Zuca Properties files bankruptcy with plans to sell two condo units

By Sarah Lizee

Olympia, Wash., June 8 – Zuca Properties LLC filed Chapter 11 bankruptcy on Monday in the U.S Bankruptcy Court for the Southern District of New York to implement a pre-packaged Chapter 11 plan of liquidation.

According to court documents, the two condominium units that Zuca owns are encumbered by multiple mortgages. Zuca is also in default of its obligations to JPMorgan Chase Bank, NA and Tecref Sarl.

Zuca said that it engaged in discussions with JPMorgan and Tecref to chart a path forward. Ultimately, the debtor determined that the best way to successfully accomplish a sale and to preserve and maximize value of its assets was through the pre-packaged Chapter 11 filing.

Based on the estimated property values of the condo units, Zuca anticipates that JPMorgan as first-lienholder will be paid in full out of the proceeds of the sales.

Zuca also expects Tecref’s secured claim to be paid in full in cash, as well as other secure claims, according to the disclosure statement.

Priority claims and convenience claims will also be paid in full in cash.

Holders of unsecured claims other than convenience claims will receive their pro rata share of available cash.

Equity interests will be reinstated but without any distribution to holders until all unsecured claims are satisfied in full.

Zuca has asked the court for a July 22 combined hearing on approval of the disclosure statement and confirmation of the plan.

The company estimates assets of $10 million to $50 million and liabilities of $50 million to $100 million.

Its largest unsecured creditors are Tecref Sarl, based in Luxembourg, with a $53.23 million guarantee claim and Rahula Withanage, based in Bandar Seri Begawan, Brunei, with a $2.08 million loan/debt claim.

The Geneva-based owner of two penthouse condominium units located in New York filed bankruptcy under Chapter 11 case number 21-11082.

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