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Tillary Hotel owner’s strategy is to ‘stall out’ cases, creditor says
By Sarah Lizee
Olympia, Wash., Sept. 7 – 85 Flatbush RHO Mezz LLC’s, the owner of the Tillary Hotel in Brooklyn, N.Y., motion seeking a second 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 Avenue 1 LLC, according to 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 Dec. 15 from Aug. 17 and the solicitation period through Feb. 11, 2022 from Oct. 14, as previously reported.
“Now 259 days into these bankruptcy cases, the debtors have not even filed a retention application for any broker or investment banker to market the debtors’ and/or debtors’ property,” the secured creditor said in its objection.
The creditor claims the hotel owner’s strategy is to “stall out these cases as much as possible, at the expense of all creditors, in a vain hope that somehow the debtors can obtain some value for the debtors’ equity.”
The secured creditor said that, given the length of time that the debtors have sought an equity investor, it is clear that none will be forthcoming and would be insufficient to pay the secured creditor’s loan.
“The best way forward for the debtors and their creditors is to sell the property as soon as possible, thereby minimizing the accumulation of interest owed to the secured creditor, interest that must be paid prior to nearly all other creditors in this case,” the creditor said.
The secured creditor added that if the company’s exclusivity expires, it intends to file its own plan.
The owner of the boutique hotel in Brooklyn, N.Y., filed bankruptcy on Dec. 18, 2020 under Chapter 11 case number 20-23280.
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