DPW Holdings Announces that CBCS Washington Street LP has Emerged from Bankruptcy
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Oct 11, 2019--
DPW Holdings, Inc. (NYSE American: DPW) a diversified holding company (“ DPW,” or the “ Company ”) announced today that the Plan of Reorganization submitted by CBCS Washington Street LP (“ CBCS ”) with its Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court of the Southern District of New York was confirmed by the court earlier this week. The Plan of Reorganization includes a $135 million construction loan commitment (the “ ConstructionLoan ”) from Hana Financial Investment of Hana Financial Group, one of the largest bank holding companies in South Korea with over $350 billion in assets under management.
The Construction Loan for the construction of the 94,000 square-foot luxury hotel in Tribeca (the “ Hotel ”) was arranged by Terence Park of VI Development Group and carries an interest rate of LIBOR plus 8 percent over a term of three years. Westchester-based Caspi Development entities will lead the hotel construction project and make all management decisions including decisions relating to the Construction Loan.
As announced on May 25, 2018, the Company holds a minority position in CBCS. Over the course of the bankruptcy proceedings, CBCS’s equity ownership was restructured such that, as of September 6, 2019, London-based Mactaggart Family & Partners, LP, is no longer an investor and 50% of CBCS is owned, directly and indirectly, by James R. Parks, an investor in Los Angeles. Mr. Parks has agreed to contribute $19 million as additional capital for the hotel construction project.
The Hotel is currently slated to open in April 2022 under the operation of the premier hospitality group, Groupe Lucien Barrière, of Hôtel Barrière Le Fouquet’s Paris.
“We are excited to move forward with this landmark US flagship property in the premier Tribeca area and thrilled to be a long-term partner in the hotel,” said Milton “Todd” Ault, III, the Company’s CEO and Chairman. On June 8, 2018, the Company became a limited partner by entering into a limited partnership agreement in a partnership responsible for the construction and related activities of the Hotel. DPW, as a limited partner, has agreed to finance a portion of the capital required by the partnership.
The Company recommends that stockholders, investors and any other interested parties read the Company’s public filings and press releases available on its website at www.DPWHoldings.com under the Investor Relations section or available at www.sec.gov.
About DPW Holdings, Inc.
DPW Holdings, Inc. is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly owned subsidiaries and strategic investments, the Company provides mission-critical products that support a diverse range of industries, including defense/aerospace, industrial, telecommunications, medical, crypto-mining, and textiles. In addition, the Company owns a select portfolio of commercial hospitality properties and extends credit to select entrepreneurial businesses through a licensed lending subsidiary. DPW’s headquarters are located at 201 Shipyard Way, Suite E, Newport Beach, CA 92663; www.DPWHoldings.com.
This press release contains “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company’s website at www.DPWHoldings.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20191011005126/en/
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY LODGING FINANCE TRAVEL PROFESSIONAL SERVICES
SOURCE: DPW Holdings, Inc.
Copyright Business Wire 2019.
PUB: 10/11/2019 06:45 AM/DISC: 10/11/2019 06:45 AM