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).