Trustee Wants Bankrupt NJ Hotel Owner's Auctioneer Tossed
By Emily Atkin
Law360, New York (October 11, 2013, 1:51 PM ET) -- The U.S. trustee overseeing Lafayette Yard Community Development Corp.'s Ch. 11 bankruptcy told a New Jersey federal judge that the proposed auctioneer who would run the non-profit hotel owner's sale process has a conflict of interest with Lafayette's debtor-in-possession lender.
U.S. Trustee Tracy Hope Davis urged U.S. Bankruptcy Judge Michael B. Kaplan to reject Lafayette Yard's application to retain auctioneer Sheldon Good & Co., saying DIP lender and investment firm Racebrook Capital Advisors LLC has the same owner, therefore creating an “adverse interest.” Racebrook could be...