Times Square Crowne Plaza cancels auction for assets

By Sarah Lizee

Olympia, Wash., Feb. 28 – Times Square JV LLC canceled an auction for its assets that was previously scheduled for March 1, according to a notice filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

Bids were due Feb. 23.

As previously reported, the company has a restructuring support agreement with prepetition lender 1605 Broadway LLC and consenting stakeholders Vornado Capital Partners LP and Vornado Capital Partners Parallel, LP.

Lender 1605 Broadway is permitting Times Square access to its cash collateral on a consensual basis and has agreed to provide post-petition financing so that the debtors can pursue either a sale of its New York mixed-use property or a restructuring.

Should there be a restructuring, the mortgage lender would receive, among other things, all of the equity of the reorganized debtors. If a payout event occurs, the lender will be paid in cash in full or receive other treatment as agreed between the debtors and lender.

Times Square JV owns the Crowne Plaza hotel in Times Square in New York. The company filed Chapter 11 bankruptcy on Dec. 28 under case filing number 22-11715.

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