Times Square Crowne Plaza gets access to $4 million of DIP loan

By Sarah Lizee

Olympia, Wash., Jan. 3 – Times Square JV LLC, which owns the Crowne Plaza hotel in Times Square in New York, gained approval to access $4 million of a proposed $10 million super-priority senior secured debtor-in-possession credit and guaranty agreement, according to an interim order filed with the U.S. Bankruptcy Court for the Southern District of New York.

The lender for the facility is 1605 Broadway LLC, the debtor’s mortgage lender.

Interest accrues at 10%, with a 2% default rate if applicable.

The term of the facility is 150 days after the petition date, excepting certain circumstances like the consummation of a sale that would accelerate the term of the loan.

Proceeds will be used for working capital and general corporate purposes, to pay restructuring costs and the professional fees of the debtors, to make adequate protection payments to the prepetition secured party and for other purposes.

A further hearing is scheduled for Jan. 20.

The hotel owner filed Chapter 11 bankruptcy on Dec. 28 under case number 22-11715.

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