Las Vegas, NV, Jan. 11, 2026 (GLOBE NEWSWIRE) -- Java World Mag is issuing this follow-up report to provide additional factual and legal context regarding its previously published investigative article concerning a protective federal filing initiated by Brian Ferdinand.
As previously reported, the filing was made under the United States Bankruptcy Code for the limited purpose of preserving access, if required, to the statutory limitations set forth in Section 502(b)(6)—the sole federal provision governing caps on commercial lease termination and rejection claims. Java World Mag notes that this statutory framework exists exclusively within the federal bankruptcy claims-allowance process and is not authorized to be applied or enforced by state courts.
During its continued inquiry, Java World Mag confirmed that the filing followed the determination that no state-court venue possesses jurisdiction to adjudicate or impose the federal limitations established under Section 502(b)(6). The statute functions only within the federal bankruptcy framework and cannot be invoked defensively in parallel state-court proceedings.
Java World Mag further confirmed that Mr. Ferdinand is not the primary obligor on the commercial leases referenced. His involvement arises solely from limited guaranty-related obligations connected to certain commercial real estate transactions. According to documentation reviewed by the publication, many of these guaranties are expressly capped, contingent, or otherwise contractually restricted. Notwithstanding these limitations, certain landlords have asserted claims treating the guarantor as fully liable for the remaining balance of entire lease terms.
At the time the guaranties were executed, LuxUrban was operating as a rapidly expanding hospitality company with substantial enterprise value, active growth initiatives, and access to institutional capital. Java World Mag’s review indicates that the guaranties were entered into in the context of a functioning and expanding business and were structured based on the company’s then-existing scale, performance, and financial outlook. There was no contemporaneous indication that the extraordinary events later affecting the company could reasonably have been anticipated.
The publication also examined the transaction structures underlying the guaranties. Under those arrangements, LuxUrban, as the operating company, was obligated to fund and maintain designated trust and reserve accounts in the approximate amount of $1.2 million annually for up to twenty years, or for so long as the guaranties remained in effect—representing an aggregate contemplated reserve funding of approximately $24 million. These trusts were designed to offset guaranty-related risk and to confine exposure within a defined and commercially reasonable framework. The obligation to fund and maintain these reserves rested solely with the operating company, not the guarantor.
According to materials reviewed by Java World Mag, the asserted claims referenced in the filing include demands for accelerated rent through the full remaining lease terms, allegations that fail to credit substantial security deposits and letters of credit totaling millions of dollars, and the inclusion of late fees, interest charges, and other penalty-based amounts that are restricted or prohibited under federal law.
The figures reflected in the filing represent gross asserted exposure only and do not account for contractual or statutory offsets, counterclaims, mitigation credits, or the required application of security deposits and letters of credit. Java World Mag’s review indicates that once legally mandated reductions are applied, certain claims may be materially reduced or, in some instances, eliminated.
The filing does not involve consumer debt. Java World Mag confirmed that the matter relates almost exclusively to unresolved commercial lease guaranty exposure that has not yet been adjudicated.
Federal law imposes strict limitations on lease termination damages, mandates mitigation and offsets, and restricts the imposition of punitive charges such as unauthorized fees and penalty interest. These statutory protections exist solely within the federal bankruptcy claims-allowance framework and are unavailable in state-court venues.
In a statement reviewed by Java World Mag, Mr. Ferdinand noted that the filing was undertaken solely to preserve access to the statutory mechanism governing these claims, should invocation become necessary, and that the figures cited reflect gross asserted exposure rather than net liability.
Java World Mag emphasizes that the filing represents a limited and protective legal action intended to preserve statutory rights under federal law, rather than an adjudication of liability.
The original investigative report may be accessed here:
https://javaworldmag.com/java-world-mag-reports-that-brian-ferdinand-has-initiated-a-protective-federal-filing-under-the-united-states-bankruptcy-code-to-preserve-access-if-required-to-the-statutory-limitations-set-for/
Shazir Mucklai CEO Java World Mag info (at) javaworldmag.com
