Holiday Inn Express D.C. creditor moves to block cash collateral use

By Sarah Lizee

Olympia, Wash., Feb. 24 – A secured creditor of Birchington, LLC, doing business as Holiday Inn Express Washington D.C. Downtown, filed a motion seeking to block the company from using cash collateral, according to documents filed Thursday with the U.S. Bankruptcy Court for the District of Columbia on Monday.

Sschof II Washington DC, LLC said the company is indebted to it under a real estate note with about $63.68 million outstanding, plus attorney fees and expenses.

The creditor said the obligations are secured by liens and security interests encumbering all assets of the debtor.

Sschof said that on Feb. 21, the day after the petition was filed, it sent proposed counsel for the debtor an email stating that it doesn’t consent to the use of cash collateral absent entry of an order that provides for, among other things, payment of interest at the non-default contract rate and Sschof’s attorney’s fees and expenses.

As of Thursday, the parties hadn’t agreed on the consensual use of cash collateral, Sschof said.

The Washington, D.C.-based hotel owner filed bankruptcy under Chapter 11 case number 23-00057.

© 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.