A state bankruptcy judge approved Grubb & Ellis’ liquidation plan on Wednesday, almost a year after the struggling commercial firm was acquired by BGC Partners, Law360 reported.
As a result of a series of operating losses and negative earnings Grubb & Ellis filed for bankruptcy in February 2012, and sold most of its assets to BGC in April of the same year for north of $50 million. Frank Oswald of Togut Segal & Segal LLP, an attorney for Grubb & Ellis, told the court that following the approval of the sale to BGC, “the committee and this debtor worked hand-in-hand” for the remainder of the bankruptcy process.
BGC used its acquisition to create Newmark Grubb Knight Frank, a consolidation of Grubb & Ellis and the BGC-owned Newmark Knight Frank. Oswald said that “thousands” of Grubb & Ellis employees remained on board through the deal, but many companies, including New York City newcomer Lee & Associates poached top talent from the firm, as The Real Deal previously reported.
The liquidation plan was filed in November and received responses from a secured creditor and two insurance companies, but Oswald told the court that their concerns were addressed prior to the hearing. [Law360] –Hiten Samtani