Bankrupt Flushing developer puts 3 NYC properties with debts above $160M in Ch. 11

By Adam Pincus

The bankrupt grocery magnate and real estate developer Jeffrey Wu sought Chapter 11 protection for thee properties that have total debts above $160 million in New York City.

Wu, who is also known as Myint J. Kyaw, in July put three LLCs secured by mezzanine positions on those same properties into bankruptcy protection in a move that postponed a foreclosure auction on the mezzanine debt that was scheduled for that month, The Real Deal reported at the time. He also filed for personal bankruptcy at the same time.  That filing noted debts on mezzanine loans secured by these properties. With the latest actions he has sought protection for the entities that control the properties.

In the latest filing, Kyaw lists 39 unsold units at Victoria Towers valued at $33.37 million but he has creditors claiming $36.7 million in secured claims, and $2.5 million in unsecured claims. The legal name of the bankrupt entity is Victoria Towers Development Corp.

The second property is a commercial building at 41-60 Main Street in Flushing. The filing shows debts of $97.5 million. The value of the asset are incomplete. The filing indicated the property had a loss of $12 million in 2018. The legal name of the bankrupt entity is Flushing Landmark Realty LLC.

The third property is 80 Elizabeth Street, in Manhattan’s Chinatown. The Chapter 11 filing lists does not indicate a value for the asset, and liabilities of $29.1 million. The legal name of the entity is Queen Elizabeth Realty Corp.