Tillary Hotel owner creditor says exclusivity motion is ‘stalling tactic’

By Sarah Lizee

Olympia, Wash., June 7 – 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 another objection from secured creditor 85 Flatbush Mezz LLC, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

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

“Notwithstanding the fact that this case has been pending for almost 120 days as of the date hereof, the debtors have failed to demonstrate that extending the exclusive periods for another 120 days will bring them any closer to being able to confirm a plan that the debtors could propose,” the secured creditor said in its objection.

“Due to these delays, the exclusivity application should be viewed as a stalling tactic and must be denied.”

85 Flatbush Mezz said that although the debtors claim to be “exploring multiple avenues toward reorganization,” there is no evidence of any efforts to do so.

“The debtors have failed to retain any professionals that might further their reorganization such as a broker or other financial professional,” the secured creditor added.

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

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