Odyssey Diner, a fixture in Eastchester for 50 decades but dormant because the commencing of the Covid-19 pandemic, has filed for Chapter 11 personal bankruptcy defense is holding out the probability of reopening.
But Odyssey’s landlord opposes those people designs, alleging that the proprietor has gutted the making and sold assets without having accounting for the funds.
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 property and $417,092 in liabilities.
Estiatorio’s owner, Konstantinos Doukas, claims in an affidavit that his family members has served wholesome household-type food items for 50 decades at 465 White Plains Road, Eastchester.
“For the most portion,” the diner operated at a earnings and compensated its obligations, he states, but in March 2020 he shut it down since of governing administration limitations enacted in reaction to the Covid-19 pandemic.
He prepared to reopen speedily but various circumstances built that aim unfeasible.
Doukas has utilized for a Restaurant Revitalization Fund grant that he would use to reopen the diner. Alternatively, he says, he would sell the creating and reopen at a different area.
While Doukas’ organization owns the setting up, it does not possess the land, as a substitute renting from Stacey Realty Associates, New Rochelle.
But Philip DeRaffele of Stacey Realty, suggests the setting up immediately transferred to the landlord when Doukas defaulted on lease payments.
He claims in an affidavit that Odyssey Diner owes Stacey $418,082: including $286,000 in lease and $132,082 in real estate taxes. Less than the conditions of the lease, Doukas had to surrender title to the constructing if he unsuccessful to heal a default, but has refused to do so.
What is far more, according to the landlord, Stacey is by much the greatest creditor but personal bankruptcy schedules record the credit card debt as disputed and the amount of money as mysterious.
The biggest debt mentioned is $250,000 to Doukas for improvements that he produced to the small business.
Even if Doukas nonetheless experienced a authentic title to the setting up, DeRaffele statements, the making is not truly worth the $3 million that is claimed in personal bankruptcy schedules.
Within just months of closing the diner the setting up was gutted, in accordance to DeRaffele. All furnishings and gear, even HVAC systems, ceiling tiles “and seemingly any other property that could conceivably be taken out,” had been taken off and bought.
No part of the proceeds were compensated to the landlord, DeRaffele statements, and were being “presumably retained” by the business.
He claims that the Chapter 11 reorganization petition was submitted in terrible faith and he is asking the court docket to transform the situation to Chapter 7 liquidation, on the grounds of gross mismanagement and in the very best pursuits of creditors.
Doukas argues in his affidavit that enabling Stacey to “seize possession” of the developing will let the landlord to “receive a windfall at the expenditure of the debtor and its lenders.”
The Odyssey is represented by White Plains attorney Anne J. Penachio. Stacey is represented by Manhattan lawyers Douglas J. Choose and Eric C. Zabicki.