George Washington Bridge disclosure statement OK’d; hearing June 3

By Sarah Lizee

Olympia, Wash., April 27 – George Washington Bridge Bus Station Development Venture, LLC’s disclosure statement for its Chapter 11 plan was approved Tuesday by the U.S. Bankruptcy Court for the Southern District of New York, according to an order.

The plan confirmation hearing is scheduled for June 3.

The amended plan provides for the sale of substantially all of the debtor’s assets, including the debtor’s leasehold interest in the ground lease between the debtor and the Port Authority, to the purchaser in a going-concern sale that will provide consideration of at least $92 million to the debtor’s estate.

The sale transaction provides for the continuation of the debtor’s business as a going concern, the provision to the debtor of cash proceeds sufficient to repay its $18 million debtor-in-possession facility and satisfy all costs necessary to emerge from Chapter, and the assumption of $72 million of the debtor’s pre-petition secured debt.

Under the plan, holders of other secured claims will receive payment in full in cash or the collateral securing their claims.

Holders of other priority claims will be paid in full.

The senior secured lender will receive the second-lien exit facility that is being assumed as part of the sale transaction.

Holders of UMEZ claims and building secured claims will have their claims treated as general unsecured claims.

The plan administrator will establish a general unsecured creditor recovery reserve for the purpose of reserving 10% of the net proceeds of all transferred claims for holders of allowed general unsecured claims.

Interests will be canceled with no distribution.

George Washington Bridge Bus Station Development Venture is a Reston, Va.-based development company. The company filed bankruptcy on Oct. 7, 2019 under Chapter 11 case number 19-13196.

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