IStar to fight Eichner’s One Madison Park reorganization plan in bankruptcy court

TRD New York /
Dec.December 29, 2010 09:52 AM
From left: One Madison Park and Ian Bruce Eichner

IStar Financial has filed papers in Bankruptcy Court challenging developer Ian Bruce Eichner’s reorganization plan for the 50-story One Madison Park condominium tower, according to the Wall Street Journal. The lender, which launched a foreclosure action against the unfinished tower in February, is arguing that the project’s original developers, Ira Shapiro “acted improperly” in getting Eichner involved with the project when they did not have the authority to do so (note: correction appended).Under the proposed reorganization plan, announced last month and first reported by The Real Deal, Eichner would invest $40 million and gain control of the project and iStar’s $233.5 million mortgage would be cut by nearly half. But the lender, which is trying to stave off a bankruptcy filing itself, also wants control. A hearing is scheduled for tomorrow on the matter, and in its filings, the lender threatened that an endorsement of the Eichner-sponsored reorganization plan would mean that iStar would not be able to propose a turnaround plan of its own. [WSJ]

Related Articles

From left: A rendering of 425 Park Avenue, iStar CEO Jay Sugarman, and Nuveen managing director Nadir Settles (Credit: rendering via L&L Holding/Sugarman by Emily Assiran/Settles via Nuveen)

iStar-managed REIT signs $620M contract to buy ground lease at L&L’s 425 Park

Westchester & Fairfield Cheat Sheet: White Plains developer heads to prison, Marc Jacobs buys in Rye, Tommy Mottola sells in Greenwich… & more

New Jersey Cheat Sheet: Hampshire, Pinnacle approved for Montclair redevelopment, iStar seeks to sell $6M Asbury Park condos… & more

Asbury Park is set to receive $6M condos. Is the sleepy beach town ready for them?

New Jersey Cheat Sheet: Jersey City office tower sells for $170M, Mack-Cali buys Metropark building amid big portfolio sale… & more

LeFrak sells Jersey City office building to iStar for $170M

New York Life Insurance president’s condo in One Madison hits the market

Call me Houdini: Eichner gets Madison lifeline at Flatiron condo project