Levy dealt legal blow at Park Columbus

January 14, 2010 03:59PM

The bankruptcy court of New York’s Southern District dished out another batch of bad news for embattled developer Yair Levy yesterday, ruling that the lender on Levy’s Park Columbus development at 101 West 87th Street could move forward with foreclosure proceedings, Crain’s reported. Levy had defaulted on the 95-unit condo’s $20 million loan last year, but the day before a September foreclosure auction was scheduled for the property, Levy filed for bankruptcy on the building and petitioned to block the auction. Despite the legal blow, Dan Deutsch, a representative for Levy from YL Real Estate Developers, said that Levy’s group will bring forward claims against its lenders. “We anticipated this might happen, but regardless, we are still pursuing damage claims against the banks,” Deutsch said.

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