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

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

arrow_forward_ios
960 Franklin Avenue in Crown Heights and Continuum Company founder Ian Bruce Eichner (Hill West Architects, Getty)
Bruce Eichner sues to save Crown Heights residential project
Bruce Eichner sues to save Crown Heights residential project
Bruce Eichner and the Community Church of New York at 40 East 35th Street (Google Maps)
Eichner to buy cash-strapped Midtown church for $70M, eyeing condo project
Eichner to buy cash-strapped Midtown church for $70M, eyeing condo project
Big win for Ian Bruce Eichner in legal war with Manhattan Club timeshare investors
Big win for Ian Bruce Eichner in legal war with Manhattan Club timeshare investors
Big win for Ian Bruce Eichner in legal war with Manhattan Club timeshare investors
iStar's Jay Sugerman and 32 Old Slip (Getty, RXR Realty)
iStar buys into ground under 32 Old Slip for $91M
iStar buys into ground under 32 Old Slip for $91M
Bruce Eichner with a rendering of the Bay Harbor Islands project
Eichner plans waterfront condo projects in Bay Harbor Islands
Eichner plans waterfront condo projects in Bay Harbor Islands
Plaza Construction’s Richard Wood and Ian Bruce Eichner with 45 East 22nd Street (Courtesy StreetEasy, Plaza Construction)
Plaza Construction seeks to foreclose on Eichner’s Flatiron units
Plaza Construction seeks to foreclose on Eichner’s Flatiron units
Jay Sugarman (Credit: portfolio breakdown map courtesy of Safehold Inc.)
Safehold’s deal pipeline shrinks while incomes hold steady
Safehold’s deal pipeline shrinks while incomes hold steady
Jay Sugarman
Behind Safehold’s paydirt plan
Behind Safehold’s paydirt plan
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...