Consumer Law

City Officials Ask to Probe a Last Minute Bankruptcy That Thwarted Foreclosure

The city is asking a bankruptcy court to allow it to probe the 11th hour formation of a limited liabilty partnership that halted a planned foreclosure auction of two Colony Street buildings.

A bankruptcy attorney hired by the city called the move a deliberate attempt to “derail” the auction and asked a New York federal bankrupty court to allow it to conduct a Rule 2004 examination, probing several claims made by CBD & Sons LTD and CBD Colony Street LLC. 

City officials have stated their goal is to move forward with the auction to get 9-11 Colony St. and 13-17 Colony St. into the hands of a viable owner. The properties were the subject of an 18-month foreclosure action in New Haven Superior Court and the sale was ordered for May 22. But a bankruptcy filing made by CBD Colony Street LLC the day before stopped the auction. 

Read the source article at myrecordjournal.com

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