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Holiday Inn Manhattan’s exclusivity extension motion draws objection
By Sarah Lizee
Olympia, Wash., April 12 – A motion from Golden Seahorse LLC, which does business as Holiday Inn Manhattan Financial District, seeking a 90-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan drew an objection from Wilmington Trust, NA on behalf of secured lenders, according to documents filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.
As previously reported, the company asked the court to extend the exclusive plan filing period through June 27 and the exclusive solicitation period through Aug. 26.
Notably, the secured lenders have already filed a motion seeking to terminate the company’s initial exclusive periods.
“By the extension motion, the debtor continues its efforts to use an exclusivity extension to pressure the secured lenders to waive millions of dollars of payments to which they are entitled, to benefit equity whose conduct has soured the relationship between debtor and secured lenders,” Wilmington said in its objection.
Wilmington said the secured lenders’ proposed plan will call for market scrutiny of the debtor’s hotel by a sale process, with proceeds to be paid in order of priority, and with allowed unsecured claims being paid in full, with a distribution to equity if market scrutiny of the hotel yields a sale that produces proceeds sufficient to provide a distribution to equity.
“The extension motion seeks to prevent that so that the debtor can use its exclusivity leverage to seek to extract concessions from the secured lenders worth millions of dollars,” the trustee said.
“That is not a basis to extend exclusivity.”
The New York-based hotel operator filed Chapter 11 bankruptcy on Nov. 28 under case number 22-11582.
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