Tillary Hotel owner gets shorter-than-requested exclusivity extension

By Sarah Lizee

Olympia, Wash., Sept. 21 – 85 Flatbush RHO Mezz LLC, the owner of the Tillary Hotel in Brooklyn, N.Y., received a shorter-than-requested extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, the court extended the plan filing period through Nov. 24 from Aug. 17 and the solicitation period through Jan. 24, 2022 from Oct. 14.

As previously reported, the company asked the court to extend the plan filing period through Dec. 15 and the solicitation period through Feb. 11, 2022.

The company said in its motion that while it is mindful of the court’s statement that the debtors’ second request for an exclusivity extension should be shorter than its first 120-day request, the debtors believe that based on the proposed marketing timeline, developed with the assistance of a real estate adviser, the proposed 120-day extension is justified to ensure that the debtors have enough time to market the property on the dual tracks and propose a plan of reorganization based on the results.

The company noted that the nature of the property, which is in reality two parcels, and effectively two separate businesses, one operating as a hotel and the other operating as a condominium residence, requires more time to market.

The property will be marketed as one unit, but the debtors will consider potential offers for just the hotel property or the residential property, which adds another level of complexity and may require additional time.

The company’s motion had drawn an objection from secured creditor 85 Flatbush Avenue 1 LLC, which claimed the company is trying 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 had added that if the company’s exclusivity expired, it intended 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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