PWM, West Madison receive extension of exclusive periods

By Sarah Lizee

Olympia, Wash., March 3 – PWM Property Management LLC and debtor Western Madison Property LLC received an extension of their exclusive periods to file and solicit votes, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The court extended the exclusive plan filing period by 61 days through April 30 and the exclusive solicitation period by 122 days through June 30.

Following the court’s denial of confirmation of the debtors’ plan in November, the debtors have been negotiating with the mortgage lender, SL Green affiliate 245 Park Member LLC and HNA Group North America LLC with the goal of moving forward with a consensual plan.

The debtors and mortgage lender recently reached an agreement to modify the plan in a way that moots the SL Green affiliate’s limited objection.

The principal differences in the plan are that if the West Madison debtors consummate the plan through an amendment to the mortgage loan agreement, PWM’s ownership interests in Eternal Fame will be transferred to HNA Group North America, rather than HNA Capital Leasing, and the West Madison settlement payment will be increased to $4.1 million from $3.5 million.

Additionally, the debtors and the West Madison mortgage lender have agreed that if the mortgage loan amendment has not become effective by May 31, the debtors will have until July 31 to solicit bids for the 181 West Madison property, unless the deadline is extended.

If the debtors don’t receive a qualified bid by then, or if they do but the sale doesn’t close by Aug. 31, the automatic stay would be lifted and the mortgage lender would be allowed to pursue all available remedies under the mortgage loan agreement and applicable law, including the foreclosure of 181 West Madison.

181 W. Madison is a 50-story skyscraper in Chicago, designed by Cesar Pelli and built in 1990.

The debtors said the new plan represents an important milestone in their cases, and they need additional time to complete the re-solicitation process and pursue confirmation.

The confirmation hearing is scheduled for April 4.

New York-based PWM is a property management company. It filed Chapter 11 bankruptcy on Oct. 31, 2021 under case number 21-11445.

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