Odyssey Diner in Eastchester in bankruptcy battle for control of a building


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Odyssey Diner, a staple in Eastchester for 50 years but dormant since the start of the Covid-19 pandemic, has filed for Chapter 11 bankruptcy and offers the option to reopen.

But the owner of Odyssey opposes the plans, alleging that the owner has emptied the building and sold assets without accounting for the funds.

Odyssey Dinner, Eastchester

Estiatorio Ent. Ltd., the company that operates the restaurant, filed a petition in the US bankruptcy court in White Plains on November 30, declaring $ 3,000,348 in assets and $ 417,092 in liabilities.

Estiatorio owner Konstantinos Doukas said in an affidavit that his family has served healthy home cooking for 50 years at 465 White Plains Road, Eastchester.

“For the most part,” the restaurant made a profit and paid off its Iowa bankruptcy “}” data-sheets-userformat=”{“2″:513,”3”:{“1″:0},”12″:0}”>Iowa bankruptcy obligations, he said, but in March 2020 it closed it due to government restrictions enacted in response to the Covid-19 pandemic.

It was planning to reopen quickly but various circumstances made this goal unachievable.

Doukas applied for a grant from the Restaurant Revitalization Fund that he would use to reopen the restaurant. Alternatively, he said, he would sell the building and reopen in another location.

Although Doukas’ firm owns the building, it does not own the land, but leases it to Stacey Realty Associates, New Rochelle.

But Philip DeRaffele of Stacey Realty, says the building was automatically transferred to the landlord when Doukas failed to pay the rent.

He says in an affidavit that Odyssey Diner owes Stacey $ 418,082: including $ 286,000 in rent and $ 132,082 in property taxes. Under the lease, Doukas was to cede title to the building if he did not remedy a defect, but he refused to do so.

Additionally, according to the owner, Stacey is by far the largest creditor, but bankruptcy listings show the debt as disputed and the amount as unknown.

The largest debt listed is $ 250,000 to Doukas for the advances he made to the business.

Even though Doukas still had a legitimate title to the building, says DeRaffele, the building is not worth the $ 3 million claimed on bankruptcy lists.

A few months after the restaurant closed, the building was emptied, according to DeRaffele. All the furniture and equipment, even the HVAC systems, the ceiling tiles “and apparently any other property that could possibly be taken out” was removed and sold.

No part of the proceeds was paid to the owner, DeRaffele said, and was “presumably withheld” by the company.

He claims that the Chapter 11 reorganization petition was filed in bad faith and asks the court to convert the case to a Chapter 7 liquidation, on the grounds of serious mismanagement and in the best interests of creditors.

Doukas argues in his affidavit that allowing Stacey to “seize possession” of the building will allow the owner to “receive a windfall at the expense of the debtor and his creditors”.

The Odyssey is represented by White Plains lawyer Anne J. Penachio. Stacey is represented by Manhattan attorneys Douglas J. Pick and Eric C. Zabicki.

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