225 Bowery files Chapter 11 plan and disclosure statement

By Sarah Lizee

Olympia, Wash., Dec. 18 – 225 Bowery LLC filed a Chapter 11 plan and disclosure statement Friday with the U.S. Bankruptcy Court for the District of Delaware.

The plan allows for either a standalone reorganization or a sale of the debtor’s assets.

An auction for the company’s assets is currently scheduled for Jan. 18. The company is currently reviewing four bids for qualification.

Other priority claims and other secured claims are unimpaired by the plan.

Holders of secured lender claims are expected to receive a recovery of 100%, but the claims are impaired.

Holders of Ace secured claims are expected to receive a recovery of 28.6% to 37%.

Holders of mechanic’s lien bond claims and mechanic’s lien claims will receive 100% recovery under a reorganization, and zero recovery under an asset sale wind-down.

Under a reorganization, recovery for union claims would be agreed to by the debtor and union. Under an asset sale wind-down, holders would receive nothing.

General unsecured claimholders would receive a 20% recovery under a reorganization and no recovery under an asset sale wind-down.

Existing equity holders will receive 100% recovery through a reorganization and no recovery under an asset sale wind-down.

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

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