Odyssey Diner, a fixture in Eastchester for 50 a long time but dormant considering the fact that the beginning of the Covid-19 pandemic, has filed for Chapter 11 individual bankruptcy safety is holding out the probability of reopening.
But Odyssey’s landlord opposes people programs, alleging that the proprietor has gutted the developing and bought assets with no accounting for the cash.
Estiatorio Ent. Ltd., the company that operates the diner, petitioned U.S. Bankruptcy Court docket in White Plains on Nov. 30, declaring $3,000,348 in belongings and $417,092 in liabilities.
Estiatorio’s operator, Konstantinos Doukas, claims in an affidavit that his relatives has served wholesome spouse and children-design and style food items for 50 years at 465 White Plains Highway, Eastchester.
“For the most section,” the diner operated at a profit and compensated its obligations, he claims, but in March 2020 he shut it down simply because of authorities constraints enacted in reaction to the Covid-19 pandemic.
He planned to reopen rapidly but several conditions created that goal unfeasible.
Doukas has applied for a Cafe Revitalization Fund grant that he would use to reopen the diner. Alternatively, he says, he would sell the setting up and reopen at one more locale.
When Doukas’ enterprise owns the building, it does not individual the land, in its place leasing from Stacey Realty Associates, New Rochelle.
But Philip DeRaffele of Stacey Realty, suggests the constructing immediately transferred to the landlord when Doukas defaulted on lease payments.
He claims in an affidavit that Odyssey Diner owes Stacey $418,082: like $286,000 in rent and $132,082 in serious estate taxes. Under the terms of the lease, Doukas experienced to surrender title to the setting up if he failed to remedy a default, but has refused to do so.
What’s extra, in accordance to the landlord, Stacey is by much the greatest creditor but bankruptcy schedules list the debt as disputed and the volume as unfamiliar.
The biggest credit card debt detailed is $250,000 to Doukas for advances that he made to the small business.
Even if Doukas still experienced a respectable title to the building, DeRaffele promises, the making is not value the $3 million that is claimed in individual bankruptcy schedules.
Within just months of closing the diner the constructing was gutted, in accordance to DeRaffele. All furnishings and devices, even HVAC devices, ceiling tiles “and seemingly any other house that could conceivably be taken out,” have been eliminated and offered.
No portion of the proceeds were being paid to the landlord, DeRaffele statements, and have been “presumably retained” by the business.
He statements that the Chapter 11 reorganization petition was submitted in undesirable faith and he is asking the court docket to convert the circumstance to Chapter 7 liquidation, on the grounds of gross mismanagement and in the best pursuits of creditors.
Doukas argues in his affidavit that letting Stacey to “seize possession” of the constructing will make it possible for the landlord to “receive a windfall at the expenditure of the debtor and its collectors.”
The Odyssey is represented by White Plains legal professional Anne J. Penachio. Stacey is represented by Manhattan attorneys Douglas J. Decide and Eric C. Zabicki.