One such battle involved the Garment Center Congregation, a Jewish synagogue that alleged the debtor reneged on a promise to construct a new worship space. The matter was settled with a $4 million payment to the congregation.
Other settlements followed, including one with the resort’s former management company and a restructured loan deal with OWS.
Big Numbers, Big Commitments
OWS, owed approximately $149 million, will receive an initial $9 million payout, with the remaining balance—about $140 million—set to be refinanced and extended.
Funding for the case came from mezzanine lenders, who contributed around $24 million in unsecured loans and an additional $19 million to fund plan payments.
Scott Markowitz, attorney for the Garment Center Congregation, expressed satisfaction with the resolution.
“Although the Garment Center Synagogue was expecting to move back in, as was the original deal, under all of these changed circumstances and in view of the costs and uncertainty of extended litigation, the congregation is pleased with the settlement and putting this chapter behind,” he stated.
Legal Teams and the Road Ahead
The debtor was represented by Frederick E. Schmidt Jr. and Christina M. Sanfelippo of Cozen O’Connor. Margaritaville Enterprises LLC had legal counsel from David B. Kurzweil and T. Charlie Liu of Greenberg Traurig LLP. OWS was backed by Gregory M. Petrick, Thomas J. Curtin, and Anthony L. Greene of Cadwalader Wickersham & Taft LLP. The Garment Center Congregation’s legal interests were handled by Scott S. Markowitz and Debra Bodian Bernstein of Tarter Krinsky & Drogin LLP.
