"City authorities on Monday asked a bankruptcy judge to delay a Chapter 11 auction scheduled for Thursday, saying they need more time to both evaluate a proposed $451 million deal to Summit Properties USA and "explore any potential alternatives." After the buildings were put into bankruptcy last year, Summit offered to buy dozens of buildings in Brooklyn, Manhattan, Bronx and Queens in the form of a stalking horse bid, meaning the transaction is subject to potentially better offers at auction."
"The challenge follows an assertion from Mamdani, just hours into his term as mayor, that the city would intervene in the bankruptcy to protect tenants. It foreshadows the 34-year-old's ambitious plans after he campaigned with a relentless focus on affordability, particularly around housing, ahead of his ascent to chief overseer of the most populous city in the US. Residents have dealt with a lack of heating, roaches and "the kind of conditions that no New Yorker should have to live through,""
"Advisers representing the bankrupt properties haven't provided the city with information about Summit's ability to consummate the proposed sale or whether it is willing and financially able to repair the buildings, New York City Corporate Counsel Muriel Goode-Trufant said in a court filing. The Pinnacle-owned buildings owe the city $12.7 million for unpaid debts and housing violations, the city said."
New York City requested a bankruptcy judge delay a Chapter 11 auction for thousands of rent-stabilized apartments to evaluate a proposed $451 million sale to Summit Properties USA and to explore alternatives. Summit submitted a stalking-horse bid after the buildings entered bankruptcy. City lawyers say advisers for the bankrupt properties have not provided information about Summit's ability or willingness to repair the buildings. The Pinnacle-owned properties owe $12.7 million in unpaid debts and housing violations. Residents reported lack of heat, roaches and substandard living conditions. Mayor Zohran Mamdani signaled immediate intent to intervene to protect tenants, making the case an early test of his housing agenda.
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