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]
