9.28.26
Greenbaum partner David L. Bruck, Chair of the firm’s Bankruptcy, Financial Restructuring & Creditors’ Rights practice, secured dismissal of Brass Works Urban Renewal Co. LLC’s (Brass Works) Chapter 11 bankruptcy case in the U.S. Bankruptcy Court for the District of New Jersey on behalf of firm client, ASVRF Paterson Plank RD J-C LLC (ASVRF).
The dispute concerned The Cliffs, a 120-unit residential property in Jersey City. After Brass Works defaulted on payments to ASVRF, its preferred equity investor, ASVRF sought the removal of Brass Works from management of the Cliffs a change upheld by the entry of a judgment in the Delaware Chancery Court. After the entry of a final judgment and permanent injunction in the New Jersey Superior Court enforcing the removal of Brass works from management Brass Works filed for Chapter 11 protection, seeking to preserve its equity interests through a reorganization plan.
In dismissing the case, U.S. Bankruptcy Judge Mark E. Hall found that Brass Works’ proposed plan depended on management authority it no longer possessed and a condominium conversion it could not pursue. The court also determined that continuing the bankruptcy would hinder ASVRF’s efforts to refinance the property’s senior mortgage, while Brass Works could still pursue its objectives outside bankruptcy. The court concluded that dismissal was in the best interests of creditors and the estate.
Commenting on the outcome, David noted: Through perseverance and aggressive motion practice, the firm was successful in countering the debtor’s attempts to leverage the bankruptcy filing as a means to regain control of rights which had been stricken by judgments of the state courts. We are pleased to have been able to protect our client’s contractual rights so as to keep it in control of its investment and the refinance of the senior loan."
The matter is In re: Brass Works Urban Renewal Company LLC . The firm’s win was covered in Law360.