Morgans Hotel Can't Delay Burkle's $10M Debt-Swap Suit

Law360, New York (January 29, 2014, 4:48 PM EST) -- A New York state judge on Wednesday refused to stay a suit brought by billionaire Ron Burkle’s Yucaipa Cos. that seeks to recover $10 million from Morgans Hotel Group Co. over a botched debt swap, but he may reconsider depending on action in a related Delaware case.

Morgans had sought to stay the action while a heavily litigated derivative suit brought by a Morgans director seeking to block a recapitalization plan that would increase Yucaipa’s stake in the hotel operator plays out. But Judge Jeffrey K....
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