Harbor Custom Development, Inc. filed a second amended joint plan of reorganization in the US Bankruptcy Court on June 26, 2024. As per the plan filed, Secured Claim of Buchanan Mortgage Holdings ?Tanglewilde shall be paid in the event the Free and Clear Sale of the Meadowscape property is to a Third-Party Buyer, the Buchanan Allowed Claim shall be $38.3 million, of which $0.3 million shall be designated by Buchanan as a Carveout. The Allowed Claim amount in Scenario 1 reflects a reduction in Buchanan?s asserted prepetition default interest in the amount of $0.75 million.

If the closing on the Third-Party Buyer agreement is after July 15, 2024, the Allowed Claim shall increase by the amount of nondefault interest that would have accrued on the Allowed Claim for every day between July 15 and the closing. In the event of the Free and Clear Sale of the Meadowscape property to Buchanan after Buchanan has been designated the Successful Bidder at the auction, the Buchanan Allowed Claim shall be $38.3 million, of which $0.3 million shall be designated by Buchanan as a Carveout. The Allowed Claim amount in Scenario 2 reflects a reduction in Buchanan?s asserted prepetition default interest in the amount of $0.75 million.

In the event Buchanan is designated as the Back-up Bidder, and Debtors? agreement with the Successful Bidder is not proceeding in accordance with the Bid Procedures Order and the Successful Bidder?s purchase and sale agreement as of July 5, 2024, or at any time thereafter, Debtors shall forthwith notify Buchanan of such development and shall immediately accept Buchanan?s bid as the Successful Bid and shall proceed to close on the terms set forth in such bid. In the event the Free and Clear Sale of the Meadowscape property to Buchanan is because of Buchanan?s status as a Back-up Bidder under the Bid Procedures Order, the Buchanan Allowed Claim shall be $38.3 million, of which $0.3 million shall be designated by Buchanan as a Carveout.

The Allowed Claim amount in Scenario 3 reflects a reduction in Buchanan?s asserted prepetition default interest in the amount of $0.3 million. Secured Claim of Oakhurst Income Fund II?Belfair Phase II is of $5.22 million. Secured Claim of Sound Capital Construction Fund ?

Pacific Ridge shall receive the Pacific Ridge Property in exchange for a $5 million credit bid and the payment of costs of sale and other amounts as set forth in the Settlement Agreement. There are no changes in treatment of any other claim class or sources of plan funding. Harbor Custom Development, Inc. filed a modified second amended joint plan of reorganization in the US Bankruptcy Court on June 27, 2024.

As per the plan filed, there are no changes in treatment of any claim class or sources of plan funding. Harbor Custom Development, Inc. filed a second modified second amended joint plan of reorganization in the US Bankruptcy Court on June 27, 2024. As per the plan filed, there are no changes in treatment of any claim class or sources of plan funding.