All Year sponsor is delaying process, debtor’s counsel says

Chicago, Nov. 9 – All Year Holdings Ltd.’s counsel said Paragraph Partners LLC was in breach of its investment agreement, according to a letter filed with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, in early March, the company entered into a definitive investment agreement with Paragraph Partners, an affiliate of Graph Group LLC and Cammeby’s International Group, to acquire 100% of the equity of the reorganized debtor.

After a status conference on Tuesday, All Year’s counsel called Paragraph Partners to talk about executing the settlement documents, extending the confirmation hearing to mid-January, extending all other deadlines and milestones including the outside date and the maturity date for the DIP loan to Feb. 28, 2028 and permit the debtor to use its own cash to fund its operations and the Chapter 11 case, including the Grand Living settlement proceeds.

The sponsor only replied by asking for more time.

All Year finds the sponsor in breach of the investment agreement and the sponsor has 10 days to cure its defaults, according to the letter.

All Year focuses on the development, construction, acquisition, leasing and management of residential and commercial income producing properties in Brooklyn, N.Y. It filed Chapter 11 bankruptcy on Dec. 14, 2021 under case number 21-12051.

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