Xinyuan Real Estate’s Hudson 888 files Chapter 11 reorganization plan

By Sarah Lizee

Olympia, Wash., April 15 – Hudson 888 Owner LLC, a U.S. subsidiary of China’s Xinyuan Real Estate Co., Ltd., filed a Chapter 11 plan of reorganization and disclosure statement on Friday with the U.S. Bankruptcy Court for the Southern District of New York.

As a reminder, Hudson 888’s sole asset consists of a mixed-use real estate project commonly known as the Bloom on 45th Condominium, located at 500 West 45th Street, New York.

The company said in the disclosure statement that the sale of its 801 and 329 units are set to close in May for about $3.87 million in total. Three more sales are expected to occur by the end of June, and are expected to result in about $3.2 million in additional net proceeds.

The proceeds of the sales will be used to pay down the balance of the company’s senior secured debt and related interest owed to mortgage debt holder DOF II-Bloom Senior LLC.

The debtors will also refinance their interest in their retail and residential units via a new loan to be issued by Invictus Real Estate Partners LLC. Proceeds will be used to pay holders of senior secured claims and mechanic’s lien claims, with any balance paid to holders of mezzanine secured claims.

On the closing date of the refinancings, the debtors will use about $1.1 million of cash on hand to pay down secured claims.

On the closing date, Xinyuan Real Estate will make a capital contribution on behalf of the debtors and their interest holders in an amount sufficient to fully satisfy the allowed secured claims.

Holders of priority tax claims will receive quarterly cash payments in equal installments through Jan. 2, 2029, without interest or late fees.

Holders of general unsecured claims will receive cash equal to 50% of the allowed amount of their claims on the later of the closing date and 30 days after the claims become allowed; and cash equal to the remaining 50% of their claims on or before the later of five months from the closing date and 30 days after the claim becomes allowed.

Xinyuan is a Beijing-based real estate developer and property manager with properties primarily in China. New York-based Hudson 888 filed bankruptcy on Jan. 7 under Chapter 11 case number 24-10021.

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