All Year Holdings’ Evergreen Gardens unit files Chapter 11 bankruptcy

By Sarah Lizee

Olympia, Wash., Feb. 23 – All Year Holdings Ltd. subsidiary Evergreen Gardens Mezz LLC filed Chapter 11 bankruptcy on Monday in the U.S. Bankruptcy Court for the Southern District of New York.

“Like many real estate businesses, All Year and the debtor have been hurt by the ongoing Covid-19 pandemic because their revenues are primarily derived from residential and commercial rental income streams,” Joel Biran, the chief restructuring officer of All Year Holdings, said in a declaration.

All Year had engaged with various stakeholders throughout its capital structure on a path forward to maximize the value of All Year and its various subsidiaries and assets.

While these discussions were ongoing, Evergreen Gardens Mezz received notice that its mezzanine lender, MREF REIT Lender 9 LLC, intended to take action to force a sale of the debtor’s interest in its wholly owned subsidiary, Evergreen Gardens I LLC.

Evergreen Gardens I and another All Year Holdings subsidiary, Evergreen Gardens II LLC, own two adjacent properties at 123 Melrose Street and 54 Noll Street that together comprise the Denizen – a luxury apartment rental complex that spans two city blocks and is located on the site of the former Rheingold Brewery.

“The Denizen constitutes one of All Year’s most valuable assets and is central to All Year’s ongoing restructuring discussions,” Biran said.

Evergreen Gardens Mezz engaged with the mezzanine lender’s advisers regarding a potential postponement of the pending foreclosure to afford All Year time to discuss with its other stakeholders a path forward regarding the Denizen and to present the mezzanine lender with a comprehensive restructuring proposal.

Although the parties were able to negotiate a brief two-week adjournment of the scheduled sale, they failed to agree during that time period on a transaction or path forward with respect to the Denizen.

The mezzanine lender determined not to further extend or postpone the sale.

“This refusal precipitated commencement of the Chapter 11 Case on an emergency basis to safeguard the value of the debtor’s interest in the valuable Denizen properties and allow All Year to continue its negotiations,” Biran said.

The debtor is not seeking any first-day relief at this time, but the debtor plans to use the period following commencement of the case to continue engaging with its various stakeholders, including the mezzanine lender.

The company listed $50 million to $100 million in both assets and liabilities.

No creditors were listed with unsecured claims of $1 million or more.

All Year Holdings focuses on the development, construction, acquisition, leasing and management of residential and commercial income producing properties in Brooklyn, N.Y. Evergreen Gardens filed bankruptcy under Chapter 11 case number 21-10335.

© 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.