MAve foreclosure auction stalled by bankruptcy proceedings

May 17, 2011 03:08PM

The foreclosure auction of a piece of defaulted mezzanine debt on the Flatiron District’s MAve Hotel at 62 Madison Avenue between 27th and 28th streets, was postponed today when the property’s developers filed for Chaper 11 bankruptcy, according to Crain’s.

Madison Hotel Owners, purportedly the public face of Joseph Ben Moha, the owner of Roxy Deli, and Benzion Suky, a principal at Livorno Properties, filed late last night, according to court documents. The developers have total liabilities of $9.3 million, the documents revealed.

As The Real Deal previously reported, a Supreme Court judge approved a foreclosure judgment against the hotel in April. The collateral was to be marketed though the New York office of London-based Savills plc.

John Cuticelli, chief executive of Sheldon Good & Co., the company conducting the auction with Savills, told Crain’s: “We were prepared to go forward… We will keep our prospective bidders informed and [are] confident that this auction will happen.” [Crain’s]