Condominium associations withdraw FL 6801 case venue transfer motion

By Caroline Salls

Pittsburgh, July 3 – Three condominium associations withdrew their motion to transfer FL 6801Spirits LLC’s Chapter 11 case to the Southern District of Florida, according to Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

North Carillon Beach Condominium Association, Inc., Central Carillon Beach Condominium Association, Inc. and South Carillon Beach Condominium Association, Inc. said in the transfer motion that FL 6801’s bankruptcy case “is about a close-knit community in Miami Beach, Florida, whose ‘Canyon Ranch’ lifestyle and significant investment have been put into jeopardy by an over-reaching property owner.”

“The high stakes at play in this case directly impact the daily lives of each unit owner, yet this case is being played out over a thousand miles away from their homes,” the motion said.

Although the company entered a standstill agreement with the associations to negotiate a deal for the purchase of Canyon Ranch Miami by an entity controlled by the unit owners before the bankruptcy filing, the associations said the FL 6801 debtors now want to sell their property interest in Canyon Ranch Miami in a bankruptcy sale that would terminate the Canyon Ranch management and significantly devalue the unit owners’ interest in their condominium units.

According to the motion, the unit owners are interested in submitting a higher or better bid and plan to contest the company’s “unfair proposed sale procedures.”

The associations said FL 6801’s property, debtors, associations, unit owners and almost all key creditors and parties-in-interest in the Chapter 11 cases are based in Florida.

The debtors’ only connection to New York is that they are indirect subsidiaries of Lehman Brothers Holdings, Inc. and allegedly maintain an office in New York, the motion said.

The motion was withdrawn without prejudice. No reason was given.

FL 6801 Spirits is a New York-based subsidiary of Lehman Brothers Holdings Inc., which was the fourth-largest investment bank in the United States. The company filed bankruptcy on June 1 under Chapter 11 case number 14-11691.

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