DPW Holdings Announces that CBCS Washington Street LP has Emerged from Bankruptcy
October 11 2019 - 6:45AM
Business Wire
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 “Construction Loan”) 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.
Forward-Looking Statements
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.
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