225 Bowery lender objects to proposed bid procedures for hotel

By Sarah Lizee

Olympia, Wash., Aug. 17 – 225 Bowery LLC’s motion seeking approval of bid procedures for its hotel in Manhattan drew an objection from lender 225 Bowery Lender LLC, according to documents filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The lender said it is the largest creditor of the estate and holds first-priority liens and security interests in substantially all of the debtor’s assets, and unless the debtor satisfies its obligations in full, it can’t sell or otherwise dispose of the lender’s collateral without its consent.

However, the bid procedures make no provision for the lender’s rights under the loan documents or under the bankruptcy code, 225 Bowery Lender said.

Instead, the bid procedures provide the lender with certain consultation rights that the debtor can revoke in its sole discretion and without any notice, the lender added.

The New York-based hotel property owner filed Chapter 11 bankruptcy on Jan. 24, 2023 under case number 23-10094.

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