205 East 45 Chapter 11 plan effective date Jan. 24; EALC not included

By Caroline Salls

Pittsburgh, Jan. 25 - 205 East 45 LLC and EALC LLC's joint plan of reorganization took effect on Jan. 24 for the 205 East 45 debtor only, according to a Friday filing with the U.S. Bankruptcy Court of the Southern District of New York.

The plan was confirmed on July 17.

As previously reported, under the plan of reorganization and the related settlement of foreclosure and guarantee lawsuits, secured lenders will receive a new note and 100% of the new membership interests in the reorganized companies.

Treatment of other creditors will include:

• Holders of other priority claims will be paid in full in cash to the extent due, or the claims will be reinstated;

• Holders of other secured claims will either receive cash, have their claims reinstated or receive the collateral securing the claims;

• Holders of general unsecured claims will receive the lesser of their share of a general unsecured claims distribution or cash equal to 20% of their claims;

• Holders of insider unsecured claims will receive no distribution; and

• Preferred membership interests and common membership interests will be cancelled and extinguished, and holders will receive no distribution.

205 East 45 and EALC are New York hotel operators. They filed for bankruptcy on May 21, 2012. The Chapter 11 case number is 12-12208.

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