One Madison Park

Judge Kevin Gross, in an opinion released yesterday, said the case involving the luxury tower at 23 East 22nd Street, is placing an untold burden on his courtroom and cited an inability and unwillingness of the various parties to resolve several key disputes in the bankruptcy. The decision forces part of the case to start from scratch in New York state court after 1.5 years in bankruptcy court in Delaware.

“These adversary proceedings are extremely contentious and there is minimal cooperation among the parties,” Gross wrote in his opinion. “It’s fair to say the parties won’t agree on what day it is.” [more]

HFZ Group principal Ziel Feldman’s presentation of a final rescue plan at One Madison Park is expected within a week, The Real Deal has learned, after he emerged as the leading bidder in a bankruptcy auction earlier this month.

Sources say the court approved another extension by the debtors, which would move the official disclosure of the plan to mid-May at the earliest, and possibly into June.

Feldman, who has been working for months behind the scenes to help move the project through bankruptcy, submitted a winning bid that would pay about $165 million to get the project out of bankruptcy court and would need at least $40 million to complete construction of the luxury tower, located at 23 East 22nd Street in the Flatiron area, according to sources familiar with the discussions. [more]