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Holiday Inn Manhattan’s exclusivity extension motion partially granted
By Sarah Lizee
Olympia, Wash., April 21 – Golden Seahorse LLC, which does business as Holiday Inn Manhattan Financial District, received partial approval of an exclusivity extension, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.
The company had asked the court to extend its exclusive plan filing period and its exclusive solicitation period by 90 days each, as previously reported.
However, the court decided to extend the exclusive solicitation period through 30 calendar days after the court renders a bench decision pertaining to certain plan-related legal issues.
The court also denied a motion from Wilmington Trust, NA, on behalf of secured lenders, seeking to terminate the exclusive periods.
Wilmington, which had also filed an objection to the exclusivity extension motion, said the secured lenders are proposing to file a plan that would pay unsecured creditors in full.
“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 had 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 New York-based hotel operator filed Chapter 11 bankruptcy on Nov. 28 under case number 22-11582.
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