Alexico Group files for bankruptcy protection on two hotels

New York /
May.May 22, 2012 09:00 AM

Four months after a court ruled debtholders could foreclose on its Alex Hotel and Flatotel properties in Midtown, Alexico Group and its partners have filed for bankruptcy protection in connection with the two buildings, which have $368 million in liabilities, Bloomberg News reported (note: correction appended). The developer has $245 million of outstanding liabilities on the 272-room Flatotel at 135 West 52nd Street with lenders Rockpoint Group, Procaccianti Group and Atlas Capital Group. The partnership purchased the debt from Anglo Irish Bank two years ago.

Alexico owes an additional $123 million on the 205-room Alex Hotel at 205 East 45th Street, according to the Chapter 11 filing in Manhattan Bankruptcy Court.

The development firm led by Simon Elias and Izak Senbahar defaulted on the loans in 2009, but delayed the foreclosure process by arguing that it had simply reallocated the money to another property it owns, the Mark Hotel, which was permissible under an agreement with Anglo Irish. However, a judge ruled against them in January. [Bloomberg]


Related Articles

arrow_forward_ios
Capstone Equities' Joshua Zamir and Renwick Hotel at 118 East 40th Street (TripAdvisor)
New owner Capstone revives Midtown’s Renwick Hotel
New owner Capstone revives Midtown’s Renwick Hotel
Jonathan Goldstein, CEO, Cain International and 356 West 58th Street (Cain International, Google Maps)
Midtown’s Hudson Hotel slated for mixed-use redevelopment
Midtown’s Hudson Hotel slated for mixed-use redevelopment
Strong month for US economy, but hospitality hiring slows
Jobs report shows more workers returning to office
Jobs report shows more workers returning to office
Hotel Trades Council's Rich Maroko and Mayor Eric Adams (Getty, iStock)
Hotel bill is union’s latest effort to boost market share
Hotel bill is union’s latest effort to boost market share
Times Square Sheraton Hotel and MCR CEO Tyler Morse (Google Maps, Getty)
Times Square Sheraton loss $33M worse than reported
Times Square Sheraton loss $33M worse than reported
Brian Chesky, co-founder and CEO, Airbnb (Getty Images, iStock)
Airbnb’s losses narrow as bookings hit all-time high
Airbnb’s losses narrow as bookings hit all-time high
Rockpoint co-founder Bill Walton (Rockpoint, iStock)
Rockpoint investing $2B in industrial assets
Rockpoint investing $2B in industrial assets
Sonesta's John Murray along with the Benjamin Hotel (front left), the Shelburne Hotel & Suites (front right), the Fifty Hotel & Suites (back left) and the Garden Suites Hotel (back right) (Google Maps, Sonesta)
Midtown hotel portfolio sale suggests big value drop
Midtown hotel portfolio sale suggests big value drop
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...