NY Appeals Court Reopens $1B Meadowlands Loan Suit

Law360, New York (May 8, 2012, 6:37 PM EDT) -- A New York appeals court on Tuesday said a lender had shirked its obligations by not paying advances on its share of a $1 billion loan for an entertainment and shopping complex at New Jersey's Meadowlands, a project the developer abandoned after funding snags.

The 4-1 decision reverses a lower court judge's ruling that roundly dismissed breach-of-agreement allegations against Xanadu Mezz Holdings LLC and its guarantor, a Lehman Brothers unit brought down in the bank's collapse.

According to the appeals court panel, XMH was responsible for...
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