Particle.news
Download on the App Store

Judge Rejects New York City’s Bid to Delay Pinnacle Bankruptcy Sale

The decision highlights how little leverage the city’s unpaid‑fines claim provides in shaping the fate of the troubled portfolio.

Overview

  • Bankruptcy Judge David Jones denied the city’s request to slow the transaction, allowing the proposed sale to move toward approval as soon as Thursday.
  • The portfolio includes more than 90 buildings with roughly 5,100 rent‑stabilized apartments tied to Pinnacle Group’s bankruptcy.
  • Summit Properties USA is the prospective buyer with a reported $451 million bid to acquire the properties.
  • City attorneys argued their creditor status from roughly $12–12.7 million in unpaid fines warranted intervention and questioned whether Summit could finance repairs under regulated rents.
  • Deputy Mayor for Housing Leila Bozorg said officials will keep pursuing steps to ensure code compliance and rent‑stabilization protections as tenant groups voice concerns about continued neglect.