Developer Sheldon Solow has lost a legal appeal to overturn a $98.9 million judgment against him in a suit brought by Citigroup in 2008, Bloomberg News reported.
Citibank filed the $86 million suit against Solow for allegedly failing to pay back loans and letters of credit issued in 2004 to finance a development project along First Avenue, between 38th and 41st streets.
In his appeal, Solow argued that the bank rejected his offer of more collateral and chose to sell off his initial collateral for much less than fair market value.
The appeals court rejected the appeal, saying that the bank’s sale of the collateral was “commercially reasonable.” It wasn’t bound to hold out and risk a drop in commercial values. [Bloomberg]