A Lake Travis marina tied to embattled developer Nate Paul could slip out of Chapter 11 this week if a judge signs off on a proposed exit-financing package. The question of whether that money is enough to end the case is set to land in front of U.S. Bankruptcy Judge Christopher G. Bradley on Wednesday morning.
The bankruptcy docket shows the debtor has filed an emergency motion asking for approval of post-petition exit financing and requested that the court move quickly on it, Inforuptcy indicates. Those filings were entered in mid December, and the docket also lists an early February deadline for creditors to submit claims.
How the financing would work
According to reporting by the Austin American-Statesman, the proposed lender, identified in court papers as WM Capital, would provide roughly $6 million in exit financing that would be used to pay off existing creditors. The outlet reports that the loan would carry an interest rate of about 14.5%, and that the company faces a claim of about $5.6 million from an entity listed as AC VIP PC Marina Debt LLC, along with outstanding local property taxes.
Local stakes at Lake Travis
Paradise Cove is the single-asset property at the center of the case, and commercial listings, including CoStar, identify the marina on Lake Travis at 17141 Rocky Ridge Road. Separately, the Travis County Attorney has sued several entities affiliated with Paul, seeking roughly $2.3 million in unpaid property taxes and legal fees, a backdrop that adds pressure to creditors and the court, KUT reports.
How we got here
World Class Holdings, Paul’s company, has been under legal strain since an FBI search of his offices in 2019 and a federal indictment in 2023 accusing him of making false statements to lenders. The indictment is detailed by the U.S. Attorney's Office, and coverage of his later guilty plea and sentence is available from the Dallas News, which noted a $1 million fine and a term of home confinement in 2025.
What to watch this week
At Wednesday’s hearing, Judge Bradley can decide whether the proposed financing treats creditors fairly and is strong enough to justify dismissing the case, which would return Paradise Cove to private control, or whether creditors should keep pressing for other remedies under court supervision. The lineup of objections, responses, and deadlines that will shape how fast the case moves toward resolution is laid out in the recent filings and docket entries, according to Inforuptcy.
Legal implications
Any dismissal will turn on whether the exit-financing package fully pays covered claims and protects creditor rights. One interested party has already filed a written response to the emergency financing motion, according to reporting that cites court filings in the Austin American-Statesman. Depending on how Judge Bradley rules, Paradise Cove could emerge from Chapter 11 under the proposed terms or remain under bankruptcy court oversight while creditors pursue other avenues for recovery.
