bankruptcy court

Bankruptcy Battle Breaks Out Over Greenwich Village Dev Site

UPDATED April 27, 10:50 p.m.: George Filopoulos gave up on a Greenwich Village building, but the troubled loans left behind have triggered a bizarre legal fight over the property, which is now being offered for sale as a condominium development site.

The drama began when the longtime real estate investor’s LLC was notified in August 2020 that it had defaulted its $9.3 million first mortgage at 307-309 Sixth Avenue.

The LLC — in which Filopoulos says he owned a 10 percent interest in separate from his firm, Metrovest Equities — failed to repay the loan at its maturity date and lender Castellan Capital filed to foreclose.

The case laid quiet during the pandemic and in December of 2021 Castellan sold its loan, according to property records. Filopoulos then transferred its interest in the property in May 2022, according to an attorney for his firm. A court filing does not say who took control of the ownership LLC. Paperwork for the entity was signed by a person named William Schneider, who in November filed project plans for a seven-story, 39-unit building with ground-floor retail and community space.

The judge in the foreclosure case ruled in June that the LLC’s debt had

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May 1, 2023 by ATTORNEY

Bankruptcy judge rejects fire victims’ new attempt at full compensation

In December, a giant hedge fund known as the Baupost Group told a federal bankruptcy court judge that it could be entitled to additional compensation from Pacific Gas & Electric Co. because false company statements inflated its stock value ahead of its 2019 bankruptcy.

But wildfire victims who tried the same gambit were denied by the same judge on Friday and were told PG&E will not be required to add money to the underfunded Fire Victim Trust.

“Victims have been taken advantage of throughout this bankruptcy case,” Tubbs Fire victim and advocate Will Abrams said. “This (was) a way to maybe get a little more justice and a little more money going to victims who have suffered enough from these fires.”

Lawyers for thousands of fire victims joined Abrams in asking Judge Dennis Montali for time to compose a plan for PG&E to bolster its payments to fire victims, based on the impact its alleged misrepresentations had on stock prices.

But, Montali ruled that allowing victims to amend their claims went against legal precedent and could undo the bankruptcy agreement.

“I find that Mr. Abrams’ motion, though well intended perhaps, is absolutely without any foundation in the law and facts,”

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March 30, 2023 by ATTORNEY

Genesis Lawyers Hopeful Of Swift Resolution In Bankruptcy Process

Genesis Lawyers Hopeful Of Swift Resolution In Bankruptcy Process

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Genesis Global Capital has been the latest casualty of the effects of the crypto bear market. The crypto lender recently filed for Chapter 11 bankruptcy. The company’s lawyers have informed a bankruptcy court in New York of working “around the clock” to settle with creditors.

Genesis hopes for a swift resolution in bankruptcy

The lawyers noted that they have been working with the representatives of creditors and the US Trustee Office for the last two months to reach a consensus. The lending unit of Genesis halted withdrawals on November 18 last year because of exposure to FTX. Genesis had funds in FTX before the exchange’s bankruptcy.

Two months after halting withdrawals, Genesis filed for bankruptcy. The bankruptcy filing included two of the lender’s subsidiaries: Genesis Asia Pacific and Genesis Global Capital. Lawyers from the Cleary Gottleib law firm, which is representing Genesis in the bankruptcy proceedings, informed the bankruptcy court judge that they plan to settle by the end of the week.

According to attorney Sean O’Neal, Genesis had come up with a timeline and an approach to assist the lender in getting through the bankruptcy case.

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January 27, 2023 by ATTORNEY

Lawyers for Genesis and Its Creditors Are ‘Optimistic’ for a Quick Resolution to Bankruptcy Woes

Lawyers for Genesis Global told a federal bankruptcy court in New York City on Monday that they’ve been working with creditors’ representatives and the U.S. Trustee’s Office “around the clock” for the past two months in order to reach a “consensual resolution” with the embattled company’s creditors.

Genesis’ lending arm halted withdrawals on Nov. 18, 2022, after what its lawyers described as “a run on the bank” in the wake of FTX’s collapse earlier that month. Two months later, on Jan. 19, Genesis Global Holdco – the holding company of Genesis Global Capital – and two of its subsidiaries, Genesis Asia Pacific (GAP) and Genesis Global Capital (GGC), global-files-for-bankruptcy-protection/” data-ylk=”slk:filed for Chapter 11 bankruptcy protection” class=”link “filed for Chapter 11 bankruptcy protection in New York.

Genesis’ lawyers – from the New York-based law firm Cleary Gottleib – told bankruptcy court Judge Sean H. Lane at a hearing on Monday they expect to reach an agreement with the creditors by the end of the week.

“We have a timeline and an approach to get through this case as quickly as possible,” Genesis attorney Sean O’Neal told the judge. “We really want to avoid getting involved in a prolonged

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January 25, 2023 by ATTORNEY

Bankruptcy lawyer urged clients to spread COVID-19, judge says

(Reuters) – A Colorado bankruptcy judge has sanctioned an Edgewater, Colorado lawyer for “blatant misconduct,” including advice he gave former clients to try to infect the trustee overseeing their case with COVID-19 or another illness.

U.S. Bankruptcy Judge Thomas McNamara on Tuesday suspended attorney Devon Barclay from practicing in Colorado bankruptcy court for three years over his conduct while representing Matthew and Nicole Mennona, a Littleton, Colorado couple who sought Chapter 7 relief during the pandemic.

Barclay forged his clients’ signatures on their Chapter 7 petition, tried to get the bankruptcy case dismissed multiple times under “false assertions of fact,” and ignored a trustee’s discovery efforts, leading to his clients getting hit with a $2,783.50 sanction, McNamara found.

McNamara also cited a Sept. 9, 2021, email from Barclay to his clients about a letter that was intended to be sent to another lawyer. “If either of you have COVID or some other highly infectious, nasty disease — or if you know someone who does — please make sure they lick the envelope and handle it as much as possible,” Barclay said in the email.

It is unclear from the court record whether the comment was meant as a joke. Barclay

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January 19, 2023 by ATTORNEY
December 2024
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