When the March 2020 pandemic lockdowns shuttered entertainment and hospitality industries everywhere, Otway couldn’t make his loan payments. In November 2020 he tried to negotiate an extension on the loan. He learned that his debt had been sold to Maverick Real Estate Partners. His interest rate had jumped from 10% to 24%. Maverick did not respond to requests for comment.Last December, Otway filed for Chapter 11 bankruptcy, which would have allowed him to reorganize his finances and pay off the debt with future profits. But a bankruptcy court trustee said they didn't believe the theater, museum, and bar had enough income to make that plan work. Now the court has ordered the properties to be sold.For the Otways, this solution isn’t viable. They live in an apartment upstairs along with other tenants in the building. “We would lose our future and our past,” Otway said. “You can imagine the nightmare we’re facing — it’s Kafkaesque.”
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