The Capital Link Investigates Statements Regarding Mischaracterizations in Bisnow's Coverage of LuxUrban Hotels

Core Viewpoint - The Capital Link announced an investigation into LuxUrban Hotels Inc. following a misleading article by Bisnow regarding the company's bankruptcy situation, emphasizing the need for accurate reporting based on documented facts [1][8]. Summary of Misstatements vs. Documented Facts - The conversion to Chapter 7 was initiated by the U.S. Trustee and consented to by LuxUrban, contradicting claims that lenders forced the liquidation [2]. - No court order has declared an enterprise-wide shutdown of LuxUrban's operations, as the recent order merely transferred control of estate property to a Chapter 7 trustee [2]. - Allegations regarding hazardous conditions at The Herald Hotel are based on creditor pleadings and have not been adopted as judicial findings [2]. - The figure of $118.6 million owed to the New York State Department of Taxation is an asserted liability subject to objection, not an adjudicated debt [2]. - Claims of LuxUrban booking rooms while hotels were closed lack judicial findings of fraud or misconduct [2]. Chronology and Procedural Clarifications - LuxUrban filed for voluntary Chapter 11 on September 14, 2025, intending to restructure its lease portfolio and continue operations [5]. - The court approved joint administration of related affiliates on September 16, 2025, which is a routine procedure [5]. - The U.S. Trustee filed a motion on October 10, 2025, to appoint a trustee or convert to Chapter 7 [5]. - LuxUrban consented to the conversion on October 18, 2025, agreeing that liquidation was the most efficient path for stakeholders [5]. - The conversion order was entered on October 21, 2025, with no findings of misconduct or negligence [5]. - A creditors' meeting is scheduled for December 2, 2025, with approximately $123.6 million in asserted claims pending allowance or objection [5]. Procedural Integrity - LuxUrban has complied with Bankruptcy Rules and maintained counsel throughout the process, filing all required schedules [6]. Investor Litigation Reality Check - The civil case Pack v. LuxUrban Hotels Inc. is currently stayed due to bankruptcy, with no trial date or certified class existing, contrary to speculative claims about a future trial [7]. Closing Statement - The legal record presents a more nuanced narrative than the sensationalized reporting, highlighting the Debtor's consent to conversion and the absence of judicial findings of misconduct [8].