SOURCE: Cooley Godward Kronish LLP

January 30, 2007 08:00 ET

Cooley's Bankruptcy Practice Advises Former New York Met in Brooklyn Housing Project Renovation

Collaboration of City, Federal and Private Entities Results in Home Run for Tenants

NEW YORK, NY -- (MARKET WIRE) -- January 30, 2007 -- Cooley Godward Kronish's Bankruptcy and Restructuring Practice is advising former New York Met baseball player Mo Vaughn and his partner, Eugene Schneur, in their dramatic effort to transform a housing development in Brooklyn, N.Y.

On January 17, 2007, Judge James M. Peck of the Bankruptcy Court for the Southern District of New York signed an order approving the sale of Noble Drew Ali Plaza to Mr. Vaughn and Mr. Schneur's company, Omni New York LLC, for $21 million. Omni New York has committed to vastly improve the quality of life in the complex, located in the Brownsville section of Brooklyn, N.Y., and Mr. Vaughn has devoted his post-baseball career to rehabilitating and revitalizing economically distressed communities in the New York City area and elsewhere in the country.

In addition to the purchase price, Omni New York will spend $23 million to rehabilitate and upgrade the structure, the appearance and the security of the five buildings and grounds of the complex. This expenditure equates to approximately $60,000 in renovations per apartment. The scope of the improvements for the buildings will include new lobby areas, elevators and upgraded heating systems, and the addition of 300 security cameras and security guards. Apartment improvements will include new floors, windows and complete renovation of the kitchens and bathrooms. There will be no displacement of any tenants during the rehabilitation.

"This is a win-win for everyone involved, especially the tenants of Noble Drew," said James Beldner, the Cooley partner leading the bankruptcy representation. "It is also a powerful example of how entities such as the Creditors' Committee, the Department of Housing and Urban Development, the City of New York and the local union have collaborated for the common good -- in a profitable way."

In addition to Mr. Beldner, Cooley bankruptcy attorney Gregory Plotko is also advising on the matter.

Cooley's Bankruptcy & Restructuring Practice represents secured lenders, official and unofficial creditors' committees, equity committees, employee and retiree committees, tort committees, investors in distressed situations, debtors, companies and governmental entities in the negotiation of complex reorganizations. Major cases the Firm has handled include litigations in the Enron, Montgomery Ward, Federated Department Stores, Pacific Gas and Electric Company and USG Corporation Chapter 11 cases.

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Contact Information

  • Media Contact:
    Mark Curran
    Cooley Godward Kronish LLP
    Direct: 212-479-6482
    mcurran@cooley.com