The court in Rudy Giuliani’s bankruptcy case called the request “a sound exercise of business judgment” and permitted the debtor to engage Sotheby’s International Realty to sell the former mayor’s multimillion-dollar NYC condominium.
U.S. Bankruptcy Judge Sean Lane issued the decision on Friday, noting that he was also “satisfied” that Giuliani’s motion was “otherwise in the best interests” of his estate.
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In May, Giuliani lawyer Heath Berger filed an application claiming that Sotheby’s and a top real estate broker known for the sales of “premier and super-luxury residences and apartments” were more than qualified to market the debtor’s posh Manhattan digs as his various creditors sought to collect.
“Given the value of the residence, the sale of the residence cannot be achieved without the retention of a highly sophisticated and experienced broker to market and sell the residence,” the filing by Giuliani stated. “Thus, the retention of Sotheby’s and the compensation structure proposed herein is reasonable and easily meets the business judgment test.”
Judge Lane agreed and issued a series of instructions outlining what Sotheby’s will and will not be compelled to do while the Chapter 11 bankruptcy proceedings are ongoing.
One of the stipulations is that the court and Giuliani’s creditors receive weekly information on potential bidders’ interest in the property.
“At least once a week, beginning on the Thursday following the entry of this Order, Sotheby’s, with the full consent of the Debtor, shall provide an update, which may be in the form of an e-mail, to the Debtor’s counsel and counsel for the Official Committee of Unsecured Creditors regarding all activity related to the residence, including, without limitation, showings, open houses, outreach, in-bound inquiries, and any other information related to
If there are any offers, Lane stated that Sotheby’s “shall” deliver the documents to creditors’ lawyers “before any decision is made to accept, reject, or counter the offer and any communication takes place regarding such decision with the party who provided the offer.””
