BridgeStreet owed creditors nearly $90 million when filing for US bankruptcy

George Sell George Sell Uploaded 04 January 2021

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US: HCB (2020) LLC, which was formerly known as BridgeStreet, owed nearly $90 million, before it filed for US bankruptcy late last year.

Court documents filed with with the US Bankruptcy Court in Alexandria, Pennsylvania, showed that HCB (2020) LLC, which formerly traded as both BridgeStreet Corporate Housing and BridgeStreet Corporate Hospitality, had liabilities to commercial real estate partners, service providers and corporate users of its global network of suppliers and apartment units.

The company listed $2.15 million in assets, more than $88.8 million in liabilities and nearly 3,500 creditors, according to a recent submission to the court. Its largest secured creditor is Philadelphia-based Domus BWW Funding LLC, with a claim of nearly $62 million. Domus is listed as sole owner of HCB.

HCB's controlling shareholder, Philadelphia-based Versa Capital Management LLC is listed as an unsecured creditor owed more than $2.4 million.

Among the largest unsecured creditors listed in HCB's Chapter 7 petition is 47 East 34th Street LP. The limited partnership won a $10.9 million judgement from the Supreme Court of the State of New York stemming from a 2018 lawsuit it filed against BridgeStreet Corporate Housing over a lease for space in New York. Versa and Domus were also named as defendants in that suit.

The landlord of HCB's corporate headquarters in Reston, Virginia, was also among its largest creditors. BOF VA Campus at Sunrise LLC is owed nearly $2.7 million. Fairfax County Circuit Court issued a judgment in that amount against BridgeStreet Corporate Housing on November 16, according to public records.

HCB sold BridgeStreet's EMEA business to National Corporate Housing in early December.

"In the face of the Covid-19 global pandemic, and after exhaustively exploring all prudent alternatives, with the advice of its professionals BridgeStreet Global Hospitality effectuated the strategic sale of its EMEA agency business to National Corporate Housing Inc. while discontinuing and liquidating its remaining assets judicially in both the US and UK," HCB said in a statement. "While this is an unfortunate conclusion for many of BridgeStreet’s stakeholders, particularly for much of BridgeStreet’s talented workforce, we are pleased that National Corporate Housing, a leading provider of serviced apartments, will continue to work with many of BridgeStreet’s valued long-term EMEA clients and suppliers. This represents the best available course to be followed in these extraordinary circumstances."

 

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