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Bankrutpcy Judge Rejects Astani's Plan of Reorganization

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DOWNTOWN: Update #457 in the battle between Concerto developer Sonny Astani and Starwood. In a setback for the developer, a bankruptcy judge today rejected Astani’s proposed plan of Chapter 11 organization. Among the reasons cited by Judge Vincent P. Zurzolo: Even though Astani has already sold numerous units in the Concerto tower, he says the developer still needs to prove to the court that he can sell out the rest of the building. “There is a significant credibility gap in the projection of sales,” said Zurzolo. "Between what has happened and what the debtor says is going to happen with sales.” That said, Judge Zurzolo has also shown a pattern of pushing Starwood (known in this case as CCV) and Astani to work out their issues and come to a resolution. A December date was set and Astani now has to file a new plan of reorganization. Meanwhile, Astani tells us he plans to ask the bankruptcy court to allow all pending tower sales to go through so people can start moving in. Lights on in the tower, maybe. [Curbed Staff] Image of Welton Becket-designed Federal Building via You Are Here
· Big Couple of Days for Astani, Starwood and Concerto [Curbed LA]