The Dangers of Building on Quicksand (Allegria Land Bankrupt)

Breaking news for all the Allegria lovers and haters out there

And no, I’m not referring to this ridiculous video talking about the roof bar opening.

The company that owns the land under the hotel has filed for Chapter 11 bankruptcy protection.  I’m going to say this in upper case letters and bold to get the point across for all the rumor trolls.  THE ALLEGRIA IS NOT BANKRUPT OR IN FORECLOSURE.

What’s going on here is the Alrose Group, created a special entity called “Alrose King David” – which owns the land itself and they have filed for bankruptcy protection – a way to restructure debt and avoid foreclosure and all that other nasty stuff.

The hotel itself is owned by the Alrose Allegria LLC, and has not filed for anything, and is reportedly “on the upswing.”

You, like me may be asking “Hey, if these are both owned by Alrose, doesn’t that mean the one affects the other?”  I’d say the two cannot be separated, but I’m not going to get into the wonky financials here.  If you’re a whiz on these things, please feel free to comment.

The oompa-loompa-tinted Allen Rosenberg, president of Alrose Group is quoted by The Real Deal’s Adam Pincus as saying, “The bankruptcy filing “is against the real estate entity that owns the hotel; it has nothing to do with the hotel operations,”

The Real Deal article goes into some fun conjecture, heresy, and rumors about whether they are broke as a joke, or doing just fine, and I’ll let you read that over there.

Newsday’s James Berstein quotes Rosenberg as saying, “The [bankruptcy] filing is a necessary evil to get us through some restructuring. We hope to be out of bankruptcy as quickly as possible.” And went on to say that process could take from 90 days to two years.

Without a doubt this impending Chapter 11 filing was connected to the Allegria completely giving up on trying to get the abandoned lot next door.

So, finally, we have some concrete news one way or another about what’s going on at the controversial purple building.  I’ve got some emails out and will update if I have more info.  I’ll now step back and allow the comment war begin – I just ask that you keep it civil!