HRH Construction L.L.C. in White Plains, which has built and renovated the likes of publisher Scholastic Corp.”™s headquarters, The Plaza Hotel and Trump International in New York City, has filed for Chapter 11 bankruptcy protection.
The company took a blow in November 2008 when an arbitrary panel ruled in favor of the Metropolitan Transportation Authority in a $6.5 million judgment for payments concerning work on 2 Broadway, where the MTA has offices.
An affidavit reported as of Dec. 31, 2007, HRH”™s audited consolidated assets totaled approximately $95.1 million and recorded consolidated liabilities totaled some $106.1 million. Consolidated revenues at the end of 2007 were approximately $352.6 million.
A year later, in 2008, unaudited consolidated assets totaled about $50.2 million, consolidated liabilities totaled $60.6 million and consolidated revenues dropped to $193.3 million.
“In general, tightening credit markets may have put the brakes on a lot of projects,” said Gregory Spaun, an associate at construction law firm Welby, Brady & Greenblatt L.L.P. in White Plains. “I can”™t speculate for HRH, but in general, credit is what makes the construction industry run smoothly and with it being tightened, it”™s not running smoothly.”
Bankruptcy attorney Anne Penachio of Penachio Malara L.L.P. in White Plains said “this is a wake-up call that the recession really hasn”™t turned around.”
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“The federal stimulus package was supposed to help companies, but it may not be coming in fast enough,” she said. “I don”™t know what precipitated the filing, but I expect we”™ll see more of them.”
The affidavit reported unsecured debt totaling some $37 million.
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At the time of filing, records indicated the company had an estimated 200 to 999 creditors, assets of $50,000,001 to $100 million and liabilities of $50,000,001 to $100 million.
Current projects include: The “A” Condominiums at Washington First Plaza in Jersey City, and 270 Greenwich St., 101 Warren St., 8 Union Square South, 75 Wall St. and 95 Wall St., all in Manhattan.
Typically, Spaun said that through the duration of Chapter 11 bankruptcy proceedings, work on current projects can proceed depending on court approval.
For subcontractors, Spaun said some payments may end up being delayed.
Past projects include: The Trump National Golf Clubhouse in Briarcliff Manor, the Bank Street Commons in White Plains, The Residence at Jefferson Place in White Plains, Sephora stores, Nordstrom stores, Columbia University Graduate School of Journalism renovation, Hotel Giraffe in Manhattan, Trump International Hotel & Tower in Manhattan, the Brooklyn Museum renovation, Madison Square Garden renovation, the New York State Psychiatric Institute and Jacob K. Javits Convention Center,.
Vendors in Westchester County that are owed money include: Component Assembly Systems Inc., $4.5 million; National Interiors, $1.3 million; New Town Corp., $278,500; Intricate Construction, $252,263; H&H Woodworking Inc., $178,331; and Metrotech Contracting Corp., $179,500.
HRH Construction operates wholly owned subsidiaries HRH Construction of New Jersey as well as HRH Construction of Florida; it maintains offices in Manhattan and Jersey City, N.J.
HRH is a privately held Delaware limited liability company.
HRH”™s legal representatives at Herrick Feinstein L.L.P. in Manhattan and HRH Construction declined comment on legal proceedings.
The MTA declined comment as well.
