New York's Plaza Hotel auction delayed

Plaza Hotel NYC

New York's Plaza Hotel, which had a planned foreclosure auction next month, was canceled after the holders of the mortgage reached a deal giving borrowers more time to sell the property and pay off the loan.

The hotel's ownership has been uncertain for two years, with billionaire brothers David and Simon Reuben holding the mortgage of the property. An auction was scheduled for April 26.

The Reubens' loan was purchased from the Bank of China after Sahara India Pariwar, the property's majority owner, defaulted on it last year. Sahara is owned by Subrata Roy, who was jailed in March 2014 due to outstanding debt in the billions to bondholders. 

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The Plaza's 109-year history has seen it run by a variety of owners, including presidential candidate Donald Trump in 1988, who sold it to Prince Alwaleed bin-Talal of Saudi Arabia and then Israel's Elad Group. 

The Plaza's hotel rooms, restaurant and retail space are for sale as part of a package with the Dream Downtown hotel in Manhattan's Chelsea Neighborhood. Roy and Chatwal own the Dream. Both hotel's mortgages are worth roughly $500 million.

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