Madison 92nd Street Associates amended plan takes effect on May 31

By Caroline Salls

Pittsburgh, June 4 - Madison 92nd Street Associates, LLC's second amended plan of reorganization took effect on May 31, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The plan was confirmed on May 25.

As previously reported, the company received court approval on May 3 to sell its assets to RLJ Lodging Acquisitions, LLC for $82 million.

Treatment of creditors will include the following:

• Holders of administrative expense claims, professional fee claims, priority non-tax claims and priority tax claims will be paid in full in cash;

• The holder of the General Electric Capital Corp. secured claims will receive cash in an amount determined by the bankruptcy court, plus costs, expenses and interest;

• Holders of general unsecured claims and other unsecured claims will receive a share of any net excess sale proceeds and causes of action after payment of administrative claims, priority claims and the GECC secured claim.

If all senior creditors are paid in full and there is enough cash on hand, Madison said unsecured creditors will be entitled to payment of post-bankruptcy interest at the Federal judgment rate; and

• Unless otherwise agreed to by the debtor's members, holders of equity interests will receive a share of the net excess sale proceeds and causes of action after payment in full of administrative claims, priority claims, the GECC secured claim and unsecured claims.

Madison 92nd Street is a New York-based hotel owner. The company filed for bankruptcy on Aug. 16, 2011. The Chapter 11 case number is 11-13917.

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