Williamsburg Hotel management ordered to step back from assets

Chicago, Aug. 19 – The court overseeing the bankruptcy case of 96 Wythe Acquisition LLC, the owner of the Williamsburg Hotel in Brooklyn, N.Y., ordered a certain group previously associated with the hotel to cease involvement in the day-to-day operations and to step back from the assets and intellectual property of the estate, according to an order filed with the U.S. Bankruptcy Court for the Southern District of New York.

The group has also been ordered to in no way disrupt or otherwise interfere with any aspect of the trustee’s operation and management of the hotel.

A trustee was recently appointed to the case after Region 2 U.S. trustee William K. Harrington said that examiner Eric Huebscher had uncovered evidence “of a complex scheme to divert and siphon substantial amounts of money from the debtor, through a labyrinth of banking relationships between the debtor and the manager, and other entities under common ownership and control of the principals.”

The order applies to Williamsburg Hotel BK, LLC, Toby Moskovits, Michael Lichenstein and all of their affiliates including without limitation Heritage Equity Partners, agents, attorneys, representatives and employees.

Passwords for the hotel reservation system and other IP assets were due to the trustee by Friday.

The order was signed on Thursday.

The Brooklyn, N.Y.-based hotel owner filed bankruptcy on Feb. 23, 2021 under Chapter 11 case number 21-22108.

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