Court OKs Madison 92nd bid procedures for $84.1 million hotel sale

By Lisa Kerner

Charlotte, N.C., Feb. 23 - A bankruptcy court has granted approval of Madison 92nd Street Associates LLC co-managing member Robert Gladstone's bid procedures for the sale of the company's hotel property, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Gladstone filed a plan of reorganization for Madison 92nd Street's bankruptcy case based on the proposed hotel sale and prosecution of causes of action.

Stalking horse bidder CIM Group Acquisitions LLC agreed to pay $84.1 million for the hotel property and assume and assign specified leases and executory contracts.

Competing bids are due by 9 a.m. ET on April 12 and must include an initial cash overbid amount of at least $87.1 million and a cash payment equal to any executory contract cure costs.

Bids made subsequent to the starting bid at auction must be for at least $250,000 more than the previous bid.

If CIM is not the high bidder at auction, it will receive a $2.5 million break-up fee and reimbursement of up to $100,000 of its sale-related expenses.

If one or more qualified bids are received, an auction will be held on April 16.

The sale hearing is scheduled for April 23.

Madison 92nd Street is a New York-based hotel owner. The company filed for bankruptcy on Aug. 16, and the Chapter 11 case number is 11-13917.

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