NEW YORK—The debtors, their principals, and primary secured lenders for Gemini Real Estate Advisors in the pending Chapter 11 cases pending before the U.S. Bankruptcy Court in the Southern District of New York yesterday agreed to a plan that will move forward the sale of three Manhattan hotel properties–the Best Western Seaport, the Jade Greenwich Village, and Wyndham Garden Flatiron District hotels.
Negotiated agreements were finalized yesterday during a scheduled hearing before Bankruptcy Judge James L. Garrity to determine the procedures to be followed to create a level playing field for stalking horse auctions for the three properties.
“Tuesday’s agreement allows us to begin actively marketing all three hotel properties and keeps us on target to sell them by the end of the year,” said Dante Massaro, president and CEO of Gemini Real Estate Advisors. “We’re pleased to finally be able to move forward with this process and anticipate negotiating the highest and best terms for the properties and returning profits to our investors.”
The agreement, which is in line with Gemini’s original petition to the court, provides an extended marketing period for all three properties – 45 days for the Best Western Seaport and the Jade Greenwich Village and 60 days for the Wyndham Garden Flatiron district. The marketing process for all three hotels is underway through Gemini’s real estate advisor RobertDouglas, which has compiled all diligence materials for interested investors.
The auctions of the Best Western Seaport and the Jade Hotel Greenwich Village are scheduled for Dec. 1, 2015, in Judge Garrity’s courtroom. The auction for the Wyndham Garden Flatiron District is scheduled for Dec. 15. All sales are expected to close by year end.
“The agreements will insure a robust and transparent auction process that will provide for the payment of all creditors in full and maximize returns to investors,” said Scott Gautier, Robins Kaplan LLP co-lead counsel to the debtors. “These cases are a prime example of how Chapter 11 can be used to provide transparency and protect investor value in a situation where there are disputes between the managing principals. We are hopeful that this process might also serve as a catalyst to resolve those disputes.”
A hearing on the fourth property involved in the Chapter 11 petitions, the Bryant Park Development site located at 36 West 38th St., is scheduled for Oct. 28.
