Breaking News

Tweet TWEET

Hotel Union Square Mezz 1 Files Chapter 11 Bankruptcy Liquidation Plan

Hotels Union Square Mezz 1 LLC and Hotels Union Square Mezz 2 filed a joint liquidation plan today that would wind up the bankruptcy cases relating to the W New York Union Square hotel.

The New York hotel, which features Rande Gerber’s Underbar, is operated by a unit of White Plains, New York-based Starwood Hotels & Resorts Worldwide Inc., the third-largest U.S. lodging company. Under the terms of the plan, W Hotel Management Inc. will continue to manage the hotel under its existing agreement.

Hotels Union Square Mezz 1 was put into bankruptcy in March by junior mezzanine lender LEM that took over ownership of the Manhattan luxury property in December from Dubai World.

LEM, an affiliate of Lubert-Adler Real Estate Funds, paid $2 million at a foreclosure auction on Dec. 8 to assume the debt on two mezzanine notes as well as the mortgage payments on the hotel after Dubai World defaulted.

The case is Hotels Union Square Mezz 1 LLC, 10-10971, U.S. Bankruptcy Court, District of Delaware (Wilmington).

To contact the reporters on this story: Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net; Michael Bathon in Wilmington, Delaware, at mbathon@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.