Three weeks ago, Yoel Goldman’s All Year Management sued Mack Real Estate to avert the conclusion of the mezzanine debt of $ 65 million. The move gave the developer time to protect its Denizen Bushwick rental complex – but time ran out.
Yesterday, the day before the translated sale of the UCC, All Year’s dltor LLC applied for Chapter 11 bankruptcy protection.
All Year and Mack have been talking about “potential sales structures in relation to Denizen” over the past few weeks, but have been unable to agree on a solution, Joel Biran, Chief Justice of Restructuring, wrote in a South District court.
Hence the bankruptcy of LLC, which was filed “urgently in order to protect the value of its assets”.
Including principal, interest and repayment fee, the full-year outstanding debt on a mezzanine loan exceeds $ 73 million, according to the filing. He did not respond to a request for comment throughout the year.
After the big plans portfolio sales and refinancing last year fell apartYear-round financial and legal problems began to escalate in late November, when the developer she missed the payment of interest to bonds listed in Israel and delayed its quarterly financial reporting.
Biran was established as CRO in December and four series of the company’s bonds were delisted from the Tel Aviv Stock Exchange. Several groups of investors – including Real estate capital criterion and Downtown Capital Partners; Madison Capital a Meadow Partners; Dabby Investment; and Churchill Real Estate and Graph Group – submitted restructuring offers for the company for the last two months.
“Denizen is one of the year’s most valuable assets and is at the heart of ongoing year-long restructuring discussions,” Biran wrote in court records, noting that “because Denizen’s value is derived from its wealth of equipment,” he was unduly influenced by Covid. outages of shared spaces.
Mack’s loan covers the second phase of Denizen at 123 123 Melrose Street $ 170 million the initial property loan provided by JPMorgan Chase is also in arrears. The first phase of the 900-unit complex at 54 Noll Street is a guarantee of the E-Series bonds.
All Year does not seek relief on the first day in bankruptcy court. Biran says the company intends to continue discussions with stakeholders and bring the court a restructuring solution that maximizes value for all parties interested in Denizen.
On the Tel Aviv Stock Exchange submission Sunday, All Year revealed that Biran intended to “quit” as a CRO. No end date has been set.