Detroit emergency manager Kevyn Orr speaks during an interview with The Associated Press in Detroit on Dec. 12, 2013. The architect of Detroit’s bankruptcy filing admits it was a miserable process. But 10 years on, Detroit’s former emergency manager, Orr, maintains the restructuring of the Motor City is among his most important accomplishments. On July 18, 2013, Detroit became the largest city in the U.S. to file for bankruptcy. (AP photo)
The owners of the Margaritaville Resort Times Square are in a pitched battle with their lenders over missed debt payments.
No one has to search for salt in the legal battle over the future of the Margaritaville Resort Times Square.
Days after the owners of the 36-story hotel filed for bankruptcy to avoid a foreclosure sale, two of its lenders sued members of the development team claiming they are personally responsible for the unpaid debts.
The LLC that owns the equity on the property, 560 Seventh Avenue Owner Secondary, filed for Chapter 11 bankruptcy protection Sunday night. The property was facing a UCC foreclosure auction the next day after falling behind on loan repayments, which the bankruptcy filing halted.
But in a new suit filed Tuesday in New York State Supreme Court, affiliates of lenders Arden Group and Corten Real Estate claim developers Sharif El-Gamal, who heads Soho Properties, Stephen Weiss and Andrew Weiss are now personally responsible for the full amount of the loan as a result of the bankruptcy. In its filing, Arden claims it is due more than $85M, plus legal fees.
Arden provided the hotel developers with a $57M mezzanine loan in 2021, and last year
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In a move anticipated since the financial collapse of the company, Fresno-based Bitwise Industries has filed for bankruptcy.
The Wednesday filing in a Delaware federal court seeks Chapter 7 bankruptcy protection for several Bitwise corporations — BW Industries Inc.; Bitwise Industries, Inc.; BWRD, LLC; Alpha Works Technologies, LLC; and Bruce’s Bagels, Beverages and Bites, LLC.
“The Companies do not have sufficient capital to maintain operations and the impact of the foregoing on such Company’s businesses,” the petition said.
The company lists $253 million in assets, most coming from its main company Bitwise Industries ($212 million).
906 Ventures, LLC, a Denver-based company, is listed as its top creditor at $10 million “plus unliquidated amounts.” The bankruptcy filing also lists 906 Ventures with a $15.5 million claim.
The filing lists accounts in six different banks, all with relatively small balances — none more than $223,000. However, there is an “unknown” balance at Central Valley Community Bank, and a negative balance ($2,700) at First Republic Bank.
On Wednesday, GV Wire reported that federal and state investigators are probing Bitwise’s financial collapse.
Bitwise’s Collapse
The goal of Bitwise, celebrating its 10th year, was to provide high-tech opportunities to underserved communities. Founded by locals Jake
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