Seaboard Realty files for Chapter 11 bankruptcy

By Mark Reccek

Bethlehem, Pa., Dec. 14 – Seaboard Realty LLC filed for Chapter 11 bankruptcy on Monday in the U.S. Bankruptcy Court for the District of Delaware, according to a news release.

The filing includes Seaboard Realty and a number of affiliates the company manages but does not include the property-owning subsidiaries, the release indicated.

According to the release, the company is owned by John DiMenna, Thomas Kelly and William Merritt.

The release said Kelly and Merritt have retained professional advisers, including Dechert LLP, as counsel and the accounting firm of Anchin, Block & Anchin LLP as forensic accountant.

Management said it will determine if or when Seaboard Realty affiliates that directly own Seaboard's properties should also file for bankruptcy, the release said.

The release noted DiMenna resigned voluntarily from having any managerial or decision-making role in the company entities.

Marc Beilinson of Beilinson Advisory Group was retained as chief restructuring officer.

Kelly and Merritt are also in the process of appointing an independent manager to join them on the board of Seaboard Realty and its subsidiaries, the release said.

“The Seaboard properties are among the most sought after collection of office, residential and hotel assets in Fairfield County, and the courtyard is one of the top-performing courtyards in the country,” Beilinson said. “I expect the properties to operate without interruption through this process, so that tenants and guests are not impacted. Our goal and expectation is that the properties can be restructured or sold in an orderly fashion that maximizes recoveries for all stakeholders, including lenders and investors.”

Beilinson added he intends to contact the lenders as soon as possible and hopes to work with them to maximize recoveries.

The release said company operations are expected to continue as usual throughout the bankruptcy process.

Seaboard owns office, hotel and residential properties throughout Stamford, Conn. The Chapter 11 case number is 15-12508.

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