(Updates with building history in sixth paragraph.)
Sept. 12 (Bloomberg) -- Anglo Irish Bank Corp., the nationalized lender, was sued over the sale of a loan tied to the condominium conversion of the landmark Apthorp building on Manhattan’s Upper West Side.
Anglo Irish, which is selling a $9.7 billion portfolio of U.S. real estate loans, must maintain at least a 51 percent interest in the $385 million loan, Apthorp Associates LLC said in a complaint filed today in New York state court in Manhattan. Apthorp is the sponsor of the condo conversion of the building, according to the complaint.
“Apthorp’s express contractual right to have a single majority lender on the project throughout the term of the loan will be lost absent prompt injunctive relief, thereby causing it irreparable harm,” Apthorp said.
JPMorgan Chase & Co., Wells Fargo & Co. and Lone Star Funds won the bidding for Anglo Irish’s $9.65 billion portfolio of U.S. real estate loans, three people briefed on the auction’s results, who couldn’t be named because the results weren’t public, said last month. The Dublin-based bank was nationalized in 2009 and is being wound down over a decade.
Billy Murphy, a bank spokesman, didn’t return a phone call seeking comment.
The Apthorp is on Broadway between West 78th and West 79th streets in Manhattan. It was built in 1908 and is listed on the National Register of Historic Places, according to the building’s website.
Apthorp said it negotiated to have Anglo Irish remain the majority lender on the loan to keep a lender familiar with the conversion project. The provision about Anglo Irish’s interest in the loan was meant to protect Apthorp against “an unsuitable lender” obtaining control, it said in the complaint.
“Continued financial commitment to the conversion project by the same lender (or substitute lender acceptable to Apthorp) is critical to its smooth operation,” Apthorp said.
The case is Apthorp Associates LLC v. Anglo Irish Bank Corp. Ltd., 652492-2011, New York State Supreme Court (Manhattan).
--With assistance from Dara Doyle in Dublin. Editors: Andrew Dunn, Michael Hytha
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