., members in control, . . . or other 

people in control of the Debtor at the time of the filing of this case” in response to question 28 of the Statement of 

Financial Affairs filed with the Petition. 2 These claims are not listed on the Debtor’s schedules. 

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Outstanding principal balance: $1,570,000.00

Unpaid interest due to May 5, 2021 42,685.80

Late fees due to May 5, 2021 1,973.75

Real estate taxes through December 31, 2020 60,820.77

Collection costs to May 5, 2021 3,111.44

Attorney 's fees to May 5, 2021 8,233.75

 

Balance due through May 5, 2021 $1,686,825.51

Interest has continued to accrue post-petition at $263.16 per day ($7,895.00 per month). Late fees

accrue post-petition at $393.75 per month. Additional real estate taxes of $9,550.38 were due June 5, 

2021. Chaparral continues to incur attorneys’ fees and expenses and other collection costs.

17. The Chesapeake Property are comprised of multifamily apartment buildings comprised 

of approximately forty-eight rental units and a small commercial strip with three to five bays, all 

bordering on Chesapeake Drive in the City of Chesapeake. Rents, if any, from the Chesapeake 

Property generate substantially all the gross income of the Debtor.3

 The Debtor did not conduct any 

business on the Chesapeake Property other than activities incidental to the operation of the properties. 

The Debtor’s petition identifies the principal place of the Debtor’s business as 19142 Stream Crossing 

Court in Leesburg, Virginia, which, upon information and belief, is a single-family home in Loudoun 

County.

18. The condition of the Chesapeake Property has deteriorated and continues to deteriorate. 

Most of the apartments and commercial units are vacant and boarded up, with many buildings bearing 

signs posted by the City of Chesapeake declaring the structures unsafe and/or unfit for human 

occupancy. 

3 Other than the Chesapeake Property, the only assets the Debtor identified on its schedules were $1,000.00 cash in a 

Capital One checking account, $8,000.00 held by Gifford Property Management, and claims for unpaid rent of 

unknown value. The Debtor did not disclose any revenue in Part 1 of the Statement of Financial Affairs. 

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19. The Deed of Trust requires the Debtor to carry adequate hazard insurance coverage on 

the Chesapeake Property, acceptable to Chaparral, the Noteholder, with a standard mortgage clause in 

all policies and renewals in favor of the Noteholder.

20. Although the designated represented of the Debtor testified at the 341 Meeting on June 

10, 2021, that insurance coverage for the Chesapeake Property had been “re-activated,” six-month 

coverage effective June 30, 2021, was not procured until at least July 8, 2021, and certificates in favor 

of Chaparral were not issued until July 28 and July 29, 2021. 

21. The total tax assessed value of the Chesapeake Property as of the Petition Date was 

approximately $2,245,000:

22. The only creditors the Debtor identified on its schedules are the beneficiaries of the 

First Deed of Trust and the Second Deed of Trust. 

23. The representative of the Debtor also testified at the 341 Meeting that the Debtor 

had engaged a sales agent and had received offers for the purchase of the Chesapeake Property

that would satisfy the liens on the properties and could close within 45 days of acceptance.

24. Upon information and belief, the Trustee does not intend to operate the Debtor’s 

business, is not collecting any rents or otherwise managing the Chesapeake Property, and intends 

to sell the Chesapeake Property for the benefit of the estate.

Grounds For Relief

25. It is in the interests of all parties in interest that the Chesapeake Property be sold as 

expeditiously as possible. 11 U.S.C. § 704(a). 

No Rental Units 20-21 Tax Assessment

2000 Chesapeake Dr. 20 apts. $971,200 

2127 Chesapeake Dr 20 apts. 968,600

2129 Chesapeake Dr. 8 apts. and strip

(3-5 units)

$304,800 

$2,244,600 

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26. More than forty-five days have passed since the Debtor represented to the Trustee 

that it had identified buyers with purported offers sufficient to pay off the secured creditors. The 

Trustee has not sought court approval of any offer or of an expeditious process for the sale of the 

Chesapeake Property. Given the deteriorating condition of the properties, the risk of loss of value,

and the increasing balances due the City of Chesapeake and Chaparral, the risk to the estate due to 

unnecessary delay in the liquidation of the Chesapeake Property outweighs any theoretical benefit 

from unrealistic expectations of the Debtor or insider junior lienholders and is not in the interest 

of the estate. 

