Hello Living Developer Nostrand files Chapter 11 reorganization plan

By Sarah Lizee

Olympia, Wash., March 22 – Hello Living Developer Nostrand LLC filed a Chapter 11 plan of reorganization with the U.S. Bankruptcy Court for the Southern District of New York on Monday.

As previously reported, the company filed Chapter 11 bankruptcy to stay foreclosure on a $3 million UCC mezzanine loan with Madison Realty Capital LLC. Hello Living is in litigation with the lender.

The plan provides for distributions to the holders of allowed claims from funds realized by the debtor from lease income of its subsidiary, Hello Nostrand LLC. Hello Nostrand has agreed to provide the lease income amounts from its tenant necessary to pay the amounts under the plan.

The plan proposes to pay its Madison Realty allowed claim of $3 million of principle secured by the value of the debtor’s shareholders interest in Hello Nostrand LLC over four years with a balloon payment at the end of the fourth year.

The company will continue with the litigation against Madison Realty until there is a final court order determining the allowability of the secured creditor’s claims and priority.

Any unsecured claims will be paid pro rata in full, with monthly principal payments of $15,000 plus interest at 3.5% starting on or about the effective date in full satisfaction and settlement of the claims.

Equity holders will be paid their investments upon the development project under the means provided for in the investment documents.

The apartment developer is based in Monsey, N.Y. The company filed Chapter 11 bankruptcy on Dec. 21 under case number 21-22696.

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