Wardman Hotel Owner wins confirmation of Chapter 11 liquidation plan

By Sarah Lizee

Olympia, Wash., Sept. 20 – Wardman Hotel Owner, LLC received confirmation of its Chapter 11 plan of liquidation, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The plan will implement the formation of a liquidating trust to distribute proceeds from the sale of the debtors’ assets, as previously reported.

Carmel Partners Realty VII, LLC was declared successful bidder for the assets, with a bid of $152.25 million, and 2660 Woodley Road NW (C) Owner, LLC was named as backup bidder with a bid of $152 million.

Under a proposed settlement with Marriott, Marriott would receive $18 million in distributions on account of its filed proof of claim. Marriott had filed the largest unsecured claim in this case by far, in excess of $82 million.

Under the plan, holders of priority non-tax claims and other secured claims will be paid in full.

The Pacific Life secured claim and Pacific Life DIP loan claim will receive cash in the full allowed amount of the claims, after payment of the plan contribution amount to the liquidating trust. If the liquidating trustee doesn’t have enough cash to fully pay the Pacific Life claims, Pacific Life will receive subsequent distributions from proceeds of any liquidating trust assets that constitute the collateral under the final DIP order, until the remainder of the claims are fully paid.

Holders of general unsecured claims will receive a pro rata distribution of the GUC contribution amount, a pro rata distribution of the net liquidation trust proceeds that do not constitute collateral under the final DIP order, and, only in the event that the Pacific Life secured claim and DIP loan claim are indefeasibly and fully paid, pro rata distributions from the net proceeds derived from the remaining liquidating trust assets.

Holders of equity interests will not receive any distribution.

Washington, D.C.-based Wardman Hotel is the owner of a convention hotel, formerly operated as the Washington Marriott Wardman Park Hotel. The company filed Chapter 11 bankruptcy on Jan. 11, 2021 under case number 21-10023.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.