Investors are walking away from a deal that might involve a $375 million cryptocurrency fundraise to buy New York's legendary Plaza Hotel

plaza hotelThe Plaza New York

  • A big deal, involving a supposed $375-million cryptocurrency token offering, is not going as planned, people familiar with the situation tell Business Insider.
  • A foreign group is trying to buy the famed Plaza Hotel from the Sahara Group.

A reported deal to buy New York's Plaza Hotel is not going as planned, people familiar with the situation tell Business Insider.

CNBC reported in March that Chimera, a foreign entity, was considering running a $375 million-plus ICO, a cryptocurrency twist on the initial public offering process, to help purchase the famed Plaza from the Sahara Group, a firm based in India.

It is a project that "Shark Tank" investor Kevin O'Leary alluded to during an appearance on CNBC.

"There's a big deal coming in New York in the next three weeks," O'Leary said, referring to a "very prestigious hotel."

"It's a $400 million coin issuance for a real asset you've heard of," he added.

Still, it's unclear if the ICO will ever happen.

Sources told Business Insider that the deal would first involve a private transaction in which Chimera would raise more than $675 million to purchase the Plaza. A public token offering to pay off the debt from the original transaction was considered as a next step. The sources doubt whether either will come to fruition.

The deal is not progressing, according to multiple people, and it is failing to attract enough investors. The people have walked away from the deal.

Multiple sources told Business Insider that O'Leary is not directly involved in the deal, yet.

The Plaza has been up for sale since 2017, according to The Wall Street Journal. The property, which can be valued above $500 million, has attracted dozens of potential buyers, The Journal reported.

Once declaring it "the ultimate trophy in the world," President Donald Trump bought the NYC landmark in 1988, declared bankruptcy on the property in 1992, and sold it in 1995.

After it changed hands a few more times, Sahara bought a controlling stake in the Plaza for $570 million in 2012.

Business Insider reached out to O'Leary and Chimera lead investor Shahal Khan and will update this post if they respond. The Sahara Group didn't respond to a request for comment.

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