MOTION TO LIFT AUTOMATIC STAY Page 1

Craig A. Bernstein

Texas Bar No. 02219400

Todd Goldberg

Texas Bar No. 24072121

LAW OFFICES OF CRAIG A. BERNSTEIN

3710 Rawlins, Suite 1300

Dallas, Texas 75219

214-521-9256 – Telephone

214-521-8995 – Fax

cbernstein@bernsteinlawdallas.com

tgoldberg@bernsteinlawdallas.com

ATTORNEYS FOR CREDITOR

GR ASSOCIATES LLC

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION

In re: § Chapter 11

§ 

COTTONWOOD FINANCIAL LTD., et al. § Case No. 24-80035-swe11

§ 

Debtor. § 

______________________________________ § 

 § 

GR ASSOCIATES LLC § 

§ 

v. § 

§ 

COTTONWOOD FINANCIAL TEXAS LLC § 

f/k/a COTTONWOOD FINANCIAL LTD. § 

MOTION TO LIFT AUTOMATIC STAY

Creditor GR Associates LLC (“Landlord”), as successor-in-interest to North Garland 

Crossing Ltd., a creditor in the above-referenced case, files this Motion to Lift Automatic Stay and 

would respectfully show this Court as follows:

1. Debtor Cottonwood Financial Texas LLC f/k/a Cottonwood Financial Ltd. 

(“Debtor”) filed its voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code on 

February 25, 2024. 

2. On or about August 23, 2004, Debtor, as tenant, executed the Standard 

Commercial Shopping Center Lease (the “Lease”) with Landlord for lease of the premises

containing about 1,050 square feet of leasable floor area located at the North Garland Crossing 

Shopping Center, 5345 N. Garland Avenue, Suite 380, Garland, Texas 75040 (the “Premises”). 

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MOTION TO LIFT AUTOMATIC STAY Page 2

See Sanders Aff. ¶ 4 (App. 001); Lease (App. 003-029). 

3. On or about March 4, 2019, Landlord and Debtor executed the Third Amendment 

to Standard Commercial Lease (the “Amendment”) extending the term of the Lease until 

November 30, 2024 and providing for fixed annual minimum guaranteed rental rates and 

additional rent for the term of the Amendment. See Sanders Aff. ¶ 5 (App. 002); Amendment (App. 

030-034). 

4. On or about November 15, 2021, Landlord purchased the Premises from North 

Garland Crossing Ltd., the former landlord, and sent Debtor a letter providing notice of the change 

of ownership. See Letter from Landlord to Debtor dated November 15, 2021 re: Notice of Change 

of Ownership of North Garland Crossing (App. 070-072).

5. Debtor has defaulted on its monthly payment obligations under the Lease, and as 

of March 5, 2024, has a delinquent balance of $5,323.31 due to Landlord. See Sanders Aff. ¶ 6 

(App. 002); Lease Ledger (App. 035). 

GROUNDS FOR RELIEF

6. Pursuant to 11 U.S.C. § 362(a), Landlord seeks to lift the automatic stay to

commence eviction proceedings against Debtor to obtain possession of the Premises. 

7. Debtor has no equity in the property, and the property is not necessary for an 

effective reorganization. 

8. Landlord does not have adequate protection for its interest in the property. 

9. Pursuant to Rule 4001(a)(3) of the Federal Rules of Bankruptcy Procedure, 

Landlord further requests that the Court enter an order granting this Motion and waiving the 14-

day stay after the entry of the order granting this Motion.

PRAYER

Accordingly, Landlord prays that the Court grant this Motion and enter an order modifying 

the automatic stay to permit Landlord to go forward with eviction proceedings against Debtor; and

for such other and further relief to which it may show itself justly entitled. 

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MOTION TO LIFT AUTOMATIC STAY Page 3

PURSUANT TO LOCAL BANKRUPTCY RULE 4001-1(b), A RESPONSE IS 

REQUIRED TO THIS MOTION, OR THE ALLEGATIONS IN THE MOTION MAY 

BE DEEMED ADMITTED, AND AN ORDER GRANTING THE RELIEF SOUGHT 

MAY BE ENTERED BY DEFAULT.

ANY RESPONSE SHALL BE IN WRITING AND FILED WITH THE CLERK OF 

THE UNITED STATES BANKRUPTCY COURT AT 1100 COMMERCE STREET, 

ROOM 1254, DALLAS, TEXAS 75242 BEFORE THE CLOSE OF BUSINESS ON 

MARCH 25, 2024, WHICH IS AT LEAST 14 DAYS FROM THE DATE OF 

SERVICE HEREOF. A COPY SHALL BE SERVED UPON COUNSEL FOR THE 

MOVING PARTY AND ANY TRUSTEE OR EXAMINER APPOINTED IN THE 

CASE. ANY RESPONSE SHALL INCLUDE A DETAILED AND 

COMPREHENSIVE STATEMENT AS TO HOW THE MOVANT CAN BE 

“ADEQUATELY PROTECTED” IF THE STAY IS TO BE CONTINUED.

Respectfully submitted,

/s/ Craig A. Bernstein 

Craig A. Bernstein

Texas Bar No. 02219400

Todd Goldberg

Texas Bar No. 24072121

3500 Maple Ave., Suite 1220

Dallas, Texas 75219

(214) 521-9256 – Telephone

(214) 521-8995 – Facsimile

cbernstein@bernsteinlawdallas.com

tgoldberg@bernsteinlawdallas.com

ATTORNEYS FOR CREDITOR

GR ASSOCIATES LLC

CERTIFICATE OF CONFERENCE

The undersigned attorney has conferred with counsel for the Debtor by email on March 8, 

2024. Debtor’s counsel is opposed to the relief requested in this Motion. 

/s/ Todd Goldberg

Todd Goldberg

CERTIFICATE OF SERVICE

I hereby certify that, on March 11, 2024, a true and correct copy of the foregoing document 

was served on all parties and/or counsel for the parties via the CM/ECF filing system.

 

 

/s/ Todd Goldberg

Todd Goldberg

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