George Washington Bridge Bus Station Development Venture files plan

By Caroline Salls

Pittsburgh, Feb. 11 – George Washington Bridge Bus Station Development Venture LLC filed a Chapter 11 plan and related disclosure statement on Monday with the U.S. Bankruptcy Court for the Southern District of New York.

According to the disclosure statement, the plan calls for a restructuring of the company through either a liquidation under an asset sale restructuring or a plan investment restructuring.

George Washington Bridge said it will decide by March 11 which restructuring avenue it will take, with the consent of its senior lenders.

Under the asset sale option, the company will conduct one or more sales to sell substantially all its assets and will select a plan administrator who would become the sole manager and officer of the reorganized debtor and wind down the company’s business affairs.

Meanwhile, under the investment option, the company will issue new interests to a plan sponsor in exchange for the sponsor’s investment.

The sponsor’s investment will be used to fund distribution reserve accounts, a professional fee escrow account and cash for working capital of the reorganized debtor.

After that, the investment funds will go to George Washington Bridge’s senior secured lender.

Also, under the investment option, the company will enter into exit facilities, and a creditor recovery trust will be created to pursue causes of action.

Under the plan, holders of other secured claims will be paid in full in cash or receive the collateral securing the claim, or the claim will be reinstated.

Holders of priority claims will be paid in full in cash or receive a share of a priority claims reserve.

Holders of senior secured claims will receive net plan investment proceeds, all of the interests in a first-lien exit facility and creditor trust interests to the extent there is any diminution in value claim or net sale proceeds until paid in full, net proceeds from any causes of action obtained after the plan effective date if there is any diminution in value claims and any creditor recovery trust interests.

Holders of building secured claims and a UMEZ claim will receive a share of interests in a second-lien exit facility or a share of net asset sale proceeds.

Holders of general unsecured claims will receive a share of creditor recovery trust interests or a share of any remaining net asset sale proceeds and proceeds from causes of action if the net diminution claims are paid in full.

Existing interests will be cancelled and extinguished under both options.

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

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