540 West 21st Street gets access to $100,000 of DIP loan

By Sarah Lizee

Olympia, Wash., Sept. 8 – 540 West 21st Street Holdings LLC received approval to access $100,000 of a proposed $700,000 debtor-in-possession facility via Ray New York, LLC, according to an interim order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

If approved by a final order, the company would have the option to request additional funding of up to $250,000.

The DIP financing is set to mature on Nov. 30.

Interest is 10% per annum. Default interest would be 12% per annum.

There is a 3% closing fee and a 1% unused line fee.

As background, the company plans to sell its real property in New York. It had purchased the property with plans to secure financing and eventually build a 20-story, 275-foot-tall luxury mixed-use condominium building set to include 34 residential units.

However, since purchasing the property, the company has been unable to secure enough funding to complete construction of the project.

Ray New York agreed to provide the debtor with enough financing to complete the transactions and fund operations throughout the case.

The New York-based real estate holding company filed Chapter 11 bankruptcy on Aug. 2 under case number 23-11053.

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