Real Estate Developer/Investor - Won Dismissal of Suit
Representation of a real estate developer/investor that proposed to invest in a debtor's Chapter 11 plan of reorganization, in a lawsuit arising out of the bankruptcy court's choice of a different plan. The debtors owned 38 properties secured by over $200 million, and our client entered into an agreement with the debtors to finance their plan of reorganization. But when the bankruptcy court confirmed a different plan, the debtor sued our client claiming that its "failure" to fund the plan caused its demise. We prevailed on behalf of our client on a motion to dismiss, which was upheld on appeal. Ginsberg v. Schron, 288 A.D.2d 146, 732 N.Y.S.2d 858 (1st Dep't 2001).