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PWM Property’s Chapter 11 plan effective following sale of property
By Sarah Lizee
Olympia, Wash., Sept. 1 – PWM Property Management LLC and 181 West Madison Property LLC’s Chapter 11 plan went into effect on Thursday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, PWM received court approval to sell its membership interests in 181 West Madison Property LLC to SinOceanic I Ltd., an affiliate of HNA Group North America LLC, the ultimate equity owner of the debtors.
As background, in April, the court confirmed the debtors’ Chapter 11 plan, which had three options.
The first option was to amend the mortgage loan by May 31, which did not happen.
The second option was to start soliciting bids for the 181 West Madison hotel property or the equity in the property.
If the sale hadn’t closed by the end of Aug. 31, the automatic stay would have been lifted, and the property would have gone into receivership and the mortgage lender would have been able to pursue all remedies, including foreclosure of 181 West Madison.
SinOceanic offered a purchase price equal to $2 million plus the total amount of reinstated mortgage loan.
Counsel for the debtor said at a hearing held Tuesday that the mortgage lender had agreed to the terms of the purchase agreement.
Under the plan, other priority claims, other secured claims, general unsecured claims, equity interests in the West Madison owner and equity interests in West Madison Holding are unimpaired.
181 West Madison is a 50-story skyscraper in Chicago, designed by Cesar Pelli and built in 1990.
New York-based PWM is a property management company. It filed Chapter 11 bankruptcy on Oct. 31, 2021 under case number 21-11445.
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