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Alex Hotel, Flatotel Owners File for Chapter 11 Protection

NEW YORK CITY-The action comes after the debtors reported operating losses from “decreased room revenue, significant liquidity constraints, considerable debt burden and unprecedented adverse changes in the economy and hospitality industry”, court documents show.

By Jacqueline Hlavenka | Updated on May 22, 2012

NEW YORK CITY-The owners of the Alex Hotel and Flatotel in Midtown have filed for chapter 11 protection after failing to repay the principal on secured loans for the properties. According to a May 21st filing from the US Bankruptcy Court in Manhattan, 205 East LLC, a New York limited liability company that owns the 33-story, 203-unit luxury Alex Hotel located at 205-209 E. 45th St., has more than $123 million in outstanding loans, and the second debtor, EALC LLC, a Delaware limited liability company that owns the 46-story, 290-unit Flatotel at 135 W. 52nd St. in West Midtown, owes more than $245 million.

Court documents show that Anglo Irish Bank Corp. sold the secured loans and assigned the corresponding rights and obligations to RPAP Hotel Finance LLP, pursuant to two separate loan purchase and sale agreements in July 2010. The loans and corresponding mortgages and notes were then assigned by RPRAP to secured lenders, including the Rockpoint Group LLC, Atlas Capital Group, LLC and the Procaccianti Group, according to the filing. 

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