Madison 92nd Street Associates, an affiliate of Madison Equities and owner of the Upper East Side Courtyard by Marriott at 410 East 92nd Street, has filed for bankruptcy protection in an effort to prevent a foreclosure sale of the property and is working with Westport Capital Partners to line up refinancing, Bloomberg News reported. The corporation listed assets of as much as $500 million and debt of as much as $100 million, according to the filing.
The New York State Department of Taxation and Finance holds the biggest unsecured claim of $679,581, Bloomberg said, and lender General Electric Capital, owed $74 million, has scheduled a foreclosure sale for Aug. 24.
The property has been in financial trouble since 2008 when, just eight weeks after the owner sued the hotel’s management for allegedly making secret deals that hurt the bottom line, the lender on the property sued the owner to foreclose on a $62 million mortgage at the building.
Madison 92nd Street Associates opened the 226-room hotel at 410 East 92nd Street between First and York avenues in August 2006. It is managed by Courtyard Management Corp., a unit of Marriott International. [Bloomberg]