PWM, West Madison get exclusivity extension; assess plan options

By Sarah Lizee

Olympia, Wash., Dec. 1 – PWM Property Management LLC and debtor Western Madison Property LLC received an extension of their exclusive periods to file and solicit votes on a Chapter 11 plan by 65 days through Dec. 30, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the Park Avenue debtors’ plan has been confirmed and gone into effect. However, the West Madison debtors’ plan has not been confirmed yet, despite a hearing on the plan that took place on Nov. 3.

In a more recent hearing, counsel for the debtors said that they were disappointed by the results of the confirmation hearing but are working toward confirming a plan.

Counsel said they hope to do so on a consensual basis but that there are “other options for getting a plan confirmed.”

PWM had said in the exclusivity extension motion that the last remaining obstacle to the otherwise fully consensual resolution of the Chapter 11 cases is the limited objection of SL Green affiliate 245 Park Member LLC to confirmation of the plan.

245 Park Member is a judgment creditor for over $185 million against HNA Group (International) Co. Ltd. (Hong Kong), which indirectly owns 100% of PWM, which in turn owns 100% of the interests in non-debtor Eternal Fame Investment Ltd. (BVI).

Eternal Fame is the parent of debtor 181 West Madison Holding LLC, which owns the 181 West Madison office building.

245 Park Member said a new provision in the third amended plan provides that debtor PWM Property will assign its equity interests in Eternal Fame, the immediate parent company of 181 West Madison Holding LLC, to HNA Capital Leasing & Holding LLC, a non-debtor affiliate of some of the debtors and HNA Group.

“This proposed transfer is without any consideration and constitutes an intentional fraudulent transfer because it is a blatant attempt to divert value away from HNAI and impede 245 Park Member’s efforts to collect on its judgment against HNAI and its subsidiaries,” the creditor said in its objection.

While the West Madison debtors are prepared to litigate the matter, they have engaged with 245 Park Member to discuss a resolution, PWM said in the exclusivity extension motion.

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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