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D.A.C. Secures "Home Of The Heisman"
NEW YORK, New York (21 April) - The Downtown Athletic Club of New York City took a giant stride toward concluding its bankruptcy case today and enabling the "Home of the Heisman" to move forward with its plan to sell the hotel portion of its 35-story facility in lower Manhattan. The DAC virtually ended its 14-month bankruptcy battle with the Club's mortgage holder, 18 West, which late today agreed to accept a $9.85 million settlement payment funded by Cheslock Bakker Associates of Stamford, Conn. Stanley Cheslock of Cheslock Bakker will effectively consummate the deal Thursday morning when he delivers the $9.85 million check to 18 West officials. The 18 West Corporation had purchased the DAC's mortgage from the Bank of New York one day before the 70-year club filed for bankruptcy in February with the case.
The settlement with 18 West in U.S. Bankruptcy Court enables the DAC to proceed with an agreement reached last week with Cheslock Bakker in which the Club would be sold to the real estate investment firm for $16 million and the athletic and banquet facilities then would be sold back to the DAC for $8 million.
"This is a historic day in the history of the Downtown Athletic Club," said DAC President William J. Dockery "This allows the DAC to enter the new millennium poised to assume its position as the pre-eminent athletic club in New York City. It will allow the Club not only to refurbish its athletic and banquet facilities, but also to enhance benefits afforded to members and most importantly, to continue its charitable and educational activities that have contributed to the fabric and quality of life in New York City for 70 years. "We're also delighted to partner the Downtown Athletic Club with a firm of the stature, reputation and integrity of Cheslock Bakker and Associates." The DAC was on the verge of being put on the auction block before getting a last-minute reprieve last week when the U.S. District Court upheld its appeal and ruled that the Club's reorganization plan should be considered by the Bankruptcy Court.
Contact: Joe Carnicelli |
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