Major NYC Landlord Puts Thousands of Units in Bankruptcy-OxBig News Network

(Bloomberg) — Joel Wiener, a significant proprietor of New York City flats, has put properties with hundreds of residential models into chapter 11 months after a financial institution sought to foreclose on them.

Numerous property holding firms tied to Wiener’s Pinnacle Group sought courtroom safety Wednesday in New York. The properties listed belongings and liabilities of between $500 million and $1 billion on Chapter 11 petitions, every of which was signed by Wiener, who’s Pinnacle’s chief government officer. 

The bankruptcies had been filed months after Flagstar Bank initiated foreclosures actions in state courtroom towards the properties. Filing Chapter 11 instantly pauses authorized actions introduced towards the businesses.

The firms put into chapter 11 cowl house buildings in Manhattan, Brooklyn, Queens and the Bronx, based on courtroom paperwork. Lawyers representing the businesses within the foreclosures actions notified the state courtroom of the chapter filings on Thursday. 

A Pinnacle spokesperson declined to remark.

Pinnacle and its associated company associates aren’t a part of the Chapter 11 filings. The holding firms are represented by the legislation agency Weil, Gotshal & Manges LLP and monetary adviser FTI Consulting Inc., based on courtroom paperwork.

Wiener amassed a fortune via possession of rent-regulated flats in New York City. He has beforehand bought shekel-denominated debt backed by a portfolio of properties owned by Pinnacle Group and commerce in Tel Aviv beneath the identify Zarasai Group Ltd. 

Joel, together with members of the family and trusts, personal the odd shares of Zarasai Ltd., which is a privately-held firm integrated within the British Virgin Islands, based on chapter courtroom papers. Zarasai Group has round $216 million-equivalent of excellent bonds and its 5.45% bonds due in 2025 that commerce close to 87 cents on the greenback, down from close to par at the beginning of the 12 months, based on knowledge compiled by Bloomberg. 

The case is Broadway Realty I Co. LLC, quantity 25-11050, within the U.S. Bankruptcy Court for the Southern District of New York.

–With help from Georgia Hall.

(Updates with context and associated debt in paragraphs seven and eight.)

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