Investor, Lender Seek to Dismiss Some of Builder Darren Casey's Bankruptcy Cases

Motions argue certain Casey ventures lacked authority to file for Chapter 11 protection

Published on Feb. 25, 2026

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San Antonio-based builder Darren Casey sought bankruptcy protection for 31 of his ventures earlier this month in U.S. Bankruptcy Court in Fort Worth. However, a preferred equity investor and a lender are now alleging that some of the debtors didn't have the authority to seek bankruptcy protection and are asking a judge to dismiss those cases.

Why it matters

The outcome of these motions could have significant implications for Casey's broader bankruptcy proceedings, as the court may determine that certain ventures were not properly authorized to file for Chapter 11 protection, potentially unraveling parts of the bankruptcy process.

The details

The preferred equity investor, Forum SFG Steubing Heights LLC, which holds all of the preferred equity interest in one of Casey's apartment projects, argues its consent was needed but never obtained before the bankruptcy filing. Fifth Third Bank, a major lender in two Casey projects, has also filed a motion arguing that one of the ventures, TAWR Property Owner Ltd., lacked the authority to file for bankruptcy without the consent of its preferred equity holder.

  • On February 25, 2026, Darren Casey sought bankruptcy protection for 31 of his ventures in U.S. Bankruptcy Court in Fort Worth.
  • On March 12, 2026, U.S. Bankruptcy Judge E. Lee Morris will hold a hearing to consider the emergency motions to dismiss some of the bankruptcy cases.

The players

Darren Casey

The founder and CEO of Casey Development Ltd., a San Antonio-based builder who has built more than 4 million square feet of apartments, shops, offices and industrial space along the Interstate 35 corridor in South and Central Texas before running into financial trouble.

Forum SFG Steubing Heights LLC

A preferred equity investor that holds all of the preferred equity interest in one of Darren Casey's apartment projects, the 293-unit Tacara at Steubing Heights complex on the Northwest Side of San Antonio.

Fifth Third Bank

A major lender in two of Darren Casey's projects, including the Tacara at Steubing Heights apartment complex.

TAWR Property Owner Ltd.

One of the 31 Darren Casey ventures that sought bankruptcy protection earlier this month.

Tacara at Steubing Heights Holdings LLC

One of the Darren Casey ventures that sought bankruptcy protection, which is the parent company of TASH Property Owner LLC.

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What they’re saying

“Under Delaware law, actions taken without the requisite authority under a company's governing document are voidable.”

— Forum SFG Steubing Heights LLC (expressnews.com)

“This is not a technical default. TAWR's authority to file is circumscribed by enforceable governance provisions binding its controlling equity owner. Because these mandatory consent rights were ignored, TAWR's Chapter 11 petition was filed without proper authorization. This failure constitutes 'cause' to dismiss TAWR's Chapter 11 case.”

— Fifth Third Bank (expressnews.com)

What’s next

The judge will decide at the March 12 hearing whether to dismiss the bankruptcy cases of the ventures that allegedly lacked the proper authority to file.

The takeaway

This case highlights the importance of proper corporate governance and the need for all stakeholders to follow the required procedures when seeking bankruptcy protection, as the court may determine that certain filings were unauthorized and dismiss them accordingly.