Tillary Hotel owner files Chapter 11 plan and disclosure statement

By Sarah Lizee

Olympia, Wash., Nov. 29 – 85 Flatbush RHO Mezz LLC, the owner of the Tillary Hotel in Brooklyn, N.Y., filed a Chapter 11 plan and related disclosure statement on Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

The plan will be funded using sale proceeds and available cash on hand from operations.

Under the plan, holders of administrative expense claims, fee claims, 85 Flatbush RHO Hotel other priority claims, 85 Flatbush RHO Residential other priority claims and priority tax claims will be paid in full.

Holders of 85 Flatbush Avenue secured claims will receive, if the hotel property and/or residential property is sold to a party other than 85 Flatbush Avenue, cash in an amount sufficient to satisfy the sum of the claims, together with all applicable interest, costs and fees. Otherwise, holders will receive no distribution.

After payment is made in full to holders of allowed administrative claims, allowed priority tax claims, allowed fee claims, and allowed claims in classes 1, 2 and 3, in the event there is a surplus remaining in the plan fund, the surplus will be paid to holders of 85 Flatbush RHO Hotel other secured claims and 85 Flatbush RHO Residential other secured claims.

After payment in full of all senior claims, holders of 85 Flatbush RHO Hotel general unsecured claims will receive their pro rata share of the remaining cash from the plan fund, up to the full amount of their claims.

Equity interests will be canceled with no distribution.

Holders of 85 Flatbush RHO Residential general unsecured claims will receive, after payment is made in full to holders of claims senior to these, their pro rata share of the remaining cash from the plan fund allocable to the residential property, up to the full amount of their allowed claim.

Holders of 85 Flatbush RHO Mezz other priority claims will receive, after payment in full of claims senior to these is made, their pro rata share of the remaining cash of the plan fund.

The holders of the 85 Flatbush Mezz claim will receive their pro rata share of the remaining cash from the plan fund, after payment in full of senior claims.

Holders of 85 Flatbush RHO Mezz other secured claims will receive, after senior claims have been paid in full, their pro rata share of the remaining cash from the plan fund, or the collateral securing their claims.

Holders of 85 Flatbush RHO Mezz general unsecured claims will receive their pro rata share of the remaining cash from the plan fund following payment in full of claims senior to these.

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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