Le Centre on Fourth secured creditor balks at proposed plan treatment

By Caroline Salls

Pittsburgh, Nov. 8 – Le Centre on Fourth LLC’s plan of reorganization drew an objection Wednesday from secured creditor U.S. Bank NA, arguing that the proposed plan does not pay all amounts it is owed in full, according to a filing with the U.S. Bankruptcy Court for the Southern District of Florida.

U.S. Bank said in its objection that it has been in talks with the company and Al J. Schneider Co. regarding issues with the proposed plan, but the parties have not yet reached an agreement on these issues.

U.S. Bank said the plan, as currently proposed, classifies its secured claim as unimpaired but does not allow the bank to vote on the plan.

Also, U.S. Bank said “subordinate creditors, who are contractually obligated to turn over certain payments to U.S. Bank, are treated as unimpaired, and they must remain subordinated until U.S. Bank is paid in full.”

The secured creditor said the plan is also unconfirmable because it fails to pay the full amount of its secured claim in cash, including default interest, upon Le Centre on Fourth’s receipt of exit financing.

U.S. Bank said the proposed plan also impairs its liens by attaching them to a reserve rather than to the bank’s collateral.

Plantation, Fla.-based Le Centre on Fourth is the holding company for the Embassy Suites hotel in Louisville, Ky. The company filed for bankruptcy on Nov. 10, 2017 under Chapter 11 case number 17-23632.

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