4202 KI TOV LLC, requests the U.S. Bankruptcy Court for the Eastern District of New York to extend the periods within which the Debtor has the exclusive right to file and solicit acceptances to a Chapter 11 plan of reorganization, through and including October 23, 2020, and December 22, 2020, respectively.
The Debtor and 4202 Partners, the Debtor’s wholly-owned subsidiary, intend to develop the property located at 4202 Ft. Hamilton Parkway, Brooklyn, NY 11219, along with the contiguous real property owned by the Debtor’s affiliate/joint venturer, 4218 Partners LLC, to build a large commercial building whose tenants are expected to include a major hospital, a health care facility and a banquet hall, each of which will provide services that are much needed by the local community.
The progress on the Project ground to a halt for more than four months as a result of the COVID-19 pandemic, despite the efforts of the Debtor, its affiliates, and their principals toward fulfilling their goal of developing the Properties. They have invested millions of dollars in the process and continue to invest their funds on an ongoing basis.
The Debtor also noted that the denial of an application for parking has further delayed progress. As of today, the State of New York is still subject to a disaster emergency and related executive orders, and economic activity remains largely frozen. This is an extremely difficult and unusual environment in which to do business, the Debtor said.
The Debtor pointed out that its case is completely linked with the case of its subsidiary, 4202 Partners, as well as the cases of two other debtors involved in the 4218 Property. Any plan of reorganization for the Debtor will necessarily be dependent on and part of, a plan of reorganization for 4202 Partners and well as the 4218 Property debtors.
The Debtor submits that these circumstances warrant an extension of the Exclusive Periods to the same dates that apply to 4202 Partners and the other affiliated debtors. Using the same Exclusive Periods for all of the related debtors will minimize unnecessary administrative expenses and is appropriate in light of the fact the four debtors are all dependent on the development of the Project and will ultimately file a joint plan of reorganization (or identical plans of reorganization). Further, the requested extension is well within the range of similar relief granted by courts in this district under similar circumstances.
The Exclusive Filing Period for 4202 Partners expires October 23, 2020, and the Exclusive Solicitation Period expires December 22, 2020.
By Order dated June 19, 2020, the Court extended the exclusivity periods to file and solicit acceptances to a Chapter 11 plan of reorganization, through and including September 25, 2020, and November 24, 2020, respectively.
About 4202 KI TOV LLC
4202 KI TOV LLC is engaged in activities related to real estate.
4202 KI TOV LLC filed its voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 20-40573) on Jan. 29, 2020. In the petition signed by Samuel Pfeiffer, manager, 4202 KI TOV estimates $250,000 in assets and $12,300,000 in liabilities.
The Debtor’s wholly-owned subsidiary, 4202 Partners LLC, filed June 25, 2020, its own Chapter 11 Petition.
Nathan Schwed, Esq. at ZEICHNER ELLMAN & KRAUSE LLP represents the Debtors as counsel. The Honorable Nancy H. Lord oversees the case.
The Debtor hired Zeichner Ellman & Krause LLP, as its attorneys.