All Year LLC opts for bankruptcy to stop Bushwick foreclosure

UCC sale of mezz loan had been postponed following lawsuit

New York /
Feb.February 23, 2021 01:30 PM
The bankruptcy filing was made to protect the value of the Denizen. (The Denizen)

The bankruptcy filing was made to protect the value of the Denizen. (The Denizen)

 

Three weeks ago, Yoel Goldman’s All Year Management sued Mack Real Estate to stave off the foreclosure of $65 million in mezzanine debt. The move bought the developer time to protect his Denizen Bushwick rental complex — but time ran out.

Yesterday, a day before the rescheduled UCC sale, All Year’s debtor LLC filed for Chapter 11 bankruptcy protection.

All Year and Mack had talked over the past few weeks about “potential sale structures with respect to the Denizen” but failed to agree on a solution, All Year chief restructuring officer Joel Biran wrote in a Southern District court filing.

Hence the LLC’s bankruptcy filing, which was made “on an emergency basis to protect the value of its property.”

Including principal, interest, and a forbearance fee, All Year’s outstanding debt on the mezzanine loan exceeds $73 million, according to the filing. All Year did not respond to a request for comment.

After plans for a big portfolio sale and refinancing last year fell apart, All Year’s financial and legal troubles began to escalate at the end of November when the developer missed an interest payment on bonds listed in Israel and delayed its quarterly financial reporting.

Biran was brought on as CRO in December, and the company’s four bond series have been delisted from the Tel Aviv Stock Exchange. Several groups of investors — including Criterion Real Estate Capital and Downtown Capital Partners; Madison Capital and Meadow Partners; Dabby Investments; and Churchill Real Estate and Graph Group — have submitted restructuring offers for the company in the past two months.

“The Denizen constitutes one of All Year’s most valuable assets and is central to All Year’s ongoing restructuring discussions,” Biran wrote in court filings, also noting that “because the Denizen’s value is derived from its rich amenities,” it was disproportionately affected by Covid shutdowns of shared spaces.

The Mack loan covers phase two of the Denizen, at 123 Melrose Street. A $170 million senior loan on the property provided by JPMorgan Chase is also in default. Phase one of the 900-unit complex, at 54 Noll Street, is the collateral for All Year’s Series E bonds.

All Year is not seeking any first-day relief in bankruptcy court. Biran says the firm intends to continue discussions with stakeholders and bring the court a restructuring solution that maximizes value for all parties with an interest in the Denizen.

In Tel Aviv Stock Exchange filing Sunday, All Year disclosed that Biran intended to “end his tenure” as CRO. An exit date had not been set.





    Related Articles

    arrow_forward_ios
    Mack Real Estate Group's Richard Mack and JPMorgan's Jamie Dimon with a rendering of 123 Melrose Street (Credit: Getty Images and ODA Architecture)
    Yoel Goldman sews up long-term funds for Rheingold Brewery Project
    Yoel Goldman sews up long-term funds for Rheingold Brewery Project
    Rabsky Group buying Gowanus parcel from Yoel Goldman for $95M: sources
    Rabsky Group buying Gowanus parcel from Yoel Goldman for $95M: sources
    Rabsky Group buying Gowanus parcel from Yoel Goldman for $95M: sources
    420 Stockholm Street in Bushwick with State Attorney General Letitia James (Google Maps, Getty)
    Ownership dispute at Brooklyn rental puts affordable tax break at risk, city says
    Ownership dispute at Brooklyn rental puts affordable tax break at risk, city says
    Photo illustration of Brookfield Property Partners’ Brian Kingston (Brookfield, iStock)
    Struggling hotel company handing Brookfield the keys
    Struggling hotel company handing Brookfield the keys
    Holiday Inn at 37-10 114th Street in Corona, Queens (Google Maps)
    Holiday Inn next to LaGuardia Airport faces foreclosure
    Holiday Inn next to LaGuardia Airport faces foreclosure
    (iStock/Illustration by Kevin Rebong for The Real Deal)
    Developer Tomer Dafna hit with involuntary bankruptcy petition
    Developer Tomer Dafna hit with involuntary bankruptcy petition
    AMC CEO Adam Aron (Getty, iStock)
    AMC reopens 90% of U.S. theaters
    AMC reopens 90% of U.S. theaters
    A selection of the properties, from left: 1020 Pacific Street, 818 Bergen Street, 483 St. Marks Avenue and 634 Classon Avenue (Google Maps, Kings County Supreme Court/Illustration by Alexis Manrodt for The Real Deal)
    All Year sues partner over “illegitimate” deed transfers
    All Year sues partner over “illegitimate” deed transfers
    arrow_forward_ios

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

    Loading...