Grubb brokers object to bankrupt firm’s push not to compensate them for commissions

New York /
Mar.March 20, 2012 09:00 AM

After filing for bankruptcy, Grubb & Ellis sent letters to brokers and employees informing them they wouldn’t be compensated for commissions and other payments they were owed pre-bankruptcy. The New York Observer reported that more than 300 objections were filed by employees across the U.S. to prevent the court from approving the motion.

While some of the objections were for smaller claims, such as unused vacation time, others are owed hundreds of thousands of dollars. Brokers who are owed commissions for deals before the bankruptcy filing date have become unsecured creditors of the firm. Michael Gottlieb, a Manhattan-based vice chairman, for example, said he was owed more than $50,000 in back commission, nearly $100,000 in upcoming commissions for deals that will soon close and $250,000 as payments due next year because of his employment contract.

BGC Partners, which acquired the firm’s assets, has offered two-year loans, whose debt would be forgiven after that time, equal to commissions owed to brokers in an effort to retain them. But many are uncomfortable with the arrangement, the Observer said. [NYO]


Related Articles

arrow_forward_ios
Camber Property Group Principals Andrew Moelis and Rick Gropper with 440 West 41st Street (Caro Enterprises, Inc.)
Camber Property buys bankrupt Hell’s Kitchen building for $40M
Camber Property buys bankrupt Hell’s Kitchen building for $40M
Softbank CEO Masayoshi Son (Getty, Katerra, iStock)
Katerra files for bankruptcy
Katerra files for bankruptcy
JDS Development's Michael Stern and 613 Baltic Street (JDS, VOA Architecture)
Michael Stern-owned condo project files for Chapter 11 bankruptcy
Michael Stern-owned condo project files for Chapter 11 bankruptcy
Madison Realty principal Josh Zegen, Raphael Toledano with the properties at 325-329 East 12th Street and 223-235 East 5th Street (Madison Realty, Google Maps, Toledano by Michael McWeeney)
Madison Realty Capital closes on Toledano’s bankrupt East Village portfolio
Madison Realty Capital closes on Toledano’s bankrupt East Village portfolio
Photo illustration of Brookfield Property Partners’ Brian Kingston (Brookfield, iStock)
Struggling hotel company handing Brookfield the keys
Struggling hotel company handing Brookfield the keys
(iStock/Illustration by Kevin Rebong for The Real Deal)
Developer Tomer Dafna hit with involuntary bankruptcy petition
Developer Tomer Dafna hit with involuntary bankruptcy petition
AMC CEO Adam Aron (Getty, iStock)
AMC reopens 90% of U.S. theaters
AMC reopens 90% of U.S. theaters
Washington Prime Group CEO Louis Conforti (Twitter, iStock)
Mall owner Washington Prime Group prepares for bankruptcy
Mall owner Washington Prime Group prepares for bankruptcy
arrow_forward_ios

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

Loading...