27. Good cause exists to grant Chaparral relief from the Automatic Stay with respect 

to the Chesapeake Property pursuant to 11 U.S.C. §362(d)(1), including the lack of adequate 

protection of Chaparral’s interests in the Chesapeake Property. 

28. Furthermore, by the filing of this case under Chapter 7, the Debtor conceded it is 

unable to propose a confirmable plan of reorganization and the Chesapeake Property is not 

necessary to an effective reorganization.

29. Chaparral is entitled to relief under 11 U.S.C. § 362(d)(2). Given the inability of 

the Debtor to reorganize, the value of the Chesapeake Property relative to the liens on the property, 

and its deteriorating condition, the Debtor does not have any equity in the Chesapeake Property.

30. Chaparral is entitled to relief from the stay of any act against single asset real estate 

under 11 U.S.C. § 362(d)(3). The Chesapeake Property is single asset real estate, as defined in 11 

U.S.C. § 101(51B). The Debtor has not paid interest at the contract rate of 6% in all of 2021, and 

upon filing of the Case is unable to commence at any time making monthly payments from the 

rents, or otherwise. 

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WHEREFORE, Chaparral Associates, L.C., respectfully requests this Court to enter an 

Order granting it relief from the Automatic Stay of 11 U.S.C. §362(a) with respect to the property

described on Exhibit A to the Proposed Order, attached hereto, on the terms provided in the 

Proposed Order; waiving the 14-day stay described by Fed. R. Bankr. P. 4001(a)(3); and granting 

such other and further relief as this Court deems appropriate.

DATE: August 1, 2021 CHAPARRAL ASSOCIATES, L.C.

By: /s/ Ann B. Brogan

Of Counsel

Ann B. Brogan, VSB No. 25567

Davey & Brogan, P.C.

101 Granby Street, Suite 300

Norfolk, VA 23510

Telephone: (757) 622-0100

Facsimile: (757) 622-4924

Email: ann.brogan@daveybroganpc.com

Counsel for Chaparral Associates, L.C.

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CERTIFICATE OF SERVICE

I certify that on August 1, 2021, a true copy of the foregoing Motion was electronically 

filed with the Clerk of Court using the CM/ECF system, which will send e-mail notice of and serve 

such filing on those parties currently listed on the Electronic Mail Notice List, and was mailed via 

first class mail, postage prepaid to the Debtor and other parties in interest with interests in and to 

the Chesapeake Property:

CHESAPEAKE HOLDINGS VA, LLC, Debtor

19142 STREAM CROSSING COURT

LEESBURG, VA 20176-6874

NAPOLEON IBIEZUGBE, MANAGER

DESIGNATED DEBTOR REPRESENTATIVE

2129 CHESAPEAKE DRIVE 

CHESAPEAKE, VA 23324-2060 

BARBARA O. CARRAWAY, CPA, MGT

CITY TREASURER

306 CEDAR ROAD

CHESAPEAKE, VA 23322

CITY OF CHESAPEAKE TREASURER'S OFFICE

PO BOX 16495

CHESAPEAKE VA 23328-6495

ANK ENTERPRISES, LLC, 

4313 ROSEDALE

UPPERVILLE, VA 20184-0000

ANK ENTERPRISES 

NAHEED G ABBAS, REGISTERED AGENT

10130-B COLVIN RUN RD

GREAT FALLS, VA, 20814 - 0000, USA

F&N ENTERPRISES, LLC

P.O. BOX 8881

RESTON, VA 20195-2781

F&N ENTERPRISES, LLC

FARZAD GHASSEMI, REGISTERED AGENT

8350 GREENSBORO DR., #714

MCLEAN, VA, 22102 -

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TUCKER FAMILY, LLC, 

1577 SPRING HILL ROAD, SUITE 300A, 

VIENNA, VA 22182-2223

TUCKER FAMILY, LLC 

LAWRENCE ELIOT TUCKER, REGISTERED AGENT 

1224 COLVIN MEADOWS LANE, SUITE 200B,

VIENNA, VA, 22066 – 0000

GIFFORD PROPERTY MANAGEMENT

1547 E LITTLE CREEK RD 

NORFOLK, VA 23518-4142

 /s/ Ann B. Brogan

Ann B. Brogan

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