Williamsburg Hotel owner secures extension of exclusive plan periods

By Sarah Lizee

Olympia, Wash., July 23 – 96 Wythe Acquisition LLC, the owner of the Williamsburg Hotel in Brooklyn, N.Y., secured an extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, the court extended the plan filing period through Oct. 21 and the solicitation period through Dec. 20.

The company said in its motion that the Covid-19 pandemic, travel restrictions and quarantine requirements beginning in March 2020 had an immediate impact on the hospitality industry as a whole, and caused the Williamsburg Hotel to limit operations drastically for a period of time.

However, the debtor has reopened and employs over 80 workers currently.

“As Covid-19 conditions have improved, so has the debtor’s,” the company said in its motion.

The company said it has been interviewing investment bankers and has opened a dialogue with its lender, BSPRT 2018-FL3 Issuer, Ltd., to discuss possible candidates.

The debtor is also participating in regular conference calls with the lender to review issues raised by the debtor’s operating reports and use of cash collateral.

The company said it intends to promptly make an application to retain an investment banker, and following that, will be able to have an informed dialogue with the lender over benchmarks for the rest of the case, including filing a Chapter 11 plan.

The Brooklyn, N.Y.-based hotel owner filed bankruptcy on Feb. 23 under Chapter 11 case number 21-22108.

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