Madison Capital, Meadow compete with Churchill to buy All Year bonds for as much as $388M

By Adam Pincus

Two New York-based partnership groups have submitted proposals to buy out bondholders of All Year Management debt, according to filings on the Tel Aviv Stock Exchange. The proposals are complex and offer various options that include modified bonds.

One group is Richard Wagman’s Madison Capital and Jeffrey Kaplan’s Meadow Partners, and the other is Justin Ehrlich and Sorabh Maheshwari’s Churchill Real Estate and the Graph Group, a family-owned nursing home and diversified ownership firm.

One of the options Madison and Meadow proposed envisions a total payment of $388 million composed of an upfront cash paydown and additional modified bonds.

Both groups’ proposals were made to All Year owners of series B, C, D and E bonds. The bonds are secured by assets in the All Year portfolio, including the Denizen X at 123 Melrose Street in Bushwick, the William Vale hotel at 111 North 12th Street in Williamsburg, and others.

PincusCo reported today that All Year placed the Denizen X in bankruptcy protection. The Madison-Meadow proposal alludes to

Madison and Meadow say in their filing they, “have current relationships with many of the Company’s property-level senior lenders and will
leverage those relationships to facilitate an orderly transition of control of the Company.”

The Madison-Meadow proposal is here.

The Churchill-Graph proposal is here.

The Madison-Meadow venture included a liquidity statement noting that Meadow Partners’ Meadow Real Estate Fund V LP and Meadow Recovery Fund LP have a combined available capital commitment of $306.3 million, “all of which is fully discretionary.”

Both proposals will include a review by the Tel-Aviv District Court.