Tillary Hotel owner’s exclusivity extension draws objection from creditor

By Sarah Lizee

Olympia, Wash., April 21 – 85 Flatbush RHO Mezz LLC’s, the owner of the Tillary Hotel in Brooklyn, N.Y., motion seeking a 120-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan drew an objection from secured creditor 85 Flatbush Mezz LLC, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The secured creditor said the debtor’s motion is too vague and non-specific to demonstrate that the debtors have made any meaningful progress at all toward a successful reorganization in these bankruptcy cases.

“The debtors’ exclusivity motion amounts to nothing more than the debtors’ self-serving statement that they have made progress and a description of mere possibilities they may eventually pursue on an unknown timetable with unidentified third parties and potentially under the guidance of unidentified additional professionals,” the secured creditor said.

“Any determination that such a paltry showing is sufficient to establish cause to extend exclusivity under section 1121 is tantamount to a conclusion that the requirement is entirely superfluous.”

The company asked the court to extend the plan filing period through Aug. 17 and the solicitation period through Oct. 14, as previously reported.

“The debtors have made good-faith progress, first focusing on stabilizing operations when entering Chapter 11 and now turning its focus to the search for new capital or refinancing proceeds as conditions on the pandemic's impact are becoming somewhat favorable for the first time in over a year,” the company said in its motion.

Continued exclusivity will permit the debtors to maintain flexibility, so competing plans do not derail the restructuring process, the company said.

The owner of the boutique hotel in Brooklyn, N.Y., filed bankruptcy on Dec. 18 under Chapter 11 case number 20-23280.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.