Closing Caps Successful Morrison Cohen Effort to Avoid Client’s Loss of Valuable Commercial Property
July 12, 2017 - Morrison Cohen client, BPBP LP (“BPBP”), closed on a mortgage loan from New York Community Bank with respect to a valuable commercial property it owns in Boro Park, Brooklyn. The loan, along with additional capital that it raised, enabled BPBP and its affiliates to pay off a hostile entity, which had acquired the mezzanine and mortgage loans on the property in mid-May with the sole intention of foreclosing quickly and acquiring the property for itself.
The closing capped a multifaceted and successful five-week effort on behalf of a Morrison Cohen team comprised of attorneys across several departments. After being retained as counsel days after the loans were acquired by the adverse entity and foreclosure proceedings had been commenced, Morrison Cohen assisted the client in reorganizing its various corporate affiliates, installing a new general partner for each entity, raising additional capital and obtaining necessary approvals from the entity’s many constituent partners; and also commenced court proceedings on an emergency basis to block a scheduled UCC sale of the mezzanine loan collateral, succeeded in adjourning such sale and closed on the new financing. As a result of such actions, BPBP was successful in paying off the adverse entity and maintaining its ownership of the property.