Filing Alert: YO1 Longevity & Health Resorts Owner Chapter 11

Update (October 2, 2026): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of Veria Lifestyle Inc.

Veria Lifestyle Inc., owner and operator of YO1 Longevity & Health Resorts, a holistic wellness resort in Monticello, NY, filed for Chapter 11 protection on Oct. 2 in the U.S. Bankruptcy Court for the District of New Jersey.

The debtor attributes its distress to the timing of the resort's commercial launch in October 2019. The launch was followed by a pandemic-related closure of about 18 months and a slow recovery afterward, as guests stayed wary of the physical contact that wellness and ayurveda treatments require. Liquidity tightened further because Canara Bank and Union Bank of India (UK) Limited did not disburse their full commitments under a $45 million June 2016 Building Loan Agreement. The debtor says that as a result it had to obtain other funding, and that this debt now exceeds the total owed to the banks. It also says repairs and maintenance were deferred, the property partly deteriorated, and it has had no funding for marketing.

The banks started a foreclosure action in Sullivan County Supreme Court on Jan. 26, 2022. A referee's report dated March 27, 2024, found $62.1 million due. On Aug. 24, 2026, the court confirmed the report and entered judgment for $73.1 million. The debt is secured by a mortgage on the resort premises and fixtures and by a lien on personal property. It is guaranteed by Subhash Chandra, by Veria Lifestyle Capital LLC (the debtor's direct parent) and by Natural Wellness UK Limited (its indirect parent). The debtor says it spent more than three years before filing trying to refinance and received limited interest. Four parties were given data room access, and a term sheet with one lender never became a loan agreement. The debtor concluded that Chapter 11 was its only viable path to reorganize.

To fund operations during the case, the debtor seeks approval of an insider DIP facility of up to $1.75 million, with $700,000 available on an interim basis. The lender is identified as the parent of the debtor's sole equity holder. The facility would bear 12% interest, charge no fees and mature one year after entry of a final order. It would be secured by liens on all estate property, junior to valid prepetition liens and related replacement liens, and would carry superpriority administrative claims subject to a carve-out. The debtor also seeks to use cash collateral. As adequate protection, it proposes replacement liens and interest payments to the prepetition secured lenders, and it represents that their collateral position will at least hold steady over the budget period.

The company reports $10 million to $50 million in assets and $50 million to $100 million in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-21232.

Key Parties

Counsel:

• Vincent Roldan
  Mandelbaum Barrett PC
  Email: vroldan@mblawfirm.com

Signatories:

• Harish Goyal – CEO

Equity Security Holders:

• Veria Lifestyle Capital LLC – 100% Equity Interest

Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.

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