Holiday Inn Express D.C. files disputed cash collateral motion

By Sarah Lizee

Olympia, Wash., March 3 – Birchington, LLC, doing business as Holiday Inn Express Washington D.C. Downtown, filed a disputed motion seeking access to cash collateral with the U.S. Bankruptcy Court for the District of Columbia on Thursday.

As previously reported, secured creditor Sschof II Washington DC, LLC has already filed a motion seeking to block the debtor’s access to the cash collateral.

Sschof said the company is indebted to it under a real estate note with about $63.68 million outstanding, plus attorney fees and expenses.

The creditor said the obligations are secured by liens and security interests encumbering all assets of the debtor.

Sschof said that on Feb. 21, the day after the petition was filed, it sent proposed counsel for the debtor an email stating that it doesn’t consent to the use of cash collateral absent entry of an order that provides for, among other things, payment of interest at the non-default contract rate and Sschof’s attorney’s fees and expenses.

The parties still haven’t been able to come to an agreement on the cash collateral use.

The Washington, D.C.-based hotel owner filed bankruptcy on Feb. 20 under Chapter 11 case number 23-00057.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.