All Year Holdings files for bankruptcy with $1.17B in assets

Yoel Goldman’s All Year Holdings filed for chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Manhattan yesterday, December 14, 2021, citing assets and debts of more than $1 billion each.

The holding company, which is now controlled by a board led by CEO Assaf Ravid, cited several threats to its ability to sell the assets for a “maximum” value. The threats included a judgment against Goldman for $37.87 million and the expiration on January 4, 2022, of an agreement with Goldman that allowed the board control of the company. The parties have not been able to extend that agreement, the petition says.

The petition says the company owns a portfolio with 1,648 residential units and 69 commercial units in Bushwick, Williamsburg and Bedford-Stuyvesant with an “aggregate net book value in excess of $1.17 billion,” and debts of about $1.6 billion composed of about $800 million in bonds and $760 million in property mortgage debt.

Meanwhile the board is in discussions with bondholders and potential buyers to resolve the situation. The company recently sold the Denizen rental complex for $506 million.

One of the threats is a confession of judgment entered on December 9, for $37.87 million, which the company fears could be attached to All Year assets. The company became aware of the judgment on December 13, according to the petition.

Goldman and All Year entities are besieged by litigation, with one or the other a party in more than two dozen lawsuits filed over the past two years, many of them still active.

A spokesperson for the company provided the following statement: “All Year Holdings has been engaged in a robust process to maximize the value of its real estate portfolio, which is continuing to advance with the support of bondholders. Led by All Year’s restructuring officers, this process has already garnered substantial interest from third-party investors and follows the recent successful sale of the Denizen luxury rental complex in Bushwick for $506 million in cash.

“To further advance and ultimately effectuate a value-maximizing transaction, All Year initiated a voluntary Chapter 11 proceeding on December 14 with the support of its bondholders. All Year continues to maintain ample liquidity to manage its ongoing operational needs and the needs of its subsidiary properties, including paying mortgage and related property expenses in a timely manner.

“All Year remains focused on driving the process to conclusion as swiftly as possible for the benefit of its stakeholders.”