August 21, 2025

San Antonio Real Estate Faces Bankruptcy Challenges

News Summary

San Antonio’s real estate market is in turmoil as prominent investor Ali Choudhri files for Chapter 11 bankruptcy affecting two local companies. The filings, surprising to many given Choudhri’s stature, reveal serious financial issues and legal battles that have plagued his operations. With assets between $1 million and $10 million in liabilities, questions loom over the future of Choudhri’s enterprises and the local real estate landscape. Upcoming court hearings will determine the course of action as the community watches closely.

Texas Investor Ali Choudhri Files Chapter 11 Bankruptcy for Two Companies in San Antonio

Ali Choudhri, a Texas real estate investor and developer, has filed Chapter 11 bankruptcy petitions for two of his companies, Meandering Bend LLC and Memorial Glen Cove LLC, in San Antonio. The filings took place in the U.S. Bankruptcy Court located at the Hipolito F. Garcia Federal Building and U.S. Courthouse.

Choudhri has amassed over $1.2 billion in real estate assets during his career and is known for developing the tallest single-family house in Texas. However, his financial challenges have led him to multiple court appearances, including state district courts in Harris and Travis counties, as well as appeals courts in Houston and the Texas Supreme Court. His latest legal troubles include a Chapter 7 case involving Jetall Cos, where he served time in jail for civil contempt of court after failing to provide required documents.

The bankruptcy petitions for Meandering Bend and Memorial Glen Cove reported assets and liabilities between $1 million and $10 million. A court appearance has been scheduled by U.S. Bankruptcy Judge Michael Parker for Choudhri or his lawyer on August 27 to consider the possibility of transferring the cases to Austin, where the companies list their principal addresses.

Just prior to the San Antonio filings, Choudhri initiated a Chapter 11 case for Dalio Holdings LLC in Austin. This firm has a Houston address and reported nearly $20 million in assets. The recent bankruptcy actions may indicate a response to ongoing litigation concerning office space in Houston that weighs heavily on his financial situation, a legal battle that has persisted for over 13 years. According to reports, a court receiver in Houston sought to take control of the assets of both Meandering Bend and Memorial Glen Cove, aiming to sell them even before the bankruptcy was filed.

Meandering Bend, which operates as Austin Monumental Arts, owns a building located on E. 16th St. with an appraisal of over $600,000; however, it currently has a mortgage amounting to $441,000. The building is described as vacant and bare. Meanwhile, Memorial Glen Cove owns four vacant lots along with a residence at 207 Malone St. in Houston, which has been classified as uninhabitable, and Choudhri maintains almost $2 million in equity in these properties.

Adding complexity to his situation, Choudhri amended the bankruptcy petition for Memorial Glen Cove to reflect a change of its business address from Austin to Kerrville. Additionally, a court receiver has sought sanctions against Choudhri in a Harris County court for failing to submit necessary documents. Choudhri has challenged the jurisdiction of this court and is preparing to appeal issues related to the case to the 14th Court of Appeals in Houston. He has faced complications in complying with appeal court requirements, having been ordered to submit a brief by September 18 or risk dismissal of the case.

On August 13, Choudhri attempted to transfer a state lawsuit from Houston to bankruptcy court in San Antonio; however, this request was denied due to jurisdictional concerns. The bankruptcy judge subsequently mandated that both associated lawsuits return to the originating Harris County court.

Separately, Choudhri has also filed a lawsuit in Travis County, alleging he was barred from bidding on a property during a foreclosure auction, which he claims was a result of fraudulent practices surrounding the foreclosure process.

As the bankruptcy proceedings unfold, stakeholders will be closely monitoring the developments to understand the potential implications for Choudhri’s companies and his ongoing legal entanglements.

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Author: STAFF HERE GEORGETOWN

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