225 Bowery secures court approval to access cash collateral

By Sarah Lizee

Olympia, Wash., March 15 – 225 Bowery LLC secured final approval to access cash collateral, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As of the petition date, the debtor’s only secured lender with an interest in cash collateral is Bank Hapoalim BM.

A loan agreement with Bank Hapoalim closed on March 4, 2019 and resulted in $68 million of financing to the debtor. As of the petition date, about $79.5 million is owed under the loan, including principal, interest and late fees.

On April 28, 2022, the lender started a foreclosure action against the debtor along with a motion to appoint a receiver. That was consensually resolved on May 27, 2022 through a stipulation that limited the debtor’s authority to use cash.

The debtor reached an agreement with the lender to permit the debtor to use cash collateral, other than funds in a restricted cash account, during the Chapter 11 case.

The New York-based hotel property owner filed Chapter 11 bankruptcy on Jan. 24 under case number 23-10094.

© 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.