Kaye Scholer Represented PB Capital in “Secured Party” Sale of Real Estate Through a Prepackaged Plan of Reorganization

On April 7, 2010, a group of senior lenders lead by PB Capital, as agent, closed the sale of the Dumont, a recently-completed 560-unit condominium development in Washington, DC, to Equity Residential, a public REIT. The transaction was structured as a “secured party” sale through a prepackaged plan of reorganization confirmed two months after the borrowers filed Chapter 11 in the United States Bankruptcy Court for the District of Delaware, In re Broadway 401 LLC et al., No. 10-10070 (Carey, J.). Kaye Scholer represented PB Capital, as agent, in connection with the transaction and in the Chapter 11 case. The transaction was completed pursuant to a global settlement involving the senior lenders, the mezzanine lender, the borrowers and their principals, among others. The Kaye Scholer team was lead by Warren Bernstein, Frank McCay (Real Estate, New York), and Tyler Nurnberg and Katie Schmanski (Business Reorganization & Creditors' Rights, Chicago).