Tillary Hotel owner can’t stop lender from credit bidding, court says

By Sarah Lizee

Olympia, Wash., July 19 – 85 Flatbush RHO Mezz LLC, the owner of the Tillary Hotel in Brooklyn, had its motion for order disqualifying lender TH Holdco LLC from credit bidding denied by the U.S. Bankruptcy Court for the Southern District of New York, according to court documents.

As previously reported, the lender recently had its Chapter 11 plan for the company confirmed.

TH’s plan is premised on a sale of the property, permitting TH to credit bid, and to the extent TH is the successful purchaser, a commitment by TH to fund the sum of $200,000 for pro rata distribution to the debtors’ unsecured creditors.

“Permitting TH Holdco to proceed with their $90,000,000 credit bid for the property as contemplated by their proposed plan filed in the debtors’ cases – a sale process that was intended to benefit all parties in interest – will instead reward TH Holdco for evading that very same process while limiting creditor and equity recoveries, resulting in TH Holdco obtaining the title to the property to the detriment of the debtors’ unsecured creditors and equity holders,” the company had said in its motion seeking the disqualification.

The owner of the boutique hotel in Brooklyn, N.Y., filed bankruptcy on Dec. 18, 2020 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.