--- In AsburyPark@yahoogroups.com, "bluebishop82" <[EMAIL PROTECTED]>
wrote:
>
> The City wasn't weak, it's argument was. Do your really think the
> Bankruptcy Judge would let one creditor (Asbury Park) take back
the
> whole asset without Carabetta's other creditors getting
something?
> It doesn't work that way. The City had no chance of just getting
> the rights back and walking away. No chance.
>
> Besides, they were trying to declare default AFTER the filing,
which
> as I put in my last post isn't allowed because of the automatic
> Bankruptcy stay.
Exactly the point. The City never really tried did they? AP has been
rocked by mismanagement for decades. Perhaps we've gone from the
frying pan into the fryer. The state was ready to lend assistance
which was rebuked by the city. Bad move.
> The City gave the sleeve's off its vest.
Maybe more like the shirt off its back considering the eventual deal.
> Your analysis is wrong because the City would have no say in the
> matter at all. As I stated in my last post the State (or anyone
> else for that matter) only had to convince the Bankruptcy Trustee
> that the deal was good, and he in turn would put it before the
Judge
> for approval. It wasn't up to the City. They could be heard on
the
> matter, but they couldn't make the decision - that is left to the
> sole discretion of the Bankruptcy Trustee and the Judge. You
can't
> blame the City for anyone's deal falling through because it was
> never up to them.
But the state would have had more leverage and resources.
> This is incorrect. Not only does the Bankruptcy Judge have
> jurisdiction, once the Petition in Bankruptcy is filed,
jurisdiction
> is exclusive to the Bankruptcy Court because of the automatic Stay
> of all proceedings.
>
I will defer to you on the law and I just got off the phone with my
eminent domain attorney to verify that you are correct that federal
law would trump condemnation. However, that being said, this is not
a unique situation. In fact, it has happened in a case I am involved
with here in NYC.
Interestingly it deals with the expansion of John Jay College. The
developer moved for protection of the Bankruptcy Court after
foreclosure proceedings were commenced by its lenders. While in
Bankruptcy Court, the City (NYC) moved to condemn the property for
expansion of the College (part of CUNY). The City applied to the
Bankruptcy Court to condemn the property which was permitted and the
condemnation award is/will be administered through the Bankruptcy
Court.
The same thing could and should have happened in AP. In fact, the
city (AP) would also be one of the creditors which would receive the
proceeds from the condemnation award which it would have paid in the
first place.
No matter how you look at it, the deal sucks and could not have been
the best way to remedy the situation. However, that is all spilled
milk. Its only relevance is that the city continues to listen to bad
legal advice, just like it did 4-5 years ago. Council, get real.
Disavow the 2002 WRP entirely. Time has not tolled to challenge it.
It is null and void ab initio. Boot Partners in toto.
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