Williamsburg Hotel again resists appointment of U.S. trustee

Chicago, May 9 – 96 Wythe Acquisition LLC, the owner of the Williamsburg Hotel in Brooklyn, N.Y., objects to the appointment of a Chapter 11 trustee for its case, according to an omnibus objection filed with the U.S. Bankruptcy Court for the Southern District of New York.

The call for a trustee came from both lender Benefit Street Partners Realty Operating Partnership, LP, based on an accusation of continuing malfeasance, and from Region 2 U.S. trustee William K. Harrington.

The debtor says that Benefit Street’s allegations of fabricated documents are false.

96 Wythe also says that the examiner’s report is misleading and misstates facts.

The company says that the debtor’s tax liabilities are being addressed.

Additionally, any issues concerning the EIDL are non-existent and PPP loans have been resolved.

96 Wythe says the appointment of a trustee, expensive and time-consuming, is not in creditors’ best interests.

In a separate filing from Saturday, trustee Harrington withdrew a portion of his objection but retained the portion that referred to bankruptcy code 11 U.S.C. 1104(a)(1).

A hearing will be held on May 17.

The Brooklyn, N.Y.-based hotel owner filed bankruptcy on Feb. 23, 2021 under Chapter 11 case number 21-22108.

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