Crestlloyd: Los Angeles mega-mansion developer objects to sale

By Sarah Lizee

Olympia, Wash., March 16 – Crestlloyd, LLC’s motion seeking court approval to sell its Los Angeles-based mega-mansion for $126 million to winning bidder Richard Saghian drew an objection from the mansion’s developer, Nile Niami, according to a Tuesday filing with the U.S. Bankruptcy Court for the Central District of California.

Niami said that about two months ago the debtor claimed the property had a fair market value of about $325 million and that, even if it sold for substantially less, the debtor would still have millions in equity in the property and more than enough funds to pay all allowed claims in full.

“The court relied on these representations in approving the proposed sale process, as it previously did in approving the DIP financing,” Niami said in his objection.

“Now, the debtor seeks approval of a miserable failure that nonetheless provides multimillion dollar commissions to professionals and full recoveries to the senior lender.”

Niami said the sale should be denied because it fails to establish that the proposed sale price is the best alternative available or is in the best interests of the estate and creditors.

He also said the sale should be denied because it is predicated on, and the underlying sale process was only approved based on, the debtor’s representations of full satisfaction for creditors.

A sale hearing is scheduled for March 18. The company is hoping to close the sale on March 21.

The Los Angeles-based home builder filed bankruptcy on Oct. 26 under Chapter 11 case number 21-18205.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.