Odyssey Diner, a fixture in Eastchester for 50 several years but dormant considering the fact that the commencing of the Covid-19 pandemic, has submitted for Chapter 11 bankruptcy safety is holding out the chance of reopening.
But Odyssey’s landlord opposes those programs, alleging that the proprietor has gutted the setting up and sold belongings with no accounting for the money.
Estiatorio Ent. Ltd., the company that operates the diner, petitioned U.S. Personal bankruptcy Courtroom in White Plains on Nov. 30, declaring $3,000,348 in property and $417,092 in liabilities.
Estiatorio’s operator, Konstantinos Doukas, says in an affidavit that his spouse and children has served healthful relatives-design food stuff for 50 yrs at 465 White Plains Highway, Eastchester.
“For the most portion,” the diner operated at a financial gain and paid its obligations, he states, but in March 2020 he shut it down due to the fact of government restrictions enacted in reaction to the Covid-19 pandemic.
He planned to reopen speedily but several circumstances designed that aim unfeasible.
Doukas has applied for a Restaurant Revitalization Fund grant that he would use to reopen the diner. Alternatively, he says, he would promote the setting up and reopen at another place.
Whilst Doukas’ organization owns the making, it does not possess the land, rather renting from Stacey Realty Associates, New Rochelle.
But Philip DeRaffele of Stacey Realty, says the creating instantly transferred to the landlord when Doukas defaulted on lease payments.
He claims in an affidavit that Odyssey Diner owes Stacey $418,082: which includes $286,000 in lease and $132,082 in actual estate taxes. Under the conditions of the lease, Doukas experienced to surrender title to the constructing if he failed to remedy a default, but has refused to do so.
What’s far more, in accordance to the landlord, Stacey is by significantly the greatest creditor but personal bankruptcy schedules record the credit card debt as disputed and the total as mysterious.
The biggest credit card debt listed is $250,000 to Doukas for advances that he built to the enterprise.
Even if Doukas however had a genuine title to the constructing, DeRaffele claims, the making is not well worth the $3 million that is claimed in individual bankruptcy schedules.
In months of closing the diner the setting up was gutted, in accordance to DeRaffele. All furnishings and equipment, even HVAC methods, ceiling tiles “and seemingly any other house that could conceivably be taken out,” have been removed and marketed.
No portion of the proceeds have been paid out to the landlord, DeRaffele promises, and have been “presumably retained” by the company.
He statements that the Chapter 11 reorganization petition was filed in poor faith and he is asking the court to transform the scenario to Chapter 7 liquidation, on the grounds of gross mismanagement and in the greatest passions of collectors.
Doukas argues in his affidavit that allowing for Stacey to “seize possession” of the constructing will let the landlord to “receive a windfall at the cost of the debtor and its creditors.”
The Odyssey is represented by White Plains attorney Anne J. Penachio. Stacey is represented by Manhattan lawyers Douglas J. Choose and Eric C. Zabicki.