225 Bowery files Chapter 11 bankruptcy with over $50 million in debt

By Sarah Lizee

Olympia, Wash., Jan. 25 – 225 Bowery LLC filed Chapter 11 bankruptcy Tuesday in the U.S. Bankruptcy Court for the District of Delaware.

Alongside its petition, the debtor filed a complaint to avoid from Ace Group International LLC and Ace Group Bowery LLC a preferential transfer of the debtor’s interest in property that occurred less than 90 days ago.

In September, an arbitration award was issued in favor of Ace Group. The following month, the New York Supreme Court issued a decision confirming the arbitration award.

On Oct. 28, the New York court entered judgment for Ace Group, which included money damages of $10.47 million.

The judgment gave rise to a judgment lien since it was entered in New York County, the same county in which the debtor owns a hotel and related property.

The debtor said it may learn, through discovery or otherwise, of additional transfers made to Ace Group during the last 90 days.

In its petition, the company listed between 100 and 199 creditors, $50 million to $100 million in assets and $50 million to $100 million in liabilities.

Its largest unsecured claim, related to a Payment Protection Program loan, is for $1.7 million.

Young Conaway Stargatt & Taylor, LLP is local bankruptcy counsel, and Alston & Bird LLP is general bankruptcy counsel.

The New York-based hotel property owner filed Chapter 11 bankruptcy under case number 23-10094.

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