Dear Friends of Warfield:
On March 26, 2024, the five entities owning the various properties comprising Warfield at Historic Sykesville filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court. Under Chapter 11 protection, Warfield Companies will continue normal operations, which consists mainly of pursuing the development of Warfield’s vacant parcels and, most importantly, the rehabilitation of the project’s vacant buildings. Vendors and contractors will continue to be paid for work performed post-petition in connection with the project.
The Chapter 11 filing was a direct response to the Town of Sykesville’s actions to take back ownership of the property after selling it to the developer in 2018. These actions most recently included an attempt to foreclose on the property and began in earnest last spring when the town filed lawsuits against Warfield entities in state court to wrest control of the project’s historic buildings from the owner. The town left the developer no other option but to file for Chapter 11 to protect its substantial investment in the Warfield project.
The developer currently has over $6 million invested in the project and has cumulatively invested over $14 million, and, subject to court approval, it will continue to fund the project while in Chapter 11 and beyond. In addition to making major capital investments, the developer has worked tirelessly to pursue the state’s original vision for the Warfield property when it was transferred to the town in 2002. This includes taking steps to make the project financially viable and attractive for both private and public investment, which is essential to preserving and putting back into service Warfield’s historic buildings, not to mention achieving the “smart growth” goals set forth in the Town of Sykesville’s original agreement with the state.
It is important to distinguish between Chapter 7 and Chapter 11 bankruptcy. Chapter 7 is a liquidation, which is different from what the developer is pursuing here. Chapter 11 bankruptcy protection will allow Warfield to defend itself from the town’s continued attacks and reorganize while continuing to operate. We expect to file a timely reorganization plan with the court that will enable us to continue pursuing our vision for the project and pay all creditors in full.
Please contact Steve McCleaf at 571-215-0000 or send an email to smccleaf@langleyrealtypartners.com should you have any questions or concerns.
Regards,
WARFIELD COMPANIES
Steven D. McCleaf
Senior Vice President