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

TRD 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
40 East 72nd Street and Spiros and Antonia Milonas  (Getty; Google Maps)

Under water: Shipping magnate’s troubled UES condo is bankrupt

Under water: Shipping magnate’s troubled UES condo is bankrupt
(Getty)

When the music stops: Guitar Center could file for bankruptcy

When the music stops: Guitar Center could file for bankruptcy
J.C. Penney CEO Jill Soltau and Aurelius Capital Management CEO Dirk Markus (Getty; Wikipedia Commons)

J.C. Penney creditors want slow down “bad faith” sale

J.C. Penney creditors want slow down “bad faith” sale
Ruby Tuesday introduced plans to close 185 of its restaurants (Ildar Sagdejev via Wikipedia Commons)

CEO says bankruptcy is not goodbye, Ruby Tuesday

CEO says bankruptcy is not goodbye, Ruby Tuesday
J.C. Penney at the Westfield South Shore mall in Long Island and  J.C. Penney CEO Jill Soltau (Google Maps; Getty)

J.C. Penney to keep Bay Shore outpost open for now

J.C. Penney to keep Bay Shore outpost open for now
The Martinique hotel (Wikipedia, Google Maps)

Operator of Martinique Hotel in Manhattan files for bankruptcy

Operator of Martinique Hotel in Manhattan files for bankruptcy
Town Sports International CEO Patrick Walsh (Credit: JoJosh313; Getty)

Bankrupt New York Sports Clubs owner makes lender-takeover deal

Bankrupt New York Sports Clubs owner makes lender-takeover deal
Regus CEO Mark Dixon with 175 Pearl Street in Brooklyn, 1325 Sixth Avenue and 1501 Broadway (Regus, Google Maps)

Regus throws 6 NYC locations into bankruptcy

Regus throws 6 NYC locations into 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...