CohnReznick’s Restructuring and Dispute Resolution Advisory team recently served as financial advisor to Stephen S. Gray, not individually but solely, as the Chapter 11 Trustee for 96 Wythe Acquisition LLC, known as the Williamsburg Hotel in Brooklyn, New York. Ending an over two year-long Chapter 11 bankruptcy case, the $96 million sale of the hotel to London-based hospitality firm, Quadrum Global, closed on April 17, 2023.
The luxury Williamsburg Hotel is located at 96 Wythe Avenue in Brooklyn. It was built in 2017 and features 147 guest rooms with floor to ceiling windows and custom furnishings, amazing Brooklyn and New York City skyline views, a rooftop pool and bar, and more.
In February 2021, the Debtor filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. The Court appointed Stephen S. Gray as the Chapter 11 Trustee (Trustee) in May 2022 who then appointed CohnReznick as financial advisor, and Togut, Segal & Segal LLP as counsel to the Trustee. Working alongside the Togut firm, the Trustee, and special counsel Garfunkel Wild, P.C, CohnReznick, led by Restructuring and Dispute Resolution team members Chris Creger, Molly Jobe, and Sean Duthie, provided financial advisory services that included performance and financial oversight of the hotel operations. Their efforts helped to successfully consummate a plan and closing of a sale. Moving forward, Stephen S. Gray, with continued support from CohnReznick and Togut, became the Liquidation Trustee responsible for effectuating the plan for the debtor’s estate.
In announcing the closing of the sale on its website, the Togut firm noted, “Despite less-than-ideal market conditions for the sale of commercial real property, the value-maximizing result in this challenging and contentious case would not have been possible without the diligent efforts of and collaboration among the Trustee and his professionals, including [the team from] CohnReznick LLP, Garfunkel Wild, P.C. (Burton Weston and Sean Leyden), and the Togut Firm (Albert Togut, Frank A. Oswald, Neil Berger, Bryan M. Kotliar and others). In addition, the cooperation and support from Benefit Street Partners, which agreed to fund the case at a substantial reduction of its claim, was instrumental to the outcome of this case.”
